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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Gary Van Osdel
Executive Director
SUBJECT:
AGREEMENT BETWEEN CASA
RAMONA AND THE
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
DATE: November 23, 1999
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SvnoDsis of Previous Commission/CounciVCommittee Action(s):
On May 6, 1996, the Mayor and Common Council approved the revised Second Year Action Plan component of the
1995-1999 Consolidated Plan which included funding in the amount of$300,000 for the New Casa Ramona Project
On January 6, 1999, the Mayor and Common Council adopted a Resolution awarding an Agreement for Professional
Services to Ultrasystems Environmental Incorporated to prepare a joint NEPAlCEQA environmental document for the
New Casa Ramona Project.
Recommended Motion(s):
(Community DeveloDment Commission)
MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO, THE GOVERNING BODY OF THE REDEVELOPMENT AGENCY (I) MAKING
CERTAIN FINDINGS UNDER HEALTH AND SAFETY CODE SECTION 33334.2(eX2)(B) WITH
RESPECT TO THE USE OF LOW AND MODERATE INCOME HOUSING FUNDS; (2)
APPROVING THE 1999 GRANT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO AND CASA RAMONA, INe. (CASA RAMONA
COMMUNITY CENTER REDEVELOPMENT PROJECT); AND (3) AUTHORIZING THE
AGENCY CHAIRPERSON AND THE EXECUTIVE DIRECTOR TO EXECUTE SAID 1999
GRANT AGREEMENT
Contact Person(s):
Gary Van OsdeV
Phone:
5081
One (I)
Project Area( s)
Ward(s):
Supporting Data Attached: Ii1I Staff Report Ii1I ResolutioD(S) Ii1I Agreement(s)/Contract(s) 0 Map(s) 0 Letrer/Memo
FUNDING REQUIREMENTS Amount: $ 240,000
Source:
20% Set-Aside
Budget Authority:
Requested
SIGNATURE:
CommiSSiOiiTCouncil Notes: ----------.-.--.-.-.-.-.-.-.-.-.-.-.-.-.----.-.-.-.-.--.------.------
GVO:lag:99-12-06 Casa Ramona
COMMISSION MEETING AGENDA
Meeting Date: 12/06/1999
Agenda Item Number: R 3 'L-
"
ECONOMIC DEVELoPMENT AGENCY
STAFF REPORT
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Al!:reement Between Casa Ramona And The Redevelooment Al!:encv
of The City Of San Bernardino
BACKGROUND
On May 6, 1996, the Mayor and Common Council approved a revised second year Action Plan
component to the City's 1995-1999 CDBG Consolidated Plan. An allocation of $300,000 in
CDBG funds was included within this revised Action Plan for an activity referred to as the "New
Casa Ramona Project". The $300,000 in CDBG funds, allocated to the Casa Ramona Board of
Directors, was to be used to pay the cost of architectural plans, specifications and environmental
documentation for construction of a new community/senior center to replace the old Casa
Ramona building.
In late May of 1996, as part of the preliminary environmental review process, Agency staff
contacted the State Historical Preservation Office (SHPO) regarding the proposed "New Casa
Ramona Project". Subsequently, SHPO determined that the existing Casa Ramona building was
eligible for listing on the National Register of Historic Places. As a result of SHPO's
determination, HUD advised Agency staff that it would not release CDBG funds to prepare plans
and specifications that presuppose all or partial demolition of the existing Casa Ramona building.
However, the Casa Ramona Board of Directors had no interest, desire or intent to use their
CDBG allocation to prepare plans and specs for an adaptive reuse and seismic retrofit of the
existing Casa Ramona building. Thus, over the next 2-1/2 years, Agency staff did very little if
anything to move the "New Casa Ramona Project" forward, and failed altogether to explore
alternative means for assisting the Casa Ramona Board of Directors meet its goal.
In January of 1999, the Development Services Department awarded a contract to Ultrasystems
Environmental Incorporated to prepare a formal environmental study of the Casa Ramona Board
of Directors preferred development option: the demolition and removal of all but the front fa~ade
of the existing Casa Ramona building and the construction of a new community/senior center. In
May of 1999, the draft environmental study, which was funded with a portion of the original
CDBG allocation, was completed. The environmental study concluded, among many other
things, that demolishing the existing Casa Ramona building is not an acceptable option to SHPO.
GVO:lag:99-12-06 Casa Ramona
COMMISSION MEETING AGENDA
Meeting Date: 12/06/1999
Agenda Item Number: ~
,
Economic Development Agency Staff Report
Casa Ramona
November 22,1999
Page Number -2-
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CURRENT ISSUE
In as much as the Casa Ramona preferred development option is unacceptable to SHPO, federal
CDBG funds cannot be used to pay for the preparation of plans and specifications for such
option. For this reason, staff has recommended that the $242,300 balance of CDBG funds
remaining in this activity account be reallocated to other CDBG eligible activities or projects,
and proposes herein that $240,000 in Agency 20% Set-Aside funds be allocated to the Casa
Ramona Board of Directors to cover the cost of preparing plans and specifications for their
preferred development option.
