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ORIGINAL
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FOR OFFICE USE ONLY
Daterrime Stamp:
RECEIVFI.:11'( cUFf
DeparbneDts Receiving
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Original to:
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Date of Distribution: ~~ 1.0
Last Updated: 3/26/96
'96 ~UG 22 roO:\ 2
Payment Information:
Account 001-000-4303
CITY OF SAN BERNARDINO - NOTICE OF APPEAL
IMPORTANT INFORMATION: Pursuant to Council Action, all Mayor and Common Council
appeals must be tiled in the City Clerk's Office accompanied by the appropriate fee.
ComDlete All Information
Appellant Name
& Address:
Contact Person
& Address:
FDr L L ~~",...l Oepo'),':(, X~<;~<:.--< ("rf~-f."'--
cfo f'^-a.'- '5e....:-V"l'''-''''-...,-:I:-~c .
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Contact Person Phone ~
Number: Da 'toe<) 'i'er - V,/"Cf,
Evening: Cq<>-'t) 39.r - 006 {c-)'2-1
Affected Property
Address&APN# {Q'1r:;_II"! S'f '5,13. AP('J {'to -{)82--IY
Tvve of Anneal - Check One:
Appeal to the Mayor & Common Council:
(*Adjusted Annually)
_ Planning Commission ($122.00 *)
~ Building Abatement ($75.00)
Weed Abatement ($75.00)
"~hic1e Abatement ($75.00)
Appeals to Other LegIslative Bodies:
_ Board of Building CommissioJ1f""-.a.Io.O...ra..'
_ Police Commission (No Chargl
_ Access Appeals Board (No Cb
_ OtheriExplain:
(continue next page)
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A VALID APPEAL MUST INCLUDE THE FOLLOWING INFORMATION (SBMC 2.(4): . ...
5.e.--e 1fII-.-d...-J T~
1.
The specific action appealed, and date of that action:
2.
The specific grounds of appeal:
~ e> yt.~..W ~~
3.
The actions(s) sought from the legislative body:
~ ~ f / l e-.J r e-le..r..r
4. Any additional information:
fvt-~~ ~~ey 1?-.-c. Date: 8(G~b
, .
CITY OF SAN BERNARDINO
MISCELLANEOUS CASH RECEIPT
Date ~\.."\...1t'I. ~ 19'.:110
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OISTRI BUTION; White - Customer; Canary - Cashier; Pink - Oepartment; Goldenrod - Dept. Numeric Control
Department
By
ACCOUNT NO.
TOTAL
No.
690193
AMOUNT
'1 '
II .Ob
MGR
Services, Inc.
Michael G. Rademaker
President
RECt!\f\:~11'\' !
\h..r.
August 21, 1996
'96 flUG 22 A10 :12
City Clerk's Office
300 N. "D" Street, 2nd Floor
San Bernardino, CA 92418
RE: Location: 194 E. 11th Street, San Bernardion
Assessor's Parcel: 140-082-14
Order Number: 3603
Case Number: 9617/Complaint 45309
Officer: B. Eads
Dear Mayor and the Common Council
My name is Michael G. Rademaker with MGR Services, Inc. and I am the property manager
for the FDIC (Resolution Trust Corporation) that owns the property at 194 E. 11th Street in San
Bernardino, CA. I am receipt of various correspondence whereas you cited several areas of
concern.
I'd like to go on record and formally request that this notice be rescinded in its entirety and that
the FDIC given proper time to dispose of the property.
In your complaint you noted the lack of maintenance of the landscaping, overgrown weeds and
brush, and the presence of trash and debris throughout the complex. I realize, as many of you
do from time to time, this does transpire but the FDIC has done an official FHA-quality, board-
up job, the property is properly fenced, and we do have a landscape maintenance company that
visits the property twice a month to ensure that it's kept as clean as possible.
Also, the FDIC pays a security patrol to drive by the property to ensure that it is kept tight and
secure. We also have an 800 phone number for access into our corporate office which allows
us to be paged 24 hours a day and where we are manned 7 days a week from 7:00 a.m. to 6:00
p.m. We have received no complaints or concerns about the condition of the property nor have
we been informed of any items that were not secured.
It came to our attention at one point time that someone had broken into the building, they were
arrested, and code enforcement had the property boarded up. Unfortunately, this all transpired
in a very short period of time and it was impossible for us to have been aware of this. We do
inspect the property on a weekly basis and have done our best to keep in airtight condition.
