HomeMy WebLinkAbout10- Community Development D E V E L O P M E N T DE P A R T M E NT
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: MT. VERNON HARDWARE
Executive Director SMALL BUSINESS LOAN
Date: February 1, 1993
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Synopsis of Previous Commission/Council/Committee Action(s):
On November 24, 1986, the Economic Development Council (now defunct)
approved a EDP Small Business Loan for Mt. Vernon Hardware in the
e
amount of $35,000.
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Recommended Motion(s):
(Mayor and Common Council)
MOTION: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE
EXECUTION OF A SMALL BUSINESS LOAN AGREEMENT BETWEEN THE
CITY OF SAN BERNARDINO AND MT. VERNON HARDWARE.
Administrator KENNETH J. AENDE SON
Executive Direct r
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Contact Person(s): Ken Henderson/Emily Wong Phone: 5081
Project Area(s): Northwest (NW) Ward(s) : Six (6)
Supporting Data Attached: Staff Report, Loan Documents, Resolution
FUNDING REQUIREMENTS: Amount: $15,000 Source: EDP Fund (IDB)
Budget Authority: Requested
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Commission/Council Notes:
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KJH:EW:0794T COMMISSION MEETING AGENDA
Meeting Date: 2/1/1993
Agenda Item Number: Jtl
D E V E L O P M E N T low
D E P A R T M E N T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
Mt. Vernon Hardware Small Business Loan
BACKGROUND
Willard Blakely, owner and sole proprietor of Mt. Vernon Hardware,
operates a hardware store at 1286 Mt. Vernon Avenue, which is a central
business section of a major north-south thoroughfare. This business is
well located to attract the attention of traffic along Mt. Vernon
Avenue as well as Baseline Street. Mr. Blakely has been the
owner/manager of Mt. Vernon Hardware since 1972. Prior to the current
ownership, the company was established in 1960.
In 1986, Mr. Blakely received a Small Business Loan from the City's
former Economic Development Council for $35,000 at an interest rate of
7% for 15 years. The loan was utilized to assist Mr. Blakely in
acquiring the property. To date, Mr. Blakely has been very prompt with
all monthly payments and has made additional payments to be applied to
the principal whenever possible. The existing balance of his loan is
approximately $5,266.02. In addition, Dun and Bradstreet reports that
Mr. Blakley has a good payment history with his suppliers.
Unfortunately, due to the current economic downturn and the increase in
competition from large chain stores such as Home Depot and Home Base,
Mt. Vernon Hardware has been experiencing decreased sales and depletion
of his unreplenished hardware inventory. In order to remain
competitive, Mr. Blakely needs additional working capital to restock
and expand his inventory.
AMOUNT AND PURPOSE OF THE LOAN
Mt. Vernon Hardware is requesting a loan in the amount of $15,000 for
the purpose of retiring the existing note ($5,266.02 balance) and using
the balance of the proceeds for working capital. Mr. Blakely intends
to use working capital to restock and purchase new inventory.
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KJH:EW:0794T COMMISSION MEETING AGENDA
Meeting Date: 2/1/1993
Agenda Item Number: ( G
DEVELOPMENT DEPARTMENT STAFF REPORT
Mt. Vernon Hardward Small Business Loan
February 1, 1993
Page Number -2-
TERMS OF THE LOAN
The loan in the amount of $15,000 will be amortized over a period of
five (5) years at an interest rate of seven (7%) percent. Required
monthly payments of $297.02 are lower than the existing loan and
include interest and principal amounts. The chart below provides a
comparison of the existing loan and the requested new loan:
Current Loan New Loan
Loan Amount $35,000 $15,000
Interest Rate 7% 7%
Term 15 years 5 years
Monthly Payments $314.59 $297.02
COLLATERAL
The loan will be sufficiently collateralized by the business' real
estate property which was appraised at a value of $50,000 in 1986. The
property, which realistically has not declined in value, is free and
clear of all liens with the exception of the existing first trust deed
held by the City. Upon approval of this loan, $5,266.02 will be
deducted from the total proceeds to pay off the existing note.
Staff recommends adoption of the attached Resolution.
VVI'
tXH
KENNETH J. REND RSON, Executive Director
Development Dep rtment
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KJH:EW:0794T COMMISSION MEETING AGENDA
Meeting Date: 2/1/1993/
Agenda Item Number: / 0
I
1 RESOLUTION NO.
2
3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE EXECUTION OF A
SMALL BUSINESS LOAN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
4 MT. VERNON HARDWARE
5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AS FOLLOWS:
6
SECTION 1.
7
8 The Mayor of the City of San Bernardino is hereby authorized
9 to execute, on behalf of the City of San Bernardino, a loan agreement
10 with MT. VERNON HARDWARE, which loan agreement is attached hereto as
11 Exhibit 111" and is incorporated herein by reference as though fully set
12 forth at length. The Agreement provides for the loaning of funds from
13 the Small Business Loan program in the amount of $15,000.00.
SECTION 2.
14
15 The authorizations to execute the above referenced Agreement
16 are rescinded if the parties to the agreement fail to execute same
within sixty (60) days of the passage of this Resolution.
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VP-
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE EXECUTION OF A
Z SMALL BUSINESS LOAN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
3 MT. VERNON HARDWARE.
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted
by the Mayor and Common Council of the City of San Bernardino at
r
6 a meeting thereof, held on the day
of , 1993, by the following vote, to wit:
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8
9 COUNCIL MEMBERS: AYES NAYS. ABSTAIN ABSENT
10 ESTHER ESTRADA
JACK REILLY
ll
12 RALPH HERNANDEZ
13 MICHAEL MAUDSLEY
TOM MINOR
14
VALERIE POPE-LUDLAM
15
NORINE MILLER
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18 Rachel Clark, City Clerk
19 The foregoing resolution is hereby approved this day
of , 1993.
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21 W. R. "Bob" Holcomb, Mayor
22 Approved as to form
and legal content:
23
JAMES F. PENMAN
24 City Attorney
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By:
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27 KJH:EMW:1mp:249OB
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l STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
2 CITY OF SAN BERNARDINO )
3
I, City Clerk of the City of San
4 Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of
Mayor and Common Council of the City of San Bernardino Resolution
5 No. is a full, true and correct copy of that now on file in
this office.
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IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
7 official seal of the Mayor and Common Council of the City of San
8 Bernardino this day of , 1993.
9
10
11 City Clerk
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D E V E L O P M E N T D E P A R T M E N T
OF THE CITY OF SAN BERNARDINO
"Economic Development Program"
(IDB—Financed)
BORROWER: Mt. Vernon Hardware (Willard Blakely)
PROJECT TITLE: Working Capital
PROJECT ADDRESS: 1286 Mt. Vernon Avenue
San Bernardino CA 92411
LOAN IS NUMBER EDP1642A OF DEVELOPMENT DEPARTMENT
CONTRACTS.
