Loading...
HomeMy WebLinkAboutR37-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco SUBJECT: AMENDMENT NO.1 TO THE 1999 Deputy Director GRANT AGREEMENT BETWEEN THE or-. REDEVELOPMENT AGENCY OF THE . ' I CITY OF SAN BERNARDINO AND Ii I ~ ;.. f DATE: January 9, 2003 . . " ' , CASA RAMONA, INC. .1., ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.__.--- SvnoDsis of Previous Commission/Council/Committee Action!s): On January 9, 2003, Redevelopment Committee Members Anderson and Suarez unanimously voted (Council Member Estrada abstained) to recommend that the Community Development Commission consider this action for approval. _____________________________________________________________.___________________________________________________________________________________________.__________________________n______ Recommended Motion!,): (Community Develonment Commission) MOTION: A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORJZING THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY TO EXECUTE AMENDMENT NO, I TO THE 1999 GRANT AGREEMENT BY AND BETWEEN CASA RAMONA, INC. AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Contact Person(s): Maggie Pacheco Phone: (909) 663-1044 Project Area(s) N/A Ward(s): Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters Balance FUNDING REQUIREMENTS Amount: S 180,30822 Source: Housing Fund SIGNATURE: /' ( 1999 Housing Budget M?Jzo~ Maggie Pacheco, Deputy Director Commission/Council Notes: -------------- --------------- -------------------- ---------------- --------------------- ------------------ ------------------------------ ---------------------~------------------------------------------. P:\Clcrical Services Dcpl\Marl(aret Parkcr\Agenda\CDC 2003\03-01-21 Casa Ramona Amend No I Itcm.doe COMMISSION MEETING AGENDA Meeting Date: 01/21/2003 Agenda Item Number: ~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT _________________ ________________________________________ ____________________ ______________________ ______________________.___ _________________________n_____ ______________________________ Amendment No.1 to the 1999 Grant Al!reement Between the Redevelopment Al!encv of the Citv of San Bernardino and Casa Ramona, Inc. BACKGROUND: On May 6, 1996, the Mayor and Common Council approved a revised second year Action Plan component to the City's 1995-1999 CDBG Consolidated Plan. An allocation of $300,000 in CDBG funds was included within this revised Action Plan for an activity referred to as the "New Casa Ramona Project." The $300,000 in CDBG funds allocated to Casa Ramona was to be used to pay the cost of preparing architectural plans, specifications and environmental documentation for construction of a new Community/Senior Center to replace the old Casa Ramona building. In late May of 1996, as part of the preliminary environmental review process, Agency Staff contacted the State Historical Preservation Office (SHPO) regarding the proposed "New Cas a Ramona Project." Subsequently, SHPO determined that the existing Casa Ramona building was eligible for listing on the National Register of Historic Places. As a result of SHPO's determination, HUD advised Agency Staff that it would not release CDBG funds to prepare plans and specifications if all or part of the existing Cas a Ramona building was demolished. However, given the cost ofretrofitting the existing Casa Ramona Community Center, it did not make economic sense for Casa Ramona, Inc. to proceed with this development option; however, the proposed CDBG allocation could not be used to prepare plans and specifications for a new building. Consequently, Staff and Casa Ramona, Inc. began looking for alternative funding sources. Located immediately contiguous and adjacent to the existing Cas a Ramona Community Center building is the Ramona Senior Housing Complex which the Agency assisted with the construction financing in order to provide affordable housing units for the elderly (44 housing units; with a Agency covenant designating that not less than 20% of the units (8) are made available to low/mod seniors; 4 of the units must be set aside for very low income seniors). Because of the location and proximity to the Casa Ramona Community Center, the Ramona Senior Housing Complex was developed with minimal amenities or without many of the service amenities that are typically an integral part of elderly housing. Thus, the residents of the Ramona Senior Housing Complex are dependent upon the existing Casa Ramona Community Center to meet their service needs. The pending new Casa Ramona Community Center will enable Casa Ramona, Inc. to provide additional and enhanced services to meet the social, cultural, nutritional and recreational needs of the seniors occupying the Casa Ramona Housing Complex as well as benefit other low/moderate income residents within and outside the Mount Vernon Redevelopment Project Area. Because of the integral nature of the Casa Ramona Community Center and the Casa Ramona Housing Complex, on December 6, 1999, the Commission approved a $240,000 Grant Agreement between the Agency and Casa Ramona, Inc., and furthermore made specific findings related to the benefits associated with the proposed Casa Ramona Community Center to the low and moderate income residents living in the P:\Clcrical Services Dcpt\Margarcl Parkcr\Agcnda\CDC 2003\03-01-21 Casa Ramona Amend No litem_doc COMMISSION MEETING AGENDA Meeting Date: 01/21/2003 Agenda Item Number: ~ Economic Development Agency Staff Report Casa Ramona Amendment No. I Page 