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HomeMy WebLinkAboutRS1- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY Fly OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: RONALD E.WINKLER SUBJECT: PATTON PARK-SOCCER Development Director COMPLEX DATE: August 15, 1996 ------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On July 22, 1996,the Community Development Commission approved the project in concept,pending acceptable gap financing and negotiations on the Joint Development Agreement. Staff was instructed to bring the item back on August 5, 1996. On August 5, 1996,the Community Development Commission determined that the proposed financing plan was acceptable;(2)direct staff to contact prospective lenders regarding financing and bring back a report;(3)that a competitive bidding process supervised by the Director of Public Works be used. ------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Mayor&Common Council) (Community Development Commission) MOTION: That the Mayor and Common Council and Community Development Commission,(1)approve the Joint Development Agreement,lease and related documents and authorize their execution; and(2) authorize staff to proceed with financing as proposed. ------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Ronald E.Winkler/Adam Eliason Phone: 5081 Project Area(s): N/A Ward(s): Seven(7) Supporting Data Attached: ® Staff Report ❑ Resolution(s) ® Agreement(s)/Contract(s)❑ Map(s)❑ Memorandum FUNDING REQUIREMENTS: Amount: $3,269,036.00 Source: Park Funds/Bond Proceeds/Line of Credit Budget Authority: nested L SIGNATURE: C, Administrator onald E.W. der,Director Development ------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------ REW:lag:08-19-07.CDC COMMISSION MEE A MEETING DATE: Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------------------------------- Patton Park-Soccer Complex At the meeting of August 5, 1996,the Community Development Commission reviewed a report regarding financing for the subject project together with a joint development agreement and lease document. Based upon that review the Commission determined that project financing using the 201 North"E"Street building as security was acceptable and directed staff to contact lenders regarding financing. However,content of the development agreement was of some concern. Specific items at issue were: • The need for a competitive bid process under the direction of the Public Works Department to construct facilities. • The appropriateness of a construction management or supervision fee to Empire&Associates. • An appropriate level of compensation to Empire&Associates for packaging the CYSA lease commitment. • Principals in Empire A/G Recreation,LLC. • The extent of commitment to use local vendors. Attached is a letter from Empire&Associates,Inc.,detailing proposal changes to the agreement in response to issues discussed at the Commission meeting. Specific changes proposed include: COMPETITIVE BIDDING Empire agrees to a competitive bid process under direction of the Public Works Department. Empire would reserve the right to match the lowest bid received by the City and gain contract award. Empire's guaranteed maximum bid of $2,884,339 to build the soccer complex remains in place in the event no bids below that price are received through the competitive process. Also,should a third party contractor be selected through competitive bid,the City at its discretion has the right to hire Empire as construction supervisor for ten percent(10%)of the competitive bid cost. This would be subject to a service agreement approved by Council/Commission once that decision is made. COMPENSATION FOR CYSA LEASE The amount paid to Empire&Associates was based on the value provided to the City by CYSA assuming annual maintenance cost of the complex estimated at over$250,000 annually. Although further discussion between staff, CYSA and Empire A/G,occured following the last Commission meeting regarding the level of compensation they feel the$144,696 is warranted. Attached is their analysis of past negotiations and justification that the Commission requested. EMPIRE A/G RECREATION,LLC As noted in the Joint Development Agreement,this is a newly formed Limited Liability Corporation comprised of Empire&Associates,Inc.,David R.Willis,an individual,Don Regan,an individual and David E.Mlynarski,an individual. Empire&Associates,Inc.,will guarantee performance of the new corporation. ------------------------------------------------------------------------------------------------------------------ REW:lag:08-19-07.CDC COMMISSION MEETING AGENDA MEETING DATE: 08/19/1996 n Agenda Item Number: 5 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Patton Park - Soccer Complex August 13, 1996 Page Number-2- ----------------------------------------------------------------------------------------------------------------------- LOCAL VENDORS As can be seen by the attached letter,CYSA has agreed to use up to fifty percent(50%)local vendors. Staff wishes to note that CYSA is dependent upon concession revenue to pay facility operation and maintenance costs. Thus,discretion on their part is necessary. Since the last Commission meeting,staff has contacted a number of lenders and financial advisors regarding the mortgage revenue financing. The attached matrix summarizes alternatives for your consideration. It is our recommendation that use be made of the Agency's line of credit with Wells Fargo Bank. As can be seen from the matrix this appears as the most cost effective and timely approach available. Although drawing on the line of credit requires deposit of a like amount of Agency monies with Wells Fargo this should not be a problem since the Commission has already earmarked$4 million in bond proceeds for reserves. Finally,the Agency preserves the ability to use future tax increment growth,or other means to refinance the obligation at a later date. It is recommended that the Commission: 1. Approve the Joint Development Agreement,lease and related documents as attached and authorize their execution. 2. Authorize staff to proceed with financing as proposed. RONALD E.WINKLER,Director Development Department ------------------------------------------------------------------------------------------------------------------ REW:lag:08-19-07.CDC COMMISSION MEETING AGENDA MEETING DATE: 08/19/1996 Agenda Item Number: �N- c d mC M c c 7 2 O C 0 0 -o �+ a) O U O a) O 0-L'5 n. o) n. Z U Q O 0 C w a'0. 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Waco 0 LL xo� c > � c H 2. 0 2 W J ca M M cn cn ° o . • -`. : m 3 a G7 M w o n O '- rn rn& associatesr " o -n -� m rr� 0 3 August 8, 1996 W rn U) Mr. Tim Steinhaus City of San Bernardino Economic Development Agency 201 North E. Street, Third Floor San Bernardino,CA 92401 Re: Patton Park Soccer Complex Dear Tim, In light of the August 5th, City Council meeting,Empire &Associates,Inc. on behalf of CYSA-S and Empire Recreation A.G. would like to offer some insight to our position and some concessions by our group with regards to the Joint Development Agreement for Patton Park Soccer Complex. First and foremost, is the issue of final approval for the project. Because of strict time lines for future tournaments, CYSA-S must insist that complete approval or denial of the p roject be accomplished at the August 19, 1996 Commission meeting. Including but not limited to the financing package,business plan, lease and operating manuals as set forth. If approval is not completed on or before this time, CYSA-S must find other venues for it's future events. With regards to section 2 -G of the Joint Development Agreement,Empire will have the ability to match the lowest responsible bid to complete the project, for the amount of the low bid. In the event Empire cannot match the lowest responsible bid,Empire will receive a 10% Supervisor fee based on the construction amount at the City of San Bernardino's option. This allows Empire to complete the project without any additional costs to the City, unless the City deems it in the best interest of the project to have Empire's forces oversee the project should a different General Contractor be selected by the City. Also, section 3.5 of the JDA regarding local vendors,the language and agreement can be changed to reflect a 50% local participation in lieu of the 10% as stated. I would like, for the record,to state CYSA-S and Empire Recreation A.G. intentions with regards to becoming parties to the JDA and lease. Empire's participation in this agreement is precedent to CYSA-S commitment to the Agreement. Empire's contributions include soliciting, retaining and negotiating with CYSA-S and the City of San Bernardino to come to a mutually 12265 World Trade Drive,Suite H • San Diego,CA 92128 • (619)675-1003 FAX(619)675-1006 < LIC.589388 A�- I Page two beneficial lease and operating agreement. Furthermore,Empire will guarantee construction, design, engineering, CYSA-S specification compliance and scheduling construction at a cost not to exceed the amount stated in the agreement. CYSA-S in turn, will guarantee sanctioned participation as stated, maintain the complex,provide insurance for participants and spectators, manage the facility and maintain a reserve fund throughout the life of the lease. Again,I will reiterate Empire& CYSA-S intentions to this agreement are mutually inclusive, should either party be excluded, all of the benefits above will be void and shall not be part of this agreement. We, believe this agreement has great benefit to all panes involved and hope it can and will proceed without further delay. I also would like to state community support of this project is unparalleled in my development career,the correspondence and calls we have received in support of this project is unbelievable. Please do not hesitate to call if you have any questions or concerns. Sincerely, Empire&Associates, Inca CYSA-S vid R. Willis, President Ray Hot W,1, CYSA-S Tfesident cc: Councilwoman Norine Miller Don Regan,KOND Adam Eliason,EDA Roger Hardgrave, City of San Bernardino Tim Sabo, Sabo& Green Ron Winkler,EDA Annie Ramos,Parks and Recreation FILE No. 494 08/15 '96 16:41 I D:K 0 N & D 619 793 8340 PAGE 2 EMPIRE A/G RECREATION, LLC 12265 WoRr ML4i eDmve,Sums H•S,w Dum,CAMWOHA 92128•Pit:(619)67S-1003 FAx:(619)667-1006 August 15, 1996 Honorable Tom Minor Mayor of City of San Bernardino Honorable Edward Negrete Councilmember Honorable F.J.Curtin,M.D.Councilmember Honorable Rita Arias Councilmember Honorable David Oberhelman Councilmember Honorable Jerry Devlin Councilmember Honorable Betty Anderson Councilmember Honorable Norine Miller Councilmember 300 North"D"Street San Bernardino,CA 92418 Re: Patton Park(aka San Bernardino Municipal Soccer Sports Park) Dear Mayor Minor and Councilmembers: In response to requests for clarification,this letter explains the various calculations and valuations considered in establishing the amount of an appropriate real estate commission for Empire's work in creating,negotiating,and procuring the Patton Park proposal now before the City. HISTORY AND EVOLUTION To put this minor part of the overall transaction in proper perspective,a brief introduction is appropriate. In May 1995,while this Company's partners were in the EDA conference room on another matter,we observed a several hour grilling by then councilman Hernandez of various staff persons on the problems created by and money wasted on"Arden/Guthrie". After the meeting,with the other councilpersew and staff in attendance,we begin an informal brainstorming of what could be done to change the character of the neighborhood and at the same time staunch the City's six figure annual cash down-the-drain losses. Drawing on our collative experiences,we(including my partner Dave Willis'father who has been in the home building business since the end of World War II)quickly abandoned any idea of trying to improve the quality of the housing because this approach has never worked anywhere else. Next we tried several conmzercial ideas,but none fit,particularly in light of recent experiences on and around Highland Avenue. Empire AIG's consensus was inescapable;the only civic,economic,and permanent solution would be to create something brand new to start the area(and perhaps a whole segment of the City)in another direction. WHY NOT A MAJOR SPORTS(PARTICIPATION,NOT SPECTATOR)COMPLEX, ANCHORED BY A MAGNET ACTIVITY??? n, 1 FILE No. 494 08/15 '96 16:42 I D:K 0 N & D 619 793 8346 PAGE 3 Mayor Minor and Councilmembere April 13, 1996 Page 2 Consequently,over the uoxt few months,Empire AG,without cost to or support(other than staff conferences)ftm the City,tried many mixes and concepts(soccer;softball;sand volleyball;inlino skating; roller hockey;water park;etc.). During this time Empire imported representatives from these sports and sponsored and arranged several working sessions at the EDA. During this dialogue the availability of Patton Park emerged. For two reasons the focus shifted: 1. Patton Park's size,configuration,and accessibility make it&ideal soccer site;buildable at minimum cost. 2. Under the impetus of deed restrictions("use it or lose it"by 1999),the City could use the same dollars to accomplish several goals with one imaginative stroke. C,Y5A-South's Participation Work then began in interest with the focus on soccer.Drawing on our extensive experience with the United; States soccer community at local,regional,national and international levels,Dave Willis,Dave Mylanarski and I each put our knowledge of the infrastructure of the sport and contacts within the soccer community to work. Together we were able to obtain a Southern California soccer community interest in this project and focus on the Inland Empire as the ideal location. Empire presented(and vigorously advocated)the City of San Bernardino as 1k City within the Inland Empire,because,we urged,it has the best combination of resources,imagination.and timing. We suggested that CYSA-South aauld be the City's partner in this innovative endeavor. After an all day(Sunday)field trip organized by Empire and attended by all of CYSA-South's Board,all parties were enthusiastically determined to press ahead. The Joint Venture Agreement,hammered out during the ensuing months is the result. Empire and CYSA- South,together,present it for your approval. Con This presentation requires reality,not humility. Empire AG is not merely a yenta,but the creator and catalyst. CYSA-South is now a ready,willing and able joint venture participant. Recognition should be given and compensation measured accordingly. The attached memo detalls the alternatives considered and method used in setting this computation. Very truly yours, EMPIRE A!G RECREATION, By: �aml-r J/J J. Me er cc: CYSA-South Ann: Raymond P.Horspool,Jr.,President �.roereu,strhwm�kdou FILE No. 494 08215 '96 16:42 I D=K 0 N D 619 793 8340 PAGE 4 08-15-1996 02121PM FROM LBAINC. 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WAD dm 9otat"b•asi mivxftd h4hyl Y b tmdummDod tot Was ms r gj& MWeW s dhi am->tO�ho ewrrcdei who$..i.irteandw r0�r t+�easa w#Pl4ma md" l imu d ear Aaiidadm at�Matra iwadaR Atom A .eao:zwvmWa9rVmme P U+twaiadRld�tdltwaadodY�lmatiamiat�4u 46 $o QaaaJiwtiy ttadpt ds oapp d o6k 9oLeAok ad ��dW t<tbttl ZA tdtdl�'agott doe >ahz.aaoecaYe set—IV-. b 7be am 60W"W i"am b Ott!m dit%4 m MOM of oamm d do I ,dLT a4cro3ir a swad aredaq Dnora iwitftd d eYA atdbbttet i. �SioOsb etgli io esad ady as m�emattdeat Al m"cb( t W lbal M ko4v d and dem ata%s a b a w em stem DIM gy, d sdmaeao¢ �t f euc�oie ,TOTR- P.02 FILE No. 494 08/15 '96 16:43 ID:K 0 N & D 619 793 8340 PAGE 5 EMPIRE A/G RECREATION, LLC Patton Park Alternative Measures of Compensation From the beginning we at Empire understood that,because of the contingent nature of our efforts,time, company resources,and costs advanced were completely at risk. Only when,after the several mgnths' discussions had galvanized sufficient interest in CYSA-South to make it a participant iu the project,did we presmt a compensation package. Early this year,therefore,after reviewing with staff several measures by which compensation could be calculated,we presented a proposal requesting a$250,000 commission payable,as are all commercial real estate commissions,on execution of the contract(the Joint Venture Agreement). While not disagreeing with the methods by which compensation could be calculated,Staff suggested that we sharpen our pencils and cut the commission back. For reasons other than economic,we decided to do so,and also,to accommodate the budget,to accept payment in three increments. The alternative measures of compensation considered discussed are summarized below. To put the summary in context,attached is a copy of one of the United States most prominent commercial real estate brokerage companies,COLLIERS ILIFF THORNE'S Schedule of Sales and Lease Commissions. References in the following summary arc to this Schedule. 1. JOINT VENTURE More than anything else,this effort(project),is a joint ventures as reflected by the contributions of the three parties and the form of the basic agreement. The applicable reference for 4 joint venture is the second paragraph of item A in the attached Schedule. Using this formula: Total land 50 acres P,Qt&a Land Valuc,aRor dovclopmont into tho Conscrvntivoly,S4.00M. proposed soccer complcx Total Developed land value $174,000 per acre,$8,700,000 total Commission 3%of the land value PAYABLE ON EXECTMON OF THE JOINT VENTURE AGREEMENT 5435.000 ��� f FILE No. 494 08/15 '96 16:43 I D:K 0 N 8 D 619 793 8340 PAGE 6 2. STRAIGHT LEASE-SCHEDULE B If the transaction were to be considered a straight lease,rent could be correctly calculated by taking into account the maintenance payments to be made by CYSA-South(estimated at$250,000 per year for 20 years), 18a a conservative estimate of the additional tax revenues which the City would receive over the 20 year period(5220,000 per year or$4,400,000 NET NEW GENERAL.FUND REVENUES). Using the more conservative of the two lease schedules set out under paragraph B(Gross Lease),and combining lease payments and additional tax revenues as the truest measure of actual benefit to the City, the commission would be approximately.............. .._ S310-00 3. PERCENTAGE RENTAL-SCHEDULE B-7 Under this method rent is calculated as under a straight lease and then,after the third year,an additional 3%of the increase over the basic amount is calculated,and paid in advance. Under this formula the commission payable under alternative 2(Straight Lease)above could only increase. S310000++ 4. FINDER Another way to negotiate for the maximum fees payable would have been to equate Empire's services to those of a finder. There is no standard other than by reference to the total values involved and negotiation by which to set finder's foes. Consequently,it was suggested early on that a finder's fee formula would be inappropriate. This measurement is inappropriate for other reasons. By definition(Icgal and in the marketplace),a finder is one whose sole function is to introduce the parties and then step aside. Negotiations,services necessary to accomplish the goal,and similar items would be outside of and in addition to any finder's fee. Moreover,finders are not licensed. Here,each of Empire's principals is licensed. Empire was not only the procuring cause,but also a key element participating in the internal CYSA-South discussions,the Joint Venture Agreement negotiations,and,most significantly,lending its expertise as a general contractor and soccer field builder. 