Loading...
HomeMy WebLinkAboutMemorandum/Warner Hodgdon EXCERPTS. . . . . . . From Warner Hodgdon June 1,2009 Letter of Support to Mayor Morris and City Council 'I have appreciated.Mayor Morris'and the Council's courage to put an Action Plan on the table, as no action plan of socio - economic viability had been implemented in over two and one-half decades. Since the 1970•1985 political and economic successful days of the Central City, by 2009 the City • County Seat has faced years of falling commercial and neighborhood property values, decreased revenues, increased crime, blight and decay." "The above has caused on-going higher income residential socio economic flight and infilled with occupancy seeking lower rents and foreclosed homes, etc. Thus, the overall City North and South areas, but not limited to, have earned a 'POOR IMAGE'of blight and decay that needs to be cleaned up immediately." "I feel from years of experience that a confirmed North / South $2t Billion DUAL FUSION is required; or the EDAW $1 Billion Central City PREFERRED PLAN ALTERNATIVES will have few persons left in the City to sustain Downtown alone." "Members of my Heritage family first came to the area in 1848 • 1849. My entire life has been only love for the City and County Seat, as it is this moment. I have done my best to be a giver not a taker." 'I will soon submit an updated plan for a concurrent$gt Billion North . South Dual Fusion for Quality of Life." $2 BILLION NORTH • SOUTH DUAL " FUSION DUAL VISION ....FUTURE QUALITY OF LIFE I8KI-M HERITAOEOFTHEMOU AINARROWHEAD•IBSi•3mJ CENTRALCITY AMOWHEADPLAZA • COUN WVERNMENTCFMER NORTH END ARROWHEAD RESIDENTIAL AREAS CLEAN • SAFE • SECURE MUTUAL SUSTAINABILITY.....ONE SUPPORTS THE OTHER Im CITY COUNTY IVDA • MUNI JOINT COOPERATION QUALITY OF LIFE ' vy✓.��i�yp�L7sIC� (for discussion purposes only) MEMORANDUM Date: Friday, February 11, 2011 To: Jim Morris, Mayor's Chief of Staff ' From: Warner Hodgdon Lifelong Citizen, Builder, Contributor ' Former Chairman, San Bernardino Redevelopment Agency 1967-1969 and 1973-1976 Former Chairman/Founder,San Bernardino Economic Development Council 1973-1976 Re: Our Meeting in your Office on Thursday,January 20, 2011; i.e.: 1. Wednesday, January 19, 2011 appreciated urgent call to Warner Hodgdon from Mayor Morris/Jim Morris,Chief of Staff 2. Draft January 20, 2011 Cooperative Financing Agreement by and between the Redevelopment Agency and Sustainable Communities Reinvestment Partnership, Inc. (SCRIP), a non-profit 501-C3, relating to $300,000,000 Redevelopment Project Area Capital Improvements ' 3. Possible MC-CDC meeting relative to the SCRIP above: (1)January 20, 20111:30 pm and/or(b)5:30 pm EDA Board Room 4. Theater Square Block Dear Jim: Above Referenced Subject: y This Memorandum is regarding the above-referenced subjects and issues leading up thereto, ' beginning Wednesday, January 19, 2011 and before. Thanking you in advance for your time and consideration on Thursday.January 20. 2011 to clarify the above through that time. Gruen Associates'Professional Services for P3 as to Theater Square Block: r r I related to you up front during our Thursday,January 20, 2011 meeting,that the day before on Wednesday,January 19, 20111 was in Los Angeles with Gruen Associates,Architects, Planners, Interiors, from early morning until about 10:30 pm regarding their services for P3; i.e. (1) Theater Square Block; ' (2) Regal 14 screens; (3) California Theater seismic retrofit, with required new adjacent building 1 ' buttresses for restaurant / commercial uses, etc.; (4) Public parking areas for Theater Square; and (5) Relocation of two "E" Street at 4`" Street Omnitrans bus transfer areas. I did not arrive back in San ' Bernardino until about 12:00 midnight, as I was preparing for my meeting with Mayor Morris/Chair MC- CDC, scheduled to be in his office the next morning on Thursday, 7:30 am (see: Warner Hodgdon ' Thursday,February 30,2013 Overview Memorandum to Mayor Morris/Chair CDC). Warner Hodgdon Returned Mayor's Urgent Call: At home late Wednesday night, January 19, 2011, 1 heard my messages from Aaron Hodgdon that you and the Mayor were looking for me and it was urgent. The Mayor's or your private number ' (909.723.6082) was left for me to call, and I did so, but it voice responded that no room was available for more messages. Governor Brown's Proposal to Restrict Redevelopment Project Areas: ' I learned from the Mayor Thursday morning that your and the Mayors urgency was regarding Governor Brown's proposed restrictions that could affect the demise of redevelopment agencies/project areas. Both of you had been urgently meeting with Emil Marzullo, RDA Interim Director and Tim Sabo, RDA Counsel on Wednesday regarding evaluation of this serious matter. I agree to constructive thought. ' Amended Articles of San Bernardino Economic Development Council: ' Tim Sabo's purpose for the above-referenced $300,000,000 Redevelopment Project Area Cooperative Financing Agreement and Capital Improvements was also related to amending the Articles of Incorporation to the San Bernardino Economic Development Council 501-C3 non-profit corporation, renamed to SCRIP;and to provide appointment of four additional Board members. Replacement for Existing SBEC Board Members and Amend By-Laws: `r I understand that on Wednesday the urgency to contact me was to know if I would consider being one of the three replacements of the existing Board (yourself, Emil and Brian Turnbull, RDA)on an interim basis to amend the bylaws,etc., and to kick-start this approach in defense of the City RDA. (For your information: In 1973, while Chairman of the RDA, I also formed and was Chairman of the San Bernardino Economic Council with its separate Board membership. The purpose was the ability to work directly with the U.S. Economic Development Administration.) MC-CDC Approval Required: W. You and the Mayor informed me of this proposed action the morning of Thursday, January 20, 2011, subject to MC-CDC approval. After I met with him on other matters for about one hour, he then asked you to give me an overview of Tim Sabo, RDA Counsel, new consideration. r 2 I San Bernardino Economic Council Corporation and MC-CDC January 20,2011 Meeting: ' Accordingly, you explained that Tim Sabo, RDA Counsel, had felt the current three San Bernardino Economic Council Corporation members: yourself, Emil Marzullo, RDA Interim Director, and t Brian Turnbull, RDA staff, may meet at 1:30 pm in the RDA Board Room. You called me and left a message that the San Bernardino Economic Council would not meet, but a joint special meeting of the MC-CDC had been scheduled for 5:30 pm. I went to the RDA Board Room at 1:30 pm and confirmed the ' Non-Profit Corporation Meeting had been cancelled. I attended the 5:30 pm MC-CDC special meeting. The following are copies of applicable information discussed and/or you provided to me: TAB No. ' 1. MC-CDC 01/20/20115:30 pm Special Meeting Agenda; i.e.: 2. Corporate Records of Sustainable Communities Reinvestment Partnership, Inc., (1973 Articles of Incorporation San Bernardino Economic Development Council) ' (For the Record,: While Chairman of the RDA, I was also Chairman/Founder of the separate San Bernardino Economic Development Council, the purpose being to work directly with the U.S. Economic Development Administration and offices therefore were in the Santa Fe Federal ' Building next to City Hall.) 3. Schedule of San Bernardino City Impacts on State RDA Cuts (annual net revenue loss to the City ' budget of$7,082.989). ' 4. Current(annual)Agency Paid City Obligations$4,907,450. 5. RDA Counsel, Tim Sabo's Draft Cooperative Financing Agreement by and between the ' Redevelopment Agency of San Bernardino and Sustainable Communities Reinvestment Partnership, Inc. (SCRIP), a California 501-C3 (former San Bernardino Economic Development Council) relating to $300,000,000 Redevelopment Agency Project Areas Capital Improvements ' Projects. - ' 6. RDA Counsel,Tim Sabo's Draft Certificate of Adoption of Bylaws of the Sustainable Communities Reinvestment Partnership, Inc. as amended by the Board of Directors on Thursday, January 20, 2011. ' 7. January 10, 2011 League of California Cities article from the City Advocate Weekly; i.e.: ' Governor's Budget Eliminates RDA, Enterprise Zones and Realigns State Services to Local Governments(budget effects on local government)(3 pages) 3 ' 8. January 30, 2011 MC-CDC Joint Special Meeting Draft Resolution approving the Cooperative Financing Agreement, with attachments: ' A. Programs, Projects and Activities by Project Areas Totals$41,078,900 (2 pages) B. Implementable Plan Public Improvements 2009—2014$35,601,000(1 page) C. Other SCRIP Contractual Obligations (1 page) D Agency Real Property Assets scheduled 1 through 29 and Unimproved Agency Properties: (1)Approximately 100 properties and 100-acre BICE parcels; and (2)Various remnant parcels throughout the City; i.e.: approximately 25 properties. 9. (Provided to Warner Hodgdon by Tim Sabo, RDA Counsel, Monday, January 24, 2011) Changes to Cooperative Financing Agreement based on comments received at MC-CDC Joint Special Meeting on Thursday,January 20, 2011 ($300,000,000),with attachments. A. Bylaws with original changes from Non-Profit Private Board to Quasi-Public Board. ' B. Alternative Methods for Selection of Directors to Non-Profit Board. 10. January 24, 2011 Gruen Associates' Professional Services Agreement with P3 for its reality check and comprehensive understanding to implement a P3 Public • Private • Partnership structure (as recommended in RDA 2007-2009 Urban Land Institute [ULI] and EDAW Report) Fast Track ' Design Build • Lease-Back • and Funding Basis (see immediately attached hereto): A. Theater Square Block • Regal 14 Screens and Front Restaurants/Commercial California Theater East Seismic Buttress Buildings for Restaurants/Commercial Use and Related/Required public parking areas, B. Nine Illustrative/Presentation Panels San Bernardino Central City Area • County Government Center • Arrowhead Plaza Overall Green Campus Areas, including Secombe Lake Park, and new five (5) acre City park area to be built north of 7`"Street and Waterman Avenue, C. Relationship of Two Omnitrans Bus Transfer Areas,along both 4`"and "E" Streets and Interim Relocation Thereof; Penney TBA(shelved by RDA)or Ward TBA(alternate), D. Retrofit Theater Square • Retrofit Central City Mall/Three-Level Parking Structure Retrofit City Hall/Five-Level Parking Structure • Retrofit/Re-Open City Convention ' Center and Related Hotel Services As you and Mayor Morris realize, I have participated in all Urban Land Institute (ULI) meetings and presentations for their June 2007 Report which recommended demolition of the Central City Mall and redevelopment of 700± town homes thereon (Lanar/RDA participation agreement), completion of the California Theater/closed 20 screens area and completion of Phase II for the County Government 4 P" r y Center • Arrowhead Plaza (City, County, State, Federal Complex adopted 1975). 1 subsequently participated in all EDAW June 2007-June 2009 meetings and presentations regarding the Downtown Vision Plan, and/or alternatives. Lanar sold the Central City Mall and their 700± town home scheme in December 2009 to M & D Placo for a Plaza Mexico-type mall use. The City/RDA was shocked and caught off guard as this action being in conflict with its 2007 ULI Report, making it MOOT. Then came the June 2009 EDAW Vision Report described above and in November 2010 the County made public its March 2010 decision not to purchase the Central City Mall, or portions thereof and not build the County ' Government Center there. In addition to the above, I have attended all applicable MC-CDC 2007-2011 agenda meetings ' regarding, but not limited to, the City and RDA budgets and other agenda items (including new City Manager Charles McNeely's June 2010 three-day retreat). ' As part thereof, I have reviewed most of the various City/RDA consultant reports, etc., made available,and have attended or reviewed the Omnitrans/SANBAG/IVDA data and presentations. ' Thank you again for your time and efforts. As you know, my passion is for the City and the ' County Seat—the same as you and your dad, Mayor Morris, Chair CDC. I take these matters Seriously and will act accordingly. ' Respectfully, Warner Hodgdon See Attached: Thursday, January 20, 2011 Riverside Press Enterprise editorial "Freeze Redevelopment." See Attached: Ten Exhibits as Tabbed and Described Within the Body of This Memorandum Cc: Mayor Patrick Morris, Chairman (MC-CDC) Council Members,Community Development Commission Members, Etc. ' and others,as listed below: I'Ward and CDC,Virginia Marques Emil Marzullo, RDA Director ' 2nd Ward and CDC,Jason DesJardins Tim Sabo, RDA Counsel 3rd Ward and CDC,Tobin Brinker James F. Penman,City Attorney 4`"Ward and CDC, Fred Shorett Rachel Clark,City Clerk ' 5th Ward and CDC,Chas A. Kelly For Public Record e Ward and CDC, Rikke Van Johnson 7'h Ward and CDC,Wendy McCommack ' 5 ' Al2 • THURSDAY,January 20,2011 THE PRESS-ENTERPRISE i OUR VIEWS Freeze redevelopment he governor's proposal to end redevelopment merits thoughtful discussion,not a hectic scramble ' to spend as much redevelopment money as possible before the state acts. The Legislature should quickly enact a freeze on new redevelopment ' projects—which would preserve a viable budget solution and protect local officials from their own rash instincts. If nothing'. else, Gov. Jerry redevelopment money before it Brown has proven that local gov- disappears do not suggest a strate ernmentcan move fast when really gy focused on achieving the great- -motivated. Last week, the gover- est public benefit. nor's budget proposed to phase out The sudden flood of spending ' redevelopment to help close the also reminds everyone that rede- state's $25.9 billion shortfall velopment has little accountability through 2011.1 Redevelopment al- to the public—even when voters lows local gov- . can decipher t ernments to Hasty efforts to Commit the arcane de- keep a total of$5 tails of redevel- billion annually redevelopment money opment fi- to property tax- nances. es that would do_not suggest a Taxpayers, can, otherwise go to strate focused on however, un- schools and oth- strategy focused local er public agen achieving the most governments' cies. That mon- long history of ey is supgosed public benefit, abusing rede- to improve-rim- velopment down areas,ijinugh it often ends rules to bolster city coffers. And up subsidizing big box stores and they see how officials often use the ' auto malls. - process to provide lucrative hand- In the wake of the governor's outs to developers forprojects that proposal cities from San Marcos to would happen anyway. San Jose rushed to tie up as much California should instead be ' redevelopment money as possible. considering whether redevelop- On Tuesday,Riverside County,ap- ment represents the best use of Proved$155 million in new redevel- available tax money. Both state opment borrowing, while "Long and local governments should be Beach authorized more than $1 directing money to core public billion in projects. Los Angeles services,yet redevelopment walls authorized $930 million worth of off funds forprojects thatmay be of redevelopment plans on Friday. lesser value.So Riverside County ' Letting that funding free-for-all will allocate millions of dollars for continue,however, serves no one. a Mead Valley transportation yard The state would lose out on poten- and a shopping center rehab in tial savings, such as ending the Rubidotix - with no option of need to give schools$1.8 billion a discussing whether those arehigh- ' year to make up for local property er prioritigs than law enforcement taxes diverted to redevelopment. or other services the county is California's fiscal mess is too dire struggling to fund. for legislators to let a promising Such an approach makes little option for boosting state finances sense for a state where public slip away through inertia. finances are in deep distress.State And local officials need a more and local governments need to thoughtful approach than spend- make the most effective use of ' ing as much as possible before the public dollars, not unaccountably state shuts off the redevelopment tie up money without regard to spigot.Frenzied efforts to commit more nressine mir needs. 5 . 1 r Mayor Patrick J. Morris CITY OF SAN BERNARDINO Council Members: 300 N. "D" Street Virginia Marquez Jason Desjardins San Bernardino, CA 92418 Tobin Brinker Website: www.sbciry.org Fred Shorett WBernar Chas Van Johnson s. Wendy McCammack AGENDA JOINT SPECIAL MEETING MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO THURSDAY, JANUARY 20, 2011 - 5:30 P.M. ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" STREET ' SAN BERNARDINO, CALIFORNIA The City of San Bernardino recognizes its obligation to provide equal access to those individuals with disabilities. Please contact the City Clerk's Office (384-5002) two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. Any writings or documents provided to a majority of the City Council/Commission regarding any item on the agenda will be made available for public inspection at the City Clerk's Counter at City Hall located at 300 N D" Street, 2nd Floor, during normal business hours. In addition, such writings and documents will be posted on the City's website at www.sbcity.or_ rg, CALL TO ORDER: PRESENT: ABSENT: i t 01/20l201 t a Economic Development Agency 1. Approval of a Cooperation Financing Agreement of the Redevelopment Agency of the City of San Bernardino and appointing Commission Members to serve on the board of a certain non-profit corporation (Staff Report not available at time of printing.) Resolution of the Community Development Commission of the City of San Bernardino approving a certain Corporative Financing Agreement by and between the Redevelopment Agency of the City of San Bernardino ("Agency") and the Sustainable Communities Reinvestment Partnership. nc , for the financing, -ding and undertaking of various redevelopment rel ed activities of the Agency. (Resolution not available at time of printing.) MOTION 1: That said resolution be adopted. MOTION 2: That the following two members oV the Redevelopmen Commission of the City of San Bernardino, and , be designated to serve as duly appointed Directors of the Sustainable Communities Reinvestment Partnership, Inc. (SCRIP) in accordance with the bylaws of SCRIP. 2. Adjournment. r,w — 1 J /�..Q�C{��Ate' �i MOTION: That the meeting be adjourned. g. NOTE: The next joint regular meeting of the Mayor and Common Council/Community Development Commission is scheduled for 1:30 p.m., Monday, February 7, 2011, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. �� lo •u �� �zr� �� cif �� ��-�����• NOTICE: Any member of the public may address this meeting of the Mayor and Common Council/Community Development Commission on any item appearing on the agenda by approaching the microphone in the Council Chambers when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and Common Council/Community Development Commission concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and Common Council/Community Development Commission, may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed forty-five (45) minutes, unless such time limit is extended by the Mayor and Common Council/Community Development Commission. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and Common Council/Community Development Commission. No member of the public shall be permitted to "share" his/her three minutes with any other member of the public. The Mayor and Common Council/Community Development Commission may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and Common Council/Community Development Commission. However, no other action shall be taken nor discussion held by the Mayor and Common Council/Community Development Commission on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. 3 01/20/2011 ' CORPORATE RECORDS SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC. 1. Articles of Incorporation of San Bernardino Economic Development Council,October ' 1973 2. Statement by Domestic Nonprofit Corporation of San Bernardino Economic Development Council,August 23, 1989 ' 3. Statement oflnformation of San Bernardino Economic Development Council,December 8,2003 4. Resolution 2008-1 of Sustainable Communities Reinvestment Partnership, Inc. Appointing New Board of Directors and Officers,Approving Amendment to Articles of ' Incorporation, Authorizing Taking Steps Necessary to Obtain 501(c)(3) Status, and Authorizing Opening of Bank Account,June 24,2008 5. Certificate of Amendment of Articles of Incorporation of Sustainable Communities ' Reinvestment Partnership,Inc.,July 31,2008 6. Statement of Information of Sustainable Communities Reinvestment Partnership, Inc., July 3,2008 7. Power of Attorney and Declaration of Representative,July 3,2008 8. IRS Determination Letter,dated March 4,2009 9. Resolution 2009-1 of Sustainable Communities Reinvestment Partnership, Inc. Authorizing Ratification of Bylaws as of September 4,2009 10. Bylaws of the Sustainable Communities Reinvestment Partnership, Inc.,September 4, 2009 1 ' 4832-1533-2357.1 CITY OF SAN BERNARDINO IMPACT OF STATE BUDGET RDA CUT Revenue DRAFT Projected Tax Increment 37,037,500 Low Moderate Housing (20% set aside) (7,407,500) iBond Payments and Fees (17,454,840) Pass through Agreements (1,482,800) Net property tax available 10,692,360 Net after voter approved indebtness (1.25) 8,553,888 City's 17% portion of property tax revenue using existing formula 1,454,161 Expenses Current Agency paid City expenditures 4,907,450 r Building Maintenance (assuming City is successor entity) 3,629,700 ' Total Expenses 8,537,150 Net Loss to the City oC4.o464A (7,082,989) 1 CITY OF SAN BERNARDINO IMPACT OF STATE BUDGET RDA CUT ' DRAFT Current Agency Paid City Obiligations FY 10-11 Amount ' 1 South Valle COP Bond City reimbursement 176,000 2 Rent and utilities to EDA for 201 N and 1350 S E buildings 216,000 3 Commission/Chairperson's office 211,250 ' 4 Council offices 145,000 5 City Attorney Investigators/legal services 200,000 6 City Finance admin water credit program 8,000 7 City Mobile Home Inspection 32,800 8 City Telecom ($500 expenditures- $125,000 revenue) 375,000 9 City Parks and Rec landscaping maintenance 300,000 t10 City portion Welcome Center($50k total) 25,000 11 PIO Services 13,000 12 City HR services to Agency 125,000 13 Carousel Mall security 440,000 75 , 14 Carousel Mall maintenance/utilities (Direct payment) 3000 20 15 Carousel Mall janitorial ,000 16 Police costs related to Carousel Mall 300,900 ' 17 SB Convention and Visitor's Bureau 460,000 18 Operation Phoenix utility costs 12,000 19 IEEP/Film Commission 50,000 ' 20 Code Displacement City Attorney Office 200,000 21 COP payment Central Police Dept Building 490,000 22 Library debt bond payment 690,000 t. 29 State Lobbyist 20,000 30 Federal Lobbyist 22,500 Total 4.907.450 4 ,Vx 14 ok�.A -U-e AW w44 -109 COOPERATIVE FINANCING AGREEMENT by and between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and 1 SUSTAINABLE COMMUNITIES REINVESTMENT ' PARTNERSHIP,INC.,A CALIFORNIA NON-PROFIT CORPORATION Relating to the $300,000,000 ' REDEVELOPMENT AGENCY OF THE / CITY OF SAN BERNARDINO REDEVELOPMENT PROJECT AREAS ' CAPITAL IMPROVEMENT PROJECTS I Cooperative Agreement-I-18-I l r COOPERATIVE FINANCING AGREEMENT THIS COOPERATIVE FINANCING AGREEMENT is made and entered into as of January , 2011 (this "Financing Agreement"), by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic existing under the laws of the State of California(the "Agency") and the Sustainable Communities Reinvestment Partnership, Inc., a California non-profit corporation("SCRP"),as follows. WITNESSETH: Fill WHEREAS, the Agency was established by appropriate action of the City of San Bernardino (the "City"), for the purposes of exercising redevelopment powers within the City boundaries through the adoption and approval of various redevelopment project areas that are currently in existence within the City (the "Project Areas") as further described in the applicable redevelopment plans accompanying such Project Areas(the"Redevelopment Plans"); and r .. WHEREAS, SCRP was formed pursuant to the non-profit corporation laws of the State of California and was formerly known as the Economic Development Corporation, and pursuant to an amendment of its corporate documents, SCRP duly approved a name change as such ' currently exists for the purposes of assisting in the implementation of various redevelopment initiatives within the City and to undertake such other activities, programs and projects of the Agency and the City as are then deemed advisable by SCRP through its board of directors;and r. WHEREAS, pursuant to the Community Redevelopment Law (Health & Safety Code Section 33000, et seq) (the "CRL" or the "Authorizing Provisions", the Agency may enter into ' cooperation agreements and financing agreements with other public agencies,private entities and non-profit corporations to carry out its redevelopment and other public infrastrucure development purposes; and WHEREAS, SCRP has requested that the Agency act at this time to assist SCRP with the financing of certain public infrastructure and the implementation of other programs and activities located within the Project Areas, together with other public infrastructure that is necessary to support the long-term development and redevelopment of the portions of the City located within the Project Areas, namely, those public improvements, public infrastructure and other developments and activities, programs and projects all as set forth in the current year 2010-201 Budget of the Agency and the Downtown Vision Plan for the Theater District of the Agency as indicated on Exhibit "A" (the "Programs, Projects and Activities") as attached hereto and incorporated herein by reference plus those other public improvements and public infrastrucure as set forth on the Implementation Plan of the Agency as indicated on Exhibit `B" (the "Implementation Plan Public Improvements") as attached hereto and incorporated herein by reference(collectively,the"Redevelopment Related Improvements'); and WHEREAS, in addition to the Redevelopment Related Improvements, SCRP, in j furtherance of the redevelopment of various areas of the City and in particular with the Project r Areas, requires the Agency to commit to certain levels of additional financing amounts to SCRP for the fulfillment of the contractual commitments and other financial obligations as set forth on Military Base Reuse Funding Agreement-1-17-11 1 Exhibit "C" (the "Other SCRP Contractual Obligations") as attached hereto and incorporated herein by reference; and WHEREAS, the Agency has determined to finance the Redevelopment Related Improvements and the Other SCRP Contractual Obligations by the incurring of the indebtedness as required by this Financing Agreement, including, but not limited, the issuance of one or more EB-5 foreign investor direct loan obligations, other privately placed loans with commercial lenders and private parties, the issuance of municipal bonds and the pledge of the tax increment _ revenues of the Agency to SCRP as set forth in this Financing Agreement during the period of time that the Agency is entitled to receive tax increment revenues pursuant to the Redevelopment ' Plans for