2 vicinity of Casa Ramona Community Center, including the Ramona Senior Housing Complex, and adjacent Mt. Vernon Project Area residents. CURRENT ISSUE: The Agreement, however, has certain milestones and goals that must be achieved before Casa Ramona, Inc., can be reimbursed for expenses of up to the $240,000 Grant amount. Moreover, the purpose of the Grant was to cover certain costs associated with the redevelopment of the new Community Center such as: architect and design engineering services in connection with the preparation of design plans for the new Community Center; geotechnical and environmental engineering costs and other predevelopment design costs; development impact mitigation fees, debt service reserve account to be held by a construction lender; and course of construction management and supervision services. Additionally, the Agreement has performance date provisions that state that Grant funds must be used by a date no later than December 6, 2004, or the unspent Grant amount, if any, shall remain with the Agency and any prior funds expended shall be repaid to the Agency with a 3% annual interest on a 10-year amortization schedule with equal, consecutive monthly payments commencing on January 6,2005 through December, 2014. This provision insures that Casa Ramona will perform and redevelop the Community Center or otherwise repay the Agency the $240,000 Grant funds. As referenced above, the Agreement has several performance milestones or conditions that must be met; particularly, prior to the Agency's disbursement of funds for the preparation of the preliminary site plans, elevations, floor plans and architectural renderings and space planner, Cas a Ramona must obtain: (I) signed letters of Intent to Lease from prospective tenants for at least 50% of the new Casa Ramona Community Center's square footage and (2) preliminary Letters of Commitment for funding the construction financing. Based on the attached December 3, 2002, letter from Mr. Ray Coronado, Chairman of the Casa Ramona Board of Directors, Casa Ramona, Inc. is requesting an amendment to the Agreement to waive the above referenced requirements (I and 2) because prospective tenants are requesting layout plans for the new Casa Ramona Community Center prior to making a commitment to execute a lease agreement with Casa Ramona, Inc, and Casa Ramona, Inc. does not have the financial wherewithal to advance the funds to prepare the necessary site plans. Amending the Agreement to waive this condition will make it possible for Casa Ramona to proceed with design plan preparation and will allow them to secure lease agreements with tenants. Additionally, it will move the project forward and provide a new Community Center for the seniors living in the Ramona Senior Housing complex and the low/moderate income residents of the neighborhood. Casa Ramona is prepared to insure that the Community Center will be built within the next couple of years, and should they fail to build the new Community Center, they will be obligated to repay the Agency the full Grant amount of $240,000 pursuant to the terms of the 1999 Grant Agreement. ENVIRONMENTAL IMPACT: Not applicable. _____________. ______________._____ ______________. ____________________ ___________________n_________________________________________________________.___ ---------------------. P:\Clcrical Service, Dcpt\Margarct Parkcr\Agcnda\CDC 200J\OJ-Ol-21 Cas8 Ramona Amcml No lllcm.doc COMMISSION MEETING AGENDA Meeting Date: 01/21/2003 Agenda Item Number: Ii. i 7 Economic Development Agency Staff Report Casa Ramona Amendment No. I Page 3 FISCAL IMPACT: Funds for this Agreement were appropriated and authorized by the Community Development Commission on December 6, 1999, and any carry over funds are reflected in the current EDA approved Housing Budget. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. /j) Fli~ Maggie P checo, Deputy Director __u__________ _________________________________ -------------------- ------------------ ---------------------------- ------------------------------- -----------------------------------. P:\Clerical Services Dcpl\Margarct l'arkcr\Agcnda\CDC 2003\03-0] -21 Cu>u Ramona Amend No 1 llcnu]oc COMMISSION MEETING AGENDA Meeting Date: 01/21/2003 Agenda Item Number: ".e i 7 RESOLUTION NO. 2 3 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY TO EXECUTE AMENDMENT NO. 1 TO THE 1999 GRANT AGREEMENT BY AND BETWEEN CASA RAMONA, INC. AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 4 5 6 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a 8 public body, corporate and politic, organized and existing pursuant to the constitution of the 9 State of California and the Agency has the authority to provide financial assistance to non- 10 profit housing entities or public service providers, such as Casa Ramona, Inc., a California 11 non-profit corporation ("Casa Ramona") for the purpose of improving affordable housing 12 opportunities for low- and moderate-income persons; and 13 WHEREAS, Casa Ramona proposes to redevelop a new community center 14 ("Community Center") for the benefit of the forty-four (44) unit Ramona Senior Housing 15 Complex ("Senior Housing Complex") and the low- and moderate-income residents of the City 16 and adjacent to the Mount Vernon Redevelopment Project Area pursuant to the terms of the 17 December 6, 1999 Grant Agreement between the Agency and Casa Ramona (the 18 "Agreement"); and 19 WHEREAS, under the Agreement, after findings made by the Community 20 Development Commission on December 6, 1999, Resolution No. CDC 1999-45, the Agency is 21 to provide a grant of Two Hundred Forty Thousand Dollars ($240,000) using funds from the 22 Agency's housing fund ("Housing Fund") to Casa Ramona to assist with the redevelopment of 23 24 the new Community Center subject to those certain conditions and requirements contained in 25 the Agreement; and P:\Clcrical Services Depl\Margarel Parker\Rcsolulions\200J\03.01-21 Casa Ramona Amd No ] Rc,olu!ion.doc I 2 WHEREAS, in order to allow the Community Center to proceed, the Agency and Cas a Ramona desire to amend the Agreement (" Amendment No. I) pursuant to which the Agency will disburse funds to Casa Ramona for the purpose of commencing the designing and engineering plans for the Community Center in accordance with the provisions of Amendment No.1. 