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HomeMy WebLinkAboutR43-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Consent and approval of the 2008 Real Property Acquisition Agreement for Disposition of Property at 247 West 3" Street to the State of California (Central City East Redevelopment Project Area) DATE: April 10,2008 Svnoesis of Previous Commission/Council/Committee Action{sl: On April 10, 2008, Redevelopment Committee Members Estrada, Johnson and Baxter unanimously voted to recommend that the Community Development Commission consider this action for approval. Recommended Motion(s): (Mavor and Common Council) A: Resolution of the Mayor and Common Council of the City of San Bernardino consenting to the disposition of property located at 247 West 3" Street, San Bernardino (APN: 0135-221-22) to the State of California pursuant to the 2008 Real Property Acquisition Agreement (Central City East Redevelopment Project Area) (Community Deve.Doment Commission) B: Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute the 2008 Real Property Acquisition Agreement by and between the Agency and the State of California (Central City n_____!'!!S_U~,,,_d_e-"_e!gE~,,l1l}~~oj,,ctAr,,a)____________________uun_______________________________n____________________________Un_____________________________ Contact Person(s): Project Area(s): Colin Strange Central City East Redevelopment Area Phone: (909) 663-1044 Ward(s): Supporting Data Attached: o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) FUNDING REQUIREMENTS: Amount: $ N/A Source: Budget Authority: N/A N/A "GNA'O" 2~ Emil A. Marzullo, Interim Executive Director Fiscal Review: z::..l--.L\. ~ CLA 0 -=-'-/7 ~I ;:7 Barbara Lindseth, Administrative Services Commission/Conncil Notes: P:\Agendas\Comm Dev CommissionlCDC 2008\04-21-08 COlin House -247 West 3rd Street Acquisition Agreement SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/21/2008 Agenda Item Number:R 43 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT CONSENT AND APPROVAL OF THE 2008 REAL PROPERTY ACQUISITION AGREEMENT FOR DISPOSITION OF PROPERTY AT 247 WEST 3RD STREET TO THE STATE OF CALIFORNIA (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) BACKGROUND: On January 4, 1996, the Redevelopment Agency of the City of San Bernardino ("Agency") entered into a Construction Project Management Agreement ("Agreement") with the State of California ("State") for the development of the new Caltrans office building and parking structure on the Agency owned property located at the northeast comer of 4th and "E" Streets in downtown San Bernardino. Pursuant to this Agreement, the State was not required to pay for the property at the time of construction, but instead was obligated to pay the Agency the amount of $6,516,856 for the property at some future undetermined date allocated between Caltrans in the amount of $3,835,356 and the State of California, Department of General Services ("DGS") in the amount of $2,681 ,500. In May of 2000, the Agency entered into an agreement for the purchase and sale of the property at 247 West 3'd Street, upon which the previous Caltrans facility (the "Property") had been located. The consideration for this 7.7 acre parcel was $2,700,000 in the form of a credit against the amount owed by Caltrans to the Agency. On December 3, 2001, the Mayor and Common Council of the City of San Bernardino ("Council") adopted Resolution No. 2001-367 which confirmed the intent of the Agency to donate this property, at the appropriate time, for the purpose of constructing a new Superior Court Facility. Since that time, 1/3 of the northern section of the Property has been improved as a parking lot to accommodate the needs of the temporary court annex at 303 West 3'd Street, and a portion of the unimproved surface as a transfer station for Strongbow Construction as they undertake the seismic retrofit of the 1926 historical courthouse on Arrowhead Avenue. CURRENT ISSUE: The Administrative Office of the Courts ("AOC") is the staff agency of the Judicial Council of the State of California responsible for the implementation of trial court facilities since the adoption of the Trial Court Facilities Act of 2002, which shifted governance of California courthouses from the counties to the State in 2004. Currently, San Bernardino's 34 court rooms are seriously inadequate, overcrowded, in poor physical condition and lacking security. In addition, the population of the County has nearly doubled since 1980 seriously increasing the load on the County's Superior Court system. Following years of intense lobbying by a number of high ranking San Bernardino officials, the AOC has received the State's approval to proceed with the construction of a new court facility on the Agency Property in downtown San Bernardino which will increase the total number of courtrooms in San Bernardino to 47 upon completion of the new facility. P:\Agendas\Comm Dev CommissionlCDC 2008\04-21-08 Court House -247 West 3rd Street Acquisition Agreement SR.drn: COMMISSION MEETING AGENDA Meeting Date: 0412112008 Agenda Item Nnmber: Economic Development Agency Staff Report Court House - 247 West 3r. Street Acquisition Agreement Page 2 The new court facility will: . Consist of36 courtrooms, Office of the Clerk of the Court, Executive Offices, security operations and holding areas. . Be 356,000 square foot in size and 12 stories high with 425 parking spaces. . Cost approximately $303 million to construct and equip. . Conform to Leadership in Energy and Environmental Design ("LEED") silver certification. The Agreement contains the following major points. . The Agency will dispose of the Property to the State for the sum of$1.00. . The Agency will relocate the sewer line that traverses the Property to the Property perimeter. . The State will be responsible for any environmental remediation to the Property. . The State will commence construction of the new facility on the Property as described above within 5 years . In the event that the State has not commenced construction on the Property within the time period specified, the Property shall revert back to the Agency for the sum of $1.00. Not only will this prestigious new building enable the Superior Court to improve the efficiency of its operations, offer new services, serve more court visitors and relieve the court backlog; it will serve as a vital component in the revitalization of downtown San Bernardino. This new facility is one of the cornerstones of the Urban Land Institute's recommendations, will attract literally thousands of additional visitors to downtown annually and will no doubt playa key role in attracting prestigious law firms to a downtown location in the future. ENVIRONMENTAL IMPACT: The recommendation contained in this Staff Report is for approval of the Agreement only. As such, it is exempt from the California Environmental Quality Act ("CEQA") pursuant to Chapter 2.6, Section 21080 of the Public Resources Code, CEQA Statutes, and Section 1506I(b)(3), Review For Exemptions, of the CEQA Guidelines. FISCAL IMPACT: While the Agency proposes selling the Property to the State for the sum of $1, the transaction in fact represents a land write down in the amount of $2,700,000. RECOMMENDATION: That the Mayor and Common Council and the Community Development Commission adopt the ~ Emil A. Marzullo, Interim Executive Director P\Agendas\Comm Dev Commission\CDC 2008\04-21-08 Coun House -247 West 3rd Street Acquisition Agreement SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/21/2008 Agenda Item Number: = "" .5 ~ ~ 0 "".:: ........ .- ... '" " .... 0 ~U .~ ;;., 0.... ... = ~ " _ 0 "U " .... 0 c..= "" .- <,;." = ... o .. U = ... . "" <'l~ ~ = " .. ell'" ~." "" '" o c.. o ... ~ 1 2 3 4 5 6 7 8 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CONSENTING TO THE DISPOSITION OF PROPERTY LOCATED AT 247 WEST 3RD STREET, SAN BERNARDINO (APN: 0135-221-22) TO THE STATE OF CALIFORNIA PURSUANT TO THE 2008 REAL PROPERTY ACQUISITION AGREEMENT (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) WHEREAS, the City of San Bernardino (the "City") is a municipal corporation and charter city, duly organized and existing pursuant to the provisions of the constitution of the State of 9 California; and 10 11 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a public body, corporate and politic existing under the laws of the State of California, Health and 12 Safety Code 33100, and is charged with the mission of redeveloping blighted and underutilized 13 land; and 14 15 WHEREAS, the current Superior Court is situated in a facility built in 1926 as a County Administrative Center and consists of 34 courtrooms which are seriously inadequate, overcrowded, 16 in poor physical condition and lacking security; and 17 18 WHEREAS, the Agency is the current owner of that certain real property consisting of approximately 7.7 acres (APN: 0135-221-22) located at 247 West 3rd Street which is bounded by 3rd 19 Street to the north, Arrowhead A venue to the west and 2nd Street to the south (the "Property") in the 20 Central City East Redevelopment Project Area ("Project Area"); and 21 22 WHEREAS, the Agency is entering into a 2008 Real Property Acquisition Agreement (the "Agreement") for the disposition of the Property with the State of California Administrative Office 23 of the Courts (the "AOC"), pursuant to which the Agency will sell the Property to the AOC for a 24 purchase price of $1.00; and 25 26 WHEREAS, the dollar amount that is to be received by the Agency is less than the fair market value of the Property by reason of the expectation of the parties that the AOC will construct 27 a new courthouse on the site; and 28 I P:\Agendas\Resolutions\Resoll.ltions\2008\04-21_08 Courthouse - 247 West 3rd Street MCC Reso.doc DLI-.)I- 08 R'-I~~ A 1 WHEREAS, the sales price represents the Agency's contribution to the courthouse project as 2 adopted by the Mayor and Common Council of the City of San Bernardino ("Council") on 3 December 2, 2001, which confirmed the intent of the Agency to donate the property at the 4 appropriate time for the purpose of providing for the construction of a new Superior Court Facility; 5 and 6 WHEREAS, the Agreement provides for the development of the Property to be developed 7 into a new Courthouse with 36 new courtrooms, Office ofthe Clerk of the Court, Executive Offices, 8 security operations and holding areas with 485 parking spaces totaling approximately 356,000 9 square feet with a 12 story building costing approximately $303 million (the "Project"); and 10 WHEREAS, the Agency has prepared and published a notice of joint public hearing in the 11 Sun newspaper on April 7 and 14, 2008, regarding the consideration and approval of the Agreement; 12 and 13 WHEREAS, pursuant to Health and Safety Code Section 33433(c), the Agency may transfer 14 the Property to the AOC subject to the Council and the Community Development Commission of 15 the City of San Bernardino ("Commission") adopting separate Resolutions authorizing the Agency 16 to transfer the Property in light of the findings set forth herein, pursuant to Health and Safety Code 17 Section 33433; and 18 WHEREAS, the Agency has prepared a Summary Report pursuant to Health and Safety 19 Code Section 33433 ("Report") that describes the salient points of the Agreement and identifies the 20 cost of the Agreement to the Agency; and 21 WHEREAS, the approval and execution of the Agreement by the Agency is exempt from 22 the California Environmental Quality Act ("CEQA") pursuant to Chapter 2.6, Section 21080 of the 23 Public Resources Code, CEQA Statutes, and Section 15061 (b)(3); and 24 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 25 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 26 FOLLOWS: 27 Section 1. On April 21, 2008, the Council conducted a full and fair joint public hearing with 28 the Commission, as the governing board of the Agency, relating to the disposition of the Property 2 P\Agendas\ResolutionsIResolutions\2008\04-21-08 Courthouse - 247 West 3rd Street Mec ResQ,doc 1 from the Agency to the AGC and the development thereof pursuant to the Agreement. The minutes 2 of the City Clerk for the April 21, 2008, meeting of the Council shall include a record of all 3 communication and testimony submitted to the Council by interested persons relating to the public 4 hearing and the approval of the Agreement. 5 Section 2. The Council hereby receives and approves the Report and the other written 6 materials submitted to the Council at the meeting at which this Resolution is adopted. The Report 7 contains information required under Health and Safety Code Section 33433. 