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06- Community Development
D E V _ 0 P M E N T D E P A R T M E 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 28, 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. On January 11, 1993, the Community Development Commission continued the matter until February 1, 1993. ------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission continue the matter pertaining to the Police Headquarters Acquisition to March 1, 1993. — /Aw" Administrator KENNETH J. HEND SON Executive Director ------------------------------------------------------------------------------- Contact Person(s): Kenneth Henderson/John Hoeger Phone: 5081 Project Area(s): Central City North/Southeast Industrial Park Ward: lst & 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:2492B COMMISSION MEETING AGENDA Meeting Date: 02/01/19993,, Agenda Item Number: (0 D E V E L O P M E N T D E P A R T N I X 1 j OF THE CITY OF SAP BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTI01N 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 iiiiiii 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 MOTION APPRBvFn -------------------------------------------- ------------------- KJH:lmp:2786J ON MEETING AGENDA eeting Date: 01/11/1993 Agenda Item Number: _(a _ DEVE1. OPF1ENT DE PARTMENT OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Subject: POLICE HEADQUARTERS Executive Director ACQUISITION - 466 WEST ' Date: December 16, 1992 FOURTH STREET ---------------------------------------------------------------------- Synot�si.s_ of_I?revious Com�irlsion/Council/Committee Action�3ZI 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. --------------------------------------------------------- Recommended Motion s� l,Comrnunity Development Commission) MOTIOR 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 -� KENNET J. HBND RSON Executive Direc --------------------------------------------- . ------------- Contact Person(s): _ Kenneth Henderson/John Hoeger Phone: 508] Project Area(s): Central_Ci yJ1rth/Southeast Industrial Park Ward: 1st_& 3rd Supporting Data Attached: Staff report maa resolutions Grant deeds lease. FU11DING REQUIREMENTS: Amount: $2,320.000 Source: SEIP Bond Proceeds Budget Authority: _Included in the form motios. ----------------------- - � _ _ - n '-DM ss-iOnLCOLIIlcil- ]Rotes• 1 1 >>1�1( rj'� .� ----------------------------------------------------------- - --- ---------- ka) KJH:JBH:d1e:6013R CONMIS3Ig " � T NG AGENDA Meeting bgie: 12/21/19,92` Agenda Item Number: t.,(/ FI:QUEST FOI: COMMISS ION1COUtICIL ACTIOIl Felice Headq>>arters Acquisition P�,cember 16, 1992 Page Number -2- Rrcommrnded_T1otion.(s): MOTION B: Authorize a ment for P Y the acquisition from $2,320,000 (plts escrow and purchase costs) of bond proceeds from the Southeast Industrial Park project area. MO'FI0n C: Authorize 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 FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTATN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA AND THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREAS OF THE AGENCY. (Mayor and Common Council) NOTION 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, BETWErN 'E' STREET ATID 'D' STREET, TO THE REDEVELOPMENT AGENCY OI' THE CITY OF SAN BERNARDINO; AUTHORIZING THE EXECUTION OF THE PERTINENT ESCROW INSTRUCTIONS AND AUTHORIZING THE EXECUTIONI OF A LEASE AGREEMENT WITH SAID REDEVELOPMENT AGENCY AND AUTHORIZING PAYMENT THEREFOR. I MOTION F: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIII BLIGHT REDUCIIG ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA AND THE CENTRAL CITY NOP.TII REDEVELOPMENT PROJECT AREA OF THE AGENCY. ----------------------- _ __ ----------------------------------- - F'fH:JBH:dle:6013R COMMISSION (MEETING AGENDA Meeting Date: 12/21/1992 Agenda Item Number: _ 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:60138 COMMISSION MEETING AGENDA Meeting Date: 12/21/1992 Agenda Item Number: 1p- 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 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: 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. YVV l KEM J. HENDE SON, Executive Director Development Depa tment ---------------------------------------------------------------------------- KJH:JBH:dle:6013R COMMISSION MEETING AGENDA Meeting Date: 12/21/1992 Agenda Item Number: Pr� �F SdN B ,,toe• �11 y rl rr� M J M r ST, Alf 4ss' 4r.a I I I I I � I I t..• I •� i t I I i I r I M f • 4 I 3 I 2 / I i br I t: :s• � 15 '....L IlT.11• � 2 f I SO y x a F LD I 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 nM:kr.1srscerr3.nssl December 17. 1992 ( 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 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 COMMUNITY DEVELOPMENT 28 COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: w+8:m[8rsc$r3.WM1 2 December 17. 