HomeMy WebLinkAboutR35-Economic Development Agency CITY OF SAN BERNARDINO ORIGINAL
ECONOMIC DEVELOPMENT AGENCY
FROM: Maggie Pacheco SUBJECT: 2007 Property Owner Participation
Executive Director Agreement (OPA) - Inland Behavioral and
Health Services, Inc. at 655 North "D"
Street,San Bernardino(Central City North
DATE: February 12,2007 Redevelopment Project Area)
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Synopsis of Previous Commission/Council/Committee Action(s):
On January 25, 2007, Redevelopment Committee Members Estrada, Johnson and Baxter unanimously voted to
recommend that the Community Development Commission consider this action for approval.
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Recommended Motion(s):
(Mayor and Common Council)
A: Resolution of the Mayor and Common Council of the City of San Bernardino making certain findings and
determinations and consenting to payment for public improvements by the Redevelopment Agency of the
City of San Bernardino ("Agency") related to the property at 655 North"D" Street("Site")pursuant to the
2007 Property Owner Participation Agreement by and between the Agency and Inland Behavioral and
Health Services,Inc.,(Central City North Redevelopment Project Area)
(Community Development Commission)
B: Resolution of the Community Development Commission of the City of San Bernardino (1) approving and
authorizing the Executive Director of the Redevelopment Agency of the City of San Bernardino("Agency")
to execute a 2007 Property Owner Participation Agreement by and between the Agency and Inland
Behavioral and Health Services, Inc., for the development of the property at 655 North "D" Street
("Property") and (2) making certain findings and determinations thereto related to the development of the
project(Central City North Redevelopment Project Area)
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Contact Person(s): Maggie Pacheco Phone: (909)663-1044
Central City North
Project Area(s): Redevelopment Project Area Ward(s): 1
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreements)/Contract(s) 0 Map(s) ❑Letter(s)
FUNDING REQUIREMENTS: Amo t: $ 265,000 Source: Agency Funds
Budget Authority: 2006-2007 EDA Budget
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SIGNATURE:
Maggie Pa e Executive Director arbara Li dseth,Ad Serv> s Director
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Commission/Council Notes:
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PAAgendas\Comm Dev Commission\CDC 2007\02-20-07 Inland Behavioral&Health Services,Inc.-OPA SR.doc COMMISSION MEETING AGENDA
Meeting Date: 02/20/2007
Agenda Item Number: 4j�
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
2007 PROPERTY OWNER PARTICIPATION AGREEMENT (OPA) -INLAND
BEHAVIORAL AND HEALTH SERVICES,INC. AT 655 NORTH "D" STREET, SAN
BERNARDINO (CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
BACKGROUND:
John Wilson, Chief Operating Officer for Inland Behavioral and Health Services, Inc. ("IBHS"),
approached the Agency regarding the possibility of securing financial assistance to undertake
additional and unforeseen public off-site improvements surrounding the site where a new IBHS
medical clinic (the "Project") is under construction at 655 North "D" Street (See attached Exhibit "A")
within the Central City North Redevelopment Project Area("Project Area").
IBHS is a community based agency established in 1972, and became a Federally Qualified Health
Center in 2002. It operates under a mandate to provide a full range of health care services to the
medically underserved population of the City of San Bernardino, including on-site primary health care,
mental health treatment, programs for pregnant mothers and their children as well as drug and alcohol
treatment services, crisis intervention, counseling, drug diversion programs and assisting families faced
with homelessness.
IBHS currently provides these services at their facility at 1963 North "D" Street as well as a satellite
location at 1755 Maple Street on the westside of the City. 57% of IBHS' patients are uninsured with
39% being Medi-Cal patients. They currently serve approximately 17,500 patients annually, which
equates to about 50 patients per day, 7 days a week. It is anticipated that this amount will double to
35,000 patients annually in the first year of operation of the new facility.
CURRENT ISSUE:
Using limited funds obtained from various sources, including IBHS reserves, State sources and a
Federal Economic Development Grant, IBHS is currently under construction of a new $9.2 million,
28,340 square foot medical clinic at 655 North"D" Street which will bring quality medical, OB/GYN,
j pharmaceutical and dental services to the demographic they serve. When completed, and fully
operational, the Project will attract approximately 400 well-paying medical and medical related jobs to
the downtown area. These will be newly created positions, as the other 2 IBHS locations will continue
to remain open as well.
It has taken several years to accumulate the funds for construction, furniture, equipment and debt
service, all of which were carefully accounted for in the effort to gather the finances for the Project.
These efforts are put in jeopardy, however, when costs arise late in the Project which are unanticipated
and mean that any dollars applied to unanticipated expenses are dollars that are unavailable for the
provision of future services. The City has conditioned such unanticipated expenses on the Project in
the form of additional public off-site improvements consisting of the widening of "D" Street,
relocation of the utility poles and installation of new curbs, gutters and sidewalks for the entire Project.
As this is a fully urbanized location with all the existing infrastructure in place, it was not anticipated
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P\Agendas\Comm Dev Commission\CDC 2007\02-20-07 Inland Behavioral&Health Services,Inc.-OPA SR.doc COMMISSION MEETING AGENDA
Meeting Date: 02/20/2007
Agenda Item Number:
a
Economic Development Agency Staff Report
Inland Behavioral & Health Services, Inc. OPA
Page 2
or budgeted that the existing public improvements would have to be removed, relocated and
reconstructed in another location. The amount of these additional items amounts to approximately
$265,000.