8 Section 3. This Resolution is adopted in order to satisfy the provisions of Health and 9 Safety Code Section 33433(a)(1) and (b)(2) related to the disposition of the Property to the AGC in 10 accordance with the Agreement and the Council hereby approves the transfer of the Property to the 11 AGC pursuant to the Agreement for the consideration as provided therein. The Council hereby 12 finds and determines as follows: the Report contains the information described in Health and Safety 13 Code Section 33433(b )(2) wherein the Property is being sold to the AGC at the purchase price of 14 $1.00 for the development of a new Superior Courthouse Facility which consideration is less than 15 the fair market value determined at its highest and best use in accordance with the Redevelopment 16 Plan by reason of the expectation of the parties that the AGC will likely comply with the provisions 17 of the Agreement and construct the new Courthouse for the benefit of the entire County and that the 18 expectation by the Council that the Agency shall contribute to this public project per Resolution 19 No. 2001-367. 20 Section 4. This Resolution shall take effect upon its adoption and execution III the 21 manner as required by the City Charter. 22 III 23 III 24 III 25 III 26 III 27 III 28 III 3 P:\Agendas\Resolutions\Resolutions\2008\04-2I-08 Courthouse - 247 West 3rd Street Mec Reso,doc 1 2 3 4 5 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CONSENTING TO THE DISPOSITION OF PROPERTY LOCATED AT 247 WEST 3RD STREET, SAN BERNARDINO (APN: 0135-221-22) TO THE STATE OF CALIFORNIA PURSUANT TO THE 2008 REAL PROPERTY ACQUISITION AGREEMENT (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a 7 held on the day of 8 Council Members: Aves 9 ESTRADA 10 BAXTER 11 BRINKER 12 DERRY 13 KELLEY 14 JOHNSON 15 MC CAMMACK 16 17 18 meeting thereof, , 2008, by the foIIowing vote to wit: Navs Abstain Absent Rachel G. Clark, City Clerk day of ,2008. 19 The foregoing Resolution is hereby approved this 20 21 22 Patrick J. Morris, Mayor City of San Bernardino 23 Approved as to Form: 24 I: 25 By: 26 27 28 4 P:\Agendas\Resolutions\Resolutions\2008\04-21-08 Courthouse - 247 West 3rd Street Mec Reso.doc 1 2 3 4 5 6 7 8 9 10 11 12 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE 2008 REAL PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE AGENCY AND THE STATE OF CALIFORNIA (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a public body, corporate and politic existing under the laws of the State of California, Health and Safety Code 33100, and is charged with the mission of redeveloping blighted and underutilized land; and WHEREAS, the Agency is the current owner of that certain real property consisting of approximately 7.7 acres (APN: 0135-221-22) located at 247 West 3'd Street which is bounded by 3'd 13 Street to the north, Arrowhead Avenue to the west and 2nd Street to the south (the "Property") in the 14 Central City East Redevelopment Project Area ("Project Area"); and 15 WHEREAS, the current Superior Court is situated in a facility built in 1926 as a County 16 17 18 19 Administrative Center and consists of 34 courtrooms which are seriously inadequate, overcrowded, in poor physical condition and lacking security; and WHEREAS, the Agency is entering into a 2008 Real Property Acquisition Agreement (the "Agreement") for the disposition of the Property with the State of California Administrative Office of the Courts (the "AOC"), pursuant to which the Agency will sell the Property to the AOC for a purchase price of$1.00; and WHEREAS, the dollar amount that is to be received by the Agency is less than the fair market value of the Property by reason of the expectation of the parties that the AOC will construct 20 21 22 23 24 25 26 27 28 a new courthouse on the site; and WHEREAS, the sales price represents the Agency's contribution to the courthouse project as adopted by the Mayor and Common Council of the City of San Bernardino ("Council") on December 2, 2001, which confirmed the intent of the Agency to donate the property at the 1 P\Agendas\Resolutions\Resolutions\2008\04-21-08 COllnhouse - 247 West 3rd Street CDC Reso.doc , .(-: Ol/-,J/(l6 124313 1 appropriate time for the purpose of providing for the construction of a new Superior Court Facility; 2 and 3 WHEREAS, the Agreement provides for the development of the Property to be developed 4 into a new Courthouse with 36 new courtrooms, Office ofthe Clerk of the Court, Executive Offices, 5 security operations and holding areas with 485 parking spaces totaling approximately 356,000 6 square feet with a 12 story building and costing approximately $303 million (the "Project"); and 7 WHEREAS, the Agency has prepared and published a notice of joint public hearing in the 8 Sun newspaper on April 7 and 14,2008, regarding the consideration and approval of the Agreement; 9 and 10 WHEREAS, pursuant to Health and Safety Code Section 33433(c), the Agency may transfer 11 the Property to the AOC subject to the Council and the Community Development Commission of 12 the City of San Bernardino ("Commission") adopting separate Resolutions authorizing the Agency 13 to transfer the Property in light of the findings set forth herein, pursuant to Health and Safety Code 14 Section 33433; and 15 WHEREAS, the Agency has prepared a Summary Report pursuant to Health and Safety 16 Code Section 33433 ("Report") that describes the salient points of the Agreement and identifies the 17 cost of the Agreement to the Agency; and 18 WHEREAS, the approval and execution ofthe Agreement by the Agency is exempt from the 19 California Environmental Quality Act ("CEQA") pursuant to Chapter 2.6, Section 21080 of the 20 Public Resources Code, CEQA Statutes, and Section 15061 (b)(3); and 21 WHEREAS, it is appropriate for the Commission to take action with respect to the 22 disposition of the Property to the AOC by the Agency and to approve the Agreement as set forth in 23 this Resolution 24 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 25 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 26 FOLLOWS: 27 Section 1. On April 21, 2008, the Council conducted a full and fair joint public hearing 28 with the Commission, as the governing board of the Agency, relating to the disposition of the 2 P:\Agendas\Resolutions\Resolulions\2008\04-21-08 Courthouse - 247 West 3rd Street CDC Reso.doc 1 Property from the Agency to the AOC and the development thereof pursuant to the Agreement. The 2 minutes of the Agency Secretary for the April 21, 2008, meeting of the Commission shall include a 3 record of all communication and testimony submitted to the Commission by interested persons 4 relating to the public hearing and the approval of the Agreement. 5 Section 2. The Commission hereby receives and approves the Report and the other 6 written materials submitted to the Commission at the meeting at which this Resolution is adopted. 7 The Report contains information required under Health and Safety Code Section 33433. 8 Section 3. This Resolution is adopted in order to satisfy the provisions of Health and 9 Safety Code Section 33433(a)(I) and (b)(2) related to the disposition ofthe Property to the AOC in 10 accordance with the Agreement. The Commission hereby finds and determines as follows: the 11 Summary Report contains the information described in Health and Safety Code Section 12 33433(b)(2) wherein the Property is being sold to the AOC at the purchase price of $1.00 for the 13 development of a new Superior Court Facility which consideration is less than the fair market value 14 determined at its highest and best use in accordance with the Redevelopment Plan by reason of the 15 expectation of the parties that the AOC will likely comply with the provisions of the Agreement 16 and construct the new Courthouse for the benefit of the entire County and that the expectation by 17 the Council that the Agency shall contribute to this public project per Resolution No. 2001-367. 18 Section 4. The Commission hereby approves the Agreement and the Interim Executive 19 Director is hereby authorized and directed to execute the Agreement on behalf of the Agency 20 together with nonsubstantive and conforming changes as may be recommended by the Interim 21 Executive Director and the Agency Counsel. The Interim Executive Director is hereby authorized 22 to take all appropriate actions as set forth in the Agreement to implement the disposition and 23 redevelopment of the Property. 24 25 / / / 26 / / / 27 / / / 28 / / / Section 5. This Resolution shall become effective immediately upon its adoption. 3 P:\Agendas\Resolutions\Resolulions\2008\04-21-08 Courthouse - 247 West 3rd Street (,DC Reso,doc 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE 2008 REAL PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE AGENCY AND THE STATE OF CALIFORNIA (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) 2 3 4 S 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a , 2008, by the following vote to wit: meeting Nays Abstain Absent 19 Secretary 20 21 day of ,2008. The foregoing Resolution is hereby approved this 22 23 24 Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino 2S Approved as to Form: 26 ~ 27 By: ~ Agency Co nsel 28 4 P:\Al':endas\Resolutions\Resolutions\2008\04-21-08 Counhouse - 247 West 3rd Street CDC Reso,doc Judicial Council of California Administrative Office of the Courts Office of Court Construction and Management 455 Golden Gate Avenue, San Francisco, CA 94102-3688 Project: Location: Assessor Parcel No.: Title Order No.: New San Bernardino Courthouse City of San Bernardino, County of San Bernardino, State of California 135-221-22 71016451-X14; NBU 80702375-52 REAL PROPERTY ACQUISITION AGREEMENT This Real Property Acquisition Agreement ("Agreement") is entered into by the undersigned parties as of April 21" 2008 (the "Effective Date"), and in consideration of the mutual covenants and agreements contained herein, and for good and valuable consideration, the undersigned parties agree to the following terms and conditions: 1. PARTIES. 1.1. Seller. The "Seller" hereunder is the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic. 1.2. Buyer. The "Buyer" hereunder is THE STATE OF CALIFORNIA, on behalf of THE JUDICIAL COUNCIL OF CALIFORNIA, ADMINISTRATIVE OFFICE OF THE COURTS. 2. COMPOSITION OF AGREEMENT; DEFINED TERMS. 2.1. Composition of Agreement. This Agreement is comprised of, and includes, all of the following exhibits and/or addenda, each of which is incorporated into and forms a part of this Agreement for all purposes: Exhibit A - Map of Land Exhibit B - Legal Description of Land Exhibit C - Form of Grant Deed and Certificate of Acceptance Exhibit D - Location of Existing Sewer Line 2.2. Defined Terms. Capitalized terms used in this Agreement shall have the meanings ascribed to them herein. For ease of reference, the Glossary attached to this Agreement lists the capitalized terms and refers to the applicable section of this Agreement in which each capitalized term is first defined. 3. DESCRIPTION OF PROPERTY; STATE PROJECT. 3.1. Description of Real Property. Seller agrees to sell, convey, and deliver to Buyer, and Buyer agrees to acquire and accept from Seller, all of Seller's right, title, and interest in and to that parcel of property with the street address of 247 West Third Street, San Bernardino, California which is approximately 7.7 acres situated at the southeast corner of the intersection of 1 p:\Agendas\Agenda AlIachmenlslAgrmls-Amend 2008\04-21-08 Courthouse - Real Property Acquisition Agreement.doc 3'd Street and Arrowhead Avenue (the "Land"), as more particularly depicted in Exhibit A ("Map of Land") and described in Exhibit B ("Legal Description of Land") along with any improvements affixed to the Land which have not been removed pursuant to the terms hereof {"Improvements"), and all privileges, entitlements, easements, and appurtenances pertaining to the Land and the Improvements ("Appurtenances"). The Land, Improvements, if any, and Appurtenances are referred to herein collectively as the "Real Property", subject to the terms and conditions set forth in this Agreement. 