3 4 5 6 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 7 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 8 FOLLOWS: 9 10 11 12 13 14 15 16 Section I. The Community Development Commission ("Commission") hereby approves the Amendment No. I to the December 6, 1999 Grant Agreement and authorizes the Agency Executive Director to execute Amendment No. 1 as presented and considered at this meeting, together with such conforming changes therein as may be recommended by the Agency Executive Director or Agency Counsel. The Commission further authorizes the Agency Executive Director and/or Agency Counsel to make minor and or technical changes to the Agreement provided such changes or clarifications do not increase the 17 Agency's monetary obligation. 18 Section 2. The 19 adoption. 20 III 21 III 22 III 23 III 24 III 25 III Resolution shall become effective immediately upon its l':\Clerical Services Dcpl\Margarcl l'arkcr\Rc~olulion,\2003\03-0 1-21 Casa Ramona Amd No 1 Rcsolution_d()c 2 2 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY TO EXECUTE AMENDMENT NO. 1 TO THE 1999 GRANT AGREEMENT BY AND BETWEEN CASA RAMONA, INC. AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 3 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 6 Community Development Commission of the City of San Bernardino at a meeting 7 hereof, held on the day of ,2003, by the following vote to wit: 8 Commission Members: Navs Abstain Absent Aves 9 ESTRADA LONGVILLE MCGINNIS DERRY SUAREZ ANDERSON MC CAMMACK 10 11 12 13 14 15 16 Secretary 17 The foregoing resolution is hereby approved this day of ,2003. 18 19 20 Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 21 22 Approved 23 By: 24 25 P:\Clcrical Services Depl\Margarcl Parkcr\Rcsolulion,\1003\03-01-11 Casa Ramona Amd No 1 Rcsolution.uuc 3 AMENDMENT NO.1 TO THE 1999 GRANT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CASA RAMONA, INC. (CASA RAMONA COMMUNITY CENTER REDEVELOPMENT PROJECT) THIS AMENDMENT NO.1 TO THE December 6, 1999 GRANT AGREEMENT ("Amendment No.1") dated January 21, 2003 is hereby made between Casa Ramona, Inc., a California non-profit corporation ("Casa Ramona") and the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic ("Agency") as set forth herein. RECITALS WHEREAS, the Redevelopment Agency ofthe city of San Bernardino ("Agency") is a public body, corporate and politic, organized and existing pursuant to the constitution of the State of California and the Agency has the authority to provide financial assistance to non-profit housing entities or public service providers, such as Cas a Ramona, Inc., a California non-profit corporation ("Casa Ramona") for the purpose of improving affordable housing opportunities for low and moerate income person; and WHEREAS, Casa Ramona, proposes to redevelop a new community center ("Community Center") for the benefit of the forty-four (44) unit Ramona Senior Housing Complex ("Senior Housing Complex") and the low- and moderate-income residents of the City and adjacent to the Mount Vernon Redevelopment Project Area pursuant to the terms of the December 6, 1999 Grant Agreement between the Agency and Casa Ramona ("Agreement"); and WHEREAS, under the Agreement, after findings made by the Community Development Commission on December 6, 1999, by Resolution No. CDC 1999-45, the Agency is to provide a grant of Two Hundred Forty Thousand Dollars ($240,000) using funds from the Agency's housing fund ("Housing Fund") to Cas a Ramona to assist with the redevelopment of the new community subject to those certain conditions and requirements contained in the Agreement; and WHEREAS, in order to allow the Community Center to proceed, the Agency and Casa Ramona, desire to amend the Agreement ("Amendment No. I") pursuant to which the Agency will disburse funds to Casa Ramona for the purpose of commencing the designing and engineering plans for the Community Center in accordance with the provisions of Amendment No. I. P:\Clcrical Service> Dcpl\Murgarcl Parkcr\Agcnda\Agmll,.AOlcnd 2003\03-01.21 Ca,a Ramona Amcmlrncnl No. I.uuc IN CONSIDERATION OF THE COVENANTS AND PROMISES OF THE PARTIES TO THIS AMENDMENT NO.1, CASA RAMONA AND THE AGENCY HEREBY AGREE AS FOLLOWS: Section 1. Section 3 (4) - Agency Grant - Terms and Conditions of the Agreement is amended as follows: 4. The Agency shall only disburse amounts required to obtain preliminary site plans, elevations, floor plans and architectural renderings from the architect and space planners retained by Casa Ramona for such purposes. Except as noted in the proceeding paragraph of this Amendment No. I, all other provisions of the 1999 Grant Agreement shall remain in full force and effect. IN WITNESS WHEREOF Casa Ramona and