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HomeMy WebLinkAboutR38-Economic Development Agency f ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Colin Strange Project Manager SUBJECT: AMAPOLA PLAZA DATE: July 5, 2002 c. " . '. ,. ,,' ;L .--------------------------------------------------------------------------------.------------------------------------------------------------------------------- Svnopsis of Previons Commission/Council/Committee Action(s): On June 6, 2002, the Redevelopment Committee recommended that this item be sent to the Community Development Commission for approval. ----------------------------------------------------------------------------------------.-.------------------------------------------------------. Recommended Motion(s): MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING EXECUTION OF A PROPERTY OWNER REDEVELOPMENT AGREEMENT BY AND BETWEEN AMAPOLA RICO TACO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. .----------------------------------------------------------------------------------------------.---------------------------------------------------------- Contact Person(s): Project Area(s) Gary Van Osdel/Colin Strange Mount Vernon Corridor Phone: Ward(s): (909) 663-1044 6 Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Reports FUNDING REQUIREMENTS Amount: $ 75,000 Source: Mount Vernon Bond Proceeds SIGNATURE: c-/ ~e.,.... Colin Strange Project Manager .___________n_____________.______~_..._________________n._____________________________________________________-------------------------------------------.----------- Commission/Council Notes: G.IX:.(Z (5J2:-::>.S MP:sj:7-15-02 Amapola Rico Taco COMMISSION MEETING AGENDA Meeting Date: 07/15/02 Agenda Item Number: f( 3 ~ / ECONOMIC DEVELOPMENT AGENCY STAFF REPORT -----------------------------------------------------------------------------------------------------------------_.-- Amaoola Plaza BACKGROUND: Amapola Rico Taco ("Amapola") is a local chain of Mexican restaurants that has been in business in the City of San Bernardino since 1975. The company has three restaurant locations that employ 55 employees and generate $216,000 of sales taxes per year, which equates to approximately $30,000 per year for the City. Amapola is currently in the process of expanding its food operations at 1279 West Baseline, which is located within the Mt. Vernon Corridor Project Area. CURRENT ISSUE: Amapola has acquired three blighted properties on a highly visible comer adjacent to their current location at 1279 West Baseline, on the southeast comer of Mt. Vernon Avenue and Baseline. The proposed development includes the construction of a new 2-story, 5,485 square foot multi-tenant retail center in a Spanish colonial architectural style with pure ivory stucco surface and low-pitched tile roof. The new building will house the corporate headquarters for Amapola with a commissary kitchen that will serve the existing three locations as well as future planned restaurants. In addition, the facility will be used as a training center for its employees, provides the restaurant's capability to expand its catering services, and makes two retail spaces available for lease. The development will include on-site improvements such as new paved parking, concrete hardscape, and almost 16,000 square feet of landscaped area with a minimum of twenty IS-gallon trees. This development will provide a much-needed facility to expand Amapola's current food operations and creates employment opportunities for 12 tol5 new employees from the local area. In addition, the project will generate additional revenues for the City, eliminate a blighted highly visible comer, and may spark future development in the Mt. Vernon Corridor Project Area. The company is seeking financial assistance from the Agency to support it's new jobs expansion plans which will be implemented for the site as part of the overall redevelopment of this blighted location. The following table illustrates the financial commitment from Amapola in the development of 1279 West Baseline. . Acquisition of all three properties (already acquired) (APN 0139-071-1,25,26, & 28) . Estimated equipment costs . Preliminary estimate for construction Total Estimated Value of Project $133,000 + $200,000 + $625.000 + $958,000 MP:sj:7-15-02 Amapola Rico Taco COMMISSION MEETING AGENDA Meeting Date: 07/15/02 Agenda Item Number: R 3 R The following table illustrates the benefits for the Agency from this project. Tax Increment: . Increase in property valuation from $50,000 to $758,000 . I % tax increment . Less 20% housing set-aside . Net set-aside . 28 years life remaining on Mt. Vernon Project Area Total income to Agency over life of project $708,000 $ 7,080 - ($ 1,416) $ 5,664 x 28 $158,592 New Jobs Creation: 12 - 15 New jobs created and maintained at the site: Estimated new job payroll over the four years between $700,000.00 and $1.25 million ENVIRONMENTAL IMPACT: The proposed activity is exempt under CEQA, Section 15332. FISCAL IMPACT: Funds for this project are currently available from the Mt. Vernon bonds. RECOMMENDATIONS: munity Development Commission 'adopt the attached Resolution. MP:sj:7-1S-02 Amapola Rico Taco COMMISSION MEETING AGENDA Meeting Date: 07/15/02 Agenda Item Number: ~ j d?' 1 _ 2 3 4 5 6 7 8 9 10 11 12 13 14 _ 15 16 17 18 19 20 21 22 23 24 25 26 27 _28 .~(Q)~V RESOLUTION NO: A RESOLUTIOl'i OF THE COMMUNITY DEVELOPMEl'iT COMi\IISSIO:\ OF THE CITY OF SAN BERNARDINO APPROVING A NEW JOBS REDEVELOPMENT GRANT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND ROSINA GALLARDO, DBA AMAPOLA RICO TACO AND AUTHORIZING THE EXECUTION OF THE GRANT AGREEMENT BY THE EXECUTIVE DIRECTOR ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO WHEREAS, Rosina Gallardo, a sole trader doing business as Amapola Rico Taco, (collectively, with any related entity, the "Grantee") is the owner of certain property, (the "Property") and the operation of a multi-location restaurant business, which is headquartered in the redevelopment project area described in the Redevelopment Plan for the Mount Vernon Corridor Redevelopment Project (the "Redevelopment Plan"); and WHEREAS, the Grantee has requested a new jobs redevelopment grant from the Redevelopment Agency of the City of San Bernardino (the "Agency") in connection with the expansion of the restaurant business operations conducted by the Grantee on the Property adjacent to an existing restaurant owned and operated by the Grantee at 1167 Mount V