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HomeMy WebLinkAboutRS02-City Attorney . CI\-t OF SAN BERNARD':""O - REQULJT FOR COUNCIL AC'..toN From: Ralph H. Prince Subject: Central City Mall Encroachment Into Mall Area t..~l't: City Attorney Date: February 12, 1986 Synopsis of Previous Council action: 12/16/85 City Attorney was instructed to prepare an appropriate agreement with Central City Mall to encroach into Mall area consistent with Central City's request. Recommended motion: Adopt resolution. ~~~~- Signature Contact person: william Sabourin Phone: 5055 Supporting data attached: yes Ward: First FUNDING REQUIREMENTS: Amount: None Source: N/A Finance: ncil Notes: 75.0262 Agenda Item No. 1<5- -2 .~I~ OF SAN BERt'IARDncJO - REQUEST FOR COUrlCIL Ac110N STAFF REPORT The storefronts are now recessed about 28 inches from the front edge of the columns. This recessed area is a part of the publicly owned mall, which means the City is required to provide custodial services and heating and air-conditioning. Bringing the store fronts out to the front edge of the columns would be in accordance with current design standards for malls. Security would be improved by elimination of hiding places. The only undesirable aspect of this request would be a slight in- crease in congestion during the peak shopping seasons, due to shoppers stopping within the walkway area to observe displays in store windows. A copy of the letter from the Central City Company, dated 10-4-85, setting forth.this request. is attached for reference. We have reviewed the request, and concur that it would be advanta- geous for all concerned. Therefore, we recommend that the request be approved . Attach. Por-htJA./ 0+ l.;l-/(P-J-S- ACj.--p"rla..... I-k1'Jt ....,,,,,. -....,.. ~' CENTRAL CITY COMPANY 295 CENTRAL CITY MALL . SAN Br'-'\NARDINO, CA 92401 . :I'ELF.PHONE (714) 884-0106 ""(' ,-..:.: I j ..'..... , ./$)-"'-: ' , '.,/:'.~" . A":.:> .:...., 1;>..1 " "'.~ --.' . . '. '=0., '-/" '. '..:.' \:-1' '.~":_' ", . . ~-j" ~ 0 :..:.~.' . ......),. .i' A-.'/ (c:>-: I' -<(\1," , __""I~'...Y ~L.":';;" October 4, 1985 Hr. Roger Hardgrave Engineering Division 300 North "D" Street San Bernardino, CA 92418 RE: Storefront Encroachment Permit Central City Hall Dear Roger: Over the past several years I have had more than one discussion with Wayne Overstreet regarding the possibility of bringing the Hall storefronts out flush with the front of the columns that support the public portion of the Mall. During the course of our discussions, we determined that there were advantages to this concept to both the City and the merchants in the Mall that warranted further exploration. The concept is as follows: A. Over a period of time as leases renew and remodels occur,we will require that storefronts will be built flush with the front edge of the columns. The storefronts are now built to our property line, which is recessed 28" behind the columns. The signs on the storefronts will need to project 5" into the airspace in front of the columns. B. Advantages to the City are: 1. A reduction of maintenance in having to clean around all the columns, which is time consuming. . The cleaning could be done in a straight line, saving time. Also, there would be an estimated JO,743 sq. ft. less of floor area to clean, when all stores have been phased in, saving both time and materials. 2. Improved security by eliminating "hiding" places behind the columns. 3. The Mall will have a more modern state-of-the-art look as stores are placed into this program. The stores will be closer to customer traffic and visible for a much greater distance down the Mall. This will result in higher sales and increased sales tax revenue, and license fees and area tax revenue to the City. 4. An eventual reduction of 10,743 sq. ft. of liability exposure. . . '-.." . " Mr. Roger Hardgrave October 4, 1985 ,....,"' ....J Page 2 C. Advantages to the Mall are: 1. A more modern looking convenient place to shop, resulting in greater customer satisfaction. 2. Better visibility and merchandising area closer to the customer, resulting in improved sales and greater profit to the "merchant. I believe this is a win/win situation for all concerned. Central City Company would assume the maintenance responsibility and. the liability within the encroach- ment area and pass those on to each individual store through their lease. I would like to start the process necessary to acquire a blanket encroachment permit for all stores that abut the public areas of the Mall. We will acquire most of the upper level portion of the Woolworth store shortly after the end of the year and convert that area into 4 to 7 smaller stores. We also have 6 stores that have leases expiring at the end of this year. In a short period of time we could have a number of stores.in the program. Please advise me of any thoughts you may have and any further steps I should take. Thank you for your help. Yours truly, ~ Salvatore F. Catalano, CSM General Manager SFc:rlt '" 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMEKT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF 3 AN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE CITY OF SAN BERNARDINO, AND CENTRAL CITY COMPANY 4 AUTHORIZING AN ENCROACHMENT PERMIT FOR THE CONSTRUCTION OF TENANT STORES ON THE AGENCY MALL PARCEL AS SHOWN ON EXHIBIT "A" OF THE 5 RECIPROCAL EASEMENT AGREEMENT. SAID ENCROACHMENT SHALL NOT EXCEED 32" FROM LICENSEE'S PROPERTY LINES IN ANY INSTANCE, AND 6 SHALL BE ALLOWED ON BOTH THE FIRST AND SECOND LEVELS OF CENTRAL CITY MALL (CENTRAL CITY NO.1 PROJECT AREA). 7 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF 8 THE CITY OF SAN BERNARDINO AS FOLLOWS: 9 SECTION 1. The Chairman and Secretary of the Community 10 Development Commission of the City of San Bernardino are hereby 11 authorized and directed to execute for and on behalf of the -....- 12 Redevelopment Agency of the City of San Bernardino a License 13 Agreement between the Redevelopment Agency of the City of San 14 Bernardino, the City of San Bernardino and Central City Company 15 authorizing the encroachment of Central City Mall's tenant stores 16 upon the Agency Mall parcel shown on Exhibit "A" of the 17 Reciprocal Easement Agreement. Said License Agreement, a copy of 18 which is attached hereto, marked Exhibit "A", and incorporated 19 herein by reference shall permit an encroachment upon both the 20 upper and lower levels of the Agency Mall Parcel not to exceed 32 21 inches from the Central City Mall's property line on the mall, 22 which includes a maximum four inch sign projection. 23 Dated: 24 Approved as to form: 25 AGENCY COUNSEL '-~-- fBl /J/) za~ ByfAJ:& ~-;t/ 27 en R. r~ggs 1/ / / / / / 26 28 --- "'........... " 1 The foregoing resolution was duly adopted by the following 2 vote, to wit: 3 4 AYES: Members 5 NAYS: 6 7 ABSENT or ABSTAIN: 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 "-~,...