Located adjacent to the existing Casa Ramona building is the Ramona Senior Housing project
which houses 44 low and moderate income elderly residents. Because of its close proximity to
the Casa Ramona Center, the Ramona Senior Housing Project was developed without many of
the service amenities which are typically an integral part of elderly housing. Thus, the residents
of Ramona Senior Housing are almost entirely dependent upon the existing Casa Ramona
building for meeting their service needs. The new Center will enable the Casa Ramona Board of
Directors to provide additional and enhanced services to meet the social, cultural, nutritional and
recreational needs of these senior citizen residents. Thus, the Agency Special Counsel has
determined that the expenditure of 20% Set Aside funds for the proposed purpose is an eligible
use pursuant to Redevelopment Law
FISCAL IMPACT
20% Housing Fund monies are available in the Agency's 1999-2000 budget for eligible housing
and housing related activities.
RECOMMENDATION
That the Community Development Commission adopt the attached Resolution.
GVO:lag:99-12-06 Casa Ramona
COMMISSION MEETING AGENDA
Meeting Date: 12/06/1999
Agenda Item Number: R 31--
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO, THe
GOVERNING BODY OF THE REDEVELOPMENT AGENCY (11
MAKING CERTAIN FINDINGS UNDER HEALTH AND
SAFETY CODE SECTION 33334.2(e) (2) (B) WITH
RESPECT TO THE USE OF LOW AND MODERATE INCOME
HOUSING FUNDS; (2) APPROVING THE 1999 GRANT
AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO AND CASA RAMONA,
INC. (CASA RAMONA COMMUNITY CENTER
REDEVELOPMENT PROJECT); AND (3) AUTHORIZING
THE AGENCY CHAIRPERSON AND THE EXECUTIVE
DIRECTOR TO EXECUTE SAID 1999 GRANT AGREEMENT
WHEREAS, the Redevelopment Agency of the City of San
11 Bernardino ("Agency") is a public body, corporate and politic,
12 organized and existing pursuant to the constitution of the State of
13 California; and
WHEREAS, Casa Ramona, Inc., a California non-profit
16 corporation ("Casa Ramona") proposes to redevelop and potentially
17 expand a new community center situated adjacent to the Mount Vernon
18 Redevelopment Project Area on a site owned by Casa Ramona; and
19
20 WHEREAS, a grant by the Agency of up to Two Hundred Forty
21 Thousand Dollars ($240,000.00) for design and redevelopment of the
22 new Casa Ramona community center project ("New Community Center
23 Project") will provide substantial benefits to low and moderate
24 income persons and households who reside in the redevelopment
25 project area of the Mount Vernon Redevelopment Project and the
26 surrounding residential neighborhoods, particularly the senior
citizens residing at the Ramona Senior Complex; and
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WHEREAS, in or about 1995, the Agency and Ramona Senior
Complex, Inc., entered into an agreement for the development of a
forty four (44) unit senior citizen residential housing project,
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together with limited amenities ("Ramona Senior Complex"), and the
5 New Community Center Project will enhance the amenities and
6 programs offered at the Ramona Senior Complex.
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8
WHEREAS, it is proposed that a grant agreement in
9 substantially the form attached hereto as Exhibit "A" (the "1999
10 Grant Agreement") be entered into by and among the Agency and Casa
11 Ramona pursuant to which the Agency will disburse funds to Casa
12 Ramona for the purpose of designing and redeveloping the New
13 Community Center Project.
014
15 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
16 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, THE
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17 GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
18 BERNARDINO, AS FOLLOWS:
19
20
This resolution is adopted in furtherance of
Section 1.
21 the provisions of Health and Safety Code Section 33334.2(e) (2) (B).
22 The Commission hereby finds that the redevelopment and potential
23 expansion of the New Community Center Project, as proposed by Casa
24 Ramona, shall eliminate certain conditions of blight adjacent to
25 or in close proximity to the redevelopment project area of the
26 Mount Vernon Redevelopment Project for the following reasons:
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a.
The New Community Center Project will provide
2 necessary enhanced community and public services to low and
3 moderate income persons and households, specifically those residing
4 at the Ramona Senior Complex, and extend the low and moderate
5 income housing efforts of the Agency in its Mount Vernon
6 Redevelopment Project Area and such community and public services
7 cannot reasonably be provided through other means.
8
9
The New Community Center Project will provide for
b.
