01/27/2005 I r10
GRRND TERR tE %Ja'nuary.27, 2005
22795 Barton Road
Grand Terrace '
Cilifornia'92313-5295 =
;i Civic Center
(909)824-6621 `
Fax(909)783-7629
Fax(969)783-2600,
Ma'ryetta Ferri .CITY; OF GRAND, TECE
Mayor --
' Bea Cortes
'Mayor Pro Tim
He'r►nan Hilkey CRA/CITY]COUNCIL
Lee Ann-Garcia
Jim Miller 5 =REGULAR 1VIEETINGS
Council Members-'
Thoigas J.Schwab t, :2ND AND ;4TH Thursd'a'y;_= 600. p:m
City Manager .
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T ' i Coun"01,Chambers ;
Grand Terrace Civic Center `-
22795 Barton Road. _ ,
CITY OF GRAND TERRACE
COUNCIL MEETING
AGENDA
CITY COUNCIL CHAMBEPS JANUARY 27, 2005
GRAND TERRACE CIVIC CENTER 6:00 PM
22795 Barton Road
THE CITY OF GRAND TERRACE COMPLIES WITH THE AMERICANS«'ITH DISABILITIES ACT OF 1990;`IF YOU
REQUIRE SPECIAL,ASSISTANCE TO PARTICIPATE-IN THIS MEETING,PLEASE CALL THE CITY'CLERK'S'
OFFICE AT(909) 824-6621 AT LEAST 48 HOURS PRIOR TO THE.MEETING. -
IF YOU DESIRE TO ADDRESS THE CITY COUNCIL DURING THE MEETING;PLEASE COMPLETE AREQUEST"
TO SPEAK FORM AVAILABLE AT-THE ENTRANCE AND PRESENTIT TO THE CITY CLERK. SPEAKERS N'VILL,
BE CALLED UPON BY THE:MAYOR AT THE-APPROPRIATE TIME.
* Call to Order- 1
* Invocation-
* Pledue of Allegiance-
Roll Call-
STAFF COUNCIL
AGENDA ITEMS RECOMMENDATION ACTION
CONVENE COMMUNITY REDEVELOPMENT AGENCY
1. Approval of 01-13-2005 Minutes Approve
2. Exclusive ENA 120 Unit Affordable Senior Housing Project Approve
3. Public Hearing - Disposition and Development Agreement with Approve
Dennis D.Jacobsen Family Holdings,LLC
4. Closed Session - Conference with Real Property Negotiations
(Government Code Section 54956.8)
Property: 11891 Preston Street
Agency Negotiator:Tom Schwab
Negotiating Parties:Robert Perez
Under Negotiation:Price and Terms of Payment
ADJOURN COMMUNITY REDEVELOPMENT AGENCY
CONVENE CITY COUNCIL MEETING
I Items to Delete '
2. SPECIAL PRESENTATIONS
A. The Foundation of Grand Terrace
B. Proclamation-Congenital Heart Defect Awareness Day
C. Proclamation-Wear Red Day for Women
COUNCIL AGENDA
01-27-2005 PAGE 2 OF 2
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AGENDA ITEMS STAFF COUNCIL
RECOMMENDATIONS ACTION
3. CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and
noncontroversial. They will be acted upon by the Council at one time '
without discussion. Any Council',Member,Staff Member,or Citizen
may request removal of an item from the Consent Calendar for f
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discussion.
A. Approve Check Registers Dated January 27,2005 Approve
B. Ratify 01-27-2005 CRA Action
C. Waive Full Reading of Ordinances on Agenda
D. Approval of 01-13-2005 Minutes Approve
E. Request for"PC or N"Letter for Type 21 General Liquor Deny
License for Grand Tefrace Market at 12490 Michigan Street
(northwest corner of Michigan and Van Buren.
F. Travel Authorization-Finance Director Authorize
G. Updated Agreement bete Teen the California State Approve '
University, San Bernardino Foundation and the City of
Grand Ten-ace to Provide locally Originated Cable I
Programming on the Education/Govei-nment Channel
During Specified Time Periods
H. Award Conti-act for the Design of the Bike Lane Project on Award
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Barton Road from Mt.Vernon to Michigan
4. PUBLIC COMMENT
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5. ORAL REPORTS
A. Committee Reports
1. Emergency Operations Convnittee
a. Minutes of 12-07=2004 Accept
B. Council Reports
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6. PUBLIC HEARINGS-None
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7. UNFINISHED BUSINESS-None
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8. NEW BUSINESS
A. Set 2005 Strategic Planning Workshop Approve
9. CLOSED SESSION-None
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ADJOUP'\
THE NEXT CRA/CITY COUNCIL MEETING WILL BE HELD
ON THURSDAY,FEBRUARY!10, 2005 AT 6:00 P.M.
... ...................................
AGENDA ITEM REQUESTS FOR THE 02-10-2005 MEETING
MUST BE SUBMITTED IN WRITING TO THE CITY CLERK'S
OFFICE BY NOON 02-03-2005�
CITY OF GRAND TERRACE
COMMUNITY REDEVELOPMENT AGENCY MINUTES
REGULAR MEETING - JANUARY 13, 2005)
A regular meeting of the Community Redevelopment Agency, City of Grand Terrace,was held in
the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California,
on January 13, 2005 at 6:30 p.m.
PRESENT: Mai-y6tta Ferre, Chairman
Hennan Hilkey,Agency Member
Lee Ann Garcia,Agency Member
Jim Miller, Agency Member
Tom Schwab, Executive Director ,
Brenda Stanfill, City Clerk
Steve Berry, Assistant City Manager
Larry Ronnow, Finance Director
Jerry Glander,Building & Safety Director
Gary Koontz, Community Development Director
John Harper, City Attorney
Lt. Hector Guerra, Sheriff's Department
ABSENT: Bea Cortes, Vice-Chainnan
APPROVAL OF 12-09-2004 MINUTES
CRA-2005-01 MOTION BY AGENCY MEMBER MILLER,SECOND BY AGENCY MEMBER
GARCIA, CARRIED 4-0-1-0 (VICE-CHAIRMAN CORTES WAS ABSENT), to
approve the December 9, 2004 Community Redevelopment Agency Minutes.
PUBLIC HEARING - RESOLUTION ADOPTING FIVE YEAR
IMPLEMENTATION PLAN
Jim Simon, RSG, indicated that they worked on the preparation of the Five Year
Implementation Plan. This plan describes the activities of the Agency over the past
five years,Redevelopment Plan goals, and a list of projects that are being proposed
- by the Agency in terms of infrastructure and economic development projects as well
as those connected to the affordable housing program. This plan does not approve
the projects listed, although several of the projects are underway and have been
approved. It also includes a description of various affordable housing requirements
that are put on the Redeveiopmen; Agency o� 5tai�_ La,�� incivainv housing
production, which generally provides a minimum number of units that must be
produced within a redevelopment project area, replacement housing, as well as
expenditures by household types which are required under Redevelopment Law.
CRIB AGENDA MEM NO.
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Community Redevelopment Agency Minutes
January 13,2005
Page 2
Chairman Ferre, opened the public hearing.
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Patricia !Farley, 12513 Michigan Street, she feels that adopting the Five Year
Implementation Plan would be damaging to the City. She feels that most of the
residents of Grand Terrace don't know,that the City Council has designated the
whole City to be the redevelopment project and that they don't understand what this
means. Because of the Redevelopment Agency the City is mandated to provide a
given amount of low, very low and low moderate income housing. Whenever
inquiries are made regarding zoning, city staff responds 'they .are only refining
descriptions, but not changing the zoning. The fact is that the zoning is being j
changed iso that the City will have a R3-20 high density residential area allowing 20
to 25 units per acre, some of which will be very low income,housing also a planned
unit development with clustered subdivisions with small pieces of property. Blue
Mountain is a special feature of Grand Terrace,the view of the mountain needs to be
protected. She feels that we don't need to dump boulders all over Grand Terrace,
there is a great mountain with plenty of boulders and hiking opportunities which is
unique for the City and should be preserved as a recreational area for people to enjoy.
There are plans to allow development of Blue Mountain with gated communities. j
She is opposed to development on Blue Mountain. The Redevelopment Agency is
allowed to give priority and financial incentives to private interests of developers at
the expense of individual homeowners and small business owners. She feels that
they are hot strengthening the economic base as the five year plan says. She feels
that they are without the knowledge and approval of the voters allowing the
Redevelopment Agency to accumulate a lot of debt for the City by buying bonds on
which principal and interest will have to be paid. Once a Redevelopment Project
Area is dreated all property tax incunment within it goes directly to the Agency and
away from cities, counties and school districts that would normally receive. Cities
can not use redevelopment money to pay for salaries, public safety or maintenance.
There is a group of city councilmembers from different councils throughout
California and attorneys that have been doing research on what has been going on
over the years in California dealing with the Redevelopment Agencies. Currently
they have found that cities don't benefit from them. She feels that the plan has all
kinds of problems and that it is unfair and it should not be approved. The
Redevelopment Agency should be stopped right now.
Chainman Ferre closed the Public Hearing and returned discussion to the Council.
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Agency Member Miller, indicated that Ms. Farley brought,up Blue Mountain and
indicated that he didn't see anything in the plan regarding Blue Mountain.
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City Manager Schwab, responded that the majority of the comments made by Ms.
Farley didn't address the Five Year Plan. The things that she stated about building
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Community Redevelopment Agency Minutes '
January 13,2005
Page 3
on Blue Mountain aren't a part of the Redevelopment Plan. The fact that we have
refinanced our bonds in order to take advantage of favorable interest rates in today's
market is not addressed in the Implementation Plan. There is an opinion in
California that Redevelopment at times doesn't do the goal that it was intended to do,
however,he feels that Grand Terrace had benefitted greatly from the Redevelopment
Agency in the City using it as a financing tool to do many infrastructure proj ects.that
would not have been done otherwise. The Redevelopment Agency does take away
from other taxing agencies and it is that money that has been used to improve the
community.
Agency Member Garcia, questioned what the life of the Redevelopment Agency is.
City Manager Schwab, responded that it is 40 years and that we have 12 left.
Agency Member Hilkev, questioned if the 20 % set-aside is covered in the plan and
the amount that the State wants to take away from the City.
City Manager Schwab, responded that it is not addressed in this document. That is
something that is separately tracked and maintained.
Agency Member Hilkev, questioned when theAgency would see that information.
Jim Simon,responded that the information would be included in the Annual Report
of the Agency.
CRA-2005-02 MOTION BY AGENCY MEMBER GARCIA, SECOND BY AGENCY MEMBER
MILLER, CARRIED 4-0-1-0 (VICE-CHAIRMAN CORTES WAS ABSENT), to
adopt a Resolution of the Grand Terrace Community Redevelopment Agency
Adopting a Five-Year Implementation Plan for the Grand Terrace Redevelopment
Project Area.
ANNUAL REPORT TO LEGISLATIVE BODY
City Manager Schwab,indicated that Section 33080.1 of the Health and Safety Code,
requires that each Redevelopment Agency within the State of California present an
annual report to its legislative body within six months of the end of the agency's
fiscal year. This is strictly an informational report and no council action is required.
CLOSED SESSION - REAL ESTATE NEGOTIATIONS (11891 PRESTON)
City Manager Schwab requested that this item be removed from the agenda and indicated
that it will be brought back to the Agency on January 27, 2005.
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Community Redevelopment Agency Minutes
Jahuary 13,2005 j
Page 4
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Chairman Ferre adjourned the Community Redevelopment Agency Meeting at 6:50 p.m., until the
next CRA/City Council!Meeting scheduled to be held on Thursday, January 27, 2005, at 6:00 p.m.
SECRETARY of the Community Redevelopment.
Agency of the City of Grand Terrace
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CHAIRMAN of the Community Redevelopment
Agency of the City of Grand Ten-ace
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o STAFF , REPORT
GRAND-TERR CE City Manager's Office
CRA ITEM (X.)' COUNCIL ITEM ( )
MEETING DATE: January 27, 2005
SUBJECT: EXCLUSIVE ENA 120 UNIT AFFORDABLE SENIOR HOUSING
PROJECT
FUNDING REQUIRED Q
'-NO FUNDING REQUIRED (X )
The Redevelopment Agency of the City of Grand Terrace has identified a need for
affordable senior housing within the City of Grand Terrace utilizing the Agency's low and
moderate income fund. Prior to this time the Redevelopment Agency has utilized it's low
and moderate income funds for the purchase, rehabilitation, and sale of single family
homes to first time home buyers. To this date over 40 homes of undergone rehabilitation ,
;,rand sale to qualified first time buyers. In addition, the City provides low interest loans to
qualified individuals to do home repairs and upgrades to maintain the affordable housing
stock within the City of Grand Terrace. "
Under the current economic real estate boom the housing purchase and rehabilitation
program is no longer viable due to the high cost of housing and the inability of most
moderate income buyers to qualify for much more than $120,000 to $150,000 as a first trust
deed payment. In order to develop a project that will continue to utilize the balance-of and
the continuing stream of housing set aside funds, we are preparing to embark on a very
substantial affordable senior housing project that will provide 120 units of senior housing,
90% of which is planned to be affordable with a 10% component being market rate. In
addition to the provision of the housing it is planned to build a new senior center building
as well as build out the Susan Petta Park.
It is estimated that this project will cost upwards of$14 million dollars with a substantial
portion coming from the Agency as assistance.
The Redevelopment Agency Board is bein-a allied to consider an 1 NIA agreement between
the Redevelopment Agency of The City of Grand Terrace, The City of Grand Terrace, and
Corporation for Better Housing. This item would be eligible for discussion in closed
session under real estate negotiations, however, since all the land being considered for this
project is currently owned, by either, the City or the Redevelopment Agency, there is no
need for any confidentiality regarding real estate negotiations and this item will be
discussed in open session.
CRA AGENDA rrEM NO. Z
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The Corporation for Better Housing is a non-profit corporation based in Sherman Oaks,.
California that has developed numerous affordable projects both for Seniors and families in
many cities in California. The closest project to Grand Terrace is the Goldware Senior G
Housing.project located adjacent to the Goeske Senior Center.in Riverside. We have i
toured several projects built and operated by the Corporation for Better Housing and-are
impressed not only w th the quality of the project itself,but with the management of the '
.project.
The Agency has already granted a contract with the Corporation for Better Housing to
conduct a space and use study, a financial proforma, and a marketing.study, all of which
indicate that there.is a need and demand for a senior project and that it is financial feasible
to do so.
STAFF RECOMMENDATION:
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STAFF RECOMMENDS COUNCIL ENTER INTO AN AGREEMENT WITH THE j
CORPORATION FOR BETTER DOUSING FOR A ONE HUNDRED AND EIGHTY �
DAY EXCLUSIVE ENA.
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EXCLUSIVE NEGOTIATION AGREEMENT
THIS NEGOTIATION AGREEMENT (the "Agreement') is made and enteted into as of
January 27, 2005 (the "Date of Agreement,),by and between the GRAND TERRACE
COMMUNITY REDEVELOPMENT AGENCY, a public agency corporate and politic
('Agency'), THE CITY OF GRAND TERRACE, a public agency corporate and politic ('City')
(collectively "Grand Terrace") and CORPORATION FOR BETTER HOUSING, a California
non-profit public benefit corporation (the"Developer") (the Developer and Grand Terrace are
collectively referred to herein as the "Parties").
RECITALS
The following recitals are a substantive part of this Agreement.
A. The Developer has informed Grand Teri-ace that it is interested in developing an
affordable senior housing project and ancillary facilities (the "Basic Development Concept")on
certain property (the "Property,") as shown on the Map which is attached hereto as Exhibit"A" and
incorporated herein.
B. The Developer has informed the City that it desires to lease the Property from City
pursuant to a,land lease for approximately 65 years.
C. Based upon Developer's Project due diligence, which includes a market study, a
senior study, architectural schematics, surveying, proforrna analysis, site review, and other related
analysis. Developer believes that an affordable senior housing project with ancillary facilities would
be feasible. Although design. rent and financial structure have not been finally determined. the
Parties have conducted many meetings. retained the services of architects. engineers and other third
party consultants. In an effort to continue processing the Project; Grand Terrace is entering into this
Agreement and is thereby affording the Developer the valuable opportunity to negotiate for
development of the Property.
D. Based partly upon (i) the interest of the Developer, (ii) assurances by the Developer
that the Developer is experienced in the development and operation of high quality affordable
housing projects, (iii)the desirability of accomplishing the development if feasible, of high quality
affordable senior housing and affiliated facilities. such as a senior center (together,the "Facilities"),
and (iv)the contention of the Developer that the proposed development can be accomplished on a
basis that provides a fair and reasonable return to the Parties,the Parties mutually desire to enter into
discussions concerning possible development of the Property generally consistent with the Basic
Development Concept:
E. The Parties intend that during and for the period of negotiations set forth herein (the
"Negotiation Period") each will perform certain actions and responsibilities under this Agreement.
NOW, THEREFORE, the Parties mutually agree as follows:
Agreement tc N-ecotiatc
a. Required Actions.
(1) Within thirty(30).days from the Date of Agreement, Developer shall
DOCSOC1802152v2122867.0016
submit to Grand Terrace a"Preliminary Development Concept Package," consisting of the following: i
(a) A detailed development proposal generally describing the
Facilities, including all development activities proposed to be undertaken (the "Proposed
Development"):
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(b) a statement of qualifications of the Developer and its joint
venture partners (if pot earlier submitted), including experience as operator of housing facilities;
(c) an estimate of development costs, including construction and
non-construction costs;
(d) a preliminary description of the proposed method of
construction and permanent financing. The person(s) or companies providing debt financing or
equity, and the provider of credit enhancement (if applicable), are to be identified by the Developer.
It is contemplated that all there will be private financing of the facilities to be developed on the
Property, but there shall additionally be financial participation toward development costs by Grand
Terrace Community Redevelopment Agency. The Developer acknowledges.that Grand Terrace may
use as funding sources the Agency's Low- and Moderate-Income Housing Fund and HOME moneys;
(e) a list of financial references--
a proposed construction and operating pro forma which
identifies all sources an'd uses of funds (including without limitation: design of the Facilities and j
supporting infrastructure; and
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(2) A full-service contract fi-om the Project Architect.
(2) Within sixty (60) days from the Date of Agreement, Developer shall
submit to Grand Terrace a "Final Development Concept Package," consisting of the following:
(a) updated information; current as of the date of submittal of the
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Final Development Concept Package, as to each and every item set forth under the heading
"Preliminary Development Concept Package'';
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(b) final identification of sources of financing, with an overview
of the terms and conditions of such financing;
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(c) final identification of the nature, amount, and provider of
financing which has been obtained or shall be provided by the Developer under a comprehensive
agreement for the disposition, development and use of the Property (a "DDA;
(d) final identification of the proposed operator;
(e) a well-defined development proposal and site plan generally
describing the Proposed Development using full schematic drawings. and which depicts in detail the
proposed design and configuration of the Facilities. including color elevations:
(f) a proposed construction schedule of development with a
detailed estimate of development costs, including construction and non-construction costs;
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(g) a detailed estimate of project income and a financial statement
and pro forma statement of project return adequate to enable the City to evaluate the economic
feasibility of the proposed development (the "Proposed Development"); and
(h) a description of the proposed method of construction and
permanent financing and amounts and sources of equity and debt capital, and a list of financial
references. '-
(i) draft project documents, including but not limited to, '
Land Lease, Regulatory Agreement, DDA,Assignment and Assumption Agreement, Subordination
Agreement, Intercreditor Agreement, and such further documents as reasonably necessary to ensure
long-term compliance and viability of the Project ("Project Documents").
(3) The Parties will review and comment on the Project Documents in-a
diligent manner and in good faith to ensure compliance hereunder.
(4) During the Negotiation Period, the developer shall bear the cost of the
environmental review process, if any, undertaken by or at the direction of the City (and the City's
Director of Community Development), including without limitation technical studies relating to
biological resources, traffic, geology, air quality, noise, and such other studies as may be deemed
necessary or appropriate by the City's Director of Community Development.
(5) The Grand Terrace and the Developer will continue to negotiate
toward the execution within such period for lease of the Property and with respect to the
development (the "Development") and use of the Property. If the Project Documents are signed. they
shall supersede this Exclusive Negotiation Agreement.
b. Term. The tern of the Negotiation Period shall be one hundred and eighty
(180) days. If upon expiration of the this Period,the Developer has not signed and submitted draft
project Documents to Grand Terrace, in form and substance acceptable to the Executive Director of
the Agency and the City Manager, this Agreement shall automatically terminate unless this
Agreement has been mutually extended by the Parties. The City and Agency vest with the Executive
Director and City Manager the authority to enter into an extension of 90 days if the Parties have
acted in good faith and with diligence, but the Parties were unable to fulfill the requirements under
this Agreement. V
C. Agreement to Negotiate. The Agency (by and through its staff and
consultants) and Developer agree that for the term of the Negotiation Period (whether said period
expires or is earlier terminated by the provisions herein) each party shall negotiate diligently and in
good faith to carry out its obligations under this Agreement. The Developer expressly agrees and
acknowledges that its rights pursuant to this Agreement are subject to and based upon compliance by
the Developer with this Agreement.
d. Termination of Aareernent If az of the 180`" day from the Date of
Agreement (11 not earlier terminated). the Developer has not sully periormeo its obligations 11,
ccordance with this Agreement or the Parties have not approved a mutually acceptable Project
Documents,then this Agreement shall automatically terminate without further written notice. Upon
such automatic termination and expiration of the Negotiation Period, both Parties knowingly agree
DOCSOC\802152v2\22867 0016
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that neither Party shall Dave any further rights or remedies to the other. However, the Parties agree
that each and every party shall act in good faith in furtherance of the Project.! Further, any party
found to be not acting in good faith shall be subject to any action in law or equity without reservation
or restriction. j
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2. Supplemental Progress Reports. In addition to the information required in
Section 1 above, for so'llong as this Agreement remains in effect Developer agrees to make as
requested oral progresslreports and monthly written reports to the City Manager or Executive
Director or his designated representative of Grand Terrace on all matters and all studies being made.
3. No Predetermination of Agency or City Discretion. The Parties agree and
acknowledge that nothing in this Agreement in any respect does or shall be construed to affect or
prejudge the exercise of the Agency's or the City's discretion. The Developer acknowledges in this
regard that the feasibility of the Developer's proposal has not been determined, and further that,at
the discretion of the Citiy's Community Development Director, an environmental review will be
prepared and circulatedl for comment by the City in connection with the consideration of the lease
and development of the Property. Further, nothing in this Agreement in an respect does or shall be
construed to affect or prejudge the Agency's or the City's discretion to consider, negotiate, or
undertake the acquisition and/or development of any portion of the Property„or shall.affect the
Agency's or the City's compliance with the laws, rules. and regulations governing land uses,
environmental review, or disposition of the Property. y
4. Environmental and Other Requirements. Certain state and local environmental
requirements (including, but without limitation,the California Environmental Quality Act of 1§70,
Public Resources Code!Section 21000, et seq.) may be applicable to the Proposed Development.
Pursuant to such requirements. certain environmental docurnents may be required to be prepared and
certified for the Propose'd Development.
5. Costs and Expenses. Except as otherwise provided in this Agreement, developer
shall be responsible for}the costs and expenses in connection with any activities and negotiations
undertaken in connection with the performance of its obligations,under this Agreement.
