09/22/2005 r
- LE ,, OFY0
;w
NROND ERR CE _ September 22;2005'
22795 Barton Road r• „
Grand Terrace z
California-92313-5295
Civic Center
(909)824-6621:'
Fax"(909)783-7629 !
Fax(909)783-2600
1VlaryettaFerre CITY OF,GRAND TERRACE. • ,
mayor-'
Bea Cortes
Mayor Pro Tem
CRAXITY-COUNCIL,
.Herman Hilkey
Lee Ann Garcia.,
Jim Miller REGULAR MEETINGS
Council Members. - t'
Thomas J.Schwab 2ND,.AND '4TH Thursday -`6:00 p.m.
City Manager' ,• _. _ - .. ,
Comicil'Chambers -
Grand Terrace Civic-Center
a , 22795 Bakori Road ;
CITY OF GRAND TERRACE
COUNCIL MEETING
AGENDA
CITY COUNCIL CHAMBERS SEPTEMBER 22,2005
GRAND TERRACE CIVIC CENTER . 6:00 PM
2.2795 Barton Road
S 'AIE CITY OF GRAND TERkkCEC OMPLI98-VVITIITHE' tA1�SWITI1D"1S'ABILr M. 1990-IFYOU'
,-REQUIRE SPECIAL' SISTAN MEE T E C -CITY AS CE TO,P IPATE'INrTHIS Gj..PL ASK�. -AJL THEI-, CL
6FFICKAT' ',.�, '414- 0'4" -AS"T' :48-HOURSPR1(R 0 THE�MEETING.ATLE
�4FXOUJASTkO TOA]IDDRESS-THE"CITY
Y,COUNCIL D G'T11E MEE'TEqG,,.PLE�i§'k:t6MPLE',TEA REQUEST,,,.
A-V*�IL E ENTRANCE TRESENT.-IT TO THK 1-TY RSWILD:
TO-SPEAK FORM' 'C ND CLEW,'SPEAKE
�E I 11Y.D.UPON THE MAYOR AT THE-APPROPRIATE TIME.,
Call to Order-
Invocation-Pastor Roberto Garcia,Terrace Crest Baptist Church,
Pledge of Allegiance-
Roll Call-
STAFF COUNCIL
AGENDA ITEMS RECOMMENDATION ACTION
CONVENE COMMUNITY REDEVELOPMENT AGENCY
1. Approval of 09-08-2005 Minutes Approve
ADJOURN COMMUNITY REDEVELOPMENT AGENCY
CONVENE CITY COUNCIL MEETING
1. Items to.Delete
2. SPECIAL PRESENTATIONS
A. Grand Terrace Little League Girls Junior Softball All-Stars
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
discussion.
A. Approve Check Register Dated September 22,2005 Approve
B. Waive Full Reading'of Ordinances on Agenda
C. Approval of 09-08-2005 Minutes Approve
COUNCIL AGENDA
09-22-2005 PAGE 2 OF 3
AGENDA ITEMS STAFF COUNCIL
RECOMMENDATIONS ACTION
4. PUBLIC COMMENT
This is the opportunity for members of the public to comment
on any-items not appearing on the regular agenda. Because of
restrictions contained in California Law,the City Council is
prohibited from discussing or acting on any item not on the
agenda. The Mayor may request a brief response from staff
to questions raised during public comment.
5. REPORTS
A. Committee Reports
1. Emergency Operations Committee
a. Minutes of 08-02-2005 Accept
b. Appoint New Committee Member(Hurst) Appoint
2. Crime Prevention Committee
a. Minutes of 08-08-2005 Accept
b. California Sexual Predator Punishment and Control Adopt
Act
3. Historical&Cultural Activities Committee
a. Minutes of 07-11-2005 Accept
B. Council Reports
6. PUBLIC HEARINGS
A. Street Cut Policy and an Ordinance of the City Council of the Continue
City of Grand Terrace, California Establishing Fines for
Failure to Obtain a Street Cut Permit and Failure to Perform
Street Cut Construction in Accordance to the Specifications
as Described in the Specifications for Construction Within
the Public Right of Way
7. UNFINISHED BUSINESS
A. Second Reading of an Ordinance of the City Council of the Approve
City of Grand Terrace Approving SP-05-01 (Blue Mountain
Senior Villas Specific Plan)and Environmental Assessment
E-05-16
Second Reading of an Ordinance of the City Council of the
City of Grand Terrace, State of California, Approving
General Plan Amendment Case No GP-05-01 for an
Amendment to the City General Plan - Community
Development Element to Add a New Land Use Designation
of Medium High Density Residential
B. Approve August 25, 2005 Council Minutes and Re-vote on Approve/Re-vote
Voucher#56055 in the Amount of$890,674.00
I
I
I
COUNCIL AGENDA
09-22-2005 PAGE 3 OF 3
AGENDA ITEMS STAFF COUNCIL
RECOMMENDATIONS ACTION
8. NEW BUSINESS
A. Discussion on Fireworks Regulations
B. Consideration of a Lease Agreement Between the City of Approve
Grand Terrace and T-Mobile Wireless on a Cell Tower
Site at the City's Corporate Yard
C. Blue Mountain Villas-Ground Lease
9. CLOSED SESSION-None
ADJOURN
THE NEXT CRAXITY COUNCIL MEETING WILL BE HELD
ON THURSDAY,OCTOBER 13, 2005 AT 6:00 P.M.
... .........................................
AGE ..
NDA IT REQUESTS FOR THE 10-13-2. .. .005 MEETING
MUST BE SUBMITTED IN WRITING TO THE CITY CLERK'S
OFFICE BY NOON 10-06-2005.
mr Z t Bs C RA P FLb' G i�OVAAL
CITY OF GRAND TERRACE
COMMUNITY,REDEVELOPMENT AGENCY MINUTES
REGULAR-MEETING- SEPTEMBER 8, 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 September 8, 2005 at 6:00 p.m.
PRESENT: Maryetta Ferr6, Chairman
Bea Cortes, Vice-Chairman
Herman 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
Colin Burns, City Attorney
Lt. Hector Guerra, Sheriff s Department
ABSENT: John Harper, City Attorney -
APPROVAL OF 08-25-2005 MINUTES
CRA-2005-24 MOTION BY VICE-CHAIRMAN CORTES, SECOND BY AGENCY MEMBER
GARCIA,CARRIED 4-0-1-0(AGENCY MEMBER HILKEY WAS ABSENT),to
approve the August 25, 2005 Community Redevel i opment Agency Minutes.
Chairman Ferr6 adj ourned the Community Redevelopment Agency Meeting at 6:15 p.m.,until the
next CRA/City Council Meeting scheduled to be held on Thursday,September 22,2005,at 6:00 p.m.
