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HomeMy WebLinkAboutR07-Redevelopment Agency o .0 ttAVB.OPMENT AGENCY.icau.ST FOR ~ISSION/COUNCIL ACTION 6::: Glenda Saul, Executive Director Subject: AUTO CENTER. - TRANSFER OF LAND AND AMENDMENT OF PROPERTY OWNER' S PARTICIPATION AGREEMENT Redevelopment Agency Date: July 16, 1986 Synopsis of Previous Commission/Council ection: 12-2-86 Approval in concept of an OPA for development of an Auto Center. 12-23-86 Approval of Resolution 4831 authorizing an OPA with Orange Show Plaza Associates. 7-7-86 Set Joint Public Hearing for July 21, 1986 at 11:00 &m.m to consider sale of certain real property. Recommended motion: (SEE ATTACHED CONTINUATION SHEET) o ~~w Sign ture Contact person: G1pntla !;lIIul FUNDING REQUIREMENTS: Amount: $ Phone: 383-5081 Ward: 3 Project: SEIP Date: Tu1y 2' , 1ClB6 Supporting data attached: YES No edverse Impact on City: (Oil Notes: AlUlnrbll hAm Nn =/:;/1(':1 o o I ~o - '0 o o o REQUEST FOR AC!ION (CONT.) RECOMMENDED MOTION: (MAYOR & COMMON COUNCIL, COMMUNITY DEVELOPMENT COMMISSION) A) OPEN JOINT PUBLIC HEARING TO CONSIDER THE SALE OF CERTAIN REAL PROPERTY BY THE REDEVELOPMENT AGENCY TO ORANGE SHOW PLAZA ASSOCIATES. B) CLOSE JOINT PUBLIC HEARING. (MAYOR & COMMON COUNCIL) C) MOVE TO ADOPT A RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION OF A GRANT DEED CONVEYING CERTAIN PROPERTY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO FOR USE IN DEVELOPMENT OF THE SOUTHEAST INDUSTRIAL PARK PROJECT AREA. D) MOVE TO ADOPT A RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF THAT CERTAIN PARCEL OF PROPERTY IDENTIFIED AS APN 141-251-39, - BY THE COMMUNITY DEVELOPMENT COMMISSION TO ORANGE SHOW PLAZA ASSOCIATES. (COMMUNITY DEVELOPMENT COMMISSION) E) MOVE TO ADOPT A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ACCEPTING CONVEYANCE FROM THE CITY OF SAN BERNARDINO, AND AUTHORIZING AND DIREC!ING SECRETARY TO EXECUTE AND ACCEPTANCE - (SOUTHEAST PARK PROJECT). (COMMUNITY DEVELOPMENT COMMISSION) F) MOVE TO AUTHORIZE THE CHAIRMAN AND THE SECRETARY TO EXECUTE A SUBORDINATION AGREEMENT SUBORDINATING THE AGENCY'S NOTE, TRUST DEED, AND THE OPA TO CONSTRUCTION FINANCING DOCUMENTS, SUCH AGREEMENT TO BE IN FORM APPROVED BY AGENCY COUNSEL. (COMMUNITY DEVELOPMENT COMMISSION) G) MOVE TO ADOPT A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A FIRST AMENDMENT TO OWNER'S PARITCIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND ORANGE SHOW PLAZA ASSOCIATES - SOUTHEAST INDUSTRIAL PARK PROJECT AREA. 1256G 7/16/86 CIO OF SAN BERNARDICo - REQUEOr FOR COUNCIL AC~N o o o 75.0264 STAFF REPORT TRANSFER OF APN 141-251-39 (Recommended motions c,d,e, and g) At the time the Auto Center OPA was. approved in concept and at the time the resolution authorizing its execution was adopted, it was the understanding of staff that the project included a small triangular parcel on the north end of the project. This was the intention of both staff and the developer and its was shown this way in the reports to the Council (see attached map that was originally presented on 12/2/85). The parcel is shown as about one quarter of an acre in size on the assessor's map. Although all of staff's calculations of benefits and costs were based upon the inclusion of this parcel, it was inadvertently left out of the legal descriptions. The parcel is owned by the City of San Bernardino. Staff and the Redevelopment Committee recommend that we correct this error by the Agency acquiring the City's interest in the parcel for one dollar ($1.00) and then quitclaiming it to the developer for one dollar ($1.00). SUBORDINATION TO CONSTRUCTION FINANCING (Recommended motion f) In order to allow normal financing of improvements on the automobile center site it will be necessary to subordinate the Agency's interest to the construction financing documents. The City has control over the improvements to be required and their construction will be in the public interest as part of the formation of the auto center. The Redevelopment Committee and staff recommend that the Commission agree to subordinate. AMMENDMENT TO THE OPA (Recommended motion g) The attached First Amendment to the OPA provides for the issuance of Certificates of Compliance on each individual site after the developer has