HomeMy WebLinkAboutRS02-Redevelopment Agency
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, R~VELOPMENT AGENCY.rQaueST FOR cOMMISSION/COUNCIL AcOott
From:
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Glenda Saul, Executive Director
Subject:
STURGES CENTER FOR THE PERFORMING
ARTS LEASE AGREEMENT BETWEEN
STURGES CENTER FOR THE ARTS AND CITY
Redevelopment Agency
Date: July 2, 1987
Synopsis of Previous Commission/Council action:
10-5-81 Resolution 4249 - authorizing execution of option agreement with San
Bernardino City Unified School District for a lease/purchase on Sturges
Junior High School buildings.
7-6-82 Resolution 4345 - authorizing execution of contract for professional services
with City Engineering Department for parking lot, Sturges Auditorium.
ll-1-82 Resolution 4403 - authorizing RDA to reimburse City for costs relating to
construction of parking lot for Sturges Auditorium.
9-10-84 Resolution 4663 - authorizing DDA between RDA and Sturges Center for the Arts.
1-21-85 Resolution 4704 - authorizing and directing execution of agreement for
sub-lease of parking area to Sturges Center for the Arts.
(Continued on Page 2)
Recommended motion:
(COMKllNITY DEVELOPMENT COMMISSION)
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A. Move to cancel joint public hearing.
B. MOVE TO RESCIND MOTION OF MAY 11, 1987 TO APPROVE AUTHORIZATION TO EXERCISE RDA'S
RIGHT TO REPURCHASE STURGES AUDITORIUM FROM STURGES CENTER FOR THE ARTS, SUBJECT TO
FORMAL WITHDRAWAL BY STURGES CENTER FOR THE ARTS OF ITS NOTICE TO RDA OF INTENT TO
TRANSFER STURGES AUDITORIUM, DATED APRIL 21, ,1987.
C. MOVE TO ADOPT RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO, AUTHORIZING AND DIRECTING THE EXECUTION OF AMENDMENT NO. 1 TO THAT
CERTAIN DISPOSITION AND JOINT DEVELOPMENT AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND STURGES CENTER FOR THE ARTS.
(Continu~~
.4L U--wd-u .
-' Signature -
Contact person:
Glenda Saul
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
Ward: 1
Project: CCN
Date: July 6, 1987
Supporting data attached:
YES
No adverse Impact on City:
tCil Notes:
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Agenda Item No.
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From:
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Glenda Saul, Executive Director
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STURGES CENTER FOR THE PERFORMING ARTS
LEASE AGREEMENT BETWEEN STURGES
CENTER FOR THE ARTS AND CITY
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SYNOPSIS OF PREVIOUS COMMISSION/COUNCIL ACTION (Continued from Page 1)
5-11-87 Floor motion authorizing Redevelopment Agency to exercise its right to
repurchase Sturges Auditorium for $1.00, and directing Agency Counsel to
prepare appropriate Grant Deed and long-term lease with the City.
6-1-87 Approved and set joint public hearing for 6-15-87 at 11:00 a.m.
6-15-87 Opened and continued public hearing to 7-6-87.
RECOMMENDED MOTION (Continued from Page 1)
(MAYOR AND COMMON COUNCIL)
A. Move to cancel joint public hearing.
B. MOVE TO ADOPT RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A LEASE WITH STURGES CENTER FOR THE ARTS FOUNDATION, A
CALIFORNIA NON-PROFIT CORPORATION RELATING TO THE LEASE OF CERTAIN PREMISES
_ C LOCATED AT 780 NORTH wEw STREET.
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7/6/87 SUP
R~ELOPMENT AGENCY..&buEST FOR ~_ISSION/COUNCIL A910N
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STAFF REPORT
The Resolution authorizing the lease between the City and Sturges Center for the
Arts, and the draft lease had not been approved by the City Attorney in time to be
included in the original agenda. They are attached to this supplemental agenda
item.
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7/6/87 SUP
. Raf'.Na.OPMENT AGENCY....EST FOR eQ.1SSION/COUNCIL A~
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STtl&dl~~T
Sturges Auditorium was acquired by the Redevelopment Agency in 1981 for
$181,802.63. An additional $150,000 was spent to refurbish the building. On
November 1, 1984, a Disposition and Joint Development Agreement was executed
between the Agency and Sturges Center for the Arts. The Sturges Center purchased
the auditorium from the Agency for $1 to be used as a fine arts facility. The
obligation of the Sturges Center was to utilize the building for the promotion of
fine arts within the San Bernardino community.
On April 21, 1987, the Foundation gave notice of its wish to sell the Auditorium
to the City. The agreement with the Agency gave the Agency a right to repurchase
the Auditorium for one dollar.
On May 7, 1987, the Redevelopment Committee reviewed the request and recommended
that the Agency exercise its right to repurchase the property for $1. The
Committee further recommended that the Center then be leased to the City on a
long-term basis for performing arts purposes. The City would be responsible for
all maintenance, security, utilities and insurance. The recommendation was made
because the Agency would have a greater flexibility to resell the property at some
point in the future, if it is determined that it would be in the best interest of
all parties to do so.
On May 11, 1987, the Commission authorized the Agency to proceed with acquisition
of the Auditorium and directed the preparation of a long-term lease to the City.
The Agency was ready to proceed with the acquisition but was waiting for approval
of the lease.