- 22 23 24 25 26 - 27 28 1 2 3 4 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LICENSE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMPANY AUTHORIZING AN ENCROACHMENT PERMIT FOR THE CONSTRUCTION OF TENANT STORES ON THE AGENCY MALL PARCEL AS SHOWN ON EXHIBIT "A" OF THE RECIPROCAL EASEMENT 5 AGREEMENT. SAID ENCROACHMENT SHALL NOT EXCEED 32" FROM LICENSEE'S PROPERTY LINES IN ANY INSTANCE, AND SHALL BE ALLOWED 6 ON BOTH THE FIRST AND SECOND LEVELS OF CENTRAL CITY MALL. 7 8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 9 SECTION 1. The Mayor of the City of San Bernardino is 10 hereby authorized and directed to execute on behalf of said City 11 a License Agreement between the City of San Bernardino, the 12 Redevelopment Agency of the City of San Bernardino and Central 13 City Company authorizing the encroachment of Central City Mall's 14 tenant stores upon the Agency Mall parcel shown on Exhibit "A" of 15 the Reciprocal Easement Agreement. Said License Agreement, a 16 copy of which is attached hereto, marked Exhibit "A", and 17 incorporated herein by reference shall permit an encroachment 18 upon both the upper and lower levels of the Agency Mall parcel . 19 not to exceed 32 inches from the Central City Mall's property 20 line on the mall, which includes a maximum four inch sign 21 projection. 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 day of , 1986, by the following vote, to wit: / / / / / / / / / / ......... 'C..,,,#, , AYES: Council Members 1 2 3 NAYS: 4 ABSENT: 5 6 City Clerk 7 The foregoing resolution is hereby approved this 8 day of , 1986. 9 10 Mayor of the City of San Bernardino 11 Approved as to form: ~~~~ 13 City torney 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 - '-,.......' " 1 2 3 4 LICENSE AGREEMENT (Central City Company) THIS LICENSE AGREEMENT (License) is entered into this day of , 1986, by and between the CITY OF SAN 5 BERNARDINO, a municipal corporation, referred to as .City., THE 6 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a 7 local public agency, hereinafter referred to as .Agency., and 8 CENTRAL CITY COMPANY, hereinafter referred to as .Licensee., a 9 joint venture between CTC Company, a California partnership, and 10 Central City Associates, a California Joint Venture. 11 12 1. Recitals. (a) Licensee desires a license from City and Agency to 13 allow Licensee's tenants to construct their stores flush with the 14 edge of the columns that support the building constructed on the, 15 Agency Mall Parcel shown on Exhibit .A" of the Declaration of 16 Restrictions, Construction, Operation, Restriction and Easement 17 Agreement, (Agreement), dated and recorded December 24, 1970, in 18 book 7580, page 280 of the Official Records of the County of San 19 Bernardino, California, terms defined therein ha~ing the same 20 meaning when used herein. The tenant construction may encroach a 21 distance of 28 inches upon the Agency Mall parcel, on both the 22 upper and lower levels of the Enclosed Mall. Said encroachment 23 line depicted in Exhibit "A", attached hereto, shall be parallel ~ 24 to Licensee's existing property lines and shall not extend past 25 the columns supporting the building constructed on the Agency 26 Mall Parcel. However, Licensee's tenants signs shall be 27 permitted to project 4 inches beyond the encroachment line 28 established in this License. Tenant signs shall conform to the -1- License.doc EX"....... rii0H ^ H 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 criteria set forth in the Agreement. (b) The parties hereto acknowledge that the construction of tenant stores upon the encroachment area will occur over a period of time as new leases are executed and store remodeling occurs. The provisions of this License for actual possession of the encroachment area, maintenance, liability insurance and indemnification will become operable on a phased basis, and will become effective only as building permits are issued to Licensee's tenants to construct upon encroachment area and will be effective only as to the area actually constructed upon or occupied by Licensee or its tenant stores. (c) The City and Agency will benefit from this License by a gradual reduction of maintenance and accident liability in the encroachment area. Security in the public areas of the Enclosed, Mall will be improved and a greater amount of sales area.will be created resulting in increased sales tax, business license fees, area tax and utility tax revenue to the City. (d) In consideration of the granting of this License by the City and Agency, Licensee agrees to cooperate re~sonably with the City and Agency in determining the feasibility of developing and implementing a modernization plan for the Enclosed Mall that would include the addition of a fourth department store, the addition of a restaurant/food court at the east end of the Enclosed Mall in the outdoor Harris' Court area, and a refurbishment plan of the Enclosed Mall and the Agency Parking Parcel. (e) City desires to grant a license to Licensee for the encroachment described in paragraph lea) above to the extent such -2- License.doc "'-~_.# '- 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 - -- . / license may be given by City and Agency upon the conditions set forth in this License. 2. License Granted. City and Agency grant to Licensee a license to construct or cause to be constructed tenant stores upon the encroachment area as depicted on Exhibit -A-. The store structures shall not encroach more than 28 inches upon the Agency Mall Parcel except a 4 inch sign projection is permitted. This license is subject to any conditions imposed by the City Engineer or the Superintendent of the Building and Safety Department of City for the construction of stores upon the encroachment area. 3. Construction. Licensee agrees and agrees to require of its tenants that any construction within the encroachment area comply with all codes of the City of San Bernardino that are applicable to such construction and that drawings of the proposed construction be submitted to the Department of Building and Safety and building permits obtained prior to the commencement of any work. 4. Rules and Reaulations. Licensee shall observe and require its tenants to observe all rules, regulations, ordinances and enactments of City and all applicable statutes of the State of California in constructing and maintaining tenant stores within the encroachment area. 5. Liability Insurance. Licensee agrees to procure and maintain and/or cause its tenants to procure and maintain in force during the term of this License and any extension, at no cost to the City or Agency, public liability insurance in a minimum amount of at least -3- License.doc ~._'" 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 '{- $500,000 combined single limit, with responsible companies to protect against liability resulting from, arising out of, or in any way connected with, the construction of tenant stores into the encroachment area and the occupation or use of the encroachment area by such tenant stores. Licensee shall provide or cause to be provided to City's Risk Management Division a certificate of insurance and an additional insured endorsement which provides: (a) The City of San Bernardino is an additional insured. (b) The insurance company name, policy number, period of coverage and the amount of insurance. (c) That the City Clerk of the City of San Bernardino must be given notice in writing at least 30 days prior to cancellation, material change or refusal to renew the policy. (d) That Licensee or Licensee's tenants insurance ~ill be primary to any coverage the City of San Bernardino may have in effect. The requirements of this paragraph 5 shall become operative only as building permits are issued for the construction of . tenant stores upon the encroachment area, and then only as to the area actually constructed upon or occupied by the tenant store. 