HomeMy WebLinkAboutR01-Redevelopment Agency
I Rm&m.o..ENT AGENCY..&u.ST FOR ~ISSION/COUNCIL A910N
)l\m:
Wt:
Glenda Saul, Executive Director
Subject:
AGREEMENT FOR EXCLUSIVE RIGHT AUTO
CENTER
Redevelopment Agency
08te: May 9. 1985
Synopsis of Previous Commission/Council BCtion:
10-1979
Authorized approval of the sale of 13.3 acres of land in the Southeast
Industrial Park to Orange Show Plaza Associates
5-13-85
Authorized the Agency to participate in one half (1/2) of the cost of
feasibility study of an auto center on approximately forty (40) acres of
land West of Interstate 15 and 80utheast of Orange Show Road, in the event
that 8aid study concludes that the development of the center on the 8ite
is not economically viable.
8-19-85
Motion approved supporting concept of Exclusive Right to Negotiate for
Auto Center Development
Recommended motion:
(MAYOR AND COMMON COUNCIL)
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RESOLUTION OF TIlE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING TIlE EXECUTION OF
AN AGREEMENT AMONG TIlE CITY OF SAN BERNARDINO, TIlE REDEVELOPMENT AGENCY OF TIlE CITY
OF SAN BERNARDINO, DAN EVANS, KEITH HARWOOD AND ORANGE SHOW PLAZA ASSOCIATES GRANTING
TIlE EXCLUSIVE RIGHT TO NEGOTIATE FOR ESTABLISHMENT OF AN AUTO CENTER.
(COMMUNITY DEVELOPMENT COMMISSION)
b) RESOWTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY OF SAN BERNARDINO
AUTHORIZING AND DIRECTING TIlE EXECUTION OF AN AGREEMENT AMONG TIlE CITY OF SAN
BERNARDINO, TIlE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, DAN EVANS, KEITH
HARWOOD AND ORANGE SHOW PLAZA ASSOCIATES GRANTING TIlE EXCLUSIVE RIGHT TO NEGOTIATE
FOR ESTABLISHMENT OF AN AUTO CENTER. ~~ ~
Signature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phon8: 383-5081
W8rd: 1 & 3
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Project: SElP
08te: August 26, 1985
Supporting d8m 8tteched:
YES
No 8dverse Impact on City:
OCil Notes:
1029J/SL
Agenda Item No.
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, CIO OF SAN BERNARDOO - REQUOT FOR COUNCIL ACOoN
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75-0264
STAFF REPORT
In 1979, the Agency authorized the sale of 13.3 acres of land to Orange Show Plaza.
Numeroue extensions to develop the land have been granted. The escrow c10eed April,
1981. The land in question is the old sewer plant property. The deve10pere have
experienced difficulty in finding suitable development for the site, in part, because
of the high ground water problem and the fact that the property lies within Norton's
flight plan.
Numerous discussions have been held with the developer regarding the feasibility of
developing an Auto Center in this area. The developere have been negotiating for
properties to the south of the site and believe that they can assemble a 40-50 acre
auto park. The 18 acres are within the SElP Project. The contiguous land lies
outside of a project area.
In May the Commiseion approved the Agency'e participation in 1/2 of the cost of a
feaSibility study of an Auto Center in this area, in the event that said etudy
concludes that the development of the center on the site is not economically viable.
The study was performed by M.R. Farrell and Associates. The study, although not
complete, indicates that an Auto Center in San Bernardino would be feasible. The
Agency, therefore, is not obligated to participate in the coet of this study. The
impact of a development euch as this on the city would be eubstantial. Studies have
shown that Auto Centers produce more sales and thus more sa1ee tax then individual
scattered dealerships.
On Auguet 5, 1985 etaff met with the developere and consultant (K.R. Farrell). The
deve10pere are requesting that the city formally declare their project as the city's
officially designated Auto Center. The document proposed is an agreement of exclusive
right to negotiate for a period of 120 days. The agreement may be extended an
additional 60 daye by the deposit of $1,000.
