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HomeMy WebLinkAboutRS1- Development Department L VELOPMENT DEPARTME114T OF THE CITY OF SAN BERNARDINO Cl REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: JERSEY SPORTS BAR Executive Director DATE: July 16, 1993 ------------------------------------ - - ------ - - - - - ------------------------------------------------------------ Synopsis of Previous Commission/Council/Committee Action (s): On March 8, 1993, the Community Development Commission granted conceptual approval of a $1,188,300 loan guarantee and a ten (10) year extension of a $923,000 tax-exempt Industrial Development Bond. On March 22, 1993, the Community Development Commission authorized initial extensions of the original Industrial Development Bond (IDB), an additional nine (9) year extension of the IDB, the sale of the IDB, the execution of an Owner Participation Agreement and Loan Guarantee in the amount of$1,125,000 and a short- term loan of$25,000 to the proposed borrower. -------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Develo_nment Commission) MOTION: That the Community Development Commission approve the form of an Owner Participation Agreement between the Redevelopment Agency, Colorado Consulting Limited Liability Company and Fox Bros., a general partnership and a $1,125,000 Loan Guarantee with Valley Bank, covering costs associated with the Jersey Sports Bar project; also that the Executive Director be authorized to execute all documentation necessary for the implementation of the project. Adm 'strator KENNE' J- REND RSON Executive Director -------------------------------------- - - -- Contact Person(s): Kenneth J. Henderson/John M. Wood _ - - - ------------------------------------------------- - _______________ Phone: 5081 Project Area(s): Central C�North (CCN) Ward(s): One (I) Supporting Data Attached: Staff Repo_rt; Development Fact Sheet; Owner Participation Agreement FUNDING REQUIREMENTS: Amount: $1,125,000 Cont Liab Source: Guarantee Budget Authority: Requested ----------------------------------------------------------------------- Commission/Council Notes: ----------------------------------------------- - --------------------------------------------------- ------------------------- JH:JMWaag:jersey.agd - ---------------- (W COMMISSION MEETING AGENDA MEETING DATE: 07/19/1993 \' f Agenda Item Number: DE ' ' LOPMENT DEPARTN� " NT STAFF REPORT ----------------------------------------- Jersey rse.y S orts Bar On March 8, 1993, the Community Development Commission granted conceptual approval of a $1,125,000 loan guarantee for Heritage Investors ("Heritage"). The loan guarantee will assist Jersey Sports Bar ("Jersey"), pursuant to business attraction efforts aimed at securing a quality anchor tenant for the historic Heritage Building. Also approved in concept was a ten (10) year extension of a tax-exempt Industrial Development Bond ("IDB"), in the original amount of $923,000. On March 22, 1993, the conceptual approvals were formally ratified. By way of recapitulation, Jersey is an upscale restaurant and billiards parlor which will provide dining and entertainment from 6:00 a.m., until 2:00 a.m. It is precisely the type of elegant attraction that staff has worked for years to locate in downtown San Bernardino and it will help to fill the void caused by the closing of Court Street West. Jersey projects gross annual sales of $5 million, a staff of eighty (80) and new property and utility tax increment revenue. The capture of this important tenant will also prevent another downtown office building from becoming vacant. Financing has been arranged through Valley Bank of Moreno Valley. As it turned out, the IDB which was to have been extended will not be. Instead, it will be paid off from loan proceeds at the close of escrow. In addition, as indicated in the motion, the agreement will be between the Agency and Colorado Consulting Limited Liability Company (Russ Hatle) and the Fox Bros., a general partnership (Ray Fox) rather than Heritage Investors, as identified in the March 22, 1993 staff report. The modifications result from the transaction the proposed extension of the tax-exempt IDB financing to conventional financing changing from Ample security for the Agency has been negotiated with the borrowers. Personal guarantees will be executed by Russ Hatle, for Colorado Consulting Limited Liability Company and Ray Fox, for Fox Brothers. Moreover, an appraisal was recently completed on the subject property, placing the value at $1,700,000. The resulting loan-to-value ratio of sixty-six percent (66%) is well within acceptable current lending standards. In terms of project timeframes, Jersey has begun the demolition of old tenant improvements and wants to complete the project as soon as possible. To assist, staff is requesting that the Executive Director be granted the authority to execute all implementing documentation. Draft documentation has been attached to this staff report. ----vIW:----jersey--- ----------------------------------------------------------------------------------------------- COMMISSION MEETING AGENDA MEETING DATE: 07/19/1993 Agenda Item Number: ,tiJ DEVELOPMENT DEPA. .4ENT STAFF REPORT Jersey Sports Bar July 16, 1993 Page Number -2- ---------------------------------------------------------------------------------------------------------------------- In conclusion, staff feels that Jersey would make an excellent addition to the existing downtown business mix. As an upscale restaurant, it helps to satisfy the continuing need for additional eating establishments in the City's core, while adding significantly to the City's sales tax revenues and employment base. Moreover, the proposed assistance will prevent yet another downtown office building from becoming vacant. Attached for your reference is a fact sheet on the subject project which was prepared by Heritage and a copy of the draft Owner Participation Agreement. Staff recommends adoption of the form motion. vv k( "'1 KENNETH I ENDERSON, Executive Director Development Department ------------------------------- ___ ---------------------------- ------------------------ - JH:JMW:1agJersey.agd COMMISSION MEETING AGENDA MEETING DATE: 07/19/1993 Agenda Item Number: le- / HERITAGE OFFICE BUILDING ECONOMIC DEVELOPMENT AGENCY LOAN GUARANTEE Fact Sheet Furoose of loan �uarantPP - To provide funding to complete tenant improvements, remodeling and improvement to 1993 ADA standards of the historic Heritage Office Building located at 440 West Court Street in San Bernardino. Fuildine Tenant -Jersey's Sports Grille, an upscale restaurant and billiards club, which will occupy the property on a ten year lease, only if the loan guarantee is completed. _T�nant's ment Invest -The tenant will invest over one 51,000,000 in tenant improvements in addition to that portion of loan proceeds which will be used to fund owner's tenant improvements. Ilse of Fundc - See the attached Source & Use of Funds. `�- q, ✓, ���C ec' C Pro r V 1 - An appraisal has=E been completed appraising the value of the property with all a tenant improvements in place and the building occupied by Jerseys Sports Grille. An economic analysis of the project has been completed by Community National Corporation which indicates the following value: Economic value - $1,695,000. Replacement cost - $2,075,000. C _Loan to value - 67% y r m I n - 1.44 to 1. $eneflts to the Cir., - The city will gain a long sought feature for its downtown redevelopment area which will attract a clientele of urban professionals. Not only will the first class food operation serve breakfast and lunch, but also the restaurant serving dinner and upscale billiard club activities will attract activity to the downtown center after business hours. Additionally, the Agency will gain tax increment from the improvements to be made to the building and the increased assessed value. Finally the City will gain sales tax revenue from the taxable sales made on premises. m rovements n hP made W rhP real ro�- Install new bathrooms on all three floors to meet 1993 Federal Government mandated ADA standards. Make all other necessary modifications and repairs necessary to meet federally mandated 1993 ADA standards. Install new heating, ventilating, air conditioning system. �_ Install new three floor glass elevator. Restore all marble, brass and other original elements of the building. Maintain the original 1929 hand painted ceiling. Install complete tenant improvements for restaurant and bar operation. they outetanrt;no fP]r,M - Marble floors, hand painted art deco ceiling from 1929, brass bannisters, classic baroque architecture. Borrower- The borrowing partnership is comprised of the locally owned and operated Fox Bros., a partnership and a Colorado investment company which is mana ed b the locally owned and operated Community National Corporation. Community National by has successfully completed more than 60 acres of land development and more than square feet of industrial and office space within the redevelopment areas of the C ty of'Sa�n Bernardino. Projects completed by Community National Corporation have contributed millions of dollars of tax increment revenue to the Agency. 1 1-r— al s nnon - The project is supported by combined net worth in excess of$3,000,000. Financial statements have been provided to the Agency financial consultant on: The borrowers. The tenant. The tenants General & Limited Partners. hOonaes/de/WndS 9 JUL 16 '93 02:55PM P.P RECORDING REQUESTED 8Ys' REDEVELOPMENT AGENCY OF THE CITY OF BAN BERNARDINO AND WREN RECORDED RETURN TO: SABO 6 GREENr a Professional Corporation Suite 400 6320 Canoga Avenue Woodland Hills, California 91367 (space Abovm for R®corder,%s Use) RE O M NT AGENCY OF THR CITY OR SpLN IIT.DAt 11DTr�� g_ AR_TIOI�ATIO�P AgRBE�'��+�+ HERITAGE OFFICE BUILDING, LTD. BY and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and HERITAGE OFFICE BUILDING, LTD. , a California Limited Partnership JUL 16 '93 02:55PM TABLE OF CONTENTS PAU I. [100] SUBJECT OF AGREEMENT A. [101] Purpose Of Agreement 1 B. [102] The Redevelopment Plan 2 C. [103] The site . . . . . . .. . . 2 D. [104] Parties to the Agreement . . . . . . . . . 2 1. (105] The Agency . . . . . . . . . 2 2. (106) The Participant . . . . . . 3 3. [107] Prohibition Against Change in Ownership, Management and Control of the Participant . . . 3 4. [108] Benefit to Project Area . . . . . , , 4 II. [200] AGENCY ASSISTANCE (201] Agency Guarantee 5 III. [300] IMPROVEMENT OF THE SITE A. (301] Improvement by Participant 6 1. [302] Scope of Development 6 2. [303] Cost of Construction 6 3. [304] Renovation and Rehabilitation Schedule 6 4. [305) Bodily Injury and Property Damage Insurance 7 5. [306) City and Other Governmental Agency Permits . . . . . . . . . . a 6. [307] Rights of Access . . . . . & 9 7. (308] Local, state and Federal Laws . . . . 9 8. [309] Antidiscrimination During Construction . . . . . . . . . . . . 10 B. [310) Taxes, Assessments, Encumbrances and Lions . . . . . . . . 10 C. (311] Prohibition Against Transfer of the Site, the Buildings or Structures Thereon and Assignment of Agreement . . . . . . . . . 10 D. [3121 Agency Guarantee; Deed of Trust, Personal Guarantee of Participant Obligation . . . . . . . . . . . . 11 1• [313] Agency Guarantee . . . . . . . it 2• [314] Deed of Trust . . . . . . . . . . . 11 3• [314A] Personal Guarantee of Participant Obligation . . . . . . , • 12 (i) JUL 16 '93 02:56PM 49 (314B) Payment of Outstanding Taxes, Assessments and Fees on the Project 12 E. [315] Mortgage, Deed of Trust, Sale and Lease-Baok Financing; Rights of Holders . . . . . . . . . . . . 