6. Title of PrODertv. Licensee acknowledges the title and paramount interest of City and Agency to the Agency Mall Parcel, and agrees that this License shall not be asserted to assail or resist City's or Agency's title or interest therein. 7. Indemnification. Licensee shall exercise its privileges under this License at -4- License.doc , 1 its own risk. Licensee shall indemnify and hold harmless City, 2 its elective and appointive boards, commissions, officers, agents 3 and employees from liability resulting from, arising out of, or 4 connected with, the construction upon the encroachment area, the 5 occupation or use of the encroachment area by Licensee's tenant 6 stores, both during and after the construction thereof, including 7 claims resulting from the conduct of Licensee, its employees, 8 invitees, guests or agents of Licensee, or Licensee's failure to 9 perform its promises in connection herewith. Licensee shall 10 defend, or cause its tenants to defend, City, its elective and 11 appointive boards, commissions, officers, agents and employees 12 from any suits or actions at law or in equity for damages caused, 13 or alleged to have been caused, by reason of any of Licensee's 14 operations under this license. ~,~- 15 8 . Waiver. 16 Waiver by a party of any breach of any provision of this 17 license does not waive any subsequent breach of the same or any 18 other provision. 19 9. Notice. 20 All notices relating to this license shall be in writing and 21 delivered in person or sent by certified mail, postage prepaid, 22 addressed as follows: 23 24 25 26 27 28 City of San Bernardino Attn: Real Property Division 300 North RDR Street San Bernardino, CA 92418 The Redevelopment Agency of the City of San Bernardino, California 300 North RDR Street San Bernardino, CA 92418 Central City Company 295 Central City Mall San Bernardino, CA 92401 -5- License.doc 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 10. Assianment. No assignment of this License by Licensee, its successors, legal representatives or assigns, or any subsequent assignee, except to a successor to Licensee as Developer under the Agreement, shall be binding upon City and Agency without the written consent of City and Agency in each instance except that Licensee may permit or require its tenants by lease or other agreement to construct and operate stores upon the encroachment area without further consent of City and/or Agency. City and Agency shall not unreasonably withhold their consent. 11. Amendment. This License may be amended or modified only by written agreement signed by both parties. 12. Term. This License shall run concurrent with the Agreement heretofore referred to, and during the term of any extension thereof. This License shall not be terminable except as the Agreement is terminated. 13. Maintenance. Licensee agrees to cause its tenants to maintain in good repair at all times any structure, windows, storefronts, entrances, etc., built upon the encroachment area. This maintenance responsibility shall commence upon the issuance of a building permit and shall apply only to the area for which the building permit was issued. 14. Free of Liens. Licensee shall payor cause its tenants to pay all costs of construction upon the encroachment area and shall keep the -6- License.doc 1 encroachment area free and clear of any and all claims arising 2 out of the performance of work or furnishing of materials for 3 said construction. 4 15. possessorv Interest. S Licensee acknowledges this License may create a possessory 6 interest subject to property taxation and that Licensee may be 7 subject to the payment of property taxes levied on such interest. 8 Licensee agrees to and shall hold harmless the City from any and 9 all liability for any such taxes. 10 16. Conflict with Central Citv Mall. 11 City and Agency do not warrant or make any representation 12 concerning its full control over the Agency Mall Parcel. City is 13 lessee of such property by lease from The Redevelopment Agency of 14 the City of San Bernardino, California; in addition, City and 15 Agency are signatories with numerous other parties to the 16 Agreement. The existence of each of these documents is called to 17 the attention of Licensee. Each is a public record, duly 18 recorded. In the event any other party to the Agreement claims 19 or has any rights to or control over or interest.in the portion 20 of the Agency Mall Parcel covered by this License, Licensee shall 21 hold City, its officers, agents and employees, and the 22 Redevelopment Agency of the City of San Bernardino and the 23 Community Development Commission, harmless from any claims, 24 demands, suits or judgments arising from Licensee or its tenants 25 encroachment upon the Agency Mall Parcel under this License. In 26 the event this License, or any portion thereof, should be 27 determined by a court of competent jurisdiction to be void or if 28 any of Licensee's rights be set aside, Licensee shall have no -7- License.doc \. 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 recourse against City and Agency, their officers, agents and employees. 17. Bindina Effect. This License binds and benefits the parties and their successors and assigns. IN WITNESS WHEREOF, the parties hereto have executed this License Agreement on the date first above written. ATTEST: CITY OF SAN BERNARDINO By City Clerk Mayor THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CALIFORNIA Approved as to form: By Chairman ce;f~y~~ By Secretary CENTRAL CITY COMPANY, a Joint Venture . Approved as to Legal Form and Adequacy: BY: eTC COMPANY, a California Partnership ~~ Agency Counsel By A General Partner BY: CENTRAL CITY ASSOCIATES, a Joint Venture By Joint Venturer " J])1I15 ,t. if ;; - .. .. z .. ~ w .. .. il .. il .. li .. ~ ;; .. :I ... ... .. ... ... II: ... ... ... , ~ ~"'Il _1... ~, _ ,:' -l -l I: L :> to- - U -l I: I: to- Z .... u 1 11 ]5 oW ~ .. i II: 0.1 ... ~r~. I I 1 . I. . ~ -.,.. .. ". . . ,-" , ,,".'~, r. I _ f r I . . , sa..m ,.IIHO!UNDH $1 - L-...!llHLS .), I I -I ~I ... ... .. ... ... II: ... a co ... .. z ;; - .. .. z .. ~ w .. .. z .. ~ .. .. x .. .. ~ ii .. .. .. OfJtH1 - -l -l I: 1: :> to- - U -l I: I: to- Z .... u J n i6 . ;: I II: 0.1 ... ~ t- di :L, ><1 WI ~.. ~ 'I' ' ~ .r..,. ". " saalm AII1HOglNOH . CI~ OF SAN BERNARD~O - REQUbtr FOR COUNCIL ACtiON F-~: Ralph H. Prince Su~~: Central City Mall Encroachment into Mall Area Dept: City Attorney Date: February 12, 1986 Synopsis of Previous Council ~ion: . 