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HomeMy WebLinkAboutRS01-Redevelopment Agency o o o J A - o o IlEVBLOPIIIIIt DBPA.u..mn.a: OF TIlE CITY OF SO _ivnlBO IIBOIJBST FOR COIMISSIlIK/COIJBCIL ACTIOK From: Dl'Il'USJ:11 J. HENDERSON Executive Director Subject: VEsr SIDB PLlZJ. CClII__.1t"J: IlEVBLOPIIIIIt BLOC!: mwr.r FLOAT LOB Date: May 3, 1991 Synopsis of Previous ec-ission/Ccnmcil/ec-ittee Action: In June, 1988 and February, 1991, the Mayor and Common Council approved a Community Development Block Grant (CDBG) float loan for the West Side Plaza project. Rec_ended Action: (lfavor ..... C. - r.nnn..ill IIlTIOK A: RESOLDTIlIK OF TIlE IlAYOR J.IID CClIIIlII COlJKIL OF TIlE CITY OF SO _nDIJIO J.PPROVIJIG A r.RII'I'i TW LOJ.JI Am.,,""WIr BY J.IID ....u...... TIlE IU5WliVs.OPIIIIIt AGBIICY OF TIlE CITY OF SO _nDtBO J.IID TIlE CITY OF SO _ivnlBO (VEST SIDE PLAZA PROJECT) . (Rec_ended ActiOll8 Continued to Kext Page) ~ ~. ......,,~ Mr..." lleYelol8ent Depa l!Ilt Contact Person: Ken Henderson/Ed Flores Phone: 5065: 5081 Project Area(s): Northwest (RW) Ward(s) : Sixth (6th) Supporting Data Attached: Staff Reoort: Resolutions: Loan ARreement FUNDING REQUIREMENTS: Amount: $ N/A Source: Budget Authority: CaaBission/Council Botes: ICJH:lab:0161N Agenda Item No: RS. i DIVILOPMEBr DEPA-J'lIlBQlJlST FOR COUlICIL/COIIIISSIOOrIOIl West Side Plaza c;Bl'?ioat Loan Ray 3, 1991 Page -2- Recu.leaded ActiOlUl Continued... IIOTIOIl B: IIOTIOIl C: IIOTIOIl D: lC.-nnttv Deve1ft~...t C.-t..ionl USOLUTIOlI OF 1'JIB COJl__~n DIVILOPMEBr COIIIISSIOIl OF 1'JIB CITY OF SAIl BBltlWmIIIO APPltOVIlIG A CRIl'I'UW LOB AGJtJwown BY All>> BBI'wAAl'l 1'JIB IUWl5VJUA)PMEBr AGDCY OF 1'JIB CIn OF SAIl R__AImIllO All>> 1'JIB CITY OF SAIl R--A1IntllO (WEST SIDB PLAZA PJtO.JBCT) . (Ravor ..... C.-1m Council) USOLUTIOlI OF TBI IlAYOR All>> COJllOJl COUBCIL OF 1'JIB CITY OF SAlI _A1InIllO APl'JIIJVDG A r.mrrUW COftIACT BY .lIlD AIIHIG TBI IUWJIvJUA)1'IIIIIT AGDCY OF TBI CITY OF SAIl -A-IIIO, 1'JIB CIne 01' SAIl _AlmtJlO All>> TBI C01IITY 01' lWI -lmtJlO PDBIlIIlIG YO TBI un OF r.mrrUlI Clll.__.~ft DB0L01'IIIIIT IILOCZ GUIlT (CDIIG) rmms (WEST SIBB PLAZA PJtOJJ:CT). lC-tty Deve1o_ent C.-Ission) USOLUTIOB OF TBI COJl__~n DIVILOPIIBlIf C<RIISSIOIl OF 1'JIB CITY OF SJ1I _A1InIllO APl'JIIJVDG A CRIl'I'UW COllDACT BY All>> .&IIlIIG TBI IUWl5vJUA)PMEBr AGDCY OF TBI CITY 01' SJ1I -A1InIIIO, 1'JIB CITY 01' SAIl -AImIIIO, All>> TBI CUwn:z OF SJ1I BDlWlDIIIO PDBIlIIIIG YO rill USE OF r.R1I'I'UW COI._..~:n DBVBL01'IIIIIT BLOCK C3AIIT (CDIIG) PIIlIDS (WEST SIBB PLAZA PJtOJJ:CT). ltJII:1ab:0161l1 COIIIISSIOIl IIBBTIlIG lleetina Date: 05/06/91 - , '-' ,- ~ ,'-' '- /", -... \... DEVELOl'IIBBT DBPARTluIfr STAFF REPORT West Side Plazs C..-nnitv Deve1n_-t Block Grant Float Loan On October 15, 1990, the Community Development Commission approved the Disposition and Development Agreement (DDA) with New Frontier Commercisl Properties, Inc., for the development of a shopping center within the Northwest Redevelopment Project Area. The agreement provides for certain Agency financial assistance, including Community Development Block Grant (CDBG) funds, to finance certain on and off-site improvements. In relation to the Disposition and Development Agreement (DDA) amendment, this item serves to clarify roles and responsibilities of the City, County, Redevelopment Agency (Development Department) and developer concerning the West Side Plaza Project. The County of San Bernardino is contributing $2,750,000 of its CDBG funds and the City is providing $450,000 of its CDBG monies to finance the extensive site preparation work prior to construction and the fixturization of the Viva Market. The float loan mechanism is an interim use of CDBG funds backed by irrevocable, callable upon demand, letters of credit. Elsewhere in the agenda packet is another item dealing with the West Side Plaza and the proposed increase in the Department's line of credit with Wells Fargo Bank. The proposed increase of 3.2 million dollars provides the authority to issue the letters of credit supporting the use of interim CDBG monies. The four (4) attached resolutions, if adopted, would approve a loan agreement between the City and the Redevelopment Agency (Development Department) and the County of San Bernardino. These resolutions formalize the roles and responsibilities of all interested parties as described above and allows the project to proceed as originally envisioned. Staff recommends adoption of the attached resolution. ~ONJ Bzecutive Director Development Departaent KJH:lab:0161N COMMISSION MEETING Meeting Date: 05/06/91 o o o o 1 2 3 4 5 6 7 8 9 10 11 12 13 Action to be 14 Taken: 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Item: To be Published: Newspaper: o MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AGENDA April 15, 1991 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN LOAN AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO (WEST SIDE PLAZA PROJECT) Exhibit "A" - Loan Agreement Adopt Resolution N/A N/A certified copy of Resolution to be returned to Sabo & Green, A Professional Corporation. IIIIlOIOOP2IOII -"lf1ilOO ~l~" o o o o Q RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN LOAN AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO (WEST SIDE PLAZA PROJECT) WHEREAS, the Community Development Commission of the Redevelopment Aqency of the City of . San Bernardino (the "Aqency"), is a redevelopment aqency, a public body, corporate and politic of the State of California, orqanized and existinq pursuant to the Community Redevelopment Law (Part 1 of Division 14 15 24) commencinq with Section 33000 of the Health and Safety Code of the State of California (the "Act"); and 16 17 18 19 20 21 22 23 24 by owners thereof or by parties seekinq to acquire real property 25 26 WHEREAS, the Redevelopment Plan for the Northwest Redevelopment Project (the "Redevelopment Plan") was previously approved and adopted by the Mayor and Common Council of the City of San Bernardino (the "Council") by Ordinance No. MC-189, dated July 6, 1982; and WHEREAS, the Redevelopment Plan provides for the redevelopment of real property pursuant to the Redevelopment Plan from the Aqency; and 27 28 WHEREAS, the Aqency has previouSly entered into a certain Disposition and Development Aqreement by and between the - 1 - o o o o Q 1 Redevelopment Aqency of the City of San Bernardino and New 2 Frontier Commercial Properties, Inc. (the "DDA"), pertaining to 3 the development of a certain shopping center within the project 4 area subject to the Redevelopment Plan (the "Project"); and 5 6 7 8 9 10 11 WHEREAS, in connection with the proposed amendment to 12 the DDA, the city has found it necessary to enter into a certain 13 Loan Agreement (the "Loan Agreement") by and between the city of 14 San Bernardino (the "City") and the Agency pertaining to the use 15 of certain Community Development Block Grant funds in connection 16 with the development of the Project; and 17 18 19 20 21 22 23 WHEREAS, the Loan Agreement provides for a loan of 24 Community Development Block Grant funds in an amount of $450,000 25 from the city to the Aqency the proceeds of which are to be used 26 by the Aqency in connection with the development of the Project. 27 28 WHEREAS, in connection with the implementation of the DDA, the Aqency has found it necessary to cause an amendment to the DDA pertaininq to the fundinq of certain Aqency redevelopment assistance as further provided in the DDA; and ~ WHEREAS, the Council deems it desirable to enter into that certain Loan Agreement, a copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference, which pertains to the fundinq of the Project; and - 2 - o o o o o 1 NOW, THEREFORE, BE IT RESOLVED, BY THE MAYOR AND COMMON COUNCIL 2 OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, 3 RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 4 5 6 7 8 Section 2. The Council authorizes the Mayor and 9 City Clerk to execute the Loan AlJreement and to execute Such 10 other documents as IIllY be necessary to impl_ent the Loan 11 AlJre_ent and to make any necessary non-substantive changes to 12 the Loan AlJre_ent as may be approved by the City Attorney. 13 III 14 III 15 III 16 I II 17 III 18 III 19 I I I 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III Section 1. The Council hereby approves the Loan Agre_ent, a copy of which is attached hereto as Exhibit "A". - 3 - o o o o o 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN LOAN AGREEMENT BY AND BETWEEN THE 2 REDEVELOPMENT AGENCY OF '!'HE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO (WEST SIDE PLAZA PROJECT) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Sec'tion 3. This Resolution shall take effect upon aCloption. I HEREBY CERTIFY that the foreqoinq resolution was C1uly aClopteCl by the Mayor anCl Common Council of the City of San BernarClino at a , JIIeetinq thereof, helCl on 'the Clay of , 1991, by the followinq vote, to wit: AYES: Council Members NAYS: ABSENT: City Clerk The foreqoinq resolution is hereby approveCl this day of , 1991. Mayor of the City of San Bernardino ApproveCl as to form anCl leqal JAMES F. PENMAN City Attorney ~y: / y At ey 11 content: - 4 - o o o o o 1 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO 2 CITY OF SAN BERNARDINO 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ) ) ) ss I, , Clerk of the City of San Bernardino, California, DO HEREBY CERTIFY that the foreqoinq and attached copy of the City of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Bernardino this day of , 1991. City Clerk of the city of San Bernardino . 27 28 o o 0 1 EXHIBIT "A" 2 LOAN AGREEMENT 3 4 5 6 7 8 9 . ~ 10 11 12 13 0 14 15 16 17 18 19 20 21 22 23 24 25 26 0 27 28 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o ,n.a. AI!DWa..._.1. THIS LOAN AGUEMBBT dated , 1991, by and between the Redevelopment Aaency of the City of San Beruardino (hereinafter called the "BORROWER") and the CITY OF SAN BBRRARDIBO (hereinafter called the "LEmlER"). WHEREAS, the BORROWER has applied to the LEIDER for a Loan for the purpose of construction of the West Side Plaza on the comer of Baseline and Medical Center Drive (hereinafter the "PROJECT") aa described in the legal description set forth in the attached Exhibit "A". WHEREAS, the purpose of the Loan, as hereinafter defined, is to enable the future conatruction of a neiahborhood shopping center, resulting in employment opportunities to the reaion's low and aDderate income work force, and: WHEREAS, C_ity Development Block Grant (CDBG) funds have been made available to the LEIDER by the United States Department of Housing and Urban Development (BUD) on the condition that the CDBG funds, notwithstanding the Loan, as hereinafter defined, of 8ame to BORROWER shall, as necessary, be at all tiaes iamediately available for 8uch CDBG proarammed purposes as may from time to tiae be determined by LEIDER and BUD, and; WHEREAS, such short term use of CDBG funds have been found necessary and appropriate by the Mayor and COIIIIIon Council, and; WHEREAS, the LEIDER is willing to lIIalte such a loan to the BORROWER on the terms and conditions set forth. ROW, TJllREFORE, in consideration of the IIUtual covenants and aareements contained herein, the parties hereto aaree as follows: ArrTl!r.W WI" TBI LOAN SlmOll 1.01: ",.. Loan. Bote..... Rate Subject to the terms and conditions of this Loan Aareement, the LENDER hereby aarees to lend the BORROWER, and the BORROWER hereby agrees to borrow from the LEIDER and repay the LENDER or its Assians, the amount of FOUR-BUNDRED, FIfTY-THOUSAND DOLLARS ($450,000.00) (hereinafter called the "Loan"). The obiigation of the BORROWER to repay the Loan shall be evidenced by the Promissory Rote (hereinsfter called the "Rote") of the BORROWER in a form 8Btlafactory to the LENDER (or in the form of Exhibit "B" attached hereto) dated the date on which the Loan is made (hereinafter known as the "Closing Date") payable to the order of the LENDER for the amount of the Loan without interest. The Rote shall be secured by an unconditional, irrevocable Letter of Credit, payable upon demand (hereafter the "Letter of Credit) in a form approved by the LEmlER. BORROWER and LEIDER agree that if the Project costs are less than $450,000.00, the Loan amount shall be reduced to the actual Project cost. The Project cost shall be construction, siteT -1- KJH:lab:1373C May 3, 1991 EXHIBIT "A" o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o improvements, soft costs, professional fses, Letter of Credit, and other related eliaible costs as permitted b1 BUD reaulations and aareed to by the LEImER. SECTIOlI 1.02: ""'" re_ ..... Reo""lI!!Ilt The term of the Loan shall be for four (4) years, except that the Note shall be repayable on demand, provided that not less than ten (10) days written notice is required if the BORROWER is not in default of BORROWER's obliaationa. If prior demand 18 not made, the paymll!!llt of principal shall be due and payable on Said paymll!!llt shall be lIade upon the Letter of Credit beina called b1 LEImER. LEImER lIaltes no cOllllllitllent to future support and assures no obli.stiona for future support, except as expressly set forth in th18 Loan Aareement. SECTIOB 1.03: ParDo.e of Loan The purpose of the Loan is solely to "conatruct" the real property (includina on-site improvements, tenant improvements, professional fees, interim costs and developer profit and overhead) described in the attached Exhibit "A". BORROWER sarees that it shall apply the funds received by it under this Loan Aareement in accordance with the uses permitted in this Loan Aareement. BORROWER further aarees that no application of any funds received froll LEImER hereunder shall be ..de in violation of the laws of the State of California, or the aovernina BUD reaulations. SECTIOB 1.04: Letters of Credit The Note shall be secured by an unconditional, irrevocable Letter of Credit, payable upon demand, and in a form of approved b1 LIlmER addressed to LEImER as beneficiary. The Letter of Credit shall have expiration dates which shall be one-hundred, twenty (120) days lonaer than the due date as set forth in the Rote. The Letter of Credit shall be in the amount of FOua-BllRDRED, FIFTY-THOUSARD DOLLARS ($450,000.00). Payment on the Letter of Credit shall be on demand but not less than ten (10) days written notice if the BORROWER is not in default of BORROWER's obliaationa. Payment on the Letter of Credit shall not be conditioned upon any action or ollission to take such action on the part of LENDER, whether under th18 Loan Aareement, or under the terms of any document executed or delivered hereunder or otherwise. Reither the acceptance of, the transfer of, or receipt of lIonies under the Letter of Credit shall in any lIanner relieve BORROWER of any obliaation hereunder or under the terms of any document executed or aiven herewith, except to the extll!!llt paymll!!llt is actually received under the Letter of Credit. .ARTI1!f.. "II" IlEPRESEII1'.UIOB AIm va_alftS The BORROWER represents and covenants the followina: SECTIOR 2.01: Dulv OrB_hed -2- ICJH:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o rile BORROWER 18 duly orlanized, validly existilll and in lood standing under the lsws of the State of California and has the power to enter into this Loan Alreement to borrow. SBerIOJI 2.02: Daly A"t-l",dzed rile lIBkilll and the performance by the BORROWER of th18 Loan Alrelll!lent, and the execution and delivery of the Rote, and ~ security earelll!lents and instruments have been duly authorized by all necesssry actions and w111 not violate ~ law, rule, rqu1ation order, writ, judpent, decree, determination or award presently in effect havilll applicability to the BORROWER or ~ provision of BORROWER's Articles of Incorparation or resul t in a breach of ~ credit slreement or ~ other eare..ent or instrument to which the BORROWER is a party or by which it is or its property I118Y be bound or affected. SBcrIOB 2.03: 1~..11v B4ft~fft. Tft-traaent. When this Loan Alreement 18 executed by the BORROWER and the LENDER, and when the Rote and the Letter of Credit are fully executed and delivered by the BORROWER, each such instrument shall constitute the 1elal, vslid, snd bindilll ob1ilation of the BORROWER and on the financial institution issuing the Letter of Credit in accordance with its terms. SBerIO. 2.04: .0 Leaal Acti..... rIlere are no 1ela1 actions, suits, arbitrations, or proceedillls pendilll or to the bow1edie of the BORROWER, threatened alainst the BORROWER or business of the BORROWER, before ~ court or administrative alency, which, if determined adverSely to the BORROWER, would interfere with the BORROWER's performance of th18 Loan Alreement or the Project for which the Loan was made. SBerIO. 2.05: .0 Lt....l A"t-hnrlzation Reeded Ro authorization, consent or approval or ~ forms1 exemption of any loverumenta1 body, relu1atory authority (federal, state or local) or mortlalor, creditor or third party is or was neceasary to the valid execution and delivery by the BORROWER of this Alrelll!lent, the Rote, the Letter of Credit, or ~ other document except as provided for under Sections 3.03 and 3.04 herein. SBerIO. 