HomeMy WebLinkAboutR33-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Gary Van Osdel
Executive Director
SUBJECT:
o r/ \,~ ,', ':~ L
2002 NEW JOBS REDEVELOPMENT
GRANT AGREEMENT (JOB OPTIONS,
INC.)
DATE:
November 21, 2002
SvnoDsis ofPrevions Commission/Conncil/Committee Action(s):
On October 24, 2002, the Redevelopment Committee voted to recommend to the Community Development Commission
approval of an agreement to provide sewer capacity rights to Job Options Commercial Laundry.
Recommended Motion(s):
(Community DeveloDment Commission)
MOTION:
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO, AS THE GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO, APPROVING AND AUTHORIZING EXECUTION OF THAT
CERTAIN 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT (JOB OPTIONS, INC.)
AND THE GRANT OF CERTAIN SEWER CAPACITY RIGHTS TO JOB OPTIONS, INC. IN
CONNECTION THEREWITH.
Contact Person{s):
Project Area(s)
Gary Van Osdel
IVDA
Phone:
(909) 663-1044
Third
Ward(s):
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
FUNDING REQUIREMENTS Amount: $ $45,188
7
Source:
Sewer Capacity Rights
SIGNATURE:
Yes
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Commission/Council Notes:
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P:\C1crica1 Services Dcpt\MargaRlParkcr\Apnda\CDC 2002\02-12-02 Job Options Inc.doc
COMMISSION MEETING AGENDA
Meeting Date: 12/0212002
Agenda Item Number: m
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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2002
New Jobs Redeveloument Grant Al!reement
(Job Outions, Inc.)
BACKGROUND:
Job Options, Inc. is a non-profit, San Diego based, organization whose mission is to provide jobs
for individuals with severe mental, physical or psychological disabilities. Originally established
in 1987 as a vocational division of Mental Health Systems Inc., a California non-profit
specializing in mental health and substance abuse treatment programs, Job Options, Inc. became
a separate corporation in 1993.
Working with the State Department of Rehabilitation and other non-profit agencies that assist
individuals with disabilities, Job Options, Inc. is dedicated to providing opportunities for
rewarding and productive employment to the disabled population. They currently employ
approximately 400 persons in such services as grounds maintenance, custodial, shelf stocking
and laundry. Historically, Job Options, Inc. has bid on and received contracts to provide these
services to various federal agencies under the Javits-Wagner-O'Day Act. However, because of
an exceptional customer service record, they are rapidly expanding their commercial client base.
Recently, Job Options, Inc. contacted Twin Creek Properties, L.L.C. (the "Developer") regarding
a desire to expand its commercial laundry services to San Bernardino. The Developer proposes
to acquire a site selected by Job Options, Inc. on Washington Street, north of Orange Show Road
(lVDA Project Area), and to develop thereon an 8,400 square foot building for a total cost of
approximately $689,000. Job Options, Inc. proposes to enter into a ten-year lease for the
building with the Developer at a base rate of $.65 per square foot per month triple net. This is
approximately 40% higher than currently market rental rates for comparable facilities in the City.
The high rate is being required by the Developer to make construction of the laundry facility
economically feasible for the Developer. The site has been selected by Job Options, Inc. because
of its proximity to the City's geothermal water line. The geothermal line will enable the laundry
to access hot soft water at half the cost it would take to buy domestic water and to heat and
soften it prior to the washing process.
COMMISSION MEETING AGENDA
Meeting Date: 12/02/2002
Agenda Item Number: W
P:\Clerical Services Dept\Margaret Parlrer\Agcnda\COC 2002\02-12-02 Job Options loe.doc
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Economic Development Agency Staff Report
Job Options, Inc.
Page 2
At the proposed San Bernardino laundry facility, Job Options, Inc. plans to initially employ a
production supervisor, a flat work fmisher supervisor, six to eleven flat work finishers, two
washers and a truck driver. Individuals with some type of disability will make up approximately
75% of the direct labor performed on the laundry contracts. Training its time-consuming, trying
and is a continuous process in the Job Options, Inc. operations. It is anticipated that training will
consume 80% of the time for the first two months, 60% for the next two, 50% for the next two,
40% for the next two and 20% from the eighth month on and continuing.
CURRENT ISSUE:
Staff has been advised by the Water Department that the amount of the sewer capacity fee that
Job Options, Inc. will be required to pay depends on the intended use of the building. For a
laundry the fee is calculated on the estimated gallons of water to be discharged to the sewer each
day multiplied by $12.50 per gallon. Based on this methodology, the sewer capacity fee for the
Project is estimated to be $45,187.50. Job Options, Inc. has informed the Agency that having to
pay this substantive a sewer capacity fee, along with having to pay a base rent of $.65 per square
foot per month, imposes a financial burden that is too onerous to be sustained by the Project. Job
Options, Inc. is therefore seeking assistance from the Agency.