It is proposed that the Agency contribute not to exceed $265,000 towards the cost of the off-site public
improvements as required by the City. On January 25, 2007, the Redevelopment Committee
recommended to both the Community Development Commission of the City of San Bernardino
("Commission") and the Mayor and Common Council of the City of San Bernardino ("Council") to
consider this item for approval. Both the Commission and Council will be required to make certain
findings related to the use of tax increment revenues directly, or indirectly, from the Project Area for
the reimbursement of the cost of the construction of the proposed public improvements namely: 1) The
improvements are to the benefit of the Project Area; 2) No other reasonable means of financing the
improvements are available to the community; 3) The cost of the improvements will assist in the
elimination of one or more blighting conditions; and 4)The funding of said public improvements are
consistent with the goals and objectives of the redevelopment/implementation plan for the Project
Area. Accordingly, the attached 2007 Property Owner Participation Agreement ("OPA") has been
prepared for consideration. Additionally, the Council must consent to the payments to be made by the
Agency under the proposed OPA attached hereto.
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ENVIRONMENTAL IMPACT:
Pursuant to California Environmental Quality Act ("CEQA") Regulations Section 15096, the OPA is
exempt from further findings and determinations. A Notice of Determination Exemption will be filed
with the County Clerk pursuant to CEQA.
FISCAL IMPACT:
The $265,000 will be funded from the Agency's Community Reinvestment Fund.
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RECOMMENDATION:
That the Mayor and Common Council and the Community Development Commission adopt the
attached Resolutions.
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M ggie Pache o, Executive Director
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P:\Agendas\Comm Dev Commission\CDC 2007\02-20-07 Inland Behavioral&Health Services,Inc.-OPA SR.doc COMMISSION MEETING AGENDA
Meeting Date: 02/20/2007
Agenda Item Number:
1 RESOLUTION NO. cop"r
2
3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND
4 DETERMINATIONS AND CONSENTING TO PAYMENT FOR PUBLIC
IMPROVEMENTS BY THE REDEVELOPMENT AGENCY OF THE CITY
5 OF SAN BERNARDINO ("AGENCY") RELATED TO THE PROPERTY AT
655 NORTH "D" STREET ("SITE") PURSUANT TO THE 2007
6 PROPERTY OWNER PARTICIPATION AGREEMENT BY AND
7 BETWEEN THE AGENCY AND INLAND BEHAVIORAL• AND HEALTH
SERVICES, INC., (CENTRAL CITY NORTH REDEVELOPMENT
g PROJECT AREA)
9 WHEREAS, the City of San Bernardino (the "City"), :s a municipal corporation and charter
10 city, duly organized and existing pursuant to the provisions of the Constitution of the State of
11 California; and
12 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a
13 public body, corporate and politic, existing under the laws of the State of California, Health and
14 Safety Code 33000, et seq., and is charged with the mission of redeveloping blighted and
15 underutilized land; and
16 WHEREAS, a 2007 Property Owner Participation Agreement (the "Agreement") between
17 the Agency and Inland Behavioral and Health Services, Inc., a California non-profit corporation,
18 (the "Developer"), exists whereby the Developer will use the Site for the development of a
19 medical clinic of approximately 28,340 square feet ("Project") providing quality medical,
20 obstetric, gynecological, pharmaceutical and dental services to the medically underserved
21 communities of the City as well as on-site primary health care, mental health treatment, and other
22 types of medical and social services to be provided within the Central City North Redevelopment
23 Project Area("Project Area"); and
24 WHEREAS, the Project has been conditioned with unfunded and unanticipated
25 requirements by the City related to construction of certain improvements to the public right of
26 way on "D" Street and 7`h Street, including but not limited to, street widening on "D" Street,
27 relocation of utility poles and new curb, gutter, sidewalk and landscaping ("Public
28
1
11\Aeendas\Resolutions\Resolutions\2007\02-20-07 Inland Behavioral&Health Services MCC Reso.doc
I Improvements") at an estimated cost of$265,000 causing the Developer to request assistance and
2 reimbursements from the Agency to help offset the cost of the Public Improvements; and
3 WHEREAS, pursuant to Health and Safety Code Section 33445, the Community
4 Development Commission of the City of San Bernardino (the "Commission") must make certain
5 findings and the Agency must obtain the consent of the Mayor and Common Council of the City of
6 San Bernardino (the "Council") and the Council must make certain findings prior to the Agency
7 paying for the costs of installation and construction of certain Public Improvements which are
8 publicly owned.
9 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
10 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
11 FOLLOWS:
12 Section 1. On February 20, 2007, the Council and the Commission, as the governing
13 board of the Agency at their respective meetings, received testimony relating to the funding of
14 certain Public Improvements, and the development thereof, pursuant to the Agreement. The
15 minutes of the City Clerk for the February 20, 2007, meeting of the Council shall include a record
16 of all communication and testimony submitted to the Council.