the Project Areas as the financial obligations of the Agency as shall be applicable for the period of time that such financial obligations of the Agency to SCRP are payable hereunder; and _ WHEREAS, in order to secure the financial obligations of the Agency to SCRP as provided in this Financing Agreement, the Agency desires to transfer to SCRP, the Agency real _ property assets as described on Exhibit "D" (the "Agency Real Property Assets') as attached ,m hereto and incorporated herein by reference which shall be operated and managed by SCRP with the tax increment revenues to be provided by the Agency to SCRP for such purposes at such time as determined by SCRP in its sole and absolute discretion as further provided herein; and IN WHEREAS, the Agency and SCRP seek to provide through this Financing Agreement that in addition to the obligations as incurred pursuant to this Financing Agreement, the Agency .. shall pledge to SCRP additional revenues as necessary to support the ongoing contractual and budgeted obligations and commitments of SCRP as shall be incurred in furtherance of the improvement of the Redevelopment Related Improvements and the Other SCRP Contractual Obligations and to fund the construction and/or financing of the Redevelopment Related Improvements and the Other SCRP Contractual Obligations; and WHEREAS, consistent with the SCRP obligations incurred pursuant to this Financing Agreement and the commitment of the Agency to fulfill its financial commitments to SCRP, during the Term (as defined in Section 1.03) of this Financing Agreement, the Agency tax increment revenues available pursuant to the Redevelopment Plans for the Project Areas shall become revenues attributed to SCRP, and the Agency herein pledges the tax increment revenues for the payment and repayment of the obligations to pay for and for the administration and undertaking of the Redevelopment Related Improvements, the Other SCRP Contractual Obligations and/or the other obligations as incurred pursuant to this Financing Agreement; and WHEREAS, the Agency and SCRP have determined that it is in the best interests of the Agency and SCRP to enter into this Financing Agreement to finance said Redevelopment Related Improvements and the other obligations as incurred pursuant to this Financing Agreement, and thus desire to provide for the terms and conditions of their cooperation in such matters as herein provided. NOW THEREFORE,the parties to this Financing Agreement agree, as follows. Military Base Reuse Funding Agreement-1-17-11 2 ARTICLE I DEFINITIONS; TERM OF FINANCING AGREEMENT Section 1.01. Recitals. The Recitals set out above are true and correct. ' Section 1.02. Definitions. Unless the context otherwise requires, capitalized terms used herein and not defined herein shall have the meanings as generally ascribed to such terms. Section 1.03. Term. This Financing Agreement shall remain in full force and effect so long as the obligations incurred by the Agency to SCRP remaining outstanding and unpaid, but in no event later than the last date that the Agency is entitled to receive the tax increment revenues pursuant to the Redevelopment Plans for the Project Areas for the repayment of indebtedness and other financial and contractual obligations. ARTICLE II ' PAYMENT OF TAX INCREMENT REVENUES OF AGENCY TO SCRP Section 1.04. Transfer of Powers. t (a) In order to cant' out the Redevelopment Related Improvements and the Other SCRP Contractual Obligations, SCRP shall assume all performance obligations with respect thereof and the Agency hereby pledges to SCRP all tax increment revenue available to the Agency from the Redevelopment Plans for the Project Areas during the Term of this Financing Agreement for the payments as required for SCRP to fully perform each and every financial and contractual obligation as set forth on Exhibits "A", `B", "C" and "D" as to the Redevelopment ' Plans for the Project Areas. The Agency shall be responsible for compliance with all requirements imposed by the Redevelopment Plans and for the timely payment of funds and the ' reporting of such uses pursuant to the CRL, and SCRP shall be responsible for all compliance with respect to the public works requirements as imposed pursuant to California law with regard to the Redevelopment Related Improvements and the Other SCRP Contractual Obligations. (b) SCRP shall use and apply the tax increment revenues as pledged pursuant to this Financing Agreement to undertake, manage, administer and implement all aspects of the ' Redevelopment Related Improvements and the Other SCRP Contractual Obligations, specifically including,but not limited to: ' 1. the design, construction and implementation of the Redevelopment Related Improvements as set forth in the 2010-201 Budget of the Agency and the Downtown Vision Plan for the Theater District of the Agency as indicated on ' Exhibit"A'; 2. undertaking of the Implementation Plan Public Improvements as set forth on ' Exhibit`B"; 3. undertaking of the Other SCRP Contractual Obligations as set forth on Exhibit "C"; 1 Military Base Reuse Funding Agreement-1-17-I1 3 r 4. managing and maintaining the Agency Real Property Assets as set forth on Exhibit"D". (c) The Agency Real Property Assets shall be transferred by the Agency to SCRP in fee title at such time as SCRP in its sole and absolute discretion determines that SCRP requires all or any portion of the Agency Real Property Assets at such time to be used by SCRP in furtherance of the redevelopment and economic development related activities of SCRP and the •- Project Areas. The obligation of the Agency to transfer the Agency Real Property Assets shall be a binding and enforceable contractual obligation upon the Agency from and after the date of this Financing Agreement, and any failure of the Agency to transfer all or any portion of the Agency Real Property Assets as required herein shall be an Event of Default pursuant to Section 3.01 hereof. Section 2.02. Irrevocable Pledge of Tax Increment Revenues. Pursuant to and in consideration of the assumption of the obligations by SCRP as set forth in Section 2.01 above, commencing as of the date of this Financing Agreement during the 2010-2011 fiscal year, those tax increment revenues derived by the Agency from the Redevelopment Plans for the Project Areas are hereby irrevocably pledged to SCRP pursuant to this Financing Agreement on a basis subordinate to all presently authorized and issued, and firture authorized and issued debt obligations of the Agency that are sold through municipal underwriting means or debt obligations with third party commercial lenders, including, but not limited to those amounts that are in excess of the tax increment revenues budgeted to be expended by the Agency for the current 2010-2011 fiscal year of the Agency. Such pledge of the tax increment revenues of the Agency to SCRP shall be irrevocable during the Term of this Financing Agreement. The maximum dollar amount of the tax increment revenues pledged by the Agency to SCRP pursuant ' to this Financing Agreement for the use and pledge of tax increment revenues for debt obligations that are intended to be issued or incurred by SCRP on and after the date of this Financing Agreement shall not exceed $300,000,000 in the aggregate principal amount. ' Section 2.03. Use of Tax Increment Revenues. (a) Throughout the Term of this Financing Agreement, SCRP hereby agrees that the tax increment revenues as pledged by the Agency pursuant to Section 2.02 above shall be applied for the payment and/or repayment of the obligations incurred by SCRP pursuant to Section 2.01 above. (b) SCRP shall take all steps necessary to utilize the tax increment revenues to pay ' principal and interest due on all debt and other contractual obligations of SCRP as specified in this Financing Agreement. Such payments shall be absolute obligations of SCRP and shall not be subject to any deduction or offset of any kind whatsoever. Section 2.04. Use of Excess Tax Increment Revenues. During the Term of this Financing Agreement and to the extent that there are excess tax increment revenues ("Excess Tax Increment Revenues") after payment and/or repayment of the various obligations incurred by SCRP pursuant to Section 2.01 above, such Excess Tax Increment Revenues shall be used by ' SCRP for other qualifying public works projects and the improvements within the Project Areas or transferred to the Agency for use pursuant to the Redevelopment Plans for the Project Areas. ' Military Rase Reuse Funding Agreemem-1-17-11 4 ARTICLE III EVENTS OF DEFAULT; RIGHTS AND REMEDIES I ' Section 3.01. Each of the following occurrences shall constitute an "Event of Default" under this Financing Agreement: (a) Failure to Make Payments When Due. Failure by either party to pay (i) any amount due on or before the date that such payment is due and payable pursuant to this Financing Agreement. (b) Other Defaults. Should SCRP fail duly and punctually to perform or observe any agreement, covenant or obligation binding on SCRP under this Financing Agreement which could lead to an Event of Default, such failure shall continue for thirty (30) calendar days after the earlier of(i) the date as of which SCRP had actual knowledge of such failure, and (ii) the date on which the Agency gives SCRP notice of such failure. (c) Breach of Representation or Warranty. Should any representation or warranty made or deemed made by one party to the other party herein be false or misleading in any material respect on the date as of which made which could lead to an Event of Default which is P1 not remedied to the satisfaction of the non-defaulting party within ninety (90) calendar days following receipt by the defaulting parry of written notice of such inaccuracy. Section 3.02. Rights and Remedies. (a) Acceleration.Etc. Upon the occurrence of any Event of Default by the Agency to remit the tax increment revenues to SCRP, the unpaid principal amount of any and all tax increment revenues payable pursuant to this Financing Agreement shall automatically become immediately due and payable for each fiscal year in which such Event of Default shall have occurred. After the expiration of all cure periods by the Agency, thereafter SCRP may exercise any or all rights and remedies under this Financing Agreement or otherwise pursuant to f applicable law. (b) Waiver of Demand. Demand, presentment, protest and notice of nonpayment are r. hereby waived by SCRP. SCRP also waives, to the extent permitted by law, the benefit of all valuation,appraisal and exemption laws. (c) Parties to Institute Proceedings. Upon a default by either party, the non- defaulting party may institute any proceeding at law or in equity to enforce the obligations of the W other party under this Financing Agreement and/or any covenants and obligations of the other party contained in this Financing Agreement. V (d) Waivers Amendments and Remedies. No delay or omission of the either party to exercise any right under this Financing Agreement shall impair such right or be construed to be a waiver of any Event of Default or an acquiescence therein, and any single or partial exercise of ' Military Base Reuse Funding Agreement-1-17-11 5 any such right shall not preclude other or further exercise thereof or the exercise of any other ^ right, and no waiver, amendment or other variation of the terms, conditions or provisions of this Financing Agreement whatsoever shall be valid unless in a writing signed by the other party,and then only to the extent in such writing specifically set forth. All remedies contained in this Financing Agreement or by law afforded shall be cumulative and all shall be available to the r parties Lender until the obligations have been paid in full and this Financing Agreement has been terminated or until the expiration of the Term of this Financing Agreement. ARTICLE IV i � MISCELLANEOUS Section 4.01. Amendment. The provisions of this Financing Agreement may be amended only upon the written approval of the parties hereto which approval shall be granted at the absolute and sole discretion of each party. Section 4.02. Beneficiaries of Financing Agreement. To the extent applicable, the r parties identified in the Redevelopment Related Improvements and the Other SCRP Contractual Obligations are expressly recognized as a third party beneficiary hereto. Nothing in this Financing Agreement, expressed or implied, is intended to give to any person, other than SCRP and the Agency, as parties hereto, and those parties identified in the Redevelopment Related r Improvements and the Other SCRP Contractual Obligations,all as third party beneficiary hereof, any right, remedy or claim under or by reason of this Financing Agreement. Any covenants, P+ stipulations,promises or agreements in this Financing Agreement contained by and on behalf of .. SCRP and the Agency or any member, officer or employee thereof shall be for the sole and exclusive benefit of SCRP and the Agency as parties hereto and the parties identified in the ' Redevelopment Related Improvements and the Other SCRP Contractual Obligations as third party beneficiary hereof. ' Section 4.03. No Personal Liability. No member, officer or employee of SCRP or the Agency shall be individually or personally liable for the payment of any amounts of the tax increment revenues as pledged to SCRP by the Agency pursuant to this Financing Agreement; ' but nothing herein contained shall relieve any member, officer or employee of SCRP and the Agency from the performance of any official duty provided by law. i Section 4.04. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof provided in this Financing Agreement to be performed on the part. of SCRP or the Agency should be contrary to law, then such agreement or agreements, such covenant or covenants, or such portions thereof, shall be null and void and shall be deemed separable from ( V the remaining agreements and covenants or portions thereof. i Section 4.05. Notices and Delivery. Any consent, notice or other communication herein required or permitted to be given shall be in writing and may be personally served, telecopied or sent by courier service or United States mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of a telecopy (or on the next business day if such telecopy is received on a non-business day or after 5:00 p.m. (at the office of the recipient) on a business day) or four (4) business days after deposit in the United States mail ' (registered or certified, with postage prepaid and properly addressed). Any party delivering a Military Base Reuse Funding Agreement-1-17-11 6 communication by telecopy shall also send a copy thereof by one of the other means provided in this Section 4.05. For the purposes hereof the addresses of the parties hereto (until notice of a change thereof is delivered as provided in this Section 4.05) shall be as set forth in the official business addresses of each party as of the date of this Financing Agreement and at such other address as may be designated by such parry in a written notice to all of the other party. Section 4.06. Survival of Warranties and Agreements. All agreements, representations,warranties and indemnities made or given herein shall survive the execution and delivery of this Financing Agreement and the making, repayment and fulfillment of the obligations of the parties as incurred in this Financing Agreement. Section 4.07. Severability. In case any provision in or obligation under this Financing Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. Section 4.08. Headings. Section headings in this Financing Agreement are included herein for convenience of reference only and shall not constitute a part of this Financing Agreement for any other purpose or be given any substantive effect. Section 4.09. Governing Law; Waiver. This Financing Agreement shall be governed by, and shall be construed and enforce in accordance with, the laws of the State of California. Section 4.10. Successors and Assigns. This Financing Agreement shall be binding _ upon the parties hereto and their respective successors and assigns. The terms and provisions of this Financing Agreement shall inure to the benefit of any assignee or transferee of the tax ,. increment revenues or any portion thereof, and in the event of any permitted such transfer or assignment, the rights and privileges herein conferred upon the applicable party shall automatically extend to and be vested in such transferee or assignee, all subject to the terns and conditions hereof. r Section 4.11. Performance of Obligations. SCRP agrees that the Agency may, but shall have no obligation to,make any payment or perform any act required of SCRP under any of the obligations as incurred by SCRP pursuant to this Financing Agreement or take any other action which the Agency in its discretion deems necessary or desirable to protect or preserve the pledge of the tax increment revenues pursuant to this Financing Agreement. Section 4.12. Construction. The parties acknowledge that each party has reviewed and revised this Financing Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Financing Agreement or any amendments or exhibits hereto. Section 4.13. Entire Agreement. This Financing Agreement embodies the entire agreement between the parties and supersedes all prior agreements, written and oral, relating to ' the subject matter hereof. Military Base Reuse Funding Agreement-1-17-11 7 i 1 Section 4.14. Execution in Several Counterparts. This Financing Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as SCRP and the Agency ishall preserve undestroyed, shall together constitute but one and the same instrument. 1 � i 1 i 1 i 1 i i 1 1 1 i 1 i Military Base Reuse Funding Agreement-1-17-11 8 IN WITNESS WHEREOF, the Redevelopment Agency of the City of San Bernardino and the Sustainable Communities Reinvestment Partnership, Inc., a California non-profit corporation, have caused this Cooperative Financing Agreement to be signed in their name by their respective Executive Directors all as of the date and year first above written. L Agency ' Redevelopment Agency of the City of San Bernardino II , By: ' Interim Executive Director ATTEST: By. Clerk of the Board APPROVED AS TO FORM: By. Agency Counsel tSCRP Sustainable Communities Reinvestment Partnership, Inc., a California non-profit corporation By: President ATTEST: I By. Secretary Military Base Reuse Funding Agreement-1-17-11 IYt 9 Exhibit"A" Programs, Projects and Activities i E i 1 1 1 Military Base Reuse Funding Agreement-1-17-11 10 v L Exhibit"B" Implementation Plan Public Improvements Military Base Reuse Funding Agreement-1-17-11 11 Exhibit"C" Other SCRP Contractual Obligations 1 1 i Military Baze Reuse Funding Agreement-1-17-11 12 1 . Exhibit"D" 1 Agency Real Property Assets i i � i 1 1 1 1 1 1 1 1 1 Military Base Reuse Funding Agm mt-1-17-11 13 r CERTIFICATE OF ADOPTION OF BYLAWS r OF THE SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC. I, the undersigned, do hereby certify: ' 1. That I am the duly elected and President of the SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP, INC., a California nonprofit public benefit corporation. 2. That the foregoing Bylaws constitute the Bylaws of said corporation as adeptanioded by the Board of Directors of said corporation on September 4January 20,201189. IN WITNESS WHEREOF, I have hereunto subscribed my name this 420th day of ' SepwmberJanuary, 201189. President 1 ' 4847-0251-9556.1 16 BYLAWS ' OF THE ' SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP, INC. a California Nonprofit Public Benefit Corporation History of Actions Taken Related to Bylaws Date Bylaws Adopted September 4,2009 ' Amendment January 20, 2011 1 1 ' 4847-0251-9556.1 BYLAWS OF THE ' SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP, INC. TABLE OF CONTENTS Page ARTICLE NAME AND CORPORATE OFFICES ....................................................................12 1.1 NAME................................................................................................................12 ' 1.2 PRINCIPAL OFFICE........................................................................................12 1.3 OTHER OFFICES.............................................................................................12 t1.4 PURPOSES........................................................................................................12 ' ARTICLE II DIRECTORS.............................................................................................................2 2.1 GENERAL POWERS..........................................................................................2 2.2 SPECIFIC POWERS.........................................................................................32 ' 2.3 NUMBER OF DIRECTORS.............................................................................42 2.4 RESTRICTIONS ON INTERESTED PERSONS AS DIRECTORS ...............42 ' 2.5 ELECTION AND TERM OF OFFICE OF DIRECTORS................................42 2.6 RESIGNATION AND VACANCIES...............................................................52 t2.7 PLACE OF MEETINGS:MEETINGS BY TELEPHONE...............................52 ' 2.8 REGULAR MEETINGS ...................................................................................52 2.9 SPECIAL MEETINGS:NOTICE.....................................................................62 ' 2.10 QUORUM..........................................................................................................62 2.11 WAIVER OF NOTICE......................................................................................62 2.12 ADJOURNMENT..............................................................................................72 2.13 NOTICE OF ADJOURNED MEETING...........................................................72 ' 2.14 ACTION BY WRITTEN CONSENT WITHOUT A MEETING.....................72 2.15 FEES AND COMPENSATION OF DIRECTORS AND REIMBURSEMENT.........................................................................................72 ' 4847-0251-9556.1 11 II 1 ARTICLEIII COMMITTEES......................................................................................................72 1 3.1 COMMITTEES OF DIRECTORS....................................................................72 1 .2 MEETINGS AND ACTION OF COMMITTEES............................................82 ARTICLEIV OFFICERS.............................................................................................................92 1 4.1 OFFICERS.........................................................................................................92 _ 4.2 ELECTION OR APPOINTMENT OF OFFICERS ..........................................92 4.3 SUBORDINATE OFFICERS............................................................................92 4.4 REMOVAL AND RESIGNATION OF OFFICERS........................................92 4.5 VACANCIES IN OFFICES ..............................................................................92 1 4.6 CHAIRMAN OF THE BOARD......................................................................102 1 4.7 PRESIDENT....................................................................................................102 4.8 VICE PRESIDENT..........................................................................................102 1 4.9 SECRETARY..................................................................................................102 1 4.10 TREASURERGHIEF ❑iwr NG r n� ..................112 4.11 DEPOSIT AND DISBURSEMENT................................................................112 1 4.12 BOND..............................................................................................................112 1 ARTICLE V INDEMNIFICATION OF DIRECTORS. OFFICERS.EMPLOYEES. ANDOTHER AGENTS..................................................................................................112 1 5.1 INDEMNIFICATION......................................................................................112 5.2 APPROVAL OF INDEMNITY.......................................................................122 1 .3 PAYMENT OF EXPENSES IN ADVANCE..................................................122 5.4 INSURANCE INDEMNIFICATION..............................................................122 1 .5 AMENDMENT. REPEAL OR MODIFICATION..........................................122 r ARTICLE VI RECORDS AND REPORTS...............................................................................122 W 1 RECORDS: INSPECTION BY DIRECTORS................................................122 J y+ 6.2 ANNUAL REPORT........................................................................................132 I1 4847-0251-9556.1 111 6.3 ANNUAL STATEMENT................................................................................132 6.4 REPORTS TO SECRETARY OF STATE......................................................142 ' ARTICLE VII GENERAL MATTERS......................................................................................142 .1 CHECKS; DRAFTS; EVIDENCES OF INDEBTEDNESS...........................142 ' 7.2 CORPORATE CONTRACTS AND INSTRUMENTS; HOW EXECUTED..........................................................................................142 7.3 CONSTRUCTION: DEFINITIONS................................................................152 ' ARTICLE VIII AMENDMENTS..............................................................................................152 AMENDMENT BY DIRECTORS..................................................................................152 ' 8.2 RECORD OF AMENDMENTS......................................................................152 ARTICLE IX INTERPRETATION ...........................................................................................152 9.1 AMENDMENTS TO LAW.............................................................................152 1 4847-0251-9556.1 IV BYLAWS OF THE SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC. ARTICLE I NAME AND CORPORATE OFFICES ' 1.1 NAME The name of this corporation is the SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP, INC. (the"Corporation"). 