SECRETARY of the Community Redevelopment
Agency of the City of Grand Terrace
CHAIRMAN of the Community Redevelopment
Agency of the City of Grand Terrace
C A AGENDA ITEM NO. I
Check Registe ited September 22, 2005
vchlist Voucher List Page: 1
09/14/2005 4:07:02PM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date' Vendor Invoice Description/Account Amount
56209 9/7/2005 010473 JESSE HERNANDEZ CONCRETE 09062005 DRAIN
12-903-703-000-000 1,000.00
Total : 1,000.00
56210 9/7/2005 010418 AGUDO, ANGEL 09062005 Reimburse battery purchase
10-180-272-000-000 36.64
Total : 36.64
56211 9/7/2005 010540 S.B. COUNTY VOLUNTEER SERVICES 06142005 13 Citizen Patrol badges /
23-200-03-00 903.50
Total : 903.60
56212 9/7/2005 005529 SBC CALIFORNIA Final 8/24/05 Final DSL thru 8/17/05
10-380-235-000-000 195.98
Total : 195.98
56213 9/12/2005 005586 PETTY CASH 09072005 Reimburse petty cash
10-440-220-000-000 23.02
10-440-221-000-000 21.76
10-440-223-000-000 65.85
10-440-228-000-000 161.18
10-440-210-000-000 12.35
Total : 284.16
56214 9/12/2005 006315 ROLLINS, RICHARD Aug. 2005 Aug. Open/Close/Clean Parks
107450-245-000-000 1,201.25
Total : 1,201.25
56215 9/14/2005 001907 COSTCO#478 0478 17 0160 11 CHILD CARE SUPPLIES
10-440-220-000-000 61.62
23-200-14-00 71.37
Total : 132.99
56216 9/14/2005 006720 SO.CA.EDISON COMPANY Aug. 2005 Aug. electricity
Page: 1
_Vchlist Voucher. List Page.! 2
09/14/2005 4:07:02PM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
56216 9/14/2006 006720 -SO.CA.EDISON COMPANY (Continued)
10-805-238-000-000 1,207.87
16-510-238-000-000 3,621.35
26-600-238-000-000 49.80
26-601-238.7000-000 41.50
26-602-238-000-000 58.10
Total : 4,978.62
56217 9%14/2005 010102 CALIF.ASSOC. OF CODE ENFORCE. 09132005 2005 Annual CACE Seminar
34-800-270-000-000 295.00
Total : 295.00
56218 9/22/2005 001024 ACCENT PRINT& DESIGN 250697 Concert mailer
23-200-63-00 542.48
250717 Business Cards-R. Shields
10-172-220-000-000 92.67
Total : 635.15
56219 9/22/2005 001045 ADVANCED COPY SYSTEMS 1251581 Drum &cleaning
10-440-246-000-000 113.51
Total : 113.51
56220 9/22/2005 010308 AMERICAN ROTARY BROOM CO. INC 240659 2 sets sweeper broom kits
16-900-254-000-000 159.79
Total : 159.79
56221 9/22/2005 010158 AMSTERDAM PRINTING 9066591 2006 Attendance Calendars
- 10-440-210-000-000 30.02
Total : 30.02
56222 9/22/2005 010293 AVAYA, INC. 0100319113 MAINTENANCE FOR PHONE SYSTEM &VOICE M,
10-180-246-000-000 183.46
Total : 183.46
56223 9/22/2005 010.541 AW DIRECT INC. 1642896-01 20 Mesh vests
10-180-218-000-000 77.75
- - Total : 77.75
Page: 2
r
vchlist Voucher List Page: 3
09/14/2005 4:07:02PM CITY OF'GRAND TERRACE
Bank code: bofa
Voucher Date Vendor' Invoice Description/Account Amount
56224 9/22/2005 001381 BARHAM CONSULTING SVCS 53031 June Consulting
10-175-255-000-000 1,550.00,
Total : 1,550.00
56225 9/22/2005 001383 BARR DOOR INC. 7760 Repair Library Back Door
10-180-245-000-000 134.91
Total : 134.91
56226 9/22/2005_010217 CALIFORNIA OVERNIGHT 4888015 Document Delivery
10-120-210-000-000 27.25
Total : 27.25
56227 9/22/2005 010218 CHEVRON &TEXACO CARD SERVICES 78981.91957509 Aug. Fuel
10-180-272-000-000 986.82
16-900-254-000-000 205.99
Total : 1,192.81
56228 9/22/2005 010147 CORTES, BEA 09012005 Travel Advance-S.F. 10/5-8
10-110-270-000-000 200.00
Sept. 2005 Sept. Council &Agency Stipends
- 32-200-120-000-000 150.00
10-110-120-000-000 189.00
Total : 539.00
56229 9/22/2005 001907 COSTCO#478 302302606030 Business Renewal
10A 90-265-000-000 90.00
Total : 90.00
56230 9/22/2005 001937 DANKA OFFICE IMAGING COMPANY 704329213 COPIER CHARGES
10-172=246-000-000 22.17
10-175-246-000-000 27.70
-34-400-246-000-000 60.96
Total.: 110.83
56231 9/22/2005 003210 DEPT 32-2500233683 13211/0014972 Halloween Haunt Supplies
23-200-64-00 485.17
Total : 485.17
Page: 3
`Ychlist Vourhe-r_List Page. 4
09/14/2005 4:07:02PM CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
56232 9/22/2005 002082 DISCOUNT SCHOOL SUPPLIES D05097330101 TINY TOT SUPPLIES
10-440-221-000-000 303.96
Total : 303.96
56233 9/22/2005 002165 DRUG ALTERNATIVE PROGRAM 5933 LAWN CARE
34-700-767-000-000 40.00
Total : 40.00
56234 0/22/2005 002187 DUNN-EDWARDS CORP. 00180173474 PAINT SUPPLIES
10-180-245-000-000 16.65
Total : 16.65
56235 9/22/2005 010537 EXECUTIVE SERVICES 571 JANITORIAL SERVICES
10-180-255-000-000 2,002.50
605 JANITORIAL SERVICES
10-180-255-000-000 1,125.00
615 Backpack Vacuum
10-180-218-000-000 375.08
622 JANITORIAL SERVICES
_ 10-180-255-000-000 125.00
Total : 3,627.58
56236 9/22/2005 002301 FEDEX 5-575-57.858 -Document Delivery
10-140-210-000-000 22.84
Total : 22.84
56237 9/22/2005 002450 FERRE', MARYETTA 09072005 Reimburse Monterey expenses
10-110-270-000-000 46.33
Sept. 2005 Sept. Council&Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 250.00
Total : 446.33
56238 9/22/2005 002500 FIREMASTER 113147896 Annual Extinguisher Maint