TABLE OF CONTENTS
(IDB-Financed)
Section
Number Title Page
SECTION I PARTIES, TERMS, CONDITIONS PRECEDENT
AND INDEPENDENT STATUS
S101. Parties to the Agreement 2
S102. Representatives of the Parties and
Service of Notices 2
S103. Term of this Agreement 3
S104. Conditions Precedent 3
5105. Independent Contractor Status of
the Borrower 4
SECTION II PURPOSE OF AGREEMENT AND LOAN, LOAN
TERMS, AND PROMISSORY NOTE
5201. Purpose of the Agreement 4
S202. Purpose of the Loan 4
S203. Terms of the Loan 4
S204. Promissory Note 5
SECTION III REPRESENTATIONS AND COVENANTS OF
BORROWER, AND DEFAULT
5301. Representations of the Borrower 6
5302. Covenants of the Borrower 7
S303. Default 9
SECTION IV REPORTS, RECORDS AND AUDITS
S401. Reporting Requirements 11
5402. Maintenance of Records 11
S403. Audits and Inspections 12
5404. Validity of Financial Documentation
Submissions 12
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TABLE OF CONTENTS
(IDB-Financed)
Section
Number Title
Page
i
S405. Release of Funds from Escrow 12
I
5406. Reconveyance Fee 13
SECTION V GENERAL TERMS AND CONDITIONS
S501. Indemnification and Insurance
Requirements 13
S502. Prohibition Against Assignment 14
S503. Limitation of Corporate Acts 15
5504. Amendments and Waivers 15
5505. Compliance with Statutes and
Regulations 15
5506. Conflict of Interest 15
S507. Political Activity Prohibited 17
5508. Lobbying Prohibited 17
5509. Installation of Financial
Assistance Sign 18
S510. Press Releases 18
5511. Discrimination Prohibited 18
5512. Nondiscrimination, Equal Employment
Practices, and Affirmative Action
Plan 18
S513. Employment Opportunities for Business
and Lower Income Persons 18
5514. Participation of Minorities, Women
and Small Businesses 20
S515. Captions 20
S516. Effect of Legal Judgment 20
S517. Choice of Law Governing this Agreement 20
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it
TABLE OF CONTENTS
(IDB-Financed)
Section
Number Title page
S518. Prohibition of Legal Proceedings 20
S519. Rights and Remedies 21
SECTION VI ENTIRE AGREEMENT
5601. Complete Agreement 21
S602. Number of Pages and Attachments 21
Execution (Signature) Page 22
ATTACHMENTS
Attachment I -- Employment Action Plan
Attachment II -- Insurance Requirements
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AGREEMENT NUMBER: EDP-93-1642A
(IDB-FINANCED)
BETWEEN THE CITY OF SAN BERNARDINO AND THE Mt. Vernon Hardware
(RELATING TO) THE
Working Capital PROJECT
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THIS AGREEMENT is made and entered into by and between the City
of San Bernardino, a municipal corporation, hereinafter called "City",
and Mt. Vernon Hardware
hereinafter called the "Borrower".
W I T N E S S E T H
WHEREAS, the City has entered into a Grant Agreement with the
United States Department of Housing and Urban Development, hereinafter
called the Grantor, pursuant to Title I of the Housing and Community
Development Act of 1974, as amended, hereinafter referred to as HCDA,
to address the Development Department needs of the City; and
WHEREAS, the Development Department of the City of San
Bernardino, hereinafter called the "Department", has been designated
by the City to provide for proper planning, coordination and
administration of the City's programs as described in the City's Grant
Agreement with the Grantor, and of certain projects funded by the
City; and
WHEREAS, the "Department" cooperates with private individuals
and organizations, other agencies of the City and agencies of other
governmental jurisdictions in carrying out certain functions and
programs which are its responsibility; and
WHEREAS, the Small Business Revolving Loan Fund program has
been established by the City as part of a City of San Bernardino
Economic Development Program ("EDP"), and has been approved by the San
Bernardino Mayor and Common Council; and
WHEREAS, the project which is the subject of this agreement
meets the requirements of the above described program; and
WHEREAS, the City is willing to lend monies to the Borrower on
the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of and in reliance upon the
foregoing and upon the covenants, agreements, representations and
warranties herein contained, the City and the Borrower agree as
follows:
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GNP—
SECTION I.
PARTIES, TERM, CONDITIONS PRECEDENT, AND INDEPENDENT STATUS
S101. Parties to the Agreement.
The parties to this Agreement are:
1) The City of San Bernardino, a municipal corporation,
having its principal office at 300 North "D" Street, San
Bernardino, California 92418
2) The Borrower Mt. Vernon Hardware
having its principal address at 1286 Mt. Vernon Ave
San Bernardino, California 92411
The Borrower is ( a ) fictitious name enterprise
(fictitious name enterprise, individual, California
Corporation/general partnership/limited partnership.)
S102. Representatives of the Parties and Service of Notices.
The representatives of the respective parties who are
authorized to administer this Agreement and to whom formal
notices, demands and communications shall be given are as
follows:
1) The representative of the City shall be, unless otherwise
stated in the Agreement.
Mr. Kenneth J. Henderson, Executive Director
Development Department
201 North "E" Street, Third Floor
San Bernardino, CA 92401
2) The representative of the Borrower shall be:
Willard Blakely
3) Formal notices, demands and communications to be given
hereunder by either party shall be made in writing and
may be effected by personal delivery or by registered or
certified mail, postage prepaid, return receipt requested
and shall be deemed communicated as of the date of
mailing.
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4) If the name of the person designated to receive the
notices, demands or communications or the address of such
person is changed, written notice shall be given, in
accord with this section, within five (5) working days of
said change.
5103. Term of this Agreement.
This Agreement shall remain in full force and effect from the
date of execution by Borrower of the Promissory Note, until
such time as said Promissory Note is paid according to its
terms, subject to the provisions of 5303 herein.
5104. Conditions Precedent.
A. Prior to the Execution of this Agreement, the Borrower
shall submit to the City for approval in writing an
Affirmative Action Program Plan in accordance with
Section 512 herein.
B. In the event that Borrower is a corporation, then prior
to the execution of this Agreement, the Borrower shall
provide the City with copies of the following documents:
1) Borrower's Articles of Incorporation, and all
amendments thereto, as filed with the Secretary of
State.
2) Borrower's By-Laws, and all amendments thereto, as
adopted by the Borrower and properly attested.
3) Resolutions or other corporate actions of the
Borrower's Board of Directors, properly attested or
certified, which specify the name(s) of the
person(s) authorized to obligate the Borrower and
execute contractual documents.
4) Certificate of Good Standing from California
Secretary of State.
C. In the event that Borrower is a partnership, then prior
to the execution of this Agreement, the Borrower; shall
provide the City with copies of the Borrower's
Partnership Agreement, and evidence of filing thereof
with appropriate filing official.
D. In the event the Borrower is an individual doing business
under fictitious name, a copy of the Fictitious Name
Statement and evidence of the proper filing thereof.
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S105. Independent Contractor Status of the Borrower.
The parties agree that the Borrower is an independent
contractor and that no employees of the Borrower have been,
are, or shall be employees of the City by virtue of this
Agreement, and the Borrower shall so inform each employee
organization and each employee who is hired or retained by it.
SECTION II.
PURPOSE OF AGREEMENT AND LOAN, LOAN TERMS, AND PROMISSORY NOTE
S201. Purpose of the Agreement.
The purpose of this Agreement is to provide
Fifteen Thousand and 00/100 DOLLARS
($ 15,000.00 )of EDP funds to be loaned by the City to the
Borrower, hereinafter called the "Loan", for the purpose and
under the terms and conditions set forth herein.
5202. Purpose of the Loan
The purpose of the Loan is to provide financial assistance to
enable the Borrower to:
Pay off the unpaid principal balance of the promissory note
(Loan #EDP1642) held by the City and to provide working capital.
S203. Terms of the Loan
A. The City agrees to lend the Borrower, and the Borrower
agrees to borrow from the City, an amount not to exceed
Fifteen Thousand and 00/100 DOLLARS,
($15,000.00 ), such transaction hereinafter referred to
as the "Loan". The Loan is to be evidenced by, and made
against delivery of a Promissory Note executed by the
Borrower, hereinafter called the "Note" and by this
reference incorporated herein.
