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HomeMy WebLinkAboutR06-Redevelopment Agency ~. "(!i4 MEMORANDUM No. 118 Jan. 1984 REDEVELOPMffiNTAGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA DATE December 18, 1986 TO Community Development Commission FROM Glenda Saul, Executive Director SUBJECT SIMA DEVELOPMENT - RDA AGENDA ITEM #6 Attached is a substitute agreement that should be used for Item #6. At a final negotiating meeting with the developer, a number of technical changes were made which will be discussed by Agency Counsel. These changes were not substantive except that the maximum amount on Page 33 and 34 was raised $15,244 to allow for a storm drain improvement that is going to be required in the realignment of "G" Street which had been missed by the engineers. The estimated cost is not changed because other savings may offset this increase. /~~ Atj- Gl enda Saul Executive Director GS:JH:s:1922G cc: Chron File j2-rP ;( 5-3 ..:- = Recording Requested by: REDEVELOPMENT AGENCY When Recorded Mail to: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North "D" Street, Rm. 320 San Bernardino, CA 92418 DISPOSITION AND JOINT DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AND SIMA PARTNERSHIP NUMBER ONE A CALIFORNIA PARTNERSHIP 1 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DISPOSITION AND JOINT DEVELOPMENT AGREEMENT (CENTRAL CITY SOUTH PROJECT AREA) THIS AGREEMENT is made and entered into this day of , 19___, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a public body corporate and politic, hereinafter called the "Agency", and SIMA PARTNERSHIP NUMBER ONE, a California partnership, together with its permitted successors and assigns, hereinafter called the "Redeveloper". RECITALS This agreement is made with reference to the following facts: (a) In furtherance of the objectives of the Community Redevelopment Law of the State of California (Health and Safety Code of the State of California, Sections 33000 et seq.), the Agency has undertaken a program for redevelopment of blighted areas in the City of San Bernardino, California, and, in this connection, pursuant to Ordinance No. 3572 of the City of San Bernardino, California, adopted May 3, 1976, the City and the Agency have approved and adopted the "Redevelopment Plan". Pursuant to the provisions of the Redevelopment Plan, the Agency and the City have undertaken and are now carrying out the responsibility for a redevelopment project, designated as the Central City South Redevelopment Project, for a designated area (being 2 hereinafter called the "Project Area"). The boundaries of the Project Area are described in the Redevelopment Plan which, by this reference, is incorporated herein and made a part hereof. (b) That certain parcel of real property more particularly described in Exhibit "A", attached hereto and by this reference made a part hereof (hereinafter called the "Property"), is located within the Project Area, and under said Redevelopment Plan may be developed for private use. (c) The Redeveloper had made an offer to purchase the Property and to redevelop it, together with additional land already owned by the Redeveloper, in accordance with the uses specified in the Redevelopment Plan, by constructing a commercial/industrial development ("Project"). (d) The Agency has considered all pertinent data and analysis, including the reports of its consultants and the reports and recommendations of its staff, and the Agency believes that the redevelopment of the Property pursuant to the provisions of this agreement is in the best interests of the City and employment growth, and is in accord with the public purposes and provisions of applicable laws and regulations under which the Project Area is governed. (e) Pursuant to the provisions of California Health and Safety Code Section 33433, the Agency gave notice and held a public hearing on , at which time the form of the agreement for disposition and development was available for public examination. By Resolution No. , on , 19___, sale of the Property provided for 3 herein to Redeveloper was authorized, and the Agency approved this agreement and determined that the method of disposition provided for in this agreement is the most effective method for accomplishing the objectives of the Agency. (f) On the basis of the foregoing, and the undertakings of the Agency and the Redeveloper under this agreement, the Agency desires to sell and the Redeveloper desires to purchase said Property in accordance with the provisions of the Redevelopment Plan and this Agreement. NOW, THEREFORE, IT IS AGREED between the parties hereto as follows: 1. Sale of Propertv. Convevance Terms. A. Subject to all terms, covenants, and conditions of this agreement, the Agency agrees to convey the Property to the Redeveloper at a total acquisition price of $448,500.00 on the terms specified in the Undertakings and Obligations of Agency set forth hereinafter in Exhibit "B". Under those provisions, the purchase price will be credited against Agency's undertakings. B. At the time of delivery of one or more grant deeds for the property (the "Closing"), title to the Property shall be conveyed to the Redeveloper by grant deed substantially in the form attached hereto as Exhibit "B", and by this reference made a part hereof. The Agency shall prepare such deed. C. The Redeveloper shall have the right to enter into possession of the Property upon delivery of the grant deed from Agency. 4 D. The title to the Property conveyed by the Agency to the Redeveloper shall be a marketable title free and clear of all liens, encumbrances and exceptions, except as follows: (i) The title shall be subject to the conditions and restrictions set forth in the Declaration of Restrictions, recorded in Book No. 9033 at Page 807 et seq., in the official records of the County of San Bernardino (the "Declaration"), which Declaration is incorporated herein by reference. (ii) All of the agreements, covenants and conditions undertaken by the Redeveloper under this agreement. 2. Obliqations of Aqencv. The Agency shall be responsible for and complete the actions set forth in Exhibit "B" and agrees to use its best efforts to complete them prior to, or concurrently with, the completion of the required actions to be taken by the Redeveloper. 3. Obliqations of Redeveloper. A. The Redeveloper agrees to be responsible for and complete the actions set forth in Exhibit "D" within the time schedule set forth therein. B. Redeveloper has submitted to Agency development plans. The plans have been approved by the Agency, and such plans meet the requirements of the Redevelopment Plan and the Declaration. Any changes in plans shall require the specific approval of the Executive Director of Agency. C. The Project shall be constructed in accordance with all applicable State and local building and zoning laws and regulations and shall conform to the plans. 5 D. Following Closing and until construction of the Project has been completed, the Redeveloper agrees to make a detailed written report every six (6) months to the Agency as to the progress of such construction. During such period, construction of the Project shall be subject to inspection by representatives of the Agency. 