10-180-245-000-000 306.02
Total : 306.02
Page: 4
z s' i
vchlist Boucher List Page: 5
09/14/2005 4:07:02PM CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
56239 9/22/2005 002740 FRUIT GROWERS SUPPLY 32074410 SUPPLIES
16-900-254-000-000 57.72
Total : 57.72
56240 9/22/2005 002901 G.T. AREA CHAMBER OF COMMERCE 4631-AD BLUE MT OUTLOOK
10-125-213-000-000 620.00
Total : 620.00
56241 9/22/2005 010536 GALLS 5788387800019 LIGHT BARS FOR MAINT TRUCKS
10-180-272-000-000 1,274.96
10-180-272-000-000 93.00
Total : 1,367.96
56242 9/22/2005 002795 GARCIA, LEE ANN 09142005 Reimb July Monterey Expense
10-110-270-000-000 150.00
Sept. 2005 Sept. Council &Agency Stipends
32-200A 20-000-000 150.00
10-110-120-000-000 218.65
Total : 518.65
56243 9/22/2005 010181 GOPHER PATROL Aug. 2005 Aug. gopher control
10-190-719-000-000 4500
Aug. 2005a GOPHER ERADICATION SERVICE
10-450-245-000-000 465.00
Total : 510.00
56244 9/22/2005 010425 GRAND TERRACE MARTIAL ARTS Sept. 2005 Sept. Martial Arts Class
10-430-27 1,249.85
Total : 1,249.85
56245 9/22/2005 003200 HILKEY, HERMAN Sept. 2005 Sept. Council &Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 250.00
Total : 400.00
56246 9/22/2005 003171 HINDERLITER de LLAMAS &ASSOC. 0010816-IN 3rd Qtr Sales Tax Audit Srvs
10-140-250-000-000 150.00
32-370-255-000-000 150.00
Page: 5
vchlist Voucher List Page: 6
09/14/2005 4:07:02PM CITY'OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
56246 9/22/2005 003171 HINDERLITER de LLAMAS &ASSOC. (Continued) Total : 300.00
56247 9/22/2005 003213 HONEYWELL ACS SERVICE 3239746 HVAC SERVICES
10-180-251-000-000 4,922.00
Total : 4,922.00
56248 9/22/2005 003224 HYDRO-SCAPE PRODUCTS INC. -4078357-00 LANDSCAPE/MAINT SUPPLIES
- - 10-450-245-000-000 - 157.74
4085200-00 LANDSCAPE/MAINT SUPPLIES
10-450-245-000-000 272.74
4085200-01 LANDSCAPE/MAINT SUPPLIES
10-450-245-000-000- 48.28
4090617-00 LANDSCAPE/MAINT SUPPLIES
10-450-245-000-000 109.32
4095435-00 LANDSCAPE/MAINT SUPPLIES
- 10-450_-245-000-000 156.25
Total : 744.33
56249 9/22/2005 003850 JANkKING 08050084 CLEANING SERVICES
34-400-246-000-000 150.00
08052053 BUILDING CLEANING
10-440-244-00.0-000 80.00
9050070 BUILDING CLEANING
_ 10-440-244-000-000 815.00
Total : 1,045.00
56250 9/22/2005 010473 JESSE HERNANDEZ CONCRETE 09062005 POST HOLES SURROUNDING PUMPS
10-180-245-000-000 1,000.00
Total : 1,000.00
56251 9/22/2005 003867 K. D. SALES 144194 SUPPLIES
10-180-245-000-000 66.72
Total : 66.72
56252 9/22/2005 004620 MCI TELECOMMUNICATIONS 09042005 Aug. phone chgs-EOC
- 10-808-235-000-000 35.88
Page: 6
l y'
vchlist Voucher List Pager 7
09/14/2005 4:07:02PM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
56252 9/22/2005 004620 MCI TELECOMMUNICATIONS .(Continued) Total : 35.88
56253 9/22/2005 004632 METLIFE 895065375M1 Ins. Benefit-Hugh J. Grant
10-110-142-000-000 701.98
Total : 701.98
56254 9/22/2005 010446 MILLER, JIM 09142005 Reimb July Monterey Mileage
10-110-270-000-000 150.00
r
Sept. 2005 Sept. Council &Agency Stipends
32-200-120-000-000 150.00
10-110-120-000-000 250.00
Total : 550.00
56255 9/22/2005 001456 OFFICE MAX-A BOISE COMPANY 490109 Office Supplies
10-440-210-000-000 794.76
6.46145 Copy paper
10-190-212-000-000 111.64
Total : 906.40
56256 9/22/2005 005435 ORIENTAL TRADING COMPANY 601882679-01 Halloween Haunt Toys
23-200-64-00 269.70
Total : 269.70
56257 9/22/2005 005537 PATTON SALES CORP 1142430 3"Sch 40 BPE
10-180-245-000-000 251.42
Total : 251.42
56258 9/22/2005 005586 PETTY CASH - 09132005 Reimburse petty cash
10440-228-000-000 44.97
10-44.0-223-000-000 48.32
Total : 93.29
56259 9/22/2005 005688 PROTECTION ONE 31891344-2nd ALARM MONITORING
- 10-180-247-000-000 98.85
Total : 98.85
56260 9/22/2005 010208 RATELLE, DAZE&ASSOCIATES Aug. 2005 CONSULTING
34-400-251-000-000 1,920.00
Page: 7
—veh'wst Voucher List Page: 8
•0911 CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
56260 9/22/2005 010208 RATELLE, DAZE&ASSOCIATES (Continued) - Total : 1,920.00
56261 9/22/2005 010494 REVENUE&COST SPECIALIST, LLC 7791 DEVELOPMENT IMPACT STUDY
10-190-250-000-000 , 3,600.00
Total : 3,600.00
56262 9/22/2005 006453 S.B. COUNTY AUDITOR/CONTROLLER 1840 BOOKING FEES
_ 10-410-259-000-000- 559.02 -
Total : 559.02
56263 9/22/2005 006531 S.B. COUNTY SHERIFF 6125 SHERIFF CONTRACT
10-410-255-000-000 3,361.50
10-410-256-000-000 102,637.80
14-411-256-000-000 6,050.70
6125a SHERIFF CONTRACT
14-411-256-000-000 14,861.00
Total : 126,911.00
56264 9/22/2005 006435 SAN BERNARDINO, CITY OF 685 ANIMAL SHELTER SERVICES
10-190-256-000-000 553.00
685a DECEASED ANIMALS
10-190=256-000-000 750.00
Total : 1,303.00
56265 9/22/2005 010527 'SHADE STRUCTURE 6132-IN SHADE STRUCTURE
23-200-14-00 7,755.36
Total : 7,755.36
56266 9/22/2005 006130 SO.CA.GAS COMPANY Aug. 2005 Aug. Natural Gas
10-440-238-000-000 36.41
10-190-238-000=000 69.10
10-805-238-000-000 15.63.
