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HomeMy WebLinkAbout03- Community Development D E V E L O P M E NT D E P A R T M E N T OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Subject: POLICE HEADQUARTERS Executive Director ACQUISITION — 466 WEST FOURTH STREET Date: January 8, 1993 ----------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On June 22, 1992, the Mayor and Common Council accepted $2.3 million as the appraisal value of the existing Police Department building. On October 22, 1992, the Redevelopment Committee recommended $2,320,000 as the sale price for the acquisition and asked Agency staff to negotiate with City staff regarding lease terms for the lease back of the building. On December 21, 1992, the Community Development Commission continued the matter until January 11, 1993. ------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission continue the matter pertaining to the Police Headquarters Acquisition to February 1, 1993. ' Administrator KENNETH J. HE#DERSON Executive Director ------------------------------------------------------------------------------- Contact Person(s) : Kenneth Henderson/John Hoeger Phone: 5081 Project Area(s): Central City North/Southeast Industrial Park Ward: 1st & 3rd Supporting Data Attached: Staff report, map, resolutions, grant deed, lease. FUNDING REQUIREMENTS: Amount: $2,320.000 Source: SEIP Bond Proceeds Budget Authority: ------------------------------------------------------------------------------- Commission/Council Notes: ----------------------------------------------------------------------------- KJH:lmp:2786J COMMISSION MEETING AGENDA Meeting Date: 01/11/1993 Agenda Item Number: t D E V E L O P N E N T 0 E P A R T M E 11 T OF THE CITY OF SAN BERNARDINO RE( l1I:ST FOR COMMISSION/COUNCIL ACTI0N �1rr✓ From: KENNETH J. HE14DERSON Subject: POLICE ILEADQUARTERS Executive Director ACQUISITION - 466 WEST FOURTH STREET Orate: December 16, 1992 ------- S_ynohs .s_ of Previous Commisslon/Council/Committee ActionC. On June 22, 1992, the Mayor and Common Council accepted $2.3 million as the appraisal. value of the existing Police Department building. On October 22, 1992, the Redevelopment Committee recommended $2,220,000 as the sale price for the acquisition and asked Agency staff to negotiate with City staff regarding lease terms for the lease bacl--. of' the building. --------------------- Re commended_Motion(s): �Comonnn .t_y_Development Commission) MOTION A.: That the Community Development Commission Authorize acquisition of the Police headquarters building at 466 West Fourth Street by the Redevelopment Agency; authorizing the Executive Director and Chairman to execute all pertinent documents therefor. (Motions continued on next page. . .) Administrator KENNETH J. 11ERDsRSON Executive 1)irec or -------------------------------- Contact Person(s) : _._Kenneth Henderson/John Hoeger Phone: 5081 Project Area(s) : Central_City North/Southeast Industrial Park Ward: lst_k 3rd Supporting Data Attached: _ Staff report, map, resolutions-,--grant deed., lease. HIPI[1ING PEQUIREMENTS: Amount: $2,320,000 Source: _ SEIP Bond Proceeds Budget Authority: Included in the form motions_____ --------------------------- Commission/Council Notes_ - �,f ? --- ,� l �J7�` KJ It:JBIi:d le:6013R COMMISSION HANG AGENDA Meeting" mi,e 12/21/1992 Agenda Item Number: 3 REQUEST FUI; COMMISSION/COUNCIL ACTION Police Headquarters Acquisition December t6, 1992 Page Number .-2- Rrcommende_ -lotionlsl MOTION B: Authorize payment for the acquisition from $2,320,000 (plus escrow and purchase costs) of bond proceeds from the Southeast Industrial Park project area. MOTiOn C: Autbori..e the Executive Director to execute the attached lease agreement between the Redevelopment Agency and the City of San. Bernardino, and all documents necessary to administer said agreement. mOTION D: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING IINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BF,TCHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA AND THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREAS OF THE AGENCY. (Mey_or and Common Council) t"OI':ION E: RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTIOII OF A GRANT DEED CONVEYING CERTAIN PROPERTY LOCATED ON THE NORTH SIDE OF FOURTH STREET, BETWEEN 'E' STREET AND 'D' STREET, TO THE REDEVELOPMENT AGENCY OP' THE CITY OF SAN BERNARDINO; AUTHORTZTDTG THE EY,ECUTTON OF THE PERTTNF.NT ESCROW INSTRUCTIONS AND AUTHORIZI:NC, THE EXECUTION OF A LEASE AGREEMENT WITH SAID REDEVEL,O11IFTIT AGENCY AND AUTHORIZING PAYMENT THEREFOR. VOT:ION F: RESOLUTION OF TILE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 1117RITARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCTNG ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK RET)EVELUMENT PROJECT AREA AND THE CENTRAL CITY DTORT)I REDEVELOPMENT PROJECT AREA OF THE AGENCY. -------------------------------------------------------------------------------- KJH:JBH:dle:60138 COMMISSION MEETING AGENDA Meeting Date: 12/21/1992 Agenda Item Number: 3 DEVELOPMENT DEPARTMENT STAFF REPORT POLICE HEADQUARTERS ACQUISITION This item will authorize execution of the necessary documents to consummate the purchase of the existing Police Department headquarters building. To effect the transfer, there are three basic decisions to be ratified. First is the ratification of the price. Second is the question of the lease terms that are appropriate while the Police Department continues to occupy the building. And third, there is the question of what source of funds the Agency is to use for the acquisition. THE ACQUISITION PRICE An Appraisal Institute (MAI) appraisal for the building determined its market value to be $925,000 as of March 26, 1992. On June 22, 1992 (after considering other appraisal information) the Common Council selected a value of $2.3 million for use in the City's 1992-1993 budget. A summary and comparison of the appraisal information sources has been prepared and is available upon request as are the appraisals themselves. The Agency's purpose for acquiring the building is to obtain a cleared site that can be used for redevelopment. The 0.61 acre site will have a market value of about $320,000 after it is cleared. The cost of demolition is estimated to be about $350,000. Thus the transaction from the Agency's point of view is as follows: Acquisition cost $ 2,320,000 Estimated Demolition cost 350,000 TOTAL COST $ 2,670,000 Less final value (320,000) UNRECOVERABLE COST $ 2,350,000 At the October 22, 1992 meeting of the Redevelopment Committee, the Committee recommended that the Commission approve $2,320,000 as the acquisition price of the facility. The resulting $2,350,000 difference between the Agency's costs and the site's value will become an added cost, without