12 1. [316] No Encumbrances Except Mortgages, Deeds of Trust or Sale and Lease-Back for Development 12 2. [316A] Payment of Bank Fees 13 F. [317] Right of Agency to Satisfy Other Liens On The Site . . . . . . 13 G. [318] Release of Deed of Trust 14 H. [319] Certificate of Completion 14 IV. [400] USES OF SITE A. [401] Uses - Covenants Running With the Land 15 B. [402] Maintenance of the Site . . . . . . . . . 1? C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction . . . . 18 V. [500] GENERAL PROVISIONS A. (501] Notices, Demands and Communications Between the Parties . . . . . . . . . 19 E. [502] Conflicts of Interest; Nonliability 20 C. [503] Enforced Delay; Extension of Tunes of Performance . . . . . . . 20 D. [504] Inspection of Books and Records . 21 VI. [600] DEFAULTS AND REMEDIES A. [601] Defaults - - General 22 B. [602] Legal Actions . . . . . . . . 22 1. [603] Institution of Legal Actions . . . . 82 2. [604] Applicable Law . . . . . . . . . . . 23 3. [605] Acceptance of Service of Process 23 C. [606] Rights and Remedies are Cumulative . . . 23 D. [607] Inaction Not a Waiver of Default . . . . 23 E. [608] Ramadies . . . . . . 24 . . . . . . . . . 1. (609] Damages . . . . . . • 24 VII. [700] SPECIAL PROVISIONS A. [701] Submission of Documents to Agency for Approval . . . . . 24 B. [702] Successors in Interest . . . . . . . . . 25 (ii) JUL 16 193 o2:56PM A P.5 VIII. [800] ENTIRE AGREEMENT, WAIVERS . . . . . . 25 i IX. [900) TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY A. [901] Time for Acceptance . . . . . . . . . . . 26 6 ATTACHMENT NO. 1 - LEGAL DESCRIPTION OF THE SITE ATTACHMENT NO. 2 - AGENCY GUARANTEE AGREEMENT ATTACHMENT NO. 3 - SCOPE OF DEVELOPMENT ATTACHMENT NO. 4 - SCHEDULE OF PERFORMANCE ATTACHMENT NO. 5 - DEED OF TRUST WITH ASSIGNMENT OF RENTS ATTACHMENT NO. 6 - CERTIFICATE OF COMPLETION ATTACHMENT NO. 7 - PERSONAL GUARANTEE (ifi) a2S-� JUL 16 193 02:56PM P.6 88x0\0008\DCC\3 7\16\93 210 df 91P ER PARTICIPAmmy AGR F'bt�ur+ THIS AGREEMENT IS ENTERED INTO this day of 1993, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency„) , and HERITAGE OFFICE BUILDING, LTD. F a California Limited Partnership (the "Participant,i) . Agency and Participant hereby agree as follows: I. [100] SUBJECT OF AGREEMENT A. {101) R-uroose of AcMtemen The purpose of thin Agreement is to effectuate the Redevelopment Plan for the Central City North Redevelopment Project (the "Redevelopment Plan") by providing for Agency assistance to Participant in connection with the improvement of the Site, as hereinafter defined, which ig located within the Central City North Redevelopment Project Area (the "Project Area") and which improvements Will provide for economic development which will directly benefit the Project Area. The completion of the improvements on the Site pursuant to this Agreement is in the vital and best interests of the City of San Bernardino, California (the "City") and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements under which the Redevelopment Plan has been undertaken. JUL 16 193 02:57PM P.7 B. [102] The Re eve pment Plan The Redevelopment Plan was approved by Ordinance of the Common Council of the City of San Bernardino; said ordinance and the Redevelopment Plan as so approved are incorporated herein by reference. The Redevelopment Plan provides for the undertaking of redevelopment activities. C. [103] The Site The Site is that certain real property generally located at 440 West Court street in the City of San Bernardino and as more fully described in the "Legal Description of the Site", which is attached hereto as Attachment No. 1 and is incorporated herein by this reference. D. [104] parties to thggrent 1. [105] T e encx The Agency is a public body, corporate and politic, _ exercising governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, ,1 gfiq.) The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino and any assignee Of or successor to their rights, powers and responsibilities. 2 r � JUL 16 '93 02:57PM P.8 2. [106] Th_ PArt?,ci rant The principal office and mailing address of the Participant for purposes of this Agreement is 1731-A orange Tree Lane, Redlands, California 92374, Attn: Russell Hatle. 3. [107 j Prohib �ae i r own rs in Manacement and Control of he ka tic pant The qualifications and identity of the Participant are of Particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, Withhold or deny at its discretion which discretion shall be exercised reasonably and in good faith. In the event Of such transfer or assignment: (1) the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency; (2) the original Participant shall remain fully responsible for the performance and liable for the obligations of the Participant pursuant to this Agreement; and (3) any guarantees provided to assure the performance of the 3 JUL 16 '93 02:58PM �. P.9 Participant's obligations under this Agreement shall remain in full force and effect. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure to the benefit of the Participant and the permitted successors and assigns of the Participant. Whenever the term "Participants' is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 107 shall terminate and be of no further force and effect upon the repayment in full of the _ loan to which the Guarantee (as hereinafter defined) applies. 4. [108] Benefit to Proje� Area Agency has determined that the development of the Site in accordance with this Agreement will eliminate blight and provide a benefit to the Project Area through an increase in sales tax revenues. 4 /s' 1 JUL 16 193 02:5BPM P.10 II. [200] AGENCY ASSISTANCE A. [201] Aaencv Guaran ee Agency agrees to guarantee (the "Guarantee") repayment by Participant of a certain loan in favor of Valley Bank, a California corporation, or such other lender as the Agency may approve in writing, which loan is to be in a principal amount equal to One Million One Hundred Twenty Five Thousand Dollars ($1, 125,000) (hereinafter referred to as the "Participant Loan") , as follows. The proceeds of the Participant Loan are to be used by Participant to repay an existing loan on the site, pay certain fees and taxes owed in connection with the Site and to ca useAth® renovation of an existing building on the Site, for the creation of a billiards club and restaurant (the "Project") . The Guarantee shall be reflected in a certain Guarantee Agreement in favor of the lender, as provided in Section 312 hereof, and shall be in a form substantially similar to Attachment No. 2 attached hereto and incorporated herein by reference. In consideration for the Agency's provision of the Guarantee, the Participant shall cause the completion of the Project in accordance with the Schedule of Performance (See Section 304) and shall execute a Deed of Trust conveying title to the site in favor of the Agency as provided in Section 314 hereof. The Agency's obligation with respect to the execution and provision of the Guarantee shall become binding only upon receipt by the Participant of all necessary entitlements and permits as provided in section 306 hereof, and at such time as the Agency has 5 it JUL 16 '93 02:58PM 4 P.11 received an executed original of this Agreement and a Dead of Trust conveying title to the Site. III. [300] IMPROVEMENT OF THE SITE A. [3 01] �mnrOVemer,t by Pa tic+ra++* Participant and Agency agree that the central purpose of this Agreement is to provide for the renovation of the existing building on the Site in order to increase business and sales related to the Site by conforming the Site for use as a billiards club and restaurant. 1• [302] Scone of beve�onment The Site $hall be developed by Participant as provided in the "Scope of Development's, which is attached hereto as Attachment No. 3 and is incorporated herein and in a manner consistent With the provisions of the Redevelopment Plan. Z• [303] Cost of Consi-rur�-i.,,, The cost of constructing the project shall be borne solely by Participant. The Agency shall have no obligations, other than as expressly set forth herein, with respect to the funding of the project. 3• [304] Renovaf_on a d Rflhabilitation S horn��Q Upon execution of this Agreement, Participant will promptly begin and diligently prosecute to completion the renovation of the Project. Participant shall begin and complete - 6 or I JUL 16 193 02:59PM P.12 r all renovation and development of the Project within the times specified in the "Schedule of Performance" which is attached hereto as Attachment No. 4 and incorporated herein. Participant shall strictly conform to all time requirements and limitations sat forth in this Agreement. 4. [305] sodily Iniu v and Prop®,rty Dsmaae Insurance Participant shall defend, assume all responsibility for and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys, fees and costs) , which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or _ after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit, including contractual public liability, and shall protect City and Agency from claims for damages arising out of Participants activitiee under this Agreement a$ described hereinabove, until two (a) years after the expiration of the Guarantee. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions 7 - TLLL 16 193 02:59PM `ot P.13 Of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement Of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on the Site or otherwise pursuant to this Agreement carries workers, compensation insurance as required by law. 5• [306] C v and Other Ce r rn,ne.►as� Actencv per,,,i+e The Guarantee shall be contingent upon the Participant, at its own expense, securing or causing to be secured, any and all permits for all necessary on-site and off-site improvements which may be required by the City or any other governmental agency having jurisdiction over such construction, development or work. - 8 - / � r JUL 16 193 03:00PM P.14 Nothing contained in this Agreement shall be deemed to be an approval by the City of any application or permit required to be obtained by Participant from the City. 64 [3 07] Rights o AM99 For the purpose of assuring compliance with this Agreement, representatives of Aganoy and the City shall have the right of access to the Site, without charges or fees, at normal construction hours during the period of work for the purposes of this Agreement, including, but not limited to, the inspection or e the work being performed in constructing the improvements, so long as they comply with all safety rules. such representatives of Agency or of the City shall be those who are so identified in writing by the Executive Director of Agency. Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the city as referred to in this Section 307 and resulting from the gross negligence or willful misconduct of the City or Agency. This Section 307 shall not be deemed to diminish or limit any rights which the City or Agency May have by operation of law irrespective of this Agreement. 