Pursuant to a program initiated in 1984, the Agency purchased 800 Sewer Capacity Rights
("SCR's") from the Water Department to be utilized as incentives for commercial development
within redevelopment project areas. In 1989, having used only 95 SCR's, the Agency sold 605
of the SCR's back to the Water Department. According to information received from the
General Manager of the Water Department, the Agency continues to hold 100.2 SCR's as of
October 22, 2002.
In order to make the Project economically feasible for Job Options, Inc. and to assist in the
creation of new jobs for the community, Staff recommends that the Agency grant 19.94 SCR's to
Job Options, Inc. pursuant to a New Jobs Redevelopment Grant Agreement between the Agency
and Job Options, Inc.
Inasmuch as the Agency guidelines for the sale, transfer or other assignment of SCR's as
incentive for commercial or industrial development limits such assignments to redevelopment
project areas, the Agency will need to specifically approve a transfer of SCR's to permit
commercial and industrial development in a location that is not within a redevelopment project
area ofthe Agency.
ENVIRONMENTAL IMPACT:
Approval of a New Jobs Redevelopment Grant Agreement is an exempt activity.
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COMMISSION MEETING AGENDA
Meeting Date: 12/02/2002
Agenda Item Number: ~
p:\Clerical Services DepI\Margan:t Parkef\Agenda\CDC 2002\02-12-02 Job Options Inc.doc
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Economic Development Agency Staff Report
Job Options, Inc.
Page 3
FISCAL IMPACT:
The Agency originally paid $2,260 per SCR. The current value per SCR is $3,615. The total
value of the proposed assistance to Job Options, Inc. is $45,187.50.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
P:\C1erica1 Services Dept\Margarel ParkeMgenda\CDC 2002\02-)2-02 Job Options Ioe.doc
COMMISSION MEETING AGENDA
Meeting Date: 1210212002
Agenda Item Number: teJ3
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RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COJ\.ThfiSSION OF THE CITY OF SAN BERNARDINO, AS THE
GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO, APPROVING AND
AUTHORIZING EXECUTION OF THAT CERTAIN 2002 NEW
JOBS REDEVELOPMENT GRANT AGREEMENT (JOB
OPTIONS, INC.) AND THE GRANT OF CERTAIN SEWER
CAPACITY RIGHTS TO JOBS OPTIONS, INC. IN
CONNECTION THEREWITH
WHEREAS, Job Options, Inc., a California corporation (the "Grantee") has entered into a ten-
year lease (the "Lease") with Twin Creek Properties, LLC, a California limited liability company (the
"Developer") of an 8,400 square foot building (the "Leased Premises") to be constructed by Developer
on certain real property located on Washington Street just north of Orange Show Road in the City of
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San Bernardino more specifically described in Exhibit "A" hereto and incorporated herein by this
reference (the "Property"); and
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WHEREAS, the Property is subject to the Redevelopment Plan for the Inland Valley
17 Redevelopment Project adopted by the Inland Valley Development Agency ("IVDA") on July 18, 1990
18 (the "IVDA Redevelopment Plan"); and
19 WHEREAS, the Grantee intends to use the Leased Premises to operate a commercial laundry
20 facility (the "Economic Development Project"); and
WHEREAS, Grantee's corporate purpose is to provide jobs for individuals with mental,
physical or psychological disabilities; and
WHEREAS, the Grantee has represented to the Redevelopment Agency of the City of San
25 Bernardino (the "Agency") that upon completion of the Economic Development Project at least eleven
26 (11) new commercial laundry service jobs or positions (the "New Jobs") will be created; and
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WHEREAS, the Grantee has further represented to the Agency that the New Jobs will continue
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in existence on the Property until the fifth (5th) anniversary following the date of completion of the
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Economic Development Project; and
WHEREAS, the Lease provides that Grantee will pay rent to the Developer at the rate of$.65
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7 WHEREAS, Grantee has represented to the Agency that this rental rate, which is approximately
8 forty percent (40%) higher than current market rental rates for comparable facilities in the City, is
9 required by the Developer in order to make construction of the Leased Premises economically feasible;
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WHEREAS, the sewer capacity fee charged by the City of San Bernardino (the "City") in
connection with the development of property in the City is based on the estimated gallons of water to
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15 WHEREAS, the sewer capacity fee with respect to the Economic Development Project is
16 approximately Forty Five Thousand One Hundred Eighty Five Dollars ($45, I 85.00); and
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WHEREAS, the Grantee has represented to the Agency that a sewer capacity fee in the
approximate amount of Forty Five Thousand One Hundred Eighty Five Dollars ($45,185.00) makes
the Economic Development Project economically unfeasible and has requested assistance from the
Agency; and
WHEREAS, pursuant to a program initiated in 1984, the Agency originally purchased eight
23 hundred (800) Sewer Capacity Rights ("SCRs") from the Water Department of the City to utilize as
24 incentives for commercial development; and
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WHEREAS, in 1989, having used only 95 SCRs, the Agency sold 605 SCRs back to the Water
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WHEREAS, the Agency currently holds 100.2 SCRs; and
WHEREAS, pursuant to Resolution No. 4697 adopted by the Agency on December 17, 1984
("Resolution No. 4697"), guidelines were established for the transfer ofSCRs from the Agency to third
parties as incentives for commercial development; and
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\\THEREAS, pursuant to Resolution No. 4726 adopted by the Agency on February 18, 1985
7 ("Resolution No. 4726"), Resolution No. 4697 was repealed and revised guidelines were established
8 for the transfer of SCRs from the Agency to third parties as incentives for commercial development;
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\VHEREAS, Resolution No. 4726 provides that, except for housing being developed through
Community Development Block Grant programs, all transfers of SCRs shall be for properties within
redevelopment project areas; and
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WHEREAS, the Economic Development Project constitutes redevelopment activity within the
survey area for the Tri-Cities Redevelopment Project Area of the Agency; and
16 WHEREAS, the Economic Development Project benefits the Tri-Cities Redevelopment Project
17 Area of the Agency; and
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WHEREAS, in order to provide assistance with respect to the financial viability of the
Economic Development Project, the Agency proposes to grant to the Grantee 19.94 SCRs; and
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22 Grant Agreement substantially in the form attached hereto as Exhibit "B" (the "New Jobs Grant
WHEREAS, the Grantee and the Agency propose to enter into a 2002 New Jobs Redevelopment