benefit of reimbursement, for the Cornerstone Tower project or whatever other project is eventually built on the site. ------------------------------------------------------------------------------- KJH:JBH:dle:6013R COMMISSION MEETING AGENDA Meeting Date: 12/21/1992 Agenda Item Number: 3 DEVELOPMENT DEPARTMENT STAFF REPORT Police Headquarters Acquisition December 16, 1992 Page Number -2- LEASEBACK TERMS At the same October 22, 1992 meeting, the Committee discussed the need for a lease from the Agency to the City to cover continued occupancy by the Police Department while its new facility is being prepared. The Committee recommended that staff meet with the City Administrator or representative to negotiate lease terms for the building. Agency staff subsequently met with City staff from the Administrator's office to discuss lease terms. Based upon the agreement reached in that meeting a rent of $17,992 per month (beginning next fiscal year) was established. Later, some concern was raised over the City's ability to pay this amount, and in recognition of this possibility, language has been added to acknowledge that the rent can be renegotiated and changed by mutual agreement of the parties. The lease is written for a term ending with the current fiscal year plus two one-year options to extend. It can be canceled, however, by a 30 day notice from either party. The lease is a triple net lease which continues the City's existing responsibilities for maintenance and related matters. The lease rate will be $1 per month until the end of the 1992-1993 fiscal year. On July 1, 1993 the rent will become $17,992 E per month, triple net. This is compatible with the $925,000 appraised value of the property. A different rental rate can be established through negotiation and agreement by the parties (and adoption by the Commission and Council). SOURCE OF ACQUISITION FUNDS The Agency is experiencing significant restrictions in its ability to fund major transactions. Due to the private use of the office tower and restaurants planned for the site, the source of funds for this acquisition has been designated to be tax increment money. However, the Department's accounting section advises that Central City North, the project area in which the building is located, has no tax increment (or even other) funds available for the purchase and no likely means of repayment of any loan. Therefore, for some time, the Agency's cash flow forecasts have assumed that the Southeast Industrial Park project area will have to buy the building. Southeast currently has sufficient tax increment funds for the transaction provided the Council and the Commission determine that it would be beneficial to the Southeast project area to buy the building, ------------------------------------------------------------------------------- KJH:JBH:dle:6013R COMMISSION MEETING AGENDA Meeting Date: 12/21/1992 Agenda Item Number: __� — s DEVELOPMENT DEPARTMENT STAFF REPORT Police Headquarters Acquisition December 16, 1992 Page Number —3- demolish it, and then contribute the site to the development of downtown. To proceed with this source of funds, Agency Counsel has prepared the attached benefit resolutions for consideration by the Council and the Commission. RECOMMENDATION In anticipation of this transaction, the City's Real Property Section has prepared the necessary deeds and selling resolutions. An escrow has been opened and matters of record have been researched. Based upon the foregoing considerations, staff recommends a sale price of $2,320,000 together with the attached lease. The building will be purchased by the Southeast Industrial Park project area which will eventually donate the property to the development of the downtown area after demolishing the existing building. Staff recommends adoption of the form motions. V�o KENNETH J. HENDE SON, Executive Director Development Depa tment ------------------------------------------------------------------------------- i KJH:JBH:dle:6013R COMMISSION MEETING AGENDA Meeting Date: 12/21/1992 Agenda Item Number: pS s�ao� ~ N .�• -Soh � � � ST, N f • I 41.45 4f•?5 I i i I I I l =N. �. I i • i ( I N I � �• I � I � t . I 41•TS 41.23 in N �N N Af000Qry TO or SOLD s la"11</ RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO 3 THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA AND THE 4 CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF THE AGENCY. 5 WHEREAS, the City of San Bernardino, (the "City" ) , is a 6 municipal corporation and a charter city duly created and existing 7 pursuant to the Constitution of the laws of the State of 8 California; and 9 WHEREAS, the Community Development Commission of the City of 10 San Bernardino (the "Commission" ) on behalf of the Redevelopment 11 Agency of the City of San Bernardino (the "Agency" ), is a 12 redevelopment agency, a public body, corporate and politic of the 13 State of California, organized and existing pursuant to the 14 Community Redevelopment Law (Part 1 of Division 24) commencing 15 with Section 33000 of the Health and Safety Code of the State of 16 California (the "Act" ) ; and 17 WHEREAS, the Agency may, in furtherance of its redevelopment 18 purposes, undertake redevelopment projects either within or 19 without redevelopment project areas of the Agency to the extent 20 that it determines that such projects are of benefit to the 21 project areas of the Agency; and 22 WHEREAS, the Agency may undertake various blight reducing 23 redevelopment activities (the "Blight Reducing Activities" ) 24 including but not limited to the acquisition of the old police 25 facility for land assembly which is located within the Central 26 City North Redevelopment Project Area but will benefit the 27 Southeast Industrial Park Redevelopment Project Area if the Agency 28 determines: ( 1 ) that such Blight Reducing Activities are of DAR_kfn(BL1GRT3.RR5] December 17. 1992 �. MW- 1 benefit to the redevelopment project areas of the Agency or the 2 immediate neighborhoods in which the projects are and (2 ) that no 3 other reasonable means of financing such Blight Reducing 4 Activities is available to the community; and 5 WHEREAS, it is in the interests of the City and the Agency 6 that the Agency causes the undertaking of the Blight Reducing 7 Activities in order to reduce blighting conditions from the g downtown area of the City which area has a direct effect on the 9 viability, growth and development of the Southeast Industrial Park 10 Redevelopment Project Area of the Agency; and 11 WHEREAS, the undertaking of the Blight Reducing Activities 12 will promote the development of redevelopment project areas within 13 the City which project areas include: the Central City North 14 Project Area and the Southeast Industrial Park Redevelopment 15 Project Area to the extent that it will make such project areas 16 more desirable for industrial, commercial or residential 17 development which in turn will assist in the elimination of blight 18 within such areas; and 19 WHEREAS, in order to promote the City's health, safety and 20 welfare and ensure the orderly development of the Agency's various 21 project areas, it is important that the Blight Reducing Activities 22 be financed by the Agency; and 23 WHEREAS, it is appropriate at this time for the Mayor and 24 Common Council of the City (the "Council" ) to make certain 25 findings and determinations and take certain action with respect 26 to the financing of the Blight Reducing Activities. 