ernon Avenue in the City of San Bernardino (the "Economic Development Project"); and WHEREAS, the Economic Development Project is consistent with the goals of the Redevelopment Plan; and WHEREAS, the Economic Development Project will result in the elimination of blight conditions on the property owned by the Grantee and the creation of 15 New Jobs and the operation of a new central kitchen, packaging, distribution and warehouse and regional headquarters office for the Grantee's business; and WHEREAS, the Economic Development Project will assist the Agency in accomplishing its goal to reduce blight in the redevelopment project area described in the Redevelopment Plan, and creating new jobs for persons and households of low and moderate income, pursuant to the Community Redevelopment Law; and 1 Rstl 1/; S/j. 1 _ 2 3 4 S 6 7 8 9 10 11 12 13 14 _ lS 16 17 18 19 20 21 22 23 24 2S 26 27 _28 WHEREAS, Agency staff has prepared a 2002 Redevelopment New Jobs Grant Agreement (Amapola Rico Taco) (the "Grant Agreement"). NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DO HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. Pursuant to CEQA Regulations Section 15096, the Community Development Commission, as the governing board of the Agency, finds that a responsible agency under CEQA for the purpose of considering the potential impact on the environment associated with the redevelopment assistance provided to the Grantee under the terms of the Grant Agreement, and that no further environmental review of the Economic Development Project or the Grant Agreement by the Commission is necessary at this time in connection with its consideration of the approval of the Grant Agreement. The City of San Bernardino has, by separate action, previously approved improvement of the physical elements on the Property of the Economic Development Project, subject to a number of conditions and development impact mitigation measures, and the Grantee shall be responsible for complying with those conditions and measures. A copy of the Section 15332, 2002 CEQA determination of the Design Review Committee of the City of San Bernardino is on file with the Agency Secretary. Section 3. The Community Development Commission hereby approves the Grant Agreement, which is attached to this Resolution as Exhibit "A". The Community Development Commission hereby authorizes and directs the Executive Director to execute the Grant Agreement on behalf of the Agency. The Executive Director of the Agency is further authorized in consultation with legal counsel, to make minor corrections, additions, and clarifications to the Grant Agreement prior to its execution, provided said changes are not substantive in nature, and do not increase the monetary impact to the Agency under the terms of the Agreement as hereby approved. Section 4. Subject to the satisfaction by the Grantee of the conditions set forth in the Grant Agreement, the obligation of the Agency to make the grant debts to the Grantee under the terms of the 2 e 9 fill 10 fill 11 fill 12 fill 13 fill 14 e fill 15 fill 16 fill 17 18 fill 19 fill 20 fill 21 fill 22 fill 23 fill 24 fill 25 fill 26 fill 27 e 28 fill fill 1 2 3 4 5 6 7 8 Grant Agreement from the special source of funds described in the Grant Agreement shall be an "indebtedness of the Agency", as this term is defined in Health and Safety Code Section 33675. The Executive Director is hereby directed to cause the Statement of Indebtedness for the Mount Vernon Corridor Redevelopment Project to include the indebtedness of the Agency to the Granteee, as evidenced by the Grant Agreement to be filed with the Auditor-Controller of San Bernardino County in the manner authorized by law. fill 3 e 7 8 9 10 11 12 13 14 e 15 16 17 18 19 20 21 22 23 24 e 28 1 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A NEW JOBS REDEVELOPMENT GRANT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND ROSINA GALLARDO, DBA AMAPOLA RICO TACO AND AUTHORIZING THE EXECUTION OF THE GRANT AGREEMENT BY THE EXECUTIVE DIRECTOR ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 2 3 4 5 6 Section 5. This Resolution shall become effective immediately upon its adoption. I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community Development Commission of the City of San Bernardino at a meeting , 2002 by the following vote, thereof, held on day of to wit: COMMISSION MEMBERS: A YES ESTRADA LIEN MCGINNIS DERRY SUAREZ ANDERSON MC CAMMACK NAYS ABSENT ABSTAIN Secretary The foregoing resolution is hereby approved this ,2002. day of 25 Judith Valles, Chairperson Community Development Commission 26 Approved as 0 form and Legal Content: 27 By: 4 1 EXHIBIT "A" e2 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT 3 4 5 6 7 8 9 10 11 12 13 14 e15 16 17 18 19 20 21 22 23 24 25 26 27 e28 5 II e e e 1'1 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 2002 PROPERTY OWNER NEW JOBS REDEVELOP;\IENT GRANT AGREEMENT (AMAPOLA RICO TACO RESTAURANTS) THIS 2002 PROPERTY OWNER NEW JOBS REDEVELOPMENT GRANT AGREEMENT (the "Grant Agreement") is dated as of July _, 2002, by and between Rosina Gallardo, et aI., doing business as Amapola Rico Taco Restaurants (the "Grantee") and the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") and the Agreement is entered into with respect to the following facts: RECITALS The Grantee owns the land and improvements situated at 1167, 1181 & 1197 Mt. Vernon A venue, San Bernardino, California (the "Property"). The Property is located in the redevelopment project area described in the Redevelopment Plan for the Mount Vernon Corridor Redevelopment Project (the "Redevelopment Plan"). The general location of the Property is shown on a vicinity map and legal description attached hereto as Exhibit "A" and is incorporated herein by this reference; The Grantee has represented to the Agency that upon completion of the Economic Development Project described below, the Grantee shall use its best efforts to add or create at least fifteen (15) new full-time food processing and restaurant management service jobs or positions (the "New Jobs") at the Property (in addition to the total number of persons employed by the business entities related to the Grantee, including the existing restaurant business locations at: 1279 West Baseline & 596 North Mt. Vernon A venue, as of June 30, 2002) within three (3) years following the date of completion of the Economic Development Project at compensation levels of at least Ten Dollars ($10.00) per hour for the New Jobs, and that those New Jobs will continue in existence on the Property until the fifth (5'h) anniversary following the date of completion of the Economic Development Project; 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 the Redevelopment Plan and for the benefit of the redevelopment project area of the Mount Vernon Corridor Redevelopment Project and persons and households who reside in the redevelopment project area and surrounding neighborhood in the community as authorized under the Community Redevelopment Law. NOW THEREFORE IN CONSIDERATION OF THE MUTUAL PROMISES AND COVENANTS OF THE PARTIES, THE GRANTEE FOR ITSELF AND ITS SUCCESSORS AND 8B2002, 20214.1 1 e e e I ASSIGNS, AND THE AGENCY FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, AGREE: Section 1. 