1992 (0 I 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 19 to cause this Resolution to be transmitted to the Mayor and Common 20 Council for appropriate action by that body. 21 SECTION S. This Resolution shall take effect upon the date 22 of its adoption. t 23 24 25 26 27 28 60 nns: 1sLtwr3.wml 3 DOCOMber 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 Community Development Commission 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 COmission Members: AYES NAYS ABSTAIN ESTRADA 9 REILLY 10 HERNANDEZ 11 MAUDSLEY 12 MINOR 13 POPE-LUDLAM 14 MILLER 15 16 17i secretary 18 The foregoing resolution is hereby approved this of 1992. day 19 20 W. R. Holcomb, Chairman of the Community Development Commission 21 of the City of San Bernardino 22 r Approved as to 23 form and legal content: 24 Y. Agency Agency Cou 1 26 27 28 D+�s_�s.(erscatr3.ssSI 4 December 17. 1992 L " 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION F 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 5 REDEVELOPMENT AGENCY AND AUTHORIZING PAYMENT THEREFOR. 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF TILE 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 10 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 17 SECTION 2. The Director of Public Works is authorized and directed to 18 execute all escrow instructions pertinent to this transaction. 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 RESOLUTION Aur 'IZING EXECUTION OF GRANT DEED, "C. 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 18 M.R. Holcomb, Mayor Approved as to City of San Bernardino 19 form and legal content: 20 JA.US F. PENMAN, 21 City Attorney 22 By: 23 24 25 26 27 28 11-30-92 2 IEODRbt 40 NEOUFSTED WY • alCAGO TITLE COXPANY AND NMEN IEOOROM MAIL rr%S DEED AND,LOESS OTHM WISE SHOVM/08.ONI,MAIL TAX STATEMENTS TO NAME ADORES& 201 N. 'E• STREET BAN BERNARDINO, CALIFORNIA 92418 AvN ks�-i31•t9 T'uk ChdeT No. 9201508 —11 Esttow No.13216 —35 13216-35 GRANT DEED eom man r..uNE.owPecomou.UK The undersigned declarts that the documentary transfer tax is NONE and is ❑ computed oo the full value of the interest or property conveyed,or is ❑ computed on the full value leas the value of lien or encumbrances remaining thereon at the time of sak. The uodersigncd declues that the city/county transfer tax is S The land,tenements or realty is located in ❑ unincorporated area © City of SAN BERNARDINO FOR A VALUABLE CONSIDERATION,receipt of which is hereby acknowledged, CITY OF SAN BERNARDINO, A MUNICIPAL CORPORATION hereby cA0 THE REDVL )W4 AGENCY OF THE CITY OF SAN BERNARDINO, A PUBLIC POLITIC BODY, CORPORATE AND the following descnbed real property in the CITY OF SAN BERNARDINO C,0UntV of SAN BERNARDINO ,State of California: THE SOUTHERLY 190 FEET OF LOTS 2 AND 3, BLOCX 29, CITY OF SAN BERNARDINO, AS PER PLAT t RECORDED IN SOOX 7 OF MAPS, PAGE 1, RECORDS Of SAID COUNTY. EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PORTIONSr SEE ATTACHED DESCRIPTION ' Dated July 26, 1992 CITY OF SAN BERNARDINO, A MUNICIPAL CORPORATION BY:� W.R. HOLC)MB, Mayor By- RACHEL CLARK , City Clerk STATE OF CALIFORNIA ) i COUNTY OF SAA BERNARDINO SS On , before tee. a Notary Public in and for said County and State. persona y appeared and , nown to me to be the Mayor and City Clerk of t e ty Of an ernar no. the municipal 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 seat. 1 Notary Public n an or Said ounty and State 111 Escrow Mo. 1._.6 -ES Page 1 DESCRIPTION THE EASTERLY 127.00 FEET OF SAID LOT 2 AND THE WESTERLY 35 FEET OF SAID LOT 3. I f LEASE AGREzMn POLICE BEADQUARTERS BUILDING PROPERTY; 466 West Fourth Street 1. PARTIES. This lease, dated for reference between purposes only , ie made b Itedevelo�e„* Y and encv of th rte of g.r R..,, rdino (herein called "Landlord") and (herein called "Tenant"). 2• PREMISES. Landlord does hereby lease to Tenant and Tenant hereby leases from that certain space (herein called "Premises" known as 466 West Fourth Street) Landlord delineated on Exhibit "A" attached hereto and incorporated by reference herein.and Premises are located in the City of San B r.±...ti..- h Said State of California. , County of San Bern—"r—dino, Said Lease is subject to the terms, covenants and conditions herein set for th and Tenant covenants as a material part of the consideration for this Lease to keep the Perform each and all of said terms, covenants and conditions by it to be kept andd performed. 3• USE. Tenant shall use the Premises for a eadanartera Fa {�t.