completed the development work for each site and it is sold to an individual dealer. The Agency retains, through the form of grant deed to be used, the right to repurchase from the dealer in the event development is not completed by the dealer. The amendment also provides for the transfer of APN 141-251-39 (the fist item above) . Finally the amendment updates the construction schedule, recognizing that ground water problems that were referenced in the original agreement. It is anticipated that construction can begin On a portion of the site prior to recording the final map. Below is a summary of this updated schedule: Record Parcel Map Record Construction Loan Start Construction Complete Site Work Close escrow with dealers on sale of 6 lots between 7-23-86 8-01-86 8-01-86 1-31-87 October 1-15, 1986 l256G 7/16/86 o o o o ef- ~n ./ 0 J) "" / ,,".. ~ \t.~ 0 ./ [<< ~ ~ \ 0""",--- I '. r-..... --=-- I \ I -. -~ -' -- ---i -l"l:T'"? I '. ~ I----".r"o"'--J a i ll"\! I Ii! \/~ l i ./ \ \ ,"' : . i \lY ': ~ \\\"Cj':=:/ ~-.J I'( fIlii r \, \'~, .0'/' I': . \. ',=' '.il I. ~\, I. , i" I ~ 11f:\ --Y. -..---;::::: 1J . J L-' --- --... '-........;:::-. -. - .-" ......-... lC .. lC ~ .. . '" '" ...... N QI ........... N" -." 0" "... o '" .. ..... ........ u..... 5 m o m U QI o,c .... ... m QI'" .. "... QI " m .. QI "'~ ",m ... .. '" "'QI QI .. U m o I ~.. u " ... .. o ~ ;;<5 ;: ........ lC ":0 IA ~... .. "'QI ... c..~ o 10 :i~ . ~. QI E lC ,cm ... E ..... "'...... - 0 '" .. IA .... '" . CJ .u ;:: a: "'...... lC 8 I 0"" c....... a: e:" o . :::::: .. .... ~ ..'" "' QI II QI:::: ,c m .. " o " u ... '" c..QI ..... E 5 QI ,c >- ....... .. ... " . o QI'" '" " >- '" QI c..:l o U .. U ,c ....... lllQl'" U '" "' '" ... .. QI c..,c '" .. ... QI ,c,c" f-<f-<O a: lC 10 o o o .. r.l !5 :z: .. o o o 10 I I i o o o 1 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND 2 DIRECTING EXECUTION OF A GRANT DEED CONVEYING CERTAIN PROPERTY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN 3 BERNARDINO FOR USE IN DEVELOPMENT OF THE SOUTHEAST INDUSTRIAL PARK PROJECT AREA. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 5 OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor of the City of San Bernardino is 7 hereby authorized and directed to execute a grant deed conveying 8 that certain property described in Exhibit "A", annexed hereto 9 and incorporated herein by reference, to the Community 10 Development Commission of the City of San Bernardino, it being 11 the intention of the Mayor and Common Council of the City of San 12 Bernardino that such property shall be utilized by the Community 13 Development Commission in a manner to assist in the development 14 of the Southeast Industrial Park Project Area, for use in 15 conjunction with the development of an auto sales plaza and 16 related development. The Mayor and Common Council specifically 17 find that such use of the property is consistent with the 18 provisions of the Community Development Law of the State of 19 California, and that the City may properly convey real estate to 20 the Community Development Commission to assist that body in its 21 22 redevelopment activities. I HEREBY CERTIFY that the foregoing resolution was duly 23 adopted by the Mayor and Common Council of the City of San 24 Bernardino at a meeting thereof, held on the , 1986, by the following vote, to ~ 26 wit: 27 / / / / 28 day of / / / / c 0 1 2 3 4 5 6 7 8 9 of 10 o o o o o o AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this , 1986. day Mayor of the City of San Bernardino 12 11 Approved as to form: ~.--} /7 / ~ )//./7, {/' 4:'d-~n~ /' 14 City Attorney 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 o o o o ~ Parcel nf Lot 22 of Block 5'. Rancho San Bernardino. in the city of San B~rnardino. as ~?corded in Book 7 of Maps P6se , R~~ol-a.~ r{ s-- - ., ~... - '..). :.:l;' 13:--....'""'1-,....::...0 c......""t\. -... "c;:.. ......1..1 ............,.. ' d~s~~]bcd as follo~5: SBid Parcel boun~ed on the Kortheast by Inter3tate High~ay No. 2J5. on the: \':~st by Orange Sho\-.' Roae a:-IC O' the South by Camino P~'al as shoV.:1 Of: FarCEl :'1 a t:> :\0. 3-' 32 a~ ?