12/16/85 City Attorney was instructed to prepare an appropriate agreement with Central City Mall to encroach into Mall area consistent with Central City's request. Recommended motion: ( Adopt resolution. /Z~ ~_~:: Signature Contact penon: William Sabourin Phone: 5055 Supporting data attached: les Ward: First FUNDING REQUIREMENTS: Amount: None Source: N/A Finance: lcil Notes: 75--0262 Agenda Item No Q 5 - ..2 . . . . . . .crt? OF SAN BERf'IARDhdO - REQU~T FOR COU~.CIL ACtiON STAFF REPORT The storefronts are now recessed about 28 inches from the front edge of the columns. This recessed area is a part of the publicly owned mall, which means the City is required to provide custodial services and heating and air-conditioning. Bringing the store fronts out to the front edge of the columns . would be in accordance with current design standards for malls. Security would be improved by elimination of hiding places. The only undesirable aspect of this request would be a slight in- crease in congestion during the peak shopping seasons, due to shoppers stopping within the walkway area to observe displays in store windows. A copy of the letter from the Central City Company, dated 10-4-85, setting forth.this request, is attached for reference. We have reviewed the request, and concur that it would be advanta- geous for all concerned. Therefore, we recommend that the request be approved . ( Attach. . . por~C)A.I 0+ /.;L-/b-,f.s- j)~'P'?rlcc. I~4t . ....."" , CENTRAL CITY COMPANY 295 CENTRAL OTY MALL . . , SAN BF.RNARDINO, CA 92401 " ~..F.~HONE (114) lI84-Ol06 4<( \";1.1 !,"', ... ~ . 'I' ',I. ' .. , .' ~)y ....-" ' "~::-.r ' " l"'_l ':.....\ {t:.1 ;- ". .,-;\ 1-1 ". '. '..:.. \~. <.,,' . ,Xi.' " ..' ''i . 'c, r _~,(\~" - _....'1,-.~',.y... .:::::L-: ;;.. October 4, 1985 Mr. Roger Hardgrave Engineering Division 300 North .0" Street San Bernardino, CA 92418 RE: Storefront Encroachment Permit Central City Mall Dear Roger: Over the past several years I have had more than one discussion with Wayne Overstreet regarding the possibility of bringing the Mall storefronts out flush with the front of the columns that support the public portion of the Mall. During the course of our discussions, we determined that there were advantages to this concept to both the City and the merchants in the Mall that warranted further exploration. The concept is as follows: A. ' Over a period of time as leases renew and remodels occur, we will require that storefronts will be built flush with the front edge of the columns. The storefronts are now bunt to our property line, which is recessed 28" behind the columns. The signs on the storefronts will need to project 5" into the airspace in front of the columns. B. Advantages to the City are: 1. A reduction of maintenance in having to clean around all the columns, which is time consuming. ' The cleaning could be done in a straight line, saving time. Also, there would be an estimated 10,743 sq; ft. less of floor area to clean, when all stores have been phased in, saving both time and materials. 2. Improved security by eliminating .hiding" places behind the columns. 3. The Mall will have a more modern state-of-the-art look as stores are placed into this program. The stores will be closer to customer traffic and visible for a much greater distance down the Mall. This will result in higher sales and increased sales tax revenue, and license fees and area tax revenue to the City. 4. An eventual reduction of 10,743 sq. ft. of liability exposure. ,. . " " / Hr. Roger Hardgrave October 4, 1985 r""l.." ~/J Page 2 C. Advantages to the Mall are: 1. A more modern looking convenient place to shop, resulting in greater: customer satisfaction. 2. Better visibility and merchandising area closer to the customer, resulting in improved sales and greater profit to the 'merchant. I believe this is a win/win situation for 'all concerned. Central City Company would assume the maintenance responsibility and,the liability within the encroach- ment area and pass those on to each individual store through their lease. I would like to start the process necessary to acquire a blanket encroachment permit for all stores that abut the public areas of the Mall. We will acquire most of the upper level portion of the Woolworth store shortly after the end of the year and convert that area into 4 to 7 smaller stores. We also have 6 stores that have leases expiring at the end of this year. In a short period of time we could have a number of stores ,in the program. ,,' Please advise me of any thoughts you may have and any further steps I should take. Thank you for your help. Yours truly, ~ Salvatore F. Catalano, CSM General Manager SFC:rlt """"" 1 RESOLUTION NO. 2 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 9 SECTION 1. The Chairman and Secretary of the Community 10 Development Commission of the City of San Bernardino are hereby 11 authorized and directed to execute for and on behalf of the 12 Redevelopment Agency of the City of San Bernardino a License 13 Agreement between the Redevelopment Agency of the City of San r- 14 Bernardino, the City of San Bernardino and Central City Company 15 authorizing the encroachment of Central City Mall's tenant stores 16 upon the Agency Mall parcel shown on Exhibit "A" of the 17 Reciprocal Easement Agreement. Said License Agreement, a copy of 18 which is attached hereto, marked Exhibit "A", and incorporated 19 herein by reference shall permit an encroachment upon both the 20 upper and lower levels of the Agency Mall Parcel not to exceed 32 21 inches from the Central City Mall's property line on the mall, 22 which includes a maximum four inch sign projection. 23 Dated: 24 Approved as to form: 25 AGENCY COUNSEL 26 ~t.44 za~ By a-,'.~ ~ 27 en. r~ggs 2811111 , 1 2 3 4 5 6 7 8 9 10 11 12 13 L 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , vote, to wit: The foregoing resolution was duly adopted by the following AYES: NAYS: ABSENT or ABSTAIN: Members , 2 1 2 3 4 LICENSE AGREEMENT (Central City Company) THIS LICENSE AGREEMENT (License) is entered into this day of , , " , by and between the CITY OF 5 SAN BERNARDINO, a municipal corporation, referred to as .City., 6 THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, 7 CALIFORNIA, a local public agency, hereinafter referred to as 8 .Agency., and CENTRAL CITY COMPANY, hereinafter referred to as 9 .Licensee., a joint venture between CTC Company, a California 10 Partnership, and Central City Associates, a California Joint 11 Venture. 12 13 1. R8cit:alR. '.-,- 14 permit Licensee's tenants to construct their stores flush with (a) Licensee desires a license from City and Agency to 15 the edge of the columns that support the building constructed on 16 the Agency Mall Parcel shown on Exhibit .A. of the Declaration of 17 Restrictions, Construction, Operation, Restriction and Easement 18 Agreement, (Agreement), dated and recorded December 24, 1970, in 19 Book 7580, Page 280 of the Official Records of the County of San 20 Bernardino, California. All terms defined therein shall have the 21 same meaning when used herein. The tenant construction may ,'......... 22 23 24 25 26 27 28 encroach a distance of 28 inches upon the Agency Mall Parcel, on both the upper and lower levels of the Enclosed Mall. Said, encroachment line depicted in Exhibit .A., attached hereto, shall be parallel to Licensee's existing property lines and shall not extend past the columns supporting the building 'constructed on , . the Agency Mall Parcel. In addition, Licensee's tenant signs shall be permitted to project 4 inches beyond the encroachment Q.ll"8'J~~ &v/secl 1 "~,,..;...