Commercial Brokerage. Residential Real Estate. Property Management
1425 W. Foothill Blvd.. Suite 200. Upland. California 91786
Office: 909/981-4466 . Fax: 909/981-6267
Furthermore, since the FDIC owns the property which is the Federal Deposit Insurance
Corporation, they are in a position where they have not placed the property up for sale but have
been trying to work out a deal with an appropriate government agency to acquire low cost
housing at substantially reduced cost. The FDIC has been working in close conjunction with
the City of San Bernardino Economic Development Agency on arranging such a transfer. As
of July 19, 1996, Ronald E. Winkler, the Development Director of the City of San Bernardino
Economic Development Agency, executed a Letter of Intent and Purchase & Sale Agreement
with the FDIC. Enclosed for your records, please find a copy of this agreement that was
executed on July 19, 1996, as well as a letter to Brandol Eads dated July 29, 1996, outlining the
above plan. However, they were not forwarded to the FDIC until August 8, 1996.
I realize that the City's position is to keep everything safe and as clean as possible and we would
agree. We are spending hundreds of dollars a month to maintain this property and, if it weren't
for the Federal mandate to assist with a city's low cost housing and redevelopment agencies, this
property would have been sold off a long time ago. I've been assured by both Ron Winkler and
the FDIC adminsitrative people that this transaction will be consummated.
Therefore, considering the fact that we have made more than a good faith effort to maintain the
property through licensed contractors on a regular maintenance basis and the fact that the
property is being donated to the City of San Bernardino, we are requesting that this Notice to
Abate be completely terminated and withdrawn.
If, for any reason, the Redevelopement Agency and the FDIC do not consummate this sale
within the next 60 days, I'm sure the FDIC will make the necessary arrangements to sell it to
an outside investor which be at a higher price than that to the City of San Bernardino.
I appreciate your time and consideration on this matter and I look forward to meeting all of you
personally on this appeal.
Sincerely,
MGR Services, Inc.
ichael G. Rademaker
President
MGR:cp
Enc.
08-21-1996 13:14
p.a3
FDIC
Federal Deposit IDsuraDce CorporatiOD
w'-....u St.. wk..: Celltel'
P.o. _ _. N.wpIII..... CA ....111I ('71-> _nOD
JUL - 11996
a:o~~ Of So\N IERNAllDllIIO
~~~....- --
LETl'ER OJ' INTENT TO PURC;HASE AND SELL
.".
Jwae 28, 1996
Mr. Adam Eliason
City of San Bernardino
Economic Development Agency
Development Department
201 North "E" Street, Third Floor
San Bernardino, CA 92401-5081
RE: FOllntalll Apal1Jlleatl,l94 E.l1th Street, Sail SeraardiDo, CaUIDrala
Dear Mr. Eliason:
Pursuant to your Notice of Serious Interest, we are pleased to inform you that the Federal
Deposit Insurance Corporation ("SeUer") has selected tbe City 01 SaD BeraardlDo Economic
DevelopmeDt AgeDCY ("PurcbUllr") to p~hase the above referenced property (the
"Property") in accordance with the provisions of the FDIC's Direct Sales ProlJ'lllll.
This Lener of Intent to Purchase and Sell ("Letter") sets forth the responsibilities of both
Purchaser and Seller between now and the time of closing. This Letter and' the Terms and
Conditions of Sale (Version 2.0) ("Terms aDd Conditions"), which are incorporated by
reference herein) describe the terms for your p~hase.
Upon receipt of your countersigned copy of this Leiter and a Good Faith Deposit of 5100, the
Property will be removed from the market until tbe earlier of the expiration of your Forty five
day (45) day Due Diligence period or termination of the letter. By signing. this Letter. you agree
to proceed in good faith to a) perform your Due Diligence during the Due Diligence Period; b)
perform your legal review or the Purchase and Sale Agreement ("CoDtract") in preparation for
executing the Contract at or before expiration of Ibis Letter and c) if financing will be requested,
prepare your financing application to the FDIC or another lender for submission of this Letter
and d) if financing will be requested, prepare your financing application to the FDIC or another
lender for submission al or before Contract execution.
08-21-1996 13:14
P.04
Initial M~tinf
We will bold a meeting or coDfenmce call with you, if you desire, within fourteen (14) days of
the date of this letter, to dillCUSl your pun;hue of the l'rop"'ttl. This meeting will include you
and your legal and finaIIl:ialldvi$OrJ, and FDIC repraentatives (whic:h may inc:lude outside
c:ontrlctors, SIIc:h u a Tec:hnica1 Asailltance Advisor, UICt m"nllger. c:losing attorney and/or
Undelwriter, if necessary).