27 NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 28 3 D++B:k •1BL1C2M.J=1 2 December 17. 1992 tti.r+ owft* 1 SECTION 1. The Recitals hereinabove are true and correct 2 and are incorporated herein by this reference. 3 SECTION 2. The Commission consents to the payment by the 4 Agency of the costs of the Blight Reducing Activities in order to 5 implement the redevelopment plans of the Agency for the reasons 6 set forth in the Recitals hereinabove. The Commission further 7 finds and determines that no other reasonable means of financing 8 the Blight Reducing Activities is presently available to the City 9 or the Agency and that the City and the Agency require the use of 10 revenues generated from the various project areas of the Agency in 11 order to fund the Blight Reducing Activities. 12 SECTION 3. The undertaking of the Blight Reducing 13 Activities will allow the Agency to promote redevelopment within 14 the project areas of the Agency by eliminating blighting 15 conditions in the downtown area which in turn will help stimulate 16 development of such project areas and their immediate 17 neighborhoods. 18 SECTION 4. The Secretary is hereby authorized and directed ig to cause this Resolution to be transmitted to the Mayor and Common 20 Council for appropriate action by that body. 21 SECTION 5. This Resolution shall take :effect upon the date 22 of its adoption. 23 24 25 26 27 28 DM:kfn[BLIGffn.YBS] 3 December 17. 1992 4� 1 RESOLUTION UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA AND 2 THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF THE AGENCY. 3 I HEREBY CERTIFY that the foregoing resolution was duly 4 adopted by the Community Development Commission of the City of San 5 Bernardino at a meeting thereof, held on the 6 day of 1992, by the following vote, to wit: 7 Comission Members: AYES NAYS ABSTAIN 8 ESTRADA 9 REILLY to HERNANDEZ 11 MAUDSLEY 12 MINOR 13 POPE-LUDLAM 14 MILLER 15 16 17 Secretary 18 foregoing resolution is hereby approved this day of 1992. 19 , 20 W. R. Holcomb, Chairman of the Community Development Commission 21 of the City of San Bernardino 22 Approved as to 23 form and legal content: 24 By 25 Agency Couzw6l 26 27 28 3 DM:kf•[KJCWn.RKS] 4 December 17. 1992 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A GRANT DEED CONVEYING CERTAIN PROPERTY LOCATED ON THE NORTH SIDE OF FOURTH STREET, 3 BETWEEN 'E' STREET AND 'D' STREET, TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO; AUTHORIZING THE EXECUTION OF THE PERTINENT ESCROW 4 INSTRUCTIONS AND AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT WITH SAID REDEVELOPMENT AGENCY AND AUTHORIZING PAYMENT THEREFOR. 5 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 8 SECTION 1. The Mayor and City Clerk of the City of San Bernardino are 9 authorized and directed to execute on behalf of the City, a Grant Deed 1Q conveying certain property located on the North side of Fourth Street between 11 "E" Street and "D" Street, commonly known as the Police Station, to the 12 Redevelopment Agency of the City of San Bernardino, a public body, corporate 13 and politic, a copy of which is attached hereto, marked Exhibit "A" and 14 incorporated herein by reference as fully as though set forth at length 15 herein. 16 SECTION 2. The Director of Public Works is authorized and directed to 17 execute all escrow instructions pertinent to this transaction. 18 19 SECTION 3. The Mayor of the City of San Bernardino is authorized and 20 directed to execute on behalf of the City, that certain Lease Agreement 21 relative to the above described property, between the City and the 22 Redevelopment Agency, a copy of which is attached hereto, marked Exhibit "B" 23 and incorporated herein by reference as fully as though set forth at length 24 herein. 25 SECTION 4. That the Mayor and Common Council of the City of San 26 Bernardino hereby authorize payment of rents as set out in said Lease 27 Agreement. 28 11-30-92 '1 RESOLUTION AUT' ')T"TNG EXECUTION OF GRANT DEED, Y 1 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the 2 Mayor and Common Council of the City of San Bernardino at a 3 meeting thereof, held on the day of 1992, by the 4 following vote, to wit: 5 Council Members: AYES NAYS ABSTAIN ABSENT 6 ESTRADA 7 REILLY 8 HERNANDEZ 9 MAUDSLEY 10 MINOR 11 POPE-LUDLAM 12 MILLER 13 14 City Clerk 15 The foregoing resolution is hereby approved this day of 16 1992. 17 W.R. Holcomb, Mayor 18 Approved as to City of San Bernardino 19 form and legal content: 20 JAMES F. PENMAN, City Attorney 21 22 By: 23 24 25 26 27 28 11-30-92 2 2 ^.ORDINO REQUESTED BY is. GO TITLS COXPANY AND WHEN RECORDED MAIL THIS DEED AND,UNLESS OTHER WISE SHOWN BELOW,MAIL TAX STATEMENTS TO: NAME ADDRESS 201 N. -E- STREET SAN BERNARDINO, CALIFORNIA 92418 APN rs4-151-29 Tick Order No. 9204508 -11 Escrow No.13216 -3S arrN w>Mrt rns uw[roR F&ooPMxs uaE 13216-35 GRANT DEED The undersigned declares that the documentary transfer tax is NONS and is ❑ computed on the full value of the interest or property conveyed,or is ❑ computed on the full value less the value of liens or encumbrances remaining thereon at the time of sale. The undersigned declares that the city/county transfer tax is g The land,tenements or realty is located in ❑ unincorporated area © City of SAN BERNARD IND FOR A VALUABLE CONSIDERATION,receipt of which is hereby acknowledged, CITY OF SAN BERNARDINO, A MUNICIPAL CORPORATION hereby GRAN'I(,) to THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A PUBLIC BODY, CORPORATE AND POLITIC the following described real property in the CITY OF SAN BERNARDINO County of SAN BERNARDINO ,State of California: THE SOUTHERLY 190 FEET OF LOTS 2 AND 3, BLOCK 29, CITY OF SAN BERNARDINO, AS PER PLAT Y RECORDED IN BOOK 7 OF MAPS, PAGE 1, RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PORTIONSt ' SEE ATTACHED DESCRIPTION • Dated July 24. 