HomeMy WebLinkAbout05- Development Department D E V E L O P MEN T D E P A R T MEN T
)F THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: OSBORNE DEVELOPMENT
Executive Director CORPORATION
Date: June 17, 1993
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Synopsis of Previous Commission/Council/Committee Action(s):
On May 18, 1993, the Housing Committee recommended to the Community
Development Commission approval of $85,000 in available housing
set-aside funds for the purpose of facilitating Osborne Development
Corporation's construction of 45 single-family detached homes, and
authorized the Chairman and Executive Director to execute any and all
documents required to effectuate said transaction.
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Recommended Motion(s):
(Community Development Commission)
MOTION: That the Community Development Commission authorize $85,000
in available housing set-aside funds for the purpose of
facilitating Osborne Development Corporation's construction
of 45 single-family detached homes and authorize the
Chairman and Executive Director to execute an Owner
Participation Agreement (OPA) required to effectuate said
transaction.
I �
Administrator iEN J4HEERSON
Executive Director
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Contact Person(s) : Kenneth J. Henderson/David R Edgar Phone: 5081
Project Area(s): State College Ward(s) :
Supporting Data Attached: Staff Report
FUNDING REQUIREMENTS: Amount: $ 85,000 Source: Low/Mod Funds
Budget Authority: Requested
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Commission/Council Notes:
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KJH:DRE:JMc:paw:0214c COMMISSION MEETING AGENDA
Meeting Date: 6/21/1993
l�
Agenda Item Number:
Mama
D E V L 0 P M E N T D E P A R T M E , T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
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OSBORNE DEVELOPMENT CORPORATION
Osborne Development Corporation has submitted a request for financial
assistance to the Economic Development Agency (EDA) to effectuate
development of forty-five (45) high quality single-family detached
homes (the Osborne Collection at North Park).
Osborne Development Corporation has an extensive background in
successful residential development throughout Southern California.
This background includes construction of million dollar custom homes
and high quality single-family residential tract development within the
Inland Empire. Investigation by Agency staff indicates the developer
has financial capability and creditworthiness significantly beyond what
is necessary to complete the proposed project. Furthermore, the
developer holds a current contractor's license and is in good standing
with the Contractor's State Licensing Board.
The proposed development is located within the State College
redevelopment project area at the intersection of North Park Boulevard
and Westwind Drive (Please see attached site map) . This forty-five
(45) home residential tract was previously Phase II of the Griffith
Homes "neighborhood development". The Griffith Development consisted
of larger sized homes priced significantly higher than comparable homes
located within the vicinity. This resulted in serious marketability
issues for the project and financial difficulties for the developer.
Although unsuccessful in its initial development phase, Griffith Homes
proceeded to build foundations for forty-five (45) Phase II homes now
included in the proposed Osborne Development. The exiting lots have
remained partially built for over one (1) year, although all street,
curb, gutter and infrastructure improvements have also been completed.
Osborne Development has purchased the property from the Griffith Homes
construction lender and is now in the process of removing all
previously completed foundations.
The proposed single-family residential development, which still
consists of 7,200 square foot lots, shall include the following models:
* Three (3) bedrooms/two bathroom 1,200 square foot homes, priced at
approximately $116,900.
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KJH:DRE:JMc:paw:0214c COMMISSION MEETING AGENDA
Meeting Date: 6/21/1993
Agenda Item Number:
DEVELOPMENT DEPARTMENT STAFF REPORT
OSBORNE DEVELOPMENT CORPORATION -
June 17, 1993
Page Number -2-
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* Fifteen (15) three bedrooms/two bathroom 1,350 square foot homes,
priced at approximately $126,900.
* Sixteen (16) four bedrooms/two bathroom 1,600 square foot homes,
priced at approximately $136,900.
* Eleven (11) four bedrooms/two bathroom 1,800 square foot homes,
priced at approximately $143,900.
Based on exterior design elevations, overall appearance and sales
prices associated with these homes, it is obvious the developer intends
to construct both a quality home and neighborhood. This project
includes a variety of quality amenities including tile roofs, vaulted
ceilings, ceramic tile counter tops, oak cabinets, skylights, side and
rear yard fencing and front yard landscaping with automatic sprinklers.
Osborne Homes is extremely concerned about integration of the proposed
development with the existing Griffith Homes Development. The
developer has taken significant steps to ensure that both residential
developments integrate into a single "community", and that the design
and style of the respective developments blend together and are
consistent with each other.
Osborne Development is requesting $85,000 in Agency assistance to
effectuate development of the forty-five (45) home residential tract
subdivision. This assistance is necessary due to extraordinary site
preparation costs associated with the new development which resulted
from abandonment of the existing lots by the previous developer. The
Agency assistance would be provided as follows:
* $55,000 - Towards building permit fees, to be paid directly
to the City of San Bernardino.
* $30,000 - Towards additional "extraordinary" development
costs relative to site preparation.
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---------------
KJH:DRE:JMc:paw:0214c COMMISSION MEETING AGENDA
Meeting Date: 6/21/1993
Agenda Item Number:
DEVELOPMENT DEPARTMENT STAFF REPORT
OSBORNE DEVELOPMENT CORPORATION -
June 17, 1993
Page Number -3-
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Funding for this project would be provided from available low-mod
housing Set-Aside monies. These funds would be fully repaid within
approximately 1.5 years from tax increment monies generated by the
project. Following repayment, the project would then generate
approximately $65,000 a year in additional property tax revenues to the
Agency.
In addition to the above, the developer would be required to Set-Aside
20% of the homes (9 houses) as "affordable" housing for low-mod income
households (under 120% of area median income) for a ten (10) year time
period. This form of assistance offers potential home buyers similar
financial benefits to those families currently participating in the
Mortgage Assistance Program (MAP). If, however, these designated homes
are re-sold during the affordability period and no longer remain
"affordable", the Agency would recapture a pro-rata portion of funds
expended on this development. In essence, the Agency virtually ensures
ten (10) years of affordable housing (double the national average)
before assistance provided to this development is fully "forgiven". By
providing these resources, the Agency will have effectuated development
of forty-five (45) high quality homes, nine (9) of which must remain
"affordable" for a ten (10) year period.
On May 18, 1993, the Housing Committee recommended unanimously to the
Community Development Commission approval of $85,000 in available
low-mod Redevelopment funds, for the express purpose of facilitating
Osborne Development Corporation's construction of 45 single-family
detached homes, and authorized the Chairman and Executive Director to
execute any and all documents required to effectuate said transaction.