the Agency have executed this Amendment No. I to the 1999 Grant Agreement as of the date first written above. AGENCY Redevelopment Agency of the City of San Bernardino By: Gary Van Osdel Executive Director CASA RAMONA Cas a Ramona, Inc. By: Ray V. Coronado Its: Board President By: Jerry Casillas Its: Secretary P:IClcrical Services Dcpt\Margarct ParkcrlAgcndalAgrmls-Amcnd 2003\03-01-21 Casa Ramona Amendment No. I.doc 2 CASA RAMONA, INC. 1524 West 7th Street San Bernardino, CA 92411 Telephone 909 I 889-0011 DECEMBER 3 , 2002 MR. GARY VANOSDEL ECONOMIC DEVELQPMENTAGENCY EXECUTIVE DIRECTOR 201 NORTH E STREET SAN BERNARDINO,CA. 92401 RE: CASA RAMONA CDBG GRANT AMENDMENT DEAR MR. VANOSDEL: AS YOU KNOW, WE HAVE BEEN USING SOME OF OUR GRANT FUNDS TO DO SOME OF THE PLANNING AND ENVIRONMENTAL WORK THAT IS NEEDED FOR THE NEW PROPOSED CASA RAMONA. ADDITIONALLY, OF LATE WE HAVE STARTED EXPERIENCING SOME RATHER EXPENSIVE REPAIRS TO THE BUILDING. BROKEN WATER LINES UNDER TONS OF CEMENT, ELECTRICAL PROBLEMS, AND WEAKENING AND DETERIORATING. BEAMS OVER THE OUTSIDE HALLWA YS. IT IS NOW BECOMING VERY CRITICAL THAT WE MOVE FORWARD WITH THE BUILDING OF THE NEW CASA RAMONA. THIS IS WHY I AM REQUESTING AN AMENDMENT TO THE GRANT AGREEMENT. AS IT IS NOW, WE CANNOT USE THE BALANCE OF THOSE FUNDS TO GET OUR CONSTRUCTION PLANS DONE UNTIL WE HAVE SOME TENANT LEASES SIGNED. THIS IS EXACTL Y WHAT IS HOLDING US UP. WHEN WE TALK TO POTENTIAL LESSORS, WE DO NOT HAVE ANYTHING SPECIFIC TO SHOW THEM, NOTHING WITH DIMENSIONS OR SPECIFICATIONS THAT THEY CAN ENTERTAIN FOR THEIR POTENTIAL USE. WE ARE CONFIDENT THAT IF WE ARE ALLOWED TO USE THOSE FUNDS FOR THE PLANS AND SPECIFICATIONS WE WILL BE ABLE TO MOVE OUR PROJECT MUCH FASTER. IT IS NOW BECOMING A MATTER OF EMINENT DANGER. WE ARE ASKING TO HAVE OUR AGREEMENT AMENDED. MY BOARD IS WILLING TO HAVE A CLAUSE THAT HOLDS US RESPONSIBLE FOR THE REMAINING BALANCE OF FUNDS IF WE DO NOT BUILD THE NEW FACILITY IN 4-5 YEARS. WE HOWEVER INTEND TO BE CELEBRATING OUR 2ND. OR 3RD YEAR OF CONSTRUCTION BY THAT TIME. WE KNOW WE ARE NOT GOING TO HAVE TO PAY BACK THAT MONEY BECAUSE WE WILL HAVE USED IT AS INTENDED. PG.2 OUR BOARD OF DIRECTORS ENTERTAINED THIS IDEA AT OUR BOARD OF DIRECTORS MEETING ON NOVEMBER 19TH. THEY AUTHORIZED METO PRESENT THE IDEA TO YOU THROUGH BILL COLLAZO. WE HOPE THAT YOU WILL GIVE OUR PETITION SERIOUS CONSIDERATION. VERY SINCERELY, /'(....,/ ~ RAY V. CORONADO CHAIRMAN CASA RAMONA BOARD OF DIRECTORS CC: NEWCR FILE C.R FILE MAYORJ.vALLES __,:'.w" .' , , CDC 1999-45 . REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNAllDINO 1999 GRANT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNAllDINO AND CASA RAMONA, INC. (CASA RAMONA COMMUNITY CENTER REDEVELOPMENT PROJECT) THIS 1999 GRAN'l' AGREEMENT (the "1999 Grant Agreement") is hereby made between Casa Ramona, Inc., a California non-profit corporation ("Casa Ramona"), and the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the "Agency"),regarding redevelopment and expansion of anew community center to be constructed and operated by Casa Ramona (the "New Community Center Project") on lands owned by Casa Ramona, all as more fully set forth herein. IN CONSIDERATION OF THE COVENANTS AND PROMISES OF THE PARTIES TO THE 1999 GRANT AGREEMENT, CAS A RAMONA AND THE AGENCY HEREBY AGREE AS FOLLOWS: Section 1. Representations and Release. 1. Casa Ramona hereby represents and warrants that it is a valid and active non-profit corporation incorporated under the laws of the State of California and of the United States. Casa Ramona. also represents and warrants that the non-profit community .services it provides are focused predominantly upon the delivery of "community and public services" and "affordable rental housing" to persons and families of low and moderate income, as these terms are defined under applicable state and federal law. Casa Ramona shall not use any Agency grant funds disbursed to Casa Ramona under this 1999 Grant Agreement for payment of employee, administrative or supply expenses of Casa Ramona. 2. Casa Ramona hereby covenants and agrees to use its best efforts to obtain all other funding required (when added to amounts disbursed by the Agency under this 1999 Grant Agreement) to cause the New Community Center Project to be constructed and completed as set forth in this 1999 Grant Agreement. 3. Upon completion of the New Community Center Project, Casa Ramona hereby agrees to operate the New Community Center Project and to provide and make available for the benefit of persons and households of low and moderate income, the community and public services, as generally described in Section 2, below, for a term of not less than fifteen (15) years following the date of issual1ce of a Certificate of Occupancy by the City of San Bernardino Building Department for the New Communi~y Center Project. 4. Casa Ramona hereby acknowledges and agrees that all prior action by the Clty of San Bernardino to set aside Community Development Block Grant funds for the New Community Center Project shall be of no force or effect and that no Community Development Block Grant funds of the City of San Bernardino shall be made available for the New Community Center Project. 