7• [308] local, 6tatcs and L"WA Participant shall carry out the Project and all related activities on the site in conformity with all applicable laws, including all applicable federal and state labor standards; provided, however, Participant and its contractors, successors, assigns, transferees and lessees are not waiving their rights to contest any such laws, rules or standards. Participant and its 9 - b ,fir ! JUL 16 '93 03:00PM P.15 contractors and gub-contractors shall pay prevailing wages to all employees with respect to the Project. a. [309) idiscrimina i nn nurj g COria�,� ��t inn Participant, for itself and successors and assigns, agrees that in the construction of the improvements provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [310] Taxes AS9eSam�ellt9 E`pu ranrs� 8rid L�en� Prior to expiration of the Guarantee, Participant shall not place or allow to be placed on the Site or any part thereof any mortgage, trust deed, encumbrance or lien without the exprogg prior written consent of the Agency. Such written consent shall not be unreasonably withheld to the extent the Participant enters into a loan agreement for the construction or permanent financing related to the Project which shall be executed herewith. C. [311J rehibition Aaa�nst Tran�efe.r �� the lit g-th@ Buildsnas or s ructures h�*reon and As i of Aarera,n®n Prior to expiration of the Guarantee, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, which approval shall not be unreasonably withheld, make any total or partial gale, transfer, conveyance, ass gnme t or lease of the whole or any pert of the 10 - _i JUL 16 193 03:01PM P.16 Site or of the buildings or Structures on the Site. This prohibition shall not be deemed to prevent a transfer expressly permitted pursuant to Section 107 of this Agreement, or the granting of temporary or permanent easements or permits to facilitate the development of the Site. In addition, Participant agrees the lease which shall be entered with the tenant which shall occupy the Site for the operation of a billiards club and restaurant shall be for a period of ten (10) years, subject to two five (5) year options. D. [312] Gu tee• Deed of Trust: pernnnal Guarantee of Participant Ob iaat n*+ 1. [313] A ®ncy Gua antee The Agency shall execute the Agency Guarantee in substantially the farm as attached hereto as Attachment No. 2, which Agency Guarantee shall be in favor of the lender described there n. T e Agency's obligation to guarantee the loan to the Participant for the purposes of completing the Project shall be limited to an amount equal to One Million One Hundred Twenty rive Thousand Dollars ($1,125,000) . In consideration for providing the Agency Guarantee, the Participant shall pay a guarantee fee of two percent (2%) of the Note secured by the Agency Guarantee. 2. [314 j De d o Truss} In consideration for the Agency's execution and provision Of the Agency Guarantee, Participant shall execute a Deed of Trust in the form , f Attachment No. 540 attached hereto and incorporated herein by this reference. Participant shall cause to be prepared, - 11 - JUL 16 '93 03:01PM P.17 and shall pay all costs and fees in connection with issuance of, a t tle policy for the Project, acceptable to the Agency. Said Deed of Trust shall be subordinated to such financing as the Agency may approve in writing for the purposes of completing the Project. 3. [314A] Personal Guarantee of Participant Obliaation in consideration for the Agency's execution and provision of the Agency Guarantee on behalf of Participant, Russell Hatle,A Raymond Fox, Sam Fox and Hyman Fox, as individuals, shall execute a personal guarantee in the form of Attachment No. 7, attached hereto and incorporated herein by this reference. 4. [314B] P�lrmen - of Ou standing Taxes ses6menta §md Fees on the roiect In consideration for the Agency's execution and provision of the Agency Guarantee, Participant shall cause all outstanding _ and unpaid taxes and assessments, including City parking fees, on the Project to be paid and brought current. E. [315] Mertaagg, Deed of T ust. S le and Lease-Bank Finanoina• Ricfhts of Holders 1. [316] No Encumbra cas ortgagee Deeds f Trust or Sale and Lease Back for Develo ment Participant intends to obtain, and Agency agrees thereto, a loan for the undertaking of the Project in the approximate amount of $1,125,000 which loan shall has been approved by the Agency and dWAMM 12 JUL 16 193 03:01PM P.18 shall be executed herewith. Participant shall not enter into any conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is related to the Project and is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. Approval of such other conveyance or lien for financing by the Agency shall not constitute a subordination of the Deed of Trust to such conveyance or lien without the express written approval of the Agency. The form of approval by Agency shall be in writing which references this Section 316, executed by the Executive Director of the Agency. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. 2. (316A] Payment of Dank Fees Participant shall pay all loan origination and continuation fees and any and all other fees associated with the loan. F. (317] Eight of Agenay to Satisfy other igns On The Site Prior to the completion of the Project, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than fifteen (15) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on the Site which are not otherwise permitted under 13 JUL 16 193 03:02pM P.19 this Agreement, Agency shall have the right but not the obligation to satisfy any such liens or encumbrances and to seek indemnification therefor from the participant. G. (318) ,gelease of Deed of Trust Upon repayment in full of all sums owed under the Participant Loan and the expiration of the Guarantee, Agency agrees to reconvey the Deed of Trust. upon the recording of a reconveyanco of the full Deed of Trust, any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the site shall not, as a result of such ownership, lease or acquisition, incur any obligation or liability under this Agreement except that such party shall be bound by the covenants set forth in Section 401 of this Agreement, which shall be applicable, each according to its terms. Regardless of Participant's ability to complete construction of the Project, Participant agrees to repay the Participant Loan applicable to the funding of the Project in full at such times and as provided in the applicable Participant Loan documents and in no event later than within nine (9) years of the date of execution of this Agreement. A failure to do so within thirty (30) days of Agency's written demand shall constitute a material breach of this Agreement and shall entitle Agency to declare Participant in default, and to foreclose upon the Deed of Trust, and/or to exercise any other remedies available under this Agreement, the Deed of Trust or at law or in equity. 14 JUL 16 '93 03:02PM P.20 H. [319] Certif;ca a toj Comglet on. The Agency, its successors and assigns agree that upon the full compliance by the Participant with the terms of this Agreement which pertain to the construction of the Project upon the site, and following completion of the Project, the receipt by the Agency of a written request from the Participant for a Certificate of Completion and notification that the Project is completed, the Agency shall provide promptly and furnish to the Participant a Certificate of Completion, substantially in the form as attached hereto as Attachment 6, certifying that the construction of the Project, as required pursuant to this Agreement, has been completed to the satisfaction of the Agency, its successors and assigns. Said Certificate of Completion may be executed by the Executive Director of the Agency without further formal approval by the Community Development Commission. IV. [400] USES OF SITE A. [401) Uses - CQgenants Running-With the Land The Participant covenants and warrants that Participant shall develop improvements on the site in accordance with the Scope of Development. participant covenants to develop the Site in conformity with all applicable laws. The covenants of this paragraph shall run with the land. Participant covenants by and for itself and any successors in interest 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, age, r�C / JUL 16 193 03:03PM P.21 handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site. The foregoing covenants shall run with the land. All deeds, leases or contracts pertaining to the site shall contain or be subject to substantially the following nondiscrimination or non-segregation clauses: 1. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, 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, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or heir, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendee* in the land herein conveyed. The foregoing covenants shall run with the land.,, 16 JUL 16 193 03:e3PM P-22 2. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, that this lease is made and accepted upon and subject to the following conditions: "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, handicap, age, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practices or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." 3 . In contracts: "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, age, handicap, ancestry, or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number use or occupancy of tenants, lessees, subtenants, sublessees or vendeas of the premises." - 17 - JUL 16 '93 03:04PM P.23 B. [4021 Mai ntenazme of tha Site Participant shall maintain the Site and shall keep the Site free from any accumulation of debris or waste materials. Participant further agrees to maintain the Site in a neat and attractive manner so as not to, in the reasonable determination of an appropriate officer of the City, be a public nuisance, or be detrimental to the health, safety and welfare of the public, or impair value of property, nd agrees that in the event Participant fails to do so, Agency may enter upon the Site for the purposes of performing necessary and desirable maintenance, that Participant will be responsible for the cost of any such maintenance undertaken by Agency, which shall be paid within thirty (30) days after receipt by Participant of written demand therefor. In addition, the Participant agrees that to the extent it is in violation of the provisions of this section 402, the Agency shall have a right to place a lien against the site in an amount necessary to cover its costs associated with such violation. C. (403] Effect ag yio ati n of t1ja Terms and provisions of this A re ment After co letion of co st ucti_on The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement shall reitsain in effect until the termination date of the Redevelopment Plan unless an earlier - 18 - JUL 16 193 03:04PM +� P.24 date is Specified in this Agreement. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. The Agreement and the covenants shall run in favor of the Agency, without regard to whether Agency has been, remains or is an owner of any land or interest therein in the Site. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS A. [501] N ices Demands and C=muniea_tions Utxoen the partLgg Written notices, demands and communications between Agency and Participant shall be sufficiently given if delivered by hand (and a receipt therefor is obtained or is refused to be given) or dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of Agency and Participant. Such written notices, demands and communications may be sent in the same manner to such other addresses as such party r 19 r i JUL 16 '93 03:o5PM P.25 may from time to time designate by mail as provided in this Section 501. Any written notice, demand or communication shall be deemed received immediately if delivered by hand and shall be deemed received on the tenth day from the date it is postmarked if delivered by registered or certified mail. B. [502] Conflicts of Interest;` xon iabil_ igy No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the city shall be personally liable to Participant, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not pay or give, any third party any money or other consideration for obtaining this Agreement. - 20 � JUL 16 193 03:65PM "Ifts P.26 C. 1503 BAK o eed elan; Extension of Times Q f Perf 9-=A=C In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where delays or defaults are due to: war; insurrections; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; freight embargoes; governmental restrictions or priority; litigation; unusually severe weather; acts or omissions of another party; acts or failures to act of the City or any other public or governmental agency or entity (other than the acts or failures to act of Agency which shall not excuse performance by Agency) ; or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of Agency and Participant. Participant is not entitled pursuant to this section 503 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable temporary or permanent financing for the Site. 21 JUL 16 '93 03:05PM P.27 D. [504] juSROpti on of Eaokcs and Records Agency has the right at all reasonable times and upon reasonable notice to inspect the books and records of Participant pertaining to the Site as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to the Site as pertinent to the purposes of the Agreement. VI. [600] DEFAULTS AND REMEDIES A. [601] Defaults - - gene r�l Subject to the extensions of time set forth in Section 503, failure or delay by any party to perform any term or provision of this Agreement constitutes a default under this Agreement. The party who so fails or delays must immediately commence to Cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. - 22 - JUL 16 193 03:06PM rte, P.28 `%Wo B. [602] ILaa Ac ions 1. [603] Ina i ution of Legal Actions In addition to any other rights or remedies hereunder, Agency or Participant may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Agreement. Any legal actions initiated pursuant to this Agreement or otherwise with respect to this subject matter must be instituted in the Superior Court of the County of San Bernardino, State of California, or in an appropriate municipal court in that county. 2. [604] Appligable Law The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 3. [605] A9centance of Service of Process In the event that any legal action is commenced by any party against another party, service of process on such party shall be made by personal service upon such party or in such other manner as may be provided by law, and shall be valid whether made within or without the state of California. C. [606] Riahts and Remedies Are Cumulative Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different 23 - 1 JUL 16 '93 03:06PM P.29 times, of any other rights or remedies for the same default or any other default by any other party. D. (607) I action Not a Waiver- of Default Any failures or delays by any party in asserting any of its right and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive any party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. B. [608] Bemediea 1. [609] DaRages If either Participant or Agency defaults with regard to any of the provisions of this Agreement, the non-defaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured or if a cure has not been commenced and is being diligently pursued to completion by the defaulting party within thirty (30) days after service of the notice of default, the defaulting party shall be liable to the other for any damages caused by such default, and the non- defaulting party shall have the right to seek specific performance and such other remedies as are available in law or equity. 24 �\ r JUL 16 '93 03:07PM ti VII. [700] SPECIAL PROVISIONS A. [701] m n a to Agency for AR9rov al Whenever this Agreement requires participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents Within thirty (30) days after submission to Agency or such documents shall be deemed approved. B. [702] succe in Interest The terms, covenants, conditions and restrictions of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant and Agency. VIII. [800] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Attachments 1 through 6, which together with this Agreement constitute the entire understanding and agreement of the parties. No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. - 25 - JUL 16 193 03:07PM P.31 This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing by the appropriate authorities of the Agency and Participant, and all amendments hereto must be in writing by the appropriate authorities of Agency and Participant, except that the Executive Director of Agency may agree to non-substantive changes hereto with concurrence by Agency Counsel. Each individual signing below represents and warrants that he has the authority to execute this Agreement on behalf of and bind the party he purports to represent. IX. (900) TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY A. [901] T Ae for Age tance This Agreement, when executed by Participant and delivered to Agency, must be authorized, executed and delivered by Agency on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Agency as evidenced by the date first above shown. - 26 - r JUL 16 '93 03:07PM rols P.32 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. "Agency" REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ATTEST: By: Agency Secretary Kenneth J. Han argon Executive Director APPROVED AS TO PROGRAM: Stafford W. Parker Deputy Director APPROVED AS TO FORM AND LEGAL CONTENT: By. special Agency Counsel "Participant" HERITAGE OFFICE BUILDING, LTD. , _ a California Limited Partnership By: Russell Hatle Title: General Partner • 27 - 1 JUL 16 193 03:08PM P.33 STATE OF CALIFORNIA ) ss. COUNTY OPT ) On before me, personally appeared personally known to me (or prove to me on the bags of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the game in hiss/her/their authorized capacity(fes) , and that by his/her/their signatures) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (Seal) Signature JUL 16 '93 03:0BPM P.34 d STATE OF CALIFORNIA ) j sa. COUNTY OF ) On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signature(s) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (Seal) Signature JUL 16 '93 e3:08PM P.35 STATE OF CALIFORNIA ) } Ss. COUNTY OF On before me, personally appeared personally known to me (or prove to me on the bass of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signature(s) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (Seal) signature . JUL 16 '93 03:09PM P.37 ATTACFIIMM NO. 1 LEGAL UscRlpT ON Qk THE STTR ATT. 1 Page 1 JUL 16 '93 03:09PM P,38 ATTACH N0. 1 F.l�BCZ.T._�.3L ALL TWZZ PORTZONS Of LOTS 4 MD 7, ®TACK 10, OP TIM CM OF Sly! BEPJUUWZNC, IN TRS CITY OF SAA $ZXWt jXO, COVlPP! OP SAM EZR.FAMI(o, STATZ OF CALIFORNIA, AS VIER YZ AT MCORD80 If! 8008 7 OF RAPS, PAGR 1, RECORDS, Gy SAID COUNWe DLBCMUD AS FOLLOWS t 886ZNI XM AT A MI" ON TO ltORTH TOUM OF COURT STRZET IN SAID Bs.Oc7C 20, W=`CX 21 INTSRIXCTU 31 sin ToM SSTVZ= Lots 4 AM 7 IN SAID BL=f TRCS WEST 24.24 FM ALM 22M SOATU LIVE OF cmm STA.EET TO THE SOtiTXEABT COP= OP TH8 "m COMM By VIONZEit TTTLZ IItOMWCE AM TAVST COXVMM TO R.C. VJM:SOK by 13220 RECORDSO OCTOBER 12, 1921s IN 806E 427, PAGB 6l, OFFICZU RSCMZ3 TEMS AZM TIM ZUT Lt= Of T82 LEND 20 C01MMO ■T PIONSIR TLTLB I11Z4mmu AM TRUSS' CO>14AZT, nOttT2t 0 DES. 07. 20. ;BUT` 117.12 !Erse XORZ OR LZU V TO TM 39=29 LIKE OF SAM LOT 4; UST ALO>!Ni M XQRTK Of SAW LOT 4 TO THE li011Tg'OFS!' CORDER OF LOT 7+ = K= 301 4'HMI 60UM 1.07 nff AL40 TU Rte? Wn OF SAID LOT 72 T 10141 u8T 38.10 FZE I PARALLEL WITH TM Nam LZ21S OF =2 I TO Tu 1t0mmum coun or fav CiATin rum or Li111D cm9mc XT josm cm An UPA axes To P314 WON Tt'1'LI IMPANO M MM COMAM aT CM A>5C U= &=W 12, 1927, ZK 3087 2 42, VMZ 287, OFFSCM ft2mmms SWOM AWM 0 DOG. 00' 43' wzsw, ili.Os asu 112= To u6! of fm ENST WALL OF %= TO $%=T GTMM An COIIGit,ZTM BVILOZ>liG MC = W Man T=iz TXSMAM an um GOlt?sn To TOE X=U Sm OF C0umto SMZT "== pass AWN in mm &INS Of flames ommf 27063 BEET Tu POINT o? nat2 me U!8 EAST 32.00 1!$8T 4v Lm 3t , um 20• of Tm CZVT 0 an s=4WOM01 SX = C21T OF an s= xmz=f COufl'l'! OF SAF smauxuB. STM Or cumoA> ud, As M MAT Mmzo Iii swx 7 07 MAPI I PACE It AM= or GAZD COaiRT 4 R=cp Zlt6 ?RtRBPsom TBAS MUCH 02sea= as ToLum e osrzsxz a AT I= woRrim"T -COANitlt OF &up L01' S 1 Tics V382 2.1 s rzzT, ALONd m NUTMMT LIN2 OF SAID LOT I TMC8 scum 0 020. 000 160 ZUT, 112.90 MT; TMCB BAST 0.80 FEET= TM=Z SOUTH 0 0811. 070 30' MST, 31.30 IM TO A POINT OF TM SOM Lm OP SAID LOT so mcd IS T68TMT 3.10 FSSZ FR." To SST comit OF 8Ai0 LOT S t 9 1 :2 LAST 2,10 PUT A14HO TIM SOO's7[ ToM OF SAID - Z= S TO TM 20V3=ST COMM OF BALD UN 3 f TMCR NORTH ALOHA To EAST um of SAID LOT S TO T= POUT of UGIMIM. p�ce�. x00 3 s AN usRRm >r0R vZoasTRIAII PASSAGN TO e= usim Ilt COMMON vzfu OT!lERS OV>c]t T!ce VISS 23.00 ?z" OF Tm 9MM 45.50 7221 OF Tim NORTH 119.27 FEss OP z= S, mm ova Tax via 14.00 FEET OF TO EAST 42.50 FEET OF TRAT PORTZOM OF = 5 LTIM SOM=MTi OF SAID NORTH 11!.21 FAST, M& tK uA= 20 OF TXE CYTT OF sAx .-MgItARDSROe YH mm CITY OF SAN amwimos IX mm COVM Of SAE SEM1►R, IN00 STILTS O! C LIfMza, AS PBit PXAI: RSCMWM IN 50OX 7 OF X"S# PAGE It ASCORD4 of SAID COMM$ AND OS►!,R TEN FAST 10.00 TEST OF THAT ILA e"%1rffiw0& JUL 16 '93 03:10PM P.39 _ f 0 gi1lGEL f3 - CtYfi�J�.,.... COMMCING AT A POINT 09 TR8 WORTR LINO Of COURT STA63T, DISTANT 70.00 rRET WEST FROX THE EAST Lug OF SAID WT 4s TMCR NOR= 0 nZG. 1' 30• vas? AUM0 Txa FIST LINZ OP TSa PAWBATT PORxBRLY OWNSO SY R.C. iMWISON, A DZSTA= OF 116.00 F88s, XW OR L880, TO TH8 NORTH LZNl OF 9b20 LOT 4; TWCE EASTSRLT 36.06 FZZT AWxq THE NORTH LINE O! sk%D L0? 41 iii ics soum 0 CSG. 7- 30. 1682 TO THii NORTH LIKE OF COVAS Cam# THE= vasM&T A=ANG TIM NORTM LXXZ OP 00=2 STRX31, 13.76 TEXT TO 212 BCZIM OF 8B4t1 90, AL80 TRa VEST 10 PUT OF TIM CAST 34.24 F8ET OF WT 4, BZA= 20 (AS R888AVB0 AND ART mm In TUT CCitnzv am WECUIN VIOUSR TZWA IXSViMCS W TRUST COXFANT ZS XkitSO GRAXM AXD R.C. lfmtsad sB SAM As oRAwm, ama SIPTZNM 250 1926 an RZCOROSD COMM 13, 020, ZH AOOit 4211 PA= 61, O88ZCIAL R.BCOADB. sxCSi'T TUT PORZSOs ixc wu in PMWA z W08 1 AM 2 N"IN• . =MT Mtn" aF &OT 7e XIA= 20, Oa Ta CZTT of on WJMWMI tN Tai CST! OF 8m svxmzxoo covi 'S OF $AN zooming STATE OF CALtropimA. AS VIM PIM R=W= = 8003 7 OF Wlj PAU i, PJ=US OF "to COWW* OSL=mw A8 ===a nmIg- Ss am CONT8A Leta OF a 8= gm on m LINE OF cow STAN, EST 90m wnv FACE vp ns= LINE O! "n LOT 7, Aim ZZZW TU GOUTU"T CMM Of M LAND =S==0 29 MM ODD _ TO VZONEER T:ZJ 9M • AND TAV67 CWWAW XWCOR0E0 *OVENS= so, 1954, ZN 9M 3309. pass 91, OPFUUL FJNXMI sxellcs skis 25.50 FEST AWN Akio No= LIXS OF COViNI' GTRXW To am S00' MST COWR OF TIM U0 098=UD IN TO 1088D 10 T= 9= COWANT OF 2AN U1titAit 2000 MZFORNIai MCM50 JAXWT 3j, 1950, Iii 9009 23CBe PAW 73r Ont= AZCO N& NOG ON TO CERTEA 1439 OF A rzftx Imm; Tic: ROM 86000 Fssr ALM To W38T Lm Or 3XID 8W CONI'AXT LM AXD CXN'M LZNS 08 SUD rZU WALL TO TIM GO= LtNB ,OP Ts8 Liao coxymc TO cow An V4cv IT 0880 RBCw9v AUGUST 13, 1900, IN 8006 424 FAGS 274, OF OM51 TlM= V911T 23.30 Eita! AtANG %U 809= L2ss OF BAZO COHN Alm RICE I= TO THE wommAsT coNQ of Ta um uslounp is Tss imm To pxo%nik TITGC ZXStMA= AM TRUST Cpl MT t RSCMIM VQVXXW 181 19340 IN B= 3909, PAW 31, OrnCZAL RlC=hSi ACS SODU 81.00 !RZT ALWO TW RUT ZPZXZ OF SAZa PZONSW 11= ZMVWCX MM TRUST COl PMU LANG A= AXON TU CUM LING OF SAID SRZCx YALL TO TU POINT OF BEGtunpa. ALL THAT KRTIOX OP LOTS 6 ANO 7, SLOCZ 20, A=RDZNG TO XAP OF THX CITY OF SAY BZXPJMZXGo ZX TO CZTT q! SAa SmARDIN04, COMITY OF SAN SSRNARsxov STkTS Ot CmSTORx%A, ks PRA VZAT,'AaCORDXD IN SOON 7 OP !"go max it Iu ecu$ of ula COGl4' e ' oaSCRS880 AS FOLLOWS: JUL 16 '93 03:11PM P.40 88GZITYd ,No ON T= FORTH LINZ OF COURT STREET, 96 FEET BAST OF THE WZST LIME OF LOT 7, BLOC& 741 AT ra CU=R OF THE SOU'1"B A= OF A PARTY VA=.L, THE VEST 1/2 OF WH:Ca vALL IS ON TA= OF JOHN AND JOSEPX St UZI; TE MCE MORTR AWNG TUB CEb"M OF SAID PARTY VAM As PAR AS SAID MALL BYTSms an COIi'S'110UIxQ A DISTANC8 OP 122 FEET TO A P0131T WHICZ 13 143 FSBT SOLD!'