Based upon the significant heretofore mentioned benefits to the
surrounding neighborhood and community, and the amount of Agency
assistance being requested, Agency staff recommends adoption of the
form motion.
KENNETH J. HE DERSON, Executive Director
Development Department
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KJH:DRE:JMc:paw:0214c COMMISSION MEETING AGENDA
Meeting Date: 6/21/1993
Agenda Item Number:
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STYLISH INTERIORS HANDSOME EXTERIORS
•Ceramic tile entries •White enamel finish exterior
•Vaulted ceilings sliding glass door and window
•Wood burning fireplaces with frames; oval and radius designs
gas log lighters and energy (some plans)
saving glass screens •Lace texture stucco finish
•Architectural skylights(most plans) • Concrete driveways and walks
•Formal dining rooms •Decorator selected exterior
•Plush carpeting in all rooms electrical fixtures
except kitchens and baths • Slide bolt security
•Decorator wrought iron weatherstripping
balusters and railings •Front yard landscaping with
•Custom painted ceilings automatic irrigation systems
•Custom rounded wall corners •Cedar fencing
GOURMET KITCHENS •Long life file roofs
•Decorator selected plumbing ENERGY SAVING&
fixtures SECURITY SYSTEMS
•Ceramic file countertops
•GE gas oven with range •High efficiency central air
GE multi-cycle dishwasher conditioning and pilotless
with energy saving feature forced air heating with night
• 1/a horsepower garbage disposal set-back thermostat
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•Projected luminous lighting R-15 insulation in walls
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•Hand selected oak cabinets
•Garden windows(most plans) • Security bolted front doors
•Breakfast bars •Water conserving faucets
and showers
•Refrigerator spaces plumbed
for ice maker •Quick recovery gas water
heaters with insulating blanket
OPULENT MASTER SUITES
•Vaulted ceilings PROJECT FEATURES
•Walk-in wardrobes •Minimum 7,200 square foot
•Window seats(some plans) lots
• Sliding glass doors to patio • Special RV side yards(most lots)
areas(some plans) •Plush slope landscaping
PRIVATE BATHS (slopes over three feet)
•Block wall fencing(most
•Full length pullman mirrors perimeter lots)
•Double pullmans •Underground utilities
•No wax vinyl flooring • Cable TV
•Cultured marble tops •Many great view lots
•Decorator door and bath hardware
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the right to change plans,specifications,terms or prices without notice or obligation.
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5504 Weshvind Drive
San Bernardino, CA 92407 mucm
(909) 882-0899 6511
TUN 17 '93 04:02PM P.1
SBSO=VOS80RMOPA
6/8!93 LAS
RECORDING REQUESTED BY:
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND WHEN RECORDED RETURN TO:
SABO & GREEN,
a Professional Corporation
Suite 400
6320 Canoga Avenue
Woodland Hills, California 91367
(Space Above for Recorder's Use)
gZQBVELOPMKT AGENCY OF THE CITY OF SAN BERNARDINO
OWIME PARTICIPATION AORE19MENT
(O-10ME O� LLECTIO OF NORMWE&M)
By and Between
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
and
NORTEPARR BAN BBRNARDINOt LTD.
a California limited partnership
qW
TABLE OF CONTENTS
Paste
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 . . . . . . . 5
II. (200] AGENCY ASSISTANCE
A. [201] The Project . . . . . . . . . . . . . . • • 6
B. (202 ] Financing Assistance . . . . . . . 6
C [203] Affordable Housing Covenants . . . . . . . 8
III. [300) IMPROVEMENT OF THE SITE
A. [301] Improvement by Participant . . . . . . 10
1. (302] Scope of Development . . . . . . . . 10
2 . [303] Cost of Construction . . . . . . . . 10
3 . (304) Construction Schedule . . . . . 10
4 . [305] Bodily Injury and
Property Damage Insurance . . . . . 11
5. (306] City and Other Governmental
Agency Permits . . . . . . . . . . • 12
6. [307] Rights of Access . . . . . . . . 13
7 . [308) Local, State and Federal Laws . . . 13
8 . (309] Antidiscrimination During
Construction . . . . . . . . . . . 14
B. (310] Taxes, Assessments, Encumbrances
andLiens . . . . . . . . . . . . . . . . 14
C. [ 311] Prohibition Against Transfer of
the Site, the Buildings or
Structures Thereon and Assignment
of Agreement . . . . . . . . . . . . . . 14
(1)
D. [312] Mortgage, Deed of Trust, Sale
and Lease-Back Financing;
Rights of Holders . . . . . . . . . . . . . 16
1. [313 ] No Encumbrances Except Mortgages,
Deeds of Trust or Sale
and Lease-Back for Development 16
2 . [314] Holder Not Obligated to
Construct Improvements . . . . . . . 17
3 .
[315] Notice of Default to Mortgagee
or Deed of Trust Holders;
Right to Cure . . . 17
4 . (316) Failure of Holder to
Complete Improvements • . 18
5. [317] Right of Agency to Cure Mortgage
or Deed of Trust Default . . . . . . 19
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401) Uses - Covenants Running With the Land 20
B. (402) Maintenance of the Site . . • 24
C. [403] Effect of Violation of the Terms
and Provisions of this Agreement
After Completion of Construction . . . . 24
V. [500] GENERAL PROVISIONS
A. [501] Notices, Demands and Communications
Between the Parties . . . . . . . 26
B. [502) Conflicts of Interest; Nonliability 26
C. [503] Enforced Delay; Extension of
Times of Performance . . 27
D. [504) Inspection of Books and Records . . . . . 28
VI. [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General
B. 29
[602] Legal Actions . . . . . . . . . . . . . . 29
1. [603] Institution of Legal Actions . . . . 29
2 . [604) Applicable Law .