1992 CITY OF SAN BERNARDINO, A MUNICIPAL CORPORATION RY" W.R. HOLCIMB, Mayor RACHEL CLARK , City Clerk STATE OF CALIFORNIA ) SS COUNTY OF SAN BERNARDINO ) On before me, a Notary Public in and for said County and State, D ersona Y appeared and known to me to be the Mayor and City Clerk of the City of an Bern—ar7rno, the municipal pa corporation that executed the within instrument and acknowledged to me that they executed the same on behalf of the municipal corporation. WITNESS my hand and official seal. 1 Notary Public in an4 for said ounty and State to mow Escrow No. 13216 -35 Paq* 1 DESCRIPTION THE EASTERLY 127.00 FEET OF SAID LOT 2 AND THE WESTERLY 35 FEET OF SAID LOT 3. I MEN- LEASE AGRBEPEM POLICE HEADQUARTERS BUILDING PROPERTY: 466 West Fourth Street 1. PARTIES. This lease, dated for reference purposes only , is made by and between DEVELOPMERr DEPARIRT of the City of San Bernardino, if of the Redevelopment xPncy of the City of San Bernardino (herein called "Landlord") and CITY OF SAN BERNARDINO, a Mun cioal Corporation (herein called "Tenant"). 2. PREMISES. Landlord does hereby lease to Tenant and Tenant hereby leases from Landlord that certain space (herein called "Premises" known as 466 West Fourth Street) and delineated on Exhibit "A" attached hereto and incorporated by reference herein. Said Premises are located in the City of San Bernardino, County of San Bernardino, State of California. Said Lease is subject to the terms, covenants and conditions herein set forth and the Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of said terms, covenants and conditions by it to be kept and performed. 3. USE. Tenant shall use the Premises for a Police Headquarters Facility. 4. TERM. The Initial Lease Term shall be for months beginning and ending on June 30, 1993. There are Two (2) successive options to extend the Lease Term. Each such extension shall be for a term of one (1) year pursuant to the terms of the Addendum No.l to Lease. This Lease may be terminated upon thirty (30) days written notice by either party. 3. MINIMUM RENT. Tenant agrees to pay. to Landlord as Minimum Rent, without notice or demand, the monthly sum described in Exhibit "B" (Rent Schedule) commencing on and thereafter in advance on or before the first day of each and every successive calender month thereafter during the term hereof. Payments shall be paid to Landlord, without deduction or offset, in lawful money of the United States of America, at such place as Landlord may from time to time designate in writing. Tenant shall deposit with Landlord upon the execution hereof, Tenants first month's Minimum Rent in the amount of __ N/A Dollars. 6. USES PROHIBITED. Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which will in any way increase the existing rate of or affect any fire or other insurance upon the Building or any of its contents, or cause a cancellation of any insurance policy covering said Building or any part thereof or any of its contents. Tenant shall not do or permit anything to be done in or about the Premises which will, in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. - 1 - Tenant's Initials LandLord's Initials 7. COMPLIANCE WITH LAW. Tenant shall not use the Premises, or permit anything to be done in or about the Premises, which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all lava, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force and with the requirements of any board of fire underwriters or other similar bodies now or hereafter constituted relating to or affecting the condition, use or occupancy of the Premises, excluding structural changes not related to or affected by Tenant's improvements or acts. The ,judgement of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement., shall be conclusive of that fact as between the Landlord and Tenant. 8. ALTERATIONS AND ADDITIONS. Tenant shall not make or allow to be made any alterations, additions, or improvements to or of the Premises or any part thereof without the written consent of Landlord first had and obtained and any alterations, additions or improvements to or of said Premises, including but not limited to, wall covering, paneling and built-in cabinet work, but excepting movable furniture and trade fixtures, shall at once become a part of the realty and belong to the Landlord and shall be surrendered with the Premises. In the event Landlord consents to the making of any alterations, additions or improvements to the Premises by Tenant, the same shall be made by Tenant at Tenant's sole cost and expense. Upon the expiration or sooner termination of the term hereof, Tenant shall, upon written demand by Landlord, given at least thirty (30) days prior to the end of the term, at Tenant's sole cost and expense, forthwith and with all due diligence, remove any alterations, additions or improvements made by Tenant designated by Landlord to be removed, and Tenant shall, forthwith and with all due diligence, at its sole cost and expense, repair any damage to the Premises caused by such removal. Notwithstanding the above, no such alteration, addition or improvement shall require Landlord consent if the cost is $25,000 or less, as long as such alteration, addition, or improvement is not exterior or structural,-- 9. REPAIRS. A. By entry hereunder, Tenant shall be deemed to have accepted the Premises as being in good, sanitary order, condition and repair. Tenant shall at Tenant's sole cost and expense, keep the Premises and every part thereof in good condition and repair (except as hereinafter provided with respect to Landlord's obligations) including without limitation, the maintenance, replacement and repair of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and conduits. Tenant shall, upon the expiration or sooner termination of this lease hereof, surrender the Premises to the Landlord in good condition, broom clean, ordinary wear and tear and damage from causes by Tenant's use of the Premises shall be repaired at the sole cost and expense of the Tenant. All personal property, leasehold equipment and leasehold fixtures shall have been removed. B. In addition to the provisions of Article A. hereinabove, Tenant shall repair and maintain the structural portions of the Building, including the exterior walls and roof. Tenant waives the right to make repairs at Landlord's expense under any law, statute or ordinance now or hereafter in effect. .w.. - 2 - Tenant's Initials LandLord's Initials low 10. LIENS. Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by Tenant. 11. ASSIGNMENTS AND SUBLETTING. Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this lease or any interest therein, and shall not sublet the said Premises or any part thereof, or any right or privilege appurtenant thereto, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use said Premises, or any portion thereof, without the written consent of Landlord first had and obtained, which consent shall not be unreasonably withheld or delayed. A consent to one assignment, subletting, occupation or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this lease during the initial term of this lease. Consent to any such assignment or subletting without such consent shall be void, and shall at the option of the Landlord constitute a default under the terms of this Lease. Upon a Landlord approved assignment, Tenant responsibility under this Lease shall terminate one (1) year after such assignment, however, in the event Tenant subleases this Lease they shall remain responsible for the entire term of this Lease. In the event that Landlord shall consent to a sublease or assignment hereunder, Tenant shall pay Landlord reasonable fees, not to exceed One Hundred and no/100 Dollars ($100.00), incurred in connection with the processing of documents necessary to giving of such consent. Notwithstanding the above, the initial assignment or sublease shall be without charge. 12. HOLD HARMLESS. Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant's use of the Premises or from the conduct of its business or from any activity, work or other things done, permitted or suffered by the Tenant in or about the premises, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of the Tenant, or any officer, agent, employee, guest or invitee of Tenant, and from all costs, attorney's fees and liabilities incurred in or about the defense of any such claim or any action or proceeding brought against Landlord by reason of such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense. Tenant as a material part of the consideration to Landlord hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises, from any cause other than Landlord's negligence, and Tenant hereby waives all claims in respect thereof against Landlord. Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Building or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other place resulting from dampness or any other cause whatsoever, unless caused by or due to the negligence of Landlord, its agents, servants or employees. Landlord or its agents shall not be liable for interference with the light or air to the Premises. Tenant shall give prompt notice to Landlord in case of casualty or accidents in the Premises. - 3 - Tenant's Initials LandLord's Initials 13. SUBROGATION. As long as their respective insurers so permit, Landlord and Tenant hereby mutually waive their respective rights to recovery against each other for any loss insured by fire, extended coverage and other property insurance policies existing for the benefit of the respective parties. Each party shall apply to their insurers to obtain said waivers. Each party shall obtain any special endorsements, if required by their insurer to evidence compliance with the aforementioned waiver. 14. LIABILITY INSURANCE. Tenant shall, at Tenant's expense, obtain and keep in force during the term of this Lease a policy of comprehensive public liability insurance Insuring Landlord and Tenant against any liability arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be in the amount of not less than $1,000,000.00 for injury or death of one person in any one accident or occurrence and in the amount of not less than $500,000.00 for injury or death of more than one person in any one accident or occurrence. Such insurance shall further insure Landlord and Tenant against liability for property damage of at least $50,000.00. The limit of any such insurance shall not, however, limit the liability of the Tenant hereunder. Tenant may provide this insurance under a blanket policy, provided that said insurance shall have a Landlord's protective liability endorsement attached thereto. If Tenant shall fail to procure and maintain said insurance, Landlord may, but shall not be required to, procure and maintain same, but at the expense of Tenant. Tenant shall deliver to Landlord, prior to right of entry, copies of policies of liability insurance required herein or certificates evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to Landlord. No policy shall be cancelable or subject to reduction of coverage. All such policies shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry. Landlord acknowledges that Tenant is self insured and Landlord agrees to accept certification under such self insurance in satisfaction of this Section 14. 15. UTILITIES. Tenant shall pay for all metered utilities including gas, electric, HVAC, telephone service and all other-services and utilities supplied to the Premises, together with any taxes thereon. 16. PERSONAL PROPERTY TAXES. Tenant shall pay, or cause to be paid, before delinquency, any and all taxes levied or assessed and which become payable during the term hereof upon all Tenant's leasehold improvements, equipment, furniture, fixtures and any other personal property located in the Premises. In the event any or all of the Tenant's leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property. Tenant shall pay to Landlord its share of such taxes within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant's property. 17. HOLDING OVER. If Tenant remains in possession of the Premises or any part thereof after the expiration of the term hereof with the express written consent of Landlord, such occupancy shall be a tenancy from month to month at a rental in the amount of the last Monthly Minimum Rent, plus all other charges payable hereunder, and upon all the terms hereof applicable to a month to month tenancy. — 4 — Tenant's Initials LandLord's Initials 18. ENTRY BY LANDLORD. Landlord reserves, and shall at any and all times have the right to enter the Premises to inspect the same, to submit said Premises to prospective purchasers or tenants, to post notices of non-responsibility, to repair the Premises and any portion of the Building of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of rent, and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be blocked thereby, and further providing that the business of the Tenant shall not be interfered with unreasonably. Tenant hereby waives any claim for damages or for any injury or inconvenience to or interference with Tenant's business, any lose of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. 