23 Agreement").
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Section 1. The above recitals are true and correct.
Section 2. On December 2,2002, the Commission considered the New Jobs Grant Agreement
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at a regular, open, public meeting of the Commission. The minutes of the Agency Secretary for the
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December 2, 2002 regular meeting of the Commission shall include a record of all documents and
communication submitted to the Commission by interested persons relating to the consideration of the
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10 New Jobs Grant Agreement.
Section 3. The Commission hereby finds and determines that, notwithstanding the guideline
contained in Resolution No.4 726 that all transfers of SCRs be for properties within redevelopment
project areas of the Agency, the transfer ofSCRs to Grantee is appropriate and shall constitute a waiver
of the provisions of Resolution No.4 726 relating to the use of SCRs solely within a redevelopment
project area and the further requirements as to the number ofSCRs to be used for each of the land use
categories set forth in said Resolution No. 4726. Such waiver as contained here shall be only with
respect to the Grantee and the New Jobs Grant Agreement and shall not apply to any other applicant
or project unless subsequently approved by official action of the Commission.
Section 4. The Commission hereby finds and determines that the Economic Development
Project is categorically exempt from the provisions of the California Environmental Quality Act, as
amended ("CEQA") pursuant to Section 15332 ofCEQA Guidelines.
Section 5. The Commission hereby approves the New Jobs Grant Agreement as submitted at
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the December 2, 2002, meeting. The Executive Director is hereby authorized and directed to execute
the New Jobs Grant Agreement substantially in the form attached hereto as Exhibit "B" and by this
reference incorporated herein on behalf of the Agency together with such technical and conforming
changes as may be approved by the Executive Director and Agency Special Counsel. If the New Jobs
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1 Grant Agreement is not fully executed by the parties for any reason within ninety'"(90) days following
2 the date of adoption of this Resolution, the New Jobs Grant Agreement shall become null and void.
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Section 6. Provided that the New Jobs Grant Agreement is fully executed by the parties
within the period oftime set forth in Section 5 of this Resolution, the Executive Director of the Agency
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6 is hereby authorized and directed to take all actions set forth in the New Jobs Grant Agreement on
7 behalf of the Agency.
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1 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO, AS THE GOVERNING BODY OF THE REDEVELOPMENT
2 AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING AND AUTHORIZING
EXECUTION OF THAT CERTAIN 2002 NEW JOBS REDEVELOPMENT GRANT
3 AGREEl\.IENT (JOB OPTIONS, INC.) AND THE GRANT OF CERTAIN SEWER
CAPACITY RIGHTS TO JOBS OPTIONS, INC. IN CONNECTION THEREWITH
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9 COMMISSION MEMBERS:
Section 7.
This Resolution shall become effective immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a
meeting
thereof, held on the
day of
, 2002, by the following vote to wit:
AYES
NAYS
ABSTAIN ABSENT
10 ESTRADA
11 LIEN
12 McGINNIS
13 DERRY
14 SUAREZ
15 ANDERSON
16 MCCAMMACK
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Secretary
The foregoing Resolution is hereby approved this
day of
.2002.
JUDITH V ALLES, Chairperson
Community Development Commission
of the City of San Bernardino
Approved as to form and
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1 STATE OF CALIFORNlA )
COUNTY OF SAN BERNARDINO) ss
2 CITY OF SAN BERNARD'NO )
3 I, Secretary of the Community Development Commission
of the City of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of
4 Community Development Commission of the City of San Bernardino Resolution No. is a
full, true and correct copy of that now on file in this office.