= Total : 121.14
56267 9/22/2005 006778 STAPLES CREDIT PLAN 562556 10 006 C Office supplies
1 OA 72-210-000-000 30.30
Total : 30.30
ti Page: 8
vchlist Voucher List_ Page: 9
09/1.4/2005 4:07:02PM CITY OF GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount
56268 9/22/2005 006898 SYSCO FOOD SERVICES OF L.A. 5090706648 FOOD SUPPLIES
10-440-220-000-000 401.84
5090706655 FOOD SUPPLIES
'10-440-220-000-000 13.52
Total : 415.36
66269 9/22/2005 007034 TRANSPORTATION ENGINEERING 536 TRAFFIC ENGINEERING SERVICES & GRANT
10-370-255-000-000 ' 1,050.00
536a July consulting
10-175-250-000-000 105.00
Total : 1,155.00
56270 9/22/2005 007400 U. S. BANK TRUST N.A. 1559962 Custodian Admin Fees-
10-190-251-000-000 1,000.00
Total : 1,000.00
56271 9/22/2005 007220 UNDERGROUND SERVICE ALERT 2005080286 DIG ALERT MONTHLY SERVICE
16-900-220-000-000 55.80
Total : 66.80
56272 9/22/2005 010421 VILLAGE ENTERPRISES, DARCY MCNAB 05-54 August Consulting
10-180-255-000-000 380.00
Total : '380.00
56273 9/22/2005 007795 WAXIE 69083364 03 SUPPLIES
10-180-245-000-000 1,254.95
Total : 1,254.95
56274 9/22/2005 007854 WESTERN EXTERMINATORS CO 246605 PEST CONTROL -
10-180-245-000-000 80.00
10-440-245-000-000 68.50
34-400-246-000-000 35.50
10-805-245-000-000 30.50
Total : 214.60
56275 9/22/2005 010344 WOLFPACK INS. SERVICES TRUST Oct. 91003-116 DENTAL INS B CORTES
10-110-120-000-000 61.00
r
Page: 9
whilst Vni1C.heLlist Page: 10
09/14/2006 4:07:02PM CITY OF GRAND TERRACE
Bank code : bofa
Voucher Date Vendor Invoice Description/Account Amount
56275 9/22/2005 010344 WOLFPACK INS. SERVICES TRUST (Continued) Total : 61.00
56276 9/22/2005 007987 XEROX CORPORATION 012135623 COPIER CHARGES
10-190-246-000-000 419.32
10-190-700-000-000 110.69
012135624 COPIER USAGE
10-190-700-000-000 318.22
Total : 948.23
68 Vouchers for bank code : bofa Bank total : 182,415.58
68 Vouchers in this report
- Total vouchers : 182,415.58
I certify that, to the best of my knowledge, the afore-listed checks for payment of City and Community Redevelopment
Agency liabilities have been audited by me and are necessary and appropriate expenditures for the operation of the
City and Agency.
Larry Ronnow, Finance Director
�- Page: 10
j,--, -,
CITY OF GRAND TERRACE
CITY COUNCIL MINUTES
REGULAR MEETING- SEPTEMBER 8, 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
September 8, 2005, at 6:00 p.m.
PRESENT: Maryetta Ferr6, Mayor
Bea Cortes,Mayor Pro Tem
Herman Hilkey, 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 Glander, Building& Safety Director
Gary Koontz, Community Development Director
Colin Burns, City Attorney
Lt. Hector Guerra, Sheriff's Department
ABSENT: John Harper, City Attorney
The City Council meeting was opened with Invocation by Pastor Rick Doucette,Calvary,The Brook
Church followed by the Pledge of Allegiance led by Mayor Pro Tem Bea Cortes.
ITEMS TO DELETE -None
SPECIAL PRESENTATIONS
2A. Grand Terrace Partners - Outdoor Adventure Center Project
Allan McKenzie, stated that the development team is comprised of four separate entities,
each of the companies have separate areas of expertise. He introduced each company and
how they are involved in the project. He gave the mission statement "A state of the art
outdoor themed master planned community but reflecting what the community itself is
looking for. They have to marry the needs of the tenants of the retail users with what the
concerns of the community are and what comes out of their work is a project that hopefully
meets both those needs and is viable. They think that this will enhance the gateway to the
City, maximize the long term income for the City through tax increment and other means,
redevelop underutilized urban land using private funding sources, functual uses, retail
restaurant services, fitness,hotel, etc. The amenities are critical,they believe landscaping,
u.c � AGE DA ITENq V'50m] �
I
Council Minutes
September 8,2005
Page 2
walking trails are what is expected in a project of this nature and what a community like
Grand Terrace will require. There are obviously a lot of new infrastructure, freeway ramps,
roadways and utilities, etc. They are an out-of-town developer, however, they believe that
they bring to this area a sensitivity as to quality and listening to the community and look
forward to meeting with the community and hearing their feedback. As part of the Exclusive
Negotiating Agreement they were required to prepare the following list of documents,all of
which they have done, and although through the Agreement they were only required to do
those documents they did additional work and delivered that information as well:
Market Demand Study
Preliminary Site Plans
Development Budgets
Operating Budgets
Financing Plans
He gave the highlights of the market demand study and the proj ect itself. He indicated that
this project will be heard many times and they are basically here just to let everyone know
where they are at this time and to get input and answer questions.
Councilmember Miller, questioned what happened with the off-ramp at De Berry.
Allan McKenzie,responded that they retained land engineering who are design engineers for
SANBAG looking at the whole freeway main line. They have concluded that until the UP
railroad bridge is widened and the freeway under the bridge is sunk,that bridge is too close
to that off-ramp location and there are not sufficient site lines to meet the standards of the
Federal Government and they strongly advised that the configuration would not be
acceptable. They could not do that design.
Councilmember Miller,suggested that Mr.McKenzie report the amount of money and time
that they have already put into the project.
Allan McKenzie,indicated that it is in the excess of 6 figure range. They feel that they have
to do it right and they are complicated processes and they feel that they have a very strong
consulting team.
Councilmember Miller, indicated that it has been said that SANBAG is going try to do a
diamond interchange and that will affect some of the businesses and some of the school
property as well.
Allan McKenzie, described the interchange issue.
Community Development Director Koontz, indicated that the Caltrans plan has not been
Council Minutes
September 8,2005
Page 3
approved yet and they have a long process to go through before they say that it what is going
to be built.
Councilmember Garcia, stated that public participation is very important to Grand Terrace.
She questioned if they could prepare a public participation plan. The residents want to know
at what point they can give their input into the process.
Allan McKenzie, responded in the affirmative. They want the input from the community.
Councilmember Garcia, stated that there are some existing groups that she feels should be - -
included as well possibly doing an objective survey of a sampling of the resident. She stated
that transportation is very important to her and she wants to make sure that we don't allow
the state and federal agencies to dictate to the City what we would like to see in our town.