10 necessary additional and enhanced community and public services to
11 be made available to the low and moderate income senior citizen
12 residents living at the Ramona Senior Complex.
13
c. Casa Ramona provides and will continue to provide,
at the New Community Center Project, necessary community and public
services to the low and moderate income senior citizen residents of
17
the Ramona Senior Complex, with minimal cost to said residents or
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to the Ramona Senior Complex.
d.
Casa Ramona owns the medical center adjacent to the
21 Ramona Senior Complex and the physician care and other health
22 services provided at the medical center are available and necessary
23 for the low and moderate income senior citizen residents of the
24 Ramona Senior Complex.
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e.
The maximum amount of the Two Hundred Forty Thousand
Dollar ($240,000.00) Agency grant is substantially less than the
amount of money which would be required for the Agency to design
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and construct the New Community Center Project so that Casa Ramona
may provide the necessary enhanced and additional community and
3 public services that Casa Ramona will provide at the New Community
4 Center Project to the low and moderate income senior citizen
5 residents of the Ramona Senior Complex and other low and moderate
6 income residents of the Mount Vernon Redevelopment Project Area.
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f.
Casa Ramona has made additional vehicle parking
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available on property owned by Casa Ramona located within the New
10
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Community Center Project Site, to accommodate the requirements of
residents and visitors to the Ramona Senior Complex and the New
Community Center proj ect and Casa Ramona will enter into such
reciprocal parking agreements as may be necessary to ensure the
availability of such parking as provided herein.
g.
The development cost of the Casa Ramona resident and
17 visitor parking and the New Community Center proj ect equals or
18 exceeds the value of the Two Hundred Forty Thousand Dollar
19 ($240,000.00) maximum grant from the Agency Low and Moderate Income
20 Housing Fund under the 1999 Grant Agreement.
21
22
Section 2.
The form of the 1999 Grant Agreement attached
23 hereto as Exhibit "Au is hereby approved. The Chairperson of the
24 Commission and the Executive Director of the Redevelopment Agency
25 are hereby authorized and directed for and in the name of and on
26 behalf of the Agency to execute and deliver the 1999 Grant
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Agreement in substantially the form attached hereto as Exhibit "Au
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and presented to and considered at this meeting, together with such
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conforming changes therein as may be recommended by the Executive
Director of the Agency or Agency Counsel. The 1999 Grant Agreement
shall take effect on the date when it has been fully executed by
4 the parties as evidenced by the signatures of the authorized
5 officers of each of them. The Executive Director of the Agency is
6 hereby authorized and directed to establish and maintain a ledger
7 to record any and all transactions which occur under the 1999 Grant
8 Agreement approved herein.
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1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO, THE GOVERNING BODY OF THE REDEVELOPMENT AGENCY (1)
2 MAKING CERTAIN FINDINGS UNDER HEALTH AND SAFETY CODE SECTION
33334.2(e) (2) (B) WITH RESPECT TO THE USE OF LOW AND MODERATE INCOME
3 HOUSING FUNDS; (2) APPROVING THE 1999 GRANT AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CASA RAMONA,
4 INC. (CASA RAMONA COMMUNITY CENTER REDEVELOPMENT PROJECT); AND (3)
AUTHORIZING THE AGENCY CHAIRPERSON AND THE EXECUTIVE DIRECTOR TO
5 EXECUTE SAID 1999 GRANT AGREEMENT
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Section 3.
This Resolution shall become effective
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immediately upon its adoption.
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I HEREBY CERTIFY that the foregoing Resolution was duly
adopted by the Community Development Commission of the City of
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San Bernardino at a
meeting
thereof, held on the
day of
, 1999, by
the following vote, to wit:
AYEQ
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ABSTAIN ABSENT
Secretary
The foregoing Resolution is hereby approved this
, 1999.
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Judith Valles, Chairperson
Community Development Commission
of the City of San Bernardino
content:
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
CITY OF SAN BERNARDINO
ss
4 I, Secretary of the Community
Development Commission of the City of San Bernardino, DO HEREBY
5 CERTIFY that the foregoing and attached copy of Community
Development Commission of the City of San Bernardino Resolution
6 No. is a full, true and correct copy of that now on file
in this office.
7
IN WITNESS WHEREOF, I have hereunto set my hand and
8 affixed the official seal of the Community Development Commission
of the City of San Bernardino this ____ day of , 1999.
9
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Secretary of the
Community Development Commission
of the City of San Bernardino
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CDC 1999-45
[l~
JIlP.n.vJ:LOPMID1T AGENCY OF THE Cl:TY OF SAN Bl!!RNllRnmO
1999 GRAN'!' AGREEMENT BETWEEN THE UDBVELOPMBNT AGENCY OF THE Cl:TY
OF SAN BBItNAlU)mO AND CASA RAMONA, mc.