17 Section 2. Pursuant to Health and Safety Code Section 33445, the Council hereby makes
18 the following findings and determinations concerning the installation and construction of the Public
19 Improvements which are publicly owned and for which payment will be made on a reimbursement
20 basis pursuant to the Agreement for those improvements as specified in the Recitals to this
21 Resolution and in the Agreement: (1) that the improvements are of benefit to the Project Area; (2)
22 that no other reasonable means of financing the Public Improvements are available to the
23 community; (3) that the payment of the cost of the Public Improvements to be made by the Agency
24 pursuant to the Agreement will assist in the elimination of on- or more blighting conditions inside
25 the Project Area; and (4) that the payment of said Public Improvements are consistent with the
26 Project Area Redevelopment Plan and Implementation Plan.
27 Section 3. This Resolution shall take effect upon its adoption and execution in the
28 manner as required by the City Charter.
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P\Agendas\Resolutions\Resolutions\2007\02-20-07 Inland Behavioral&Health Services MCC Reso.doc
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND
2 DETERMINATIONS AND CONSENTING TO PAYMENT FOR PUBLIC
IMPROVEMENTS BY THE REDEVELOPMENT AGENCY OF THE CITY
3 OF SAN BERNARDINO ("AGENCY") RELATED TO THE PROPERTY AT
4 655 NORTH "D" STREET ("SITE") PURSUANT TO THE 2007
PROPERTY OWNER PARTICIPATION AGREEMENT BY AND
5 BETWEEN THE AGENCY AND INLAND BEHAVIORAL AND HEALTH
SERVICES, INC., (CENTRAL CITY NORTH REDEVELOPMENT
6 PROJECT AREA)
7
8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
9 Common Council of the City of San Bernardino at a meeting
10 thereof, held on the day of , 2007, by the following vote to wit:
11 Council Members: Ayes Nays Abstain Absent
12 ESTRADA
13 BAXTER
BRINKER
14
DERRY
15
KELLEY
16
JOHNSON
17
MC CAMMACK
18
19
Rachel G. Clark, City Clerk
20
21 The foregoing Resolution is hereby approved this day of 32007.
22
23
Patrick J. Morris, Mayor
24 City of San Bernardino
2-5 Approved as to Form:
26 D
27 By: 6
a ies F. P
28 enman, City Attorney
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P.Wgendas\Resolutions\Resolutions\2007\02-20-07 Inland Behavioral&Health Services MCC Reso.doc
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1 RESOLUTION NO.
2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
3 OF THE CITY OF SAN BERNARDINO (1) APPROVING AND
AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECUTE A 2007 PROPERTY OWNER
5 PARTICIPATION AGREEMENT BY AND BETWEEN THE AGENCY AND
6 INLAND BEHAVIORAL AND HEALTH SERVICES, INC., FOR THE
DEVELOPMENT OF THE PROPERTY AT 655 NORTH "D" STREET
7 ("PROPERTY") AND (2) MAKING CERTAIN FINDINGS AND
DETERMINATIONS THERETO RELATED TO THE DEVELOPMENT OF
8 THE PROJECT (CENTRAL CITY NORTH REDEVELOPMENT PROJECT
9 AREA)
10 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a
11 public body, corporate and politic existing under the laws of the State of California, Health and
12 Safety Code 33000, et seq., and is charged with the mission of redeveloping blighted and
13 underutilized land; and
14 WHEREAS, Inland Behavioral and Health Services Inc., a California non-profit corporation
j 15 (the "Developer"), is the owner of certain Property located in the redevelopment project area
16 described in the Redevelopment Plan ("Plan") for the Central City North Redevelopment Project
17 Area ("Project Area"); and
18 WHEREAS, the Developer has undertaken a project on the site which, when complete,
19 will consist of a medical clinic of approximately 28,340 square feet ("Project") providing quality
20 medical, obstetric, gynecological, pharmaceutical and dental services to the medically
21 underserved communities of the City of San Bernardino (the "City") as well as on-site primary
22 health care, mental health treatment, and other types of medical and social services to be provided
23 within the Project Area; and
24 WHEREAS, the Project has been conditioned with unfunded and unanticipated
25 requirements by the City related to construction of certain improvements to the public right of
26 way on "D" Street and 7`" Street, including but not limited to, street widening on "D" Street,
27 relocation of utility poles and new curb, gutter, sidewalk and landscaping ("Public
28 Improvements")at an estimated cost of $265,000 causing the Developer to request certain
1
P.Wgendas\Resolutions�Resolutions\2007\02-20-07 Inland Behavioral&Health Services CDC Reso.doc
1 assistance and reimbursements from the Agency to help offset the cost of the Public
2 Improvements; and
3 WHEREAS,the Project is consistent with the goals of the Plan; and
4 WHEREAS, the Project will assist the Agency in accomplishing its goal to reduce blight in
5 the Project Area described in the Plan for the Project Area pursuant to the California Community
6 Redevelopment Law; and
7 WHEREAS, a 2007 Property Owner Participation Agreement between the Agency and the
8 Developer (the "Agreement") has been prepared.
9 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
10 OF SAN BERNARDINO DOES HEREBY RESOLVE,DETERMINE AND ORDER,AS FOLLOWS:
11 Section 1. The City has previously undertaken an appropriate review of the potential
12 affect of the Project on the environment pursuant to the California Environmental Quality Act
13 ("CEQA"). Pursuant to CEQA Regulations Section 15096, the Community Development
14 Commission ("Commission"), as the governing board of the Agency has completed an
15 independent review of the 2006 CEQA determination of the Design Review Committee of the
16 City as it relates to the Project and hereby finds that as a responsible agency under CEQA for the
17 purpose of the redevelopment assistance provided to the Developer under the terms of the
18 Agreement, no further environmental review of the Project or the Agreement by the Commission
19 is necessary at this time in connection with its consideration of the approval of the Agreement.
