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RESOLUTION NO.
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH THE REDEVELOPMENT AGENCY QI' THE
CITY OF SAN BERNARDINO RELATING TO THE LOAN OF $1,590,000~00 FOR
THE CONVENTION-EXHIBITION CENTER.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is
authorized and directed to execute on behalf of said City an
agreement with the Redevelopment Agency of the City of San
Bernardino relating to the loan of $1,590,000.00 for the Con-
vention-Exhibition Center, a copy of which is attached hereto,
marked Exhibit "A" and incorporated herein by reference as fully
as though set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a A/1A'L~"'d
on the /F-::;t day of a~~
vote, to wit: t7
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Cft0"E!'ir
is hereby appr his ,..,:P/J~ day
meeting thereof, held
, 1977, by the following
AYES:
NAYS:
ABSENT:
of
The foregoing resolution
rLf/ , 1977.
no
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.llIt ?01977
yclLLE GOFORTH, City Cler1l'
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AGREEMENT
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(loan - convention-exhibition center)
THIS AGREEMENT is made and entered into this S rL day of
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, 1977, by and between the CITY OF SAN BERNARDINO
S a municipal corporation, hereinafter called "City", and the
6 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a local public
7 agency, hereinafter called "RDA".
8 W!.T'NE2.S!!H:
9 WHEREAS, RDA and City have heretofore approved in concept
10 a Disposition Agreement for a Convention-Exhibition Center and
11 Hotel wherein it is provided for the construction and operation
12 thereof; and
13 WHEREAS, RDA is in need of a loan from City in the amount
14 of one million five hundred ninety thousand dollars ($1,590,000.00
15 in order to provide funds necessary for the improvement of the
16 present convention center in order to transform it into an
17 attractive and economically viable Convention-Exhibition Center;
18 and
19 WHEREAS, one million four hundred fifty thousand dollars
20 ($1,450,000.00) of the aforesaid amount is to be deposited by the
21 RDA into a construction fund bank account which said sum shall be
22 held in trust and shall be disbursed only for the purposes and in
23 accordance with the provisions authorized by the Disposition
24 Agreement. The remaining one hundred forty thousand dollars
25 ($140,000.00) shall be paid to the United States Department of
26 Housing and Urban Development (HUD) to meet their "concurred in
27 price" for the parcel of real property upon which the expansion
28 of the Convention-Exhibition Center 1s to be constructed in
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accordance with the provisions of the Disposition Agreement, and
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WHEREAS, City desires to loan the aforesaid amount of one
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million five hundred ninety thousand dollars ($1,590,000.00) to
4 RDA in order to facilitate the improvement and transformance of
5 the convention center into a Convention-Exhibition Center which
6 will be economically feasible. The loan is to be made with the
7 clear understanding that the sum of one million five hundred
8 ninety thousand dollars ($1,590,000.00) plus interest as herein-
9 after provided will be repaid by RDA to City on or before
10 December 15, 1977,
11 NOW, THEREFORE, it is agreed as follows:
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1. The City shall, on
, 1977
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loan and advance to RDA the total sum of one million five hundred
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ninety thousand dollars ($1,590,000.00) in lawful money of the
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United states of America.
2. One million four hundred and fifty thousand dollars
17 ($1,450,000.00) of the sum loaned to RDA by City shall be used as
18 provided in the third Whereas Clause set forth hereinabove.
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3. RDA shall repay said sum of one million five hundred
20 ninety thousand dollars ($1,590,000.00) loaned by City to RDA, and
21 hereby promises to pay in lawful money of the United States of
22 America, to the order of the City of San Bernardino, a municipal
23 corporation, at San Bernardino, California, the said principal
24 sum of one million five hundred ninety thousand dollars
25 {$1,590,000.00lwith interest in lawful money from the date of the
26 loan and advancement of the funds by City to the date of payment
27 by RDA at the rate of five and one-half percent (5 1/2%) per annum
28 ith interest payable together with principal on or before
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December 15, 1977.
4. The parties hereto understand that RDA contemplates
repaying said sum together with accrued interest from the proceeds
of an issuance of parity bonds by RDA with said bonds being
issued against the Meadowbrook Project for the sole purpose of
financing the contemplated development of the Conventimn-
Exhibition Center. Notwithstanding the foregoing, the promise and
obligation of RDA to pay to City the loan provided for herein shal
not be contingent in any way upon RDA's issuance of the parity
bonds or the obtainment of any type of financing.
5. It is understood by the parties hereto that with res-
pect to the payment of the said sum by RDA to City that time is
of the essence and City is making this advance with the under-
standing that RDA will promptly pay the obligation and accrued
interest on or before the aforesaid date of December 15, 1977.
Furthermore, City makes this advance to RDA in reliance upon RDA's
express representation to City that it will have adequate sums
available to repay and reimburse City promptly in accordance with
the terms of this agreement.
6. In the event of commencement of suit to enforce payment
of the obligation of RDA pursuant to this agreement, RDA agrees
to pay such additional sums and attorney's fees and costs as the
court may adjudge reasonable.
7. RDA agrees to, and shall, indemnify and hold City, its
elective and appointive boards, commissions, officers, agents and
employees harmless from any losses from this transaction.
8. RDA's obligations to City hereunder shall be non-
assignable.
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9. All notices herein required shall be in writing and
2 delivered in person or sent by certified mail, postage prepaid,
3 addressed as follows:
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
Redevelopment Agency of
the City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
7 IN WITNESS WHEREOF, the parties hereto have executed this
8 agreement on the date first hereinabove written.
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ATTEST:
C
F THE CITY OF
B
By
Wm. A.
Agency
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