2.06: Rot in Default rile BORROWER 18 not in default of ~ oblilation, covenant or condition contained in ~ bond, debenture, note, or other evidence of indebtedness or ~ mortlale, Deed of Trust or collateral instrument securing the same, except as disclosed in writilll to LENDER, and consented by LENDER and/or LENDER's counsel prior to the C10silll Date. SBerIOR 2.07: Proiect I_I_entation rile schedule of activities surroundilll the Project shall adhere to -3- IJR:1ab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o the following time sChedule and is so certified by the BORROWER: A. The escrow for the conatruction of the real property described in EXhibit "A" shall close on May 1, 1991 or as mutually agreed upon by both parties. B. The shoppina center shall open its doors for business on or before May 1, 1992. C. Two-hundred, forty-eiiht (248) jobs as required by Section 4.14 will have been created by November 1, 1992. RCTIOR 2.08: ........s are Paid The BORROWER has filed all tax returna which are required and has paid or ..de provision for the payment of all taxes which have or may become do pursuant to said returna or pursuant to any assessments received by them. No tax liability has been asserted by the Internal Revenue Service or other taxing &lency, federal, state, or local for taxes ..terially in excess of those already provided for and the BORROWER knows of no basis for any such deficiency assessment. RCTIOR 2.09: 110 Adverse 1!h....41 The BORROWER certifies that there are no mutUal adverse chanaes since December 31, 1990 in its financial condition, organization, operation, fixed properties, real properties, or management personnel of the BORROWER that have not been disclosed in writing to LEIDER prior to the Loan Closing. .WII!I.'R "III" COlIDITIOU 01' LDDDG The Obligation of the LEIDER to make the Loan shall be subject to the fulfilllllent at the time of Loan Closing and the continued fulfillment of each of the following conditional RCTIOR 3.01: beeuti\lll..... De1iverv of Rote. 1"11.. Loan hreement. Letter of Cradit: ...... Relat:tI!d Da~M1t. The funding of the Loan is predicated on receipt of the following documents: A. The receipt by LEIDER of suCh documents, certifications and opinions as may be reasonably satisfactory to LEIDER, evidencing that this Loan Agreement, the Rote, the Letter of Credit and all other documents given or executed in connection herewith are duly and validly executed by and on behalf of and constitute the valid and enforceable obligations of BORROWER thereunder pursuant to the respective teras of eaCh, and that the execution and delivery of this Loan Agreement, the Rote, the Letter of Credit and all other documents executed or liven hereunder and the performance by BORROWER hereunder will not breaCh or violate any provision of Borrower's Partnership Agreement, or any law or gove1'lllllental regulation or constitute any breach or -4- ICJH:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o default under any iDStr1lllent or aareement to which BORROWER may be a party. B. the continued availability to LERDBR of $450,000.00 in proceeds of oblicated but not liquidated Community Development Block Grant funds. C. BORROWER shall have executed and delivered thia Loan Aareement, the Rote, the Letter of Credit and any and all other documents to LERDER which LERDER may deem reas0D8bly necessary with respect to the Loan in a form and in terms and conditioDS satisfactory to LERDER and its cOUDael. D. the receipt of documentation satisfactory to LERDER eVidencing the fact that the Loan proceeds are beina used for the cODStruction of the real property of the Project. the LERDBR shall have the daht to fund the Loan throush escrow. SBerIO. 3.02: --cution..... DeliverY of Letter of Credit BORROWER shall have lendina iDStitution(s) approved by LERDER execute and deliver to LERDBR an irrevocable Letter of Credit in a form satisfactory to LERDBR and its COUDael aivina LERDBR a total not to exceed $560,000.00. Said Letter of Credit is to secure payment of the principal amount of the Rote, and any other sums due and payable by BORROWER hereunder. IBerIOB 3.03: "..ft__...~.. 2M1tft. aft" Code. BORROWER has complied and will continue to comply with all applicable environmental statutes and reaulatioDS in connection with the development of the Project. All permits, cODSents, approvals and authorizatioDS by, and reaistrations and declarati0D8 necessary for the development of the Project, shall be obtained, and will be valid, adequate and in full force and effect for any of the development activities for which a permit, c0D8ent, approval or authorization is necessary. Development of the Project will in all respects conform to and comply with all covenants, conditioDS, use and buildina codes, laws, reculati0D8 and ordinances. SBerIO.3.04: ADIlr_al of Othera the BORROWER shall secure all neceaaary approvala and cODSents, if required, of aovernmental bodies havina jurisdiction with respect to any portion of the cODStruction contemplated. the BORROWER shall secure all necessary approvals and CODSents required with respect to this transaction by any mortcacor, creditor or other party havina any financial interest in the BORROWER. SBerIO. 3.05: ODf"fon of ,.........el LERDER ahall receive an Opinion of COUDael from BORROWER stating that (i) BORROWER's RepresentatioDS and Warranties were true and accurate on the Cloaina Date; (H) the COnditiODS of the Loan have been duly satisfied as of the Closina Date, and; (iii) all representati0D8, warranties, covenants and conditioDS continue to be true, accurate and in effect throushout this Loan Aareement. -5- ItJH:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o ....,.,.I!r.. WIV" An'I1III&UVB COVDAlIrS OF rill BODOWBR AIID r:rt&1l'IflOR BORROWER aareea to comply with the followilll covenmta from the date hereof until the LElUlBR hal been fully repaid with intereet, unless the LBNDER or ita Aesians ehall otherwiee consent in writilll. aCTIOB 4.01: P........t of t-h. Loan The BORROWER eareee to pay punctually the principal and the Note accordilll to ite terma and conditione and to pay punctually any other amounts that may become due and payable to the Lender under or pursuant to the terms of this Loan Alreement or the Bote. ueno. 4.02: Satfafaetf.DD. oE Dt:h~r Obl:l..tiftfta The BORROWER eareee to pay punctually the principal and interest due on any other indebtedneee now or hereafter, at any tille willi by the BORROWER to any other lender. SBCTIOB 4.03: Kambom..... In......e Prooertv The BORROWER aarees to insure the Project at all timee and at all timee ..intain &lseta acquired with thie Loan and the Ihoppilll center in such condition and repair that the value of the land and 1iIprovementa therein wUl be adequately ..intained and protected. BORROWER aleo aareee to insure the project and ..intain durina the term of the Loan adequate hazard insurance policies coverilll fire and extended coveraae and euch other hazards as may be deemed appropriate in amount I and form satiefactory to LElUlBR, with the LENDER as an additional ineured with a loes payee clause acceptable to LENDBR. BORROWER further earees if at any time durilll the life of the Loan the Project ie declared to be within a flood hazard area, to insure purchaae of Federal Flood Ineurance if available. Such insurance, to the extent available, shall be in an amount equal to the areater of: (1) the amount of the Loan; (11) the insurable value of the Project, or; (iii) the maximum limit of coveraae available. If the property ie not located in a flood hazard aree at the time of the Loan Cloeilll date, BORROWER will provide aatiefactory evidence thereof. BORROWER further aareee to insure the Project and to ..intain adequate liability and Workere' Compensation Insurance in amounts and form satiefactory to the LBNDBR. SBCTIOB 4.04: Pav All 'I'.Y.II The BORROWER aarees to insure the Project and duly pay and discharge all taxes, assessments and aovernmental charaes upon it or aaainst its properties prior to the date on Which the pensltiee attache thereto; except that the Project shall not be required to pay any such tax, assesament or aoverniDental charae Which is beina contested by BORROWER in aood faith and by appropriate proceedillls. SBerIOB 4.05: Provide '....itl.....l Bauitv -6- IOH:lab:1373C May 3, 1991 ~ o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o BORROWER aarees to insure the Project is provided additional equity funds to cover additional Project costs incurred as a result of overruns or unanticipated expenaes or chan&es in work orders in the Project. SBCTIOK 4.06: llaintain bfatence BORROWER ..rees to maintain its existence, riihta, privileaes, and franchises within the State of California until the Loan has been repaid to LEImER in full. SBCTIOK 4.07: ProTide ".......tal Infomation Until the Loan is repaid, the BORROWER will insure thst the Project maintains adequate records and books of accounts, in which complete entries will be made reflectina all of the Project's business and financial transactions. Such entries are to be made in accordance with consistently applied, aenerally accepted account ins principles and practices. In addition, the BORROWER ..rees to deliver to the LEImER annual Project financial statements. Annusl financial statements of BORROWER are to be prepared b7 an independent accountant and certified by an authorized officer of the BORROWER to be true and accurate copies, and are to be submitted to LEImER with ninety (90) d87s of the close of the annual period. BORROWER ..rees to provide any additional financial information on the Project as it becomes available to BORROWER, includins, but not limited to, copies of Project income tex returns and instruments and information as ma7 be reasonably requested b7 the LEImER, its Assians or Counsel. The BORROWER further ..rees to provide written notice to the LENDER of any trial, pUblic hearins or meetins before any administrative or other public aaency which may in any manner, effect the personal property or real estate of this Project. SBCTIOK 4.08: Jtiaht to r......ction BORROWER aarees to arant the LEImER, until the Kote has been fully repaid, the riaht at all reasonable hours to lnapect the real estate, improvements placed thereon and all personal propert7 and fixtures of this Project and the BORROWER further ..rees to provide LEImER free access to the Project propert7 for the purpo.e of such inspection to determine the condition of the Project's property and real e.tate. SICTIOK 4.09: bll ..... Void ,,--...t. BORROWER aaree. that in the event that any provision of this Loan Aareement, or any other instrument executed at Closins or the application thereof, to any person or circumstances, shall be declared null and void, invalid, or held for any reaaon to be unenforceable b7 a Court of competent jurisdiction, the remainder of this Aareement shall nevertheless remain in full force and effect, and to this end, the provisions of all covenants, conditions, and aareements described herein are deemed separate. -7- XJB:lab:1373C May 3, 1991 .. o o o o o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IBcrIO.4.10: ~"'.ea~" Cla.in. Costs BOIlOWER qreas to pay all fees, expenses snd charaes in &IIY way connecte~ to the Loan, its lIIaltiua or transfer, therewith ineludina, but not limite~ to, the fees an~ out-of-pocket expenses of counsel employe~ by the LBlmBR an~ &IIY tues, fees snd expenses payable in connection with this transaction and with the enforcement of this Loan .\areaent, Bote, an~ the Letter of Cre~it. A reasonable amount ahall be withhel~ frQB ~isbursement of the Loan procee~s for the payment of these costs snd expenses. IBerIOB 4.11: Botice of Default BOIlOWER &lrees to aive written notice to LBlmBR, within fifteen (15) ~ays, of &IIY event which would conatitute an Event of Default un~er this Loan !areement or that would with notice or lapse of time or both, constitute an Bvent of Default ~er this Loan !areement. IBerIOB 4.12: Iud-ificaticm BOIlOWER &lrees to Wemnify snd aave the LBlmBR snd its Asdps harmless aaainst &IIY snd all liability with respect to, or resultina from any obliaation of the BOIlOWER. acrIOK 4.13: ~._ of Col1eetiaa.. Dr .'oP,.--.t BOIlOWER aarees, if at &IIY time BOIlOWER defaults on &IIY provision of this Loan !areement, to pay the LBlmBR or its Asdans, in a~~ition to &IIY other amounts that may be ~ue from the BOIlOWER an &IIount equal to the costs snd expenses, of collection, enforcement or correction or waiver of the ~efault incurre~ by the LBlmBR or its Assi&JUI in such collection, enforcement, correction or waiver of ~efault, includina but not limite~ to attorney fees snd costs of litilation. IBerIOB 4.14: Bev _II Retah,"" Po.iti..... Reauird A. In conaideration for the Loan ma~e by the LBlmBR, BOIlOWER &lrees to expsnd the Project's aployment base by a minimum of Tvo-Bun~red, Forty-eiaht (248) permanent, new full time employment positiona or full time equivalents (FTBs) over an~ above the Project's full time employment baae at Loan Closina Date which LBlmBR an~ BOIlOWER alree is zero (0). Full time positions are positions requirina forty (40) hours a week per employee. For calculation purposes, two (2) part-time employees shall be considere~ one (1) FTB. C. BOIlOWER &lrees that at least one-hun~re~, sixty-one (161) (i.e. sixty-five percent 65X)) of the two-hun~red, forty-eiaht (248) FTE positions will be (i) held by, or; (ii) ma~e available to qualifie~ persons (i.e., referral or assistance eliaible) ~er the catelories liste~ on the attache~ Exhibit "D". Employment Information FOrll or persons whose current family incQBe level is less than that shown on attache~ Exhibit "D", Employment Information Form. BOIlOWER alrees to have sll prospective -8- JtJB:lab:1373C May 3, 1991 .. o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o I!IIIployment applicmte complete the IIIIployment Information Form. D. BORROWER aarees to file and ..intain completed employment information forma separated into four (4) cateaories. 1) Full Time Hires below Income Criteria or Referral/ABsistmce Iliaible. 2) Full Time Hires above Income Criteria. 3) Part Time Hires below income Criteria or Referral/Assistmce Iliaible. D. Upon documentation of at least two-hundred, forty-eiaht FTE hires md at least one-hundred, sixty-one (161) income eligible placements, BORROWER shall submit to LlRDIR, copies of all IIIIployment Information Forms accompanied by m inventory sheet listin& the number of forma collected under each of the four (4) categories under Section 4.l4(C). I. Should the Job creation and income eligible placement goals not be met by the end of thirty (30) aontha after Lom disbursement, BORROWER shall at that time, submit all available documentation required under this Section including documentation for those BOr HIRED. The purpose is to ascertain proaress towards aeeting projected overall Job creation aoals, to determine the number of targeted positions failing short of placement md to determine the number of income eligible persona that were interviewed (and not hired) to fill the shortfall. F. Upon review of Section 4.14(1) documentation, LENDER will determine if satisfactory measures have been taken to make targeted jobs available to income eliable persona. Job Training md Partnership Act (hereinafter "JrPA") referrals who are interviewed, althoUah not necessarily hired, for unfilled taraeted positiona will satis~ this purpose. Failure to take astisfactory aeasures, as determined by LENDER at its sole discretion, to make the targeted Jobs available to income eligible persons 1s m Event of Default. SECTION 4.15: Third PartY hreementa A. BORROWER agrees to inaure that when the Project developer enters into my agreement with a third party Which conveys my leasehold interest in the real property or improvements covered by the terms of this Lom Agreement that said third party shall execute m aareement with the Project developer indicating the third party will use their best efforts to comply with the auidelines for hiring employees as set forth in Section 4.14. The agreement shall obligate the third party to provide BORROWER with the documentation required under Section 4.14 which BORROWER is required to submit to LlRDER. The use of best efforts by the third party shall not relieve the BORROWER from its responaibility md obligation to provide employment required under Section 4.14. -9- JCJH:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o ~ j . .,... ~ o o B. A copy of alreement(s) entered into by the Project developer with third parties whiCh transfer an interest in the Project or its improvements shall be delivered to LEIDER within fivs (5) days of the execution of aaid slreements(s) between the Project developer and any third party(ies) that conveys the interest. . .AV'nI!l.1l! "V" DGArIVB covmwr.rS OF DB BORROWER BORROWER covenants and sarees that, from the date hereof until pa,.ent in full of the Rote, 1II11sss the LEIDER or its Assians shall otherwise conaent in writlna, BORROWER shall ncit enter into aD7 sareement or other cOBlitllent the perforaance of whiCh would constitute a breach of aD7 of the covenants contained in this Loan qreement includina but not limited to the followina covenants: aCTION 5.01: Sale of the AcauisitiDll Asaets So lona as the Rote is unpaid the BORROWER ahall not permit the sale, conveyance, lease (u:cept in the normal course of operation of the Project), aasiaument, transfer or Other disposition of the Project's Assets unless approved in writlna by the LEIDER whiCh approval shall not be unreasonably withheld. aCTIO. 5.02: I!haft_e o.m.e...1I4D BORROWER will not permit without the written permission of LENDER, whiCh permission shall not be unreasonably Withheld, aD7 Ch8D&e in the ownership structure, control, or operation of the Project developer, inClUding but not limited to: (1) aerIer into or consolidation with aD7 other person, firm or corporstion; (ii) Ch8D&es in the composition of its Partners; (iii) Ch8D&ina the nsture of its business as carried on on the date hereof, or; (iv) aubstantial distribution, liquidation or other disposal of the Project developer'S assets to its Owners. aCTION 5.03: r.h....e the Pro1ect BORROWER ahall not permit nor allow to exist without prior written consent from LERDER, whiCh permission shall not be unreasonably withheld, any material Chanae in the Project's plans and/or specifications which may be submitted to the LERDER. AftII!r.W "VI" BVDrS OF DEFAULT The entire unpaid principal of the Rote shall become and be illlllediately due and payable upon the written demand of the LEIDER or its Assians, without aD7 other notice or demand of aD7 kind or aD7 presentment or protest, if aD7 one or more of the events listed in this Article (hereinafter termed an "Event of Default") shall occur, whether voluntarily or inVOluntarily, with or without limitation, occurrina or brouaht about by operation of law or pursuant to or in compliance with aD7 jUdpent, decree or -10- JCJB: lab: l373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o - - ~ o o order of any court or any order, rules or reau1ation of any administrative or aoverDlllental bOdy, provided, however, that such S1lll Bhall not be then payable if BORROWER's PllYlllents have been waived, or the time for ..Idna the Borrower's payments have been extended by the LBBDER. SBerIO.6.01: Late P--t of 1.0_ If the BORROWER shall fail to make payment when due of any installment of principal on the .ote, or intereat accrueci thereon the funds due shall accumulate interest until paid by the BORROWER. Acceptance of any late PllYlllent Bha11 not constitute a waiver of BORROWER's default with respect to the overdue amount or satis(y BORROWER's ob1iaation to pay interest on the late payment, or prevent LBRDER from exercisina any of the other riahts and remedies available to LEimER. PllYIIIent not paid when due shall bear aimp1e interest from date due until paid at the rate as set forth on the Note. SBClIOB 6.02: I1leDrreet. ReDr_entat:f.on Dr VarranN If representations or warranties contained in, or ..de in connection with the execution of, or delivery of, this Loan Aareement, or in any certificate furnished pursuant hereto, Bha11 prove to have been incorrect when made in any adverse respect. IBerIOB 6.03: Default in r.