20 The Developer shall be responsible for complying with all conditions and environmental impact
21 mitigation measures as required by the City under the City's approval of the development project
22 application for the Project. The Executive Director of the Agency is authorized to file an
23 appropriate Notice of Determination Exemption with the County Clerk for the approval of the
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24 Agreement.
25 Section 2. The Commission hereby approves the Agreement and hereby approves and
26 authorizes the Executive Director of the Agency to execute the Agreement on behalf of the
27 Agency. The Executive Director of the Agency is hereby authorized to make minor corrections,
28 additions and clarifications to the Agreement, provided said changes are not substantive in nature,
2
P\Agendas\Resolutions\Resolutions\2007\02-20-07 Inland Behavioral&Health Services CDC Reso.doc
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I are approved by Agency Counsel and do not increase the monetary impact to the Agency under
2 the terms of the Agreement as hereby approved.
3 Section 3. Subject to the satisfaction by the Developer of the conditions set forth in the
4 Agreement, the obligation of the Agency to make the reimbursements to the Developer under the
5 terms of the Agreement from the special source of funds described in the Agreement shall be an
6 "indebtedness of the Agency", as this term is defined in Health and Safety Code Section 33675.
7 The Executive Director of the Agency is hereby directed to cause the Statement of Indebtedness
8 for the Project to include the indebtedness of the Agency to the Developer, as evidenced by the
9 Agreement, to be filed with the Auditor-Controller of San Bernardino County in the manner
10 authorized by law.
11 Section 5. Pursuant to Health and Safety Code Section 33445, the Commission hereby
12 makes the following findings and determinations concerning the installation and construction of
13 improvements which are publicly owned and for which payment will be made on a reimbursement
14 basis pursuant to the Agreement for those improvements as specified in the Recitals to this
15 Resolution and in the Agreement: (1) that the improvements are of benefit to the Project Area; (2)
16 that no other reasonable means of financing the Public Improvements are available to the
17 community; (3) that the payment of the cost of the Public Improvements to be made by the Agency
18 pursuant to the Agreement will assist in the elimination of one or more blighting conditions inside
19 the Project Area; and (4) that the payment of said Public Improvements are consistent with the
20 Project Area Redevelopment Plan and Implementation Plan.
21 Section 6. The Resolution shall become effective immediately upon its adoption.
22
23
24
25
26
27
28
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P\Agendas\Resolutions\Resolutions\2007\02-20-07 Inland Behavioral&Health Services CDC Reso.doc
I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO (1) APPROVING AND
2 AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECUTE A 2007 PROPERTY OWNER
4 PARTICIPATION AGREEMENT BY AND BETWEEN THE AGENCY AND
INLAND BEHAVIORAL AND HEALTH SERVICES, INC., FOR THE
5 DEVELOPMENT OF THE PROPERTY AT 655 NORTH "D" STREET
("PROPERTY") AND (2) MAKING CERTAIN FINDINGS AND
6 DETERMINATIONS THERETO RELATED TO THE DEVELOPMENT OF
7 THE PROJECT (CENTRAL CITY NORTH REDEVELOPMENT PROJECT
AREA)
8
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
9
Development Commission of the City of San Bernardino at a meeting thereof,
10
held on the day of , 2007, by the following vote to wit:
11
Commission Members: Ayes Nays Abstain Absent
12
ESTRADA
13
BAXTER
14 BRINKER
15 DERRY
16 KELLEY
17 JOHNSON
18 MC CAMMACK
19
20 Secretary
21 The foregoing Resolution is hereby approved this day of , 2007.
22 Patrick J. Morris, Chairperson
23 Community Development Commission
of the City of San Bernardino
24 Approved as to Form:
25
By:
26 Agency Co sel
27
28
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P Wgendas\Resolutions\Resolutions\200T02-20-0'7 Inland Behavioral&Health Services CDC Reso.doc
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2007
PROPERTY OWNER PARTICIPATION AGREEMENT
BY AND BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
INLAND BEHAVIORAL AND HEALTH SERVICES, INC.
THIS 2007 PROPERTY OWNER PARTICIPATION AGREEMENT (this
"Agreement") is dated as of February 20, 2007, by and between Inland Behavioral and Health
Services, Inc., a California non-profit corporation (the "Developer"), and the Redevelopment
Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), and
this Agreement is entered into with respect to the following facts:
RECITALS
The Developer has purchased certain lands situated at 655 North "D" Street, San
Bernardino, California (APNs: 0140-282-37, 38, 56, and 49 and APNs: 0135-011-10, 12, and 16)
(the "Property"). The Property is located in the redevelopment project area described in the
Redevelopment Plan (the "Redevelopment Plan") for the Central City North Redevelopment
Project Area ("Project Area"). The general location of the Property is shown on a vicinity map
and is more particularly described in the legal description of the Property, attached hereto as
Exhibit "A" and incorporated herein by this reference.