1.2 PRINCIPAL OFFICE ' The principal office for the transaction of the activities and affairs of the Corporation(the "Principal Office") shall be 201 North "E Street, Third Floor, San Bernardino, California 92401. The Board may change the Principal Office from one location to another. Any change of location of the Principal Office shall be noted by the Secretary on these Bylaws opposite this section or this section may be amended to state the new location. ' 1.3 OTHER OFFICES The Board may at any time establish branch or subordinate offices at any place or places where the Corporation is qualified to conduct its activities. ' 1.4 PURPOSES A. This corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized for public purposes within the meaning of the Nonprofit Public Benefit Corporation Law (codified at California Corporations Code Sections t 5110 et seq.), as amended from time to time, and is organized and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the corresponding provisions of any subsequent federal tax laws (the "Code"). B. This Corporation is formed for the purpose of lessening governmental burdens by providing assistance to the Redevelopment Agency of the City of San Bernardino (the "Agency") in its efforts to promote the green development and redevelopment ""thin of the Git7 of to implement other financings and projects that may be requested by the ' Agency to be undertaken by the Corporation within the municipal boundaries of the City of San Bernardino but only to the extent that such purposes constitutes exclusively charitable, scientific and educational purposes within the meaning of Sections 501(c)(3), 170(c)(2)(B), 2055(a)(2) and 2522(a)(2)of the Code. ' 4847-0251-9556.1 1 C. In its exercise of the above purpose, the Corporation shall have the following powers, subject to those limitations set forth in these Bylaws: (1) To enter into, perform and carry out contracts of any kind necessary to, or in connection with, or incidental to, the accomplishment of the purposes of the Corporation; ' (2) To borrow money and to issue evidences of indebtedness and to secure the same in furtherance of any or all of the purposes of the Corporation; ' (3) To receive and maintain a fund or funds,real or personal property, or both, and, subject to the restrictions and limitations hereinafter set forth, to use and apply the whole or any part of the income therefrom and the principal thereof exclusively for charitable, religious, scientific, literary or educational purposes either directly or by contributions to organizations that qualify as exempt organizations under Section 501(c)(3) of the Code and its Regulations as they now exist or as they may hereafter he amended; and (4) The Corporation shall have the power to do and perform all things whatsoever set out in this Article I and necessary or incidental to the accomplishment of said purposes; provided, however, that notwithstanding any provisions of these Bylaws, the Corporation shall not conduct or carry on any activities not permitted to he conducted or carried on by an organization exempt from federal taxation under Section 501(c)(3) of the Code or by an organization,contributions to which are deductible under Section 170(c)(2)of the Code. ARTICLE II DIRECTORS 2.1 GENERAL POWERS ' Subject to the provisions of the California Nonprofit Public Benefit Corporation Law and any other applicable laws and to any limitations in the Articles of Incorporation and these Bylaws, the business and affairs of the Corporation shall be managed and all corporate powers shall be exercised by or under direction of the Board of Directors (the`Board"). The Board may delegate the management of the day-to-day operation of the business of the Corporation to a management company or other person provided that the business and affairs of the Corporation shall be managed and all corporate powers shall be exercised under the ultimate direction of the Board. 4847-0251-9556.1 2 2.2 SPECIFIC POWERS Without prejudice to the general powers set forth in Section 2.1 of these Bylaws, but subject to the same limitations,the directors of the Corporation shall have the power to: (a) Appoint and remove at the pleasure of the Board, all of the Corporation's officers, agents and employees; prescribe powers and duties for them that are consistent with the law,with the Articles of Incorporation and with these Bylaws. (b) Change the Principal Office or principal place of business office in ' California from one location to another; cause the Corporation to be qualified to conduct its activities in any other state, territory, dependency or country and conduct its activities within or outside California. ' (c) Assume obligations, enter into contracts, borrow money and incur ' indebtedness on behalf of the Corporation and cause to be executed and delivered for the corporate purposes, in the corporate name, promissory notes, bonds, debentures, deeds of trust,mortgages,pledges,hypothecation, and other evidences of debt and securities. ' (d) Acquire, mortgage, encumber, hold title to, pledge, sell, release, or otherwise dispose of real or personal property and interests therein when and upon such terms as the Board determines to be in the best interest of the Corporation. (e) Facilitate any merger, consolidation, liquidation, plan of exchange, acquisition of stock, or the reorganization or transfer of a substantial portion of the assets of the Corporation. ' (f) Amend the Articles of Incorporation or these Bylaws. (g) Adopt operating and capital budgets and authorize expenditures outside of such budgets. (h) Approve and amend the Corporation's business and strategic plans. ' (i) Create corporate subsidiaries and/or establish corporate joint ventures. ' 0) Acquire shares of or any interest in any corporation or other legal entity or business enterprise, or create any partnership or other legal entity which the Corporation is or will be a partner, shareholder or member of similar participant. (k) Change or reorganize the Corporation into any other legal form. (1) Establish or participate in any noncorporate joint venture. Exercise of any or all of the above powers by the Board is subject to its limitation to enter into any action that would adversely affect the tax-exempt status of the Corporation. 4847-0251-9556.1 3 r 2.3 NUMBER OF DIRECTORS r The authorized number of directors of the Corporation shall be not less than two "` ..°r • more than fifteen n°seven 7 . Four (4) directors shall he residents of the City of San • Bernardino selected in the manner set forth in Section 2.5 and three (3) directors shall be comprised of three (3) members of the Community Development Commission of the City of San ' Bernardino or any successor board or agency' provided however, that the initial appointment of 0 the four (4) public directors shall be appointed upon the resignation of the immediately prior directors who have served as directors to approve the amendments to these Bylaws until such ' time as' a process is determined by the Board either with or without terms of office for such directors.The ' - numbef of direetefs shall be initially fixed at cur (n) . t:l a angel by amendment to these Bylaws. No reduction of the authorized number of directors shall have the effect of removing any director before that director's term of office expires. 2.4 CONFLICTS OF INTEREST; OTHER APPLICABLE CALIFORNIA ' LAWS The disclosure by directors of all conflicts of interest shall be consistent with those ' requirements applicable to municipal corporations pursuant to California law. All provisions of California law with respect to municipal corporations and the conduct of business and the activities of elected and appointed officials serving on the governing bodies of governmental agencies shall be applicable to the Corporation and the Board including. but not limited to, the Ralph M Brown Act of the State of California (the `Brown Act") (Government Code Section 54950 et seg.), the Public Records Act (Government Code Section , et seq.), the Political Reform Act (Government Code Section 87000, et seq.), the conflict of interest provisions of Government Code Section 1090 et seq.. the prevailing wage requirements for public works • projects (Labor Code Section 1770• et seq.).No more dian ° eent (49%) of .1.° persons sening on the Board may be interested persons. An intefested pefson is (a) any PeFson compensated by the GoFporation fef sepvioes rendered to it within the pfevious twelve (12) 1V' whether a fell ♦ . paFt time employee, .sdependent nn ntfaetn r_ of otherwise, nn excluding any eampensation paid to a dimeteF as difeeief; and (b) any brother, sister, aneestef, deseendent, spouse, brother in law, sister in law, daughter in law, mothef in law, of fathef in law of surh person. lloweveF, any N4olation of the provisions of this pafagraph shall not afle-e thevalidii), or enfareeability of any transaetion entered into by the . r 2.5 ELECTION AND TERM OF OFFICE OF DIRECTORS At eaeh annual meeting of the Board, the a t,.«.. other iha the eat held by the Ageney Exeoutive Direetof ... «..,..,,.t to S t n 2.3 b f ..hall be ele t d • hold ff e until the next al Fne °° Each eleete"rector, including a director selected by the Board to fill a vacancy, shall hold office until the expiration of the term for which elected and until a successor has been elected and qualified, except in the case of the death, resignation, or removal ' of such a director. Any director not elected at an annual meeting may be elected at a special ' 4847-0251-9556.1 4 meeting held for that purpose or by written ballot. Any director elected as provided in the a" foregoing sentence shall hold office until the next annual meeting or until a successor has been r elected and qualified. 2.6 RESIGNATION AND VACANCIES Any director may resign effective upon giving oral or written notice to the Chairman of the Board, the President, the Secretary or the Board, unless the notice specifies a later time for W the effectiveness of such resignation. If the resignation of a director is effective at a future time, the Board may elect a successor to take office pursuant to Section 2.5 when the resignation ' becomes effective. Except on notice to the Attorney General of the State of California, no director may resign if the Corporation would be left without a duly elected director or directors. ' I Wacancies on the Board may thereafter be filled by a majority of the remaining directors, or if the number of directors then in office is less than a quorum by (i) unanimous written consent of the directors then in office, (ii) the affirmative vote of a majority of the FM directors then in office at a meeting held pursuant to notice or waivers of notice, or (iii) a sole remaining director. Each director so elected shall hold office until the next annual meeting of the Board and until a successor has been elected and qualified, or until his or her death, resignation or removal. r A vacancy or vacancies in the Board shall be deemed to exist(i)in the event of the death, resignation or removal of any director, (ii)if the Board by resolution declares vacant the office of a director who has been declared of unsound mind by an order of court or convicted of a felony or(iii) if the authorized number of directors is increased. 2.7 PLACE OF MEETINGS. r EET-rwiG nv Trnr EPHONc ' Regular meetings of the Board may be held at any place within of reside the City of San Bernardin the State of Califernia which has been designated from time to time by resolution of ' the Board. In the absence of such a designation, regular meetings shall be held at the Principal Office of the Corporation. Special meetings of the Board may be held at any place within or etAside the State EWCelifomia the City of San Bernardino which has been designated in the notice ' of the meeting or, if not stated in the notice or if there is no notice, at the pPrincipal e°°ttive eOffice of the Corporation. Members of the Board may paFtieipate in a meeting through the use ef eonfe. telephone '1 eommuniemions equipment, a long as all ,!:reed,. N paFtieipating eh .. he another. n,. ..ti,.., meeting p nt t.. this paragraph a nsfit..te,.. 6 �r r�` r o r person at such faee4ing-. 2.8 CONDUCT OFR6GAR MEETINGS j All Rregular and special meetings of the Board may be held withotit tlet'eshall be held and conducted, and with notice provided, all as required pursuant to the Brown Act, andi€the time and place of such regular meetings areshall be fixed by the Board. The City Attorney shall ' 4847-0251-9556.1 - 5 be entitled to attend all such meetings at which members of the Mayor and Common Council are in attendance as directors of the Corporation. 2.9 SPECIAL N1EE DWf9. NQT GF[RESERVED I Beafd fef an), pufpose or ptupeses may be called at any time by an), twe (2) direetofs, the Notiee F h time d t .. ,.F ,.......:.d meetings shall be delivered_p ...,11., or by telephene to eaeh director of sent by fifs! elass mail, ielegFam, eharges prepaid, or by teleeepieF, r r r r if h mailed, shall be deposited in she T Isited States mail at least c ._. _ r (4) days before L time F the holding e fthe meeting if the notice is delivered personally telephone L teleoepier el it shall be delivered personally OF by telephone _ by 1 h telegraph least Ferty eight (18) ho before the ti... of the q r ,, r.. ,. ..r e holding F 1. meeting. A ei--al d nefiee given personally «by telephene may be a ..d .� ' H to the direeter er to a person the effle of the direct,._ ..ho the person giving the notice the...... ose of the.«eeti..,. 2.10 QUORUM A majority of the authorized number of directors shall constitute a quorum for the transaction of business, except to adjourn as provided in Section 2.12 of these Bylaws. Every act or decision done or made by a majority of the directors present at a meeting duly held at which a quorum is present is the act of the Board, subject to the provisions of the California Nonprofit Public Benefit Corporation Law, the Articles of Incorporation and other applicable law, including without limitation, those provisions relating to (i) approval of contracts or transactions in which a director has a direct or indirect material financial interest; (ii) approval of certain transactions between corporations having common directorships;; (iii) creation and appointment of committees; and-(iv) indemnification of directors; and (v) the Political Reform Act; and NO the Brown Act. iA meeting at which a quorum is initially present may not continue to transact business and may only adjourn the meeting to a subsequent date and time ' of difeeteFs, 'F y approved d L y least j y C the required f;af at 2.11 WAIVER OF NOTICE Notice of a meeting need not be given to any director who signs a waiver of notice or a consent to holding the meeting meeting,or who attends the meeting without protesting the lack of notice to such director prior to the meeting or at its commencement. All such waivers, consents, and approvals shall be filed 4847-0251-9556.1 6 with the corporate records or made a part of the minutes of the meeting. n •• aiveF,.r notiee Bova no! speeify the puTese of any regular or special meeting of the Reard 2.12 ADJOURNMENT A majority of the directors present, whether or not a quorum is present, may adjourn any meeting to another time and place and in the event no directors are then present, the Secretary of the Corporation or a duly authorized representative may adjourn the meeting from time to time until a quorum is present in conformity with the Brown Act. 2.13 NOTICE OF ADJOURNED REGULAR MEETING r If a regular meeting is adjourned for more than twen4y `of "^` hours, notice of any adjournment to another time and place shall be given as soon as practicable after the adiournment has been determined, prior to t the time oft the adjourned meet^^, to the directors who were not present at the time of the adjournment. 2.14 NO ACTION BY WRITTEN CONSENT WITHOUT n MEE LING NoAny action required or permitted to be taken by the Board may be taken without the conduct of an officially noticed and duly conduced meeting of the Board., :r l rnem err ,.ra,° Board individually of collectively consent in writing to sueh aetion. Sueh written eensent 0 s shall be filed with the minutes of the proeeedings of the Board. Suehaetionby 'wittefl eensent hall have thesame r a Pffeet as a tuianimous vote of the a d 2.15 [ RESERVED Innna AND COMPENS n Trnt r OF DIRECTOR -AND feimbtffsenient ef Lgipenses as may be fixed or detefmined by resolution of the Board. This other capacity as an offieer, agent, employee or otherwise and reeeiving eampensation fbF these ARTICLE III COMMITTEES 3.1 COMMITTEES OF DIRECTORS The Board may, by resolution adopted by a majority of the authorized number of . directors, designate one or more committees, each consisting of two (2) or more directors, to serve at the pleasure of the Board. The Board may designate one or more directors as alternate ' members of any committee, who may replace any absent member at any meeting of the 4547-0251-9556.1 7 r r committee. The appointment of members or alternate members of a committee requires the vote of a majority of the authorized number of directors. Any such committee shall have authority to act in the manner and to the extent provided in the resolution of the Board and may have all of _ the authority of the Board, except with respect to: (a) The filing of vacancies on the Board or in any committee. (b) The fixing of compensation of the directors for serving on the Board or on any committee. ' (c) The amendment or repeal of these Bylaws or the adoption of new Bylaws. ' (d) The amendment or repeal of any resolution of the Board which by its express terms is not so amendable or repealable. (e) The expending of corporate funds to support a nominee for director after more people have been nominated for director than can be elected; ' (f) The creation of any other committees of the Board or the appointment of members thereof. (g) The approval of any contract or transaction to which the Corporation is a party and in which one or more of its directors has a material financial interest, except as special approval is provided for in Section 5233(d)(3) of the California Corporations Code. 3.2 MEETINGS AND ACTION OF COMMITTEES Meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions of the Brown Act and Article 1I of these Bylaws, Section 2.7 ' (place of meetings), Section 2.8 (regular meetings), Section 2.9 (special meetings and notice), Section 2.10 (quonrn), Section 2.11 (waiver of notice), Section 2.12(adjournment), Section 2.13 (notice of adjourned meetings), and Section 2.14 no action bfy vaitten eensefA -without a meeting), with such changes in the context of those Bylaws as are necessary to substitute the committee and its members for the Board and its members; provided, however, that the time of regular meetings of committees may be determined either by,resolution of the Board or by resolution of the committee, that special meetings of committees may also be called by resolution of the Board, and that notice of special meetings of committees shall also be given to all alternate members, who shall have the right to attend all meetings of the committee. The Board may adopt rules for the government of any committee not inconsistent with the provisions of these Bylaws. 4847-0251-9556.1 8 r r ARTICLE IV . OFFICERS 4.1 OFFICERS r The officers of the Corporation shall be a President, Vice-President, Secretary and Chief Finan,�.Treasurer. The Cefperatien „ also have, at the discretion of the Boaf, a more Assistam TreasufeFs of sueh other offieers as may be appointed in aeoeFdanee with the . . . — of Section 4.3 of these Bylaws. Any number of offices may be held by the same person except that neither the Secretary nor the f 14ef Finaneial Of eerTreasurer may serve concurrently as eiNwr-President . ' 4.2 ELECTION OR APPOINTMENT OF OFFICERS The officers of the Corporation, except such officers as may be appointed in accordance with the provisions of Section 4.3 or Section 4.5 of these Bylaws, shall be chosen by the Board and shall serve at the pleasure of the Board, subject to the rights, if any, of an officer under any contract of employment. ' 4.3 SUBORDINATE OFFICERS The Board may appoint, or may empower the Chairman of the Board or the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period,have such authority, and perform such duties as are provided in these Bylaws or as the Board may from time to time determine. 4.4 REMOVAL AND RESIGNATION OF OFFICERS Subjeet to the right. if any, of an off cer and f any eofa_aet of employment, , A 11 officers serve at the pleasure of the Board and any officer may be removed, either with or without cause, by the Board at any regular or special meeting of the Board or, except in the case of an officer chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board. Any officer may resign at any time by giving written notice to the Corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Corporation under any contract to which the officer is a party. 4.5 VACANCIES IN OFFICES .4847-0251-9556.1 9 r A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to .+ that office. 4.6 ( RESERVED ]CHAIRMAN OF THE430 Rr, r The Chainnan F h Beard, if h ffi .. he eleeted, ..hall if prese«t, preside at meetings of the Board and exercise nd pe..f..... seeh other«,....e ..d duties a y From thne �� r to tifne be assigned by the R ..d e as may he preseribed by these Bylaws. if there is no President, theft the Chakman of !he Board shall also be the ehief executive offieer of th G a' d shall h have the powers and duties prescribed ' Seetion i 47 f these Rjle. ,_. 4.7 PRESIDENT Subjeet to sueh .. if e he given h., the R..e.d to the may Che:.....e« of the R...._d if there he sueh an officer, •The President shall be the Chief Executive Officer of the Corporation and shall, subject to the contro of the Board, have general supervision, direction, and control of the business and the officers of the Corporation. The ' President shall preside, 4n. h ,.'„„_..__ or .........:........ of _ !'"_:______ of the R__.a, at all meetings of the Board. The President shall have the general powers and duties of management usually vested in the office of President of a corporation, and shall have such other powers and duties as may be prescribed by the Board or these Bylaws. 4.8 VICE PRESIDENT In the absence or disability of the President, the Vice President, if any, shall perform all the duties of the President and when so acting shall have all the powers of, and be subject to all the restrictions upon, the President. The Vice Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board,these Bylaws,the President or the Chairman of the Board. 4.9 SECRETARY The Secretary, or Assistant Secretary if such officer is so appointed, shall keep or cause to be kept, at the Principal Office of the Corporation or such other place as the Board may direct, a book of minutes of all meetings and actions of directors and committees of directors. The minutes shall show the time and place of each meeting, whether regular or special (and, if special, how authorized and the notice given), the names of those present at directors' meetings or committee meetings, and the proceedings thereof. The Secretary or Assistant Secretary shall give, or cause to be given, notice of all meetings of the Board required to be given by law or by these Bylaws. The Secretary or r Assistant Secretary shall keep the seal of the Corporation, if one be adopted, in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or by these Bylaws. I 1 4847-0251-9556.1 10 4.10 CillEF ❑DI A- rICI A r n -F4C-E TREASURER ' I The 04e f Financial O ffieo_Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of the Corporation, including accounts of its assets, liabilities, receipts, disbursements, gains, losses,capital and retained earnings. The Treasurer shall send or cause to be given to the directors such financial statements and reports as are required to be given by law, by these Bylaws, or by the Board. The books of account shall at all reasonable times be open to inspection by any director. The Treasurerchief Financial Of fie._ shall deposit all money and other valuables in the name and to the credit of the Corporation with such depositaries as may be designated by the Board. The TreasurerChief Fine .,.:°l ^f°°- shall disburse the funds of the Corporation as may be ordered by the Board, shall render to the President and directors, whenever they request it, an account of all of his or her transactions as Chief Finaneial OfficeFTreasurer and of the financial I F. condition of the Corporation, and shall have such other powers and perform such other duties as may be prescribed by the Board or these Bylaws. 4.11 DEPOSIT AND DISBURSEMENT The TreasurerChief Fina..eial Offie,f shall deposit, or cause to be deposited, all money ' and other valuables in the name and to the credit of the Corporation with such depositories as the Board may designate, shall disburse the Corporation's funds as the Board may order, shall render to the President and directors, when requested, an account of all transactions as TreasurerGiief Financial and of the financial condition of the Corporation, and shall have such other powers and perform such other duties as the Board or the Bylaws may prescribe. w 4.12 BOND w If required by the Board, the TreasurerChief Finaneial Offiee_ shall give the Corporation a bond in the amount and with the surety or sureties specified by the Board for faithful performance of the duties of the office and for restoration to the Corporation of all of its books, papers, vouchers, money, and other property of every kind in the possession or under the control of the Treasurerchief s: : t nr _ on his or her death, resignation, retirement or removal from office. ARTICLE V INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES, AND OTHER AGENTS 5.1 INDEMNIFICATION To the fullest extent permitted by law, this Corporation shall indemnify its directors, officers, employees and other persons described in Section 5238(a) of the California 4547-0251-9556.1 11 r Corporations Code, including persons formerly occupying any such positions, against all expenses, judgments, fines, settlements and other amounts actually and reasonably incurred by r them in connection with any "proceeding," as that term is used in that section of the California Corporations Code and including an action by or in the right of the Corporation, by reason of the t fact that such person is or was a person described by that Section. "Expenses," as used in this Bylaw, shall have the same meaning as in Section 5238(a)of the California Corporations Code. 5.2 APPROVAL OF INDEMNITY On written request to the Board by any person seeking indemnification, the Board shall promptly determine under Section 5238(e) of the California Corporations Code whether the standard of conduct set forth in Sections 5238(b) and (c)have been met and, if it has, the Board shall authorize indemnification. 5.3 PAYMENT OF EXPENSES IN ADVANCE ' To the fullest extent permitted by law and except as otherwise determined by the Board, expenses and attorneys' fees incurred by any persons described in Section 5.1 in defending any civil or criminal action or proceeding for which indemnification is required pursuant to Section 5.1, or if otherwise authorized by the Board, shall be paid by the Corporation in advance of the final disposition of such action or proceeding upon receipt of an undertaking by or on behalf of the indemnified party to repay such amount if it shall ultimately be determined that the indemnified party is not entitled to be indemnified for those expenses. 5.4 INSURANCE INDEMNIFICATION The Corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation against any liability asserted against or incurred by such person in such capacity or arising out of that person's status as such. ' 5.5 AMENDMENT, REPEAL OR MODIFICATION ' Any amendment, repeal or modification of any provision of this Article V shall not adversely affect any right or protection of a director or agent of the Corporation existing at the time of such amendment,repeal or modification. ' ARTICLE VI RECORDS AND REPORTS 6.1 RECORDS; INSPECTION BY DIRECTORS The Corporation shall keep adequate and correct books of records of account and written minutes of the proceedings of its Board and committees of the Board. Every director shall have the absolute right at any reasonable time to inspect and copy all books, records, and documents 4847-0251-9556.1 12 of every kind and to.inspect the physical properties of the Corporation. Such inspection by a director may be made in person or by an agent or attorney and the right of inspection includes the right to copy and make extracts. 