3 . • 30
[605) Acceptance of Service of Process 30
C. [606] Rights and Remedies are Cumulative .
D. (607) Inaction Not a Waiver of Default . • 30
E. [608] Remedies . . . . . . . . . . . . . . . . 31
I 1. [606) Damages . . . . . . . . . . . . . . 31
VII. [700] SPECIAL PROVISIONS
A. [701] Submission of Documents to
Agency for Approval . 32
B. [702) Successors in Interest . . . . . . . . . 32
(ii)
VIII . [800] ENTIRE AGREEMENT, WAIVERS . . . . . . . . . . 33
IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A. [901] Time for Acceptance . . . . . . . . . . . 34
ATTACHMENT NO. 1 - LEGAL DESCRIPTION
ATTACHMENT NO. 2 - SCOPE OF DEVELOPMENT
ATTACHMENT NO. 2A - FOOTPRINTS AND ELEVATIONS
ATTACHMENT NO. 3 - SCHEDULE OF PERFORMANCE
ATTACHMENT NO. 4 - HEALTH & SAFETY CODE SECTION 50052.5
ATTACHMENT NO. 5 - PROMISSORY NOTE
ATTACHMENT NO. 6 - DEED OF TRUST
(iii)
4
SBE00001/OSBO RN E/OPA!cw
6/8/93
OWNER PARTICIPATION AGREEMENT
THIS AGREEMENT IS ENTERED INTO this 9th day of
JUNE , 1993, by and between the REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO (the "Agency") and NORTHPARK SAN BERNARDINO,
LTD. , a California limited partnership (the "Participant") . Agency
and Participant hereby agree as follows:
I. [100] SUBJECT OF AGREEMENT
A. [101] Purpose of Agreement
The purpose of this Agreement is to effectuate the
Redevelopment Plan for the State College Redevelopment Project (the
"Redevelopment Plan") by providing for Agency assistance to
coParticipant for the development of the Site, which is located
within and will benefit the State College Redevelopment Project
Area (the "Project Area") of the Redevelopment Plan. The
development of 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. The Community Development Commission, acting
on behalf of the Agency, has determined that the uses contemplated
by this Agreement will benefit the low- and moderate-income housing
needs of the City and the Redevelopment Plan, and has authorized
0
the use of funds from the Agency's Low- and Moderate-Income Housing
Fund.
B. [102] The Redevelopment 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.
C. [103] The Site
The Site is that certain real property comprised of
several parcels generally located on the north side of the
intersection of North Park Boulevard and Westwind in the City of
San Bernardino and is 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 the Agreement
1. [105] The Agency
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, et sect. )
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
2 -
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 . [106] The Participant
The principal office and mailing address of the
Participant for purposes of this Agreement is Northpark
San Bernardino, Ltd. , c/o Osborne Development Corporation, as
General Partner, 22892 Mill Creek Drive, Laguna Hills, California
92653 , Attn: Robert Osborne.
The Participant qualifies as an owner participant
pursuant to the Redevelopment Plan and rules promulgated pursuant
thereto pertaining to owner participation.
3 . [107] Prohibition Against Change in Ownership
Management and Control of the Participant
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.
3
�s-
Nothing in this Section 107 shall act to restrict the sale of
completed residential units developed on the Site to qualified
purchasers if
P said sales are otherwise in compliance with the terms
of this Agreement.
4 . [108) Benefit to Project Area
Agency has determined that the development of the Site in
accordance with this Agreement will eliminate blight and provide
needed low- and moderate-income housing to the Project Area and the
community generally.
5 -
II . [200) AGENCY ASSISTANCE
A. [201) The Project
The Participant shall develop the Site by developing
forty-five (45) single family residential units of which nine (9)
such units shall be reserved for sale to, and occupancy by, low-
and moderate- income households (the "Project") . The Project shall
be developed in three (3) phases as more fully described in the
Scope of Development attached hereto as Attachment No. 2 and
incorporated herein by this reference. The Project shall also be
developed in accordance with the footprints and elevations as shown
on Attachment No. 2A which is attached hereto and incorporated
herein by this reference.
B. [202] Financing Assistance
In order to assist in the development of the Project, the
Agency shall provide financial assistance in a total amount not to
exceed Eighty Thousand One Hundred Dollars ($80, 100) (the "Agency
Assistance") . The Agency Assistance will be provided as follows:
With respect to each of the forty-five (45) lots to be developed,
the Agency shall pay to the City Building Department, on behalf of
Participant, the costs of City building permits for each lot, up to
a maximum amount not to exceed One Thousand Seven Hundred Eighty
Dollars ($1, 780) (the "Building Permit Amount") . To the extent the
costs of the building permits for any of the forty-five (45) lots
is less than the Building Permit Amount, the remaining balance up
to the Building Permit Amount shall be paid directly to the
Participant to assist in the payment of development costs related
to the Project. To the extent the costs of any building permits
6 -
exceed the Building Permit Amount, the Participant shall be solely
responsible to make up the difference necessary to secure the
building permit. To the extent the Participant has previously paid
the costs of any building permits for any of the lots, the
Participant shall be entitled to a reimbursement from the Agency of
the costs of such building permits up to the Building Permit
Amount; provided, however, that the Participant provides the Agency
with satisfactory evidence that the applicable building permit has
been paid for and obtained.
The Agency Assistance shall be provided in three (3)
phases consistent with the development of the Project, as described
in the Scope of Development (Attachment No. 2) , provided, however,
that no payments shall be made with respect to Phase II or Phase
III of the Project until all of the required framing work for the
immediately preceding Phase has been completed. To the extent the
Participant does not commence construction on a particular lot
prior to the expiration of an issued building permit (s) , the Agency
shall withhold the disbursement of any additional funds
representing the Agency Assistance with respect to any additional
units until the Participant has fully paid, from his own funds, the
costs of a new building permit(s) for the applicable lot(s) .
The Agency Assistance may only be used by Participant for
Purposes of paying costs related to the Project and 'Participant
agrees not to use any portion of the Agency Assistance or any other
project unrelated to this Agreement.
CO
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C. (203 ] Affordable Housing Covenants
In consideration for the provision of the Agency
Assistance, the Participant shall make nine (9) of the units
comprising the Project (the "Low and Mod Units") available to
households who are of low- and moderate- income as defined in
Health & Safety Code Section 50093 , as amended from time to time,
and who seek to purchase residences to be constructed on the Site
at affordable housing cost as defined in Health and Safety Code
Section 50052 . 5, as may be amended from time to time, a copy of
which is attached hereto as Attachment No. 4 and incorporated
herein by this reference. The Agency shall provide to the
Participant the parameters of such ownership, including the income
limits, adjusted for family size, that shall apply to the purchase
of such residential units. The Participant agrees to be bound by
all limitations to be established by the Agency and/or any
Conditions and Covenants and Restrictions as may be imposed by the
Agency applicable to the Low and Mod Units, as to income limits for
the residences on the Site.