B. The Note shall (i) be dated as of the closing, (ii) bear
interest on the unpaid principal at the rate of seven
( 7% ) per annum, (iii) be for a term of five
( 5 ) years, and (d) provide for payment of the
principal amount thereof and the interest thereon in
sixty ( 60 ) equal monthly installments of
Two Hundred Ninety Seven Dollars and Two Cents DOLLARS
($297.02 ), each including principal and interest,
and continuing until said principal and interest are paid
in full.
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C. Each monthly installment shall be applied first to the
payment of interest then accrued to the date the payment
is received, and the balance, if any, to the reduction of
the principal.
D. Proceeds from the oan will be used firstly to pay off the
unpaid principal balance of the existing promissory note
in the amount of $5,266.02 held by the City. Once the
note is completely paid in full, balance of the proceeds
may be used for working capital.
5204. Promissory Note.
A. The obligation of the City to make the Loan is subject to
receipt by the City of the Note and, at the City's sole
discretion, to the following additional conditions
precedent:
1) The representations and warranties made herein by
the Borrower shall be true and correct at the time
of consideration by the Mayor and Common Council of
the City of San Bernardino with the same effect as
though made at the closing.
2) Receipt by the City from the Borrower of all
executed documents in connection with this
Agreement; satisfactory in form and substance to
the City.
3) If matching funds constitute a part of this
Agreement, then Borrower shall obtain matching
funds in an amount equal to the amount of this loan
and, as required by the City, deposit said matching
funds into an account with N/A
Escrow Agency.
4) The City and the Borrower have mutually agreed to
the terms and conditions as set forth in the
Employment Action Plan, which is attached hereto as
Attachment I and by this reference is incorporated
herein.
B. The Note is to be secured as follows:
A Deed of Trust for Business real estate property valued
at $50,000.
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C. Borrower shall have the right, without penalty, to prepay
the Note together with the accrued interest thereon as of
the date of such prepayment.
D. The Borrower acknowledges and agrees that the amount
being provided under this loan shall be for a total of
Fifteen Thousand and 00/100
DOLLARS, ($15,000.00 ), and that no additional funds to
cover additional projects costs, anticipated or
unanticipated, incurred as a result of cost overruns or
expenses in financing this project, are available under
this agreement.
SECTION III.
REPRESENTATIONS AND COVENANTS OF BORROWER AND DEFAULT
S301. Representations of the Borrower.
To induce City to enter into this Agreement, Borrower covenants
and represents to City that:
1) The execution, delivery and performance of the Note and
this Agreement by Borrower have been duly authorized by
Borrower. This Agreement constitutes a legal, valid and
binding obligation of Borrower, enforceable in accordance
with its terms. The execution and delivery of this
Agreement and the note, and consummation of the
transactions herein contemplated, will not conflict with,
or result in a breach of, any of the term, provisions or
conditions of any indenture, contract, instrument or
agreement, including any partnership agreement, to which
Borrower or any of its officers is a party. No approval,
consent or authorization of any governmental authority is
necessary for the execution, delivery or performance by
the Borrower of this Agreement or of any of the terms and
conditions.
2) Borrower has good and marketable title to the real
property identified in S204B of this Agreement, located at
1286 Mt. Vernon Avenue San Bernardino CA 92411 ,
San Bernardino, California, and it is free and clear from
all liens except as set forth herein: First Trust Deed
held by the City; proceeds from this loan to be used to
Pay off the existing note
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3) Borrower is in compliance with all applicable statutes,
laws, regulations, and executive orders of the United
States of America and all states, foreign countries,
other governmental bodies and agencies having
Jurisdiction over its business or properties, including
(without limitation) all tax laws and Borrower has not
received notice of any violation of such statutes, laws,
regulations or orders which have not been remedied prior
to the date of this Agreement. Borrower possesses all
licenses, tradenames, trademarks, and permits as are
required for conduct of its business without conflict
with the rights of others.
4. There is not pending or threatened against borrower, or
any of its officers, any actions, suits, proceedings or
investigations at law or in equity or before or by any
federal, state, municipal or governmental department,
commission, board, bureau, agency or instrumentality
which, if determined adversely, would be likely to have a
materially adverse effect on the business or properties
of Borrower.
5. Each and every financial statement, document and record
delivered by Borrower to the City in connection with this
Agreement and the proposed transaction hereunder is a
true and complete copy of said financial statement,
document or record, and fairly and accurately reflects
the information it purports to portray. There has been
no change in the condition, financial or otherwise, of
Borrower as shown in the financial statements dated
November. 1992 , except changes in
the ordinary course of business, none of which,
individually or in the aggregate, has been materially
adverse.
5302. Additional Covenants of the Borrower.
Borrower covenants and agrees that, from the date hereof, until
payment in full on the Note and the interest thereon, that it
will:
1) Pay the principal and interest on the Note according to
its terms.
2) Pay any other amounts that may be due or become due and
owing to the City under or pursuant to the terms of this
Agreement or the Note.
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3) Execute and deliver all instruments, and perform such
acts, as the City may reasonably deem necessary or
desirable to confirm and secure to the City all rights
and remedies conferred upon the City by the terms of this
Agreement and Note.
4) Give notice to the City of any event that constitutes an
Event of Default as set forth in Section 303 of this
Agreement or that would, with notice, or lapse of time or
both, constitute an Event of Default under this
Agreement. Notice shall specify that nature of such
Event of Default.
5) Not enter into any agreement or other commitment the
performance of which would constitute a breach of any of
the covenants contained in this Agreement.
6) Use the Loan proceeds only for the purposes stated in
this Agreement and for no other purpose or purposes.
7) Observe all applicable federal, state and local statutes
and regulations as well as City of San Bernardino
Ordinances as further defined and set forth in Section
505 of this Agreement.
8) In the event that Borrower is a corporation, then
Borrower shall do or cause to be done all things
necessary to preserve and keep in full force and effect
its corporate existence, rights and franchises.
9) Not violate any laws, ordinances, governmental rules or
regulations to which it is subject and not fail to obtain
any licenses, permits, franchises or other governmental
authorization necessary to conduct its business, which
violation or failure to obtain might have a material
adverse effect on the business, prospects, profits or
condition (financial or otherwise) of Borrower.
10) Submit an Annual Employment Report on or before the
fifteenth (15th) date of June for the year(s) 1993
The Annual Employment Report shall
detail Borrower's compliance with the Employment Action
Plan, Attachment I attached hereto and by this reference
incorporated herein, for the preceding twelve (12) month
period.
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11) Maintain adequate insurance with respect to the
collateral and the (proprietorship, partnership or
corporate) business which is the subject of this
Agreement, with reputable insurance companies. The
Borrower shall maintain insurance in such amounts and
against such risks as is customary with companies in the
same or similar business; in addition, said insurance
coverage(s) shall be in accordance with the general
insurance provisions of this Agreement as specified in
S501(B) (5), including fire, hazard and general
comprehensive liability insurance, worker's compensation,
property maintenance, to protect such business and all
property securing the City's loan. Said insurance shall
be maintained throughout the term of this loan. The City
shall be named as an additional insured, and the policy
or policies shall not be subject to cancellation,
reduction or nonrenewal without thirty (30) days prior
written notification to the City Attorney by certified
mail.
12) Pay all indebtedness and obligations promptly in
accordance with normal terms and promptly pay and
discharge or cause to be paid and discharged all taxes,
assessments and governmental charges or levies imposed
upon it or upon its income and profits or upon any of its
property, real, personal or mixed, or upon any part
thereof, respectively, before the same shall become in
default.
S303. Default.
