HomeMy WebLinkAboutR03-Redevelopment Agency
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Redevelopment Agency . City of San Bernardino
300 North "D" 5-. Faunh Floor . 51ft B......tiDo, Califamia 92418
(714) 384-5081 FAX (714) 888-9413
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SieveD H. Dukett
Execulive Dinc:lar
JUNE 30. 1989
BUILDING AT 5055 HALLMARK PARKWAY - COVENANT WITH EDA
Synopsis of Previous Commission/Council/Committee Action:
Previous actions were In closed session.
(COMMUNITY DEVELOPMENT COMMISSION)
Recommended Action:
Move to authorize execution of a Covenant between the Economic
Development Administration and the Redevelopment Agency.
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Supporting data attached: Yes
FUNDING REQUIREMENTS: None
Ward:
5
Project: SC
Commission Notes:
SD:EJ:kp:1360S
Agenda of: July 5. 1989
Item No. -.3
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9edeVelopment Agency
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OSTAFF REPORT
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On October 5, 1979, a property management agreement was executed between the
Economic Development Administration (EDA) and the Hestside Community
Development Corporation (HSCOC). The property management agreement runs with
and burdens the real property located at 5055 Hallmark Parkway, San
Bernardino, California.
On June 23, 1989, the Redevelopment Agency acquired the property at trustee
sale for a total of $266,497.76 which includes our own Trust deed for
$82,169.99. Our second trust deed will be paid from sale proceeds so that our
net cash cost in the sale was $184,327.77. In addition, there also will be
the $46,815 cost of paying the delinquent property taxes. Thus, the total
cost of acquisition will be approximately $233,143.
The attached draft Covenant was prepared by EDA to replace the existing
management agreement. It will run until November I, 1999, and allows the
Agency to use the property as an incubator facility for small businesses and
light industrial firms. In addition, EDA will not unreasonably withhold
approval of other uses of the property that would be eligible for Federal
financial assistance.
The attached covenant has been negotiated through the City Attorney's office.
The City Attorney will have a corrected version, signed by EDA, at the
Commission meeting. EDA will require a substitute covenant before the deed
for the building can be recorded. It Is, therefore, requested that the
Community Development Commission approve the execution of a new covenant.
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COV..A.~
. THIS COVENANT i. .ade a. of the 23d day of June, 1989, by
and between the ECONOMIC DEVELOPMENT ADMINISTRATION, DSPAaTNENT
OF CONMBRCE, UNITED STATES or AMIRICA, the add res. of which i.
Hoover Co..erce aui1ding, WaShington, D.C., 20230 (hereinafter
with .ueee..ors and ...ign. called -SDA-), and the CITY or
SAN BERNARDINO, the addre.. of which 1. --------- -------, San
.ernardino, CalifornLa, 92--- (hereinafter with .ucce..or. and
aAalgn. called -CITY-I.
RICJ'1'ALS
WH!RSAS, In ~ol1necl.ion with Pedera1 financial a..i.tance
provided by BDA under EDA Project Mo. 01-11-18017, a Propert,
MtlntlCjwlle,at Agreement, dated October 5, 197', wa. executed by
San Bernardinu Wesl Side Community Deve10p.ent Corporation of ,"..
San Bernardino, San 6ernardino couney, California, and recordedt"
in the official recorda of san aernardino County, 011 ' ,
Deeember'S, 1979, in Book 9827, Page. 1209-1212 (he,eintlfte,
called -PROPERTY MANAGEMENT AGREEMENT-), and ,
~I!R!AS, the Properl.y Management Agreement run. with and
burdens the real property located at 5055 Hd1111aek Parkway,
San Bernardino, CA 92405, which i8 1eg_lly de~c[ibed _~ fulluw~
(hereinafter called -PROPERTY-):
Parcel 2 uf Parcel Map No. 5962, in the County of
San aernardino, State of Californi4, as per plat
recorded in Book 56 of Parcel Map., page 16, 1n ,
the offlc., uf tile County Recorder of said County.
and
WMEAEAS, Clty acqulred the Property at Trustee's Sale, on
June 23, 1989 and wi~he' to use the Property as an incubator
taci.lity for small bu.lnessf'and light lndul$t'lo11 flems, oInll
other City purposes eli~lb1e for Pederal financla1 ..alatance,
provided that the Property M.n.~ement Agreement is replaced by
this Covenant, and
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Coven.nt 'age 2 o~ J
. WREnIA~~'~i' agreeable to the .~~yi.itlon ot the ~ro:erty-
by City, andVthe replace.ent of the 'roperty "anag..ent
Agreement by thi, Covenant,
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COV.NUT
NOW, THEREPORB, for good and valuable con.ideration, th.
receipt and adequacy of which 1. hereby acknowledged, IT ~S
HFoRP.BY AGREED al follow.:
1. Th!. Covenant i. effective .. of the tille of
aoquioition of fee title to the Property by City.