A joint public hearing was held on June 15, 1987, to consider the lease agreement
but it was continued to July 6, 1987, because Staff learned that there is an
$80,000 trust deed against the parcel. A meeting was scheduled for Wednesday,
June 24, 1987, to discuss what could be done about the $80,000 trust deed.
Representatives of Sturges Center for the Arts have said they cannot payoff the
encumbrance at this time. The attorney for Sturges, Mr. Bill Lemann, suggested an
indemnification/hold harmless agreement between Sturges Center for the Arts and
the Redevelopment Agency. This would not, however, prevent a foreclosure sale of
the property, in the event Sturges Center for the Arts defaults in payments on the
$80,000 trust deed. The conclusion of the meeting was that Sturges Center for the
Arts could retain title and lease the property to the City.
One of the issues brought up at the meeting on June 24, 1987, concerned the
insurance on Sturges auditorium. The fire and liability policy that Sturges
Center for the Arts currently hold expires on June 30, 1987. The Sturges board
members are understandably concerned about any gap in coverage that may occur
between the expiration of the old policy and the time new coverage is effective.
We have been told that Sturges Center for the Arts, being a nonprofit corporation,
qualifies for better than market insurance rates. The Sturges representatives
proposed that, rather than the City adding Sturges Auditorium and grounds to its
existing fire and liability policy, it might be less expensive for Sturges to
maintain coverage, and be reimbursed by the City.
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. R~VELOPMENT AGENCY.R1:4JEST FOR cOMMISSION/COUNCIL AeQc.
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STAFF REPORT
On June 25, 1986, the Redevelopment Committee reviewed the proposed solution of
the City leasing the auditorium directly from Sturges. The Committee stressed the
importance of making certain that the Agency still had the right of first refusal
to repurchase the property for $1. To this end, RDA Counsel is preparing a letter
to be signed by Sturges Center for the Arts, formally rescinding the notice to RDA
of intent to transfer the Sturges Auditorium and grounds, dated April 21, 1987.
Sturges Counsel has advised there will be no problem executing this document.
The Redevelopment Committee has also recommended that a first amendment to the
Sturges DDA be negotiated setting forth that there shall be no further encumbrance
of Sturges Auditorium and grounds, without the prior written approval of the RDA.
The amendment also restates that the RDA has a first right of refusal to
repurchase the subject, upon written notice from Sturges Center for the Arts of
its intent to. tranfer it. Bill Lemann, attorney for the Sturges Foundation, has
assured Staff that there is no problem with this amendment.
The following attachments are provided for your review:
(1) Commission Resolution authorizing first Amendment.
(2) Draft Amendment.
(3) City Resolution authorizing Lease.
(4) Draft Lease.
(5) Draft RDA letter confirming formal withdrawal by Sturges Center for the Arts
of its notice of intent to transfer property, dated April 21, 1987.
(6) Location map.
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REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
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GLENDA SAUL
EXECUTIVE DIRECTOR
July 6, 1987
Ms. Thelma Press, Chairman
Sturges Center for the Arts Foundation
300 North wDw Street
San Bernardino, CA 92418
Re: Withdrawal of Notice of Intention
of Sale of Sturges Auditorium
Dear Ms. Press:
This letter seeks to confirm the revocation of the Foundation's notice
to the Redevelopment Agency, dated April 21, 1987, of the Sturges
Foundation's intention to sell the auditorium.
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Conditional upon this revocation, and in reliance of the Sturges
Foundation's revocation of the notice to sell, the Agency withdraws
its notice of its intention to purchase the property pursuant to
Section 2.2(b) of the Disposition and Joint Development Agreement,
dated November I, 1984.
Should there be any additional changes in the Foundation's intentions,
please notify us at the earliest opportunity.
Yours very truly,
Glenda Saul
Executive Director
GS:rmm:0435H
The withdrawal of the notice of intention
to sell the property is hereby confirmed;
Sturges Center for the Arts Foundation
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By:
Title:
em HALL . 300 NORTIi "0" STREET . RM. 320 . SAN BERNARDINO, CALIFORNIA 92418 . PHONE: (714) 383-5081
TELEX: 6711291 RDEV UW
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RESOLUTION NO.
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
2 EXECUTION OF A LEASE WITH STURGES CENTER FOR THE ARTS FOUNDATION,
3 A CALIFORNIA NON-PROFIT CORPORATION RELATING TO THE LEASE OF
CERTAIN PREMISES LOCATED AT 780 NORTH -E- STREET. .
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BE IT RESOLVED BY THE MAYOR AND COMMON COONCIL OF THE CITY
5 OF SAN BERNARDINO AS FOLLOWS: ~. ~.
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SECTION I. The Mayor of the City of San Bernardino is
7 authorized and directed to execute on behalf of the City a Lease
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with the Sturges Center for the Arts Foundation, a California
9 Non-Profit Corporation, relating to the lease of certain premises
10 located at 780 North -E- Street, San Bernardino, California, a
1] copy of which is attached hereto marked Exhibit -A- and
12 incorporated herein by reference as fully as though set forth 'at
13 length.
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I HEREBY CERTIFY that the foregoing resolution was duly
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The foregoing resolution is hereby approved this day
, 1987.
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Approved as to form
6 and legal content:
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,;;~.~. -..:' ..-~. .