� A. TERM. The Initial Lease Term shall be for and ending on June 30, 1993. There are months beginning Lease Term. Each such extension shall be f�2Le successive ofsone (1) yea to extend the terms of the Addendum NO.1 to Lease. This Lease may be terminated upon thirty the days written notice by either party. Y (30) s• MINIMUM RENT. Tenant agrees to pay. to Landlord as Minimum Rent, without notice o r 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 eve calender month thereafter during the term hereof. Payments =Y successive without deduction or offset, in lawful money of the United States of America Place as Landlord may from time to time designate aid to Landlord, with Landlord upon the execution hereof T 8nate in writs , at such writing Tenant shall deposit amount of FAA . enante first month's Minimum Rent in the —__ Dollars. 6• USES PROHIBITED. Tenant shall not do or Premises nor bring or keep anything permit anything to be done in or about the exists g therein which will in any way increase the n8 rate of or affect any fire or other insurance upon the Building or contents, or cause a cancellation of any insurance any part thereof or policy covers �' of its or any of its contents. Tenant shall not do or permit Building to rights of other tenants or occupants of the Building obstruct or interferae with the be done in or about the Premises which will, in allow the Premises to be used for ng or Injure annoy purpose, nor shall Tenant cause many improper, Immoral, unlawful orr objectionablee or Premises. Tenant shall not commit or allow to be any in, on or about the Premises. any waste in or upon the Tenant's Initials _ Landlord's Initials �_ 7. COMPLIANCE WITH LAW. Tenant shall not use the Premises, or permit anything to be dons In or about the Premises, which will in any way conflict with aordinance or governmental rule or regulation now in force or whichlway hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and requirements now in force or which may here afternbelIn force rand lwith ntherrequirements 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 additions, or improvements to or of the Premises or without alterations, written consent of Landlord first had and obtained and thereof without the improvements to or of said Premises, including but not l�itedeto,iwall coverings or 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 sooner termination of the term hereof, Tenant shall, upon written tdemandibytLandlord,or 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 or improvements made by Tenant designated by Landlord to beeremovedg and sTenanttshall, forthwith and with all due diligence, at its sole cost and to the Premises caused ��e, repair any damage alteration, addition or Improvement vshallRrequiretLanndlordhconsent�ifotheccost 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 good condition and repair (except as hereinafter provided withrrespectotoin Landlord's obligations) including without limitation, the maintenance, replacement and repair of any storefront, doors, window casements plumbing, pipes, electrical wiring glazing, expiration or sooner termination nofathiso lease shereoffs surrenderuthe 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. n• 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 valves the right to make repairs at Landlord's expense under any law, statute or ordinance now or hereafter in effect. 2 - Tenant's Initials Landlord's Initials �_ • C 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. ASSIGMUNTS AND SUMMING. Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this lease or any Interest therein, and scull not sublet the said Premises or e right or privilege appurtenant thereto or allow person (the Y part thereof, es any agents, servants and invitees of Tenant excepted) to occupy orusesaid 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 uyy 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 to giving of such consent. Notwithstanding the above,c the iInitialoatsssigns necessary sublease shall be without charge. ment or 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, Permit Tenant in or about the premises, and shall further indemnify andthold harmlessd by the Landlord against and from any and all. claims arising from performance of any obligation on Tens.nts breach pr default in the Lease, or arising from part to be performed under the terms of this employee � act or negligence of the Tenant, or any officer, agent, 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 proceeding brought against Landlord by reason of such claim, Tenant�Upontnotice from Landlord shall defend the same at Tenant's expense. Tenant as a material part of 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 property resulting from fire � lose or damage to persons or water or rain which may fire, falling plaster, steam, gas, electricity, 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 Lanaord's Initials 3 13. SUBROGATION. As long as their respective insurers so permit, Landlord and Tenant hereby Mutually valve their respective rights to recovery against each other for any loss insured by fire, extended coverage and other property insurance policies existin for the benefit of the respective parties. Each party shall apply to their insurers to obtain said vaivers. Each party shall obtain any special endorsements, if require by their insurer to evidence compliance vith the aforementioned vaiver. 