If you have IIlready identified an ol'(llDiation u the u1tbnate owner ("Ultlmate Owuer") of the
Property, representatives from that entity should also attend this meeting. The Ultimate Owner ....
should also deliver eopies of the documentation described in the second puagrapb of "Pwchuer
Aeknowledgments" below per1aining to their organization and plll!lS for Ihe property u well u
sign this letter in the spGCl provided below. If the Ultimate Owner, whether it is p.raentIy
identified or 10 be determined. will utilize FDIC Seller FiDancing, it must be approved by the
FDIC for its eligibility u a Public Agency or Nonprofit Organization and meet FDIC
underwriting guidelines.
The purpose: of the meeting will be to: a) establish the key persoMel contracts for
communic:ation during the transaetion, b) review a timeline for your completing Due Dililenc:e
and the overall closing p&uc:ess. c) explain the Mon,itorina and Compliance Program, d) diSC\lS&
your flnancina plll!lS and your loan application process, e) dilCuss the process for finalizing the
legal documents, t) dillCUSS your plll!lS for ultimate ownership md long lerm fil1llllCling of the
J'lropert)' inc:luding your plll!lS for completing my described immediate physic:al repairs, g)
dillCuss whether or not FDIC will pay you a services payment fee in cormec:tion with subseq\lCl1t
resale of the Property and, if $0, diseuss a schedule of servic:es for which FDIC may pay you the
services payment fee, and h) discusa the FDIC's required form Recapture and Reinvestment of
Profits Agreement being placed in record title to the Property.
The FDIC's slaff look forward to working with you during this period to help structure a
successful and limely closing of this tnmsaction. The purpose of this initial meeting was to
establish a process and dialogue to begin this process.
Should you feel the need for a meeting or conference call, pleue conlllCt Teresa Peeplez at
(909) 483-2444 10 schedule this meeting or confcrence call.
pllrr.h.!lIe Price
You have p~viously received Due Diligence Materials, including the Affordable MarkcI Values
(" AMV") which establishes the value of the property u SI00 for purposes of a sale under thc
AHDP Di~ct Sales Program. The AMV assumed an interest of 10.75% in its delermination of
value.
-2-
08-21-1996 13:15
P."5
Due Diti"ence Pl!rindlP."iitI-ri.., fnr Contnct
You may, during the Forty five (45) days after the Effective Date of this Letter ("Due DUlleace
Period") conduct a OI1e Diligence Review at yol1l' sole eost IIIId expense. At or prior to
completion of this Forty five (45) day Due Diligence Period, it is expected that you will execute
the Contract to purchase the Property.
A "Due DiIIgeDu ReYicw" meus a) an inspection of those d<<wnents, files and other
information released by the FDIC with respcc;t to the Property, b) IlUl:h physical testa, inspections
and other investigations as &Ie no.......hly necessary to dctcnnine whether there III'e any MlUCrial
Deficiencies with respect to the Property U1d c) your determination of the feuibility of the
Property's use as affordable housing.
~~.
Purchaser's Di!ilt!nv~ ofU.tsrial TlI!fit!;l!n~il!!!S
Jfyou discover circumstances that l118icrially and IIdversely atTec:t the PmdJue Price, you may,
wiuun the Due Dililence Poriod, praent the FDIC detailed reports citina each deficiency and
enclosillll a copy of any and all third party reports detailing such findings. Such reports shall
include your determination of DlCh deficiency's dollar impact on the valuation as per the FDIC's
AMV methodolollY_
Such deficiencies shall only include items that you 4etennine a) _ not previously dilCloscd in
the OI1e Diligence Materials such as defects in soils, s1ructure or systems, b) are errors in the Due
Diligence Materials or are chanaes since the preparation of the Due Diligence Materials that
affect your ownership of the Property such as market conditions, occllplllC)' or ope!llUng
expenses. Of c) are dcfecta in title that materially and adversely affect the ~hue Price
(individually and collectively, ("Material Deficiencies" or Material Dencl.D~"). If such
deficiencies constitute, in the asgregate. at least 3% of the Purchase Price, and are accepted by
the FDIC as meeting these requirements. they will be eonsidered as Materill Deficieneies.
No items neeessary to bring the Property into compliance with the Americans with DillBbilities
Act of 1991 (or similar state laws) will constitl1te a Material Deficiency.
Based upon your presentation and FDIC's aceeptance of the Material Deficiencies. the FDIC
may, in its sole discretion. choose to: a) decline to take any action with respeClIO any or all of the
Material Deficiencies. b) redl1CC the Pwchase Price due to any or all such Material Deficiencies,
c) cure any or all such Material Deficiencies. d) I1IIdertake a combination oC these actions. or e)
tenninate this Letter. It is anticipated that you and the FDIC will enter into the Contract
forthwith Dr terminate this uansaetion. The opportl1llity to discover Material Deficiencies will
not eontinue during the tenn of the Contract; hence any such determinations by you must be
made during the Due Diligence Period.