!! OF THS NOMM WNS OP SAID SLOG= 201 T=C2 UST 45 F1221 T=CS rFaM 122 7292 TO COUT STREET; TRCE YSST 43 PERT TO TRZ POI!=T OP BEGIMltM- EXCRPTING TKERBFRCB A PORTZOV cQvv Z;v To ""OAR coloc Asa SAM RICH, AS pbR 08MD R=RuI0 10 a= 6471 VA= 3131 OP 09308. ALSO sYCSPTIIA TIMRlF M THa'1' P=%= Lym WTHSH "ZO LO? 6. per_.11 wAT POD=W CT LOT 7,p BLOCK 20,j CITT O! SM H8Rin1ADS�0/ I'i 'Y88 czw OF 9AH amwzme COmT O! $a BztiuARDzm f SIXTS OP UGOR B o 1 Sa P Q! 80 8 o C e I • a =, 8Z0:zmzvs AT A POnv ON TK9 PORT$ LIBM OF COQA? BTRLET AQr Nov &W.&"o 137 MW =2 CNe LESS, BEST CW M tOM 0! W NMTH LZO Of WW fSRW SZTB TO Y!8! WO O! •O' vam Is BAUD cm ar an %0 BASS to:w of 88o2idtm Am umm IN in cli ml OF TSB 40m mw of A uza VUE Ri10 0 As Tm DZY Dnm Lz" BaTRU Ta BRCPEOT mRB2mT Oma ST JoSEpH swax AND ?H8 LOS' 7Qr4 T 01118 ST Y.J. CaRS'Z8, BALD CURZIS LOT _ Bllllm y" CoVpn as A CS : s =lgro: WOW ALMG TER CSNT=t Lin of 6AIO YALL an Azam TIM PP LM"TIOM mumoa, a OYSTAFCS OP 88 Y=ET/ V= OR LESS. TO TIM LOT SAL! Qmv RY ROBERT H. TROHP801 At0 COm"Iso TO 0088 AND Rica BY Ono RICOWED AUGUST 31, 1908s IM 800= 4211 IPA= 2741 OF WM081 TMCS WEST 23 FEET, S lu=38 !long a LESS, TO A POINT IN m SC13S"8 LI=E OF SAID cost AM RICE %mr VRICH Bmcao Se I10T3RBECTBO BY a XMTKMT PROWH"Ticu o! Tq CBit'in LI1s cw Tim Pin UALL CONS'!'I'!W'1'ING Tm AS$sm"R SSAC=o ACS $aQT=LY AND AWNG TM CZWM LXX2 0 SAW FIRa VVA AM ALOW TU MORTWIT PNX4 tGAT=OH T'MRSOF, 6' FEET, xQ R3 ax 1288► To Ta X=TS LUM Og COM STRUT, AS NOW FEET,L TESj tItCHSB� l� O�t+SB, '!'0 T�88rPOS�of ECOURT SIG M�+ 23 , T0=TH$R VXTR ALL INTER. v Macs TRZ SS'LXJM now us X10 TSS PARTY WALL or To VM MW CA mot pRESI5=8 AWQZSIpG ON %= QaST. AS CONvEYEO TO 51=U DT DEED LZSCVT= by PICMgR 'r%%W pl URANGE CORPAiY TO W.E. I.EOltA,A,D WO MO1RDSO MOYZn2A 13. 1924, Ili SO" 674, PASS 297. Of pgROS. JUL 16 '93 03:12PM P.41 THAT BOR?ZOH Or X= 74 aLOCR 300 or Tm CITT OF SAN ansi Igo, 28 TRZ Comers Or SAS aaaaWB:90, STAT8 OP GLtr0A Uj AS pgR MAV RSCOADBD IN a= 7 Or lWS, PAGR 3, RECOROB Oy UZD CoMY, DS'SCASazo As MUM f sut'mzm AS' A P02NT ON Txz v L2m at COURT BTanTo SST 27.62 nU 79W TU NUT &M Or SAID Loy 7 aaza p01M UZ= AT %= sco T cow or A STEEL An CG=PA= SDZLDZ a C9192�tt�o rm %= #103m tt MIX WSURM= a TRUST COMANTS spa Cwt=OZM SAM 23.31 "92 TO "a C=T= LINN of A sRzcm mr-7.1 TlDms NWTX 0 was of, 33, Nang 48.06 naT Azgm "zo C8 W= Or A MXCX HALL= 2== MestaN it 090s 54' 02. 1fMv 33.00 !=ay To ma my w= or TaS 8zmm TzTLS II[SOiiNCS a 'm $? coMrAxs suss nt=l Tames SOOTS 0 DEG* off 63• sass, 88.10 rm ALOW rasa z"T WILL " mm PQzn or saaZMM. TG6STSSa V: ALL Or 02 lams T21M AD ZNTZMT or M GRAMM ZX AND 20 THAT MWOM Or CC= an= rdrm 9"=&V or Tu iduflemALT aIiGLOaGiTZ08 Or Tma VM lam 0w wn zm2M 1 zgmaEO ZAWo MM USTOW Of I= SOa'i'13 MT _M'"as Or Ta EA83' LZM f JUL 16 '93 03:12PM P.42 VAO ATTACHMENT NO. 2 Aruxcy d A.RAN'l'EE AGREEKAST The REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA (the "Agency") hereby guarantees to Valley sank ("bander") , on the terms and conditions get forth hereinafter, the obligation of Heritage Office Building, Ltd. , a California limited partnership ("Debtor") , as more specifically described hereinafter. This Guarantee is subject to the following: 1. The Agency's obligations to Lender are solely with respect to the debt incurred by Debtor by way of the promissory note and de44 of trust entered into by and between Lender and Debtor, a true and correct copy of which is attached to this Guarantee as Exhibit "A" (the "Debt") . The Agency's obligation hereunder shall not extend to any other obligation of Debtor to Lender, or any third party, whatsoever. 2. The amount of the Agency's obligations to Lender shall not exceed One Million One Hundred Twenty-Five Thousand Dollars ($1,125,000) , less any payments made on account thereof by Debtor or any other party. Any obligation of the Agency hereunder shall cease upon payment in full of all principal and interest due under said note, regardless of the source of said payment. 3. The obligations of the Agency under this Guarantee do not extend to any prior, contemporaneous or future debt owed by Debtor to Lender. 4. Lender may not, without the prior written consent of the Agency, enter into any modification, amendment, waiver or other change in the terms, amount or conditions of the Debt, nor renew, extend, postpone or accelerate the time for payment change the terms of the Debt, nor release any security hold therefor. 5. Lender covenants that it will diligently exercise all rights accorded to it under the terms of Exhibit "A" or any collateral or security agreements held by Lender in connection therewith. 6. Lender expressly waives any right to look to any asset of the Agency which may be in the possession of the Lender at any time, and agrees solely to exercise its rights under this agreement in accordance with the terms hereof. 7. In the event of any default by Debtor under the terms of the Debt, Lender agrees to provide the Agency with notice thereof within thirty (30) days of the event of said default, so as to enable the Agency to contact the Debtor and meek to obtain compliance by the Debtor with the terms of the Debt. Lender further agrees to provide reasonable notice, which shall not be less than thirty (30) days, prior to taking any action to declare ATT. 2 - Page 1 JUL 16 '93 03:13PM P.43 a default under the terms of the D®bt, accelerate the indebtedness referenced thereby, act upon any Security held by Lender with respect to said indebtedness, or otherwise enforce any rights - against the Debtor or the Agency. e. The Agency reserves all rights of subrogation or indemnification against the Debtor with respect to any and all sums which may be paid by the Agency on behalf of the Debtor under the terms of this agreement. After any and all conditions precedent hereunder to the Agency's obligations hereunder have been satisfied, Lender may make written demand upon the Agency for payment of any unpaid portion of the Dobt and the Agency shall make or cause to be made payment thereof in full within sixty (60) days of receipt of such written demand. 9. Notwithstanding any other provision of this Guarantee to the contrary, the total obligation of the Agency to Lender under the terms hereof shall not exceed the sum of $1,125,000. 10. The Agency may not terminate its obligations under the provisions of this Guarantee until such time as the Debt has been paid in full or the amount then owed by the Agency pursuant hereto has been paid in full. 11. In the event of litigation concerning the terms of this Guarantee, the prevailing party shall be entitled to reasonable attorneys' fees. 12. This Guarantee and the respective rights and obligations created hereby are subject to and are to be construed according to the laws of the State of California. 13. Lender may assign its rights under this Guarantee, subject to providing fifteen days' prior written notice thereof to the Agency. 14. The Agency's obligations under this Agreement, notwithstanding any prior execution hereof by any representative of the Agency, are subject to the approval of. the community Development commission, the legislative body of the Agency. Dated: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: KENNETH J. HENDERSON Executive Director APPROVED AS TO FORM: Special Agency Counsel ATT. 2 - Page 2 JUL 16 '93 03:13PM P.44 0 0 ATTACHMENT NO. 3 $COPE OF DEVE PMENT I T . The Site is specifically described in the Legal Description (Attachment No. 1) pursuant to Section 103 of this Agreement. IT. DEVEP Participant shall develop the Site by constructing improvements to the existing structures on the Site in order to remodel and conform the Site for use as a billiards club and restaurant (the "Project") . The Participant shall commence and complete the Project by the respective times established therefor in the Schedule of Performance (Attachment No. 4) . III. P S The Project shall be developed in accordance with applicable building and safety codes. 4D ATT.3 - Page 1 JUL 16 '93 03:14PM P.45 ATTACHMENT NO. 4 SCHEp= Og PERFORM CAE 1. Execution of Agreement by Not later than thirty (30) days Agency. Agency shall approve after the date of execution and and execute this Agreement, and submission of two (2) copies of shall deliver one (1) copy this Agreement to Agency by thereof to Participant. Participant. 2. submit all necessary plans Not later than January� 1, 1994. and receive all necessary entitlements. 3 . Commence Renovation of the Not later than January 1, 1994. Project. 4. Participant shall complete Not later than January 1, 1995. construction of the Project as evidenced by the issuance of a Certificate of Occupancy. ATT. 4 - Page 1 JUL 16 '93 03.14PM P.46 ATTACHMENT NO. 5 RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) ) (Space s for Recorder's Use) * REp OF TRU§T WITH ASSIr13 ORT OF R .N S Deed of trust made on , 1993, by HERITAGE OFFICE BUILDING, LTD. , hereinafter called "Trustor," whose address is 1731-A Orange Tree Lane, Redlands California 92174, to FIRST AME ere ina rzer referred o a rus se", whose business address is 323 Court Street, San Bernardino, California 92401, in favor of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BMARDINO, hereinafter referred to as "Beneficiary", Whose business address is 201 North "E" Street, Third Floor, San Bernardino, California 92401. Trustor irrevocably grants, transfers, and assigns to Trustee in trust, with power of sale, all that property, including all easements and rights of way used in connection therewith or as a means of access thereto, in the City of San Bernardino, County of San Bernardino, State of California, described as follows: That certain property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described as: SEE ATTACHMENT NO. 1 together with the rents, issues and profits thersof, subject however to the right reserved by Trustor in Paragraph B-16 hereof to collect and apply such rents, issues and profits, prior to any default hereunder; for the purpose of securing performance in a timely manner of all of Trustor's obligations under that te OOPA" ) owner Participation Agreement dated as of ( and performance of each agreement Trustor ncorpora ad herein by reference or contained herein. A. To protect the security of this Deed of Trust, Trustor agrees: 1. To maintain the property in good condition and repair; not to remove or demolish any building or improvement ATT. 5 - Page 1 IF 11 JUL 16 '93 03:14PM P.47 thereon; to complete promptly in workmanlike manner any improvement hereafter constructed thereon and to restore promptly in workmanlike manner any improvement thereon that is damaged or destroyed, and to pay when due all costa incurred therefor or in connection therewith; to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property; not to commit or permit any waste thereon or any act upon the property in violation of law or of covenanW; conditions or restrictions affecting the property. 