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IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
6 the Community Development Commission of the City of San Bernardino this day of
2002.
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Secretary of the
Community Development Commission
of the City of San Bernardino
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2 LEGAL DESCRIPTION OF THE PROPERTY
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LEGAL DJ!SCR..'PTION
Real property in the oty or Siln Bernardino, Countycf San Bernardino, State of Califomia.
described as follows:
Let 21 and the North 1/2 of Lot 23, Tl"ilct No. 1995, Valley Truck Farms, in the Oty of San
Bernardino, County of San Bernardino, State of California, as per plat recorded in bllok 29 of
maps, page (e) 13, records or said county.
APN: 0135-441-01 and 0136-451-15
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Flrr:' ~tTuui,'!!&.. Ti.z...
e I EXHIBIT "BOO
2 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
2002
NEW JOBS REDEVELOPMENT
GR<\NT AGREEMENT
(JOB OPTIONS, INC.)
THIS 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT dated
as of December _, 2002 (the "Grant Agreement") is entered into by and between the
Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the
"Agency") and Job Options, Inc., a California corporation (the "Grantee").
RECITALS
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The Grantee intends to enter into a ten-year lease (the "Lease") with Twin Creek
Properties, LLC a California limited liability company (the "Developer") of an 8,400 square foot
building (the "Leased Premises") to be constructed by Developer on certain real property located
on Washington Street just north of Orange Show Road in the City of San Bernardino, California
(the "City") more specifically described in Exhibit "A" attached hereto and by this reference
incorporated herein (the "Property"). The Property is located in an area of the City that is in
transition from residential uses to industrial and commercial uses. The existing housing stock in
the area is in deteriorating condition, and the General Plan of the City anticipates development of
the area for industrial and commercial uses. The Property is subject to the Redevelopment Plan
for the Inland Valley Redevelopment Project adopted by the Inland Valley Development Agency
("IVDA") on July 18, 1990 (the "IVDA Redevelopment Plan").
Upon completion of construction of the Leased Premises, the Grantee intends to
commence to use the Leased Premises to operate a commercial laundry facility (the "Economic
Development Project"). The IVDA has confirmed to the Agency that the operation of a
commercial laundry facility on the Property is consistent with the IVDA Redevelopment Plan.
Grantee's corporate purpose is to provide jobs for individuals with mental,
physical or psychological disabilities. The Grantee has represented to the Agency that upon
commencement of the Economic Development Project, at least eleven (II) new commercial
laundry service jobs or positions (the "New Jobs") will be created. The Lessee projects that its
payroll costs for the first six (6) months following completion of the Economic Development
Project will be One' Hundred Nine Thousand One Hundred Eighty Eight Dollars ($109,188.00)
and for the second six will be One Hundred Forty Eight Thousand Four Hundred Eighty Eight
Dollars ($148,488.00). The Grantee further represents that these New Jobs will continue in
existence on the Property until the fifth (5th) anniversary following the date of commencement of
the Economic Development Project.
The Lease provides that Grantee will pay rent to the Developer at the rate of $.65
tit per square foot per month. Grantee has represented to the Agency that this rental rate is required
SB2002:37885.1
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by the Developer in order to make construction of the Leased Premises economically feasible for
the Developer. Because Grantee will be operating a commercial laundry facility on the Leased
Premises, Grantee has calculated that the City's sewer capacity fee, which is based on the
estimated gallons of water to be discharged into the sewer each day, will be Forty Five Thousand
One Hundred Eighty Seven Dollars and Fifty Cents ($45,187.50) for the Economic Development
Project. The sewer capacity fee, for which Grantee is responsible, imposes a financial burden
that is too onerous to be sustained by the Economic Development Project. Grantee has therefore
requested assistance from the Agency.
Pursuant to a program initiated in 1984, the Agency purchased eight hundred
(800) Sewer Capacity Rights ("SCRs") from the Water Department of the City to utilize as
incentives for commercial development. In 1989, having used only 95 SCRs, the Agency sold
605 SCRs back to the Water Department. The Agency currently holds 100.2 SCRs. In order to
provide assistance with respect to the financial viability of the Economic Development Project,
the Agency proposes to grant to the Grantee 19.94 SCRs.
The Grantee for itself and its successors and assigns, and the Agency for itself
and its successors and assigns, have entered into this Grant Agreement in order to implement
redevelopment of the Property for commercial and industrial uses for the economic revitalization
of the area of the City in which the Property is located.
NOW THEREFORE IN CONSIDERATION OF THE PREMISES AND THE
NIUTUAL COYEN.A..."lTS OF THE PARTIES SET FORTH HEREIN, THE GRANTEE FOR
ITSELF AND ITS SUCCESSORS AND ASSIGNS, AND THE AGENCY FOR ITSELF AND
ITS SUCCESSORS AND ASSIGNS, AGREE:
Section I. Defined Terms. The matters set forth in the Recitals of this Grant
Agreement are true and correct and are material elements to the formation of this Grant
Agreement. In addition to the definitions of certain terms set forth in the Recitals of the Grant
Agreement other words and phrases represented below are used in this Grant Agreement as
defined terms:
· the words "Economic Development Project" as used in this Grant Agreement,
mean and refer to the operation on the Leased Premises of a commercial laundry
facility.