( c:.:-ceo in Book 48 of rarcel Maps Pagel ~a-BI Records of San ?ernEreino County. C'o' , b.I',_':'W"1 J; o 0 1 0 2 3 4 5 6 7 8 9 - o o o o o RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF THAT CERTAIN PARCEL OF PROPERTY IDENTIFIED AS APN 141-251-39,_ BY THE COMMUNITY DEVELOPMENT COMMISSION TO ORANGE SHOW PLAZA ASSOCIATES. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. A. The Community Development Commission of the City of San Bernardino ("Commission") proposes to sell to Orange Show Plaza Associates ("Developer"), that certain parcel of property 10 identified as APN 141-251-39 located northerly of Camino Real 11 Road and southerly of Orange Show Road, which parcel is legally 12 described as set forth in Exhibit "A", attached hereto and 13 incorporated herein by reference, for a sum of $1.00 which will 14 be paid by the Developer in cash. B. Notice of the time and place of hearing has been given 15 16 as required by law. 17 C. The Commission has made available for public inspection 18 and copying a summary of financial aspects of the proposed sale. 19 D. The summary of financial aspects represents that the 20 fair market value of the interest to be conveyed by CommiSSion, 21 determined at the highest use permitted for such property, is 22 $16,039. 23 E. All hearings have been held as required by Health and 24 Safety Code Section 33433. 25 SECTION 2. Determination. Based upon the representations 26 of Commission, it is found and declared that the consideration 27 for the real property described above, in accordance with 28 covenants and conditions governing the sale, is less than the ~ o o o o 1 fair market value of the property determined at the highest use 2 permitted for such property. Such lesser consideration is 3 necessary in order to complete the conveyance of all property 4 originally intended to be conveyed at an earlier date, and to 5 enable the Developer to complete the construction of an auto 6 7 8 o sales plaza, which the Mayor and Common Council deem to be in the public interest. SECTION 3. Approval. The Mayor and Common Council of the 9 City of San Bernardino hereby approve the sale of said property 10 upon the terms and conditions set forth in this resolution and 11 the summary of financial aspects. 12 I HEREBY CERTIFY that the foregoing resolution was duly 13 adopted by the Mayor and Common Council of the City of San o 14 Bernardino at a 17 18 19 20 21 22 23 24 25 of 26 O 27 Approved as to form: 15 16 wit: 28 day of meeting thereof, held on the , 1986, by the following vote, to AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this day , 1986. Mayor of the City of San Bernardino .-, -/ /, ,,'/ /) ... , ,...::.-' ..' ..." -;.....,.,.~......;. {,.,." "#"/;"._.~--"'--" /" ,'-'~ I City Attorney 2 o o o o ~ parcel ~f Lot 22 of Block S., Rancho San Bernardino, 1n thE city of San B~rnardino, as ??corded in Book 7 of Maps P6se 2, RccordE cf Sa~' 3~p~;Y~~~I~ Cn"unt\' ~0s~~it)c~ as fo]low~: -.. ........ .....1., '-' ..... ..' S~id Parcel bouncec on the Kortheast by !n~cr3tate High~ay No" 2!S. on the West by Orange Sho~ Road and on the South by Camino Peal as sho~n on Parcel Map So. 3732 aE P(c~rded in Book 48 of rarcel Maps Pages 80-81 Records of San ?ern~rdino County. f,Xl-aSlT A o '0 o o o o SUMMARY or rINANCIAL ASPECTS or PROPOSED SALE or REDEVELOPMENT AGENCY IlEAL PROPEllXY LOCATED It is proposed that the REDEVELOPMENT AGENCY or THE CITY or SAN BE8.NARDINO (NAgencyN) will sell and Orange Show Plaza Associates (NDeveloperN). will buy the parcel of real property located within the Southeast Industrial Park Project Area described as APN 141-251-39 as shown on the attached Ezhibit NAN which 18 incorporated herein by reference as though fully set forth for the development of an automobile sales center. 1. The cost of the sale by the Redevelopment Agency is $1.00. 2. The estimated value of the interest to be sold is $16.039. The purchase price of the interests to be conveyed is the fair market value thereof determined at the highest and best use consistent with the redevelopment plan. The ezplanation of the reasons for the difference as required by Section 33433 of the California Health Code is as follows: o Pursuant to Ordinance No. 3583 adopted June 21. 1976. the Agency and the City of San Bernardino have heretofore adopted a redevelopment plan for the Southeast Industrial Park Project Area. The plan provides for the acquisition and sale of real property within the project area. On December 23. 