_,...or
~.:-::t~t ~ ."-~-
Mayor of the City of .S,an Bernardino
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LEASE
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This Lease is made and entered into this ___ day of
, 1987, by and between the Sturges Center for the
Arts Foundation, A California Non-profit Corporation and pOlitic
("Foundation") and the CITY OF SAN BERNARDINO, a municipal
corporation ("City").
WIT N E SSE T H:
WHEREAS, the Foundation owns a certain parcel of real
property, together with improvements thereon ("Property") located
at 780 North "E" Street in the City of San Bernardino, the exact
legal description of which is set forth at Exhibit "B" attached
hereto and incorporated herein by reference~ and
WHEREAS, the City desires to use the Property as an arts
center, a theatre and art gallery, and to house various art
oriented activities for the benefit of residents of the City of
San Bernardino~
NOW, THEREFORE, in consideration of the rental hereinafter
reserved and agreed to be paid to the Foundation by the City and
the mutual promises, obligations, agreements and covenants
hereinafter set forth and the faithful performance thereof, the
parties mutually agree as follows:
I. Prooertv Lease. The Foundation hereby leases and lets
to the City and the City hires and leases from the Foundation,
those certain premises located at 780 North "E" Street, City of
San Bernardino, County of San Bernardino, State of California,
more particularly described in Exhibit "B" annexed hereto
incorporated by reference.
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EXHIBIT
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2.
Term.
This Lease shall be for a period of ten (10)
years, commencing July IS, 1987, subject to renewals and various
options as set forth hereinafter. This Lease shall terminate at
noon on the fifteenth day of June, 1997, unless otherwise
extended by mutual consent of the parties.
3. Rental Pavment. The City shall pay to the Foundation
7 each year, commencing July 15, 1987, and on June 15 of each year
8 thereafter, a rental payment in the amount of $1.00 per year.
9 4. ~ The demised premises shall be used for various
10 arts purposes. Any lease, sublease or tenancy agreement covering
11 any portion of the premises shall be subject to the approval of
12 the Community Development Commission of the City of San
13 Bernardino.
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5. Maintenance and Reoairs. The City represents that it
15 is familiar with the leased premises and has knowledge of the
16 present conditions that exist thereon. The City shall, at its
17 own expense, maintain the leased premises and all improvements
18 thereon in good order, condition and repair. The Foundation
19 shall not be responsible for any repairs of any kind whatsoever
20 during the term of this Lease. The City shall provide or cause
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plumbing, painting, heating, ventilation, air conditioning and
24 any other service of any kind whatsoever in connection with the
25 operation, maintenance and repair of this property. The City
26 shall keep the leased premises and any and all improvements
27 thereon free and clear of all liens, charges and encumbrances and
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1 shall, upon expiration of the term of this agreement, return the
2 premises to the Foundation in as good condition on as when first
3 assumed by the City, normal wear and tear excepted.
4 6. Inspections. The Foundation, its agents, officers and
5 employees, may enter upon the premises at such reasonable times
6 during the City's normal business hours as the Foundation deems
7 necessary for the purpose of the inspection of the premises to
8 determine whether the terms and conditions of the lease are being
9 carried out.
10 7. OWnership. The City hereby acknowledges and accepts
11 the title and paramount ownership and interest of the Foundation
12 to the leased premises and the City agrees not to claim,
13 challenge or contest such title, ownership and entire interest of
14 the Foundation.
15 8. Utilities. The City shall pay for all water, gas,
16 heat, telephone. service, refuse service, and any and all other
17 services which may be supplied to the premises.
18 9. Defaults. In the event the City shall be in default in
19 the payment of rentals or other charges hereunder or shall
20 otherwise breach its covenants or obligations hereunder, and
21 shall be and remain in default for a period of thirty (30) days
22 after notice from the Foundation to the City of such default, the
23 Foundation shall have the right and privilege of terminating this
24 Lease and all of its options and declaring the same at an end,
25 and of entering upon on and taking possession of said premises,
26 and shall have the remedies now or hereafter provided by law for
27 recovery of rent, repossession of the premises and damages
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occasioned by such default. If such default should occur, then
the Foundation shall have the right to take possession of and
appropriate to itself without payment therefor any property of
the City or anyone claiming under it then remaining on said
premises.
10. Surrender U90n Termination. Upon revocation,
surrender, expiration or other termination of this Lease, the
City shall quietly and peaceably surrender the leased premises in
as good condition as same was at the time of the City's entry
thereon, reasonable wear and tear excepted, subject to the
conditions herein set forth.
11. Insurance. The City agrees to procure and maintain in
13 force during the term of this Lease and any extension thereof,
14 at its expense, a policy or policies of insurance against loss or
c:: 15 damage to the leased premises, appurtenances and permanent
16 equipment, resulting from fire, lightening, vandalism, malicious
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17 mischief, and such perils ordinarily defined as "extended
18 coverage" and other perils. The City agrees to procure and
19 maintain in force during the term of this Lease and any extension
20 thereof, at-its expense, or tq provide through self-insurance,
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21 public liability insurance adequate to protect against liability
22 for damage claims through public use of or arising out of
23 accidents occurring in or around the leased premises. Any
24 insurance policies shall provide coverage for the Foundation's
25 contingent liability on such claims or losses, and the Foundation
26 shall be named as an additional insured on any such policies.
27 All insurance shall be provided by City in such manner and in
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1 such amount as City provides for buildings owned by the City.