4. Certificate of Completion. A. After completion of the Project in accordance with the plans, as amended by any changes approved pursuant to Section 3B hereinabove, the Agency will promptly furnish the Redeveloper with a Certificate of Completion substantially in the form of Exhibit "E" hereto (the .Certificate"). The Certificate shall be conclusive determination of satisfactory termination of the agreements and covenants of this agreement and the grant deed(s), with respect to the obligation of the Redeveloper, provided that the Certificate shall not constitute evidence of compliance with, or satisfaction of, any obligation of the Redeveloper to any holder of any mortgage, securing money loaned to finance the improvement, or any part thereof. If the Project is developed in phases, with approval of the Agency, a partial Certificate of Completion shall be given upon completion of any such phase; such Certificate shall be applicable only to such phase. B. The Certificate provided for in this Section shall be in such form as will enable it to be recorded with the County Recorder of San Bernardino County. If the Agency shall refuse or fail to provide the certification in accordance with the 6 provisions of this Section, the Agency shall, within fifteen (15) days after written request by the Redeveloper, provide the Redeveloper with a written statement indicating in detail in what respects the Redeveloper has failed to complete the improvements in accordance with the plans or is otherwise in default under this agreement and what measures or acts will be necessary, in the opinion of the Agency, for the Redeveloper to take or perform in order to obtain the Certificate. Upon Redeveloper's correction of the deficiencies noted in such letter, the Agency shall promptly furnish the Certificate. 5. Maintenance. A. The Redeveloper agrees that the Redeveloper shall, to the Agency's reasonable satisfaction, properly maintain the parking areas and landscaped areas and parkways on the Property as shown on the plans, as approved by the Agency, and required by the conditions and restrictions of the Declaration. B. In the event Redeveloper fails to perform the maintenance as provided herein, Agency shall give notice to Redeveloper of its alleged failures, and detail the corrective steps to be taken. Redeveloper shall have the right to be heard by the Community Development Commission if it requests a hearing within ten (10) days after receipt of notice. Redeveloper shall have thirty (30) days to correct any deficiency, unless a longer time is granted at a hearing. After that time, the City and/or the Agency shall have the right to enter the Property and undertake, or cause to be 7 undertaken, the maintenance activities detailed in the notice provided for herein. In such event, Redeveloper shall be liable for and reimburse the City and/or the Agency for all reasonable sums incurred by it for such maintenance activities. This right of entry and the right to correct and be reimbursed shall be Agency's only remedy for any alleged breach of this provision. The rights and obligations of Redeveloper run with the land; Redeveloper shall include these requirements in its Covenants, Conditions and Restrictions, if and when it sells any portion of the land. 6. Restrictions on Use. The Redeveloper agrees that it shall: A. Devote the Property to, and only to and in accordance with, the uses permitted by the Redevelopment Plan. The terms Ruses permitted by the Redevelopment Plan" and "land useR referring to provisions of the Redevelopment Plan, or similar language in this agreement, shall apply to the Property and all buildings and uses thereon. B. Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry in the sale, lease, sublease, rental, or transfer or in the use, occupancy, tenure, or enjoyment of the Property or any improvements erected or to be erected thereon, or any part thereof, nor shall the Redeveloper 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 8 occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property, or any part thereof. 7. Aqencv Riqhts to Enforce. In amplification, and not in restriction of the provisions of the preceding Section, it is intended and agreed that the Agency and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in Sections 5 and 6 hereof, both for and in their or its own right, and also for the purposes of protecting the interests of the community and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. Only the Agency shall have the right to maintain actions based on the terms of Sections 5 and 6. This agreement is not intended to create in any other party the right to enforce this agreement. The agreements and covenants of Sections 5 and 6 shall run in favor of the Agency, for the entire period during which such agreements and covenants shall be in force and effect, without regard to whether the Agency has at any time been, remains, or becomes an owner of any land or interest therein to which, or in favor of which, such agreements and covenants relate. Only the Agency shall have the right, in the event of any breach of any such agreement or covenant, to exercise all of the rights and remedies, subject to the notice and cure provisions of Section 11 of this agreement, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such 9 agreement or covenant may be entitled. Any leases made by the Redeveloper covering the subject Property shall give notice of applicable restrictions, covenants and conditions set forth in Sections 5 and 6 of this agreement. The Redeveloper and the Agency agree to cooperate in enforcing such restrictions, covenants and conditions. 8. Equal Emolovment Oooortunitv. The Redeveloper agrees that during the construction of the Project: A. The Redeveloper shall not discriminate against any employee or applicant for employment because of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. The Redeveloper shall take the necessary affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. Such affirmative action concerning equal employment opportunities shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection for training, including apprenticeship. The Redeveloper agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Agency setting forth the provisions of the nondiscrimination clause. 10 B. The Redeveloper shall, in all solicitations or advertisements for employees in the construction phase placed by or on behalf of the Redeveloper, state that all qualified applicants will receive consideration for employment without regard to race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. C. The Redeveloper shall comply with all applicable local, State and Federal laws and regulations relating to equal employment opportunity. D. In the event of the Redeveloper's noncompliance with the nondiscrimination clause of this Section, or with any of said laws, rules or regulations, the Agency shall, after compliance with the notice and cure provisions of Section 11 herein, have the right to compel full compliance through an action for specific performance of this Agreement. E. The Redeveloper shall include notice of the provisions of subdivisions (a) through (c) of this Section in every construction contract, and shall require the inclusion of notice of these provisions in every construction subcontract entered into by any of its contractors, unless exempted by the applicable laws, rules or regulations and such provisions shall be binding upon each such contractor, subcontractor, or vendor, as the case may be. The Redeveloper shall take such action with respect to any construction contract or subcontract, as the Agency may direct, as a means of enforcing such provisions, including sanctions for noncompliance, provided, however, that in the event the 11 Redeveloper becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Agency, the Redeveloper may require the Agency to enter into such litigation to protect its interest, and Agency will undertake the defense of both Redeveloper and the Agency, or excuse Redeveloper from further obligation hereunder. 