With respect to the sale of each of the Low and Mod
Units, the Owner shall require the purchaser thereof to execute a
no interest Promissory Note in substantially the form of Attachment
No. 5 attached hereto and incorporated by this reference in favor
of the Agency in the principal amount of Eight Thousand Nine
Hundred Dollars ($8 , 900) secured by a Deed of Trust substantially
in the form of Attachment No. 6 attached hereto and incorporated
herein by this reference. The principal balance of the Promissory
Note shall be reduced annually on each anniversary date by an
8 -
S
amount equal to Eight Hundred Ninety Dollars ($890. 00) to the
extent the applicable Low and Mod Unit remains occupied by a low
and moderate income household. In the event that the Low and Mod
Unit is sold prior to the expiration of ten (10) years after the
date of purchase, to a purchaser who does not qualify as a low and
moderate income household, the remaining principal balance of the
Promissory Note shall become fully due and payable immediately. If
no such sale occurs, the Promissory Note and Deed of Trust shall be
forgiven in full at the expiration of the ten (10) year period.
The Promissory Note and Deed of Trust shall be 'fully assumable on
the same terms and conditions by any subsequent Low and Moderate
Income household within the ten (10) year term.
9 -
4
III. [300) IMPROVEMENT OF THE SITE
A. [301] Improvement by Participant
Participant and Agency agree that the central purpose of
this Agreement is to provide for the construction on the Site of
forty-five (45) detached single family residences in a manner
consistent with the Redevelopment Plan of which nine (9) are to be
occupied by low- and moderate-income households. All of said homes
will be of high quality and will be constructed with a full range
of amenities, all as described more fully in the Scope of
Development (see Section 302) . Four different models of home will
be available as more fully described in Section 302 .
1. ( 302 ] Scope of Development
The Site shall be developed by'Participant as provided in
the "Scope of Development" , which is attached hereto as Attachment
No. 2 and is incorporated herein.
2 . (303) Cost of Construction
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] Construction Schedule
Upon execution of this Agreement, Participant will
promptly begin and diligently prosecute to completion the
construction of the Project. Participant shall begin and complete
all construction and development of the Project within the times
10
S
specified in the "Schedule of Performance" which is attached hereto
as Attachment No. 3 and incorporated herein. Participant shall
strictly conform to all time requirements and limitations set forth
in this Agreement.
4 . [305] Bodily Iniury and Property Damage
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 policy, including contractual public liability, as shall
protect Participant, City and Agency from claims for such damages
until two (2) years after the completion of the Project.
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
of the insurance coverage. This countersigned certificate shall
name the City and Agency and their respective officers, agents, and
- 11 -
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
other wise pursuant to this Agreement carries workers ' compensation
insurance as required by law.
5. (306) City and Other Governmental Agency Permits
Before providing the Agency Assistance or any portion
thereof and/or commencement of the Project or other construction or
development of any buildings, structures or other works of
improvement on the Site, Participant shall at its own expense
secure or cause to be secured any and all permits for all necessary
off-site improvements which may be required by the City or any
other governmental agency having jurisdiction over such
construction, development or work.
12 -
Except as otherwise provided in Section 2 . 02 hereof,
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.
6. [307] Rights of Access
For the purpose of assuring compliance with this
Agreement, representatives of Agency 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 of
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 the Agreement.
7. [308] Local. State and Federal Laws
Participant shall carry out the construction of 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
13 -
S�
_, .
waiving their rights to contest any such laws, rules or standards.
8• [309] Antidiscrimination Durin Construction
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 Assessments Encumbrances and Liens
Prior to the issuance of a Certificate of Occupancy for
the last residence developed on the Site, Participant shall not
place or allow to be placed on the Site or any part thereof any
mortgage, trust deed, encumbrance or lien other than as expressly
allowed by Section 315 or any other provisions of this Agreement.
Participant shall remove or have removed any levy or attachment
made on any of the Site or any part thereof, or assure the
satisfaction thereof within a reasonable time but in any event
I prior to a sale thereunder.
C. [311] Prohibition h--4-st Transfer of the Site the
Buildings or Structures thereon and Assignment
of Agreement
1. Prior to the issuance by the Agency of a Certificate
Of Completion as to any building or structure, Participant shall
not, except as permitted by this Agreement, without the prior
written approval of Agency, make any total or partial sale,
14
transfer, conveyance, assignment or lease of whole or any part of
the 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
I
facilitate the development of the Site.
i
2 . Upon obtaining a Certificate of Occupancy from the
City of San Bernardino for one or more of the residential units
constructed on the Site, the Participant shall use best efforts to
sell such unit in accordance with and subject to the restrictions
set forth in this Agreement.
3 . The deed to any purchasers of the residential units
to be reserved for low- and moderate-income households shall
require that the units be owner occupied by persons living in the
units as their principal residences and shall further require that
such units shall remain available at affordable housing costs to
the families of low- and moderate-income for a period of not less
than ten (10) years subject to any exceptions as may be provided by
the Agency.
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�' -- -,w.
D. [312) Mortgage, Deed of Trust Sale and Lease Back
Financing: Rights of Holders
1. [313] No Encumbrances Except Mortgages Deeds
of Trust or Sale and Lease-Back for
Development
Mortgages, deeds of trust and sales and lease-back are to
be permitted before completion of the construction of the
improvements, but only for the purpose of securing loans of funds
to be used for financing the development of the Site, the
construction of improvements on the Site, and any other purposes
necessary and appropriate in connection with development under this
Agreement. Participant shall not enter into any other 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 given to a bank, savings and loan association, or
other similar lending institution and the terms of said financing
are reasonably acceptable to Agency. The form of approval by
Agency shall be in writing which references this Section 313 ,
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.
16 - +�
2 . [314] Holder Not Obligated to Construct
Improvements
The holder of any mortgage or deed of trust authorized by
this Agreement shall not be obligated by the provisions of this
Agreement to construct or complete the Project or to guarantee such
construction or completion. Nothing in this Agreement shall be
deemed to construe, permit or authorize any such holder to devote
the Site to any uses or to construct any improvements thereon,
other than those uses provided for or authorized by this Agreement.
3 . [315] Notice of Default to Mort a ee or Deed of
Trust Holders; Right to Cure
With respect to any mortgage or deed of trust granted by
Participant as provided herein, whenever Agency shall deliver any
notice or demand to Participant with respect to any breach or
default by Participant in completion of the construction of the
Project, Agency shall at the same time deliver to each holder of
record of any mortgage or deed of trust authorized by this
Agreement a copy of such notice or demand. Each such holder shall
(insofar as the rights of Agency are concerned) have the right, at
its option, within thirty (30) days after the receipt of this
notice, to cure or remedy or commence to cure or remedy any such
default and to add the cost thereof to the mortgage debt and the
lien of its mortgage. Nothing contained in this Agreement sha.11 be
deemed to permit or authorize such holder to undertake or continue
the construction or completion of the Project (beyond the extent
necessary to conserve or protect the Project or construction
already made) without first having expressly assumed the
17 -
Participant's obligations to Agency by written agreement
satisfactory to Agency. The holder, in that event, must agree to
complete, in the manner provided in this Agreement, the Project to
which the lien or title of such holder relates, and submit evidence
satisfactory to Agency that it has the qualifications and financial
responsibility necessary to perform such obligations.