As drafted, the Agency/City would agree not to negotiate or enter into any agreements
with other parties for an Auto Center or individual dealership during the term of the
Exclusive Right to Negotiate. During this period (120 days) etaff is to work with the
Developer towards a specific Agreement relating to the Auto Center, to include at
least 6 new car dealerships and related uses.
Staff recommende approval of the attached agreement.
1029J/SL
8-26-85
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DaDIeI S. EwDs a AssocIates
August 5, 1985
Glende SeuI
Executive Director
Redevelopment Agency
Sen Bernardino, CA
Dear Glenda:
.s'"
IiilECElH~
lI\\ AUG 6 1985 III
REDEVELOPMENT AGENCY Of Tti'
CITY Of SAN BERNARDINO, C~ -
Please consider this letter our formal request that the Sen Bernardino
City Council declare our 56:1: acre site at Orange Show R08d and the
west side of the 1215 freeway as the city's officially designated Auto
Pleze. This Auto Plaze designation is requested based on a minimum
dealer participation of not less than four auto dealerships.
In order to effectively attract the 10-12 new car dealers we are negotiating
with, we will need all the assistance you can give us, and the above declaration
by your City Council will help considerably.
We request this "Exclusive Right to Negotiate," on behalf of the City
of San Bernardino, for a period of 120 days during which time we will
open sale escrows with each of the auto dealers.
Concurrent with the City Council's decleration, we will release our announcement
to the press and proceed with our development.
you fa' your continued support.
Keith Harw
KH:bas
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840 Newport Center Drhe. Suite S40 · Newport Beach, California 92660
(n,) '159-5546
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SAN
BERNARDINO
AUTO
.' PLAZA
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The SIn Bernardino Auto PIeze is e 47 ecre project fronting on the
1-215 Freeway end edjecentto the 1-10 Freeway. It is functionelly
designed in keepina with the current trend in eutomobilemerchendising
, with ell pen:e1s oriented to the interior end deelership showrooms c1us-
.t~ eround severe! "new c:er pl8Z8S". 1bc design provides e much
. superior seles environment then the typical "chrome row" strip com-
merciel type development.
Customer perking is provided eround or edjecent to the pl8Z8S so that a
shopper can eesily welk to a number of deelerships without having to
use their c:er. Automobile treffic is essentielly limited to those shopping
for en automobile or having one serviced. An ettrective security well
will be constructed eround the outside perimeter of the euto center. Key
entry points will be off the proposed extension of Orenge Show Road
end at Cemino Real between the existing Cadillec Dealership end the
Lincoln-MercurylVolkswagen Dealership.
Freena)' Access and EXposure
There will be direct eccess to the auto center from the Orenge Show
Road interchenge from the .1-215 Freewey, which carries over 126,000
vehicles per clay. The freeway is slishtIy eleveted above the auto center
property which will expose the mass of the aUto center to motorists
using the freeway. The "front door" to the auto center, IS exposed to
freeway motorists will be the Camino Real Rd. entry which will be at-
trBctively designed end lendsceped. It is enticipated, however, thet the
Orenge Show Road entry points will be used mo~ extensively for access
end therefo~ they will also receive mejor entry design treatment.
Areas to the east end west of the euto center will be easily served by the
1-10 Freeway which is on the south side of the project end hIS en aver-
qe dRily treffic count of over 97,000 vehicles.
Site Plan
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The conceptual development plen, which can be modified to meet
deeler requirements, contains 10 sites ranging in size from 2.3 to 6.9
acres. Aclditionel spece for employee parking end bulk new car storege
can e1so be worked into the plan to serve deeler needs. It is enticipated
thet the first group of deelers committed to the project will ISsist in
fmelizing the design.
Site Development and Operating Cmltrols
Conditions, Covenants &. Restrictions (C.C. &. R:s) will be prepared and
recorded prior to the sele of sites to control the development and opera-
tion of the euto center. The Deelers Associatidn will control edvertising
end promotion of the euto center complex end essess dealers for this
purpose. This type of edvertising, IS e supplement to normal deelership
edvertising, hIS proven to be highly effective in ettrecting customers
end genereting higher seles volumes.