9. Prohibition Aqainst Assiqnment and Transfer. A. Representations as to the Redevelopment: The Redeveloper represents and agrees that the Property acquired hereunder, and Redeveloper's other undertakings pursuant to this agreement, are and will be used for the purpose of redevelopment of the Property in accordance with this agreement and not for speculation in landholding or in "packaging" a development for sale to and eventual construction by another entity. Redeveloper represents that it, in its present form and with its present principals, will accomplish this Project. The Redeveloper further recognizes: (1) the importance of the redevelopment of the property to the general welfare of the community; (2) that the qualifications and identity of the Redeveloper are of particular concern to the community and the Agency, and that this sale is founded upon the particular qualifications of the principals presently comprising the firm identified as the "Redeveloper", who have been disclosed to the Agency in the offer to purchase and other allied documents heretofore filed by Redeveloper with the Agency. 12 B. Prohibition Against Transfer of Property and Assignment of Agreement or interest in Redeveloper prior to completion of the Project: (1) The Redeveloper represents and agrees for itself, and its successors and assigns that except only by way of security for, and only for (i) the purpose of obtaining financing necessary to enable the Redeveloper to perform its obligations with respect to constructing, owning and operating the Project under this agreement, and (ii) any other purposes authorized by this agreement, the Redeveloper (except as so authorized) has not made or created, and that it will not, prior to the completion of the Project and receipt of the Certificate, make or create, or suffer to be made or created, any total or partial sale, assignment, or conveyance, or grant any trust or power, or transfer in any other mode or form with respect to, this agreement or the Property or in the entity of the Redeveloper, or any part thereof or any interest therein, or enter into any contract or agreement to do any of the same, without the prior written approval of the Agency. No transfer or combinations of transfers of any interest greater than ten (10%) percent in total in the entity comprising the Redeveloper to any person or entity not already a partner in the Redeveloper shall be made without notice to the Agency and written consent of the Agency. The restrictions of this provision shall terminate upon recording of the Certificate(s). Prior to the issuance of the Certificate, the Redeveloper may nevertheless enter into any lease of office 13 buildings, facilities, or suites with respect to the Project, in the ordinary course of business. (2) The Agency shall be entitled to require, except as otherwise provided in this agreement, as conditions to any such approval required for a sale, assignment, transfer or grant under the preceding paragraph prior to the recordation of the Certificate, that: (a) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the Agency, necessary and adequate to fulfill the obligations undertaken in the agreement by the Redeveloper (or, in the event the transfer is of, or relates to, part of the Property, such obligations to the extent that they relate to such part). (b) Any proposed transferee, by instrument in wr iting satisfactory to the Agency and ,in recordable form, shall, for itself and its successors and assigns, and expressly for the benefit of the Agency, have expressly assumed all of the obligations of the Redeveloper under this agreement and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject (or, in the event the transfer is of, or relates to, part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part); provided that, if any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof shall not have assumed such obligations or so agreed, that fact shall not (unless and only to the extent otherwise specifically provided in this 14 agreement or agreed to in writing by the Agency) relieve or excuse such transferee or successor of or from such obligations, conditions, or restrictions, or deprive or limit the Agency of, or with respect to, any rights or remedies or controls with respect to the Property or the construction of the Project. Redeveloper shall also remain fully liable hereunder unless specifically excused by agreement of the Agency in writing. It is the intent of this subsection, together with other provisions of this agreement, that (to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in this agreement) no transfer of or change with respect to ownership in the Property or any part thereof, or any interest therein, or if any interest in the entity of Redeveloper totalling more than ten (10%) percent ownership interest, however consummated or occurring, and whether voluntary or involuntary, shall operate legally or practically, to deprive or limit the Agency of, or with respect to, any rights or remedies or controls provided in, or resulting from, this agreement with respect to the Property and the construction of the Project that the Agency would have had, had there been no such transfer or change. (c) Redeveloper shall submit to the Agency for review all instruments and other legal documents involved in effecting any such proposed transfer subject to the Agency's approval; and if approved by the Agency, its approval shall be indicated to the Redeveloper in writing. If a proposed 15 transfer is disapproved by the Agency, its reasons shall be clearly stated in writing to the Redeveloper. Agency agrees to act within thirty (30) days and without delay on any request to approve a transfer by Redeveloper. (d) The consideration payable for the transfer by the transferee, or on its behalf, shall not exceed an amount representing the actual cost (including carrying charges and all sums allocated herein for losses incurred by Redeveloper as a result of its delay in construction and revamping of plans necessitated by the Central City South Study) to the Redeveloper of the Property (or allocable to the part thereof or interest therein transferred) and the improvements, if any, theretofore made thereon by it, it being the intent of this provision to preclude assignment of this agreement or transfer of the Property (or any parts thereof other than those referred to in this Section 10 (relating to security for financing), for profit prior to the completion of the Project and to provide that, in the event any such assignment or transfer is made (and is not canceled), the Agency shall be entitled to increase the purchase price to the Redeveloper by the amount that the consideration payable for the assignment or transfer is in excess of the amount that may be authorized pursuant to this subdivision. Such consideration received by Redeveloper in any form whatever shall, to the extent it is in excess of the amount so authorized, belong to, and shall forthwith be paid to, the Agency. 