4 . (316) Failure of Holder to Complete
Improvements
In any case where, thirty (30) days after default by the
Participant in completion of construction of Project under this
Agreement, the holder of any mortgage or deed of trust creating a
lien or encumbrance upon the Site or any part thereof has not
exercised the option to construct or if it has exercised the option
and has not proceeded diligently with construction, Agency may
purchase the mortgage or deed of trust by payment to the holder of
the amount of the unpaid mortgage or deed of trust debt, including
principal and interest and all other sums secured by the mortgage
or deed of trust. If the ownership of the Site or any part thereof
has vested in the holder, Agency, if it so desires, shall be
entitled to a conveyance from the holder to Agency upon payment to
the holder of an amount equal to the sum of the following:
a. The unpaid mortgage or deed of trust debt at the
time title became vested in the holder (less all appropriate
credits, including those resulting from collection and application
of rentals and other income received during foreclosure
proceedings) ;
18 -
b. All expenses with respect to foreclosure;
C. The net expense, if any (exclusive of general
overhead) , incurred by the holder as a direct result of the
subsequent management of the Site or part thereof;
d. The costs of any portion of the Project incurred by
such holder; and
e. An amount equivalent to the interest that would have
accrued on the aggregate of such amounts had all such amounts
become part of the mortgage or deed of trust debt and such debt had
continued in existence to the date of payment by Agency; less
f. Any income derived by the lender from operations
conducted on the Site (the receipt of principal and interest
payments in the ordinary course of business shall not constitute
income for the purposes of this subsection f) .
® 5. [317] Right of Agency to Cure Mortgage or Deed
of Trust Default
In the event of a mortgage or deed of trust default or
breach by Participant prior to the completion of any part thereof
and the holder of any mortgage or deed of trust has not exercised
its option to complete construction, Agency may cure the default.
In such event, Agency shall be entitled to reimbursement from
Participant of all proper costs and expenses incurred by Agency in
curing such default.
19 - L
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401] Uses - Covenants Running With the Land
Participant covenants and agrees for itself, its
successors, its assigns, and every successor in interest to the
Site or any part thereof, that for a period of ten (10) years
commencing on the date of the issuance by City of the Certificate
of Occupancy on each of the Low and Mod Units to be constructed by
Participant and reserved for low- and moderate-income housing
purposes, each of the Low and Mod Units will be devoted to and
available for sale solely to persons or families with an income
which are low- and moderate to very-low, as those terms are defined
in Health and Safety Code Sections 50093 (low- and moderate-income)
and 50105 (very low-income) , with sales costs of each residential
unit to be at an affordable housing cost (as such term is defined
in Health and Safety Code Section 50052 . 5, a copy of which is
attached hereto as Attachment No. 4) .
The foregoing covenant shall run with the land for ten
(10) years commencing on the date that the City issues the
Certificate of Occupancy on each of the Low and Mod Units.
The Agency shall, after the date of this Agreement,
consider and adopt guidelines and restrictions as it deems
necessary for compliance with, the provisions contained in the
California Community Redevelopment Law and in particular, those
Sections thereof that permit the use of the Agency's Low- and
Moderate-Income Housing Fund. The Participant acknowledges that
the source of funds to be utilized to fulfill the Agency's
- 20 -
financial commitments under this Agreement shall be tax increment
revenues on deposit in the Agency's Low- and Moderate-Income
Housing Fund. The Community Redevelopment Law, and in particular,
Health and Safety Code Section 33334 . 3 , requires the Agency to
impose certain limitations on the income of prospective purchasers
of the units and the maximum sales price of the units, based upon
affordability as may be determined by the Agency. The Participant
agrees to include within the content of the grant deed and any
other appropriate disclosure documents as may be reasonably
necessary to implement this Agreement, such provisions as are
necessary in furtherance of the guidelines and restrictions to be
adopted by the Agency pursuant to this section as a means of
complying with the intent of said Health and Safety Code
Section 33334 . 3 .
The Participant further covenants and warrants that
Participant shall develop improvements on the Site in accordance
with the Scope of Development. Participant covenants to develop
i the Site in conformity with all applicable laws. The covenants of
I 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,
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
- 21 -
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
v
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 vendees in the land herein conveyed. The foregoing
covenants shall run with the land. "
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
22 -
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 vendees of the
premises. 11
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-- ..►
B. [402] Maintenance of the Site
Participant shall, until sale of all of the forty-five
(45) residential units, maintain any portion of the Project which
remains unsold and all other improvements on 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 until construction of the improvements
described in this Agreement is complete 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 within one
thousand (1, 000) feet of the Site, and 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
i (30) days after receipt by Participant of written demand therefor.
IC. [403 ] Effect of Violation of the Terms and
Provisions of this Agreement After Completion
of Construction
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 remain in effect until
24 -
s
the termination date of the Redevelopment Plan unless an earlier
date is specified. 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 or in the Project Area.
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.
25 -
V. (500] GENERAL PROVISIONS
A. (501] Notices, Demands and Communications Between
the Parties
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
g Y
Participant. Such written notices, demands and communications may
be sent in the same manner to such other addresses as such party
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• Nonliabilit
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
26
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.
C. [503] Enforced _Da1av; Extension of Times of
Performance
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
- 27 -
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
i
future difficulty in obtaining suitable temporary or permanent
financing for the Site.
D. [504 ] Inspection of Books and Records
Agency has the right at all reasonable times to inspect
the books and records of Participant pertaining to the Site as
pertinent nent 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.
- 28 - /_�
VI . [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General
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
I
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.
B. [602] Legal Actions
1. [603] Institution 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.
- 29 -
2 . [604] Applicable Law
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
3 . [605] Acceptance 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] Rights and Remedies are Cumulative
Except as otherwise expressly stated in this Agreement,
the rights and remedies of the parties are cumulative, and the
(W 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
times, of any other rights or remedies for the same default or any
I other default by any other party.
D. [607] Inaction 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.
30 -
0
E. (608) Remedies
1. (609) Damages
Prior to completion of the Project, 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.
31 -
Amok
VII. [700] SPECIAL PROVISIONS
A. [701] Submission of Documents to Agency for Approval
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] Successors 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.
32 -
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 5, 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.
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.
33 -
IX. (900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A. (901] Time for Acceptance
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.