-......t. If the BORROWER shall default in the performance of any other term, covenant or aareement contained in this Loan Aareement, and if any such default shall continue unremedied for five (5) days after either: (i) it becomes known to an executive officer of the BORROWER, or; (ii) written notice thereof shall have been aiven to the BORROWER by the LBRDER. IBerIO. 6.04: VoluntarY T...ob........ If the BORROWER Bha11 become insolvent or cease to pay its debts as they mature or shall voluntarily file a petition in baukruptcy or s petition seekina reoraanization, or the appointment of a receiver, trustee, or liquidator for it or a substantial portion of its asaets, or effect a plan or other arranaement with creditors, or Bha11 be adjudicated baukrupt, or shall make a voluntary assigoment for the benefit of creditors. SBCTIO. 6.05: Invo1untarv IIlBo1venev If any involuntary petition shall be filed aaainst the BORROWER under any bankruptcy, insolvency or similar law seekina the reoraanization of or the appointment of any receiver, trustee or liquidator for the BORROWER, or of a substantial part of the property of the BORROWER or if a writ or warrant of attaChment or similar process shall be issued acainst a .ubstantia1 part of the property of the BORROWER, such petition shall not be diamissed or such writ or warrant of attaChment or similar process shall not be released or bonded, within fifteen (15) days after filina of levy. SlCTIO. 6.06: .J.......ents -11- IOH:1ab:1373C May 3, 1991 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 o 27 o o 28 ~ .ll - o o If any final judpent for the payment of money that is not fully covered by liability inaurance and ia in exceas of $10,000.00 shall be rendered aaainat the BODOWD, and ahall not be diseharaed within thirty (30) daya, or an appeal therefrom taken and execution thereon effectively stayed pendina sueh appeal and, if sueh appeal, and if aueh juclament affirmed on such appeal, the same ahall not be diseharaed within thirty (30) days. "IPI'II!I.W WVII" mSI!RI.T."IIRnUS SBCTIOJI 7.01: Waber of .otice Bo failure or delay on the part of the LIlmER in exercisina any riaht, power, or remedy hereunder ahall operate as a waiver thereof, nor shall any ainale or partial exercise of any aueh riaht, power, or remedy preclude any other or further exercise thereof or the exerciae of any other riaht, power or remedy hereunder. Bo modification or waiver of any provision of this Loan Aareement or of the Bote or of the Letter of Credit, nor any conaent to any departure by the BORROWER therefrom, ahall in any event be effective unle.. the aame ahall be in writina and then neh waiver or conaent shall be effective only in the apecific inatance and for the apecific purpose for which aiven. Bo notice to or demand on the BORROWER ahall in any case entitle the BORROWER to any other or further notice or dl!llllU1d in aWler or other circUllBtancea. SBCTIOJI 7.02: &.-....il!!D.t. The BORROWER, LIlmER and its Asaiana hereby ezpressly reserve all riaht. to amend any provisions of thia Loan Aareement, to conaent to or waive any departure from the proviaiona of this proviaiona of the Bote, or to release or otherwiae deal with any collateral aecurity for payment of the Note provided, however, that all neh amendments be in writina and executed by LENDER or its Aaaiana, and BORROWER. SECTION 7.03: .otic.. All noticea, conaenta, requeata, dl!llllU1da and other communications hereunder shall be in writina and be duly aben to a party hereto by personal delivery or mailed by certified mail, prepaid, to the LIlmER or BORROWER at their addresses set forth at the aianature of the partiea to this Loan Aareement, or at auch other addresses as any party I18Y have desianated in writina to any other party hereto and Whieh notice shall be effective upon receipt. Receipt shall be five (5) days after mailina. aCTIO. 7.04: Survival of Renreaentat:i""a 11ft" Warranties All eareements, representationa, and warranties made by the BORROWER herein or any other document or certificate delivered to the LIlmER in connection with the tranaactiona contemplated by this Loan Aareement shall survive the delivery of this Aareement, the Note and the Letter of Credit, and shall continue in full force and effect so lona as the Rote is unpaid. -12- lOJI:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o L J o o SlCTIO.7.05: IDee-.-Dra 8ftd Aa.l~. ThiB Loan Aare_ent eJiall be bindina upon the BORROWER, their Successors and A88iane, except that the BORROWER IUI7 not Heian or transfer their riahte without prior written consent of the LElDBR. ThiB Loan Aareement shell inure to the benefit of the LElDBR, its Successors and Assigns, and, except as otherwise expressly provided in particular provisions hereof, all subsequent holders of the Bote. nerIOR 7.06: .blIl.I; LEIDER shell heve the riaht to require BORROWER to provide within a reasonable tille, a financial audit of BORROWER, b7 an independent certified public accountant chosen b7 LEIDER and paid for b7 BORROWER, if BORROWER is in default of &n7 of its covenants or obligations to LElDBR. ncrxOR 7.07: CcnmterDarts ThiB Loan .lare_ent IUI7 be executed in &n7 number of counterparts, each of which ahell be deemed an oridnal, but all of which together shall constitute one and the sUle inatrument. ncrxOR 7.0&: CloY.....f"" Law This Loan .lareement, the Bote and the Letter of Credit, shall be deemed contracts made under the laws of the State of California and for all purposes shell be construed in accordance with the lava of said state. In the event that &n7 action, at law or in equity, be c_enced b7 &n7 party against &n7 other party, the parties earee thet Jurisdiction and proper venue shell lie solely with the Superior Court of the State of California for the County of San Bernardino, or if the UIount in controverllY iB not sufficient for the jurisdiction of the Superior Court, then the venue and forum for such action ahell be the Municipal Court of the State of California for the County of San Bernardino. nerIOR 7.09: Attorlll!!V's Feu In the event either party ahell bring an action to enforce the terms and conditions of this Loan .lar._ent, the prevailing party ahell be entitled to recover all of its costs and expenses, includina, but not limited to, reasonable attorney's fees as determined b7 the court. SBerIOB 7.10: Conf1ict of Interest Bo member, official or employee of LElDBR shell heve &n7 personal interest, direct or indirect, in the subject matter of this Loan Agreement, nor ahall &n7 member, official or employee participate in &n7 decision relatina to this Loan Agreement which effects whether directly or indirectly, his or~her personal interests or the interests of &n7 corporation, partnership or association in which he or she has an interest. SBerIOB 7.11: Article"'~ Section R~~~f"". -13- , KJH: lab: l373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o Article and Section BeadiD&8 used in thi8 Aareement are for convenience on11< and shall not affect the construction of thiB Aareement. IN WITHESS WHEREOF, the partie8 hereto have each cau8ed thi8 Loan Aareement to be du11< executed a8 of the da1< and the 1<ear first written above. LBIIDBJl : BODOlIBR: crrr OP SAN _AIlnDO OFFICE OF CDII_ul DIVBLOl'IIIIr buJ5vAloOrnur AGIIICY OP 'fill CITY SAN _AltftIllO By: By: 1'ltle: Title: Dated: Dated: -14- ltJB: lab: 1373C May 3. 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o _Iwn IID'rJI: For value received, the underaiped, the Cit,. of San Bernardino Redeve101llDent Aaency, whoae principal office ia located at 300 Borth "D" Street, Fourth Floor, San Bernardino, California 92418 ("BORROWER"), promises to P87 to the order of the Departaent of Communit,. Devel01llDent of the City of San Bernardino (the "City"), a pUblic body corporate and pOlitic, at 300 North "D" Street, San Bernardino, California 92418, Attention: Mr. Eenneth J. Benderaon (or at auCh other addreaa as the Cit,. ..,. direct), the principal sum of FOUR-IIUlUlRID, nFrY-TJlOUSAlID DOLLARS (t450,000.00) or ao muCh thereof as ma,. be advanced hereunder frOll time to time, on the earlier of (i) LINDER's demand; (11) fort:y-ei&l1t (48) _the from the date hereof, unleaa extended, in the aole and abaolute diacretion of ita IXecutive Director, b7 written notice to the BORROWER liven at leaat thirty (30) da"8 prior to the fort,.-eiaht (48) month maturit,. date hereinabove aet forth, or; (iii) as otherwise provided in the Aareement (aa defined below). Th18 Demand Bote 18 ..de pursuant to the terma of the Loen Aareement dated as of , 1991 (the "Aareement") entered into between BORROWER and the Cit,., and 18 aecured b7 an irrevocable, unconditional and callable upon de.aa4 letter of credit (the "Letter of Credit") iS8ued by Wells Farao Bank for the account of BORROWER, in favor of the Cit,.. BORROWER ahall, upon de.aa4 b7 the Cit:y, p8:J to the City, aandatory prepayment8 (aa hereinafter defined) of principal at .auCh ttae8 and in 8uch amount8 aa the Cit,. ..,. dete~ne from time to time in ita aole discretion. As u8ed herein, ~datory Prepayment" means a demand for prepayment by the Cit,. for the partial or total prepayment of the principal due on the Loan evidenced b7 Wa De.aa4 Bote. In the event of a Mandatory Prepayment, the City &hall aive BORROWER ten (10) da:ya written notice prior to the date such prepayment is due. BORROWER shall al80 have the ri&l1t to make optional prepayments, at any time, without penalty, upon at least thirt,. (30) d878 prior written notice to the Cit,., provided any auCh notice of optional prepayment shall be irrevocable, and failure of BORROWER to malte auCh prep87aent within the time specified in 8uCh notice ahall conatitute a default hereunder. BORROWER hereb7 waives diliaence, preaentaent, demand, prote8t and notice of any kind what80ever. In the event of a default in the payment of principal or of interest on th18 Demand Bote, the City..,., among other remedies, declare the unpaid balance hereOf, toaether with accrued intere8t thereon, to be immediately due and payable. The Reference Rate shall be the announced prime or reference rate of Bank of America or a reasonably comparable bank chosen b the City. Overdue principal ahall bear intereat at the Reference Rate plus two-percent (2%) per annum (the "Default Rate") changing as and when such Reference Rate ..,. be changed, payable from the date of declaration of default by the City until payment to the Cit,. b7 BORROWER of all C08ts incurred in connection with the enforcement of this Demand Bote, inClUding attorneys' fees and costs, whether or not auit i8 filed, as is further provided in Section 4.13 of the Aareement. -15- JCJH:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o - L o o Upon occurrence of UI7 Event of Default ..t forth in the Aareement, and subject to UI7 applicable notice requirements and cure periods provided by the Aareement, the City may declare this Demand Rote ~ediately due and payable. If the Letter of Credit is not extended or renewed beyond each expiration date of the Letter of Credit, the Lender ahal1 have the riaht to make .immediate demand on the Rote and the Letter of Credit. Thia Demand Rote shall be construed in accordance with and loverned by the laws of the State of California. Failure of the City to exerdse any ri&ht or remedies hereunder shall not constitute a waiver of UI7 future or other default. Amendlllents to this Demand Rote shall be in writina and sianed by the party alainst who such amendlllent is sou&ht to be enforced. Dated as of: IUWJliv5L01IIa1' AGBIICt OF mE CIn OF SAIl _nnnro By: Executive Director -16- ICJB:1ab:1373C May 3, 1991 Q o o o o 1 2 3 4 5 6 7 8 9 Item: 10 11 12 13 14 15 16 17 18 19 20 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AGENDA April 15, 1991 RESOLUTION OF THE COMMUNITY DEVELOP){ENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN LOAN AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO (WEST SIDE PLAZA PROJECT) EXHIBIT "A" - Loan Agreement Action to be Taken: Adopt Resolution To be Published: NIA NIA Newspaper: Certified copy of Resolution to be returned to Sabo , Green, A Professional Corporation. 21 SBIlOIOOP2IOI7Ia 0UI0191149 22 23 24 25 26 27 28 ~ "[3" o o o J o o 1 2 3 4 5 6 7 8 9 10 11 12 13 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN LOAN AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO (WEST SIDE PLAZA PROJECT) WHEREAS, the COIIIIlunity Development Commission of the City of San Bernardino (the "Commission") on behalf of the Redevelopment Aqency of the City of San Bernardino (the "Aqency"), is a redevelopment aqency, a public body, corporate and politic of the State of California, orqanized and existinq pursuant to the Community Redevelopment Law (Part 1 of Division 24) commencinq with Section 33000 of the Health and Safety Code 14 15 16 17 18 approved and adopted by ,the Mayor and Common Council of the City 19 20 21 22 23 24 25 26 27 28 of the State of California (the "Act"); and WHEREAS, the Redevelopment Plan for the Northwest Redevelopment Project (the "Redevelopment Plan") was previously of San Bernardino (the "Council") by Ordinance No. MC-189, dated July 6, 1982; and WHEREAS, the Redevelopment Plan provides for the redevelopment of real property pursuant to the Redevelopment Plan by owners thereof or by parties seekinq to acquire real property from the Aqency; and WHEREAS, the Aqency has previously entered into a certain Disposition and Development Aqreement by and between the - 1 - o o o - o o 1 Redevelopment Agency of the City of San Bernardino and New 2 Frontier Commercial Properties, Inc. (the "DDA"), pertaining to 3 the development of a certain shopping center within the. project 4 area subject to the Redevelopment Plan (the "Project"); and 5 6 WHEREAS, in connection with the implementation of the 7 DDA, the Agency has found it necessary to cause an amendment to 8 the DDA pertaining to the funding of certain Agency redevelopment 9 assistance as provided in the DDA; and . 10 11 WHEREAS, in connection with the proposed amendment to 12 the DDA, the Agency deems it desirable to enter into a certain 13 Loan Agreement (the "Loan Agreement") by and between the Agency 14 and the City of San Bernardino (the "City") pertaining to the use 15 of certain Community Development Block Grant funds in connection 16 with the development of the Project; and 17 18 WHEREAS, the Agency deems it desirable to enter into 19 that certain Loan Agreement, a copy of which is attached hereto 20 as Exhibit "A" and incorporated herein by this reference, which 21 pertains to the funding of the Project; and 22 23 WHEREAS, the Loan Agreement provides for a loan of 21 Community Development Block Grant funds in an amount equal to 25 $450,000 from the City to the Agency the proceeds of which are to 26 be used by the Agency in connection with the development of the 27 Project. 28 - 2 - () o o o o 1 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION 2 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF 3 SAN BERNARDINO, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND 4 ORDER AS FOLLOWS: 5 6 7 8 9 Seet:ion 2. The COIDJIIission authorizes the Executf ve 10 Director of the Agency to execute the Loan Agreement and to 11 execute such other documents as may be necessary to implement the 12 Loan Agreement and to make any necessary non-substantive changes 13 to the Loan Agreement as may be approved by Agency Counsel. 14 III 15 I I I 16 I I I 17 III 18 I I I 19 I I I 20 III 21 I I I 22 III 23 III 24 III 25 III 26 III 27 III 28 III Section 1. The Commission hereby approves the Loan Agre_ent, a copy of which is attached hereto as Exhibit "A". - 3 - o o o 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN LOAN AGREEMENT BY AND BETWEEN 2 THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO (WEST SIDE PLAZA PROJECT) 3 4 5 6 7 8 9 10 11 12 13 ESTRADA REILLY 14 FLORES UDSLEY 15 INOR POPE-LUDLAM 16 LLER 17 18 19 20 - !. J.. o o Section 3. This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the foreqoinq resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meetinq thereof, held on the day of , 1991, by the followinq vote, to wit: . . AID ABSTAIN lfAU Secretary ay of The foreqoinq resolution is hereby approved this , 1991. w. R. Holcomb, Chairman Community Development Commission of the City of San Bernardino 17 - 4 - o o o o o 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) 2 CITY OF SAN BERNARDINO ) 3 4 5 6 7 8 9 10 11 ss I, Secretary of the Community Development Commission of the City of San Bernardino, DO HEREBY CERTIFY that the foreqoinq and attached copy of Community Development Commission of the City of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Community Development Commission of the City of San Bernardino this day of , 1991. . Secretary of the Community Development Commission of the City of San Bernardino 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o 0 1 EXHIBIT "A" 2 LOAN AGREEMENT 3 4 5 6 7 8 9 , . 10 11 12 13 0 14 15 16 17 18 19 20 21 22 23 24 25 26 0 27 28 o o o o o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 In.... ...~..--K_'I TIllS LOAIf AGIlIBMBM' dated , 19.91, by and between the Redevelopment !aency of the City of San Bernardino (hereinafter called the "BORROWER") and the CITY OF SAR BEIl1tUDIRO (hereinafter called the "LEImER") . WHEREAS, the BORROWER has applied to the LEImER for a Loan for the purpose of construction of the West Side Plaza on the corner of Baseline and Medical Center Drive (hereinafter the "PROJECT") as described in the legal description set forth in the attached Exhibit "A". WHEREAS, the purpose of the Loan, as hereinafter defined, is to enable the future construction of a nei&hborhood shopping center, resulting in employment opportunities to the resion's low and moderate income work force, and: WHEREAS, COIIIIIUIlity Development Block Grant (CDBG) funds have been made available to the LEImER by the United States Department of Rousing and Urban Development (BUD) on the condition that the CDBG funds, notwithstanding the Loan, as hereinafter defined, of same to BORROWER shall, as necessary, be at all times immediately available for such CDBG prosrammed purposes as may from time to time be determined by LEImER and BUD, and; WHEREAS, such short term use of CDBG funds have been found necessary and appropriate by the Mayor and Common Council, and; WHEREAS, the LEImER is Willing to make such a loan to the BORROWER on the terms and conditions set forth. ROW, THEREFORE, in consideration of the IlUtud covenants and agreements contained herein, the parties hereto agree as follows: ArrYI!r.W "I" THE LO.O' HCTIOR 1.01: ",.. Loan. Rote ..... lIate Subject to the terms and conditions of this Loan !areement, the LERnER hereby agrees to lend the BORROWER, and the BORROWER hereby agrees to borrow from the LEImER and repay the LEImER or its AssiSns, the amount of FOUR-HURDlED, FIFTY-THOUSAND DOLLARS ($450,000.00) (hereinafter called the "Loan"). The oblisation of the BORROWER to repay the Loan shall be evidenced by the Promissory Rote (hereinafter called the "Rote") of the BORROWER in a form satisfactory to the LERnER (or in the form of Exhibit "B" attached hereto) dated the date on which the Loan is made (hereinafter known as the "Closing Date") payable to the order of the LERnER for the amount of the Loan without interest. The Rote shall be secured by an unconditional, irrevocable Letter of Credit, payable upon demand (hereafter the "Letter of Credit) in a form approved by the LERnER. BORROWER and LERnER agree that if the Project costs are less than $450,000.00, the Loan amount shall be reduced to the actual Project cost. The Project cost shall be construction, site -1- IOR:lab:1373C May 3, 1991 EXHIBIT "A" o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o improvements, soft costs, professional fees, Letter of Credit, and other related eligible costs as permitted b7 BUD regulations and agreed to by the LENDER. UcrIOR 1.02: 'I'll.. rem...... .