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 rehabilitation, improvement, and economic revitalization of the Property to be undertaken by the Grantee as necessary or appropriate to accommodate the operation on the Property of the central kitchen and prepared food product distribution, processing, packaging, warehousing and business administration office facilities. The Economic Development Project includes the installation of an approximately 5,485 square foot central kitchen and business administration center on the Property in support of the operation ofthe Grantee's restaurant businesses in the City and elsewhere in surrounding communities. A detailed description of the functional elements of the Economic Development Project (the "Scope of Economic Development") is attached as Exhibit "B;" and the words "Agency Grant" mean and refer to the New Jobs creation grant in the amount of Seventy Five Thousand Dollars ($75,000) which the Agency shall disburse to the Grantee in installments as set forth herein. the words "Grantee New Jobs Performance Guaranty" means and refers to the financial guaranty of the Grantee in favor of the Agency which provides for assurance that the Grantee shall exercise its best efforts to cause to be credited and thereafter maintained the New Jobs as provided in this Grant Agreement. The form of the Grantee New Jobs Performance Guaranty is attached to this Grant Agreement as Exhibit "D". the words "New Jobs" refer to an aggregate number of not less than fifteen (15) new employment positions to be created on the Property upon the completion 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 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 eligible to be included as holding a New Job provided that each of the following conditions are satisfied: 582002,20214.1 2 e (i) (ii) (iii) (iv) I' the employee is paid an hourly wage of at least Ten Dollars ($10.00) per hour; the employee is assigned to work (or is eligible to work) at least One Thousand Seven Hundred (1,700) hours per year; the employee is based at the Property; the employee initially begins to work as an employee of the Grantee on the Property on or after July 1, 2002; and (v) the total number of other hourly employees of the Grantee employed in San Bernardino on each July 1 of the term set forth in Section 5 (excluding employees who hold New Jobs on each July 1), is not less than 55. Section 2. Effective Date of Grant Agreement. This Grant Agreement shall take effect following its approval by the Agency and execution by the parties. The Agency shall make an initial disbursement of the Agency Grant the sum set forth in Section 4(a)(i) when each of the following conditions have been satisfied: (i) e (ii) the Executive Director has received the various documents called for in this Grant Agreement; 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, and the approval of such financial accounting information shall not be unreasonably delayed, conditioned or withheld. Section 3. The Economic Development Project Is Consistent With The Redevelopment Plan. The Agency finds and determines that the improvement of the Economic Development Project described in the Scope of Development, and thereafter, the operation of a central kitchen and restaurant business, packaging, warehousing distribution and administration restaurant business services facility on the Property for use and operation by the Grantee is consistent with the Redevelopment Plan. Section 4. Covenant of the Agency to Pay the Agency Grant to the Grantee. (a) Subject to the terms and conditions of this Grant Agreement the Agency hereby agrees to disbursement to the Grantee the sum of Seventy Five Thousand Dollars ($75,000) e 582002:20214.1 3 e e e III as set forth herein as a grant to the Grantee 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. The sole source of funds available to pay the Agency Grant to the Grantee shall be derived from bond funds of the Agency available for such purposes and from no other source of funds of the City or the Agency. The Agency Grant shall be disbursed by the Agency to the Grantee in two (2) installments: (i) installment number I in the amount of$50,000 shall be disbursed to the Grantee as provided in Section 4(b); and (ii) installment number 2 in the amount of $25,000 shall be disbursed to the Grantee as provided in Section 4( c). (b) The payment of the sum to the Grantee set forth in Section 4(a)(i), and the recordation of the Notice of Memorandum of Agreement shall be coordinated by an escrow holder who is mutually acceptable to the parties. The Agency shall pay for the reasonable costs of the escrow holder to perform the indicated services set forth in Section 4. The escrow holder shall deliver the sum of Fifty Thousand Dollars ($50,000.00) as set forth in Section 4(a)(i) to the order and instruction of the Grantee upon confirmation by the Executive Director of the following: (i) the Grantee has delivered an original executed copy in executable form of the Notice of Memorandum of Agreement; (ii) the Grantee has caused the Grantee New Jobs Performance Guaranty to be delivered to the Agency; (iii) the escrow holder has received in cash from the Agency, the sum of $50,000.00; (iv) the parties have each delivered to the escrow holder such supplemental written directions or payment instructions as consistent with this Grant Agreement; (v) the Grantee is not otherwise in default under this Grant Agreement. (c) The payment by the Agency of the second installment of the Agency Grant as provided in Section 4(a)(ii) shall be made by the Agency to the Grantee within thirty (30) days following receipt by the Agency of a written invoice of the Grantee