2 City is hereby specifically authorized to self-insure for public
3 liability, and loss on damage to the leased premises, and for
4 such other risks as are assumed under this lease. The City shall
5 furnish the Foundation concurrently with the execution hereof,
6 with satisfactory evidence of the insurance required, and
7 evidence that each carrier, if any, or the City, if self-insured,
8 is required to give the Foundation at least ten (10) days' prior
9 notice of the cancellation or reduction in coverage of any policy
10 during the effective period of this Lease. The City agrees that
11 if the above-described coverages are not kept in force during the
12 entire term.of this Lease and any extension thereof, the
13 Foundation may procure the necessary insurance, pay the premium
14 therefor, and that such premium shall be repaid to the Foundation
15 as an additional rental installment following the date on which
16 such premiums are paid.
17 12. Damaae bv Fire. Earthauake. etc. It is expressly
18 understood and agreed that the rental and any other obligations
19 assumed by the City hereunder shall become due only in
20 consideration of the right to occupy and use the leased premises
21 from year to year and, except as herein provided, it is the
22 responsibility of the Foundation to provide such right of
23 occupancy and use at all times. In the event of destruction or
24 damage to the leased premises by fire or earthquake or other
25 casualty or events so that they become wholly or partly unusable,
26 the Foundation, at its option, may do either of the following:
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1 (a) Rebuild and repair the leased premises so that
2 they shall be restored to use, in which case this Lease shall
3 remain in full force and effect. Any excess of insurance
4 proceeds resulting from such destruction or damage over the
5 amount expended for such repairing or rebuilding, shall be paid
6 to the Agency, or
7 (b) Declare this Lease terminated and use any money
8 collected from insurance against the destruction of or damage to
9 the leased premises in any manner it deems fit.
10 13. Eminent Domain. If the whole or more than 10% of
11 usable square footage of the leased premises, or so much thereof
12 as to render the remainder unusable for the purposes for which
13 the same was leased, shall be taken under the power of eminent
14 domain, then this Lease shall terminate as of the date possession
15 shall be taken. If less than the whole, or 10% of the usable
16 square footage of the leased premises shall be taken under the
17 power of eminent domain, and the remainder is usable for the
18 leased purposes, then this Lease shall continue in full force and
19 effect and shall not be terminated by virtue of such taking and
20 the parties may waive the benefit of any law to the contrary, in
21 which event there shall be partial abatement of the rent
22 hereunder in an amount equivalent to the prorated use of the
23 remaining premises. Any award made in eminent domain proceedings
24 for the taking or damaging of the leased premises in whole or in
25 part shall be paid to the Foundation, together with any other
26 money which shall be or may be made available for such purpose.
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14. Assianments. The City shall not assign this Lease
without obtaining the prior written consent of the Foundation.
15. Non-Discrimination. The City hereby covenants by and
for itself, its heirs, executors, administrators, and assigns and
all persons claiming under or through it, and this Lease made and
accepted upon and sUbject to the following conditions:
That there shall be no discrimination against or
segregation of any person or group of persons, on account of
race, color, creed, national origin, or ancestry, in the leasing,
subleasing, transferring, use, occupancy, tenure, or enjoyment of
the premises herein leased, nor shall the City itself, or any
person claiming under or through it, establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy
15 of tenants, lessees, subleasees, subtenants, or vendees in the
16 premises herein leased.
17 16. Validitv. If anyone or more of the terms,
18 provisions, promises, covenants, or conditions of this Lease
19 shall to any extent be adjudged invalid, unenforceable, void or
20 voidable, for any reason whatsoever, by a court of competent
21 jurisdiction, each and all of the remaining terms, provisions,
22 promises, covenants, and conditions of this Lease shall not be
23 affected thereby and shall be valid and enforceable to the
24 fullest extent permitted by law.
25 17. Effect of Foundation's Waiver. The Foundation's
26 waiver of breach of one term, covenant, or condition of this
27 Lease is not a waiver of breach of others, nor of subsequent
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breach of the one waived.
The Foundation's acceptance of rent
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2 payments after breach is not a waiver of the breach, except of
3 breach of the covenant to pay the rent payment accepted.
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la. Possessory Interest Taxes. The City covenants during
5 the term of this Lease to pay, when due, all taxes and
6 assessments that may be assessed or imposed upon the City's
7 possessory interest in and to the premises and on any personal
8 property that is located on the demised premises. The City
9 agrees to indemnify the Foundation and pay all sums due hereunder
10 forthwith upon demand therefor by the Foundation in the event
11 that the Foundation is required to make any such payments arising
12 from the possessory interests of the City, its agents, assignee
13 or subleasees.
14 19. Notices. All notices herein required shall be in
C 15 writing and delivered in person or sent by certified mail,
~ 16 postage prepaid, addresses as follows:
17
Foundation
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18 Sturges Center for the Arts
Foundation
19 c/o Thelma Press
300 North "D" Street
20 San Bernardino, CA 9241
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92~la
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20. Recordation. The Foundation may have this Lease
recorded in the Office of the County Recorder, San Bernardino
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County, State of California, together with the appropriate
resolution of the governing body of the Foundation.
21. Time of Essence. Time is of the essence herein.
22. This lease is sUbject to those covenants, dedications
restrictions on the use of Sturges Auditorium set forth in
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10 ATTEST:
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12 Secretary
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C 15 ATTEST:
16 City Clerk
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18 Approved as to form
anq, legal c~ntent:
19 'A",", 1 ,Jiv-.Jn.....