3.2. Description of State Project. Buyer is acquiring the Real Property with the intention of designing and constructing certain court facilities and related improvements thereon, including, without limitation, a building with an area of approximately 356,390 gross square feet {"State Projecf'), for use by the Superior Court of California, County of San Bernardino (collectively "Court" or the "Courthouse") for judicial, court, administrative, office, and related purposes. The State Project shall consist of the construction and completion by the State, at the sole cost and expense of the State, of a multi-story building having approximately 356,390 gross square feet, in addition to a basement of approximately 57,000 gross square feet. The State Project will include up to thirty-six (36) courtrooms, court administrative offices, support space for court administrators, court clerk counters, security operations, building support space, secured parking, sallyport, and in-custody detainee facilities located on the basement level to be constructed by Buyer. The State Project shall also include public parking spaces in surface parking lots and may also include a separate parking structure. Buyer shall commence construction of the State Project within five (5) years or sixty (60) months) from the Close of Escrow ("Construction Commencement Date"). Buyer shall exercise its best efforts to promptly, diligently and in an expeditious manner after the Construction Commencement Date to complete the construction of the State Project and to have the State Project ready for occupancy. For purposes of this Agreement, "commence construction" means the Buyer's award of a contract to a contractor for any construction activity for the State Project, including, without limitation, grading, site work, foundation work, or construction of a building with respect to the State Project. In the event that Buyer has approved the preliminary plans for the State Project by the Construction Commencement Date and Buyer is using its best efforts to finalize the final plans and specifications for the State Project, Seller and Buyer shall negotiate in good faith to extend the Construction Commencement Date to a reasonable date that serves both the Seller's interest of not keeping the Real Property vacant and the Buyer's interest of completing the State Project. Subject to Section 10.2.6 of this Agreement, if Seller and Buyer, for any reason whatsoever, within ninety (90) days after the Construction Commencement Date have not agreed in writing to a date to extend the Construction Commencement Date, Buyer will have no further right to extend the Construction Commencement Date and Seller shall have the right, without limitation, to purchase the Real Property as provided for in Section 10.2.6. For purposes of sections 3.2, 10.2.5,10.2.6 and 10.6, Buyer includes, without limitation, the Judicial Council and the Administrative Office of the Courts. 4. PURCHASE PRICE. The "Purchase Price" of the Real Property is ONE AND NO/100 DOLLAR ($1.00). The parties acknowledge that the Purchase Price and the other mutual covenants and agreements contained herein are adequate and sufficient consideration in support of this Agreement. 5. CLOSING DATE. Subject to the terms and conditions set forth herein, the Parties shall consummate the Close of Escrow on or about July 1, 2009 ("Closing Date"). The Closing Date may be 2 p:\Agendas\Agenda AtlachmentslAgrmts-Amend 2008\04-21-08 Courthouse. Real Property Acquisition Agreement.doc extended, at Buyer's option by written notice to Seller, for a reasonable period of time if required to allow satisfaction of all necessary conditions and contingencies, subject to Buyer's further rights to terminate this Agreement if all such conditions have not then been satisfied. 6. BUYER CONTINGENCIES. Buyer shall not be obligated to consummate the Close of Escrow unless and until each and all of the obligations, conditions precedent, and contingencies set forth in sections 6.1 through 6.10 (each a "Buyer Contingency," and collectively "Buyer Contingencies") are performed and satisfied within the applicable time periods specified herein. The Buyer Contingencies are for the sole benefit of Buyer and may only be waived or deemed satisfied in writing at Buyer's election and in Buyer's sole and absolute discretion. 6.1. Due Diligence Inspections. 6.1.1. Preliminary Report. Within fifteen (15) days of the Effective Date, Chicago Title Company ("Title Company") shall deliver to Buyer a preliminary (title) report for the Real Property ("Title Report") issued by Title Company which is located at 700 South Flower Street, Los Angeles, CA, Attention: Mark Raskin, Phone: (213) 488-4383, Fax: (213) 629-3828 E-mail: mark.raskin@ctt.com. with copies of all underlying recorded instruments of record shown as exceptions and described on the Title Report ("Exception Documents"). 6.1.2. ALTAlACSM Survey. As soon as reasonably practicable following the Effective Date, Buyer shall have the right to obtain, at its sole cost and expense, a certified survey of the Real Property ("Survey") prepared by a licensed land surveyor in accordance with the 1999 Minimum Standard Detail Requirements for AL TAlACSM Land Title Surveys, as adopted by the American Land Title Association, American Congress on Surveying and Mapping, and the National Society of Professional Surveyors. 6.1.3. Other Due Diligence Inspections. As soon as reasonably practicable following the Effective Date, Buyer shall have the right, at its sole cost and expense, to conduct any and all other investigations, inspections, and examinations relating to the condition of the Real Property and the suitability of the Real Property for Buyer's purposes, including but not limited to, assessment of environmental, soil, seismic, surface, and subsurface conditions for the presence of Hazardous Substances (as defined below); and performing architectural, engineering, development, and/or economic feasibility studies (collectively, "Other Due Diligence Inspections"). Buyer shall conduct such Other Due Diligence Inspections in such manner as to minimize any interference with the Seller's current uses and occupancies of the Real Property. 6.1.4. Access to Real Property and Records. To facilitate Buyer's due diligence inspections of the Real Property, Seller shall cooperate in good faith to provide Buyer and its agents, representatives, and consultants with reasonable access to the Real Property, and to any records pertaining to the Real Property in Seller's possession or control. Buyer shall endeavor to notify Seller at least twenty-four (24) hours prior to entry upon the Real Property by Buyer or its agents, representatives, or consultants, or request for access to Seller's records. 6.1.5. Disapproved Conditions. Following Buyer's receipt and review of the Title Report, all of the Exception Documents, and the Survey, and Buyer's satisfactory completion of all Other Due Diligence Inspections, Buyer shall have the right, but not the obligation, to deliver a written notice to Seller ("Buyer's Inspection Notice") identifying Buyer's 3 P:lAgendaslAgenda Attact1menls\Agrmts-Amend 2008\04-21-08 Courthouse. Real Property AcquisWon Agreement.doc disapproval of (i) any title conditions reflected in the Title Report and/or Exception Documents; (ii) any title conditions or other matters shown on the Survey; and (iii) any other conditions or matters arising from the Other Due Diligence Inspections (collectively, "Disapproved Conditions"). 6.1.6. Seller's Cure Notice. By no later than 5:00 p.m. of the twentieth (20th) business day following Seller's receipt of Buyer's Inspection Notice, Seller shall deliver a written notice to Buyer ("Seller's Cure Notice"), identifying Seller's proposed cure, if any, of any of the Disapproved Conditions. 6.1.7. Due Diligence Deadline. By no later than 5:00 p.m. of the twentieth (20th) business day following Buyer's receipt of Seller's Cure Notice ("Due Diligence Deadline") Buyer shall have the right, but not the obligation, to deliver to Seller a written notice approving and/or waiving Buyer's Contingency under this section 6.1 ("Due Diligence Contingency Notice"). Prior to the expiration of the Due Diligence Deadline, Buyer and Seller shall cooperate in good faith to resolve any issues or disagreements relating to the Disapproved Conditions. If Buyer does not deliver the Due Diligence Contingency Notice on or prior to the Due Diligence Deadline, Buyer shall be deemed to have disapproved of the condition of the Real Property, and Buyer shall have the right to terminate this Agreement pursuant to section 8.2. 6.2. Owner's Policy. By no later than three (3) days prior to the Closing Date, Title Company shall be irrevocably and unconditionally committed to issue a CL T A Owner's Policy of Title Insurance - Extended Coverage ("Owner's Policy"), with liability coverage in the amount of the appraised value of the Real Property, and showing fee title to the Real Property vested in Buyer, free and clear of all liens and encumbrances, except for (i) any exceptions shown on the Title Report which Buyer has not specifically disapproved; and (ii) any Disapproved Conditions shown on the Title Report which Seller has expressly agreed to cure to the satisfaction of Buyer by a method other than removal (collectively, "Permitted Exceptions"). 6.3. Accuracy of Representations and Warranties. As of the Close of Escrow, all of Seller's representations and warranties set forth herein shall be true and accurate with the same force and effect as if remade by Seller in a separate certificate at the Close of Escrow. 6.4. No Breach or Event of Default. As of the Close of Escrow, no uncured Event of Default by Seller, nor any Breach by Seller which could become an Event of Default with the passage of time, shall exist. 6.5. Seller Deliveries. Buyer shall provide Seller, in writing, advance notice of the date when Buyer will submit its site acquisition application for the Real Property to the State Public Works Board for approval ("Submission Date"), and no later than one (1) business day prior to the Submission Date, Seller shall deliver, or cause to be delivered, to Escrow Holder the following ("Seller Deliveries"): 6.5.1. One (1) original of the Grant Deed, substantially in the same form as Exhibit C, duly executed by Seller and notarized. The executed Grant Deed will be needed by or before the Close of Escrow; 6.5.2. One (1) copy of Seller's resolution, or equivalent document, evidencing Seller's authorization to enter into, deliver, and perform under all of the documents and instruments necessary to effect the sale of the Real Property to Buyer in accordance with the 4 P:\Agendas\Agenda Atlachments\Agrmts-Amend 2008\04.21-08 Courthouse - Real Property Acquisition AgreemenLdoc terms of this Agreement. The resolution, or equivalent document, will be needed by or within seven (7) days of Seller's execution of this Agreement; and 6.5.3. Any other documents, instruments, or items reasonably requested and deemed necessary by Escrow Holder to consummate the Close of Escrow in accordance with the terms of this Agreement. 6.6. SPWB Approval and Acceptance. The State Public Works Board ("SPWB") shall have (i) authorized Buyer's acquisition of the Real Property pursuant to the terms of this Agreement and the Real Property Acquisition law set forth in Government Code sections 15850 to 15866; and (ii) executed the Certificate of Acceptance attached to the Grant Deed, or in such form and content as then required by applicable law. 6.7. Compliance with CEQA including Expiration of CEQA Statute of Limitation. Prior to approval of the SPWB for acquisition authorization, Buyer's compliance with the California Environmental Quality Act, as set forth at California Public Resources Code section 21000, et seq. ("CEQA") with respect to the State Project, including without limitation, the expiration of any applicable statute of limitation period under CEQA. 6.8. Buyer Contingencies Notice. By no later than three (3) days prior to the Closing Date, Buyer shall have delivered to Seller and Escrow Holder a written notice approving and/or waiving all of the Buyer Contingencies other than the Buyer Contingencies set forth in section 6.1, which shall be governed by the terms thereof ("Buyer Contingencies Notice"). 