- 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 \",.~",~. -.".,---- line established in this License. Tenant signs shall conform to the criteria set forth in the Agreement. (b) The parties hereto acknowledge that the construction of , J tenant stores upon the encroachment area will occur over a period .' of time as new leases are executed and store ~remodeling occurs. The provisions of the License for actual possession of the encroachment area, maintenance, liability insurance and indemnification will become operable on a phased basis, and will become effective only as building permits are issued to Licensee's tenants to construct upon encroachment area and will be effective only as to the area actually constructed upon or occupied by Licensee or its tenant stores. (c) The City and Agency will benefit from this License by a gradual reduction of maintenance and accident liability in the encroachment area. Security in the public areas of the Enclosed Mall will be improved and a greater amount of sales area will be created resulting in increased sales tax, business license fees, area tax and utility tax revenue to the City. (d) City desires to grant a license to Licensee for the encroachment described in paragraph lea) above to the extent such license may be given by the City and Agency upon the conditions set forth in the License. 2. Undertakings by Licensee. (a) City and Agency acknowledge that over the past several years, Licensee has provided various benefits to the public areas " of the Mall, which have eased the burdens imposed upon City and Agency. City and Agency desire that many of these benefits will continue to De ptov1ded by or through Licensee. Benefits 2 .~'>' 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 ( --- "'- provided in the recent past by or through Licensee include, but are not limited to, (I) eLLOILS by Licensee to have CCMA, Inc., the former Central City Mall Merchants Association, institute and .. pay for, as a voluntary contribution, a parkthg control program to provide better security in the customer paikingaI~a~'o~ ~u~ ~all at an annual cost to CCMA, Inc., of approximately $60,000, with approximately $200,000 so expended to date, (2) construction of a security office and Information Center in the center of the Mall at a cost of approximately $35,000, (3) installation and maintenance of a closed circuit security TV system to monitor the Mall's public areas, with installation costs of approximately $50,000 and annual maintenance costs of approximately $4,000, (4) contribution of not less than $12,000 annually toward a portion of the ongoing costs of Mall security forces, (5) furnishing of Security and Information Booth secretarial service and support staff at an annual cost of more than $18,000, (6) decoration of the public areas of the Mall with more than $100,000 o.f Christmas decorations and more than $35,000 of other seasonal decorations without claiming any offset against area tax, (7) installation of hanging plant materials in the Harris' and Ward Court areas to beautify the Mall at a cost of approximately $23,000, (8) installation of flowered planters and continuous flower replacement for such planters at the Mall's main entrance at Second Street to assist in beautifying the downtown area, with an installation cost of approximately $2,000 and annual flower replacement costs of approximately $1,500, and (9) furnishing of reflective white ceiling paint for dark areas of the three-level parking structure at a cost of approximately $5,000. 3 1 2 3 4 5 6 7 8 9 10 11 12 13 ( 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) Licensee, as partial consideration for the grant of this License, agrees to continue its efforts toward beautification, improved safety services, an~ ~roviding of ...... support services on an ongoing basis, and agrees , that it will (1) :.f ,;, :'. ._ use its best efforts to assure, to the extent 'that it is.able to do so, that CCMA. Inc., will continue to provide a parking program, (2) maintain the closed circuit TV system as long as it exists and is technologically current, (3) continue its contributions to the Mall security costs at no less than its present level, (4) continue to provide secretarial service and support staff for the Security and Information Booth; (5) continue to provide decorations for the public areas of the Mall during the holiday season, as well as other seasonal decorations, without claiming an offset against area tax; (6) maintain as necessary the hanging plant materials in the Harris' and Ward Court areas, and continue to look for further opportunities to beautify the public areas of the Mall; and (7) continue to assist City's Director of Public Buildings with materials and supplies, when and as available, for improvements within the three-level parking structure. 3. Consideration. (a) In consideration of the granting of this License by the City and Agency, Licensee agrees to cooperate reasonably with the City and Agency in determining the feasibility of developing and implementing a modernization plan for the Enclosed Mall that would include the addition of an upscale major department store as a fourth department store, the addition of a restaurant/food court at the east end of the Enclosed Mall in the outdoor Harris' 4 " 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 ... Court area, and a refurbishment plan of the Enclosed Mall and the Agency Parking Parcel. (b) The parties recognize that it would be to 'the mutual advantage of the parties to attract a depart~~nt store with " :--; upscale merchandising policies, hereinafter ieferred to as .Upscale Major., as a fourth major department store. Licensee agrees to actively pursue the acquisition of such an Upscale Major, recognizing, however, that any such addition would require consent of all parties to the Agreement. If Licensee, through its own efforts or through the combined efforts of City, Agency and Licensee, succeeds in locating a potential Upscale Major willing to locate within the Enclosed Mall, or any extension or enlargement thereto, Licensee agrees to use its best efforts to obtain approval of all other parties to the Agreement and their respective Lenders. Any such acquisition effort may be suspended if the then operating Upscale Majors in the Greater Los Angeles marketing area are not interested in locating in the City of San Bernardino. 4. License Granted. City and Agency grant to Licensee a license to construct or cause to be constructed tenant stores upon the encroachment area as depicted on Exhibit .A". The store structures shall not encroach more than 28 inches upon the Agency Mall Parcel except a four-inch sign projection is permitted. This license is subject to any conditions imposed by the City Engineer or the Superintendent of the building and Safety Department of the City for the construction of stores upon the encroachment area. 5. Construction. 