6.2 ANNUAL lTAUDIT The Board shall furnish to the directors and make available for public inspection and distribution not later than one hundred twenty (120) days after the close of the Corporation's fiscal year an annual eeperauditt conducted by an independent firm of certified public accountants. The repoApudit shall contain the following information, in appropriate detail, for the fiscal year: (a) The assets and liabilities, including trust funds, of the Corporation as of the end of the fiscal year. ' (b) The principal changes in assets and liabilities, including trust funds,during the fiscal year. (c) The revenue and receipts of the Corporation, both unrestricted and restricted to particular purposes, for the fiscal year. ' (d) The expenses and disbursements of the Corporation, for both general and restricted purposes, during the fiscal year. ' (e) (e)---Any information required by Section 6.3 of these Bylaws. (e) Any other information required by generally accepted accounting principles and governmental accounting requirements. The annual repertaudit shall be accompanied by any report on it of independent certified ' un blic accountants or making recommendations and reviews of management and other procedures of the Corporation., if there is no stieh reparr, by the eertifie°t° of an and iefized ,.rr.,er of the Corporation thaIr ..ueh statements were ....epafed A4tliout audit from the r...-..era4ien. books and re „_ds This re 0 ein of an annual Fepe.t shall not apply if two Gorpefa4ian reeeives less 4han Twenty Five Thousand Dollars the fiscal however,ever that two information s eified above for ifte fusion in annual report must be furnished annually to all diFROOM and to any inernbef who reques4s it i ` writing. 6.3 ANNUAL STATEMENT As part of the annual auditrepert to be firmished to the directors and to the public pursuant to Section 6.2 of these Bylaws, the Board shall furnish to the directors an annual statement of any transaction or indemnification of the following kinds: 4847-0251-9556.1 13 - r (a) Any transaction (i) in which the Corporation, its parent, or its subsidiary was a party, (ii) in which an "interested person" had a direct or indirect material interest, �r and (iii) which involved more than Fifty Thousand Dollars ($50,000), or was one of a number of transactions with the same interested person involving, in the aggregate, more than Fifty Thousand Dollars ($50,000). For the purposes of this section, an "interested person" is any director or officer of the Corporation or its parent or subsidiary; however, a mere common directorship shall not be considered a material financial interest. I ' (b) Any indemnifications or advances aggregating more than Ten Thousand Dollars ($10,000) paid during the fiscal year to any officer or director of the Corporation pursuant to Article V of these Bylaws unless such indemnification was previously approved by the directors under Section 5238(e)(1) of the California Corporations Code. t6.4 REPORTS TO SECRETARY OF STATE The Board shall cause to be filed with the Secretary of State an annual statement containing the following information: (a) The names and addresses of its President, Secretary and TreasurerEhief Financial Office . (b) The street address of its Principal Office. (c) A designation of an agent for service of process. ' The statement shall be filed on the form prescribed by the Secretary of State. ' ARTICLE VII GENERAL MATTERS ' 7.1 CHECKS, DRAFTS, OF INDEBTEDNESS From time to time,the Board shall determine by resolution which person or persons may ,. sign or endorse all checks, drafts, other orders for payment of money,notes or other evidences of indebtedness that are issued in the name of, or payable to, the Corporation, and only the persons so authorized shall sign or endorse those instruments. 7.2 CORPORATE CONTRACTS AND INSTRUMENTS:HOW EXECUTED The Board, except as otherwise provided in these Bylaws, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the Corporation; such authority may be general or confined to specific instances. Unless so authorized or ratified by the Board or within the agency power of an officer, no officer, agent or employee shall have any power or authority to bind the Corporation 4847-0251-9556.1 14 by any contract or engagement or to pledge its credit or to render it liable for any purpose or for ' any amount. 7.3 CONSTRUCTION: DEFINITIONS ' Unless the context requires otherwise, the general provisions, rules of construction and definitions in the California Nonprofit Public Benefit Corporation Law shall govern the ' construction of these Bylaws. Without limiting the generality of this provision, the singular number includes the plural, the plural number includes the singular, and the term "person" includes both a corporation and a natural person. ' ARTICLE VIII AMENDMENTS 8.1 AMENDMENT BY DIRECTORS Subiect to compliance with the Provisions of Sections 2.4 and 2.8, Tthe Board may adopt, t amend or repeal these Bylaws except that the Board may not extend the term of a director beyond that for which the director was designated. 8.2 RECORD OF AMENDMENTS Whenever an amendment or new Bylaw is adopted, it shall be copied in the book of minutes with the original Bylaws. If any Bylaw is repealed, the fact of repeal, with the date of the meeting at which the repeal was enacted or written consent was filed, shall be stated in said book. ARTICLE IX ' INTERPRETATION 9.1 AMENDMENTS TO LAW ' Reference in these Bylaws to any provision of the California Corporations Code, specifically the Nonprofit Public Benefit Corporation Law, shall be deemed to include all amendments thereof. 4847-0251-9556.1 15 LCITIES LEAGU EOF CALI FOPN IA 00 K Street, Suite 400• Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org Article from City Advocate Weekly January 10,2011 Governor's Budget Eliminates Redevelopment Agencies, Enterprise Zones and Realigns State Services to Local Governments League Continues to Analyze Budget's Effects on Local Government Gov.Jerry Brown has released his f-Y 2011-12 state budget proposal and, as expected, the state's financial situation continues to be bleak With a$25.4 billion deficit.The Governor's budget proposes$26.4 billion in solutions,allowing for$1 billion reserve.The proposal includes the elimination of redevelopment agencies and enterprise zones to save$1.7 billion and$924 million respectively, as well as the realignment of state services such as fire, court security,community-based corrections,mental health services,foster care and adult protective services to local government. While the Governor said he recognized some of the positive results of redevelopment, he made it clear in ' his remarks that shifting increased property taxes resulting from redevelopment back to the schools was a priority. From a policy standpoint, such a radical proposal makes no sense in a stale with unemployment rate of more than 12 percent,a monstrous infrastructure deficit and recently passed policies championing more - infill development. Redevelopment,which has been around since the 1950s, is a tool for building things. It builds and improves communities,spurs job growth and taxes and is the most significant provider of infrastructure, urban development and affordable housing in the state. Enterprise zones are one of the few economic development tools that cities and counties have to bring jobs to depressed areas. This proposal will hurt our underserved and distressed cities and communities. It will cost California thousands of jobs.The reality is that the plan to eliminate redevelopment agencies will bring very little financial benefit to the state and will actually move the state backward in terms of land use and infill Ir development. In addition, the League is reviewing the constitutionality of the realignment proposal under Proposition 22,and other constitutional provisions. Just a mere two months ago, California voters picked their way through a crowded ballot and approved Prop. 22 by 61 percent,a measure designed to protect various local revenues—including redevelopment—from state raids. The voters'position on this issue was no surprise because repeatedly they have voted to protect local revenue from the state—take for example Prop. 1A of 2004,which r passed by more than 80 percent. Moreover, poll after poll demonstrates that voters view their local governments as much more accountable and trustworthy than the state. While other states,and even the federal government,are working to stabilize and revitalize our economy, the proposal to eliminate enterprise zones and redevelopment agencies move California in the opposite direction. The budget proposal assumes that voters will approve a five-year extension of taxes sun-setting this year —a 1 percent sales tax and 0.5 percent vehicle license fee that they previously rejected.The revenues of these taxes will maintain the current level of funding for K-12 schools and COPS(Citizens'Option for Public Safety)/Booking Fees as well as support the realignment proposal.The Governor believes that after five years the economy will have recovered enough the state can resume funding, but there has been no indication as to how. ' program)would be eliminated. This amount totals$30.4 million($12.9 million cut to the PLF,$12.9 million cut to the TBR and $4.6 million cut to the literacy program). Transportation Reenactment of the Gas Tax Swap.The Governor proposes to reenact the Gas Tax Swap, ' approved March 2010,as required by Prop.n 26(2010).This action will ensure the continuation of transportation funding as well as provide state General Fund relief. Truck Weight Fees.Shifts weight fees from the State Highway Account to pay for transportation- related debt service and to provide state General Fund relief.This was previously being accomplished using Highway Users Tax Account revenues which is now prohibited by Proposition 22. Public Contracting. Proposes to shift$7.2 million in costs to local agencies for developing CalTrans Project Initiation Documents for local projects. Proposition 1 B.Appropriates$2.3 billion for capital funding of bond projects, including $22 million for local bridge seismic safety and$200 million for state-local partnership programs. Transit. In an effort to bring the level of transit funding in line with what is required by Prop.22, appropriates additional funding to ensure local transit agencies receive the equivalent of 75 percent of ' diesel sales tax revenues. #### i W EAT 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO APPROVING A CERTAIN COOPERATIVE FINANCING AGREEMENT BY AND BETWEEN THE 4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 5 ("AGENCY") AND THE SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP, INC., FOR THE FINANCING, FUNDING AND 6 UNDERTAKING OF VARIOUS REDEVELOPMENT RELATED ACTIVITIES OF THE AGENCY WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation 8 9 and charter city, duly organized and existing pursuant to the provisions of the constitution of the State of California; and 10 11 WHEREAS, the Community Development Commission of the City of San Bernardino (the 12 "Commission") is the governing body of the Redevelopment Agency of the City of San Bernardino i� 13 (the "Agency"), a public body, corporate and politic, organized and existing pursuant to the 14 California Community Redevelopment Law (Health and Safety Code Section 33000, et seg.) (the "CRL"); and 15 16 WHEREAS, the Agency was established by appropriate action of the City, for the purposes 17 of exercising redevelopment powers within the City boundaries through the adoption and approval 18 of various redevelopment project areas that are currently in existence within the City (the "Project 19 Areas") as further described in the applicable redevelopment plans accompanying such Project Areas (the"Redevelopment Plans"); and 20 21 WHEREAS, SCRP was formed pursuant to the non-profit corporation laws of the State of 22 California and was formerly known as the Economic Development Corporation, and pursuant to an ' 23 amendment of its corporate documents, SCRP duly approved a name change as such currently exists 24 for the purposes of assisting in the implementation of various redevelopment initiatives within thf 25 City and to undertake such other activities, programs and projects of the Agency and the City as are then deemed advisable by SCRP through its board of directors; and 26 WHEREAS, pursuant to the Community Redevelopment Law (Health & Safety Code 27 28 Section 33000, et seq.) (the "CRL" or the "Authorizing Provisions"), the Agency may enter into a cooperation agreements and financing agreements with other public agencies, private entities and a ®RAF 1 non-profit corporations to carry out its redevelopment and other public infrastructure development r 2 purposes; and 3 WHEREAS, SCRP has requested that the Agency act at this time to assist SCRP with the 4 financing of certain public infrastructure and the implementation of other programs and activities — 5 located within the Project Areas, together with other public infrastructure that is necessary to 6 support the long-term development and redevelopment of the portions of the City located within the r A 7 Project Areas, namely, those public improvements, public infrastructure and other developments 8 and activities, programs and projects all as set forth in the current year 2010-2011 Budget of the - , 9 Agency and the Downtown Vision Plan for the Theater District of the Agency as indicated on 10 Exhibit "A" (the "Programs, Projects and Activities') of the Cooperative Financing Agreement by ' 11 and between the Agency and SCRP relating to the$300,000,000 Redevelopment Agency of the City 12 of San Bernardino Redevelopment Project Areas Capital Improvement Projects (the "Financing 13 Agreement") plus those other public improvements and public infi-astructure as set forth on the 14 Implementation.Plan of the Agency as indicated on Exhibit `B" of the Financing Agreement (the 15 "Implementation Plan Public Improvements") (collectively, the "Redevelopment Related 16 Improvements"); and 17 WHEREAS, in addition to the Redevelopment Related Improvements, SCRP, in furtherance 18 of the redevelopment of various areas of the City and in particular with the Project Areas, requires 19 the Agency to commit to certain levels of additional financing amounts to SCRP for the fulfillment 20 of the contractual commitments and other financial obligations as set forth on Exhibit "C" of the ' 21 Financing Agreement(the"Other SCRP Contractual Obligations"); and 22 WHEREAS, the Agency has determined to finance the Redevelopment Related ' 23 Improvements and the Other SCRP Contractual Obligations by the incurring of the indebtedness as 24 required by the Financing Agreement, including, but not limited, the issuance of one or more EB-5 25 foreign investor direct loan obligations, other privately placed loans with commercial lenders and 26 private parties, the issuance of municipal bonds and the pledge of the tax increment revenues of the 27 Agency to SCRP as set forth in the Financing Agreement during the period of time that the Agency 28 is entitled to receive tax increment revenues pursuant to the Redevelopment Plans for the Project 2 . FT Y1 Areas as the financial obligations of the Agency as shall he applicable for the period of time that 2 such financial obligations of the Agency to SCRP are payable under the Financing Agreement; and ' 3 WHEREAS, in order to secure the financial obligations of the Agency to SCRP as provided 4 in the Financing Agreement, the Agency desires to transfer to SCRP, the Agency real property 5 assets as described on Exhibit "D" of the Financing Agreement (the "Agency Real Property 6 Assets") which shall be operated and managed by SCRP with the tax increment revenues to be 7 provided by the Agency to SCRP for such purposes at such time as determined by SCRP in its sole pu e 8 and absolute discretion as further provided in the Financing Agreement; and 9 WHEREAS,the Agency and SCRP seek to provide through the Financing Agreement that in 10 addition to the obligations as incurred pursuant to the Financing Agreement, the Agency shall 11 pledge to SCRP additional revenues as necessary to support the ongoing contractual and budgeted 12 obligations and commitments of SCRP as shall be incurred in furtherance of the improvement of the ■ 13 Redevelopment Related Improvements and the Other SCRP Contractual Obligations and to fund the 14 construction and/or financing of the Redevelopment Related Improvements and the Other SCRP -• 15 Contractual Obligations; and 16 WHEREAS, consistent with the SCRP obligations incurred pursuant to the Financing 17 Agreement and the commitment of the Agency to fulfill its financial commitments to SCRP, during 18 the Term (as defined in Section 1.03) of the Financing Agreement, the Agency tax increment 19 revenues available pursuant to the Redevelopment Plans for the Project Areas shall become 20 revenues attributed to SCRP, and the Agency therein pledges the tax increment revenues for the 21 payment and repayment of the obligations to pay for and for the administration and undertaking of 22 the Redevelopment Related Improvements, the Other SCRP Contractual Obligations and/or the 23 other obligations as incurred pursuant to the Financing Agreement; and 24 WHEREAS, the Commission has duly considered the terms of such transactions as 25 contemplated herein and has determined that it is in the best interests of the City and Agency to 26 enter into the Financing Agreement to finance said Redevelopment Related Improvements and the 27 other obligations as incurred pursuant to the Financing Agreement, and thus desire to approve and 28 authorize said Financing Agreement. r I , 3 DRAFT `r 1 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 2 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 3 FOLLOWS: 4 Section 1. Approval of Assistance with Financing. The Commission hereby approves " 5 the Agency's financing of the Redevelopment Related Improvements and the Other SCRP 6 Contractual Obligations by the incurring of indebtedness pursuant to the Financing Agreement 7 including, but not limited, the issuance of one or more EB-5 direct loan obligations, other privately 8 placed loans with commercial lenders and private parties, the issuance of municipal bonds and the 9 pledge of the tax increment revenues of the Agency to SCRP as set forth in the Financing 10 Agreement during the period of time that the Agency is entitled to receive tax increment revenues 11 pursuant to the Redevelopment Plan for the Project Areas as the financial obligations of the Agency 12 as shall be applicable for the period of time that such financial obligations of the Agency to SCRP ' 13 are payable thereunder. PW 14 Section 2. Approval of Security Regarding the Financial Obli ations. The Commission 15 hereby approves the transfer to SCRP of the Agency's real property assets as described on Exhibit 16 "D" of the Financing Agreement (the "Agency Real Property Assets'), which shall be operated and 17 managed by SCRP with the tax increment revenues to be provided by the Agency to SCRP for such 18 purposes at such time as determined by SCRP in its sole and absolute discretion as further provided 19 in the Financing Agreement. 20 Section 3. Pledge of Additional Revenue. 21 A. The Commission hereby approves the pledge from the Agency to SCRP of additional 22 revenues as necessary to support the ongoing contractual and budgeted obligations and ' 23 commitments of SCRP and to fund the construction and/or financing of the Redevelopment Related 24 Improvements and the Other SCRP Contractual Obligations as outlined in the Financing Agreement. 25 B. The Commission hereby approves that the Agency tax increment revenues available 26 pursuant to the Redevelopment Plans for the Project Areas become revenues attributed to SCRP, 27 and the Agency's pledge of the tax increment revenues for the payment and repayment of the 28 4 LRAFT 1 obligations to pay for the Redevelopment Related Improvements, the Other SCRP Contractual 2 Obligations and/or the other obligations as incurred pursuant to the Financing Agreement. 3 Section 4. Approval of Terms and Provisions. The Commission hereby approves the 4 terms and provisions of the Financing Agreement and the totality of the Agency's obligations 5 thereunder. 6 Section 5. Approval of Final Form of Financing Agreement. The Commission hereby 7 approves the form of the Financing Agreement in the form on file with the Secretary, together with 8 any changes therein or additions thereto as may be approved by the Chair or the Executive Director. 9 The Commission hereby further authorizes and directs the conversion of the form of the Financing ' 10 Agreement into the final form thereof, together with such changes or modifications as deemed 11 necessary or desirable by the Chair or the Executive Director upon the recommendation of Agency 12 Counsel. The Chair or the Executive Director or such other authorized officer of the Commission is 13 hereby authorized and directed to execute and deliver, and the Secretary or Assistant Secretary is 14 hereby authorized and directed to attest to,the final form of the Financing Agreement. 15 Section 6. Official Action. The Chair, Vice-Chair, Secretary, Assistant Secretary, I ' 16 Executive Director, Agency Counsel and any and all other members and officers of the Agency are 17 hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all 18 things and take any and all actions, including execution and delivery of any and all assignments, 19 certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and 20 other documents, which they,or any of them, may deem necessary or advisable in order to fulfill the 21 obligations of the Agency under the Financial Agreement. Whenever in this Resolution any officer 22 of the Agency is authorized to execute or countersign any document or take any action, such 23 execution, countersigning or action may be taken on behalf of such officer by any person designated 24 by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. .. 25 Section 7. Effective Date. This Resolution shall become effective immediately upon 26 adoption by this Commission. 27 28 r r 5 RAFT 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN 2 COOPERATIVE FINANCING AGREEMENT BY AND BETWEEN THE 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE SUSTAINABLE COMMUNITIES REINVESTMENT 4 PARTNERSHIP, INC., FOR THE FINANCING, FUNDING AND UNDERTAKING OF VARIOUS REDEVELOPMENT RELATED 5 ACTIVITIES OF THE AGENCY 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community � 7 Development Commission of the City of San Bernardino at a meeting 8 thereof,held on the day of 2010,by the following vote to wit: 9 Commission Members: Ayes Nays Abstain Absent ., 10 MARQUEZ 11 DESJARDINS 12 BRINKER _ r — 13 SHORETT — 14 KELLEY 15 JOHNSON _ 16 MC CAMMACK — 17 — 18 Secretary 19 20 The foregoing Resolution is hereby approved this day of 2010. 21 22 23 Patrick J. Morris, Chairperson Community Development Commission 24 of the City of San Bernardino 25 26 Approved as to Form: 27 By: 28 Agency Counsel D Lc_2�A COOPERATIVE FINANCING AGREEMENT by and between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP, INC., A CALIFORNIA NON-PROFIT CORPORATION t Relating to the $300,000,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REDEVELOPMENT PROJECT AREAS CAPITAL IMPROVEMENT PROJECTS Cooperative Agreement-1-18-11 r DRAFT COOPERATIVE FINANCING AGREEMENT •- THIS COOPERATIVE FINANCING AGREEMENT is made and entered into as of January_, 2011 (this "Financing Agreement'), by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic existing under the laws of the State of California (the "Agency") and the Sustainable Communities Reinvestment Partnership, Inc.,a California non-profit corporation("SCRP"), as follows. WITNESSETH: WHEREAS, the Agency was established by appropriate action of the City of San !+ Bernardino (the "City"), for the purposes of exercising redevelopment powers within the City boundaries through the adoption and approval of various redevelopment project areas that are currently in existence within the City(the "Project Areas") as further described in the applicable redevelopment plans accompanying such Project Areas(the "Redevelopment Plans"); and r WHEREAS, SCRP was formed pursuant to the non-profit corporation laws of the State ' of California and was formerly known as the Economic Development Corporation, and pursuant to an amendment of its corporate documents, SCRP duly approved a name change as such currently exists for the purposes of assisting in the implementation of various redevelopment initiatives within the City and to undertake such other activities, programs and projects of the Agency and the City as are then deemed advisable by SCRP through its board of directors; and WHEREAS, pursuant to the Community Redevelopment Law (Health & Safety Code Section 33000, et seq.) (the "CRU or the "Authorizing Provisions"), the Agency may enter into cooperation agreements and financing agreements with other public agencies,private entities and ' non-profit corporations to carry out its redevelopment and other public infrastrucure development purposes;and WHEREAS, SCRP has requested that the Agency act at this time to assist SCRP with the r financing of certain public infrastructure and the implementation of other programs and activities located within the Project Areas, together with other public infrastructure that is necessary to support the long-term development and redevelopment of the portions of the City located within the Project Areas, namely, those public improvements, public infrastructure and other developments and activities, programs and projects all as set forth in the current year 2010-201 Budget of the Agency and the Downtown Vision Plan for the Theater District of the Agency as indicated on Exhibit "A" (the "Programs, Projects and Activities") as attached hereto and incorporated herein by reference plus those other public improvements and public infrastrucure as set forth on the Implementation Plan of the Agency as indicated on Exhibit "B" (the "Implementation Plan Public Improvements") as attached hereto and incorporated herein by _ reference(collectively,the"Redevelopment Related Improvements"); and °i WHEREAS, in addition to the Redevelopment Related Improvements, SCRP, in fiutherance of the redevelopment of various areas of the City and in particular with the Project Areas, requires the Agency to commit to certain levels of additional financing amounts to SCRP for the fulfillment of the contractual commitments and other financial obligations as set forth on 1 Cooperative Agreement-1-18-11 1 '- DRAFT Exhibit "C" (the "Other SCRP Contractual Obligations") as attached hereto and incorporated herein by reference; and r WHEREAS, the Agency has determined to finance the Redevelopment Related Improvements and the Other SCRP Contractual Obligations by the incurring of the indebtedness as required by this Financing Agreement, including, but not limited,the issuance of one or more EB-5 foreign investor direct loan obligations, other privately placed loans with commercial lenders and private parties, the issuance of municipal bonds and the pledge of the tax increment revenues of the Agency to SCRP as set forth in this Financing Agreement during the period of time that the Agency is entitled to receive tax increment revenues pursuant to the Redevelopment Plans for the Project Areas as the financial obligations of the Agency as shall be applicable for "M the period of time that such financial obligations of the Agency to SCRP are payable hereunder; and ' WHEREAS, in order to secure the financial obligations of the Agency to SCRP as provided in this Financing Agreement, the Agency desires to transfer to SCRP, the Agency real .. property assets as described on Exhibit "D" (the "Agency Real Property Assets") as attached hereto and incorporated herein by reference which shall be operated and managed by SCRP with the tax increment revenues to be provided by the Agency to SCRP for such purposes at such time as determined by SCRP in its sole and absolute discretion as further provided herein;and WHEREAS, the Agency and SCRP seek to provide through this Financing Agreement ' that in addition to the obligations as incurred pursuant to this Financing Agreement, the Agency shall pledge to SCRP additional revenues as necessary to support the ongoing contractual and budgeted obligations and commitments of SCRP as shall be incurred in furtherance of the improvement of the Redevelopment Related Improvements and the Other SCRP Contractual Obligations and to fund the construction and/or financing of the Redevelopment Related Improvements and the Other SCRP Contractual Obligations; and WHEREAS, consistent with the SCRP obligations incurred pursuant to this Financing Agreement and the commitment of the Agency to fulfill its financial commitments to SCRP, during the Term (as defined in Section 1.03) of this Financing Agreement, the Agency tax increment revenues available pursuant to the Redevelopment Plans for the Project Areas shall become revenues attributed to SCRP, and the Agency herein pledges the tax increment revenues for the payment and repayment of the obligations to pay for and for the administration and undertaking of the Redevelopment Related Improvements, the Other SCRP Contractual Obligations and/or the other obligations as incurred pursuant to this Financing Agreement; and WHEREAS, the Agency and SCRP have determined that it is in the best interests of the Agency and SCRP to enter into this Financing Agreement to finance said Redevelopment Related Improvements and the other obligations as incurred pursuant to this Financing Agreement, and thus desire to provide for the terms and conditions of their cooperation in such matters as herein provided. NOW THEREFORE, the parties to this Financing Agreement agree, as follows. + r 1 Cooperative Agreemmt-1-18-11 � 2 1 DRAFT ARTICLE I DEFINITIONS; TERM OF FINANCING AGREEMENT 1 Section 1.01. Recitals. The Recitals set out above are true and correct 1 Section 1.02. Definitions. Unless the context otherwise requires, capitalized terms used herein and not defined herein shall have the meanings as generally ascribed to such terms. 