6.9. Sewer Line Relocation. Within one (1) year after the Effective Date and prior to the Close of Escrow, Seller shall relocate the sewer line ("Sewer Line Relocation") that is located below the surface of the land at the location set forth in Exhibit D, at the sole cost and expense of Seller, to a location that is mutually agreed to by and between Seller and Buyer, which approval shall not be unreasonably withheld, delayed or conditioned by either Seller or by Buyer. Prior to commencing the Sewer Line Relocation, Seller shall provide to Buyer a site plan ("Sewer Line Relocation Site Plan") which indicates the proposed new location of the sewer line, and Seller shall provide Buyer any updates, if necessary, in the event that the new location changes from the site plan which is provided to Buyer. Within fifteen (15) days from written notice from Seller to Buyer that the Sewer Line Relocation has been completed by Seller and from receipt by Buyer from Seller of the Sewer Line Relocation Site Plan, Buyer shall approve or disapprove, in writing, the Sewer Line Relocation Site Plan, which approval shall not be unreasonably withheld, delayed or conditioned by Buyer. If Buyer fails to accept or fails to disapprove the Sewer Line Relocation Site Plan within fifteen (15) days from the date that Buyer is in receipt of the written notice and in receipt of the Sewer Line Relocation Site Plan from Seller, the Sewer Line Relocation and the Sewer Line Relocation Site Plan shall be deemed and construed as having been accepted by Buyer. If Buyer disapproves the Sewer Line Relocation and the Sewer Line Relocation Site Plan within fifteen (15) days from receipt thereof, Buyer shall specify, in detail, the reasons for the disapproval ("Buyer Sewer Line Disapproval Notice"). Seller will then attempt to either correct and remedy, at the sole cost and expense of Seller, the deficiencies listed in the Buyer Sewer Line Disapproval Notice, or elect not to correct and remedy the deficiencies listed by Seller in the Buyer Sewer Line Disapproval Notice. If Seller elects to correct and remedy the deficiencies listed in the Buyer Sewer Line Disapproval Notice, Seller will notify Buyer, in writing, when Seller has completed the revised Sewer Line Relocation and the revised Sewer Line Relocation Site Plan. Within fifteen (15) days from the date that Buyer is in receipt of the written notice from Seller that the revised Sewer Line Relocation and the revised Sewer Line Relocation Site Plan have been completed by Seller, 5 P:\Agendas\Agenda Attachments\Agrmls-Amend 2008\04-21-08 Courthouse. Real Property Acquisition AgreemenLdoc Buyer shall either accept or disapprove the revised Sewer Line Relocation and the revised Sewer Line Relocation Site Plan within fifteen (15) days from its receipt thereof. If Buyer fails to accept or disapprove the revised Sewer Line Relocation and the revised Sewer Line Relocation Site Plan within fifteen (15) days from the date that Buyer is in receipt of written notice from Seller and in receipt of the revised Sewer Line Relocation Site Plan, the revised Sewer Line Relocation and the revised Sewer Line Relocation Site Plan shall be deemed and construed as having been accepted by Buyer. Once again, Buyer shall accept and approve the revised Sewer Line Relocation and the revised Sewer Line Relocation Site Plan prepared by Seller and such approval shall not be unreasonably withheld, delayed or conditioned by Buyer. In the event that Seller fails to complete the Sewer Line Relocation and the Sewer Line Relocation Site Plan, and/or any revisions thereto, in accordance with this section, Buyer may waive, in its sole discretion, the condition set forth in this section, and in the event that Buyer waives this condition, Seller agrees to (1) cooperate with Buyer's relocation of the sewer line to a location along the perimeter of the Land or on the Land; and (2) reimburse Buyer within ninety (90) days after receipt by Seller of a correct invoice by Buyer for 115% of the actual costs incurred by Buyer with respect to the relocation of the sewer line. 6.10. Removal Of Parking Lot Improvements By The County of San Bernardino. The County of San Bernardino ("County") must acknowledge, in writing ("County Consent Letter"), to Buyer that pursuant to the Vehicle Parking License Agreement (247 West 3rd Street), dated as of June 20, 2006, by and between Seller, as licensor, and the County, as licensee (the "County Parking Agreement") the County will remove the Parking Lot Improvements (as defined in the County Parking Agreement) from the Real Property by the expiration date of the County Parking Agreement or upon not less than sixty (60) days' prior written notice during the term of the County Parking Agreement from Seller, or from Buyer, as successor-in-interest to the fee ownership of Seller in and to the Real Property, at the sole cost and expense of the County, in accordance with and pursuant to the County Parking Agreement. 7. SELLER CONTINGENCIES. Seller shall not be obligated to consummate the Close of Escrow unless and until each and all of the obligations, conditions precedent, and contingencies set forth in sections 7.1 through 7.7 (each a "Seller Contingency," and collectively "Seller Contingencies") are performed within the time periods specified herein. The Seller Contingencies are for the sole benefit of Seller and may only be waived or deemed satisfied in writing at Seller's election and in Seller's sole and absolute discretion. 7.1. Due Diligence Contingency Notice. Buyer shall have timely delivered to Seller and Escrow Holder the Due Diligence Contingency Notice in accordance with section 6.1.7 above. 7.2. Buyer Contingencies Notice. Buyer shall have timely delivered to Seller and Escrow Holder the Buyer Contingencies Notice in accordance with section 6.8 above. 7.3. Accuracy of Representations and Warranties. As of the Close of Escrow, all of Buyer's representations and warranties set forth herein shall be true and accurate with the same force and effect as if remade by Seller in a separate certificate at the Close of Escrow. 7.4. No Breach or Event of Default. As of the Close of Escrow, no uncured Event of Default by Buyer, nor any Breach by Buyer which could become an Event of Default with the passage of time, shall exist. 6 P:\AgendaslAgenda AUachrnents\Agrmts-Amend 2008\04-21-08 Courthouse - Real Property Acquisition Agreemenl.doc 7.5. Buyer Deliveries. At least three (3) business days prior to the Closing Date, Buyer shall have delivered to Escrow Holder the Purchase Price, along with all other documents, instruments, or items reasonably requested and deemed necessary by Escrow Holder to consummate the Close of Escrow in accordance with the terms of this Agreement ("Buyer Deliveries"). 7.6. Approval by Buyer of Sewer Line Relocation. Buyer must have approved the Sewer Line Relocation, or the Sewer Line Relocation must have been deemed approved by Buyer, as provided for and in accordance with Section 6.9 of this Agreement. 7.7 County Consent Letter. Seller must obtain the County Consent Letter, in a form acceptable to Buyer, and provide that County Consent Letter to the Buyer on or before the Close of Escrow. 8. EVENT OF DEFAULT; TERMINATION; REMEDIES. 8.1. Termination for Event of Default. If Buyer or Seller breaches, defaults, or fails to perform any obligation, covenant, condition precedent, or contingency to be observed or performed by such party, including the failure or unsatisfactory completion of any Buyer Contingency, or Seller Contingency, as applicable (except for any of the Buyer Contingencies in sections 6.1, 6.2, 6.6, 6.7, 6.8, 6.9 and 6.10) ("Breach"), the party who is claiming that a Breach has occurred ("Non-Defaulting Party") shall provide written notice (the "Default Notice") to the other party ("Defaulting Party") identifying the Breach and a description of the facts and circumstances relating to such Breach. Upon receipt of the Default Notice, the Defaulting Party shall have ten (10) days, or less if the breach or default occurs within ten (10) days of the Closing Date, to cure the Breach described in the Default Notice and to provide evidence of such cure to the Non-Defaulting Party. If the Defaulting Party does not provide evidence of the cure to the Non-Defaulting Party within the ten (10) day, or shorter, time period, as applicable, then the Defaulting Party shall be deemed to have committed an "Event of Default" hereunder, and the Non-Defaulting Party shall have the right, but not the obligation, to terminate this Agreement and cancel Escrow pursuant to the terms hereof. Upon the occurrence of an Event of Default, and provided that the Non-Defaulting Party has not also committed an Event of Default, the Non- Defaulting Party shall have the right, but not the obligation, to terminate this Agreement and cancel the Escrow by delivering written notice of termination and cancellation instructions to the Defaulting Party and Escrow Holder. If the Non-Defaulting Party exercises such right, this Agreement shall terminate, the Escrow shall be cancelled, and the Non-Defaulting Party shall have the right to pursue any and all remedies available at law or in equity. 8.2. No-Fault Termination. If (i) any of the Buyer Contingencies set forth in sections 6.1,6.2,6.6,6.7,6.8 and 6.10 are not satisfied within the time periods set forth therein; or (ii) Buyer elects to terminate this Agreement pursuant to sections 12 or 13, as applicable, Buyer's sole remedy shall be to terminate this Agreement and cancel the Escrow by delivering written notice of termination and cancellation instructions to Seller and Escrow Holder. In the event of such termination and cancellation by Buyer, this Agreement shall terminate, the Escrow shall be cancelled, and the parties hereto shall have no further rights, obligations, or liabilities hereunder, except for any obligations that expressly survive such termination and cancellation pursuant to the terms herein. 8.3. Payment of Costs Upon Termination. Upon termination of this Agreement and cancellation of Escrow pursuant to section 8.1, the Defaulting Party shall pay any and all of Escrow Holder's cancellation fees and costs. Upon termination of this Agreement and 7 p:\Agendas\Agenda AuachmentslAgrmts-Amend 2008\04-21-08 Courthouse. Real Property Acquisition Agreement.doc cancellation of Escrow pursuant to section 8.2, Buyer and Seller shall equally share Escrow Holder's cancellation fees and costs. The obligations of the parties under this section 8.3 shall survive the termination of this Agreement and cancellation of Escrow. 8.4. Return of Sums and Documents. Upon termination of this Agreement and cancellation of Escrow pursuant to the terms hereof, Escrow Holder shall return all sums and/or documents deposited in Escrow to the parties who respectively deposited the same. The parties shall reasonably cooperate to execute any additional cancellation instructions required of Escrow Holder to effect the cancellation of Escrow pursuant to this section 8. 8.5. Rights and Remedies Cumulative. The rights and remedies of the parties in connection with this Agreement are cumulative, and the exercise by a party of one or more of its rights or remedies shall not preclude the exercise by it, at the same time or at a different time, of any other rights or remedies for the same Event of Default or other Event of Default. In addition to the rights and remedies specified herein, the parties shall have the right to pursue any and all other rights or remedies available at law or in equity, including, but not limited to, specific performance, declaratory relief, and/or damages. 9. ESCROW; CLOSING COSTS; TAXES. 9.1. Opening of Escrow. As soon as reasonably practicable following the full execution of this Agreement and SPWB site acquisition approval, the parties shall cooperate in good faith to open escrow for the transaction contemplated hereunder ("Escrow") by depositing with Chicago Title Company, 700 South Flower Street, Los Angeles, CA, Attention: Mark Raskin, Phone: (213) 488-4383, Fax: (213) 629-3828 E-mail: mark.raskin@ctt.com ("Escrow Holder"), a copy of this Agreement fully executed by the parties. This Agreement shall constitute joint instructions to Escrow Holder; provided, however, that Buyer and Seller shall execute such additional escrow instructions as may be reasonably requested by Escrow Holder so long as such additional instructions do not conflict with this Agreement. Escrow shall not be deemed "opened" until Escrow Holder confirms receipt of a fully executed copy of this Agreement. 9.2. Close of Escrow. Provided that all of the Buyer Contingencies and Seller Contingencies have been satisfied and/or waived by the respective parties, the parties shall proceed to "close" Escrow as follows ("Close of Escrow"): 9.2.1. Seller's Authorization. Seller shall authorize and instruct Escrow Holder to cause the Grant Deed, substantially in the same form as Exhibit C, to be recorded in the Official Records of San Bernardino County, California, subject to any instructions and conditions of Seller which do not conflict with the terms of this Agreement. 