She questioned if it would be possible to have a grounds up process in terms of what we
would like to see as far as circulation within our parameter.
Allan McKenzie,responded that they would anticipate working very closely with staff.
Councilmember Garcia, stated that she doesn't want to see staff going out there and doing
things and coming back and saying this is our only choice. She would like to start
discussions now on what they want to do with that interchange.
Community Development Director Koontz, indicated that discussions have already been
started.
Councilmember Garcia, stated that the Council has not been involved in those discussions.
Community Development Director Koontz, indicated that the discussions have been
preliminary so far and if Council would like to be directly involved they most certainly can.
Councilmember Garcia, stated that she would like to be involved in those discussions.
Councilmember Hilkev, indicated that he has some concerns with the financing of the off
ramp and the rearranging of the Barton Road exit. He is also concerned about the change in
the traffic flow with the new design especially along Michigan. He questioned if the peaker
plant will help the project or not.
Allan McKenzie, stated that there are options for financing. He indicated that there will be
studies done having a Peaker Plant near the project.
Councilmember Hilkev, questioned if it is premature to talk to the community about what
type of stores they want.
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Council Minutes
j September 8,2005
Page 4
Allan McKenzie,responded that it is not too early. They would like to hear what they want
or don't want.
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Councilmember Hilkey, is very impressed with the project that they have done.
Mayor Pro Tem Cortes, asked for a comparison with the challenges of Grand Terrace -t}
compared to other projects they have done.
Allan McKenzie, responded that every project has it's unique challenges when they are of
this scale. He feels that the most challenging aspect of this project is the freeway route.
Councilmember Hilkev, stated that there were some time lines that were not met,however,
the first one was approved by staff and the second one was just a week late.
Allan McKenzie, stated that per the ENA there were certain deliverables that they were
required to make during certain time frames. One of the items was feedback to the City on
conversations with key tenants. They requested of the City and was approved by the City to
delay that until after the International Counsel of Shopping Centers Convention in Las
Vegas. The second deliverable that was due to come in on June 29,2005,they took the long
holiday weekend to polish it up. Apart from that he believes that they have met all of their
deadlines.
John Hag , 1194 Mohave Drive,Colton,indicated that he is a Real Estate Broker. He urged
the Council and staff that they consider other ideas for that area and have open discussion
with local developers.
Greg Goatcher, 12011 Honey Hill Drive,stated that he understands the need for order during
a meeting,however,he feels that they don't need to be talked to like children. He stated that
the proposed off-ramp will have an affect on two of his businesses and he feels that it could
be better thought out.
Kacy Carlsen, 22080 Commerce Way, stated that she has asked numerous times if this
project was going to affect her business. She would like to know where her business stands
with regards to this project.
Patricia Farley, 12513 Michigan Street, stated that she is glad that there have been changes
to the initial plans. She expressed her concern with wiping out current businesses,how this
plan will affect the new high school and how many houses will be taken out to make up for
it. She is concerned with businesses being built before the infrastructure is done. She
recommended that the City come up with a better name for the center.
Ci1y Manger Schwab,stated that the plan that is being looked at is a potential design that was
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September 8,2005
Page 5
put together by LAN Engineering that works with SANBAG. If that project were to be
installed, they are projecting that it would be done in 2015. If we want to wait for the
ultimate development it will be in fifteen years, there are some interim improvements that
they are negotiating with Caltrans that will not affect Mr. Goatcher's property or Cal Skate.
They won't realign any of the other streets except for on La Crosse. This is something that
the freeway program is going to do whether we do this project or not.
' Allan McKenzie,stated that it would specifically improve and somewhat realign the existing
Barton Road off-ramp,it would widen the bridge,it would move the La Cross roadway away
from the freeway. There would be some widening on Barton Road,however he doesn't think
that it will affect any of the businesses referred to earlier.
Councilmember Garcia, feels that the traffic and circulation is very important and that there
are ways to plan it. She stated that Council was not involved in the interim solution.and feels
that it is important that the residents know that because the circulation is critical to this
project.
Councilmember Hilkey, stated that the ultimate build out will be a part of the 215 widening
from Orange Show to the big intersection in Riverside County. As Caltrans widens the
freeway there will be public hearings. It will affect everyone on both sides of the freeway,
the school district, all of the businesses down on Washington.
CONSENT CALENDAR
CC-2005-91 MOTION BY COUNCILMEMBER HILKEY,SECOND BY COUNCILMEMBER
GARCIA, CARRIED 3-0-1-1 (MAYOR FERRE WAS ABSENT AND
COUNCILMEMBER HILKEY ABSTAINED), to approve the following Consent
Calendar Items with the removal of Item 3C. Approval of 08-25-2005 Minutes:
3A. Approve Check Register Dated September 8, 2005
3B. Waive Full Reading of Ordinances on Agenda
ITEM REMOVED FROM CONSENT CALENDAR
3C. Approval of 08-25-2005 Minutes
Councilmember Miller, stated that his wife has her own business,Miller Associates,which
is not owned by Terra Loma Real Estate nor does she work for Terra Loma Real Estate. She
works in concert with Terrace Loma doing loans. She had nothing to do with the
transactions that was done on DeBerry Street. At a previous meeting he had abstained from
the vote of the first check for the purchase of the De Berry Street property. At the last
meeting he voted on the second check for the purchase of the De Berry Street property when
Council Minutes
September 8, 2005
Page 6
he had intended on abstaining from the vote. He would like to change the vote to abstain.'
Cily Manager Schwab, stated that in order to change the vote the item would have to be
reagendized. He suggested that Council table the minutes and staff will bring back this one
item before the Council at which time they can re-vote.
CC-2005-92 MOTION BY COUNCILMEMBER MILLER, SECOND BY COUNCILMEMBER
GARCIA, CARRIED 4-0-1-0 (MAYOR FERRE WAS ABSENT), to table the
approve of the August 25, 2005 Minutes.
PUBLIC COMMENT
Patricia Farley, 12513 Michigan Street,,stated that there are a lot of people looking into what
is going on around in the City. She stated that the Notice of Determination was filed on the
Manhole Builders project by Gary Koontz on June 23, 2005 before the project was even
heard. She stated that the 30 day deadline has passed and feels that it is invalid. She feels
that staff has no right to file this document especially when they know all of the concerns and
all the complaints about the environment that were not addressed.
Charles Hornsby,22656 Brentwood Street,feels that the City Council are held captive by the
Redevelopment people. He feels that the Council is told what to do by the Redevelopment.
He feels that the City Council needs to examine their own consciences and decide whether
they are going to be held captive by the people of Redevelopment as opposed to trying to do
what is best for the citizens.
Cily Manager Schwab, stated that he will look into the filing of the Notice of Determination
of the Manhole Builders project and determine if there was anything improper in the filing.