1 Section 1.03. Term. This Financing Agreement shall remain in full force and effect so long as the obligations incurred by the Agency to SCRP remaining outstanding and unpaid, but in no event later than the last date that the Agency is entitled to receive the tax increment 1 revenues pursuant to the Redevelopment Plans for the Project Areas for the repayment of indebtedness and other financial and contractual obligations. 1 ARTICLE II PAYMENT OF TAX INCREMENT REVENUES OF AGENCY TO SCRP 1 Section 1.04. Transfer of Powers. 1 (a) In order to cant' out the Redevelopment Related Improvements and the Other SCRP Contractual Obligations, SCRP shall assume all performance obligations with respect thereof and the Agency hereby pledges to SCRP all tax increment revenue available to the 1 Agency from the Redevelopment Plans for the Project Areas during the Term of this Financing Agreement for the payments as required for SCRP to hilly perform each and every financial and contractual obligation as set forth on Exhibits "A", "B", "C" and "D" as to the Redevelopment 1 Plans for the Project Areas. The Agency shall be responsible for compliance with all requirements imposed by the Redevelopment Plans and for the timely payment of funds and the reporting of such uses pursuant to the CRL, and SCRP shall be responsible for all compliance 1 with respect to the public works requirements as imposed pursuant to California law with regard to the Redevelopment Related improvements and the Other SCRP Contractual Obligations. 1 (b) SCRP shall use and apply the tax increment revenues as pledged pursuant to this Financing Agreement to undertake, manage, administer and implement all aspects of the Redevelopment Related Improvements and the Other SCRP Contractual Obligations, specifically 1 including,but not limited to: 1. the design, construction and implementation of the Redevelopment Related 1 Improvements as set forth in the 2010-201 Budget of the Agency and the Downtown Vision Plan for the Theater District of the Agency as indicated on Exhibit"A"; 1 2. undertaking of the Implementation Plan Public Improvements as set forth on Exhibit`B'; 1 3, undertaking of the Other SCRP Contractual Obligations as set forth on Exhibit ..C., 1 Coperatve Agremnt-1-18-1 I 1 3 i DRAFT 4. managing and maintaining the Agency Real Property Assets as set forth on Exhibit"D". 1 (c) The Agency Real Property Assets shall be transferred by the Agency to SCRP in fee title at such time as SCRP in its sole and absolute discretion determines that SCRP requires 1 all or any portion of the Agency Real Property Assets at such time to be used by SCRP in furtherance of the redevelopment and economic development related activities of SCRP and the _ Project Areas. The obligation of the Agency to transfer the Agency Real Property Assets shall be a binding and enforceable contractual obligation upon the Agency from and after the date of • this Financing Agreement, and any failure of the Agency to transfer all or any portion of the Agency Real Property Assets as required herein shall be an Event of Default pursuant to Section 1 3.01 hereof. Section 2.02. Irrevocable Pledge of Tax Increment Revenues. Pursuant to and in consideration of the assumption of the obligations by SCRP as set forth in Section 2.01 above, commencing as of the date of this Financing Agreement during the 2010-2011 fiscal year, those ^, tax increment revenues derived by the Agency from the Redevelopment Plans for the Project Areas are hereby irrevocably pledged to SCRP pursuant to this Financing Agreement on a basis subordinate to all presently authorized and issued, and future authorized and issued debt obligations of the Agency that are sold through municipal underwriting means or debt r obligations with third party commercial lenders, including, but not limited to those amounts that are in excess of the tax increment revenues budgeted to be expended by the Agency for the 1 current 2010-2011 fiscal year of the Agency. Such pledge of the tax increment revenues of the Agency to SCRP shall be irrevocable during the Term of this Financing Agreement. The maximum dollar amount of the tax increment revenues pledged by the Agency to SCRP pursuant 1 to this Financing Agreement for the use and pledge of tax increment revenues for debt obligations that are intended to be issued or incurred by SCRP on and after the date of this Financing Agreement shall not exceed $300,000,000 in the aggregate principal amount. 1 Section 2.03. Use of Tax Increment Revenues. 1 (a) Throughout the Term of this Financing Agreement, SCRP hereby agrees that the tax increment revenues as pledged by the Agency pursuant to Section 2.02 above shall be applied for the payment and/or repayment of the obligations incurred by SCRP pursuant to Section 2.01 1 above. (b) SCRP shall take all steps necessary to utilize the tax increment revenues to pay 1 principal and interest due on all debt and other contractual obligations of SCRP as specified in this Financing Agreement. Such payments shall be absolute obligations of SCRP and shall not be subject to any deduction or offset of any kind whatsoever. (c) SCRP shall submit an annual proposed budget for each fiscal year to the Mayor and Common Council of the City of San Bernardino (the"Council") for review and concurrence at least sixty(60)calendar days prior to any final approval of such annual budget by SCRP. Any budget as thereafter approved by SCRP shall be modified to include the comments as approved by the Council within such budget and as to such items that cannot be agreed upon between the ICwpeemtive Ageement-1-I8-11 4 DRAFT ., Council and SCRP, those particular items shall be deleted from the budget as may thereafter be approved SCRP. Section 2.04. Use of Excess Tax Increment Revenues. During the Term of this Financing Agreement and to the extent that there are excess tax increment revenues ("Excess Tax Increment Revenues") after payment and/or repayment of the various obligations incurred by SCRP pursuant to Section 2.01 above, such Excess Tax Increment Revenues shall be used by SCRP for other qualifying public works projects and the improvements within the Project Areas or transferred to the Agency for use pursuant to the Redevelopment Plans for the Project Areas. r In addition to the rights of the Council to approve the annual budgets as specified in Section 2.03(c) above, the Council shall also have the right to approve (i) the sale of any real property transferred to SCRP pursuant to this Financing Agreement, including the price, terms and other conditions to be imposed upon the sale of any such real property that is intended to be transferred to any third party, whether a private entity or governmental agency, and (ii) any agreement by and between SCRP and any project developer or landowner seeking to obtain any form redevelopment assistance or other form of participation agreement, reimbursement agreement other agreement from SCRP. ARTICLE III EVENTS OF DEFAULT; RIGHTS AND REMEDIES Section 3.01. Each of the following occurrences shall constitute an "Event of Default" under this Financing Agreement: (a) Failure to Make Payments When Due. Failure by either party to pay (i) any amount due on or before the date that such payment is due and payable pursuant to this Financing Agreement. ' (b) Other Defaults. Should SCRP fail duly and punctually to perform or observe any agreement, covenant or obligation binding on SCRP under this Financing Agreement which could lead to an Event of Default, such failure shall continue for thirty (30) calendar days after the earlier of(i) the date as of which SCRP had actual knowledge of such failure, and (ii) the date on which the Agency gives SCRP notice of such failure. (c) Breach of Representation or Warran ty. Should any representation or warranty made or deemed made by one party to the other party herein be false or misleading in any ' material respect on the date as of which made which could lead to an Event of Default which is not remedied to the satisfaction of the non-defaulting party within ninety (90) calendar days following receipt by the defaulting party of written notice of such inaccuracy. Section 3.02. Rights and Remedies. (a) Acceleration. Etc. Upon the occurrence of any Event of Default by the Agency to remit the tax increment revenues to SCRP, the unpaid principal amount of any and all tax increment revenues payable pursuant to this Financing Agreement shall automatically become Cooperative Agreement-1-18-11 5 DRAFT ; �I immediately due and payable for each fiscal year in which such Event of Default shall have occurred. After the expiration of all cure periods by the Agency, thereafter SCRP may exercise ' any or all rights and remedies under this Financing Agreement or otherwise pursuant to applicable law. (b) Waiver of Demand. Demand, presentment, protest and notice of nonpayment are hereby waived by SCRP. SCRP also waives, to the extent permitted by law, the benefit of all valuation, appraisal and exemption laws. (c) Parties to Institute Proceedings. Upon a default by either party, the non- defaulting party may institute any proceeding at law or in equity to enforce the obligations of the other party under this Financing Agreement and/or any covenants and obligations of the other party contained in this Financing Agreement. t (d) Waivers.Amendments and Remedies. No delay or omission of the either party to exercise any right under this Financing Agreement shall impair such right or be construed to be a waiver of any Event of Default or an acquiescence therein, and any single or partial exercise of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and no waiver, amendment or other variation of the terms, conditions or provisions of this Financing Agreement whatsoever shall be valid unless in a writing signed by the other party, and r then only to the extent in such writing specifically set forth. All remedies contained in this Financing Agreement or by law afforded shall be cumulative and all shall be available to the parties Lender until the obligations have been paid in full and this Financing Agreement has been terminated or until the expiration of the Term of this Financing Agreement. ARTICLE W MISCELLANEOUS Section 4.01. Amendment. The provisions of this Financing Agreement may be amended only upon the written approval of the parties hereto which approval shall be granted at the absolute and sole discretion of each party. Section 4.02. Beneficiaries of Financing Agreement. To the extent applicable, the i parties identified in the Redevelopment Related Improvements and the Other SCRP Contractual t Obligations are expressly recognized as a third party beneficiary hereto. Nothing in this Financing Agreement, expressed or implied, is intended to give to any person, other than SCRP and the Agency, as parties hereto, and those parties identified in the Redevelopment Related Improvements and the Other SCRP Contractual Obligations, all as third party beneficiary hereof, any right, remedy or claim under or by reason of this Financing Agreement. Any covenants, stipulations, promises or agreements in this Financing Agreement contained by and on behalf of SCRP and the Agency or any member, officer or employee thereof shall be for the sole and _ exclusive benefit of SCRP and the Agency as parties hereto and the parties identified in the Redevelopment Related Improvements and the Other SCRP Contractual Obligations as third party beneficiary hereof. Section 4.03. No Personal Liability. No member, officer or employee of SCRP or the Agency shall be individually or personally liable for the payment of any amounts of the tax Cooperative Agreement-I-18-11 6 1 DRAFT ' increment revenues as pledged to SCRP by the Agency pursuant to this Financing Agreement; but nothing herein contained shall relieve any member, officer or employee of SCRP and the ' Agency from the performance of any official duty provided by law. Section 4.04. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof provided in this Financing Agreement to be performed on the part of SCRP or the Agency should be contrary to law, then such agreement or agreements, such covenant or covenants, or such portions thereof, shall be null and void and shall be deemed separable from ' the remaining agreements and covenants or portions thereof. Section 4.05. Notices and Delivery. Any consent, notice or other communication *� herein required or permitted to be given shall be in writing and may be personally served, telecopied or sent by courier service or United States mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of a telecopy (or on the next business day if such telecopy is received on a non-business day or after 5:00 p.m.(at the office of r the recipient) on a business day) or four(4) business days after deposit in the United States mail (registered or certified, with postage prepaid and properly addressed). Any party delivering a communication by telecopy shall also send a copy thereof by one of the other means provided in this Section 4.05. For the purposes hereof the addresses of the parties hereto (until notice of a change thereof is delivered as provided in this Section 4.05) shall be as set forth in the official ' business addresses of each party as of the date of this Financing Agreement and at such other address as may be designated by such party in a written notice to all of the other party. ' Section 4.06. Survival of Warranties and Agreements. All agreements, representations, warranties and indemnities made or given herein shall survive the execution and delivery of this Financing Agreement and the making, repayment and fulfillment of the obligations of the parties as incurred in this Financing Agreement. Section 4.07. Severability. In case any provision in or obligation under this Financing Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. hi Section 4.08. Headings. Section headings in this Financing Agreement are included herein for convenience of reference only and shall not constitute a part of this Financing Agreement for any other purpose or be given any substantive effect. ' Section 4.09. Governing Law; Waiver. This Financing Agreement shall be governed by, and shall be construed and enforce in accordance with, the laws of the State of California. Section 4.10. Successors and Assigns. This Financing Agreement shall be binding upon the parties hereto and their respective successors and assigns. The terms and provisions of this Financing Agreement shall inure to the benefit of any assignee or transferee of the tax increment revenues or any portion thereof, and in the event of any permitted such transfer or assignment, the rights and privileges herein conferred upon the applicable party shall Cooperative Agreement-l-I8-11 7 DRAFT automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions hereof. ' Section 4.11. Performance of Obligations. SCRP agrees that the Agency may, but shall have no obligation to,make any payment or perform any act required of SCRP under any of the obligations as incurred by SCRP pursuant to this Financing Agreement or take any other action which the Agency in its discretion deems necessary or desirable to protect or preserve the pledge of the tax increment revenues pursuant to this Financing Agreement. ' Section 4.12. Construction. The parties acknowledge that each party has reviewed and ' revised this Financing Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Financing Agreement or any amendments or exhibits hereto. ' Section 4.13. Entire Agreement. This Financing Agreement embodies the entire agreement between the parties and supersedes all prior agreements, written and oral, relating to the subject matter hereof. Section 4.14. Execution in Several Counterparts. This Financing Agreement may be ' executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as SCRP and the Agency shall preserve undestroyed, shall together constitute but one and the same instrument. 1 1 1 CoopuNin Ageenmd-1-18-11 8 - . -- DRAFT IN WITNESS WHEREOF, the Redevelopment Agency of the City of San Bernardino and the Sustainable Communities Reinvestment Partnership, Inc., a California non-profit ' corporation, have caused this Cooperative Financing Agreement to be signed in their name by their respective Executive Directors all as of the date and year first above written. ' Agency Redevelopment Agency of the City of San ' Bernardino By. Interim Executive Director ' ATTEST: By: Clerk of the Board APPROVED AS TO FORM: By: ' Agency Counsel SCRP Sustainable Communities Reinvestment Partnership,Inc., a California non-profit corporation t By. President ATTEST: By: Secretary Cooperative Agreement-1-18-11 ' 9 DRAFT ' Exhibit"A" ' Programs, Projects and Activities 1 1 1 Cooperative Agrecment-1-1 8-11 ' 10 DRAFT EXHIBIT "A" 2010-2011 - Capital Expenses Project Improvement/Development Agreements/OPAS Project Area Description of Activity Amount State College A. Reconstruction of University Boulevard-Northpark to State Street 1,200,000 B. Interchange University Parkway 2,700,000 C. Hillwood University$2.7 M 15 yr Note 400,000 D. Beautification Facade Program 40,000 E. sbX Bus Rapid Transit System 30,000 F. Improvements- University Pkwy and Northpark Blvd 500,000 ' G. Reserve for ERAF 2,500,000 H. Watson Public Improvements(DDA) 1,000,000 ,CC North A. EPA Grant Funds 87,500 B. Temporary Bus Facility 1,500,000 ' C. sbX Bus Rapid Transit System 30,000 D. Streetscape, Theatre Square,4th/"E"Streets 5,000,000 �outheast Ind A. Perris Campus IVDA reim -$427,000 14 yrs 30,500 B. Beautification Facade Program 70,000 ■ C. sbX Bus Rapid Transit System 30,000 "Northwest A. Mapei Jabin Beg 2005-Aug 2015 10,000 B. Interchange University Parkway 2,300,000 C. Young Electric job retention$350,000 max 14 yrs 25,000 D. Beautification Facade Program 40,000 E. Senior Housing -Highland&Medical Center Infrastructure 1,000,000 F. Reservoir Project(Hillwood) 613,000 G. Project Improvements/Streets, Utilities, Etc. 3,600,000 ri City A. BP California- 10 yrs 2015-max$1,750,000 200,000 B. LaCuracao 10 yr rebate est-reim sales tax May 2015 10,000 C. Beautification Facade Program 40,000 D. sbX Bus Rapid Transit System 30,000 Jptown A. La Placita Bond Proceeds 450,000 B. La Placita TI additional Phase II 1,000,000 C. EPA Grant Funds 87,500 D. sbX Bus Rapid Transit System 30,000 40 Street A. Beautification Facade Program 13,300 B. 40th Street& Electric Street- Infrastructure 1,800,000 DRAFT ' Expenditure Detail -Capital Expenses Project Improvement/Development Agreements ' Protect Area Description of Activity Amount CC Projects A. J Building agreement-June 2018 40,900 B. Andreson Building -June 2018 16,200 C. EPA Grant Funds 87,500 D. Waterman Holdings 4th and Waterman 10 yrs 200,000 E. Convention Center Renovation 2,200,000 F. sbX Bus Rapid Transit System 1,500,000 'Mt Vernon A. Yellow Freight DDA - 10 yr est Jan 2012 60,000 B. Mt Vernon Improvements 1,270,000 Base/Mt Vernon Street Im 170,000 Infrastructure/Land/Relo 700,000 Spruce and Mt.Vernon 400,000 C. EPA Grant Funds 87,500 D. Phase 11-5th & Mt. Vernon Northwest Corner 1,500,000 ``�_,'' E. 5th & Mt. Vernon Northeast Corner Building Reuse& Rehab 750,000 Uher IVDA Project Area-Inland Center DriveP'E"Street& Reader Board & 7,000,000 ■■ other Public Improvements ' Total $41,078,900.00 DRAFT fExhibit`B" 1 Implementation Plan Public Improvements 1 f 1 1 1 1 i f 1 i 1 Cwpuative Ag=mmt-1-1841 DRAFT } EXHIBIT "B" --�"- Implementation Plan Public Improvements 5-Year Plan - FY 2009-FY 2014 ' Project Area Description of Activity Amount State College A. 1-215/University Pkwy Loop Construction 5,000,000 South Valle A. Redlands Boulevard Corridor Improvements 800,000 CC North A. sbX Implementation 1,325,000 B. Downtown Core Vision Implementation 1,001,000 C. Downtown Mixed Use 860,000 D. Theater District Implementation 740,000 Southeast Ind A. Auto Plaza Corridor Improvements 500,000 B. Cooley Avenue Lighting 65,000 Northwest A. West Highland Avenue Corridor Improvements 800,000 B. Baseline Street Corridor Improvements 1,220,000 C. Highland Avenue Corridor Improvements 1,890,000 D. 1-210/State Street Corridor Improvements 500,000 E. North San Bernardino Infrastructure 720,000 Tri City A. Hospitality Lane Corridor Improvements 100,000 Uptown A. La Placita I & II 2,460,000 40 Street A. 40th Street Corridor Improvements 1,840,000 Mt. Vernon A. Mt. Vernon/Spruce Retail 1,720,000 B. Mt. Vernon Bridge 5,000,000 C. 5th Street Corridor Improvements 900,000 CC Projects A. Retail Developmentlinfrastructure 250,000 B. Public Utility Improvements 1,500,000 C. Military Reuse 1,500,000 D. Seccombe Lake Village Improvements 1,250,000 E. Intermodal Transit Station 500,000 ' IVDA A. IVDA Business and Market Plan 350,000 B. Third Street Improvements 1,000,000 C. Tippecanoe and Waterman Corridor Improvements 720,000 D. Arden Guthrie Area Improvements 350,000 E. Vanir Mill Street Development 300,000 F. Waterman Corridor Improvements 200,000 G. Baseline Street Corridor Improvements 250,000 Total $ 35,601.000 DRAFT t Exhibit"C" tOther SCRP Contractual Obligations t t t t t t 1 t t t t t Cooperative Agreement-1-I8-11 12 I ® DRAFT f 1 EXHIBIT "C" 1 Other SCRP Contractual Obligations Geothermal system purchase and upgrade: f • Increase capacity from 20-25 users to 300-400 users • Reduce Green House Gases f • Reduce Water Waste and Usage • Estimated design/engineering/increase in capacity cost: $25M i 1 f 1 1 1 f 1 1 1 1 f 1 A i DRAFT V Exhibit"D" Agency Real Property Assets 1 Cwpemtive Agre met-1-18-1I 13 DRAFT t m EXHIBIT"D» o AGENCY REAL PROPERTY ASSETS r. Improved Redevelopment Agency Properties: 1. 3380 Little Mountain Drive- Shandon Hills Golf Course 2. 780 North "E" Street—The Sturges Theatre Building 3. Church and"D"Parking Lots ' 4. 512 North"E"Street - 5u'and"E"Street Parking Lot 5. 451 North"F" Street Parking Lot ' 6. 450 North"E" Streets—20-P1ex Movie Theater: Appraised 7. 480 North"D" Street Grassed Lots 8. Parking Lot Adjacent to north of the Law Library Parking Lots ' 9. 710 North"D" Street—City Police Station 10. 562 West 4d' Street—The California Theatre Building ' 11.NWC 4d'and"E" Streets—3 Grassed Lots: Appraised 12. 396 North"E" Street—Woolworth Building 13. 390 North"E" Street—"J"Building Lot ' 14. 385 North"E" Street—Vacant Restaurant: Appraised 15. 3-Level Parking Structure—Carousel Mall Parking Structure ' 16. 295 Carousel Mall Drive—Mall Common Area Parking Lot (30+acres) 17. 5'"Mount Vernon Street Parking Lot 18. 349 North"E" Street—Court Street Square: Appraised ' 19. Court Street Parking Lot—Adjacent to the north of 300 N. "D" Street. 20. 297 North"E" Street—City of San Bernardino Convention Center: Appraised 21. 201 North"E" Street, Building A& B- Mixed Use Office/Retail Building 22. 5-Level Parking Structure—201 North"D" Street 23. 170 & 174 South"E" Street ' 24. 820 Cooley Drive- Cooley Drive Parking Lots 25. 4-Acre Lot West of 170& 174 South"E" Street 26. 280 South"E"Street—Baseball Stadium: Appraised 27. 1289, 1316 and 1350 South"E" Street—Multi Use Office/Garage Campus: Appraised 28. Bond Street Planter 29. 266 East 3`d Street—National Guard Armory Unimproved Redevelopment Agency Properties: 1. Various parcels throughout city—approximately 100 properties (includes 100 acre Bice parcels) 2. Various remnant parcels throughout city—approximately 25 properties dzdllo� CHANGES TO COOPERATIVE FINANCING AGREEMENT BASED ON COMMENTS RECEIVED AT SPECIAL MEETING ON THURSDAY, JANUARY 20, 2011 COOPERATIVE FINANCING AGREEMENT ' by and between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and ' SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC.,A CALIFORNIA NON-PROFIT CORPORATION Relating to the ' $300,000,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REDEVELOPMENT PROJECT AREAS ' CAPITAL IMPROVEMENT PROJECTS 1 ' Cmpere ve A&,eemevl-l-1]-1l r A' COOPERATIVE FINANCING AGREEMENT THIS COOPERATIVE FINANCING AGREEMENT is made and entered into as of January.2011 (this"Financing Agreement"),by and between the Redevelopment Agency of the City of San Bernardino,a public body, corporate and politic existing under the laws of the State of California(the"Agency") and the Sustainable Communities Reinvestment Partnership, Inc.,a California non-profit corporation("SCRP"),as follows. WITNESSETH: WHEREAS, the Agency was established by appropriate action of the City of San w Bemardino (the "City"), for the purposes of exercising redevelopment powers within the City boundaries through the adoption and approval of various redevelopment project areas that are currently in existence within the City(the"Project Areas")as further described in the applicable redevelopment plans accompanying such Project Areas(the"Redevelopment Plans");and ' WHEREAS. the Commmnity Development Commission of the Citv of San Bernardino (the `Commission") acts as the governing body of the Aven c v for all official actions taken on behalf of the Aaencv:and WHEREAS, SCRP was formed pursuant to the non-profit corporation laws of the State of California and was formerly(mown as the Economic Development Corporation,and pursuant to an amendment of its corporate documents, SCRP duly approved a name change as such currently exists for the purposes of assisting in the implementation of various redevelopment initiatives within the City and to undertake such other activities, programs and projects of the Agency and the City as are then deemed advisable by SCRP through its board of directors;and ' WHEREAS, pursuant to the Community Redevelopment Law (Health & Safety Code Section 33000,et seq.)