19. TENANT'S DEFAULT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant: a) the vacating or abandonment of the Premises by Tenant; b) the failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, wheresuch failure shall continue for a period of ten (10) days after written notice thereof by Landlord to Tenant. C) The failure by Tenant to observe or perform any of the covenante, conditions or provisions of this Lease to be observed or performed by Tenant, other than described in Article b) above, where such failure shall continue for a period of thirty (30) days after written notice hereof by Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall a not be deemed to be in default if Tenant commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion. d) The making by Tenant of any general assignment ors general arrangement for the benefit of creditors, or the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days) or the appointment of a trustee or a receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days, or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where such seizure is not discharged in thirty (30) days. 20. REMEDIES IN DEFAULT. In the event of any such default or breach by Tenant, Landlord may at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach: a) Terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately - S - Tenant's Initials LandLord's Initials surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default, including but not limited to, the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorney's fees, the worth at the time of award by the court having Jurisdiction thereof the amount by which the unpaid rent and other charges and Adjustments called for herein for the balance of the term after the time of such award exceeds the amount of such loss for the same period that Tenant proves could be reasonably avoided, and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease. Unpaid installments of rent or other sums shall bear interest from the date due at the commercial prime rate established from time to time by Bank of America. b) Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of landlord's rights and remedies under this Lease, including the right to recover the rent and any other charges and Adjustments as may become due hereunder, or: c) Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the State in which the Premises are located. 21. DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord fails to perform material obligations required by Landlord under this Lease within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have therefore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than said thirty (30) days are required to complete such material obligations, Landlord shall not be in default provided Landlord commences such material obligations within said thirty (30) day period and thereafter diligently prosecutes the same to completion. 22. RECONSTRUCTION. In the event the Premises are damaged by fire or any other cause, Tenant agrees to forthwith repair same, and this Lease shall remain in full force and effect. Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises and Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacements of any leasehold improvements, fixtures or other personal property of Tenant. 23. EMINENT DOMAIN. If more than twenty-five percent (25X) of the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, either party shall have the right, at its option, within sixty (60) days after said taking to terminate this Lease upon thirty (30) days written notice. If either less than or more than twenty-five percent (25X) of the Premises are taken (and neither party elects to terminate as herein provided), the Minimum Rent thereafter to be paid shall be equitably reduced. If any part of the Office Building other than the Premises may be so taken or appropriated, Landlord shall within sixty (60) days of said taking have the right at its option to terminate this Lease upon written notice to Tenant. In the event of any taking or appropriation whatsoever, Landlord shall be entitled to any and all awards and/or settlements which may be given and Tenant shall - 6 - Tenant's Initials LandLord's Initials have no claim against Landlord for the value of any unexpired term of this Lease. Tenant may however, pursue Tenant's right, separate from Landlord, against the appropriate public authority to recover any settlement for which Tenant may be entitled. 24. TENANT'S STATEMENT. Tenant shall, at any time and from time to time upon not less than ten (10) days prior written notice from Landlord execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified by mutual agreement of Tenant and Landlord in writing stating the nature of such modification and certifying that this Lease as so modified is in full force and effect), and the date to which the rental and other charges are paid in advance, if any, and (b) acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of the Landlord hereunder, or specifying such defaults if any are claimed, and (c) setting forth the date of commencement of rents and expiration of the term hereof. Any such statement may be relied upon by any prospective purchaser encumbrancer of all or any portion of the real property of which the Premises are a part. 25. NON-DISCRIMINATION. The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and acepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lesse himself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lesses, sublessees, subtenants, or vendees in the premises herein leased. 26. GENERAL PROVISIONS. (i) Plats and Riders. Clauses, plats, riders and addendums, if any, affixed to this Lease are a part hereof. Waiver. The waiver by Landlord of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of the Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding default at the time of the acceptance of such rent. (iii) Joint Obligation. If there be more than one Tenant, the obligations hereunder imposed shall be joint and several. (iv) Marginal Headings. The marginal headings and article titles to the articles of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. '" - 7 - Tenant's Initials Landlord's Initials (v) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor. (vi) Successors and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. (vii) Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum hereof may be recorded at the request of Landlord. (viii) Quiet Possession. Upon Tenant paying the rent reserved hereunder and observing and performing all of the covenants conditions and provisions on Tenant's part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this lease. (ix) Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent and other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed on Landlord by terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or any sum due from Tenant shall not be received by Landlord or Landlord's designee within ten (10) days after such amount shall be due, then, without any requirement for notice to Tenant, Tenant shall pay to Landlord a late charge equal to five percent (5%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for three (3) consecutive installments of rent, then rent shall automatically become due and payable quarterly in advance, rather than monthly, notwithstanding any other provision of the lease to the contrary. (x) Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto. (zi) Inability