5. PROFESSIONAL SERVICES RENDERED;TIME SPENT; COSTS ADVANCED Another way to measure reasonable compensation would be to cumulate the individual and company professional services rendercd,including staff time devoted to the project,and costs advanced Briefly,a calculation using this measure would approximate the following: indent "Donald J. Rcgan P/C,time spent from inception(May,JL95}through anticipated execution of the Joint Venture Agreement and all exhibits. 345 hours x$250 $86,250 Costs(phone,fax,copy,T&E; financial projections and consultants) $7,500 Total $93,750 a � FILE No. 494 08x15 '96 16=44 ID=K 0 N & D 619 793 8340 PAGE 7 Empire 8t Associates,Inc. Consulting services(Willis) 450 hours x$100 $45,000 Staffpayn=t,expenses advanced (estimate without charging anything to G&A) $30,000 Total $75.000 Mapco Engineering and Consulting Services (Mylanarski) 220 hours x$100 $22,000 Renderings,costs advanced,phone, fax,copy,T&E $12.000 Total $34,000 , GRAND TOTAL 5202,750 + •To this amount would be added a premium,(typically 33 1/3%)to reflect the risk(contingent nature of the services provided and costs advanced), 6. PAYMENT OF EARNED COMMISSIONS Using any measure of compensation,commissions are paid immediately on execution and delivery of the basic document(Joint Venture Agreement). 7. CALCULATION AND NEGOTIATION OF COMMISSION HERE The pertinent measures suggest a commission ranging from$435,000 to$202,750,payable on signing. To be conservative,however,and in response to pertinent suggestions,and requests,the measure chosen was a straight lease using the lower commission schedule(Net lease)and only CYSA-South's maintenance payments to equate to rent. Neither additional revenues to the City's General Fund nor the certain decrease in infrastructure and keep-the-peace Arden/Guthrie expenditures were considered. We then agreed to cut the commission in half,resulting in a final figure of$155,000. At the time these negotiations were concluded,however,calculations were made on then estimated lease payments,revenues,and costs,so a non-rounded off amount(S 144,696)was the ultimate amount designated. Recently,in response to further requests,and to accommodate the budget,we agreed to accept payment in 3 installments. The Joint Venture Agreement,as signed,now reflects this commission and time of payment. Thank you. RECORDING REQUESTED BY: THE CITY OF SAN BERNARDINO AND WHEN RECORDED RETURN TO: SABO & GREEN, A Professional Corporation 23801 Calabasas Road, Suite 1015 Calabasas, California 91302-1595 (Space Above for Recorder' s Use) JOINT DEVELOPMENT AGREEMENT (Patton Park Recreational Facility) By and Among THE CITY OF SAN BERNARDINO, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and EMPIRE A/G RECREATION, LLC TABLE OF CONTENTS Pae Section 1 . Public Purpose . . . . . . . . . . . . . . . . . 4 Section 2 . Empire ' s Obligations . . . . . . . . . . . . . . 4 Section 3 . City' s Obligations . . . . . . . . . . . . . . . 6 Section 4 . Agency' s Obligations . . . . . . . . . . . . . . 8 Section 5 . Certificate of Completion . . . . . . . . . . . 8 Section 6 . Enforced Delay; Extension of Time . . . . . . . 9 Section 7 . Sales or Transfer of Rights Hereunder . . . . 10 Section 8 . Notice of Sales and Transfer . . . . . . . . . 10 Section 9 . Local, State and Federal Laws . . . . . . . . 10 Section 10 . Plans and Specifications . . . . . . . . . . . 11 Section 11 . Events of Default . . . . . . . . . . . . . . 11 Section 12 . Remedies . . . . . . . . . . . . . . . . . . . 12 Section 13 . Obligation to Obtain Financing . . . . . . . . 13 Section 14 . Notices . . . . . . . . . . . . . . . . . . . 13 Section 15 . Applicability of Laws; Dispute Resolution 15 Section 16 . Obligation to Refrain from Discrimination 16 Section 17 . Form of Discrimination and Nonsegregation 16 Section 18 . Indemnification . . . . . . . . . . . . . . . 17 Section 19 . Inspection of Books . . . . . . . . . . . . . 17 Section 20 . Insurance . . . . . . . . . . . . . . . . . . 18 Section 21 . Successors and Assigns; Assignment . . . . . . 19 Section 22 . Entire Agreement; Amendment . . . . . . . . . 19 Section 23 . Severability . . . . . . . . . . . . . . . . . 19 Section 24 . Section Headings . . . . . . . . . . . . . . . 19 Section 25 . Meaning of Terms . . . . . . . . . . . . . . . 19 Section 26 . Effective Date of Agreement; Execution; Term 20 Attachments EXHIBIT "A" - Legal Description of the Property EXHIBIT "B" - Scope of Development EXHIBIT "C" - Lease EXHIBIT "D" - Operations Manual EXHIBIT "E" - Schedule of Performance EXHIBIT "F" - Certificate of Completion EXHIBIT "G" - Construction Cost Budget SBEO/0001/DOC/3067.14 8/14/96 3:00 ew JOINT DEVELOPMENT AGREEMENT (Patton Park Recreational Facility) This Joint Development Agreement ("Agreement" ) is entered into this day of August, 1996, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("City") , THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic ( "Agency" ) , and EMPIRE A/G RECREATION, LLC, a California Limited Liability Corporation ( "Empire" ) , comprised of Empire & Associates, Inc . , a California Corporation, David R. Willis, an individual, Donald J. Regan, an individual, and David E. Mlynarski, an individual . RECITALS WHEREAS, the City previously acquired a fifty (50) acre parcel of real property ( "Property" ) from the State of California ("State" ) located in the northeast portion of the City near the Highway 30 Highland Avenue Exit and commonly known as Patton Park, as legally described in Exhibit "A" , attached hereto and incorporated herein by this reference; and WHEREAS, the Property is under the responsibility of the City Parks, Recreation and Community Services Department ( "Parks Department" ) ; and WHEREAS, portions of the Property are currently utilized as a community garden; and WHEREAS, the City' s acquisition of the Property was conditioned inter alia upon the City' s promise to develop the Property into a public park and recreational facility, and upon the City' s promise to apply funds received from a sale of the Property to recreational facilities in the City; and WHEREAS, Empire intends to develop the Property by undertaking the removal of the existing community garden which is currently located on the Property, the removal of existing structures (including any asbestos contained therein if necessary) - 1 - from the Property, and the construction of a public recreational facility on the Property consisting of sixteen (16) soccer fields with ancillary buildings, parking and related landscaping ( "Improvements" ) , in accordance with the Scope of Development, attached hereto as Exhibit "B" and incorporated herein by this reference ( "Project" ) ; and WHEREAS, it is anticipated that in addition to the sixteen (16) soccer fields described above, the public recreational facility will consist of two (2) soccer fields and parking, located in the Emmerton Elementary School adjacent to the Property, and which the City will use its best efforts to cause the San Bernardino Unified School District ( "School District" ) to make available on an as needed basis; and WHEREAS, the City intends to assist in the development of the Project by directly financing or causing to be financed through the Agency the costs incurred by Empire to construct and install the Improvements, via: (i) the allocation of Patton Park Recreation Funds in an amount not to exceed $500, 000 . 00; (ii) the allocation of the proceeds of previously issued Tax Allocation Bonds ( "TABs" ) in an amount not to exceed $1, 000, 000 . 00; and (iii) the allocation of other available City funds, or issuance of a new debt obligation in the form of Lease Revenue Bonds, Mortgage Revenue Bonds, or Certificates of Participation, in an amount not to exceed $1; 500, 000 . 00, including capitalized interest, underwriter' s discount, and cost of issuance ( "New Debt Obligation" ) ; and WHEREAS, Empire further intends to obtain the California Youth Soccer Association-South' s ( "CYSA-S") nominee ' s commitment to enter into a twenty (20) year Lease, the effective date of which shall be no later than August 1, 1997 ( "Lease" ) , relative to the Project for the purposes of conducting the CYSA-S ' s annual recreational and competitive league programs and tournaments, approving the City' s issuance of recreational use permits to organized groups, persons, firms, corporations or societies whose use in CYSA-S' s nominee' s opinion will not damage the Property, and operating and maintaining the Property in accordance with the terms and conditions set forth in the Lease, attached hereto as Exhibit "C" and incorporated herein by this reference; and - 2 - WHEREAS, CYSA-S' s nominee shall have the right to conduct its annual recreational and competitive league tournaments on the Property on an exclusive basis; and WHEREAS, CYSA-S ' s nominee shall have the right to conduct its annual recreational and competitive league programs on the Property on a not to exceed sixty-four (64) hours per seven (7) day week basis, to be determined by CYSA-S ' s nominee in its sole discretion; and WHEREAS, during such time as CYSA-S ' s nominee is not conducting its annual recreational and competitive league programs, the Property shall remain open for public access (including, without limitation, organized groups, persons, firms, corporations or societies who have obtained recreational use permits from CYSA- S' s nominee on a first come first serve, permit only basis, to be mutually determined by the Parks Department and CYSA-S' s nominee; and WHEREAS, the Property is in public ownership and public access to the Property may create the need for the establishment of rules of conduct and other regulatory measures; and WHEREAS, the issuance of recreational use permits to organized groups, persons, firms, corporations or societies other than CYSA-S' s nominee shall be in accordance with the procedures used by the Parks Department in connection with other City parks, and all users of the Property other than CYSA-S' s nominee shall comply with the provisions of Chapter 12 . 80 of the City' s Municipal Code relative to public parks and recreational facilities ( "Chapter 12 . 8011 ) ; and WHEREAS, the Operations Manual, attached hereto as Exhibit "D" and incorporated herein by this reference, which has been developed and jointly agreed upon by the Parks Department and CYSA-S' s nominee, establishes criteria relative to the operation of the Property by CYSA-S' s nominee, including without limitation, the criteria defined in Chapter 12 . 80; and WHEREAS, inasmuch as excessive use of the turf areas of the Property may cause damage or eradication of the turf, the parties to this Agreement and the Exhibits hereto have determined that a turf management program which addresses usage shall be jointly - 3 - developed and jointly agreed upon by the Parks Department and CYSA- S' s nominee; and WHEREAS, the City has determined that the development of the Property in accordance with this Agreement shall benefit the City by reducing blight within a portion of the City, increasing tax revenues for the City, decreasing the cost to the City of providing general services, fulfilling the City' s obligation to develop the Property into a public park and recreational facility, and creating employment opportunities for approximately ten (10) persons; and WHEREAS, Empire has demonstrated its ability to complete the Project to the City' s satisfaction, and CYSA-S intends to hold its programs and events on, and operate and maintain the Property for a period of twenty (20) years . NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS : Section 1 . Public Purpose . The City and Empire agree that completion of the Project shall be undertaken for the common benefit of the parties hereto and the residents of the City to reduce blight, increase tax revenues, decrease the cost of providing general services, fulfill the obligation to develop the Property into a public park and recreational facility, and create employment opportunities within a portion of the City. Therefore, completion of the Project will be of benefit to the City and shall improve, upgrade, and revitalize, both economically and physically, a portion of the City. Section 2 . Empire ' s Obligations . A. Except as otherwise provided herein, Empire shall cause the removal of the existing community garden which is currently located on the Property, the removal of existing structures (including any asbestos contained therein) from the Property, including without limitation, the storage compartments, and the construction and installation of all Improvements comprising the Project, not to exceed the Construction Cost Budget, attached hereto as Exhibit "G" and incorporated herein by this reference . B. Empire shall pay any and all fines that may be levied against the Property or the Project as a result of Empire' s actions or omissions . 4 - C. Empire shall complete the removal of the existing community garden which is currently located on the Property, the removal of existing structures (including any asbestos contained therein if necessary) from the Property, and the construction and installation of the Improvements on the Property, no later than May 1, 1997, subject to any extensions of time mutually agreed upon in writing by the parties hereto. D. Empire and its officers, contractors, agents and representatives shall keep the Property free and clear from, and shall indemnify, defend and hold the City and the Agency harmless against, any and all liens, claims, and demands for work performed, materials furnished, or operations conducted on the Property at all times during which Empire is performing its obligations as set forth in Section 2 .A above . Empire' s agreement to indemnify, defend and hold harmless shall also include incidental or consequential damages to the City or the Agency. E. Empire shall also obtain CYSA-S ' s nominee ' s commitment to enter into the twenty (20) year Lease of the Property for the purposes of holding CYSA-S ' s annual recreational and competitive league programs and tournaments thereon, approving the City' s issuance of recreational use permits to organized groups, persons, firms, corporations or societies whose use in CYSA-S' s nominee' s opinion will not damage the Property, and operating and maintaining the Property in accordance with the terms and conditions set forth in the Lease . F. A substantial portion of the consideration for the City and the Agency to assist in the development of the Property is the agreement of Empire to complete the Project in accordance with the Scope of Development, including the removal of the existing community garden which is currently located on the Property, the removal of existing structures (including any asbestos contained therein) from the Property, including without limitation the storage compartments, the construction and installation of the Improvements on the Property, no later than May 1, 1997, and the commencement of CYSA-S ' s nominee ' s Lease of the Property no later than August 1, 1997 . Empire hereby acknowledges that neither the City' s obligations described in Section 3 , nor the Agency' s obligations described in Section 4 shall arise unless and until CYSA-S ' s nominee has executed the Lease . Removal of the existing - 5 - community garden which is currently located on the Property, removal of existing structures (including any asbestos contained therein) from the Property, execution of the Lease, and construction and installation of the Improvements on the Property, shall be performed within the times specified in the Schedule of Performance, attached hereto as Exhibit "E" and incorporated herein by this reference, subject to any extensions of time agreed upon by the parties hereto. Completion of the Project (except for any normal and customary tenant improvements and minor "punch list" items) shall be evidenced by the issuance of the Certificate of Completion, attached hereto as Exhibit "F" and incorporated herein by this reference. G. Empire shall in conjunction with CYSA-S prepare the Project for bidding in accordance with the Rules for Bidding (Exhibit "D" to the Lease) . Empire shall submit a bid in the amount of the hard construction costs ($2, 884, 339 . 50) set forth in the Construction Cost Budget . In the event Empire is the lowest responsible bidder, Empire : (i) guarantees that it will construct and install the Improvements on the Property to CYSA-S' s satisfaction in accordance with the Construction Cost Budget, and for the amount of the hard construction costs ($2 , 884 , 339 . 50) set forth therein; and (ii) waives any and all protections to which it would otherwise be entitled under the Public Contracts Code . In the event Empire is not the lowest responsible bidder, Empire shall have the right to match the lowest responsible bid. In the event Empire does not elect to match such bid, the City at its sole option may award the Project to the lowest responsible bidder and administer the Project as a City Public Works Project, or pay Empire a supervisorial fee up to a maximum of 100 of the lowest responsible bid, not to exceed $288, 433 . 95 . Section 3 . City' s Obligations . A. Subject to the terms and conditions set forth herein, and upon CYSA-S ' s execution of the Lease, the City hereby agrees : (i) to assist in the development of the Project by directly financing or causing to be financed through the Agency the costs incurred by Empire to install and construct the Improvements via the allocation of Patton Park Recreation Funds in an amount not to exceed $500, 000 . 00, the allocation of previously issued TABS in an amount not to exceed $1, 000, 000 . 00, and the allocation of other available City funds, or the issuance of the New Debt Obligation; - 6 - (ii) that in the event the City determines it appropriate to issue the New Debt Obligation, the City will consider using Kinsell, O'Neal, Newcomb, & DeDios as the underwriter of such New Debt Obligation; and (iii) to pay Empire a real estate commission in an amount not to exceed One Hundred Forty Four Thousand Six Hundred Ninety Six Dollars ($144, 696 . 00) as follows : (i) one-third (1/3) of the commission shall be paid upon execution of this Agreement so as to allow Empire to prepare the Project for bidding; (ii) one-third (1/3) of the commission shall be paid upon the City' s execution of the Certificate of Completion, CYSA-S' s approval of the construction and installation of the Improvements on the Property, and the effective date of the Lease; and (iii) one-third (1/3) of the commission shall be paid one year after the effective date of the Lease . B . The City shall establish a budget, sources of financing, and a financing plan for the Project . C. The City shall take all necessary steps required to terminate any and all interests in the existing community garden which is located on the Property. D. The City shall cooperate with Empire in obtaining necessary land use permits, zone changes and specific or general plan amendments as may be required to develop, construct and operate the Project on the Property. E. The Parks Department and Engineering Department shall cooperate with Empire in the review and approval process relative to the Property, including without limitation, landscape and sports facilities plans . F. The Parks Department shall cooperate with CYSA-S' s nominee in developing and agreeing upon a turf management program which addresses the appropriate extent of usage of the turf areas of the Property. G. The City shall enter into the Lease with CYSA-S ' s nominee . The Director of Public Works/City Engineer shall conduct the public bidding process in accordance with the Rules for Bidding. 