5. The Agency hereby represents and warrants that it has undertaken all acts and proceedings required by law as necessary to make this 1999 Grant Agreement, when executed by the authorized officers of the Agency, a valid, binding and legal. obligation of the Agency. Section 2. Description of New Community Center Project. The. New Community Center Project shall include the design, construction and financing of a thirty thousand (30,000) to .fifty thousand (50,000) square foot structure and appurtenant on- site parking and landscaping to replace and expand the facility as currently occupied by Casa Ramona at 1524 Seventh---Street, San Bernardino, California. The lands on which the New Community Center Project shall be located (the "Site") are more particularly described in the legal description attached hereto as Exhibit "A." The estimated cost of the design and construction of the New Community Center .project, as of the date of. this 1999 Grant Agreement, is between two and one-half (2.5) and three (3) million dollars. Casa Ramona shall decide whether any portions of the current building shall be retained or the entire existing structure shall be demolished and a new building constructed on the Site. All child day care center, community center and senior center activities occurring on the Site as of the date of this 1999 Grant Agreement shall be continued at the New Community Center Project together with anticipated County of San Bernardino offices to be relocated to the New Community Center Project. Upon completion of the New Community Center Project, Casa Ramona shall use the 'facility to provide community and public services to persons and households of low and moderate income. For the purpose of this 1999 Grant Agreement, the words "community and public services" shall have the same meaning as set forth at 24 CFR Part 570.506(b). Section 3. Agency Grant - Terms and Conditions. 1. Subject to the terms and conditions of this 1999 Grant Agreement, the Agency hereby allocates the sum of Two Hundred SBEO/0001/DOC/3602-2 11/17/99 10:20 imw 2 Forty Thousand Dollars ($240,000.00) (the ~Agency Grant") from the fiscal year 1999-2000 low and moderate income housing fund for use and application by Casa Ramona to pay for certain costs associated with the redevelopment of the New Community Center Project, as set forth herein. [Casa Ramona may use and apply the proceeds of the Agency Grant to pay for any of the following: (i) architect and design engineering services in connection with the preparation of design plans for the New Community Center Project; (ii) geotechnical and environmental engineering costs and other pre- development design costs; (iii) development impact mitigation fees, capi.talcharges and building permits payable to public agencies; / (iv) to capitalize a funded construction interest and debt service reserve account to be held by a construction. lender for the New Community Center Project; (v) course of construction management and supervision services for the New Community Center Project. J ~. 2. The Agency will disburse installments of the Agency Grant under this 1999 Grant Agreement directly to Casa Ramona for payment of certain development fees, as set forth in. Section 3.1. above, upon submission of reimbursement requests and back-up invoices to the Agency by Casa Ramona. Disbursements to Casa. Ramona shall be made in the normal course of business for check disbursements by the Agency, which time period shall not exceed ten (10) days from receipt by the Agency of each reimbursement request(s) and back-up invoice(s) from Casa Ramona. Concurrent wi!h the first reimbursement request to the Agency under this 19~.9 Gra~tAgr~ement, Casa Ramona shall execute the regulatory agreement .,!-nq .property' use covena-nt attadied hereto as Exhibit ~B,,,. .!E_ recordaple fop:n and deliver it'fo the Agency for recordation in the . official records of the Recorder of the County of San Elernardino. Upon receipt of the first reiii\J5tirsem.E?nt__!,!;).Q.\!~st and sail:! Govenant:'!Z the Agency shall make the first disbursement of the Agency Grant. 3. This 1999 Grant Agreement is not intended by either Casa Ramona or the Agency to create any rights, remedies or claims, either express or implied, in any person or entity, other than Casa Ramona or the Agency. The Agency shall have no liability to any architect, engineer and/or space planner or other consultant retained by Casa Ramona. 4. The Agency shall only disburse amounts required to obtain preliminary site plans, elevations, floor plans and architectural renderings from~the arcl1itect and Ijpace planners retained by Casa Ramona for such purposes, prior~6 such time as Casa Ramona has obtained: (i) signed letters or' intent from prospective tenants for at least 50% of the' New Community Center Project square footage and,(ii) preliminary letters of commitment for funding the construction of the New Community Center Project SBEO/0001/OOC/3602-2 11 11~/QQ 10.?O ;_~ 3 r! ~ }.,," / ; " have been obtained from lenders and/or providers of contributions, grants or other sources of funding for the completion of the construction of the New Community Center Project; Upon' satisfaction of any of the above conditions, any amounts remaining of the Grant Amount may be disbursed by the Agency to Casa Ramona I for the completion of the architectural drawings, final site plans,~ ' plans and specifications and all construction working drawings in accordance with Sections 3.1. and 3.2. of this 1999 Grant Agreement. 5. Casa Ramona shall be solely responsible for obtaining funds, as necessary to pay for any other pre-development expenditures for the New Community Center Project in excess of the Agency Grant. 