34 -
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
i
By:
.TOM MINOR
Chairman
APPROVED AS TO FORM AND By:
LEGAL CONTENT: Kenneth J. Henderson
Secretary
By: r�
Special A cy Counsel
"Participant"
NORTHPARK SAN BERNARDINO, LTD.
a California limited partnership
By: OSBORNE DEVELOPMENT CORPORATION
a Caff-
By: corporation,
its artner
By:
o gW J'�o�l-✓�
Title:
SBE0\0W1\0SB0RNE OPA
I
35 -
s
STATE OF CALIFORNIA )
COUNTY OF )
On before me, (here insert name and title of
the officer) , 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.
Signature (Seal)
STATE OF CALIFO IA )
COUNTY OF
& On I 3 before me, (he ,e insert name and title of
the officer) , personally appeared yr ,
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.
Signature, T . Seal
vQ 4 jQ-�L� g��S�j3 ? �'=.. • OFFICIAL SEAL
JANIS P. BAXTER
NOTARY PUBUC-CALIF
SAN BEANAAOINO CpUNnr
j Yy ew"6k n bPh#Auk,A.IM
0 I
ATTACHMENT NO. 1
LEGAL DESCRIPTION OF THE SITE
APN 154-532-42 Thru 88 CONSISTING OF FORTY-FIVE (45)
SINGLE FAMILY RESIDENTIAL LOTS, CITY OF SAN BERNARDINO,
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
i
II
ATT. 1 - Page 1
ATTACHMENT NO. 2
0 SCOPE OF DEVELOPMENT
I. GENERAL DESCRIPTION
The Site is specifically described in the Legal
Description (Attachment No. 1) pursuant to Section 103 of this
Agreement.
II. DEVELOPMENT
Participant shall develop the Site by constructing homes
of varying square footage based upon the following floor plans:
( �) Plan One - approximately 1204 sq. ft. priced at
approximately $116, 900
( 13) Plan Two - approximately 1300 sq. ft. priced at
approximately $126, 900
( 17) Plan Three -approximately 1600 sq. ft. priced at
approximately $136, 900
( 12) Plan Four - approximately 1800 sq. ft. priced at
approximately $143 , 900
follows: Construction will be completed in three phases as
Phase I - 4 Models and 16 production units
Phase II- 12 Units
Phase III-13 Units
This mix and number of units per phase can only change
with prior notice and approval by the Agency.
Each home shall have full amenities and shall include the
following:
-- Concrete Tile Roofs
-- Ceramic Counter Tops
-- Fireplaces
-- Two (2) car garages
-- Front Yard Landscaping with Sprinklers
-- Side and Rear Yard Fencing
-- Skylights (some plans)
-- White Framed Windows
All of the improvements to be provided by the Participant
on the Site constitute the "Project. "
The Participant shall commence and complete the Project
by the respective times established therefor in the Schedule of
Performance (Attachment No. 3) .
ATT. 2 - Page 1
III• DEVELOPMENT STANDARDS
The Project shall be developed in accordance with
applicable building and safety codes.
IV. DEMOLITION AND SOILS
Participant assumes all responsibility ibilit
for
Y surface and
subsurface
face conditions at the Site, and the suitability of the Site
for the Project. If the surface and subsurface conditions are not
entirely suitable for such development and use, Participant shall
at its cost take all actions necessary to render the Site entirely
suitable for such development. Participant has undertaken all
investigation of the Site it has deemed necessary and has not
received or relied upon any representations of Agency, the City, or
their respective officers, agents and employees. Participant shall
undertake at its cost all demolition required in connection with
the development of the Project.
ATT. 2 - Page 2
ATUME P? AO. 2A
r OOTPRINTS AND ELEVATIONS
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ATT. 2A - PAGE 1
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ATT. 2A - PAGE 3
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•�fa�t9.s•:.�.�� \'�I�-a�C�����Cl`�:1��"t'_��--alb^;' l0 -� —itir, �: �(l..�j',.I •i� 3 ,fir`'.' .
Oslo, ��--r-----— =------- ,�• �:w; =�x-.� •'�� ,_ ice: ;.� f-S..
ATT. 2A - PAGE 4
r
F E A T U R E S
STYLISH INTERIORS HANDSOME EXTERIORS
• Ceramic tile entries • White enamel finish exterior
•Vaulted ceilings sliding glass door and window
•Wood burning fireplaces with frames; oval and radius designs
gas log lighters and energy (some plans)
saving glass screens • Lace texture stucco finish
•Architectural skylights(most plans) • Concrete driveways and walks
• Formal dining rooms • Decorator selected exterior
• Plush carpeting in all rooms electrical fixtures
except kitchens and baths • Slide bolt security
• Decorator wrought iron weatherstripping
balusters and railings • Front yard landscaping with
• Custom painted ceilings automatic irrigation systems
• Custom rounded wall corners • Cedar fencing
GOURMET KITCHENS • Long life vile roofs
• Decorator selected plumbing ENERGY SAVING &
fixtures SECURITY SYSTEMS
• Ceramic vile countertops
• GE gas oven with range • High efficiency central air
GE multi-cycle dishwasher conditioning and pilotless
with energy saving feature forced air heating with night
• 113 horsepower garbage disposal set-back thermostat
• No wax flooring • R-19 insulation in ceiling;
• Projected luminous lighting R-15 insulation in walls
• Hand selected oak cabinets • Smoke detectors
•Garden windows(most plans) • Security bolted front doors
• Breakfast bars • Water conserving faucets
• Refrigerator spaces plumbed and showers
for ice maker • Quick recovery gas water
heaters with insulating blanket
OPULENT MASTER SUITES
•Vaulted ceilings PROJECT FEATURES
•Walk-in wardrobes •Minimum 7,200 square foot
•Window seats(some plans) lots
• Sliding glass doors to patio • Special RV side yards(most lots)
areas(some plans) • Plush slope landscaping
PRIVATE BATHS (slopes over three feet)
• Block wall fencing(most
• Full length pullman mirrors perimeter lots)
• Double pullmans • Underground utilities
•No wax vinyl flooring • Cable TV
• Cultured marble tops • Many great view lots
• Decorator door and bath hardware
ATT. 2A — PAGE 5
In the interest of continuous improvement,Osborne Development Corporation reserves
the right to change plans,specifications,terms or prices without notice or obligation.
ATTACHMENT NO. 3
SCHEDULE OF PERFORMANCE
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 . Commence Construction Not later than the date of this
Phase I. Participant t o Agreement
commence construction of Phase
I.
