HomeMy WebLinkAboutR28- Development Department i � r
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Ronald E. Winkler,Director SUBJECT: ARDEN-GUTHRIE COMMUNITY
Development Department CENTER
DATE: April 9, 1999 ORI"INAL
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Synoysis of Previous Commission/Council/Committee Action(s):
1`
On April 5, 1993,the Community Development Commission authorized staff to acquire and rehabilitate a four-plex
building for conversion to a multi-use facility
On March 2, 1994,the Agency purchased two vacant four-plex buildings. These were subsequently converted into
multi-purpose Community Center buildings.
On January 14, 1999,staff discussed lease/sale of the Community Center buildings to the Unified School District with
the Redevelopment Committee. The committee directed staff to proceed with negotiations.
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Recommended Motion(s):
OPEN JOINT PUBLIC HEARING
CLOSE JOINT PUBLIC HEARING
(Community Development Commission)
MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING THE DISPOSITION OF
CERTAIN PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO
THE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT (2204 SUNRISE LANE AND 2205 EAST
19TH STREET)
(Mayor and Common Council)
MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING THE DISPOSITION OF CERTAIN
PROPERTY BY THE DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN
BERNARDINO CITY UNIFIED SCHOOL DISTRICT(2204 SUNRISE LANE AND 2205 EAST 19TH STREET)
Contact Person(s): Gary Van Osdel/ R. Winkler Phone: 5081
Project Area(s) N/A Ward(s): Seven(7)
Supporting Data Attached: ❑x Staff Report❑x Resolution(s) ❑Agreement(s)/Contract(s)❑ Map(s) ❑Letter/Memo
FUNDING REQUIREMENTS Amount: $ N/A Source: N/A
Budget Authority: N/A
SIGNATURE: r"211 '/� bL&"-
Gary Van Osdel,Executive Director onalJE. inkler,Director
Economic Development Agency Develt Department
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Commission/Council Notes:
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REW:lag:99-04-19 Arden-Guthrie COMMISSION MEETING AGENDA
Meeting Date: 04/19/1999
Agenda Item Number: �O
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Arden-Guthrie Community Center
As you know the Agency has operated a Community Center in the Arden-Guthrie Area at 2204 Sunrise
Lane and 2205 East 19'h Street since the early 1990's. Originally acquired at the cost of$279,495, the
buildings were retrofitted from apartments to office and meeting spaces for community based programs at
a further cost of$502,281. The program base was developed through a grant received by San Bernardino
City Unified School District from the State Department of Education.
Grant funds were used to form a coalition of public and non- profit agencies to provide services to Arden-
Guthrie residents. Known as the Emmerton Healthy Start Community Collaborative, the coalition
included such agencies as the County Community Service Department, State University School of
Nursing, City Parks and Recreation, and St. Bernardine's Medical Center. Attached is information listing
some of the services provided. Currently, the Agency spends $250,000 annually for security, property
management, cul-de-sac maintenance and operation of the community center buildings.
Recently conversations were held with representatives of the City School District regarding ultimate
disposition of the community center buildings considering the Agency's need to reduce costs and redirect
scarce resources. Based upon those conversations the District expressed interest in assuming
responsibility for operation of the buildings under a lease purchase agreement. Negotiations commenced
resulting in the attached lease purchase agreement. Major terms and conditions are as follows:
Parties: San Bernardino Redevelopment Agency and
San Bernardino City Unified School District.
Property: 2204 Sunrise Lane and 2205 East 19`h Street
Term: Three(3)years with four 3-year options
Rent: Initial rent$500 per month,net,net, net, subject to annual
CPI adjustments not to exceed 5%per annum
Purchase Option: School District shall have the right to purchase the properties at the end of
15 years for one dollar each. This is based upon an appraised value of
$56,000 for both buildings. At any time during the lease term the District
may initiate early purchase of the properties by prepaying future rents (i.e.,
the unpaid portion of rents based upon a 15-year term excluding future CPI
adjustments). The District may exercise this right upon 30-days written
notice.
Termination: Upon lease termination,the District shall deliver the property free and clear
of all tenants and/or encumbrances.
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REW:lag:99-04-19 Arden-Guthrie COMMISSION MEETING AGENDA
Meeting Date: 04/19/1999
Agenda Item Number:
rEconomic Development Agency Staff Report
Arden-Guthrie Community Center
March 29, 1999
Page Number-3-
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Use Restrictions District shall continue to use the buildings for Community
And Sublease: services through the Emmerton Collaborative. All subleases shall be
subject to Agency review and approval.
Insurance: District shall provide property and liability insurance.
Property District shall be responsible for all property maintenance Management:
and management.
Encumbrance: District shall not pledge or encumber the properties as part of any financing
without prior written consent of the Agency.
Section 33433 of the Health and Safety Code requires that the Agency conduct a public hearing prior to
sale or lease of the property. Further it requires that a copy of the sale or lease document be made
available for public review at the time of noticing for the hearing together with a report summarizing the
terms,value and cost to the Agency. The attached have been made available to satisfy those
requirements.
As noted above,the Agency currently spends $250,000 annually for security,maintenance and property
management. Staff is now seeking bids to demolish those vacant buildings owned by the Agency. It is
expected that execution of the subject agreement together with demolition of the vacant buildings can
save$200,000 in annual expenditures by the Agency.