He stated that redevelopment has been very important to the community and it will remain
so. It has been a good financing tool and remains to be so and until the time the Council
decides to let the Agency expire it will continue to exists.
ORAL REPORTS
5A. Committee Reports
1. Crime Prevention Committee
a. Minutes of 07-11-2005
CC-2005-93 MOTION BY COUNCILMEMBER MILLER,SECOND BY COUNCILMEMBER
GARCIA,CARRIED 4-0-1-0(MAYORFERRE WAS ABSENT),to accept the July
11, 2005 Minutes of the Crime Prevention Committee.
Council Minutes
September 8,2005
Page 7
COUNCIL REPORTS
Councilmember Miller,stated that he has heard complaints along the entry ways to the City
and that they need to be picked up and maintained. He stated that he is noticing graffiti in
different areas throughout Grand Terrace and feels that we need to be on top of it. He
questioned when political signs can be posted.
City Manager Schwab, responded that signs are allowed to be posted 30 days prior to the
election. Staff sent out notices to all of the candidates for Colton School Board informing
them on our rules regarding political signs. Any signs placed in the public right of way will
be removed and returned.to the candidate.
Councilmember Miller, reported that the Chamber Golf Tournament was a great success.
The Chamber made approximately $12,000.00. He thanked all of the sponsors and
volunteers that helped.
Councilmember Hilkev,questioned how current the City's emergency response is. He would
like to look at it and possibly change it. He requested that staff change the title of"ORAL
REPORTS". He questioned what the status is of the signal at Barton and Grand Terrace
Road and the synchronize.
Jerry Glander. Building; & Safety Director,,responded that plans have been submitted for
checking at the traffic engineers office and are expecting them back shortly. They will then
go back to the engineers that prepared the plans an then proceed to the next step.
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Councilmember Hilkev, questioned if there is a time frame.
Building&Safety Director Glander,responded that it was scheduled to be installed toward
the end of this year.
Councilmember Hilkev, requested that he check into a more specific date. He stated that
Honeywell promised a report on the filter changes and requested that staff look into it.
Assistant Ci1y Manager Berry, stated that staff has requested the report.
Councilmember Garcia, questioned if the current SSS Officer gets involved at the schools
with regards to graffiti.
Lt.Hector Guerra,stated that the assignments of the SSS Officer has been refocused to allow
for the deputies to be freed up. They have brought in the Clean Sweep Program which has
regular meetings with the school officials and students. They are doing the best that they can
with the level of experience that they have.
Council Minutes
September 8,2005
Page 8
Councilmember Garcia, questioned if there are gangs in Grand Terrace.
Lt. Guerra, responded that he would like to say absolutely not but he would probably be
incorrect if he said so. There is not a formalized street gang movement,however, there are
some associates of gang members in Grand Terrace. The Department formed two gang units
to address the gang problem countywide. There is no need to bring the team into Grand
Terrace.
Councilmember Garcia, stated that when looking at the Street Cut Ordinance we need to
make sure that when a utility company comes in and marks the streets and sidewalks when
they are done it needs to look as if they were. never there. She thanked the Housing
Department for the tour of the Arliss house, they did a great job. She reported that the
Concert in the Park will be held on September 16, 2005 and encouraged everyone to come
out.
Assistant City Manager Berry,gave an overview of the events that will be taking place at the
concert in the park.
Councilmember Garcia,thanked the residents for coming to the meeting and for all of their
comments.
Ma3or Pro Tem Cortes,requested that the Sheriffs Dispatch number be placed in the Blue
Mountain Outlook. She questioned what date the graffiti removal paint day will be held.
Assistant City Manager Berry, responded that they are trying to get a group of people
together and then they will set a date.
Mayor Pro Tern Cortes,thanked the Grand Terrace Partners. She reported that the Chamber
of Commerce Golf Tournament was very successful. She referred to a welcome home sign
that she saw at the top of the hill on Mt. Vernon for US Marine Corporal Sommer Snowden
and welcomed her home.
PUBLIC HEADING
6A. GPA-05-01, SP-05-01, SA-05-15, E-05-16 - a proposal to Develop 120 Units of
Multi-family Senior Housing, a 6,500 Community Senior Center, and a Four Acre
Passive Park
An Ordinance,of the City Council of the City of Grand Terrace Approving SP-05-01
(Blue Mountain Senior Villas Specific Plan)and Environmental Assessment E-05-16
An Ordinance of the City Council of the City of Grand Terrace, State of California,
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Council Minutes
September 8,2005
Page 9
Approving General Plan Amendment Case No GP-05-01 for an Amendment to the
City General Plan - Community Development Element to Add a New Land Use
Designation of Medium High Density Residential
Gary Koontz,Community Development Director,reported that on August 11,2005,
the City Council held a public hearing regarding the proposed Blue Mountain Senior
Villas project. After receiving public testimony,the Council continued the hearing
to September 8, 2005 to address the following issues:
1. Consider alternative designs that incorporated a reduction of the building
height along the south wing from three to two stories. '
2. Consider alternatives to individual air conditioning units for the residences.
3. Consider alternative fencing along the south property line.
4. Consider different landscape treatments along the south property line.
5. Add trash chutes within the building to reduce the walking distance for
residents.
6. Evaluate exterior lighting to reduce glare into the backyards of adjacent
residences along Brentwood Street.
In addition, the Council requested that an informal public meeting be held between
the developer and the local residents to discuss these issues and possible design
alternatives to respond to the concerns of the residents. This meeting was held on
August 25, 2005.
He stated that based on the August 11,2005 public hearing and the informal meeting
of August 25, 2005, the applicant has made certain changes to the project that is
presented tonight.
Mary Silverstein, Corporation for Better Housing, reported that she met with local
residents last week. She was also invited to one of the homes of the residents on
Brentwood. They are presenting both the plan that was presented at the informal
meeting as well as the new plan. She gave an overview of the changes.
John Cotton,Architect,gave an explanation of the air conditioning units that will be
used and the number of units that will be installed. He stated that the units will be
quiet and efficient.
Mary Silverstein, stated that the proposed masonry wall will also create a sound
buffer. She thanked the neighbors for opening their homes and including them in the
process.
Community Development Director Koontz, stated that staff has reviewed the
alternative designs and are comfortable with them. It is staff s recommendation to
Council Minutes
September 8,2005
Page 10
approve an Ordinance to amend the City General Plan as requested under GP-05-01,
and adopt an Ordinance approving the Blue Mountain Villas Specific Plan under SP-
05-01.
Councilmember Hilkey, requested clarification on the changes on option 3.
Mary Silverstein, responded that option 3 has 13 less three story units and 13 more
ground floor units and less parking spaces and parking reconfiguration.
Councilmember Miller, questioned with the change in the configuration of parking
will the fire department have a problem turning the trucks around.
Mary Silverstein, responded that they will not have a problem.