-....t The term of the Loan shall be for four (4) years, except that the Rote shall be repayable on demand, provided that not less than ten (10) days written notice is required if the BORROWER is not in default of BORROWER's obligations. If prior demand is not ...de, the payment of prinCipal ahall be due and payable on . Said payment shall be made upon the Letter of Credit being called b7 LENDER. LENDER ukes no cODIIDitment to future support and assures no obligations for future support, except as expressly set forth in this Loan Agreement. UcrIOR 1.03: ParDose of Loan The purpose of the Loan is solely to "conatruct" the real property (inclUding on-site improvements, tenant improvements, professional fees, interim costs end developer profit and overhead) described in the attached Exhibit "A". BORROWER acress that it shall apply the funds received by it under this Loan Agreement in accordance vith the uses permitted in this Loan Agreement. BORROWER further acrees that no application of any funds received from LENDER hereunder shall be ...de in violation of the laws of the State of California, or the governing BUD regulations. UcrIOR 1.04: Letters of Credit The Rote shall be secured b7 an unconditionsl, irrevocable Letter of Credit, payable upon demand, and in a form of approved b7 LENDER addressed to !.ENDER as beneficiary. The Letter of Credit shall have expiration dates which shall be one-hundred, twenty (120) days longer than the due date as set forth in the Rote. The Letter of Credit shall be in the amount of FOUR-BUNDRED, FIFTY-THOUSAND DOLLARS ($450,000.00). Payment on the Letter of Credit shall be on demand but not less than ten (10) days written notice if the BORROWER is not in default of BORROWER's obliaations. Payment on the Letter of Credit shall not be conditioned upon any action or omission to take such action on the part of LENDER, whether under this Loan Agreement, or under the terms of any document executed or delivered hereunder or otherwise. Reither the acceptance of, the transfer of, or receipt of monies under the Letter of Credit shall in any manner relieve BORROWER of any obliaation hereunder or under the terms of any document executed or aiven herewith, except to the extent payment is actually received under the Letter of Credit. AftJr.U! "II" IIPIISBIIUTIOR A1ID vana1lfS The BORROWER represents and covenants the following: SEcrIOR 2.01: Dulv Or..nfzed -2- KJH:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c o o o The BORROWER is duly oraanized, v.lid1y existiq and in aood standing under the 1.ws of the St.te of C.liforni. and has the power to enter into this Loan Aareement to borrow. SBCTIOB' 2.02: Dal" ~n..1t"rized The III81dq and the perforunce by the BORROWER of this Loan Aareement, and the execution and delivery of the lIote, and UIY security ..reements and instr1llllents have been duly .uthorized by all necen.ry .ctions and will not vio1.te UIY 1.w, rule, reau1ation order, writ, judament, decree, determination or .ward pre.ent1y in effect havina app1ic.bi1ity to the BORROWER or UIY provision of BORROWER's Articles of Incorp.r.tion or result in . breach of UIY credit aareement or UIY other ..reement or 1natr1llllent to which the BORROWER is . party or by which it is or its property ..y be bound or .ffected. OcrIOB 2.03: laa..l1... .tftll",. Tft.~....--~. When this Loan Aareement is executed by the BORROWER and the LENDER. and when the lIote and the Letter of Credit .re fully executed and delivered by the BORROWER, e.ch such inatr1llllent shall conatitute the l'aal, valid, .nd bindiq ob1ia.tion of the BORROWER and on the financi.1 inatitution issuing the Letter of Credit in .ccordance with it. terms. SICTIOll 2.04: 110 Lead Actf..... There are no 1ea.1 .ctiona, suits, .rbitr.tions, or proceedings pendina or to the kIlow1.dae of the BORROWER," thre.tened ..ainat the BORROWER or business of the BORROWER, before UIY court or .dministr.tive aaency, which, if determined .dversely to the BORROWER, would interfere with the BORROWER's perforunce of this Loan Aareement or the proj.ct for which the Loan was made. aCTIO. 2.05: a, LI!..l Aut-'h"rlutlcm. .eeded lIo .uthorization, conaent or .pproval or UIY formal exemption of any government.1 body, r'au1atory .uthority (fed.r.1, st.te or local) or mortaaaor, creditor or third p.rty is or was neceas.ry to the v.1id execution end delivery by the BORROWER of this Aareement, the lIote, the Letter of Credit, or any other document except .s provided for under Sections 3.03 and 3.04 herein. SBCTIOll 2.06: .ot in Def.u1t The BORROWER is not in default of UIY obliaation, covenant or condition contained in any bond, debenture, note, or other evidence of indebtedness or any morta.... Deed of Trust or collateral inatr1llllent securing the same, except .s disclosed in writiq to LBlIDIR, and conaented by LENDER end/or LElIDER's counsel prior to the Closing Date. SBCTIOll 2.07: Profect T....1..ent.tion The schedule of .ctivities surrOunding the Project shall adhere to -3- KJH:1.b:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o the following time .Chedule and i. .0 certified ~ the BORROWER: A. The ..crow for the conetruction of the r.al property described in EXhibit "A" .hall clo.e on May 1, 1991 or a. mutually agreed upon by both partie.. B. The .hoppina center .hall open its door. for buaineaa on or before May 1, 1992. C. Two-hundred, forty-eiiht (248) jobs a. required by Section 4.14 will have been created ~ Rovember 1, 1992. SBCTIOK 2.08: ,....... are Paid The BORROWER has filed all tax returns Which are required and has paid or made provision for the payment of all taxes whiCh have or may become do pur.uant to .aid returns or pur.uant to 8D1 a......ent. received ~ them. Ro tax liability has been a..erted ~ the Internsl Revenue Service or other taxing agency, federal, .tate, or local for tax.. materially in exce.. of tho.e already provided for and the BORROWER know. of no ba.i. for 8D1 .uch deficiency ..se...ent. SBCfI01I 2.09: Be>> AttY.". I!h~.e The BORROWER certifies that there ar. no mutUal adver.e Change. .ince December 31, 1990 in it. financial condition, oraanization, operation, fixed propertie., real propertie., or management per.onnel of the BORROWER that have not been di.clo.ed in writing to LEIDER prior to the Loan clo.ing. ArrII!I.w "III" COlIDrrIOIIS OF LllDIlIG The obligation of the LEIDER to lUke the Loan mall be .ubject to the fulfillment at the time of Loan Clo.ing and the continued fulfillment of each of the following conditional nCTIOK 3.01: -.eutian..... DeUverY of Ko~e. 111.. Loan Aueement. Letter of Crl!d.lt ..... R.lated DDP-I'allllt. The funding of the Loan i. predicated on receipt of the fOllowing docUlllents : A. The receipt ~ LEIDER of .uch docUlllent., certifications and opiniona a. may be rea.onably sati.factory to LEIDER, evidencing that this Loan Agreement, the Rote, the Letter of Credit and all other docUlllents given or executed in connection herewith are duly and validly executed by and on behalf of and conetitute the valid and enforceable obligatione of BORROWER thereunder pursuant to the re.pective terms of each, and that the execution and delivery of this Loan Aareement, the Rote, the Letter of Credit and all other docUlllent. executed or given hereunder and the performance by BORROWER hereunder will not breach or violate any provision of Borrower'. Partnership Aareement, or 8D1 law or governmental reaulation or constitute any breach or -4- JCJH: lab: l373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o default under an:y iutl'Ulllent or ..reement to which BORROWER IIaY be a party. B. The continued availability to LBBDBR of $450,000.00 in proceeds of Obligated but not liquidated C_ity Development Block Grant funds. C. BORROWER shall have executed and delivered this Loan Acreement, the Rote, the Letter of Credit and an:y and all other documents to LBRDBR which LEl'lDER may deem reasonably necessary with respect to the Loan in a form and in terms and conditiou satisfactory to LBBDER and its counsel. D. The receipt of documentation satisfactory to LEl'lDER eVidencing the fact that the Loan proceeds are being used for the construction of the real property of the Project. The LEl'lDER shall have the right to fund the Loan through escrow. SBcrIOB 3.02: beeutlon ...... Deliyer9 of' Letter of Credit BORROWER shall have lending iutitution(s) approved by LEl'lDER execute and deliver to LBRDIR an irrevocable Letter of Credit in a form satisfactory to LBRDER and its counsel giVing LBRDER a total not to exceed $560,000.00. Said Letter of Credit is to secure payment of the principal amount of the Rote, and an:y other s_ due and payable by BORROWER hereunder. acrID 3.03: CaY"'Mlta. 2tmf.... -..d CeNtea BORROWER has complied and will continue to comply with all applicable environmental statutes and regulations in connection with the development of the Project. All permits, consents, approvals and authorizations by, and registrations and declarations necessary for the development of the Project, shall be obtained, and will be valid, adequate and in full force and effect for an:y of the deVelopment activities for which a permit, conaent, approval or authorization is necessary. Development of the Project will in all respects conform to and comply with all covenants, cOnditiona, use and building codes, lsws, regulations and ordinances. SICTION 3.04: ADDrova1 of Others The BORROWER aha11 secure all necessary approvals and consents, if required, of governmental bodies having jurisdiction with respect to an:y portion of the coutruction contemp1sted. The BORROWER shall secure all necessary approvals and consents required with respect to this transaction by an:y mortgagor, creditor or other party having an:y financial interest in the BORROWER. SECTION 3.05: Doh.fon of "..._ad LBBDER shall receive an Opinion of Counsel from BORROWER stating that (i) BORROWER's Representationa and Warranties were true and accurate on the Closing Date; (ii) the conditions of the Loan have been duly satisfied as of the Closing Date, and; (iii) all representations, warranties, covenants and conditions continue to be true, accurate and in effect throughout this Loan Acreement. -5- ICJH:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o ArrTl!r.. -IV" APPIlIIIlnVI COVDAftS OF '!III BOIlROVD A1ID QI&I!&1ITOR BORROWER aarees to cOllply with the followina covenents froll the date hereof untll the LlRDER has been fully repeid with interest, unle88 the LENDER or its Assigns shall otherwise consent in writina. acrIO. 4.01: P___I: of the Loan The BORROWER aarees to pay punctually the principal and the Rote accordina to its terms and conditions and to pay punctually 8Dy other amounts that lIay becolle due and payable to the Lender under or pursuant to the terms of this Loan Agreement or the lfote. acrIOII 4.02: S.~l.f.et:ian Df O.h_r Obll..tions The BORROWER agrees to pay punctually the principal and interest due on 8Dy other indebtedness now or hereafter, at 8Dy tille owina by the BORROWER to 8Dy other lender. acrIolf 4.03: lIa:lnta:ln..... Tn...... ProDf!rtv The BORROWER agrees to insure the Project at all tilles and at all tilles maintain assets acquired with this Loan and the shoppina center in such condition and repair that the value of the land and improvements therein will be adequately l18inteined and protected. BORROWER also aare.s to insure the project and maintain durina the term of the Loan adequate hazard insurance policies coverina fire and extended coverage and such other hazards as lIay be deemed appropriate in amounts and form satistactory to LlRDER, with the LENDER as an additional insured with a loss payee clause acceptable to LINDER. BORROWER further aarees if at 8Dy time durina the life of the Loan the Project is declared to be within a flood hazard area, to insure purchase of Federal Flood Insurance if available. Such insurance, to the extent available, shall be in an amount equal to the areater of: (1) the amount of the Loan; (ii) the insurable value of the Project, or; (iii) ths maximum limit of coverage avallab1e. If the property is not located in a flood hazard area at the time of the Loan C10sina date, BORROWER w111 provide satisfactory evidence thereof. BORROWER further 8&rees to insure the Project and to maintain adequate liability and Workers' Compenaation Insurance in amounts and form satisfactory to the LINDER. SEcrIOlf 4.04: Pav All "._. The BORROWER aarees to insure the Project and duly pay and diSCharge all taxes, assesSllents and governmental charaes upon it or 8&ainst its properties prior to the date on which the penalties attache thereto; except that the Project shall not be required to pay 8Dy such tax, ..sesament or lovernmental charge which is beina contested by BORROWER in aood faith and by appropriate proceedinas. acrIolf 4.05: Provide '..diU.....t Ilauitv -6- ItJB: lab: 1373C May 3, 1991 o 1 2 8 4 5 6 7 8 9 10 11 12 18 14 15 16 17 18 19 20 21 22 28 24 25 26 27 28 o o o o BOllOWER aarees to insure the Project is provided additional equity funds to cover additional Project costs incurred as a result of overruns or unanticipated expenses or ehau&es in work orders in the Project. acrIO. 4.06: .in!:_'" RYt.t:"'ee BORROWER aarees to maintain ita existence. riahts. priVileges. and franchises wi thin the State of California until the Loan has been repaid to LERnER in full. acrIO. 4.07: ProYlde ""MI.-tal Tft'oraatlon Until the Loan is repaid. the BOlIOWER will insure that the Project maintains adequate records and books of accounts. in which complete entries will be made reflecting all of the Project's business and financial tranaactions. Such antries are to be made in accordance with consistently applied. generally accepted accounting principles and practices. In addition. the BOllOWER aarees to deliver to the LERnER annual Project financial Itatements. Annual financial Itatements of BOlIOWER are to be prepared by an independent accountant and certified by an authorized officer of the BOllOWER to be true and accurate copies. and are to be submitted to LERDER with ninety (90) days of the close of the annual period. BOllOWER agrees to provide aay additional financial information on the Project as it becomes available to BOlIOWER. inCluding. but not limited to. copies of Project income tax returns and instruments and information as may be reasonably requested by the LERDER. its Assiena or Counsel. The BOlIOWER further agrees to provide written notice to the LENDER of any trial. public hearing or meeting before aay administrative or other public aaency which may in aay manner. effect the personal property or real estate of this Project. SEerIO. 4.08: Riaht to Tn-veetion BOllOWER acrees to crant the LERDER. until the .ote has been fully repaid. the right at all reasonable hours to inspect the real estate. improvements placed thereon and all personal property and fixtures of this Project and the BORROWER further agrees to provide LERDER free access to the Project property for the purpose of such inspection to determine the condition of the Project's property and real estate. SBCTIO. 4.09: 111111 _II Void r:...._."t. BOllOWER agrees that in the event that aay provision of this Loan Agreement. or aay other instrument executed at Closing or the application thereof. to aay person or circumstances. shall be declared null and void. invalid. or held for aay reason to be unenforceable by a Court of competent jurisdiction. the remainder of this Agreement shall nevertheless remain in full force and effect. and to this end. the provisions of all covenants. conditions. and agreements described herein are deemed separate. -7- ICJB:lab:1373C May 3. 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o nerIOI' 4.10: bn.n_tPl8.ftft Cla.tft. Costs BORROWER aarees to pay ,all fees, expenses and charles in any way connected to the Loan, its lI8ltilll or tranafer, therewith including, but not limited to, the fees and out-of-pocJtet expenses of COUD8e1 employed by the LEImER and any tues, fees and expenses payable in connection with this tranaaction and with the enforcement of this Loan Alre_t, Bote, and the Letter of Credit. A reasonable amount shall be withheld from disbursement of the Loan proceeds for the paJaent of these costs and expenses. HCTIO.4.ll: .DUce of Default BORROWER alrees to live written notice to LEImER, within fifteen (15) days, of any event which would conatitute an Event of Default under this Loan Aireement or that would with notice or lapse of time or both, constitute an Event of Default UDder this Loan Aireament. HCTIO. 4.12: r....-ffieaUon BORROWER aareea to indaarlfy and save the LEImER and ita !asians harmless alainst any and all liability with respect to, or resulting from any ob1ilation of the BORROWER. SBCrIOlI 4.13: ............. oE Call1u!tian Dr ......"re--ent BORROWER sarees, if at any time BORROWER defaults on any provision of this Loan Aireement, to pay the LEImER or its Assiana, in addition to any other amounts that .ay be due from the BORROWER an amount equal to the costs and expenses, of collection, enforcement or correction or waiver of the default incurred by the LEIDER or its !adana in such collection, enforcement, correction or waiver of default, inc1udilll but not limited to attorney fees and costs of litilation. HcrIO.4.14: .ew _II Reta"'''' PositiOlUl Recmired A. In conaideration for the Loan ..de by the LEIDER, BORROWER alrees to expand the Project's employment base by a minimum of Two-Bundred, Forty-eiaht (248) permanent, new full time employment positiona or full time equivalents (FTEs) over and above the Project's full time employment base at Loan Closing Date which LEIDER and BORROWER alree is zero (0). Full time positiona are positiona requiring forty (40) hours a week per employee. For calculation purposes, two (2) part-time employees shall be considered one (1) FTE. C. BORROWER aarees that at least one-hundred, sixty-one (161) (i.e. sixty-five percent 65%)) of the two-hundred, forty-eiaht (248) FTE positions will be (i) held by, or; (ii) made available to qualified persons (i.e., referral or assistance e1ilib1e) UDder the catelories listed on the attached EXhibit "D", Employment Information Form or peraona whose current family income level is less than that shown on attached EXhibit "D", Employment Information Form. BORROWER alrees to have all prospective -8- lOB: lab: 1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o employment applicants complete the Employment Information Form. D. BORROWER acrees to file and aaintain completed employment information forma separated into four (4) cateaories. 