6. The Agency shall not disburse any portion of the Agency Grant on or after the fifth (5th) anniversary following the date of this 1999 Grant Agreement. In the event the planning and design of the New Community Center Project is suspended by Casa Ramona or in'the event that a Certificate of Occupancy is not" issued for the New Community Center Project by the City of San Bernardino Building Department on or before December 6, 2004, the - remaining balance of the Agency Grant which has not been disbursed for the account of Cas a Ramona shall revert to the Agency and Casa Ramona shall repay any previously disbursed amount of the Agency Grant to the Agency, together with interest at 3% per"annum on a 10-year amortization schedule with equal, consecutive monthly payments "commencing on January 6, 2005, continuing" through and including December 6, 2014. The date for completion of construction and issuance of the Certificate of Occupancy for the New Community Center Project may be extended by written agreement of the parties. Additionally, the date for completion of construction and issuance of the Certificate of Occupancy for the New Community Center Project shall be extended due to any forces and/or matters beyond the control of Cas a Ramona, as shall be demonstrated by Casa Ramona, to the satisfaction of the Agency. 7. Casa Ramona shall be" solely responsible for obtaining construction funds from whatever sources as may be available, including, but not limited to, federal, state or local agencies and/or conventional construction lenders. 8. Casa Ramona hereby acknowledges and agrees that it will have the sole responsibility for obtaining all entitlements and approvals necessary for completion of the New Community Center Project through the City of San Bernardino Planning Department process, including, but not limited to, California Environmental Quality Act (CEQA) "compliance certification, land use entitlements, SBEO/0001/OOC/3602-2 A .............. .....;;I;;I;;I-"*:J permits, building permits and any other applicable approvals required by federal, state or local governments or agencies and payment of all associated fees necessary for completion of the New Community Center Project. 9. Casa Ramona hereby agrees to use its best ,efforts to obtain from Ramona Senior Complex, Inc., an executed and recordable notice of extension of the affordability covenants under the tax credit financing structure applicable to the housing units annually operated by Ramona Senior Complex, Inc., in the territorial jurisdiction of the City of San Bernardino to terminate on a date not earlier than the date that the Mount Vernon Community Redevelopment Plan terminates. 10. In the event of default or breach of this 1999 Grant Agreement on the part of Casa Ramona, the Agency shall be entitled to exercise every and all remedies set forth in the "Low and Moderate Income Resident Services Regulatory Agreement and Property Use Covenant" attached hereto as Exhibit "B" and in'corporated herein by this reference. 11. Upon the request of Casa Ramona and for the purpose of allowing Casa Ramona to obtain financing for design, redevelopment or construction of the New Community Center Project from sources other than the Agency, the Agency may consent to subordination of the "Low and Moderate Income Resident Services Regulatory Agreement and Property Use Covenant" attached hereto as Exhibit "B" and required to be executed and recorded under Section 3.2 of this 1999 Grant Agreement to any recordable security interest of such financing source in the New Community Center Project, which consent shall not be unreasonably withheld by the Agency. SBEO/OOOl/DOC/3602-2 o IN WITNESS WHEREOF, the Agency and Casa Ramona execute this 1999 Grant Agreement, as follows: AGENCY Redevelopment Agency of the of San B ardino . / uJ City By: Jud' h Valles, . person of the unity Development ission of the City of B rn.ardino By: By: CASA RAMONA Casa Ramona, Inc. By: ~/~ Y V. CORONADO By: ( Its: SECRETARY .. SBEO/OOOl/DOC/3602-2 EXHIBIT "A" LEGAL DESCRIPTION OF SITE Parcel 2 of Parcel Map No. 13725, in the City of San Bernardino, County of Sap Bernardino, State of California, as per plat recorded in Book 168 of Parcel Maps, pages 93 and 94, records of said county. SBEO/0001/DOC/3602-2 11/17/99 10:20 jmw 7 SBEO/0001/ooC/3602-2 EXHIBIT "B" REGULATORY AGREEMENT AND USE COVENANTS . Q. ~ .. f RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: ) ) ) ) ) ) ) ) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 201 North -E" Street, Suite 301 San Bernardino, California 92401 ATTN: Executive Director (Space above 1ine reserved for use by Recorder) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO LOW AND MODERATE INCOME RESIDENT SERVICES REGULATORY AGREEMENT AND PROPERTY USE COVENANT (San Bernardino County Assessor Parcel No. 0139-273-27) -- CAS A .RAMONA COMMUNITY SERVICES EXPANSION PROJECT __ ~ THIS 1999 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO LOW AND MODERATE INCOME RESIDENT SERVICES REGULATORY AGREEMENT AND PROPERTY USE' COVENANT (the -Agency Covenant") is dated as of 1999, by and between Casa Ramona, Inc., a California non-profit corporation (-Casa Ramona") and the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the -Agency"), with respect to the following facts set forth in the .RECITALS of this Agency Covenant: -- RECITALS 1. This Agency Covenant affects the real property located at 1524 Seventh Street, San Bernardino, California (the -Property"). The Property includes improvements which Casa Ramona uses to provide community services to persons and households of low and moderate income. A legal description of the Property is attached hereto as Exhibit -A," and incorporated herein by this reference. 