Councilmember Miller, questioned what the grade level will be on the south side.
John Cotton,responded by showing him the grading levels and heights on a diagram.
Councilmember Miller,questioned what rating will be on the air conditioners on the
south'side.
John Cotton, responded that he doesn't have the decibel level of the units.
Mary Silverstein, stated that the units are very small and the sound emitted will be
much less than an air conditioner on a two story house.
Councilmember Miller,questioned if Grand Terrace Road will be marked for parking
along the fence line where the park is going to be or will it be no parking.
Community Development Director Koontz, stated that they haven't considered that
at this point, however, if Council would like to make it no parking zone along that
is an action that Council can take. Currently the road allows for parking on both
sides.
Manor Pro Tem Cortes, questioned if the revised option was discussed with the
residents on Brentwood.
Mary Silverstein, responded in the affirmative.
Councilmember Garcia, questioned if there will be adequate parking for a major
event at the park.
Community Development Director Koontz,stated that number of events that will be
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Council Minutes
September 8,2005
Page 11
held at this park will be low.
Councilmember Garcia, confirmed that there will be adequate lighting for safety
issues. She questioned where the monument sign and flag pole will be located.
Community Development Director, stated that the monument sign will probably be
placed somewhere in the front at the entrance and the flag pole will be located in the
veteran's area.
Councilmember Hilkey,stated that the lighting on the south side should be different
than the lights on the east side.
Mary Silverstein, concurred.
Mayor Ferr6 opened discussion to the public.
Robert Stewart, 11677 Mt. Vernon, questioned if there are two bedroom units.
Mary Silverstein, responded that there are 17.
Robert Stewart, expressed his concern with the number of parking spaces.
Dan & Barbara Berliner, 22624 Brentwood, thanked Mary Silverstein. Their
experience was very positive. There was a lot of interaction and discussion and they
agree that the two story re-alignment is much better. He stated that they are still
basically against the project because they are losing their view from downstairs,
however, they feel the process has been positive.
Charles Hornsby,22656 Brentwood,stated that he is opposed to the project. He feels
that the project has been mishandled from the start and referred to the General Plan.
He requested that the Council send the project back to the Planning Commission
because he feels that the citizens were not given time or advance notice so that they
could speak to the Planning Commission. He feels that the City is being deceptive.
He feels that the Council needs to be truthful to the residents with regards to the
proj ect.
Patricia Farley, 12513 Michigan Street, feels that the City has not presented to the
public and got public input and approval on a general zoning ordinance. She feels
that the City needs to get rid of the Redevelopment Agency because it is causing
problems. She feels that staff is misleading the residents and that the Council does
not have the right to pass the project.
Barney Karg_er, 11668 Bernardo Way, feels that the City is not following their own
Council Minutes
September 8,2005
Page 12
rules.
Vicki Doyle, 12035 Westwood Lane, thanked the Council for the opportunity to
speak. Stated that the citizens feel that they have no voice. She stated that there are
many for sale signs on Brentwood. She stated that most of the employees don't live
in Grand Terrace or in San Bernardino County. They made the choice to live in
Grand Terrace because it is one of the small bedroom communities left. She was told
that the landmark school will not be left in 5 years. She feels that the re-zoning and
building is getting out of hand and that the location does not seem feasible. She
questioned what happened to the senior complex on Barton Road. She questioned
how the seniors will walk to the stores,bank, or restaurants. She questioned if they
have been on Grand Terrace Road when school is starting or letting out and feels that
it is not a safe place for seniors to walk. She questioned of they see how this process
is splitting the community. She questioned if this project is supporting the seniors
of Grand Terrace. She feels that residents need honesty and support. She requested
that the City post procedures for the citizens so they have a choice.
Phyllis Purcell, 6038 Riverside Avenue, stated that she was a former California
Senior Legislator that wrote proposals for the legislature. She was especially
interested in housing. There is a wave of seniors that are on fixed incomes and need
affordable housing.
Gwenn Karger, 11668 Bernardo Way,stated that she is opposed to the re-zoning for
the proj ect. She questioned how the property owners in Grand Terrace benefit from
Redevelopment money. She feels that residents pay taxes yet can't be heard as to
what can and can't be passed. She feels that low income housing lowers property
values. She questioned why the Council has dismissed the original plan to place the
senior housing project on Barton Road. She questioned how the Council would feel
if this project were being built in their neighborhood.
Tony Petta, 11875 Eton Drive, stated that he is a senior citizen and that when it is
time to downsize the Blue Mountain Senior Villas is where he will choose to live.
He supports this project.
Kim Hathaway, 22988 Vista Grande Way, expressed her concern with the senior
housing project. She would like to see responsible planning. She questioned why
the city is not looking at local developers. She feels that if the project was going to
impact the properties of the Council it would be a different story. She sympathizes
with the residents on Brentwood. She feels that there is a harmonious way for this
to be taken care of a way to work this out where the majority will benefit from the
project not the select few.
Mike Houge,22594 Brentwood,questioned if anyone has contacted the utilities with
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Council Minutes
September 8,2005
Page 13
regards to the overhead utilities. He would like to see the small section
undergrounded. He feels that it would reduce Edisons' need to access the area. He
feels that it would make for a better overall project. He is trying to find out
information on funding.
Cynthia Bidney, 12219 Pascal,asked the following questions: Why weren't the new
plan changes made available for the public to see prior to the meeting and questioned
why the project doesn't have to go back to the Planning Commission.
Evan Dahlke, 22586 Brentwood, thanked Council members and the Mayor for
continuing this item from last month. The continuation allowed the residents to sit
down with the developer and discuss all of the issues. He feels that the last option
is the best. He thanked the developer for their patience. He feels that the Brentwood
residents did have an opportunity to voice their opinions and that a lot of their
concerns have been addressed. He feels that this is a great community and it would
be great to welcome seniors to the community. He stated that he is in support of the
proj ect.
Raynell English, 22600 Brentwood Street, stated that her air conditioner and pool
equipment are loud and she doesn't feel that the units on the housing project will be
a problem. She spends a lot of money each year getting weeds out of her pool from
the vacant lot and is glad that there will be a park there. If the senior housing project
does not go through that property will be sold and they will be developed into
something that they will not like. She feels that this is the best of all evils. She gave
an explanation for all of the for sale signs in her neighborhood. She feels that Mary
Silverstein was very helpful. She is in support of the project and encouraged the
Council to for in favor of the project.
JoAnn Johnson, 12723 Mt.Vernon, stated that she sympathizes with those that live
on Brentwood that are opposed to the project and even with those that are objecting
for general reasons, however, she knows for a fact that this is a very much needed
project. She stated that this was not a concept of the seniors,they came to them. She
feels that it is a marvelous project and that the seniors will benefit from it.