(the"CRL"or the"Authorizing Provisions"),the Agency may enter into cwopemtion agreements and financing agreements with other public agencies,private entities and non-profit corporations to carry ouf its redevelopment and other public infmstrucure development purposes;and ,'r �'„/,�,.,�,tvt. WHEREAS,SCRP has requested that the Agency act at this time to assist SCRP with the w financing of certain public infrastructure and the implementation of other programs and activities i■� located within the Project Areas, together with other public infrastructure that is necessary to support the long-term development and redevelopment of the portions of the City located within the Project Areas, namely, those public improvements, public infrastructure and other ^ developments and activities,programs and projects all as set forth in the current Year 2010-2011 O Budget of the A enc and Down Vi 'on Plan for a Theater District of the Aaencv as m r on r it "A" (the "Programs, Projects and Activities") as attached he and incorpor-m teiem yr�nce plus those other public improvements an pu Tic as set forth on the Implementation Plan of the Agency as indicated on Exhibit 'B" (the "Implementation Plan Public Improvements") as attached hereto and incorporated herein by reference(collectively,the"Redevelopment Related Improvements");and Cm,nMiw nanm,mt-1-22-1 r 1 1 PR ' ri W r .. WHEREAS, in addition to the Redevelopment Related Improvements, SCRP, in IM furtherance of the redevelopment of various areas of the City and in particular with the Project Areas,requires the A en to commit to certain levels of additional fmancML=2UW to SCRP Iwi for the fulfillment o e contractual commitments and other nancial o igations as set forth on Exhibit "C" the "Other SCRP Contractual Obligations") as attached hereto and incorporated herein y reference;and WHEREAS, the Agency has determined to finance the Redevelopment Related Improvements and the Other SCRP Contractual Obligations by the incurring of the indebtedness as required by this Financing Agreement,including,buf not limited,the issuance of one or more EB•5 foreign investor direct loan obligations, other privately placed loans with commercial re-Me—M-0-3 re—Me—M-0-3 private parties,mrissuariFe of municipal bonds and the pledge of the tax increment revenues of the Agency to SCRP as set forth in this Financing Agreemen nn ug a per= o time a gency is entitled to receive tax increment revenues pursuant to the Redevelopment ' Plans for the Project Areas as the financial obligations of the Agency as shall be applicable for the period of time that such financial obligations of the Agency to SCRP are payable hereunder; and L WHEREAS, in order to secure the financial obligations of the Agency to SCRP as ' I provided in this Financin A went,the Agency desires to transfer to SCRP the responsibility PI.,the manaeemeni an maintenance ot;the Agency real property assets as described on Exhibit "D"_te "Agency Real Property Assets") as attar ereto an incorporated herein y reference w c s all be operated and managed by SCRP with the tax increment revenues to be provided by the Agency to SCRP feF_. eh ptutpeses ti A ,. .... .,,.tee ffli fle, b.. crop ^dise as further provided herein;and -.Ln..+�r.�� WHEREAS, the Agency and SCRP ek to provide through this Financing Agreement that in addition to the obligations as inc pursuant to this Financing Agreement,the�A en�cy shall pledge to SCRP additional revenues as necessary to support the ongoing contmcta la and u get oblations an commitments of as shall be me rr in crance of the improvement of the Redevelopment Terawd Improvements and the Other SCRP Contractual Obligations and to fund the construction and/or financing of the Redevelopment Related Improvements and the Other SCRP Contractual Obligations;and WHEREAS, consistent with the SCRP obligations incurred pursuant to this Financing Agreement and the commitment of the Agency to fulfill its financial commitments to SCRP, during the 'term (as defined in Section 1.03) of this Financin¢ Agreement, the Agency tax increment revenues available lopment P e pursuant to-t a iM;;elans for Um Project Areas shall become revenues attributed to SCRP,and the Agency herein pledges the tax increment revenues for the pa menrepayment of the o i a i n o pay or an for t admi an u1PdErFakmg of the �ve7o of Related improvements, me er Contractual ga ions an or the other obligations as incurred pursuant to this Financing Agreement;and WHEREAS, the Agency and SCRP have determined that it is in the best interests of the Agency and SCRP to enter into this Financing Agreement to finance said Redevelopment Related Improvements and the other obligations as incurred pursuant to this Financing Cwpere wAW-x -1-2 11 2 �r Agreement, and thus desire to provide for the terms and conditions of their cooperation in such V matters as herein provided. n NOW THEREFORE,the parties to this Financing Agreement agree,as follows. ARTICLE t DEFINITIONS;TERM OF FINANCING AGREEMENT Section 1.01. Recitals. The Recitals set out above are true and correct. Section 1.02. Definitions. Unless the context otherwise requires,capitalized terms used ' herein and not defined herein shall have the meanings as generally ascribed to such terms. Section 1.03. Assignment. Ibis Financing Ameemenl s�y11 hP s�he�to assignment at the witten direction of the Commission to SCRP for anv assignment of this Financing ' Agreement that is authorized by the Commission tQbe made to anv duly established Joint powers authoy'L�as so directed by the Commission to SCRP pursuant to written notice delivered by the Commission to SCRP. Upon receipt of anv such written notice of assienmcnt from the Commission s ecif in the assignment of this Financin A reemenl to such Joint covers authority. SCRP shall imme iatev take al necessary actions to time, accomplish the assignment to the ioint powers authority a% matt then be required in accordance with such direction of the Commission. Section 1.04. Bvlaws. The Commission has authorized the execution of this Financing A Cement with SCRP based u on the cor orate b laws of SCRP the "13ylaty" as are in existence as of the date o t us mannn Agreement which so ecif" the manner and term of the anvointment of directors to the corporate board of SCRP and which, in additional to other (o4v+ �es'efK ' matters. requires SCRP to coin Iv with certain requirements that are applicable to governmental entities within the State. No amendment, change or other modification shall be made to the Bylaws without the crier written avoroval of the Commission which approval ma-be Pranted or withheld at the sole and absolute discretion of the Commission. Seetio..on 4- 2.Section 1.05, Maintenance of Tax-Exemot Status. SCRP covenants and agrees to maintain the current tax status of SCRP for federal income tax ournoses'as an exempt organization organized as a California non-profit corporation and pursuant to Internal ' Revenue Code Section 501(c)(3) and SCRP shall cause to be prepared and timety transmitted all necessam filing with State of California d the Internal Revenue Service to maintain such tux- exempt status as a California non-Prof-ii corporation. SCRP further covenants and aarees not to ' enter into any transaction or to undertake any other type of activity that would cause SCRP to become a taxable entitv.and all revenues m including but not limited the tax increment revenues to be received by SCRP pursuant to this Financin Agreement. shall be used strictly in confoi mance with this Financing Amreement and in a manner so as not to cause an, income or funds received by SCRP to be determined to be "unrelated business income"that would in am, manner leonardize the tax-exemot status of SCRP. Seet*en 1.06. Term. Ibis Financing Agreement shall remain in full force and effect so long as the obligations incurred by the Agency to SCRP remaining outstanding and unpaid, but in no event later than the last date that the Agency is entitled to receive the tax cooaQ,eK nseemmou-u-u u ' 3 increment revenues pursuant to the Redevelopment Plans for the Project Areas for the repayment of indebtedness and other financial and contractual obligations. I ARTICLE II PAYMENT OF TAX INCREMENT REVENUES OF AGENCY TO SCRP °--"n'"^ Section. 2.01. Transfer of Powers. ft fled:uma:tert: o.s, W eWLe nunpa q (a) In order to carry out the Redevelopment Related Improvements and the Other SCRP Contractual Obligations, SCRP shall assume all performance obligations with respect thereof and the Agency hereby pledges to SCRP all tax increment revenue available to the Agency from the Redevelopment Plans for the Project Areas during the Term of this Financing Agreement for the payments as required for SCRP to fully perform each and every financial and contractual obligation as set forth on Exhibits "A",`B", "C"and"D" as to the Redevelopment Plans for the Project Areas. The Agency shall be responsible for compliance with all ' requirements imposed by the Redevelopment Plans and for the timely payment of funds and the reporting of such uses pursuant to the CRL, and SCRP shall be responsible for all compliance with respect to the public works requirements as imposed pursuant to California law with regard to the Redevelopment Related Improvements and the Other SCRP Contractual Obligations. (b) SCRP shall use and apply the tax increment revenues as pledged pursuant to this Financing Agreement to undertake, manage, administer and implement all aspects of the Redevelopment Related Improvements and the Other SCRP Contractual Obligations,specifically including,but not limited,to: 1. the design, construction and implementation of the Redevelopment Related ' Improvements as set forth in the 2010-201 Budget of the Agency and the Downtown Vision Plan for the Theater District of the Agency as indicated on Exhibit"A"; 2. undertaking of the Implementation Plan Public Improvements as set forth on Exhibit`B"; 3. undertaking of the Other SCRP Contractual Obligations as set forth on Exhibit 4. managing and maintaining the Agency Real Property Assets as set forth on Exhibit"D". ' (c) The Agency Real Property Assets shall not be transferred in tee by the Agency to SCRP except upon the subsequent approval of the Commission.the Council and SCRP as to am Such subsequent transfer of+n fee title. SCRP shall be responsible for the management and property maintenance of the Agency Real Property Assets for such period of time that thz Agency Real Propetly Assets continue to be owned in fee title by the Agency. and eeanatnie and the The Coo, -Ap,ae t1-n.tI ' 4 1 1 obligation of the Agency to transfer the management and property maintenance for the Agency Real Property Assets shall be a binding and enforceable contractual obligation upon the Agency from and after the date of this Financing Agreement,and any failure of the Agency to remit the ' necessary tax increment revenues to Provide for the payment of such management and oropert v maintenance expenses for the Aeenev Real Property Assetsamef•- all °- °-° paAian °"t`° Real PF8pefty Assets as required herein shall be an Event of Default pursuant to Section 3.01 hereof. Section 2.02. Irrevocable Pledge of Tax Increment Revenues. Pursuant to and in consideration of the assumption of the obligations by SCRP as set forth in Section 2.01 above, commencing as of the date of this Financing Agreement during the 2010-2011 fiscal year,those tax increment revenues derived by the Agency from the Redevelopment Plans for the Project Areas are hereby irrevocably pledged to SCRP pursuant to this Financing Agreement on a basis subordinate to all presently authorized and issued, and future authorized and issued debt obligations of the Agency that are sold through municipal underwriting means or debt ' obligations with third party commercial lenders, including,but not limited to those amounts that are in excess of the tax increment revenues budgeted to be expended by the Agency for the current 2010-2011 fiscal year of the Agency. Such pledge of the tax increment revenues of the Agency to SCRP shall be irrevocable during the Term of this Financing Agreement. The maximum dollar amount of the tax increment revenues pledged by the Agency to SCRP pursuant to this Financing Agreement for the use and pledge of tax increment revenues for debt and other contractual obligations that are intended to be issued or incurred by SCRP on and after the date ' of this Financing Agreement shall not exceed$300,000,000 in the aggregate principal amount. Section 2.03. Use of Tax Increment Revenues. (a) Throughout the Term of this Financing Agreement, SCRP hereby agrees that the tax increment revenues as pledged by the Agency pursuant to Section 2.02 above shall be applied for the payment and/or repayment of the obligations incurred by SCRP pursuant to Section 2.01 above. i (b) SCRP shall take all steps necessary to utilize the tax increment revenues to pay principal and interest due on all debt and other contractual obligations of SCRP w specified in this Financing Agreement. Such payments shall be absolute obligations of SCRP and shall not be subject to any deduction or offset of any kind whatsoever. (c) SCRP shall submit an annual proposed budget for each fiscal year to the Commission and the Mayor and Common Council of the City of San Bernardino(the"Council") for review and concurrence at least sixty(60)calendar days prior to any final approval of such annual budget by SCRP. Any budget as thereafter approved by SCRP shall be modified to include the comments as approved by the Commission and the Council within such budget and as to such items that cannot be agreed upon `ek�amone the Commission. the Council and SCRP, those particular items shall be deleted from the budget as may thereafter be approved SCRP. Caopeeative Agreemmt-622-11 5 *1 V Section 2.04. Use of Excess Tax Increment Revenues. During the Term of this Financing Agreement and to the extent that there are excess tax increment revenues ("Excess Tax Increment Revenues' after payment and/or repayment of the various obligations incurred by SCRP pursuant to Section 2.01 above,such Excess Tax Increment Revenues shall be used by SCRP for other qualifying public works projects and the improvements within the Project Areas or transferred to the Agency for use pursuant to the Redevelopment Plans for the Project Areas. In addition to the rights of the Commission and the Council to approve the annual budgets as ' specified in Section 2.03(c)above,the Commission and the Council shall also have the right to approve(i)the sale of any real property that may hereafter be transferred to SCRP pursuant to this Financing Agreement, including the price, terms and other conditions to be imposed upon the sale of any such real property that is intended to be transferred to any third party,whether a private entity or governmental agency, and (ii) any agreement by and between SCRP and any project developer or landowner seeking to obtain any form redevelopment assistance or other form of participation agreement,reimbursement agreement other agreement from SCRP. ARTICLE III EVENTS OF DEFAULT;RIGHTS AND REMEDIES Section 3.01. Each of the following occurrences shall constitute an "Event of Default" under this Financing Agreement: (a) Failure to Make Payments When Due. Failure by either party to pay (i) any amount due on or before the date that such payment is due and payable pursuant to this Financing Agreement. (b) Other Defaults. Should SCRP fail duly and punctually to perform or observe any agreement, covenant or obligation binding on SCRP under this Financing Agreement which could lead to an Event of Default, such failure shall continue for thirty(30)calendar days after the earlier of(i)the date as of which SCRP had actual knowledge of such failure, and (ii)the date on which the Agency gives SCRP notice of such failure. (c) Breach of Representation or Warranty. Should any representation or warranty made or deemed made by one party to the other party herein be false or misleading in any material respect on the date as of which made which could lead to an Event of Default which is not remedied to the satisfaction of the non-defaulting party within ninety (90) calendar days following receipt by the defaulting party of written notice of such inaccuracy. (d) Failure to Assign. Failure of SCR? to comply with the written notice of the Commission for the assignment of this Financing Agreement to 'pint powers authority as ma be directed by the Commission to $CRP pursuant to Section 1.03 shall be an Event of Default ' oursuant to this Section 3.01(e). and the Commission may thereupon terminate this Financing Agreement immediatelv upon receipt of such notice of termination by SCRP without cure and without any prior notice. CooPemive Agrcemmt-1-22-1 l 6 ' (e) Amendment to SCRP Bylaws. An) amendments to the adooted Bylaws of SCRP armitned:ao imacline that amend.chanee or otherwise modify the Form of said Bylaws as were in existence as of the Formatted:urMerrne date of this Finaticiny Agreement without the orior written approval of the Commission as _-- re uired by Section 1.04 shall be an Event of Default pursuant to this Financing Agreement. Upon the occurrence of any such Event of Default oursuant to this Section 3.01(d)for failure of SCRP to comply with Section 1.04 the Commission may thereupon terminate this Financine Agreement immediately upon receipt of such notice of termination by SCRP without cure and without anv prior notice. (B failure to Maintain Tax-Exemp=t Slams. Any failure of SCRP to maintain the Formatted:unmrwe current tax-exempt status of SCRP as a 501(c)(3) non-profit corporation as reppired by Section 1.05 shall bean Event of Default under this Section 3.01(fl. Upon the occurrence of anv such Event of Default pursuant to this Section 3.01(t) for failure of SCRP to comply with Section 1.05. tI • Commission may thereupon terminate this Financing Agreement immediate)v coon rcc_ i,,t.of such notice of termination by SCRP without cure and within t any Prior notice Section 3.02. Rights and Remedies. (a) Acceleration-Etc. Upon the occurrence of any Event of Default by the Agency to remit the tax increment revenues to SCRP, the unpaid principal amount of any and all tax increment revenues payable pursuant to this Financing Agreement shall automatically become immediately due and payable for each fiscal year in which such Event of Default shall have occurred. After the expiration of all cure periods by the Agency,thereafter SCRP may exercise any or all rights and remedies under this Financing Agreement or otherwise pursuant to applicable law. (b) Waiver of Demand. Demand,presentment,protest and notice of nonpayment are hereby waived by SCRP. SCRP also waives, to the extent permitted by law, the benefit of all valuation,appraisal and exemption laws. (c) Parties to Institute Proceedines. Upon a default by either party, the non- defaulting party may institute any proceeding at law or in equity to enforce the obligations of the other party under this Financing Agreement and/or any covenants and obligations of the other party contained in this Financing Agreement. (d) Waivers.Amendments and Remedies. No delay or omission of the either party to ' exercise any right under this Financing Agreement shall impair such right or be construed to be a waiver of any Event of Default or an acquiescence therein,and my single or partial exercise of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and no waiver,amendment or other variation of the terms,conditions or provisions of this Financing Agreement whatsoever shall be valid unless in a writing signed by the other party,and then only to the extent in such writing specifically set forth. All remedies contained in this Financing Agreement or by law afforded shall be cumulative and all shall be available to the parties bender until the obligations have been paid in full and this Financing Agreement has been ' terminated or until the expiration of the Term of this Financing Agreement. Cooperative AgTe mt-1-2211 7 1 1 1 ARTICLE IV MISCELLANEOUS Section 4.01. Amendment. The provisions of this Financing Agreement may be amended only upon the written approval of the parties hereto which approval shall be granted at the absolute and sole discretion of each party. Section 4.02. Beneficiaries of Financing Agreement. To the extent applicable, the parties identified in the Redevelopment Related Improvements and the Other SCRP Contractual Obligations are expressly recognized m a thud party beneficiary hereto. Nothing in this Financing Agreement,expressed or implied, is intended to give to any person,other than SCRP ' and the Agency, as parties hereto, and those parties identified in the Redevelopment Related Improvements and the Other SCRP Contractual Obligations,all as third party beneficiary hereof, any right, remedy or claim under or by reason of this Financing Agreement. Any covenants, stipulations,promises or agreements in this Financing Agreement contained by and on behalf of ' SCRP and the Agency or any member, officer or employee thereof shall be for the sole and exclusive benefit of SCRP and the Agency as parties hereto and the parties identified in the Redevelopment Related Improvements and the Other SCRP Contractual Obligations as third parry beneficiary hereof. tSection 4.03. No Personal Liability. No member,officer or employee of SCRP or the Agency shall be individually or personally liable for the payment of any amounts of the tax increment revenues as pledged to SCRP by the Agency pursuant to this Financing Agreement; but nothing herein contained shall relieve any member, officer or employee of SCRP and the Agency from the performance of any official duty provided by law. Section 4.04. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof provided in this Financing Agreement to be performed on the part of SCRP or the Agency should be contrary to law, then such agreement or agreements, such covenant or covenants, or such portions thereof, shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof. Section 4.05. Notices and Delivery. Any consent, notice or other communication herein required or permitted to be given shall be in writing and may be personally served, telecopied or sent by courier service or United States mail and shall be deemed to have been given when delivered in person or by courier service,upon receipt of a telecopy(or on the next business day if such telecopy is received on a non-business day or after 5:00 p.m.(at the office of the recipient)on a business day)or four(4)business days after deposit in the United States mail (registered or certified, with postage prepaid and properly addressed). Any party delivering a communication by telecopy shall also send a copy thereof by one of the other means provided in this Section 4.05. For the purposes hereof the addresses of the parties hereto(until notice of a change thereof is delivered as provided in this Section 4.05) shall be as set forth in the official business addresses of each party as of the date of this Financing Agreement and at such other address as may be designated by such party in a written notice to all of the other party. Section 4.06. Survival of Warranties and Agreements. All agreements, ' representations,warranties and indemnities made or given herein shall survive the execution and Ccop five AVe tut-1-Yd-1r 8 delivery of this Financing Agreement and the making, repayment and fulfillment of the obligations of the parties as incurred in this Financing Agreement. ' Section 4.07. Severability. In case any provision in or obligation under this Financing Agreement shall be invalid,illegal or unenforceable in any jurisdiction,the validity,legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction,shall not in any way be affected or impaired thereby. ASection 4.08. Headings. Section headings in this Financing Agreement are included "O herein for convenience of reference only and shall not constitute a part of this Financing Agreement for any other purpose or be given any substantive effect. Section 4.09. Governing Law;Waiver. This Financing Agreement shall be governed by, and shall be construed and enforce in accordance with, the laws of the State of w California. Section 4.10. Successors and Assigns. This Financing Agreement shall be binding upon the parties hereto and their respective successors and assigns. The terms and provisions of this Financing Agreement shall inure to the benefit of any assignee or transferee of the tax increment revenues or any portion thereof, and in the event of any permitted such transfer or assignment, the rights and privileges herein conferred upon the applicable party shall automatically extend to and be vested in such transferee or assignee,all subject to the terms and conditions hereof. Section 4.11. Performance of Obligations. SCRP agrees that the Agency may, but shall have no obligation to,make any payment or perform any act required of SCRP under any of ' the obligations as incurred by SCRP pursuant to this Financing Agreement or take any other action which the Agency in its discretion deems necessary or desirable to protect or preserve the pledge of the tax increment revenues pursuant to this Financing Agreement. I ' Section 4.12. Construction. The parties acknowledge that each party has reviewed and revised this Financing Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Financing Agreement or any amendments or exhibits hereto. Section 4.13. Entire Agreement. This Financing Agreement embodies the entire agreement between the parties and supersedes all prior agreements, written and oral,relating to the subject matter hereof. Section 4.14. Execution in Several Counterparts. This Financing Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original;and all such counterparts,or as many of them as SCRP and the Agency shall preserve undestroyed,shall together constitute but one and the same instrument. 