RECOMMENDATION:
The above was reviewed with the Redevelopment Committee which recommends that the Community
Development Commission adopt the attached resolution.
Ronald E.Winkler,Director
Development Department
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REW:lag:99-04-19 Arden-Guthrie COMMISSION MEETING AGENDA
Meeting Date: 04/19/1999
Agenda Item Number: R;Z!
Ply
NOTICE OF JOINT PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA AND THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO PURSUANT TO HEALTH
AND SAFETY CODE SECTIONS 33431 AND 33433 REGARDING THE
APPROVAL OF A CERTAIN LEASE AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND
SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT
PLEASE TAKE NOTICE that the City Council of the City of San Bernardino,
California (the "City Council") and the Redevelopment Agency of the City of San
Bernardino (the "Agency") will conduct a joint public hearing of the City Council and the
Agency at 2:00 p.m. on April 19, 1999, in the City Council Chambers at City Hall, 300
North "D" Street, San Bernardino, California, 92418. At the public hearing, the City
Council and Agency shall receive evidence and testimony and consider the approval of
that certain Lease Agreement (the "Agreement') by and between the Agency and San
Bernardino City Unified School District (the "District').
NOTICE IS FURTHER GIVEN that any and all persons are invited to appear
before the City Council and Agency and present evidence or testimony concerning the
foregoing matters at the time, date and place set forth herein.
The public hearing will be conducted pursuant to the provisions of Health and
Safety Code Sections 33431 and 33433. Among other matters, the Agreement
concerns the proposed disposition by the Agency to the District of certain real property
located at 2204 Sunrise Lane and 2205 East W' Street in the City of San Bernardino.
The Agreement provides that the Agency will lease to the District with an option to
purchase, the property in order to continue the use of the property for the provision of
community services.
A Summary Report setting forth certain details of the proposed Agreement has
been prepared pursuant to the requirements of Section 33433 of the Health and Safety
Code. Copies of the proposed Agreement and the Summary Report are on file and are
available for inspection and copying at a cost not to exceed the cost of duplication,
during normal business hours at the office of the Agency Secretary at 201 North "E"
Street, Suite 301, San Bernardino, California 92401.
Notice given this 29th day of March, 1999.
CITY OF SAN BERNARDINO
Cit `Clerk
Y
REDEVELOP NT AGENCY OF THE CITY OF
SAN BER INO
By:
gent ecretary
COPY
SUMMARY REPORT
PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON A LEASE
AGREEMENT BY AND BETWEEN THE
SAN BERNARDINO REDEVELOPMENT AGENCY AND THE
SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT
INTRODUCTION
This summary report has been prepared for the San Bernardino Redevelopment
Agency (Agency) pursuant to Section 33433 of the California Health and Safety
Code. This report sets forth certain details of the proposed Lease Agreement
(Agreement) between the Agency and San Bernardino City Unified School
District (District), regarding a Community Center in the Arden-Guthrie Area
located at 2204 Sunrise Lane and 2205 East 19th Street in the City of San
Bernardino.
This report is organized into the following seven sections:
A. Salient Points of the Proposed Agreement: This section includes a
description of the project and the major responsibilities to be assumed by
the Agency and the District.
B. Cost of the Agreement to the Agency: This section outlines the total
and net costs of the proposed Agreement to the Agency.
C. Estimated Value of the Interests to be Conveyed Determined at the
Highest Use Permitted Under the Redevelopment Plan: This section
summarizes the value of the Site to be conveyed to the District at the
highest use permitted.
D. Estimated Reuse Value of the Interests to be Conveyed Determined
Based on the Required Use and with the Conditions, Covenants and
Development Costs Required by the Proposed Agreement: This
section summarizes the value of the Project determined at the use
required by the proposed Agreement, recognizing the impact of the
proposed Agreement's terms and conditions.
E. Consideration Received and Comparison with the Fair Reuse Value:
This section describes the compensation to be received by the Agency,
and the reasons for any difference between the compensation and the fair
reuse value.
- 1 -
F. Blight Alleviation: This section describes the existing blighting
conditions on the Site, and an explanation of how the proposed
Agreement will assist in alleviating the blighting conditions.
G. Conformance with the AB 1290 Implementation Plan: This section
identifies how the proposed Agreement will result in a development that
fulfills goals and objectives established in the Agency's AB 1290 Five Year
Implementation Plan.
1. SALIENT POINTS OF THE PROPOSED AGREEMENT
A. Description of the Proposed Project
The purpose of the proposed Agreement is to effect the operation of the
Community Center in the Arden-Guthrie area. Based on the proposed Lease
agreement with the District, the proposed project would enable a coalition of
public and non-profit agencies (known as the Emmerton Healthy Start
Community Collaborative) to continue to provide community services to Arden-
Guthrie residents, known as the Emmerton Healthy Start Community
Collaborative. The Agency owns the buildings and will convey the property to the
District through a Lease agreement. Although the property is not located within a
redevelopment project area, it was acquired for affordable housing purposes
using low and moderate income set aside funds. This was part of an overall
strategy to preserve a deteriorating residential neighborhood.