1985 the Agency signed an Owner's Participation Agreement with Orange Show Plaza Associates pursuant to Resolution 4831. At the time the Auto Center OPA was approved in concept and at the time the resolution authorizing its ezecution was adopted. it was the understanding of stsff that the project included Assessor's Parcel Number 141-251-39 shown in Ezhibit NAN. This was the intention of both staff and the developer and it was shown this way in the reports to the Council. All of stsff's calculations of benefits and costs were based upon inclusion of this parcel however it was inadvertently left out of the legal descriptions. It is in the public interest to include APN 141-251-39 in the land transfer to Orange Show Plaza Associates in order to : a) Provide for sound land use planning and a logical progession of uses across the vacated Camino Real area. b) Provide sufficient area for the ancillary use portion of the automobile sales center project. o c) Prevent the creation of a small remainder parcel with unsafe access from Orange Show Road adjacent to the 1-215 on ramp. l256G 7/16/86 71.02" .J fl')1~ ~I;:: .os \ I, :- \. i~i '".v ", ~. " '43' <0' \ 1 \' ~ ~. . I /7.53 AC.M/L ~5 ~ ~ . Ul ~; '€?) ~ I '( 3.39 AC r-. - - )( ,.. , ~ ~I I . --"':_~,I- : t1 ti) ~I ~_". It) :?1 ~ 4 .77AC. ~-:I ~ I IA -. @r~"~ :> ~ . 3.3/2 AC ~I' Par. I f ~ \I; , e tc.' ~ " ~ .,r;;,.1. i; '1 ~ ..b '0 o " o " (8).,"' .' .~ /2.4? 1.e. MIL 22 TC.A. 77/ .!1z.s . @ @'; o 15 29.4AC. - L 0 l I , r. .~ " 't ........ '.-- ~ ~ I 1: ~ - :I: o (2'\ -) ;.3367 ACM ~l ~.. f '"'... 0~ tr) 1:29',\ '---- ~. ~ .'(> . \t(j ! -,~ - - . :lJJ.. I Z~../: ~r ffi ,..I . EX/.IIBIT Q) "II" \~ 1/ Tn FII,of)oatf S"-11'IM(t " '. " . - ) o 0 1 2 3 4 5 6 7 8 9 o 17 18 19 20 21 22 23 24 25 26 0 27 28 o o o RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ACCEPTING CONVEYANCE FROM THE CITY OF SAN BERNARDINO, AND AUTHORIZING AND DIRECTING SECRETARY TO EXECUTE AN ACCEPTANCE - (SOUTHEAST INDUSTRIAL PARK PROJECT). BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Community Development Commission of the City of San Bernardino hereby accepts the conveyance from the City of San Bernardino of that real property described in Exhibit "A", annexed hereto and incorporated herein by reference. The 10 Secretary of the Community Develpment Commission is authorized 11 and directed to execute an acceptance of such conveyance on 12 behalf of the Commission. 13 Dated: 14 15 Approved as to form: 16 AGENCY COUNSEL By ~ -t.1:ir The foregoing resolution was duly adopted by the following vote, to wit: AYES: Members NAYS: ABSENT or ABSTAIN: e... o o o o o ~ parcel nf Lot 22 of Block 54, Rancho San Bernardino, In thE city of San Bernardino, as ~?corded in Book 7 of Maps P6~C , R~~ol-a-~ rf ~-r . ... I \.;.-- -...-" .....:.1;' :3~'''''-'-r'':~ "',r Cnu~t\' -... ..c: ......r.. U '-';1..' ~~s~~jbc~ as follo~s: scid Parcel bounfe~ on the Kortheast by In:cr3tate High~ay No. 2J5. on the West by Orange Sho~ Road and on the South by Camino Peal as sho~n on ParCEl Map So, 3~32 as ?tc~rdEd in Book ~B of rarcel Maps Pages SO-SJ Records of San ?ern~rdino County. f)\b~L;1 ~ A 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 o o o RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A FIRST AMENDMENT TO OWNER'S PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND ORANGE SHOW PLAZA ASSOCIATES - SOUTHEAST INDUSTRIAL PARK PROJECT AREA. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Chairman and Secretary of the Community Development Commission of the City of San Bernardino are hereby authorized and directed to execute for and on behalf of the Redevelopment Agency of the City of San Bernardino a First Amendment to OWner's Participation Agreement between the Redevelopment Agency of the City of San Bernardino and Orange Show Plaza Associates, with such non-substantive changes to said Amendment as may be approved by the Chairman and Agency Counsel. A copy of said Amendment is attached hereto as Exhibit "I" and incorporated herein by this reference as though fully set i~rtr. at length. Dated: Approved as to form: AGENCY COUNSEL By ~~~~ The foregoing resolution was duly adopted by the following vote, to wit: / / / / / / / / G r 0 0 0 0 1 AYES: Members 0 2 3 NAYS: 4 5 ABSENT or ABSTAIN: 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 2 o o o o o o o 1 2 3 4 FIRST AMENDMENT TO OWNER'S PARTICIPATION AGREEMENT ORANGE SHOW PLAZA ASSOCIATES SOUTHEAST INDUSTRIAL PARK PROJECT AREA THIS FIRST AMENDMENT TO AGREEMENT, made and entered into 5 this 6 day of , 1986, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a 7 public body corporate and politic (hereinafter -Agency-), and (hereinafter -Participating OWner-), amends that certain OWner's Participation Agreement heretofore executed between the parties, 11 and recorded as Document No. 86-051984 in San Bernardino County 12 Records, on February 27, 1986. 13 That certain Owner's Participation Agreement (hereinafter 14 -the A t- f d t h . b . h b d d. th greemen re erre 0 ere1na ove 1S ere y amen e 1n e 15 fOllowing respects: 16 1. In addition to the present provisions of Paragraph 10 17 concerning issuance of a Certificate of Compliance as to each 18 individual site upon completion of development by the 19 Participating OWner in performance of the Agreement, the parties 20 hereby agree that, in the event the Participating OWner has 21 completed site development work as to any particular site and has 22 entered into a sale agreement for sale of a particular site to a 23 dealer or other appropriate purchaser of an individual site, and 24 such sale is in full compliance with the terms of the Agreement, 25 the Agency shall execute, for delivery through escrow, coincident 26 27 28 with the delivery of title to the property to the purchaser from Participating OWner, a Certificate of Compliance, certifying that 1 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 o o o the Participating OWner has completed its obligations as to the individual parcel involved, including all site preparation work for which the Participating Owner is obligated as to such individual parcel. The Certificate of Compliance as to such an individual site shall be recorded coincident with the grant deed from Participating Owner to the purchaser, which grant deed shall be in form approved by Agency, and shall contain the right of purchase clause, as provided for in the Agreement, in the event development is not completed by the purchaser in accordance with the terms of the grant deed. The Certificate of Compliance shall serve to exclude that individual parcel from any further or other obligation under the Agreement, subject, however, to covenants running with the land and the conditions of the grant deed. 2. In addition to the undertakings of Agency set forth in Exhibit -B- to the Agreement, Agency agrees to acquire from the City of San Bernardino any and all interest said City may have in that certain property situated southerly and westerly of Orange Show Road, westerly of the 1-215 Freeway, and northerly of El Camino Real Street. Agency shall thereupon grant such property to Participating Owner. A description of the property to be granted to participating Owner is described on Exhibit "aW annexed hereto and incorporated herein by reference, and is depicted on the sketch appended as Exhibit WI". The road noted Wto be vacatedW is to be vacated as part of the parcel map process, which Participating Owner is to institute forthwith. Participating Owner shall include the property described in Exhibit Wa" within the parcel map, and shall pursue the parcel map to completion without delay. 2 o o o 22 23 24 25 26 0 27 28 o o o 1 3. Participating Owner agrees to comply with the following 2 schedule: 3 Record parcel map not later than July 23, 1986; a. 4 b. Record construction loan documents not later than August 5 1, 1986; 6 c. Start actual construction not later than August 1, 1986; 7 d. Close escrow with dealers on the sale of six (6) lots 8 between October 1 and October 15, 1986; and 9 e. Complete sitework by January 31, 1987. 10 4. In all other respects, the Agreement, as originally 1] executed between the parties, shall remain in full force and 12 effect, except as amended hereby. 13 IN WITNESS WHEREOF, the parties have ezecuted this agreement 14 effective as of the date and year first set forth above. 