5 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 -- / Licensee agrees and agrees to require of its tenants that any construction within the encroachment area comply with all codes of the City of San Bernardino that are applicable to such construction and that drawings of the proposed construction be submitted to the Department of Building and Safety and bailding permits obtained prior to the commencement of any work. 6. Rules and Regulat.ions. Licensee shall observe and require its tenants to observe all rules, regulations, ordinances and enactments of City and all applicable statutes of the State of California in constructing and maintaining tenant stores within the encroachment area. 7. Liability Insurance. Licensee agrees to procure and maintain and/or cause its tenants to procure and maintain in force during the term of this License and any extension, at no cost to the City or Agency, public liability insurance in a minimum amount of at least $500,000 combined single limit, with responsible companies to protect against liability resulting from, arising out of, or in any way connected with, the construction of tenant stores into the encroachment area and the occupation or use of the encroachment area and the occupation or use of the encroachment area by such tenant stores. Licensee shall provide or cause to be provided to City's Risk Management Division a certificate of insurance and an additional insured endorsement which provides: (a) The City of San Bernardino is an additional insured. (b) The insurance company name, policy number, period of coverage and the amount of insurance. 6 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 " - (c) That tbe City Clerk of the City of San Bernardino must be given notice in writing at least 30 days prior to cancellation, material change or refusal to renew the policy. (d) Tbat Licensee or Licensee's tenants, insurance will be primary to any coverage tbe City of San Bernardino may blve in effect. The requirements of this paragraph 5 shall become operative only as building permits are issued for the construction of tenant stores upon the encroachment area, and then only as to the area actually constructed upon or occupied by the tenant store. 8. Tit.le of Property. Licensee acknowledges the title and paramount interest of City and Agency to the Agency Mall Parcel, and agrees that this License shall not be asserted to assail or resist City's or Agency's title or interest therein. 9. Indemnification. Licensee shall exercise its privileges under this License at its own risk. Licensee shall indemnify and hold barmless City, its elective and appointive boards, commissions, officers,'agents and employees from liability resulting from, arising out of, or connected with, the construction upon the encroachment area, the occupation or use of the encroachment area by Licensee's tenant stores, both during and after the construction thereof, including claims resulting from the conduct of Licensee, or Licensee's failure to perform its promises in connection herewith. Licensee shall defend, or cause its tenants to defend, City, its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damages caused, or 7 ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 (' 15 16 17 18 19 20 21 22 ~' 24 25 26 ~ 28 , alleged to have been caused, by reason of any of Licensee's operations under this license. 10. Waiver. Waiver by a party of any breach of any pr9vision of this license does not waive any subsequent breAch 'of the same'or any other provision. 11. Not.icA. All notices relating to this license shall be in writing and delivered in person or sent by certified mail, postage prepaid, addressed as follows: City of San Bernardino Attn: Real Property Division 300 North .D. Street San Bernardino, CA 92418 The Redevelopment Agency of the City of San Bernardino, California 300 North .D. Street San Bernardino, CA 92418 Central City Company 295 Central City Mall San Bernardino, CA 92401 12. AssignmAnt.. No assignment of this License by Licensee, its successors, legal representatives or assigns, or any subsequent assignee, except to a successor to Licensee as Developer under the Agreement, shall be binding upon City and Agency without the written consent of City and Agency in each instance except that Licensee may permit or require its tenants by lease or other agreement to construct and operate stores upon the encroachment area without further consent of City and/or Agency. City and ;. Agency shall not unreasonably withhold their consent. 13. AmAndment.. This License may be amended or modified only-by written agreement signed by both parties. 8 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 14. fUJI. This License shall run concurrent with the Agreement heretofore referred to, and during the term o~ any extension thereof. This License shall not be terminable except as the Agreement is terminated. 'i': ,. .~ . 15. Maint.enance. Licensee agrees to cause its tenants to maintain in good repair at all times any structure, windows, storefronts, entrances, etc., built upon the encroachment area. This maintenance responsibility shall commence upon the issuance of a building permit and shall apply only to the area for which the building permit was issued. 16. Pree of Liens. Licensee shall payor cause its tenants to pay all costs of construction upon the encroachment area and shall keep the encroachment area free and clear of any and all claims arising out of the performance of work or furnishing of materials for said construction. 17. Possessory Interest. Licensee acknowledges this License may create a possessory interest subject to property taxation and that Licensee may be SUbject to the payment of property taxes levied on such interest. Licensee agrees to and shall hold harmless the City from any and all liability for any such taxes. 18. Conflict. wit.h Central Cit.y Mall. City and Agency do not warrant or make any representation .... . concerning its full control over the Agency Mall Parcel. City is lessee of such property by lease from the Redevelopment Agency of 9 - 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 r ,-, > the City of San Bernardino, California; in addition, City and Agency are signatories with numerous other parties to the Agreement. The existence of each of these documents is called to the attention of Licensee. Each is a public:record, duly , .~ recorded. In the event any other party to the Agreement:claims or has any rights to or control over or interest in the portion of the Agency Mall Parcel covered by this License, Licensee shall hold City, its officers, agents and employees, and the Redevelopment Agency of the City of San Bernardino and the Community Development Commission, harmless from any claims, demands, suits or judgment arising from Licensee or its tenants encroachment upon the Agency Mall Parcel under this License. In the event this License, or any portion thereof, should be determined by a court of competent jurisdiction to be void of if any of Licensee's rights be set aside, Licensee shall have no recourse against City and Agency, their officers, agents and employees. 