B. Agency Responsibilities
1. Enter into a Lease Agreement with the District for a period of three (3)
years with four 3-year options.
C. District Responsibilities
1. Enter into a Lease Agreement with the Agency for a period of three (3)
years with four 3-year options.
2. Pay to the Agency initial rent of $500 per month, net, net, net, subject to
annual CPI adjustments not to exceed 5% per annum.
3. Assume all responsibilities for property maintenance and management.
4. Provide property and liability insurance.
5. Continue to use the buildings for community services through the
Emmerton Collaborative.
3
1
II. COST OF THE AGREEMENT TO THE AGENCY
The costs incurred by the Agency are provided below:
Site Acquisition $279,495
Building Retrofit $502,281
Total Agency Costs $781,776
The District shall have the right to purchase the properties at the end of 15 years
for one dollar each. This is based upon an appraised value of $56,000 for both
buildings. At any time during the lease term, the District may initiate early
purchase of the properties by prepaying future rents (i.e. the unpaid portion of
rents based upon a 15-year term excluding future CPI adjustments). The District
may exercise this right upon 30 day written notice.
III. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED
DETERMINED AT THE HIGHEST USE PERMITTED UNDER THE
REDEVELOPMENT PLAN.
The estimated fair market value of the interest to be conveyed, determined at the
highest uses permitted, is approximately Fifty-Six Thousand Dollars ($56,000).
This value is supported by an appraisal report prepared by James Smothers,
MAI, dated February 23, 1999.
IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED
DETERMINED BASED ON THE REQUIRED USE AND WITH THE
CONDITIONS, COVENANTS AND DEVELOPMENT COSTS REQUIRED
BY THE PROPOSED AGREEMENT
The Site will be conveyed to the District for the highest use value permitted.
V. CONSIDERATION RECEIVED AND COMPARISON WITH THE FAIR
REUSE VALUE
As noted above, the Site is being conveyed to the District at its highest use
value.
VI. BLIGHT ALLEVIATION
Since the property is not in a Redevelopment Project Area and is being leased to
the School District for public education purposes, the provisions of Health &
Safety Code Section 33433b(3) are not applicable.
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VII. CONFORMANCE WITH THE AB 1290 IMPLEMENTATION PLAN
The Five-Year Implementation Plan adopted by the Agency contains several
broad operational goals and objectives. Among these are the following:
1. Creation of incentive programs for existing property owners to reinvest in
their properties, including the utilization of Disposition and Development
Agreements and Owner Participation Agreements.
2. Creation of viable housing options within the Redevelopment Project that
span a range of incomes, including housing for the homeless and formerly
homeless.
3. Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
4. Land acquisition for the creation of public facilities, which serve both the
immediate neighborhood and the community at large.
5. Enhancement of ceremonial streets that function as the focal points in
their individual neighborhoods.
6. Continued preservation of historically significant structures.
7. Improvements to existing water and sewer lines, streets, sidewalks,
parkways and lighting in the public right-of-way.
8. Continued participation in the enhancement of the public infrastructure
system.
9. Acquisition and development of property to abate nuisance uses and
provide for future development.
The proposed Agreement will assist the Agency in meeting some of the
objectives and goals of its Five-Year Implementation Plan in the following ways:
1. The Agreement encourages reinvestment revitalization in the blighted
neighborhood.
2. The execution of a Lease agreement with the district will continue with the
redevelopment activities of providing public education programs and
community services.
Based upon the preceding factors, the proposed Agreement is consistent with
the adopted Five-Year Implementation Plan.
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The execution of a Lease agreement is subject to the closure of public hearing
with a majority approval vote by the Agency. The execution by the School
District is subject to the approval of the proposed Lease agreement and
applicable provisions of the California Education Code.