The Developer has commenced construction of a 28,340 square foot medical
center (the "Project") located on the Property, which is approximately 1.3 acres in size. The
building will bring quality medical, obstetric, gynecological, pharmaceutical and dental services
to the medically underserved communities of the City providing on-site primary health care as
well as mental health treatment and other types of medical and social services to be provided
within the Project Area.
The Developer estimates that upon completion of the Project, the cost of
acquisition and construction of the Project will be approximately Nine Million Two Hundred
Thousand Dollars ($9,200,000).
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The Developer estimates that upon completion of the Project, approximately 300
new jobs will be created at the Project earning a minimum average of Forty Thousand Dollars
($40,000)per year.
The Developer, for itself and its successors and assigns, and the Agency for itself
and its successors and assigns, have entered into this Agreement in order to implement the
Redevelopment Plan and for the benefit of the Project Area and the Property as authorized under
Health and Safety Code Section 33000, et seq.
4821-9575-8849.1 1
P.\Agendas\Agenda Attachments\Agrnrts-Amend 2007\02-20-07 Inland Behavioral&Health Services Final OPA.doc
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES
AND COVENANTS OF THE PARTIES, THE DEVELOPER, FOR ITSELF AND ITS
SUCCESSORS AND ASSIGNS AND THE AGENCY, FOR ITSELF AND ITS SUCCESSORS
AND ASSIGNS, AGREE:
Section 1. Effective Date of Agreement and Obligation of the Agency to
Make Certain Payments to the Developer.
This Agreement shall take effect following its approval by the Agency and
execution by the parties and upon satisfaction of all conditions precedent to this Agreement
taking effect in accordance with its terms all having been duly satisfied. The obligation of the
Agency to make the payments to the Developer under Section 3 of this Agreement shall arise
when all of the following conditions have been satisfied by the Developer:
(a) The Developer has obtained from the City of San Bernardino (the "City")
a final Certificate of Occupancy for the Project to be constructed and installed on the Property by
the Developer. The words "Development Project" as used in this Agreement, mean and refer to
the improvement and economic revitalization of the Property by the Developer as necessary or
appropriate to provide for the improvement and use of the Property as the Project. The Project
shall include the construction of all related off-site public improvements as necessary or
appropriate to accommodate the improvement of the Development Project on the Property. A
detailed description of the functional elements of the Development Project (the "Scope of
Development") is attached as Exhibit `B." The City is not a party to this Agreement and nothing
herein shall be deemed to create any interest in the Property as may otherwise arise under
Government Code Section 65860 et seq.;
(b) The Developer will have completed the work of improvement of the
Development Project on the Property, including the installation of the off-site work to be
conducted by the Developer in various public street right-of-way by a date not later than
December 30, 2007. For the purposes of this Agreement, the words "work of improvement of
the Development Project' shall be deemed "completed" on the date when the Developer files its
notice of completion as defined in Civil Code Section 3093 for the Development Project;
(c) The City acting by and through its Development Services Department has
accepted, as complete, the public improvement items, the public improvement items consisting
of public street improvements on the east side of"D" Street and the north and south sides of 7`
Street east of"D" Street, including, (i) widening of"D" Street; (ii) relocation of utility poles; and
(iii) installation of new curbs, gutters and sidewalks, and the City has issued all necessary
approvals and building permits for such construction to commence on or before the date set forth
in subsection (b) above;
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(d) The Notice of Memorandum of Agreement referenced in Section 10, and
attached hereto as Exhibit "C", has been fully executed by the parties and filed for recordation;
and
4821-9575-8849.1 2
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(e) Failure of the Developer to comply with the above set forth terms and
conditions on or before the date specified in Section 1(b) above shall render this Agreement null
and void without any further action by the Agency and without any requirement for notice from
the Agency to the Developer.
Section 2. Conformity of the Development Project with the
Redevelopment Plan.
(a) The Agency has found and determined as of the date of this Agreement
that the improvement of the Development Project described in the Scope of Development,
attached hereto as Exhibit `B", and thereafter, the medical clinic facility on the Property is
consistent with the Redevelopment Plan.
(b) The Agency hereby finds and determines that the financial and
redevelopment assistance to be provided by the Agency to the Developer, subject to the
completion of the Development Project on the terms set forth in Section 3 of this Agreement is
necessary and appropriate pursuant to Health and Safety Code Section 33455 and that the
legislative body of the City(the "Council")has made the following findings of fact regarding the
installation of the publicly owned improvements: (i) the improvements are to the benefit of the
Project Area; (ii) no other reasonable means of financing the improvements are available to the
community; (iii) the payment of said improvements is consistent with the Redevelopment Plan
for the Project Area pursuant to Health and Safety Code Section 33490; and (iv) that the
redevelopment covenants of the Developer as contained in this Agreement shall materially assist
the Agency to eliminate conditions of blight in the Project Area.
Section 3. Agency Contribution to Pay a Portion of the Public
Improvement Cost Reimbursements to the Developer.
(a) The improvement and completion of the Development Project requires the
Developer to pay various public capital facility impact mitigation fees and public agency permit
fees and utility connection capital charges (collectively, the "Public Agency Charges").