19. Bindinq Effect. This License binds and benefits the parties and their successors and assigns. I / I I I I I I 10 ., , 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 , , IN WITNESS WHEREOF, the parties hereto have executed this License Agreement on the date first above written. ATTEST: CITY OF SAN BERNARDINO 1" .,1 ' ..", By Mayor City Clerk Approved as to form: THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIPORNIA By Chairman City Attorney By Secretary CENTRAL CITY COMPANY, a Joint Venture Approved as to legal form and adequacy: BY: CTC COMPANY, a California Partnership By Agency Counsel A General Partner BY: CENTRAL CITY ASSOCIATES, a Joint Venture By Joint Venturer 11 " . JJJlI1S .J._ $ , f" I II .. i I 1-P1F.J. ", .' I I , . I $1 \"'"'''' I II .. i I I I i ~ ~ I i I. : I.,' ~ - - ,~... II -- .. .. ... III D ... l:I .. . '.. ... I .. , '" .... .. : ... J ... ..,j ... a: '1 a: 1: Z = 13 = - .. - ~ ~ ... ... a: I a: i ~ !i '-w .. w oJ ~ ; ~ ; - ~ ~ :.c t- di ~I -, . . FJtB' , ~ 'I I , .1:" ,. .. r. ..... AIJI.I1f.... I1NIID AI_SINGH 1 RESOLUTION NO. Pi..$f 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LICENSE AGREEMENT BETWEEN THE CITY OF SAN 3 BERNARDINO, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMPANY AUTHORIZING AN ENCROACHMENT 4 PERMIT FOR THE CONSTRUCTION OF TENANT STORES ON THE AGENCY MALL PARCEL AS SHOWN ON EXHIBIT "A" OF THE RECIPROCAL EASEMENT 5 AGREEMENT. SAID ENCROACHMENT SHALL NOT EXCEED 32" FROM LICENSEE'S PROPERTY LINES IN ANY INSTANCE, AND SHALL BE ALLOWED 6 ON BOTH THE FIRST AND SECOND LEVELS OF CENTRAL CITY MALL. 7 8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 9 SECTION 1. The Mayor of the City of San Bernardino is 10 hereby authorized and directed to execute on behalf of said City 11 a License Agreement between the City of San Bernardino, the 12 Redevelopment Agency of the City of San Bernardino and Central 13 City Company authorizing the encroachment of Central City Mall's 14 tenant stores upon the Agency Mall parcel shown on Exhibit "A" of 15 the Reciprocal Easement Agreement. Said License Agreement, a 16 copy of which is attached hereto, marked Exhibit "A", and 17 incorporated herein by reference shall permit an encroachment 18 upon both the upper and lower levels of the Agency Mall parcel 19 not to exceed 32 inches from the Central City Mall's property 20 line on the mall, which includes a maximum four inch sign 21 projection. 22 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, 25 held on the day of , 1986, by the 26 following vote, to wit: 27 I I I I I 28 I I I I I 1 2 3 NAYS: AYES: Council Members 4 ABSENT: 5 6 City Clerk 7 The foregoing resolution is hereby approved this 8 day of , 1986. 9 10 Mayor of the City of San Bernardino 11 Approved as to form: ./7~ ,,/~ C> r:;/(P-t. ifv' ~/ 13 City A torney 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 1 LICENSE AGREEMENT 2 (Central City Company) 3 THIS LICENSE AGREEMENT (License) is entered into this 4 day of , 1986, by and between the CITY OF SAN 5 BERNARDINO, a municipal corporation, referred to as .City., THE 6 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a 7 local public agency, hereinafter referred to as "Agency", and 8 CENTRAL CITY COMPANY, hereinafter referred to as "Licensee., a 9 joint venture between CTC Company, a California partnership, and 10 Central City Associates, a California Joint Venture. 11 1. Recitals. 12 (a) Licensee desires a license from City and Agency to 13 allow Licensee's tenants to construct their stores flush with the 14 edge of the columns that support the building constructed on the 15 Agency Mall Parcel shown on Exhibit "A" of the Declaration of 16 Restrictions, Construction, Operation, Restriction and Easement 17 Agreement, (Agreement), dated and recorded December 24,1970, in 18 book 7580, page 280 of the Official Records of the County of San 19 Bernardino, California, terms defined therein having the same 20 meaning when used herein. The tenant construction may encroach a 21 distance of 28 inches upon the Agency Mall parcel, on both the 22 upper and lower levels of the Enclosed Mall. Said encroachment 23 line depicted in Exhibit "A", attached hereto, shall be parallel 24 to Licensee's existing property lines and shall not extend past 25 the columns supporting the building constructed on the Agency 26 Mall Parcel. However, Licensee's tenants signs shall be 27 permitted to project 4 inches beyond the encroachment line 28 established in this License. Tenant signs shall conform to the -1- License.doc EXHIBiT ,~ 1 criteria set forth in the Agreement. 2 (b) The parties hereto acknowledge that the construction of 3 tenant stores upon the encroachment area will occur over a period 4 of time as new leases are executed and store remodeling occurs. 5 The provisions of this License for actual possession of the 6 encroachment area, maintenance, liability insurance and 7 indemnification will become operable on a phased basis, and will 8 become effective only as building permits are issued to 9 Licensee's tenants to construct upon encroachment area and will 10 be effective only as to the area actually constructed upon or 11 occupied by Licensee or its tenant stores. 12 (c) The City and Agency will benefit from this License by a 13 gradual reduction of maintenance and accident liability in the 14 encroachment area. Security in the public areas of the Enclosed 15 Mall will be improved and a greater amount of sales area will be 16 created resulting in increased sales tax, business license fees, 17 area tax and utility tax revenue to the City. 18 (d) In consideration of the granting of this License by the 19 City and Agency, Licensee agrees to cooperate reasonably with the 20 City and Agency in determining the feasibility of developing and 21 implementing a modernization plan for the Enclosed Mall that 22 would include the addition of a fourth department store, the 23 addition of a restaurant/food court at the east end of the 24 Enclosed Mall in the outdoor Harris' Court area, and a 25 refurbishment plan of the Enclosed Mall and the Agency Parking 26 Parcel. 27 (e) City desires to grant a license to Licensee for the 28 encroachment described in paragraph lea) above to the extent such -2- License.doc 1 license may be given by City and Agency upon the conditions set 2 forth in this License. 3 2. License Granted. 4 City and Agency grant to Licensee a license to construct or 5 cause to be constructed tenant stores upon the encroachment area 6 as depicted on Exhibit "A". The store structures shall not 7 encroach more than 28 inches upon the Agency Mall Parcel except a 8 4 inch sign projection is permitted. This license is subject to 9 any conditions imposed by the City Engineer or the Superintendent 10 of the Building and Safety Department of City for the 11 construction of stores upon the encroachment area. 12 3. Construction. 13 Licensee agrees and agrees to require of its tenants that 14 any construction within the encroachment area comply with all 15 codes of the City of San Bernardino that are applicable to such 16 construction and that drawings of the proposed construction be 17 submitted to the Department of Building and Safety and building 18 permits obtained prior to the commencement of any work. 19 4. Rules and ReQulations. 20 Licensee shall observe and require its tenants to observe 21 all rules, regulations, ordinances and enactments of City and all 22 applicable statutes of the State of California in constructing 23 and maintaining tenant stores within the encroachment area. 24 5. Liabilitv Insurance. 