9.2.2. Buyer's Authorization. Buyer shall authorize and instruct Escrow Holder to release the Purchase Price to Seller subject to any instructions and conditions of Buyer which do not conflict with the terms of this Agreement. 9.2.3. Disbursement and Recordation. The Close of Escrow shall not be deemed consummated or "closed" unless and until the following have occurred: 9.2.3.1. Owner's Policy. Escrow Holder has confirmed that Title Company is irrevocably and unconditionally committed to issue the Owner's Policy, with liability coverage in the amount of the appraised value of the Real Property on the Close of Escrow, and showing fee title to the Real Property vested in Buyer, free and clear of all liens and encumbrances, except for the Permitted Exceptions; 8 p:\Agendas\Agenda AlIachments\Agrmts-Amend 2008\04-21-08 Courthouse - Real Property Acquisition AgreemenLdoc 9.2.3.2. Recordation of Grant Deed. Escrow Holder has confirmed that Seller's conditions to the recordation of the Grant Deed have been satisfied, and that the Grant Deed has been recorded in the Official Records of San Bernardino County, California; and 9.2.3.3. Disbursement of Purchase Price. Escrow Holder has confirmed that Buyer's conditions to the disbursement of the Purchase Price have been satisfied, and that the Purchase Price, less Seller's share of Closing Costs, has been disbursed to, and received by, Seller in accordance with Seller's instructions. 9.3. Closing Costs. At the Close of Escrow, the costs and fees associated therewith ("Closing Costs") shall be allocated as follows: (i) Buyer shall pay one hundred percent (100%) of all Escrow Holder's charges and fees, and for all overnight deliveries requested by Buyer or by Escrow Holder; (ii) Buyer shall pay the premium for the CL T A coverage portion of the Owner's Policy and any title endorsements approved by Seller to cure any Disapproved Exceptions; (Hi) if Buyer obtains an AL T A --Extended Coverage policy, Buyer shall pay the cost of the premium for the AL T A - Extended Coverage portion of the Owner's Policy. The parties acknowledge that Buyer, as a governmental entity, is exempt from the payment of documentary transfer taxes and recording fees. Notwithstanding the foregoing, in accordance with the standard practice and policy of the State of California, Buyer shall not be obligated to pay for Buyer's share of the Closing Costs unless and until Buyer receives an acceptable Owner's Policy issued to Buyer, along with an invoice itemizing Buyer's share of Closing Costs; (iv) Seller shall pay for all overnight deliveries requested by Seller. 10. REPRESENTATIONS, WARRANTIES, AND COVENANTS. 10.1. Seller's Representations and Warranties. Seller hereby makes the following representations and warranties to Buyer, all of which shall be true and accurate as of the execution of this Agreement and as of the Close of Escrow: 10.1.1. Seller is the sole owner of fee simple title to the Real Property, and Seller's conveyance and delivery of fee simple title to Buyer at the Close of Escrow shall be free of any and all liens or encumbrances, except for the Permitted Exceptions. 10.1.2. Seller is duly organized, validly existing, and in good standing under the laws of the State of California. 10.1.3. Seller's execution, delivery, or performance of this Agreement (including any related documents to be executed and delivered by Seller at the Close of Escrow): 10.1.3.1. Is duly authorized and approved such that this Agreement and related documents will constitute legal, valid, and binding obligations of Seller enforceable against Seller in accordance with their respective terms (except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, moratorium, and other principles relating to or limiting the right of contracting parties generally); 10.1.3.2. To the knowledge of Seller, this Agreement does not and will not violate any provisions of any agreement which is binding upon Seller or any of Seller's assets; 9 p:\Agendas\Agenda Altachments\Agrmts-Amend 2008\04.21-08 Courthouse - Real Property AcquisWon Agreement.doc 10.1.3.3. Except for the approval by the governing body having jurisdiction over Seller and the approval by the Mayor and by the Common Council for the City of San Bernardino, this Agreement does not require any authorization, consent, approval, or other action of or filing or registration with any other governmental agency, and except as expressly provided herein; and 10.1.3.4. Is not prohibited by any law, ordinance, or regulation. 10.1.4. To the knowledge of Seller: 10.1.4.1. There are no suits, actions, arbitrations, attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganizations, or other legal proceedings or inquiries pending or threatened against the Real Property or Seller which could adversely affect the value of the Real Property, Seller's interest therein, Seller's ability to perform its obligations hereunder, or otherwise impose any liability upon any owner of the Real Property; 10.1.4.2. There are no uncorrected violations of any statutes, ordinances, regulations, or administrative or judicial orders or holdings which could adversely affect the Real Property, nor has Seller received any written notice of said violations from any governmental or quasi-governmental authority; 10.1.4.3. No Hazardous Substances were released in, on, or under the Real Property in violation of any Environmental Laws during the time that Seller has owned the Real Property; and 10.1.4.4. Except for any mailers of record, there are no other leases, rental agreements, or maintenance agreements with respect to the Real Property with the exception of the following agreements: (i) the County Parking Agreement; (ii) Temporary Vehicle Parking License Agreement (2nd Street and Arrowhead Avenue Parking Lot - APN: 0135-221-22, dated as of October 16, 2007, by and between Seller, as licensor, and the Southern California Gas Co., a California corporation, as licensee ("Gas Company Parking Agreement"); (iii) Redevelopment Agency Of The City of San Bernardino Lease, dated as of January 16, 2008, by and between Seller, as lessor, and Stronghold Engineering, Inc., a California corporation, as lessee, in connection with and relating to the lease by Seller to Stronghold Engineering, Inc. of the Site (as defined therein) ("Stronghold Engineering Parking Agreement"); and (iv) License Agreement Permitting Limited Entry For Investigation of Environmental, Soils, Geotechnical and Other Conditions, dated as of February 4, 2008, by and between Seller, as licensor, and Buyer, as licensee. 10.1.5. To the knowledge of Seller, Seller has not received any written notice of any pending widening, modification, or realignment of any street or highway contiguous to the Real Property or any existing or proposed eminent domain proceeding that would result in a taking of all or any part of the Real Property. 10.1.6. Seller has not granted any preemptive or reversionary rights with respect to the Real Property, nor has Seller entered into any other agreements for the sale, lease, use, or occupancy of any portion of the Real Property by any third parties, which would otherwise impose an obligation upon Buyer or affect the marketability of title to the Real Property (except as provided for in Section 10.1.4.4 of this Agreement). 10 P:\Agendas\Agenda Attachments\Agrmls-Amend 2008\04.21-08 Courthouse - Real Property AcquisiUon Agreement.doc 10.1.7. To the knowledge of Seller, and except as provided for in Schedule B, Title Exception 4 of the preliminary report, dated August 30, 2007, by Orange Coast Title Company, as title company, in favor of Seller, in connection with the effect of a deed recorded on April 2, 1990, in the Official Records of San Bernardino County, State of California, in Book 285 Pages 121 of Deeds, there are no encroachments of any improvements onto the Real Property, nor do any of the improvements on the Real Property encroach onto any neighboring land owned by a third party. 10.1.8. There are no actual or pending public improvements on the Real Property which would or could result in the imposition of any liens thereon, including, but not limited to, any public assessments or mechanics' liens. 10.1.9. Seller has neither engaged nor owes a commission to any broker or finder in connection with the sale contemplated by this Agreement. 10.1.10. No representation, warranty, or statement of Seller in this Agreement, or in any document, certificate, or schedule furnished or to be furnished to Buyer pursuant to this Agreement, contains any untrue statement of a material fact, or omits to state any material fact needed to ensure the accuracy of the representations, warranties, or statements contained therein. 10.2. Buyer's Representations and Warranties. Buyer hereby makes the following representations and warranties to Seller, all of which shall be true and accurate as of the execution of this Agreement and as of the Close of Escrow: 10.2.1. The Administrative Office of the Courts is the staff agency to the Judicial Council of California, an entity established by the Constitution of the State, validly existing under the laws of the State. 10.2.2. Buyer's execution, delivery, or performance of this Agreement (including any related documents to be executed and delivered by Buyer at the Close of Escrow): 10.2.2.1. Is duly authorized and approved such that this Agreement and related documents will constitute legal, valid, and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms (except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, moratorium, and other principles relating to or limiting the right of contracting parties generally); 10.2.2.2. Does not and will not violate any provisions of any agreement which is binding upon Buyer or any of Buyer's assets; 10.2.2.3. Does not require any authorization, consent, approval, or other action of, or filing or registration with, any other governmental agency, except as expressly provided herein; and 10.2.2.4. Is not prohibited by any law, ordinance, or regulation. 10.2.3. Buyer has neither engaged nor owes a commission to any broker or finder in connection with the sale contemplated by this Agreement. 11 p:\Agendas\Agenda Attactunents\Agrmls-Amend 2008\04-21-08 Courthouse - Real Property Acquisition Agreement.doc 10.2.4. No representation, warranty or statement of Buyer in this Agreement, or in any document, certificate, or schedule furnished or to be furnished to Seller pursuant to this Agreement, contains any untrue statement of a material fact or omits to state any material fact needed to ensure the accuracy of the representations, warranties, or statements contained therein. 10.2.5. Buyer represents, warrants and covenants to Seller that: (i) Buyer, at its sole cost and expense with the exception of the Sewer Line Relocation, will develop, construct and complete the State Project in accordance with all applicable federal, state, municipal and/or local laws, statutes, codes, ordinances and/or regulations; and (ii) subject to Section 3.2 and to Section 10.2.6 of this Agreement, Buyer will commence construction of the State Project no later than the Construction Commencement Date. In the event that Buyer has approved the preliminary plans for the State Project by the Construction Commencement Date and Buyer is using its best efforts to finalize the final plans and specifications for the State Project, Seller and Buyer shall negotiate in good faith to extend the Construction Commencement Date to a reasonable date that serves both the Seller's interest of not keeping the Real Properly vacant and the Buyer's interest of completing the State Project. Subject to Section 10.2.6 of this Agreement, if Seller and Buyer, for any reason whatsoever, within ninety (90) days after the Construction Commencement Date have not agreed in writing to a date to extend the Construction Commencement Date, Buyer will have no further right to extend the Construction Commencement Date and Seller shall have the right, without limitation, to purchase the Real Properly as provided for in Section 10.2.6. 