(CASA RAMONA COMMUNl:TY CENTER REDEVELOPMENT PROJECT)
THIS 1999 GRANT AGREEMENT (the "1999 Grant Agreement") is
hereby made between Casa Ramona, Inc., a California non-profit
corporation ("Casa Ramona"), and the Redevelopment Agency of the
City of San Bernardino, a public body corporate and politic (the
"Agency") ,regarding redevelopment and expansion of a new community
center to be constructed and operated by Casa Ramona (the "New
Community Center Project") on lands owned by Casa Ramona, all as
more fully set forth herein.
IN CONSIDERATION OF THE COVENANTS AND PROMISES OF THE
PARTIES TO THE 1999 GRANT AGREEMENT, CAS A RAMONA AND THE AGENCY
HEREBY AGREE AS FOLLOWS:
Section 1. Representations and Release.
1. Casa Ramona hereby represents and warrants that it
is a valid and active non-profit corporation incorporated under the
laws of the State of California and of the United States. Casa
Ramona also represents and warrants that the non-profit community
services it provides are focused predominantly upon the delivery of
"community and public services" and "affordable rental housing" to
persons and families of low and moderate income, as these terms are
defined under applicable state and federal law. Casa Ramona shall
not use any Agency grant funds disbursed to Casa Ramona under this
1999 Grant Agreement for payment of employee, administrative or
supply expenses of Casa Ramona.
2. Casa Ramona hereby covenants and agrees to use its
best efforts to obtain all other funding required (when added to
amounts disbursed by the Agency under this 1999 Grant Agreement) to
cause the New Community Center Project to be constructed and
completed as set forth in this 1999 Grant Agreement.
3. Upon completion of the New Community Center Project,
Cas a Ramona hereby agrees to operate the New Community Center
proj ect and to provide and make available for the benefit of
persons and households of low and moderate income, the community
and public services, as generally described in Section 2, below,
for a term of not less than fifteen (IS) years following the date
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of issuance of a Certificate of Occupancy by the City of San
Bernardino Building Department for the New Community Center
Project.
4. Cas a Ramona hereby acknowledges and agrees that all
prior action by the City of San Bernardino to set aside Community
Development Block Grant funds for the New Community Center Project.
shall be of no force or effect and that no Community Development
Block Grant funds of the City of San Bernardino shall be made
available for the New Community Center Project.
5. The Agency hereby represents and warrants that it
has undertaken all acts and proceedings required by law as
necessary to make this 1999 Grant Agreement, when executed by the
authorized officers of the Agency, a valid, binding and legal
obligation of the Agency.
Section 2. Description of New Community Center Project.
The' New Community Center Project shall include the
design, construction and financing of a thirty thousand (30,000) to
fifty thousand (50,000) square foot structure and appurtenant on-
site parking and landscaping to replace and expand the facility as
currently occupied by Casa Ramona at 1524 Seventh Street, San
Bernardino, California. The lands on which the New Community
Center Project shall be located (the ~Site") are more particularly
described in the legal description attached hereto as Exhibit ~A."
The estimated cost of the design and construction of the New
Community Center Project, as of the date of this 1999 Grant
Agreement, is between two and one-half (2.5) and three (3) million
dollars. Casa Ramona shall decide whether any portions of the
current building shall be retained or the entire existing structure
shall be demolished and a new building constructed on the Site.
All child day care center, . community center and senior center
activities occurring on the Site as of the date of this 1999 Grant
Agreement shall be continued at the New Community Center Project
together with anticipated County of San Bernardino offices to be
relocated to the New Community Center Project. Upon completion of
the New Community Center Project, Casa Ramona shall use the
facility to provide community and public services to persons and
households of low and moderate income. For the purpose of this
1999 Grant Agreement, the words ~community and public services"
shall have the same meaning as set forth at 24 eFR Part 570.506(b).
Section 3. Aqency Grant - Terms and Conditio~s.
1. Subj ect to the terms and conditions of, this 1999
Grant Agreement, the Agency hereby allocates the sum of Two Hundred
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Forty Thousand Dollars ($240,000.00) (the "Agency Grant") from the
fiscal year 1999-2000 low and moderate income housing fund for use
and application by Casa Ramona to pay for certain costs associated
with the redevelopment of the New Community Center Project, as set
forth herein. Casa Ramona may use and apply the proceeds of the
Agency Grant to pay for any of the following: (i) architect and
design engineering services in connection with the preparation of
design plans for the New Community Center Project; (ii)
geotechnical and environmental engineering costs and other pre-
development design costs; (iii) development impact mitigation fees,
capital charges and building permits payable to public agencies;
(iv) to capitalize a funded construction interest ahd debt service
reserve account to be held by a construction lender for the New
Community Center Project; (v) course of construction management and
supervision services for the New Community Center Project.