to Perform. This Lease and the obligations of the Tenant hereunder shall not be affected or impaired because the Landlord is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God or any other cause beyond the reasonable control of Landlord. - 8 - Tenant's Initials LandLord's Initials (xii) Partial Invalidity. Any provision of this Lease which shall prove to be Invalids void, or illegal shall in no way affect, impair or invalidate any other provision hereof and such other provision shall remain in full force and effect. (xiii) Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. (xiv) Choice of Law. This Lease shall be governed by the laws of the State in which the Premises are located. (xv) Attorney's Fees. In the event of any action or proceeding brought by either party against the other under this Lease, the prevailing party shall be entitled to recover for the fees of its attorneys in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable as attorney's fees. In addition, should it be necessary for Landlord or Tenant to employ legal counsel to enforce any of the provisions herein contained, Landlord and Tenant, hereby agree to pay all attorney's fees and court costs reasonably incurred against the other for such enforcement. (xvi) Sale of the Premises by Landlord. In the event of any sale of the Premises by Landlord, Landlord shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring after the consummation of such sale; and the purchaser, at such sale or any subsequent sale of the premises shall be deemed, without any further agreement between the parties or their successor in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of the Landlord under this Lease. (xvii) Subordination, Attornment. Upon request of the Landlord, Tenant will in writing subordinate its rights hereunder to the lien of any mortgage,. or deed of trust, to any bank, insurance company or other lending institution, now or hereafter in force against the Premises, and to all advances made or hereafter to be made upon the security thereof. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by the Landlord covering the Premises, the Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Landlord under this Lease. The provisions of the Article to the contrary notwithstanding, and so long as Tenant is not in default hereunder, this Lease shall remain in full force and effect for the full term hereof. (xviii) Notices. All notices and demands which may or are to be required or permitted to be given by either party on the other hereunder, shall be in - 9 - Tenant's Initials LandLord's Initials ...JL writing. All notices and demands by the Landlord to the Tenant shall be sent by United States Mail, postage prepaid, addressed to the Tenant at the Premises, and to the address herein below, or to such other place as Tenant may from time to time designate in a notice to Landlord. All notices and demands by the Tenant to the Landlord shall be sent by United State Mail, Postage prepaid, addressed to the Landlord at the address set forth herein, and to such other person or place as the Landlord may from time to time designate in a notice to the Tenant. TO LANDLORD AT: CITY OF SAN BERNARDINO LANDLORD: ECONOMIC DEVELOPMENT AGENCY 3RD FLOOR By: 201 NORTH "E" STREET Kenneth J. Henderson SAN BERNARDINO, CA 92401 B.zecutive Director PHONE:. (714) 384-5081 Development Department TO TENANT AT: REAL PROPERTY SECTION TENANT: CITY OF SAN BERNARDINO 300 NORTH "D" STREET By: SAN BERNARDINO, CA 92405 W.Y. Holcomb PHONE: (714) 384-5602 Mayor APPROVED AS TO FORM Attest: AND LEGAL CONTENT: City Clerk , 'Agency Counsel APPROVED AS TO FORM AND LEGAL CONTENT: James F. Penman City Attorney 58198 - 10 - Tenant's Initials LandLord's Initials WMIBIT "A" 466 WEST FOURTH STREET SAN BERNARDINO, CALIFORNIA L E G A L D E S C R I P T I O N ALL THAT PROPERTY SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN BERNARDINO DESCRIBED AS FOLLOWS: THE SOUTHERLY 190 FEET OF LOTS 2 AND 3, BLOCK 299 CITY OF SAN BERNARDINO, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, PAGE 10 RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PORTIONS: THE EASTERLY 127.00 FEET OF SAID LOT 2 AND THE WESTERLY 35 FEET OF SAID LOT 3. Tenant's Initials LandLord's Initials EXHIBIT "B" RENT SCHEDULE 1. INITIAL LEASE TERM: $1 per month. 2. OPTION PERIOD ONE: $17,992 per month or such other amount as may be negotiated and agreed to by the parties hereto. 3. OPTION PERIOD TWO: Prior year ending rent plus 3%. Tenant's Initials LandLord's Initials IIIi 1�0 1To jJWX OPTION TO RENEW. Landlord hereby grants to Tenant two (2) options ("Option") to extend the term of the Lease provided Tenant is not in material default under this Lease and all applicable notices and cure periods have not expired, for one (1) period of twelve (12) months ("Option Period"). Landlord hereby grants to Tenant such Option on all the same terms and conditions contained in the Lease except for Minimum Rent during the Option Period as outlined below. Tenant shall exercise the Option by and only by delivering to Landlord, not less than thirty (30) days prior to the expiration date of the Term of the Lease, Tenant's written notice of its exercise of the Option (the "Option Notice"). In the event Tenant exercises an Option as provided for in this Addendum, Tenant covenants and agrees to pay to Landlord rent, in monthly installments, in the amounts specified in Exhibit "B" Rent Schedule. If Tenant fails to timely comply with any of the provisions of this paragraph, Tenant's right to exercise the Option shall be extinguished and the Lease shall automatically terminate as of the expiration date of the current Term of the Lease, without any extension, and without any liability to Landlord. Any attempt to assign or transfer any right or interest created by this paragraph separate and apart from any assignment or transfer of this Lease shall be void from its inception. Tenant shall have no other right to extend the Term beyond the Option Period as outlined herein. Unless agreed to in writing signed by Landlord and Tenant, any extension of the Term, whether created by an amendment to this Lease or by a holdover of the Premises by Tenant, or otherwise, shall be deemed a part of of the Option Period -ermitted by this paragraph. Tenant's Initials LandLord's Initials ADDEMli NO 2 To LHASE • DITIONAL ASSESSED TARES. Lessee shall pay, prior to delinquency, all taxes, including possessory interest and "Real Property Taxes" and if any, properly due against and levied upon tenant improvements, trade fixtures, furnishing, equipment or other personal property of Lessee contained in the Premises or elsewhere. When possible, Lessee shall cause said trade fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. DEFINITION OF "REAL