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6. Change in Developer. The qualifications of the Developer are of particular interest
to Grand Terrace. Consequently, no person or entity, whether a voluntary or involuntary successor
of Developer, shall acquire any rights or powers under this Agreement nor shall the Developer assign
all or any part of this Agreement without the prior written approval of Grand'Terrace, which approval
it may grant,withhold, condition, or deny at its sole and absolute discretion, except as contemplated
in the Assignment and Assurnption Agreement. Any other purported transfer, voluntarily or by
operation of law, shall be absolutely null and void and shall confer no rights whatsoever upon any
purported assignee or transferee.
7. Lead Negotiators. The City Manager, Executive Director, or his or her designee,
shall be the lead negotiator for Grand Terrace with respect to the subject matter of this Agreement;
provided,however,that Grand Terrace, reserves its rights to consider and approve or modify the.
Project and Project Documents. David Ferguson and CharlesBrumbaugh shall be the lead
negotiators for the Developer with respect to the subject matter of this Agreement.
S. )ion-Discrimination. Developer shah not discriminate against nor segregate. and
person, or group of persons on account of sex, race. color. marital status, religion, creed, national
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origin or ancestry in the sale, lease, sublease,transfer, use, occupancy, tenu>a or enjoyment of the
Property, nor shall the Developer establish or permit any such practice nor practices of discrimination
or segregation in the selection, location, number, use, or occupancy of tenants, lessees;subtenants,
sublessees or vendees of the land.
9. Address for Notices. Any notices pursuant to this Agreement shall be in writing and-
sent(i) by Federal Express (or other established express delivery service which maintains delivery
records), (ii) by hand delivery, or(iii) by certified or registered mail, postage prepaid, return receipt
requested,to the followipg addresses:
To City or Agency: CITY OF GRAND TERRACE
Attention: Thomas Schwab, City Manager
22795 Barton Rd.
Grand Terrace, CA 92313
To Developer: CORPORATION FOR BETTER HOUSING
Attention: David Ferguson
15490 Ventura Blvd. Suite 210
Sherman Oaks, CA 91403 ,
10. Default. Failure by either party to perform one or more of its duties as provided in
this Agreement shall constitute an event of default under this Agreement. The non-defaulting party
shall give written notice of a default to the defaulting party, specifying the nature of the default and
the action required to cure the default.
11. Remedies for Breach of Agreement. Neither party shall have any liability to the
other for monetary damages or specific performance for the breach of this Agreement. or failure to
reach agreement on the Project Documents, and each party hereby waives and releases any such
rights or claims it may otherwise have at law or at equity. Furthermore, the Developer knowingly
agrees that it shall have no right to specific performance for conveyance of, nor to claim any right of
title or interest in the Property or any portion thereof. Notwithstanding the foregoing. the Parties
agree to act in good faith towards the development of the Project; should any party not act in good
faith,that party shall be subject to all rights and claims allowed in law or equity.
12. Termination. In addition to its right to terminate this Agreement forthwith in the
event the Developer fails to take any action required pursuant to this Agreement by the time specified
therein, Grand Terrace shall, at its option terminate this Agreement in the event it determines that the
Developer is failing to proceed in good faith or to discharge its obligations under this Agreement;
provided-that-prior to terminating this Agreement on-grounds that Developer is not proceeding in
eood faith or is not discharging its obligations under this Agreement, Grand Terrace shall provide
notice to the Developer of its intention to terminate, and shall provide the Developer with a
reasonable time to cure such failure; a period of twenty (20) days shall be deemed to be a reasonable
cure perloC SUCI- CLID lwrino- Shall not cmelic the loin- o Ihi` vpon eaplration of sucl-
cure period. Grand I-errace may terminate this Agreement. This Negotiation Agreement shall
additionally terminate automatically, if not sooner terminated, on the one hundred and eightieth
(I 80th) day after its execution, unless sooner terminated or, by mutual written agreement, extended.
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13. Time of Essence. Time is of the essence of every portion of this Agreement in which
time is a material part. Durinb the Negotiation Period the time periods set forth in this Agreement for
the performance obligations hereunder shall apply and commence upon a complete submittal of the
applicable information or occurrence of an applicable event. In no event shall an incomplete
submittal by the Developer trigger any of Grand Terrace's obligations of review, approval and/or
performance hereunder; provided, however that Grand Terrace shall notify the Developer of an
incomplete submittal as soon as is practicable and in no event later than the applicable time set forth
for Grand Terrace's action on the particular item in question. Further,the time periods set forth
herein are outside dates of performance. In the event'a party completes a performance item earlier
that the time required hereunder, the time for the next performance obligation of a party shall
commence. Thus,the parties agree that the requirements hereunder may occur and be completed in a
shorter time frame than'set forth herein.
14. Real Estate Commissions. Nor Real Estate or brokerage fees may arise with
respect to this Agreement or the Property.
15. Press Releases. The Developer will not make any press releases without the express
written consent of the City Manager or Executive Director prior to disclosure in order to assure.
accuracy and consistency of the information.
16. Entire Agreement. This Agreement constitutes the entire understanding and
agreement of the parties, integrates all of the terms and conditions mentioned herein or incidental
hereto, and supersedes all negotiations or previous agreements between the parties or their
predecessors in interest with respect to all or any part of the subject matter hereof.
17. Agreement Does Not Constitute Development Approval. Grand Terrace reserves
final discretion and approval as to any Project Document and all proceedings and decisions in I
connection therewith. This Agreement shall not be construed as a grant of development rights or i
land use entitlements to.construct the Proposed Development or any other project. All design, I
architectural, and building plans for the Proposed Development shall be subject to the review and
approval of the Agency�and the City. By its execution of this Agreement. Grand Terrace is not
committing itself to or agreeing to undertake the disposition of the Property or other real property to
the Developer. or any other acts or activities requiring the subsequent independent exercise of
discretion by the Agency, the City. or any agency or department thereof.
I
18. Governing Law. This Agreement shall be construed in accordance with the laws of
the State of California.
19. Implem'entation of Agreement. Grand Terrace shall maintain authority to
I '
implement this Agreement through the City Manager or Executive Director (or his or her duly
authorized representative). The Executive Director shall have the authority to issue interpretations,
waive provisions, and/or enter into certain amendments of this Agreement on behalf of the Agency
so long as such actions do not materially or substantially change the uses or concept of the Proposed
Development, or add to'the costs or risks incurred or to be incurred by the Agency as specified
herein, and such interpretations, waivers and/or amendments may include extensions of time to
perform. All other materials and/or substantive interpretations. waivers. or amendments shall require
tliF CGl}FCir�t= CG'iSidel"aii01", aCtiGt and ��`ritici; CGiiSPil Clri'.it= 9C1vCrliiiif' boa;c ni ifr �i�CilC i
I
NOW THEREFORE, the Parties have executed this Exclusive Negotiation Agreement as of "
6
i
DOCSOC\802152v2\22867.0016
I
I
the date and year first set forth above.
AGENCY: '
THE GRAND TERRACE REDEVELOPMENT
AGENCY, a public body corporate and politic
By:
Executive Director
ATTEST:
Agency Secretary
CITY:
THE CITY OF GRAND TERRACE, a public body
corporate and politic
BY:
City Manager
DEVELOPER:
CORPORATION FOR BETTER HOUSING,
a California non-profit public benefit corporation
By:
— -— Its:
7
DOCSOC\802152v2\22867 0016
I �
EXHIBIT "A"
MAP
I '
[To Come]
I
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I i 1
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8
DOCSOC\802152v2\22867 0016
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CITY ,
0
STAFF REPORT
GROM TERR CE City Manager's Office
CRA ITEM (X) COUNCIL ITEM ( )
MEETING DATE: January 27, 2005
SUBJECT: DISPOSITION AND DEVELOPMENT AGREEMENT DENNIS D.
JACOBSEN FAMILY HOLDINGS, LLC
FUNDING REQUIRED Q
NO FUNDING REQUIRED (X)
In February of 2004 the Agency granted Dennis D.Jacobsen Family Holdings,LLC
("developer") an exclusive negotiating agreement for the rive acres owned by the agency
and located within the project site described in the Disposition and Development
Agreement ("agreement").
Attached to the Staff Report is an agreement that describes the development of a retail
project on the south"side of Barton Rd.-roughly-bounded-by Michigan to the west and
Canal to the east. The Agency is interested in transferring, by sale, the properties that it
currently owns within the project area as described in the agreement, to the developer in
exchange for the development of a retail commercial project. This agreement outlines the
responsibilities of both the agency and the developer. Should the developer fail to perform
as agreed no transfer or sale of Agency property will occur. The agreement does not
approve a project. The project itself must comply and conform with all of the normal
processes involved with the entitlement and construction of a project. The Agency has
retained an independent appraisal firm that has determined the value of the property and
the agreement calls for the transfer of the property at full appraised value from the Agency
to the developer. Jacobsen Family Holdings is an experienced developer with many
successful projects. The Agency is required to conduct a public hearing to take input �-
regarding the sale and transfer of agency property.
STAFF RECOMMENDATION:
STA FF RE'CO MF' DT ' TGIF A GENICY RFITTENA' A NTD DISCUS'S THE TERMS Off'
THE DISPOSITION AND DEVELOPMENT AGREEMENT AND ENTER INTO AN
AGREEMENT TO SELL AGENCY LAND TO THE DEVELOPER SUBJECT TO THE
TERMS AND CONDITIONS OF THE AGREEMENT AND ALLOW THE MAYOR TO
EXECUTE SAID AGREEMENT.
CRf; AGENDA ITEM NO.
1
DISPOSITION AND DEVELOPMENT AGREEMENT
_._. _. BY-AND BETWEEN
THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF GRAND TERRACE
AND
DENNIS D. JACOBSEN FAMILY HOLDINGS III, LLC, A CALIFORNIA LIMITED
LIABILITY COMPANY
679121 1.DOC
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•
TABLE OF CONTENTS
1. ['100] SUBJECT OF AGREEMENT........................................... ..............................4
A. [1101] Purpose of this Agreement....................................... ! ...........:.................4
B. ['102] The Redevelopment Plan......................................... .............................4
C. ['103] The Project Area ................................. ......................,...............................4
D. ['104] The Site.................................................................... .............................4
E. ['105] Parties to the Agreement.............................................'...............................5
1. ['106] The Agency. ......................................................................................5
2. ['107] The Developer...................................................................................5
3. ['108] Prohibition Against Change in Ownership, Management and
Control :of Developer. ...................................................................................5
II. ['200] DISPOSIiTION OF THE SITE..........................................:..............................6
A. ['201] Sale and Purchase ! '....................................................................................
B. ['202] Escrow ....................................................................... ..............................6.
-- C. ['203] Conveyance of Title and Delivery of Possession.....................................
10
D. ['204] Form of Deed ..........................................................................................10
E. ['205] Condition of Title ........................................................:............................10
F. ['206] Time for the Place of Delivery of Deed....................................................10
G. ['207] Payment of the Purchase Price and Recordation of the Deed ................11
H. ['208] Title Insurance.........................................................................................
11
I. ['209] Taxesl and Assessments .........................................................................11
J. ['210] Posse',ssion of the Site................................................;............................1'{
K. ['211] Zonings Etc. of the Site ...........................................................................12
L. ['212] Condition of the Site ...............................................................................12
M. ['213] Preliminary Work by the Developer.........................................................12
N. ['214] Submission of Evidence of Equity Capital and Mortga�ge Financing........13
III. ['300] DEVELOPMENT OF THE SITE............................................... .................13
A. ['301] Development of the Site by the Developer......I...................... 1.3
1. ['302] Scope of Development. ..................................... ...........................13
2. ['303] Basic Concept Drawings..................................................................13
3. ['3041 Construction Plans, Drawinqs, and Related Documents...................14
4. ['305] Agency Approval of Plans Drawings, and Related Documents.........15
5. ['306] Cost of Construction ......................................................... ........... .-
6. ['307] Construction Schedule.....................................................................16
7. ['308] E36dily Injury, Property Damage and Workers' Compensation !
Insurance.......................................................................:............................16
8. [1309] City and Other Governmental Agency Permits ...:...........................e 17
9. ['310] Rights of Access ............................................... ........................17
10. ['311] Local State and Federal Laws. .......................................................17
11. ['312] Antidiscrimination During Construction ............................................17
B. ['313] Taxes Assessments Encumbrances and Liens........:............................18
C. ['314] Prohibition Against Transfer of Site the Buildings or Structure
Thereon and Assignment of Agreement ..18 i
D ['3'151 Security Financing; Rights of Holders .....................................................19 i I
[`3'i6i IVG EnG�IITibrances Except f\/lorigarae: . Deec: of Crust. Sale_
and Leases-Back or Other Financing for Development. ............................19 j
679121 I.DOC
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2. ['317] Holder Not Obligated to Construct Improvements.............................19
3. ['318] Reserved ........................................................................................ 20
4. ['319] Reserved .........................................................................................20
5. ['320] Right of Agency to Cure Mortgage Deed of Trust or Other
Security Interest Default...............................................................................20
E. ['321] Reserved..................................................................................................20
F. ['322] Certificate of Completion ............:............................................................20
IV. ['400] USE OF THE SITE...............................................................................I........2'1 ,
A. ['401] Uses........................................................................................................21
B. ['402] Sales Tax Performance...........................................................................21
C. ['403] Obligation to Refrain From Discrimination
D. ['404] Form of Nondiscrimination and Nonsegregation Clauses .......................2
E. ['405] Effect and Duration of Covenants............................................................23
F. ['406] Rights of Access--Public Improvements and Facilities........................... 24
G. ['407] Maintenance of the Site...........................................................................24
V; ['500] DEFAULTS, REMEDIES AND TERMINATION............................................24
A. ['501] Defaults--General....................:.....................................I........................ 24
B. ['502] Legal Action.............................................................................................25
1. ['503] Institution of Legal Actions ...............................................................25
2. ['504] Applicable Law..................................................................................25
3. ['505] Acceptance of Service of Process ...................................................25
C. ['506] Rights and Remedies are Cumulative.....................................................26
D. ['507] Damages ................................................................................................26
E. ['508] Specific Performance ..............................................................................26
F. ['509] Remedies and Rights of Termination Prior to Conveyance of the
Siteto the Develo er ........................................................................................26
1. ['510] Termination by the Developer.......'...................................................26
2. ['511] Termination by the Agency..............................................................27
Vl. ['600] GENERAL PROVISIONS .............................................................................28
A. ['601] Notices Demands and Communications Between the Parties ...............28
B. ['602] Conflicts of Interest. ................................................................................28
C. ['603] Reserved.................................................................................................28
D. ['604] Enforced Delay: Extension of Times of Performance..............................28
E. ['605] Inspection of Books and Records............................................................29
F. ['606] Reserved.................................................................................................29
VII. ['700] SPECIAL PROVISIONS ..............................................................................29
A. ['701] Amendments to'this Agreement .............................................................29
Vlll.['800] ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS ..............I...........29
IX. ['900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY.......................30
2
679121 ].DOC
ATTACHMENTS
ATTACHMENT NO. 1......... Site Map
ATTACHMENT NO. 2.................... Legal Description of the Site
ATTACHMENT NO. 3.................. Project Description
ATTACHMENT NO. 4 ...................Schedule of Performance
ATTACiHMENT NO. 5....................Scope of Development
ATTACiHMENT NO. 6.................... Grant Deed
3
679121 1.DOC
THIS AGREEMENT is entered into as of the _,day of January, 2005,
by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY
OF GRAND TERRACE, (the "Agency") and DENNIS D. JACOBSEN FAMILY
HOLDING 11, LLC a limited liability company (the "Developer"). The Agency and
the Developer agree as follows:
1. p 00] SUBJECT OF AGREEMENT
A. ['101g Purpose of this Agreement
The purpose of this Agreement is to effectuate the Redevelopment Plan
(the "Redevelopment Plan") for the City of Grand Terrace Redevelopment
Project Area (the "Project Area") and to create a commercial/retail development
by providing for the sale and development of certain property (the "Site") located
within the Project Area. The Site will be a part of an overall development project .
which will be constructed on property owned by Developer (the "Project"),
(Attachment No. 3). The sale and development agreement of the Site pursuant to
this Agreement, and the fulfillment generally of the Agreement, are in the vital
and best interest of the City and the health, safety, morals and welfare of its
residents, and in accord with the public purposes and provisions of applicable
federal, state and local law and requirements.
B. ['102] The Redevelopment Plan
This Agreement is subject to the provisions of the Redevelopment Plan,
which was approved and adopted on April 19, 1979 by the City Council of the
City. Said Redevelopment Plan, and are incorporated herein by reference and
made a part hereof as though set forth in full.
Any amendment hereinafter to the Redevelopment Plan (as so approved
and adopted) which changes the uses or development permitted on the Site as
proposed in this Agreement, or otherwise changes the restrictions or controls that
apply to the Site, or otherwise affect the Developer's obligations or rights with
respect to the Site, shall require the written consent of the Developer. No other
amendments to the Redevelopment Plan shall ; require the consent of the
Developer.
C. ['103] The Project Area
The Project Area is located in the City. The exact boundaries of the
Project Area are specifically and legally described in the Redevelopment Plan.
D. ['104] The Site
ThF "SitF" is that portion of the Proiect Area designated and illustrated as
such on the "Site Map" attached hereto as Anachment Nc. ana incorporated
t
679121 1.DOC 4
herein by this reference, and having the legal description set forth in the "Legal
Description of the Site", attached hereto as Attachment No. 2, and incorporated
herein by this reference. The Site shall also include a portion of property near
the western termination of Commerce Way at Interstate 215 (the "Sign Parcel"),
which shall be sufficient in size to permit the Developer to install and maintain a
freeway sign visible from Interstate 215 advertising the Site and its occupants
(the "Sign"). , Prior to conveying the Closing Date, the Agency shall obtain all
necessary governmental approvals to permit the Developer to construct and
maintain the Sig ..
E. ['105] Parties to the Agreement
1. ['106] The Agency
The Ageincy is a public body, corporate) and politic, exercising
.governmental functions and powers and organized and existing under the
Community Redevelopment Law of the State of California (Health and Safety
Code Section 33000 et sew.) The Office of the Agency is located at 22795
Barton Road, Gland Terrace, California. "Agency" as used in this Agreement
includes the City of Grand Terrace Community Redevelopment Agency and any
assigns of or successor to its rights,'powers and responsibilities.
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2. 1 ['107] The Develo er t
The Developer is Dennis D. Jacobsen Family Holdings II, LLC, a
California limited liability company. Wherever the term "Developer" is used
herein, such term shall include any permitted nominee, assignee or successor in
interest as herein provided.
3. ['108] Prohibition Against Chanae in,Ownership,
Manaaement and Control of Developer
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The qualifications and identity of the Developer are of particular concern to
the City and the Agency, and it is because of such qualifications and identity that
the Agency has entered into this Agreement with the Developer. No voluntary or
involuntary successor in interest of the Developer shall acquire any rights or
powers under this Agreement except as expressly set forth herein. This
Agreement maybe terminated by the Agency pursuant to Section 511 hereof if,
there is any significant change (voluntary or involuntary) in the membership,
management or ;control of the Developer prior to the conveyance of title to the
Site to the Developer in violation of this Agreement.
The Developer shall not assign all or any part of this Agreement without
the prior written; approval of the Agency. Notwithstanding the foregoing, no
Agency approval shall be required for title to the Site to be taken by a separate
corporaticr.: partrlership or limited liability company formed to own and operate
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679121_LDOC 5
the project, provided that such entity is an affiliate of Developer and/or owned
and/or controlled by the Developer or by Douglas Jacobsen.
The covenants, conditions and restrictions of this Section shall, in any
event, terminate upon the expiration of the period ,referred to in Section 404 of
this Agreement.
II. 1-2001 DISPOSITION OF THE SITE ,
A. - ['201] Sale and Purchase
In accordance with and subject to all the terms, covenants and conditions
of this Agreement, the Developer agrees to purchase the Site from, the Agency
for the following amount (the "Purchase Price"):
Address APN Lot Site PricelSF Market Value
22181 Barton Road 1167-231-08 1.00 $7.50 $325,000
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22237 Barton Road 1167-231-04 1.66 $7.50 $540,000
22293 Barton Road 1167-231-01 1.38 S7.50 $450,000
2231.7 Barton,Road 1167-311-01 1.36 $7.50 $445,000
Purchase Price �1160,000
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B. ['202] Escrow
The Agency agrees to open an escrow with Fidelity National Title, Major
Accounts/Builder Services Division, 1300 Dove Street, Suite 310, Newport
Beach, California 92660, or any other escrow company approved by the Agency
and the Developer, as escrow agent (the "Escrow Agent"), in Riverside County,
within the time established in the Schedule of Performance (Attachment No. 4).
This Agreement constitutes the joint escrow instructions of the Agency and the
Developer, and a duplicate original of this Agreement shall be delivered to the
Escrow Agent upon the opening of escrow. The Agency and the Developer shall
provide such additional escrow instructions as shall be necessary and consistent
with this Agreement. The Escrow Agent hereby is empowered to act under this
Agreement, and upon indicating its acceptance of the provisions of this Section
202 in writing, delivered to the Agency and to the Developer within five (5) days
after the opening of the escrow, shall carry out its duties as Escrow Agent
hereunder
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Within ten (10) days following the mutual execution of this Agreement and
the formal approval of same by the City of Grand Terracd, Developer shall
deposit with the Escrow Agent a good faith deposit in the amount of $1Q,000.00.
Agency and Developer acknowledge that in light of Developer's existing,
approximately $111,600,000.00 investment in land immediately adjacent to the Site
in connection with the development of the Project, such good faith deposit
constitutes adeq plate consideration for purposes of this Agreement. In the event
that Developer terminates this Agreement pursuant to Section, II (L) or Section
V (F)(1), Developer shall be entitled to a return of the good faith deposit from the
Escrow Agreement, upon written request.
The Developer shall also pay in escrow to the Escrow Agent the following
fees, charges and costs promptly after the Escrow Agent :has notified the
Developer of the amount of such fees, charges and costs, but not later than ten
(10) days prior to the scheduled date for the close of escrow:
1. The portion of the premium for the title insurance policy or
special endorsements to be paid by the Developer as set
forth in Section 208 of this Agreement.
The Agency shall timely and properly execute, acknowledge and deliver a
deed conveying to the Developer title to the Site in accordance with the
requirements of Section 204 of this Agreement, together with an estoppbl
certificate certifying that the Developer has completed all acts (except deposit of
the Purchase Price) necessary to entitle the Developer to such conveyance, if' {
such be the fact.
Upon delivery of a deed to the Escrow Agent by the Agency pursuant to
Section 206 of this Aareement, the Escrow Agent shall record ,such deed when
title can be vested in the Developer in accordance with the terms and provisions 4
of this Agreement. The Escrow Agent shall buy, affix and cancel any transfer
stamps required by law and pay any transfer tax required by law. Any insurance
policies governing the Site are not to be transferred.
The Agenlcy shall pay in escrow to the Escrow Agent the following
. amounts after the Escrow Agent has notified the Agency and Developer,
respectively, of such amount, but not earlier than ten (10) days prior to the
scheduled date for closing-the Escrow:
a. Costs necessary to place the title to the Site in the
condition for conveyance required by the provisions of
this Agreement,
b. One-half of the escrow fees; !
c An.v transfer tax•
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G79121_].DOC
d. That portion of the premium for title insurance payable
by the Agency, pursuant to Section 20$ of this
Agreement; and
e. Ad valorem taxes, if any, upon the Site for any time
prior to transfer of title.