7 - H. The City shall use its best efforts to obtain the lowest rates available for water and electricity, and its best efforts to ensure that such rates are maintained during the Term and the Extended Term of the Lease (as defined therein) . I . The City shall use its best efforts to cause the School District to make available on an as needed basis two (2) soccer fields and parking, located in the Emmerton Elementary School adjacent to the Property. J. The City hereby represents that to the best of its present understanding, the total amount of fees which are set forth in the Construction Cost Budget, constitutes the total fees to be collected by the City with respect to the Property and the Project . K. Any fees, assessments, exactions or requirements imposed by the City shall be the responsibility of the City, which may defer or waive such fees, assessments, exactions or requirements . However, in no event shall such deferral or waiver serve to prevent or inhibit construction of the Project . Any fees, assessments, exactions or requirements imposed by any other municipality or by any utility company, including without limitation, Southern California Edison, Pacific Bell or the East Valley Water District shall not exceed the amount of Connection Fees as set forth in the Construction Cost Budget . Section 4 . Agency' s obligations . Subject to the terms and conditions set forth herein, and upon CYSA-S ' s nominee ' s execution of the Lease, the Agency shall cooperate with Empire in expediting the completion of the Project by providing an appropriate Agency staff liaison to assist Empire with respect to planning, landscaping and architectural matters, and in order to establish a timetable for City and Parks Department processing and approval of plans and specifications . In performing its obligations, the Agency shall consider all possible impacts on the Emmerton Elementary School resulting from the proposed use of the Property, and in light of the fact that the Emmerton Elementary School is a year round school . Section 5 . Certificate of Completion. The City shall promptly furnish and provide a Certificate of Completion to Empire following (i) compliance by Empire with the terms of this Agreement; (ii) completion of the Project in accordance with all - 8 - applicable laws, ordinances, rules and regulations, including the City' s Municipal Code; (iii) receipt by the City of a written request from Empire for a Certificate of Completion; and (iv) presentation to the City of a copy of a Certificate of Occupancy for the Property. The Certificate of Completion shall certify that removal of the existing community garden which is currently located on the Property, removal of existing structures (including any asbestos contained therein if necessary) from the Property, including without limitation, the storage compartments, and construction and installation of the Improvements on the Property required by this Agreement, has been completed in accordance with the City' s Municipal Code to the satisfaction of the City (except for any normal and customary tenant improvements and minor "punch list" items) . Upon issuance of the Certificate of Completion by the City, each of the covenants, restrictions, warranties, and conditions contained in this Agreement relating to removal of the existing community garden which is currently located on the Property, removal of existing structures (including any asbestos contained therein) from the Property, including without limitation, the storage compartments, and installation and construction of the Improvements on the Property, shall be deemed satisfied and terminated (except for any normal and customary tenant improvements and minor "punch list" items) . Section 6 . Enforced Delay; Extension of Time. Performance by Empire to complete the Project no later than May 1, 1997 shall not be deemed to be in default and such performance shall be extended when delays are due to: acts of God; strikes, lockouts or other industrial disturbances; delays in obtaining materials or labor which are through no fault of Empire, shortages of materials or labor or acts of public enemies; orders of any kind of the Government of the United States or of the State of California or any department, agency, political subdivision, court or official of any of them, or any civil or military authority; insurrections; riots; epidemics; landslides; lightning; earthquakes; volcanoes; fires; hurricanes; tornadoes; storms; floods; washouts; droughts; arrests; restraint of government and people; civil disturbances; explosions; breakage or accident to machinery; partial or entire failure of utilities; or any cause or event not reasonably within the control of Empire when Empire is unable, in whole or in part, to perform any one or more of its obligations contained in this Agreement . Empire shall, for the time of said delay or such longer period as shall be agreed upon in - 9 - writing by the City not be deemed in default of this Agreement pursuant to Section 11 herein during the delay causing Empire ' s inability to continue its performance hereunder. Empire shall make all reasonable efforts to remedy the cause or causes preventing Empire from performing their obligations hereunder; provided that the settlement of strikes, lockouts, and other industrial disturbances shall be entirely within the discretion of Empire who shall not be required to settle strikes, lockouts, and other industrial disturbances by acceding to the demands of the opposing party or parties when it is in the judgment of Empire that such course would be unfavorable to Empire . The completion of the Project by Empire and the operation and maintenance of the Property by CYSA-S ' s nominee shall assist the City in complying with its obligation to the State to develop the Property into a public park and recreational facility. Therefore, Empire shall take all reasonable steps to complete the Project no later than May 1, 1997 . Completion of the Project shall mean the date when the City approves the issuance of a Certificate of Completion, provided that such approval shall not be unreasonably withheld. Section 7 . Sales or Transfer of Rights Hereunder. Empire hereby covenants and agrees not to sell, transfer, assign or otherwise dispose of its rights under this Agreement without obtaining the prior written consent of the City. Section 8 . Notice of Sales and Transfer. Notwithstanding any provision herein, Empire shall notify the City in writing of any sale or transfer of its rights under this Agreement prior to the consummation of such sale or transfer. Such notice shall contain the name, address, and formal description of the entity so acquiring such rights . Section 9 . Local . State and Federal Laws . Empire shall carry out the Project and all related activities on the Property in conformity with all applicable laws, including federal and state labor standards, prevailing wage requirements and public bid procedures . Empire and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws, rules, standards or procedures . Unless otherwise exempt pursuant to state or federal law, Empire, its contractors, - 10 - and subcontractors shall pay prevailing wages to anyone employed in connection with completion of the Project . Section 10 . Plans and Specifications . Empire agrees that the plans and specifications prepared for the grading and preparation of the Property, including without limitation the landscape and sports facilities plans, shall be submitted to the Engineering Department or other appropriate department of the City for approval prior to commencement of construction. Said plans and specifications shall, in all respects, be consistent with this Agreement, and all appropriate plans or building standards of the City. In the event said plans and specifications are not reasonably acceptable to the City, although in compliance with this Agreement, Empire shall amend or modify said plans and specifications or submit such further or additional plans and specifications as may reasonably be required by the Engineering Department or other appropriate department of the City. The plans and specifications approved by the City shall not be amended or modified in any material respect subsequent to such date of approval without the prior written consent of either or both the City or the Agency, as applicable . The City shall use its best efforts to assure that the approvals set forth in this Section are not unreasonably withheld or delayed. Section 11 . Events of Default . "Event of Default" means any one of the following events regardless of : (i) the reason for such Event of Default and (ii) whether such Event of Default is voluntary, involuntary or by operation of law pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body superior to the City or the Agency. (a) Default in the performance of this Agreement or breach of any provision contained herein by Empire and continuance of such default or breach for a period of thirty (30) calendar days after the City or the Agency has given notice to Empire, as specified in Section 14 herein, requiring such Event of Default to be remedied and stating that such notice is a "Notice of Default" hereunder; (b) The entry of a decree or order by a court having jurisdiction adjudging Empire bankrupt or insolvent or approving, as properly filed, a petition seeking a reorganization, or relief under the Federal Bankruptcy Act or any other applicable federal or - 11 - state law, or appointing a receiver, liquidator, assignee, trustee, sequestrator or other similar official, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of thirty (30) calendar days; or (c) The institution by Empire of proceedings to be adjudged bankrupt or insolvent or the consent by either Empire to the institution of bankruptcy or insolvency proceedings against it, or the filing by Empire of a petition, answer or consent seeking reorganization or relief under the Federal Bankruptcy Act or any other applicable federal or state law, or the consent by Empire to the filing of any such petition or appointment of a receiver, liquidator, assignee, trustee, sequestrator or other similar official, or the making of an assignment by Empire for the benefit of its creditors, or the admission by Empire in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by Empire in furtherance of any such action. Section 12 . Remedies . A. Reimbursement to City. In the event that Empire fails to perform any of its obligations or breaches any of the covenants contained herein subject to the acts of force majeure as provided in Section 6 herein, Empire shall, at the option of the City and upon demand by the City to Empire, immediately reimburse the City amounts paid to Empire since execution of this Agreement . B . Cumulative Remedies . As a further and cumulative remedy, Empire agrees for itself, its legal representatives, successors, and assigns, that the City, the Agency, and their respective successors and assigns, shall have the right and power to: (i) institute and prosecute any proceeding at law or in equity to enforce any covenant and obligation herein contained, (ii) enjoin the threatened or attempted violation by Empire, its legal representatives, successors, tenants, and assigns, and (iii) collect damages from the aforesaid who violate the covenants and obligations contained herein. In addition, Empire hereby covenants for itself, its legal representatives, successors, and assigns to grant the City and the Agency such rights and powers to institute and prosecute such proceedings . 12 - The remedies set forth in this Section shall be in addition to any and all other remedies available to the City and the Agency under this Agreement or as a matter of law. The parties acknowledge and agree that the City and the Agency may exercise any and all legal and equitable remedies available to the City and the Agency under the laws of the State of California to enable the City and the Agency to exercise the rights of the City and the Agency hereunder and to enforce the provisions of this Agreement including, but not limited to, those which are contained in this Section. Upon written demand of the City or the Agency, Empire agrees to pay all costs, fees and expenses of the City incurred in connection with enforcement by the City or the Agency of the provisions of this Section or in seeking any of the remedies legally available to the City or the Agency related to this Agreement, including but not limited to reasonable attorneys ' fees, court costs, and any costs attributable to City or Agency staff time . C. Rights and Remedies of Empire. In the event that the City or the Agency fails to perform any of their respective obligations or breaches any of the covenants contained herein, Empire may exercise all legal and equitable remedies available to Empire under the laws of the State of California and Empire shall be entitled to reimbursement of reasonable attorney fees, court costs, and related costs . Section 13 . Obligation to Obtain Financing. The City shall have no obligation to provide any form of financial assistance to Empire in connection with development of the Property or completion of the Project except as specifically provided in Section 3 herein. Section 14 . Notices. All notices and demands of any kind which any party hereto may be required to serve upon any other party under the terms of this Agreement shall be served in writing by personal service or by leaving a copy of such notice or demand at the address hereinafter set forth, whereupon service shall be deemed complete and notices and demands shall be deemed to have been received on the date of such personal service; or by mailing a copy thereof by certified or registered mail, postage prepaid, - 13 - airmail if the address is outside the state in which the same is mailed, return receipt requested, addressed as follows : To the City: City of San Bernardino 300 North "D" Street San Bernardino, California 92418 Attention: Mayor Tom Minor With Copy To: City of San Bernardino 300 North "D" Street San Bernardino, California 92418 Attention: James F. Penman, City Attorney To the Agency: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Third Floor San Bernardino, California 92401-1507 Attention: Timothy C. Steinhaus With Copy To : Sabo & Green, A Professional Corporation 23801 Calabasas Road, Suite 1015 Calabasas, California 91302-1595 Attention: Edward W. Pilot To Empire : Empire A/G Recreational, LLC 12265 World Trade Drive, Suite H San Diego, California 92128 Attention: David R. Willis With Copy To: Donald J. Regan, P/C 245 Fischer Avenue, Suite D-1 Costa Mesa, California 92626 Service shall be deemed complete and notices and demands shall be deemed to have been received at the expiration of the third calendar day after the date of mailing, notwithstanding any other date for receipt set forth on any return receipt or the failure of any party to receive a return receipt . The addresses to which notices and demands may be delivered or sent may be changed from time to time by service of notice as hereinabove provided by any party upon the other party. - 14 - Section 15 . Applicability of Laws : Dispute Resolution. This Agreement shall be construed and enforced in accordance with the laws of the State of California. If any dispute shall arise concerning the provisions of this Agreement including, but not limited to, those provisions set forth in the Scope of Development attached hereto, such dispute shall be submitted to reference pursuant to Code of Civil Procedure Sections 638 to 645 . 1, inclusive, or, alternatively, to arbitration, on written notice of demand for arbitration ( "Notice of Demand" ) of either party hereto given to the other. The arbitration shall be conducted pursuant to the provisions of Title 9 of Part 3 of the California Code of Civil Procedure (statutory section references in this Section shall be deemed to be references to the Code of Civil Procedure) , as amended, amplified and modified by the following provisions : The arbitration shall be by a single neutral arbitrator. If the parties hereto have not agreed on the selection of the arbitrator within five (5) calendar days after giving of Notice of Demand, then either party hereto may petition the court to select the arbitrator pursuant to Section 1281 . 6 . Each party hereto shall submit its nominees, if any, to the court within five (5) calendar days after said petition is served and filed. The arbitrator shall make his award within forty-five (45) calendar days after his appointment . Certain periods of time set forth in said Title 9 shall be shortened as follows : Section 1284 , 1288 .4 , 1290 . 2 and 1290 . 6--halved; Section 1288--four (4) years to sixty (60) calendar days, and one hundred (100) days to thirty (30) calendar days; and Section 1288 . 