1) Full Time Bires below Income Criteria or Referral/Assistance Iliaible. 2) Full Time Bires above Income Criteria. 3) Part Time Bires below income Criteria or Referral/Assistance Iliaible. D. Upon documentation of at least two-hundred, forty-eieht FIE hires and at least one-hundred, sixty-one (161) income eliaible placements, BORROWER ahall submit to LODIR, copies of all Employment Information Forms accompanied by an inventory sheet listina the number of forma collected under each of the four (4) cateaories under Section 4.l4(C). I. Should the jOb creation and income eliaible placement aoals not be met by the end of thirty (30) monthe after Loan diSbursement, BORROWER shall at that time, submit all available documentation required under this Section ineludina documentation for those BOT BIIID. The purpose is to ascertain proaress towards meetina projected overall job creation aoals, to determine the number of taraeted positions failina short of placement and to determine the number of income eligible persona that were interviewed (and not hired) to fill the shortfall. F. Upon review of Section 4.14(1) documentation, LlDER wUl determine if satisfactory measures have been taken to malte taraeted jobs avaUable to income eliable persons. Job Trainina and Partnership Act (hereinafter "JTPA") referrals Who are interviewed, althouch not necessarily hired, for unfilled taraeted positions will aatisfY this purpose. FaUure to take satisfactory measures, as determined by LlDER at its sole discretion, to malte the taraeted jobs available to income eligible persona is an Ivent of Default. SECTIO.4.15: Third PartY hream_ts A. BORROWER agrees to insure that When the Project developer enters into any agreement with a third party which conveys any leasehold interest in the real property or improvements covered by the terms of this Loan Aareement that said third party shall execute an aareement with the Project developer indicatina the third party will use their best efforts to comply with the auidelines for hirina employees as set forth in Section 4.14. The aareement shall obliaate the third party to provide BORROWER with the documentation required under Section 4.14 Which BORROWER is required to submit to LODIR. The use of beat efforts by the third party shall not relieve the BORROWER from its responsibility and obliaation to provide employment required under Section 4.14. -9- lCJJl:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c o o o B. A copy of aareement(a) entered into by the Project developer with third partiea which trenefer en intereat in the Project or its improvementa eh8ll be delivered to LIlmIR within five (5) daya of the execution of aaid aareementa(s) between the Project developer end any third partY(ies) that conveys the interest. . A....-.:I!r.. "V" IIIGArIV1 COVIDJIrS OP DB BORROVIR BORROWER covenant a and aerees that, from the date hereof until payment in full of the Bote, unleaa the LIlmER or ita Aaaiena ahall otherwise consent in writinc, BORROWER shall not enter into any aareement or other commitment the performance of Which would constitute a breach of any of the covenants contained in this Loen Acreement lncludinc but not limi tad to the followinc covenantal OcrIOB 5.01: S.l. Qf t.h. .A.emd.81t:10Il AIIaeta So lone .. the Bote is unpaid the BORROWER shall not permit the sale, conveyance, leaae (except in the normal courae of operation of the Project), aaaien-ent, trenefer or other diapoaition of the Project'a Assets unleas approved in writine by the LIlmIR which approval shall not be unreasonably withheld. ACTIOS 5.02: r.h....e OvIuoPdlfD BORROWER will not permit without the written permisaion of LINDER, which permiaaion shall not be unreaaonably withheld, any Chance in the ownerahip atructure, control, or operation of the Project developer, including but not limited to: (1) ..reer into or consolidation with any other person, firm or corporation; (ii) Chan&ea in the compoaition of its Partnera; (iii) Chancinc the nature of ita busineaa .. carried on on the date hereOf, or; (iv) aubatantial diatribution, liquidation or other diaposal of the Project developer'a aaaeta to ita OWnera. SlCTIOB 5.03: r.h....e the Pro1ect BORROWER shall not permit nor allow to exist without prior written consent from LlIDIR, which permiaaion shall not be unreaaonably withheld, any material Chance in the Project's plene and/or specifications which may be aubmitted to the LIlmIR. .AJrrIt!I.1r "VI" &Y&nr:i OP DlPADLT The entire unpaid principal of the Bote ahall become and be illllllediately due and payable upon the written demand of the LIlmIR or its Aasiena, without any other notice or deaand of any kind or any preaentment or protest, if any one or more of the events listed in thia Article (hereinafter termed an "Ivent of Default") ahall occur, Whether VOluntarily or inVOluntarily, with or without limitation, occurrinc or broucht about by operation of law or pursuant to or in compliance with any jUdpent, decree or -10- IC.JB: lab: l373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o !l:l o o order of any court or any order, rulea or reaulation of any adminiatrative or aoverDlllental bOdy, provided, however, that auch allll ahall not be then payable if BORROWER'a p.,.enta have been waived, or the time for lD81tina the Borrower's paymenta have been extended by the LIlUlBR. nerIOR 6.01: Late ,......ornt of Laan If the BORROWER ahall faU to ID81te payment when due of any inatallment of principal on the Bote, or intereat accrued thereon the funds due ahall acc1lllUlate intereat until paid by the BORROWER. Acceptance of any late payment ahall not conatitute a waiver of BORROWER'a default with reapect to the overdue amount or aatiary BORROWER'a obliaation to pay intereat on the late payment, or prevent LIlUlIR from exercbina any of the other riahta and remediea avaUable to LIlUlBR. Payment not paid when due ahall bear aimple intereat from date due until paid at the rate aa aet forth on the Bote. SBcrIOR 6.02: Tnporrttet RMlr_f!Iltat:f.an or Varrann If repreaentationa or warrantiea contained in, or made in connection with the execution of, or delivery of, thia Loan Aare..ent, or in any certificate furniahed purauant hereto, ahall prove to have been incorrect when made in any adverae reapect. nerIOB 6.03: Default in CclY......u If the BORROWER ahall default in the performance of any other term, covenant or aareement contained in thb Loan Aareellent, and if any auch default ahall continue unraedied for five (5) daya after either: (i) it becomea known to an executive officer of the BORROWER, or; (ii) written notice thereof ahall have been aiven to the BORROWER by the LIlUlBR. I.ClIO. 6.04: Valmtt:.rv tnaDly...ev If the BORROWER ahall become inaolvent or ceaae to pay ita debta as they mature or ahall voluntarily file a petition in bankruptcy or a petition aeekina reoraanization, or the appointment of a receiver, trustee, or liquidator for it or a aubstantial portion of ita aaaeta, or effect a plan or other arrangement with creditora, or ahall be adjudicated bankrupt, or shall make a voluntary assignment for the benefit of creditora. SlerIOR 6.05: Involuntarv IJUlolvenl!V If any involuntary petition ahall be filed aaainat the BORROWER under any bankruptcy, inaolvency or aimUar law aeeking the reoraanization of or the appointment of any receiver, truatee or liquidator for the BORROWER, or of s subatantial part of the property of the BORROWER or if a writ or warrant of attachment or aimilar procea. shall be ia.ued aaainat a .ubstantial part of the property of the BORROWER, such petition ahall not be di.mi.aed or such writ or warrant of attachment or aimilar procea. .hall not be released or bonded, within fifteen (15) day. after fUina of levy. neTIOR 6.06: Jnd-lI!!D.ta -11- 1tJH: lab: l373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o If aDy final judpent for the paYllent of IIOne)T that is not fully covered by liability insurance and is in excess of $10,000.00 shall be rendered ..ainat the BORROWER, and shall not be diSchar,ad within thirty (30) days, or an appeal therefrom taken and execution thereon effectively stayed pendina such appeal and, if such sppeal, and if auch judpent affirmed on such appeal, the aame ahall not be discharled within thirty (30) days. .&1PI'T1!r.W -vII" IIISI!RI.l..&1nQUS acrIOlI 7.01: Vafyer of IIotice Bo faUure or delay on the part of the LlRDER in exercidna aDy right, power, or remedy hereunder ahall operate as a waiver thereof, nor shall aDy sinale or partial exercise of aDy such right, power, or remedy preclude aDy other or further exercise thereof or the exerciae of aDy other right, power or remedy hereunder. Bo modification or waiver of aDy provision of this Loan Agreement or of the Bote or of the Letter of Credit, nor aDy consent to aDy departure by the BORROWER therefrom, ahall in any event be effective unleas the aame shall be in vritina and then auch waiver or conaent shall be effect!ve only in the specific instance and for the apecific purpose for which given. Bo notice to or demand on the BORlOWER ahall in aDy case entitle the BORROWER to any other or further nodce or demand in simUar or other circ_tances. DcrIOB 7.02: .a............t. The BORROWER, LlRDER and its Asdans hereby expressly reserve all rights to amend any provisions of this Loan Agreement, to conaent to or waive aDy departure from the provisiona of this proviaiona of the Bote, or to release or otherwise deal with any collateral security for paYllent of the Note provided, however, that all such amendments be in writina and executed by LlRDER or ita Asdans, and BORROWER. SBerIOK 7.03: Botices All notices, conaents, requests, demands and other communications hereunder shall be in writina and be duly liven to a party hereto by personal delivery or mailed by certified mail, prepaid, to the LlRDBR or BORROWER at their addresses set forth at the aiansture of the parties to this Loan Agreement, or at such other addresses as aDy party may have designated in writina to any other party hereto and Which notice shall be effective upon receipt. Receipt shall be five (5) days after mailina. naZOR 7.04: Survi....l of Reoreaentat:iftfta Jtft" Varra.t.ies All ..reements, representations, and warranties made by the BORROWER herein or aDy other document or certificate delivered to the LERnBR in connection with the transactions contemplated by this Loan Agreement shall survive the delivery of this Agreement, the Note and the Letter of Credit, and shall continue in full force and effect ao lona as the Rote is unpaid. -12- rJB:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o SBC1'IO. 7.05: Succ...or...... AII.i.... Thi. Loan Aare_ent ahall be bindina upon the BORROWER, their Succe.son and A..i&D8, except that the BORROWER IUIY not ualp or transfer their ripta without prior written cOIlSent of the LEIDER. This Loan Aareement shall inure to the benefit of the LIBDIR, its Succes.ors and Assips, and, except a. otherwi.e expressly provided in particular provisi_ hereof, all subaequent holden of the Bote. SBerIOlf 7.06: Udl1 LEIDER .hall have the ript to require BORROWER to provide within a reasonable time, a financial audit of BORROWER, by an independent certified public accountant chosen by LEIDER and paid for by BORROWER, if BORROWER is in default of any of its covenants or oblilatiollB to LEIDER. SBerIOlf 7.07: C01IIlterDart. Thb Loan Aare_ent IUIY be executed in any n1lllber of counterparts, each of which lIhall be deemed anorillllal, but all of which tOlether shall cOllStltute one and the same illBtrument. SBC1'IOlf 7.08: Gove_f... Law This Loan Aare_ent, the Bote and the Letter of Credit, shall be deemed contracts made under the laws of the State of California and for all purpo.es shall be cOllBtrued in accordance with the laws of said state. In the event that any action, at law or in equity, be c~enced by any party alainst any other party, the parties alree that jurisdiction and proper venue shall lie solely with the Superior Court of the State of California for the County of San BerllBrdino, or if the amount in controversy 18 not sufficient for the juriSdiction of the Superior Court, then the venue and forum for such action shall be the Municipal Court of the State of California for the County of San BerllBrdino. SBerIOlf 7.09: AttorlU!9'. Fee. In the event either partY'lIhall brina an action to enforce the terms and conditiollB of this Loan Aare_ent, the prevailina party shall be entitled to recover all of its costs and expBllBes, includina, but not limited to, reasonable attorney's fees ss determined by the court. SBerIOlf 7.10: Conflict of Interest Bo member, official or employee of LElDBR shall have any personal interest, direct or indirect, in the subject matter of this Loan Alreement, nor shall any member, official or employee participate in any decision relatina to this Loan Aareement which effects whether directly or indirectly, his or her persollBl interests or the interests of any corporation, partnership or association in which he or she has an interest. SBC1'IOlf 7.11: Article"'~ Section Headf.... -13- . ICJH: lab: l373C May 3, 1991 - o o 0 1 Article and Section Beadings used in this Aareement are for 2 convenience only and shall not affect the construction of this Aareement. 3 IR WITRESS WHEREOF, the parties hereto have each cauaed this Loan Agreement to be duly executed as of the day and the year first written above. 4 5 T.1nIn'Q : &ODOWD: 6 CI'l'! OF lWI 1l1!IIII& II1lIJlO REbJi;ym.Ohuuu AGDCY OF DB CIn 7 OFFICI OF CIII1....i_J.:n DBVELOl'IIBlft' lWI 1l1!IIII& II1lIJlO 8 9 By: By: 10 Title: Title: 11 Dated: Dated: 12 13 0 14 15 16 17 18 19 20 21 22 23 24 25 26 0 27 28 -14- It.JJ[:lab:1373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o nw.&1In lIOD For value received, the undersiened, the City of San Bernardino Redevelolllllent Aaeney, whose priDeipal office is located at 300 Rorth "D" Street, Fourth Floor, San BernardillO, California 92418 ("BORROWER"), promises to pay to the order of the Department of C_ity Develolllllent of the City of San Bernardino (the "City"), a public body corporate and politic, at 300 North "D" Street, San Bernardino, California 92418, Attention: Mr. ~enneth J. Benderson (or at suCh other address as the City may direct), the principal aum of lOUR-JIUlIDUD, FIrrY-TBOUSAIm DOLLARS ($450,000.00) or so IIUCh thereof as Ilay be advanced hereunder from tille to tille, on the earlier of (1) LENDER's demand; (ii) forty-eiaht (48) IlOntha from the date hereOf, unless extended, in the sole and absolute discretion of its Ezecutive Director, by written notice to the BORROWER liven at least thirty (30) days prior to the forty-eilht (48) month maturity date hereinabove set forth, or; (iii) as otherwiae provided in the Aareement (aa defiDed below). This Demand Rote is Ilade pursuant to the terms of the Loan Aareement dated as of , 1991 (the "Aareement") entered into between BORROWER and the City, and is secured by an irrevocable, unconditional and callable upon demand letter of credit (the "Letter of Credit") iasued by Wells Farlo Bank for the account of BORROWER, iD favor of the City. BORROWER shall, upon demand by the City, pay to the City, Ilandatory prepayments (as hereinafter defined) of priDcipal at .suCh tillea and in such amounts aa the City IlaY deteraine from time to time iD its sole discretion. As used herein, "Mandatory Prepayment" Ileana a demand for prepayment by the City for the partial or total prepayment of the principal due on the Loan evidenced by this Demand Rote. In the event of a Mandatory Prepayment, the City shall live BORROWER ten (10) days written notice prior to the date such Prepayment is due. BORROWER shall also have the riaht to Il&ke optional prepayments, at any time, without penalty, upon at least thirty (30) days prior written notice to the City, provided any suCh IlOtice of optional prepayment shall be irrevocable, and failure of BORROWER to Il&ke suCh prepayment within the time specified in suCh notice shall constitute a default hereunder. BORROWER hereby waives dililence, presentment, demand, protest and notice of any kind whatsoever. In the event of a default in the payment of principal or of interest on this Demand Rote, the City Ilay, amona other remedies, declare the unpaid balance hereOf, tOlether with accrued intereat thereon, to be immediately due and payable. The Reference Rate shall be the announced prime or reference rate of Bank of America or a reasonably comparable bank chosen b the City. Overdue principal shall bear interest at the Reference Rate plus two-percent (2%) per ann1llll (the "Default Rate") Chanaina as and when such Reference Rate IlaY be Chanaed, payable from the date of declaration of default by the City until payment to the City by BORROWER of all costs incurred in connection with the enforcement of this Demand Rote, inclucUna attorneys' fees and costs, whether or not suit is filed, as is further provided in Section 4.13 of the AareelDent. -15- VB: lab: l373C May 3, 1991 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o o Upon occurrence of any Event of Default .et forth in the Aareement, and .ubject to amy applicable notice requirement. and cure period. provided by the Aareement, the City -.y declare thia Demand lote immediately due and payable. If the Letter of Credit ia not extanded or renewed beyond each ezpiration date of the Letter of Credit, the Lender aha11 have the ri&ht to .ate immediate demand on the Rote and the Letter of Credit. Thia Demand Rote shall be conatrued in accordance with and lovemed by the lava of the State of California. Failure of the City to exerc1ae any rilht or remediea hereunder aha11 not conatitute a waiver of amy future or other default. Amendment. to thi. Demand Rote ahall be in writing and dined by the party alainat who auch aIIendment ia aoulht to be enforced. Dated as of: IWmV5LC)PIIIlft' AGIIICr OF 1'JIB CITY 01' SO -&lInuo By: Ixecutive Director -16- rJB:1ab:1373C May 3, 1991 o o o o C) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Action to be 15 Taken: 16 17 18 19 20 MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AGENDA April 15, 1991 Item: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN CONTRACT BY AND AMONG THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO PERTAINING TO THE USE OF CERTAIN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (WEST SIDE PLAZA PROJECT) Exhibit "A" - County Contract Adopt Resolution To be Published: NIA NIA Newspaper: Certified copy of Resolution to be returned to Sabo & Green, A Professional Corporation. 