A. The entire unpaid principal of the Note, and interest
then accrued thereon, shall become and be forthwith due
and payable upon written demand by the City or the City's
assigns, without any other notice or demand of any kind
or any presentment or protest, if any one of the
following events (herein called and "Event of Default")
shall occur and be continuing at the time of such demand,
whether voluntarily or involuntarily, or, without
limitation, occurring or brought about by operation of
law or pursuant to or in compliance with any judgment,
decree or order of any court of any order, rule or
regulation or any governmental body, provided however
that such sum shall not be payable if Borrower's payment
have been expressly extended by the City or the City's
assigns. "Events of Default" shall include:
1) Payment of any installment of principal or interest
on the Note is not paid when due and such payment
remains unpaid for thirty (30) days.
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Borrower fails to Y
a when due or declared due
to p
ay
the obligations secured under this Agreement.
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3) Borrower fails to perform or comply with any terms,
conditions, or covenants as provided in this
Agreement or in any instruments securing or related
to this Agreement.
4) If any representation or warranty made by the
Borrower in this Agreement shall prove to be untrue
in any material respect, or if any report,
financial statement or financial schedule or other
instrument delivered under or pursuant to this
Agreement or the transactions contemplated herein,
to the City or to any other holder of the Note
shall prove to be untrue in any material respect as
of the date as of which made.
5) A court enters a decree or order for relief in
respect of the borrower in an involuntary case
under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or
appoints a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar
official) of the Borrower or for any substantial
part of its property, or orders the winding up or
liquidation of its affairs and such decree or order
remains unstayed and in effect for a period of
sixty (60) consecutive days.
6) The occurrence (i) of Borrower's becoming insolvent
or bankrupt, or ceasing, being unable, or admitting
in writing its inability to pay its debts as they
mature, or making a general assignment for the
benefit of, or entering into any composition or
arrangement with creditors; (ii) of proceedings for
the appointment of a receiver, trustee or
liquidator of Debt, or of a substantial part of its
assets, being authorized or instituted by or
against it; or (iii) of proceedings under any
bankruptcy, reorganization, readjustment of debt,
insolvency, dissolution, liquidation or other
similar law of any jurisdiction being authorized or
instituted by or against the Borrower.
7) A cessation or substantial reduction of operations
in the business which is the subject of this
Agreement under circumstances indicative to the
City of a lack of intention or ability to provide
continuing employment and economic benefits for the
area in which the business is located.
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AMA 8) Failure to submit the Annual Employment Report
referred to in 5302(12) within nintey (90) days of
the scheduled due date for said Report.
9) The loss, theft, substantial damage, destruction,
abandonment
sale or encumbrance to or of any of
the collateral securing payment of the Note, in any
manner not fully covered by insurance, or the
making of any levy, seizure or attachment thereof
or thereon.
B. If Borrower shall at any time default in making any
payment of principal or interest on the Note, Borrower
shall to the full extent permitted by law, pay to the
City or other holder of the Note, in addition to any
other amounts that may be due from Borrower to such
holder, and amount equal to the reasonable costs and
expenses incurred by such holder, in its efforts to
protect its collateral, secure payment, or otherwise
defend its interests hereunder in any judicial or
administrative proceeding.
SECTION IV.
REPORTS, RECORDS AND AUDITS
S401. Reporting Requirements.
A. At such times and in such forms as the City may require,
there shall be furnished to the City such statements,
records, reports, data and information as the City may
request pertaining to matters covered by this Agreement.
B. Borrower will provide its financial and accounting
statements to the City for the period ending December 31.
1993 and annually thereafter during term of this
Agreement, but not later than three (3) months following
the expiration of any such period, and at each other time
and in such form as the City may prescribe.
5402. Maintenance of Records.
A) Records, in their original form, shall be maintained in
accordance with the requirements prescribed by the
Grantor and the City with respect to all matters covered
by the Agreement. Such records shall be retained for a
period of six (6) years after termination of this
Agreement and after all other pending matters are
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closed. "Pending Matters" include, but are not limited
to, an audit, litigation, or other actions involving
records. The City may, at its discretion, take
possession of and retain said records.
B) Records in their original form pertaining to matters
covered by this Agreement shall at all times be retained
within the City of San Bernardino, or some other location
specifically authorizing in writing by the director of
the Development Department, unless authorization to
remove them is granted in writing by the City.
S403. Audits and Inspections.
A. At any time during normal business hours and as often as
the Grantor, the U.S. Comptroller General, Auditor
General of the State of California or the City may deem
necessary, the Borrower shall make available to the City
for examination, all of its records with respect to all
matters covered by this Agreement. The City, Auditor
General of the State of California, Grantor, and the U.S.
Comptroller General shall have the authority to audit,
examine and make excerpts or transcripts from records,
including all contracts, invoices, materials, payrolls,
records of personnel, conditions of employment and other
data relating to all matters covered by this Agreement.
B. The City shall have the authority to make physical
inspections and to require such physical safeguarding
devices as locks, alarms, safes, fire extinguishers,
sprinkler system, etc. , to safeguard property and/or
equipment funded or secured by this Agreement.
Notwithstanding such inspection authority, Borrower is
solely responsible for the provision of security and for
the safeguarding of the business and its property.
S404. Validity of Financial Documentation Submissions
Financial reports required to be prepared and submitted
by the Borrower to the City shall be accurate and correct
in all respects.
5405. Release of Funds
A. Loan proceeds shall be used in accordance with 5202
"Purpose of the Loan" and shall be properly supported by
invoices, vouchers, executed payrolls, time records or
other documentation evidencing an expenditure and/or
encumbrance of funds on a monthly basis.
10 - 12 -
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B. The costs associated with the loan such as escrow fees,
credit reports (TRW), title reports, Loan Fees, or other
similar costs shall be delineated in the Truth in Lending
Statement instructions and disbursed from the loan
proceeds.
S406. Reconveyance Fee
In the event that real property is used to secure this
Loan, then Borrower agrees to pay any costs incident to
title reconveyance, including, if applicable, trustee's
fees, attorney fees, document preparation fees, recording
fees or any other related expenses.
SECTION V.
GENERAL TERMS AND CONDITIONS
S501. Indemnification and Insurance Requirements
A. Indemnification:
The Borrower undertakes and agrees to defend, indemnify
and hold harmless the City and any and all of the City's
officers, agents, employees, assigns, and successors in
interest from and against all suits and causes of action,
claims, cost of litigation, damage or liability of any
nature whatsoever, for death or injury to any person,
including Borrower's employees and agents, or damage or
destruction to any property of either party hereto or
third persons in any manner arising by reason of or
incident to the performance of this Agreement on the part
of the Borrower or subborrower any tier whether or not
contributed to by any act or ommission, active or
passive, negligent or otherwise, except for the sole
negligence of the City, or the sole negligence of any of
the City's officer, agents or employees. City approval
of the Borrower's performance, or failure to object,
shall be no defense to Borrower concerning its
undertaking herein to defend and indemnify City and
others.
B. Insurance:
1) The Borrower shall provide and maintain at its own
expense throughout the term of this Agreement the
insurance requirements specified herein. Evidence of
insurance shall be submitted for approval by the City.
The City special endorsement forms, referenced hereto and
10 - 13 -
0
incorporated by reference, are the preferred form of
evidence of insurance. Alternatively, Borrower may
submit two (2) certified copies of the full policy
containing the appropriate cancellation notice language
and additional insured/loss payee language as specified.
2) No release of funds from the Escrow Account shall be made
to the Borrower until such time as the Borrower has
complied with all insurance and bonding requirements
under this Agreement. The City's Additional Insured
Endorsement form, or a form approved by the City, stating
that the Borrower is so insured, must accompany any
demand for funds unless said form has been previously
submitted and approved by the City. (Certification of
insurance shall be procured, filed and approved in strict
compliance with City rules and regulations.)