Dated: March 29, 1999 REDEVELOPMENT AGENCY OF THE
CITY OF BER DING
BY: /G� •�
a an Osdel, Exec ive Director
SMUsummary report-Arden Guthrie Community Center
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p�
1 RESOLUTION NO.
2
RESOLUTION OF THE COMMUNITY DEVELOPMENT
3 COMMISSION OF THE CITY OF SAN BERNARDINO
CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING
4 THE DISPOSITION OF CERTAIN PROPERTY BY THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN
5 BERNARDINO TO THE SAN BERNARDINO CITY UNIFIED
SCHOOL DISTRICT (2204 SUNRISE LANE AND 2205
6 EAST 19TH STREET)
7
8 WHEREAS, the Community Development Commission of the City
9 of San Bernardino (the "Commission") is the governing board of the
10 Redevelopment Agency of the City of San Bernardino (the "Agency") ;
11 and
12
13 WHEREAS, the Agency is a body corporate and politic,
14 organized and existing pursuant to the Community Redevelopment Law
15 (Part 1 of Division 24 ) commencing with Health and Safety Code
16 Section 33000; and
17
18 WHEREAS, the Agency owns certain real property commonly
19 known as 2204 Sunrise Lane and 2205 East 19th Street, San
20 Bernardino (the "Property") which the Agency acquired and improved
21 for use and occupancy by public service providers of community-
22 based programs; and
23
24 WHEREAS, the San Bernardino City United School District
25 (the "School District") has indicated an interest in acquiring a
26 leasehold interest in the Property from the Agency, together with
`r. 27 an option to purchase the Property from the Agency, in order for
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I the School District to use and occupy the Property to provide
2 certain public education-related community services from facilities
3 located on the Property; and
4
5 WHEREAS, the School District proposes to acquire such an
6 interest in the Property from the Agency on the terms and condition
7 as more fully set forth in that certain Lease Agreement, dated as
8 of February 1, 1999 (the "Lease-Option Agreement") , by and between
9 the School District and the Agency. The Lease-Option Agreement is
10 attached to this Resolution as Exhibit "A. "
11
12 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION,
13 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF
14 SAN BERNARDINO, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
15 FOLLOWS :
16
17 Section 1 . On April 19, 1999, the Commission
18 conducted a joint public hearing with the Mayor and Common Council
19 in accordance with the provisions of Health and Safety Code
20 Sections 33431 and 33433, relating to the disposition and
21 redevelopment of the Property by the School District pursuant to
22 the terms of the Lease-Option Agreement . The minutes of the Agency
23 Secretary shall include a record of all communications and
24 testimony submitted to the Commission by interested persons
25 relating to this matter . The Commission hereby acknowledges
26 receipt of the Summary Report, dated March 29, 1999, which relates
27
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I to this matter and which was considered by the Commission during
2 the joint public hearing .
3
4 Section 2 . The Commission hereby finds and determines
5 as follows :.
6
7 the disposition of the Property to the School
8 District shall materially assist the Agency with
9 the implementation of its Five Year Redevelopment
10 Implementation Plan for the reasons indicated in
11 the Summary Report;
12
13 the Lease-Option Agreement provides for the School
14 District to pay monthly installments of rent to the
15 Agency in the amount of $500 . 00 per month, and
16 continuously during the term of the Lease-Option
17 Agreement, the School District shall be responsible
18 for all maintenance and repairs of the Property;
19
20 the Lease-Option Agreement contains provisions
21 which assure that continuously during the term of
22 the lease of the Property to the School District,
23 the School District shall use the Property to
24 provide public education-related community
25 services;
26
27
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I the Lease-Option Agreement contains provisions
2 which assure that in the event that the School
3 District may exercise its option to purchase the
4 Property at any time prior to the expiration of the
5 lease term, that the School District shall pay the
6 Agency a sum equal to not less than $90, 000 . 00 in
7 rent or additional lease-option purchase payments
8 through the date of exercise by the School District
9 of its option to purchase, as set forth in Section
10 5 of the Lease-Option Agreement, and that the
11 payment of such an amount by the School District to
12 the Agency for the occupancy and purchase of the
13 Property is an amount which the Agency has
14 determined, based upon the current fair market
15 appraised value of the Property (e . g. $56, 000) , to
16 be fair, just and reasonable;
17
18 no further environmental review of the disposition
19 of the Property pursuant to the terms of the Lease-
20 Option Agreement is necessary at this time as
21 provided under the California Environmental Quality
22 Act, as amended, (See : 14 Code of California
23 Regulations Section 15323) , in light of the fact
24 that the Property is already used for the public
25 purposes for which it was specifically improved by
26 the Agency. Furthermore, the use of the Property
27 by the School District under the terms of the
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I Lease-Option Agreement will not involve any
2 physical alteration or change of the Property nor a
3 change in the character or use of the Property by
4 nonprofit public service providers which is
5 different from the public uses to which the
6 Property has been devoted for more than the past
7 three (3) years .
8
9 Section 3 . The Commission hereby approves the
10 disposition of the Property to the School District on the terms set
11 forth in the Lease-Option Agreement, and the Commission hereby
12 approves the Lease-Option Agreement in the farm attached hereto as
13 Exhibit "A. " The Chair of the Commission and the Agency Secretary
14 are hereby authorized and directed to execute the Lease-Option
15 Agreement on behalf of the Agency, together with any technical or
16 conforming changes as may be recommended by the Executive Director
17 and the Agency Counsel .
18
19 Section 4 . In the event that the Lease-Option
20 Agreement is not fully executed by the parties for any reason on or
21 before May 31, 1999, the authorization granted by this Resolution
22 for the Agency to enter into the Lease-Option Agreement shall be of
23 no further force or effect after such date unless this Section 4 is
24 amended or modified by separate action of the Commission to
25 authorize the completion of the full execution of the Lease-Option
26 Agreement to occur by a date no later than May 31, 1999 .
27
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I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING THE
2 DISPOSITION OF CERTAIN PROPERTY BY THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO TO THE SAN BERNARDINO CITY UNIFIED SCHOOL
3 DISTRICT (2204 SUNRISE LANE AND 2205 EAST 19TH STREET)
4
5 Section 5 . This Resolution shall take effect upon the
6 date of its adoption.
7
8 I HEREBY CERTIFY that the foregoing Resolution was duly
9 adopted by the Community Development Commission of the City of
10 San Bernardino at a meeting
11 thereof, held on the day of 1999,
12 by the following vote, to wit :
13
14 Commission : AYES NAYS ABSTAIN ABSENT
ESTRADA
15 LIEN
McGINNIS
16 SCHNETZ
DEVLIN
17 ANDERSON
MILLER
18
19
Secretary
20
The foregoing resolution is hereby approved this
21 day of 1999 .