21 22 23 24 25 26 27 28 19 /91 0545 . lie " ~ o o o o o 1 2 3 4 5 6 7 8 9 . city of San Bernardino (the "Commission") on behalf of the 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN JsERNARDINO APPROVING A CERTAIN CONTRACT BY AND AMONG THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO PERTAINING TO THE USE OF CERTAIN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (WEST SIDE PLAZA PROJECT) WHEREAS, the Community Development Commission of the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a redevelopment agency, a public body, corporate and politic of the state of California, organized and existing ursuant to the Community Redevelopment Law (Part 1 of Division 24) commencing with Section 33000 of the Health and Safety Code f the State of California (the "Act"); and WHEREAS, the Redevelopment Plan for the Northwest edevelopment Project (the "Redevelopment Plan") was previously pproved and adopted by the Mayor and Common Council of the City f San Bernardino (the "Council") by Ordinance No. MC-189, dated uly 6, 1982; and WHEREAS, the Redevelopment Plan provides for the edevelopment of real property pursuant to the Redevelopment Plan y owners thereof or by parties seeking to acquire real property rom the Agency; and 28 - 1 - o o o o o 1 WHEREAS, the Agency has previously entered into a 2 certain Disposition and Development Agreement by and between the 3 Redevelopment Agency of the City of San Bernardino and New 4 Frontier Commercial Properties, Inc. (the "DDA"), pertaining to 5 the development of a certain shopping center project (the 6 "Project") within the project area subject to the Redevelopment 7 Plan; and 8 9 WHEREAS, in connection with the implementation of he 10 DDA, the Agency had deemed it necessary to cause an amendment to 11 the DDA pertaining to the funding of certain Agency redevelopment 12 assistance as further provided in the DDA; and 13 14 WHEREAS, in connection with the proposed amendment to 15 the DDA, the City of San Bernardino (the "City") and the Agency 16 deem it desirable to enter into a certain contract by and among 17 the City, the Agency and the County of San Bernardino (the 18 "County") pertaining to the use of certain Community Development 19 Block Grant funds in connection with the development of the 20 project (the "county Contract"); and 21 22 WHEREAS, the City deems it desirable to enter into that 23 certain County Contract, a copy of which is attached hereto as 24 Exhibit "A" and incorporated herein by this reference, which 25 ertains to the funding of the Agency's redevelopment assistance 26 in connection with the development of the Project; and 27 28 - 2 - o o o o o 1 WHEREAS, the County Contract provides for a loan from 2 the County to the developer of the Project under the DDA of 3 certain Community Development Block Grant funds the proceeds of 4 which are to be used for certain qradinq work, site clearinq and 5 public improvements and which loan shall be secured by a letter 6 of credit obtained by the Aqency. 7 8 9 10 11 12 13 14 15 Section 2. The Council hereby authorizes the Mayor 16 and City Clerk to execute the County Contract and to execute such 17 other documents as may be necessary to implement the County 18 Contract and to make any necessary non-substantive chanqes to the 19 County Contract as may be approved by the City Attorney. 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III NOW, THEREFORE, BE IT RESOLVED, BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY F~ND, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Council hereby approves the County Contract, a copy of which is attached hereto as Exhibit "A". - 3 - o o o o o 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN CONTRACT BY AND AMONG THE 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE CZTY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO PERTAINING TO THE 3 USE OF CERTAIN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (WEST SIDE PLAZA PROJECT) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Sect:ion 3. This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of ~an . Bernardino at a meeting thereof, held on the day of , 1991, by the following vote, to it: AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this day of , 1991. Mayor of the City of San Bernardino pproved as to form and legal AMES F. PENMAN ity Attorney 27~ 28 y: .~ C ty Att ey content: - 4 - o o 10 I I I I I o o 1 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO 2 CITY OF SAN BERNARDINO 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ) ) ) ss I, , Clerk of the City of San . Bernardino, California, DO HEREBY CERTIFY that the foregoing and attached copy of the city of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official .eal of the City of San Bernardino this day of , 1991. City Clerk of the City of San Bernardino . o o 0 1 EXHIBIT "A" 2 COUNTY CONTRACT 3 4 5 6 7 8 9 , . 10 11 12 13 0 14 15 16 17 18 19 20 21 22 23 24 25 26 0 27 28 o o o #a ~~ E New Vendor Code Dept. Contr.ct Number M Ch,nge SC A X Cencel ECD County Department Dept. Orgn. eanlr.Clar',license No. .NIl -. PIIENT ECD ECD County Department Contrect Rep,nenutive Ph. EX!. Amount of Contract 1'IIOIIAS R. LAURIN 4594 N/A Fund I Dept. I Orglniution I Ap",. I Objlllev Source Actlvlty I GRCIPROJ/JOB Number SM ECD PRO.1 200 2005 0??oo735 Commodity Code Eetimeted Pevment Toto! by Fiecel Veer FV Amount lID FY Amount I/O Project Nlme N/A N/A - - - Fifth Dietrict: West Side - - - - PI.E. Shnnnino C@n~__r - - - - (#350-13323) FOR COUNTY USE ONL Y County of San Bem8fdlno FAS CONTRACT TRANSMITTAL CONTRACTOR City of San Bernardino Birth Date NIA Faderal 10 No. or Social Security No. RIA Contractor's Representative Kenneth J. Henderson. Executive Director of Development Department Address 300 North "D" Street, San Bernardino. CA. 92418 Phone 714-384-5065 Nature of Contract: (Briefly describe the genera' terms of the contractl o On November 19. 1990, the San Bernardino County Board of Supervisors authorized the use of $ 2.750.000 of Community Development Block Grant (CDBG) funds for an Interim Loan for the development of the West Side Plaza Shopping Center. The term of the loan will be for two (2) years. A contract for the interim loan will be between the County and the project developer, New Frontier Commercial Propertiea. Inc. The project will involve conatruction of a 95.150 square foot commercial shopping center to be located at the northeast corner of Medical Center Drive and Baseline Avenue in San Bernardino. The .hopping center will consist of a supermarket. drugstore, fast food restaurants and various small retailers. This loan will be part of a $ 12.000.000 total funding package for the development of the West Side Plaza Shopping Center. This contract identifies the actions to be taken by the City of San Bernardino. the Redevelopment Agency of the City of San Bernardino, and the County in a cooperative venture to bring about the development of the West Side Plaza Shopping Center. The City and the Redevelopment Agency will provide funding and ensure compliance with all CDBG statutes and regulations. ttach this transmittal to all contracts not prepared on the "Standard Contrect" form.) Reviewed II to Affim\llt;ve Action Reviewed lor Proeeesing ~ ~ Agency Adminia"etor/CAO Oete O.te 1<!YRTTJ:TlT' 11"" o o o o o CONTRACT This Contract is made and entered into this day of , 19 , by and between the County of San Bernardino, hereinafter referred to as MCOUNTYM, the City of San Bemardino, hereinafter referred to as MCITYM, and the Redevelopment Agency of the City of San Bernardino, hereinafter referred to as MAGENcyM. VITNESSETH lIHEREAS, COUNTY has entered into a contract with the United States of America through its Department of Housing and Urban Development, hereinafter referred to as MHUnM, to execute the COUNTY'S Community Development Block Grant program, hereinafter referred to as "CDBGM, under the Housing and Community Development Act of 1974, as amended, hereinafter referred to as the MACTM; and lIHEREAS, COUNTY Department of Economic and Community Development, hereinafter referred to as MECDM, is authorized to act on behalf of COUNTY in administering COUNTY's CDBG program; and, WHEREAS, CITY and AGENCY, jointly and severally, have entered into a Development and Disposition Agreement, hereinafter referred to as MDDAM, with New Frontier Commercial Properties, Inc., for the development of the Vest Side Pleza, hereinaftel' referred to as MPlAZAM, a shopping center to be located at the northeast comer of Medical Center Drive and Baseline Street in San Bemardino; and, WHEREAS, AGENCY is providing a 10.1 acre parcel of land located at the northeast comer of Medical Center Drive and Baseline Street and CITY is providing a $450,000 loan for the purpose of the development of the Vest Side Plaza; and, WHEREAS, HUn is providing CITY with an -Urban Development Action GrantM (UDAG) of $1,848,000 for the purpose of the development of the Vest Side Plaza; and, WHEREAS, New Frontier Commercial Properties, Inc., hereinafter referred to as MDEVELOPERM, is the developer of the Vest Side Plaza and will secure a construction loan of $5,700,000 from a private lender for the purpose of the development of the Vest Side Plaza; and, WHEREAS, COUNTY Board of Supervisors has authorized a CDBG interim loan in an amount not to exceed $2,750,000, secured by an MAAM rated, unconditional, irrevocable and payable on demand Letter of Credit, for the purpose of the development of the Vest Side Plaza; and, WHEREAS, COUNTY, CITY and AGENCY, recognize the public benefit in providing commercial and retail services to the residents of the Vest Side of San Bernardino and the unincorporated community of Muscoy. NOV THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived therefrom, the parties agree as follows. 1. PURPOSE The purpose of this Contract is to identify the actions to be taken by CITY, AGENCY, and COUNTY in a cooperative venture to bring about the development of PlAZA. I o o o o o 2. PROJECT DESCRIPTION PLAZA will be located at the northeast corner of Baseline Street and Medical Center Drive in San Bernardino. PLAZA will consist of 95.150 square feet of retail and co_ercial buildings which will include a supermarket,. drug store, fast food restaurants and various small retailers and services. 3. FUNDING COUNTY will provide an interim loan to DEVELOPER in an _aunt not to exceed two million seven hundred and fifty thousand dollars ($2.750,000) for the purpose of the development of PlAZA. The loan will be funded from COUNTY CDBG funds and will be made available upon the execution of a separate Loan Agreement between COUNTY and DEVELOPER. Said Loan Agreement will be for a maxi_ two (2) year term at a three percent (3%) interest rate. The Loan is payable On Demand and the demand shall be made at the sole and absolute discretion of the COUNTY. An additional two (2) year term may be negotiated upon the conclusion of the first two (2) year term upon approval by COUNTY Board of Supervisors. Said Loan Agreement will require DEVELOPER to secure its' performance with an appropriate ~M~ rated Letter of Credit acceptable to COUNTY in its sole discretion. Said letter of credit will be unconditional and irrevocable. Furthermore, it shall be payable upon demand by COUNTY. Payment of CDBG funds by COUNTY to DEVELOPER shall be in the form of reimbursement of COUNTY authorized expenses accrued by DEVELOPER for the development of PIA2A. CITY and AGENCY, jointly and severally, shall provide sufficient funding to complete PLAZA. 4. COUNTY CONDITIONS COUNTY enters into this Contract in reliance on CITY, AGENCY, and DEVELOPER having entered into a DDA, and any other agreements necessary for the completion of PLAZA and the securing of all financing necessary for completion of PLAZA. 5. CONSIDERATION TO CITY AND AGENCY CITY and AGENCY, and each of them. acknowledge receipt of valuable consideration from COUNTY through operation of this Contract, including, but not limited to COUNTY'S loan of funds to DEVELOPER. 6. MAINTENANCE AND OPERATION CITY and AGENCY, jointly and severally, shall cause PLAZA to be maintained and operated to a professional standard for the term of this Contract. Said PLA2A shall be sufficiently maintained to allow for operations at all times during the useful life of PlAZA. 7. DESIGN REVIEIJ COUNTY shall, in the course of the design phase, have the right plans and specifications relating to the construction of PlAZA. included in the design review on behalf of COUNTY. to review all ECD shan be 2 o o o o o 8. ON-SITE INSPECTION COUNTY it. officer.. agent., employees, per.on. under contract with COUNTY and repre.entative. of HOD will have the privil.ge and right to on-alte inspection of PlAZA for the duration of this Contract. CITY and AGENCY. jointly and .everally, will ensure that th.ir employee. or agent. furni.h any information, that in the judge_nt of COUNTY and HOD repr.sentative., _y b. relevant to a qu..tion of compliance with contractual conditions, HOD directives, or the eff.ctiv.n.ss. legality and achi.vement. of the CDBG program. 9. HOLD ~SS CITY and AGENCY, jointly and .everally. .hall indemnify, rei.mburse (including, but not limited to. attorney f... and court co.t.), defend and hold COUNTY, it. offic.r., ag.nt.. and employ.... haml... froll and against any loss, liability. claill or ~ge that ...y arise or re.ult froll activiti.s of CITY, AGENCY, DEVELOPER, their offic.rs, ag.nts and employ..., pursuant to this Contract. CITY and AGENCY. jointly and sev.rally, .hall. at their own cost, .xpense and ri.k, def.nd any l.gal proc..ding. that ...y b. brought against COUNTY, it. offic.rs. agent. and employ.e.. on any liability claim or demand and .atisfy any judgement that ...y be r.nder.d against any of thell arising or r.sulting from activities of CITY, AGENCY, DEVELOPER, their officers, agents and employee.. pursuant to this Contract. CITY and AGENCY, and .ach of them, are obligat.d to promptly notify COUNTY in writing of the occurrence of any such 10.. or damage. CITY and AGENCY. jointly and .everally, .hallindemnify, rei.mburse, defend and hold harmless COUNTY against any liability, claims, lo.ses, demands and actions incurred by COUNTY. as a result of a determination by the United States Department of Housing and Urban D.velopment or its .uccessor that activiti.s undertak.n by CITY and AGENCY. or either of them, under the program or program(s) fail to comply with any laws, r.gulations or policies applicable thereto or that any funds billed by and disbursed to DEVELOPER pursuant to the Loan Agr.ement identifi.d in paragraph 3, Funding, und.r this Contract were improperly .xpended. Furthermore. CITY and AGENCY, and each of them, shall indemnify, defend and hold harmless, COUNTY again.t any liability, claims, losses. demands and actions by CITY, AGENCY, or DEVELOPER against the COUNTY as a result of COUNTY demand for payment of the Letter of Credit, identified in paragraph 3, Funding, of this Contract. CITY and AGENCY, jointly and severally, unconditionally guarantee to COUNTY, its .ucces.ors and as.igns, the due and punctual payment of the principal and int.re.t and all oth.r .ums payable. with r.spect to the Loan Agreement Note, hereafter "'NOTE-. of the DEVELOPER to COUNTY. The NOTE, and the interes t th.reon and all other .um. payable with respect thereto, including all sums due under the Loan Agreement, are hereafter collectively called -LIABILITIES-. CITY and AGENCY, jointly and ..verally, waive any notice of the incurring by the DEVELOPER, at any time, of any LIABILITIES, and waiv.. any and all pr..entment, demand, protest or notice of di.honor, nonpayment, or other default with respect to any of the LIABILITIES. The CITY and AGENCY, jointly and .everally. hereby grant to COUNTY full power, in it. sole di.cretion and without notice to the CITY, AGENCY, or either of them, but subject to the provisions of any agreement between the DEVELOPER and COUNTY at the time in 3 o o o force, to deal in any manner with the LIABILITIES and the Letter of Credit, including, but without limiting the generality of the foregoing, the following powers: (a) To modify or otherwise change any terms of all or any part of the LIABILITIES (but not to increase the principal aaount of the Note of the DEVElDPER to COUNTY), to grant any extension or renewal t:hereof and any other indulgence with respect t:hereto, and to effect any release, compromise or settlement with respect thereto; (b) To enter into any agr.....nt of forbearance with respect to all or any part of the LIABILITIES, or in r.spect to all or any part of the Letter of Credit, and to change the terms of any such agr.ement; (c) To forbear from calling for additional collateral to secure any of the LIABILITIES. The COUNTY will not substitut. collateral without the prior written consent of CITY and AGENCY, jointly and severally, which consent shall not be unreasonably withheld; (d) To consent to the substitution, exchange, or release of all or any part of the collateral whether or not the collat.ral, if any, received by COUNTY upon any such substitution, exchange, or release shall be of the sam. or of a differ.nt character or value than the collateral surrendered by COUNTY; o (e) In the event of the nonpayment wh.n due, wh.ther by acceleration or otherwise, of any of the LIABILITIES, or in the event of default in the perforasnce of any obligation secured by the collateral, to foreclose on the collateral or any part thereof, as a whole or in such parts or subdivided interests as the COUNTY may elect, at any public or private sale or sales, for cash or on credit or for future delivery, without demand, advertisement or notice of the time or place of sale or any adj ournment th.reof (th. CITY and AGENCY, jointly and sev.rally, hereby waiving any such demand, advertisement and notice to the extent permitted by law), or by foreclosure or otherwise, or to forbear from realizing thereon, all as COUNTY in its uncontrolled discretion may deem proper, and to purchase all or any part of the collateral for its own account at any such sale or foreclosure, such powers to be exercised only to the extent permitted by law. The obligations of the CITY and AGENCY, and each of them, shall not be released, discharged or in any way affected, nor shall the CITY and AGENCY, and each of them, have any rights or recourse against COUNTY, by r.ason of any action COUNTY may take or omit to take under the for.going powers. All obligations of the CITY and AGENCY, and .ach of them, and representations of the CITY and AGENCY, and each of th.m, to the COUNTY shall continue in full force and effect until the LIABILITIES are paid in full and all oth.r duties and obligations of the parties have been discharged. o In case the DEVELOPER shall fail to pay all or any part of the LIABILITIES when due, the CITY and AGENCY, jointly and severally, immediat.ly upon the written demand of COUNTY, will pay to COUNTY the amount due and unpaid by the DEVELOPER. COUNTY shall not be required, prior to any such demand on, or payment by, the CITY or AGENCY, or .ither of them, to make any demand upon or pursue or exhaust any of its rights or rem.dies against the DEVELOPER or 4 o o o 11. 