3) With respect to the interests of the City, such insurance shall
not be cancelled, reduced in coverage or limited or
non-renewed, except after thirty (30) days written notice by
receipted delivery has been given to the Office of the City
Attorney, City Hall, 300 North "D" Street, San Bernardino,
California 92418-0001. Policies of insurance and fidelity
bonds, except for policies covering Worker's Compensation and
Employees' and Volunteer's Owned and/or Leased Vehicles, shall
name the City as an Additional Insured and said endorsements or
other evidence of insurance shall so indicate. Fidelity bonds
shall name the City as loss payee or additional insured. In
the event of any cancellation, non-renewal, reduction or
limitation of coverage, or notice that such will be effected,
City may, but is not required to, obtain insurance to protect
its interests, in which event the cost thereof shall be
reimbursed by Borrower forthwith. Any failure to forthwith
reimburse such expense shall constitute an Event of Default.
4) The City reserves the right at any time during the term of this
Agreement to change the amounts and types of insurance required
hereunder by giving Borrower ninety (90) days written notice.
5) The Borrower shall maintain minimum insurance coverages
prescribed in Attachment II of this Agreement, which by this
reference is incorporated herein.
S502. Prohibition Against Assigngent.
In the event that Borrower is a corporation then the Borrower
shall not amend it Articles of Incorporation or By-Laws, move
to dissolve, transfer any assets derived from funds provided
under this Agreement, or take any other steps which may
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materially affect its operations within the performance of this
Agreement without first notifying the City in writing. The
Borrower shall notify the City immediately in writing of any
change in the Borrower's corporate name.
S503. Limitation of Corporate Acts.
On the event that Borrower is a corporation then the Borrower
shall not amend its Articles of Incorporation or By-Laws, move
to dissolve, transfer any assets derived from funds provided
under this Agreement, or take any other steps which may
materially affect its operations within the performance of this
Agreement without first notifying the City in writing. The
Borrower shall notify the City immediately in writing of any
change in the Borrower's corporate name.
S504. Amendments and Waivers.
This Agreement may not be changed or amended orally, and no
waiver hereunder may be oral, but any change or amendment
hereto or any waiver hereunder must be in writing and signed by
the party or parties against whom such change, amendment, or
waiver is sought to be enforced.
5505. Compliance with Statutes and Regulations
A. The Borrower warrants and certifies that in the performance of
this Agreement, it shall comply with all applicable statutes,
rules, regulations and orders of the United States, the State
of California, the County and City of San Bernardino, including
laws and regulations pertaining to labor, wages hours and other
conditions or employment and the City's anti-discrimination
provisions and Affirmative Action Plan which by this reference
is incorporated herein. Borrower further warrants and
certifies that it shall comply with new, amended or revised
laws, regulations, and/or procedures that apply to the
performance of this Agreement, upon being provided notice
thereof.
Borrower covenants that the Davis-Bacon Act as amended, the
Contract Work Hours and Safety Standards Act, and the Copeland
"Anti-Kickback Act" shall be a part of all construction
contracts awarded by the Borrower pursuant to this Agreement
and all subcontracts thereto.
S506. Conflict of Interest
A. The Borrower covenants that none of its directors, officers,
employees, or agents shall participate in selecting
subcontractors, or administering subcontracts supported (in
A
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whole or in P art) by federal funds where such person is a
director, officer, employee or agent of the subcontractor, or
where such person knows or should have known that:
1 A
member of such person's immediate family, or partner, or
organization has a financial interest in the subcontract;
2) The subcontractor is someone with whom such person has
negotiated or is negotiating any prospective employment,
or;
3) The participation of such persons would be prohibited by
the California Political Reform Act, California Government
Code Section 87100 et seq. , if such person were a P ublic
officer, because such person would have a "financial or
other interest" in the subcontract.
B. Definitions:
1) The term "immediate family" includes, but is not limited
to, those persons related by blood or marriage, such as
husband, wife, father, mother, brother, sister, son,
daughter, father-in-law, mother-in-law, brother-in-law,
son-in-law and daughter-in-law.
2) The term "financial or other interest" includes, but is
not limited to:
- - (a) Any direct or indirect financial interest in the
specific contract including a commission or fee, a
share of the proceeds, prospect of a promotion or
future employment, a profit, or any other form of
financial reward.
(b) Any of the following interest in the subcontracting
entity: partnership interest or other beneficial
interest of five percent (5%) or more of the stock;
employment in a managerial capacity; or membership on
the board of directors or governing body. This
provision shall not apply to serving on the board or
governing body of a non-profit corporation for which
no salary is paid or other compensation.
C The Borrower further covenants that no officer, director,
employee or agent shall solicit or accept gratuities, favors,
or anything of monetary value, from an actual or potential
subcontractor, supplier, a party to a subagreement, (or persons
who are other side in a position to benefit from the actions of
any officer, employee or agent).
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D. The Borrower shall not subcontract with a former director,
officer, or employee within a one (1) year period following the
termination of the relationship between said person and the
Borrower.
E. Prior to obtaining the City's approval of any subcontract, the
Borrower shall disclose to the City any relationship, financial
or otherwise, direct or indirect, of the Borrower or any of its
officers, directors or employees of their immediate family with
the proposed subcontractor and its officers, directors or
employees.
F. For further clarification of the meaning of any of the terms
used herein, the parties agree that references shall be made to
the guidelines, rules and laws of the City of San Bernardino,
State of California, and federal regulations regarding conflict
of interest.
G. The Borrower warrants that it has not paid or given and will
not pay or give to any third person any money or other
consideration for obtaining this Agreement.
H. The Borrower covenants that no member, officer, employee of
Borrower shall have any interest, direct or indirect, in any
contract or subcontract of the proceeds thereof for work to be
performed in connection with this project during his/her tenure
as such employee, member or officer or for one (1) year
thereafter.
I. The Borrower shall incorporate the foregoing subsections of
this section into every agreement that it enters into in
connection with this project and shall substitute the term
"Subcontractor" for the term "Borrower" and "Sub-contractor"
for "Subcontractor".
S507. Political Activity Prohibited
None of the funds, materials, property or services provided
directly or indirectly under this Agreement shall be used for
any partisan political activity, or to further the election or
defeat of any candidate for public office.
5508. Lobbying Prohibited
None of the funds provided under this Agreement shall be used
for any purpose designed to support or defeat any pending
legislation or administrative regulation.
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S509. Installation of Financial Assistance Plan
The Borrower shall install, or cause to be installed, for
public display upon the project premises a sign, with design
approved by City, identifying the Borrower as receiving
financial assistance from the City, if such a sign is requested
by the Director of Development Department.
p p tment.
S510. Press Releases
In all communications with the press, television, radio or any
other means of communicating with the general community, the
Borrower shall make specific reference to the City of San
Bernardino Development Department as the sponsoring agency of
the project.
S511. Discrimination Prohibited
No person shall on the grounds of race, religion, ancestry,
color, national origin, sex, age, or physical handicap, be
excluded from participation in, be denied the benefit of, or be
ted
sub ec
to discrimination iscrimination under this program/project. For
purposes of this Section, Title 24, Code of Federal Regulations
Section 570.601(b) defines specific discriminatory actions
which are prohibited and correction action which shall be taken
in situations as defined therein.
S512. Nondiscrimination, Equal Employment Practices and Affirmative
Action Program
The Borrower shall comply with the nondiscrimination and
affirmative action provisions of the laws of the United States
of America, the State of California, and the City. In
performing this Agreement, the Borrower shall not discriminate
in its employment practices against any employee, or applicant
for employment because of person's race, religion, ancestry,
color, national origin, sex, age or physical handicap. Any
subcontract entered into by the Borrower relating to this
Agreement, to the extent allowed hereunder, shall be subject to
the provisions of this paragraph.