3 . Commence Construction The balance of construction of
Phase II and Phase III . the remaining twenty-five (25)
Participant to commence units in two (2) phases shall
construction of Phase II and provide as a result of sales
Phase III. authority and the Participants '
ability to receive construction
financing.
All construction must be
complete (30) months of the date
of this Agreement as evidenced
by the issuance of a Certificate
of Occupancy.
4 . Complete Construction . Not later than thirty (30)
Participant shall complete months from the effective date
construction of the Project and of this Agreement.
obtain Certificates of Occupancy
on each of the forty-five (45)
residential units.
ATT. 3 - Page 1
ATTACHMENT N0. 4
Health & Safety Code
CHAPTER 2. DEFINITIONS
Section
00625. Definition.
I SWL& Affordable housing cwt
For any owus•occu ied housia which receives aaa'
u of t asamtance is con rior to Jan 1 1991 and a
uv�°e wt secbo 0
rewlet
to er income a not ex 25"- using �s
For Percent of gross iaoome.
°a ass oau ied bona' w+hieh receives aaaistaDOe on or after Jan
too aaaeatanoe to coin 1991 sad a
WW o ° coat not
(1) For Mery bw income L--holds the vrodud of 30�eroeat times b0
focvme sow-lea for f v sue appropriate or percent of the area median
snit
lower income bouaebokie whose Incomes exceed the maximum income for 10,
sot ex 70 t o era ale us 11 ud o at fiance 70 t o am sue
rule or nrut mcoak as aszc
or 0 t an war t a income t
an state or a area utre or ane K
_gross income o us cost not ex 80 t of
use
Fvr moderate income households affordable boua' coat shall not be leas thin 28
income o
income or ad 35 t tunes 110 0 of 4SL amcome t a mrome rum or uart t�oa or as aces
or sue K a 110 t o area
0 or an state or a income
IAg cost not ex nt o income o ame
use
° �e ad' t°hall,by ergalabon,adopt criteria defining,and providing for determination
gross income ad'uatmente for famD size a riate to the �
d r ug j o a e ouauzg cost .--�and housing cost for purposes of
AXernative criteria,where necessary be consistent��0a These regulations Buy proms
VOvernmg federally assisted housing. The pertinent ekeral statutes and regulations
p�saaat to subdivision (f)of Section 5046��may' regv adopt alternative criteria,and
�eney-assisted housing development 2' tetnatrve Percentages of income may be adopted for
With respect to moderate and lower income households who
d"elopments and men holden of cooperative ho are tenants of rental housing
ODOPentiv�es "affordable hoaSuig cost^ bas the Pena lnB developments, or limited equity
Seetioa 60053. same meaning as affordable rent, as defined in
Regulations of the department shall also include a method for de
tT cost, mortgage ban, or aalea price that will make housing available to an income group t
a8ordable housing cost_ group at
the or ur - -of this sec- "area Median income"shall mean
partsrent pursuant to n 60093 at+ea median income as publialied b
For purocses of this nectioa "moderate
—���, income household" shat] have the acme meaning
PWTwas and as
umujea of modelste nxome as e m von bU()93
For of this sectio and
or use are e t federal statutes lieable to a
ooe °i sue ro Hate to °rut a
M case o a Stu mean or a
to case o a tw m two na m ease o n o m three of
m case o n o m �O°t raona m e case o a m un raon
ve
(d®ended by Stats-1990,c 1523(S.B.13b2), j 1.)
ATT. 4 - Page 1
ATTACHMENT NO. 5
PROMISSORY NOTE SECURED BY DEED OF TRUS
$8, 900 Place: Redevelopment Agency
201 North "E" Street
Third Floor
San Bernardino, CA 92401
Date:
FOR VALUE RECEIVED, the undersigned promises
the Redevelopment Agency to pay to
of the Cit of San Bernardino (the
"Agency") or its successors, the sum of Eight Thousand Nine Hundred
Dollars ($8, 900) . Payment of principal shall be made as follows:
1. This Note shall have a term of ten (10) years from
the date of execution hereof.
2. This Note shall accrue no interest during its term.
3 . The principal balance of this Note shall be reduced
annually on each anniversary date by an amount equal to Eight
Hundred and Ninety Dollars ($890) to the extent the property which
is subject to the Deed of Trust securing this Note remains occupied
by a Low and Moderate Income Household as more fully described .in
that certain Owner Participation Agreement dated as of
by and between the Redevelopment Agency of the
City of San Bernardino and the undersigned (the "Agreement") .
4. In the event the property which is subject to the
Deed of Trust securing this Note is sold to a purchaser who does
not qualify as a Low and Moderate Income Household as described in
the Agreement, then the outstanding principal balance of this Note
shall be deemed immediately due and payable in full.
5. A failure to pay any sum provided for in this Note
when due or a material breach of this Note, the Agreement which is
the subject of this Note or the Deed of Trust, shall constitute a
breach hereof and shall entitle the Agency to declare all sums due
hereunder immediately due and payable and to pursue all remedies
available under this Note, the Agreement or the Deed of Trust.
All payments due under this Note shall be made in lawful
money of the United States at the principal office of the Agency,
201 North "E" Street, City Hall Annex, San Bernardino, CA 92401-
1507, or at such other place as may from time to time be designated
by the Agency in writing.
Notwithstanding any language herein to the contrary, this
Note shall become immediately due and payable in the amount of all
unpaid principal upon any transfer in violation of the Agreement of
title of the property described in the Deed of Trust to any person,
ATT. 5 - Page 1
P'1
firm or corporation other than the undersigned and except as
provided in said Deed of Trust, whether such transfer of title be
voluntary, involuntary, or b
Y y operation of law.
The undersigned reserves the right to prepay a
all P P Y tan time
or an Y
y part of the
principal amount of this Note without the
payment of penalties or premiums. All payments on this Note shall
be applied first to the principal due on the Note and the remaining
balance shall be applied to late charges or penalty interest, if
any.
IN THE EVENT the undersigned shall fail to a the
payments when pay
n due, and if such failure be subs'
days thereafter, the unpaid fisting thirty (30)
P principal amount of this Note, together
with any accrued interest and late charges, shall become due and
payable, at the option of the Agency, without notice to the
undersigned. Failure of the Agency to exercise such option shall
not constitute a waiver of such default. If the payments on this
Note are not paid within ten (10) days of the due date, the
undersigned shall pay to the Agency a late charge of 4% on the
amount past due and remaining paid. If this Note be reduced to
judgment, such judgment shall bear the statutory interest rate on
judgments.
In no event shall the interest and late charge payable
hereunder exceed the maximum amount of interest permitted under the
usury laws of the State of California.