The Developer with regard to the Site shall pay in escrow to the Escrow
Agent all fees, charges and costs promptly after the Escrow Agent has notified
the Developer of the amount of such fees, charges and costs, but not earlier than
ten (10) days prior to the scheduled date for closing the Escrow, including,
without limitation, the following:
a. One-half of the escrow fee.;
b. Cost of drawing the deed;
C. Recording fees;
d. Notary fees;
e. Any State, County or City documentary stamps;
f. That portion of the premium for title insurance which
is payable by the Developer, respectively pursuant to
Section 208 of this Agreement; and
g. The Purchase Price (as reduced .by the Deposit as
earlier paid to the Agency, subject to confirmation by
the Escrow Agent).
The Escrow Agent is authorized to:
a. Pay and charge the Agency and the Developer,
respectively, for any fees, charges and costs payable
under this Section 202 of this Agreement. Before
such payments are made, the Escrow Agent shall
notify the Agency and the Developer of the fees,
i charges and costs necessary to clear title and close
the escrow;
-- -- b- --Disburse funds and deliver the deed and other
documents to the parties entitled -thereto when the
conditions of this escrow have been fulfilled by the
Agency and the Developer, and;
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679121 1.DDC
C. Record any instruments delivered through this
escrow, if necessary or proper, to, vest title in the
Developer in accordance with the terms and
provisions of this Agreement.
All funds received in this escrow shall be deposited by the Escrow Agent
with other escrow funds of Escrow Agent in an 'interest bearing 'account with any
state of national bank doing business in the State of California (with all interest
earned on such funds either applied to the balance of the Purchase Price or
released to the party entitled to such funds). Such funds may be transferred to '
any other such interest bearing account or accounts. All disbursements shall be
made on the basis of a 30-day month.
If this escrow is not in condition to close before the time for conveyance
established in Section 203 of this Agreement, either party who then shall have
fully performed the acts to be performed before the conveyance of title may, in
writing, terminate this Agreement in the manner set forth in Section 510•or 511
hereof, as the case may be, and demand the return of its money, papers or
documents. Thereupon all obligations and liabilities of the parties under this
Agreement shall cease and terminate in the manner set forth in Section 510 or
511 hereof, as the case may be.
No demand for return shall be recognized until 10 days after the Escrow
Agent shall have mailed copies of such demand to the other party or parties at
the address of,its�or their principal place or places of business. If any objections
are raised within it he 10-day period, the Escrow Agent is authorized to hold all l
money, papers a d documents with respect to the Site until instructed in writing
by both the Agency and the Developer or until the party entitled thereto has been
determined by a court of competent jurisdiction. If no such demands are made,
the escrow shall be closed as soon as possible. Nothing in this Section 202 shall
be construed to impair or affect the rights or obligations or the Agency or the f
Developer to specific performance.
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Any amendment of these escrow instructions shall be in writing and
signed by both the Agency and the Developer. At the time of any amendment,
the Escrow Agent shall agree to carry out its duties as Escrow Agent under such
amendment.
All communications from the Escrow Agent to the Agency or the
Developer shall b,e directed to the addresses and in the manner established in
Section 601 of this Agreement for notices, demands and communications
between the Agen,'cy and the Developer.
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'The liability of the Escrow Agent under this Agreement is limited to
performance of the obligations imposed upon it under Sections 202 and 208,
bosh inclus1vE of t iE ncreemen"
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Neither the Agency nor the Developer shall be liable for any real estate
commissions or brokerage fees, which may arise herefrom. The Agency and the
Developer each represent that neither has engaged any broker, agent or finder in
connection with this transaction, and agree to indemnify, defend and hold each
other harmless from and against any and all actions, claims, damages, liens,
liability, costs and expenses including, without limitation, reasonable attorneys
fees arising from their breach of the foregoing representation.
C. ['203] Conveyance of Title and Delivery of Possession
Provided that the Developer is not in default under this Agreement and all
conditions precedent to such conveyance have occurred, and subject to any
mutually agreed upon extensions of time, conveyance to the Developer of title to
the Site shall be completed on or prior to the date specified in the Schedule of
Performance (Attachment No. 4) (the "Closing Date"). The Agency and the
Developer agree to perform all acts necessary in sufficient time for title to be
conveyed in accordance with the foregoing provisions. .
Exclusive possession of the Site shall be delivered to the Developer,
concurrently with the conveyance of title on the Closing.Date, except that limited
access may be permitted before conveyance of title as permitted in Section 213
of this Agreement. The Developer shall accept title and possession on the
Closing Date.
D. ['204] Form of Deed
The Agency shall convey to the Developer title to the Site in the condition
provided in Section 205 of this Agreement by grant deed in substantially the form
set forth in Attachment No. 6.
E. ['205] Condition of Title
The Agency shall convey to the Developer fee simple title to the Site free
and clear of all recorded liens, encumbrances, assessments, leases and taxes
except as are consistent with this Agreement, provided, however, that the Site
shall be subject to covenants required pursuant to this Agreement.
F. ['206] Time for the Place of Delivery of Deed
Subject to any mutually agreed upon extensions of time, the Agency shall
deposit the grant deed for the Site with the Escrow Agent on or before the
Closing Date established for-the-conveyance of the Site in the Schedule of
Performance (Attachment No. 4).
679121 I.DOC 10
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G. [1207] Payment of the Purchase Price and Recordation of
the Deed
The Developer shall promptly deposit the Purchase Price for the Site with
the Escrow Agent upon the Date for the conveyance thereof, provided that
Escrow Agent shall have notified the Developer in writing that the Grant Deed or
other instrument conveying the Site to the Developer, properly executed and
acknowledged by the Agency, has been delivered to the Escrow Agent and that
title or possession is in condition to be conveyed in conformity with the provisions
of Section 204 of this Agreement. The Escrow Agent shall deliver the Purchase
Price to the Agency immediately following the delivery to the Developer of a title
insurance policy insuring title in conformity with Section 208 of this Agreement
and the filing of the deed or other instrument for- recordation among the land
records in the office of the County Recorder for Riverside County.
11. ['20i8] Title Insurance
Concurrent with recordation of the Grant Deed or an instrument conveying
possession, Fidelity National Title, or another title insurance company
satisfactory to the Agency and the Developer ("Title Company") shall provide
and deliver to the Developer a CLTA Owner's policy issued by Title Company
insuring that the title is vested in the Developer in the condition required by
Section 205 of this Agreement. The Title Company shall provide the insurance
policy and the, tithe insurance policy shall be in the amount of the Purchase Price
of the Site or in ;such greater amount as Developer may specify as hereinafter
provided.
The Agency shall pay only for that portion of the title insurance premium,
attributable to a CLTA Owner's policy in the amount of the Purchase Price of the
Site insuring title in the Developer
The Developer, if it desires any additional title insurance„ shall pay for all
premiums for any extended coverage or special endorsements, which it.requests.
1. ['209] Taxes and Assessments
Ad valorem taxes and assessments, if any, on the Site, and taxes upon
this Agreement or any rights hereunder levied, assessed or imposed for any
period commending prior to conveyance of title shall be borne by the Agency. All
ad valorem taxes and assessments levied or imposed -for any period
commencing after closing of the escrow shall be paid by the Developer.
J. ['210] Possession of the Site
The Agency warrants and agrees that title to the Site shall be conveyed
free of anl, possession c•nd -ieh1 of
any- possession except that of the Developer.
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679121_130C i ]]
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except as waived by the Developer in writing, and the easements of record
approved by Developer in writing prior to the closing
K. ['211] Zoning. Etc. of the Site
At the time of conveyance of the Site, the zoning thereof shall be such as
to permit development of the Site (including,the construction, use, operation, and
maintenance of the improvements thereon) as contemplated by Developer and in
accordance-with the provisions of this Agreement. The Developer shall apply for
all necessary permits and pay all necessary fees as provided in Section 309
herein below. )n addition, at the time of the conveyance of the'Site all applicable
environmental requirements shall have been satisfied by the Agency.
Agency represents that the Site is comprised of one or more legal parcels
under all state and City subdivision ordinances and regulations.
L. ['212] Condition of the Site
The Agency has no knowledge of the existence of any soil or seismic
condition, geological defect or fault or.the presence of hazardous substances.
It shall be the sole responsibility of the Developer, at the Developer's
expense, to investigate and determine the soil and seismic conditions of the Site
and their suitability for the development to be constructed thereon during the
"Feasibility Period," which for purposes of this Agreement is the one hundred and
eighty (180) day period commencing on the date that this Agreement is executed
by the Agency and the Developer and, formally approved by the City of Grand
Terrace: It shall be the sole responsibility of'the Developer--to do all work
necessary to investigate and determine the soil conditions of the Site and the
suitability of.the Site for the development to be constructed by the Developer. If
the soil conditions of the Site or any portion thereof are not in all respects entirely
suitable for the use or uses to which the Site will be put, and if Developer elects
to continue and acquire the Site it will be the sole responsibility and obligation of
the Developer to take such action as may necessary to place the Site in all
respects in a condition suitable for development.
Provided, that if the soil conditions are not in all respects entirely suitable
for the use to which the Site will be put, this Agreement.may be terminated at the
option of the Developer, by providing notice of intent to terminate to the Agency.
M_j213]_ Preliminary Work by the Developer
Prior to the conveyance of title from the Agency, representatives of the
Developer shall have the right of access to the Site at all reasonable times for the
purpose c- obtaining date anc' maklnp surveys and tests necessaR, to carry ouf
this Agreement.
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The Developer hereby indemnifies and holds the Agency harmless for any
injury or damages arising out of any activity of the Developer, its agents,
employees and ciontractors, performed and conducted on the Site pursuant to
this Section 213 except as the same may be due to the negligence 'or willful
misconduct of the Agency. The Developer shall have access to all data and
information on the Site available to the Agency, but without warranty or
representation by the Agency as to the completeness, correctness or validity of
such data and information. 1
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Any preliminary work undertaken on the Site by the Developer prior to
conveyance of title thereto shall be done only after consent of the Agency
Executive Director, or his designee, and at the sole expense of the Developer.
The Developer shall save and protect the Agency against any claims resulting
from such preliminary work, access or use of the Site which may arise by
employees, subcontractors or representatives. Copies of data, surveys and tests
obtained or made by the Developer on the Site shall be furnished to the Agency.
Any preliminary work by the Developer shall be undertaken only after securing
any necessary permits from the appropriate governmental agencies.
N. ['21A] Submission of Evidence of Equity Capital and
Mortgage Financing
Within the time set forth in the Schedule of Performance (Attachment Nb.
4) Developer shall submit to the Agency Executive Director, or his designee, a
written summary describing Developer's proposed sources of the required equity
capital and/or financing for the acquisition of the Site and the- development of
same in accordance with Scope of Development (Attachment No. 4).
111. ['300) DEVELOPMENT OF THE SITE
A. ['301] Development of the Site by the Develo er
1. ['302] Scope of Development
In the event Developer shall approve the Site during the Feasibility Period
and Purchase the Site from the Agency under the terms set forth in this
Agreement, Developer shall cause the Site to be developed as provided in the
Scope of Development (Attachment No. 5).
2. ['303] Basic Concept Drawings
Within the ;time set forth in the Schedule of Performance (Attachment
No. 4), the Developer shall prepare and submit to the Agency Executive Director,
or his designee,! for review and written approval Basic Concept Drawings
containing the overall plan for development of the Site. The Basic Concept
DrawincE s ,a11 cor,fcrr,- fc thiF Agreement, including the Scope of Development j
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679121-1.DOC 1 ,
(Attachment No. 5), and any presentation materials or site ,plans approved by the
Agency at the time of execution of this Agreement. The Agency shall approve or
disapprove the Basic Concept Drawings within the time established in the
Schedule of Performance (Attachment No. 4). Any disapproval shall state in
writing the reasons for disapproval and the specific items to be included or
revised in order to obtain the Agency's approval.
The Site shall be developed as generally established in the Basic Concept
Drawings except 'as changes may be mutually agreed upon between the
Developer and the Agency. Any such changes shall be within the limitation of
the Scope of Development (Attachment No. 5).
3. ['304] Construction Plans Drawings, and Related
Documents
The Developer shall prepare and submit construction drawings and
related documents for the development of the Site to the Agency for review
(including, but not limited to, architectural review) and written approval at the
times established in the Schedule of Performance (Attachment No. 4). The
construction drawings and related documents shall be submitted in two stages,
preliminary and final drawings, plans and specifications. Final drawings, plans,
and specifications are hereby defined as those in sufficient detail to obtain 'a
building permit. Any items so submitted and approved in writing by the Agency
shall not be subject to subsequent disapproval. Agency approval shall not be
unreasonably withheld, delayed or conditioned.
Progressively detailed plans shall -be approved by the Agency if exterior
spaces and areas open to public view do not materially vary from, and the plans
otherwise do not materially vary from previously approved plans, and if they are a
logical evolution of previously approved plans and conform to the provisions of
the Scope of Development. In the event of the disapproval by the Agency of any
plans submitted by the Developer, Agency shall promptly communicate in writing
to the Developer all reasons for such disapproval and all requirements for
subsequent approval of revised plans.
During the preparation of all drawings and plans, the Agency staff and the
Developer shall hold regular progress meetings, but no more than 3 times a
month to coordinate the preparation of, submission to, and review of construction
plans and related documents by the Agency. The Agency staff and the
Developer shall communicate and consult informally as frequently as is
necessary to insure that the formal submittal of any documents-to-the Agency
can receive prompt and speedy consideration.
If anv revisions or corrections of plans approved by the Agency shall be
requireo by governmenta, official agent\ , oepa rne;., o, bureau iicVl'"iI
jurisdiction over the development of the Site, the Developer and the Agency shall
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679121 I.DOC
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cooperate in efforts to obtain waiver of such requirements or to develop a
mutually acceptable alternative. The Agency shall not unreasonably withhold
approval of a mutually acceptable alternative. Agency shall' use reasonable
efforts to expedite all governmental approvals for the development of the Site
requested by Developer and consistent with the Scope of Development.
4. ['305] Agency Approval of Plans Drawings, and
Related Documents
Subject to the terms of this Agreement, the Agency shall have the right of
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architectural and ,site planning review of all plans and drawings for Developer's i
proposed improvements to the Site, including any changes therein. The Agency
agrees that the Developer need submit plans and submission. for architectural
and site planning 'review only to the Agency, and that the Agency shall obtain any
architectural and site planning review required by any agency, department, board
or commission of'the City within the times required hereunder for review of such
plans and submissions and changes the by the Agency, provided, however,
that nothing herein shall relieve the Developer of any obligation to submit plan'
and submissions,for special development permits or building permits to City
departments or other public agencies.
The Agency shall approve or disapprove the plans, drawings and related
documents refer red to in Section 304 of this Agreement within the time
established in thei Schedule of Performance (Attachment No. 4). Failure by the
Agency to either; approve or disapprove within the times established in the
Schedule of Pertormance shall be deemed an approval. Any disapproval shall
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state in writing the reasons for disapproval and the changes, which the Agency
requests be made. Such reasons and such changes must be consistent with the
Scope of Development (Attachment No. 5) and any items previously approved or
deemed approved hereunder by the Agency. The Developer, upon receipt of a
disapproval based upon powers reserved by the Agency hereunder, shall revise
such plans, drawings and related documents and resubmit them to the Agency
as soon as possible after receipt of the notice of disapproval, provided that in no
case shall the Agency be entitled to require changes inconsistent with the Scope
of Development and any previously approved items.
If the Developer desires to make any substantial change in the
construction plans after their approval by the Agency, the Developer shall submit
the proposed change to the Agency for its approval. If the construction plans, as
modified by the proposed change, conform to the requirements of Section 304 of
this Agreement, the approvals previously granted by the Agency under this
Section 305 and the Scope of Development (Attachment No. 4),'the Agency shall
approve the proposed change and notify the Developer in writing within thirty (30)
Such change in the construction plans
days after submission to the Agency.
shall, in any event, be deemed approved by the Agency unless rejected, in whole
679121_1.DOC
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or in part, by written notice thereof by the Agency to the Developer setting forth in
detail the reasons therefor, and such rejection shall be made within the said
period.
5. ['306] Cost of Construction
Developer shall be responsible for all funds required to pay the Purchase
Price for the Site, and to develop the Site in accordance with the Scope of
Development. Any costs incurred by Developer pursuant to this Agreement 'shall
be solely the responsibility of the Developer; except as to those non-cash costs
incurred by Agency in processing and implementing this Agreement which shall
be borne by the Agency. In any event, absent the receipt of sufficient funds for
the purchase of the Site hereunder and/or the development of the. Site, in the
sole judgment of the Developer, the Site shall not b+ conveyed by Agency to
Developer.
6. ['307] Construction Schedule
After the conveyance of title to the Site as outlined in Section 207, the
Developer shall promptly begin and thereafter diligently prosecute to completion
the construction of the improvements and the development of the Site. The
Developer shall use reasonable efforts to begin and complete all construction
and development within the times specified in the Schedule of Performance
(Attachment No. 4) or such reasonable extension of said dates as may be
granted by the Agency or as provided in Section 604 of this Agreement.
During the period of construction, but not more frequently than once a
month, the Developer shall submit to the Agency a-written progress report of the
construction if requested when and as requested by the Agency Executive
Director, or his designee. The report shall be in such form and detail as may
reasonably be required by the Agency.
7. ['308] Bodily lniury, Property Damage and Workers'
Compensation Insurance
Prior to the commencement of construction on the Site or any portion
thereof, the Developer shall furnish or cause to be furnished to the Agency
duplicate originals or appropriate certificates of bodily injury and property
damage insurance policies in the amount of at least $1,000,000 for any person,
$3,000,000 for any occurrence and $1,000,000 property damages, naming the
-Agency--and -the--City as additional or cc-insureds. -The Developer shall also
furnish or cause to be furnished to the Agency evidence satisfactory to the
Agency Executive Director, or his designee, that the general contractor with
whom it has contracted for the performance of work on the Site carries workers'
compensatior msurancc ar requires' by lav, The obligations set forte in this
Section 308 shall remain in effect only until a final Certificate of Completion has
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been issued covering the entire Site as hereinafter provided' in Section 323
hereof.
8. ['309] City and Other Governmental Agency Permits
Before commencement of construction or development of any buildings,
structure or other work of improvement upon the Site (unless such construction,
development or work is to be commenced before the conveyance of title), the
Developer shall, at its own expense, unless otherwise specified in Section 306,
secure or cause td be secured any and all permits which may be required by the
City or any other governmental agency affected by such construction., I
development or work. The Developer shall pay all associated fees. The Agency
shall provide all possible assistance deemed appropriate by the Agency to the
Developer in securing these permits.
9. ['310] Rights of Access
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For the (purposes of assuring compliance with this ' Agreement,
representatives of the Agency and the City shall have -the reasonable right of
access to the Site without charges or fees and at normal construction hours
during the period of construction for the purposes of this Agreement, including, �.
but not limited 01 the inspection of the work being performed in constructing the
improvements. Such representatives of the Agency or the City shall be thole
who are so identified in writing by the Executive Director of the Agency. The
Agency and City shall indemnify and defend the Developer, Developer's
successors and assigns, and any entity acquiring an anchor property within the
Site (an "Anchor User"), and hold them harmless from any actions, claims,
damage, liens, Iliability costs and expenses including, without limitation,
reasonable attorneys fees, caused by and/or arising out of this right to access.
10. ['311] Local State and Federal Laws
The Developer shall carry out the construction of the improvements in
conformity with all applicable laws. _
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11. ['312] Antidiscrimination During Construction
The Developer, for itself and its successors and assigns, agrees that in
the construction 11 of the improvements provided for in this 'Agreement, the
Developer will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, sex, marital status, ancestry
or national origin.
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B. [1313] Taxes Assessments Encumbrances and Liens
The Developer shall pay when due all real estate taxes and assessments
assessed if any which may be levied on the,Site for any period subsequent to
conveyance of title to or delivery of possession of the Site to Developer. Prior to
the issuance pf a Certificate of Completion, and except as provided in Section
315 et. seq. of this Agreement, the Developer shall not place or allow to be
placed on the Site any mortgage, trust deed, encumbrance or lien unauthorized
by this Agreement. The Developer shall remove of have removed any levy or
attachment made on the Site (or any portion thereof), or shall assure the
satisfaction thereof, within a reasonable time,- but in any event, prior to a sale
thereunder. Nothing herein contained shall be deemed to prohibit the Developer
from contesting the validity or amounts of any tax, assessment, encumbrance or
lien, nor to limit the remedies available to the Developer in respect thereto nor to
limit any real estate tax exemptions available to Developer for such Site.
C. ['314] Prohibition Against Transfer of Site, the Buildings or
Structure Thereon and Assignment of Agreement
After conveyance of title to the Site to Developer, and prior to the issuance
by the Agency of a Certificate of Completion pursuant to Section 322, the
Developer shall not, except as expressly permitted by this Agreement, sell,
transfer, convey, assign or lease the whole or any part of the Site or the buildings
or improvements thereon without the prior written reasonable approval of the
Agency; provided, Agency acknowledges that Developer intends to convey a
portion of the Site to one or more Anchor Users prior to the issuance of a
Certificate of Completion for such portion and Agency hereby consents to such
conveyance. This prohibition shall not apply subsequent to the issuance of the
Certificate of Completion with respect to the improvements upon the Site. This
prohibition shall not be deemed to prevent the granting of easements or permits
to facilitate the development of the Site or to prohibit or restrict the leasing of any
part or parts of a building or structure when said improvements are completed.
In the absence of specific written agreement by the Agency, no such
transfer, assignment or approval by the Agency shall be deemed to relieve the
Developer or any other party from any obligations under this Agreement until
completion of development as evidenced by the issuance of a Certificate of
Completion therefor.
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D. ['3151 Security Financing; Rights of Holders
1. ['316] No Encumbrances Except Mortgages, Deeds
of Trust Sales and Leases-Back or Other
Financing for Development
Notwithstanding Sections 313 and 314 of this Agreement, mortgages,
deeds of trust, sales and leases-back or any other form of conveyance required
for any reasonable method of financing are permitted before issuance of a
Certificate of Co T pletion, but only for the purpose of securing loans or advances
of funds to be used for financing the acquisition of the Site, the construction of
improvements on the Site and any other expenditures necessary and/or
appropriate to develop the Site under this Agreement. The Developer shall notify
the Agency in advance of any mortgage, deed of trust, sale and lease-back or
other form of conveyance for financing if the Developer proposes to enter into the
same before issuance of a Certificate of Completion. The Developer shall not
enter into any such conveyance for financing without the prior written approval of
the Agency, whiIch approval shall not be unreasonably withheld, delayed or J
conditioned (unless such lender shall be a banking or other financial institution
doing business in the State of California, or an insurance, lending institution
qualified to do business in the State of California), which approval the Agency
agrees to give if any such conveyance is given 'to a responsible financial or
lending institution' or other acceptable person or entity. Such lender shall be
deemed approved unless rejected in writing by the Agency within ten (10) days
after notice thereof to the Agency by the Developer. In any event, the Developer -
shall promptly notify the Agency of any other financing conveyance,
encumbrance or lien that has been created or attached to the Site prior to
completion of thie construction of the improvements on the Site whether by ;
voluntary act of the Developer or otherwise:-The words "mortgage" and "deed of
trust," as used herein, include all other appropriate modes of financing real estate
acquisition, construction and land development.
2. ['317) Holder Not Obligated to Construct
Improvements
The holder of any mortgage, deed of trust .or other: security interest
authorized by this Agreement shall in no way be obligated by ;provisions of this
Agreement to construct or complete the improvements or to guarantee such
construction or completion, nor shall any covenant or any other provision in the
grant deed for the Site be construed so to obligate such holder. Nothing in this
Agreement shall Ibe deemed to construe, permit or authorize any such holder to j
- - - -devote the-Site to any uses or to construct any improvements thereon other than
those uses or improvements provided for or authorized by this Agreement.