16 (e) Nothing in this agreement shall preclude Redeveloper from conveying the Property in trust, or otherwise, as security for a bona fide construction loan or bona fide long term financing. 10. Default Prior to Conveyance. In the event that, prior to Closing and in violation of this agreement, (i) the Redeveloper assigns or attempts to assign this agreement or any rights therein or in the Property, or (ii) the Redeveloper fails to submit its deeds, dully executed, into escrow, and close escrow by the date specified in Exhibit "D", and take title to the Property upon tender of conveyance by the Agency pursuant to this agreement, then this agreement, any rights of the Redeveloper, or any assignee or transferee in this agreement, or rights arising from this agreement, with respect to the Property, and the down payments heretofore deposited by Redeveloper or its predecessor in interest, shall, at the option of the Agency, be terminated by the Agency. Upon such termination, neither the Redeveloper (or assignee or transferee) nor the Agency shall have any further rights against or liability to the other under this agreement. 11. Default bv Redeveloper Subsequent to Closinq. A. Any of the following circumstances shall constitute an event of default: (1) The Redeveloper (or successor in interest) shall default in, or violate, its obligations with respect to the construction of the project (including the nature and the dates for the beginning and completion thereof), or shall 17 abandon or substantially suspend construction work for thirty (30) or more consecutive days, (delays caused by act of God, strikes or other causes clearly beyond Redeveloper's control being excepted) or (2) The Redeveloper (or successor in interest) shall fail to pay real estate taxes or assessments on the Property or any part thereof when due, or shall place thereon any encumbrance or lien not authorized by this agreement, or shall suffer any levy or attachment to be made, or any materialmen's or mechanic's lien or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged, or provision satisfactory to the Agency made for such payment, removal or discharge, within thirty (30) days after written demand by the Agency so to do; provided, however, the Redeveloper shall have the right to contest, in good faith, by appropriate proceedings, any such lien or encumbrance, and to substitute an appropriate bond in lieu of the payment, removal, or discharge of such lien or encumbrance; or (3) There is, in violation of this agreement, any transfer of the Property, or of the ownership of Redeveloper's business entity or any part thereof. B. Upon the occurrence of any such event of default, the Agency shall give written notice to the Redeveloper and concurrently to the holder of any first lien financing on the Project which has requested the Agency to provide such notice 18 (the "Lender"). The notice shall detail any allegations of a condition of default and shall not be effective against Redeveloper unless Lender has also been notified. Redeveloper or the Lender shall be entitled to a hearing before the Community Development Commission as to the existence of a default, or as to the steps to be taken to cure any default, provided that request for such hearing is made within twenty (20) days after receipt of the notice herein provided for. If no such hearing is requested, or if after the hearing, the Community Development Commission determines an event of default to have occurred, the Redeveloper or Lender shall have ninety (90) days within which to cure the default. The ninety day period shall be extended, as necessary, if Lender commences foreclosure on the Project during such period, as set forth in the next paragraph. If Redeveloper fails to cure the default as provided above, or is otherwise in default under the mortgage loan made by Lender (the "Mortgage Loan"), Lender may declare a default thereunder, accelerate the debt and enforce its rights against the Property. In such event, provided that Lender proceeds to enforce its rights diligently in accordance with the Mortgage Loan documents Agency shall: (i) hold in abeyance any enforcement proceedings of its own, particularly refraining from any act to take possession of the Property or to cause a reversion of Redeveloper's title, and (ii) permit Lender to exercise its rights over the Property, to foreclose and sell, or to acquire by deed in lieu of foreclosure and resell, the 19 Property, provided that any sale or re-sale of the Property shall be subject to the covenants and unsatisfied obligations of Redeveloper under this agreement and grant deed(s). If the default is not cured as set forth in the preceding two paragraphs, the Agency shall have the right to reenter and take possession of the Property and to terminate (and revest in the Agency) the estate conveyed by the deed(s) to the Redeveloper. It is the intent of this subsection, together with the other provisions of this agreement, that the conveyance of the Property to the Redeveloper shall be made upon, and that the deed(s) shall contain a condition subsequent to the effect that, upon an event of default by the Redeveloper specified in clauses (1), (2), and (3) of this subsection A above (and only for such events of default), the Agency at its option and subject to the rights of Lender, above, may declare a termination in favor of the Agency of the title, and of all the rights and interest in the Property conveyed by the deed(s) to the Redeveloper, provided only that it has given the specified notices and opportunities to cure, and the default has not been cured within the time alloted therefor. Such a termination of title in favor of the Agency shall be effected by the Agency recording in the office of the County Recorder of San Bernardino County a written Declaration of Termination referring to the deed(s) by which the Property was conveyed to the Redeveloper. Thereupon, the said deed(s) and conveyance shall become null and void, and all interest 20 ~.. ..~ thereby conveyed shall forthwith and without further notice to the Redeveloper become forfeited and shall revert to the Agency. The condition subsequent and any revesting of title as a result thereof in the Agency is and shall always be subject to and limited by, and shall not defeat, render invalid, or limit in any way (i) the lien of any mortgage or deed of trust for construction or long term loan financing authorized by this agreement and executed for the purpose of obtaining funds to acquire and/or develop the Property, and (ii) any rights or interests provided in this agreement for the protection of the holders of such mortgages or deed of trust. C. After full compliance with the notice and cure provisions contained herein (including the rights granted to Lender), the Agency shall have the right to institute such actions or proceedings as it may deem desirable for effectuating the purposes of this Section 11, in addition to the right to execute and record or file with the County Recorder of San Bernardino County a written Declaration of Termination of all rights and title of the Redeveloper, in the Property and the revesting of title thereto in the Agency, as set forth above. It is further provided that any delay by the Agency in instituting or prosecuting any such actions or proceedings or otherwise asserting its rights under this Section 11 shall not operate as a waiver of such rights or to deprive it of, or limit, such rights in any way (it being the intent of this