· the words "Agency Grant" mean and refer to the grant by the Agency to the
Grantee of 19.94 SCRs.
.
the words "New Jobs" refer to an aggregate number of not less than eleven (11)
new employment positions to be created on the Property upon the commencement
of the Economic Development Project and thereafter maintained for a period of
time set forth in Section 5 of this Grant Agreement.
the words "New Job" refer to the hourly wage employment position work
description of each of the employees whose work position at the Property is
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eligible to be included among the New Jobs for the purpose of satisfying the New
Jobs covenant of the Grantee set forth in Section 5 of this Grant Agreement. An
employee is eligiule to be included as holding a New Job provided that each of
the following conditions are satisfied:
(i) the employee is paid an hourly wage consistent with federal wage
standards;
(ii) the employee is assigned to work (or is eligible to work) at least One
Thousand Seven Hundred (1,700) hours per year; and
(iii) the employee is based at the Property.
Section 2. Effective Date of Grant AlITeement. This Grant Agreement shaIl
take effect following its approval by the Agency and execution by the parties.
Section 3. Covenant of the Agencv to Make the Agencv Grant to the Grantee.
Subject to the terms and conditions of this Grant Agreement, the Agency hereby agrees to grant
to the Grantee 19.94 SCRs upon the covenant of the Grantee to create and thereafter maintain the
New Jobs on the Property as set forth in Section 5 of this Grant Agreement.
Section 4. Making of Agencv Grant. The Agency shall make the Agency
Grant within thirty (30) days of the issuance by the City of a certificate of occupancy with
respect to the Leased Premises. The Agency shall make the Agency Grant upon satisfaction of
the following conditions:
(i) the Executive Director has received and is reasonably satisfied with the
financial accounting information and evidence of Grantee funds
availability to undertake the Economic Development Project as provided
by the Grantee to the Executive Director;
(ii) the Executive Director has received from Grantee a copy of the contracts
for commercial laundry services that it has been awarded by [name or
names of federal agency] to Grantee;
(iii) Grantee has delivered an original executed copy of a Notice of
Agreement Relating to Real Property, substantially in the form attached
hereto as Exhibit "B"; and
(iv) the Grantee is not otherwise in default under this Grant Agreement.
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Section 5.
Covenant of the Grantee to Maintain New Jobs on the Propertv.
(a) Subject to the terms of this Grant Agreement, the Grantee hereby
covenants and agrees to create, within six (6) months of commencement of the Economic
Development Project, at least an aggregate of eleven (11) New Jobs on the Property and, within
eighteen (18) months of commencement of the Economic Development Project, at least an
aggregate of fifteen (15) New Jobs on the Property, and thereafter to maintain fifteen (15) New
Jobs on the Property until that date which is five (5) years following commencement of the
Economic Development Project.
(b) On the first anniversary date of commencement of the Economic
Development Project, and thereafter on each ofthe next four (4) following anniversary dates, the
Grantee shall file a written verification with the Executive Director in which the Grantee reports
its compliance with the New Jobs creation and/or maintenance covenant set forth in Section 5(a).
Such report shall certify the number of persons in New Jobs positions and include appropriately
detailed payroll accounting information relating to the total hourly wage compensation amounts
paid to such persons, the total number of hours worked by such persons and the total number of
persons who were recruited, hired or released from employment for a New Job position. Such
annual report need not identify any employee by name or by specific job description nor by new
hire date, and the payroll accounting information may aggregate the hours worked and wages
paid to all persons claimed by the Grantee to hold New Jobs on the Property.
(c) In the event that on the fifth (5th) anniversary date of commencement of
the Economic Development Project, the verification of the Grantee indicates that there are fewer
than fifteen (15) New Jobs on the Property, then in such event the Grantee shall reimburse the
Agency the following sum:
$3,000.00 for each New Job position less than a total of fifteen (15) new Jobs on
the Property as of such anniversary date.
The Grantee shall reimburse the Agency any such sum as may be payable
pursuant to this Section 5(c) within thirty (30) days of demand by the Agency.
(d) The Grantee agrees to allow the Agency or its agents upon prior notice
at reasonable times to inspect the payroll accounting records on which the Grantee relies for the
verification of the New Jobs provided to the Agency in each annual report. The Agency shall
reimburse the Grantee the reasonable hourly cost of making a payroll clerk or accountant under
the direction or control of the Grantee available to assist the Agency in inspecting such payroll
accounting records.
Section 6. 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 Grant Agreement by this reference.