22
23 Judith Valles, Chairperson
Community Development
24 Commission of the
City of San Bernardino
25
Approve o fo and legal content :
26
27 By. Agency Counsel
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1 STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
2 CITY OF SAN BERNARDINO )
3 I, Secretary of the Community
Development Commission of the City of San Bernardino, DO HEREBY
4 CERTIFY that the foregoing and attached copy of Community
Development Commission of the City of San Bernardino Resolution No.
5 is a full, true and correct copy of that now on file in
this office.
6 IN WITNESS WHEREOF, I have hereunto set my hand and
7 affixed the official seal of the Community Development Commission
of the City of San Bernardino this day of February, 1999 .
8
9
Secretary of the
10 Community Development Commission
of the City of San Bernardino
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I EXHIBIT "A"
2 LEASE-OPTION AGREEMENT
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0pV
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
3 THE CITY OF SAN BERNARDINO CLOSING A JOINT PUBLIC
HEARING AND AUTHORIZING THE DISPOSITION OF
4 CERTAIN PROPERTY BY THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO TO THE SAN
5 BERNARDINO CITY UNIFIED SCHOOL DISTRICT (2204
SUNRISE LANE AND 2205 EAST 19TH STREET)
6
7
WHEREAS, the City of San Bernardino ("City") is a municipal corporation an
8
charter city organized and existing pursuant to the constitution of the State of California; and
9
10
WHEREAS, the Redevelopment Agency of the City of San Bernardino (the
11
1, "Agency") owns certain real property commonly known as 2204 Sunrise Lane and 2205 East 19t
13 Street, San Bernardino (the "Property") which the Agency acquired and improved for use an
14 occupancy by public service providers of community-based programs; and
15
16
WHEREAS, the San Bernardino City Unified School District(the"School District")
17
has indicated an interest in acquiring a leasehold interest in the Property from the Agency, together
18
with an option to purchase the Property from the Agency, in order for the School District to use an
19
occupy the Property to provide certain public education-related community services from facilities
20
21 located on the Property; and
22
23 WHEREAS,the School District proposes to acquire such an interest in the Property
24 from the Agency on the terms and conditions set forth in that certain Lease Agreement dated as o
25
1 February 1, 1999 (the "Lease-Option Agreement"), by and between the School District and the
2 Agency. The Lease-Option Agreement is on file with the City Clerk.
3
4
NOW,THEREFORE,THE MAYOR AND COMMON COUNCIL OF THE CIT
s
6 OF SAN BERNARDINO,DO HEREBY RESOLVE,DETERMINE AND ORDER AS FOLLOWS:
7
8 Section 1. On April 19, 1999, the Mayor and Common Council of the City
9 conducted a joint public hearing with the Community Development Commission of the City, the
10 governing board of the Agency, in accordance with the provisions of Health and Safety Code
11 Sections 33431 and 33433, relating to the disposition and redevelopment of the Property by the
12
School District pursuant to the terms of the Lease-Option Agreement. The minutes of the City Clerk
13
shall include a record of all communications and testimony submitted to the Mayor and Common
14
Council by interested persons relating to this matter. The Mayor and Common Council hereby
15
16 acknowledge receipt of the Summary Report, dated March 29, 1999, which relates to this matter and
17 which was considered by the Mayor and Common Council during the joint public hearing.
18
19 Section 2. The Mayor and Common Council hereby acknowledge receipt of a
20 resolution entitled "RESOLUTION OF THE COMMUNITY DEVELOPMENT
21
COMMISSION OF THE CITY OF SAN BERNARDINO CLOSING A JOINT PUBLIC
HEARING AND AUTHORIZING THE DISPOSITION OF CERTAIN PROPERTY BY THE
23
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN
74
BERNARDINO CITY UNIFIED SCHOOL DISTRICT (2204 SUNRISE LANE AND 2205
25
EAST 19TH STREET)".
i Section 3. The Mayor and Common Council hereby authorize the Agency t
dispose of the Property to the School District pursuant to the Lease-Option Agreement.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
BERNARDINO CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING THE
DISPOSITION OF CERTAIN PROPERTY BY THE REDEVELOPMENT AGENCY OF THE
3 CITY OF SAN BERNARDINO TO THE SAN BERNARDINO CITY UNIFIED SCHOOL
DISTRICT (2204 SUNRISE LANE AND 2205 EAST 19TH STREET)
4
Section 4. This Resolution shall take effect from and after its passage an
5
6 adoption.
7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayo
8 and Common Council of the City of San Bernardino at a meeting thereof, held on
9 the day of , 1999, by the following vote, to wit:
10 Council: AYES NAYS ABSTAIN ABSENT
11 ESTRADA
LIEN
1, MCGINNIS
SCHNITZ
13 DEVLIN
ANDERSON
14 MILLER
15
16 City Clerk
17 The foregoing resolution is hereby approved this day of 11999.
1s
Judith Valles, Mayor
19 City of San Bernardino
20 Approved t orm a legal.content:
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22 City Attorney
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1 STATE OF CALIFORNIA )
2 COUNTY OF SAN BERNARDINO )
CITY OF SAN BERNARDINO )
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I, , City Clerk of the City of San Bernardino, D
4 HEREBY CERTIFY that the foregoing and attached copy of Mayor and Common Council of the
City of San Bernardino Resolution No. is a full,true and correct copy of that now on file
5 in this office.