2--one hundred (100) days to thirty (30) calendar days . Venue of the arbitration hearing and any court proceedings referenced below shall be in the county where the Property is located. The parties hereto as parties to any such arbitration shall have the right to petition the court to confirm, correct or vacate the arbitrator' s award pursuant to Section 1285 and to appeal the decisions of the Superior Court in any such proceeding as provided in Section 1294 and 1294 .2 ; provided, however, that any such appeal shall not stay or have the effect of staying the decision of the Superior Court . The costs of the arbitration and reimbursement to the other party for any and all legal fees related thereto pursuant to this Agreement, shall be borne by the losing party or in such proportions as the arbitrator shall decide . Nothing contained in this Agreement shall preclude either party hereto from seeking judicial relief which may not be obtainable or enforceable in, or which is in aid of, the arbitration proceedings - 15 - referenced in this Section; provided that such judicial relief shall be sought in good faith and not as a subterfuge to avoid the arbitration procedures . Section 16 . Obligation to Refrain from Discrimination. Empire covenants by and for itself, its successors and assigns, 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, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Empire or any persons or entities claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, Lessees or vendees of the Property. Section 17 . Form of Nondiscrimination and Nonsegregation Clauses . All deeds, leases or contracts entered into for the transfer, use, occupancy, tenure, or enjoyment of the Property, shall contain or be subject to nondiscrimination clauses in substantially the following form: 1 . In deeds : "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, 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, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, 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, Lessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land. " 2 . In leases : "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, that this lease is made and accepted upon and subject to the following conditions : - 16 - 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, handicap, age, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practices or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased. " 3 . In contracts : "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, age, handicap, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, 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 premises . " Section 18 . Indemnification. It is understood and agreed that no official, employee or agent of the City or the Agency shall be personally liable to Empire or any other person for any obligation or obligations under the terms of this Agreement . Empire shall save the City and the Agency, and all parties in privity to the City and the Agency, harmless from all claims, demands, causes of action, expenses, and liability of whatsoever kind or nature which may arise out of, because of, concerning, or incident to the performance of Empire under this Agreement, including all court actions, costs and expenses and attorney' s fees relative to the City or the Agency being a party to this Agreement as may be initiated by Empire or any third party for any reason whatsoever, except in the event that the City or the Agency has caused the default either through willful misconduct or negligence, including any claims for damages or personal injuries on the Property. Section 19 . Inspection of Books and Records . The books and financial records of Empire pertaining to the City' s financial assistance as set forth in Section 3 shall be retained by Empire - 17 - and shall be available to the City for inspection for purposes of performing an audit for a period of five (5) years following the date of this Agreement, or for a longer period as required by law. The cost of reproduction of any such financial records shall be borne by the City. The City shall have the right, at all reasonable times, during business hours, to inspect the books and records of Empire pertaining to the City' s financial assistance provided pursuant to Section 3 of this Agreement . Section 20 . Insurance . Empire shall maintain a comprehensive liability and property damage insurance policy in the amount of One Million Dollars ($1, 000, 000) combined single limit per occurrence. Such policy shall protect the Agency and the City from all claims for damages arising out of Empire ' s activities under this Agreement . Empire shall furnish the Agency and the City with certificates of insurance countersigned by an authorized agent of the insurance carrier naming the Agency and the City, respectively, and their officers, agents, and employees as additional insureds under the insurance policy. The insurance policy shall be issued by a responsible insurance company authorized to do business in California with a rating of no less than "A" by Best' s Rating Service, and shall be in a form satisfactory to the City. Empire shall within ten (10) days of the date of this Agreement, deposit with the City a certificate showing such insurance to be in full force and effect . Such certificates of insurance shall contain a statement of obligation on behalf of the insurance carrier to notify the Agency and the City, respectively, of any material change, cancellation or termination of coverage at least thirty (3 0) days in advance of the effective date of any such material change, cancellation, or termination. Insurance coverage provided by Empire shall be primary and not contributing with any insurance maintained by the Agency or the City, and the policy shall contain such an endorsement . The insurance policy shall contain a waiver of subrogation for the benefit of the Agency and the City. Empire shall furnish or cause to be furnished to the City and the Agency satisfactory evidence that any contractor with whom Empire has contracted to remove the existing community garden which is currently located on the Property, remove existing structures from the Property, including without limitation, the storage compartments, construct and install the Improvements on the Property, and complete the Project on the Property pursuant to this - 18 - Agreement, maintains workers, compensation insurance for all workers under its employ, as required by law. Section 21 . Successors and Assigns ; Assignment . The provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. Empire shall not assign or transfer any or all of its rights or obligations hereunder without the prior written consent of the City. Section 22 . Entire Agreement ; Amendment . Except as otherwise expressly provided herein, this Agreement constitutes the entire agreement between the parties pertaining to the subject matter herein and supersedes all prior and contemporaneous 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 . No modification, amendment or waiver of any term hereof shall be binding unless executed in writing by any party or parties to be bound thereby. This Agreement may be amended as deemed necessary by the parties hereto upon written instruments duly approved and executed by the parties hereto. Any such amendments or modifications shall be valid, binding, and legally enforceable only if in written form and executed by Empire, the City and the Agency after the same have been duly approved and authorized for execution. Section 23 . Severability. If any term or provision of this Agreement or the application thereof shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and shall be enforced to the extent permitted by law. Section 24 . Section Headings. The headings of the several sections of this Agreement are inserted solely for convenience of reference, and are not a part of and are not intended to govern, limit or aid in the construction of any term or provision hereof . Section 25 . Meaning_ of Terms . Where the context so requires, the use of the masculine gender shall include the - 19 - feminine and the neuter gender, and the singular shall include the plural and vice versa. Section 26 . Effective Date of Agreement ; Execution; Term. This Agreement shall not be effective for any purpose or be binding and enforceable upon the City or the Agency until such time when this Agreement has been approved pursuant to official action of the City and the Agency in accordance with duly adopted and approved City and Agency resolutions authorizing the Mayor and City Clerk of the City, and the Chairman and Secretary of the Agency to execute this Agreement on behalf of the City and the Agency, respectively. This Agreement may be executed in original counterparts, each of which shall be deemed to be an original for all purposes, and such counterparts shall constitute one and the same instrument . This Agreement shall remain in full force and effect until all of the obligations set forth herein have been satisfied. 20 - IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the year and day first above written. ATTEST CITY OF SAN BERNARDINO By. BY Rachel Clark Tom Minor City Clerk Mayor APPROVED AS TO FORM AND LEGAL CONTENT: James F. Penman City Attorney By: ATTEST: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By By Timothy C. Steinhaus Tom Minor Agency Secretary Chairman APPROVED AS TO FORM AND LEGAL CONTENT: By: Timothy J. Sabo Agency Special Counsel EMPIRE A/G RECREATION, LLC By: Empire & Associates, Inc. Manager By David R. Willis President APPROVED AS TO FORM AND LEGAL CONTENT: DONALD J. REGAN, PC By: Donald J. Regan Counsel for Empire A/G Recreation, LLC SBEO\0001\DOC\3067.14 8\14\96 3:00 ew - 21 - EXHIBIT "All TO JOINT DEVELOPMENT AGREEMENT LEGAL DESCRIPTION OF THE PROPERTY 5. Exhibit A 1 To JDA EXHIBIT "B" TO JOINT DEVELOPMENT AGREEMENT SCOPE OF DEVELOPMENT DEVELOPMENT Empire shall develop the Property as a public park and recreational facility in accordance with the actual development plans to be proposed and submitted by Empire to the City. Empire shall develop the Property by removing the existing community garden which is currently located on the Property, removing existing structures (including any asbestos contained therein) from the Property, including without limitation, the storage compartments, and constructing and installing a public park and recreational facility on the Property consisting of: sixteen (16) controlled access soccer fields with ancillary buildings, including without limitation, two (2) concession stands to be located adjacent to the storage area, and public restrooms; controlled access parking sufficient to accommodate 500 to 600 vehicles; and related landscaped areas. The Improvements shall be first class, constructed of quality materials, to City Code, and shall be unified in architectural theme and treatment throughout the Property and adjacent off-site areas, insofar as reasonable and practicable. All Improvements to be constructed by Empire shall be constructed or installed in accordance with the technical specifications, standards and practices of the City and in accordance with plans and specifications approved by the City. Empire shall cause the proper documents to be filed with the City. The Property shall include on-site parking in accordance with applicable City regulations. The Lessee shall design all structures, landscaping and parking areas to achieve a high degree of attractiveness and compatibility with the Property and area in which the Property is located. The City will use its best efforts to cause the School District to make available on an as needed basis two (2) soccer fields and parking, located in the Emmerton Elementary School adjacent to the Property. Four (4) of the sixteen (16) soccer fields Exhibit B - 1 To JDA to be construed on the Property shall be lighted, secured and utilized solely during competitive play as determined by CYSA-S ' s nominee. All other portions of the Property, including without limitation, the twelve (12) soccer fields, shall remain open and accessible for public use, (including, without limitation, organized public groups of twenty-five (25) or more persons who have obtained recreational use permits from CYSA-S' s nominee, and persons or entities who have requested recreational use permits from the City and whose use in CYSA-S' s nominee' s opinion will not damage the Property) on a first come first serve, permit only basis, to be mutually determined by the Parks Department and CYSA-S' s nominee, during such times as CYSA-S' s nominee is not conducting its annual recreational and competitive league programs, which shall not exceed sixty-four (64) hours per seven (7) day week. CYSA-S' s nominee shall have the right to conduct its annual recreational and competitive league tournaments on the Property on an exclusive basis. The issuance of recreational use permits to organized public groups, persons, firms, corporations, or societies other than CYSA- S' s nominee shall be in accordance with the procedures used by the Parks Department in connection with other City parks, and all users of the Property other than CYSA-S' s nominee shall comply with the provisions of Chapter 12 . 80 . The Parks Department and CYSA-S' s nominee shall jointly develop and agree upon a turf management program which addresses the appropriate extent of usage of the turf areas of the Property. Empire shall commence and complete the Project by the times established therefore in the Schedule of Performance (Exhibit "E") . DEVELOPMENT STANDARDS The Project shall be developed in accordance with applicable building and safety codes. DEMOLITION AND SOILS Empire assumes all responsibility for surface and subsurface conditions on the Property and the suitability of the Property for the Project . If the surface and subsurface conditions of the Property are not entirely suitable for such development and use, Empire shall at its cost take all actions necessary to render the Property entirely suitable for such development . Empire has Exhibit B - 2 To JDA undertaken all investigation of the Property it has deemed necessary, and has not received or relied upon any representations of City, the Agency, or their respective officers, agents and employees. Empire shall undertake at its cost all demolition required in connection with the development of the Project . Exhibit B - 3 To JDA EXHIBIT "C" TO JOINT DEVELOPMENT AGREEMENT LEASE This Lease ("Lease") is made and entered into this 1st day of August, 1997, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("Lessor" or "City") , and , a non-profit public benefit corporation ("Lessee") , which is entering into this Lease for the benefit of the CALIFORNIA YOUTH SOCCER ASSOCIATION - SOUTH ("CYSA-S") . Lessor, for and in consideration of the rent to be paid by Lessee and of the covenants and provisions to be kept and performed by Lessee under this Lease, hereby leases to Lessee, and Lessee agrees to lease from Lessor, that certain real property consisting of approximately fifty (50) acres of real property located in the northeast portion of the City of San Bernardino, California near the Highway 30 Highland/Arden Avenue Exit, as more fully described on Exhibit "A" attached hereto, together with any and all improvements thereon ( "Property") . This Lease is being entered into in accordance with the terms and provisions of that certain Joint Development Agreement (Patton Park Recreational Facility) by and among the Lessor, the Redevelopment Agency of the City of San Bernardino, and Empire A/G Recreation, LLC dated August 1996, which is incorporated herein by this reference ("Agreement") . This Lease shall be subject to and carried out in accordance with the terms and conditions of the Agreement . ARTICLE 1 . TERM OF LEASE Term; Extended Term Section 1 . 1 . This Lease shall be for a term of twenty (20) years, commencing on the date set forth above, and ending twenty (20) years thereafter ("Term") , unless terminated earlier pursuant to the provisions of this Lease, with two (2) five (5) year options to renew ( "Extended Term") . Exhibit C - 1 To JDA Holding Over Section 1 .2 . In the event Lessee, with Lessor' s consent, holds over and continues in possession of the Property after expiration of the Term, Lessee' s continued occupancy of the Property shall be considered a year-to-year tenancy subject to all the terms and conditions of this Lease and the JDA. ARTICLE 2 . RENT Rent Section 2 . 1 . Lessee agrees to pay to Lessor as rent for the use and occupancy of the Property a sum equal to One Dollar ($1 . 00) per year ("Rent") . The Rent shall be paid by Lessee to Lessor at 300 North "D" Street, San Bernardino, California 92418, or at any other place as Lessor may from time to time designate by written notice delivered to Lessee. Books and Records Section 2 . 2 . Lessee shall at all times keep or cause to be kept complete and accurate records and books of account showing the total amount of revenue made in, on, or from the Property. Lessee agrees to maintain for a period of one year following the close of each calendar month all records and books of account showing or in any way pertaining to the revenue made in, on, or from the Property during that calendar month. Lessee shall maintain all such books and records on the Property, or at such location in which Lessee' s offices are situated. ARTICLE 3 . USE OF PROPERTY Permitted Use Section 3 . 1 . During the Term of this Lease, Lessee' s use of the Property shall be limited to conducting Lessee' s annual recreational and competitive league programs and tournaments, approving the City' s issuance of recreational use permits to public groups, persons, firms, corporations or societies whose use in Lessee' s opinion will not damage the Property, and operating and maintaining the Property, as well as for uses normally incident to Exhibit C - 2 To JDA said purposes, and for no other purposes. Lessee shall not use or permit the Property to be used for any other purpose, without the prior written consent of Lessor. Lessee shall have the right to conduct its annual recreational and competitive league programs on the Property on a not to exceed sixty-four (64) hours per seven (7) day week basis, to be determined by Lessee in its sole discretion. During such time as Lessee is not conducting its annual recreational and competitive league programs, the Property shall remain open for public access (including, without limitation, organized groups, persons, firms, corporations or societies who have obtained recreational use permits from Lessee) on a first come first serve, permit only basis, to be mutually determined by Lessor' s Parks Recreation and Community Services Department ("Parks Department") and Lessee. Lessee shall have the right to conduct its annual recreational and competitive league tournaments on the Property on an exclusive basis. The issuance of recreational use permits to organized groups, persons, firms, corporations or societies other than Lessee shall be in accordance with the procedures used by the Parks Department in connection with other City parks, and all users of the Property other than Lessee shall comply with the provisions of Chapter 12 . 80 . Operation of Business Section 3 .2 . During the Term and the Extended Term of this Lease, Lessee shall, unless prevented by conditions beyond Lessee ' s control, conduct business of the type and nature specified in Section 3 . 1 of this Lease on the Property in a diligent and businesslike manner and according to the Schedule of Events, attached hereto as Exhibit "B" and incorporated herein by this reference. Lessee shall employ a sufficient number of personnel to conduct the business in a manner consistent with sound business and management practices. Soccer Tournament Sanctioning Section 3 . 