~ 2. Thi. Covenant expire. on November 1, 1"', WhiCh date
.LS 1l0kllllwl.dy.d by the partie. t.o be the expiratlon Of the ,.'
uDcful life of the facilities on the Property. During the ter.
of this Covenant, it. provi.ion. .hall be and remain Obligation'
in re'pect to the Property and to Lhe p.rtie. to this Covenant,
their Successor. and a"ign., and such obligation. .hall be
deelled covenanLa rU11lliny with the land during the term of this
Covenant.
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3. Upon the recording of this Covenant, IDA aCknowledges
that the ProperLy Mallegement "greement is hereby extinguished
anu uf no further force and eftect.
4. City agree' that, except with the-prior written
approval of ~PA, c~~y will (.t~in title to the property during
the term ot this Covenant, and w111 not ..11, lease, transter,
convey, or mortgage any interest lu the Property.
5. City agrees that, except with the prior written
~pprov;:al oJ: ED", City will ue. the Property ~&Jtj,lI\l the term of
thi. Covenant substantially for an incubator faCility tor small
busInesses .II~ liyht industrial fitm.. It 1. understOOd that
EDA w1l1 not unreasonably w1thhuld approval for the use ot the
property for other City purposes pre.ently eliy1ble tor Federal
tinancial 4SiSlj,at411I.:e, ur fOI purposes not now so eligible but
eligj,ble aL the tim. euch us. i& made.
6. City agree. that, without the prior written approval of
EDA, in the event, during the term ot this Covenant, it sells,
leaees, transfers, conveye, or mottgage. allY interest in the
Property, or it uses the property ot.her th.n ~. author1zed under
this CovenanL, City wl11 prumptly compensate EDA in the amount
of ita fair share or the property, as provided in the COde ot
feueral Rwyul~tiun., Titl. 13, 'art 314 (13 CFK Part 314).
EDA's fair ahare is Lhet. lIerl.:elltaye ot the property'. value (as
OOf the date of ,ale, le.s., tranefer, conveyance, mortgage, or
. uneuthu'i~ed us.) attr1butable to the Pederal financial
a..bUnce 9r.n~.d by IDA IIIIIJ.r IDA Prnjl'!r.t. 110. 07-11-18017.
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06/;<2/89
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EDl'l/WASHI i'GO
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7..~;4:. '.gree. that any .u.. otberwi.e due to BDA pur.uant
to paragrG will be reduced by tbe sum. received by BDA from
T~e lank Of Calitornia, H. A., in any action which IDA .ay bring
to recover ~h. au.a the lank received fro. the forecloaure aale
uf the 'roperty. Should IDA be entitled to receive auch aums
teum the aank at any Li.e atter CIfY has compen.ated IDA
purauant to parawraph " IDA wnl tranafer to Cr1'lC BOA'. rLghts
and intere.t therein, or will pay .uch au.a OVer to erPr.
"a,e 3 Of 3
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IN WtTN~SS WHllIO', the parties hereto, by their duly authorized
o"Lc.ra, hay. aet their hand as of the day and year first aboYe
written.
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ICONOMIC DEVELOPMENT ADMIHISTaATION
Depart.ent ol Commerce
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DISTRICT 0' COLUMBIA, ss.
I, , a Notary Public in and for the
Diatrict of Columbia, do hereby certify th~t
who is the
~uthorized to perform the duties of the operating head of the
ECONOMIC DBVILOPMENT ADMINISTRATION, DEPARTMENT O~ COMMERCI,
UNITED STo\TIS O~ AMBRICA, party to t1l8 !O'''''Jolug .m] i1tt4checl
1nsLrument, peraon4lly app.4red before me 4.
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the act and Ileed of the Ec.:ollomic.
that he delLvered the adme 4~
acknowledwed ..id instrument ..
Development Admini.tr"tioll, il/ld
such.
Given under my hand and ..al this
1989 .
dllY of
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CITY OF SAN BERNARDINO
By
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