2. The Agency will disburse installments of the Agency
Grant under this 1999 Grant Agreement directly to Casa Ramona for
payment of certain development fees, as set forth in Section 3.1.
above, upon submission of reimbursement requests and back-up
invoices to the Agency by Casa Ramona. Disbursements to Casa
Ramona shall be made in the normal course of business for check
disbursements by the Agency, which time period shall not exceed ten
(10) days from receipt by the Agency of. each reimbursement
request(s) and back-up invoice(s) from Casa Ramona. C0ncurrent
with the first reimbursement request to the Agency under this 1999
Grant Agreement, Cas a Ramona shall execute the regulatory agreement
and property use covenant attached hereto as Exhibit "B," in
recordable form and deliver it to the Agency for recordation in the
official records of the Recorder of the County of San Bernardino.
Upon receipt of the first reimbursement request and said covenants,
the Agency shall make the first disbursement of the Agency Grant.
3. This 1999 Grant Agreement is not intended by either
Casa Ramona or the Agency to create any rights, remedies or claims,
either express or implied, in any person or entity, other than Casa
Ramona or the Agency. The Agency shall have no liability to any
architect, engineer and/or space planner or other consultant
retained by Casa Ramona.
4. The Agency shall only disburse amounts required to
obtain preliminary site plans, elevations, floor plans and
archi tectural renderings from the architect and space planners
retained by Casa Ramona for such purposes, prior to such time as
Casa Ramona has obtained: (i) signed letters of intent from
prospective tenants for at least 50% of the New Community Center
Project square footage and (ii) preliminary letters of commitment
for funding the construction of the New Community Center Project
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have been obtained from lenders and/or providers of contributions,
grants or other sources of funding for the comple~ion of the
construction of the New Community Center Projeft. Upon
satisfaction of any of the above conditions, any amoun~; remaining
of the Grant Amount may be disbursed by the Agency to Casa Ramona
for the completion of the architectural drawings, final site plans,
plans and specifications and all construction working drawings in'
accordance with Sections 3.1. and 3.2. of this 1999 Grant
Agreement.
5. Casa Ramona shall be solely responsible for
obtaining funds, as necessary to pay for any other pre-development
expenditures for the New Community Center Project in excess of the
Agency Grant.
6. The Agency shall not disburse any portion of the
Agency Grant on or after the fifth (5th) anniversary following the
date of this 1999 Grant Agreement. In the event the planning and
design of the New Community Center Project is suspended by Casa
Ramona or in ,the event that a Certificate of Occupancy is not
issued for the New Community Center Project by the City of San
Bernardino Building Department on or before December 6, 2004, the
remaining balance of the Agency Grant which has not been disbursed
for the account of Casa Ramona shall revert to'the Agency and Cas a
Ramona shall repay any previously disbursed amount of the Agency
Grant to the Agency, together with interest at 3% per annum on a
10-year amortization schedule with equal, consecutive monthly
payments commencing on January 6, 2005, continuing through and
including December 6, 2014. The date for completion of
construction and issuance of the Certificate of Occupancy for the
New Community Center Project may be extended by written agreement
of the parties. Additionally, the date for completion of
construction and issuance of the Certificate of Occupancy for the
New Community Center Project, shall be extended due to any forces
and/or matters beyond the control of Casa Ramona, as shall be
demonstrated by Casa Ramona, to the satisfaction of the Agency.
7. Casa Ramona shall be solely responsible for
obtaining construction funds from whatever sources as may be
available, including, but not limited to, federal, state or local
agencies and/or conventional construction lenders.
8. Casa Ramona hereby acknowledges and agrees that it
will have the sole responsibility for obtaining all ertitlements
and approvals necessary for completion of the New Commurity Center
Proj ect through the City of San Bernardino Planning. Department
process, including, but not limited to, California Environmental
Quality Act (CEQA) compliance certification, land use entitlements,
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permits, building permits and any other applicable approvals
required by federal, state or local governments or agencies and
payment of all associated fees necessary for completion of the New
Community Center Project.
9. Casa Ramona hereby agrees to use its best efforts to
obtain from Ramona Senior Complex, Inc., an executed and recordable
notice of extension of the affordability covenants under the tax
credit financing structure applicable to the housing units annually
operated by Ramona Senior Complex, Inc., in the territorial
jurisdiction of the City of San Bernardino to terminate on a date
not earlier than the date that the Mount Vernon Community
Redevelopment Plan terminates.