12. o o others with respect to the payment of any of the LIABILITIES, or to pursue or exbaust any of its rights or remedies with respect to any part of the collateral. The CITY and AGENCY, and each of them, shall have no right of subrogation whatsoever with respect to the LIABILITIES or the collateral unless and until COUNTY shall have received full payment of all the LIABILITIES. The COUNTY will attempt to obtain payments under the terms of the Letter of Credit. The COUNTY'S failure or inability to exercise its rights under the Letter of Credit shall not relieve the CITY and AGENCY, and each of them, from its obligations to pay to the COUNTY the LIABILITIES owed by the DEVELOPER. The CITY and AGENCY, and each of thea, are aware and understand that the COUNTY can demand payment from the DEVELOPER, the CITY, and the AGENCY, jointly and severally, at the sole and absolute discretion of the COUNTY. 10. FIRE INSURANCE CITY and AGENCY, and each of them, shall cooperate with COUNTY to obtain and deliver to COUNTY for COUNTY'S approval, certification(s) or policy(s) of standard fire insurance with extended coverage and vandelism and malicious mischief endorsements for the full replacement value of PLAZA. In the event of any damage or destruction to the improvements covered by the insurance, CITY and AGENCY, and each of them, shall use the entire insurance proceeds to restore the improvements. The insurance required under this paragraph shall be maintained by CITY and by AGENCY, at their sole expense for the term of this Contract. Said insurance shall contain endorsements providing that the insurance company issuing the insurance will not cancel or reduce the insurance coverage without thirty (30) days prior written notice to COUNTY. CITY, or AGENCY, or both of them, shall inform COUNTY in writing of any change, expiration or renewal of said insurance within (30) days of the effective date of change. COMPLIANCE YITH lAYS All actions taken by CITY and AGENCY, and by each of them, shall comply with the provisions of the Housing and Community Development Act of 1974 and any amendments thereto (Federal Title 42, U.S.C. Section 5301, ~ ~). the Federal regulations and guidelines now or hereafter enacted pursuant to said Act (Federal Title 24 CFR, Part 570), Administrative Requirements for Grants (Federal Title 24, CFR, Part 85), Section 3 of the Housing and Urban Development Act of 1968 (Federal Title 24 CFR, Part 135) and all other Federal and State statutes and regulations applicable thereto. COUNTY reserves the right to review any action or decision related to applicable regulations. CITY and AGENCY, and each of them, shall provide to COUNTY within 10 days of written request of COUNTY, any and all docUlllents pertaining to this paragraph as requested by COUNTY. CONFLICT OF INTEREST CITY and AGENCY, jointly and severally, and COUNTY, their agents and employees shall comply with all Federal, State and County laws and regulations governing conflicts of interest. To this end, CITY and AGENCY, jointly and severally, and COUNTY will make available to their agents and employees, copies of all applicable Federal, State and County laws and regulations governing conflict of interest. 5 o o o 14. 15. o o 13. ASSIGNMENT CITY and AGENCY, and each of them, shall not assign this Contract or any interest therein, or the DDA or any interest therein, unless COUNTY has previously given its written consent. Provided, however, that any approved assignment shall be subject to all the teras, covenants, and conditions of this Contract and of the DDA. If CITY or AGENCY, or both of them, attempt to effect any unauthorized assignment, or if any transfer occurs by operation of law, or if this Contract or any interest herein, or the DDA or any interest therein, is subjected to garnishment or sale under any execution of any suit or proceeding brought against or by CITY and AGENCY, or either of them, or if CITY and AGENCY, or either of them, are adjudged bankrupt or insolvent by any court or upon CITY or AGENCY, or both of them, making an assignment for the benefit of creditors, COUNTY may, at its option, forthwith terminste this Contract upon written notice thereof to CITY and to AGENCY, and thereupon, no one but COUNTY shall have any further rights hereunder. VIOlATION OF CONTRACT In the event that CITY and AGENCY, jointly and severally, or their successors, violates any of the terms and conditions of this Contract, COUNTY shall give written notice of violation and demand for correction. If, within thirty (30) days from receipt of written notice, CITY and AGENCY, or either of them, have not corrected the violation or shown acceptable cause therefore, COUNTY has the right to terminate this Contract and/or proceed with whatever other legal rights it may have against the CITY, the AGENCY, and each of them, under the terms of this Contract and/or under the laws of the State of California. REDUCTION IN FUNDING Notwithstanding Section 14, Violation of Contract, above, COUNTY may immediately terminate this Contract upon the termination, suspension, discontinuation or substantial reduction in HOD Community Development Block Grant funding of the Contract activity. 16. REVERSION OF ASSETS All real property acquired or improved in whole or in part with CDBG funds in excess of $25,000 under this Contract must continue in the use that provides the service benefits and national objectives for which it was funded until five years after expiration of this Contract as set forth in the Federal Regulation at 24 CFR 570, or such longer period of time as determined by COUNTY; or it must be disposed of in a manner resulting in a reimbursement to COUNTY in the amount of the current fair market value of the property less any portion thereof attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property. 17. MODIFICATIONS This Contract may be amended or modified only by a written agreement signed by all parties. Failure by any party to enforce any provision(s) of this Contract shall not be construed as a waiver of the right to compel enforcement of such provision(s) thereafter. 6 o o o o o 18. NOTICES All notices shall be served in writing. The notices shall be sent by prepaid certified First Class Hail to the following addresses: COUNTY County of San Bernardino Departaent of Economic and COllllllUl1ity Development 474 West Fifth Street San Bernardino, CA 92415-0040 CITY AND Acmcy City of San Bernardino Redevelopment Agency 300 North wDw Street San Bernardino, CA 92418 19. EFFECTIVE DATE 20. 21. This Contract shall be effective upon approval by COUNTY Board of Supervisors and shall expire concurrently with the aforementioned interim Loan Agreement between DEVELOPER and COUNTY. INVALID CONDITIONS If, for any reason, anyone or more of the terms, provisions, sections, promises, covenants or conditions of this Contract or DDA is judged by s court of competent jurisdiction to be partially or wholly invalid, unenforceable, void or voidable, all of the remaining terms, provisions, sections, promises, covenants and conditions shall remain valid and enforceable. However, should such judicial decision materislly affect the powers and duties of any of the parties to this Contract, the parties shall, if possible in light of the decision of the court, negotiate such amendment to this Contract as is necessary to carry out the intent of the parties hereto. If it is not possible to so _end this Contract, then the parties shall, to the extent reasonably possible, return each other to the position each party occupied prior to entering this Contract. BINDING INTEREST This Contract shall be binding on the parties, successors in interest, heirs and assigns. 7 . o o o o o IN VITNESS WEREOF. the parties have caused this Contract to be executed as of the day and year written above. COUNTY OF SAN BERNARDINO By: Chaiman Dated: SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUKENT HAS BEEN DELIVERED TO THE CHAIRKAN OF THE BOARD EARLENE SPROAT Clerk of the Boerd of Supervbors of the County of San Bernardino By: Dated: APPROVED AS TO LEGAL FORM By: Dated: AGHTS/PLAZA.AGT 3/l8/91/BT/bjj 5/2/9l/BT/pn CITY OF SAN BERNARDINO By: Mayor Dated: By: City Attorney Dated: CITY OF SAN BERNARDINO REDEVELOPKENT AGENCY By: Dated: 8 c o 26 o 27 28 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Action to be 15 Taken: 16 17 18 19 20 21 22 23 24 25 Item: To be Published: Newspaper: o COMMUNITY DEVELOPMENT COMMISSION CITY OF SAN BERNARDINO AGENDA April 15, 1991 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY or SAN BERNAROINO APPROVING A CERTAIN CONTRACT BY AND AMONG THE REDEVELOPMENT AGENCY OF THE CITY. OF SAN BERNARDINO, THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO PERTAINING TO THE USE OF CERTAIN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (WEST SIDE PLAZA PROJECT) EXHIBIT "An - County Contract Adopt Resolution N/A N/A Certified copy of Resolution to be returned to Sabo & Green, A PrOfessional Corporation. SIIIlOIOO92I02O 0010191 0U2 ~I'J)I' o o o o o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN CONTRACT BY AND AMONG THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO PERTAINING TO THE USE OF CERTAIN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (WEST SIDE PLAZA PROJECT) WHEREAS, the Community Development Commission of the . . City of San Bernardino (the "Commission") on behalf of the Redevelopment Aqency of the City of San Bernardino (the "Aqency"), is a redevelopment aqency, a public body, corporate and politic of the State of California, orqanized and existinq pursuant to the Community Redevelopment Law (Part 1 of Division 24) commencinq with Section 33000 of the Health and Safety Code of the State of California (the "Act"); and WHEREAS, the Redevelopment Plan for the Northwest Redevelopment Project (the "Redevelopment Plan") was previously approved and adopted by the Mayor and Common Council of the City of San Bernardino (the "Council") by Ordinance No. MC-189, dated July 6, 1982; and WHEREAS, the Redevelopment Plan provides for the redevelopment of real property pursuant to the Redevelopment Plan by owners thereof or by parties seekinq to acquire real property from the Aqency; and - 1 - o o o o o 1 WHEREAS, the Agency bas previously entered into a 2 certain Disposition and Development Aqreement by and between the 3 Redevelopment Agency of the City of San Bernardino and New 4 Frontier Commercial Properties, Inc. (the "DDA"), pertaining to 5 the development of a certain sbopping center project (the 6 "Project") within the project area subject to the Redevelopment 7 Plan; and 8 9 WHEREAS, in connection with the implementation of ~he 10 DDA, the Agency bad deemed it necessary to cause an amendment to 11 the DDA pertaining to the funding of certain Agency redevelopment 12 assistance as further provided in the DDA; and 13 14 WHEREAS, in connection with the proposed amendment to 15 the DDA, the Agency and the City of San Bernardino (the "City") 16 deem it desirable to enter into a certain contract by and among 17 the Agency, the City and the County of San Bernardino (the 18 "County") pertaining to the use of certain community Development 19 Block Grant funds in connection with the development of the 20 Project (the "County Contract"); and 21 22 WHEREAS, the Commission deems it desirable to enter 23 into that certain County Contract, a copy of wbich is attached 24 hereto as Exhibit "A" and incorporated berein by this reference, 25 which pertains to the funding of the Agency's redevelopment 26 assistance in connection with the development of tbe Project; and 27 28 - 2 - o o o o o 1 WHEREAS, the County Contract provides, for a loan from 2 the county to the developer of the Project under the DDA of 3 certain Community Development Block Grant funds the proceeds of 4 which are to be used for certain gradinq work, site clearinq and 5 public improvements and which loan shall be secured by a letter 6 of credit obtained by the Aqency. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 III 23 III 24 III 25 III 26 III 27 III 28 III NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDI:NO, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Commission hereby approves the ounty Contract, a copy of which is attached hereto as Exhibit "A". Section 2. The Commission hereby authorizes the airman and Secretary of the Aqency to execute the County ontract and to execute such other documents a8 may be necessary o implement the County Contract and to make any necessary non- ubstanti ve chanqes to the County Contract as may be approved by e Aqency Counsel. - 3 - o o. o o o 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN CONTRACT BY AND AMONG THE 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE CITY OF SAN BERNARDINO AND THE COtJNTY OF SAN BERNARDINO PERTAINING TO THE 3 USE OF CERTAIN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (WEST SIDE PLAZA PROJECT) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 3. This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meeting thereof, held on the . . , 1991, by the following vote, to day of wit: commission v_.hAra: AID BAD ABSTAIN ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER Secretary day of The foregoing resolution is hereby approved this , 1991. Approved as to form and l8gal content: By: ./A,/UA~dOh.l2../ ~~~:l~ W. R. Holcomb, Chairman Community Development Commission of the City of San Bernardino SIIIIOVlOII2IDO - 4 - o o o 21 22 23 24 25 26 27 28 o o 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) 2 CITY OF SAN BERNARDINO ) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ss I, Secretary of the Community DeveloPJllent Commission of the City of San Bernardino, DO HEREBY CERTIFY that the foreqoinq and attached copy of Community DeveloPJllent Commission of the city of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Community Development Commission of the city of San Bernardino this day of , 1991. . . Secretary of the Community Development Commission of the City of San Bernardino . o o 0 1 EXHIBIT "A" 2 COUNTY CONTRACT 3 4 5 6 7 8 9 . 10 11 12 13 0 14 15 16 17 18 19 20 21 22 23 24 25 26 0 27 28 o FOIl co~ ONLY o ~~4. ~1 E New Vendor Code Dopt. Contrect Number M Chenge SC A X Cancel ECD County Deportment Dopt. Orgn. Contractor', Ucenle No. ANn BCD """ County Department ContrRt Repr..entiitive Ph. EXl. Amount of Contrlct 1BlIlAS R. LAURIN 4594 RIA Fund I Dopt. I Orgonlution I Appr. I Objlllov Source ActIvity I GRCIPROJ/JOB Number SBA leD PROJ 200 2005 00000735 Commodity Code EstImated Poymont Toto! by Fiocol Voor FV Amount lID FY Amount I/O Project Nome ..l!1l... RIA. - - - Fifth Diotrict: West Side - - - - '1.7-8 ~nftfttn. C@nter - - - - (#350-13323) County of San Bern8rdlno FAS CONTRACT TRANSMITTAL CONTRACTOR Citv of San Bernardino Birth Date NIA Federal 10 No. or Social Security No. RIA Contractor's Representative Kenneth J. Henderson. Executive Director of Development Department Address 300 North "D" Street. San Bernardino. CA. 92418 Phone 714-384-5065 Nature of Contract: (Briefly descril>> the ~nerB/ terms of the contrBctl o On November 19, 1990, the San Bernardino County Board of Supervisors authorized the use of $ 2,750,000 of Community Development Block Grant (CDBG) funds for an Interim Loan for the development of the West Side Plaza Shopping Center. The term of the loan will be for two (2) years. A contract for the interim loan will be between the County and the project developer. New Frontier Commercial Properties, Inc. The project will involve construction of a 95,150 square foot commercial shopping center to be located at the northeast corner of Medical Center Drive and Baseline Avenue in San Bernardino. The shopping center will consist of a supermarket, drugstore, fast food restaurants and various small retailers. This loan will be part of a $ 12,000,000 total funding package for the development of the West Side Plaza Shopping Center. This contract identifies the actions to be taken by the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and the County in a cooperative venture to bring about the development of the West Side Plaza Shopping Center. The City and the Redevelopment Agency will provide funding and ensure compliance with all CDBG statutes and regulations. ttBch this trsnsmittBl to B/I contrllet8 not prepared on the "StandBrd ContrBct" form.1 Appro Reviewed o. to Afflrmsti.e Action Reviewed for Processing .. .. Agency Administrator/CAD O.te Dsto Oete o o o o o CONTRACT This Contract is made and entered into this day of , 19 , by and between the County of San Bernardino, hereinafter referred to as MCOUNTYM, the City of San Bernardino, hereinafter. referred to as MCITYM, and the Redevelopment Agency of the City of San Bernardino, hereinafter referred to as MAGENcyM. VITNESSETH WEREAS, COUNTY has entered into a contract with the United States of America through its Department of Housing and Urban Development, hereinafter referred to as "'HIJDM, to execute the COUNTY'S Community Develop.ent Block Grant program, hereinafter referred to as MCDOOM, under the Housing and Community Development Act of 1974, as amended, hereinafter referred to as the MACTM; and WEREAS, COUNTY Department of Economic and Community Development, hereinafter referred to as MECDM, i. authorized to act on behalf of COUNTY in administering COUNTY's CDOO program; and, WHEREAS, CITY and AGENCY, jointly and severally, have entered into a Development and Disposition Agreement, hereinafter referred to as MDDAM, with New Frontier Commercial Properties, Inc., for the development of the Vest Side Plaza, hereinafter referred to as MpLAZAM, a shopping center to be located at the northeast corner of Medical Center Drive and Baseline Street in San Bernardino; and, WEREAS, AGENCY is providing a 10.1 acre parcel of land located at the northeast corner of Medical Center Drive and Baseline Street and CITY is providing a $450,000 loan for the purpose of the development of the Vest Side Plaza; and, WEREAS, BUD is providing CITY with an WUrban Development Action GrantM (UDAG) of $1,848,000 for the purpose of the development of the Vest Side Plaza; and, WHEREAS, New Frontier Commercial Properties, Inc., hereinafter referred to as MDEVELOPERM, is the developer of the Vest Side Plaza and will secure a construction loan of $5,700,000 from a private lender for the purpose of the development of the Vest Side Plaza; and, WEREAS, COUNTY Board of Supervisors has authorized a CDBG interim loan in an amount not to exceed $2,750,000, secured by an MMM rated, unconditional, irrevocable and payable on demand Letter of Credit, for the purpose of the development of the Vest Side Plaza; and, WHEREAS, COUNTY, CITY and AGENCY, recognize the public benefit in providing commercial and retail services to the residents of the Vest Side of San Bernardino and the unincorporated community of Muscoy. NOV THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived therefrom, the parties agree as follows. 