3 . Lessee shall ensure that for the initial one-year period of time commencing as of July 1, 1997, through and including June 30, 1998, and for each successive one-year period of time thereafter, both CYSA-S and any affiliate or affiliated organization shall sanction not less than fifteen (15) Soccer Exhibit C - 3 To JDA Tournaments (as hereinafter defined) at the Patton Park Soccer Fields. Lessee shall ensure that CYSA-S shall not sanction other soccer tournaments consisting of local, regional and State of California tournaments or sanctioned activities to be conducted south of the northern boundaries of the Counties of San Luis Obispo, Kern and San Bernardino and within all other California Counties south of said specified Counties (collectively, "CYSA-S Sanctioning Area") unless and until CYSA-S is able to certify that not less than fifteen (15) Soccer Tournaments (as hereinafter defined) shall be actually conducted at the Patton Park Soccer Field Complex. In the event that the minimum number of Soccer Tournament weekends and soccer activities sanctioned or hosted by Lessee or CYSA-S is conducted at the Patton Park Soccer Field Complex, Lessee or CYSA-S may additionally sanction or host other tournaments at any other locations within the CYSA-S Sanctioning Area. Except with respect to the unconditional commitment of Lessee and CYSA-S to conduct the State Cup Soccer Tournament at the Patton Park Soccer Field Complex, nothing contained herein shall commit Lessee or CYSA-S to sanction or host additional tournaments at the Patton Park Soccer Field Complex or to require Lessee or CYSA-S to sanction or host soccer tournaments at the Patton Park Soccer Field Complex. However, in the event Lessee or CYSA-S does in fact sanction or host soccer tournaments within the CYSA-S Sanctioning Area, not less than fifteen (15) agreed upon Soccer Tournament weekends and soccer activities shall be conducted at the Patton Park Soccer Field Complex, per year. Lessee shall ensure that CYSA-S maintains its corporate existence and remains in good standing at all times with the CYSA-S Sanctioning Organizations and the applicable nonprofit corporation laws of the State of California and maintains its status as a 501 (c) (3) organization pursuant to the federal tax laws, and that (i) the by-laws, articles of incorporation and other agreements, licenses and sanctioning approvals as granted to CYSA-S by the CYSA-S Sanctioning Organizations, (ii) any of such documents or such other documents as may be applicable to CYSA-S or approved by CYSA-S, and (iii) any such other documents as may have been entered into by CYSA- (, shall not be altered, amended, changed or modified in any manner that would adversely affect the ability of CYSA-S or Lessee to conduct business or to continually host or sanction soccer tournaments within the CYSA-S Sanctioning Area and at the Patton Park Soccer Field Complex. Lessee shall ensure that CYSA-S shall not take any action or allow any action to be taken by any CYSA-S Sanctioning Organization that likewise would adversely affect the ability of Exhibit C - 4 To JDA Lessee or CYSA-S to conduct business or to continually host Soccer Tournaments or to sanction Soccer Tournaments within the CYSA-S Sanctioning Area and at the Patton Park Soccer Field Complex. In consideration of the commitments made by the City and the Agency for undertaking the financing and causing the Improvements to be completed for the Patton Park Soccer Field Complex, Lessee shall ensure that CYSA-S shall take all actions as may be necessary or required to maintain its corporate existence and to maintain the sole and exclusive right to sanction soccer tournaments through the United States Soccer Federation, the United States Youth Soccer Association or other national or international organization within the CYSA-S Sanctioning Area to fulfill the commitments of CYSA-S pursuant to this Agreement for the continued sanctioning of Soccer Tournaments within the CYSA-S Sanctioning Area and at the Patton Park Soccer Field Complex. As used herein the term "Soccer Tournament" shall mean any youth or adult soccer tournament, or a soccer tournament comprised of any combination or youth and adult soccer team participants, sanctioned by CYSA-S conducted at the Patton Park Soccer Field Complex on a weekend consisting of at least a consecutive Saturday and Sunday event wherein (i) at least an average of one hundred (100) teams are entered in the tournament and which teams participate in soccer games at least one (1) day during the weekend, and (ii) at least sixteen (16) fields at the Patton Park Soccer Fields and at other locations within the boundaries of the City are utilized for soccer games on each such consecutive Saturday and Sunday, and (iii) at least an average of 160 soccer games are conducted per weekend. Any CYSA-S tournament that is scheduled to be held for more than one (1) weekend in duration, shall be considered as a separate Soccer Tournament for each additional weekend provided that the conditions set forth in items (i) , (ii) and (iii) above are met for each additional weekend of the continuation of the tournament in question. Certificate/Guarantee Section 3 .4 . Lessee shall cause the United States Soccer Association, Inc. Youth Division of United States Soccer Federation to execute the Certificate Of Membership And Good Standing And Guarantee Of Continuity Of Sanctioning Authority, attached hereto as Exhibit "C" and incorporated herein by this reference. Exhibit C - 5 To JDA Local Vendors; Merchants; Hotels Section 3 .5 . Lessee shall make available at least fifty percent (500) cf the concession booths for use by local vendors during soccer tournaments. In the event at least fifty percent (50%) of such booths are not actually utilized by local vendors, Lessee shall provide Lessor with adequate records evidencing Lessee' s good faith efforts and contacts with local vendors . Lessee shall also initiate, participate in, and coordinate an advertising program with merchants on a City-wide basis, which program shall include without limitation, flyers and coupon books. Lessee hereby agrees that all soccer tournament headquarters shall be located in hotels or other City approved accommodations which are situated in the City. Lessee shall provide Lessor with adequate records which reflect the hotels actually utilized for soccer tournaments, including without limitation the number of soccer tournament guests occupying such hotels . Relocation of CYSA-S Headquarters Section 3 . 6 . In the event a suitable office building is available within a one (1) mile radius of the Property, Lessee shall ensure that CYSA-S relocates its headquarters to said office building. Insurance Hazards Section 3 . 7 . Lessee shall not commit or permit the commission of any acts on the Property nor use or permit the use of the Property in any manner that will increase the existing rates for or cause the cancellation of any fire, liability, or other insurance policy insuring the Property. Waste or Nuisance Section 3 . 8 . Lessee shall not commit or permit the commission by others of any waste on the Property. Lessee shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined in Civil Code Section 3479 on the Property. Lessee shall not use or permit the use of the Property for any unlawful purpose. Exhibit C - 6 To JDA Compliance With Laws Section 3 . 9 . Lessee shall at Lessee ' s own cost and expense comply with all statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and county or municipal, relating to Lessee ' s use and occupancy of the Property, including without limitation Chapter 12 . 80, and the Operations Manual and turf management program described in Section 5 .2 of this Lease. The judgment of any court of competent jurisdiction, or the admission by Lessee in a proceeding brought against Lessee by any government entity, that Lessee has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between Lessor and Lessee and shall constitute grounds for termination of this Lease by Lessor. ARTICLE 4 . TAXES AND UTILITIES Utilities Section 4 . 1 . Lessee shall pay, and hold Lessor and the Property free and harmless from, all charges for the furnishing of gas, water, sewer, electricity, telephone service, garbage pickup and disposal, and other public utilities to the Property during the Term and the Extended Term of this Lease. All such charges shall be paid by Lessee directly to the provider of the service and shall be paid as they become due and payable, but in any event before delinquency. Lessor shall use its best efforts to obtain the lowest rates available for water and electricity, and its best efforts to ensure that such rates are maintained during the Term and the Extended Term of this Lease. Lessee shall be entitled to receive all on-site pay telephone revenue. Personal Property Taxes Section 4 .2 . Lessee shall pay before they become delinquent all taxes, assessments, and other charges including possessory interest taxes levied or imposed by any governmental entity on the furniture, trade fixtures, appliances, and other personal property placed by Lessee in, on, or about the Property. Exhibit C - 7 To JDA Possessory Interest Taxes Section 4 . 3 . Lessee recognizes that the interests of the Lessee in this Lease may be subject to imposition of a possessory interest tax by the County Assessor of the County of San Bernardino, and agrees to pay any such possessory interest tax as may be so levied as to the interests of the Lessee in this Lease and the Property. ARTICLE S . IMPROVEMENTS, ALTERATIONS AND REPAIRS Condition of Property Section 5 . 1 . Lessee accepts the Property, in its present condition and stipulates with Lessor that the Property is in good, clean, safe, and tenantable condition as of the date of this Lease. Lessee further agrees with and represents to Lessor that the Property has been inspected by Lessee, that it has received assurances acceptable to Lessee by means independent of Lessor or any agent of Lessor of the truth of all facts material to this Lease, and that the Property is being leased by Lessee as a result of its own inspection and investigation and not as a result of any representations made by Lessor or any agent of Lessor except those expressly set forth in this Lease. Upon Empire' s completion of the design, construction and installation of the Improvements (as defined in the JDA) to the Property in accordance with the Cost Construction Budget (Exhibit "G" to the JDA) , Lessor agrees to provide the same for use by Lessee in accordance with this Lease. Provided that the Improvements are designed, constructed and installed in accordance with the Cost Construction Budget, Lessee agrees to accept the Improvements in said condition. Operation, Maintenance and Repairs; Deposit Section 5 . 2 . Lessee and the Parks Department shall jointly develop and agree upon a turf management program which addresses the appropriate extent of usage of the turf areas of the Property, and an Operations Manual which establishes criteria relating to the operation of the Property by Lessee, including without limitation, the criteria described in Chapter 12 . 80 . Moreover, Lessee shall at its own cost and expense operate and maintain all portions of the Property in good order and repair and in as safe and clean a condition as they were when received by Lessee Exhibit C - 8 To JDA from Lessor, reasonable wear and tear excepted. Lessee ' s obligation to operate, maintain and repair shall specifically include necessary maintenance and repairs to the soccer fields and ancillary buildings, including exterior roofs, exterior walls, structural supports, foundations, electrical, heating, ventilation, and air conditioning systems, interior walls, floor coverings, ceilings, painting and maintenance of exterior walls, the interior and exterior portions of all doors, paved driveways and parking areas, and landscaping, sports and security lighting, and irrigation for the Property. Notwithstanding the above, Lessor shall be responsible for the removal of graffiti on, and the repair of vandalism to, the Premises. In the event Lessor fails to completely remove graffiti from, or to completely repair vandalism to the Premises within fifteen (15) calendar days from the date on which the graffiti first appeared, or the vandalism first occurred on the Premises, Lessee shall have the right to hire its own contractor to perform such work and to seek reimbursement from Lessor for the reasonable costs thereof. Upon execution of this Lease through Lessee's fiscal year end 1997, and on an annual fiscal year basis thereafter commencing fiscal year 1998, Lessee shall deposit ten percent (10%) of the gross revenues generated by the facilities located on the Property (including without limitation gross revenues generated by the soccer fields, gross profits associated with sales of concessions and rental space, and corporate sponsorship) ("Deposit") into a local bank account reserve fund. The Deposit shall be made within 30 days of Lessee' s receipt of the annual fiscal year end audit . Failure to make such Deposit shall constitute a material default and breach of this Lease, except that: (i) for the period ending fiscal year 1997, Lessee shall not be in default if actual and verified operation, maintenance and repair expenses are greater than gross revenues as defined immediately above; (ii) Lessor may approve deposits of less than ten percent (10%) upon Lessee' s demonstration to Lessor' s reasonable satisfaction as to the reasons why Lessee is unable to make such Deposit; and (iii) Lessor may within its sole discretion approve Lessee' s written requests to use sums deposited in the reserve fund for capital improvements. In the event of any material default and breach of this Lease as defined in Section 9 .2 below by Lessee during the Term or, if applicable, Extended Term of this Lease, Lessor may retain all sums deposited pursuant to this Section 5 .2 . Upon a successful completion of the Term or, if applicable, Extended Term of this Lease, all such sums on deposit shall be returned to Lessee. Exhibit C - 9 To JDA Alterations and Liens Section 5 .3 . Lessee shall not make or permit any other person to make any alterations to the Property without the prior written consent of Lessor. Lessee shall be responsible for obtaining all required approvals, permits and licenses from required governmental entities for any and all alterations or construction of improvements. Lessee shall keep the premises free and clear from any and all liens, claims, and demands for work performed, materials furnished, or operations conducted on the Property at the instance or request of Lessee. Furthermore, any and all alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or on the Property by Lessee or any other person shall on expiration or earlier termination of this Lease, become the property of Lessor and remain on the Property. Lessor shall have the option, however, on expiration or termination of this Lease, of requiring Lessee, at Lessee' s sole cost and expense, to remove any or all such alterations, additions, improvements, or fixtures from the Property. Inspection by Lessor Section 5 .4 . Lessee shall permit Lessor or Lessor' s agents, representatives, or employees to enter the Property at all reasonable times for the purpose of inspecting the Property to determine whether Lessee is complying with the terms of this Lease, for the purpose of doing other lawful acts that may be necessary to protect Lessor' s interest in the Property, or for the purpose of performing Lessor' s duties under this Lease. Surrender of Property Section 5 . 5 . On expiration or earlier termination of this Lease, Lessee shall promptly surrender and deliver the Property to Lessor in as good condition as they are now at the date of this Lease, excluding reasonable wear and tear, and repairs required to be made by Lessor under this Lease. Exhibit C - 10 To JDA ARTICLE 6 . INDEMNITY AND INSURANCE Hold-Harmless Clause Section 6 .1. Lessor shall not be responsible for, and the Lessee shall assume, all liability to persons which may be attributable or incident to the Lessee's negligence or breach of this Lease, or by the negligence or breach of this Lease by any of the Lessee' s agents, employees, contractors, assigns, or the invitees of any of them. Lessee further agrees to indemnify, save, hold harmless, and defend Lessor, its officers, agents and employees, from and against all suits, claims, demands or actions, liabilities, judgments, costs and attorneys' fees arising out of, or in any manner predicated upon personal injury, or death resulting from, related to, caused by or incident to the Lessee' s negligence in the carrying out of the terms of this Lease, or breach thereof, or any and all other activities conducted by the Lessee, its agents, employees, contractors or assigns, or any of their invitees, incident of this Lease. Public Liability and Property Damage Insurance Section 6 .2 . A. The Lessee shall carry and maintain public liability insurance, including but not limited to insurance against assumed contractual liability under this Lease, to afford protection with limits of liability in amounts approved from time to time by the Lessor, but not less than One Million Dollars ($1, 000, 000) in the event of bodily injury and death to any number of persons in any one accident . B. If and to the extent required by the law, the Lessee shall carry and maintain worker' s compensation or similar insurance in form and amounts required by law. C. Policy Provisions: All insurance which this Lease requires the Lessee to carry or maintain or cause to be carried or maintained pursuant to this Section 6 .2 shall be in such form, for such amounts, for such periods of time and with such insurers as the Lessor may require or approve. All policies or certificates issued by the respective insurers for public liability insurance will name the Lessor as an additional insured, provide that any losses shall be notwithstanding any act or failure to act or negligence of the Lessee or the Lessor or any other person; provide that no cancellation, reduction in amount, or material change in coverage thereof shall be Exhibit C - 11 To JDA effective until at least thirty (30) days after receipt by the Lessor of written notice thereof; provide that the insurer shall have no right of subrogation against the Lessor, its officers, agents, or employees, and be reasonably satisfactory to the Lessor in all other respects. In no circumstances will the Lessee be entitled to assign to any third party rights of action which the Lessee may have against the Lessor. D. Delivery of Policy: The Lessee shall deliver or cause to be delivered promptly to the Lessor a certificate of insurance evidencing the insurance required by the Lessor and shall also deliver, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks. The insurance required under this Section shall be issued by a responsible insurance company authorized to do business in California with a rating of no less than "A" by Best' s Rating Service, and shall be in a form reasonably satisfactory to Lessor. Lessee shall within ten (10) days of the date of this Lease, deposit with Lessor a certificate showing such insurance to be in full force and effect . Fire and Extended Coverage Insurance Section 6 .3 . Lessee shall, during the Term and the Extended Term of this Lease, procure, carry, and pay for fire and extended coverage insurance on the Property for at least ninety percent (900) of their full replacement value. The policy shall name Lessor as an additional insured, shall be issued by a responsible insurance company authorized to do business in California with a rating of no less than "A" by Best' s Rating Service, and shall be in a form reasonably satisfactory to Lessee. Lessee shall within ten (10) days of the date of this Lease, deposit with Lessor a certificate showing such insurance to be in full force and effect . The term "extended coverage" as used herein shall mean any casualties that are commonly included under the term "extended coverage" as that term is known and used in the casualty insurance business. Lessee's Personal Property Section 6 .4 . Lessee shall, during the full Term and the Extended Term of this Lease and any renewals or extensions thereof, maintain at Lessee' s own cost and expense an insurance policy issued Exhibit C - 12 To JDA by a reputable company authorized to conduct insurance business in California with a rating of no less than "A" by Best' s Rating Service, in a form reasonably satisfactory to Lessee, insuring for their full insurable value all fixtures and equipment and, to the extent possible, all merchandise that is, at any time during the Term and the Extended Term of this Lease, in or on the Property against damage or destruction by fire, theft, or the elements. Lessee shall within ten (10) days of the date of this Lease, deposit with Lessor • certificate showing such insurance to be in full force and effect . Cancellation Requirements Section 6 . 5 . Each of the insurance policies shall be in • form reasonably satisfactory to Lessor and shall carry an endorsement that, before changing or canceling any policy, the issuing insurance company shall give Lessor at least thirty (30) days ' prior written notice. Duplicate originals or certificates of all such insurance policies shall be delivered to Lessor at Lessor' s option. ARTICLE 7 . LESSOR'S BID PROCESS Bidding Section 7 . 1 . Lessee shall in conjunction with Empire prepare the project for bidding, and the bidding process shall be conducted by Lessor' s Director of Public Works/City Engineer, in accordance with the Rules for Bidding, attached hereto as Exhibit "D" and incorporated herein by this reference. ARTICLE 8 . SIGNS AND TRADE FIXTURES Installation; Removal Section 8 . 1 . Lessee shall not place any sign or trade fixtures upon the Property without Lessor' s prior written consent which shall not be unreasonably withheld. Any and all trade fixtures or signs that can be removed without structural damage to the Property shall remain the property of the Lessee and may be removed by Lessee at any time before the expiration or earlier termination of this Lease, provided Lessee repairs any damage caused by the removal. Any trade fixtures or signs that are not removed from the Property by Exhibit C - 13 To JDA Lessee within thirty (30) days after the expiration or earlier termination regardless of cause, of this Lease shall be deemed abandoned by Lessee and shall automatically become the property of Lessor as owner of the real property to which they are affixed. ARTICLE 9 . ASSIGNMENT; DEFAULT; REMEDIES Restriction Against Subletting or Assignment Section 9 . 