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Section 7. Maintenance Condition of the Property. Subject to the satisfaction
of the conditions of Section 2, the Grantee 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
eXlstmg 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 within ten (10) years following the date of approval
of this Grant Agreement by motion or resolution of the Agency, as applicable, 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 Grantee in writing of the Maintenance Deficiency
and give the Grantee thirty (30) days from receipt of such notice to cure the Maintenance
Deficiency as identified in the notice. In the event the Grantee fails to cure or commence to cure
the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing
following transmittal of",fritten notice thereof to the Grantee ten (10) days prior to the scheduled
date of such public hearing in order to verifY whether a Maintenance Deficiency exists and
whether the Grantee has failed to comply with the provision of this Section 7(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, 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 7(a) shall become a lien on the Property. If the amount of the lien is
not paid within thirty (30) days after written demand for payment by the Agency to the Grantee,
the Agency shall have the right to enforce the lien in the manner as provided in Section 7(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 Grantee 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 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 Grantee. Any sum expended by the
Agency for the removal of such graffiti from the Property authorized by this Section 7(b) in an
amount not to exceed $250.00 per entry by the Agency, shall become a lien on the Property. If
the amount of the lien is not paid within thirty (30) days after written demand for payment by the
Agency to the Grantee, the Agency shall have the right to enforce its lien in the marmer as
provided in Section 7(c).
(c) The parties hereto further mutually understand and agree that failure to
maintain the Property as set forth in this Section 7 gives rise to certain rights of the Agency to
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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 an amount reasonably
necessary to restore the Property to the maintenance standard required under Section 7(a) or
Section 7(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 7, shall be a covenant running
with the land for the term as provided in Section 9 and shall be enforceable by the Agency.
Nothing in the foregoing provisions of this Section 7 shall be deemed to preclude the Grantee
from making any alteration, addition, demolition 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. The Notice of Agreement Relating to Real Property
shall contain a reference to the provisions of Section 7 of this Grant Agreement.
Section 8. Defaults and Breach - General. Failure or delay by either party to
perform any material term or provision of Section 4, Section 5, Section 6, Section 7, Section 11,
Section 12 or Section 13 of this Grant Agreement shall constitute a default under this Grant
Agreement; provided however, that if the party who is otherwise claimed to be in default by the .
other party under Section 4, Section 5, Section 6, Section 7, Section 12 or Section 13 of this
Grant Agreement 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 claiming 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 Grant 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 9. Covenants Running With the Land. The provisions of this Grant
Agreement shall to be covenants which run with the land and the Property for a term often (10)
years from the date of approval of this Grant Agreement by motion or resolution of the Agency,
e as applicable; provided however, that upon satisfaction of the conditions of Section 5 of this
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Grant Agreement, only the provisions of Section 3, Section 6 and Section 7 shall bind the
successors and assigns of the Agency and the successors and assigns of the interests of the
Grantee in the Property. This Grant Agreement is expressly declared by the parties to be for the
benefit of the Property and the area of the City surrounding the Property.
Section 10. Termination of Grant A\!Teement.
(a) The Grantee may terminate this Grant Agreement at its discretion for
any reason before the making of the Agency Grant pursuant to Section 4 by serving written
notice of termination of the Grant Agreement to the Agency which specifically refers to this
Section IO(a) of the Agreement. Upon receipt by the Agency of such written notice of
termination, the parties shalJ be mutually released from any further obligation which arises under
this Grant Agreement.
(b) The Agency may terminate this Grant Agreement at its discretion upon
serving written notice of termination of the Agreement to the Grantee which specificalJy refers
to this Section IO(b) of the Agreement, in the event that the Economic Development Project has
not been commenced for any reason within two (2) years following the approval of this Grant
Agreement by the Agency. Upon receipt by the Grantee of such written notice of termination,
the Grantee shall return to the Agency any sum as disbursed to the Grantee under Section 4(b),
and upon receipt by the Agency of such sum, the parties shalJ be mutualJy released from any
further obligation which arises under this Grant Agreement.
Section II. Representations and Warranties of the Grantee. The Grantee
hereby makes the folJowing representations and warranties to the Agency and the Grantee
. acknowledges that the execution of this Grant Agreement by the Agency has been made in
material reliance by the Agency on such representations and warranties:
(1) to the actual and current knowledge of the Grantee, the Grantee is a duly
organized and existing California nonprofit corporation. The Grantee has the legal right, power
and authority to enter into this Grant Agreement, and the Grantee has taken all requisite action
and obtained all requisite consents in connection with entering into this Grant Agreement;
(2) to the actual current knowledge of the Grantee, the Lease has been duly
executed by the Grantee;
(3) to the actual current knowledge of the Grantee, neither the execution of
this Grant Agreement nor the consummation of the transactions contemplated hereby shall result
in a breach of or constitute a default under any other agreement, document, instrument or other
obligation to which the Grantee is a party, or under law, statute, ordinance, rule, governmental
regulation or any writ, injunction, order or decree of any court or governmental body applicable
to the Grantee or to the Property;
(4)
funds available to
to the actual and current knowledge of the Grantee, the Grantee has the
it, when combined with the Agency Grant, to undertake the Economic
S82002:37885.1
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(5) the Grantee shall use good faith efforts to hire residents of the City for
the creation of New Jobs on the Property. Such good faith efforts shall continue in effect during
the term of the New Jobs covenant under Section 5 of this Grant Agreement. The Grantee shall
consult with the Agency from time-to-time upon the reasonable request of the Agency to
formulate a reasonably acceptable program for implementing the forgoing representation of the
Grantee to use good faith efforts to hire residents of the City; provided however, that nothing in
this paragraph (5) is intended to require the Grantee to implement any New Job recruitment
program or engage in any pattern or practice of New Job recruitment or hiring which would
violate applicable law;
(6) the Grantee shall at its own expense secure or shall cause to be secured,
any and all permits that may be required by the City or any other governmental entity having
jurisdiction over the operation of the Economic Development Project.