20 cH:y Attorney
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that document entitled "Disposition and Joint Development
Agreement" recorded as Document No. a4-2a7aOa in the office of
the San Bernardino County Recorder on December 3, 19a4, a copy of
which is attached hereto as Exhibit "C" and incorporated by
reference herein as fully as though set forth herein.
IN WITNESS WHEREOF, the parties have executed this Lease on
the day and year first above written.
STURGES CENTER FOR THE ARTS
A California Non-Profit Corporation
By
CITY OF SAN BERNARDINO
By
Mayor
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LEGAL DESCRIPTION
A portion of Lots 7 and a, Block 53, City of San
4 Bernardino, in the City of San Bernardino, County of San
5 Bernardino, State of California, as per map recorded in Book 7 of
6
7
Maps, Page 1, Records of said County.
Beginning at the northeast corner of said Lot 8;
thence south 0 deg. 09' 148 east along the east
line of said Lot 8; a distance of 152.50 feet; thence
south 89 deg. 57' 128 west parallel with the north
line of said Lots 7 and 8, a distance of 200.00 feet;
thence north 0 deg. 09' 148 west parallel with said
east line, 152.50 feet to said north line; thence
north 89 deg. 57' 128 east 200.00 feet to the point
of beginning.
EXHIBIT B
....... IloqulS ~:
ACiLNCt
r.:...n ~(':~ed. to:
::~~'L'.'(~C~UfN ACENCY OF THE NT "VELO ME
CiT,' ~i SJ,~ It NWINO, CA DISPOSITION AIID JOI D. P NT Ar.J\EEMENT
300 Nort" .0" . Am 31A.IS AGREEMENT 10 ..de and entered into th1a J
$.).,8r.r,.,.,1II11'O C\ 92.1....
] tJ()",.....~...., 19", by and between the Rl!:DEVELOPIIENT AGENCY
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l[CCIlOlD AT '''ClttQUlIT 01
-.sf AIIUOCM hTLI ""uMNCI co.
dey of
or 'I1IE CITY OF SAIl BE-:"ARDINO, a public body corponte
(hereinafter called -Agency-), and STURGES CENTER POR THE
a California non-profit corporation (hereinafter called
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ARTS, ~
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-Foundaticn-) .
The parties agree aa followa:
SECTION 1. Recitala.
1.1 Agency ia the owner of premiae. commonly known a. the
Sturgea Auditoriua, located at the aouthw..t corner of ~E. Street
and Ei9hth Streat in the City of San Bernardino, the exect lege1
deacription of which property ia aet forth in Exhibit "A" attach~
hereto and incorporated herein by reference. Agency i. willing
to .ell ~hi. property at a nominal price to FoundatIon, with
certain ..suranc.. that the property will be u..d in the public
inter..t, and for the promotion and furtherance of cul~ural
pursuits and the promotion of the art. 1n the San Bernardino
area.
1.2 Foundatlon i. a non-profit corporation recently formed
for the purpole of preaerving and reator1nq the SSO-seat
auditorium known a. Sturgel Auditorium, in rc:o;nition of it.
out.t~ndin9 architectural .1qnificance. Found.~ion propo... that
the Sturges Auditorlum will provide a permanent art activity
center for the City of San Bernardino, provide & pOrManent
central locatlon for various art group. of the City, and include.
cla..room facllltl.. which could aerv. .. gaIIer1.. for &
permanent art gAllery, and could house v~riou. other art and art
EXHWIT
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SECTION 2. Iaplementation.
2~1 Aieney Agr... to ..11, and roundation .,c... to buy,
the property generally ro~.rr.d to .. the Stur9.. Au41tor1ua, I.
fully described In Exhl~1t -A- attached heretA and tncor~r.t.d
h.rein by reference. for the sum of One Dollar (Sl.00) 1n c..h,
due in full at time of cloalng, subject to the ter.. and
condition. apecified hereinafter.
2.2 ~he .greement ahall be subject to the condition.
.p~~~11.d hereinafter, which ahall be covenant. runniDg with
tile land. The Agency ahall be deemed an inter..ted party and
ahall hi'. atanding to ..et enforc.ment of thia .gr....nt and of
the condition. and covenanta running with the land. The
condi~ion. ahall be .. followa:
(e) The real property conveyed hereby ahall r~.in,
un~il rele.sed by permission of the Community Development
C~ission, its aucce..ors or ...19n., dedicated to the
pre~~rvation and encouragement of fine arts for the San
Bern~rdino community. In the event that Found.tior, its
Successors or assign. shall fail to abide by this covenant,
Agency ahall have tho power, at its option, to declare this
condition violated through the following procedure. After hold!n
· public hearing before the q~verninq body of the Agency on the
is.ue of auch alle;ed violation, of which Foundation i. given at
least ten (10) day. advance notice, at which heAring the
!'OUDC" :.10n',. ita auccessor. and ...ign. ahAll be given
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~bl. opportunity to be heard, the Agency ahall determine
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. the condition ha. in fact L~~n violated. Upon a
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det...ination .od. in ,ood faitb that tbe condition he. in fact
2 be.n violated, A,.ncy ebell r.cord ita dete..ination of breech of
] thi. condition, upon whicb record in, title to tbi. property .hall
4 revert to ",ency fortbw.,h, and A,ency .ball bave tbe ri,ht of
S i...diat. po.....lon.