6 IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official sea
7 of the Mayor and Common Council of the City of San Bernardino this day of
1999.
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9 City Clerk
City of San Bernardino
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LEASE AGREEMENT hT i�
THIS LEASE AGREEMENT is made this 15t day of April,
1999, by and between the Redevelopment Agency of the City of San
Bernardino, a public body, corporate and politic ("Agency") and the
San Bernardino City Unified School District, a school district
organized pursuant to California Education Code Section 36700 et
sea. ( "District") .
WITNESSETH
WHEREAS, the Agency is the owner of two community center
buildings at Arden-Guthrie, located respectively at 2204 Sunrise
Lane and 2205 East 19th Street, as more particularly described on
Exhibit "A" attached hereto and by this reference incorporated
herein (collectively, the "Property") ; and
WHEREAS, the District desires to lease, with an option to
purchase, the Property from the Agency in order to continue the use
of the Property for the provision of community services; and
WHEREAS, the Agency is agreeable to leasing the Property
to, and granting an option to purchase to, the District for the
benefit of the District and for the additional public benefit of
the community.
NOW, THEREFORE, THE AGENCY AND THE DISTRICT HEREBY AGREE
AS FOLLOWS :
Section 1 . Leased Property.
The Agency leases to the District, and the District
leases from the Agency, the Property.
Section 2 . Term.
The term of this Lease Agreement shall commence as of the
date first above written (the "Effective Date") and shall remain in
effect for a period of time equal to three (3) years from and after
the date hereof (the "Initial Term") The District shall be
entitled to assume possession of the Property and the use and
occupancy thereof immediately upon the Effective Date .
Section 3 . Lease Renewal .
The District shall have the right to extend the term of
this Lease Agreement for four (4 ) additional three-year periods
(each, an "Extended Term") provided that notice of the election by
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the District to extend the term hereof shall be delivered in
writing to the Agency in the manner required for notices to the
parties pursuant to Section 14 hereof at least sixty (60) days, but
no more than one hundred eighty (180) days, prior to the
termination of, as applicable, the Initial Term or an Extended
Term.
Section 4 . Rent .
On or before the first day of each calendar month during
the term hereof, the District shall pay to the Agency a monthly
rent of Five Hundred Dollars ($500 . 00) , as adjusted pursuant to the
next succeeding sentence . On each anniversary of this Lease
Agreement (a "Rent Adjustment Date") , the then current rent shall
be increased by an amount equal to the percentage change in the
price index level for the Los Angeles-Anaheim-Riverside Consumer
Price Index, All Urban Consumers, as published by the Bureau of
Labor Statistics of the United States Department of Labor, for the
most recent twelve-month period prior to the date the rent
increase is to go into effect, multiplied by the rent in effect on
the Rent Adjustment Date, but in no event less than one percent
( lo) (each, a "CPI Adjustment") .
Section 5 . Option to Purchase .
If the District is in possession of the Property
pursuant to this Lease Agreement at the end of the final Extended
Term allowable under Section 3 (the "Fifteen Year Date" ) , the
District shall have the right to purchase the Property from the
Agency for the sum of One Dollar ($1 . 00) . At any time prior to the
Fifteen Year Date, the District may purchase the Property for a
purchase price equal to the amount of rent remaining to be paid
from the date of exercise by the District of this option to
purchase through and including the Fifteen Year Date, excluding
future CPI Adjustments . The District may exercise this option to
purchase only upon the giving of notice in writing to the Agency of
the election to exercise at least thirty (30) days prior to the
date of exercise in the manner required for notices to the parties
pursuant to Section 14 hereof .
Section 6 . Use of Premises ; Subleases .
The Property is currently being used to provide community
services through the Emmerton Collaborative . During the Initial
Term and any Extended Term of this Lease Agreement, the District
shall continue the use of the Property to provide community
services through the Emmerton Collaborative . To that end, the
District may enter into one or more subleases of the Property with
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a member or members of the Emmerton Collaborative; provided,
however, that the term of any such sublease shall not extend beyond
the Initial Term, if the sublease is entered into during the
Initial Term, or beyond the applicable Extended Term, if the
sublease is entered into during said Extended Term. The terms and
condition of any such sublease (s) shall be subject to the approval
of the Agency, which approval shall not be unreasonably withheld.
Except as provided in the immediately preceding
paragraph, the District may not sell, encumber, convey, transfer
and/or assign any of its rights and obligations under this Lease
Agreement .
The District agrees that, in addition to the other
provisions set forth in this Agreement, every conveyance of the
Property, in whole or in part to the extent as permitted pursuant
to this Agreement, shall, in addition to any other covenants,
contain covenants on the part of the District, for itself, its
successors and assigns of the Property and which covenants shall be
covenants running with the land and shall bind the District, its
successors and assigns and all persons claiming under or through it
to effectuate the following: that there shall be no discrimination
against or segregation of any person or group of persons on account
of race, color, creed, religion, sex, marital status, national
origin, or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the premises to be conveyed, nor
shall the District or any grantees or sublessees or any persons
claiming under or through the District 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 in the premises
to be conveyed. This covenant shall run with the land, and shall
inure to the benefit of and be enforceable by the Agency, its
successors and assigns . Further, said covenant shall remain in
effect without limitation as to time and shall run in favor of the
Agency for the entire period during which said covenant shall
remain in effect without regard to whether the Agency has at any
time been, remains, or is an owner of any land or interest therein
to which said covenant relates . In the event of any breach, the
Agency shall have the right to exercise all the rights and remedies
available at law or in equity to enforce the curing of such breach.