provision that the Agency should not be 21 constrained, so as to avoid the risk of being deprived of, or limited in, the exercise of the remedy provided in this Section because of, concepts of waiver, laches, or otherwise, to exercise such remedy at a time when it may still hope otherwise to resolve the problems created by the default involved), nor shall any waiver in fact made by the Agency with respect to any specific default by the Redeveloper under this Section be considered or treated as a waiver of the rights of the Agency with respect to any other defaults by the Redeveloper under this Section or with respect to the particular default, except to the extent specifically waived. D. In the event that title to the Property shall revest in the Agency in accordance with the provisions of this Section 11, the Agency shall, pursuant to its responsibilities under the Community Redevelopment Law, use its best efforts to resell the Property (subject to such mortgage liens as provided in Subsection B of this Section) as soon and in such manner as the Agency shall find feasible and consistent with the objectives of such law, and of the Redevelopment Plan as hereafter amended from time to time, to a qualified and responsible party or parties (as determined by the Agency) who will assume the obligation of making or completing the improvements or such other improvements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified in the Redevelopment Plan, as hereafter amended from time to time. Upon such resale of the Property, the proceeds thereof shall be applied: 22 First: To reimburse the Agency, on its own behalf or on behalf of the City, for all costs and expenses incurred by the Agency, including, but not limited to, real estate broker commissions, if any, paid by the Agency, attorneys fees and salaries of personnel, in connection with the sale and recapture, management and resale of the Property (but less any income derived by the Agency from the Property in connection with such management), all taxes and assessments with respect to the Property (or, in the event the Property is exempt from taxation or assessment during the period of ownership thereof by the Agency, an amount equal to such taxes and assessments, or charges (as determined by proper assessing officials) as would have been payable if the Property were not so exempt), and payments made or necessary to be made to discharge any encumbrances or liens existing on the Property at the time of revesting of title thereto in the Agency or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Redeveloper, its successors or transferees, and expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Property~ and any amounts otherwise owing the Agency by the Redeveloper and its successors or transferees. Agency shall not unreasonably delay any such resale, and shall give to any Lender notice of the terms of any sale thereof as reported for approval to the Community Development Commission, unless the Lender had previously been paid in full or waived any further rights to the property. 23 Second: To reimburse the Redeveloper, its successors or transferees up to the amount equal to (i) the sum of the purchase price paid by it for the Property and the cash actually invested by it in making any of the improvements on the Property less (ii) any gains or income withdrawn or made by it from this agreement or the Property. Third: Any excess remaining shall be retained by the Agency. 12. Default bv Aqencv Subsequent to Closinq. In the event that the Agency fails to comply with each and every condition hereinabove set forth, with the exception of those conditions which are to be performed by the Redeveloper, the Redeveloper or Lender may initiate an action to compel the Agency to perform its obligations and to seek judicial or equitable relief for the Agency's failure to perform, including compensation for damages suffered by Redeveloper or Lender. 13. Cumulative Remedies: Waivers. The rights and remedies of the parties to this agreement shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for any other default or breach by the other party. No waiver by either party with respect to the performance, or manner, or time thereof, or any obligation of the other party or any condition to its own obligation under this agreement, shall be considered a waiver of any rights of the party making 24 the waiver with respect to the particular obligation of the other party or condition to its own obligation beyond those expressly waived and to the extent thereof. No such waiver shall in any respect affect any other rights of the party making the waiver or any other obligations of the other party. 14. Aqencv Emolovees. Members. No member, official, or employee of the Agency shall have any financial interest, direct or indirect, in this agreement or in the Property, nor shall any such member, official, or employee participate in any decision relating to this agreement or to the Property, which affects his financial interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Agency shall be personally liable to the Redeveloper or any successor in interest in the event of any default or breach by the Agency or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of this agreement. 15. Minimum and prevailinq Waqe Rates for Laborers and Mechanics for Public Works Portion of Proiect. As to any and all parts of the Project constituting .public works" as defined by California Labor Code Section 1720, all laborers and mechanics employed upon the work covered by this contract shall be paid unconditionally fully as required by state law, and without subsequent deduction or rebate on any account (except such payroll deductions as are made mandatory by law and such other payroll deductions as are permitted by the 25 applicable regulations issued by the Director of Industrial Relations, California Department of Labor), the full amounts due at time of payment computed at wage rates not less than those contained in the wage determination decision of said Director of Industrial Relations, applicable to the San Bernardino area, plus all fringe benefits payable under any contract between an employer and unions representing comparable trades in the area, regardless of any contractual relationship which may be alleged to exist between the Contractor or any subcontractor and such laborers and mechanics. Redeveloper shall require its contractors and subcontractors to comply with all provisions of this paragraph. Redeveloper further agrees that this paragraph shall inure to the benefit of the Agency and all laborers and mechanics employed upon the "public works. covered by this contract as third party beneficiaries and that the Agency or any aggrieved employee may file an action in any court of competent jurisdiction against the Redeveloper or any of its contractors or subcontractors for the recovery of the difference between the wage rates actually paid and the wage rates legally required to be paid under the provisions of this section and any applicable regulations, statutes and laws, and further agrees to pay reasonable attorney fees and court costs if the Agency or employee prevails. Upon request from Agency, Redeveloper, its contractors and subcontractors shall provide to Agency certified payrolls, and shall make its and their books and records available for inspection and audit as to 26 compliance with this paragraph at some location within the City of San Bernardino upon ten (10) days' notice in writing to Redeveloper. This paragraph shall apply only to .public works," as defined. 