10. In the event of default or breach of this 1999 Grant
Agreement on the part of Casa Ramona, the Agency shall be entitled
to exercise every and all remedies set forth in the "Low and
Moderate Income Resident Services Regulatory Agreement and Property
Use Covenant" attached hereto as Exhibit "B" and incorporated
herein by this reference.
11. Upon the request of Casa Ramona and for the purpose
of allowing Casa Ramona to obtain financing for design,
redevelopment or construction of the New Community Center Project
from sources other than the Agency, the Agency may consent to
subordination of the "Low and Moderate Income Resident Services
Regulatory Agreement and Property Use Covenant" attached hereto as
Exhibit "B" and required to be executed and recorded under Section
3.2 of this 1999 Grant Agreement to any recordable security
interest of such financing source in the New Community Center
Project, which consent shall not be unreasonably withheld by the
Agency.
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IN WITNESS WHEREOF, the Agency and Casa Ram~na execute
this 1999 Grant Agreement, as follows:
AGENCY
Redevelopment Agency of the City
of San Ber r ino
By:
of
By:
By:
CASA RAMONA
Cas a Ramona, Inc.
By:
~~<
RArt' V. CORONADO
---"
By:
BOARD
Its: SECRETARY
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EXBXBXT "A"
LEGAL DESCRIPTXON OF SXTE
Parcel 2 of Parcel Map No. 13725, in the City of San Bernardino,
County of San Bernardino, State of California, as per plat recorded
in Book 168 of Parcel Maps, pages 93 and 94, records of said
county.
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EXHIBIT "B"
REGULATORY AGREEMENT AND USE COVENANTS
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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
201 North "E" Street, Suite
San Bernardino, California
ATTN: Executive Director
301
92401
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
LOW AND MODERATE INCOME RESIDENT SERVICES REGULATORY AGREEMENT
AND PROPERTY USE COVENANT
(San Bernardino County Assessor
Parcel No. 0139-273-27)
CASA ~ONA COMMUNITY SERVICES EXPANSION PROJECT --
THIS 1999 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
LOW AND MODERATE INCOME RESIDENT SERVICES REGULATORY AGREEMENT AND
PROPERTY USE COVENANT (the "Agency Covenant") is dated as of
1999, by and between Casa Ramona, Inc., a California
non-profit corporation ("Casa Ramona") and the Redevelopment Agency
of the City of San Bernardino, a body corporate and politic (the
"Agency"), with respect to the following facts set forth in the
RECITALS of this Agency Covenant:
. -- RECITALS
1. This Agency Covena~t affects the real property located at
1524 Seventh Street, San Bernardino, California (the "Property").
The Property includes improvements which Casa Ramona uses to
provide community services to persons and households of low and
moderate income. A legal description of the Property is attached
hereto as Exhibit "A," and incorporated herein by this refer~n~e.
2. Casa Ramona is the owner of the Property.
3. Casa Ramona has obtained a portion of the cost for its
redevelopment and expansion of the building improvements on the
Property from the Agency pursuant to the terms and conditions of an
agreement entitled "1999 Grant Agreement Between the Redevelopment
Agency of the City of San Bernardino and Casa Ramona (Casa Ramona
Community Center Redevelopment and Expansion Project)" dated
1999 (the "1999 Grant Agreement") by and between
the Casa Ramona and the Agency.
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4. Casa Ramona and the Agency have caused this Agency
Covenant to be recorded as a covenant which affects the Property
and which runs with the land for the term set forth herein in order
to implement certain provisions of the "1999 Grant Agreement" with
respect to the "New Community Center Project", as these terms are
defined in the 1999 Grant Agreement.
CASA RAMONA AND THE AGENCY FOR THEMSELVES, AND THEIR
SUCCESSORS AND ASSIGNS, HEREBY COVENANT AND AGREE AS FOLLOWS:
Section 1. Incornoration bv Reference of 1999 Grant
Acrreement. The provisions of the 1999 Grant Agreement are hereby
incorporated into this Agency Covenant by this reference. A true
and correct copy of the 1999 Grant Agreement is on file with the
Agency Secretary as a public record, and interested persons may
inspect the 1999 Grant Agreement during regular business hours of
the Agency Secretary.
Unless the context of the usage of a particular defined
term, as used.in this Agency Covenant, may specifically require,
the meaning of all defined terms, as used in this Agency Covenant,
shall have the same meaning as set forth in the 1999 Grant
Agreement.
Section 2. Term of Acrency Covenant.
terminated as set forth in Section 6, below, this
shall have a term which ends on the earlier of the
to occur:
Unle~s sooner
Agency Covenant
following dates
(i) twenty (20) years following the date of
recordation of this Agency Covenant; or
(ii) on the fifteenth (15th) anniversary following
the issuance of a Certificate of Completion for the New
Community Center Project as set forth in Section 7 of the
1999 Grant Agreement.
both the
Period."