-3-
~8-21-1996 13:16
P.06
If FDIC receives a notification of deticilmcies by you within the Forty five (4S) day Due
Diligence Period, the Due Diligence Poriod may be mutually extended for up to 60 days for the
purpose of resolving any diaputcs not I"CIlOlved prior to the Expiration Date of the Letter.
J ~DWI!I' Income Oc:e.QpSli'rlr.y RlStrid;nnlll
Buyer proposes to demolish existillj uninhabitable building IIIId replace with new affordable
single funily resident on which Seller will restrict SIIIe to low income family.
This will be c:onducive to current zonins.
Mn1"litnrinl Fee
-. A monitoring fee of 5250 will be collected at closiDg.
Jn~~tian Pmc:edUl'l!!l
If you desire to conduc:t inspection studies, in Clll:h inItanc:c you shall reqUllSt, at lcut two
business days in advance, the FDIC's permission to enter the Propcny. Neilhet you DOl any of
your rcprcscntatives shall enter the Propcrt)' without the FDIC's prior approval bued upon sw:h a
request. No test or invcstiption involviDg physic:a1 disturbeDc:c of my portion of the PropertY
shall be c:onducted without the FDIC's prior approval of the specific teat Dr inVCltiption. A
representative of the FDIC abal1 have the right to bit pment during all inspec:tiOJl8. Neltller you
nor any of your reprucntaliva sball ialerfer. wilb the ae, occupancy or enjoylDeIIl ripu
of .ay lenanu or subtcnulll of the Proper1y or Iheir applicable elDploy_, conlraeton,
cu.tomen, or guestl..
You agrce to pay promptly all c:oslS lISsociated with the inspection and not to permit any lien or
encumbrance to be IlIscrted against the Property in _ection with the inspections. The FDIC
may require that, before or during any Inspection Studies, YOll deliver to FDIC a certificate of
insurance evidencing public liability insurance acceptable to the FDIC. You shall at your own
expense, restore any damage to the Property caused by sud1 inspections notwithstlndil1J any
other provisions of this Letter includinll the termination hlnof. Purcha.er agrea to del end,
indemnll)' and hold the S.lIer harml... form and apinlt allY and all ellpen.... co.u,
damaeel, 100.es, claims, or other liability ari,inl from or incurred In connection with
Purcha.er's or Purchaser's rep....entatives' i..peedoD of the Property or entrance upon
the Property. This indemnification of Sener by purchaser shan survive this Letter,
Including the termlnatloll hereof.
purchlltter AcknnwledD'mp.'ntjll
You acknowledge receipt and review of a) Notice of Marketing Period and the infonnation
contained in the Notice, b) Program Materials, includil1J !be Terms and Conditions, Legal
Documents and description of the timeline of actions to clollC md c) the Due Diligence Materials
-4.
08-21-1996 13:16
P.07
for the Property. You acknowledge IIlId understand that the Seller mekes no representation or
wammty, express or implied. IS to the completeness, content. or e&:C\lI'aCY of the Due Dilisence
Materials. You further acknowledge that you have reviewed these materials IIlId bave sllbrnitted
your Notice of Serious Interest with lID understanding of the FDIC's Direct Sales Program ItId
the pr'Ol;ess to be utilized to COnIplete this sale under the Direct Sales Propam.
You further acknowledge that YOIl have submitted to the FDIC a) a Request for IlISpCCtion, b) an
executed Collfidentiality Stlltentent. c) a Notice of Serious Interest, which inclw1ed the
Purchaser's Questionnaire. d) 12 CFR Part 1620 Certifiation, e) Co1Jcction Policy Certification.
and f) Public AgenCy Certification and lar Non'prllfit Certification. TheIc materials included a
description of yom proposed plln for the ICCjllisition I!1d use of the Property, including your
commitment for lowa' income OCCUplll1CY and plllll for financing, The rDlC hu relied on thue
documents and certlficallons, amoag other Items, In selectbag you to receive thll Letter of'
-. Iateat. .