1 . Lessee shall not encumber, assign, or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Property without first obtaining the express written consent of Lessor. Except as otherwise provided in the JDA, Lessee shall not sublet the Property or any part of the Property or allow any other person, other than Lessee' s agents, servants, and employees, to occupy the Property or any part of the Property without the prior written consent of Lessor. A consent by Lessor to one (1) assignment, one (1) subletting, or one (1) occupation of the Property by another person shall not be deemed to be a consent to any subsequent assignment, subletting, or occupation of the Property by another person. Any encumbrance, assignment, transfer, or subletting without the prior written consent of Lessor, whether voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of Lessor, terminate this Lease. The consent of Lessor to any assignment of Lessee ' s interest in this Lease or the subletting by Lessee of the Property or parts of the Property shall not be unreasonably withheld. Default by Lessee Section 9 .2 . The occurrence of any one or more of the following events shall constitute a material default and breach of this Lease by the Lessee : (a) The absence of Lessee from or failure by Lessee to conduct business on the Property for a period of thirty (30) consecutive days. (b) The failure by Lessee to make any payment of Rent or any other payment or Deposit required to be made by Lessee hereunder as and when due, where such failure shall continue for a period of thirty (30) days after written notice thereof from Lessor to Lessee. Exhibit C - 14 To JDA (c) The failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Lessee, other than described in Paragraph (b) above, where such failure shall continue for a period of thirty (30) days after written notice thereof from Lessor to Lessee. (d) The making by Lessee of any general assignment for the benefit of creditors; the filing by or against Lessee of a petition to have Lessee adjudged a bankrupt or of a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Lessee, it is dismissed within thirty (30) days) ; the appointment of a trustee or receiver to take possession of substantially all of Lessee' s assets located at the Property or of Lessee ' s interest in this Lease, when possession is not restored to Lessee within thirty (30) days; or the attachment, execution, or other judicial seizure of substantially all of Lessee' s assets located at the Property or of Lessee' s interest in this Lease, when that seizure is not discharged within thirty (30) days. Remedies of Lessor Section 9 .3 . In the event of any such material default or breach by Lessee, Lessor may at any time thereafter, upon written notice, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default or breach: (a) Terminate Lessee ' s right to possession of the Property by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession of the Property to Lessor. In such event, Lessor shall be entitled to retain any sums deposited by Lessee pursuant to Section 5 .2 above and recover from Lessee all damages incurred by Lessee by reason of Lessee ' s default, including, but not limited to: the cost of recovering possession of the Property; expenses of re-letting, including necessary renovation and alteration of the Property; and reasonable attorneys ' fees. (b) Maintain Lessee' s right to possession in which case this Lease shall continue in effect whether or not Lessee shall have abandoned the Property. In such event, Lessor shall be entitled to enforce all of Lessor' s rights and remedies under this Lease, including the right to recover the Rent as it becomes due hereunder. Exhibit C - 15 To JDA (c) Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the State of California. Unpaid installments of rent or other unpaid monetary obligations of Lessee under the terms of this Lease shall bear interest from the date due at the maximum rate then allowed by law. Default by Lessor Section 9 .4 . Lessor shall be in default under this Lease if Lessor fails to perform obligations required of Lessor within a reasonable time, but in no event later than thirty (30) days after written notice by Lessee to Lessor. Lessee shall have all remedies available at law or in equity for any default or breach of this Lease by Lessor. ARTICLE 10 . CONDEMNATION Condemnation Award Section 10 . 1 . If the Property or any portion thereof are taken under the power of eminent domain, any award for the taking of all or any part of the Property under the power of eminent domain shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Lessee shall be entitled to any award for loss or damage to Lessee ' s trade fixtures and removable personal property. ARTICLE 11 . MISCELLANEOUS Force Majeure-Unavoidable Delays Section 11. 1 . If the performance of any act required by this Lease to be performed by either Lessor or Lessee is prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause except financial inability that is not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused. However, nothing contained in this Section shall excuse the prompt payment of Rent by Lessee as required by this Exhibit C - 16 To JDA Lease or the performance of any act rendered difficult solely because of the financial condition of the party required to perform the act . Binding on Heirs and Successors Section 11 .2 . This Lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of Lessor and Lessee, but nothing in this section shall be construed as a consent by Lessor to any assignment of this Lease or any interest therein by Lessee except as provided in Section 9 . 1 of this . Sole and Only Agreement Section 11. 3 . This instrument constitutes the sole and only agreement between Lessor and Lessee respecting the Property, and correctly sets forth the obligations of Lessor and Lessee to each other as of its date. Any agreements or representations respecting the Property or their leasing by Lessor to Lessee not expressly set forth or referenced in this instrument are null and void. Severability Section 11 .4 . The invalidity of any provision of this Lease as determined by a court of competent jurisdiction shall in no way affect the validity of other provisions hereof. Amendments Section 11.5 . This may be modified only in writing, signed by the parties in interest at the time of the modification. Notices Section 11 . 6 . Any notice required or permitted to be given hereunder shall be in writing and may be given by personal delivery or by certified mail, and if given personally or by mail, shall be deemed sufficiently given if addressed to Lessor or to Lessee at the address as follows : If to Lessor: City of San Bernardino 300 North "D" Street San Bernardino, California 92418 Attn: Mayor Tom Minor Exhibit C - 17 To JDA With Copies To: Office of the City Attorney City of San Bernardino 300 North "D" Street, Gth Floor San Bernardino, CA 92418 Attn: James F. Penman, Esq. and Sabo & Green, A Professional Corporation 23801 Calabasas Road, Suite 1015 Calabasas, California 91302-1595 Attn: Edward W. Pilot If to Lessee : California Attn: With Copy To: California Youth Soccer Association - South 2051 East Cerritos Avenue, No. 8-C Anaheim, California 92806 Attn: John Harper, President Either party may, by written notice to the other party specify a different address for notice purposes. Waivers Section 11. 7 . No waiver by Lessor of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Lessee of the same or any other provision. Lessor' s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor' s consent to or approval of any subsequent act by Lessee. The acceptance of Rent hereunder by Lessor shall not be a waiver of any preceding breach by Lessee of any provision hereof, other than the failure of Lessee to pay the Rent so accepted, regardless of Lessor' s knowledge of such preceding breach at the time of acceptance of such Rent. Subordination Section 11 . 8 . This is subordinate to any ground lease, mortgage, deed of trust or any other hypothecation or security now placed upon the real property of which the Property are a part and to any and all obligatory advances made on the security thereof. Notwithstanding such subordination, Lessee ' s right to quiet Exhibit C - 18 To JDA possession of the Property shall not be disturbed if Lessee is not in default and so long as Lessee shall pay the Rent and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. Net-Net-Net Lease Section 11 . 9 . This Lease shall be deemed and construed to be a "net-net-net lease. " Lessee shall pay for all tenant improvements, operating costs associated with the Property, taxes, and utilities. Attorneys' Fees Section 11 . 10 . If either party to this Lease brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, shall be entitled to its reasonable cost and attorneys' fees to be paid by the losing party as fixed by the court . In the event Lessor utilizes the services of the Office of the City Attorney, the costs of such services shall be recoverable as attorneys' fees. Lessor' s Access Section 11 . 11 . Lessor and Lessor' s agents shall have the right to enter the Property at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, lenders or lessees, and making such alterations, repairs, improvements or additions to the Property as Lessor may deem necessary or desirable. Merger Section 11. 12 . The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, or a termination by Lessor, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subtenancies or may, at the option of Lessor, operate as an assignment to Lessor of any or all of such subtenancies . Authority To Act For Lessor Section 11. 13 . It is understood and acknowledged that Lessor shall act by and through the authority of, and actions taken Exhibit C - 19 To JDA on behalf of Lessor shall be exercised by, the legislative body of the Lessor. Approval Of Lease Section 11 . 14 . It is understood and agreed that this Lease is subject to the approval of the legislative body of the Lessor. Acknowledgments Section 11. 15 . The parties acknowledge that this Lease has been negotiated by authorized representatives of each party, and both parties hereby consent to this Lease having been drafted by Sabo & Green, A Professional Corporation, as counsel to Lessor. Counterparts Section 11. 16 . This Lease may be executed in original counterparts, each of which shall be deemed to be an original for all purposes and such counterparts shall constitute one (1) and the same instrument . Exhibit C - 20 To JDA WHEREFORE, the parties hereto, in consideration of the conditions, covenants and promises contained herein, have executed this Lease as indicated below. LESSOR By: Tom Minor Mayor ATTEST: Rachel Clark City Clerk LESSEE By: ATTEST: Exhibit C - 21 To JDA EXHIBIT "A" TO LEASE LEGAL DESCRIPTION OF THE PREMISES 0 t L. ti Exhibit A - 1 To Lease EXHIBIT "B" TO LEASE SCHEDULE OF EVENTS' Tournament/League/Program Competitive/Recreational Number of Participating Teams Celtic Cup Competitive 500 Chino Spirit Spring Cup Competitive 134 Los Gauchos Invitational Competitive 125 Corinthians F.C. Invitational Competitive 125 Legacy International Cup Competitive 400 The Summer Classic Competitive 100 Annual Aztec Cup Competitive 125 California Heat Thanksgiving Cup Competitive 75 District Five Commissioner' s Cup Recreational 150 District Five All-Star Tournament Recreational 130 CYSA-S State Cup Competitive 800 CYSA-S American Cup Recreational 100 CYSA-S Olympic Developmental Program Competitive >1, 000 players Far Western Regionals Competitive 200 CYSA-S Standard League Play Competitive/ Recreational >16, 000 players ' This Schedule of Events shall also encompass and extend to any and all other CYSA-S sanctioned competitive tournaments, in addition to those specifically enumerated above. Exhibit B - 1 To Lease EXHIBIT "C" TO LEASE CERTIFICATE OF MEMBERSHIP AND GOOD STANDING AND GUARANTEE OF CONTINUITY OF SANCTIONING AUTHORITY We understand that the California Youth Soccer Association (CYSA-S) is negotiating with the City of San Bernardino ("City") to enter into a long-term Lease ("Lease" ) for the operation of a major (16 contiguous fields) soccer complex ("Complex") . This Certificate is provided at the request of CYSA-S. 1 . THE SAN BERNARDINO LEASE We are informed that the City proposes to finance and build the Complex to CYSA-S specifications and make it available to CYSA-S pursuant to a Lease to which this Certificate will be an Exhibit. Under the Lease CYSA-S will be obligated to maintain and operate the Complex and to conduct, in each year during its term, a minimum of 15 two day or more Soccer Tournaments . 2 . SOCCER-WORLDWIDE ORGANIZATION AND AUTHORITY The National Governing Body for soccer in the United States of America is the United States Soccer Federation ( "US SOCCER") . The coordinating body for youth soccer in the USA is United States Youth Soccer Association, Inc. ("US YOUTH SOCCER" ) . US SOCCER has delegated the authority and responsibility to administer youth soccer programs in the USA to US YOUTH SOCCER. The following chart explains and verifies the pertinent organization and authority. Federation Internationale FIFA is the international de Football Association governing body for soccer Exhibit C - 1 To Lease United States Soccer US SOCCER is the FIFA member Federation (National Governing Body) for soccer in the U.S.A. United States Youth Soccer US YOUTH SOCCER is the official Youth division of US SOCCER, and Association, Inc . is made up of 55 member state associations; one in each state and two in California (North and South) , New York, Ohio, Pennsylvania and Texas . California Youth Soccer CYSA-S is the US YOUTH SOCCER Association member which is in good standing for Southern California CYSA-S is the official state association and sanctioning body for tournaments hosted by US YOUTH SOCCER leagues, clubs, and teams located within the territory (Southern California) . In addition, CYSA-S may organize and host invitational and other tournaments for US YOUTH SOCCER affiliates ( independent organizations that register players - such as AYSO) as well as teams from other regions, states and countries. 3 . CERTIFICATE FOR CYSA-S AND GUARANTY OF SANCTIONING FOR SOUTHERN CALIFORNIA In consideration of, and conditioned upon the City' s execution of and performance under the Lease, US YOUTH SOCCER hereby verifies that : 3 . 1 . It is a nonprofit educational organization, established as the Youth Division of US SOCCER and Exhibit C - 2 To Lease has the sole US SOCCER authority to act as the coordinating body for and to administer (sanction) the youth soccer programs of US SOCCER. 3 .2 . Pursuant to Rule 4011, Section 1 (b) (1) of the US SOCCER Bylaws, CYSA-S as a designated "National State Association" retains the US SOCCER delegated authority to conduct all US YOUTH SOCCER programs within the CYSA-S territory (Southern California) , in all matters pertaining to interstate, regional, national, and international competition. 3 .3 . US YOUTH SOCCER recognizes and acknowledges that CYSA-S will incur obligations under the Lease, particularly the obligation to annually conduct fifteen tournaments as defined in the Lease. In this regard, if, for any reason, CYSA-S ceases to be a US YOUTH SOCCER member in good standing (the National State Association for Southern California) , then, in that event; US SOCCER agrees that : 3 .3 . 1. It will act, reasonably and in accordance with its procedures to constitute and enroll another entity as the National State Association for the Southern California territory, and 3 . 3 . 2 . It will impose, as a condition to such new entity' s Membership in US YOUTH SOCCER and appointment as a National State Association, an unconditional agreement and consent to be bound to the obligation under the Lease to schedule, sanction, and conduct a minimum of fifteen tournaments each year during the term of the Lease. 3 .3 . 3 . This guarantee, agreement and consent, however, is not to be deemed to extend to or include any CYSA-S financial obligations incurred pursuant to the Lease. On the other hand, if the City terminates the Lease for any default or nonperformance by CYSA-S, the City understands and agrees that US YOUTH SOCCER may, but is not obligated to, seek to cause CYSA-S or its success Member for the Southern Exhibit C - 3 To Lease California territory to assume the financial, performance and all other obligations to the City under the Lease. UNITED STATES YOUTH SOCCER ASSOCIATION, INC. YOUTH DIVISION Of UNITED STATES SOCCER FEDERATION By: Ray Thompsett, Executive Director Exhibit C - 4 To Lease EXHIBIT "D" TO LEASE CITY OF SAN BERNARDINO DEPARTMENT OF PUBLIC WORKS RULES FOR BIDDING 1. Contract documents and construction plans shall be reviewed and approved by the Director of Public Works/City Engineer ( "Engineer" ) for the City of San Bernardino ( "City" ) prior to advertising for bids. 2 . Contract documents shall contain the following: a. Notice Inviting Bids, with the time and place for receiving sealed written bids. b. Bid Schedule listing all items of the work to be done, along with estimated quantities and spaces for the unit bid prices to be entered. C. Requirement for bidders to provide bid security with their bids, in a minimum amount of 100 of the total bid price, to insure execution of contract. Security will be forfeited if bidder is awarded contract and fails to execute contract . d. Requirement for the lowest responsible bidder to file surety bonds for faithful performance and labor and materials, with Developer, prior to execution of contract, in the amounts of 100% of the contract price. e. Requirement for lowest responsible bidder to file a policy or certificate of liability insurance with Developer, prior to execution of contract, for a combined single limit policy with aggregate limits in the amount of $1, 000, 000, or as approved by the Engineer. The City shall be named as an additional insured. f . Requirement for lowest responsible bidder to file a signed Certificate of Worker' s Exhibit D - 1 To Lease Compensation Insurance, prior to execution of the contract, as set forth in Section 7-4 of of the Standard Specifications for Public Works Construction. g. Requirement for lowest responsible bidder to pay prevailing wages in accordance with the Davis- Bacon Act and the California Prevailing Wage Law. h. Space for bidders to sign, and to enter Contractor' s License Number and Type. All successful bidders shall have the appropriate California Contractor' s License for the work to be done. i. Lowest responsible bidder shall obtain a Business Registration Certificate from the City Clerk' s Office prior to starting work. j . Contractor shall indemnify and hold harmless the City, their officers, agents, volunteers and employees from and against any and all claims, demands, loss or liability of any kind or nature which the City and/or their officers, agents, volunteers or employees, may sustain or incur or which may be imposed upon them, for property damage and injury to, or death of any persons caused by the Contractor' s negligence, and for any costs or expenses incurred by the City on account of any claim therefore. 