The C.C. &. R:s mey e1so control erchitectural design of deeler facilities
so that quelity and commonelity of development can be echieved.
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i. Market Area ..-... ". , : ....
j' 0 The market area is well established in the San Bernardino area. As pre-
viously indicated, existing dealerships selling Cadillac, Lincoln-
Mercury, and Volkswagen are located. in the area that will comprise the
auto center site. In addition, four relatively new dealerships are located
on the opposite side of the 1-215 Freeway selling Buick, Chevrolet,
GMC 1h1ck, Mazda, Oldsmobile, and Subaru.
It is anticipated that e number of the eight dealerships loCated in other
parts of the City will consider relocation to the euto ceoter. In addition,
a number of makes are not currently represented in the market area and
become candidates for new points. Tbese include Acura, BMW, Hyun-
- dai, Isuzu, Mercedes, Mitsubishi, Porshe, and Volvo. '
Regional Setting
The San Bernardino Auto Plaza is located in the heart of the vast inland
empire. The population within a 5 mile radius of the site is ebout
190,000, and within JO miles, nearly 500,000 people reside in 174,000
households. The San Bernardino Region has historically experienced
strong growth patterns and this is expected to accelerate in the near
future. - .
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
DIRECTING THE EXECUTION OF AN AGREEMENT AMONG THE CITY OF SAN
BERNARDINO, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, DAN EVANS, KEITH HARWOOD AND ORANGE SHOW, PLAZA
ASSOCIATES GRANTING THE EXCLUSIVE RIGHT TO NEGOTIATE FOR
ESTABLISHMENT OF AN AUTO CENTER.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is
hereby authorized and directed to execute for and on behalf of
the City of San Bernardino an Agreement among the City of San
Bernardino, the Redevelopment Agency of the City of San
Bernardino, Dan Evans, Keith Harwood and Orange Show Plaza
Associates, a California limited partnership, granting the
exclusive right to negotiate for establishment of an auto center,
a copy of which agreement is attached hereto as Exhibit -1- and
incorporated herein by reference as though fully set forth at
length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on the
, 1985, by the following vote, to
day of
Council Members
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The foregoing resolution is hereby approved this
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of
, 1985.
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Mayor of the City of San Bernardino
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF
AN AGREEMENT AMONG THE CITY OF SAN BERNARDINO, THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO, DAN EVAJlS" KEITH HARWOOD
AND ORANGE SHOW PLAZA ASSOCIATES GRANTING THE EXCLUSIVE RIGHT TO
NEGOTIATE FOR ESTABLISHMENT OF AN AUTO CENTER.
BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Chairman and Secretary 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 an Agreement among the City of San Bernardino, the
Redevelopment Agency of the City of San Bernardino, Dan Evans,
Keith Harwood and Orange Show Plaza Associates, a California
limited partnership, granting the exclusive right to negotiate
for establishment of an auto center, a copy of which agreement is
attached hereto as Exhibit -1- and incorporated herein by
reference as though fully set forth at length.
ADOPTED:
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AGREEMENT AMONG THE CITY OP SAN BERNARDINO, THE REDEVELOPMENT
1 AGENCY OP THE CITY OP SAN BERNARDINO, DAN EVANS,
KEITH HARWOOD AND ORANGE SHOW PLAZA ASSOCIATES GRANTING EXCLUSIVE
2 RIGHT TO NEGOTIATE POR ESTABLISHMENT OP AN AUTO CENTER
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(Southeast Industrial Park Project Area)
THIS AGREEMENT(the -Agreement-) is entered into this
, 1985, by and between the
day of
CITY OP SAN BERNARDINO, CALIPORNIA (the -City-), a municipal
corporation of the State of California, the REDEVELOPMENT AGENCY
OP THE CITY OP SAN BERNARDINO, (the -Agency-), a public bodY,
corporate and pOlitic, of the State of California, and DAN EVANS,
KEITH HARWOOD and ORANGE SHOW PLAZA ASSOCIATES, a California
limited partnership, (collectively the -Developer-).