16. Attornevs Fees. Redeveloper agrees if any action is brought against Redeveloper for breach of any of the covenants or conditions of this agreement to pay reasonable attorneys fees and court costs. 17. Notice. Any notice, demand or request required or permitted to be given by either party to the other shall be given by certified mail, return receipt requested, postage prepaid, addressed as follows (or to such other notice address as any party may have furnished to the other in writing): AGENCY: REDEVELOPER: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North .D" Street, Rm. 320 San Bernardino, CA 92418 SIMA PARTNERSHIP c/o S & A Properties Attn: Alan Fainbarg 890 W. Baker Street, 1200 Costa Mesa, CA 92626 18. MerQer. None of the provisions of this agreement are intended to or shall be merged by reason of any deed(s) transferring title to the Property from the Agency to the Redeveloper or any successor in interest, and any such deed(s) shall not be deemed to affect or impair the provisions and covenants of this agreement. 19. Riqht to Modifv. Terminate. Amend. This agreement may be terminated, extended, modified or amended as to all of the Property or any part thereof, for which a Certificate of Compliance has not been issued, upon the mutual written 27 agreement of the Agency and Redeveloper, but only upon the prior written consent of Lender. No such termination, extension, modification or amendment shall be effective until a written instrument setting forth the terms of the same has been executed, acknowledged and recorded in the Office of the Recorder of San Bernardino, California. 20. Time is of the Very Essence. Agency and Redeveloper shall have every right to exercise their respective options upon any breach of time constraints whatever. All parties recognize that time is of the very essence of this agreement. 21. Lender as Beneficiarv Hereunder: Additional Riqhts of Lender. Redeveloper and Agency agree and intend that Lender is to be a beneficiary of certain provisions of this Agreement, and that Lender shall have the rights provided in this agreement to the extent set forth herein, notwithstanding that it is not a signatory party hereunder. In addition to the rights granted to Lender under Section 11 for notice of events of default by Redeveloper, and rights given to Lender to effect a cure or enforce its remedies under the Mortgage Loan, Redeveloper and Agency agree that, as under Section 11: (1) Agency shall give Lender notice of any default of Redeveloper under the agreement or the grant deed(s), whether or not such defaults are events of default under Section 11; and (ii) Lender shall have the same grace periods and rights to cure or enforce the Mortgage on such defaults, as it has for events of default under Section 11. 28 , 22. Validity Continqencv. This agreement shall not become effective for any purpose unless the original, duly executed by the Redeveloper, is returned and received by the Agency within ten (10) days from the receipt thereof by the Redeveloper. 23. Execution. This agreement may be executed in several counterparts, each of which shall be deemed to be an original and such counterparts shall constitute one and the same instrument. EXECUTED at , California, this day of , 19 . AGENCY: REDEVELOPER: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SIMA PARTNERSHIP NUMBER ONE A California Partnership By By Chairman A General Partner By By Secretary Approved as to form: AGENCY COUNSEL By 29 ACKNOWLEDGMENTS 30 . EXHIBIT "A" DESCRIPTION OF PROPERTY The following described real property in the City of San Bernardino, County of San Bernardino, State of California: That portion of Lot 10, Block 11, Rancho San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per Map recorded in Book 7 Page 2 of Maps, in the office of the County Recorder of said county, described as follows: Beginning at a point on the south line of said Lot 10, 200.00 feet west of the southeast corner of said Lot 10, thence north o degrees 42 minutes 38 seconds west and parallel with the east line of said east line of said Lot 10 a distance of 298.80 feet; thence south 89 degrees 16 minutes 52 seconds west and parallel with the south line of said Lot 10 a distance of 336.02 feet mor or less to the east line of "G" Street, as described in the Notice of Action recorded December 30, 1939 in Book 1408 Page 106 of Official Records of said county; thence south 37 degrees 15 minutes 08 seconds east along the northeasterly line of "G" Street 371.99 feet more or less to the south line of Lot 10, thence north 89 degrees 16 minutes 52 seconds east along the south line of said Lot 10 a distance of 114.48 feet more or less to the point of beginning. Excepting therefrom, however, those parts thereof required for highway right-of-way for the realignment of "G" Street at and immediately northerly from its intersection with Mill Street. The exact legal description of the property is to be determined by survey. 31 EXHIBIT "B" UNDERTAKINGS AND OBLIGATIONS OF AGENCY The Agency agrees and undertakes to do the following: 1. Convey by grant deed to Redeveloper the property described in Exhibit "A", for the sum of $448,500. The purchase price shall be deducted from the obligations owned by Agency to Redeveloper as specified hereinbelow, and no cash shall change hands as to this purchase price. Agency will deliver a grant deed through escrow. 2. Agency will reimburse Redeveloper for losses sustained by Redeveloper in not continuing to conclusion with its approved development on the site immediately north of the property to be conveyed, which losses were sustained by Redeveloper agreeing to suspend construction of its then- approved project while plans for a Central City South Overlay Zone and realignment of "G" Street were being finalized. The parties agree that Redeveloper should be reimbursed by Agency for $376,919 in losses so encountered by Redeveloper, consisting of $237,669 in expenses incurred and rendered valueless, including the following: architect fees (Orange); engineer fees (Brown and Mullins); construction supervision (Delgado); on-site construction; building permits; real estate taxes; insurance; registrar fees; remarketing fees; trustee fee; and letter of credit fee. In addition, the loss of a beneficial construction contract and land carry costs have been compromised to a sum of $139,250. All such identified losses total $376,919, which agency agrees to pay Redeveloper. 32 3. Agency shall accept from Redeveloper a grant deed to that part of certain property presently owned by Redeveloper needed for the realignment of "G" Street right-of-way, which land Redeveloper will sell to Agency for $128,000. 4. Agency's obligation under items 2 and 3 above, total $504,919. Of that, $448,500 will offset the purchase price provided for in Item 1 above, and the remaining $56,919 will be paid by the Agency by delivery of a promissory note to be paid over a period not to exceed five years from tax increment as it flows from Redeveloper's project, and bearing interest at the rate of 7.5%. 