S513. Employment Opportunities for Business and Lower Income Persons
Any project/program funded in part or in whole with Development
funds shall comply with the following provisions (referred to
as a Section 3 clause:)
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1 The work to be performed under this contract (Agreement)
i
is on a project assisted under a program providing direct
Federal financing assistance from the Department o
p f
Housing and Urban Development and is subject to the
requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 USC 1701u. Section
3 requires that, to the greatest extent feasible
opportunities for training nd employment be
iven t
8 g o
lower income residents of the project area
and contracts
(agreements) for work in connection with the project be
awarded to business concerns which are located in, or
owned in substantial part by persons residing in the area
of the project.
2) The parties to this contract (Agreement) will comply with
the provisions of said Section 3 and the regulations
issued pursuant thereto by the Secretary of Housing and
Urban Development set forth in Title 24 CFR, Part 135, and
all applicable rules and orders of the Department issued
thereunder prior to the execution of this contract
(Agreement) certify and agree that they are under no
contractual or other disability which would prevent them
from complying with these requirements.
3) The Borrower will send to each labor organization or
representative of workers with which he/she has a
collective bargaining agreement or other contract or
understanding, if any, a notice advising the said labor
organization or worker's representative of its commitments
under this Section 3 clause and shall post copies of the
notice in conspicuous places available to employees and
applicants for employment and training.
4) The Borrower will include this Section 3 clause in every
subcontract for work in connection with the project and
will, at the direction of the applicant for or recipient
of Federal financial assistance, take appropriate action
pursuant to the subcontract upon a finding that the
subcontractor is in violation of regulations issued by the
Secretary of Housing and Urban Development, 24 CFR, Part
135. The Borrower will not subcontract with any
subcontractor where it has notice of knowledge that the
latter has been found in violation of regulations under
Title 24, CFR 135 and will not let any subcontract unless
the subcontractor has first provided it with a preliminary
statement of ability to comply with the requirements of
these regulations.
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,II
5) Compliance with the provisions of Section 3, the
regulations set forth in Title 24 CFR, Part 135, and all
applicable rules and order of the Department issued
thereunder prior to the execution of the contract
(Agreement) shall be a condition of the federal financial
assistance provided to the project, binding upon the
applicant or recipient for such assistance, its
successors, and assigns. Failure to fulfill these
requirements shall subject the applicant or recipient, its
contractors and subcontractors, its successors and assigns
to those sanctions specified by the grant or loan
agreement or contract through which federal assistance is
provided, and to such sanctions as are specified by Title
24 CFR, Part 135.
5514. Participation of Minorities, Women and Small Businesses
To the fullest extent possible in the administration of this
Agreement, Borrower agrees to provide opportunities for
minorities, women and small businesses to participate in
procurements under this Agreement.
S515. Captions
The section headings appearing herein shall not be deemed to
govern, limit, modify or in any way affect the scope, meaning
or intent of these conditions.
S516. Effect of Legal Judgment
Should any covenant, condition or provision herein contained be
held to be invalid by final judgment in any court of competent
Jurisdiction, the invalidity of such covenant, condition or
provision shall not in any way affect any other covenant,
condition or provision herein contained.
5517. Choice of Law Governing this Agreement
This Agreement shall be governed by and construed in accordance
with the laws of the State of California.
S518. Prohibition of Legal Proceedings
The Borrower is prohibited from using Grant funds received
under this Agreement, or funds realized as a result of this
Agreement, for the purpose of instituting legal proceedings
against the City or its official representatives.
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S519. Rights and Remedies
In the event any party fails to perform, in whole or in part,
any promise, covenant, or agreement herein, or should any
representation made by it be untrue, any aggrieved party may
avail itself to all rights and remedies, at law or equity, in
the courts of law. Said rights and remedies are in addition to
those provided for herein.
SECTION VI.
ENTIRE AGREEMENT
S601. Complete Agreement
This Agreement contains the full and complete Agreement between
the two parties. No verbal agreement or conversation with any
officer or employee of either party shall effect or modify any
of the terms and conditions of this Agreement.
S602. Number of Pages and Attachments
This Agreement is executed in three (3) duplicate originals,
each of which is deemed to be an original. This Agreement
includes, twenty-two ( 22 ) pages and
two ( 2 ) attachments which constitute the
entire understanding and agreement of the parties.
(W - 21 -
IN WITNESS WHEREOF, the City of San Bernardino and the Borrower have
caused this Agreement to be executed by their duly authorized
representatives on this day of 119_
ATTEST: CITY OF SAN BERN MINO
City Clerk W.B. HOLCOMB, MAYOR
City of San Bernardino
(CORPORATION)
I
BY
Corporate President
ATTEST:
BY
Corporate Secretary
Approved as to form
and legal content: (Witness)
JAMES F. PENMAN
City Attorney
BY
lag:1905J
(Pkg 1105E)
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OWN
ATTACHMENT I
"EMPLOYMENT ACTION PLAN"
Economic Development Program
Employment Action Plan
Statement of Borrower
Borrower does hereby state that the funds resulting from the Loan
Agreement entered into on behalf of the City of San Bernardino (hereinafter
"City") and Borrower shall be used solely for furthering the purpose of the
Economic Development Program (EDP).
The purpose of EDP assistance is to benefit the low and moderate income
residents of the City of San Bernardino through the creation and/or retention
of jobs to said persons. Pursuant to the purpose of the EDP the Borrower
agrees to comply with the following Employment Action Plan:
Borrower understands and agrees that in order to determine that said
program purpose is being met, an Annual Employment Report shall be filled with
T the City. Borrower understands that failure to meet the objectives set forth
in this Employment Action Plan or failure to comply with the requirements of
filing the Annual Employment Report may result in the entire outstanding
balance of the loan plus interest, being due upon written demand by the City,
pursuant to Section 302 of the Loan Agreement and this Statement.
lag:1106E
Economic Development Program
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ATTACIDKBHT II
INSURANCE REQUIREMENTS
(Instructions for completing, executing and submitting Evidence of Insurance
to the City of San Bernardino.)
Insured: Mt. Vernon Hardware
(Contractor, Lessee, Permittee, Borrower, Etc.)
Agreement/Reference No. EDP1642A Date: February 1, 1993
A. INSURED
1. To expedite completion of the insurance requirements, please give
your insurance agent or broker a copy of the Insurance Requirements
Sheet along with these instructions and endorsement forms.
2. If your agreement requires Workers' Compensation coverage and you
have been authorized by the State of California to Self-insure
Workers' Compensation, then a copy of the certificate from the
State consenting to self-insurance will meet the evidence
requirements.
3. All questions relating to insurance should be directed to the
person or office responsible for your contract, lease, permit, or
other agreement. (See items 9 and 10 below.)
B. INSURANCE AGENT OR BROKER
1. Acceptable Evidence -- The appropriate City Special Endorsements
are the preferred form of evidence. No modifications to the form
are permitted. Alternatively, certified copies of the full policy
containing additional insured and thirty (30) day cancellation
notice language will be accepted subject to review by the City
Attorney. Certificates, Verifications, Memoranda of Insurance and
other non-binding documents submitted along are not acceptable as
evidence of insurance. Binders are acceptable as interim evidence
until policies are available.
2. Multiple Policies -- More than one (1) insurance policy may be
required to comply with the insurance requirements. Endorsement
forms appropriate to your insured's agreement, contract, lease or
permit have been provided.
3. Signature -- Please have an authorized representative of the
insurance company manually sign completed endorsement forms.
Signatures must be originals as the City Attorney will not accept
facsimile (rubber stamp, photocopy, etc.) or initialed signatures.
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t.
INSURANCE REQUIREMENTS
Attachment II
4. Underwriter -- The name and address of the insurance company
underwriting the coverage must be noted on the endorsement form.