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679121_1.DOC 19
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3. ['318] Reserved
4. ['319] Reserved
5. ['320] Right of Agency to Cure Mortgage, Deed of
Trust or Other Security Interest Default
1n the event of a default or breach by the Developer of a mortgage, deed
of trust or other security interest with respect to the Site prior to the completion of
development, and the holder has not exercised its option to complete the
- development, the Agency may cure the default prior to completion of any
foreclosure. In such event, the Agency shall be entitled to reimbursement from
the Developer of all actual, itemized costs and expenses incurred by the Agency
in curing the default. The Agency shall also be entitled to a lien upon the Site to
the extent of such costs and disbursements. Any such lien shall be subject to
mortgages, deeds of trust or other security interests executed for the sole
purpose of obtaining funds to purchase and develop the Site as authorized'
herein.
E. ['321] Reserved
F. ['322] Certificate of Completion '
Promptly after completion of construction and development of the
improvements to be completed by the Developer upon the Site, as generally and
specifically required by this Agreement and in particular the Scope of
Development, the Agency shall furnish the Developer with a Certificate of
Completion upon written -request therefor--by the Developer. The Agency shall
not unreasonably withhold such Certificate of Completion and such Certificate of
Completion shall be issued so long as Developer has constructed and developed
the Site in accordance with this Agreement and plans approved by Agency
pursuant hereto. Such Certificate of Completion shall be, and shall so state,
conclusive determination of satisfactory completion of all of the construction
required by this Agreement for the Site and of full compliance with the terms
hereof with respect to the Site. After recordation of the Certificate of Completion,
any party then owning or thereafter purchasing, leasing or otherwise acquiring
any interest therein shall not (because of such ownership, purchase, lease, or
acquisition) incur any obligation or liability under this Agreement, except that
such party .shall be bound by any covenants contained in the deed, lease,
mortgage, deed of trust, contract, or other instrument of transfer which shall
---include the provisions of Sections 400 through 409 (inclusive) of this Agreement.
Neither the Agency nor any other person, after the recordation of the Certificate
of Completion, shall have any rights, remedies or controls that it would otherwise
have or be entitled to exercise under this Agreement as a result of a default in or
breach o' an, pray-is�or cf this Acreemeri; and the respective rights anc
obligations of the parties with reference to those set forth in the deeo.
20
679127_].DOC
N
The Certificate of Completion for the Site shall be in such form as to
permit it to be recorded in the Recorder's Office of San Bernardino County.
Certificates of (Completion of construction for less than the completed
improvements and development of the entire Site shall not be recorded.
If the Agency refuses or fails to furnish'a Certificate of Completion for the
Site after written irequest from the Developer, the Agency shall,' within thirty (30)
days of the written request, provide the Developer with a written statement of the
reasons the Agency refused or failed to furnish a Certificate of Completion. The
statement shall also contain the Agency's opinion of the action the Developer
must take to obtain a Certificate of Completion. If the reason for such refusal is
confined to ,the; immediate availability of specific items or materials for
landscaping, and/or minor items (being those aggregating not more than ten
percent of the estimated costs of construction of the project), the Agency will
issue its Certificate of Completion upon the posting of a bond, 'letter of credit or
cash by the Developer with the Agency in a.n amount representing a fair value of.
the work not yeti completed. If the Agency shall have failed to provide such
written statement within said 30-day period, the Developer shall be deemed to
have received the Certificate of Completion.
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Such Certiificate of Completion shall not constitute evidence of compliance
with or satisfaction of any obligation of the Developer or any holder of a
mortgage, or any insurer of a mortgage securing money loaned to finance the
improvements or any part thereof. Such Certificate of Completion is not notice of
completion as'referred to in Section 3093 of the California Civil Code.
IV. ['400) USE OF THE SITE
A. ['401] Uses
The Developer will develop the Project, including the Site for retail
commercial uses services commercial uses and a city library. The total building
area (footprint) is projected to be up to approximately 250,000 square feet.
B. ['402) Sales Tax Performance
The Developer has estimated that if the Project is fully entitled for ;
approximately 25b,000 square feet of retail space, the Project should generate a
minimum of Four, Hundred Fifty Thousand Dollars ($450,000) per year in sales
taxes from the Project and payable to the City of Grand Terrace upon full
occupancy of the;improvements constructed within the Site by Developer. t
C. ['403] Obligation to Refrain From Discrimination
The Developer covenants by and for itself and any successors in interest
that there shall ,be no discrimination against or segregation of any person or
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479121 1.DOC
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group of persons on account of race, color, creed, religion, sex, marital status,
ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the site, nor shall the Developer itself or any person
claiming under or through the Developer 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 site. The foregoing covenants shall run with the land.
D. ['404j Form of Nondiscrimination and Nonsegregation
Clauses
The Developer shall refrain from restricting the rental, sale or lease of the
Site on the basis of race, color, creed, religion, sex, marital status,, ancestry or
national origin of any person. All such deeds, leases (including rental
agreements) or contracts shall contain or be subject to substantially the following
nondiscrimination_ar nonsegregation clauses: ,
a. 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, national origin or ancestry
in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the premises herein conveyed,
- nor shall_the grantee I imself 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 in the
premises herein conveyed. The foregoing covenants
shall run with the land."
b. 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, and this lease is made
and accepted upon and subject to the following
conditions:
"That there shall be no discrimination against or
segregation of any person or group of persons on
account Gi iacf- c0101, C166c., rEl1geo , se;. ?� ar= a
status, national origin or ancestry, in the leasing,
22
079]21_1.DOC
subleasing, transferring, '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 practice or practices of discrimination or
segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees,
I subtenants, sublessees or vendees' in the premises
herein leased."
C. 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, national origin or ancestry, in the sale, lease,
sublease, transfer, use, occupancy, tenure or
enjoyment of the premises, or 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 land."
E. ['4051 Effect and Duration of Covenants
The covenants contained in Article IV of this Agreement (which shall be
contained in the grant deed) shall remain in effect one (1) day following the
issuance of a Certificate of Completion pursuant to this Agreement unless this
Agreement provides for the earlier termination, except that the covenants against
discrimination shall remain in perpetuity. The covenants established in Article IV
of this Agreement (which shall be contained in the grant deed) shall, without
regard to technical classification and designation, be binding for the benefit and
in favor of the Agency, its successors and assigns or any part hereof.
The Agency is deemed the principal beneficiary of - the terms and
provisions of this Agreement and of the covenants running with the land for and
in its own rights and for the purpose of protecting the interests of the community
and other parties; public or private, in whose favor and for whose benefit this I !
Agreement and the covenants running with the land have been provided. This
Agreement and the covenants shall run in favor of the Agency without regard to I i
whether the Agency has been, remains or is an owner of any land or interest
therein in the Site, any parcel or subparcel, or in the Project Area. The Agency
shall have the right, if the Agreement or covenants are breached, to exercise all
rights and remedies and to maintain any actions or suits at lave or in equity or j
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679121_].DOC i
other proper proceedings to enforce the curing of such breaches to which it or
any other beneficiaries of this Agreement and covenants may be entitled
F. ['406] Rights of Access--Public Improvements and Facilities
The Agency, for itself and for the City and other public agencies, at their
sole risk and expense, reserves the right to enter the Site or any part thereof at
all reasonable times and with as little interference as possible (and without
interference to any permanent structure on the Site) for the purposes of
construction, reconstruction, maintenance, repair or service of any public
improvements or public facilities located on the Site and which are for the sole
purpose of providing public services to the Site or its occupants. Any such entry
shall be made only after reasonable notices to the Developer, and the Agency
shall indemnify and hold the Developer, and Developer's tenants, successors
and assigns, harmless from any claims or liabilities .pertaining to any entry. Any
damage or injury to the Site resulting from such entry shall be promptly repaired
at the sole expense of the public agency responsible for the entry.
G. ['407] Maintenance of the Site
Solely at Developers expense, the Developer will maintain or cause to be
maintained the improvements on the Site to be constructed or developed
pursuant to this Agreement. Developer will keep or cause the Site to be kept
reasonably free from any accumulation of debris or waste materials. The
Developer will aiso maintain or cause the landscaping required to be planted
under the approved plan in a healthy condition.
If at any time, Developer fails to maintain-the Site or cause the Site to be
maintained as required and said condition is not corrected after the expiration of
forty-five (45) days from the date of written notice from the Agency to Developer
and the current owner of the portion of the Site at issue, the Agency may perform
the necessary landscape, or other maintenance and Developer will pay all costs
incurred for such maintenance within thirty (30) days following Developer's
receipt of a detailed written invoice for same from the Agency.
V. 1"500] DEFAULTS, REMEDIES AND TERMINATION
A. ['501] Defaults--General
Subject'to the extensions of time set forth in Section 604, failure or delay
---by-either party-to perform any to--rm or provision of this Agreement constitutes a
default under this Agreement. The party who so fails or delays shall complete
such cure, correction or remedy with reasonable diligence and during any period
of curing shall not be in default.
24
679121 ].DOC
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The injured party shall give written notice of default to the party in default
specifying the default complained of by the inured party. Except as required to
protect against further damages and except as otherwise expressly provided in
Sections 507 and 508 of this Agreement, the injured party may not institute
proceedings against the party in default until forty-five (45) days after giving such
notice. Failure on delay in giving such notice shall not constitute a waiver of any
default nor shall it;change the time of default.
Except as otherwise expressly provided in this Agreement, any failure or
delay by either party in asserting any of its rights or remedies as to any default -
shall not operate as a waiver of any default or of any such rights or remedies or
deprive such party of its right to institute and maintain any actions or proceedings
which it may deem, necessary to protect, assert or enforce any such rights or
remedies.
B. [' 02] Legal Action
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1. ['503] Institution of Legal Actions
In addition to any other rights or remedies, either party may institute legal
action to cure, correct or remedy any default, or recover damages for any default,
or to obtain any other remedy consistent with the purpose of this Agreement.
Such legal action's must be instituted in the Superior Court of the County of
Riverside, State of California, in an appropriate municipal court in that County or
in the appropriate federal District Court in the State of California.
2 ['504] Applicable Law
The laws of the State of California shall govern the interpretation and
enforcement of this Agreement.
3. ['505) Acceptance of Service of Process
In the event that any legal action is commenced by the Developer against
the Agency, service or process on the Agency shall be made by personal service
upon the Chairman of the Agency or in such other manner as may be provided
by law.
In the event that any legal action is commenced by the Agency against the
Developer, service of process on the Developer shall be made by personal
service upon the Developer or in such other manner as may be provided by law
and shall be valid whether made within or without the State of California:
25 i
679121 1-DOC
C. ['506] Rights and Remedies are Cumulative
Except as otherwise expressly stated in this Agreement, the ribhts and
remedies of the parties are cumulative, and the exercise by any party of one or
more of such rights or remedies shall not preclude the exercise by it, at the same
time or different times, of any other rights or remedies for the same default or any
other default by the other party.
D. ['507] Damages_
If the Developer or the Agency defaults with regard to any of the
provisions of this Agreement, the non-defaulting party shall serve written notice
of such default upon the defaulting party. If the default is not cured or
commenced to be cured by the defaulting party within forty-five (45) days after
service of the notice of default, the defaulting -party shall be liable to the other ,
party for any damages caused by such default.
E. ['508] Specific Performance
If the Developer or the Agency defaults under any of the provisions of this
Agreement, the non=defaulting party shall serve written notice of such default
upon the defaulting party. If the default is not commenced to be cured by the
defaulting party within forty-five (45) days of service of the notice of default, the
non-defaulting party, at its option, may institute an action for the specific
performance of the terms of this agreement.
F. ['509] Remedies and Rights of Termination Prior to
Convevance of the Site to the Developer
1. ['510] Termination by the Developer
In the event that, prior to conveyance of title to the Site to the Developer
(in addition to and not in lieu of any of Developers remedies set forth in Section
508 above):
a. The Developer disapproves the condition of title to the
Site within thirty (30) days of the receipt of the
preliminary title report for reasons which cannot be
corrected by the Agency prior to the time set forth
herein for the conveyance of. the Site to the
_ Developer; or---
b. The Developer disapproves the soil and geologic
conditions or the Phase I Study of the Site in the
manner and with the time set forth in Section 212 of
this Agreement; or
26
679121 130C
i
c_ The Agency does not tender conveyance of the Site
or possession thereof in the manner and condition
and by the date provided in this Agreement and in any
such failure is not cured within thirty (30) days after
written demand by the Developer; or;
d. The Developer does not obtain the capital advance
proceeds required to purchase the Site.
Then, in any' event, this Agreement shall, at the option of the Developer, be '
terminated by written notice thereof to the Agency. Upon such termination,
neither the Agency nor the Developer shall have any further rights against or
liability to the othler,under this Agreement.
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2. ['511] Termination by the Agency
In the event that prior to conveyance of title to the Site to the Developer
and in violation of this Agreement:
a, The Developer transfers or assigns or attempts to
transfer or assign this Agreement or any rights herein
or in the Site or the buildings or improvements
thereon in violation of this Agreement; or
b. There is any significant change in the ownership or
j identity of the Developer or the parties in control of
the Developer or Developer or the degree thereof
contrary to the provisions of Section 108 hereof; or
c. The Developer does not pay the Purchase Price and j
take title to the Site under tender of conveyance by
the Agency pursuant to this Agreement; or
d. Trhe Developer is in breach or default with respect to
any other obligation of the Developer under this
Agreement; and
I
e. If any default or failure referred to in subdivision c or d
of this Section shall not be cured within forty-five (45)
days after the date of written demand by the Agency;
Then this Agreement, and any rights of the Developer or ,any assignee or
transferee in this Agreement pertaining thereto or arising therefrom with respect
to the Agency, shall, at the option of the Agency, be terminated by the Agency.
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VI. ['600] GENERAL PROVISIONS
A. ['601] Notices,- Demands and Communications Between the
Parties
Formal notices, demands and communications between the Agency and
the Developer'shall be sufficiently given if,dispatched by registered or certified
mail, postage prepaid, return receipt requested, to the principal offices of the
Agency and the Developer as set from in Section 105 hereof. Such written '
notices, demands and communications may be sent in the same manner to such
�- other addresses as either party may from time to time designate by mail.
B. ['602] Conflicts of Interest
No member, official or- employee of the Agency shall have any personal
interest, direct or indirect, in this Agreement, nor shall any such member, official
or employee participate in any decision relating to this agreement which affects
his personal interests or the interests of any corporation, partnership, or
association in which he is directly or indirectly interested.
The Developer warrants that it has not paid or given, and will not pay or
give, any third person any money or other consideration for obtaining this
Agreement.
C. ['603] Reserved
D. ['604] Enforced Delay' Extension of Times of Performance
In addition to the specific provisions of this•Agreement, performance by
any party hereunder shall not be deemed to be in default where delays or
defaults are due to war; insurrection; strikes; lock-outs; riots; floods; earthquakes;
fires; casualties; acts of God; acts of public enemy; epidemics; quarantine
restrictions; freight embargoes; lack of transportation; governmental restrictions
or priority; litigation; unusually severe weather; irfability to secure necessary
labor, materials, or tools; delays of any contractor, subcontractor or supplier; acts
of another party; acts or the failure to act of any public or governmental agency
or entity (except that acts or the failure to act of the Agency shall not excuse
performance by the Agency) or any other causes beyond the control or without
the fault of the party claiming an extension of time to perform. An extension of
time for any such cause shall only be for the period of the enforced delay, which
period shall commence to run from the time of the commencement of the cause.
If, however, notice by the party claiming such extension is sent to the other
parties more than thirty (30) days after the commencement of the cause, the
period shall commence to run only thirty (30) days prior to the giving of such
noticE. Time: c- performance under this Agreement maxi also be extended in
writing by the Agency and the Developer.
28
679123 1.DOC
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E. ['605] Inspection of Books and Records
The Agency has the right, upon not less than seventy-two (72) hours
notice, at all reasonable times, to inspect the books and records of the Developer
pertaining to the Site as pertinent to the purposes of this Agreement.
The Developer also has the right, upon not less than seventy-two (72)
hours notice, at all reasonable times, to inspect the books and records of the
Agency pertaining to the Site as pertinent to the purposes of this Agreement.
F. ['606] Reserved
VII. ['700] j SPECIAL PROVISIONS
Notwithstanding anything in this Agreement to the contrary, no
amendment to this Agreement shall be effected without the prior written approval
of the Agency, hisi successor or assigns.
A. [701] Amendments to this Agreement
The Developer and the Agency agree to mutually consider reasonable
requests for amendments to this Agreement which, may be made by any of the
parties hereto, lending institutions or financial consultants to the Agency,
provided such requests are consistent with this Agreement and would not
substantially alter�the basic business terms included herein.
Vlll. ['800] ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS
This Agreement is executed in four (4) duplicate counterparts, each of
which is deemed ;to be an original. This Agreement comprises Pages 1 through
30, inclusive, and Attachment Nos. 1 through 6, attached hereto and
incorporated herein by reference, all of which constitute the entire understanding
and agreement of the parties.
This Agreement integrates all of the terms and conditions mentioned
herein or - incide'ntal hereto, and supersedes all negotiations or previous
agreements between the parties with respect to all or any part of the subject
matter hereof.
All waivers of the provisions of this Agreement must be in writing and
signed by the appropriate authorities of the Agency and the Developer, and all
amendments hereto must be in writing and signed by the appropriate authorities
of the Agency and the Developer.
679121_1.DOC 29
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IX. ['900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
This Agreement, when executed by the Developer and delivered to the
Agency, must be authorized, executed and delivered by the Agency within forty-
five (45) days after the date of signature by the Developer of this Agreement shall
be void, except to the extent that the Developer shall consent in writing to further
extensions of time for the authorization, execution and delivery of this
Agreement. The effective date of this Agreement shall be the date when this
Agreement has been signed by the Agency.
DATED: , 2005
COMMUNITY REDEVELOPMENT
AGENCY
- OF THE CITY OF-GRAND TERRACE
By:-
Maryetta Ferre'. Chairman
DATED: , 2005
DENNIS D. JACOBSEN FAMILY
HOLDINGS 11, LLC, A CALIFORNIA
LIMITED LIABILITY COMPANY
By:
Doug Jacobsen, Manager
ATTEST:
Secretary
APPROVED BY:
AGENCY COUNSEL
Agency Counsel
30
679121_1.DOC
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ATTACHMENT NO. 1
Site Map
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[attached)
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674721_1.DOC J
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?ate 1167-931 1167-311
APN 11 APN# APN# APN# APN# PV PN APN# APN# APN# APN# 11
1167 1167 APN# APN#
x 167 2� -11 1167-231-16 1167-231-09 1167- 1167- _231 -23 1167= 1167- 1167- i 167- 1167-
231-08 231-07 -o6 -05 231-44 231-03 1167-231-02 231-01 331-01 331-02
Ifl 1
1 '1
APN#
I 1167-231-12
/
F -
APN# � -
1167-231-13
u ------------------
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ATTACHMENT NO. 2
Legal Description of the Site ,
[attached]
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67912]_].DOC
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THE EAST 100 FEET OF LOT 3, IN SECTION 5, TOWNSHIP 2 SOUTH, RANGE 4 WEST,
SAN BERNARDINO MERIDIAN, ACCORDING TO MAP OF EAST RIVERSIDE LAND
COMPANY, IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE
OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 44 OF MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT NORTH 171 FEET AS CONVEYED TO THE CITY OF GRAND TERRACE BY DEED
RECORDED DECEMBER 11, 1986 AS INSTRUMENT NO. 86-376453OF OFFICIAL
RECORDS.
APN## 1167-231-01
l
1
PARCEL]:
I
THE WEST 100 FEET OF THE EAST 200 FEET OF LOT 3,SECTIONS,TOWNSHIP 2 SOUTH,
RANGE 4 WEST,SAN 13ERNARDINO BASE AND MERIDIAN,ACCORDING TO MAP OF FAST
RIVERSIDE LAND COMPANY,AS PER PLAT RECORDED IN BOOT{6 OF MAPS,PAGE 44,
RECORDS OF SAID COUNTY
EXCEPTING THEREFROM THE NORTHERLY 17.00 FEET THEREOF AS CONVEYED TO THE
CITY OF GRAND TERRACE,BY DEED RECORDED APR1L 1 5, 1 987 AS INSTRUMENT NO. 87-
1236160FFICIAL ECORDS.
PARCEL 2:
THE WEST 40 FEETJOF THE 240 FEET OF LOT 3,SECTION 5,TOWNSHIP 2 SOUTH,RANGE
4 WEST,SAN BERNARDINO BASE AND MERIDIAN,ACCORDING TO MAP OF EAST
RIVERSIDE LAND COMPANY,AS PER PLAT RECORDED 1N BOOK 6 OF MAPS,PAGE 44,
RECORDS OF SAID COUNTY.
EXCEPTING THEREFROM THE NORTHERLY 17.00 FEET THEREOF AS CONVEYED TO THE
CITY OF GRAND TERRACE,BY DEED RECORDED APRIL 1 5, 1987 AS INSTRUMENT NO. 87-1
2361 6 OFFICIAL RECORDS.
Assessor's Parcel No: 1 167-231-02
{
THE WEST 120 FEET OF THE EAST 360 FEET OF LOT 3,SECTION 5,TOWNSHIP 2 SOUTH,
RANGE 4 WEST, SAN BERNARDINO MERIDIAN,ACCORDING TO MAP OF EAST RIVERSIDE
LAND COMPANY,IN THE CITY OF GRAND TERRACE,COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 6 PAGE 44 OF MAPS,IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. '
EXCEPT THE NORTHERLY 1 7.00 FEET AS CONVEYED TO THE CITY OF GRAND TERRACE BY
DEED RECORDED.AUGUST 18, I986 AS INSTRUMENT NO.86-234863 OFFICIAL RECORDS.
Assessor's Parcel No: 1167-231-03-0-000
I I
THE WEST 120 FEET OF THE EAST 480 FEET OF LOT 3, IN SECTION 5,,TOWNSHIP 2
SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO MAP OF EAST
RIVERSIDE LAND COMPANY, IN THE CITY OF GRAND TERRACE, COUNTY OF SAN
BERNARDINO, STATE IOF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 44
OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT THE NORTH 17 FEET AS CONVEYED TO THE'CITY OF GRAND TERRACE BY
DEED RECORDED MAY 19, 1987 AS INSTRUMENT NO. 87-167448 OF OFFICIAL
RECORDS.
APN# 1 167-231.-04
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LOT 3,SECTION 5,TOWNSHIP 2 SOUTH,RANGE 4 WEST,SAN BERNARDINO BASE AND
MERIDIAN,AS SHOWN ON THE MAP OF EAST RIVERSIDE LAND COMPANY,AS PER PLAT
RECORDED IN BOOK 6 OF MAPS,PAGE 44,RECORDS OF SAID COUNTY.
SAVING AND EXCEPTING THE EAST 480 FEET THEREOF.
ALSO EXCEPTING THE WEST 70 FEET THEREOF. '
ALSO EXCEPTING THE NORTHERLY 17.00 FEET THEREOF AS CONVEYED TO THE CITY OF
GRAND TERRACE BY DEED RECORDED APRIL 8, 1 987 AS INSTRUMENT NO. 87-11
56770FFJCIAL RECORDS,
Assessor's Parcel No: 1167-231-05-0-000
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THE WEST 70 FEET OF LOT 3,SECTION 5,TOWNSHIP 2 SOUTH,RANGE 4 WEST,SA
BERNARDINO MERIDIAN,ACCORDING TO MAP OF EAST RIVERSIDE LAND COMPANY,IN
THE CITY OF GRAND TERRACE,COUNTY OF SAID'BL-RNARDINO,STATE OF CALIFORNIA,
AS PER MAP RECORDED IN BOOK 6 PAGE 44 Or- MAPS,IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
EXCEPT THE NORTHERLY 1 7.00 FEET AS CONVEYED TO THE CITY OF GRAND TERRACE BY
DEED RECORDED AUGUST 18, I 986 AS INSTRUMENT NO. 86-234861 OFFICIAL RECORDS.