2. Casa Ramona is the owner of the Property. 'j, 3. Casa Ramona has obtained a portion of the cost for its redevelopment and expansion of the building improvements on the Property from the Agency pursuant to the terms and conditions of an agreement entitled -1999 Grant Agreement Between the Redevelopment Agency of the City of San Bernardino and Casa Ramona (Casa Ramona Community Center Redevelopment and Expansion Project)" dated , 1999 (the -1999 Grant Agreement") by and between the Casa Ramona and the Agency. \...I.1\,; ~~~'J-45 ., 4. Casa Ramona and the Agency have caused this Agency Covenant to be recorded as a covenant which affects the Property and which runs with the land for the term set forth herein in order to implement certain provisions of the "1999 Grant Agreement" with respect to the "New Community Center Project", as these terms are defined in the 1999 Grant Agreement. CAS A .RAMONA AND THE AGENCY FOR THEMSELVES, AND THEIR SUCCESSORS AND ASSIGNS, HEREBY COVENANT AND AGREE AS FOLLOWS: Section 1. Incorooration by Reference of 1999 Grant Aareement. The provisions of the 1999 Grant Agreeffient are hereby incorporated into this Agency Covenant by this reference. A true and correct copy of the 1999 Grant Agreement is on file with the Agency Secretary as a public record, and interested persons may inspect the 1999 Grant Agreement during regular business hours of the Agency Secretary. . Unless the context of the usage of a particular defined term, as used.in this Agency Covenant, may specifically require, the meaning of all defined terms, as used in this Agency Covenant, shall have the same meaning as set forth in the 1999 Grant Agreement. Section 2. Term of Aaencv Covenant. Unless sooner terminated as set forth in Section 6, below, this Agency Covenant shal.l have a term which ends on the earlier of the following dates to occur: (i) twenty (20) years following the date of recordation of this Agency Covenant; or (ii) on the fifteenth (15th) anniversary following the issuance of a Certificate of Completion for the New Community Center Project as set forth in Section 7 of the 1999 Grant Agreement. both the Period." The term of this Agency Covenant is also referred to in 1999 Grant Agreement and herein as the "Compli.ance Section 3. Aaency Covenant Use of the Prooerty. During the Compliance Period of this Agency Covenant, the Property shall be used or reserved for use by a community non-profit organization to provide community and public services which substantially benefit persons and households of low and moderate income in compliance with the 1999 Grant Agreemerit. As used in this Section 3, the words "community and public services" shall have the same meaning as set forth at 24CFR Part 570.21(e). Section 4. Agency Covenant--Business and Compliance Records of Casa Ramona. (a) During the Compliance Period of this Agency Covenant, certain business records must be established and maintained in accordance with the provisions of 24 CFR Part 570.506 which relate to the use of the Property for community and public services use purposes authorized under Section 3 of this Agency Covenant and Sections 1.2 and 2.1 of the 1999 Grant Agreement. Casa Ramona shall be responsible for establishing and maintaining such records, and Casa Ramona shall provide the Agency with copies of such records within thirty (30) days of any written request by the Agency. (b) Casa Ramona and all persons in possession of the Property shall permit the Agency to conduct inspections of the Property from time-to-time for purposes of verifying compliance with this Agency Covenant upon thirty (30) days prior written notice to.Casa Ramona. Section 5. Indemnitv of the Aaencv. (a) From and afte~ the date on which a Certificate of Occupancy for the New Community Center Project, as set forth in the 1999. Grant Agreement, has been issued, Casa Ramona waives all claims, suits, losses, damages, costs (including reasonable attorney's fees) and demands, administrative fees, penalties, and fines imposed, connected therewith and hereby agrees to indemnify, defend and hold harmless the Agency, its officers, agents and employees from any and all claims, suits, losses, damages, costs (including reasonable attorney's fees), administrative fees, penalties, demands (including reasonable attorney's fees) and fines imposed, connected therewith, on account of any personal injury, including death or property damage sustained by any person or entity which in any way relates to the Property or the New Community Center Project. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of City shall be considered as ~attorney's fees" for the purposes of this paragraph. (b) While not restricting or limiting the foregoing, during the term of this Agreement, Casa Ramona shall maintain in effect policies of comprehensive public, general and automobile liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory Worker's Compensation coverage, and shall file copies of said policies with the City's Risk Manager prior to undertaking any work under this Agreement. City shall be set forth as an additional named insured in each policy of insurance provided hereunder. The Certificate of Insurance furnished to the City shall require the insurer to notify City of any change or termination in the Dolicv. Section 6. Earlv Termination of Aaency Covenant. (a) This Agency Covenant shall remain in effect during the Compliance