If suit is instituted by the Agency to recover on this
Note, the undersigned agrees to pay all costs of such collection
including reasonable attorney' s fees and court costs.
THIS NOTE is secured by a Deed of Trust of even date,
duly filed for record in the office of the County Recorder of the
County of San Bernardino, State of California.
DEMAND, protest and notice of demand and protest are
hereby waived and the undersigned hereby waives, to the extent
authorized by law, any and all homestead and other exemption rights
which otherwise would apply to the debt evidenced by this Note.
ATT. 5 - Page 2
IN WITNESS WHEREOF, THIS NOTE has been duly executed by
the undersigned, as of its date.
By:
By:
By:
Title:
ATT. 5 - Page 3
ATTACHMENT NO. 6
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
(Space Above for Recorder's Use)
DEED OF TRUST WITH ASSIGNMENT OF RENTS
Deed of trust made on , 1993, by
hereinafter called "Trustor, " whose
address is
California Attn: '
"
Trustee ' to
business address is hereinafter referred to as �� , whose
California 0
in favor of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO,
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 thereof, 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 certain
Owner Participation Agreement and payment of the indebtedness
evidenced by a Promissory Note executed by Trustor in the principal
sum of Eight Thousand Nine Hundred Dollars ($8,900) , payable to
Beneficiary or order and each extension thereof, both executed in
connection with this Deed of Trust; and performance of each
ATT. 6 - Page 1
agreement to Trustor incorporated 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
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 costs 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 thereof or any act upon
the property in violation of law or of covenants, 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
charges 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 costs
this trust. , fees and expenses of
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 deems 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 judgment of either,
appears to be superior hereto; and in exercising 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 two percentage points
over Bank of America 's published prime rate.
ATT. 6 - Page 2
B. It is mutually agreed that:
1. 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,
who may apply or release such moneys received therefor upon any
indebtedness secured hereby in such order as Beneficiary
determines, or at the option of Beneficiary the entire amount so
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 sum then due or of Beneficiary's right either to
require prompt payment of all sums then 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 so to pay. No waiver of any default shall be
a waiver of any preceding or succeeding default of any kind.
3. At any time or from time to time, without liability
therefor and with or without notice, upon written request of
Beneficiary and presentation of this deed and the secured note for
endorsement, and without effecting the personal liability of any
person for payment of the indebtedness secured hereby or the effect
of this deed upon the remainder of the property, Trustee may
reconvey 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 stating that all
sums secured hereby have been paid, surrender of this deed and the
note to Trustee for cancellation and retention, and payment of its
fees, Trustee 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
ATT. 6 - Page 3
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
concerned, 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 in payment of any amount secured by this deed of
trust, Trustor or such owner shall pay to Beneficiary in advance on
the first day of each month a reasonable rental for the premises so
occupied. On failure to pay such reasonable rental, Trustor or
such owner may be removed from the premises by summary
dispossession proceedings or by any other appropriate action of
proceeding.
7. If default is made in payment of any indebtedness or
in performance of any agreement hereby secured, then Beneficiary,
with or without notice to Trustor, may declare all sums secured
hereby immediately due and payable by instituting suit for the
recovery thereof or 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 also deposit with Trustee this deed, the secured
i
note, and all documents evidencing expenditures secured hereby.
8. Should Trustor, without the consent in writing of
Beneficiary, voluntarily sell, transfer or convey his interest in
the property or any part thereof, or if by operation of law, it be
sold, transferred or conveyed, then Beneficiary may, at its option,
declare all sums secured hereby immediately due and payable.
Consent to one such transaction shall not be deemed to be a waiver
of the right to require such consent to future or successive
transactions.
9. 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
time to time sale of all or any portion of the pr pertytbynpublic
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.
10. After deducting all costs, fees and expenses of
Trustee and of this trust, including cost of evidence of title and
ATT. 6 - Page 4
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 two 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.
il. Before Trustee's sale, Beneficiary may rescind such
notices 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
the rights, obligations or remedies of Beneficiary or Trustee
hereunder.
12 . 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 party thereof as is then affected by this
deed of trust is situated, appoint another trustee in stead and -of
Trustee herein named; and thereupon, the Trustee herein named shall
be discharged, and the trustee so appointed shall be substituted as
Trustee hereunder with the same effect as if originally named
Trustee herein.
13 . 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
unable, for any reason, to act. Any recital of such inability in
any instrument executed by any of such persons shall be conclusive
against Trustor, his heirs and assigns.
14 . All leases nor 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.
15. When requested to do so, Trustor shall give such
-further written assignments of rents, royalties, issues and
profits; of all security for the performance of leases; and of all
money payable under any option to purchase, and shall give executed
originals of all leases, now or hereafter on or affecting the
property.
16. 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
ATT. 6 - Page 5
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
default hereunder or invalidate any act done pursuant to such
notice. Beneficiary shall not be required to act diligently in the
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 sums actually received.
17. 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, may release any person now or
hereafter liable for performance of such obligation, and may extend
the time for payment or performance, accept additional
and alter, substitute or release any security. security,
18. 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.
19. No remedy hereby given to Beneficiary or Trustee is
exclusive of any other remedy hereunder or under any present or
future law.
20. The pleading of any statute of limitations as a
defense to any and all obligations secured by thi
waived, to the full extent permissible by law. is deed is hereby
21. In the event of default in the payment of any
indebtedness secured hereby, and if such indebtedness is secured at
any time by any other instrument, Beneficiary shall not be
obligated to resort to any security in an particular order;
the exercise by Beneficiary of any right or remedy with respect and
any security shall not be a waiver of or limitation on the right of
Beneficiary to exercise, at any time or from time to time
thereafter, any right or remedy with respect to this deed.
22. Trustor shall, upon request made by Beneficiary,
furnish the Beneficiary with annual statements covering the
operations of the property.
ATT. 6 - Page 6
23 . Beneficiary may collect a "late charge" not to
exceed an amount equal to four percent (4%) on the amount past due
and remaining unpaid on any installment that is not paid within -ten
(10) days from the due date thereof, to cover the extra expense
involved in handling delinquent payments.
24 . 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 note 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.
25. 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 hereto of
pending sale under any other deed of trust or of party 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.
MAILING ADDRESSES FOR NOTICES:
as Trustor:
Attn:
- I
ATT. 6 - Page 7
Executed at San Bernardino, California, on the date first
above written.
By:
By:
Title:
I
ATT. 6 - Page 8
STATE OF CALIFORNIA )
COUNTY OF ) ss.
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
ATT. 6 - Page 9