10.2.6. In the event Buyer fails to commence construction of the State Project by the Construction Commencement Date, as may be extended by Buyer and Seller, in writing, pursuant to Section 3.2 and to Section 10.2.5(ii) of this Agreement, upon ninety (90) days written notice from Seller to Buyer, Seller may elect to repurchase the Real Property from Buyer, and if Seller elects in such written notice to repurchase the Real Property (the "Seller's Repurchase Notice"), Buyer shall convey to Seller, the Real Property pursuant to the following: (1) subject to the rules, regulations, procedures and policies of the SPWB and any applicable law or regulation governing Buyer (collectively, "SPWB Policies"), within one hundred twenty (120) days from receipt by Buyer of the Seller's Repurchase Notice, Buyer, as seller, and Seller, as buyer, shall execute, deliver and enter into a real properly acquisition agreement having terms, covenants and conditions similar to this Agreement except, without limitation, that Buyer as seller, will sell to Seller, as buyer, the Real Properly (the "Repurchase Agreement"); (2) within one hundred twenty (120) days from the receipt by Buyer of the Seller's Repurchase Notice, Seller and Buyer shall deposit the Repurchase Agreement with the Escrow Holder and, for purposes of the Repurchase Agreement, escrow shall open upon the Escrow Holder's receipt of the Repurchase Agreement, as mutually executed by Buyer, as seller, and Seller, as buyer; (3) pursuant to the Repurchase Agreement and subject to SPWB Policies, escrow under the Repurchase Agreement shall close no later than one hundred twenty (120) days from the opening of such escrow; (4) Buyer shall be the fee owner of the Real Properly and the title to the Real Property shall be subject only to non-delinquent real property taxes and assessments, to the Permitted Exceptions listed in the Owner's Policy from the Title Company to the Buyer and to easements that encumber the Real Property and that are created by Buyer after the Effective Date which easements are necessary to permit Buyer to construct and complete the State Project (collectively, "Title Exceptions"); (5) Buyer shall grant, transfer and convey to Seller the Real Property pursuant to a grant deed, subject only to the Title Exceptions; (6) subject to SPWB Policies, Seller shall pay Buyer one dollar ($1.00) to purchase the Real Property and Seller shall have no obligation to pay any other fees, costs or amounts to Buyer In connection with its repurchase from Buyer of the Real Properly; (7) Buyer shall pay all escrow 12 P:\Agendas\Agenda AUachmenls\Agrmts-Amend 2008\04-21-08 Courthouse. Real Property Acquisition Agreemenl.doc fees and costs, recording costs and all other fees, costs and amounts incurred in connection with the closing of the transactions contemplated in the Repurchase Agreement; (8) Seller shall have no duty or obligation to construct, develop or complete the State Project at the Real Property and Seller shall have no duty or obligation to construct, develop and/or complete any other improvements at the Real Property; and (9) the Repurchase Agreement shall also contain all other terms, covenants and conditions agreed to by and between Buyer, as seller, and Seller, as buyer. Notwithstanding Section 3.2 and Section 10.2.5(ii) to the contrary in this Agreement, in the event that Buyer commences construction of the State Project within ninety (90) days following Buyer's receipt of the Seller's Repurchase Notice, the Repurchase Agreement will be terminated and any rights of Seller to repurchase the Real Property will also terminate. 10.3. No Merger. All express representations and warranties in this section 10 shall survive the Close of Escrow and the conveyance of record fee title to the Real Property to the Buyer, and shall not merge with the recordation of the Grant Deed. 10.4. Seller's Pre-Closing Covenants. Seller shall comply with the following covenants and requirements at all times from and after the Effective Date, and prior to the Close of Escrow or earlier termination of this Agreement and cancellation of Escrow: 10.4.1. Seller shall not grant, convey, or enter into any easement, lease, license, agreement, lien, encumbrance, or any other legal or beneficial interest in or to the Real Property, other than the Permitted Exceptions, without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed. 10.4.2. Seller shall not violate, nor allow the violation of, any law, ordinance, rule, or regulation affecting the Real Property. 10.4.3. Seller shall do or cause to be done, all things within its reasonable control to preserve intact and unimpaired any and all rights of way, easements, grants, appurtenances, privileges, and licenses in favor or consisting of any portion of the Real Property, except as otherwise expressly provided herein. 10.4.4. Seller shall pay, if and when the same are due, all payments on any encumbrances or assessments presently affecting the Real Property and any and all taxes, assessments, and levies in respect of the Real Property through the Closing Date. 10.4.5. Seller shall not take any action, or fail to take any action, that would result in any change, alteration, modification, addition to, or termination of any of the presently- existing general plan or zoning designation of the Real Property, without Buyer's prior written approval, and Seller shall immediately provide Buyer with a copy of any written materials received by Seller evidencing or relating to any proposal or attempt to effect any such change, alteration, modification, addition to, or termination other than those sought by Buyer. 10.4.6. Except for the Sewer Line Relocation, Seller shall (i) not alter the physical condition of the Real Property; (ii) maintain the Real Property in substantially the same condition as that which existed as of the Effective Date; and (iii) Seller shall deliver possession of the Real Property to Buyer at the Close of Escrow in no worse condition than that which existed at the expiration of the Due Diligence Deadline. 10.4.7. Seller shall promptly notify Buyer of any event or circumstance that could or would render any representation or warranty of Seller under this Agreement untrue or 13 p:\Agendas\Agenda Attadlments\Agrmls-Amend 2006\04-21-08 Courthouse - Real Property Acquisition Agreemenl.doc misleading, or of any covenant of Seller under this Agreement incapable or less likely of being performed; provided, however, that Seller's foregoing obligation to provide notice to Buyer shall in no way relieve Seller of any liability for a Breach by Seller of any of its representations, warranties or covenants under this Agreement. 10.4.8. Seller shall not record any covenants, conditions or restrictions against the land which restricts the design or the development upon the land, and to the extent that any covenants, conditions or restrictions are recorded against the land, such covenants, conditions or restrictions shall exempt the land from any design or development restrictions. 10.4.9. Seller shall not assist with the formation, vote for, or agree to any assessment districts or special tax districts which results in a special tax or assessment upon the land. 10.5. Seller's Post-Closing Covenant. Seller represents, warrants and covenants to Buyer that: 10.5.1. As of the Effective Date, Seller owns land immediately adjacent, and to the east, of the Real Property which Seller utilizes for park purposes ("Park"). Following the Close of Escrow, in the event that Seller decides to install or construct any bridges or walking paths from the Park to the Real Property, Seller will be responsible for the coordination, design, construction, operation and maintenance (including obtaining any permits) relating to the installation or construction of those bridges and walking paths, including all costs associated with those activities. Prior to commencing the installation or construction of any bridges or walking paths connecting the Park to the Real Property, Seller shall obtain the written consent of Buyer which consent shall not be unreasonably withheld, delayed or conditioned by Buyer. Further, Seller shall indemnify, defend, and hold harmless Buyer and each of the Buyer Indemnified Parties (as defined in section 11.1.3(a) below) from and against all losses incurred, suffered by or claimed against anyone (1) or more of the Buyer Indemnified Parties, by reason of, arising out of or relating to the design, construction, operation or maintenance of any bridge or walking path connecting the Park to the Real Property; provided, however, Seller shall have no liability under this Section 10.5.1 should any losses incurred, suffered by or claimed against anyone (1) or more of the Buyer Indemnified Parties result directly or indirectly from the negligence or wrongful conduct of Buyer, or of one (1) or more, without limitation, of its branches, divisions, entities, agencies and departments, officers, agents, members, managers, employees, affiliates, independent contractors, or the successors and/or assigns, of any of them. 10.5.2. After receiving the design development documents for the State Project (collectively, the "Design Development Documents") from Buyer in accordance with section 10.6, Seller shall review the Design Development Documents within a reasonable period of time as such Design Development Documents relate to either flood prevention or recommended mitigation relating to the existing improvements to the river bank (collectively, the "River Bank Improvements") which River Bank is owned in fee by Seller on the Effective Date, is adjacent to and located to the southeast of the land (the "River Bank"). Notwithstanding anything to the contrary in the Design Development Documents, within one (1) year or 365 days from the date that Seller receives from Buyer the Design Development Documents, Seller, at its sole cost and expense, shall make any modifications to the River Bank and/or to the River Bank Improvements, if any, that Seller determines in its sole and absolute discretion are necessary in order to mitigate against flooding on the Real Property or possible damage to the River Bank Improvements which could reasonably result due to the location of the State Project upon the Real Property in conformance with the Design Development Documents. 14 P:lAgendas\Agenda AUachments\Agrmts-Amend 2008\04-21-08 Courthouse - Real Properly Acquisition Agreement.doc 10.6 Buyer's Post-Closing Covenant. Buyer represents, warrants and covenants to Seller that: (i) Buyer, at its sole cost and expense with the exception of the Sewer Line Relocation, will develop, construct and complete the State Project in accordance with all applicable federal, state, municipal and/or local laws, statutes, codes, ordinances and/or regulations; (ii) Within ten (10) days of receipt, Buyer shall deliver to Seller the Design Development Documents; (iii) the Design Development Documents must be delivered by Buyer to Seller no later than one (1) year or 365 days prior to the Construction Completion Date; (iv) on forty-eight (48) hours prior written notice from Seller to Buyer, Buyer shall grant to Seller and/or to its agents, employees, independent contractors and/or consultants access to the Real Property to enable Seller and/or its agents, employees, independent contractors and/or consultants (a) to determine if improvements to the River Bank Improvements are necessary, and/or (b) to make improvements to the River Bank Improvements in the event that Seller determines that improvements are necessary; (v) Buyer will commence construction of the State Project no later than the Construction Commencement Date subject to Section 3.2, to Section 1 0.2.5(ii) and to Section 10.2.6 of this Agreement. 11. INDEMNIFICATION AND DUTY TO DEFEND. 