25 Licensee agrees to procure and maintain and/or cause its 26 tenants to procure and maintain in force during the term of this 27 License and any extension, at no cost to the City or Agency, 28 public liability insurance in a minimum amount of at least -3- License.doc 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 $500,000 combined single limit, with responsible companies to protect against liability resulting from, arising out of, or in any way connected with, the construction of tenant stores into the encroachment area and the occupation or use of the encroachment area by such tenant stores. Licensee shall provide or cause to be provided to City's Risk Management Division a certificate of insurance and an additional insured endorsement which provides: (a) The City of San Bernardino is an additional insured. (b) The insurance company name, policy number, period of coverage and the amount of insurance. (c) That the City Clerk of the City of San Bernardino must be given notice in writing at least 30 days prior to cancellation, material change or refusal to renew the policy. (d) That Licensee or Licensee's tenants insurance will be primary to any coverage the City of San Bernardino may have in effect. The requirements of this paragraph 5 shall become operative only as building permits are issued for the construction of tenant stores upon the encroachment area, and then only as to the area actually constructed upon or occupied by the tenant store. 6. Title of Propertv. Licensee acknowledges the title and paramount interest of City and Agency to the Agency Mall Parcel, and agrees that this License shall not be asserted to assail or resist City's or Agency's title or interest therein. 7. Indemnification. Licensee shall exercise its privileges under this License at -4- License.doc 1 its own risk. Licensee shall indemnify and hold harmless City, 2 its elective and appointive boards, commissions, officers, agents 3 and employees from liability reSUlting from, arising out of, or 4 connected with, the construction upon the encroachment area, the 5 occupation or use of the encroachment area by Licensee's tenant 6 stores, both during and after the construction thereof, including 7 claims resulting from the conduct of Licensee, its employees, 8 invitees, guests or agents of Licensee, or Licensee's failure to 9 perform its promises in connection herewith. Licensee shall 10 defend, or cause its tenants to defend, city, its elective and 11 appointive boards, commissions, officers, agents and employees 12 from any suits or actions at law or in equity for damages caused, 13 or alleged to have been caused, by reason of any of Licensee's 14 operations under this license. 15 8. waiver. 16 Waiver by a party of any breach of any provision of this 17 license does not waive any subsequent breach of the same or any 18 other provision. 19 9. Notice. 20 All notices relating to this license shall be in writing and 21 delivered in person or sent by certified mail, postage prepaid, 22 addressed as follows: 23 24 25 26 27 28 City of San Bernardino Attn: Real Property Division 300 North "D" Street San Bernardino, CA 92418 The Redevelopment Agency of the City of San Bernardino, California 300 North "D" Street San Bernardino, CA 92418 -5- License.doc Central City Company 295 Central City Mall San Bernardino, CA 92401 1 10. Assianment. 2 No assignment of this License by Licensee, its successors, 3 legal representatives or assigns, or any subsequent assignee, 4 except to a successor to Licensee as Developer under the 5 Agreement, shall be binding upon City and Agency without the 6 written consent of city and Agency in each instance except that 7 Licensee may permit or require its tenants by lease or other 8 agreement to construct and operate stores upon the encroachment 9 area without further consent of City and/or Agency. City and 10 Agency shall not unreasonably withhold their consent. 11 11. Amendment. 12 This License may be amended or modified only by written 13 agreement signed by both parties. 14 12. Term. 15 This License shall run concurrent with the Agreement 16 heretofore referred to, and during the term of any extension 17 thereof. This License shall not be terminable except as the 18 Agreement is terminated. 19 13. Maintenance. 20 Licensee agrees to cause its tenants to maintain in good 21 repair at all times any structure, windows, storefronts, 22 entrances, etc., built upon the encroachment area. This 23 maintenance responsibility shall commence upon the issuance of a 24 building permit and shall apply only to the area for which the 25 building permit was issued. 26 14. Free of Liens. 27 Licensee shall payor cause its tenants to pay all costs of 28 construction upon the encroachment area and shall keep the -6- License.doc 1 encroachment area free and clear of any and all claims arising 2 out of the performance of work or furnishing of materials for 3 said construction. 4 15. Possessory Interest. 5 Licensee acknowledges this License may create a possessory 6 interest subject to property taxation and that Licensee may be 7 subject to the payment of property taxes levied on such interest. 8 Licensee agrees to and shall hold harmless the City from any and 9 all liability for any such taxes. 10 16. Conflict with Central Citv Mall. 11 City and Agency do not warrant or make any representation 12 concerning its full control over the Agency Mall Parcel. City is 13 lessee of such property by lease from The Redevelopment Agency of 14 the City of San Bernardino, California; in addition, City and 15 Agency are signatories with numerous other parties to the 16 Agreement. The existence of each of these documents is called to 17 the attention of Licensee. Each is a public record, duly 18 recorded. In the event any other party to the Agreement claims 19 or has any rights to or control over or interest in the portion 20 of the Agency Mall Parcel covered by this License, Licensee shall 21 hold City, its officers, agents and employees, and the 22 Redevelopment Agency of the City of San Bernardino and the 23 Community Development Commission, harmless from any claims, 24 demands, suits or judgments arising from Licensee or its tenants 25 encroachment upon the Agency Mall Parcel under this License. In 26 the event this License, or any portion thereof, should be 27 determined by a court of competent jurisdiction to be void or if 28 any of Licensee's rights be set aside, Licensee shall have no -7- License.doc 1 recourse against City and Agency, their officers, agents and 2 employees. 3 17. BindinQ Effect. 4 This License binds and benefits the parties and their 5 successors and assigns. 8 9 10 11 12 13 THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CALIFORNIA 6 IN WITNESS WHEREOF, the parties hereto have executed this 7 License Agreement on the date first above written. ATTEST: CITY OF SAN BERNARDINO By City Clerk Mayor 14 Approved as to form: 15 16 17 18 19 20 21 22 23 24 25 26 27 28 By Chairman ~~~~ City At orney By Secretary CENTRAL CITY COMPANY, a Joint Venture Approved as to Legal Form and Adequacy: BY: CTC COMPANY, a California Partnership ~~ Agency Counsel By A General Partner BY I CENTRAL CITY ASSOCIATES, a Joint Venture By Joint Venturer