6 lbl In the event tbet Foundation electe to ..11 or
1 otbervla. dlapo.. of the property, roundation ahall give notlc. to
1 A,ency of ita intention to ao diapo.e of tbe property, and of tbe
9 propo.ed purch...r or grant.. of th~ property, and of any
10 condition. intended to be included In auch tranafer of titl., at
II wbicb point ",ency .bell bave tbe ri,bt to repurche.e the property
12 for One Doller 111.001. If, efter written notice to ",ency of the
I] inforaation provided for berein, A,ency fail. for thirt, da,. or
14 DOre to notify roundation of it. de. ire to e.erci.e it. ri,bt to
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repurcbeee the property for One Dollar 111,001, the ri,ht of
repurch... 1. d...e4 to be vaived, and Agency ahall have no
further ri9ht of r.purch.... Such. waiver ahall not affect
Agency'. authority to enforce the condition. aet forth In
.9 aubparagraph ea) above, however, which authority ahall continue In
20
full force.
21
leI Foundation covenanta that it will .ake the facility
available to varlau. art. groups located within the City of San
22
23 eernardino, inclUding, to the eKtent f!:e.lble, providing a
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percenent location for variouc art. qroup. of the City, .nd .hall
2~ llkowl.. provide ,alleri.. for the cSi.play ot vot'k. ot art, .nd
26
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aball furtber work witb varioua city a,enciea in proaotin, the
tine art. within the coamunlty of San Bernardino.
2.3 A9~ncy Ihall devote the proceed. ot the ..1. of the
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California Theatre property to the Clvle: Light Opera .\..oelltlon '.
2 .to the refurbllhing of Sturg.. Auditor1u., which pro~..d. are to
) be in the au. of $150,000.00. 'roa tho.. proceed., Agency Ihlll
~ rrelmbur.~ 'oundatlon for ..pe~~.. Incurred In the "efurblahlng OE
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i'the Auditorium and factlitiel, or, upon certification by
/:YOUndation that vork ha. been done and that p.ya.nt ,. due, ..,
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I'pay directly to COl'\tractors and other. providing labor or ..teri.l
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i .hall be re.pon.ible to provide no aor. than the $150,000.00
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I'. proclI!eds of the .ale of the C.llforn!. Th..tre to Civic Light
Opera A.sO~~.tion, and payment of the.e funda ahall be in-the-
I':sound discret10n of Age"cy end devoted only for the pay.ent of
'expenses actually and re.sonably incurred in such refurbilhing.
j 2.4 The property Ihall be used, and it i. a covenant runnlng
J with thl! Jalod that it sh:..'ll only be used, for redevelopment .nd
I use of the property 1n confor.ence w1th the redevelopment plan for
I: the Central City North Redevelopment Project, which covenant shall
/: expire upon termlnat10.. of the redevelopment plan for thet
I project.
I" 2. S The provisions of this agreement relative to the use of
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I and 2.4 ahall survive the execution and delivery of the deed
I: provided for here In.
I; 2.6 'the Agency and Foundation Ihall open an elcrow with
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I:First American Title Complny, S.n Bernardino, California (-Elcrow
I' Holder-), within three (l) bUline.. day. after the
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..Ie. tran.action cont..plated hereby. The Avency end ~he
roundatlon '91''' to ...cute luch additlonal ..cr~v inltructlonl
not lnconllatent with the t.~. and provlllon. of thi.
_,,,e...nt .. ..y be required by the Elcrov Ho14er for the rurpo..
of con.u~tln9 the ..1.. tran..ctlon. E~rov ahall be
Ichedul.4 to cia.. on or before September 1. 1985, or not later
than thirty ()O) day. .fter the dat. of approval and exacution at
thi. .greement by the part i.. hereto. Cla.. of ..crow ahall be
the date upon which the Gran. D.ed from the Avency to ~he roundaU n
11 recorded, provided ~het .aid Grent Deed .hall be deUvered by
the "Veney to ~he "acrow Holder not later then two 121 bud.....
day. prior to a acheduled close of e.crow. Title ~o ~he
property ahall be delivered to the Foundation purauant to .
Grant Deed which Grant Deed ahall include or ~dequately
incorporate the condition. apecified in Section. 2.2 end 2,4
hereinabove. The obligation of the Agency to ~~11ver the Grant
Deed and cIo.. ~h. .acrow ia conditioned upon the Foundation
depositing with the Escro,,", Holder th: full e~.:'-.;.:-.t of the purchaae
price of the property. Each party Ehall p~y i~t own ordinary
portion of the coat. and esero,,", fee!.
2.7 All notlce. and d~ands of l.:.ny ~in= d'lieh any rzorty
hereto.ay be required to aerve upon Lny other p=rty under the
terma of this agreement ahall be .erv~~ in ~ritln9 on rueh other
party by per~n6l aervice or by lccving L COFY of auch noti=~ or
dU!.And at the addre.. hereinafter aet forth,whe;reupon service.
ahall be deeruod complete, Dr by 1II.&.i.li~ a cc:-r \~h~rcof by
certified or regiltered mAil, poataqe pr~r~;-
h rtturn r~=clpt
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~equ..ted, .ddr....d .1 followa.
If to the Agency.