3 . Notice Inviting Bids shall be published twice in The Sun. The first publication shall be at least 14 calendar days prior to the date bids are to be received, with the second five (5) days later. 4 . Plans and contract documents shall be provided to the construction trade newspapers on the list provided by the Engineer. 5 . Sealed bids will be received at the place indicated in the Notice Inviting Bids, opened and announced at the specified time. The bid opening shall be open to the public. Exhibit D - 2 To Lease 6 . The Developer shall submit a Report of bids received to the Engineer for verification that the bid prices are consistent with those received on City Public Works projects . After verifying consistency, the Engineer will provide Developer with a written statement concurring with awarding a contract . 7 . Developer shall conduct a pre-construction conference prior to work being commenced, with the Contractor, utilities, Assessment Engineer, and any other affected parties . 8 . Developer may submit monthly requests to the Engineer for the portion of the work completed by Contractor, if provision for such progress payments is contained in the Joint Development Agreement. Requests will be for completed items of work only, unless waived by the Engineer for large items of work. After verifying that the work for which payment is requested has been satisfactorily completed, the Engineer will approve the request and forward to the City Finance Department for payment . 9 . Progress payments made by the City will not include any amount for interest. 10 . After all items of work have been completed by the Contractor, and accepted by the Engineer, a Notice of Completion shall be recorded by Developer. 11. An amount of 100 of all payments shall be retained by City. This retention will be paid to Developer 35 days after the Notice of Completion is recorded. 12 . In the event that a STOP NOTICE is filed by a subcontractor, material supplier or employee, the amount listed in the STOP NOTICE will also be retained by the City, until a release is received. 13 . The Standard Operating Procedures, for implementation of the City' s Minority Business Participation Program shall not apply, since this is not a City contract. 14 . Developer may submit a written bid along with other bidders, provided that the appropriate California Contractor' s License has been obtained. Exhibit D - 3 To Lease 15 . Developer reserves the right to reject any or all bids. The lowest bid may not be accepted. Developer reserves the right to complete the work with its own forces should it be deemed in the best interest of the overall Project . 16 . The Project shall be bid in two separate packages . The first package shall relate to demolition and grading only. The second package shall consist of all remaining work. Notwithstanding the two separate bid packages there shall only be one general contractor for the Project . Exhibit D - 4 To Lease EXHIBIT "D" TO JOINT DEVELOPMENT AGREEMENT OPERATIONS MANUAL This Operations Manual ("Manual") has been developed and jointly agreed upon by the Parks Department and CYSA-S' s nominee and establishes criteria relative to the operation of the Property by CYSA-S' s nominee, including without limitation, the criteria defined in Chapter 12 . 80 . 1. Short title. The regulations codified in this Manual shall be known as the Patton Park Regulations. 2 . Definitions. "Chapter" is hereby revised to read "Manual" . B. "Building" means any building or portion thereof located on the Park and under the supervision of CYSA-S' s nominee. C. "CYSA-S' s nominee" refers to (The term "Director" is hereby deleted from and shall not be a part of this Manual . ) D. "Park" includes all grounds, roadways, avenues, park facilities and playground areas, or portions thereof, located on the Park and which are under the supervision of CYSA-S' s nominee. E. "Permit" means a permit for exclusive use of the Park or any building located thereon. 3 . Use of Park and Buildings exclusive. The Park, including any Buildings located thereon, may be made available for the exclusive use of persons subject to the issuance of a permit by CYSA-S' s nominee as provided for in this Manual . 4. Permit. It is unlawful for any organized group, person, firm, corporation or society, to conduct any picnic, celebration, parade, service or exercise in the Park or Building or use any Park facility, without first obtaining a written permit from CYSA-S' s nominee, as provided for in this Manual . 5. Park and recreation-sponsored classes -- permit required. This Section is hereby deleted from and shall not apply to this Manual . Exhibit D - 1 To JDA 6 . Application for Permit Any person, firm, corporation, society or organization applying for a permit shall file an application for such permit with CYSA-S' s nominee, not less than ten days nor more than one year prior to the proposed use of the Park or Buildings located thereon. . . E. Additional CYSA-S nominee facilities requested, including but not limited to personnel and equipment; H. In the event the proposed activity is a CYSA-S nominee sanctioned or approved class or course of instruction, the proposed fees that are to be charged for the classes or courses of instruction. I . Such other information as shall be required by CYSA-S' s nominee. 7 . Issuance of permit. A. -D.References to "The Director" are hereby revised to read "CYSA-S' s nominee" . E. Upon the advice of the Chief of Police, CYSA-S' s nominee may impose a requirement of one crowd control monitor per fifty persons, up to a maximum of 8, 000 persons expected to attend the proposed activity. . . . References to "the Director is hereby revised to read "CYSA-S' s nominee" . F. -G.These Sections are hereby deleted from and shall not apply to this Manual . 8. Denial of permit. A. "The director" is hereby revised to read "CYSA-S' s nominee" . 1. That the application reveals that the Park or the Buildings located thereon will not accommodate the activity of the applicant . 9 . The permit applied for is for the purposes of holding classes or courses of instruction or activity in the Park for fees for any program not approved, sponsored or sanctioned by CYSA-S' s nominee. B. "The director" is hereby revised to read "CYSA-S' s nominee" . 9. Right of approval of denial of permit or conditions imposed on issuance of permit. This Section is hereby deleted from and shall not be a part of this Manual . Exhibit D - 2 To JDA 10 . Fees and deposits. A. Upon granting of a permit under this manual, any fees or deposits required for the use of CYSA-S nominee personnel or the Park, Buildings, equipment and facilities located thereon shall be paid by the applicant to CYSA-S' s nominee no later than three working days before the activity is to be held. . . "The Director" is hereby revised to read "CYSA-S' s nominee" . B. CYSA-S' s nominee shall establish a fee schedule for the use of the Park and Buildings located thereon and for the rental or use of equipment, facilities and personnel . Copies of the fee schedule shall be made available to the public by CYSA-S' s nominee. 11. Liability. The words "and CYSA-S' s nominee" is hereby added after each reference to "the City" . 12 . Displays and sales. It is unlawful for any person to sell or offer for sale any merchandise, article or thing of any kind or nature whatsoever in the Park, or Buildings located thereon, under the supervision of CYSA-S' s nominee, unless such persons posses a written document from CYSA-S' s nominee, consenting to such sale or offer for sale. 13 . Park regulations. Within the limits of the Park or any facility or Building located thereon and operated or controlled by CYSA-S' s nominee, it is unlawful for any person to: A. "Chapter" is hereby revised to read "Manual" . 1 . "The Director" is hereby revised to read "CYSA-S' s nominee" . G. "Director" is hereby revised to read "CYSA-S' s nominee" . I . -K. "Duly authorized city employee" is hereby revised to read "an individual duly authorized by CYSA-S' s nominee" . R. "Any public park within the city" is hereby revised to read "the Park" . S. Enter any toilet facility designated for the opposite sex, excepting therefrom children under the age of six years when accompanied by his or her parent or legal guardian, and park employees while acting within the scope of their duties of cleaning or repairing the toilets; or cut, Exhibit D - 3 To JDA deface, or make any writing or marking on the walls of any toilet facility or structure within the Park. Application The name of the Application is hereby revised to read "CYSA-S' s Nominee Application/Permit To Use Patton Park" . The reference to "Section 1280 .130, City Municipal Code Applies" is hereby revised to read "Section 13, Patton Park Operations Manual Applies" . The Hold Harmless Agreement is hereby revised to read "applicant hereby acknowledges that he/she has read, understands and will comply with all provisions of the Operations Manual pertaining to use of Patton Park, and the Buildings, equipment and facilities located thereon. * Applicant hereby assumes all responsibility to leave areas in a neat and clean condition. Applicant agrees to hold harmless and indemnify the City of San Bernardino and CYSA-S' s nominee, from any and all liability for injury to persons or property occurring as a result of this activity and agrees to be liable to the City and CYSA- S' s nominee for any and all damage to Patton Park, and the Buildings, equipment and facilities located thereon, which results from the activity or permittee or is caused by any participant in said activity. " The *Note is hereby revised to read "This permit is subject to cancellation by any Police Officer or CYSA-S' s nominee who determines violation of any provision of the Patton Park Operations Manual . " The signature line for Director, Parks, Recreation & Community Services is hereby revised to read "CYSA-S' s nominee" . The reference to "Goldenrod: Risk Mgmt" is hereby deleted. Exhibit D - 4 To JDA PUBLIC PARKS AND RECREATIONAL FACILITIES 12.80.040 Permit - Required when group exceeds twenty-five persons. 12.80.050 Park and recreation sponsored classes - Permit required. 12.80.060 Application for permit. 12.80.070 Issuance of permit. 12.80.080 Denial of permit. 12.80.090 Right of appeal of denial of permit or conditions imposed on issuance of permit. 12.80.100 Fees and deposits. 12.80.110 Liability. 12.80.120 Displays and sales. 12.80.130 Park regulations. 12.80.140 Violation - Penalty. 12.80.010 Short title. The ordinance codified in this chapter shall be known as the "parks and recreation ordinance. " (Ord. 3326 § 1, 1973 . ) 12.80.020 Definitions. For the purpose of carrying out the intent of this chapter, the following words, phrases, and terms shall be deemed to have the meaning ascribed to them in this section: A. "Amplified sound" means speech or music, projected or transmitted by electronic equipment, including amplifiers, loudspeakers, microphones, bull horns or similar devices which are intended to increase the volume, range, distance, or intensity of speech or music and are powered by electricity, battery, or combustible fuel. B. "Building" includes any building, or portion thereof, under the supervision of the Parks and Recreation Department of the City. C. "Director" refers to the Director of the Department of Parks and Recreation. D. "Park" includes all grounds, roadways, avenues, park facilities, municipal parks and playground areas, or portions thereof, under the supervision of the Parks and Recreation Department. E. "Permit" means a permit for exclusive use of any park or building, or portions thereof, as provided for in this chapter. F. "Person" means persons, groups, associations, partnerships, firms or corporations unless the context in which such word is used indicates the singular word person was intended. (Ord. 3326 § 2, 1973 . ) 12.80.030 Use of parks and buildings exclusive. The City's public parks and buildings, or portions thereof, may be made available for the exclusive use of persons subject to the issuance of a permit by the Director as provided for in this chapter. (Ord. 3326 § 3, 1973 . ) Exhibit D - 5 To JDA 12.80.040 Permit Required when group exceeds twenty-five persons. It is unlawful for any group of persons, firm or corporation, society or organization which anticipates an attendance of more than twenty-five persons to conduct any picnic, celebration, parade, service or exercise in any public park or building or use any park facility, without first obtaining a written permit from the Director as provided for in this chapter. (Ord. MC-460, 5-13-85; Ord. 3326 § 4, 1973 . ) 12.80.050 Park and recreation sponsored classes - Permit required. It is unlawful for any person, firm, corporation, society or organization to hold classes, courses of instruction or any activity where a fee or any form of compensation is charged or anything of value is obtained in a park or building, except in accordance with a written permit issued by the Director for such classes, courses of instruction or activity sponsored by or approved by the Department of Parks and Recreation pursuant to the provisions of this chapter. (Ord. MC-460, 5-13-85; Ord. 3525 (part) , 1975; Ord. 3326 § 4.1, 1973 . ) 12.80.060 Application for permit. Any person, firm, corporation, society or organization applying for a permit pursuant to Sections 12.80.030, 12.80.040 and 12 .80.050 shall file an application for such permit with the Director, not less than ten days, nor more than ninety days prior to the proposed use of the park or building. Upon a showing of good cause, the Director may waive the ten-day period. The application shall contain the following information: A. The name of the sponsoring organization; the name, business address, and telephone number of the applicant, who shall be held responsible for the proposed activity; B. The park, building, or portion thereof, applied for; C. The starting and finishing time of the proposed activity; D. The number of people expected to attend; E. Additional City facilities requested, including but not limited to personnel, tables and chairs; F. The nature of the proposed activity or activities, including equipment and vehicles to be brought into the park, the nature and duration of the use of such equipment and the nature and duration of the use of any amplified sound; G. Estimated number of parking spaces required; H. In the event the proposed activity is a Department of Parks and Recreation sanctioned or approved class or course of instruction, the proposed fees that are to be charged for the classes or courses of instruction. I. Such other information as shall be required by the Director. (Ord. 3525 (part) , 1975; Ord. 3326 § 5, 1973 . ) 12.80.070 Issuance of permit. A. The Director shall grant or deny such application within five working days after its submission, unless the time for such granting or denial Exhibit D - 6 To JDA of the permit has been waived by the applicant in writing. The decision granting or denying the application shall be mailed to the applicant. B. Upon the granting of any permit, the director may impose reasonable requirements and conditions concerning the use of the park or building, as necessary, to insure that the proposed activity and use will not unreasonably interfere with or detract from the promotion of public peace, health, safety and recreation. C. A permit issued for the use of a building, or part thereof, shall contain the closing time. Closing times for each building shall be set by the director and shall be uniformly applied. D. Upon the issuance of a permit for use of a building, the Director shall indicate on the permit the occupancy load of the building. E. Upon the advice of the chief of police, the director may impose a requirement of one crowd control monitor per fifty persons expected to attend the proposed activity. The director may require a one-hour orientation program, to be conducted by the chief of police or his designee, for crowd control monitors at a reasonable time and place prior to the proposed activity, which time and place shall be set by the chief of police or his designee. The applicant shall, within the time limit specified by the director, submit a list of the proposed crowd control monitors, including their names, addresses and telephone numbers. The applicant may, at his option, provide police reserve personnel or duly licensed private patrolmen, instead of crowd control monitors, in the numbers approved by the chief of police. In the event that the applicant provides police reserve personnel, or duly licensed private patrolmen, no orientation session will be required. F. The director may grant the use of a permit for a different park than the one applied for, with the consent of the applicant, in the event that a permit has already been issued for the requested park, or when such requested park does not meet the needs of applicant or is otherwise deemed unsuitable for the purpose of the proposed activity. G. In the event the permit applied for is for the purposes of holding or conducting classes, courses of instruction or activity sponsored by or sanctioned by the department of parks and recreation, upon or in a park, building or other public property, the director shall only consider the application for a permit if he finds and determines that the city department of parks and recreation is sponsoring or sanction- ing the classes or courses of instruction or activity and that the program of classes or courses of instruction or activity will compliment and coordinate with programs established and approved by the department of parks and recreation. In the event it is so determined, then it shall be a requirement that the only compensation allowed or permitted for the program shall be the fees charged for the classes ore courses of instruction or activity, and the director shall establish appropriate fees to be charged as a condition to the issuance of the permit. In establishing the fees, the director shall consider the fees charged for comparable city department of parks and Exhibit D - 7 To JDA recreation sponsored programs and the nature, length and type of classes or courses of instructions: (Ord. 3525 (part) , 1975: Ord. 3326 § 6, 1973 . ) 12.80.080 Denial of permit. A. The director may deny the application if he finds that any of the following, conditions exist: 1. That the application reveals that the city has no park or building which will accommodate the activity of applicant; 2 . That the chief of police has determined that off-duty police officers or police reserve officers must be specifically called to duty, because the proposed activity is of a size or nature that the diversion of so great a number of police or reserve officers to properly police the area is required that the remainder of the city will be without adequate police protection; 3 . That the applicant refuses to agree, in writing, to comply with all conditions in the permit; 4. That the applicant failed to file an application within the appropriate time limits; 5. That the park, facility or building is not available due to prior reservation thereof; 6. That the applicant or organization has violated Section 12 . 