The term of this Agency Covenant is also referred to in
1999 Grant Agreement and herein as the "Compliance
Section 3. Acrency Covenant Use of the Pronertv.
During the Compliance Period of this Agency Covenant, the Property
shall be used or reserved for use by a community non-profit
organization to provide community and public services which
substantially benefit persons and households of low and moderate
income in compliance with the 1999 Grant Agreement. As used in
this Section 3, the words "community and public services" shall
have the same meaning as set forth at 24CFR Part 570.21(e).
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Section 4. Aaency Covenant--Business and Comoliance
. Records of Casa Ramona.
(a) During the Compliance Period of this Agency
Covenant, certain business records must be established and
maintained in accordance with the provisions of 24 CFR Part 570.506
which relate to the use of the Property for community and public
services use purposes authorized under Section 3 of this Agency
Covenant and Sections 1. 2 and 2.1 of the 1999 Grant Agreement.
Casa Ramona shall be responsible for establishing and maintaining
such records, and Casa Ramona shall provide the Agency with copies
of such records within thirty (30) days of any written request by
the Agency.
(b) Casa Ramona and all persons in possession of the
Property shall permit the Agency to conduct inspections of the
Property from time-to-time for purposes of verifying compliance
with this Agency Covenant upon thirty (30) days prior written
notice to Casa Ramona.
Section 5.
Indemnitv of the Agency.
(a) From and after the date on which a Certificate of
Occupancy for the New Community Center Project, as set forth in the
1999 Grant Agreement, has been issued, Cas a Ramona waives all
claims, suits, losses, damages, costs (including reasonable
attorney's fees) and demands, administrative fees, penalties, and
fines imposed, connected therewith and hereby agrees to indemnify,
defend and hold harmless the Agency, its officers, agents and
employees from any and all claims, suits, losses, damages, costs
(including reasonable attorney's fees), administrative fees,
penalties, demands (including reasonable attorney's fees) and fines
imposed, connected therewith, on account of any personal injury,
including death or property damage sustained by any person or
entity which in any way relates to the Property or the New
Community Center Project. The costs, salary and expenses of the
City Attorney and members of his office in enforcing this Agreement
on behalf of City shall be considered as "attorney's fees" for the
purposes of this paragraph.
(b) While not restricting or limiting the foregoing,
during the term of this Agreement, Casa Ramona shall maintain in
effect policies of comprehensive public, general and automobile
liability insurance, in the amount of $1,000,000.00 combined single
limit, and statutory Worker's Compensation coverage, and shall file
copies of said policies with the City's Risk Manager prior to
undertaking any work under this Agreement. City shall be set forth
as an additional named insured in each policy of insurance provided
hereunder. The Certificate of Insurance furnished to the City shall
require the insurer to notify City of any change or termination in
the policy.
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Section 6.
Earlv Termination of Aaencv Covenant.
(a) This Agency Covenant shall remain in effect during
the Compliance Period, unless sooner terminated in the sole and
absolute discretion of Cas a Ramona as set forth in this Section 6.
(b) Casa Ramona may determine that the continued use of
the Property for the community and public services use purposes'
described in Section 3 of this Agency Covenant, is no longer
necessary or appropriate. In such an event Casa Ramona shall give
the Agency at least thirty (30) days prior written notice of its
intention to consider such a determination. Such written notice of
Casa Ramona shall include a reference to Section 6 (b) of this
Agency Covenant.
(c) In the event that Casa Ramona may determine to use
the Property for a purpose other than the community and public
services uses, as described under Section 3 of this Agency
Covenant, Casa Ramona shall reimburse the Agency a sum equal to the
amount in cash derived by the application of the following
formula: 1
A - [(0.067 x Covenant Years) x A]
(d) Casa Ramona shall pay to the Agency the sum
indicated in Section 6(c)of this Agency Covenant, as applicable,
within ninety (90) days following the date on which Casa Ramona may
complete the actions necessary to terminate the community and
public service use restriction affecting the Property as described
in Section 3. Concurrently, upon receipt of such sum, the Agency
shall deliver to Casa Ramona a written acknowledgment of
cancellation and discharge of this Agency Covenant in recordable
form acceptable to CasaRamona which has been duly executed by
authorized officers of the Agency.
Section 7. Covenant Aaainst Unlawful Discrimination.
No person shall, on the grounds of race, sex, creed, color,
religion or national origin, be excluded from participating in or
be refused the benefits of or otherwise subjected to discrimination
in connection with the use of the Property.
Section 8. Maintenance Condition of the Prooertv.
Casa Ramona for itself, its successors and assigns hereby covenants
and agrees that the areas of the Property which are subject to
1 Notes for Section 6(c) above:
"A" = Agency Low and Moderate Income Housing funds disbursed for the
Center.