14. LIABILITY INSURANCE. Tenant shall, at Tenant's during the terra of this Lease a expense, obtain and keep in force Insuring Landlord and Tenant against cy of comprehensive public liability insurance occupancy or maintenance of the Premises and ball tareas sa purtenanttthereto. Suchuae, Insurance shall be in the amount of not less than $1,000,000.00 for injury or death o 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 occurrence. Such insurance shall further insure Landlord and Tenant cagainstoliabilit for property damage of at least $50000.00. The limit of a not, however, limit the liability of the Tenant hereunder. Tenant ma prove shall i Insurance under a blanket policy, provided that said insurance shall have a Landlord, 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 telephone service and all other-services and utilities supplied toatheePremises,HVAC� together with any taxes thereon. 16. PERSONAL PROPERTY TAXES. Tenant shall pay, or cause any and all taxes levied or assessed and which becometo be paid, before delinquency, 'Upon all Tenant's leasehold improvements, equipment, furnituredufixtures and hereof personal property located in the Premises. In the event ' ' other leasehold improvements, equipment, furniture, fixtures and others a so the Tenant's shall be assessed and taxed with the real property. personal property share of such taxes within ten (10) days after delivery totTenant by Landlordlofdaits 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 �_ M 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 valves any claim for damages or for any injury or inconvenience to or interference with Tenant's business, any loss 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, vheresuch 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 covenants, 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 Awftl than thirty (30) days are reasonably required for its cure, then Tenant shall 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 or '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, vhere 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 IA 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 In which case this Lease shall terminate and Tenant shall Immediatelymeans, — s — Tenant's Initials LandLord's Initials surrender possession of the Premises to Landlord. In such avant 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 reletti necessary renovation and alteration of the Premises, reasonablenattorney'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 however, that if the nature of Landlord's obligation issuchuthatb more tthan saidided, 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 Tenant agrees to forthwith repair same, and this Lease shall remain any other 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 ea eh g Improvements, fixtures or other personal property leasehold property of Tenant. 23. EKINENT DOMAIN. If more than twent five percent or appropriated by any public or quasi-publicauthority underethe power ofaeminentaken 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 ' Premises may be so taken or a � part of the Office Building other than the said taking have the right atpItspOptionotoaterminateathisi Lease s pon writtenynotice of 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 class against Landlord for the value of Tenant may however, pursue Tenant's right, separate from Landlord, against these. appropriate public authority to recover any settlement for which Tenant may be 24• TENANT'S STATEMENT. Tenant shall, at any time and from time to time upon not leas 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 default& on the specifying such defaults if a part se the Landlord hereunder, or commencement of rents and expirationcofi the�term hereof setting forth the date of relied upon by any prospective purchaser encumbrancer of all statement may be real property of which the Premises are a part any portion of the . 25. NON-DISCRIMIRATIOR. The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claims through him or her, and this lease is made and acepted upon and subject togtheder or un 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 leggings ag, subleasing, transferring, use, occupancy, tenure, or ea lease himself, or enjoyment of the premises herein leased nor shall the any person claiming under or through him or her, establish or t permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants leases, SIONeaBees, subtenants, or vendees is the premises herein leased. 