Assessor's Parcel No: 1167-231-06-0-000 I
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THE EAST 1 ACRE OF THAT PORTION OF LOT 4, LYING NORTH OF THE NORTH LINE OF
THE SOUTH 2O3.39 FEET OF SAID LOT 4, IN SECTION 5, TOWNSHIP 2 SOUTH,,RANGE
4 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE
OF CALIFORNIA, ACCORDING TO MAP SHOWING LANDS OF THE EAST RIVERSIDE
LAND COMPANY, AS PER MAP RECORDED IN BOOK 6, PAGE 44 OF MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
AREAS AND DISTANCES DESCRIBED HEREIN ARE MEASURED TO THE CENTERLINE OF
ADJOINING STREETS AS SHOWN ON SAID MAP.
Assessor's Parcel No: 1 167-231-07-0-000
PARCEL A:
THE WEST ONE ACRE OF THE EAST TWO ACRES OF LOT 4, IN SECTION 5, TOWNSHIP
2 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO MAP OF
EAST RIVERSIDE LAND COMPANY, IN THE CITY OF GRANT TERRACE, COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 44
OF MAPS, IN THE�OFFICE OF THE COUNTY RECORDER OF._SAID COUNTY.
EXCEPT THEREFROM THE SOUTH 2O3.39 FEET, THE NORTH LINE OF THE SOUTH
203.39 FEET BEING DRAWN PARALLEL WITH THE SOUTH LINE OF SAID LOT.
ALSO EXCEPT THE NORTH 17 FEET AS CONVEYED TO THE CITY OF GRAND TERRACE
BY DEED RECORDED AUGUST 29, 1986 AS INSTRUMENT NO. 86-24,760 OF OFFICIAL
RECORDS.
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AREAS AND DISTANCES OF THE ABOVE DESCRIBED PROPERTY ARE COMPUTED TO
THE CENTER LINE OF ADJOINING STREETS AND ROADS.
APN#1 167-231-08
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ALL THAT PORTION OF LOT 4,IN SECTION 5,TOWNSHIP 2 SOUTH,RANGE 4 WEST, SAN
BERNARDINO MERIDIAN,ACCORDING TO MAP SHOWING LANDS OF EAST RIVERSIDE
LAND COMPANY,IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFOR-AN A,AS PER
MAP RECORDED IN BOOK b,PAGE 44 OF MAPS,IN THE OFFICE OF THE COUNTY RECORDER
OF SAID COUNTY,DESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE SOUTH LINE OF BARTON ROAD(FORMERLY
PALM AVENUE)WITH THE WEST LINE OF THE EAST 2 ACRES OF SAID LOT 4;THENCE
SOUTH 1 93 FEET;THENCE WEST 127 FEET;THENCE NORTH 1 93 FEET TO THE SOUTH LINE
OF BARTON ROAD;THENCE EAST 127 FEET TO THE POINT OF BEGINNING.
Assessor's Parcel No: 1167-231-09
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PARCEL NO. 1:
THAT PORTION OF LOT 4, IN SECTION 5,TOWNSHIP'2 SOUTH,RANGE 4 WEST,SAN
13ERNARDIN0 MERIDIAN,IN THE COUNTY OF SAN BERNARDINO,STATE OF
CALIFORNIA,ACCORDING TO THE MAP SHOWING LANDS OF EAST RIVERSIDE LAND
COMPANY,AS PER MAP RECORDED IN BOOK 6,PAGE 44 OF MAPS,IN THE OFFICE OF THE
COUNTY RECOR IER OF SAID COUNTY,DESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE SOUTH LINE OF BARTON ROAD, 66 FEET WIDE,
(FORMERLY PALM AVENUE)WITH THE EAST LINE OF MICHIGAN AVENUE,66 FEET WIDE;
THENCE SOUTk3 ALONG THE EAST LINE OF SAID MICHIGAN AVENUE,A DISTANCE OF 142
FEET TO THE TRUE POINT OF BEGINNING;THENCE EAST PARALLEL WITH THE SOUTH LINE
OF BARYON ROAD,A DISTANCE OF']50 FEET;THENCE SOUTH PARALLEL WITH THE EAST
LINE OF MICHIGA AVENUE,A DISTANCE OF 33 FEET;THENCE WEST PARALLEL WITH
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THE SOUTH LINE OF BARTON ROAD,A DISTANCE OF 150 FEET TO THE EAST LINE OF
MICHIGAN AVENUE;THENCE NORTH ALONG THE EAST LINE OF MICHIGAN AVENUE,A
DISTANCE OF 33 FEET TO THE POINT OF BEGINNING.
PARCEL NO.2:
THAT PORTION OF LOT 4, IN SECTION 5,TOWNSHIP 2 SOUTH,RANGE 4 WEST,SAN
BERNARDINO MERIDIAN,IN THE COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA, ACCORDING TO THE MAP SHOWING LANDS OF EAST RIVERSIDE LAND
COMPANY,AS PER MAP RECORDED IN BOOK 6,PAGE 44 OF MAPS,IN THE,OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY,DESCRIBED AS FOLLOWS:
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BEGINNING AT TIDE INTERSECTION OF THE SOUTH LINE OF BARTON ROAD,66 FEET WIDE,
(FORMERLY PALM AVENUE)WITH THE EAST LINE OF MICHIGAN AVENUE, 66 FEET WIDE;
THENCE EAST ALONG THE SOUTH LINE- OF BARTON ROAD,A DISTANCE OF 1 50 FEET TO
THE TRUE POINT OF BEGINNING;THENCE EAST ALONG THE SOUTH LINE.OF BARTON
ROAD,A DISTANCE OF 155 FEET TO A POINT,SAID POINT BEING 127 FEET WEST OF THE
NORTHWEST CORNIER OF THE EAST 2 ACRES OF SAID LOT 4,LYING NORTH OF THE SOUTH
203.39 FEET OF THE SAID LOT 4;THENCE SOUTH PARALLEL WITH THE EAST LINE OF
MICHIGAN AVENUE',A DISTANCE OF 1 75 FEET;THENCE WEST PARALLEL WITH THE
SOUTH LINE OF SAID BARTON ROAD,A DISTANCE OF 1 55 FEET,SAID POINT BEING EAST A
DISTANCE OF 1 50'FEET FROM THE EAST LINE OF SAID MICHIGAN AVENUE;THENCE
NORTH PARALLEL WITH THE EAST LINE OF MICHIGAN AVENUE,A DISTANCE OF 1 75
FL-ET TO THE POINT OF BEGINNING
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Assessor's Parcel No: 1167-231-10
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THAT PORTION OF LOT 4,IN SECTION 5,TOWNSHIP 2 SOUTH,RANGE 4 WEST,SAN
BERNARDINO MERIDIAN,ACCORDING TO MAP SHOWING LANDS OF EAST RIVERSIDE
LAND COMPAI�Y,IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER
MAP RECORDED IN BOOK 6,PAGE 44 OF MAPS,IN THE OFFICE OF THE COUNTY RECORDER
OF SAID COUNTY,DESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE SOUTHERLY LINE OF BARTON ROAD,(66 FEET ,
WIDE),FORMERLY PALM AVENUE,AND THE EASTERLY LINE OF MICHIGAN AVENUE(66
FEET WIDE),A SHOWN IN BOOK 19,PAGE 4 OF RECORD OF SURVEYS,RECORDED ON
OCTOBER 3, 19.1,IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN BERNARDINO
COUNTY;THENCE S6UTH 00°01' 14"EAST,ALONG SAID EASTERLY LINE OF MICHIGAN
AVENUE, 142.00 FEET;THENCE NORTH 89'50'33" EAST,PARALLEL WITH SAID
SOUTHERLY LINE OF BARTON ROAD 1 50.00 FEET;THENCE NORTH 0'01' 14"WEST,
PARALLEL WITH SAID LINE OF MICHIGAN AVENUE, 142.00 FEET TO SAID SOUTHERLY
LINE OF BARTON ROAD;THENCE SOUTH 89' 50'33"WEST,ALONG SAID SOUTHERLY LINE
OF BARTON ROAD, 1 50.00 FEET TO TIDE POINT OF BEGINNING.
EXCEPT THAT PORTION CONVEYED TO THE COUNTY OF SAN BERNARDINO,BY DEED
RECORDED APRIL 28, 1965 IN BOOK 6380,PAGE 315,OFFICIAL RECORDS,DESCRIBED AS
FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE SOUTHERLY LINE OF BARTON ROAD, 66.00
FEET WIDE,(FORMERLY PALM AVENUE)AND THE EASTERLY LINE OF MICHIGAN STREET,
66.00 FEET WIDE,AS Sl-3OWN ON MAP RECORDED IN BOOK 19,PAGE 4 RECORD OF
SURVEYS ON FIDE IN THE OFFICE OF THE COUNTY RECORDER:T14ENCE NORTH 890 50,33"
EAST ALONG SAID SOUTHERLY LINE OF BARTON ROAD A DISTANCE OF 1 50 00 FEET;
THENCE SOUTH 00 01' 14"EAST ALONG A LINE PARALLEL WITH THE CENTER LINE OF
SAID MICHIGAN STREET.A DISTANCE OF 17.00 FEET TO AN INTERSECTION WITH A LINE
THAT IS PARALLEL WITH,AND DISTANT 50.00 FEET SOUTH OF THE CENTER LINE OF
SAID BARTON ROAD;THENCE SOUTH 89' 50'33"WEST ALONG SAID PARALLEL LINE A
DISTANCE OF 130.05 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE
SOUTHEAST,HAVING A RADIUS OF 20.00 FEET;THENCE SOUTHWESTERLY ALONG SAID
TANGENT CURVE,THROUGH AN ANGLE OF 89°51-47" A DISTANCE OF 31 .37 FEET TO A
POINT OF TANGENCY WITH THE EAST LINE OF SAID MICHIGAN STREET;THENCE NORTH
0`01' 14"WEST ALONG SAID EAST LINE OF MICHIGAN STREET,A DISTANCE OF 36.95 FEET
TO THE TRUE POINT OF BEGINNING.
EXCEPTING THEREFROM THAT PORTION AS CONVEYED TO THE CITY OF GRAND TERRACE-
BY DEED RECORDED SEPTEMBER 4, 1 986 AS INSTRUMENT NO. 86-255660 OFFICIAL
RECORDS.
Assessor's Parcel No: 1167-231-11
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THAT PORTION OF LOT 4,ACCORDING TO MAP SHOWN LAND OF THE EAST RIVERSIDE
LAND CO.,IN THEiCITY OF GRAND TERRACE,.COUNTY OF SAN BERNARDINO,STATE OF
CALIFORNIA,AS PER MAP RECORDED IN BOOK 6,PAGES 44, OF MAPS, IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY.
BEGINNING AT A POINT ON THE EAT LINE OF MICHIGAN STREET, 66 FEET WIDE AS
SHOWN ON SAID MAP,203.39 FEET NORTH OF THE SOUTH LINE OF SAID LOT;
THENCE EAST PARALLEL WITH AND 203.39 FEET NORTH OF SAID LINE 432.27.FEET TO
THE WEST LINE OF THAT CERTAIN PARCEL OF LAND CONVEYED TO JOIlN M.BROWN,ET
UX.,BY DEED RECORDED JANUARY 1, 1945 IN BOOK 1791, PAGE 10I, OFFICIAL
RECORDS;
THENCE NORTH ALONG SAID WEST LINE 221 FEET,MORE OR LESS,TO A POINT 193 FEET
SOUTH OF THE SOUTH LINE OF BARTON ROAD,65 FEET WIDE;
THENCE WEST PAjR ALLEL WITH SAID SOUTH LINE, 127 FEET;
THENCE NORTH 18 FEET TO A POINT, 175 FEET SOUTH OF THE SOUTH LINE OF SAID
BARTON ROAD;
THENCE WEST PARALLEL AND 175-FEET SOUTH OF SAID SOUTH LINE TO
THE EAST LINE OF SAID MICHIGAN'AVENUE;
THENCE SOUTH ALONG SAID EAST LINE TO THE POINT OF
BEGINNING. As essor's Parcel No: 1167-231-12-0-000
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THE SOUTH 2O3.39 FEET OF LOT 4,ACCORDING TO MAP SHOWING LANDS OF THE EAST
RIVERSIDE LAND COMPANY,,IN THE CITY OF GRAND TERRACE,COUNTY OF SAN
BERNARDINO,STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 6 OF MAPS,PAGE
44,RECORDS OF SAID COUNTY,THE NORTH LINE OF WHICH IS DRAWN PARALLEL WITH
THE SOUTH LINE OF SAID LOT.
EXCEPT ANY PORTION LYING WITHIN ANY COUNTY ROADS.
Assessor's Parcel No: 1167-231-13
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A, PORTION OF LOT 2,jIN SECTION 5, TOWNSHIP 2 SOUTH, RANGE 4 WEST, SAN
BERNARDINO MERIDIAN, ACCORDING TO MAP OF EAST RIVERSIDE LAND COMPANY, .
IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 44 OF MAPS, IN THE OFFICE
OF THE,COUNTY REC RDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 2;
THENCE ALONG THE WEST LINE OF SAID LOT 2 415.27 FEET;
THENCE EAST 150,00 FEET;'
THENCE NORTH 415.27 FEET TO THE NORTH LINE OF SAID 2;
THENCE WEST 150.00:FEET ALONG THE NORTH LINE OF SAID LOT 2 TO THE POINT OF
BEGINNING.
SAID PROPERTY IS ALSO SHOWN ON LICENSED LAND SURVEYOR'S MAP FILED IN
BOOK 5, PAGES 251THROUGH 29, INCLUSIVE, OF RECORDS OF SURVEY.
APN #1 167-31 1-01
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THE NORTHERLY 62.60 FEET OF THE EASTERLY 66 FEET OF LOT 14,AND THE
NORTHERLY 62.60 FEET OF THAT PORTION OF LOT,15,LYING WESTERLY OF THE
WESTERLY LINE OF THE RIGHT OF WAY OF THE GAGE CANAL,AND ALSO THAT
PORTION OF LOT 2 LYING BELOW AND WESTERLY OF THE WESTERLY LINE OF THE
RIGHT OF WAY OF THE GAGE CANAL,ALL IN SECTION 5,TOWNSHIP 2 SOUTH,RANGE
4 WEST, SAN 13ERNARDJNO BASE AND MERIDIAN,IN T14B CITY OF GRAND TERRACE,
COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA,ACCORDING TO MAP ,
SHOWING LANDS OF THE EAST RIVERSIDE LAND COMPANY,AS PER PLAT RECORDED
IN BOOK 6 OF MAPS,PAGE 44,RECORDS OF SAID COUNTY.
EXCEPTING T14EREFROM THAT PORTION OF SAID LOT 2 DESCRIBED AS FOLLOWS:
BEGINNING AT TI-3E NORTHWEST CORNER OF SAID LOT 2;THENCE SOUTH ALONG THE
WEST LINE OF SAID LOT 2, A DISTANCE OF 415.27 FEET;THENCE EAST 150 FEET;
THENCE NORTH 415.27 FEET TO THE NORTH LINE OF SAID•LOT2;THENCE WEST ALONG
THE SAID NORTH LINE OF LOT 2, 150 FEET TO THE POINT OF BEGINNING.
SAID LANDBEING MORE PARTICULARLY DESCRIBED AS FOLLOW;
A PORTION OF LOTS 2, 14 AND 15 OF SECTION 5,TOWNSHIP 2 SOUTH,RA1"'GE 4 WEST,
SBBM,ACCORDING TO MAPS OF LANDS OF THE EAST RIVERSIDE LAND COMPANY,
RECORDED IN BOOK 6 OF MAPS,PAGE 44,RECORDS OF SAID COUNTY,MORE
PARTICULARLY DESCRIBED AS FOLLOWS;
COMMENCING AT THE NORTHWEST CORNER OF LOT 2; THENCE NORTH
89°50'33" EAST ALONG THE NORTH LINE OF LOT 2, 150.07 FEET TO THE
TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID NORTH
LINE 140.21 FEET TO THE INTERSECTION OF THE WESTERLY PROJECT
LINE OF THE GAGE CANTAL; THENCE SOUTH 08°56'43" WEST ALONG SAID
WESTERLY LINE, 33.03 FEET; THENCE SOUT�3 12°56'34" WEST ALONG
SAID WESTERLY LINE, 251.51 FEET; THENCE CONTINTUING ALONG SAID
WESTERLY LINE THROUGH A CURVE THAT IS CONCAVE EASTERLY
HAVING A DELTA OF 38059'27" AND A RADIUS OF 211.28 FEET A
DISTANCE OF 143.78 FEET;
THENCE SOUTH 26 002'53" EAST ALONG SAID WESTERLY LINE, 110.97
FEET; THENCE SOUTH 22°47'57" EAST ALONG SAID WESTERLY LINE,
82,24 FEET; THENCE.CONTINUING ALONG SAID WESTERLY LINE
THROUGH A CURVE THAT IS CONCAVE * SOUTHWESTERLY HAVING A
DELTA OF 15"48'47"ANM A RADIUS OF 335.86 FEET A DISTANCE OF 92.69
FEET TO THE INTERSECTION OF A LINE THAT IS 62.60 FEET SOUTHERLY
OF AND PARALLEL WITH THE NORTH LINE OF LOT 15;THENCE SOUTH
89058'26" WEST ALONG SAID PARALLEL LINE, A DISTANCE OF 413.60
FEET TO THE WESTERLY LINE OF THE EAST 66.00 FEET OF LOT 14;
THENCE NORTH 00008'1 7" WEST ALONG SAID LINE, 62.60 FEET TO THE
INTERSECTION OF THE NORTH LINE OF LOT 14; THENCE NORTH
89058'26" EAST ALONG SAID NORTH LINE 66.00 FEET TO THE
NORTHEAST CORNER OF LOT 14 AND ALSO BEING THE SOUTHWEST
CORNER OF LOT 2; THENCE NORTH 00°08'17" WEST, ALONG THE WEST
LINE OF LOT 2, 204.15 FEET TO THE SOUTHWEST CORNER OF A DEED
RECORDED AS INSTRUMENT NO. 89-010380 DATED JANUARY 11.1989:
THENCE NORTH 8�, `4E"1 "• - S AL.OXiCTIsl- SO1-TH LINP OT SAIL,
DEED.OF SAID DEED 41 THENCE5.17 FEET TO RTH 00-0737" WE ST, ALONG HE EAS 1
TO THE POINT BEGINNING.
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THIS LEGAL IS MADE PURSUANT TO THAT CERTAIN CERTIFICATE OF
COMPLIANCE,
CERTIFICATE 1�OR LOT LINE ADJUSTMENT,RECORDED AUGUST 2, 1996,
AS
INSTRUMENT INTO. 19960282284, OFFICIAL RECORDS.
Assessor's Parcel No: 1167-311-02-0-000
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ATTACHMENT NO. 3
Project Description
The Developer will develop the Project, including the Site for retail commercial uses,
services commercial uses and a city library. The total building area (footprint) is
projected to be up to approximately 250,000 square feet '
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679121 1.DOC
ATTACHMENT NO. 4
Schedule of Performance
Feasibility Period: 180 days after execution of Agreement by the Agency and the
Developer and the Agreement is formally approved by the City of Grated Terrace (the ,
"Effective Date").
Submission of Fina'ncinglEquity Sources, The Developer shall submit to the Agency
evidence of Developer's financing and equity sources not later than,thirty (30) days prior
to the Closing Date.
Closing Date: On or before 240 days after the termination of the Feasibility Period;
provided, so long as the -Developer and the Agency are pursuing the closing with
reasonable diligence, the Developer shall -be entitled to extend.the-;Closing Date for tvvo
(2) sixty (60) day periods.
Submission of Basic Concept.Drawings: The Developer shall submit Basic Concept
Drawings to the Agency on or before one hundred fifty (150) days after the Effective
Date. ;
Agency Approval of Basic Concept Drawings: The Agency 'shall approve Basic
Concept Drawings within thirty (30) days after Agency's receipt of Basic Concept
Drawings from the Developer.
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Submission of Initial Construction Drawings: The Developer will submit initial
construction drawings to the Agency for approval within sixty (60) days after the
Agency's approval of Basic Concept Drawings.
Agency Approval of Initial Construction Drawings: The Agency, shall approve initial
construction drawings within sixty (60) days after Agency's receipt:of final construction
drawings from the Developer. ;
Submission of Final Construction Drawings: The Developer will submit final
construction drawings to the Agency for approval within sixty (6D) days after the
Agency's approval of initial construction drawings.
Agency Approval of Final Construction Drawings:, The Agency shall approve final
construction drawings within sixty (60) days after Agency's receipts of final construction
drawings from the Developer.
Commencement of Construction: Construction of improvements shall commence
within ninety (90) days after the later of"(i) the Closing Date, or (ii)Ithe approval of final
construction drawings by the.Agency. t,
679121 1.DOC 34
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Completion of Construction: Construction of improvements approved pursuant to the
Final Construction Drawings will be complete within three hundred sixty-five (365) days
after commencement of construction; provided, the Developer shall bd entitled to
unilaterally extend to the completion date for an additional one hundred eighty (180)
days so long as the Developer is pursuing the completion of such improvements with.
reasonable diligence.
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679121 1.DOC
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ATTACHMENT NO. 5
Scope of Development
The proposed Development consists of all of the property bounded on the north
by Barton Rd., Qn the west by Michigan Rd.,r on the south by Le Paix Street and
on the east b� Gage Canal.
The site consists of at least twelve lots, depending on negotiations in progress,
located southeast of the intersection of Michigan Street and Barton Road in the
City of Grand Terrace, San Bernardino County, California 92313
The rectangular site is generally located approximately 1/2 mile east of Interstate
215. The site includes the following lots:
• APN# 1167-231-01
• APN# 1167-231-02
• APN# 1167-231-03
• APN# 1167-231-04
• APN# 1167-231-05
• APN# 1167-231-06
• APN# 1167-231-07 '
• APN# 1167-231-08 j
• APN# 1167-231-09 "' f
• APN# 1167-231-10
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• APN# 1167-231-11
• APN# 1167-231-12
• APN# 1167-231-13
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• APN# 1167-331-01
• APN# 11,67-331-02 i
The site will be razed and redeveloped with multiple structures and retail uses,
including retail stores, restaurants and retail/office uses and a city library. The
design objective of the project will be in keeping with the Barton !Road Specific i
art
Plan and the Bon Road'Commercial corridor Specific Plan to provide a variety
of retail offerings in an inviting manner so as to create a pedestrian friendly
shopping environment in a "Town Center" atmosphere while still!recognizing the
reality necessitated by the Automobile oriented culture existing in modern
Southern California society. J
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ATTACHMENT NO. 6
Grant Deed
When Recorded Return To: )
Brenda Stanfill, City Clerk )
City of Grand Terrace }
22795 Barton Road )
Grand Terrace, California 92313-5295 ) ,
(Do Not Write In This Space)
GRANT DEED
For a valuable consideration receipt of which is hereby acknowledged,
The COMMUNITY REDEVELOPMENT AGENCY OF THE CITY ,OF GRAND
TERRACE a public body, corporate and politic, of the State of California, herein called
"Grantor" acting to carry out the Redevelopment Plan, herein called "Redevelopment
Plan for the Grand Terrace Redevelopment Project, herein called "Project", under the
Community Redevelopment Law of California, hereby grants to DENNIS D. JACOBSEN
FAMILY HOLDINGS III, LLC, a California Limited Liability Company, herein called
"Grantee", the real property hereinafter referred to as "Property", described in Exhibit
"'A" attached hereto and incorporated herein, subject to the existing easements,
restrictions and covenants or record described there.'