(b) The improvement and completion of the Project requires the Developer to
design, construct and install certain off-site public street improvements as conditioned by the
City. Certain additional off-site public improvements as described in Exhibit "D" as the
"Improvement Cost Reimbursements" have subsequently been conditioned upon the project after
construction of the Project, as approved. The total estimated cost of the Improvement Cost
Reimbursements is Two Hundred Sixty-Five Thousand Dollars ($265,000) with the payment of
prevailing wage rates, as applicable.
(c) Subject to the terms and conditions of this Agreement, the Agency hereby
agrees to reimburse the Developer from the special source of funds described herein as the
Agency Fund in a sum not to exceed Two Hundred Sixty-Five Thousand Dollars ($265,000) as
an off-set to the Improvement Cost Reimbursements:
(1) the indebtedness of the Agency to the Developer under this Section
3 shall be evidenced solely by this Agreement and shall be subordinate to all other present and
future debt instruments, bonds, notes and other forms of indebtedness as may be incurred by the
Agency;
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(ii) the principal amount of the indebtedness shall be verified by the
Executive Director of the Agency following completion of the Development Project and
acceptance of the items comprising the Improvement Cost Reimbursements and the
Improvement Cost Reimbursements incurred by the Property Owner in connection with the
improvement of the Development Project, together with the certified payroll records for the
construction and installation of those certain public improvements as specified in Exhibit "D"
attached hereto, provided, however, that in the event that the total cost of the Improvement Cost
Reimbursements as actually paid by the Developer may in the aggregate be less than the sum of
$265,000, then in such event, the principal balance payable under the terms of this Agreement
shall be such lesser amount. No additional reimbursements shall be payable by the Agency to
the Developer after the total principal amount of the Improvement Cost Reimbursements have
been paid in whole by the Agency to the Developer in an amount equal to the actual costs of the
Improvement Cost Reimbursements approved by the Executive Director of the Agency but not to
exceed the dollar amount of$265,000, without interest;
(iii) the Developer has submitted to the Executive Director of the
Agency, a true and correct copy of the complete and certified payroll records related to the
construction for those components of the Improvement Cost Reimbursements which document
the fact that prevailing wages have been paid to all workers employed by the Developer, or its
general contractor and each subcontractor thereof, related to the construction of said
improvements. For the purposes of this subparagraph, the words "certified payroll records" shall
have the same meaning as set forth at California Labor Code Section 1776;
(iv) no interest shall accrue on any amounts due under the terms of this
Agreement;
(v) this Agreement shall have a maturity date which is the first
anniversary following the date of this Agreement, and if any unpaid principal balance remains
owing by the Agency to the Developer after such anniversary, such sum shall be waived and
forgiven by the Developer, or any successor in interest, as the holder of this Agreement;
(vi) the Agency shall execute and deliver this Agreement to the
Developer after approval of this Agreement by the Community Development Commission of the
City of San Bernardino, and thereafter, the Developer shall undertake the following items as
conditions to the remittance of any portion of the legally available Agency Fund to be used and
applied for payment of the Improvement Cost Reimbursements. The Agency shall reimburse the
Developer when all of the following items have been satisfied: (1) the Developer has caused the
notice of completion for the Development Project to be recorded, as set forth in Section 1(b); (2)
the City accepts the public improvements as complete and as having been constructed in
accordance with all specifications and requirements of the City; and (3) the Developer has
provided the Executive Director of the Agency with the final accounting of the total costs paid
by the Developer for the Improvement Cost Reimbursements together with the certified payroll
record for the public street items comprising the Improvement Cost Reimbursements. The
Agency shall reimburse the Developer within sixty (60) days after receipt of the aforementioned
documentation.
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Section 4. Covenant Against Unlawful Discrimination.
The terms and provisions of Health and Safety Code Section 33436 which
prohibit various types of unlawful discrimination are hereby incorporated into this Agreement by
this reference. The Developer agrees to comply with such terms and provisions as contained in
the California Community Redevelopment Law as set forth in the Health and Safety Code and in
the Redevelopment Plan with respect to covenants against unlawful discrimination for the
periods of time specified therein, in the Redevelopment Plan and in Section 8 hereof.
Section 5. Special Representations and Covenants of the Developer.
The Developer hereby agrees that in connection with its construction and
installation of the Improvement Cost Reimbursements, that not less than "prevailing wages", as
this term is defined at California Labor Code Section 1770, et seq., shall be paid by the
Developer, its contractor and any subcontractor to all workmen employed in connection with the
construction and installation of the improvements. The provisions of California Labor Code
Sections 1775 and 1776 shall be applicable to the performance of this obligation of the
Developer and to the remedies of the Agency in the event of a breach of the obligation by the
Developer.
Section 6. Maintenance Condition of the Property.
Upon the delivery of this Agreement to the Developer as set forth herein, the
Developer, for itself, its successors and assigns hereby covenants and agrees that:
(a) The areas of the Property which are subject to 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 following the date of recordation of the Notice of
Memorandum of Agreement as provided in Section 10, 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 the Developer in writing of the Maintenance Deficiency and give the Developer
thirty (30) calendar days from receipt of such notice to cure the Maintenance Deficiency as
identified in the notice. In the event the Developer 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 the Developer ten (10) calendar days prior to
the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency
exists and whether the Developer has failed to comply with the provision of this Section 6(a). 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, as 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 6(a) shall become a lien on the Property. If the amount of
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the lien is not paid within thirty (30) calendar days after written demand for payment by the
Agency to the Developer, the Agency shall have the right to enforce the lien in the manner as
provided in Section 6(c).