26. 68REYAL PROVISIONS. _ (i) Plate and Riders. Clauses, plats, riders and addendum& it this Lease are a part hereof. may, affixed to Waiver. The waiver by Landlord of contained shall not be deemed to bea waiver of such terms condition herein condition or subsequent such Lem, covenant or condition herein contained. bThe subsequentaacceptanceooferent hereunder or Landlord shall not be deemed to be a waiver of under by Tenant of any term, covenant or condition of that LeaseeQo her thantthe failure of the Tenant to pay the particular rental &o accepted, regardless of Landlord's knowledge of such preceding default Of such rent. at the time of the acceptance g Joint Obligation. If there be more than one Tenant, the obligations hereunder imposed shall be Joint and several. (iv) Marginal Readings. The marginal heads Of this Lease are not a part of this Lease anddashall havelno effect upon articles construction or interpretation of any part hereof. - 7 - Tenant's Initials LandLord's Initials �_ (v) Time. Tice is of the essence of provisions this Lease and each and all of its 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 provisio Tenant's part to be observed and performed hereunder, Tenant shall have ns Possession of the Premises for the entire term hereof, subject to all the Provisions of this lease. (iz) Late Charges. Tenant hereby acknowledges that late Landlord of rent and other sums due hereunder vill causeeLandlord otincur costs not contemplated by this Lease, the exact amount of which vill be extremely difficult to ascertain. to, processing and accounting charg Such costs include, but are not limited es, 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 be received by Landlord or Landlord's designee vithineten(10) days shall such amount shall be due, then, Without Tenant shall pay to Landlord a late charge equal for notice to Teaaat, overdue amount. The 8 goal to five percent (SX) of such fair and reasonable estimate ofrthe costs Landlord illeIncurgb Treason of a late payment by Tenant. Acceptance of such late charges Landlord son ll In no event constitute a vaiver of Tenant's default vithg respect o such soverdue amount, nor prevent Landlord from exercising am of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, vhether or not collected, for three (3) consecutive installments of rents. then rent shall automatically become due and payable advance, rather than monthly, notvithstandi quarterly is lease to the contrary. �3' other provision of the (z) Prior Agreements. This Lease contains all of the agreements of the parties hereto vith 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 vriti ng signed by the their respective successors is Interest. This Lease shall anot ebeheffective or binding on any party until fully executed by both parties hereto. (XI) Inability to Perform. This Lease and the obli atio shall not be affected or impaired because the Landlordoiatunableato fulfiller any of its obligations hereunder or is delayed in doing or delay is caused by reason of strike, labor trouble , actsiofsCod or any other cause beyond the reasonable control of Landlord. — a — Tenant's Initials LandLord's Initials (xii) Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no vay affect, impair or invalidate any other provision hereof and such other provision shall remain in full force and effect. (xii') Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative vith all other remedies at lav or In equity. (ziv) Choice of Law This Leas which the Premises are locatedll be governed by the lava of the State in (Xv) Attorney's lees. In the event of any action or proceeding brought party against the other under this Lease prevailing g by either entitled to recover for the fees of its attorneys vInsuchp action horl be proceeding, including costs of appeal if may adjudge reasonable as attorney's fees. ' in such amount as the court necessary for Landlord or Tenant to employ legal dcounsel too enforce bany 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 by Landlord, Landlord shall be and is hereby entirelyy freed and the 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 betveen the parties or their successor in interest or betveen 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. (rvii) Subordination, Attornment. Upon request of the Landlord ? writing subordinate its rights hereunder to the lien of � enact will r Of trust, to any bank, insurance company lending institution,mortgage, or deed hereafter in force against the Premises, andotoealldvances madeor aov 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 