In the case of syndicates or subscription policies, indicate lead
underwriters or managing agent and attach a schedule of
subscribers, including their percent participation.
5. Document Reference -- Include reference to either the specific City
agreement (bid, contract, lease, etc.) or indicate that all such
agreements are covered.
C. INSURANCE REQUIREMENTS
1. Coverage and Limits -- The coverages and limits for each type of
insurance are specified on the insurance requirement sheet. When
coverage is on a scheduled basis, a separate sheet may be attached
to the endorsement listing such scheduled locations, vehicles,
etc. , so covered.
2. Excess Insurance -- Endorsements to excess policies will be
required when primary insurance is insufficient to comply with the
requirements.
3. Additional Pages -- If there is insufficient space on the reverse
side of the form to note pertinent information, such as inclusions,
exclusions or specific provisions, etc., attach separate sheets and
note this on the endorsement form.
4. Person to Contact -- Completed endorsements, correspondence and
questions relating to the required insurance are to be directed to
the following representatives:
5. Technical Assistance -- Improperly completed endorsements will be
returned to your insured for correction.
6. Delay in submitting properly completed endorsement forms may delay
your insured's intended occupancy or operation.
7. Renewals -- For extensions or renewals of insurance policies which
have the City's endorsement form(s) attached, we will accept a
renewal endorsement or a certificate (with an original signature)
as evidence of continued coverage if it includes the statement that
the insurance protection afforded the City of San Bernardino has
been renewed under the same terms and conditions as previously
approved.
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INSURANCE REQUIREMENTS
Attachment II
C
NAME. Mt. Vernon Hardware DATE: February 1 1993
AGREEMENT/REFERENCE NUMBER: EDP1642A
I
The following coverages noted with an "X" are required with the Combined
Single Limits (CSL) as noted on the right. Unless written exception is
allowed by Risk Management. All coverages must add the City as additional
insured.
Limits
X Worker's Compensation Statutory
_ Employer's Liability $ 100,000
Commercial
X General Liability $1,000,000
( ) Broad Form Property Damage
( ) Personal Injury
( ) Broad form Liability Endorsement
( ) Fire Legal Liability
( ) Garagekeepers Legal Liability
( ) Owned Automobiles
( ) Nonowned Automobiles
( ) Hired Automobiles
Automobile Liability (if auto is used for $
this contract)
— Professional Liability (if applicable) $1,000,000
X Property Insurance 90% value of
building
(Contents at
100% of value)
( ) Extended Coverage
( ) Vandalism and Malicious Mischief
( ) Business Interruption (90 days minimum) $
(All fixed costs
plus payroll)
( ) Crime (inside and outside)
( ) Sprinkler Leakage
( ) Other
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is INSURANCE REQUIREMENTS
Attachment II
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Inland Marine:
i
(Total cost of goods in transit at any one time)
Comments:
I
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lag:1107E
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D E V E L O P M E N T D E P A R T M E N T
OF THE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT PROGRAM
Secured Promissory Note
$ 15,000.00 Borrower: Willard Blakely
DBA: Mt. Vernon Hardware
1286 Mt. Vernon Avenue
San Bernardino, CA 92411
FOR VALUE RECEIVED, Willard_ Blakely
and doing business as Mt, Vernon Hardware
promise(s) to pay the CITY OF SAN
BERNARDINO, through its Development Department, or its successors the sum
of Fifteen Thousand and 00/100 DOLLARS ($15,000.00),
and pay the interest on the unpaid principal amount of this note from
March 1, 1993 (date), at the rate of percent ( 7 %) per annum
until both principal and interest are paid.
Payments to be made hereunder are due and payable on the first day of
each month for Sixty ( 60 ) months. The first
monthly payment shall be made on March 1. 1993 Payments
shall continue thereafter for a period of _Fifty-Nine ( 59 )
months, until February 1, 1998 (date). Each monthly payment shall
be in the amount Two-hundred Ninetv Seven Dollars and Two Cents
DOLLARS ($297.02 ).
Each of the payments due to by the terms of this note shall be paid
in lawful money of the United States and shall be delivered to the
principal offices of the Development Department of the City of San
Bernardino, 201 North "E" Street, Third Floor, San Bernardino, California,
or to such other place as may from time to time be designated by the
Executive Director of the Development Department. There shall be a $15.00
penalty for any payment received on or after the fourth (4th ) day of the
month in which such payment is due.
Borrower(s) reserve(s) the right to prepay at any time all of part of
the principal amount of this note without the payment of penalties or
premiums. All payments on this note shall be applied first to the
interest due on this note, then to principal due on this note, and the
remaining balance shall be applied to late charges, if any. Except as
Provided below, all monthly payments on this note shall be credited as of
the due date thereof without adjustment of interest because paid either
before or after such due date.
In the event that the Borrower(s) shall fail to make any payment when
due, and if such failure be subsisting on the date of the next installment
all payments then due under this note, together with any accrued interest
and late charges, shall become due and payable at the option of the
Development Department without notice to the Borrower(s). Failure of the
Development Department to exercise such option shall not constitute a
waiver of such default. No default shall exist by reason of non-payment
of any required installment of principal and interest so long as the
amount of optional prepayments already made pursuant to the provisions of
this note equals or exceeds the amount of the requirement installments.
- 1 -
Economic Development Program
Secured Promissory Note
In no event shall the total interest and late charges payable
hereunder exceed the maximum amount of interest permitted under the usury
laws of the State of California.
This promissory note incorporates all the terms and conditions of
that certain Industrial Development Bond (IDB) Agreement by and between
these parties, dated February 1, 1993. Each provision of such Agreement
is hereby made a covenant and condition of this note, breach of which
shall constitute a default remediable as set forth herein for the remedy
of a default in payment of principal and interest.
This note is secured by a Deed of Trust with Assignments of Rents for
real property located at 1286 Mt. Vernon Avenue, San Bernardino,
California 92411.
This note shall become immediately due and payable in the amount of
the unpaid principal and interest upon a default under any of the terms or
conditions of any security listed above. Whether such default be
voluntary, involuntary, by operation of law or as a result of the
dissolution of the business.
If suit is instituted by the Development Department to recover on
this note, the Borrower(s) agree(s) to pay all costs of such collection,
including reasonable attorneys' fees and court costs.
IN WITNESS WHEREOF, this note has been duly executed by the
undersigned.
OWNER(S) DEVELOPMENT DEPARTMENT
Willard Blakely
DATE
DATE WITNESS
DATE
LAB:tnt:0123F
Rev. 08/1991
- 2 -
Ii
D E V E L O P M E N T D E P A R T M E N T
OF THE CITY OF SAN BERNARDINO
TRUTH IN LENDING DISCLOSURE STATEMENT
Account No: EDP1642A Date: February 1, 1993
------------------------------------------------
AMOUNT FINANCED FINANCE CHARGES TOTAL PAYMENT ANNUAL PERCENTAGE RATE
$ 15,000.00 $ 0 $ 17,821.03
------------------------------------------------
NO. OF MONTHS 1ST PAYMENT DUE 1ST PAY. AMT REMAINING PAYMENT AMT.
UPON TITLE
60 TRANSFER 03/1/93 $ 297.02 $297.02/Month
-----------------------------------------------
ADMINISTRATION FEES: CONTRACT AMOUNT AMOUNT FINANCED
Loan Fee: $150.00 Administrative Fees
will be subtracted
Credit Report: $ 0 from total amount
Title Policy: 2 0
financed.