RECITALS
WHEREAS, the City has by its duly adopted Ordinance No. 3583
14 adopted the Redevelopment Plan for the Southeast Industrial Park
15 Redevelopment Project (the -Redevelopment Plan-) on June 21,
16 1976, and
17 WHEREAS, the Agency and the City have proposed the
18 development of an auto plaza (the -Auto Plaza-) on approximately
19 forty-seven (47) acres to be located partially within that
20 certain Southeast Industrial Park Redevelopment Project Area (the
21 -Project Area-), and partially within an area exclusively within
22 the jurisdiction of the City, and
23 WHEREAS, the Developer either owns or has a commitment to
24 acquire or to represent the owners concerning certain real
.
25 property shown on the map set forth on Exhibit -A- attached
26 hereto and incorporated herein by reference (the -Property-), and
o 27 the Property comprises that certain site upon which the Agency
28 and the City have proposed to locate the Auto Plaza and certain
ancillary commercial enterprises, and
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WHEREAS, the Developer desires and intends to use the major
portion of the Property exclusively for purposes of the Auto
Plaza with the northerly portion thereof, compromising
approximately six acres, to be devoted to ancillary commercial
uses such as restaurants, car washes, and other commercial
enterprises which will complement new vehicle sales activities,
as hereinafter set forth, and
WHEREAS, the Developer desires to obtain from the City and
the Agency, and the City and the Agency desire to grant to the
Developer, an exclusive right to negotiate for the development of
an auto center, as defined hereinafter, in the City for a limited
period of time, as set forth hereinafter.
AGREUE~
NOW, THEREFORE, in consideration of the mutual covenants,
terms and conditions set forth hereinafter, the parties hereto do
hereby agree as follows:
Sec~ion 1. Incorporation of Recitals and Redevelopmen~
~. The Recitals heretofore set forth are incorporated herein
by reference and are made a part of this Agreement. In addition,
the Redevelopment Plan is incorporated herein by reference in its
entirety.
Section 2. Defini~ions. As used herein, the term -auto
center- shall mean any parcel or contiguous parcels comprising a
restricted master plan area for auto dealer uses upon which six
(6) or more auto dealers are or shall be located. .As used
herein, the term -auto dealer- shall mean a business,
partnership, corporation, franchise, or any entity or party which
owns or operates a retail automotive sales and/or leasing
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business, including new and/or used car or truck sales by a new
car or new truck dealer, car rental agencies and other related
types of automotive activities.
Section 3. Exclusive Right to Negotiate. During the term
of this Agreement, the Agency shall negotiate exclusively with
the Developer with reference to the development of the Property
for purposes of the Auto Plaza and for acquisition by Developer
from Agency of that part of the Property presently owned by
Agency. The term -Developer- for purposes of this section
includes San Bernardino Auto Plaza, Inc., a corporation to be
formed, or any other entity in which Orange Show Plaza
Associates, Dan Evans and Keith Harwood comprise the major
ownership or hold the primary management role. For this purpose
and during the term of this Agreement, the Agency and the
Developer shall in good faith negotiate and determine the terms
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and conditions of, and shall prepare, an owner participation
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agreement (the -OPA-) to be entered into by and between the
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Agency and the Developer concerning the Property. The City and
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the Agency hereby agree not to negotiate with or to enter into
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any OPA, DDA or any other agreement with any party other than the
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Developer during the term of this Agreement with regard to the
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establishment or development of an auto center, as defined in
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this Agreement, in the City. The City and Agency further agree
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not to negotiate or to enter into any OPA, DDA or other agreement
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with any auto dealer during the term of this agree~ent with
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regard to the establishment of an auto dealership within the
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City, other than establishment of an auto dealership within the
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Auto Plaza on the Property, or other than the establishment of an
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include a minimum of six (6) auto dealers dealing in new cars
and/or new trucks. For the purposes of this Section, the
existing automobile dealerships on the periphery of the Auto
Plaza shall be regarded as an integral part thereof.