1. PURPOSE The purpose of this Contract is to identify the actions to be taken by CITY, AGENCY, and COUNTY in a cooperative venture to bring about the development of PLAZA. 1 o o o 4. :!!l! o o 2. PROJECT DESCRIPTION PLAZA will be located at the northeast corner of Baseline Street and Medical Center Drive in San Bernardino. PLAZA will consist of 95,150 square feet of retail and co_ercial buildings which will include a supermarket,_ drug store, fast food restaurants and various small retailers and services. 3. FtlNDING COUNTY will provide an interim loan to DEVELOPER in an aaount not to exceed two million seven hundred and fifty thousand dollars ($2,750,000) for the purpose of the development of PLAZA. The loan will be funded from COUNTY CDBG funds and will be made available upon the execution of a separate Loan Agreement between COUNTY and DEVELOPER. Said Loan Agreement will be for a maximum two (2) year term at a three percent (3%) interest rate. The Loan is payable On Demand and the demand shall be made at the sole and absolute discretion of the COUNTY. An additional two (2) year term may be negotiated upon the conclusion of the first two (2) year term upon approval by COUNTY Board of Supervisors. Said Loan Agreement will require DEVELOPER to secure its' performance with an appropriate -M- rated Letter of Credit acceptable to COUNTY in its sole discretion. Said letter of credit will be unconditional and irrevocable. Furthermore, it shall be payable upon demand by COUNTY. Payment of CDBG funds by COUNTY to DEVELOPER shall be in the form of reimbursement of COUNTY authorized expenses accrued by DEVELOPER for the development of PIAZA. CITY and AGENCY, jointly and severally, shall provide sufficient funding to complete PLAZA. COUNTY CONDITIONS COUNTY enters into this Contract in reliance on CITY, AGENCY, and DEVELOPER having entered into a DDA, and any other agreements necessary for the completion of PLAZA and the securing of all financing necessary for completion of PLAZA. 5. CONSIDERATION TO CITY AND AGENCY CITY and AGENCY, and each of them, acknowledge receipt of valuable consideration from COUNTY through operation of this Contract, including, but not limited to COUNTY'S loan of funds to DEVELOPER. 6. MAINTENANCE AND OPERATION 7. CITY and AGENCY, jointly and severally, shall cause PLAZA to be maintained and operated to a professional standard for the term of this Contract. Said PlAZA shall be sufficiently maintained to allow for operations at all times during the useful life of PLAZA. DESIGN REVIEY COUNTY shall, in the course of the design phase, have the right to review all plans and specifications relating to the construction of PLAZA. ECD shall be included in the design review on behalf of COUNTY. 2 o o o o o 8. ON-SITE INSPECTION COUNTY its officers, agents, employees, persons under contract with COUNTY and representatives of BUD will have the privilege and right to on-site inspection of PlAZA for the duration of thb Contract. CITY and AGENCY, jointly and severally, will ensure that their employees or agents furnish any inf!lrmation, that in the judgement of COUNTY and BUD representatives, _y be relevant to a question of compliance with contractual conditions, BUD directives, or the effectiveness, legality and achievements of the CDBG program. 9. HOLD IlARM1ESS CITY and AGENCY, jointly and severally, shallindellIlify, reimburse (including, but not l1lllited to, attorney fees and court costs). defend and hold COUNTY, its officers, agents, and employees, haraless from and against any loss, liability, claim or cSamage that ..y artse or result from activities of CITY, AGENCY, DEVELOPER, their officers, agents and employees, pursuant to this Contract. CITY and AGENCY, jointly and severally, shall, at their own cost, expense and risk, defend any legal proceedings that ..y be brought against COUNTY, its officers, agents and employees, on any liability claim or demand and satisfy any judgement that ..y be rendered against any of them arising or resulting from activities of CITY, AGENCY, DEVELOPER, their officers, agents and employees, pursuant to this Contract. CITY and AGENCY, and each of them, are obligated to promptly notify COUNTY in writing of the occurrence of any such loss or cSamage. CITY and AGENCY, jointly and severally, shall indellIlify, reimburse, defend and hold harmless COUNTY against any liability, claims, losses, demands and actions incurred by COUNTY, as a result of a determination by the United States Department of Housing and Urban Developllent or its successor that activities undertaken by CITY and AGENCY, or either of them, under the program or program(s) fail to comply with any laws, regulations or policies applicable thereto or that any funds billed by and disbursed to DEVELOPER pursuant to the Loan Agreement identified in paragraph 3, Funding, under this Contract were improperly expended. Furthermore, CITY and AGENCY, and each of them, shall indemnify, defend and hold harmless, COUNTY against any liability, claims, losses, demands and actions by CITY, AGENCY, or DEVELOPER against the COUNTY as a result of COUNTY demand for payment of the Letter of Credit, identified in paragraph 3, Funding, of this Contract. CITY and AGENCY, jointly and severally, unconditionally guarantee to COUNTY, its successors and assigns, the due and punctual payment of the principal and interest and all other sums payable, with respect to the Loan Agreement Note, hereafter -NOTE-, of the DEVELOPER to COUNTY. The NOTE, and the interest thereon and all other sums payable with respect thereto, including all sums due under the Loan Agreement, are hereafter collectively called -LIABILITIES". CITY and AGENCY, jointly and severally, waive any notice of the incurring by the DEVELOPER, at any time, of any LIABILITIES, and waives any and all presentment, demand, protest or notice of dishonor, nonpayment, or other default with respect to any of the LIABILITIES. The CITY and AGENCY, jointly and severally, hereby grant to COUNTY full power, in its sole discretion and without notice to the CITY, AGENCY, or either of them, but subject to the provisions of any agreement between the DEVELOPER and COUNTY at the time in 3 o o o force, to deal in any ..anner with the LIABIUTIES and the Letter of Credit, including, but without limiting the generality of the foregoing, the following powers: (a) To modify or otherwise change any tera. of .11 or any part of the LIABILITIES (but not to incra..e tha principal _t of the Note of the DEVELOPER to COUNTY), to grant any extenaion or renew.1 thereof and any other indulgence with reapect thereto. and to effect any release, compro..iae or aettlement with r.ap.ct thereto; (b) To .nt.r into any agr.ement of forbearance with resp.ct to all or any part of the LIABILITIES, or in r.ap.ct to .11 or any part of the Letter of Cr.dit, .nd to chang. the t.rms of any auch .gr....nt; (c) To forb.ar fro. calling for additional collat.ral to s.cure .ny of the LIABILITIES. Th. COUNTY will not substitute collat.ral without the prior written conaent of CITY and AGENCY, jointly and aev.rally, which cons.nt shall not be unreaaonably withh.ld; (d) To consent to the substitution, .xchange. or rel.... of all or any part of the col1at.ral Whether or not the collateral. if any. received by COUNTY upon any auch subatitution. exchange, or r.1.as. shall be of the same or of a different character or va1u. than the collateral surrendered by COUNTY; (.) In the .vent of the nonpayment when du., wh.ther by acceleration or otherwise. of any of the UABILITIES, or in the ev.nt of default in the performance of any obligation secured by the collateral, to foreclose on the collateral or any part thereof, as a Whole or in such parts or subdivided interests .s the COUNTY ...y elect, at any public or private sale or aales, for cash or on credit or for future delivery, without de..and. advertiaement or notice of the time or place of sale or any adjournment thereof (the CITY and AGENCY. jointly and severally, hereby waiving any such demand. advertise..ent and notice to the extent permitted by law). or by foreclosure or oth.rwise. or to forbear fro.. r.alizing thereon. all as COUNTY in its uncontrolled discretion ..ay deem proper, and to purchase all or any part of the collateral for its own account at any such sale or forecloaure, such powers to be exercised only to the extent permitted by law. o The obligations of the CITY and AGENCY. and .ach of the.. shall not be re1.ased. discharged or in any way aff.ct.d, nor shall the CITY and AGENCY. and each of them. have any rights or r.cours. against COUNTY, by r.ason of any action COUNTY may take or o..it to take under the foregoing powers. All obligations of the CITY and AGENCY. and each of the., and representations of the CITY and AGENCY, and each of th.... to the COUNTY shall continue in full forc. and .ffect until the LIABILITIES are paid in full and all other duties and obligations of the parties have be.n discharged. o In case the DEVELOPER shall fail to pay all or any part of the LIABILITIES When due, the CITY and AGENCY. jointly and severally. iDaediately upon the written demand of COUNTY, will pay to COUNTY the UIOunt due and unpaid by the DEVELOPER. COUNTY shall not be r.quired. prior to any such de...nd on, or payment by. the CITY or AGENCY, or eith.r of th.., to make any d....nd upon or pursue or exhaust any of its rights or remedi.s against the DEVELOPER or 4 .. o o 11. 12. o - o o others with respect to the payment of any of the LIABILITIES, or to pursue or exhaust any of its rights or remedies with respect to any part of the collateral. The CITY and AGENCY, and each of them, shall have no right of subrogation whataoever with respect to the LIABILITIES or the collateral unless and until COUNTY shall have received full payment of all the LIABILITIES. The COUNTY will attempt to obtain payments under the terms of the Letter of Credit. The COUNTY'S failure or inability to exercise its rights under the Letter of Credit shall not relieve the CITY and AGENCY, and each of them, from its obligations to psy to the COUNTY the LIABILITIES owed by the DEVELOPER. The CITY and AGENCY, and each of them, are aware and understand that the COUNTY can demand payment from the DEVELOPER, the CITY, and the AGENCY, jointly and severally, at the sole and absolute discretion of the COUNTY. 10. FIRE INSURANCE CITY and AGENCY, and each of them, shall cooperate with COUNTY to obtain and deliver to COUNTY for COUNTY'S approval, certification(s) or policy(s) of standard fire insurance with extended coverage and vandalism end malicious mischief andorsements for the full replace_nt value of PlAZA.. In the event of any damage or destruction to the improvements covered by the insurance, CITY and AGENCY, and each of them, shall use the entire insurence proceeds to restore the improvements. The insurance required under this paragraph shall be maintained by CITY and by AGENCY, et their sole expense for the term of this Contract. Said insurance shall contain endorsements providing that the insurance company issuing the insurance will not cancel or reduce the insurance coverage without thirty (30) days prior written notice to COUNTY. CITY, or AGENCY, or both of them, shall inform COUNTY in writing of any change, expiration or renewal of said insurance within (30) days of the effective date of change. COMPLIANCE YITH LAWS All actions taken by CITY and AGENCY, and by each of them, shall comply with the provisions of the Housing and Community Development Act of 1974 and any amendments thereto (Federal Title 42, U.S.C. Section 5301, ~ .H.lI....). the Federal regulations and guidelines now or hereafter enacted pursuant to said Act (Federal Title 24 CFR, Part 570), Administrative Requirements for Grants (Federal Title 24, CFR, Part 85), Section 3 of the Housing and Urban Development Act of 1968 (Federal Title 24 CFR, Part 135) and all other Federal and State statutes and regulations applicable thereto. COUNTY reserves the right to review any action or decision related to applicable regulations. CITY and AGENCY, and each of them, shall provide to COUNTY within 10 days of written request of COUNTY, any and all documents pertaining to this paragraph as requested by COUNTY. CONFLICT OF INTEREST CITY and AGENCY, jointly and severally, and COUNTY, their agents and employees shall comply with all Federal, State and County laws and regulations governing conflicts of interest. To this end, CITY and AGENCY, jointly and severally, and COUNTY will make available to their agents and employees, copies of all applicable Federal, State and County laws and regulations governing conflict of interest. 5 o o o 14. 15. o o 13. ASSIGNMENT CITY and AGENCY, and each of them, shall not assign this Contract or any interest therein, or the DDA or any interest therein, unless COUNTY has previously given its written conaent. Provided, however, that any approved assignment shall be subject to all the terms, covenants, and conditions of this Contract and of the DDA. If CITY or AGENCY, or both of theil, attempt to effect any unauthorized assignment, or if any transfer occurs by operation of law, or if this Contract or any interest herein, or the DDA or any interest therein, is subjected to garnishment or sale under any execution of any suit or proceeding brought against or by CITY and AGENCY, or either of them, or if CITY and AGENCY, or either of them, are adjudged bankrupt or insolvent by any court or upon CITY or AGENCY, or both of theil, making an assignment for the benefit of creditors, COUNTY may, at its option, forthwith terminate this Contract upon written notice thereof to CITY and to AGENCY, and thereupon, no one but COUNTY shall have any further rights hereunder. VIOlATION OF CONTRACT In the event that CITY and AGENCY, jointly and severally, or their successors, violates any of the terms and conditions of this Contract, COUNTY shall give written notice of violation and dell8nd for correction. If, within thirty (30) days from receipt of written notice, CITY and AGENCY, or either of them, have not corrected the violation or shown acceptable cause therefore, COUNTY has the right to terminate this Contract and/or proceed with whatever other legal rights it I18Y have against the CITY, the AGENCY, and each of them, under the terms of this Contract and/or under the laws of the State of California. REDUCTION IN FUNDING Notwithstanding Section 14, Violation of Contract, above, COUNTY may immediately terminate this Contract upon the termination, suspension, discontinuation or substantial reduction in MUD Community Development Block Grant funding of the Contract activity. 16. REVERSION OF ASSETS 17. All real property acquired or improved in whole or in part with CDBG funds in excess of $25,000 under this Contract must continue in the use that provides the service benefits and national objectives for which it was funded until five years after expiration of this Contract as set forth in the Federal Regulation at 24 CFR 570, or such longer period of time as determined by COUNTY; or it must be disposed of in a I18nner resulting in a reimbursement to COUNTY in the amount of the current fair I18rket value of the property less any portion thereof attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property. MODIFICATIONS This Contract may be amended or modified only by a written agreement signed by all parties. Failure by any party to enforce any provision(s) of this Contract shall not be construed as a waiver of the right to compel enforcement of such provision(s) thereafter. 6 o o o o o 18. NOTICES All notices shall be served in writing. The notices shall be sent by prepaid certified First Class Mail to the following addresses: COUNTY County of San Bernardino Department of Economic and COIDUtIity Development 474 Vest Fifth Street San Bernardino, CA 92415-0040 CITY AND AGENCY City of San Bernardino aedevelopment Agency 300 North -D- Street San Bernardino, CA 92418 19. EFFECTIVE DATE 20. 21. Thb Contract shall be effective upon approval by COUNTY Board of Supervisors and shall expire concurrently with the aforementioned interim Loan Agreement between DEVELOPER and COUNTY. INVALID CONDITIONS If, for any reason, anyone or Dore of the terms, provisions, sections, promises, covenants or conditions of this Contract or DDA is judged by a court of competent jurisdiction to be partially or wholly invalid, unenforceable, void or voidable, all of the remaining terms, provisions, sections, promises, covenants and conditions shall remain valid and enforceable. However, should such judicial decision materially affect the powers and duties of any of the parties to this Contract, the parties shall, if possible in light of the decision of the court, negotiate such amendment to this Contract as is necessary to carry out the intent of the parties hereto. If it is not possible to so amend this Contract, then the parties shall, to the extent reasonably possible, return each other to the position each party occupied prior to entering this Contract. BINDING INTEREST This Contract shall be binding on the parties, successors in interest, heirs and assigns. 7 o o o o o IN WITNESS WEREOF. the parties have caused thb Contract to be executed as of the day and year written above. COUNTY OF SAN BERNARDINO By: Chairman Dated: SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUHENT HAS BEEN DELIVERED TO THE CHAIRHAN OF THE BOARD E,t.IIT RNE SPROAT Clerk of the BOard of Supervisors of the County of San Bernardino By: Dated: APPROVED AS TO LEGAL FORM By: AGMTS/pIAZA.AGT 3/l8/9l/BT/bjj 5/2/9l/BT/pn CITY OF SAN BERNARDINO By: Mayor Dated: By: City Attorney Dated: CITY OF SAN BERNARDINO REDEVELOPMENT AGENCY By: Dated: 8