which certifies as follows: (i) the Grantee has completed the installation of the Economic Development Project on the Property as evidenced by the issuance of a certificate of occupancy by the City of San Bernardino; (ii) the Grantee has created at least three (3) New Jobs on the Property as part 5B2002: 20214.1 4 e e e lp ofthe Economic Development Project; The Agency shall be under no obligation to disburse the second installment of the Agency Grant to the Grantee in the event that the Grantee may fail to deliver its written certification to the Executive Director under this Section 4( c) by a date not later than December 31, 2003. Section 5. Covenant of the Grantee to Maintain New Jobs on the Property. (a) Subject to the terms ofthis Grant Agreement, the Grantee hereby covenants and agrees to create and thereafter maintain the New Jobs on the Property as follows: (i) within twelve (12) months, following completion of the Economic Development Project at least an aggregate of six (6) New Job positions shall be created on the Property; and (ii) within twenty four (24) months following the completion of the Economic Development Project an aggregate of at least an aggregate of nine (9) New Job positions shall be created on the Property; and (iii) within thirty six (36) months following the completion of the Economic Development Project an aggregate of at least fifteen an aggregate of (15) New Job positions shall be created on the Property; and (iv) on each of the fourth (4th) and fifth (5th) anniversary dates following the completion of the Economic Development Project there shall be a total of at least fifteen (15) New Job positions on the Property. (b) Within sixty (60) days following the anniversary date of the completion of the Economic Development Project and thereafter on each of the next four (4) following anniversary dates, the Grantee shall file a written verification with the Executive Director in which the Grantee reports its compliance the New Jobs creation and/or maintenance covenant set forth in Section 5(a). Such report shall include a certification that each employee who is claimed by the Grantee as holding a New Job position during the preceding year shall 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 either of the dates set forth in Section 5(a)(iv) the verification of the Grantee indicates that there are fewer than Fifteen (15) New Jobs on the Property during the preceding year, then in such event the Grantee shall reimburse the Agency the following 5B2002:20214.1 5 e e e 1'1. sum: $2,500.00 for each New lob position less than a total of Fifteen (15) new lobs 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 lobs 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. 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 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 within twenty (20) years following the date of approval of this Grant Agreement by motion or resolution of the Agency, as applicable, there is an occurrence ofan adverse condition on any area ofthe 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 written 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 5B2002,20214.1 6 e e e III 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 \\Titten demand for payment by the Agency to the Grantee, the Agency shall have the right to enforce its lien in the manner as provided in Section 7( c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 7 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 as 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 Memorandum of Agreement 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 which may claim that a default has occurred shall give written notice of default to 582002:20214.1 7 e e e 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 of twenty (20) years from the date of approval of this Grant Agreement by motion or resolution of the Agency, as applicable; provided however, that upon satisfaction of the conditions of Section 5 of this 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 redevelopment project area of the Mount Vernon Corridor Redevelopment Project. Section 10. Termination of Grant Agreement. (a) The Grantee may terminate this Grant Agreement at its discretion for any reason before the close of the escrow set forth in Section 4 by serving written notice of termination of the Grant Agreement to the Agency which specifically refers to this Section lO(a) of the Agreement. Upon receipt by the Agency of such written notice of termination, the parties shall 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 specifically refers to this Section 10(b) of the Agreement, in the event that the Economic Development Project has not been commenced for any reason or the escrow set forth in Section 4 has not closed within one (1) year 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 shall be mutually released from any further obligation which arises under this Grant Agreement. 582002:20214.1 8 e e e II, Section 11. Representations and Warranties of the Grantee. The Grantee hereby makes the following 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: (I) to the actual and current knowledge of the Grantee, the Grantee is a duly organized and existing California sole trader. The Grantee has the legal right, power and authority to enter into this Grant Agreement, and the instruments and documents referenced herein 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 and current knowledge of the Grantee, this Grant Agreement is duly executed by the Grantee and shall be enforceable in accordance with its terms; (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) to the actual current knowledge of the Grantee, the Grantee owns the fee title interest in the Property, subject only to the matters of record disclosed to the Agency in the preliminary title report as delivered by the Grantee to the Agency concurrently with the Grantee's execution of this Grant Agreement; (5) to the actual and current knowledge of the Grantee, the Grantee has the funds available to it, when combined with the initial disbursement of the Agency Grant, to undertake the Economic Development Project and to create the New Jobs on the Property. (6) the Grantee shall use good faith efforts to him residents of the City of San Bernardino for available job openings and for the creation of New Jobs on the Property. Such good faith efforts representation and warranty of the Grantee shall remain 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 5B2002:20214.1 9 e e e 111--- (7) City; provided however, that nothing in this paragraph (6) 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; (7) the Grantee shall carry out the construction of all improvements on the Property as part ofthe Economic Development Project in conformity with all applicable laws, including all applicable state labor standards, wage and hourly working requirements and worker's compensation disability insurance coverage requirements; (8) 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 improvement or operation of the Economic Development Project. Section 12. Grantee Indemnity. The Grantee agrees to indemnifY and hold the Agency, the City and their elected officials, officers, boards, commissions, 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 ofthis 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 SB2002: 20214.1 10 e e e II! of this Grant Agreement. Section 14. 