5. In addition, Agency recognizes that certain other costs, not definitely ascertainable at the time of execution of this agreement, will be sustained by Redeveloper, including possible costs of undergrounding earlier deposited with Southern California Edison Company, landscape design costs expended, some part of which may yet be salvaged, and grading costs expended, some part of which may yet be salvaged. Agency agrees to pay such costs, on the same basis as for the $56,919 specified above, by adding such amount to the promissory note to be executed, at such time as the costs are fully identified and agreed upon. The total additional costs to be so added to the promissory note are estimated at $72,611, but shall not exceed $112,044. In the event the parties are unable to agree upon the amount to be so added, the matter shall be submitted to an arbitrator, mutually agreed upon, whose decision shall be final as to the amount to 33 be so added, but not in excess of $96,800 in any event. The arbitrator shall also determine which party shall pay the costs of the arbitration, or the apportionment thereof among the parties. 6. Agency waives the right to exercise eminent domain as to the property so long as it is owned by Redeveloper. 7. In the event Redeveloper is delayed by an act of God, strike, or other causes clearly beyond the control of Redeveloper, Agency agrees to negotiate reasonable extensions of times for performance specified in Exhibit D, provided Redeveloper notifies Agency in writing of the delay within thirty days of its first occurrence. 34 EXHIBIT "CO GRANT DEED (Subject to Conditions Subsequent) The REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a public corporation, hereinafter called the Grantor, in consideration of the sum of FOUR HUNDRED FORTY- EIGHT THOUSAND FIVE HUNDRED DOLLARS ($448,500), to be paid by SIMA PARTNERSHIP NUMBER ONE, a California partnership, hereinafter called Grantee, pursuant to a Disposition and Joint Development Agreement between Grantor and Grantee, dated December ___, 1986, (the "Agreement") and in further consideration of the covenants and conditions herein contained and to be kept and performed by the Grantee, does hereby grant and convey to the Grantee, its successors and assigns, in fee simple, all that real property in the City of San Bernardino, County of San Bernardino, State of California, described in Exhibit "A" attached hereto. Grantor and Grantee agree that, other than with respect to the foregoing granting provisions of this Deed, if there exists any conflict between the provisions hereof and the Agreement, the terms and conditions of the Agreement shall control. The Grantee does hereby acknowledge receipt of a copy of the Redevelopment Plan for the Central City South Redevelopment Project, approved by Ordinance No. 3572 of the City of San Bernardino, which Ordinance was adopted, May 3, 35 1976, which is hereinafter referred to as the "Redevelopment Plan", said Redevelopment Plan containing as a part thereof that certain Declaration of Restrictions which became effective under said Ordinance and which is hereinafter referred to as the "Restrictions". The Grantee, for itself, its successors and assigns, does hereby covenant and agree with, and for the benefit of, the Grantor, its successors and assigns, as follows: 1. Grantee, its successors and assigns, will hold, occupy and use the aforesaid real property subject to and in accordance with all the terms, conditions, limitations, restrictions, requirements and covenants set forth in the Redevelopment Plan and the Restrictions as in effect on the date of this Deed. Said terms, conditions, limitations, restrictions and covenants "running with the land" and shall be binding for the benefit and in favor of, and be enforceable by, the Grantor, its successors and assigns, the City of San Bernardino, and any successor in interest to the Grantee of the Property or any part thereof. 2. (a) The Grantee herein covenants by and for itself, its successors and assigns, and every successor in interest to the Property, or any part thereof" and all persons claiming under or through them, that the Grantee, and such successors and assigns, shall (1) Devote the Property to uses consistent with the purposes of the Redevelopment Plan. 36 (2) Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin, ancestry, age or handicapped status in the sale, lease, sublease, rental or transfer or in the use, occupancy, tenure or enjoyment of the Property or any improvement erected or to be erected thereon, or any part thereof, nor shall the Grantee himself or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the property, or any part thereof. (3) Properly maintain the parking areas, landscaped areas and parkways on the Property, and that, if Grantee fails to remedy any failure after thirty (30) days notice from Grantor or the City of San Bernardino (the "City"), Grantor or City shall have the right to enter the Property, and undertake or cause to be undertaken such maintenance activities. In such event, Grantee, its successors or assigns, shall reimburse City or Grantor for all reasonable sums incurred for such maintenance activities. (b) The foregoing agreements and covenants, as set forth in subdivision (a) of Section 2 of this Deed, shall be covenants running with the land, and they shall in any event, without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding to the fullest extent 37 . permitted by law and equity, for the benefit and in favor of, and be enforceable by the Grantor, its successors and assigns, the City, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. It is further intended and agreed that the agreement and covenant provided in subsection (1) of subdivision (a) of Section 2 of this Deed shall remain in effect for a period of forty-five (45) years from the date upon which said Ordinance became effective, at which time such agreement and covenant shall terminate, and that the agreement and covenant provided in subsection (2) of subdivision (a) of Section 2 hereof shall remain in effect without limitation as to time; provided that such agreements and covenants shall be binding on the Redeveloper itself, each successor in interest to the Property, and every part thereof, and each party in possession or occupancy, respectively, only for such period as such successor or party shall have title to, or an interest in or possession or occupancy of, the Property or part thereof. The term "uses specified in the Redevelopment Plan" and "land use" referring to provisions of the Redevelopment Plan, or similar language, in the agreement shall include the land and all buildings, housing, and other requirements or restrictions of the Redevelopment Plan pertaining to such land. 3. In amplification and not in restriction of, the provisions of Section 2, hereof, it is intended and agreed that the Grantor and its successors and assigns shall be 38 . deemed beneficiaries of the agreements and covenants provided in said Section 2 hereof, both for and in their or its own right and also for the purpose of protecting the interests of the City and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. This Deed creates no cause of action enforceable by any person or party other than the Grantor or the City of San Bernardino. Such agreements and covenants shall run in favor of the Grantor, for the entire period during which such agreements and covenants shall be in force and effect, without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein, or in favor of which, such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled, subject to the notice and cure provisions of the Agreement. (THIS DEED IS GIVEN SUBJECT TO A