It is the intent of the parties that the provisions of
the immediately preceding paragraph shall survive the termination
of the other operative provisions of this Agreement and as may
additionally be required by the Constitution and laws of the State
of California, including the Community Redevelopment Law (Chapter
1 of Division 24 of the California Health and Safety Code) .
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Section 7 . Repairs and Maintenance .
The District shall be responsible for maintenance and
management of the Property. The District shall provide adequate
maintenance and security for the Property at the same times and in
the same manner as is generally provided by the District for
buildings owned or leased by the District . The District shall,
without limitation, at its own expense, maintain and keep the
Property from the external walls of each building to its respective
property line and all external doors, adjacent sidewalls, roof and
exterior walls in a safe and maintained condition. The District
shall, without limitation, at its own expense, maintain and keep the
interior walls, electrical and utilities, plumbing, HVAC, living
quarters and furnishings and appliances, doors and windows within
the exterior walls of each building in a safe and maintained
condition.
Section 8 . Utilities .
The District shall provide, or cause to be provided, to
the Property, at its expense, all utilities, including water, sewer,
cable television service, telephone, gas, refuse collection and
electricity.
Section 9 . Indemnification and Hold Harmless .
The District shall at its expense defend, indemnify and
hold the Agency and the Agency' s Board members, officials, officers,
employees, agents, contractors, licensees and invitees harmless from
and against any and all claims, loss, liability, demands, suits,
claims of lien, damages (including consequential damages) , costs and
expenses (including, without limitation, all fines, penalties,
judgments, litigation expenses and experts ' and attorneys ' fees)
that are incurred by or asserted against them which arise out of or
are connected in any manner with non-performance or breach by the
District or its personnel or contractors of any term or condition
of this Lease Agreement during the term hereof (whether or not the
liability is alleged or fixed during the term or thereafter) , or
arising out of or in connection with the District ' s use of the
Property, any activity, work or things done, permitted or allowed
by the District in or about the Property, the District ' s or the
District ' s employees ' nonobservance or nonperformance of any
statute, law, ordinance, rule or regulation, or any negligence of
willful act or failure to act of the District or the District ' s
employees . The District shall be an independent contractor at all
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times during the term of this Lease Agreement not the agent of the
Agency for any purpose . Nothing contained herein and no direction
or notification from the Agency to the District shall be construed
so as to create a partnership, joint venture or agency relationship
between the parties hereto. The costs, salary and expenses of the
City Attorney and members of the City Attorney' s office in enforcing
this Lease Agreement on behalf of the Agency shall be considered as
"attorneys ' fees" for the purposes of this section.
Section 10 . Insurance .
The District agrees to procure and maintain in full force
and effect during the Initial Term of this Lease Agreement and any
Extended Term of this Lease Agreement, at the sole cost and expense
of the District, a policy of comprehensive general liability and
property damage insurance (including automobile, personal injury,
broad form contractual liability and broad form property damage)
under which the District is named as the insured and the Agency is
named as an additional insured and under which the insurer agrees
to indemnify and hold the Agency harmless from and against all cost,
expense and/or liability arising out of or based upon the
indemnification obligations of this Lease Agreement . The minimum
limits of liability shall be a combined single limit with respect
to each occurrence of not less than One Million Dollars
($1, 000, 000) . The policy shall contain a cross liability
endorsement and shall be primary coverage for the District and the
Agency for any liability arising out of the District ' s and the
District ' s employees ' use, occupancy or maintenance of the Property
and all areas appurtenant thereto . Such insurance shall provide
that it is primary insurance and not "excess over" or contributory
with any other valid, existing and applicable insurance in force for
or on behalf of the Agency. The Agency shall be given at least
thirty (30) days' prior written notice of any cancellation or
modification to the coverage limits of such policy of insurance .
Section 11 . Destruction of Premises .
If during the term hereof the premises are damaged or
destroyed by fire or other casualty, neither party shall have any
obligation to repair any portion of the premises and this Lease
Agreement shall be subject to immediate termination effective upon
receipt of notice of termination delivered by the terminating party
to the other party; provided, however, that if such damage or
destruction occurs during the final Extended Term allowable under
Section 3 hereof, and the loss to the Agency is fully covered by
insurance maintained by the District for the benefit of the Agency,
as provided in Section 10 hereof, the Agency shall, upon written
request therefor by the District in the manner required for notices
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to the parties pursuant to Section 14 hereof, repair said damage or
destruction, and this Lease Agreement shall continue in full force
and effect .
Section 12 . Event of Default; Termination Upon Event of Default .
Each of the following shall be an "Event of Default" by
the District and a material breach of the Lease Agreement :
(a) The failure by the District to make any payment of
rent required to be made by the District hereunder, as and when due,
where such failure shall continue for a period of three (3) days
after written notice thereof from the Agency to the District .