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 Grant Agreement. The parties shall execute and the Agency shall cause to be recorded a Notice of Memorandum of this Grant Agreement substantially in the form as attached hereto as Exhibit "C" and incorporated herein by this reference. Section 15. Attorneys' 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 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 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 of San Bernardino 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" Vicinity Map and Legal Description of the Property Exhibit "B" Scope of Development Exhibit "C" Notice of Memorandum of Grant Agreement Exhibit "0" Grantee New Jobs Performance Guaranty 582002:20214.1 11 e e e Iii THIS 2002 PROPERTY OWNER NEW JOBS REDEVELOPMENT GRANT AGREEMENT is dated as of July _, 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 Rosina Gallardo, doing business as Amapola Rico Taco Restaurants Date: By:4";f# ~~P"//> Title: o t....:>n e.-?- A. (, -dO ~Od- By: Title: AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Executive Director Approved As To Form By: ;\.~ . 5B2002: 20214.1 12 e e e I', THIS 2002 PROPERTY OWNER NEW JOBS REDEVELOPMENT GRANT AGREEMENT is dated as of July _, 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 Rosina Gallardo, doing business as Amapola Rico Taco Restaurants Date: BY:~;"d. ~~ Title: OuJ"e.-e ~-dO-Od- By: Title: AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Executive Director Approved As To Form BY:~~ . 582002:20214.1 12 e e e THIS 2002 PROPERTY OWNER NEW JOBS REDEVELOPMENT GRANT AGREEMENT is dated as of July _, 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 Rosina Gallardo, doing business as Amapola Rico Taco Restaurants Date: &-;;;>o-o~ By: ~.:- -~t1 .J.O Title: O(.,...>~ By: Title: AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Executive Director Approved As To Form By:1~ . 582002:20214.1 12 e e e EXHIBIT "A" Vicinity Map and Legal Description of the Property --l .... Ji,.>. r MT. VERNON -; :I:-- , S1-:: S:2'- .. 052' .>of.' . .' , , :::~' @ @ @ (0 1::::., .t\ '. rl {Jl (Jl llJ I\) I\) '" - 0 CD 'l ;.. ~. @ 01 Vl e 4 , tJl f\) @ 01 ~ @ I\) -------\------- - @ 01 {Jl _. -I> ... Site Address: APN: Lot Number: Legal Description: 1197 N MOUNT VERNON AVE 0139-071-01 1 HOCKADAY PARK TR NO 2349 LOT 1 Site Address: APN: Lot Number: Legal Description: 1167 N MOUNT VERNON AVE 0139-071-25 25 HOCKADAY PARK TRACT NO 2349 LOT 25 Site Address: APN: Lot Number: Legal Description: 1181 N MOUNT VERNON AVE 0139-071-26 24 TR NO 2349 HOCKADAY PARK LOT 24 Site Address: APN: Lot Number: Legal Description: 1279 W BASE LINE 0139-071-28 t AVENUE o :0 }:> :2; G) I"T1 SS,-"3f S'" S1- . 100 I @ @ (0 , , <:> ". , I\) I\) I\) ~ a> 01 -I> - --~ I\) I\) ~. (Jl .. ~----~--- ----~--- @ I\) Vl @ . I\) ----- I\) -I> - " HOCKADAY PARK TR NO 2349 LOTS 2 3 AND 4 SB2002: 20214.1 13 I L CD }:>, (J) I"T1 r - Z I"T1 e e e EXHIBIT "B" Scope of Economic Development Project SB2002:20214.1 14 e e e EXHIBIT "B" SCOPE OF ECONOMIC DEVELOPMENT PROJECT Amapola has acquired three blighted properties on a highly visible comer adjacent to their current location at 1279 West Baseline, on the southeast comer of Mt. Vernon Avenue and Baseline. The proposed developments located at 1167, 1181 and 1197 Mt. Vernon Avenue, San Bernardino, California includes the construction of a new 2-story, 5,485 square foot multi-tenant retail center in a Spanish colonial architectural style with pure ivory stucco surface and low- pitched tile roof. The new building will house the corporate headquarters for Amapola with a commissary kitchen that will serve the existing three locations as well as future planned restaurants. In addition, the facility will be used as a training center for its employees, provides the restaurant's capability to expand its catering services, and makes two retail spaces available for lease. The development will include on-site improvements such as new paved parking, concrete hardscape, and almost 16,000 square feet oflandscaped area with a minimum of twenty IS-gallon trees. This development will provide a much-needed facility to expand Amapola's current food operations. The Redevelopment Agency's New Jobs Grant will enable Amapola's to create additional employment opportunities for 12 tol5 employees over the next five years. In addition, the project will generate additional revenues for the City, eliminate a blighted highly visible comer, and may spark future development in the Mt. Vernon Corridor Project Area. e e e EXHIBIT "C" Notice of Memorandum of Grant Agreement SB2002:20214.1 15 e e e 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 of recordation of this Notice of Agreement Relating to Real Property, Rosina Gallardo, doing business as Amapola Rico Taco Restaurants (the "Owner") and the Redevelopment Agency ofthe City of San Bernardino, a body corporate and politic (the "Agency") have entered into an agreement entitled: "2002 Property Owner New Jobs Redevelopment Grant Agreement". This Notice of Agreement Relating to Real Property affects the property located at 1167, 1181 and 1197 Mt. Vernon Avenue, San Bernardino, California, and more particularly described in the legal description attached hereto as Exhibit "A". 