If to the roundetion,
Sturge. Center for the Arta
Foundation
c/o Thel.. pre.a
300 North -Dw Stre.t
San Bernardino, CA t2.~'
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~.cut1v. Director
A.development Afency of
thr City of San
aem.reSina
300 North -Ow Stre.t
San Bernardino. CA '2411
In ca.. ot ..rvi~~ by ..11, ..rvice aball b. d...ed camplete at
the expiretion of the third day after the date of .ailin9' The
.ddr..... to which notl~.. and d"'ndl mAY b. delivered or ..nt
..y be changed. frOJl ti.. to time by notic. .. hereinabove
provided by any party upon the other party.
2.1 In the event Agency claim. Foundatlon, ita lucc...ora
or ...i9nl baa br.ached any of thl condit1~n. of thi, .gr....nt
lpe:lfled in Section 2.2 or Section 2.4, prior to taking action
to te~inate the r~9ht. of round.tiO". ita luee...or. or ...1gnl,
or to leek reverter of title to ~h. Agency, and prior to
in.tituting any action to enforce the c~ndition. of this
agreement, Agency .hall give thirty (3~) d.ya notice to
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Foundation, it. successor. or ~~Bign., to cure said breach.
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a furt.her and cumulat.ive remedy, the FC~:i1dation, for it...lf,
leg&l represent.atives, lucecr=orl and L :ign., ~qrees that the
Agency, ita successors and aE:i;n~, &h~ll have the right and power
to inatitute and prosecute ~y proceeding at law or in equity to
enforce any covenants or a9re~,ent. herein cont~ined and to
enjoi.n t.he threat.ened or &t.t.c:.~ptcd Y101~tion th;;rc:o! b:,.
Found~tion, it. legal repr..~nt~t1ver.. lucce.~or'. t~~~nt. and
...i9n8. In addition, the Foundati~
~ itcel!, 1t~ legal
'0' hereby tp=cifically
reprelentatives, lucce..ors and 6c;i
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2.' Thia .9r.8M.nt ahall be con.~ru.4 and enforced 1n
4 accordance with the law. of the State of California. ~hovld any
5 action be brought 1n any court of competent jurladi~tlon, the
, prevailing ~rty in luch action ahall be entitled to re..anable
1 attorney'a feel, court coat. and n.c....ry diaburaementl in
. connection with auch liciqation.
9
2.10 Foundation .gre.. that, in addition to the other
10 provilLon. .et forth 1n chi. .greement, the property ahAll be
II v.ed.. .et forth in chi. laction, and that t ere ahall be no
12
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dilcrt.ination .9&1nat Or a.gregation of any peraon Of ,roup of
14
persona on account of race, color, cr..d, religion, ..X, .arital
.tatus, n.tional ori9in or anc..tory in the .ale, lea..,
.ubl...., transfer, us., occupancy, tenure or enjoyment of the
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premiae. to b4 conveyed, nor ahall the Foundation or any
grantees, 11r.ense.. or permittees or any per.ona clat.inq under
or through the Foundation ett.::.blitli or permit any such practic.
or practices or di.crL~in~tlon or ~~~re9.tion with reference to
20 the ..lection, location, r.ur.lbcr, u=- or occupancy of tenants,
21 les.ora, subtenants. sublc~se~!:, ve~.dee., attendees, or other
22 business invitee. 1n th~ rrc:nif.e!; to be ccnveyed. This agree:nent
23 chall be A covenant run:;i:::; ..dth Uo.e land, and shall inure to
24 the benefit of And be enfC're:.:.~le b:,' the 1-gene)', ite tuccessors
25 and a'ligna. Furthemorc, it iE intonded and agreed that the
26 covenant. contained in th1~ ~ube~ct:~n shall re~ain in effect
27 without latt.tlon .1 to tb.c.
21
SECTION J. Except t..~ (, -
~xprc~.ly ~rovid~d her,!n,
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STAn or CALlfCUU )
COUNrY or SAIl IDlIAaDIMO )
o. ND"...~tA I If~ . Wor.. OUII J_S JOMES, n., . 00'''' public,
"1'10..11, ."..r" v.a. 1I0LCOlll ... GLlNDA. SAUL. pn,oaa11, k.... c. .. co be cb.
..nOM'" ...cuce' eM. 1...t~e.t .. Ci.::1naaa
... Seeratal", r..p.cU".1,. 01 the IlD!VELOPMEK1' AGIlICY 0'
DUCAlJ)IIiIO .Dd .a._led.e' t.o u t~", t t.be J.lDEY!.LOfMDI1' .cENCI 0'
tld Ie.
,
OLEN JAMES JONES. J~
flOrA" lVallc . CAU'OIlUA
1M .1""'DfIlO eMrY
My CMrl"""... r.,...n GeL If. 1987
t~~~
OUN J~S '~',:IS. NOTAlY IUIUC
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STATE Of' CAllfQlttilIA D., l' .11.
COUN""OI~_.R!!.~..!f,.J_~__. _.,.1
On.___Ald.U4! ~.,-L'4!______....!~_.II'l'''''''''''',,,~~. ,.. ',P...NCIrI.llCIfor
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......M1..~ew.Mnc.lk:I.. ....~I......_8dI~..'~..".~..".....t""lL'___ __ _ __ _ _ .
-.--_.__ __"'....f11811cl__ u_ .___ ...__~~-. Cl"'f.' .: (;'_____ _____.