1. Said Property is conveyed in accordance with and subject to the
Redevelopment Plan which was approved and adopted on April 19, 1979 by the City
Council of the City of Grand Terrace and a Disposition and Development Agreement
entered into between Grantor and Grantee dated [ 1_(the "DDA"), a
copy of which is on file with the Grantor at its offices as a public record and which is
incorporated herein by reference.
2. The Grantee hereby covenants and agrees, for itself and its successors
and assigns, that during construction, the Grantee shall not use the Property for other
than the uses specified in the Specific Plan, the Redevelopment Plan and the DDA.
The Grantee covenants: (i) to operate on the Property all or a combination of the
following retail uses: a chain grocery market, a home improvement center, a motion
picture theatre, one or more chain, local, regional fast food or similar restaurants, local,
regional and national shop tenants; a pet supply store, an office supply store and a
bookstore or video store for a period of one (1) day commencing with the issuance of a
Certificaie oI Completion of all Developer Improvements pursuant to the DDA and (ii) to
operate uses on the Property in conformity with all appiicabie feaerai, szazE anc local
laws.
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679121 1.DOC
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3. The Property is conveyed to grantee at a purchase price, herein called
"Purchase Price", determined in accordance with the- uses permitted. Therefore,
Grantee hereby covenants and agrees for it, its successors, its, assigns, and every
successor in interest to the Property that the Grantee, such successors and such
assigns, shall develop, maintain, and use the Property only as follows:
(a) Grantee shall develop the Property as required by the DDA, and
with parking conforming to the requirements of the Grand Terrace City Code. .
(b) Grantee shall maintain the improvements on the Property and shall
keep the Property free from any accumulation of debris or waste materials. Grantee '
shall also maintain the required landscaping in a healthy condition.
If, at any time, Grantee fails to maintain the said landscaping, and said condition
is not corrected after expiration of five (5) days from the date of written notice from the
Grantor, either the Grantor, or the City of Grand Terrace may perform the necessary
maintenance and Grantee shall pay such costs as are reasonably, incurred for such
maintenance.
4. Prior to recordation of a Certificate of Completion ' issued by the Grantor
for the improvements to be constructed on the Property:
(a) The Grantee shall not make any sale, transfer, conveyance, or
assignment of the Property or any part thereof or any interest therein, without the prior
written consent of, the Grantor except as permitted by paragraph of this Grant Deed and
the provisions of the DDA. In the event that the Grantee does sell, transfer, convey, or ;
assign any part of the Property, buildings, or structures, thereon prior to the recordation
of a Certificate of Completion, the Grantor shall be entitled to increase the Purchase
Price paid by the Grantee by the amount that the, consideration payable, for such
assignment or transfer is in excess of the Purchase-Price paid by the Grantee, plus the
cost of improvements, including carrying charges. The consideration payable for the
assignment or transfer, to the extent it is in excess of�the amount so authorized, shall
belong and be paid to the Grantor and until so paid the Grantor shall have a lien on the
Property and any part involved for such amount. This prohibition shall not be deemed
to prevent the granting of easements or permits to facilitate the development of the
Property.
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(b) The Grantee shall not place or suffer to be placed on the Property
any lien or encumbrance other than mortgages, deeds, of-trust, or any other form of j
conveyance required for financing of the acquisition of the Property, the construction of
improvements on the Property, and any other expenditures necessary and appropriate
to develop the Property. Except as permitted in the DDA, the Grantee shall not enter
into any such conveyance for financing, without prior written approval of Grantor. No
approval will be given for a conveyance of the property to finance the construction or
improvements on real property, other than the real property described in Exhibit A
heretc.
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679121_1.DOC
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5. Prior to recordation of any'Certificate of Completion issued by Grantor for
the improvements to be constructed on the Property:
(a) The Grantor shall have the right at its option to reenter and take
possession of the Property hereby conveyed with all improvements thereon and to
terminate and revest in the Grantor the Property hereby conveyed to the Grantee if the
Grantee (or its successors in interest) shall:
(i) Pail to commence the construction of the improvements as
required by paragraph 3(a) of this Grant Deed for a period of one hundred eighty
(180) days after written notice thereof from the Grantor, provided that Grantee
shall not have obtained an extension or postponement to which Grantee may be
entitled; or
(ii) Abandon or substantially suspend construction of the
improvements for a period of one hundred eighty (180) days after written notice
thereof from the Grantor, provided that Grantee shall not-,have obtained an
extension or postponement to which Grantee may be entitled; or
(iii) Transfer, or suffer an involuntary transfer of, the Property, or
any part thereof in violation of this Grant Deed.
(b) The right to reenter, repossess, terminate and revest shall be
subject to and be limited by and shall not defeat, render invalid, or limit:
(i) Any mortgage or deed of trust or other security interest
permitted by paragraph 4(b) of this Grant Deed; or
(ii) Any rights or interests provided for the protection of the
holders or such mortgages or deed of trust or other security interests.
(c) The right to reenter, repossess, terminate and revest with respect
to the Property shall terminate when the Certificate of Completion regarding' the
improvements to be constructed under paragraph 3 on the Property has been recorded
by the Grantor.
(d) In the event title to the Property or any part thereof is revested in
the Grantor as provided in this paragraph 5, the Grantor shall, pursuant to its
responsibilities under State law, use its best efforts to resell the Property or any part
thereof-as soon and in such manner as the Grantor shall find feasible and consistent
with the objectives of such law and of the Redevelopment Plan to a qualified party or
parties (as determined by the Grantor) who will assume the obligation of making or
completing the improvements or such other improvements in their stead as shall be
satisfactory to the Grantor and in accordance with the uses specified for such Property
o,, parl thereas it thr Redevelopment Plar, Uaon such resale of the Property the
proceeds thereof shall be applied.
39
679121 I.DCC
I
I1 i i
(i) First, to reimburse the Grantor, or, on its own behalf or on
behalf of the City of Grand Terrace for all costs expenses incurred by the Grantor
including, but Inot limited to, salaries to personnel engaged in such action (but
excluding G iantor's general ,overhead expense), in connection with the
recapture, management, and resale of the Property or part-thereof (but less any
income derived by the Grantor from the Property or part thereof in connection
with such management); all taxes, assessments, and water and sewer charges
with respedt to the' Property or part thereof (or, in the event the Property is
exempt from i taxation or assessment 'or such charges during the period of
ownership thereof by the Grantor), an amount, if paid, equal to such taxes, '
assessments,; or charges as determined by the County assessing official, as
would have been payable if the Property were not so exempt; any payments
made or ne'ceissary to be made to discharge any encumbrances or liens existing
on the Property or part thereof at the time of revesting of title thereto in the
Grantor or to discharge or prevent from attaching or being made any subsequent
encumbrances or liens due to obligations, defaults, or acts of the Grantee, its
successors or transferees; and expenditures made or obligations incurred with
respect to thel making or completion of the improvements or any part thereof on
the Property or part thereof; and an amount otherwise owed to the Grantor by the
Grantee and itis successor or transferee; and
(iii) Second, to reimburse the Grantee, its successor or
transferee, up to the amount equal to the sum of (1) the Purchase Price
theretofore palid to the Grantor by the Grantee for the .Property (or allocable to
the part thereof); (2) the costs incurred for the development of the Property and
for the improvements existing on the Property at the time or reentry and
repossession,�less (3) any gains or income withdrawn or made by the Grantee
from the Property or the improvements thereop.
(iii) Any balance remaining after such reimbursements shall be
retained by the Grantor.
I
(e) To the extent that this right of reverter involves'forfeiture, it must be
strictly interpreted against the Grantor, the party for whose benefit it is created. This
right is to be interpreted in light of the fact that the Grantor hereby conveys the Property
to the Grantee for development and not for speculation in undeveloped land.
6. The Grantee agrees for itself and any successor in interest not to
discriminate upon the basis of race, color, creed or national origin in the sale, lease, or
rental or in the use or occupancy of the Property hereby conveyed or any part thereof.
Grantee covenants by and for itself, its successors, 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,
national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure
or enjoyment of the Property, nor shall the Grantee itself or any person claiming under
or through it, establi'si-, or permit, any such ,practice or practice= of discrimination or
segregation with reference to the selection, location, number, use or occupancy of
I ,
679121 1.DOC
' 40 f
tenants, lessees, sub-tenants, sublessees or vendees in the Property. The foregoing
covenants shall run with the land.
7. No violation or breach of the covenants, conditions, restrictions, provisions
or limitations contained in this Grant Deed shall defeat or render invalid or in any way
impair the lien or charge of any mortgage or deed of trust or security interest permitted
by paragraph 4(b) of this Grant Deed; provided, however, that any subsequent owner of ,
the Property shall be bound by such remaining covenants, conditions, restrictions,
limitations and provisions, whether such owner's title was acquired by foreclosure, deed
in lieu of foreclosure, trustee's sale or otherwise.
8. All covenants contained in this Grant Deed shall be covenants running
with the land. The covenants contained in paragraphs 4 and 5 and Grantee's obligation
to develop the improvements on the Property provided in paragraph 3(a) of this Grant
Deed shall terminate and shall become null and void upon recordation of a Certificate of
Completion issued by Grantor, for the Property. Grantee's obligation to maintain and
use the improvements constructed as provided in paragraph 3(a) shall continue in effect
for a period of one (1) day after the date of recordation of a Certificate of Completion
issued by Grantor, and shall terminate and be of no further force or effect at the
expiration of said one (1) day period. Every covenant contained in this Grant Deed
against discrimination contained in paragraph 6 of this Grant Deed, shall remain in
perpetuity.
9. All covenants without regard to technical classification or designation shall
be binding for the benefit of the Grantor, and such covenants shall run in favor of the
Grantor, for the entire period during which such covenants shall be in force and effect,
without regard to whether the Grantor is or remains an owner of any land or interest
therein to which such covenants relate. The Grantor, in the event of any breach of any
such covenants, shall have the right to exercise all the rights and remedies and to
maintain any actions at law or suits in equity or other proper proceedings to enforce the
curing of such breach.
10. Both before and after recordation of a Certificate of Completion, both
Grantor, its successors and assigns, and Grantee and the successors and assigns of
Grantee in and to all or any part of the fee title to the Property shall have the right to
consent and agree to changes in, or to eliminate in whole or in part, any of the
covenants, easements or restrictions contained in this Grant Deed without the consent
of any-tenant, lessee, easement holder, licenses, mortgagee, trustee, beneficiary under
a deed of trust or any other person or entity having any interest less than a fee in the
Property. The covenants contained in this Grant Deed, without regard to technical
classification shall not benefit or be,enforceable by any owner of any other real property
within or outside the Project Area, or any person or entity having any interest in any
other such realty. Any amendments to the Redevelopment Plan which change the uses
or development permitted on the Property, or otherwise change any of the restrictions or
controls that apply to the Property, shale require the writter, consent of Grantee or the
successors and assigns of Grantee in and to all' or any part of the fee title to the
Property, but any such amendment shall not require the consent of any tenant, lessee,
41
679121 1.DOC
I
I
easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust or.any
other person or entity having any interest less than a fee in the Property.
11. Exceptlfor paragraph 5, the covenants contained in this Grant Deed shall
be construed as covenants running with the land and not as conditions i which might
result in forfeiture of title.
IN WITNESS WHEREOF, the Grantor and Grantee have caused this instrument
to be executed on their behalf by their respective officers hereunto duly authorized,
this day of ;12005. -
Community Redevelopment Agency of the
' City of Grand Terrace
I
By:
ATTEST:
Secretary
The Grantee agrees to be bound by .the covenants set forth above.
DENNIS D. JACOBSEN FAMILY HOLDINGS
III, a California Limited Liability Company
By.
C
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_ 679121 ].DOC 42
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A Day for Hearts: Congenital Heart Defect Awareness Day
February 14, 2005
WHEREAS, each year,' birth or"'congenital"heart defects (CBDs) affect more than 32,000
D-e=
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fants in the United States. Many babies born with CVDs do.not survive to adulthood because of the
severity of the defect, the absence of early detection, a lack of donor hearts or failure of the medical.I
intervention used;and
WHEREAS, with at least 35 heart defects now recognized by medical professionals, CBDs are WP-�
among the most common birth disorders. They are also the leading cause of defect-related deaths. To
gF help save lives, researchers are working to more correctly identify the origin of CUDs,describe physical
signs and symptoms,-and clarify surgical options;and
WHEREAS,children and adults with CBDs,their families and health professionals have joined
togeth er to design ate Febru ayy 14,2 005,as"A Dayfor Hearts:Congen ital Heart DefectA wareness Day.
The observance works to educate thepublic about congenital heart defects and possible treatment options
and spotlights the importance of early diagnosis and intervention;and
,.A
NOW, THEREFORE, the City Council of the City of Grand Terrace, does hereby proclaim
February 14,2005 as "A Day for Hearts: Congenital Heart Defect Awareness Day"in the City of Grand
Terrace and urge all citizens to learn more about congenital heart defects and to recognize the dedicated
c7n;< cardiac doctors and researchers who strive to assist those affected by the condition. With increased
education and research, children and adults with CBDs may lead longer and more active lives.
This 2 7h day of January, 2005.
Mayor Ferri Mayor Pro Tem Cortes
Council Member Hilkey Council Member Garcia Council Member Miller
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Wear Red for Women Day
February 4, 2005
IVHEREAS, diseases of the heart are the nation's leading cause of death and stroke is the third leading
4 Z f cause of death;and
WHEREAS, cardiovascular diseases(CVD) are the leading cause of death among women;and
CIZa->K; WHEREAS, heart attack, stroke and other cardiovascular diseases claim the lives of more than half a
million women each year-more than the next seven causes of death combined, and nearly twice as many as all
forms of cancer including breast cancer;and
WHEREAS,the cost of cardiovascular diseases and stroke in the US is estimated at$352 billion;and
WHEREAS, one in five females in the United States have some form of cardiovascular disease;and
WHEREAS, 63percent of women who died suddenly of coronary heart disease had no previous symptoms
of this disease;and
WHEREAS,February is designated as American Heart Month;and
WHEREAS, the American Heart Association is launching a new campaign, Go Red For Women, to ,>�
encourage women to pay attention to their hearts and help them live longer,stronger lives by reducing their risk fore
cardiovascular disease;
NOW,THEREFORE,the City Council of the City of Grand Terrace,does herebyproclaim February 4,2005,#om -`-,:
as "Wear Red for Women Day"in the City of Grand Terrace and urge all citizens to wear red in recognition of
family,friends and neighbors who,have suffered from heart disease, and as a show q support to fight it.
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This 2 day of January,2005.
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Mayor Ferri Mayor Pro Tem Cortes
Council Member Hilkey Council Member Garcia Council Member Miller
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a. 4
Check Register Dated January 27, 2005
vchlist Voucher List Page: 1
01/20/2005 1:05:41PM CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
54851 1/7/05 005702 PUBLIC EMPLOYEES' RETIREMENT 123104 PERS FOR PAYROLL END 12 31 04
10-022-62-00 9,544.02
Total : 99544.02
54852 1/10/05 001907 COSTCO#478 478 14 0169 CHILD CARE SUPPLIES -
10-440-228-000-000 75.93
10-440-220-000-000 14.25
Total : 90.18
54853 1/10/05 001907 COSTCO#478 478 14 0018 CHILD CARE SUPPLIES
10-440-228-000-000 53.95
. 10-440-220-000-000 25.11
Total : 79.06
54854 1/11/05 004587 MANAGED HEALTH NETWORK- 010105 MANAGED HEALTH NETWORK
10-370-142-000-000 7.73
10-380-142-000-000 5.48
10-440-142-000-000 152.58
10-450-142-000-000 5.48
21-572-142-000-000 5.57
32-370-142-000-0.00 2.35
34-400-142-000-000 18.32
34-800-142-000-000 10.95
10-120-142-000-000 _ 10.95
10-125-142-000-000 10.95
10-140-142-000-000 16.38
10-172-142-000-000 2.91
10-175-142-000-000 2.35
10-180-142-000-000 16.50
Total : 268.50
54855 1/11/05 005452 PACIFICARE OF CALIFORNIA 010105 PACIFICARE HEALTH INS
Page:. 1
COUNCIL ACu--'IDA ITEM NO.