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 Property Owner New Jobs Redevelopment Grant Agreement. S82002,20726.1 1 e e e This Notice of Agreement Relating to Real Property has been executed by the parties as set forth below. O\\lNER Rosina Gallardo, doing business as Amapola Rico Taco Restaurants AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Executive Director APPROVED AS TO FORM: Agency Special Counsel [NOTARY JURATS ATTACHED] SB2002:20726.1 2 e e e EXHIBIT "D" Grantee New Jobs Performance Guaranty SB2Q02:20214.1 16 e e e GUARANTY Obligor: Amapola Rico Taco Restaurants [ADDRESS] Obligee: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, California 9240 I Guarantor: Rosina Gallardo [ADDRESS] PAYMENT GUARANTY. This is a guaranty of payment of the obligation of Amapola Rico Taco Restaurants (the "Obligor") to reimburse the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the "Agency") certain amounts as set forth herein upon the failure of the Obligor to create at least fifteen (15) new full-time food processing and restaurant management service jobs or positions (the "New Jobs") at the property located at 1167, 1181 and 1197 Mt. Vernon Avenue, San Bernardino, California (the "Property") within three (3) years following the date of completion of the rehabilitation, improvement and economic revitalization of the Property (the "Economic Development Project") to be undertaken by the Obligor using grant monies received from the Agency pursuant to a 2002 Property Owner New Jobs Redevelopment Grant Agreement (Amapola Rico Taco Restaurants) (the "Agreement"). Pursuant to the Agreement, the Agency is providing to the Obligor a grant in the amount of Seventy Five Thousand Dollars ($75,000) (the "Agency Grant") and the Grantee has covenanted to create the New Jobs and thereafter maintain the New Jobs on the Property (the "New Jobs Covenant"). The New Jobs Covenant requires that: (i) within twelve (12) months following the completion of the Economic Development Project at least an aggregate of six (6) New Job positions shall be created on the Property; and (ii) within twenty four (24) months following the completion of the Economic Development Project an aggregate of at least an aggregate of nine (9) New Job positions shall be created on the Property; and (iii) within thirty six (36) months following the completion of the Economic Development Proj ect an aggregate of at least fifteen an aggregate of (15) New Job positions shall be created on the Property; and (iv) on each of the fourth (4th) and fifth (5th) anniversary dates following the completion of the Economic Development Project there shall be a total of at least fifteen (15) New Job positions on the Property. 5B2002:20646.1 I e e e 1 The Agreement provides that in the event that on either of the dates set forth in Section (iv) there are fewer than fifteen(l5) New Jobs on the Property, then in such event the Obligor shall reimburse the Agency Two Thousand Five Hundred Dollars ($2,500) for each New Job position less than a total of fifteen (15) New Jobs on the Property as of such date (the "Reimbursement Obligation"). GUARANTY. For good and valuable consideration, Rosina Gallardo (the "Guarantor") absolutely and unconditionally guarantees and promises to pay to the Agency or its order, on demand, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of the Obligor to the Agency on the terms and conditions set forth in this Guaranty. MAXIMUM LIABILITY. The maximum liability ofthe Guarantor under this Guaranty shall not exceed at anyone time the amount of the Indebtedness described herein. This limitation on liability is not a restriction on the amount of the Reimbursement Obligation of the Obligor to the Agency either in the aggregate or at anyone time. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes the Reimbursement Obligation and all collection costs and expenses relating to the Reimbursement Obligation or to any collateral for the Reimbursement Obligation. Collection costs and expenses include without limitation all of the Agency's attorneys' fees. DURATION OF GUARANTY. This Guaranty will take effect when received by the Agency without the necessity of any acceptance by the Agency, or any notice to Guarantor or to the Obligor, and will continue in full force until the Reimbursement Obligation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in full. Release of any other guarantor or termination of any other guaranty of the Reimbursement Obligation shall not affect the liability of Guarantor under this Guaranty. OBLIGATIONS OF MARRIED PERSONS. Any married person who signs this Guaranty hereby expressly agrees that recourse under this Guaranty may be had against both his or her separate property and community property. GUARANTOR'S AUTHORIZATION TO AGENCY. Guarantor authorizes the Agency, without notice or demand and without lessening Guarantor's liability under this Guaranty, from time to time: (A) to make one or more additional grants and/or secured or unsecured loans to the Obligor or otherwise to extend additional credit to the Obligor or (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Reimbursement Obligation or any part of the Reimbursement Obligation, including the imposition of interest charges on, and any increases and decreases in the rate of interest on, the Reimbursement Obligation; extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Reimbursement Obligation, and exchange, enforce, waive, subordinate, fall or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release, substitute, agree not to sue, or deal with anyone or more of the Obligor's sureties, endorsers, or other guarantors on any terms or in any manner the Agency may choose; (E) to determine how, when and what application S82002:20646.1 2 e e e of payments and credits shall be made on the Reimbursement Obligation; (F) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as the Agency in its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Reimbursement Obligation; and (H) to assign or transfer this Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Agency that (A) no representations or agreements or any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty is executed at the Obligor's request and not at the request of the Agency; (C) Guarantor has full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor; (E) Guarantor has not and will not, without the prior written consult of the Agency, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all of Guarantor's assets, or any interest therein; (F) upon the Agency's request, Guarantor will provide to the Agency financial and credit information in form acceptable to the Agency, and all such financial information which currently has been, and all future financial information which will be provided to the Agency is and will be true and correct in all material respects and fairly present Guarantor's financial condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (I) the Agency has made no representation to Guarantor as to the creditworthiness of the Obligor; and (j) Guarantor has established adequate means of obtaining from the Obligor on a continuing basis information regarding the Obligor's financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that, absent a request for information, the Agency shall have no obligation to disclose to Guarantor any information or documents acquired by Agency in the course of its relationship with the Agency. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require the Agency to (A) make any presentment, protest, demand, or notice of any kind, including notice of change or any terms of repayment of the Reimbursement Obligation, default by the Obligor or any other guarantor or surety, any action or nonaction taken by the Obligor, the Agency, or any other guarantor or surety of the Obligor, or the creation of new or additional Reimbursement Obligations; (B) proceed against any person, including the Obligor, before proceeding against Guarantor; (C) proceed against any collateral for the Reimbursement Obligation, including the Obligor's collateral, before proceeding against Guarantor; (D) apply any payments or proceeds received against the Reimbursement Obligation in any order; (E) give notice of the terms, time, and place of any sale of the collateral pursuant to the Uniform Commercial Code or any other law governing such sale; (F) disclose any information about the Reimbursement Obligation, the Obligor, the collateral, or any other guarantee or surety, or about any action or nonaction of the Agency, or (G) pursue any remedy or course of action in the Agency's power whatsoever. Guarantor also waives any and all rights or defenses arising by reason of (H) any disability or other defense of any other guarantor or surety of the Agency or any other person; (I) the cessation from SB2002:20646.1 3 e e e any cause whatsoever, other than payment in full, of the Reimbursement Obligation; (j) the application of proceeds of the Agency Grant by the Obligor for purposes other than the purposes understood and intended by Guarantor and the Agency (K) any act of omission or commission by the Agency which directly results in or contributes to the discharge of the Obligor or any other guarantor or surety, or the Reimbursement Obligation, or the loss or release of any collateral by operation oflaw or otherwise; (L) any statute oflimitations in any action under this Guaranty or on . the Reimbursement Obligation; or (M) any modification or change in terms of the Reimbursement Obligation, whatsoever, including without limitation, the renewal, extension, acceleration or other change in the time payment of the Reimbursement Obligation is due and any change in the interest rate. Guarantor waives all rights and any defenses arising out of an election of remedies by the Agency even though the election of remedies, such as a non-judicial foreclosure with respect to security for a guaranteed obligation, has destroyed Guarantor's rights of subrogation and reimbursement against the Obligor by operation of Section 580d of the California Code of Civil Procedure or otherwise. Guarantor waives all rights and defenses that Guarantor may have in the event that and by reason of the fact that the Obligor's performance obligation under the New Jobs Covenant is secured by real property. This means among other things: (I) Agency may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by the Obligor. (2) If the Agency forecloses on any real property collateral pledged by the Obligor: (a) the amount of the Obligor's obligation may be reduced only by the price for which the collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price and (b) the Agency may collect from Guarantor even if the Agency, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from the Obligor. This is an unconditional waiver of any rights and defenses Guarantor may have in the event that and by reason of the fact that the Obligor's performance obligation under the Agreement is secured by real property. These rights and defenses include, but are not limited to, any rights and defenses based upon Section 580a, 580b, 580d, or 726 of the Code of Civil Procedure. Guarantor understands and agrees that the foregoing waivers are waivers of substantive rights and defenses to which Guarantor might otherwise be entitled under state and federal law . The rights and defenses waived include, without limitation, those provided by California laws of suretyship and guaranty anti-deficiency laws, and the Uniform Commercial Code. Guarantor acknowledges that Guarantor has provided these waivers of rights and defenses with the intention that they be fully relied upon by the Agency. Until the entire Reimbursement Obligation is paid in full, Guarantor waives any right to enforce any remedy the Agency may have against the Obligor or any other guarantor, surety, or other person and, further, Guarantor waives any right to participate in any collateral for the Reimbursement Obligation now or hereafter held by the Agency. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable SB2002:20646.1 4 e e e law or public policy, such waiver shall be effective only to the extent permitted by law or public policy. SUBORDINATION TO THE OBLIGOR'S DEBT TO THE AGENCY OF ANY CLAIM OF GUARANTOR. Guarantor agrees that the indebtedness of the Obligor to the Agency, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acquire against the Obligor, whether or not the Obligor becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against the Obligor, upon any account whatsoever, to any claim that Agency may now or hereafter have against the Obligor. In the event of insolvency and consequent liquidation of the assets of the Obligor, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of the Obligor applicable to the payment of the claims of both the Agency and Guarantor shall be paid to the Agency and shall be first applied by the Agency to the Reimbursement Obligation of the Obligor to the Agency. Guarantor does hereby assign to the Agency all claims which it may have or acquire against the Obligor or against any assignee or trustee in bankruptcy of the Obligor; provided however, that such assignment shall be effective only for