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thia .9r...ent conatStute. the .ntir. .gr....nt betw..n ~he
pArt i.. pertainin, to the .~bj.ct .att.r t..r.in .n~ .upe~.e4..
all pr1o~ and cont._porary .gr..ment. and u.nderatandlftlJl. The
partie. int.nd thi. .gr....nt to be the final .apr...lon nf ~b.lr
.greement with re.p.ct to the terma h.reof an4 the c~pl.t. and
excluliv. .tatem_nt of .uch term.. No modification, ..endment
or v.iver of any term hereof ahall ~e binding unl... executed in
writing by any party or partiea to be bound ~hereby.
SECTION 4. Th. provi.ion. of thi. .gr....nt are .everabl.
except a. her. in provided. If any provilion or clau.e of t.hil
agr.ement 11 h.ld invalid, the invalidity lhall not .ffect any
other provilion or .pplication of this .gr....nt which can be
given effect without the invalid provilion or .pplic.tion.
IN WITNESS WHtREOF, the partl.. have executed thl.
agreement on the day and year firat her.inabove written.
~~OEVELOPKENT AGENCY or
C;TY OF SAN BERNARDI
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Approved as to form:
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Secretary
AGENCY COUNSEL
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S7~RGES CENTER FOR THE ARTS
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_ rCITY CLERK
____ 300 North 0 Street
on . San Bernard 1no
..... CA 92418
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ntII Order No.
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.~ACII AeoYlI TMI. UN. PO" "IICO"OIl"'. U.II
Corporation Grant Deed
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1M undenipN cleet.rft thai the 4ocu....tar' lrander Ia. g .........................._....... ...............".......................,...... and is
o compulell Oft 1M full -.1", of dM inte'" or propen, conveyed. or g
o eompuled 011 the full ,,&lye Ie. 1M nl", of Iiad or eftCUmbranc:n mnaininl thereon at \he Lime of ..Ie. The laIuL
leI'Iemenll or rail, i. located in
o uniftcorponlecl area 0 cil, 01...................................................................................................... and
FOR A VALUABLE CONSIDERATION. ....ipt .f .lIich g bereb, aekno........
STURGES CENTER FOR THE ARTS, A CALIFORNIA NON-PROFIT CORPORATION
a carper.ti.. or.aniaecl under the .... of the Slate of
_, GRANTIS).o THE CITY OF SAN BERNARDINO, A MUNICIPAL CORPORATION
the followinl .....ibec:l real propen, in the
Counl' of San Bernardino
. stale of Califorala:
A portion of Lot. 7 end 8, Block 53, City of San Bernerdino, in the
City of San Bernardino, County of San Bernardino, State of California,
8S per map recorded in Book 7 of ~1i!j:'s, page " records of said County.
as more particularly described in Exhibit "An attached hereto and made
a part hereof.
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This conveyance is given subject t: the terms and conditions of .
Disposition and Joint Development ~reement between the Sturges Center
f or the Arrs, a Ca 1 iforn i a corpor:-': on and. the Redeve lopment Agency of
the City of San Bernardino. a publ corporation. on file as docu~nt
number 84-28i808 in the office of ;~ County Recorder of the County of
San Bernardino. The conditions s;;,,-,:1fied in Sections 2.2(a), 2,4, 2.5,
2.8, 2.9. 2.10. Sections 3 and 4 c: that document are incorporated herein
by reference.
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STAT[ OF CAlIFORSI.-\
COl'~TY OF'
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STURGES CEK7ER FOR THE ARTS, .
Califorr..1 E r,oil=.rrof 1 t corooraticn
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Presidcry r. 0
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Secretary \::J " _
D.t~,( AD!'!l 29. 1987
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lhe IIn<Jfr~'r"..J. ~ ~,,:~., rwLhr in and for tI",! f.o\l!""
pot",,,,.;);, al'r~~:.l
11."0"" '0 m.. III l,.. .~, r'('>ldefll, ;",~
".o~. "'~T' F.Y SEAL CF: :
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\l..\IL T.n STATE'lE'iTS TO r.\nn 5110\'1.-'" 1)"-;
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P".)EL. NO. 11 AUD nOR I Ut1 AND IiROUNDS
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'A PO~TION OF LOTS 7 AND e. BL.OCK 53. CITY OF SAN BERNARDINO.
IN THE CITY OF SAN BERNARDINO. COUNTY OF SAN BERNARDINO. STATE
OF CAL.IFORNIA. AS PER "AP RECORDED IN BOOK 7 OF "APS. PAGE 1,
RECORDS OF SAID COUNTY.
BEGINNING AT THE NORTHEAST CORNER OF SAID L.OT 8; THENCE SOUTH
D DEG. a.' 14- EAST AL.ONG THE EAST LINE OF SAID LOT 8. A DISTANCE
OF 15Z.5D FEET. THENCE SOUTH 8. DEG. 57' 1Z- WEST PARAL.LEL. WITH
THE NORTH LINE OF SAID LOTS 7 AND 8. A DISTANCE OF ZDo.oo FEET;
THENCE NORTH 0 DEG. D.' 14- WEST PARAL.L.EL. WITH SAID EAST L.INE,
15Z.5o FEET TO SAID NORTH L.INE; THENCE NORTH 8. DEG. 57' 1Z-
EAST Zoo.DD FEET TO THE POINT OF BEGINNING.
AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN
PRINTED EXCEPTIONS AND EXCL.USIONS IN SAID
BE AS FOL.LOWS'
ADDITION TO THE
POLICY FORM l,lOULD
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EXhibit.
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