2. To appear in and defend any action or proceeding purporting to affect the =security hereof or the rights or powers of Beneficiary or Trustee; and also, if at any time Beneficiary or Trustee is a party to or appears in any such action or proceeding, or in any action or proceeding to enforce any obligation hereby secured, to pay all cost and expenses paid or incurred by them or either of them in connection therewith, including, but not limited to, cost of evidence of title and attorneys' fees in a reasonable sum. 3. To pay (a) at least ten (10) days before delinquency, all taxes and assessments affecting the property, all assessment upon water company stock, and all rents, assessments and charged for water appurtenant to or used in connection with the property; (b) when due, all encumbrances, charges and liens, with interest, on the property or any part thereof, which appear to be prior or superior hereto; and (c) all coats, fees and expenses of this trust. 4. If Trustor fails to make any payment or to do any act as herein provided, then Beneficiary or Trustee (but without obligation so to do, and with or without notice to or demand upon Trustor, and without releasing Trustor from any obligation hereof) may (a) make or do the same in such manner and to such extent as - either deans necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon the property for such purpose; (b) appear in or commence any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest, or compromise any encumbrance, charge or lien that, in the Jng udgment of either, appears to be superior hereto; and in exercis any such power, Beneficiary or 'Trustee may incur necessary expenses, including reasonable attorneys' fees. 5. To pay immediately and without demand all sums expended hereunder by Beneficiary or Trustee, with interest from date of expenditure at the annual rate of five percentage points over Bank of America's published prime rate. B. It is mutually agreed that: I. Any award of damages made in connection with the condemnation for public use of or injury to the property or any part thereof is hereby assigned and shall be paid to Beneficiary, ATT. 5 - Page 2 JUL 16 '93 03:15PM PAS who may apply or release such ineysuchceoved therefor upon any indebtedness secured hereby determines, or at the option of Beneficiary the entire amount 60 received or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 2. The acceptance by Beneficiary of any payment less than the amount then due shall be deemed an acceptance on account only and shall not constitute a waiver of the obligation of Trustor to pay the entire scum then due or of Beneficiary's right either to require prompt payment of all sums than due or to declare default. The acceptance of payment of any sum secured hereby after its due date will not waive the right of Beneficiary either to require prompt payment when due of all other sums so secured or to declare default for failure waiver of be a waiver of any preceding or 3. At any time upon the occurrence of a default, without liability therefor and with or without notice, upon written request of Beneficiary and presentation of this deed for endoraement, and without affecting the personal liability of any person, Trustee may reconOWy any part of the property, consent to the making of any map or plat thereof, join in granting any easement or join in any extension agreement or any agreement subordinating the lien or charge thereof. 4. Upon written request of Beneficiary, surrender of this deed to Trustee for cancellation and retention, and payment of its fees, Trusts* shall reconvey, without warranty the property then held hereunder. The recitals in such reconveyance shall be conclusive proof of the truthfulness thereof. The grantee may be designated in such reconveyance as "the person or persons legally - entitled thereto." 5. Trustor may give such notice to Beneficiary at any time before there is a Trustee's sale of the property. At any time Trustor is in default in payments to be made to Beneficiary hereunder, any amounts paid to and received by Beneficiary for execution of releases pursuant to the terms of this paragraph after notice of default and election to sell has been recorded shall not, unless the requirements of section 2924c of the Civil Code are fully met by or on behalf of Trustor, waive the right of Beneficiary to continue its plans to have the property sold, nor shall they have any effect on the exercise by Beneficiary of the acceleration privilege contained herein, except to entitle the person effecting such payment to the release of the property for which the release amount was paid, and insofar as Beneficiary is conceaened, to constitute a credit against the secured debt. 6. If Trustor or any subsequent owner of the property covered hereby shall occupy the property, or any part thereof, after any default, Trustor or such owner shall pay to Beneficiary in advance on the first day of each month a reasonable rental for ATT. 5 - Page 3 JUL 16 '93 03:16PM P.49 the premises so occupied. on failure to pay such reasonable rental, Trustor or such owner nay be removed from others promises by summary dispossession proceedings or by appropriate action or proceeding. 7. If default is made in performance of any agreement hereby secured, then Beneficiary, with or without notice to Trustor, may institute suit for the foreclosure of this deed, or by delivering to Trustee a written declaration of default and demand for sale, as well as a written notice of default and of election to cause the property to be sold, which notice Trustee shall cause to be filed for record. if such declaration is delivered to Trustee, Beneficiary shall deposit with Trustee this deed, and all documents evidencing expenditures secured hereby. a. After the time then required by law has elapsed after recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, with or without demand on Trustor, shall sell the property at the time and place fixed in the notice of sale, either as a whole or in separate parcels and in such order as Trustee determines, at public auction, to the highest bidder, for cash in lawful money of the United States, payable, at the time of sale. Trustee may postpone from time to time sale of all or any portion of the property by public announcement at the time and place of sale originally fixed or at the last preceding postponed time. Trustee shall deliver to the purchaser its deed conveying the property sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Trustor, Trustee, Beneficiary or any other person may purchase at the sale- 9. After deducting c including costs of fees evidence of expenses tle and Trustee and of this trust, reasonable attorneys' fees in connection with sale, Trustee shall apply the proceeds of sale to payment of (a) all sums expended under the terms hereof and not theretofore repaid, with accrued interest at five percentage points over Bank of America's published prime rate per annum, and (b) all other sums then secured hereby in such order as Beneficiary, in the exercise of its sole discretion, directs. The remainder, if any, shall be paid to the person or persons legally entitled thereto. lo. Before Trustee's sale, Beneficiary may rescind such notice$ of default and of election to cause the property to be sold by delivering to Trustee a written notice of rescission, which notice, when recorded, shall cancel any prior declaration of default, demand for sale and acceleration of maturity. The exercise of such a right of rescission shall not constitute a waiver of any default then existing or subsequently occurring, or impair the right of Beneficiary to deliver to Trustee other declarations of default and demands. for sale or notices of default and of election to cause the property to be sold, or otherwise affect any provision of the secured note or of this deed or any of ATT. 5 - Page 4 JUL 16 '93 03:17PM P.50 the rights, obligations or remedies of Beneficiary or Trustee hereunder. 11. Beneficiary may, from time to time as provided by statute, or by a writing signed and acknowledged by him and recorded in the office of the county recorder of the county in which the land or such par thereof as is then affected by this deed of trust is situated,'%appoint another trustee insteadApf Trustee herein named; and thereupon, the Trustee herein nafWS sdaFll be rustee hereunder the ithxthe same off t appointed shall if origally substituted med T Trustee herein. 12. If two or more persons are designated as Trustee herein, any or all powers granted herein to Trustee may be exercised by any of such persons if the other person or persons is in anyinstrunont executed by any .of such recital of such persons shall be conclusive any against Truster, his heirs and assigns. 13. All leases of any structures on the site which utilize the Project as defined in the oPA, now or hereafter affecting the property are hereby assigned and transferred to Beneficiary by Trustor. Trustor hereby covenants that none of such leases will be modified or terminated without the written consent of Beneficiary. 14. If a default is made in the performance of any agreement hereby secured, Trustor when requested to do go, shall give such further written assignments of rents, royalties, issues and profits; of all security for the performance of leases) and of all tends originals able ofdall leases,any option or purchase,reafter on or a f affecting _ executed the property to B e 15. Trustor reserves the right, prior to any default in payment of any indebtedness or performance of any obligation secured hereby, to collect all such rents, royalties, issues and profits, as but not before they become due. Upon any such default, Trustor's right to collect such moneys shall cease, not only as to amounts accruing thereafter, but also as to amounts then accrued and unpaid. In the event of default, Beneficiary, with or without notice and without regard to the adequacy of security for the indebtedness hereby secured, either in person or by agent, or by a receiver to be appointed by the court, (a) may enter upon and take possession of the property at any time and manage and control it in Beneficiary's discretion, and (b) with or without taking possession, may sue for or otherwise collect the rents, issues and profits thereof, whether past due or coming due thereafter, and apply the same, less costs and expenses of operation and collection, including reasonable attorneys' fees, upon any obligation secured hereby and in such order as Beneficiary determines. None of the aforesaid acts shall cure or waive any notice Beneficiary invalidate be required done ired toact pursuant diligently in the ATT. 5 - Page 5 e �.� 1 JUL 16 '93 03:17PM P.51 care or management of the property or in collecting any rents, royalties or other profits that it is hereby authorized to collect, and shall be accountable only for nuns actually received. 16. Without affecting the liability of Trustor or of any other party now or hereafter bound by the terms hereof, from time to time and with or without notice, Beneficiary may release any person now or hereafter liable for performance of such obligation, and may extend the time for payment or performance, accept additional security, and alter, substitute or release any security. 