vchlist Voucher List Page: 2
01/20/2005 1:05:41PM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
54855 1/11/n5 005452 PACIFICARE OF CALIFORNIA (Continued)
10-120-142-000-000 599.32
10-125-142-000-000 445.70
10-140-142-000-000 = _ 1,028.31
10-172-142-000-000 260.96
T--- - 10=T75-142-000-000 208.77
10-180-142-000-000 676.52
10-370-142-000-000 537.19
1.0-380-142-000-000 265.43
10-440-142-000-000 726.89
10-450-142-000-000 222.85
21-572-142-000-000 299.65
32-370-142-000-000 153.48
34-400-142-000-000 1,250.58
10-110-142-000-000 428.99
10-022-63-00 6,380.40
Total : 13,485.04
54856 1/11/n5 006772 STANDARD INSURANCE COMPANY 010105 _ STANDARD INS- LIFE AND DISABILITY
32-370-142-000-000 2.60
34-400-142-000-000 21.44
34-800-142-000-000 13.00
10-022-63-00 1,1-97.86
10-120-142-000-000 13.00
10-125-142-000-000 11.75
10-140-142-000-000 19.50
10-172-142-000-000 3.26
-- ----- 10=1-75-142-000-000-,-
10-180-142-000-000 18.88
10-370-142-000-000 9.10
10-380-142-000-000 6.50
10-440-142-000-000 83.25
10-450-142-000-000 6.50
21-572-142-000-000 - 5.87
Total : 1,415.11
54857 1/11/n, 003420 INLAND COUNTIES INSURANCE SVCS 010105 DENTAL JAN 05
Page. 2
vchlist V',,J'Lher List ` " Page: 3
01/20/2005 1:05:41 pM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
54857 1/11/05 003420 INLAND COUNTIES INSURANCE SVCS (Continued)
10-022-63-00 1,063.55
Total : 1,063.55
54858' 1/11/05 010340 BLUE CROSS OF CALIFORNIA, PERS-CH 0012402891 HEALTH INS CORTES
10-110-142-000-000 333.89
10-110-120-000-000 - 39.51
Total : - 313.40
54859 1/20/05 006720 SO.CA.EDISON COMPANY Dec. 2004 Dec. Street Lights
16-510-238-000-000 3,785.24
26-600-238-000-000 49.80
26-601-238-000-000 41.50
26-602-238-000-000 58.10
Total : 3,934.64
54860 1/20/05 n01666 CA. MUNICIPAL TREASURERS ASSOC 01262005 1/26 Mtq in Corona-L. Ronnow
10-140-270-000-000 - 25.00
Total : 25.00
54861 1/27/05 001001 AA EQUIPMENT CO. INC. _ 09 7330652 Mower parts
10-450-246-000-000 73.33
Total : 73.33
54862 1/27/05 n01151 AMERICAN BUSINESS SYSTEMS 02285542 Mail mach/scale maint to 3/06
10-190-246-000-000 490.00
Total : 490.00
54863 1/27/05 n10293 AVAYA, INC. 2720242774 MAINT FOR PHONE SYSTEMS
10-190-246-000-000 ' 183.46
Total : 183.46
54864 1/27/05 001391 BERRY, STEVE 01182005 2004 Med Reimbursement Benefit
10-180-139-000-000 500.00
Total : 500.00
54865 1/27/05 010060 BOUSTEDT, MICHELLE 01102005 2004 Med Reimbursement Benefit
- 10-370-139-000-000 252.57
Page: 3
vchlist Voucher List Page: 4
01/20/2005 1:05:41PM CITY OF GRAND TERRACE -
Bank code : bofa
Voucher Date _Vendor Invoice Description/Account Amount
54865 1/27/05 _ 010060 BOUSTEDT,.MICHELLE (Continued) Total : 252.57
54866 1/27/05 001713 CA. DEPT. OF TRANSPORTATION 169369 Dec. 1-215 signal maint&energy
16-510-238-000-000 183.90
Total : _183.90
54867 1%27/n 001683 CA. STATE DEPT OF CONSERVATION 01102005 a JULY-SEPT STRONG MOTION FEES
10-700-01 -5.18
23-200-21-00 103.63
_ Total : 98.45
54868 1/27/n, 010217 CALIFORNIA OVERNIGHT 4592516 Document delivery
10-125-210-000-000 16.22
Total : 16.22
54869 1/27/05 010218 CHEVRON &TEXACO CARD SERVICES 789819195750 Dec./Jan.fuel
16-900-254-000-000 54.37
10-180-272-000-000 430.87
Total : 485.24
54870 1/27/n; 010403 CITY OF REDLANDS AR109691 Nov. CNG Fuel
10-180-272-000-000 29.72 _
34-800-272-000-000 15.46
Total : 45.18
54871 1/271n, 001840 COLTON, CITY OF 000413 CODE ENFORCEMENT SERVICES FOR ANIMAL -
10-190-256-000-000 6,583.32
_ Total : - 6,583.32
- --- ------------ --- -- ----- - - ------------------ -- -- --
54872 1/27/05 010399 COMER, NICHOLE 01072005 2004 Med. Reimbursement Benefit
10-440-139-000-000 85.00
Total : 85.00
54873 1/27/05 001866 COMP USA 277132571 Computer programs
10-120-210-000-000 44.99
- 10-380-249-000-000 87.99
_ - 10-120-2.10-000-000 3.49
10-380-249-000-000 6.81
Page: 4
vchlist X", ;her List Page: 5
01/20/2005 1:05:41r'M CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
54873 1/27/05 001866 COMP USA (Continued) Total : 143.28
54874 1/27/05 010147 CORTES, BEA Jan. 2005 Jan. Council &Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 149.49
Total : 299.49
54875 1/27/05 001930 DAILY JOURNAL CORPORATION B758816 LEGAL ADVERTISING
10-125-230-000-000 179.00
B760879 LEGAL ADVERTISING _
10-125-230-000-000 123.24
B760888 LEGAL ADVERTISING
10-125-230-000-000 46.61
B765726 Public Hrq Notice
10-370-230-000-000 80.36
B765733 Public Hrq Notice
10-370-230-000-000 110.70
Total : 539.91
54876 1/27/05 001937 DANKA OFFICE IMAGING COMPANY 702866253 COPIER CHARGES
10-172-246-000-000 0.90
- 10-175-246-000-000 1.13
34-400-246-000-000 2.47
1 Total : 4.50
54877 1/27/05 003210 DEPT 32-2500233683 10241/629446 HARDWARE AND SUPPLIES
10-1.80-246-000-000 _ 28.88
14332/301766 Maint supplies
10-180-245-000-000 71.96
17233/029254 Park maint supplies
10-450-245-000-000 18.75
21170/629285. Park Maint supplies
10-450-245-000-000 23.56
28391/929350 Maint supplies
- 10-808-246-000-000 12.23
3702/3018723 Maint supplies
- 10-180-245-000-000 16.13
Page: 5
vchlist Voucher List Page: 6
01/20/2005 1:W4113M CITY OF GRAND TERRACE ,
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
54877 1/27/n5 003210 DEPT 32-2500233683 (Continued)
4383/2294005 Paint supplies
10-180-245-000=000 135.27
5468/1294079 Paint supplies = _
_ 10-180-245-000-000 1-43.08
T -- — 5938/1045850 Maint supplies
10-180-245-000-000 6.40
Total : 456.26
54878 . 1/27/n5 002301 FEDEX 7-954-30903 Dec/Jan Doc DeliverySrvc
10-172-210-000-000 20.39
10-190-211-000-000 20.73
32-370-210-000-000 23.71
Total : 64.83
54879 1/27/n5 002450 FERRE', MARYETTA Jan. 2005 Jan. Council&Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 - 250.00
Total : 400.00
54880 1/27/n5 002727 FREEMAN COMPANY, J R — 287097-0 Council desk calendars
10-110-220-000-000 1.1.30
Total : -11.30
54881 1/27/05 002795 GARCIA, LEE ANN Jan. 2005 Jan. Council &Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 208.01
-- --Total-: --358-.01
54882 1/27/0 5 002867 GOLDEN PROTECTIVE SERVICES 48452 C. Care latex GLOVES
10-440-228-000-000 85.98
Total : 85.98
54883 1/27/n 5 010181 GOPHER PATROL Dec. 2004 GOPHER ERADICATION SERVICE,FOR PARKS
10-450-245-000-000 445.00
Total : 445.00
54884 1/27/n5 010425 GRAND TERRACE MARTIAL ARTS 12282004 Dec. Martial Arts Class
- Page. 6
vchlist
V ,;her List Page: 7
01/20/2005 1:05:41PM CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
54884 1/27/05 010425 GRAND TERRACE MARTIAL ARTS (Continued)
10-430-27 345.10
Total : 345.10
54885 1/27/05 003152 HARPER& BURNS LLPN Dec. 2004 Dec. prof. services
10-160-250-000-000 3,832.50
Total : 3,832.50
54886 1/27/05 n03200 HILKEY, HERMAN Jan. 2005 Jan. Council-&Agency Stipends
32-200-120-000-000 150.00
10-110-120-000=000 250.00
Total : 400.00
54887 1/27/05 003490 INMARK/VICTOR 28412 Name Badge-Gifford
10-804-210-000-000 16.65
29290 COUNCIL CHANGES
10-110-220-000-000 112.00
10-110-220-000-000 - 12.93
29491 COUNCIL CHANGES
10-110-220-000-000 15.03
Total : 156.61
54888 1/27/05 003850 JANI-KING 01050084 Jan. BLDG CLEANING-CHILD CARE
10-440-244-000-000 815.00
12041759 Dec. Carpet.cleaning-CHILD CARE
10-440-244-000-000 50.00
- Total : 865.00
54889 1/27/05 010290 KAISER PERMANENTE 0005559630=F GARCIA HEALTH INS
10-110-142-000-000 223.44
10-110-120-000-000 137.50
Total : 360.94
54890 1/27/05 010414 LEWIS, JENNIFER 01182005 2004 Med Reimbursement Benefit_
10-440-139-000-000 185.00
Total : 185.00
54891 1/27/05 010367 LOMA LINDA UNIV. HEALTH CARE Dec. 2004 EMP PHYSICALS& INJURIES
Page: 7
vchlist Voucher List Page: 8
01/20/2005 1:05:41PM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
54891 1/27/ns _ 010367 LOMA LINDA UNIV. HEALTH CARE (Continued)
10-190-224-000-000 60.00
Total : 60.00
54892 1/27/0 5 004620 MCI TELECOMMUNICATIONS 63005882 Dec. phone charges/usage
-- -- -- 10=1-90=235=000=000 - 34.60
10-440-235-000-000 295.12
10-450-235-000-000 16.91
10-805-235-000-000 35.43
Total : 382.06
54893 1/27/n5 004620 MCI TELECOMMUNICATIONS Dec. 2004 Dec. phone charges
10-808-235-000-000 32.49
Total : 32.49
54894 1/27/05 010446 MILLER,JIM Dec. 2004 Dec. Council &Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 250.00
Jan. 2005 Jan. Council &Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 250.00
Total : 800.00
54895 1/27/n, 010097 NEXTEL COMMUNICATIONS 410575025-02 Oct/Nov cell phone charqes
10-180-240-000-000 364.05
10-440-235-000-000 43.83
Total : 407.88
54896- - 1/27/0 5--- 01004-1--'-.-NOLTE ASSOCIATES INC.-. 5040143 CITY ENGINEERING SERVICES AS NEEDED FOR
10-370-255-000-000 380.00
Total : 380.00
54897 1/27/n5 001456 OFFICE MAX-A BOISE COMPANY 209015 Bulletin Board
10-120-210-000-000 47.64
266042 Paper
10-140-210-000-000 126.72
Total : 174.36
Page. 8
vchlist 1' "ocher List Page: 9
01/20/2005 1:05:41 DM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
54898 1/27/05 005586 PETTY CASH 01172005 Reimburse petty cash
10-440-228-000-000 85.42
10-440-221-000-000 46.46
_ 10-440-223-000-000 = _ 99.32_
10-440-225-000-000 38.90
Total : 270.10
54899 1/27/05 005663 PRECIE, DENNICE 01102005 2004 Med. Reimbursement Benefit
10-440-139-000-000 335.00
Total : 335.00
54900 1/27/05 010420 RDO EQUIPMENT CO RAV0179 TRACTOR
13-444-700-000-000 586.29
13-444-700-000-000 7,565.00
Total : 8,151.29
54901 1/27/05 010171 REPUBLIC ELECTRIC 1713 ELECTRICAL MAINTENANCE
16-510-255-000-000 _ 289.80
1714 Dec. Signal Call outs
16-510-255-000-000 873.00
Total : 1,162.80
54902 1/27/05 010249 ROGERS, ANDERSON, MALODY ET AL 15438 ANNUAL AUDIT
32-200-250-000-000 77.73
10-140-250-000-000 936.80
33-300-250-000-000 77.73
34-400-251-000-000 78.74
Total : 1,171.00
54903 1/27/05 010139 ROSENKILD, ROCHELLE 01122005 Reimburse City BdaV supplies
10-804-220-000-000 65.44
Total : 65.44
54904 1/27/05 006505 S.B. COUNTY FIRE DEPARTMENT 2005-03 Oct& Nov C. Care Fuel
10-440-272-000-000 94.74
Total : 94.74
54905 1/27/05 006531 S.B. COUNTY SHERIFF 5478 04 05 LAW ENFORCEMENT CONTRACT
Page: 9
vchlist Voucher List Page: 10
01/20/2005 1:05:AlPM CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
54905 1/27/05 _006531 S.B. COUNTY SHERIFF (Continued)
10-410-255-000-000 3,179.55
10-410-256-000-000 97,188.25
14-411-256-000-000 5,617.20
5478a SHERIFF CONTRACT
-- - 14-411-256-000-000 - 13,202.96
5478b JAN. LAW ENF RET. RATE REDUCTION
10-410-256-000-000 -2,353.00
5478c JAN RET. RATE REDUCTION CREDIT 7
14-411-256-000-000 - -328.00
- Total : 116,506.96
54906 1/27/0 F 006504 S.B. FIRE DEPT./HAZ.MATERIAL GT305CC HOUSEHOLD HAZ WASTE FEES
10-190-258-000-000 2,565.25
Total : 2,565.25
54907 1/27/05 006435 SAN BERNARDINO, CITY OF 36262 ANIMAL SHELTER SERVICES
10-190-256-000-000 359.00
Total : 359.00
54908 1/27/0; 010247 SANTA-ROSA, JULIA 01182005 2004 medical exp. reimbursement -
10-440-139-000-000 500.00
Total : 500.00
54909 1/27/05' 005529 SBC CALIFORNIA Jan. 2005 Jan. DSL service
10-380-235-000-000 182.92
10-440-235-000-000 52.15
--_- - - - Total : _� - 215.01
54910 1/27/05 010040 SCOTT, MARY J. 01062005 Reimburse supplies
10-440-228-000-000 30.03
Total : 30.03
54911 1/27/0 5 006730 SO.CA.GAS COMPANY Dec. 2004 Dec. Natural Gas
10-190-238-000-000 620.97
10-805-238-000-000 47.61
10-440-238-000-000 128.50
Page: 1-0.
- - ---- - - -- ---- - -
vchlist
VLaher List Page: 11
01/20/2005 1:05:41PM CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
54911 1/27/05 006730 SO.CA.GAS COMPANY (Continued)
II kdkdk
10-190-238-000-000 12.93
Total : 810.01
54912 1/27/05 006685 SOFTERWARE INC W8088 EZ-CARE2-Full Support 1 yr. -
10-440-246-000-000 360.00
Total : 360.00
54913 1/27/05 006778 STAPLES CREDIT PLAN 25076 Office supplies
10-380-210-000-000 66.82
9149972365 Typewriter&supplies
10-180-210-000-000 130.84
9150042009 Typewriter&supplies
10-370-210-000-000- 470.82
9150095886 Office supplies-toner cartridge
10-370-210-000-000 178.85
Total : 847.33
54914 1/27/05 006980 TEXACO/SHELL 800020968750 Dec. Fuel
10-180-272-000-000 _ 24.77
Total : 24.77
54915 1/27/05 007010 TOTH, CATHERINE 01182005 2004 Med Reimbursement Benefit
10-440-139-000-000 _ 428.36
- Total : 428.36
54916 1/27/05 007034 TRANSPORTATION ENGINEERING 481 TRAFFIC ENGINEERING SERVICES & GRANT
10-370-255-000-000 1,313.00
481 a Nov. DeBerry Speed Hump work
10-180-255-000-000 722.50
481 b Nov. Barton Bridge Ltr
47-100-250-001-000 95.00
Total : 2,130.50
54917 1/27/05 007220 UNDERGROUND SERVICE ALERT 2004120283- Dec. service
_ 16-900-220-000-000 30.80
Page: 11
vchlist Voucher List Page: 12
01/20/2005 1:05:41 PM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
54917 1/27/05 007220 UNDERGROUND SERVICE ALERT (Continued) Total : 30.80
54918 1/27/05 007579 VARELA, CATALINA 01182005 2004 med. reimbursement benefit
10-440-139-000-000 - _ 254.99
Total : - 254_99
54919 1/27/05 007795 WAXIE 67368266 03 MAINT SUPPLIES -
10-180-245-000-000 553.18
Total : 553.18
54920 1/27/05 007843 WEST COAST ARBORISTS INC 35166 Tree trimming
10-450-245-000-000 2,112.00
Total : 2,112.00
54921 1/27/05 007854 WESTERN EXTERMINATORS CO 220228 PEST CONTROL
10-180-245-000-000 76.00
10-440-245-000-000 65.00
10-805-245-000-000 _ 29.00
34-400-246-000-000 33.50
Total : 203.50
54922 1/27/n5 007987 XEROX CORPORATION 007386656 COPIER USAGE
10-190-700-000-000 424.89
10-190-700-000-000 32.93
Total : 457.82
1/13/05 007400 U. S. BANK TRUST N.A. Jan. 2005 LEASE PAYMENTS
33_300-206.000-000_ _-23,003.51 -
- -- -- --- -- -- - ------ - - - --- - - ---- ----- -Total : 23,003.51
73 Vouchers 'For bank code : bofa Bank total : 213,129.12
73 Vouchers in this report 213 129.12
- Total vouchers
I certify that to the best of my knowledge, the afore-listed checks for payment of City and Community Redevelopment
Agency liabilit-i_es have been audited by me and are necessary and appropriate expenditures for the operation of the
City and Agency. -
Larry Ronnow, Finance Director Page: 12
CITY OF GRAND TERRACE
CITY COUNCIL MINUTES
REGULAR MEETING- JANUARY 13, 2005
A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council
Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California,on January
13, 2005, at 6:30 p.m.
PRESENT: Mary'6tta Ferre, Mayor
Herman Hiikey, Councilmember
Lee Ann Garcia, Councilmember
Jim Miller, Councilmember
Tom Schwab, City Manager ,
Brenda Stanfill, City Clerk
Steve Berry, Assistant City Manager
Larry Ronnow, Finance Director
Jerry Glanders,Building& Safety Director
Gary Koontz, Community Development Director
John Harper, City Attorney
Lt. Hector Guerra, Sheriff's Department
ABSENT: Bea Cortes, Mayor Pro Tem
'The City Council meeting was opened with invocation by Pastor Salim Elias,Azure Hills Seventh-
Day Adventist Church, followed by the Pledge of Allegiance led by Councilmember Jim Miller.
CONVENE CITY COUNCIL MEETING
ITEMS TO DELETE
City Manager Schwab,indicated that he would like to remove item 2A. The Foundation of
Grand Terrace Report. He stated that it would be placed on the January 27, 2005 agenda.
SPECIAL PRESENTATIONS -None
CONSENT CALENDAR
CC-2005-01 MOTION BY COUNCILMEMBER GARCIA,SECOND BY COUNCILMEMBER
HIKLEY, CARRIED 4-0-1-0(COUNCILMEMBER CORTES WAS ABSENT),to
approve the following consent calendar items with the removal of items 3D.. 3E.and
3G. Councilmember Miller abstained from item 3h..
3A. Approval of Check Register Dated January 13, 2005
3B. Ratify 01-13-2005 CRA Action
CO—UNCGL AGENDA ITEM NO®,l��
Council Minutes
January 13,2005
Page 2
3C. YVaive Full Reading of Ordinances on Agenda
3F. Travel Authorization for City Manager to Attend the- Annual League of
California Cities CityManager's Department Meeting in Monterey California
February 2-4, 2005.
3H. Application for License to Operate Bingo Games - Lions Club
ITEMS REMOVED FROM CONSENT CALENDAR
3D. Approval of 12-09-2004 Minutes
CC-2005-02 MOTION BY COUNCILMEMBER GARCIA,SECOND BY COUNCILMEMBER
MILLER, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT),'to
approve the December 9, 2004 Minutes.
3E. Annual Financial Report for Fiscal Year Ending June 30, 2004
CC-2005-03 MOTION BY COUNCILMEMBER GARCIA,'SECOND BY COUNCILMEMBER MILLER, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to
accept the Audited Annual Financial Report of the City of Grand Terrace for the
Fiscal Year Ended June 30, 2004.
3G. Consideration of a Lease Agreement Between Colton Joint Unified School
District(CJUSD)and Cingular Wireless on a Cell Tower Site at Rollins Park
CC-2005-04 MOTION BY COUNCILMEMBER MILLER,SECOND BY COUNCILMEMBER
HILKEY, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to
approve to concept of a cell tower telecom facility on the lower field ofRollins Park,
allow Cingular Wireless to replace our Musco lighting standard/pole with a similar
Musco lighting standard/pole and extend the hei ght 10 ft.,require Cingular Wireless
to match; to the best of their ability, the building design and color schemes of the
buildings on the upper field,require CJUSD to include Grand Terrace as a signatory
on the lease and require CJUSD to include language in the lease agreement
describing the 50% lease payment plan to the City.
PUBLIC COMMENT!
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Bobbie Forbes, j 1850 Burns Avenue, indicated that there was a mistake on the City
Community Calendar in the Blue Mountain Outlook and that there is a City Council meeting
on January 27. 2.005 and that they apologize for the error
Patty Kane&Sally Garcia,21845 Grand Terrace Road,Space 7&6,indicated that they were
told that there would be stop signs on Barton Road by Grand Terrace Road. There is a stop
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Council Minutes '
January 13,2005
Page 3
sign at Grand Terrace Road but not on Barton Road. They have trouble getting out of the
park at various times. She indicated there are a large number of stray cats in the park without
licenses and was wanting to know if there is anything that can be done. She wanted to know
how to go about getting crime statistics for Grand Terrace. She indicated that they would
like to see some, type of handicap ramp on Barton Road at Grand Terrace Road. They
expressed their concerns about senior disabled transportation in Grand Terrace.
Bill Hays, 22114 DeBerry Street, indicated that the City does not have a 13 million dollar
portfolio, he stated that we have a 13 million dollar debt that is going to be paid out of the
property taxes of the citizens of Grand Terrace that should go towards services such as
police, fire, and schools. He feels that everyone should know that the Redevelopment
Agency is the only arm of government that can issue bonds without voter approval. He
referred to a table that shows the top 12 California Cities by total Redevelopment
Indebtedness as well as a chart that shows per capita indebtedness on Redevelopment
indebtedness by city. He feels that when the citizens of this community realize that theyhave
been straddled with a 13 million dollar debt and that their tax dollars have been diverted from
the services that they should go to that this Council is obligated to provide there will be
opposition. He feels that the Council needs to get a grip on the situation.
City Manager Schwab, indicated that currently the City does not have any plans for traffic
control at Barton and Grand Terrace Road. He stated that animal control is not allowed to
chase cats. He stated that they should ask animal control to loan them a trap and animal
control will come out and take them away. He indicated that he has directed the Community
Services Officer to include police activity of their park in the weekly stats. He indicated that
it would be the responsibility of the property owner to install a ramp at that location. He
stated that the fire department is working on striping the park which will help with the
parking problems within the park. He stated that Omnitrans is the agency that provides
transit in Grand Terrace. There is a representative from Council that sits on Omnitrans and
stated that they should contact staff so that they can possibly work with Omnitrans to help
with the situation.
ORAL REPORTS
--5A. Committee Reports
1. Emergency Operations Committee
a. Minutes of 11-02-2004
CC-2005-04 MOTION BY COUNCILMEMBER GARCIA,SECOND BY COUNCILMEMBER
MILLER, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to
accept the November 2, 2004 Minutes of the Emergency Operations Committee.
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Council Minutes
January 13,2005
Page 4
2. Historical and Cultural Activities Committee
a. Minutes of 12-06-2004
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CC-2005-05 MOTION BY COUNCILMEMBER MILLER,SECOND BY COUNCILMEMBER
HILKEY, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to
accept the December 6, 2004 Minutes of the Historical and Cultural Activities
Committee.
COUNCIL REPORTS
Councilmember Hilkey,thanked staff for the extra effort during his time as Mayor. He stated
that Reche Canyon has been closed for a couple of days and feels that Grand Terrace has
seen what the triaffic is going to be like as the freeway continues to build.
Councilmember Garcia,wished everyone a happy new year. She reported that she attended
her first Omnitrans meeting. She attended the SANBAG Commuter Rail,which is what runs
the Metrolink system. She stated that we can look forward to more service on the San
Bernardino line, She is looking forward to Grand Terrace Days which is going to be held on
June 4,2005. She stated that the pavers are in at Richard Rollins Park as well as a new park
bench. She stated that the City did well during the storm. She questioned when the strategic
planning session' will be held.
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City Manager Schwab, indicated that staff is looking at the second meeting in February,
however it will come to council for discussion.
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Councilmember,Garci a,questioned when the j oint meeting will be held with the Colton Joint
Unified School District.
City Manager Schwab, indicated that staff will start working on that as well.
Councilmember Miller, wished everyone a happy and prosperous new year. He indicated
that the Bluff s Restaurant will be closing and requested that the City prepare a certificate
of appreciation ';for the owners and present it to them. He indicated that at the main
intersection of Barton Road there is a pot-hole where the concrete is.
City Manager Schwab,responded that staff is looking into repairing that hole.
CouncilmemberiMiller, stated that there is debris on the side of the hill and questioned who
is responsible for cleaning it up
City Manager Schwab, indicated that they will look into it.
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Council Minutes
January 13,2005
Page 5
Mayor Fen e, requested an update on SAVON.
City Manager Schwab, stated that a building permit could be issued as early as February. It
should take about six months for it to be built.
Mayor Ferre, requested an update on the shell station.
Cily Managan Schwab,responded that the Shell Station is a corporate owned Shell Station.
It is his understanding that with the merge of Shell and Texaco they are closing 300 gas
stations throughout California. They decided to close the station in Grand Terrace. Shell is
going to sell the site.
Community and Economic Development Director Koontz, indicated that there is an
application for a gas station at that location in process.
Mayor Ferre, indicated that she has had three different people come to her and compliment
the animal control program. Each of the individuals have said that the officers go above and
beyond the call of duty to make sure that they find a lost dog's owner. She thanked Assistant
City Manager Berry for putting the program together. She brought her dog to the licensing
clinic which went very smooth. She attended the City Selection Committee Meeting last
week where the LAFCO primary member was selected which is Mark Nuami, Mayor of
Fontana. The Alternate primary member is Paul Luellig, Councilmember City of Barstow.
She attended the Drug and Gang Task Force Committee Meeting. A presentation was given
by Frank Pine, Editor of the Inland Valley Daily Bulletin.
PUBLIC HEARING
6A. Tentative Tract Map 04-04 (County Recorder's Number 17264) and E-04-09 to
Create a 42 Unit Townhouse Subdivision
John Lambe, Community and Economic Development Department, indicated that the only
matter that is before the City Council is the proposed tentative tract map to create the
requested subdivision. The Planning Commission and staffrecommend that the City Council
approve the Resolution of approval for the Tentative Tract Map No. 04-04.
Councilmember Hilkey, questioned if there are any assurance that these won't become
rentals.
Abba Kader. Grand Canal L.L.C.. indicated that they have hired a j-narketiny, company to
design the plan to sell the homes. There is no plan to rent it is their plan to sell them. He
questioned what type of assurance the Council would like.
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Council Minutes
January 13,2005
Page 6
Councilmember Hilkev, questioned what the target price is for the homes. '
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Mr. Kader, responded $300;000.00.
Councilmember Hilkev, questioned why this item is being brought to Council with just the
lot split and notlthe project.'
Mr. Lampe, responded that the Development Code is set up that way in the City. The Site
and Architectural Reviews are approved by the Planning Commission and do not come
before the Council unless there is an appeal. The City's subdivision ordinance, which is
basically adopted from the County of San Bernardino, does require the Council to hear and
consider and act on all maps but not the Site and Architecture Review.
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City Manager Schwab, stated that he feels that this is typical for most communities except
for those who d4ot have a Planning Commission. If Council wants to change the way these
projects are approved they can certainly change the code.
CouncilmernberlHilkey, stated that typically the Council wouldn't see anything but tpe lot
split.
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Mr. Lampe, responded in the affirmative.
Mayor Ferre opined the public hearing.
Patricia Farley, 12513 Michigan Street, indicated that residents are concerned about the
number of rental units that are already in Grand Terrace. In the five year implementation
plan it shows the construction of senior citizens rental units in two location and a
condominium project proposed on Canal and now this project. She feels that the people
should own the land when they purchase condos and that the CC &R's should be required
to say that no more than a certain number of units can be owned by one person, which will
help to control rentals. She indicated that she is surprised that the City is proposing 120 units
of senior housing on Barton Road and on Grand Terrace Road.
Bill Hays,22114 De Berry Street, indicated that his comments are on behalf of Mr. Karger.
He read a letter regarding to the town homes. He stated that he is not opposed to the town
homes in general,but reminded Council that the only difference between a town home and
an apartment is five years. j
Mayox Ferre closed the public hearing and returned discussion to the Council.
Councilmember Garcia, questioned if it would be possible to include the information in the
CC &R's as stated by Ms. Farley.
Council Minutes
January 13,2005
Page 7
City Attorney Harper, responded that it would be difficult to control that.
Mr. Kader, stated that each town home will be built on a separate parcel and will be owned
by an individual owner. There are CC &R's that have been established that are very strict.
The common area will be owned by the association. He feels that it will be very secure and
a high quality project. If they were going to build this project for rent they would indicate
so.
Councilmember Garcia, questioned when the CC &R's will be available.
Mr. Kader, responded that they should be ready by the time the project goes to the
Department of Real Estate (DRE).