(b) Graffiti, as this term is defined in Government Code Section 38772, which
has been applied to any exterior surface of a structure or improvement on the Property which is
visible from any public right-of-way adjacent or contiguous to the Property, shall be removed by
the Developer by either painting over the evidence of such vandalism with a paint which has
been color-matched to the surface on which the paint is applied, or graffiti may be removed with
solvents, detergents or water as appropriate. In the event that such graffiti may become visible
from an adjacent or contiguous public right-of-way but is not removed within seventy-two (72)
hours following the time of such application, the Agency shall have the right to enter the
Property and remove the graffiti without notice to the Developer. Any sum expended by the
Agency for the removal of such graffiti from the Property authorized by this Section 6(b) in an
amount not to exceed Two Hundred Fifty Dollars ($250) per entry by the Agency, shall become
a lien on the Property. If the amount of the lien is not paid within thirty (30) calendar days after
written demand for payment by the Agency to the Developer, the Agency shall have the right to
enforce its lien in the manner as provided in Section 6(c).
(c) The Developer hereto further mutually understands and agrees that the
rights conferred upon the Agency under this Section 6 expressly include the power to establish
and enforce a lien or other encumbrance against the Property, or any portion thereof, in the
manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount reasonably
necessary to restore the Property to the maintenance standard required under Section 6(a) or
Section 6(b), including attorneys fees and costs of the Agency associated with the abatement of
the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency
in connection with such action. The provisions of this Section 6 shall be a covenant running with
the land for the term as provided in Section 8 and shall be enforceable by the Agency. Nothing
in the foregoing provisions of this Section 6 shall be deemed to preclude the Developer from
making any alteration, addition or other change to any structure or improvement or landscaping
on the Property, provided that such changes comply with applicable zoning and building
regulations of the City.
Section 7. Defaults and Breach—General.
This Agreement shall have no further force or effect in the event that the
Developer may fail to complete the improvement of the Development Project by the date
indicated in Section 1(b). In the event that the Development Project may not be completed by
such date for any reason, then in such event, neither party shall be under any further obligation
under this Agreement, and the rights of the parties hereunder shall be released and discharged.
Failure or delay by either party to perform any material term or provision of Section 3, Section 4,
Section 5 or Section 6 of this Agreement shall constitute a default under this Agreement;
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.
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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 to delay by a party in asserting any of its rights and remedies as to any
default shall not operate as 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
Agreement, 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.
Section 8. Covenants Running with the Land.
This Agreement is expressly declared by the parties for themselves and for the
successors and assigns of each of them, to be for the benefit of the Property and the Project Area:
(a) The provisions of Section 6 of this Agreement are covenants which run
with the land and the Property from the date of the Notice of Memorandum of Agreement as set
forth in Section 10.
(b) The provisions of Section 4 of this Agreement are a covenant which run
with the land and the Property in perpetuity.
Section 9. Early Termination of Agreement by the Developer.
The Developer may terminate this Agreement at its discretion for any reason
before the date specified in Section 1(b) by serving written notice of termination of this
Agreement to the Agency which specifically refers to this Section 9 of this Agreement. Upon
receipt by the Agency of such written notice of termination, the Agency shall cause to be
recorded a release of the Notice of Memorandum of Agreement, and thereafter the parties shall
be mutually released from any further obligations which arise under this Agreement.
Section 10. Notice of Memorandum of Agreement.
The parties hereby agree and declare that the successors and assigns of each shall
be bound by the terms of this Agreement. The parties shall execute and the Agency shall cause
to be recorded, a Notice of Memorandum of Agreement, substantially in the form as attached
hereto as Exhibit "C" and incorporated herein by this reference. The Notice of Memorandum of
Agreement shall be recorded promptly upon the full execution of this Agreement by the parties
and after approval of this Agreement by the governing body of the Agency at a duly held public
meeting.
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Section 11. Attorneys' Fees.
If either party hereto files any action or brings any action or proceeding against
the other arising out of this Agreement, then the prevailing party shall be entitled to recover as an
element of its costs of suit and not as damages, its reasonable attorneys' fees as fixed by the
court in such action or proceeding or in a separate action or proceeding brought to recover such
attorneys' fees.
Section 12. Headings and Attachments.