Reconveyance Fee: L75--
Total Fees: $475.00
-------------------------------------------------------------
LOAN IS SECURED BY DEED OF TRUST OF BENEFICIARY:
EVEN DATE COVERING PROPERTY LOCATED AT:
1286 Mt. Vernon Avenue City of San Bernardino
San Bernardino, California A Municipal Corporation
------------------------------------------------- - ---- --
Note: ALL PAYMENTS ARE DUE THE FIRST (1ST) DAY OF EACH MOTH. LATE CHARGE OF
FOUR PERCENT (4%) OF YOUR LOAN PAYMENT WILL BE ASSESSED AFTER MONTH DUE
DATE. NO PARTIAL PAYMENTS ARE ACCEPTABLE.
----------------------------------------------
Willard Blakely Date
Witness Date
lag:1105E
�,
Loa. ember: EDP1642 ,
Recording Requested By:
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
201 NORTH "E" STREET, THIRD FLOOR
SAN BERNARDINO, CA 92401-1507
When Recorded, !fail to:
Same as Above
SUBSTITUTION Or
TRUSTEE AND DBHD OT RECOIIVEZANC6
The undersigned, as the owner(s) and holder(s) of the Note secured
by Deed of Trust dated November 24, 1986, made by WILLARD AND ELSIE BLAKELY,
HUSBAND AND WIFE AS JOINT TENANTS (Trustor), to FIRST AMERICAN TITLE INSURANCE
COMPANY, A CALIFORNIA CORPORATION (Trustee), for the CITY OF SAN BERNARDINO
(Beneficiary), which Deed of Trust was recorded DECEMBER 2, 1986, as
instrument number 86-362513, Official Records of San Bernardino County. CITY
OF SAN BERNARDINO, hereby substitutes CITY OF SAN BERNARDINO, whose address is
300 North "D" Street, California 92418 as Trustee in lieu of the Trustee
herein.
Said Note, together with all other indebtedness secured by said Deed
of Trust, has been fully paid and satisfied; and, as successor Trustee the
undersigned does hereby RECONVEY WITHOUT WARRANTY, TO THE PERSON OR PERSONS
LEGALLY ENTITLED THERETO, all estate now held by it under said Deed of Trust.
This day of , 19_.
CITY OF SAN BERNARDINO
Deputy City Clerk Date
PUBLIC AGEIICY PORN Or A
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On , before ne
a Notary Public in and for said State, personally appeared
, personally known to me (or proved to me on the basis
of satisfactory evidence) to be the person who executed the within instrument
as Deputy City Clerk of CITY OF SAN BERNARDINO and acknowledged to me that the
CITY OF SAN BERNARDINO executed it.
WITNESS shy hand and official seal.
Signature:
(name typed or printed)
tnt:0033d
Rev. 08/1991
Order No. -
Escrow N
Loan No. EDP1642A
WHEN RECORDED MAIL TO:
City of San Bernardino
Economic Development Agency
201 North "E" Street
San Bernardino, CA 92401
SPACE ABOVE THIS UNE FOR RECORDERS USE
DEED
OF TRUST WITH ASSIGNMENT
OF RENTS
(SHORT FORM)
This DEED OF TRUST,made February 1, 1993
between
Willard Blakely and Elsie Blakely, Husband and Wife as Joint Tenants
herein called TRUSTOR,
whose address is 1286 Mt. Vernon Avenue, San Bernardino, California 92411 and street)FIRST AMERICAN TITLE NSURANCE COMPANY,a Califomia co (�M)
_ corporation,herein called TRUSTEE,and
(state)
City of San Bernardino, a municipal corporation
WITNESSETH:That Trustor Grants to Trustee in Trust,with Power of Sale,that ro r herein called BENEFICIARY,
Court P petty in the
County of San Bernardino ,State Of California,described as:
Lot 14, TRACT NO. 1952, HOWARD AND HAYS SUBDIVISION, in the City of San Bernardino,
County of San Bernardino, State of California, as per plat recorded in Book
28 of Maps, page 23, records of said County.
M a.4 wfn the pro�and profs IMrW.Ktfoa fowo,,w b the'04,power and auelafty hereinafter,a„e,t b and tanfarred
t1M1b.1esUee and
For an P"poes a Seox%(1)Po rnent a the sum a 8 15,000.00 up he'1�'b eolact and apply suer,
by reference e o even data herewith made(3T ti riem a awn oho sums and Wiest thereon wMCn renewais chorea.and�)the�p each eS,eemem o Trustor�note a
by as of a contained heron Pa
bya Prom,aory note a notes rao"that they am"cLwad by this Deed a Trust. noy Ioreeher W brad b Trustor.a It suoceseas of wigns,when incorporated
10 perform and be bwW Inn Deed n Truef and with respect v so proPSny abw�descnbed.Trustor er<preuty makes each and as o the agreements,and adopts and agrees
in subdvisgn B a the each and an a the bnna and provieiora set forth in auodmeion A.and f n mutually agreed tlof each and an of the bans and
in the office or ar cauvy reco,de, 7yesoor�y when wed c*er?y August 17.1964,and in an other coumlas August i a.1964 In the book pr1 1oru set forth
COUNTY arol»M n bcefad.noted Wow opposite the home a eua,co„uy,,ornery. and at ar paps a official Records
Aarheda PAGE COUNTY BOOK PAGE COUNTY
e � 130-31 us GU 713 ref BOOK PAGE 79 COUNTY BOOK PAGE
sultil {ass e37 110 1020 376 S" i � 7162
133 eie Lassen Plurnsa 168 1207
C 11� 613 �aAnpafas T-3M 074 R IM 37711 iq Sonorna 2067 1287 !27
338 8008 /2e
Contra Cosa 46U �1 March 14„49 122 Bheinn B�wrKyerdln0 �3 e06 �1�w 1670 566
Dal Nora 101 bee 0 e0 ion Fnnelaoo A-0W p6 iuttr ' 685
Pnt�do � on 1680 Be Son Joaquin u'7 193
Gann sm 4 3 YoOOe 181 p Ban Luis 01 1311 137 W 106 �
/NNtfbld! 488 76 tYorq p 302 Ban Mateo 478 178 AfoAra a 2;� ��
r11PrW 11801 7001 Nap x� p Can 1065 M1 WM"'a 2607 237
168 672 Nevada 963 7M Banta Cna 1000 � G 76s /8
Kern 3756 680 Grange 7162 is Son D1 800 633 308 03
anal)+nw b and biro ao Wm—f— ~^DSO {FRIES 6 Boos/bee,tlbye tea77a
in me courses,and printed an aerie r�' aide j wthe y wB oofte,described MSo tl Wreemenb.Mmr and provisions conned in Wd tuDd visions A are B.(Wem cat herem and b yet forth at Nrgth Herein,aro Behekaary may ch"i for a,b"l"ot a repardnp ab obkpation�hereby.provided the peaaMrrMor toes e><ceed the ,mtlalklrived
M law. as
The,alders p,ed Trtator,tapusets ace a copy d any noon a dabre and any noses d ace henta,der be n04ed to Own r his address hi minbefore set forth.
STATE OF CALIFpgNIA ) Sipnatun 0/fltutor
COUNTY OF San Bernardino �'
On
before ma, Willard Bla sly
t "Y APPearad willara Blakely an
Elsie B a e y Elsie Blakely
Personal y known to me (a PrOVad to the on the basis of satisfaettx I
aNdarloe)to be the Persons)whose nrno(s)Wan subaaibed b the within
1t1ib1al1r1t and SAY10*1sdged to nN that he/sfia/thoy al(atuted the acme in
f t s"hafNlak audlatzed c+iP+ctty0se),and that by h4,'hsrVW signature(s)on
ft b1ttr MWM the Person(s)Or the entity upon behaff of which the parsons)
Wed,exaaRad the Inttrlanant.
WrrNESS my hand and officio)seal.
Signature
(Thn area for otfcial notarial"so 1158(Rev.1/91)
,, i