17 . In any judicial action brought to foreclose this deed or to enforce any right of Beneficiary or of Trustee hereunder, Trustor shall pay to Beneficiary and to Trustee attorneys' fees in a reasonable sum, to be fixed by the court. is. No remedy hereby given to Beneficiary or Trustee in exclusive of any other remedy hereunder or under any present or future law. 19. The pleading of any statute of limitations as a defense to any and all obligations secured by this deed is hereby waived, to the full%:Lpxtent permissible by law. 20. Trustor shall, upon request made by Beneficiary, furnish the Beneficiary with annual statements covering the operations of the property. 21. Beneficiary may collect a "late charge" not to exceed an amount equal to five percent (5%) on the amount past due and remaining unpaid on any installment that in not paid within ten (10) days from the due date thereof, to cover the extra expense involved in handling delinquent payments. 22. This deed applies to, inures to the benefit of and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, successors in interest, and assigns. The term "Beneficiary" means the owner and holder, including pledgees, of the Agreement secured hereby, whether or not named as Beneficiary herein. In this deed, whenever the context so requires, the masculine gender includes the feminine and neuter, and the singular number includes the plural, and all obligations of each Trustor hereunder are joint and several. 23. Trustee accepts this trust when this deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary or Trustee is a party unless brought by Trustee. Trustor requests that a copy of notice of default and of any notice of sale hereunder shall be mailed to him at the address set out opposite his name, immediately below. ATT. 5 - Page 6 JUL 16 '93 03:18PM P.52 MAILING ADDRESSES FOR NOTICES% 0 Heritage office Building, Ltd. as Trustor: 1731-A Orange Tree Lane, Redlands, California 92374 Attn: Russell xatle with courtesy copy to: Attorney for Heritage Office Building, Ltd. 11100 Santa Monica Boulevard, Suite 1770 Los Angeles, California 90025 Attn: David Fox, Esq. Executed at San Bernardino, California, on the date first above written. Heritage office Building? Ltd. , a California Limited Partnership By. :By: Russell Hatle Title: General Partner ATT. 5 - Page 7 JUL 16 '93 03:16PM P,53 ATTACI M4=T NO. 1 TO DICED OF TRUST ATT. S - page 8 ��l JUL 16 '93 03:18PM P,54 ATTACHMENT N0. 1 TO DIED ®M k13, It ALL TxoSa PCRSSOxe or Lars 4 AM 7r , 87,OC9 30 oP Txs CITY OF saw BEPJ"Vixo, sH THE C1TT Or SAN 881itMMNOr COUNT! oP SAN SERNLRDtNOi STATE Of CALIPOWAr AS FAR PUT RSCORDEO IN BOOR 7 Of, XAPS r ran 1. MOM or SJUO Comm$ DBSCRIUD as mdLOVS t lbrum 1iO AT A VGZXT ON W. 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Rscanns or 6110 COUNrTI Amp OM Tag RAST 10.00 raas OF TOT . _ ___� .���� a� MAC.AC./7• 1 JUL 16 '93 03:19PM P.55 0 Zv:.ZiGEL f 3 - �••---- . COXRZ:ICXXG AX A PalxT ON THE MRT11 LINN OF COURT STUST, DISTUT 70.06 FBgr v'EST "M TM SST &INN OP SAID LOT 4s TMCS NORTS 0 CEO. 1• 30• YLST AL 4M %U sibs' LIMB Of TIM PROMIT FORXBRLT OWNED ST R.C. ah"Isami A DISTANCZ Or 116.00 FEET, Xm CA Lass, To TH2 HORT11 LINE OF SAID LOT 41 TKHCZ MASTMY 36.06 FEET ALONG I= NONtTX LIKE OP SAID LOT 41 Timmz SOPW 0 DEG. 7• 300 VMM TO M MONTH LIMB OP COURT STR$8Tt THMN YBSTS LT ALONG M MORTR LING Of COURT S?RM,, 35.76 TEST TO TTE POINT OF BZGZMZNGO, ALso Tun VEST 10 MT OF 74Z EAST 34424 FEZT OF LOT 40 HLOCR 20 (A! US$RvBO an SRT FORTS IN r"T CERTAIN MD WASRIZ l SIOTESR ?ITU IXSDRASC! "D TAtii'1" ="My IS XAM MANWR AM A.C. L%p&sSM to pa= AS GMn=f NATao SZPTZXM 25, 3929 AXD �tacaRaso cesoaaK is, ts2�, zS Soon 4rTf Pima 83, carrcxAL p2cam. XZMT TAR= FOATZCX ZNCLDDSO =R PJ►itGSL �iCS 1 2 l:ERi2><• 414CRL tde, �� TR#T ICRSm OP LOT 7, ZU= 20* - CW TKI CITT or us RE11,101Atlm f Z14 TKA cm at SAN 52it1NA? uce cw ax BBRn"IM00 STATE or CALIFOMUo AS PU PLAT ==ED ZZ S= 7 Cif NAPS f PAW l f lsaGXtO inn IN in CZN'1'8R LSils OP a UICR NXLL 011 m no= un Or Coca Suzzor un 30.14 rm no wn Van un or suo IM 7v at" z eoomsr =an or Tu um mismism sS is am :o PsOMM Tssrs - Am IRM COWANT RMORDaO NOT== - it, 1934s in BR 3509 PM 4i, CIFICIAL 1"CCitD21 182M "$I 35.58 FEST ASA= SJ120 LM al coat szum To m 8o0TMST COAXER OP %M LAX0 0E8=wc = T= Dzu TO m m MWANT OP 8AN agpi misof =trmlaf RECORD= JAi MT 3t 11500 7m BOOR 25080 PAU 731 O!f=GM RECORDS, 1iSIi10 011 To C$>rl'!A ERNE of A r:Ra wI-T-1 TSMS 39m= sa.Qo rw &LM TiM VZsT LIB 07 S1►t0 S= CONFANT UM Ate CUM LY11Ni Of SAID YM V= TO T!Q GOM LSNB Of TIC "m canny= Z'0 C0= An R2NIS ST DR D RECOAd80 11UC'bs ST 138 1908, XX mW 4210, PAG$ 274, OF DEVOS! TAIM VZaT 23.16 PUT ALONG Ta SCOT!! LIPS of Sun COTE an RICK Latin TO Txz mono L "T Comm OP TEX L1" ocamussa IN TRS OEBD TO PIONB$R TITL= ISSURA=2 AM TR=T CWAvyl p4r=aD MOVSHM 385 1854, ZX SOOS 3509. PAM 91, Orr2CSAL AaCORD9S TEM3 SO= 00.00 PERT ALONG THS ZAST LISS OV IAZD VIONRSR TITLE MUM= AM "UST COXPANY LAM Ax0 ARAM TEX CS3NTSR Tam Or Sao Dit= YAM TO TTE POM or sac1 =NO. Ass TUT PCItTI(M or NAYS 6 AM 71 W=1 241 kCCOF ING TO XAP OF 'rHX csTT Or sm gmuL R :N00 IN TKz CIT_X or skX SbFt� IXO, coul '7C OswX 7 OPP XA E p 5 !fit 'or AWORDS O AWo CQGXTT, T093clu so AS IN AOMkA Sa=ws� AV A J JUL 16 '93 03:20PM P.56 PAVZZL. 5 s — C=Z'lX= ...... SEraINNING ON THS XQATK LIFE Or COURT STUIT, g@ PELT BAST Or Tim VZST L131E Or LOS 7, ==I 20, AT THS Czb=lt Or THE So= AKa OF A PhATT NALL, m VZST 1/2 Or WHICH VAM 15 on Lm or Jour AND JOSgBH SNAFER= �tca NORZB 1 WN13 Tu cawnR OF SAID PART! VALL AS $AR 168 SAID V= ZXTEMS An COMIMIXG A DYSTAXZ Or l=2 PRZT TO A FOtl T WHzcK IS 143 fin Soug or 'In NOM LYHa OF SAID � ?O �S �� = �T SO COMM ST E iZS PERT SO POUT 0 �IIrIIO � N 1M �! 0 S� 2tB�AB PER p RECOADO 218 � D �a1r0 008. ALSO lZCSPZ'I!a TSyZROS Tm PO4 um L= 0 Hans "2D TUT VQ=c 1 Or LCM 7, BLOCK 20 CI'T'E Or SM 8R1�1ltDIMO, Zll TR8 C= Or fim 4 lw. C of 6Aar 8EltiDlmm, is"= Or CALUMMA0 As R cw BUD CCti�Tlp,OBS vicawtv IN BOOK=Uo 70=09 7 of �S, r� 1. sconalIva AS A POW all To NOR= Lnm OF COtiAS 8TR6E'1' " NOV LOCATED 197 P=s, R= Clt LR. VM Or VM ;it"p'0,0 w;l'= of 1= I=" Lum OS CCQA,'1' 8%7= W%= %= vm Ltd Or •0' 61NM SD Wo cm of so staxwouc �� ��:0 ;&=a tau= IN To e:rro� or s� DZV'=Dm LIu 8E'�!= %= pA�OmIrs s O1tXurnow uoli I A mm Tu LOT rRMs all 9: DT W.J. CURT"o, BaZD COR' $ 8l t 1 COMM A C lxT sw=tm l XOm AZAM sDa CUM LISA Cr Sao It " 1ua Ai+t= TEX IRO ►s20X T�REOr� A OYBTAm at 28 info sm Oil LR88, TD To um TORNU= Qvm by ROURT 1. TKORPSON An COMYS0•*+o cm Ito AICB BT ago RScouty AMST 11, 1908s. IN BOOM 4311, PUGS 279, OF 088081 TUM VZST 23 FRET, S lv=f SORa OR LESS, TO A POINT IA Fi sotTi4i Lin of SAID carat AND ASCB tO?, vn= go= a namac"D $= A 1t0Rmi+= PROLOIWATZON Or Tu C$tiT&A Lima Or To FIR= um COBSTITU' lso TIM VlST v3.r•L sons i A�uoim� cE v_ As SUM BZ=$ 3072= SAID r=X VA;Y* Mw ATrOlfli TSS NORTKSALY PROIAW►TION TORSO , PELT, KOM OA Li88• TO To N=m LIM of COtmv STRIMP AS NOV LOCATED! TnWJ SST MAW To *0RTN =n OF CCU" STRRET, FEET, S Ilt=B• YOZiE OR L88B, To m POUT OF BEOzwl"G. ` TOGBTM HITS ALL INTSASST fit$ TKS SELL= 'M SAS Ili TRZ PARTY WALL Op SS THS WS mm ON Tax PRU%S88 ADJOi0Zm oa m v8sts AS cowz '80 TO SELLLwOp!$N=tDO C�80 KO'V=ZRL13TZ1'924 ZgIIN BOOST comp"T s0 W.11. 8741 PADS 357* Or 08208• r � I JUL 16 193 03:21PM p,57 RRAGWd- TmAT 3?QRTZON OT LOT 71 HLOGZ U l Or TNi CITZ OF SAN RMUI 1340 o IN Ta C07M Of SM SUMB1100. STATE 07 CAir2IORMUO AS P=t WAT RSCMZD Z7t BCoi 7 of XAPS I PAU 1: MOADS OF SAID Cotilt yo DISSCASSEO A8 SOLLOOS t DgQZM:W A tfl=NT ON THS WORTH LINE OT COOT STMT, UIT 27.62 ABET TA= Ta ASST Un or "lo = 7f Sazo MUT S8z00 At na ZQVM AST capims og A STM, an Coxcu= UXLDZN C00SZAUMD tal Tm rzonca v:m z8S0Aw= b TADS' cGoAml TICS ccwnM:W 2"T. 23.341 YM TO M CZMT= LASE Oa A SZZCX WMI TXD= O+OR'1'R 0 084. 06' 330 US 4'• 40.oi 7122 MAW "= 480M Zia= ou A =Z= guz? s 66 ota. 36' 02' trans. $3.00 COQ"? IM=ZNg# TjM= SOM 0 DW• 0i• 43• VBST, 88.30 YM AWN "Zo "m W" to wx poste or SUZIM aa. 'rim vm m of in Azwo of MM 4lesuts�ai! =x A� a'o z&s Imic M ar LTSM S"M= ou spa aavtswv raazorios of Ta vans Luca os sus nazv oOSCASeAD LSD, AKD 1tiS' ALY Ot = tAbS�OZCA O!� Tp8 EE��s LZ�• . f L J —/ JUL 16 '93 03:21PM P.58 ATTACHMENT NO. 6 RECORDING REQUESTED BY } AND WHEN RECORDED MAIL TO: } } } [space above for RacorZfer.3 C FICA QF COMPLET nN KOR CQkISTRUC WHEREAS, pursuant to that Certain owner's participation Agreement entered into between the Agency, and Heritage Off i e Building, Ltd. ("Participant") dated as of Agreement") , relating to that certain real property described on Exhibit 1, attached hereto and incorporated herein, the Participant is entitled to the issuance of a Certificate Sthe Agreement to be completion of those improvements required Y developed by the Participant (the "Participant improvements„) ; and WHEREAS, such certificate shall be conclusive determination of satisfactory completion of the construction required by the Agreement; and WHEREAS, the Agency has conclusively determined that the construction on the above described real property required by the Agreement has been satisfactorily completed; NOW, THEREFORE, 11 The Agency does hereby certify that the construction of the Project has been fully and satisfactorily performed and completed. S. Nothing contained in thimAnstrument shall modify in any other way ma�other provisions s ur ua�!'t`toe thetAgr lenientC$hall obligations 01"'Me Participant p remain in full force and affect. IN WITNESS WHEREOF, the Agency has executed this certificate this _ day of — ' REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Execut ve D rector ATT. 6 - Page 1 JUL 16 '93 03:22PM P.59 STATE OF CALYFORNIA ) es. COUNTY OF On before me, , personally appear personally known o me (or prove to mwh se name(S) satisfactory evidence) to be the person to tgcut idthithinstrument s and is/her/th i rd authorized h4/she/they ex q on the capacity(ies) , and that by hielher/thei one behalf of which the instrument the person(&) , or the entity up person(s) acted, executed the instrument. (Seal) WITNESS my hand and official seal. Signature Executed at San Bernardino, California, on the date first above written. Heritage Office Building, Ltd. , as Trustor By: Title'- ATT. 6 - Page 2 Adi JUL 16 '93 03:22PM P.60 0 E7giI8IT 1" TO CERTIFICATE OF CpMpyaT"N ATT. 6 - Page 3 II JUL 16 '93 03:22PM P.61 AMA CERTIFICATE OF COMPLETION l r r s, Tidosa PGRTxoxs Gr Z=S 4 AM 7t 6LaC3; He OF THE CITY OF SAM szpxA xmo, IN vm c:TY OF Silt 88Aj=:x0. CQUNW OF SAN OF W30,NP=Z 1TER8CORD8 OPT SAID Comm, 1998maso as FQZ"Wsl i sgat xx0 AT A Fozxf ON S8R 36ORT3t Lux or cons, STMT IN SAID a&OC>t 200 vmtcz xS I>M PJ By '= L292 SE'1'i -= ZMS 4 MW l IN Slto ALOCXs W2ST .24.24 Im ALOtd To 31OATA L=3M of CMT STASaT '1'O Tu SOUTIMST C JMR OP To ZAaO CO3aV87�D BY PXOMXR T=TL8 ZXSURANCS AM WRUS'T COMPAn TO R.C. 3t "ISOM BY 13, s92Sr I nBEO RacoRbZO OCT088R 3t AM 417, PAQ1 0i, O�TCUL aacm:ss 29=2 u vwv TRS sum =X3 or To zmv so cowvasgo as VZOS221 TZTLS ZW=AX= 00 r3eu CMAMI No= o DvG• 07. 304 3u v o 117.13 aT. Boa oa LM r jo so XQW I.= oar "10 ZM 4s == 3U f ATAW sa 3MTR O: SA=D LOT 4 2- OF LOT 7. = BLOCK act SOt� 1.07 11VA34C To WNT Lin cm sm LET 7i Ts31CS "! 2=010 3'!8 t PARALt•BL 1im %= UOtzl`M Un 03 LOT 7 so %= M I I I am Cap= at my MMU=w PAN= Of zm Comm 3T J=019 CM Iwo SM rice 10 More %%= Valumm an %mgf Waalw ST am = Ann" 120 1437 r Is 33= ada BA= 26.2r orsSCM MC=W sass Soma o Ogo. 0511 43• vRrrr isf.o6 sus a�sr��or� :�'►tia�t cm m sari mss::+ an see 0ouo Trm zimsuS00tC'6 M %sw Cw3w vo Tut =a LIB OB APIM I I 'f Im -At m %= I= Of . 17.41 ?w To tglE 80I3tS` � j11AC tiS3.�L - T� can 3=000 PS8'S ar urr s, mm 30, os v= cm of � �� �a►:s OF C2'1'r o: � p �,� RO Z1��804�7 of UP, PAU Sir RCS or "Zo 001". • eZC$Y=vo T»R3sp'AOSf TEAT p03t of p3jSC uo As ?