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Section 12. Grantee Indemnitv. The Grantee agrees to indemnify and hold the
Agency, the City and the officials, officers, attorneys, employees and agents of each of them,
harmless from and against all damages, judgments, costs, expenses and attorney's fees arising
from or related to any act or omission of the Grantee in performing its obligations hereunder.
The Agency shall give the Grantee written notice of the occurrence of a claim, litigation or other
matters for which the Agency or the City may seek indemnity under this Section as promptly as
practicable following the Agency's knowledge of the occurrence of such matter, and the City
and the Agency shall reasonably cooperate with the Grantee in the defense of any such claim or
matter and shall not take any action that would adversely affect the Grantee's defense of such
matter.
Section 13. Grantee Insurance. The Grantee shall furnish, or shall cause to be
furnished, to the Agency duplicate originals or appropriate certificates of comprehensive general
liability insurance in the amount of One Million Dollars ($1,000,000.00) combined single limit,
naming the Agency and the City of San Bernardino as an additional insured. Such insurance
shall cover comprehensive general liability including, but not limited to, contractual liability;
acts of subcontractors; premises-operations; explosion, collapse and underground hazards, if
applicable; broad form property damage, and personal injury including libel, slander and false
arrest. In addition, the Grantee shall provide to the Agency adequate proof of worker's
compensation insurance coverage for its employees. Any and all insurance policies required
hereunder shall be obtained from insurance companies admitted in the State of California and
rated at least B+: (viii) in Best's Insurance Guide, current edition. All such insurance policies
shall provide that they may not be canceled unless the Agency receives written notice of
cancellation at least thirty (30) calendar days prior to the effective date of cancellation. Any and
all insurance obtained by the Grantee hereunder shall be primary to any and all insurance which
the Agency may otherwise carry, including self insurance, which for all purposes of this Grant
Agreement shall be separate and apart from the requirements of this Grant Agreement. Any and
all insurance required hereunder shall be maintained and kept in force until end of the term of the
New Jobs covenant as set forth in Section 5 of this Grant Agreement.
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Section 14. Notice of Alrreement Relating to Real Prooerty. The parties
hereby agree and declare that the successors and assigns of each shaH be bound by the terms of
this Grallt Agreement. The parties shall execute and the Agency shall cause to be recorded a
Notice of Agreement Relating to Real Property substantially in the form as attached hereto as
Exhibit "B" and incorporated herein by this reference.
Section 15. Attornevs' Fees. If either party hereto files any action or brings
any action or proceeding against the other arising out of this Grant Agreement, then the
prevailing party shaH 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 attorney's fees. As used herein, the words
"attorneys' fee" in the case of the Agency, means and includes the salary and/or hourly rates,
fees, costs and expenses, allocated on an hourly basis, of the attorneys employed by the Office of
City Attorney of the City in connection with any matter arising under this Grant Agreement.
Section 16. Headings and Attachments. The headings of each section of this
Grant 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 the Agreement to which they may
generally correspond. The following list of attached' documents are part of this Grant
Agreement:
Exhibit "A"
Legal Description of the Property
Exhibit "B"
Notice of Agreement Relating to Real Property
S82002:37885.1
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THIS 2002 PROPERTY OWNER NEW JOBS REDEVELOPMENT GRANT
AGREEMENT is dated as of December _, 2002, and this Grant Agreement shall have no force
nor effect unless it has been approved by the governing body of the Agency and fully executed
by the parties. This Grant Agreement may be executed in counterparts on behalf of the parties
by their authorized offices whose signatures appear below.
GRANTEE
JOB OPTIONS, INC., a California corporation
Date:
By:
President
By:
Secretary
AGENCY
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
Date:
By:
Executive Director
Approved As To Form
By:
Agency Counsel
582002'37885.1
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EXHIBIT "A"
Legal Description of the Property
5B2oo2:37885.1
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LEGAL DESClUPTION
Real property in lhe CIty of San Bernardino, Co~nty of Sail Bemardino, State of Cafifomia.
described as follows:
lot 22 and the North 1/2 of lot 23, iraet NO. 1995, Valley Truck Farms, in the CIty of San
Bemardino, County of San Bernardino, Slate of California, as per plat recorded in book 29 of
maps, page ell) 13, records of said county.