Notwithstanding the definition of auto dealers in Section 2, it
is the primary intent of the parties hereto to provide facilities
for not less than six (6) auto dealers selling primarily new cars
and/or new trucks. It is further understood and agreed by the
parties hereto that any and all development of the Property by
the Developer shall be in conformance with the Redevelopment Plan
and any and all zoning ordinances and other building and
development requirements of the City and the Agency. It is
further understood and agreed by the parties hereto that the OPA
shall provide, among other matters, that the development and
marketing of the Auto Plaza and the subsequent use and operation
of the Auto Plaza shall be sUbject to certain covenants,
conditions and restrictions (the .CC&Rs.) which shall be jointly
prepared by the Agency staff, Agency Counsel and the Developer,
subject to approval by the Community Development Commission of
the City of San Bernardino; such CC&Rs shall be recorded in the
Office of the County Recorder for the County of San Bernardino,
California. To the extent feasible, Developer shall attempt to
include the existing automobile dealerships on the periphery of
the project within the coverage of the CC&Rs.
Section 6. Submission of Documents by the DeyelQper. The
Developer shall promptly furnish to the City and the Agency,
upon request by either or both the City and the Agency, any and
all certified, audited financial statements and reports of the
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Developer which are deemed necessary by either or both the City
and the Agency, in its or their discretion, in order to proceed
with the preparation and execution of an OPA or any other
agreement by and between the City, the Agency and the Developer
for the development of the property. The Developer shall further
submit to either or both the City and the Agency, upon request by
either or both the City and Agency, any and all information
deemed necessary by either or both the City and the Agency, in
its or their discretion, pertaining to proposed financing of the
purchase and development of the Property by the Developer for the
purposes of the Auto Plaza.
Section 7. Notices. Any and all notices and communications
which any party hereto may be required to serve upon or give to
another party hereunder shall be served or given in writing by
personal service or by mailing a copy thereof by United States
mail, postage prepaid, addressed to the parties as follows:
To the City:
City Administrator, City of
San Bernardino
City Hall
300 North -D- Street
San Bernardino, CA 92418
To the Agency:
Executive Director
San Bernardino Redevelopment Agency
300 North -D- Street
San Bernardino, CA 92418
To the Developer:
San Bernardino Auto Plaza Associates
840 Newport Center Drive
Suite 540
Newport Beach, CA 92660
.
Section 8. Conditions for ~pproval of OPA. The City, the
Agency and the Developer understand and agree that if an OP~ or
other agreement is prepared in accordance with the Agreement,
28 then the OPA or such other agreement shall become effective only
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if and when, it at all, the OPA or such other agreement has been
considered and approved by the Agency, following public hearings
thereon, and thereafter upon the execution of the'OPA or such
other agreement by the Agency. The parties recognize that the
DDA between the Agency and Orange Show Plaza Associates presently
in existence may be supplanted in toto by any agreement
contemplated herein. The Developer shall cooperate with the
Agency and the City in preparing for and conducting any and all
appropriate public hearings. Approval by the Mayor and Common
Council shall also be required if any City inducements are to be
included.
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Agreement.
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Section 11. Entire AQreement. AmAndment. This Agreement
constitutes the entire agreement by and between the City, the
Agency and the Developer pertaining to the matters set forth
herein and supersedes any and all prior or contemporaneous
agreements and understandings with regard to such matters. The
parties intend this Agreement to be the final expression of their
agreement with respect to the terms and conditions hereof, and to
be a complete and exclusive statement of such terms and
conditions. No modification, amendment or waiver of any term or
condition hereof shall be binding or effective unless such
modification, amendment or waiver is executed in writing by all
parties hereto.
IN WITNESS WHEREOF, the City, the Agency and the Developer
have executed this Agreement as of the date first hereinabove
written.
CITY OF SAN BERNARDINO:
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO:
By
By
Chairman
Mayor
ATTEST:
By
Secretary
Approved as to form:
City Clerk
Approved as to form:
AGENCY COUNSEL
~t!:.~
Byd/~ ~~
DEVELOPER:
Dan Evans
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