11.1. Defined Terms. For purposes of this Agreement, the following defined terms and definitions shall apply: 11.1.1. "Environmental Laws" means any present and future federal, state and local laws, statutes, ordinances, rules, regulations, and the like, as well as common law, which (i) relate to protection of human health or the environment, (ii) relate to Hazardous Substances, (iii) relate to liability for or costs of Remediation or prevention of Releases of Hazardous Substances, (iv) relate to liability for or costs of other actual or future danger to human health or the environment, (v) condition transfer of property upon a negative declaration, or other approval of a governmental authority of the environmental condition of the Real Property, (vi) require notification or disclosure of Releases of Hazardous Substances, or other environmental condition of the Real Property, to any governmental authority or other person or entity, whether or not in connection with transfer of title to or interest in property, (vii) imposes conditions or requirements in connection with permits or other authorization for lawful activity, (viii) relates to nuisance, trespass, or other causes of action related to the Real Property, and/or (xi) relate to wrongful death, personal injury, or property or other damage in connection with any physical condition or use of the Real Property, including but not limited to, the following laws, as they may be amended from time to time: Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. section 9601, et seq.; Federal Resource Conservation and Recovery Act, 42 U.S.C. section 6901, et seq.; Clean Water Act, 33 U.S.C. section 1251, et seq.; Toxic Substances Control Act, 15 U.S.C. section 2601, et seq.; Refuse Act, 33 U.S.C. section 407; Occupational Safety and Health Act, 29 U.S.C. section 651, et seq.; Clean Air Act, 42 U.S.C. section 7401, et seq.; California Hazardous Waste Control Act, California Health and Safety Code sections 25100, et seq.; Carpenter-Presley-Tanner Hazardous Substance Account Act Substance Account Act, California Health and Safety Code sections 25300, et seq.; Hazardous Substance Cleanup Bond Act of 1984, California Health and Safety Code sections 25385, et seq., and related statutes including sections 25356.1-25356.4 of the California Health and Safety Code; Porter-Cologne Water Quality Control Act, California Water Code sections 13000, et seq.; Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code sections 25249.5, et seq.; California Health and Safety Code sections 25220, et seq., 25280, et seq., 25359.7; Code of Civil Procedure section 3483; and any similar federal, state, and/or local laws and ordinances and the regulations now or hereafter adopted, published, and/or promulgated pursuant thereto. 15 P:\AgendaslAgenda Altacl1menls\Agrmts-Amend 2008\04-21-08 Courthouse - Real Property Acquisition Agreement.doc 11.1.2. "Hazardous Substances" includes, but is not limited to, any and all substances (whether solid, liquid, or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar meaning or regulatory effect under any present or future Environmental Laws or that may have a negative impact on human health or the environment, including but not limited to petroleum and petroleum products, asbestos, and asbestos-containing materials ("ACM"), polychlorinated biphenyls ("PCBs"), lead, lead-based paints, radon, radioactive materials, flammables, and explosives. 11.1.3. "Buyer Indemnified Parties" and "Seller Indemnified Parties." (a) "Buyer Indemnified Parties" includes the State of California (including without limitation its branches, divisions, entities, agencies, and departments); the Judicial Council of California; the Administrative Office of the Courts; the Superior Court of California, County of San Bernardino; and their respective officers, agents, members, managers, employees, independent contractors, agents, personal representatives, affiliates, attorneys, and administrators, and the successors, and assigns of each of them. (b) "Seller Indemnified Parties" includes the City of San Bernardino and the Redevelopment Agency of the City of San Bernardino and their respective officers, agents, members, managers, employees, independent contractors, agents, personal representatives, affiliates, attorneys, and administrators and the successors and assigns of each of them. 11.1.4. "Losses" includes, but shall not be limited to, any and all claims, suits, liabilities (including but not limited to strict liabilities), administrative or judicial actions or proceedings, obligations, debts, damages, losses, costs, expenses, diminutions in value, fines, penalties, charges, fees, expenses, costs of assessing damages or losses, judgments, awards, amounts paid in settlement, foreseeable and unforeseeable consequential damages, litigation costs, attorneys' fees, engineers' fees, environmental consultants' fees, Remediation and investigation costs (including but not limited to costs for sampling, testing, and analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid, or gas), of whatever kind or nature, and whether or not incurred in connection with any judicial or administrative proceedings. 11.1.5. "Release" includes, but is not limited to, any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing, presence, or other movement of Hazardous Substances. 11.1.6. "Remediation" includes, but is not limited, to any response, remedial, removal, or corrective action mandated by any Environmental Laws; any activity to cleanup, detoxify, decontaminate, contain or otherwise remediate any Hazardous Substance mandated by any Environmental Laws; any actions to prevent, cure or mitigate any Release of any Hazardous Substance mandated by any Environmental Laws; any action to comply with any Environmental Laws or with any permits issued pursuant thereto; any inspection, investigation, study, monitoring, assessment, audit, sampling, and testing, laboratory or other analysis, or evaluation relating to any Hazardous Substances mandated by any Environmental Laws. 11.1.7. "Storage Tanks" includes any underground or aboveground storage tanks, whether filled, empty, or partially filled with any Hazardous Substance. 16 P:\Agendas\Agenda Attachments\Agrmts-Amend 2008\04-21-08 Courthouse. Real Property Acquisition Agreement.doc 11.2. Indemnification. 11.2.1 Seller Indemnification. Seller shall, and hereby does, indemnify, defend, and hold harmless Buyer and each of the Buyer Indemnified Parties from and against all Losses incurred, suffered by or claimed against anyone or more of the Buyer Indemnified Parties, by reason of, arising out of or relating to (a) a Release occurring during the fee ownership of Seller in and to the Real Property, of Hazardous Substances in, on, under, above, at or from the Real Property, or (b) a violation by Seller or by any of the Seller Indemnified Parties of any Environmental Laws relating to the Real Property, whether known or unknown, which occurred during the fee ownership by Seller of the Real Property; provided, however, Buyer and Buyer Indemnified Parties shall not be entitled to indemnification under this Section 11.2.1 of the Agreement to the extent that their Losses result directly or indirectly from the negligence or wrongful conduct of Buyer or of one or more, of the Buyer Indemnified Parties. 11.2.2 Buyer Indemnification. Buyer shall, and hereby does, indemnify, defend, and hold harmless Seller and each of the Seller Indemnified Parties from and against all Losses incurred, suffered by or claimed against anyone or more of the Seller Indemnified Parties, by reason of, arising out of or relating to (a) a Release occurring during the fee ownership by Buyer of the Real Property or by one or more of the Buyer Indemnified Parties of Hazardous Substances in, on, under, above, at or from the Real Property, or (b) a violation by Buyer or by anyone of the Buyer Indemnified Parties of any Environmental Laws relating to the Real Property, whether known or unknown, which occurred during either (i) the fee ownership of Buyer of the Real Property and/or (ii) the time period between the Effective Date and the Close of Escrow; provided, however, Seller and Seller Indemnified Parties shall not be entitled to indemnification under this Section 11.2.2 of the Agreement to the extent that their Losses result directly or indirectly from the negligence or wrongful conduct of Seller or of one or more, of the Seller Indemnified Parties. 11.3. Duty to Defend; Attorneys Fees and Expenses. Upon written request by any Buyer Indemnified Party, Seller shall defend the Buyer Indemnified Parties for any claims that are within the scope of the indemnity obligation set forth in section 11.2.1 above (if requested by any of the Buyer Indemnified Parties, in the name of the Buyer Indemnified Parties) by attorneys and other professionals, including engineers and environmental consultants selected by the Seller, subject to the reasonable approval of the Buyer Indemnified Parties. Upon written request by any one or more of the Seller Indemnified Parties, Buyer shall defend the Seller Indemnified Parties for any claims that are within the scope of the indemnity obligation set forth in section 11.2.2 above (if requested by any of the Seller Indemnified Parties, in the name of the Seller Indemnified Parties) by attorneys and other professionals, including engineers and environmental consultants selected by Seller, subject to the reasonable approval of the Seller Indemnified Parties. 11.4. Survival. All rights of the Buyer Indemnified Parties and all obligations of Seller under this Section 11 shall survive the Close of Escrow, recordation of the Grant Deed, and Seller's conveyance, and Buyer's acceptance, of record title to the Real Property. All rights of the Seller Indemnified Parties and all obligations of Buyer under this Section 11 shall survive the Close of Escrow. 11.5, Preservation and Retention of Rights. Notwithstanding anything in this Agreement to the contrary, Seller and Buyer preserve and retain any rights under all laws including without limitation the Environmental Laws that either party may have against any third party. 17 p:\AgendaslAgenda Altachmenls\Agrmts-Amend 2008\04-21-08 Courthouse. Real Property Acquisition Agreemenl.doc 12. DAMAGE OR DESTRUCTION PRIOR TO CLOSING. The risk of physical loss to the Real Property shall be borne by Seller prior to the Close of Escrow and by Buyer thereafter. If the Real Property, or any portion thereof, is darnaged or destroyed prior to the Close of Escrow frorn any cause whatsoever, whether an insured risk or not, and such damage or destruction materially interferes with Buyer's ability to construct the State Project (as determined in Buyer's sole and absolute discretion, subject to the concurrence of the SPWB), Buyer shall have the right, upon written notice to Seller within five (5) business days after the date Buyer receives notice of the loss from Seller, to terminate this Agreement and cancel Escrow in accordance with section 8.2. 13. CONDEMNATION PRIOR TO CLOSING. If Seller receives written notice from any agency or authority having the power of eminent dornain advising of an actual or intended condemnation of all or any portion of the Real Property ("Condemnation Notice"), and such condemnation materially interferes with Buyer's ability to construct the State Project (as determined in Buyer's sole and absolute discretion, subject to the concurrence of the SPWB), Seller shall immediately advise Buyer of same in writing and deliver therewith a copy of the Condemnation Notice. Buyer shall have the option, upon written notice to Seller within five (5) business days after the date Buyer receives the Condemnation Notice, to terminate this Agreement and cancel Escrow in accordance with section 8.2. 14. MISCELLANEOUS. 14.1. Notices. All notices required to be given by either party will be made in writing and may be effected (i) by personal delivery, (Ii) via reputable overnight courier service, (iii) by mail, registered or certified, postage prepaid with return receipt requested, or (iv) by facsimile transmission. Notices sent by courier or mail must be addressed to the parties at the addresses, and faxed notices must be sent to the parties at the facsimile numbers, appearing below in this section 14.1, but each party may change its designated address or facsimile number by giving written notice to the other party in accordance herewith. Notices delivered personally will be deemed communicated as of actual receipt; notices sent via overnight courier will be deemed communicated as of the date delivered by the courier; rnailed notices will be deemed communicated as of the date of receipt or the fifth day after mailing, which ever occurs first; and faxed notices will be deemed communicated as of the time and date of the facsimile confirmation printout of the recipient. The parties' addresses, telephone numbers, and facsimile numbers are as follows (telephone numbers are provided for convenience only): Seller: Redevelopment Agency of the City of San Bernardino Attn.: Interim Executive Director 201 North "E" Street, Suite 301 San Bernardino, CA 92401 Telephone: (909) 663-1044 Facsimile: (909) 663-2294 Buyer: Judicial Council of California Administrative Office of the Courts Office of Court Construction and Management Attn: Eunice Calvert-Banks 455 Golden Gate Avenue 18 P:\Agendas\Agenda Atlachments\Agrmls-Amend 2008\04-21-08 Courthouse. Real Property AcquisJlion Agreemenl.doc San Francisco, CA 94102 Telephone: (415) 865-4048 Facsimile: (415) 865-8885 E-mail: eunice.calvert-banks@jud.ca.gov and Judicial Council of California Administrative Office of the Courts Office of Court Construction and Management Attn: Director 455 Golden Gate Avenue San Francisco, CA 94102 Telephone: (415) 865-4055 Facsimile: (415) 865-8885 E-mail: kim.davis@jud.ca.gov With a copy to: Judicial Council of California Administrative Office of the Courts Office of the General Counsel Attn: Managing Attorney, Real Estate Unit 455 Golden Gate Avenue San Francisco, CA 94102 Telephone: (415) 865-4057 Facsimile: (415) 865-8885 E-mail: melvin.kennedy@jud.ca.gov 14.2. Entire Agreement. This Agreement, and the Exhibits attached hereto, represent the final and entire agreement between the parties in connection with the terms and conditions of the purchase and sale of the Real Property, and this Agreement supersedes and replaces any and all prior and contemporaneous agreements, understandings, and communications between the parties, whether oral or written, with regard to the subject matter hereof. There are no oral or written agreements, representations, or inducements of any kind existing between the parties relating to this transaction which are not expressly set forth herein. This Agreement may not be modified except by a written agreement signed by both Buyer and Seller. 