(b) The failure of the District to perform any of the
provisions of this Lease Agreement to be performed by the District,
other than described in subparagraph (a) above, where such failure
shall continue for a period of thirty (30) days after written notice
thereof from the Agency; provided, however, that if the nature of
the District ' s default is such that more than thirty (30) days are
reasonably required for its cure, then the District shall not be
deemed to be in default if the District commences such cure within
said thirty (30) day period and thereafter diligently pursues such
cure to completion .
Upon the occurrence of an Event of Default, this Lease
Agreement may, at the sole option of the Agency, be declared
terminated, whereupon the District ' s right of possession shall be
terminated and the District shall, within fourteen (14) days of the
delivery of written notice from the Agency in the manner required
for notices to the parties pursuant to Section 14 hereof that it has
declared the Lease Agreement terminated, surrender possession of the
Property to the Agency.
Section 13 . Expiration or Termination; Condition of Property.
Upon expiration or termination of the Lease Agreement,
the District shall deliver the Property to the Agency free and clear
of all tenants and/or encumbrances .
The District shall, upon the expiration or termination of
this Lease Agreement and for a period of time not to exceed fourteen
( 14 ) days thereafter, have the right to remove all furniture,
movable equipment and other items of personal property that are not
considered as fixtures and additions to the Property. Nothing shall
be removed by the District which is in any manner affixed or
attached to the floors or walls and the removal of which would
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render the Property less usable or would cause damage to any walls,
floors, ceilings or windows .
Section 14 . Notices .
Any and all notices required or permitted to be given
hereunder shall be in writing and shall be (i) personally delivered,
or (ii) mailed certified or registered mail, via United States
Postal Service, return receipt requested, postage prepaid, or (iii)
delivered by express delivery service or messenger service, or (iv)
dispatched through other electronic means or by verified fax
transmission, to the respective parties at the addresses indicated
below:
If to the District : Judith White
San Bernardino City Unified
School District
777 North "F" Street
San Bernardino, California 92401
Telephone : ( 909) 381-1100
Facsimile : ( 909) 889-7576
If to the Agency: Ronald E . Winkler
Development Director
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, California 92401
Telephone : ( 909) 384-5081
Facsimile : ( 909) 384-5216
Any party may change its address by delivery of notice to
the other party in the manner as set forth above .
Section 15 . Amendment; No Waiver .
This Lease Agreement may be amended or modified only by
a written agreement duly executed by authorized representatives of
both parties . Modifications or amendments to this Lease Agreement
must be approved by the official actions of both the Agency Board
and the governing board of the District . Failure on the part of
either party to enforce any provision of this Lease Agreement shall
not be construed as a continuing waiver of the right to compel
enforcement of such provision or provisions, and such failure to
enforce any provision of this Lease Agreement shall never constitute
nor be deemed to constitute an amendment to this Lease Agreement
without the official action of the parties to specifically approve
any such amendment .
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Section 16 . Governing Law; Litigation Costs .
This Lease Agreement shall be construed and enforced in
accordance with the laws of the State of California . Should any
action be brought in any court of competent jurisdiction, the
prevailing party in such action shall be entitled to reimbursement
by the other party for all reasonable attorneys ' fees, court costs
and other costs related to such litigation.
Section 17 . Severability.
If any of the terms, conditions, provisions or covenants
of this Lease Agreement shall to any extent be judged to be invalid,
unenforceable, void or voidable for any reason whatsoever by a court
of competent jurisdiction, each and all of the remaining terms,
conditions, provisions and covenants of this Lease Agreement shall
not be affected thereby and shall remain in full force and effect
and be valid and enforceable to the fullest extent permitted by
applicable law.
Section 18 . Entire Agreement .
Except as otherwise expressly provided herein, this Lease
Agreement constitutes the entire agreement between the parties
pertaining to the subject matter hereof and supersedes all prior and
contemporary agreements and understandings . The parties intend this
Agreement to be the final expression of their agreement with respect
to the terms hereof and a complete and exclusive statement of such
terms .
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IN WITNESS WHEREOF, the parties have duly executed this
Lease Agreement on the day and date first set forth in the
introductory paragraph hereof.
Redevelopment Agency of the City
of San Bernardino
By:
Title
(SEAL)
ATTEST :
Secretary
Approved as to Form
and Legal Content:
By: ) � ` 4 - IL-99
Agency Special Counsel
San Bernardino City Unified School
District
By
Title f;SST, SC/PLK'/N'TE/Ul� '%
Fo LiC' '4 IC&'-4 c- SGT:UrCC--�
(SEAL)
ATTEST :
Secretary
Approved as to Form
and Legal Content :
By.
District Counsel
P:\APPS\WPDATA\SBEO\0001\DOC\3430.WPD
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EXHIBIT "A"
LEGAL DESCRIPTION
Lots 6 and 7 of Tract No. 6969, in the City of San Bernardino, County of San Bernardino, State
of California, as per map recorded in Book 90 Page (s) 59 and 60 of Maps, in the office of the
County Recorder of said County.
P:\APPS\WPDATA\SBEO\0001\DOC\3430.WPD
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