"Covenant Years" = the number of' years which have passed since this
Agency Covenant went into effect.
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public view (including all existing improvements, paving, walkways,
landscaping, exterior signage and ornamentation) shall be
maintained in good repair and a neat, clean and orderly condition,
ordinary wear and tear excepted. In the event that at any time
during the Compliance Period of this Agency Covenant there is an
occurrence of an adverse condition on any area of the Property
which is subject to public view in contravention of the general
maintenance standard described above (a "Maintenance Deficiency");
then the Agency shall notify Casa Ramona in writing of the
Maintenance Deficiency and give Casa Ramona sixty (60) days from
receipt of such notice to cure the Maintenance Deficiency as
identified in the notice. In the event Casa Ramona fails to cure
or commence to cure the Maintenance Deficiency within the time
allowed, the Agency may conduct a public hearing following
transmittal of written notice thereof to Casa Ramona ten (10) days
prior to the scheduled date of such public hearing in order to
verify whether a Maintenance Deficiency exists and whether Casa
Ramona has failed to comply with the provisions of this Section 8.
If upon the conclusion of a public hearing, the Agency makes a
finding that a Maintenance Deficiency exists and that there appears
to be non-compliance with the general maintenance standard,
described above, thereafter the Agency shall have the right to
enter the Property and perform all acts necessary to cure the
Maintenance Deficiency, or to take other action at la1!'1 or equity
the Agency may then have to accomplish the abatemtnt of the
Maintenance Deficiency. Any sum expended by the Agency for the
abatement of a Maintenance Deficiency on the Property authorized by
this Section 8 shall be paid to the Agency by Casa Ramona within
thirty (30) days after written demand for payment by the Agency to
Casa Ramona.
Section 9. Notice. Defaults and Breach - General.
Failure or delay by either party to perform any material term or
provision of this Agency Covenant or the 1999 Grant Agreement shall
constitute a default hereunder; provided, however, that if the
party who is otherwise claimed to be in default by the other party
commences to cure, correct or remedy the alleged default within
thirty (30) calendar days after receipt of written notice
specifying such default and shall diligently complete such cure,
correction or remedy, such party shall not be deemed to be in
default hereunder.
The party which may claim that a default has occurred
shall give written notice of default to the party in default,
specifying the alleged default. Delay in giving such nptice shall
not constitute a waiver of any default nor shall it charige the time
of default; provided, however, the injured party shall have no
right to exercise any remedy for a default hereuncjer without
delivering the written default notice as specified her~in.
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-,
Any failure or delay by a party in asserting any of its
rights and remedies as to any default shall not operate as a waiver
of any default or of any rights or remedies associated with a
defaul t. Except with respect to rights and remedies expressly
declared to be exclusive in this Agency Covenant, the rights and
remedies of the parties are cumulative and the exercise by either
party of one or more of such rights or remedies shall not preclude
the exercise by it, at the same or different times, of any other
rights or remedies for the same default or any other default by the
other party.
In the event that a default of either party may remain
uncured for more than thirty (30) calendar days foilowing written
notice, as provided above, a "breach" shall be deemed to have
occurred. In the event of a breach, the party who is not in
default shall be entitled to seek any appropriate remedy or damages
by initiating legal proceedings.
For the purposes of giving notice under any prov~s~on of
this Agency Covenant, the addresses to which such notice shall be
transmitted are as follows:
For Casa Ramona:
For Agency:
RAY V. CORONADO
Redevelopment Agency of the
City of San Bernardino
ATTN: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
ATTN: JERRY CASILLAS
SECRETARY
Section 10. Aaency Covenant Runs With the Land. The
provisions of this Agency Covenant shall be covenants which run
with the land and the Property for the Compliance Period. This
Agency Covenant is expressly-declared by the parties to be for the
benefit of the Property and the redevelopment project area of the
Mount Vernon Redevelopment Project.
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IN WITNESS HEREOF, the parties authorized officers of the
parties have caused this Agency Covenant to be executed on the
dates indicated below.
CAS A RAMONA
Casa Ramona, Inc., a California
non-profit corporation
Dated:DECEMBER 15. 1999
AGENCY
Redevelopment Agency of the
City of San ernardino
Dated:
/;lja-)"9"t
f '
Valles
of the Community
pment Commission
AT~~
Agency Secretary
Dated: /-I~7~
By:
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EXHIBIT "A"
LEGAL DESCRIPTION OF NEW COMMUNITY CENTER PROJECT SITE PROPERTY
Parcel 2 of Parcel Map No. 13725, in the City of San Bernardino,
County of San Bernardino, State of California, as per plat
recorded in Book 168 of Parcel Maps, pages 93 and 94, records of
said county.
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