=.=Vs t ssOStasod jo Ta s cc*j= oe suo um s, Tim VIST 3.is YEBT mm %W JWMMT LIM of SA20 toss two 40= 0 DEG. 00• 14' EASTr I1S.90 THBTt %%a= Z"I 0,10 PMI TW=Z SOOTS 0 ogo. *74 30' f3T, 31.30 ZEST 10 A MZXT 02 TU 601M L Co�ARIOA SAID tat S, 4R=cg Z8 WNT3b T 1.10 rm nu T so of SASO L01 Sf TXD= VAT 2.10 TUT WAY3�� =LUts� "Zo 2= S TQ Ta s 'r CORRn of sm THS EAST uss cw suc LOT 5 to Tu vQZM of 8i0IM1134. AR mzxzx rolt 1PRDi TRIAM ]PA18=111 TO at MID Yw CC!' m YZTX OZ'! RS OVZR Ta vzsT 23.00 MET OF Tu UST 43450 pan of sa ROM 11!.27 PgAt OP LM 3, 00 a= T95 9$92 16.00 MT Ov EAST 42.20 FSBT Of %%AT PO Z9X OS um s Mom sawmaLY, 02' SAID RORSI! tif.21 lzuve ALL I>< BLOCK ZO Of 7373 CIT4 OY M :S YKOr 114 THE CYTY Or ox 90WARDI31o, is TIM covm OF SASt SWULMWIBO, STATE Or CAL=lORiitflr A9 pa& PLAT ABCORZZD IM scat 7 OF 3l314S. PAGE . ..o#•^e na nor gA 20 COMf'1"R$ AND OM TES RUT 10,00 rZ$T OF Z'3iAT � / f JUL 16 '93 03:24PM P-62 0 pac= 13 - OOtti' ...... CCx ,lQCI�Ki AT A POINT OX TX8 XQILZ8 LZlB 08 COURT s�liCa KDRT$ 0O 70.00 TRET F85T PAOK '1't>E EAST LINZ O! SAD I= 4; cza e 11 3Q' VZST ALO0 TU EAST UNS Or TSM PRDp�� OR�s Y cvo ST R.C. �nzsos, A Dsstmi or 1t6•04 Im, TO THE LOATH Lin OP SaIg LOT 4: TWCB L%STMT 36.06 FELT AIA THE 140ATI LZMI DP SAID LOT 41 TMCS SCUM-Q p2 . '0 in NORTH ugs O? C=,r STFXMS Tea mOATS L221E Or COCA? STUST, 31.16 lass to TM POINT or MQZ=tlsl. A&sc rAm VIST 10 PBET OP TH& 8AST 34.24 Yan or LOT 4, az= 30 As smu AXO an rcm in TUT CsRSAIN 0880 YXEi zx PXO ZR mm TWST CMUT zs � OVANM no • IZTU us_ D STEM 2S. 1188 In YAM m OCSOSS't 130 z92G 6, 8 4278 PA= It$ MUM Racoti0a• $tczps TOT prs0s zxcw= = PAa+cSS, sos a. asa = u8�=x• czL 3W, AL y BS,OCt la* Ot Soli CI'T'Y co us AsRl==*t ►S cZTf 1 Oa Y+Or t1�s C00>�T! Op $IAN 1Bm=tmt STUB cw zx cs o� six A$ PER pL11'E �tsCO'RD� am s=7 05 � ism p l� as 4w 5AS8 COMM 9 0 sDG mmus YX m Cam un of >< u= UIL 08 to LZ>tS cw its LiS4 50•T5008S i.ISD n� 'a= #a sang TSB 60 5 T'o Sze ztm z�M si�i0 ILO =CS1�L t = rRiS 1!. 1.!!4 t !I! 800! Lzu a? 000A'9 S TO am s0o'l' nsif 35.58 l88T AtA11a � A'� CpRitLA Qt TS8 =� �Q.OORasD ilSOl��� to ��• +tlO1W t LZlt� Op A 2SQ8t PLDE Tat OSl 86 � YL�B'1! LI88 0! 0 D SUN HALL= T Am Lz� of gAIO !Is ULL vo TRS 6 SUN co>sPAtT Lazo � c�xs� Lzwl of TES LAMA Comm Z8 4210 PA" ZA7�4, Mal F ED SO TAM �s0 AOGOSZ 12. 1108. 211 XfiOX t TIM 22.38 Ign MANd 'u of SAW iZ TXZ 0=0 To P% n"TM TAXD sz= s1t8t�CS mm =0 Cv1�xANtt ��� SO==40 00 eQOX 3509. PJ►dE 910 OlPICZ>1L 1tLC0RD8s 1' C►E TRUST TM ZAST tozim air SAID MUMS= mm.COlt?7NtY It A KM AWIG THS CZMR LM Or U10 MUCK W" TO "s POTUT d! 8AGuxud• % zjkltczz., *04-21 ALL, T1�1►T ?CIITSOts OF LOTS 6 » 71 BS�OCX 20, 110001DI?1< TD !!Ap OF TXS CITY Oir 81102 88>C W1106 IM To CSTT O! SAX BEAR�Yi�iOr ttu IN of SAM 31 ULMDzyce 6Zili's of D$o0t=$A D AS PIA CO�Ad I O a��a AS sw1: 7 DP HAS+Q t PAGE 1 t Aa PD=Vfv r JUL 16 '93 03:25PM' P.63 �✓ 0 s'N LYRE OP COURT gTgBET� 98 r$t'=' $,AST OP ?I{a ozrjxmvzvo ON TxZ NOR OPT 80UTg iD OF A WEST LINE al LOT 7, la=lt 20. AT %W CERTER PARTY W " C8 14ORTS � IONG m czWEA a�,D PARTY iiAM joiciR S ? As p�R AS SAID WAIL ZZTEM J1ND cyNT2EOIN6 1► DI$'='!►E OF I2 PRET TO A PDX 1tE1S� IE1S 143 P29T jS 888'!iS R'l��ICB!so= 122 73E ` TO CMT STRSETj TMIC8 IMST 45 PEES' TO TO P011tT C! SN'sMZXQ- ExesrssrG TSZREFROS A PORTION CO o so "25M�C AND SI►M A:=8 M FZX osSD RMRC= = 8 = 947,1 t� sit. Awo AEG TMMOM TARO Pam= Lium VZ=ty "to LCZ E• ! D! LOTS gt pCE 20 CM! 0! Sit aEiQthmm, Zvi To CYt's or AEC4ltbl0 SE'RtilutDSADi iTA'j'S OF AS PEA pABC�ZHEO ! O! �0►p�ri ! S, agCom at sm r W"I" is a?:gas so�ae fas un of a sn 'roxso cz cW � a � go= of an softsw = lu cW ago syr�apa am pIYZDZ1iG L T I= MOSM OAxIO EZ W.J. COATIB� SillO Chi u)T mm An In Lot olim im COVZRAD � iEn A TOM pRrpypilQASSO�I R _i 1► c2no LId at 91110 By VISTA= O! Be MMA, to RIB mm to RoanT E. � AED Co !> 8 3�S oP Its T WZST 23 xti6GSr 31f 19000 tit �oo�cs�s III s� sonar Ls� o� 8887 5 YxCAE3� "a OR �ipoLn ss ZIM TMWJICM sY a volm SSLT SAID COEit AM == Wo y CK � T� PIRi Mme, CGIAI 'I'1W'!`Ilm Ta PaOLORCis2Cs OP '1'm O: � WIW134 FOF.aS�•= tJt0Y1[ vssT 93" o! Ta &A s%' STMM RAT ARO &LCNO Tu com T."m oa AS Sunit az=; 8 BRLt PAOLOaW►Z was Mao, 6 8 SA=D rzu VX,6t an gag TU PEEP# NOR! OA LiSB. im SATE LIRE of� � aT'X23 I AS rocs►,faa: Tallo ' 0. Fass. S sxCNPg. xrowt o!t z8s8, To saa p0=�r of eaGZ�2eia'x� PMT2 TOGBTSrR WITH RLL =XTBA$8s iiYl® z'AE BELLER EOi W _� MALL 08 'F1�$ WB,ST 1 T� ZaG9T�S 8p; m O zns Ias g V COraTED W 887.LE 8? fl M AECOR080 pCvm9A 13. 1924 r � SC4R COiSPlliit'Y 'Z'0 Y.E• L80l1ARD 11x0 874, VAss 2571 01 088D6• i i JUL 16 '93 03:25PIl P.64 0 • THAT PORTION O! 1AT 7, 01= IO STS Or Sa CITY � gap fBR�AIXOi ?.p m cam= or SAM saw z%3100 OP CAL,TCYJ f AS m ITAT RRGORQED I1f 8== 7 OF XAVS j pa= 2. Rzcros OF Sam COVM TO 082CRIUD " FOLtA"s BBG=:No AT s A POINT ON TES. MRTS LIxO OF cm, BTR"T" BUT 21.62 f'88'l' IPA= I= NEST "n ofr Sao wr Y, "ID Pozxf UZM AT OM 60?mA 'I C0FJM OF A at= &M CORM" MWIMa CMTRU= Fm m Plana I%= IysGOA:S d MI orcwp=t OIma cO�R'iRulm &%Sft 23.10 FEES TO 'lam C ' al m i pan 0 M. 06, 334 VW# 60.00 MW AZ4M SASa C po IN LY11E OT fi IMCfi Waal a== I== s! OM $4, 024 VWT# 23.00 Txm naS To smo sags � W In p=tea; v8��e.i0 Fps C MAM 60ZLDims VA= Sam o fifes• ssAW os=fi UST V= To am " o: 11r=ZjG1saa. no TO mS Amm CI" mm nun LTM ' i S40l8EALY �itSgY 0� ' 'ice l��� Liita, LZif2. f JUL 16 '93 03:26PM P,65 ATTACHMENT NO. 7 ��na Ati'FT (J T D 7SG_ LTIl� rrxnryrt�7Z�' C]F ..v�wren 1. For valuable consideration,Fore (h xein8fterRcalled Fox ussell Hatle, sam �' x romise to pay to the " ui 1 ors") uncondi i a Y guarantee an p Redevelopment Agency of the City of San Se demand it lawfulrmoneytof or called "Loan Guararit$r" and indebtedness called Heritage rrower the Uni a, California limited partnership► Building, Ltd. , "Borrower") to Loan Guarantor. (hereinafter collactively called Borrower ) The Word "i.ndebtedness" is used herein in its most Obligationgnsand sense and includes any and all cne or more boof►them, heretofore, liabilities of Borrower or any now, or hereafter made, incurred or created, whether voluntary o and however arising, whether due or not flue, absolute involuntary idated, determined or or contingent, liquidated or unliq liable individually or be undetermined, and whether hether recovery may upon such indebtedness may jointly with others, any statute cf limitations, or be or hereafter become barred by whether such indebtedness may be or hereafter become otherwise unenforceable. called and Z. The Loan Guarantor has approved at a duly 19Q, (the held meeting of the roan tee of the Borrower's obligation "Meeting") execution of a qu gran which Agency Guarantee shall under a note (the "Agency Guarantee") , executed be secured by this guarantee (the "Personal Guarantee") , at any by Guarantors. The liability of Guarantors shall not exceed one time the sum of One Million one Hundrded n t e - Dollars ($1, 5 000) for principal, e A nc Guaran ee all f eon v d e s ctio 1 of ss or on su par erso ether ntaree upon e n e He up with penalty and interest as A encyrand1thehBorrower (thee"OPA")n Agreement by and between the g Loan Guarantor may permit, the Notwithstanding the foregoing, indebtedness of Borrower toie ctedanYind btednesa�,1includinglthat a continuing guaranty role g arising under success' transactions e to time Wr new sit lafterit hag been the indebtedness or from to anY satisfied. This Personal Guarantee shall not of indebtedness created efts cation$ as r to future transactions-Oz Any written notice of, its rev payment by Guarantors shall not reduce their maximum obligation hereunder unless writ o=rib rfa=to that the effect ee of g ch payment land by Loan Guarantor at Loan Guarantor. agreed to in writing by 3. The obligations hereunder are and a and several, and independent of the obligations of Borrower, or actions may be brought t and ortw�hethar Borrower nberjoined in action is brought against 7 - Page 1 JUL 16 '93 03:27PM P•66 i ens- and Guarantors waiver�� reunder or the any such action or acts + their liability • statuttbex'ao�.ng affecting enforcement Guarantor, on Guarantors authorize Loan Guarantor,' liabilit a er' 4• affecting accelerate, Or notice or demand and without opr ise, extend, a renew, or otherwise change the from time to time I time for payment of, ineludi increase otherwise Chang art thereof, (b03 take and terms of the indebtedness or any p or the payment of this Personal Give anal release or decrease of trig rase or rates of interest trig wa n► r hold security for the , and exchange, anfonce, order or indebtedness 9 uaranteed► such security and direct the any such securl thereof apply one or more of the sale thereof as Loan bstituter any its discretion may manner of. and (d) release or su without notice determine, endorsers or guarantors- in Wan hole or in part- this Personal ire Loan Guarantor g. Guarantors waive any right to r° b roceed against or exhain ,Laan to (a) proceed against Borrow c=i (�)�pursue any other remedy security defense arising held from Borrower; Guarantor's power what6°ems®r� or other rd f nse f the liability u reason of any disability cause whatsoover of th reason of the cessation from any u h such indebtedness is in Until all indebtedness co Bozrowar to Loan Guarantor have no of Borrower. aid in full► even though shall shall haVe been p hereunder, to enforce any xemedy excess of Guarantors' 1 and l give any right right of subrogation, or may hereafter have against which Loan Guarantor now has and any right to participate in benefit of, Loan Guarantor. Guarantors Borrower, and waive any not of any security now or hereaf demands bf r performance, waive all presentments, notices of protest, notices of dishonor, prote;ts, guarantee and of• the nonperformance, tance of this Pereonol 9n w or additional and notices f atiorpi, or incurring existence, indebtedness. of setof E shall be deemed to have 6. No lien or right art of ,Loan Guarantor, or been waived by any act or conduct on the P ht of setoff and fact to exercise such right of setoff g to f setoff such by any ne9 so doing; and avert rig of lien, or by any delay► in waived ox f leased by an instrument en shall continue In full once and effect until such right lien eaif ice y setoff or lien executed by Loan Guarantor-in writing 's fees Guarantors agree to pay reasonable attorney 7. bs incurred by Loan and all other costs g enfoandme� of ethis personal Guarantee. Guarantor in malty charges. S. This Personal Guarantee interest and pen Off Oct until by rincipal, accrued fees and expenses incurred such time as all p paid in full- , At such as applicable, and all other costa, roan Guarantor pursuant to the OPA have been P time as all financial responsibilities of Borrower to Loan ATT. 7 - Page 2 JUL 16 '93 03:27PM P_67 extinguished► this Personal Guarantee shall be Guarantor have been Guarantors. of no force and affect and shall be delivered to the r 9. in all cases where words used is bu.ainithe plural shall a single Guarantor► then • when be deemed to have been used in the singular Where the coast an an there is more than one Borrower construction so require► named herein, or when this d e sonalwers"r an ethg word executed Qunrantors" than one Guarantor, the word one or more of them respect ivQly shall mean all and any the undersigned Guarantors have IN WITNESS WHEREOF► ► 1993. executed this Personal Guarantee on GUARANTORS Ruasa Ratio Raymo Fox Sam FOX Hyman Fox ACCEPTED BY LOAN GUARANTOR: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By. Kenn Henderson, Executive Director x 7 • page 3