1 CwpRwvc As ma,o1-22-11 ' 9 ' 1 1 1 IN WITNESS WHEREOF, the Redevelopment Agency of the City of San Bernardino and the Sustainable Communities Reinvestment Partnership, Inc., a California non-profit corporation, have caused this Cooperative Financing Agreement to be signed in their time by 1 their respective Executive Directors all as of the date and year first above written. Agency 1 Redevelopment Agency of the City of San Bernardino 1 By: Interim Executive Director 1 ATTEST: 1 By. Clerk of the Board APPROVED AS TO FORM: 1 By: Agency Counsel 1 SCRP 1 Sustainable Communities Reinvestment Partnership,Inc.,a California non-profit corporation 1 By. President 1 ATTEST: By: Secretary 1 W CoopereliroAgreement-1-23-11 10 W 1 ' Exhibit"A" Programs,Projects and Activities t 4A Y ' Cooperative ABrcemm41-22-11 ii 1 ' 1 I � Exhibit`B" Implementation Plan Public Improvements t i ,I CooPeretive Agreement-i-u�ll 12 i, , a Exhibit"C" Other SCRP Contractual Obligations 1 t Cooperatve Agmmmt-1-22-11 t 13 Exhibit"D" Manaecment and Maintenance for ' Agency Real Property Assets t C ame Age -1-u-u ' 14 BYLAWS WITH ORIGINAL CHANGES FROM NON-PROFIT PRIVATE BOARD TO QUASI PUBLIC BOARD 1 Q Fidd code Oienpea OF THE SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC. a California Nonprofit Public Benefit Corporation ' History of Actions Taken Related to Bylaws Date ' Bylaws Adopted September 4,2009 Amendment January 20 2011 t 1 ' 4Ws 51-95%.[ w y BYLAWS OF THE SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC. TABLE OF CONTENTS W Page ARTICLE NAME AND CORPORATE OFFICES..................................................................142 1.1 NAME..............................................................................................................14-2 ' 1.2 PRINCIPAL OFFICE......................................................................................142 1.3 OTHER OFFICES...........................................................................................14-2 1.4 PURPOSES......................................................................................................142 ARTICLE11 DIRECTORS.............................................................................................................2 2.1 GENERAL POWERS..........................................................................................2 2.2 SPECIFIC POWERS.......................................................................................332 2.3 NUMBER OF DIRECTORS...........................................................................442 2.4 RESTRICTIONS ON INTERESTED PERSONS AS DIRECTORS.............442 2.5 ELECTION AND TERM OF OFFICE OF DIRECTORS..............................442 2.6 RESIGNATION AND VACANCIES.............................................................532 2.7 PLACE OF MEETINGS:MEETINGS BY TELEPHONE.............................532 2.8 REGULAR MEETINGS.................................................................................532 2.9 SPECIAL MEETINGS:NOTICE...................................................................6_62 2.10 OUORUM........................................................................................................662 2.11 WAIVER OF NOTICE....................................................................................6_62 2.12 ADJOURNMENT............................................................................................772 2.13 NOTICE OF ADJOURNED MEETING.........................................................772 ' 2.14 ACTION BY WRITTEN CONSENT WITHOUT A MEETING...................W2 2.15 FEES AND COMPENSATION OF DIRECTORS AND REIMBURSEMENT.......................................................................................7-72 ' 4847-0251-95561 11 t ARTICLEIII COMMITTEES....................................................................................................M 3.1 COMMITTEES OF DIRECTORS..................................................................772 .2 MEETINGS AND ACTION OF COMMITTEE ..........................................882 ARTICLE IV OFFICERS...........................................................................................................992 4.1 OFFICERS.......................................................................................................992 4.2 ELECTION OR APPOINTMENT OF OFFICERS........................................942 t4.3 SUBORDINATE OFFICERS..........................................................................942 4.4 REMOVAL AND RESIGNATION OF OFFICERS......................................942 4.5 VACANCIES IN OFFICES............................................................................992 4.6 CHAIRMAN OF THE BOARD..................................................................10192 4.7 PRESIDENT................................................................................................10192 4.8 VICE PRESIDENT......................................................................................10182 4.9 SECRETARY..............................................................................................10}92 4.10 TREASURERCH-P. FWANC-A o.��...........................................I14- 2 t4.11 DEPOSIT AND DISBURSEMENT............................................................11112 4.12 BOND..........................................................................................................11112 ARTICLE V INDEMNIFICATION OF DIRECTORS OFFICERS,EMPLOYEES AND OTHER AGENTS..............................................................................................1 111-2 5.1 INDEMNIFICATION..................................................................................11412 5.2 APPROVAL OF INDEMNITY...................................................................124-12 .3 PAYMENT OF EXPENSES IN ADVANCE..............................................12}22 5.4 INSURANCE INDEMNIFICATI ON..........................................................12122 ' .5 AMENDMENT.REPEAL OR MODIFICATION......................................12122 ARTICLE VI RECORDS AND REPORTS...........................................................................12422 .1 RECORDS:INSPECTION BY DIRECTORS............................................12122 6.2 ANNUAL REPORT....................................................................................13132 4A 51A5%1 III 6.3 ANNUAL STATEMENT............................................................................13432 6.4 REPORTS TO SECRETARY OF STATE..................................................14442 ARTICLE VII GENERAL MATTERS..................................................................................14442 .l CHECKS:DRAFTS:EVIDENCES OF INDEBTEDNESS.......................144Q 7.2 CORPORATE CONTRACTS AND INSTRUMENTS, HOWEXECUTED......................................................................................14442 ' 7.3 CONSTRUCTION:DEFINITIONS............................................................154-52 ARTICLE VIII AMENDMENTS..........................................................................................15432 ' AMENDMENT BY DIRECTORS..............................................................................15432 8.2 RECORD OF AMENDMENTS..................................................................15432 ' ARTICLE IX INTERPRETATION.......................................................................................15±32 9.1 AMENDMENTS TO LAW.........................................................................15432 ' 480-0ZSIA556] IV BYLAWS ' OF THE SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC. ' ARTICLE 1 NAME AND CORPORATE OFFICES t1.1 NAME The name of this corporation is the SUSTAINABLE COMMUNITIES t REINVESTMENT PARTNERSHIP,INC.(the"Corporation"). 1.2 PRINCIPAL OFFICE ' The principal office for the transaction of the activities and affairs of the Corporation(the "Principal Office") shall be 201 North "E" Street, Third Floor, San Bernardino, California 92401. The Board may change the Principal Office from one location to another. Any change of location of the Principal Office shall be noted by the Secretary on these Bylaws opposite this i ' section or this section may be amended to state the new location. 1.3 OTHER OFFICES ' The Board may at any time establish branch or subordinate offices at any place or places where the Corporation is qualified to conduct its activities. 1.4 PURPOSES A. This corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized for public purposes within the meaning of the ' Nonprofit Public Benefit Corporation Law (codified at California Corporations Code Sections 5110 et sea.), as amended from time to time, and is organized and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the corresponding provisions of any subsequent federal tax laws (the ' "Code"). B. This Corporation is formed for the purpose of lessening governmental burdens by providing assistance to the Redevelopment Agency of the City of San Bernardino (the ' "Agency")in its efforts to promote the green development and redevelopment within-f"°"^; ..oc,.., n_..._,: o,�.- ,wand to implement other financines and oroiects[hat may be requested by the Agency to be undertaken by the Corporation within the municipal boundaries of the City of San Bernardino but only to the extent that such purposes constitutes exclusively charitable,scientific ' and educational purposes within the meaning of Sections 501(c)(3), 170(c)(2)(B),2055(a)(2)and 2522(a)(2)of the Code. ' 4847-0251-9556.5 I 1 C. In its exercise of the above purpose, the Corporation shall have the following ' powers,subject to those limitations set forth in these Bylaws: (1) To enter into,perform and carry out contracts of any kind necessary to,or ' in connection with, or incidental to, the accomplishment of the purposes of the Corporation; (2) To borrow money and to issue evidences of indebtedness and to secure the ' same in furtherance of any or all of the purposes of the Corporation; (3) To receive and maintain a fund or funds,real or personal property,or both, and, subject to the restrictions and limitations hereinafter set forth, to use and apply the ' whole or any part of the income therefrom and the principal thereof exclusively for charitable, religious, scientific, literary or educational purposes either directly or by contributions to organizations that qualify as exempt organizations under Section 501(c)(3)of the Code and its Regulations as they now exist or as they may hereafter be ' amended;and (4) The Corporation shall have the power to do and perform all things whatsoever set out in this Article I and necessary or incidental to the accomplishment of ' said purposes; provided,however, that notwithstanding any provisions of these Bylaws, the Corporation shall not conduct or carry on any activities not permitted to be conducted or carried on by an organization exempt from federal taxation under Section 501(c)(3) of the Code or by an organization,contributions to which are deductible under Section 170(c)(2)of the Code. ARTICLE 11 DIRECTORS 2.1 GENERAL POWERS Subject to the provisions of the California Nonprofit Public Benefit Corporation Law and any other applicable laws and to any limitations in the Articles of Incorporation and these Bylaws, the business and affairs of the Corporation shall be managed and all corporate powers shall be exercised by or under direction of the Board of Directors(the"Board"). The Board may delegate the management of the day-to-day operation of the business of the Corporation to a management company or other person provided that the business and affairs of the Corporation t shall be managed and all corporate powers shall be exercised under the ultimate direction of the Board. {847-0351-9556.1 2 2.2 SPECIFIC POWERS ' Without prejudice to the general powers set forth in Section 2.1 of these Bylaws, but subject to the same limitations,the directors of the Corporation shall have the power to: (a) Appoint and remove at the pleasure of the Board,all of the Corporation's officers,agents and employees; prescribe powers and duties for them that are consistent with the law,with the Articles of Incorporation and with these Bylaws. ' (b) Change the Principal Office or principal place of business office in California from one location to another;cause the Corporation to be qualified to conduct its activities in any other state,territory,dependency or country and conduct its activities within or outside California. (c) Assume obligations, enter into contracts, borrow money and incur indebtedness on behalf of the Corporation and cause to be executed and delivered for the corporate purposes,in the corporate name,promissory notes,bonds,debentures,deeds of ' trust,mortgages,pledges,hypothecation,and other evidences of debt and securities. (d) Acquire, mortgage, encumber, hold title to, pledge, sell, release, or otherwise dispose of real or personal property and interests therein when and upon such ' terms as the Board determines to be in the best interest of the Corporation. (e) Facilitate any merger, consolidation, liquidation, plan of exchange, ' acquisition of stock,or the reorganization or transfer of a substantial portion of the assets of the Corporation. (0 Amend the Articles of Incorporation or these Bylaws. ' (g) Adopt operating and capital budgets and authorize expenditures outside of such budgets. (h) Approve and amend the Corporation's business and strategic plans. (i) Create corporate subsidiaries and/or establish corporate joint ventures. Q) Acquire shares of or any interest in any corporation or other legal entity or business enterprise, or create any partnership or other legal entity which the Corporation is or will be a partner,shareholder or member of similar participant. (k) Change or reorganize the Corporation into any other legal form. (1) Establish or participate in any noncorporate joint venture. 1 Exercise of any or all of the above powers by the Board is subject to its limitation to enter into any action that would adversely affect the tax-exempt status of the Corporation. ' 4847m51-95se.1 g t L n ' 2.3 NUMBER OF DIRECTORS The authorized number of directors of the Corporation shall be not less 4has t"e (2)me move °- �-.r fteen4l-54seven 7. Four (4) directors shall be residents of the City of San Bernardino selected in the manner set forth in Section 2.5 and three (3) directors shall be comprised of three(3)members of the Community Development Commission of the City of San Bernardino or any successor board or agency; provided,however.that the initial appointment of the four (4) public directors shall be appointed upon the resignation of the immediately prior ' directors who have served as directors to approve the amendments to these Bylaws until such time as a process is determined by the Board either with or without terms of office for such directors The e theF 2e' number of d:_.ete_ hall be inkialli.f.X_d at 6..._(4) until ..h.._ge �.. easefidineRt 40 these Byla%�. ' No reduction of the authorized number of directors shall have the effect of removing any director before that director's term of office expires. ' 2.4 CONFLICTS OF INTEREST; OTHER APPLICABLE CALIFORNIA LAWSP-PSTRIGHONS ON PIWERESTAD PERSONS; 49 PI ECTWS; t —The disclosure by directors of all conflicts of interest shall be consistent with those• — For111ar[ea:Keep wml rea,xceplines requirements applicable to municipal corporations pursuant to California law. All provisions of California law with respect to municipal corporations and the conduct of business and the activities of elected and appointed officials serving on the governing bodies of govemmental ' agencies shall be applicable to the Corporation and the Board. including. but not limited to.the Ralph M Brown Act of the State of California (the "Brown Act") (Government Code Section 54950. et sea.). the Public Records Act(Government Code Section et sea.).the Political Reform Act (Government Code Section 87000. et seq.). the conflict of interest provisions of ' Government Code Section 1090 et seq.. the prevailing wage requirements for public works proiects (Labor Code Section 1770 e_M_.._.ated L. r6.. C BFP e_..i.n f... Ser'vee Fes J@Fed to Y within the preN i.. s iweke (12) menths. A 2.5 ELECTION AND TERM OF OFFICE OF DIRECTORS _ neh a .d meeting, of the O_.._d the d:..e_t.._ _then than the seat held L.. the �et . Oeei on 2.3 6e«..f, shall be a eeted is 6.d aF - iegEach elected-director,including a director selected by the Board to fill a vacancy, shall hold office until the expiration of the term for which elected and until a successor has been elected and qualified,except in the case of the death,resignation,or removal of such a director. Any director not elected at an annual meeting may be elected at a special ' 4B4474U51-95561 4 ko W meeting held for that purpose or by written ballot. Any director elected as provided in the ' foregoing sentence shall hold office until the next annual meeting or until a successor has been elected and qualified. 2.6 RESIGNATION AND VACANCIES ' Any director may resign effective upon giving oral or written notice to the Chairman of the Board,the President, the Secretary or the Board, unless the notice specifies a later time for the effectiveness of such resignation. If the resignation of a director is effective at a future time, ' the Board may elect a successor to take office pursuant to Section 2.5 when the resignation becomes effective. Except on notice to the Attorney General of the State of California, no director may resign if the Corporation would be left without a duly elected director or directors. Wacancies on the Board may thereafter be filled by a majority of the remaining directors, or if the number of directors then in office is less than a quornm by (i) mlanimous written consent of the directors then in office, (ii) the affirmative vote of a majority of the directors then in office at a meeting held pursuant to notice or waivers of notice, or(iii) a sole remaining director. Each director m elected shall hold office until the next annual meeting of the Board and until a successor has been elected and qualified,or until his or her death,resignation or removal. I ' A vacancy or vacancies in the Board shall be deemed to exist(i)in the event of the death, resignation or removal of any director,(ii)if the Board by resolution declares vacant the office of a director who has been declared of unsound mind by an order of court or convicted of a felony or(iii)if the authorized number of directors is increased. 2.7 PLACE OF MEETINGS.-All-l- ,TY I1,1' 6PHO 44 Regular meetings of the Board may be held at any place within er-eutside-the City of San Bernardinp the State 84:Gaiilbmi which has been designated from time to time by resolution of the Board. In the absence of such a designation,regular meetings shall be held at the Principal Office of the Corporation. Special meetings of the Board may be held at any place within ee outside the State et Galifemiathe City of San Bernardino which has beers designated in the notice of the meeting or, if not stated in the notice or if there is no notice, at the pPrincipal �tiw e0ffice of the Corporation. d'_e., ..6.....ai.... ' 2.8 CONDUCT OFREGUL-AR MEETINGS ' All Rregular and scecial meetings of the Board shall be held and conducted. and with notice provided, all as reeuired pursuant to the Brown Act, andi€the time and place of such regular meetings areshall be fixed by the Board. The Citv Attorney shall 4"74u51A5563 5 1 be entitled to attend all such meetings at which members of the Mavor and Common Council are in attendance as directors of the Corporation. ' 2.9 - ^°I RESERVED 1 Bowd AF an)o.wide.._. ) ^4ae-..For e c 0oo.2'R"rj'. Netiee of the time and plaee of special meetiRgs shall he delkefed petsaaaily or b) telephene to eaeli diFeeteF ep sent by AHt elms mail,telegFam, charges pFepaid, oF b5 tsleeepi�, in- W41ie neflee is mailed, it shall be depesited in the United Staws mail at Wst fa+it t holding - "ill PF@MPVj SOMMURWate it to the d;F@etoF. The notiee need Ret speei� the PUFVqSO Bf 1448 meetin L.. 2.10 UO ORUM A majority of the authorized number of directors shall constitute a quorum for the transaction of business,except to adjourn w provided in Section 2.12 of these Bylaws. Every act ' or decision done or made by a majority of the directors present at a meeting duly held at which a quorum is present is the act of the Board, subject to the provisions of the California Nonprofit Public Benefit Corporation Law, the Articles of Incorporation and other applicable law, including without limitation,those provisions relating to(i)approval of contracts or transactions in which a director has a direct or indirect material financial interest; (ii) approval of certain transactions between corporations having common directorships;:(iii)creation and appointment of committees; aad-(iv)indemnification of directors: and(v) the Political Reform Act: and(vi) ' the Brown Act. A meeting at which a quorum is initially present may not continue to transact business and may only adioum the meeting to a subseouent date and time et:.i+WA°_d'_.. a"' "-°.:a, �R 2.11 WAIVEROFNOTICE ' Notice of a meeting need not be given to any director who signs a waiver of notice or a consent to holding the meeting°-an appfeNal of the minutes thereof-,whetL...L_.'_._Of a fief the meeting,or who attends the meeting without protesting the lack of notice to such director prior to tthe meeting or at its commencement. All such waivers, consents, and approvals shall be filed asaour.ssss.r 6 i . i r i with the corporate records or made apart of the minutes of the meeting, p -k°- . '° -°t °--ea Rai ..,,..'f. the p __.._e of.._. _......I.. efspeeial meeting of he 118.._J 2.12 ADJOURNMENT ' A majority of the directors present,whether or not a quorum is present,may adjourn any meeting to another time and place,and in the event no directors are then present,the Secretary of the Comoration or a duly authorized representative may adioum the meeting from time to time until a quorum is present in conformity with the Brown Act. t2.13 NOTICE OF ADJOURNED REGULAR MEETBJG If a regular meeting is adjourned f.v _ fe then •�eru four ""` hours, notice of any t adjournment to another time and place shall be given as soon as practicable after the adiournment has been determined;_.:e-4e he of he vaoe to the directors who were not present at the time of the adjournment. ' 2.14 NO ACTION BY WRITTEN CONSENT:TT40b,--A-ME9T4NG NoAny action required or permitted to be taken by the Board may be taken without the conduct of an officially noticed and duly conduced meeting of the Board. 'f ,, membe_. •l°f lb ' 08.._A iAdi id .. ...1.. .. a %TNfig .d. .. C ..6 ' 2.15 1 RESERVED 1 DifeeteFs and members of committees ma3 reeei, e eompensation for their sen ices and Seetion 2.15 shall net be construed to pfeelude an� di�etor 4om sening the Corporation in an), $eF'y16eY a agent, p • — Formatted:IM M:Frn Ilre: O.F ARTICLE III COMMITTEES ' 3.1 COMMITTEES OF DIRECTORS The Board may, by resolution adopted by a majority of the authorized number of directors, designate one or more committees, each consisting of two (2) or more directors, to serve at the pleasure of the Board. The Board may designate one or more directors as alternate members of any committee, who may replace any absent member at any meeting of the ' 4841-02519556.1 7 committee. The appointment of members or alternate members of a committee requires the vote 1 of a majority of the authorized number of directors. Any such committee shall have authority to act in the manner and to the extent provided in the resolution of the Board and may have all of the authority of the Board,except with respect to: ' (a) The filing of vacancies on the Board or in any committee. (b) The fixing of compensation of the directors for serving on the Board or on any committee. t (c) The amendment or repeal of these Bylaws or the adoption of new Bylaws. (d) The amendment or repeal of any resolution of the Board which by its express terms is not so amendable or repealable. (e) The expending of corporate funds to support a nominee for director after more people have been nominated for director than can be elected; ' (f) The creation of any other committees of the Board or the appointment of members thereof. t (g) The approval of any contract or transaction to which the Corporation is a party and in which one or more of its directors has a material financial interest,except as special approval is provided for in Section 5233(dx3) of the California Corporations ' Code. 3.2 MEETINGS AND ACTION OF COMMITTEES t Meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions of the Brown Act and Article 11 of these Bylaws, Section 2.7 (place of meetings), Section 2.8 (regular meetings), Section 2.9 (special meetings and notice), Section 2.10(quorum),Section 2.11 (waiver of notice),Section 2.12(adjournment),Section 2.13 t (notice of adjourned meetings), and Section 2.14 (no action without a meeting), with such changes in the context of those Bylaws as are necessary to substitute the committee and its members for the Board and its members; provided, however,that the time of regular meetings of committees may be determined either by resolution of the Board or by ' resolution of the committee, that special meetings of committees may also be called by resolution of the Board,and that notice of special meetings of committees shall also be given to all alternate members, who shall have the right to attend all meetings of the committee. The Board may adopt rules for the government of any committee not inconsistent with the provisions of these Bylaws. ' 4847-02549556.1 8 n ARTICLE IV OFFICERS 4.1 OFFICERS ' The officers of the Corporation shall be a President, Vice-President.Secretary and Chief r...._.", *—o`.r.-,.....Treasurer. Th@ C.... the discretion Of the o ...a .. Any number of offices may be held by the same person except that neither the Secretary nor the Ghie4 °tom^"-°-Treasurer may serve concurrently as ether President of Chairman oft he°--•40-ard ' 4.2 ELECTION OR APPOINTMENT OF OFFICERS The officers of the Corporation, except such officers m may be appointed in accordance with the provisions of Section 4.3 or Section 4.5 of these Bylaws,shall be chosen by the Board and shall serve at the pleasure of the Board,subject to the rights,if any,of an officer under any contract of employment. 4.3 SUBORDINATE OFFICERS The Board may appoint,or may empower the Chairman of the Board or the President to ' appoint,such other officers as the business of the Corporation may require,each of whom shall hold office for such period,have such authority,and perform such duties as are provided in these Bylaws or as the Board may from time to time determine. ' 4.4 REMOVAL AND RESIGNATION OF OFFICERS I , All officers serve at the pleasure of the Board and any officer may be removed,either with or without cause, by the Board at any regular or special meeting of the Board or, except in the case of an officer chosen by the Board,by any officer upon whom such power of removal may be conferred by the Board. ' Any officer may resign at any time by giving written notice to the Corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights,if any,of the Corporation under any contract to which the officer is a party. 4.5 VACANCIES IN OFFICES ' 4W-M51-95561 9 1 W. n W A vacancy in any office because of death, resignation, removal, disqualification or any ' other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to that office. 