80 .130 within the past two years, whether or not the violation resulted in a prosecution or conviction; 7. That the applicant or organization has failed to pay the city for past damages to any park, facility, building, equipment or furniture, owned or controlled by the city, which damages resulted from or arose out of the activity of permittee; 8 . When a hazardous condition threatens the participants, spectators, staff, facility, equipment or building; 9. If the permit applied for is for the purposes of holding classes or courses of instruction or activity on city property for fees for any program not approved, sponsored or sanctioned by the city's department of parks and recreation; 10. That the applicant has failed to comply with any conditions imposed on any prior permits issued pursuant to the provisions of this chapter; 11. If the requirements of this chapter and all other laws are not met. B. The director shall specify in writing the grounds for the denial of the permit. (Ord. 3525 (part) , 1975; Ord. 3326 § 7, 1973 . ) 12.80.090 Right of appeal of denial of permit or conditions imposed on issuance of permit. Exhibit D - 8 To JDA A. The applicant may appeal the denial of a permit, or conditions imposed upon the issuance of a permit, by the director, to the city administrator. B. The applicant must file the appeal with the city administrator within five days of the director's mailing of such decision. The city administrator shall hold a hearing within three days of the filing of the appeal, at the office of the city administrator, at which time the applicant may present any and all evidence, testimony, and information relevant to the application. C. In the case of a denial of a permit, the city administrator shall, within twenty-four hours of the appeal hearing, issue his decision, either affirming the denial of the application, or directing, the director of parks and recreation to issue the permit as applied for, subject to reasonable terms and conditions. When the appeal is taken on the conditions imposed by the Director of Parks and Recreation, the City Administrator shall within twenty-four hours of the hearing, issue his decision either affirming the conditions imposed or directing the Director to issue the permit with amended conditions. D. The decision of the City Administrator shall be final and binding; provided, that the Mayor and Common Council reserves the power to overrule or modify such decision and to issue or deny the permit. (Ord. 3326 § 8, 1973 . ) 12.80.100 Fees and deposits. A. Upon granting of a permit under this chapter, any fees or deposits required for the use of city personnel, parks, buildings, equipment, and facilities shall be paid by the applicant to the Director no later than three working days before the date the activity is to be held. If the fees or deposits are not paid on or by the third day before the activity is to be held, the permit theretofore issued shall be null and void; provided, that the Director upon showing of good cause may permit payment at any time prior to the proposed use. B The Mayor and Common Council shall establish by resolution a fee schedule for the use of the public parks and buildings and for the rental or use of equipment, facilities and personnel. Copies of the fee schedule shall be made available to the public by the Department of Parks and Recreation. (Ord. 3326 § 9, 1973 . ) 12.80.110 Liability. All persons to whom an exclusive use permit has been granted must agree in writing to hold the City harmless and indemnify the City from any and all liability for injury to persons or property occurring as a result of the activity sponsored by the permittee, the persons shall be liable to the City for any and all damage to any park, facility, building, equipment and furniture owned or controlled by City, which results from the activity of the permittee or is caused by any participant in the activity. (Ord. 3326 § 10, 1973 . ) Exhibit D - 9 To JDA 12.80.120 Displays and sales. It is unlawful for any person to sell or offer for sale any mer- chandise, article or thing of any kind or nature whatsoever in any public park, or recreational facility, including all grounds, roadways, avenues, park facilities, municipal parks and playground areas, or portions thereof, under the supervision of the Parks, Recreation and Community Services Department, unless such person possesses a written document from the Director of Parks, Recreation and Community Services consenting to such sale or offer for sale. (Ord. MC-520, 5-19-86; Ord. MC-460, 5-13-85; Ord. 3326 § II, 1973 . ) 12.80.130 Park regulations. Within the limits of any public park or playground in or upon any facility or building located therein and owned or controlled by the City, it is unlawful for any person to: A. Cause the amplification of sound exceeding twenty-five watts total output from all channels of equipment used except pursuant to an exclusive use permit issued under this chapter and subject to the following conditions: 1. The location of any bandstand and the position of each loudspeaker shall be as specified by the Director so as to allow the least amount of amplified sound to be audible in any adjacent residential neighborhoods. 2 . Amplified sound shall not exceed ninety-five decibels (dba) at a point fifty feet in front of the center point of the distance between loudspeaker installations. B. Play or practice golf or use golf clubs in any area not designated for such use; C. Operate any motor driven model airplane except in areas designated for such use; D. Operate or park any motor vehicle as defined in the California Vehicle Code within a park except upon areas designated for such use; E. Operate, drive, or ride upon any bicycle, unicycle, tricycle, horse or any other animal in any park except in areas designated and posted specifically for such use; F. Leave any garbage, trash, cans, bottles, papers or other refuse elsewhere than in the receptacle provided therefor; G. Use or attempt to use or interfere with the use of any table, space of facility which at the time is reserved for any other person or group which has received a permit from the Director for the use thereof; H. Discharge or shoot any firearm, air gun, slingshot, or bow and arrow except at places designated and posted specifically for such purposes; I. Dig, remove, destroy, injure, mutilate or cut any tree, plant, shrub, bloom or flower, or any portion thereof except a duly authorized city employee in the performance of his duty; J. Remove any wood, turf, grass, soil, rock, sand or gravel from any park except a duly authorized city employee in the performance of his duty; Exhibit D - 10 To JDA K. Cut, break, deface, or disturb any rock, building, cage, pen, monument, sign, fence, structure, apparatus, equipment or property except a duly authorized city employee in the performance of his duty; L. Light or maintain any fire unless such fire is lighted and maintained only in a stove or fire circle or place provided for such purpose; M. Throw rocks and waste matter in unauthorized places; N. Bathe or wade in or otherwise pollute the waters of any pond, stream, lake or pool unless wading or bathing are allowed in designated streams or pools or portions thereof; 0. Frighten, chase, set snare for, catch, injure or destroy any wild quadrupeds or birds; or destroy, remove or disturb any of the young or eggs of same, or to injure or maltreat any domestic or other animals; P. Camp, lodge or tarry overnight unless there are set aside certain places for this purpose; the provisions of Section 12 .68. 020 regulating loitering and tarrying in any public park is adopted by reference; Q. Indulge in riotous, boisterous or indecent conduct, and no noisy, disorderly or offensive person shall be allowed within the park; the provisions of Chapter 9.32 prohibiting any person from drinking alcoholic beverages in a public place is adopted by reference; R. Roller skate or bicycle upon tennis courts in any public park within the city; and S. Enter any toilet facility designated for the use of female persons within any public park or go into the vault of or be within such toilet facility, excepting therefrom females, boys under the age of six years, and park employees while acting within the scope of their duties of cleaning or repairing the toilets; or cut, deface, or make any writing or marking on, the walls of any toilet facility or structure within any public park. (Ord. MC-460, 5-13-85; Ord. 3643, 1977; Ord. 3326 § 12, 1973) . 12.80.140 Violation -Penalty. Any person, firm or corporation violating or causing the violation of any provision of this chapter is guilty of a misdemeanor, which upon conviction thereof is punishable in accordance with the provisions of Section 1. 12.010 of this Code. (Ord. MC-460, 5-13-85; Ord. 3326 § 13, 1973 . ) Exhibit D - 11 To JDA PARKS, RECREATION AND COMMUNITY SERVICES APPLICATION/PERMIT TO USE PUBLIC PARK OR RECREATION FACILITY Date of Application: Name and Address of Applicant/Organization: Facility Requested: Date of Activity: Time of Activity: A.M./P.M. To A.M./P.M. Nature of Activity/Event: Describe Planned Activities: Estimated Attendance: Is Activity Open to the Public? Admission Fee? Will Sound Amplification or Public Address System be Used? Time of Day Amplifier is to be Used: A.M./P.M. To A.M./P.M. (Section 12.80.130, City Municipal Code Applies.) HOLD HARMLESS AGREEMENT Applicant hereby acknowledges that he/she has read, understands, and will comply with all provisions of Chapter 12.80, Municipal Code, City San Bernardino, California pertaining to use of Park and Recreation facilities. * Applicant hereby assumes all responsibility to leave areas in a neat and clean condition. Applicant agrees to hold harmless and indemnify the City of San Bernardino, California, from any and all liability for injury to persons or property occurring as a result of this activity and agrees to be liable to said City for and all damage to any park, facility, building, pool, equipment, and furniture owned or controlled by City, which results from the activity or permittee or is caused by any participant in said activity. Signature of Applicant *NOTE: This permit is subject to AVAILABLE: YES NO cancellation by any Police Officer who SPECIAL CONDITIONS APPLY: YES NO determines violation of any provision of FEES/DEPOSIT(S) REQUIRED: YES NO the City Municipal Code FEES: RECEIVED BY: ON RECEIPT #: BY: CLEANING DEPOSIT: If area/facility is DEPOSIT(S) : RECEIVED BY: not left in clean condition, the deposit DEPOSIT RETURNED TO: DATE: shall be forfeited. ❑ APPROVED ❑ DISAPPROVED DATE: KEY DEPOSIT: Keys shall be returned Director, Parks, Recreation & Community Services within two (2) working days after the DISTRIBUTION: event for which the key(s) is issued. WHITE: DEPT./FACILITY If key(s) is not returned promptly, the GREEN: APPLICANT/USER deposit shall be forfeited. CANARY: DEPOSIT FILE PINK POLICE DEPT. GOLDENROD: RISK MANAGEMENT Printed Name of Applicant Address City Zip Phone Number Signature of Applicant Exhibit D - 12 To JDA EXHIBIT "E" TO JOINT DEVELOPMENT AGREEMENT SCHEDULE OF PERFORMANCE 1 . Execution of Agreement and August 1996 . (The effective Lease. City, Agency and Empire date of the Lease shall be shall approve and execute this August 1, 1997 . ) Agreement . City and CYSA-S' s nominee shall approve and execute the Lease. 2 . Grading Plans. Empire Not later than September 15, shall finalize grading plans and 1996 . bid the mass grading of the site. 3 . Removal of Communitv Not later than October 14, 1996 . Garden; Removal of Existing Structures; Commencement of Grading. Empire shall remove the existing community garden which is currently located on the Property. Empire shall remove all existing structures (including any asbestos contained therein) from the Property, including without limitation, the storage compartments. Empire shall commence grading. 4 . Construction Plans. Empire Not later than November 1, 1996 . shall finalize construction plans and bid the remainder of the Project construction. 5 . Substantial Completion of Not later than March 1, 1997 . Construction and Installation. Empire shall complete approximately fifty percent (500) of the construction and Exhibit E - 1 To JDA installation of the Improvements on the Property. Not later than May 1, 1997 . 6 . Completion of Construction and Installation. Empire shall complete construction and installation of the Improvements on the Property. Not later than sixty (60) days 7 . Certificate of Completion. after Empire has completed City shall obtain a Certificate construction and installation of of Completion and provide a copy the Improvements on the to Empire. Property, presented to the City a Certificate of Occupancy for the Property, and tendered a written request to the City for a Certificate of Completion. Exhibit E - 2 To JDA EXHIBIT "F" TO JOINT DEVELOPMENT AGREEMENT CERTIFICATE OF COMPLETION When Recorded, Mail to: City of San Bernardino 300 North "D" Street San Bernardino, California 92418 Attention: Mayor Tom Minor CERTIFICATE OF COMPLETION I, Tom Minor, Mayor of the City of San Bernardino ("City") hereby certify as follows : By its motion, adopted and approved 1997, the City has resolved as follows : Section 1. The removal and reconfiguration work and the improvements described in the Scope of Development (Exhibit "B") required to be constructed and installed in accordance with that certain Joint Development Agreement ("Agreement") dated August _, 1996 by and among the City, the Redevelopment Agency of the City ("Agency") , and Empire A/G Recreation, LLC ("Empire") on that certain real property more fully described in Exhibit "A" , attached hereto and incorporated herein by this reference ("Property" ) , has been completed in accordance with the provisions of the Agreement . Section 2 . This Certificate of Completion shall constitute a conclusive determination of satisfaction of the agreements and covenants contained in the Agreement with respect to the obligations of Empire, and its successors and assigns, to remove the existing community garden which is currently located on the Property, remove existing structures (including any asbestos contained therein if necessary) from the Property, and construct and install the Improvements (as defined in the Agreement) on the Property, and the dates for the beginning and completion thereof (excluding any normal and customary tenant improvements and minor "punch list" items) ; provided, however, that the City and the Agency may enter the Property for purposes of enforcing any covenant of the Agreement and Exhibit F - 1 To JDA shall have the right to offset such expenditures against sums otherwise due to Empire pursuant to the Agreement . Said Agreement is an official record of the City and a copy of the Agreement may be inspected in the office o f the City Clerk located at 300 North "D" Street, San Bernardino, California 92402, during regular business hours . Section 3 . The Property to which this Certificate of Completion pertains is more fully described in Exhibit "A" , attached hereto and incorporated herein by this reference. DATED AND ISSUED this day of 1997 . Mayor of the City of San Bernardino (SEAL) ATTEST: City Clerk Exhibit F - 2 To JDA EXHIBIT "A" TO CERTIFICATE OF COMPLETION LEGAL DESCRIPTION OF THE PROPERTY \ ti S �t y� .j Exhibit A - 1 to Certificate of Completion EXHIBIT "G" TO JOINT DEVELOPMENT AGREEMENT CITY OF SAN BERNARDINO MUNICIPAL SPORTSPLEX Phase 1 - Patton Park Construction Cost Budget Community Gardens Relocation . . . . . . . . . . . $ 88, 000 . 001 Surveying . . . . . . . . . . . . . . . . . . . . . . . 32, 000 . 00 Soil Engineer & Testing . . . . . . . . . . . . . . . . 25, 000 . 00 Grading/Demolition . . . . . . . . . . . . . . . . . 195, 000 . 00 Site Drainage . . . . . . . . . . . . . . . . . . . . . 80, 000 . 00 Sewer Lines & Tap . . . . . . . . . . . . . . . . . . . 34, 000 . 00 Water Lines . . . . . . . . . . . . . . . . . . . . . . 27, 000 . 00 Gas Distribution . . . . . . . . . . . . . . . . . . . 6, 000 . 00 Tournament Host Facilities . . . . . . . . . . . . . 35, 000 . 002 Site Concrete . . . . . . . . . . . . . . . . . . . . . 95, 000 . 00 Striping, Signage & Wheel Stops . . . . . . . . . . . . 5, 500 . 00 Asphalt . . . . . . . . . . . . . . . . . . . . . . . 162, 000 . 00 10 Foot Landscape Buffer - Arden/Pacific . . . . . . . . 19, 800 . 00 Field Underground Drainage . . . . . . . . . . . . . 296, 000 . 00 Topsoil/Amendments . . . . . . . . . . . . . . . . . 303, 000 . 00 Landscaping . . . . . . . . . . . . . . . . . . . . . 467, 000 . 00 Play Surface & Equipment . . . . . . . . . . . . . . . 35, 000 . 00 Fencing . . . . . . . . . . . . . . . . . . . . . . . 120, 000 . 00 Signage . . . . . . . . . . . . . . . . . . . . . . . . 18, 000 . 00 Site Furnishings . . . . . . . . . . . . . . . . . . . 35, 000 . 00 Field Equipment . . . . . . . . . . . . . . . . . . . . 24, 000 . 00 Field Lighting . . . . . . . . . . . . . . . . . . . 205, 000 . 00 Parking Lot Lighting . . . . . . . . . . . . . . . . . 31, 000 . 00 Electrical . . . . . . . . . . . . . . . . . . . . . . 40, 000 . 00 Asbestos Abatement . . . . . . . . . . . . . . . . . . 40 . 000 . 00 Buildings (2 @ $145, 000 . 00) . . . . . . . . . . . . . 290, 000 . 00 Subtotal $ 2 , 708 , 300 . 00 Contingency @6 . 501 176,039 S03 Total $2 , 884 , 339 . 50 Design . . . . . . . . . . . . . . . . . . . . . . . 115, 000 . 00 1 Does not include main water line and water acquisition fees, as agreed to by the City's Water Department. At the City's option, this item may be performed by the City's Public Works Department, or may be independently bid. 2 35 parking spaces for RVs to be used exclusively by tournament hosts and vendors. 3 Limited to unforseen conditions or problems with the plans. Any City requested upgrades to be paid by the City. Exhibit G - 1 To JDA Connection Fees (incl . water, sewer, gas & electric) 125, 000 . 00 Real Estate Commission . . . . . . . . . . . . . . . 144 , 696 . 00 Grand Total $ 3 , 269, 035.501 1 Total costs do not include certain fee waivers and costs for off-site improvements, including but not limited to, the widening of Arden Avenue. Such costs, if any, will be addressed as the need arises. Exhibit G - 2 To JDA San Bernardino August 16, 1996 Dear Mayor and City Council Members, It is with great pleasure and interest that I write to you with regards to the proposed soccer complex up on Highland Avenue. With no hesitation at all I would have to give a big "yes" on going through with the project. An opportunity such as this does not come around very often and when it does we should not let it go to waste! I have een the ' nera'A atuger o the Hilton Hotel over here on Lune for not t f quite two years. In that time I've served on the board of the Convention and Visitors Bureau been involved with the Western Division Playoffs of the Little League and have been involved with many other civic and private events. Everything I've seen and learned around those events tells me that the amount of business and dollars this proposed soccer facility would bring to San Bernardino would out produce most other events that are currently happening. With a minimum of twelve soccer tournament a year and an average of 150 teams at each tournament the city would theoretically attract 36,000 visitors throughout the year (minimum). This in turn could generate into revenues of around $2,000,000.00 for all of the hotels in San Bernardino. A 10% T.O.T. on those revenues could produce an additional $200,000.00 for our city each year! I could go on and on with more reasons why the city should move forward with this soccer facility but I think you get the point. Please move forward and don't hesitate to get this project completed It will be something good our city can count on! Sincerely yours, sbr Entered into Record at �. �Tim Je ns CouncillCmyDevCms Mtg: Ge al Manager by re Ageiioii 1Fl,Ot TJ/sm City ClerkICDC Secy City of San Bernardino Executive Offices,285 East Hospitality Lane,San Bernardino,California 92408 Telephone 909-889-0133 Reservations 1-800-HILTONS �' r