recognise such purchaser as the Landlord under this Lease. The Tenantoiss not sin of e Aricle to defaulttherevnder�,ethistLeasenshallhatandi ng, and so long as effect for the full term hereof. remain is full force and (rviii) 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 �! _r • �b 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: CTTv OF SAN BERNARDINO LANDLORD: BCONOMIC _DEVELOPMgRT AGENCY 3RD FLOOR By: 201 NORTH "B" STREET Kenneth J. Henderson SAN BBRNARDINO, CA 92401 Kxecutive Director PHO1�E•=(714) 84-5081 Development Department TO TENANT AT; REAL_ pROPERTY SECTION CITY OF SAN BERNARDINO _ TENANT: 300 NORTH "D" STRM By; SAN BERNARDINO. CA 92405 W.Y. Holcomb PHONE: (714) a84-5602 Mayor APPROVED AS TO FORM AND LEGAL COATKNT; Attest: City Clerk �Ilgency Counsel APPROVED AS TO FORM AND LEGAL CONTENT: James F. Penman City Attorney S819R — 10 — Tenant's Initials LandLord's Initials L E70iIBIT A 466 WEST FOURTH STREET SAP BERNARDINO, CALIFORNIA L E G A L D E S C R I P T I 0 P ALL THAT PROPERTY SITUATED IN THE STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: COUNTY OF SAP BERNARDINO THE SOUTHERLY 190 FEET OF LOTS 2 AND 3, BLOCK 29, CITY OF SAN BERNARDINO, AS PER PLAT RECORDED IN BOOR 7 OF MAPS, PAGE 1, 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 (� LL �' SCHED .R 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 (� 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 of twelve (12 month " periods have not expired, for one (1) period s ("Option Period"). Landlord hereby rants p 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 date of the Term of the Lease, Tenant's written notice of its the expirat n (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 Tenant's right to exercise the Option shall be exti paragraph, automatically terminate as of the nguished and the Lease shall without any extension, and without any date of the current term of the Lease, or transfer any right or interest cr�ea'tedabilthiato Landlord. Any attempt to assign paragraph any assignment or transfer of this Lease shall be voidfrom Its aInception. Tenantm 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 the Term, whether created by an amendment to this Lease or by a holdover ofetheon of Premises by Tenant, or otherwise, shall be deemed a part of of the Option Period permitted by this paragraph. Tenant's Initials LanclLord's Initials �_ ADDITIONAL ASSESSED TARES. Lessee shall pay, prior to delin uen Possessory interest and "steal Property Taxes" and if q lye all taxes, including Upon tenant ioprovements, trade fixtures, furnishing,�' properlq due against and levied � of Lessee contained in the Premises or elsewhere. ' equipment or other personal property trade fixtures, furnishings, equipment and all other possible, Lessee shall cause said 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 extraordinary,and any license fee, commercial ' general, special, ordinary or possessory, t rental ax (other than tax, improvement bond an inh nd o Inheritance, r bonds, tan em ce, personal income or estate taxes), imposed on the Premiseseby or any authority having the direct or indirect Power to tx, federal government, or any school, agricultural, sanitar Including arty city, state or Improvement district thereof, as against any legal or equitable interest of ainage of other Premises or in the real property of which the Premises are a part, as against Lessor' the to rent or other income therefrom, and as against Lessor's business of leasing the r • right 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 a result of a transfer, either partial of total, of Lessor's interest in the Premises or as 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 (.O i 1 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 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 E. 27 Southeast Industrial Park Redevelopment Project Area if the Agency 28 determines: (1) that such Blight Reducing Activities are of Dina:km[KaCZn.WM) De 17. 1"2 /„ , 1 benefit to the redevelopment project areas of th a 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 ment of development redevelopment P P 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 13 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 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:: AND COMMON 28 DM:kft1W.1Garl.WM] 2 D--Mber 17. i"2 MW WMWMM� I 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:kftJWA =.m=1 3 / December 17. 1992 ( A L10 i 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 I 18 The foregoing resolution is hereby approved this da of 1992. y 19 20 W. R. Holcomb, Mayor 21 City of San Bernardino Approved as to 22 form and legal content: 23 JAMES F. PENMAN, City Attorney 24 25 By: 26 27 28 4 • w►a:�[ersc�rssasl �.� � n 1�. is9z 1