PROPERTY TAR". As used herein, the term "real property tax" shall include any form of real estate tax or assessment, general, special, ordinary or possessory# extraordinary,and any license fee, commercial rental tax, improvement bond or bonds, levy or tax (other than inheritance, personal income or estate taxes), imposed on the Premises by any authority having the direct or indirect power to tax, including any city, state or federal government, or any school, agricultural, sanitary, fire, street, drainage or other improvement district thereof, as against any legal or equitable interest of Lessor in the Premises or in the real property of which the Premises are a part, as against Lessor's right to rent or other income therefrom, and as against Lessor's business of leasing the Premises. The term "real property tax", or (ii) the nature of which was hereinabove included within the definition of "real property tax", or (iii) which is imposed for a service or right not charged prior to the execution date hereof, or (iv) which is imposed as a result of a transfer, either partial of total, of Lessor's interest in the Premises or which is added to a tax or charge hereinabove included within the definition of real property tax by reason of such transfer, or (v) which is imposed by reason of this transaction, any modifications or changes hereto or any transfers hereof. Tenant's Initials LandLord's Initials I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE 3 BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA AND THE 4 CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF THE AGENCY. 5 WHEREAS, the City of San Bernardino, (the "City" ), is a 6 municipal corporation and a charter city duly created and existing 7 pursuant to the Constitution of the laws of the State of 8 California; and 9 WHEREAS, the Community Development Commission of the City of 10 San Bernardino (the "Commission" ) on behalf of the Redevelopment 11 Agency of the City of San Bernardino (the "Agency" ), is a 12 redevelopment agency, a public body, corporate and politic of the 13 State of California, organized and existing pursuant to the 14 Community Redevelopment Law (Part 1 of Division 24 ) commencing 15 with Section 33000 of the Health and Safety Code of the State of 16 California (the "Act" ) ; and 17 WHEREAS, the Agency may, in furtherance of its redevelopment 18 purposes, undertake redevelopment projects either within or 19 without redevelopment project areas of the Agency to the extent 20 that it determines that such projects are of benefit to the 21 projept areas of the Agency; and 22 ' WHEREAS, the Agency may undertake various blight reducing 23 redevelopment activities (the "Blight Reducing Activities" ) 24 including but not limited to the acquisition of the old police 25 facility for land assembly which is located within the Central 26 City North Redevelopment Project Area but will benefit the 27 Southeast Industrial Park Redevelopment Project Area if the Agency 28 determines: ( 1) that such Blight Reducing Activities are of DAB:Id.(BLICSrsARS) December 17. 1992 I benefit to the redevelopment project areas of the Agency or the 2 immediate neighborhoods in which the projects are and (2 ) that no 3 other reasonable means of financing such Blight Reducing 4 Activities is available to the community; and 5 WHEREAS, it is in the interests of the City and the Agency 6 that the Agency causes the undertaking of the Blight Reducing 7 Activities in order to reduce blighting conditions from the 8 downtown area of the City which area has a direct effect on the 9 viability, growth and development of the Southeast Industrial Park 10 Redevelopment Project Area of the Agency; and 11 WHEREAS, the undertaking of the Blight Reducing Activities 12 will promote the development of redevelopment project areas within 13 the City which project areas include: the Central City North 14 Project Area and the Southeast Industrial Park Redevelopment 15 Project Area to the extent that it will make such project areas 16 more desirable for industrial, commercial or residential 17 development which in turn will assist in the elimination of blight 18 within such areas; and 19 WHEREAS, in order to promote the City's health, safety and 20 welfare and ensure the orderly development of the Agency's various 21 project areas, it is important that the Blight Reducing Activities 22 be financed by the Agency; and 23 WHEREAS, it is appropriate at this time for the Mayor and 24 Common Council of the City (the "Council" ) to make certain 25 findings and determinations and take certain action with respect 26 to the financing of the Blight Reducing Activities. 27 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 28 DAB:k5[8LIGKT2_WM] 2 December 17. 1992 j SECTION 1. The Recitals hereinabove are true and correct 2 and are incorporated herein by this reference. 3 SECTION 2. The Council consents to the payment by the 4 Agency of the costs of the Blight Reducing Activities in order to 5 implement the redevelopment plans of the Agency for the reasons 6 set forth in the Recitals hereinabove. The Council further finds 7 and determines that no other reasonable means of financing the 8 Blight Reducing Activities is presently available to the City or 9 the Agency and that the City and the Agency require the use of 10 revenues generated from the various project areas of the Agency in 11 order to fund the Blight Reducing Activities. 12 SECTION 3. The undertaking of the Blight Reducing 13 Activities will allow the Agency to promote redevelopment within 14 the project areas of the Agency by eliminating blighting 15 conditions in the downtown area which in turn will help stimulate 16 development of such project areas and their immediate 17 neighborhoods. 18 SECTION 4. The City Clerk is hereby authorized and directed 19 to cause this Resolution to be transmitted to the Agency for 20 appropriate action by that body. 21 SECTION 5. This Resolution shall take effect upon the date 22 of its adoption. 23 24 25 26 27 28 DM:k5[BUCW2.R=J 3 December 17. 1"2 1 RESOLUTION UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA AND 2 THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF THE AGENCY. 3 4 I HEREBY CERTIFY that the foregoing resolution was duly 5 adopted by the Mayor and Common Council of the City of San 6 Bernardino at a meeting thereof, held on the 7 day of 1992, by the following vote, to wit: 8 Council Members: AYES NAYS ABSTAIN ESTRADA 9 REILLY 10 HERNANDEZ 11 MAUDSLEY 12 MINOR 13 POPE-LUDLAM 14 MILLER 15 16 17 City Clerk 18 The foregoing resolution is hereby approved this day of 1992. 19 20 W. R. Holcomb, Mayor City of San Bernardino 21 Approved as to 22 form and legal content: 23 JAMES F. PENMAN, City Attorney 24 25 By 26 27 28 D�B:kli[BLIGBl2.gBS] 4 December 17. 1992 3