The headings of each section of this Agreement are provided for purposes of
reference and convenience only and do not have any meaning which is independent of the text of
the section of this Agreement to which they may generally correspond. The following is a list of
documents that are attached as part of this Agreement:
Exhibit"A" - Vicinity Map and Legal Description of the Property
Exhibit `B" - Scope of Development
Exhibit "C" - Notice of Memorandum of 2007 Property Owner Participation
Agreement
Exhibit "D" - Description of Improvement Cost Reimbursements
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THIS 2007 PROPERTY OWNER PARTICIPATION AGREEMENT is dated as
of February 20, 2007, and this Agreement shall have no force or effect unless it has been
approved by the governing body of the Agency and executed by the authorized officer of the
Developer and by the Agency as evidenced by the signatures of each of them which appear
below. This Agreement may be executed in counterparts and when fully executed by the parties,
each counterpart shall be deemed to be part of one original Agreement.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Date: By:
Maggie Pacheco, Executive Director
Approved as to Form and Legal Content:
By:
Agenc_y oqnjsel
PROPERTY OWNER
Inland Behavioral and Health Services, Inc.,
a California non-profit corporation
Date: By:
Dr. Temetry A. Lindsey, Chief Executive Officer
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EXHIBIT "A"
VICINITY NIAP AND LEGAL DESCRIPTION OF THE PROPERTY
The north of lot 4, block 51 of the City of San Bernardino, APNs: 0140-282-37, 38, 49, 56 in the
City of San Bernardino, County of San Bernardino, State of California, as per map recorded in
Book 7, page 1 of maps, in the Office of the County Recorder;
and
That portion of lot 3, block 51 of the City of San Bernardino, APNs: 0135-011-10, 12, 16 in the
City of San Bernardino, County of San Bernardino, State of California, as per map recorded in
Book 7, page 1 of maps, in the Office of the County Recorder.
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EXHIBIT "B"
SCOPE OF DEVELOPMENT
Project approved with Development Permit Type II No. 03-02 for a 28,340 square foot medical
clinic in the CR-2 (Commercial Regional Downtown) land use designation on approximately 1.3
acres located at 655 North "D" Street, San Bernardino, California (APNs: 0140-282-37, 38, 56,
and 49 and APNs: 0135-011-10, 12, and 16) in the Central City North Redevelopment Project
Area.
Certain standard public improvements are required, such as work to curbs, gutters, etc.
Additional off-site public improvements are listed in more detail in Exhibit "D" Description of
Improvement Cost Reimbursements.
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EXHIBIT"C"
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
Redevelopment Agency of the )
City of San Bernardino )
Attn.: Maggie Pacheco,Executive Director )
201 North"E" Street, Suite 301 )
San Bernardino, California 92401 )
(Space above line reserved for use by Recorder)
Recording Fee Exempt Pursuant to Government Code Section 6103
NOTICE OF MEMORANDUM OF
2007 PROPERTY OWNER PARTICIPATION AGREEMENT
Redevelopment Agency of the City of San Bernardino
(Inland Behavioral and Health Services,Inc.)
TO ALL INTERESTED PERSONS, PLEASE TAKE NOTICE:
THIS NOTICE OF MEMORANDUM OF 2007 PROPERTY OWNER
PARTICIPATION AGREEMENT (this "Memorandum") is dated as of February 20, 2007, by
and between Inland Behavioral and Health Services, Inc., a California non-profit corporation (the
"Developer"), and the Redevelopment Agency of the City of San Bernardino, a public body,
corporate and politic (the "Agency"). This Memorandum affects certain real property in the City
of San Bernardino, County of San Bernardino, California, located at 655 North "D" Street, San
Bernardino, California (APNs: 0140-282-37, 38, 56, and 49 and APNs: 0135-011-10, 12, and 16)
(the "Property"). The Property is more particularly described in the legal description attached
hereto as Exhibit"1" and incorporated herein by this reference.
PLEASE TAKE FURTHER NOTICE that the Developer and the Agency have
entered into that certain "2007 Property Owner Participation Agreement," dated as of February
20, 2007 (the "OPA"), which affects the Developer and the Agency which OPA benefits and
burdens the Property and which run with the land for the period of time as set forth therein.
Section 4 of the OPA is entitled:
Covenant Against Unlawful Discrimination.
Section 5 of the OPA is entitled:
Special Representations and Covenants of the Developer.
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Section 6 of the OPA is entitled:
Maintenance Condition of the Propert y.
Interested persons may inspect a copy of the text of the OPA which is on file as a
public record of the Agency in the office of the Agency Secretary during regular business hours.
This Memorandum may be executed by the parties in counterpart. The
recordation of this Memorandum is authorized by action of the Agency under Government Code
Section 6503 and Health and Safety Code Sections 33337, 33338 and 33339.
PROPERTY OWNER
Inland Behavioral Health Services Inc.
a California non-profit corporation
Dated: By:
Dr. Temetry A. Lindsey, Chief Executive Officer
AGENCY
Redevelopment Agency
of the City of San Bernardino,
a public body, corporate and politic
Dated: By:
Maggie Pacheco, Executive Director
(ALL SIGNATURES TO BE ACKNOWLEDGED)
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EXHIBIT "1"
Legal Description of the Property
The north of lot 4, block 51 of the City of San Bernardino, APNs: 0140-282-37, 38, 49, 56 in the
City of San Bernardino, County of San Bernardino, State of California, as per map recorded in
Book 7,page 1 of maps, in the Office of the County Recorder;
and
That portion of lot 3, block 51 of the City of San Bernardino, APNs: 0135-011-10, 12, 16 in the
City of San Bernardino, County of San Bernardino, State of California, as per map recorded in
Book 7, page 1 of maps, in the Office of the County Recorder.
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EXHIBIT "D"
DESCRIPTION OF IMPROVEMENT COST REIMBURSEMENTS
1. Public right-of-way improvements, including removal of existing curb,
gutter and sidewalks and relocating and replacing same on"D" Street. $ 184,000
2. Relocation of utility poles to accommodate the new conditioned right-
of-way on"D" Street. $41,000
3. Additional 4"water line to Property. $40,000
Total Improvement Cost Reimbursements $265,000
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