4.6 1RESERVED ICHA lor.eee OF TI lE BOARD shall, meetings f the 0.and and a ....d pert...... s .. eh thee pe and duties.. . fFem!time ,.. Nome be ....SIgfi,.d L.. the BOaFd OF as f.... be ffeS ffib d b thESe O 1.. if tli ffe is fle, C-OFPOFa4isH and sbalI ha, peyArand duties pfe Fibed iirlrz.. mon 4 7 afth.w Bylaws 4.7 PRESIDENT The President shall be the Chief Executive Officer of the Corporation and shall, subject to the control of the Board, have general supervision, direction, and control of the business and the officers of the Corporation. The President shall preside, in . at all meetings of the Board. The President shall have the general powers and duties of management usually vested in the office of President of a corporation,and shall have such other powers and duties as may be prescribed by the Board or these Bylaws. 4.8 VICE PRESIDENT t In the absence or disability of the President,the Vice President, if any,shall perform all the duties of the President and when so acting shall have all the powers of, and be subject to all the restrictions upon, the President. The Vice Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board,these Bylaws,the President or the Chairman of the Board. 4.9 SECRETARY ' The Secretary,or Assistant Secretary if such officer is so appointed,shall keep or cause to be kept,at the Principal Office of the Corporation or such other place as the Board may direct, a book of minutes of all meetings and actions of directors and committees of directors. The minutes shall show the time and place of each meeting, whether regular or special (and, if special,how authorized and the notice given),the names of those present at directors' meetings or committee meetings,and the proceedings thereof. ' The Secretary or Assistant Secretary shall give, or cause to be given, notice of all meetings of the Board required to be given by law or by these Bylaws. The Secretary or Assistant Secretary shall keep the seal of the Corporation,if one be adopted,in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or by these Bylaws. 4474)351A556.1 10 ■ ' 410 '°'C- TREASURER The G4ie °'- -'° ^`°--Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of the Corporation, including accounts of its assets, liabilities, receipts, disbursements,gains,losses,capital and retained earnings. The Treasurer^''^f°'- °'°'^'T°°- shall send or cause to be given to the directors such financial statements and reports as are required to be given by law,by these Bylaws,or by the Board. The books of account shall at all reasonable times be open to inspection by any director. The Treasurer^'' f-°'° -o.,,°'° ^rte---shall deposit all money and other valuables in the time and to the credit of the Corporation with such depositaries as may be designated by the Board. The Treasurer^k'°P ,,. -o,.,°'^'c-°-shall disburse the funds of the Corporation as may be ordered by the Board,shall render to the President and directors,whenever they request it an account of all of his or her transactions as"'-'°f -'°' °-Treasurer and of the financial condition of the Corporation,and shall have such other powers and perform such other duties as may be prescribed by the Board or these Bylaws. 4.11 DEPOSIT AND DISBURSEMENT The TreasurerGhief°'°.,,a;F�-e.,.�°°' ^r''°°- shall deposit, or cause to be deposited,all money ' and other valuables in the name and to the credit of the Corporation with such depositories as the Board may designate,shall disburse the Corporation's funds as the Board may order,shall render to the President and directors, when requested, an account of all transactions as Treasurer6kie€ o^"'--- and of the financial condition of the Corporation, and shall have such other powers and perform such other duties as the Board or the Bylaws may prescribe. 4.12 BOND ' If required by the Board, the Treasurer"`'°f Finaneial^"'---shall give the Corporation a bond in the amount and with the surety or sureties specified by the Board for faithful performance of the duties of the office and for restoration to the Corporation of all of its books, ' papers,vouchers,money,and other property of every kind in the possession or under the control of the TreasurerChiet°i^ nG;91 ^f''^e-on his or her death, resignation, retirement or removal from office. ' ARTICLE V INDEMNIFICATION OF DIRECTORS,OFFICERS.EMPLOYEES ' AND OTHER AGENTS 5.1 INDEMNIFICATION ' To the fullest extent permitted by law, this Corporation shall indemnify its directors, officers, employees and other persons described in Section 5238(a) of the California 4sa-u251-95561 11 1 Corporations Code, including persons formerly occupying any such positions, against all expenses,judgments, fines, settlements and other amounts actually and reasonably incurred by them in connection with any"proceeding,"as that term is used in that section of the California Corporations Code and including an action by or in the right of the Corporation,by reason of the fact that such person is or was a person described by that Section. "Expenses," w used in this Bylaw,shall have the same meaning as in Section 5238(a)of the California Corporations Code. 5.2 APPROVAL OF INDEMNITY ' On written request to the Board by any person seeking indemnification, the Board shall promptly determine under Section 5238(e) of the California Corporations Code whether the standard of conduct set forth in Sections 5238(b)and(c)have been met and,if it has,the Board shall authorize indemnification. ' 5.3 PAYMENT OF EXPENSES IN ADVANCE To the fullest extent permitted by law and except as otherwise determined by the Board, expenses and attorneys' fees incurred by any persons described in Section 5.1 in defending any civil or criminal action or proceeding for which indemnification is required pursuant to Section 5.1,or if otherwise authorized by the Board,shall be paid by the Corporation in advance t of the final disposition of such action or proceeding upon receipt of an undertaking by or on behalf of the indemnified party to repay such amount if it shall ultimately be determined that the indemnified party is not entitled to be indemnified for those expenses. 5.4 INSURANCE INDEMNIFICATION The Corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer,employee or agent of the Corporation against any t liability asserted against or incurred by such person in such capacity or arising out of that person's status as such. 5.5 AMENDMENT,REPEAL OR MODIFICATION Any amendment, repeal or modification of any provision of this Article V shall not adversely affect any right or protection of a director or agent of the Corporation existing at the time of such amendment,repeal or modification. ARTICLE VI ' RECORDS AND REPORTS 6.1 RECORDS,INSPECTION BY DIRECTORS L... The Corporation shall keep adequate and correct books of records of account and written minutes of the proceedings of its Board and committees of the Board. Every director shall have the absolute right at any reasonable time to inspect and copy all books,records,and documents 4847-0251-9556.1 12 it ' of every kind and to inspect the physical properties of the Corporation. Such inspection by a director may be made in person or by an agent or attorney and the right of inspection includes the right to copy and make extracts. 62 ANNUAL oI:, ,-oTAUDIT ' The Board shall fumish to the directors and make available for public inspection and distribution not later than one hundred twenty (120) days after the close of the Corporation's fiscal year an annual repetaudiu conducted by an indecendent firm of wrtitied public accountants. The repettaudit shall contain the following information, in appropriate detail, for the fiscal year: (a) The assets and liabilities, including tmst funds, of the Corporation as of ' the end of the fiscal year. (b) The principal changes in assets and liabilities,including trust funds,during the fiscal year. ' (c) The revenue and receipts of the Corporation, both unrestricted and restricted to particular purposes,for the fiscal year. (d) The expenses and disbursements of the Corporation,for both general and restricted purposes,during the fiscal year. (e) (e�--Any information required by Section 6.3 of these Bylaws. : _ FamuKm:Buller and numberi:q Farmetlr�:IntlpK: (e)Anv other information re wired h enerall - acce ted accountinp principles- - Formeteed:Indent:Lea: o.5•,First line: and eovernmental accounting requirements. us-, rvo bullets or numbering The annual repptiaudit shall be accompanied by any report on it of independent certified public accountants or making recommendations and reviews of manaeement and other procedures of the Corporation- if•heFe is no such --°°Ft, h° the eenifiEaue of an guthefimd Affi--F 4 4h- CGFP8Fa6OA that Well statements weve prep 0 wQhO-9 audil. 4..-4he c 8i;atisn's b8sks ..-A !-00O MS. This V-eq..6........ . ..0 an a ual -,rsit shall net apply if tl.e ,h@ f...a. @aFj .. n....ij@d 1. that ,6e :..fegtig.i s eified above ..for ;sien on as H'Fit1Hp 6.3 ANNUAL STATEMENT As part of the annual auditfepert to be furnished to the directors and to the public pursuant to Section 6.2 of these Bylaws, the Board shall furnish to the directors an annual statement of any transaction or indemnification of the following kinds: ae 74c5l-95561 13 1 (a) Any transaction(i)in which the Corporation, its parent, or its subsidiary ' was a party,(ii)in which an"interested person"had a direct or indirect material interest, and (iii) which involved more than Fifty Thousand Dollars($50,000), or was one of a number of transactions with the same interested person involving,in the aggregate,more than Fifty Thousand Dollars($50,000). For the purposes of this section, an "interested I ' person"is any director a officer of the Corporation or its parent or subsidiary;however, a mere common directorship shall not be considered a material financial interest. (b) Any indemnifications or advances aggregating more than Ten Thousand ' Dollars($10,000)paid during the fiscal year to any officer or director of the Corporation pursuant to Article V of these Bylaws unless such indemnification was previously approved by the directors under Section 5238(exl)of the California Corporations Code. ' 6.4 REPORTS TO SECRETARY OF STATE The Board shall cause to be filed with the Secretary of State an annual statement containing the following information: (a) The names and addresses of its President,Secretary and TreasurerChief r-._.._,. Iifi.._i�m,.._.. ' (b) The street address of its Principal Office. (c) A designation of an agent for service of process. ' The statement shall be filed on the form prescribed by the Secretary of State. ARTICLE VII ' GENERAL MATTERS 7.1 CHECKS:DRAFTS:EVIDENCES OF INDEBTEDNESS ' From time to time,the Board shall determine by resolution which person or persons may sign or endorse all checks,drafts,other orders for payment of money,notes or other evidences of indebtedness that are issued in the name of,or payable to,the Corporation,and only the persons ' so authorized shall sign or endorse those instruments. 7.2 CORPORATE CONTRACTS AND INSTRUMENTS:HOW EXECUTED The Board, except as otherwise provided in these Bylaws, may authorize any officer or officers, or agent or agents,to enter into any contract or execute any instrument in the time of and on behalf of the Corporation; such authority may be general or confined to specific instances. Unless so authorized or ratified by the Board or within the agency power of an g i officer,no officer,agent or employee shall have any po.+er or authority to bind the Corporation A asarosst-sssc.t ]q w t by any contract or engagement or to pledge its credit or to render it liable for any purpose or for any amount. 7.3 CONSTRUCTION:DEFINITIONS 1 Unless the context requires otherwise, the general provisions, rules of construction and definitions in the California Nonprofit Public Benefit Corporation Law shall govern the construction of these Bylaws. Without limiting the generality of this provision, the singular number includes the plural, the plural number includes the singular, and the term "person" ' includes both a corporation and a natural person. ARTICLE Vill ' AMENDMENTS 8.1 AMENDMENT BY DIRECTORS Subject to compliance with the provisions of Sections 2.4 and 2.8 Tthe Board may adopt, amend or repeal these Bylaws except that the Board may not extend the term of a director beyond that for which the director was designated. 8.2 RECORD OF AMENDMENTS Whenever an amendment or new Bylaw is adopted, it shall be copied in the book of ' minutes with the original Bylaws. If any Bylaw is repealed,the fact of repeal,with the date of the meeting at which the repeal was enacted or written consent was filed, shall be stated in said book. ARTICLE IX INTERPRETATION 9.1 AMENDMENTS TO LAW Reference in these Bylaws to any provision of the California Corporations Code, specifically the Nonprofit Public Benefit Corporation Law, shall be deemed to include all amendments thereof. tr ' 4s47m51-9556.1 15 1 CERTIFICATE OF ADOPTION OF BYLAWS ' OF THE SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP,INC. 1 I,the undersigned,do hereby certify: t 1. That I am the duly elected and President of the SUSTAINABLE COMMUNITIES REINVESTMENT PARTNERSHIP, INC., a California nonprofit public benefit corporation. ' 2. That the foregoing Bylaws constitute the Bylaws of said corporation as adef4Amended by the Board of Directors of said corporation on Septexiber-4January 20,201109. IN WITNESS WHEREOF, I have hereunto subscribed my time this 420th day of ' Septei b January,201109. President 1 1 ' 4840-0251-9556.1 16 ALTERNATIVE METHOD FOR SELECTION OF DIRECTORS TO � NON-PROFIT BOARD 2.3 NUMBER OF DIRECTORS : t The authorized number of directors of the Corporation shall be seven (7). Four (4) ' directors shall be residents of the City of San Bernardino geleeted elected in the manner set forth in Section 2.5faal and dirge (3) directors shall be embers of the Community Development Commission of the City of San Bernardino,or any successor board or ' agency, elected in the manner set forth in Section 2.5 initial No reduction of the authorized number of directors shall have the effect of removing any ' director before that director's term of office expires. 2.4 CONFLICTS OF INTEREST;OTHER APPLICABLE CALIFORNIA LAWS The disclosure by directors of all conflicts of interest shall be consistent with those requirements applicable to municipal corporations pursuant to California law. All provisions of California law with respect to municipal corporations and the conduct of business and the activities of elected and appointed officials serving on the governing bodies of governmental agencies shall be applicable to the Corporation and the Board,including,but not limited to,the Ralph M.Brown 1 Act of the State of California (the`Brown Act")(Government Code Section 54950,et seq.),the Public Records Act (Government Code Section . et seq.), the Political Reform Act (Government Code Section 87000, et seq.), the conflict of interest provisions of Government Code Section 1090, et seq., the prevailing wage requirements for public works projects(Labor Code Section 1770,et seq.). 2.5 ELECTION AND TERM OF OFFICE OF DIRECTORS a. Directors Elected by the Citizen Advisory Board. The Citizen Advisory Board.as. — Formatted:Intent Rot the: 0.s^,outline set forth in Section 2.15,shall elect four(4)persons to serve as directors. Said directors shall be numbered+level;4+Numba"Style:a,b, 4...+Start at 1+Aignment Left+Aligned residents of the City of San Bernardino,but shall not be members of the Citizen Advisory Board. at m+mdeatat 0^ In electing said directors. the Citizen Advisory Board shall establish a process that solicits applications from residents and gives anpropriate consideration to a candidate's Qualifications. experience and/or expertise in areas or fields related to economic development Said directors shall hold office until the expiration of the term for which elected and until a successor has been ' elected and qualified,except in the case of the death.resignation,or removal of such a director .— Fgrmat<ed:Indent Left 0.5" b. Directors Elected by the Communitv Development Commission. The Community.— Po Uaxl:mdmt First Ine: 0.511,Qudioe Development Commission of the City of San Bernardino.or any successor board or agency.shall numbered+Lever:4+Numtedng style:a,b, nt ,Aligned - ' elect three (3) of its members to serve as directors. Said directors shall hold office until the g...+staaatl+Align at 0^+tntlent at o• expiration of the term for which elected and until a successor has been elected and qualified. except in the case of the death.resignation.or removal of such a director. Ftaeh ai. eter, :_d ..ding _ a:___t„_ _ _et_a by the o___a to fn _ _hall held, _ Fopnatled ' °e gee until the expi rsnon °of--tn t__f f<_..L'_L _I__t_d and until _ sueeesseFh.as been elected 4847-0251-9556.1 4 1 Y r 2.15 E REOFRVFDD4flTIZEN ADVISORY BOARD — There shall be a nine(9) member board of advisors("Citizen Advisory Board") who shall meet at least annually to review and provide advice to the Board reeardine the Corporation. and to elect directors to the Board as set forth in Section 2.5(a). Members of the Citizen Advisory Board shall be residents of the City of San Bernardino. The initial members of ' the Citizen Advisory Board shall be selected by Mayor and Common Council of the City of San Bernardino,two(2)bL the Mavor and one(I)by each member of the Common Council. At the first meeting of the Citizen Advisory Board a lottery shall be held to designate an initial one- i ' year term for five (5) members and an initial two-year term for four (4) members. After the expiration of initial terms or upon a vacancv, all new members shall be elected by the Citizen Advisory Board for a terni of(2) rears. and each member of the Citizen Advisory Board shall hold office until the expiration of the term for which elected and until a successor has been ' elected and qualified. except in the case of the death, resienation, or removal of such member. All requirements of Section 2.4 shall be applicable to activities of the Citizen Advisory Board and its members. ' ARTICLE III COMMITTEES ' 3.1 COMMITTEES OF DIRECTORS The Board may, by resolution adopted by a majority of the authorized number of directors, designate one or more committees, each consisting of two (2) or more directors, to serve at the pleasure of the Board. The Board may designate one or more directors as alternate members of any committee, who may replace any absent member many meeting of the committee. The appointment of members or alternate members of a committee requires the vote of a majority of the authorized number of directors. Any such committee shall have authority to act in the manner and to the extent provided in the resolution of the Board and may have all of the authority of the Board,except with respect to: (a) The filing of vacancies on the Board or in any committee. (b) The fixing of compensation of the directors for serving on the Board or on any committee. (c) The amendment or repeal of these Bylaws or the adoption of new Bylaws. ' (d) The amendment or repeal of any resolution of the Board which by its express terms is not so amendable or repealable. (e) The expending of corporate funds to support a nominee for director after tmore people have been nominated for director than can be elected; ' 4847-0351-9555.1 7 ti ' GRUENASSOCIATES KI SUH KRAAL AENOMHOOFKIA Ak HI IN 1 16 P p ILII i 1 < MIOHAELAENDMD LEE AIR � LARRY SCHLOSSBERG.AIALEEp AP ' DEBRAGEROD,AIA,IEEDAP Monday, January 24, 2011 ASHOK VANMALLAIA Mr. Warner Hodgdon, Project Director 320 North E Street, Suite 102 San Bernardino, California 92401 tDear Mr. Hodgdon: t Re: Professional Services Agreement With P3 (Arrowhead Public Private Partnership) for Reality Check and Comprehensive Understanding; Fast Track -Design Build • Funding: A. Theater Square Block • Regal 14 Screens and Front Restaurants/Commercial California Theater East Seismic Buttress Building for Restaurants/Commercial Use and Related Public Parking Areas B. Illustrative/Presentation Panels San Bernardino Central City Area • County Government Center•Arrowhead Plaza • Overall County Green Campus Areas C. Relationship of Two Omnitrans Bus Transfer Areas,along both 4`" and "E"Streets and ' Interim Relocation Thereof; Penney TBA(shelved RDA)or Ward TBA(alternate) ' D. Retrofit Theater Square, Retrofit Central City Mall/Three-Level Parking Structure, Retrofit City Hall/Five-Level Parking Structure, Retrofit/Re-Open City Convention Center and Related Hotel As a follow-up to recent work sessions, Gruen Associates is pleased to submit this Professional Services letter for the preparation of ten (10) illustrative/presentation panels related to the RDA Theater Square ' Block project, Illustrative Site Plan and Rendering (see attached)as found within your memorandum you presented to the Mayor/Council • Community Development Commission on Monday,January 10, 2011. ' It is our understanding that your intent is to use this material for clarification to various public officials and citizens regarding the Theater Square project located within the block bounded by 4'" and 5" Streets, and "E" and "F" Streets north of Central City Mall, proposed to accommodate, but not limited to, the Regal Theaters' 14-screen cinema fronted on the south by several new restaurants, The _. California Theater upgrades, (including its required new east seismic buildings therefor) relationships to various identified required public parking areas, and relocation of two existing Omnitrans bus transfer stations from "E" Street and 4t" Street. Toward that end, ten 11 x 17 presentation plans and ten 30 x 6330 San Vicente Boulevard,Suite 200,Los Angeles,CA 90048-5441 •T 323 937-4270•F 323 937-6001 •www.gruenassociates.conn Mr.Warner Hodgdon ' Monday,January 24, 2011 Page 2 G R U E NASSOC IATES .�NNiNG 111mEta0H9 40± foam core panels thereof are to be prepared and overlaid based on Google Aerial Maps and P3 presentation material: ' • One: Encompassing the area generally bounded by 2""Street, 5"Street, "D" Street and the 215 Freeway. ' • Two: Encompassing the area generally bounded by Rialto Avenue, 9t' Street, Waterman ' Avenue, and Mt.Vernon Avenue. Three: Conceptual plan diagrams, overlaid on Google Maps setting forth concepts for the development and improvement of the Theater Square block, as well as utilization of Penney and/or Wards TBAs at Central City Mall for the interim Omnitrans bus transfer area (ultimate location planned at "E" Street and Rialto Avenue for the Omnitrans/Metrolink SBX San ' Bernardino Intermodal Transit Station) ' • Four: Existing conditions photographs setting forth bus stop conditions and options related to potential relocation ' • Five: Central City Mall—Impacts Existing public revenues generated at Central City Mall and surrounding businesses ' • Six: 1975 Economic/County Government Center and Financial District"City on the Move" ' • Seven: The Redevelopment Agency marketing strategy for the Theater Square / California Theater area ' • Eight: Photographs and illustrative material depicting concepts proposed for the renovation of the California Theater. ' • Nine: Illustrative Material Depicting Improvements to the Historic 1927 Andreson Building and City Hall/Convention Center Retrofit. • Ten: Andreson Building P3 Offices T It is proposed that these diagrams be prepared based on our plans developed from draft pages 16, 18, 20, 21, 22 and 28 dated February 2010 as currently prepared for the P3 Warner Hodgdon documentation, a portion of which was presented and submitted for the public record at the Mayor/ Council •Community Development Commission Monday,January 10,2011 public meeting. 1 ' Mr.Warner Hodgdon Monday,January 24,2011 ' Page GRUENASSOCIATES ARCwTECi RE PLANNING INTERIORS SCOPE OF EFFORT ' More specifically, the aerials shown on pages 21 and 28 of the P3 documentation are to be revised to place them on 11 x 17 pages for table-top presentations, as well as larger 30 x 40± panels for public meetings with the MC-CDC officials and citizens. The revisions are to be as follows: 1 • P3 Page 21: Enlarge aerial to 11 x 17 and remove small photos • Provide new title block ' • Enlarge type for call-outs • Strip in "Theater Square' Plan • Add call-outs: Central City Mall -- Three-Level Mall Parking Structure at 4"and "E" Streets ' -- Five-Level City Hall, Performing Arts,Convention Center Parking Structure City Hall • Convention Center and Hotel ' -- State Building-4`"and "E"Streets State Building Parking Structure—4`"and "E"Streets -- Andresen Building and Parking Structure Bridge California Theater and east side new building for seismic requirements ID Penney TBA (interim bus transfer area to replace the two existing transfer areas at "E" Street and Court Street and on 4`"Street across from Theater Square) ' -- ID Wards TBA(alternative consideration for west bus transfer area at 4'h and "H"Streets area ID Stater Bros. Market Shopping Center-4'h Street between"F"and "G"Streets Others ' • P3 Page 28: Enlarge aerial image to 11 x 17 and remove small photos • Provide new title block • Make revisions as per P3 page 21 above ' Provide call-outs as per P3 page 21, etc • Provide new captions as may be required • Conceptual Plan Diagrams: Prepare conceptual plan diagram overlaid on Google Map information ' Illustrate conceptual bus transfer area circulation for Penney TBA Illustrate conceptual bus transfer area circulation for Wards TBA ' Illustrate conceptual plan layout for Theater Square - Showing Regal Theater 14-screen concept t - New restaurants/commercial Mr.Warner Hodgdon Monday,January 24,2011 Page GRUENASSOCIATES ARCHITECTURE PLANNING INTEDORS ' -- Access to parking areas Access to Central City Mall -- New elevator and stair towers for existing Central City Mall 1,100-car parking structure • California Theater Illustrative Material, P3 Page 20: _= Existing conditions photos for California Theater site Existing conditions related to the Civic Center,City Hall, Convention Center/Hotel ' • Bus Stop Existing Transfer Areas Conditions Photos: -- Existing conditions on 4'"Street ' -- Existing conditions on "E' Street • City Hall, Convention Center, Hotel Existing Conditions Retrofit Photos,P3 Page 16: ' • Andreson Building/P3 Improvements, P3 Page 18: • Existing City• RDA Public Revenue Generators -- Listed by area in and adjacent to Central City Mall • RDA Marketing Strategy for Theater Square -- Illustrating the scope of performances and RDA illustrative concepts for Theater Square • 1975 Economic/County Government Center and Financial District "City of the Move" P3 Page 22: .. FEE PROPOSAL It is proposed that the effort outlined above be provided on an hourly basis not to exceed a fee of Twelve Thousand Two Hundred Dollars ($12,200.00) with expenses for reproduction being reimbursable. ' The Professional Services fee breakdown is as follows: • Coordination III ' Meeting to refine scope and gather input 8 hours $ 2,400.00 Graphic Design and Coordination with Staff 12 hours $ 3,600.00 • Graphics Design ' Staff First Draft 16 hours $ 1,600.00 Staff Second Draft 30 hours $ 1,000.00 Staff Third Draft;Finalize 30 hours $ 1,000.00 ' Total S 9,600.00 1 ' Mr.Warner Hodgdon Monday,January 24, 2011 ' Page GRUENASSOCIATES ARCHITECTURE PLANNING IN1ERROH9 ' Reproduction Costs/Estimate Twenty(20)copies 11 x 17 color $ 500.00 Ten(30)panels 11 x 17 color(mounted) $ 500.00 Ten(10)panels 30 x 40±color(mounted) $ 1.600.00 Total QO,Q ' Total Professional services/ Reproduction Costs 244.44 ' Following your review of our proposal and upon your return of a signed copy of this letter representing our authorization to proceed,we are prepared to start the effort within one week. Respectfully submitted, ' GRUEN ASSOCIATES Ku ranzen,AIA ' Director,Special Projects 1 ' The foregoing is hereby accepted: By Title ' Date t 1