15 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ORANGE SHOW PLAZA ASSOCIATES A California Limted Partnership, By: DANIEL S. EVANS & ASSOCIATES, INC., A California Corporation and a General Partner 16 17 B y 18 19 By 20 Chairman By Daniel S. Evans, President Secretary 21 Approved as to form: AGENCY COUNSEL And By: McMAHON-OLIPHANT PROPERTIES, INC. A California Corporation and a General Partner By By Ronald McMahon, President Allen R. Briggs 3 o . o o . B6-0519B~ 0 -- c. Assure the prompt development by auto dealers of at least six sites, by selling at least six sites (as evidenced by recordation) to auto dealers by July 31, 1986, under a purchase agreement obligating all such auto dealers to start such development within six (6) months and complete their development and commence business within fifteen (IS) months from the date of purchase. A copy of the purchase agreement form to be used by Participating Owner is attached hereto as Exhibit -F-, and is incorporated herein by reference. All such agreements shall be in substantially the form set forth herein, subject to such variations therefrom in particular cases as may be approved by Agency's Executive Director and Agency Counsel. The purchase agreement shall specifically contain a right of the Agency to purchase the property from the auto dealer in the event the auto dealer fails to comolete its development within the time specified, and in the event that Participating Owner fails to exercise. its rights to repurchase under that agreement. Sales to auto dealers shall be subject to covenants, conditions and '. restrictions and reservation of easements, recorded as to the property, which shall be in form set forth as Exhibit -G", which is incorporated herein by reference, with such modifications and changes thereto as may be approved by Agency Counsel. . 3. Develop an auto service center, containing ancillary facilities, meaning servic~ facilities generally related to an auto business. Such facilities may include an automotive rv. ,18 IoI\h,:;" v .# /7 / / /- /. ~ ( CC/-';' 1..-- \...,...1 /-". -- ; I - , {/ , . 1.,- _-7 '.. . ~,/ \_____/-. I ---'''''C/l...--- ~o ) o o 86-0519~ , ) EXHIBIT -B- UNDERTAKINGS AND OBLIGATIONS OF AGENCY Agency undertakes and agrees to: 1. Upon certification that construction financing has been secured by the dealership and upon presentation of evidence satisfactory to Agency that the foundation has been completed, Agency shall suspend interest upon one-eighth of the principal balance of the promissory note as to each parcel sold to a dealership; such suspension shall be conditional upon issuance of a Certificate of Occupancy within ten (10) months; upon issuance of the Certificate of Occupancy, Agency shall write off, as credits against the promissory note to be executed by Participating Owner, one-eighth of the principal amount of the promissory note (but not the interest applicable thereto), for each parcel sold by Participating Owner to an auto dealer, as defined. The suspended part of the interest shall also be written off at that point. When eight parcels have been taken over by auto dealers and the requisite construction financing, completed foundation and Certificate of Occupancy have been evidenced, no principal balance shall remain on the note. However, upon release of any such portion of the principal the interest attributable thereto which has not been suspended and forgiven, shall forthwith be due and payable by Participating Owner, and no additional write downs shall be given until the interest due is paid. 2. Pay, upon certification that construction financing has been secured by the dealership and upon presentation of 16 .,'0 \ ) ~ ) .1 111 ) -') o o 86-05198~ evidence satisfactory to Agency that the foundation has been completed, to Participating Owner, after each of sites 7, 8, 9, and 10 are sold, and after the sale of up to two additional auto dealer sites, the sum of $68,912.65 for each of said parcel sites numbered 7, 8, 9 and 10, as shown on the map annexed to Exhibit "A", being the parcels in the Southeast Industrial Park Project Area which are to be developed as auto dealer sites, and the' same amount for each of two additional sites for auto dealerships not located in the Southeast Industrial Park Project Area. 3. The total amount of Agency participation shall not exceed $1,200,000. INITIALS A... , 17