CONDITION SUBSEQUENT, AS FOLLOWS:) 4. In the event Grantee shall default in the performance of Grantee's undertakings for the construction of certain improvements on the Property within the time and in the manner set forth in the Agreement, or if the Grantee shall fail to pay real estate taxes or assessments on the Property when due; or 39 ~ . shall place thereon any encumbrance or lien unauthorized by the agreement, or shall suffer any levy, lien, or attachment to be made with respect to the Property, or there is in violation of the Agreement, any transfer of the Property or any part thereof, or any transfer of the ownership of the Grantee entity in violation of the terms of the Agreement and if, prior to execution and delivery by Grantor to Grantee of a Certificate of Completion, Grantor shall record in the office of the County Recorder of the County of San Bernardino, State of California, a written Declaration of Termination referring to this Deed, then this Deed and conveyance shall be null and void and all interest hereby granted and conveyed shall forthwith and without further notice to Grantee, become forfeited and shall revert to the Grantor. No such Declaration of Termination shall be recorded by Grantor until after full compliance with the notice and cure provisions contained in the Agreement. Any default by Grantee described in this Section 4 and the forfeiture of the Grantee's interest in the Property by reason of such default shall not in any manner impair, defeat or render invalid the interest of any mortgage or deed of trust, or of any beneficiary under any deed of trust or mortgage given by Grantee to secure a bona fide loan for the purpose of obtaining funds to acquire and/or develop all or part of the Property. (THE FOREGOING CONDITION SUBSEQUENT IS TERMINATED AND SHALL BE NULL AND VOID UPON RECORDING OF THE CERTIFICATE OF COMPLETION DULY EXECUTED BY AGENCY AS HEREINAFTER SPECIFIED.) 40 5. (a) Promptly after completion of the improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with a recordable Certificate of Completion as specified in the Agreement. The issuance of such Certificate by the Grantor shall be (and it shall be so provided in the Certificate itself), a conclusive determination of satisfaction and termination of the agreements and covenants in said Agreement and Section 4 of this Deed. (b) It is expressly understood by Grantor and Grantee, that the covenants contained in Section 2(a)1, 2(a)2, and 2(a)3 of this Deed are not subject to the Condition Subsequent specified in Section 4 hereof, but are enforceable under the other provisions of this Deed and as specified in the Agreement. These covenants and the provision for their enforcement shall, however, survive the termination of the Condition Subsequent and shall remain enforceable as otherwise provided. 6. None of the provisions of the Agreement are intended to or shall be merged by reason of this Deed transferring title to the Property from the Grantor to the Grantee, and this Deed shall not be deemed to affect or impair the provisions and covenants of said Agreement. However, the provisions referred to herein shall be deemed fully satisfied and terminated upon recording of the Certificate of Completion provided for in Section 5 41 7. The Grantor waives its right to exercise eminent domain as to this property so long as such property is owned by Sima Partnership Number One. IN WITNESS WHEREOF, the Grantor and Grantee have executed this Deed by their respective officers thereunto duly quali f ied this day of ,19_ GRANTOR: GRANTEE: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SIMA PARTNERSHIP NUMBER ONE A California Partnership By By Chairman A General Partner By Secretary Approved as to form: AGENCY COUNSEL By 42 ACKNOWLEDGMENTS 43 EXHIBIT "A" TO GRANT DEED DESCRIPTION OF PROPERTY The following described real property in the City of San Bernardino, County of San Bernardino, State of California: That portion of Lot 10, Block 11, Rancho San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per Map recorded in Book 7 Page 2 of Maps, in the office of the County Recorder of said county, described as follows: Beginning at a point on the south line of said Lot 10, 200.00 feet west of the southeast corner of said Lot 10, thence north o degrees 42 minutes 38 seconds west and parallel with the east line of said east line of said Lot 10 a distance of 298.80 feet; thence south 89 degrees 16 minutes 52 seconds west and parallel with the south line of said Lot 10 a distance of 336.02 feet mor or less to the east line of "G" Street, as described in the Notice of Action recorded December 30, 1939 in Book 1408 Page 106 of Official Records of said county; thence south 37 degrees 15 minutes 08 seconds east along the northeasterly line of "G" Street 371.99 feet more or less to the south line of Lot 10, thence north 89 degrees 16 minutes 52 seconds east along the south line of said Lot 10 a distance of 114.48 feet more or less to the point of beginning. Excepting therefrom, however, those parts thereof required for highway right-of-way for the realignment of "G" Street at and immediately northerly from its intersection with Mill Street. The exact legal description of the property is to be determined by survey. (NOTE: Prior to execution and delivery of grant deed, Agency shall obtain a survey and proper legal description of the property being conveyed, and shall substitute a correct legal description as Exhibit "A".) 44 EXHIBIT "D" UNDERTAKINGS AND OBLIGATIONS OF REDEVELOPER Redeveloper agrees and undertakes to do the following: 1. To construct not less than 30,500 square feet of retail buildings and nineteen (19) industrial/office buildings containing not less than 60.856 square feet in Phase 1, with a total of not less than $3,000,000.00 of construction value, to be completed and in place not later than August 31, 1987. This phase of the project will be on property presently owned by Redeveloper northerly of the property described in Exhibit "A" which will lie easterly of "G" Street, as realigned. 2. To construct not less than $500,000 in additional retail office or industrial buildings within five years from the date of this agreement on the property lying westerly of "G" Street, as realigned. 3. To construct all the improvements for the realignment of "G" Street in accordance with the requirements of the City of San Bernardino's Department of Public Works/Engineering, and in accordance with the development standards required by the overlay zone now applicable to this area of the Central City South Project area. 4. To accept the provisions of this agreement as full satisfaction for any and all losses sustained by Redeveloper in not pursuing its right to complete construction of its development as originaaly planned. Redeveloper waives 45 - any rights it may have had, or which it belives it may have had, to hold Agency, the City of San Bernardino, or any of their elected or appointed officers or employees liable fr any and all losses sustained in conjunction with the delays encountered and the possibility of exercise of eminent domain for the realignment of "G" Street. 5. To convey to Agency, for the amount of $128,000 payable as specified in Exhibit "B", the right of way required for "G" Street across Lot 11, Block 11, Rancho San Bernardino, as recorded in Book 7, Page 2 of Maps, San Bernardino County Records, being generally a portion of the southwest corner of that parcel. 46