Period, unless sooner terminated in the sole and absolute discretion of Casa Ramona as set forth in this Section 6. (b) Casa Ramona may determine that the continued use of the Property for the community and public services use purposes described in Section 3 of this Agency Covenant, is no longer necessary or appropriate. In such an event Casa Ramona shall give the Agency at least thirty (30) days prior written notice of its intention to consider such a determination. Such written notice of Casa Ramona shall include a reference to Section 6 (b) of this Agency Covenant. (c) In the event that Casa Ramona may determine to use the Property for a purpose other than the community and public services uses, as described under Section 3 of this Agency Covenant, Casa Ramona shall reimburse the Agency a sum equal to the amount in cash derived by the application of the following formula: 1 . A - [(0.067 x Covenant Years) x A] (d) Casa Ramona shall pay to the Agency the sum indicated in Section 6(c)of this Agency Covenant, as applicable, within ninety (90) days following the date on which Casa Ramona may complete the actions necessary to terminate the community and public service use restriction affecting the Property as described in Section 3. Concurrently, upon receipt of such sum, the Agency shall deliver to Casa Ramona a written acknowledgment of cancellation and discharge of this Agency Covenant in recordable form acc!,!ptable to Casa Ramona which has been duly executed by authorizep officers of the Agency. Section 7. Covenant Against Unlawful Discrimination. No person shall, on the grounds of race, sex, creed, color, religion or national origin, be excluded from participating in or be refused the benefits of or otherwise subjected to discrimination in connection with the use of the Property. Section B. Maintenance Condition of the ProDerty. Casa Ramona for itself, its successors and assigns hereby covenants and agrees that the areas of the Property which are subject to 1 Notes for Section G(c) above: "A" = Agency Low and Moderate Income Housing funds disbursed for the Center. "Covenant Years" = the number of years which have pa~sed since this Agency Covenant went into effect. public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the Compliance Period of this Agency Covenant there is an occurrence of an adverse condition on any area of the Property which is subject to public view in contravention of the general maintenance standard described above (a "MaintenanCe Deficiency"), then the Agency shall notify Casa Ramona. in writing of the Maintenance Deficiency and give Casa Ramona sixty (60) days from receipt of such notice to cure the Maintenance Deficiency as identified in the notice. In the event Casa Ramona fails to cure or commence to cure the Maintenance Deficiency within. the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to Casa Ramona ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether Casa Ramona has failed to comply with the provisions of this Section 8. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the Property and perform all acts necessary .to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the Property authorized by this Section 8 shall be paid to the Agency by Casa Ramona within thirty (30) days after written demand for payment by the Agency to Casa Ramona. Section 9. Notice. Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agency Covenant or the 1999 Grant Agreement shall constitute a default hereunder; provided, however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. - , , Any failure or delay by a party in asserting any of its rights and remedies as to any default shall not operate a~a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agency Covenant, the rights and remedies of the parties are cumulative and the exercise by either 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 other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings. For the purposes of giving notice under any prov~s~on of this Agency Covenant, the addresses to which such notice shall be transmitted are as follows: For Casa Ramona: For Agency: RAY V. CORONADO Redevelopment Agency of the City of San Bernardino ATTN: Executive Director 201 North ~E" Street, Suite 301 San Bernardino, California 92401 ATTN: JERRY CASILLAS SECRETARY Section 10. Agency Covenant Runs With the Land. The provisions of this Agency Covenant shall be covenants which run with the land and the Property for the Compliance Period. This Agency Covenant is expressly declared by the parties to be for the benefit of the Property and the redevelopment project area of the Mount Vernon Redevelopment Project. IN WITNESS HEREOF, the parties authorized officers of the parties have caused this Agency Covenant to be executed on the dates indicated below. CASA RAMONA Case Ramona, Inc., a California non-profit corporation Dated: DEeEMBER 15. 1999 By: ~..>--/" ""__ Its: BOARD CHAIRMAN O~O~O_ ~ By: ECRETARY JERRY CASILLAS. AGENCY ,;;.;l 1/.",.,,> .,. ",.~,// 1// Redevelopment City f Siilh ./ Agency of the Bernardino i , Dated: By:/./_c:..,,;.d.__'." ~r:' h Valles a'r of the Community De~ lopment Commission ~ ATTJ;:.s-T~', (1 I JK:vUc4-- Agency Secretary Dated: /t-.. /'f~y" / / . ~ ..L~~~-"j:~ " EXHIBIT "A" LEGAL DESClUPTION OF NEW COMMUNITY CENTER PROJECT SITE PROPERTY Parcel 2 of Parcel Map No. 13725, in the City of San Bernardino, County of San Bernardino, State of California, as per plat recorded in Book 168 of Parcel Maps, pages 93 and 94, records of said county. ! !