the purpose of assuring to the Agency full payment in legal tender of the Reimbursement Obligation. If the Agency so requests, any notes or credit agreements now or hereafter evidencing any debts or obligations of the Obligor to Guarantor shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to the Agency. Guarantor agrees, and the Agency is hereby authorized, in the name of Guarantor, from time to time to execute and file financing statements and continuation statements and to execute such other documents and to take such other actions as the Agency deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty, together with the Agreement and any Related Documents (as that term is defined below), constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand all of the Agency's costs and expenses, including the Agency's attorneys fees and Agency's legal expenses, incurred in connection with the enforcement ofthis Guaranty. The Agency may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include the Agency's attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the court. As used herein, the word "attorneys fees" 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 SB2002:20646.\ 5 e e e Office of the City Attorney of the City of San Bernardino in connection with any matters arising under this Guaranty. Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. Governing Law. This Guaranty will be governed by, construed and enforced in accordance with federal law and the laws ofthe State of California. This Guaranty has been accepted by the Agency in the State of California. Choice of Venue. If there is a lawsuit, Guarantor agrees upon the Agency's request to submit to the jurisdiction of the courts of San Bernardino County, State of California. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's intentions and parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds the Agency harmless from all losses, claims, damages, and costs (including the Agency's attorneys' fees) suffered or incurred by the Agency as a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. Interpretation. The words "Guarantor," "Obligor," and "Agency" include the heirs, successors, assigns, and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced, that fact by itself will not mean that the result of this Guaranty will not be valid or enforced. Therefore, a court will enforce the result of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. It is not necessary for the Agency to inquire into the powers of the Obligor or Guarantor or of the officers, directors, partners, managers, or other agents acting or purporting to act on behalf of the Obligor or of Guarantor, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Any notice required to be given under this Guaranty shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. Any party may change its address for notices under this Guaranty by giving written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Guarantor agrees to keep the Agency informed at all times of Guarantor's current address. Unless otherwise provided or required by law, if there is more than one Guarantor, any notice given by the Agency to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. The Agency shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed by the Agency. No delay or S82002:20646.1 6 e e e 1 omission on the part of the Agency in exercising any right shall operate as a waiver of such right or any other right. A waiver by the Agency of a provision of this Guaranty shall not prejudice or constitute a waiver of the Agency's right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by the Agency. nor any course of dealing between the Agency and Guarantor, shall constitute a waiver of any of the Agency's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of the Agency is required under this Guaranty, the granting of such consent by the Agency in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of the Agency. Successors and Assigns. Subject to any limitations stated in this Guaranty on transfer of Guarantor's interest, this Guaranty shall be binding upon and inure to the benefit of the parties, their successors and assigns. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Agency. The word "Agency" means the Redevelopment Agency of the City of San Bernardino, its successors and assigns. Agreement. The word "Agreement" means the 2002 Property Owner New Jobs Redevelopment Grant Agreement dated as of July _, 2002, by and between the Agency and the Obligor. Guarantor. The word "Guarantor" means Rosina Gallardo, an individual, and her heirs and aSSIgns. Guaranty. The word "Guaranty" means the guaranty from Guarantor to the Agency. Indebtedness. The word "Indebtedness" means the Reimbursement Obligation and all collection costs and expenses relating to the Reimbursement Obligation or to any collateral for the Reimbursement Obligation, as more particularly described in this Guaranty. Obligor. The word "Obligor" means Amapola Rico Taco Restaurants, a business. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Reimbursement Obligation. S82002:20646.1 7 e e e 11' GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND GUARANTOR AGREES TO ITS TERMS. THIS GUARANTY IS DATED AS OF JULY ,2002. GUARANTOR: Rosina Gallardo [NOTARY JURAT ATTACHED] 582002:20646.1 8 ~. . ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): '}- 1$-0;;L Item # Vote: Ayes 1-1 Nays~ (('~ Resolution # ~ DC.l;;)(n;) - ;;;S Abstain r~ Absent J;:..} Change to motion to amend original documents: - Reso. # On Attachments: - Contract term: - Note on Resolution of Attachment stored separately: ~ Direct City Clerk to (circle 1): PUBLISH, POST, RECORD W/COUNTY NullNoid After: By: Date Sent to Mayor: ')- / Co -0 :J- Date of Mayor's Signature: '1-I,-O?- Date of ClerklCDC Signature: '1- (l-<:J r Reso. Log Updated: V Seal Impressed: - See Attached: Date Returned: 11( 301 O;;l- See Attached: See Attached: Date Memo/Letter Sent for Signature: Eilf\ 60 Day Reminder Letter Sent on 30th day: 90 Day Reminder Letter Sent on 45th day: Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Otber 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): YesL No By~ Yes No~ By Yes No L By Yes No t/ By Yes NOZ B Copies Distributed to: City Attorney Parks & Rec. Code Compliance Dev. Services EDA ,/ Finance Police Public Services Water Others: MIS Notes: 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: (Y11 Date: n/?fJ) 0,9- , Revised 0 I 112/0 I