APN: 0136-441-01 and 0136-451-15
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FIn::1" 4.,"G";"'::Jjft Ti,.J...
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EXHIBIT "B"
Notice of Agreement Relating to Real Property
582002:37885.1
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EXHIBIT "B"
Notice of Agreement Relating to Real Property
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RECORDING REQUESTED BY
WHEN RECORDED MAIL TO:
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, California 92401
(SPACE ABOVE LINE FOR USE BY RECORDER)
REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO
NOTICE OF AGREEMENT RELATING TO REAL PROPERTY
TO ALL INTERESTED PERSONS:
PLEASE TAKE NOTICE that as of the date ofrecordation of this Notice of Agreement
Relating to Real Property, Job Options, Inc., a California corporation (the "Lessee") and the
Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency")
have entered into an agreement entitled:
"2002 New Jobs Redevelopment Grant Agreement".
This Notice of Agreement Relating to Real Property affects the property located, generally,
on Washington Street just north of Orange Show Road in the City of San Bernardino, California,
which property is more particularly described in the legal description attached hereto as Exhibit "A".
The 2002 New Jobs Redevelopment Grant Agreement contains provisions relating to maintenance
of the property, the right of the Agency to correct maintenance deficiencies upon the failure of
Lessee to comply with its maintenance obligations under the 2002 New Jobs Redevelopment Grant
Agreement and the right of the Agency to establish and enforce a lien or other encumbrance against
the Property, or any portion thereof, in the manner provided under California Civil Code Sections
2924, 2924b and 2924c in an amount reasonably necessary to restore the Property to the maintenance
standards required.
Interested persons may contact the Agency (Attention Executive Director) by telephone at
(909) 663-1044, during regular business hours for additional information relating to the 2002 New
Jobs Redevelopment Grant Agreement.
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This Notice of Agreement Relating to Real Property has been executed by the parties as set
forth below.
LESSEE
Job Options, Inc., a California corporation
By:
By:
AGENCY
Redevelopment Agency of the
City of San Bernardino
Date:
By:
Executive Director
APPROVED AS TO FORM:
Agency Special Counsel
[NOTARY JURATS ATTACHED]
S82002:38157.1
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LEGAL DESCRIPTION
Real property in the Qty or San Bernardino, Collnty Df San Bernardino, State of Cafifomia,
described as follows:
lCIt 22 and the North 1/2 of lot 23, Tract No. 1995, Valley Truck Farms, in the Oty of san
Bernardino, County of San f3ernardino, State of california, as per plat recorded in book 29 of
maps, page (s) 13, remrds or Said collnty.
APN: 0135-441-01 and 0136-'151-15
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CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
December 6, 2002
TO:
Margaret Parker, Secretary
FROM:
Michelle Taylor, Senior Secretary
RE:
Resolution CDC/2002-36
At the Mayor and Common Council meeting of December 2, 2002, the City of San Bernardino
adopted Resolution CDC/2002-36 - Resolution approving and authorizing execution of that
certain 2002 New Jobs Redevelopment Grant Agreement (Job Options, Inc.) and the grant of
certain sewer capacity rights to Job Options, Inc., in connection therewith.
Attached is a copy of the resolution and agreement for reference. Please obtain signatures on the
original agreement and return it to the City Clerk's Office, to my attention.
Please be advised that the resolution and agreement will be null and void if not executed
within 90 days, or by March 3, 2003.
If you have any questions, please do not hesitate to contact me at ext. 3206. Thank you.
Michelle Taylor
Senior Secretary
I hereby acknowledge receipt of this memorandum.
Signed:
~~~dARW
Please sign and return
Date:
,
, -<;
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 12-- 2-02.- Item # ~i')3 Resolution #
Vote: Ayes 3- 'I Nays h Abstain -e
Change to motion to amend original documents: -
cocf Zto2-- -3("
,
Absent 1-2...
Reso. # On Attachments: ,/' Contract term: -
Note on Resolution of Attachment stored separately: ~
Direct City Clerk to (circle 1): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor: 12:-3"02-
Date of Mayor's Signature: I '2-f-oz_
Date ofClerk/CDC Signature: \ 2-;S"0"2.-
NulVVoid After: 'fa D'1~ /3-:,-()"?'
By: -
Reso. Log Updated: ,./""
Seal Impressed: -
Date Memo/Letter Sent for Signature: ,.2.-(0-0"2-
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached: L Date Returned: 1~~ 11-0.'3
See Attached:
See Attached:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance Dev. Services
Police Public Services Water
Notes:
Yes ../
Yes
Yes
Yes
Yes
No
No /
NoL
N04
No~
By
By
By
By
By_
EDA ,/
MIS
Finance
Others:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: {Yt("
Date: h? ')03
Revised 01/12/01