This Letter shall aot oblipte either the Seller or the Purclauer to seU or purclaue the
Property. EJ:cept lor the bademnlllcation of Seller by Purchuer, this Letter Is not ipteDded
to be biDding on either party and my be terminated at IlIIY time durinll.. term without
cause upon written notice 01 either party. Enept for tbe indemnification of SeUer by
Purchaser. neither the rDlC nor Purchaser shall ha", apy liabUlty, iacludbaaUablUty to
copvcy or for damaps, should a contnd for sale not be aecatcd. The FDIC and
Purch.er both aclm_Iedp tbat aD agreement ~o se\l tbe Property all.. a8tit a Contract
is fully eneuted by aU pardu. Upon tbe terminallon or ..plration of this Letter (whether
by expintion or notice 01 termiaation( tbll Letter shall be null and void, IlIId of no fur1her
force and elfect, Purchaser's Good Faith Deposit shall be nfuaded and both Seller and
Purchaser shall be rcleased form any obUaatioD hercunder (execpt for tbe bad_nifieatiop
of Seller by Purchaser) and shaU be deemed to ha,.. waived aay rights derived berefrom.
If you agree to the terms and conditions set forth in this Letter. then evidence your Sl;:ceptance
and agreement by signing in the space provided below and morning the signed original to the
FDIC within 14 calendar days from the date of this Letter to the folIowins lIlldIess;
Dan M. Valentino
AH Direct Sales Coordinator
Federal Deposit Insurance Corporation
P.O. Box 7549
Newport Beach. CA 92658-7549
If this Letter is not signed within fourteen (14) calendar days of the dale hereof. it shall be null
and void and of no further force and effect. If you have any questions. please contact Teresa
Pec:>plez at (909) 483-2444.
-5-
~8-21-1996 13:17
Sinc:mdy,
'\.Je
P.el8
~-."
"., ~ J
-.-:::>
Dan M. Valentino
AH Direc:t Salea Coordinator
TInS LETTER HAS BEEN READ AND ACCEPTED
TInS 19 DAY OF JULY . 1996 (Effective D.>
(~~:AN ~z7~c DrnlDPMlNT AGENCY
RONALD E.1NItLBR '-
Purchaser;
By:
,f' Name:
Title:
.~ .
n1N'R:T.nPM'R'NT D:IRE~'D
THIS LETTER HAS BEEN READ AND ACCEPTED
nus DAY OF . 1996 (Eft'ective D.>
Ultimatc
Owner:
By;
Name:
Title:
-6-
08-21-1996 13:14
P.eJ2
r
No.
038748
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO. CALIFORNIA
ADMINISTRATIVE FUND
(101) 381 1OlI1
..n e.rnWllbflO jlglI'I 0"1&:0
'IJItBT IN'J'IAiSTAn.........t e_UD''''.
~N ii(.N..."DtNO CA 110101
,1-2"101
1220
PAY EUCTLY
.......100 I)CH....... 00 CIN'"
8/06/96oATE '8149 CHICK NO
.100. OD, AMOUHT
TO THE ORDER OF
REDEVI!LOPMENT AOINCY
D' Dr S.n m.rdln" c.n'ornl.
FEDERAL DEPOSIT INSURANCE CORPORATION
P 0 SO)( 7549
NEWPORT BEACH, C~ ~Z658-7"9
'-
I100:l871"qll" .: I. 2 i!000 i! 1.8': i!0E. 'j'1;j80lo i!Mo I. I.
lIh1f~.J ~I If'.- ~'..rlfr~~M.*,h'''I~l'Ilb''~~.~
; ,lr -'" If ~I)tl.r r ~r r 1l....1~~~)OI."...,...;.,...*"II~f"'!;~jlllltlbo&li.._.1ii.'J\1 r Jt~ r ~ l' 1......
MGR
Services, Inc.
July 29,1996
Brandol Eads
Dept. of Planning & Building Safety
Code Compliance Division
385 N. Arrowhead Ave., 2nd Floor
San Bernardino, CA 92401
RE: 194 E. 11th Street, San Bernardino
Dear Me. Eads:
Per your notice that was sent to us regarding the property at 194 E. 11 th Street in San.
Bernardino, this has been forwarded to the FDIC for their evaluation. According to the FDIC
they are working with the City/County of San Bernardino on arranging for them to have
ownership of this property.
Considering that the negotiations are currently going on with the City and the two bureaucracies
are working together, I hope there will be no fines or levies put against the property. Also, we
are requesting an additional 30-day extension on your letter so the two government agencies can
resolve their differences and do an appropriate transfer of title.
If you have any questions or you are unable to grant a 30-day extension, please feel free to call.
Sincerely,
MGR Services, Inc.
X.~ (f) cC c
, ~1 r";1J.A/U----;
reg liarns
Property Manager
GH:cp
cc: Marty Capp, FDIC
Commercial Brokerage. Residential Real Estate. Property Management
1425 W. Foothill Blvd.. Suite 200. Upland. California 91786
Office: 909/981.4466 . Fax: 909/981-6267