Councilmember Garcia, questioned if we have guidelines for CC &R's.
City Attorney HaIper, responded in the negative. CC & R's are governed by State Law.
There are some conditions that can be added to the project.
Councilmember Garcia, questioned how the circulation will impact the area.
Mr. Kader, responded that there are two security gates that are being planned. One is for
emergency vehicles only and the other is a double gate for entering and exiting which will
be on canal.
Communityand Economic Development Director Koontz,stated that the traffic engineer has
indicated that he doesn't see any traffic impacts or conflicts from this project.
'Councilmember Hilkey,expressed some concern with how the emergency vehicle gate aligns
with Carhart Street.
Community and Economic Development Director Koontz, stated that he does not see a
problem with the alignment.
CC-2005-06 MOTION BY COUNCILMEMBER MILLER,SECOND BY COUNCILMEMBER
GARCIA, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT),to
approve the Resolution of the City Council of the city of Grand Terrace, State of
California, Approving Tentative Tract Map No. 04-04 (TTM 17264) for a 42 Unit
Townhouse Development in the City of Grand Terrace.
UNFINISHED BUSINESS
7A. Redlining 350 Feet of Curbing on the West Side of Mt. Vernon from Brentwood to
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Council Minutes
Jdnuary 13,2005
Page 8
Grand Terrace Road and 400 Feet on the West Side from Canal Road South Toward
Barton Road
CC-2005-07 MOTION BY COUNCILMEMBER HILKEY,SECOND BY COUNCILMEMBER
MILL ER, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to
accept the decision of the City's traffic engineer,red line 350 feet of curb on the east ,
side ofMt.Vernon from Brentwood to Grand Terrace Road,approve the construction
of a 6 fti concrete addition to the existing apron at 11691 Mt. Vernon Avenue and
11677 Mt. Vernon Avenue, approving the amount to cover the cost to adequately
meet the needs of those residents, and red line approximately 400 ft. of curb on the
west side of Mt. Vernon south of Canal Road.
NEW BUSINESS
8A. Consider Changing Regular Meeting Day for the Community Redevelopment
Agency and City Council Meetings
CC-2005-08 MOTION BY COUNCILMEMBER MILLER,SECOND BY COUNCILMEMBER
GARCIA, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to
establish the second and fourth Thursdays of each month at 6:00 p.m. as the regular
day and time for the Community Redevelopment Agency and City Council Meetings
and to adopt a Resolution Rescinding Resolution No. 03-25 and establishing times
for regular City Council Meetings,Commission Meetings and Committee Meetings.
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CLOSED SESSION -None
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Mayor Ferre adjourned the meeting at 8:50 p.m.until the next CRA/City Council Meeting which is
scheduled to be held on!Thursday, January 27, 2005 at 6:00 p.m.
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CITY CLERK of the City of Grand Terrace
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MAYOR of the City of!Grand Terrace
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Community.and Economic Development Department
CALIFORNIA
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CRA ITEM ( COUNCIL ITEM (X ) MEETING DATE: January 27, 2005
FUNDING REQUIRED NO FUNDING REQUIRED X
SUBJECT: Request for "PC or N" Letter for Type 21 General Liquor License for
Grand Terrace Market at 12490 Michigan Street (northwest corner of
Michigan and Van Burren.
RECOMMENDATION: Review, consider and deny the request by the business
owner of the Grand Terrace Market for a "Public
Convenience or Necessity" letter from the City in support
of an Alcoholic Beverage Control ("ABC") General Liquor
License, Type 21-.
Background:
We have received a request from the business owner of the Grand Terrace Market,which
is located on the northwest corner of Michigan Street and Van Burren Street, asking that
the City of Grand Terrace issue a "Letter of Public Convenience or Necessity" in support
of a Type 21, "General Liquor" License application. This type of license will allow for the
off-sale of alcoholic beverages including beer, wine and liquor. (The "off-sale"description
refers to the package' sale of alcoholic beverages which must be consumed,off the
premises such as a market or liquor store while the term "on-sale" refers to the sale for on-
site consumption such as in a restaurant or bar.) The market currently has a Type 20 ABC•
license which allows for the "off-sale" of beer and wine only.
The Grand Terrace Market owner has been told by the State's Alcoholic Beverage Control
Board,"ABC,"that there is an "over-concentration"of"off-sale"licenses in the census tract
(Census Tract No. 71.06)which includes the market's location. (Please see the attached
"Application Work Sheet" from the Alcoholic Beverage Control Board noting the over-
concentration.)
22795 Barton Road • Grand Terrace, California 92313-5295 • 909/ 824-6621
COUNCIL ACUEN A ITE17_1 HMT
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I order for"ABC"to issue the requested Type 21 license,the applicant must obtain a letter
from the City of Grand Terrace in support of the requested license., This letter, in "ABC"
jargon, is called a"Letter of Public Convenience or Necessity or'PC or N'letter." The letter
must indicate that the City "agrees that issuance of the applied for;license will meet the
public convenience or necessity standards for their community."
The "ABC" finding of "over-concentration" is based on the number of "off-sale" licenses
within Census Tract INo. 71.06. The City of Grand Terrace is divided into a number of
census tracts,some of which take in portions of other cities. However, nearly all of Census
Tract No. 71.06 is located within,the City of Grand Terrace. It covers the area south of
Barton Road, west of Mt. Vernon, north of Main and east of the 1-215 freeway. Within this
census tract there are a total of seven (7)ABC licenses. (Please see the attached list,of J
existing ABC licenses in the City including those located in Census{Tract No. 71•.06:)
According to the "ABC"web page and what the local "ABC'1 office told staff, "ABC" uses a
standard of one "off-sale" license per 1,250 persons in determining whether there is an
"over-concentration" of "off-sale" licenses. The population of Census Tract No. 71.06,
according to the 2000 Census, is 3,979 persons. The maximum ;number'of "off-sale"
licenses permitted, therefore, without a finding of "over-concentration" in this particular
Census Tract is three (3).
In addition, the City has a number of existing businesses and at least one future business
(i.e., Sav-on) with existing "ABC" licenses, for a total of thirteen (13). In fact, nine (9) of
these businesses -hai a an "off-sale"type of license and six (6)of these have the Type 21
- "General Liquor" license'.
"The Grand Terrace Market was constructed in 1950„some 55 years ago. It is presently
non-conforming with respect to the development standards of the CM (Commercial
Manufacturing)Zone including the off-street parking requirements. The CM Zone permits
"off-sale" liquor sales as a permitted right. Once the market owner gets the "PC or N"
Letter from the City, no further discretionary City approvals will be required.
Analysis:
The Grand Terrace Market is located in a area with nearby single family residential areas -
to the immediate north, east and south of the market along Michiigan and along Van
Burren. (Please see the attached aerial photograph of the area of the;market.) The market
is not located in a general commercial area as are the other businesses in the City with
ABC licences which are located along Barton Road. A Type 21 - "General Liquor" license
for the Grand Terrace Market would be incompatible with the residential character of.the
nearby single family homes. In addition,the market does not meet all of the development
standards of the underlying zone and the use of the site should not be expanded.
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Recommendation:
The Staff recommends that the City Council deny this request by the owner of the Grand
Terrace Market and .not authorize Staff to prepare the' requested "Letter of Public
Convenience or Necessity" as required by the State's Alcoholic Beverage Control Board.
Respectfully submitted, 'Approved by:
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J hn Lampe Gary L Koontz
sociate Planner Community Development Director
GLK:JL:jl
Attachments: "Application Work Sheet" from ABC noting overconcentration
List of ABC licenses in the City of Grand Terrace
' Aerial Photograph of Grand Terrace Market
c:\MyFiles\JOHN\ABC\Grandteracemkt\council.rpt.gtm
23958.4 B & P APPLICATION WORK SHEET
PREMISES ADDRESS:
'- ---
LICENSE TYPE: ` \ ;�
1. CRIME REPORTING DISTRI
:Jurisdiction unable to provide statistical data.
Reporting District:
Total number of reporting districts:
Total number of offenses: 1
Average number of offenses per district:
120% of average number of offenses:
Total offenses in district:
Location is within a high crime reporting district: Yes/No
2. CENSUS TRACT UNDUE CONCENTRATION
Census Tract:
Population /Count~" Ratio
Number of licenses allo`Ved:1
Number of existing licenses:1
Undue concentration exist . AYES O
Letter of public convenience or necessity- requir �.- �, �ngBo�d�vpplicant
Three time publication require : YE O
Pe sdn Taking _-knnlication 1 Tn,%,eetiQgtnr giinPr-.,knr
"ABC"LICENSES IN GRAND TERRACE
1. 12490 Michigan St.* Grand Terrace Market Type 20 Seung T Kong
2. 21900 Barton RD EZ Mart Type 21 Aamir Bros. Inc.
3. 22045 Barton RD* G.T. Shell Type 20 Fahim Saad Tanios
4. 22087 Barton RD* Qwik Stop (Arco) Type 21 Ali M Yasin
5. 22310 Barton RD Smart Time Food Type 21 Alberre F. Souheil
6. 22400 Barton RD #23 JB's Food & Cocktails Type 47 Edward Mathias
7. 22400-01 Barton RD Food Connection Type 41 San DS Enterprises
8. 22413 Barton RD* Pizza Santa Maria Type 41 Jaklain Demain
9. 224441 Barton RD* Stater Bros Market 55 Type 21 Stater Bros Markets
10. 22483 Barton RD* G&M Oil 105 Type 20 G&M Oil Co, LLC
11. 22488 Barton RD Gallo Gordos Mex. Rest. Type 41 Gevina L. Parra**
(This restaurant is now closed but has been replaced by Anita's Casitas)
12. 22493 Barton RD* G.T. Liquor Type 21 Ramesh M. Patel
13. 22524 Barton RD Sav-on Drug Store Type 21 Albertson/Savon
Note:
* These businesses are located in Census Tract No. 71.06
* *This business is now closed and the new restaurant (Taco Village)has not yet obtained its
ABC license.
Notes:
Type 20= Off-sale beer and wine
__Type 21 =_ _ Off-sale General(Liquor)
Type 41 = On-sale beer and wine- eating place
Type 47= On-sale General - eating place
The "off-sale" allows foi� the package sale of alcoholic beverages whicl_, must be consumed off
the premises (off-site)while "on-sale"refers to the sale for on-site consumption such as a
restaurant.
Finance Department A
c�TY
(&A�;La I
GROND TERR CE
Staff Report
CRA ITEM ( ) COUNCIL ITEM (X) MEETING DATE: January 27, 2005
AGENDA ITEM
SUBJECT: CONFERENCE TRAVEL: FINANCE DIRECTOR
FUNDING REQUIRED
NO FUNDING REQUIRED XX
DISCUSSION:
'During the period of February 23-25, the California Society of Municipal Finance Officers
(CSMFO) will be holding its annual conference in Burlingame, California. This will involve
travel out of the area by the Finance Director to attend and participate in the conference.
Staff is requesting authorization from the City Council for this.travel. Funding is
included in the FY 2004-05 Budget.
RECOMMENDATION:
That the City Council authorize the Finance Director, Larry Ronnow, to attend the CSMFO
annual conference in Burlingame, California, February 23-25, 2005.
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STAFF REPORT
GMOHD TERR CE City Manager's Office
CRA ITEM ( ) COUNCIL ITEM (X)
MEETING DATE: January 27, 2005
SUBJECT: Updated Agreement between the California State University, San Bernardino
Foundation and the City of Grand Terrace to Provide Locally Originated Cable '
Programming on the Education/Government Channel During Specified Time
Periods.
FUNDING REQUIRED (X)
NO FUNDING REQUIRED ( )
SUMMARY: The City.of Grand Terrace along with fourteen other cities in the San Bernardino
Valley started in September of 2000, an effort to create a locally originated,television channel that
would provide coverage to the Inland Empire region. The Inland Empire,because of its proximity
to the media center in Los Angeles,has no local affiliates that cover our area. We lie in the shadow
of Los Angeles and the only media coverage given to this area tends to be that of a negative nature.
It is out of that desire to provide a local network that in November of 2003 the cooperative effort
launched the Inland Community Television Network. ICTN provides local cable subscribers on the
city's Public/Educational/Government channel, (channel 3) with locally originated programming
focusing on regional interests and concerns for up to 15 hours per day. The flagship program-is the
Inland Empire's only weeknight television newscast,which devotes coverage to the City of Grand
Terrace and the 14 other municipalities that have chosen to affiliate with the regional cable television
operation,Inland California Television Network(ICTN). In addition to news coverage,the City of
Grand Terrace receives a minimum of 765 on-air mentions for its involvement as a founding partner
with ICTN. The three airings of the news each weeknight, including the rebroadcast on KVCR
Channel 24 that reaches satellite and off-air viewers as well as cable, has a potential reach of 4
million viewers.
BACKGROUND: ICTN is established and managed by the Foundation for Cal State, San
Bernardino in partnership with the City to interconnect cablecast capabilities of 15 San Bernardino
County municipalities, thereby enhancing public information for Inland Empire residents. In
November 2003.1C!N launched the repioi-, s only ielevison nevus operatioi,as a community service
to a region historically under-served by locally televised public information.ICTN was built through
funding directed to the university's Foundation to build its capacity for distance learning and
electronically transferred information, as well as through corporate sponsorships and grants and
contracts.No financial investment was required of the cities to build or launch the network,yet each
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city was apprised during the original MOU process that the university Foundation was looking for
City support to market!and promote ICTN,
After one year on the air,the university Foundation ha§ learned that business sponsorships are not
as robust as anticipated because potential underwriters often seek a return on their advertising dollars
as opposed to sponsoring the news as a community service. The university Foundation continues
to write grants, bid for contract work and seek sponsorships on behalf of ICTN. This activity,
combined with a commitment from the university President to cover a portion of costs, means that
nearly two-thirds of the $1 million operation is supported by the Foundation's fund development
activities. ICTN also 'has turned to cost-saving measures, reducing staff and expenses while
preserving the quality of the news product.
Currently,ICTN is on-air from 9-11 p.m.Monday-Sunday.The expanded programming day,which
was desired by some of the partnering cities before the launch, is an optional service offered to
interested cities.The City of Grand Terrace retains control over when to opt-in and out of the ICTN
program schedule to accommodate City Council meetings and other uses the City may have for its
government access channel.
FISCAL IMPACTS: The university Foundation is seeking a fee-for-service of 25-cents per capita
annually in order to continue production of the news, which is distributed to all television viewers
(cable, satellite, off-air). Based on the January 2004 population for the City, the fee is $3,062. The
university is willing,to absorb the cost for the first half of the 04-05 fiscal year and pro-rate the fee
for January-June 2005. Thus. the fee for six months would be $1.531. The Foundation is seeking a
two year commitment through June of 2007,however.City Council's cannot bind a commitment of
,that length. Our commitment would be $1,531 for the current fiscal year and then two future one
year commitments that would be anticipated to be included in each annual budget for each of those
two years. Should the university Foundation discontinue the news service during this period, any
unamortized portion oflthe fee-for-service will be returned to the City.
STAFF RECOMMENDATION:
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STAFF RECOMMENDS COUNCIL ENTER INTO THE ATTACHED MOU AND
APPROPRIATE $1,531 FROM THE UNDESIGNATED GENERAL FUND BALANCE.
ATTACHMENTS: Proposed Agreement
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ADDENDUM TO MEMORANDUM OF UNDERSTANDING
BETWEEN
FOUNDATION for CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO
AND
GRAND TERRACE
1. In order to hFlp sustain the delivery of televised local news service for the CITY OF GRAND
TERRACE and the greater Inland Empire region;the CITY OF GRAND TERRACE shall contribute
the equivalent of$0.25 per resident annually to help the FOUNDATION for CSUSB fund the delivery '
of live,local news Monday-Friday evenings on the Inland California Television Network(ICTN).The
CITY OF GRAND TERRACE will receive recognition for its support on every newscast,255 times
peryear.In thg event that other cities in the ICTN partnership do not participate in the fee for service,
the FOUNDATION,for CSUSB agrees that the CITY OF GRAND TERRACE and other municipal,
affiliates of the network will not be required to make up the difference in the fee schedule.Moreover,
should the FOUNDATION for CSUSB discontinue the ICIN News service, it will return the
remaining balance of fees to the CITY OF GRAND TERRACE.
2. The CITY OF GRAND TERRACE may cooperate with the FOUNDATION for CSUSB and ICTN to
make available an expanded, designated network schedule at agreed-to time slots every day on its
Public,Education and/or Government channel for programming produced for regional viewership and
coordinated by ICTN.
[Monday through Sunday from 8 a.m. to 11 p.m., year around, as much as is needed for
available progrmnn7ing;and possible additional programming during other hours of the day
to be determined by CITY OF GRAND TERRACE]
I The designated time slots. identified in paragraph 2,will insure that all viewers will have access to the
same programming virtually at the same time, except when, in a given City's discretion, local
cablecasts take precedence over the FOUNDATION for CSUSB programming. In so doing, the
member cities will continue to foster the regional cable television network known as ICTN.
By signing below, the FOUNDATION for CSUSB and the CITY OF GRAND TERRACE manifest their
agreement to all of the foregoing provisions of this Agreement.
FOUNDATION for CALIFORNIA STATE THE CITY OF GRAND TERRACE OF
UNIVERSITY, SAN BERNARDINO GRAND TERRACE
By: By:
Its Its
Date: Date:
Page l of I
ICTN Fee for Service
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CITY POPULATION FEE PRO-RATED ANNUALLY
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Big Bear Lake 6,025 $753 $ 1,506
Chino 725100 $9,012 $18,025
Colton 5000 $6,350 $12,700
Fontana f 154,800 $19,350 $38,700
Grand Terrace ; 12,250 $1,531 $3,062'
I�i�1�laatl I 49,250 $61156 $12,312
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Loma Linda 20, 950 .$21618 $5,237
N-lontclair 34,750 $4,343 $8,687
Ontario 167,900 $20,98 7 $41,975
Rancho Cucamonga 154.800 $19,350 $381700
Redlands 6800 $8,600 $17,200
Rialto 98,100 $12,262 $24,525
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San Bernardino 196,300 $24,537 $49,075
Upland 72,700 $9,087 $18,175
I.ucaipn, 47,450 $5,931 $1 L862
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10/27/2004 I
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DATE: January 11,2005
W.O. # 12.645
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GRAND TERRPC CRA() COUNCIL ITEM (X) MEETING DATE: January 27,2005
j• .CC SUBJECT: Bike Lane Project-Barton Road -Mt.Vernon Avenue west to
UGH 1A Michigan St.
DEPARTMENT OF FUNDING REQUIRED XX NO FUNDING REQUIRED
nUILDING & SAFETY, Local Agency, City of Grand Terrace$7,000 from General Fund
PUBLIC WORKS State of California,D.O.T.Bicycle Facilities Unit$50,000
AND HOUSING
22795 Barton Road BACKGROUND
Suite B
Grand Terrace California 92313-5295 Over the past several years staff has been applying for bike lane grants and safe route
Civic Center to school grants. We have been successful in.obtaining grants for:
(909) 825-3825
Fax (909) 825-7506 • Barton Road - Mt. Vernon bike lane and street improvements
• Main St. bike lane and street improvements
• 6 staging areas on Barton Road, Mt. Vernon & Main St. ,
0 Realignment and street improvements, on Grand Terrace Road and Barton Road
0 Traffic signals on Mt. Vernon &De Berry
a Grant funds for traffic signals for Honey Hill and Barton Road which is being
coordinated through SANBAG Barton road synchronization project.
- 3
The above projects have been very beneficial to the citizens of the community by
providing street improvements and pedestrian safety also the beautification of several
of our intersections with lighting, signage and rest areas, including two city entrance
monument signs.
Now the city has been approved for another grant to extend our bike route along the
north side of Barton Road west from Mt. Vernon to Michigan which would include
some street improvements and sidewalk improvements
Staff has requested and received two proposals from local engineers for plans,
specifications and estimates for this project.
1. W.J. McKeever Inc. $10,084.00
2. Fraco Enterprises, Inc. $22,010.00
STAFF RECOMMENDS THAT THE CITY COUNCIL:
f
Awara the contract for the design of the bike lane project in the amount of
9 $ 10,084.00 To W.J.. Mc Keever Engmeenng.
Ls HNCH AGENDA ITEM',', M ���
CITY OF GRAND TERRACE -- _
EMERGENCY OPERATIONS COMMITTEE ^�
Regular Meeting
MINUTES
December 7, 2004
The Grand Terrace Emergency Operations Committee met at the regular time at the Emergency
Operations Center at 22795 Barton Road, Building 3. The meeting was called to order by Chairman
JoAnn Johnson at 6:00 p.m. Agendas were distributed.
MEMBERS PRESENT—JoAnn Johnson, Vic Pfennighausen, Glenn Nichols and Dottie Raborn.
MEMBERS ABSENT—Richard Haubert
CITY STAFF—Assistant City Manager, Steve Berry and Managementm Information System
,Specialist Dragos Barabu.
GUESTS PRESENT—None.
APPROVAL OF MINUTES of November 2, 2004 was given, with motion by Vic Pfennighausen
and second by JoAnn Johnson. Approved minutes are to be sent to Council.
LIAISON REPORT by Steve Berry
a. Steve met with engineer on new corporate yard containment for water. Should.have
specs in 2 weeks.
b. Natural gas request to AQMD for station.
c. Steve went to Upland for OACC meeting.
d. City birthday party on Thursday Dec 9 followed by Council Meeting at 7:30.
e. Daffodils planted at Rollins Park and improvements at Mt. Vernon and Grand Terrace
Road.
f. Christmas lights around town.
EQUIPMENT AND FACILITIES REPORT by Vic Pfennighausen
a. Everything is functional.
b. Will inspect trailer before picking up.
c. Suggestion was made that the trailer be inspected each time before moving to Fire Station
and again before picking up.
d. Vic will put in purchase orders for a microwave, ice box, book case and shredder.
e. Survival food is out dated and will be replaced.
f. JoAnn will look into purchasing Ensure or Ensure plus at the VA Hospital also other food
supplies.
UNFINISHED BUSINESS—None
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NEW BUSINESS
a. Need a new secretary.
TRAINING/SPEAKERS
a. Tour to the Arrowhead Hospital-will be planned for next year.
b. A return visit to County EOC in the Spring.
c. Tour of Red iCross facilities will be planned. '
d. Glenn attended a Major Disaster meeting. The 71h Day Adventist Church provides
blankets and clothes. Baptist Church provides food.
ADJOURNMENT AT 6:40 p.m.
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Respectfully submittgd, j
Dottie Raborn
NEXT MEETING WILL BE TUESDAY, January 4, 2005 AT 6 P.M.
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r STAFF REPORT
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GRfiNDTERR CE City Manager's Office
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CRA ITEM ( ), COUNCIL ITEM (X )
MEETING DATE: JANUARY 27, 2005
SUBJECT: COUNCIL SET 2005STRATEGIC PLANNING WORKSHOP
FUNDING REQUIRED ()
NO FUNDING REQUIRED (X )
Prior to the development of the 2005 - 2006 fiscal year budget the City traditionally has
conducted a strategic planning workshop to insure that the Council's strategic plan is met by the
proposed expenditures in the preliminary budget. Staff is recommending that the City Council
select a date to conduct the workshop.
r STAFF RECOMMENDATION.
STAFF RECOMMENDS THAT THE WORKSHOP ICE MELD ON FEBRUARY 24, 2005,
IN THE COMMUNITY ROOM OF THE CIVIC CENTER FROM 4:30PM - 6:OOPM
PRIOR TO THE REGULARLY SCHEDULED CITY COUNCIL MEETING.
x