14.3. No Assignment; Binding Effect. Neither party may assign its rights under this Agreement without the prior written consent of the other party, which may be given or withheld in the sole and absolute discretion of the non-assigning party. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, legal representatives, administrators, successors-in-interest, and assigns. 14.4. Waiver. No waiver of any provision of this Agreement shall be valid unless in writing and signed by both parties hereto. No waiver by any party, at any time, of any breach of any provision of this Agreement shall be deemed a waiver of a breach of any other provision herein, or a consent to any subsequent breach of the same or another provision. If any action by any party shall require the consent or approval of another party, such consent or approval of such action on anyone occasion shall not be deemed a consent to or approval of such action on any subsequent occasion or a consent to or approval of any other action. 19 P:lAgendaslAgenda AltachmentslAgrmts-Amend 2008\04-21-06 Courthouse - Real Property Acquisition Agreement.doc 14.5. Captions, Headings, Exhibits, and Recitals. The captions and section numbers appearing in this Agreement are inserted only as a matter of convenience and do not define, limit, construe, or describe the scope or intent of this Agreement. The recitals set forth in this Agreement, and each and all of the exhibits attached to this Agreement, are incorporated herein as if set forth in full in this Agreement. 14.6. Governing Law. This Agreement has been prepared, negotiated, and executed in, and shall be construed in accordance with, the laws of the State of California, without regard to conflict of law rules. 14.7. Time of the Essence. Time is of the essence with respect to all matters contained in this Agreement. 14.8. Date of Agreement. All references in this Agreement to "the date of this Agreement" or "the date hereof' shall be deemed to refer to the Effective Date. 14.9. Counting of Days. The time in which any act must be performed under this Agreement shall be computed by excluding the first day and including the last day, unless the last day is a non-business day (as defined below), in which case the last day of performance shall be the next business day (as defined below). The term "non-business day" shall mean any "holiday" as defined in Code of Civil Procedure section 7 and any "optional bank holiday" as defined in Code of Civil Procedure section 7.5. Accordingly, the term "business day" shall mean any day other than a non-business day. 14.10. Invalidity of any Provision. If any provision (or any portion of any provision) of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of this Agreement, the legality, validity, and enforceability of the remaining provisions (or the balance of such provision) shall not be affected thereby. 14.11. Drafting of Agreement. Buyer and Seller acknowledge that this Agreement has been negotiated at arm's length, that each party has been represented by independent counsel and that this Agreement has been drafted by both parties and no one party shall be construed as the draftsperson. 14.12. No Third-Party Beneficiary Rights. This Agreement is entered into for the sole benefit of Buyer and Seller and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under, or to this Agreement, except as expressly provided herein. 14.13. Further Acts. The parties agree to execute such instruments and to perform such further acts as may be reasonably necessary to carry out the purposes and intent of this Agreement. 14.14. Non-Discrimination. Buyer and Seller shall comply with, and this Agreement is subject to, any and all laws prohibiting discrimination. 14.15. Conflict of Interest. No member, official, officer, or employee of the Buyer shall have any direct or indirect interest in this Agreement or the State Project, nor shall such parties participate in any decision relating to this Agreement or the State Project where such participation is prohibited by law. 20 P:\Agendas\Agenda AltachmenlslAgrmts-Amend 2008\04-21-08 Courthouse - Real Property Acquisition Agreement.doc 14.16. Limitation on Liability. No member, official, officer, employee, or agent of the Buyer shall be personally liable for any default or breach by the Buyer under this Agreement. No member, official, officer, manager, employee, or agent of Seller shall be personally liable for any default or breach by Seller under this Agreement. 14.17. Survival. All terms and conditions in this Agreement, which represent continuing obligations and duties of the parties and have not been satisfied prior to the Close of Escrow shall survive the Close of Escrow, and shall continue to be binding on the respective obligated party in accordance with their terms. All covenants, representations and warranties that are intended by Seller and Buyer in this Agreement to survive the Close of Escrow shall survive the Close of Escrow. 14.18. Facsimile Signatures. Facsimile signatures shall not be accepted unless prior agreement is obtained in writing by both parties. If agreed that facsimile signatures are acceptable, they will be treated as original signatures; however, in no instance shall facsimile signatures be accepted on any document to be recorded; such documents shall bear original signatures. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. SELLER: BUYER: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO THE STATE OF CALIFORNIA, on behalf of THE JUDICIAL COUNCIL OF CALIFORNIA, ADMINISTRATIVE OFFICE OF THE COURTS By: Name: Emil A. Marzullo, Title: Interim Executive Director Dated: By: Name: William C. Vickrey Title: Administrative Director Dated: Approved as to Form and Legal Content: //iJ- . .. /1 By: ~~. "j, Agency ~unsel APPROVED AS TO FORM: Administrative Office of the Courts, Office of the General Counsel By: Name: Melvin L. Kennedy Title: Managing Attorney, Real Estate Unit Dated: 21 P:\Agendas\Agenda Attachmenls\Agrmts-Amend 2008\04-21-08 Courthouse - Real Property AcquisWon Agreement.doc EXHIBIT A MAP OF LAND (SEE ATTACHED) A-1 ~ ~ ~ I~~~ Q ~~ i:: ~': ~ !u (j ~~~ qf' .' ~ :!~~~ l Q ~~~~ ~ ~ ~gU ~ ~~~ edl~ III ~h ~ ~~i -8.. ~ ~ ~ \~~ <.- ...'..... ~.. <'-1l.'-. , ,"~ " ~ r ':0.;, ~~:_~ ,~- .---- ;~<'r;-' , 'f~(lf' "'~HJ. ,,'~ i":'~~~\ - _.:f .. \J'~ ,.. ,- ,'" " w- ,j, ".l"",.... '.- : .j'. -~- ~~- (-'::_~t :;J>- l :....< I ~~,~.. ,,'~ t ~~~ i~~;{ - ~L-~~. ? ;. '%;-ot. t.,,;_~ / *l '. , '\'r-~"1 ,1", ~~ ~o ::1' ~il , ......., "^V".,,, .", ~'!~; " \r ,.. . ~\'\" ~,,;. , , \' \~\ ' ~. \,V,;; ~~ , ~"~::\ : . ~~f ' >~ "\"i' H.:. . ,,' , : ''i",~~'._..:\ t . ~"'""t~-""" .-~ ,'" "~"'\ ~'" ., ,>., ',~'t ~'", Id "It:" ' I;; . ~\ " .,'.. .~. 'fa ;$' ~~ \~ I ..1 ~\l, " h't <> ~'\ ',' 1. ..~. :~, ~',-; ~'4-:'.' ,~jl, I, ;;;;" "0' '.'}z; \', I :~ 1, ! ~~ 6 t:..... "" - - ---, ----,-, '-, - I '. 1 , I" U' >; :.1 , "-,;!,:.,. ,; ,j .. -', ~ ~ ~ ,---- .. 1 '"'<:,!1 ., .. ~'''- -"-~-:~:' ..!,j"';:", ,d' ~~ -', - '-'\~":;_k~l'~~~-.._-l}\+' f:'.4.t":;:I"f;;''''':~.l::':'"'' '.1;"~f'"\\;;'~ff\'1; "":,,'!;:'tr';' " ' ., '~, ",.' -:,', ' ~ 1(,' ""'", ' , ".JL..2,.. ' : ',y '-,11''. ' r ;:.:,! ., :,'~ ~. -. ~: ; -~: ~~~ ~',. ~ "v' ""'IJ~Y? " /-] '~\ '\ H,~ H; irt"t':.':- ~,: ;,In, 'Hrr-Ti - :H l;:; ~t;~ ;,'~jt ~:.~~ -'I qli,:Uc-~,j" ;~~l::~~~it~:'-t~ lji ~ ~,l~ "'l ;>- U-ll- VJe;:: ::JU-l 0"'" :r:0 <-e;:: e:.:"'" ::JU-lU-l 0t::6 UVJ-l EXHIBIT B LEGAL DESCRIPTION OF LAND (TO BE PROVIDED) B-1 EXHIBIT C FORM OF GRANT DEED AND CERTIFICATE OF ACCEPTANCE (SEE ATTACHED) C-1 IvVHEN RECORDED MAIL TO: I Judicial Council of California Administrative Office of the Courts Office of Court Construction and Management 455 Golden Gate Avenue San Francisco, CA 94102 ~ttn: Director ~ OFFICIAL STATE BUSINESS - EXEMPT FROM RECORDING FEES PURSUANT TO GOVT. CODE SECTION 27383 AND DOCUMENTARY TRANSFER TAX PURSUANT TO REVENUE AND TAXATION CODE SECTION 11922. SPACE ABOVE THIS LINE FOR RECORDER'S USE GRANT DEED Agency: Judicial Council of California, Administrative Office of the Courts Project: New San Bernardino Courthouse Proiect Parcel: 36-R1 APN(S): 135-221-22 --- County of San Bernardino REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic, hereby GRANTS to THE STATE OF CALIFORNIA, on behalf of THE JUDICIAL COUNCIL OF CALIFORNIA, ADMINISTRATIVE OFFICE OF THE COURTS, the following described real property situated in the State of California, County of San Bernardino, City of San Bernardino, described as follows: See Exhibit "A" consisting of one (1) page attached hereto and by this reference made a part hereof. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Name: Emil A. Marzullo Its: Interim Executive Director Dated: APPROVED AS TO FORM AND CONTENT: Agency Counsel C-2 CERTIFICATE OF ACCEPTANCE Agency: JUDICIAL COUNCIL OF CALIFORNIA, ADMINISTRATIVE OFFICE OF THE COURTS Project: New San Bernardino Courthouse DGS Parcel: 10495 Assessor's Parcel No.: 135-221-22 This is to certify that, pursuant to sections 15853, 27281 and 70301 et seq. of the California Government Code, the interest in real property conveyed by the Grant Deed dated from Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic, to THE STATE OF CALIFORNIA, on behalf of THE JUDICIAL COUNCIL OF CALIFORNIA, ADMINISTRATIVE OFFICE OF THE COURTS, is hereby accepted by the undersigned officer on behalf of the State Public Works Board pursuant to authority conferred by resolution of said Board duly adopted on June 13, 2008 and the Grantee consents to the recordation thereof by its duly authorized officer. Note to Recorder: If this certificate is for a correction deed, all corrections and/or changes to the previously recorded deed must be reviewed and accepted by the State prior to recording a correction deed. All correction deeds require a new Certificate of Acceptance dated subsequent to recordation of the original deed or the most recent correction deed, if any. Accepted STATE OF CALIFORNIA STATE PUBLIC WORKS BOARD By Jerry Leong Assistant Administrative Secretary Dated: Consent THE JUDICIAL COUNCIL OF CALIFORNIA, ADMINISTRATIVE OFFICE OF THE COURTS By Dated: William C. Vickrey Administrative Director of the Courts Approved as to form: ADMINISTRATIVE OFFICE OF THE COURTS OFFICE OF THE GENERAL COUNSEL By: Dated: Melvin L. Kennedy Managing Attorney, Real Estate Unit Approved DIRECTOR. DEPARTMENT OF GENERAL SERVICES By Dated: James S. Martin, Assistant Chief Real Property Services Section C-4 EXHIBIT "0" LOCATION OF EXHIBIT SEWER LINE {SEE ATTACHED) C-4 ~ ~ ~~~ '" ~~~ ~ i5~h 2 ~~~ j..:: tr:~~ Q:: ~Q<ri is ~~~ \,) ~~~ ~ t~' ~ ~~~~ ~ o ~~~o ~ (J 0 5i 5l Q !e o ~8~~ ~ ~9"O~ ~ ~~i!' ~ ~h llJ h~ ~ ~~~ ;:; ~~~ ,~~ ~t.,)~ 3 ~ # ,. 'P"" , .;;.:'\ 1:f '.';11'; '.. :?~~~=~,,;,~~ , II ",., ::'<:: to ~~" ;Iio :?,,.,l: l~." . ,,',,-":it ..., ,_. >..... ~:'" "'~~ 1y \,<-- ~""';\' ~ ...~ "'1>..\, '\ ~nm \0;: , . :.t.\~,. ., )Ci\~\<i.! '-, i';~ , ;1 ;-~~\\..,~ ,-' ~::ii ;[r'~if-i\_ ~~k ~~~~~" ;~l~''''':':1 :<,\', . ;~li , l"\ ~.T -- _ ~ , "1 'l: .: (l;., k~~.- -tlf" i;l \~ ~ <I'll ~ I., \'i.;" ~ ,...,...~~ ~-"' ~''''~';>- ~ ; ~PJ ~ .~- II' \1>< ! ~*--- '>;J:~ \.'~ ~ <-1);....,., '''i; ~ \~ 'j S i . j., :,:0, !-t. I, ~ :; ~ - ":L' l'r."~.,,,,;. " ~ ~; {,. 'I ~']I; !;~ <."~'<~io' '" ~.,~." i ~ ' " --.-~ '. t~ .'.. .~~ 1 "" '~...- ",'", 0>- Zr:G ~<:~ f-t-~ ::!3Z~ x-<~ WVJCf)