Jeffrey McConnell, 21758 Walnut, questioned if a recycling program can be
implemented. He thanked everyone for their comments. He thanked the Council and
the Developers for listening.
_Mayor Ferr6 closed the public hearing and returned discussion to the Council.
City Manager Schwab, responded to the questions that were asked. He stated that
there was an apartment project that was proposed on De Berry. The neighbors from
Reed and La Paix area basically protested the project even though it was quite nice
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Council Minutes
September 8,2005
Page 14
and it was denied. It did go back to the Planning Commission later as a
condominium complex which was approved. He stated that the Senior Housing
Project went to the Planning Commission initially on August 4, 2005. It was
properly noticed according to the law. He attended that meeting and many of the
people spoke this evening also spoke at the Planning Commission meeting as well
as the Council Meeting that was held on August 11, 2005.
Councilmember Garcia, questioned why the plan to place this type of project on
Barton Road was dismissed.
Ci , Manager.Schwab, responded that there was an initial thought to build senior
housing on Barton Road because the lots were deep and they talked about building
the Senior Housing in the back and building a shopping center on the front portion
of the property. The landowner wants to use the entire portion of the property. When
the Webster parcel became available, being right next to the senior, it was key to
making this project possible at that location as well as having a way to leverage
housing money into a new senior center and park.
Councilmember Garcia,stated that when it was brought before the seniors they were
very supportive of the project and the proposed area.
Cily Manager Schwab, stated that the seniors were positive about the project when
they were told about it.
Councilmember Garcia, stated that redevelopment is very confusing and requested
that City Manager Schwab answer how property owners benefit from redevelopment
funds.
City Manager Schwab,stated that redevelopment is simply a financing tool. He feels
that in the 25 years that Grand Terrace has been a City redevelopment has been a key
to providing a financial base for the Community.-The entire Cityhas been designated
as a Redevelopment area,which allowed the City to freeze the entire tax base at that
point and any incremental tax growth after that point went to the Redevelopment
Agency and by-passed other taxing agencies that would have gotten those taxes
otherwise. It creates a situation where we are getting revenue that is coming to the
City of Grand Terrace that would have gone to the County,the School District,Flood
Control and other areas where we would not benefit from that money. Many of the
things that this community has, were made possible by Redevelopment funds; air
conditioners were installed at all the schools in the community,the pool at the Junior
High School was re-done,the Fire Station was built,the Civic Center was built,the
center where Food Connection and the Child Care is also a redevelopment project,
the recent renovation of Richard Rollins Park as well as Pico Park, road projects,
construction projects,etc. The money for this project is 20%of the funds bylaw the
Council Minutes
September 8,2005
Page 15
Redevelopment Agency must use from tax increment for low and moderate income
projects. To this date we have used the funds for single family rehabs, which
included single family loans for roofs, fences, and so forth. The City has
rehabilitated 44 homes. The City has not yet done a senior housing project this is
utilizing about 8.4 million of the housing money. This will use up a bulkk of housing
money that is in the bank and also several years of housing money that will be
available in the future. That is the only reason that we are able to fund this project.
If this money is not used,there is a section in the Redevelopment Law that says if you
do not use this money within 5 years of receipt of the funds to do a housing project
you will lose it to the County.
Councilmember Garcia,stated that we have limited land and she always tries to think
of what is the best use of the land when making decision. She questioned if Grand
Terrace seniors will have first choice for the villas.
City Manager Schwab, stated that the marketing study says that before this project
will be built it will 100 %leased.
Councilmember Garcia, questioned if they will primarily be from Grand Terrace.
Ci1y Manager Schwab, responded that he can't guarantee that it will be primarily
Grand Terrace residents. They will allow for a period of time,preference to Grand
Terrace residents,then friends and family of residents. After that point they will have
to be qualified seniors that meet the income requirements.
Councilmember Garcia, questioned if there is any way to do the undergrounding of
the utilities.
City Manager Schwab, stated that it is a good suggestion and that staff will contact
Edison and see if it is feasible.
Councilmember Garcia, stated that she feels that this project will compliment the
neighborhood. She can't think of a better use of the property.
Councilmember Miller, questioned if there was ever a plan done that didn't include
a park that was all at ground level.
City Manager Schwab,responded that they never had a proposal that didn't include
a park. There was a proposal of a 2 story project.
Councilmember Miller, he feels that the park is not going to be used by other
members of the community. He feels as though it will be used by the seniors that
live there and the families that come and visit. He feels that it is great to have a park,
Council Minutes
September 8,2005
Page 16
but he also feels it wouldn't be bad if they were to spread the center out and make it
a single story building and make it smaller. He doesn't see people from the
community driving to park.
Mayor Pro Tem Cortes,stated that it is a passive park and questioned if there can be
barbeque pits at passive parks. She suggested giving Grand Terrace residents longer
than 60 days to have an opportunity to get into the villas.
i
Ci1y Manager Schwab,stated that the park was never thought of to be anything more
than a passive park. If it were going to be something other than a passive park we
would have to add some amenities.
Community Development Director Koontz, stated that there have been some
discussion about the General Plan and there is a section in the General Plan called the
Open Space Element that identifies the need for park land. This site is identified for
one of the areas for a park. If we don't build a park there will have to find another
piece of land to replace that acreage.
Councilmember Hilkev, clarified that Grand Terrace will retain ownership of the
property.
City Manager Schwab,responded in the affirmative.
Councilmember Hilkev, clarified that we are still looking at 120 units. 120 units
makes sense financially it is a mathematical number. He understands that there is no
change to the type of air conditioning units. He questioned how many legal pieces
of property there are.
City Manager Schwab,responded that are two. One piece of property is two acres
and one piece of property is approximately four acres.
Councilmember Hilkev, stated that we are putting 120 units on 2 acres.
City Manager Schwab,stated that it actually straddles the property line and the senior
center will sit on the same property that it is on now.
Councilmember Hilkev,questioned if there is any interest in making it one lot instead
of two.
City Manager Schwab,responded that it will more than likely be a legal requirement
to merge the two.lots.
Councilmember Hilkev,he feels that the proposed location is a better location than
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Council Minutes
September 8,2005
Page 17
on Barton Road. He questioned what the existing parking capacity at the Senior
Center.
Community Development Director Koontz, responded that it is around 60. The
parking lot was originally laid out to have a child care center next to it.
Councilmember Hilkey, questioned if there is a chance of a problem having the
Senior Center sharing a parking-lot.
Community Development Director Koontz,responded that they don't envision one.
He said the need to take into consideration that some of the seniors that use the center
will live in the villas.
Councilmember Hilkey, questioned if garages and storage units are required under
the current code for apartments in Grand Terrace.
Community Development Director Koontz,responded in the affirmative.
Councilmember Hilkey, questioned why it is not being applied to ourselves.
Community Development Director Koontz, stated that through the specific plan
process they have the ability to adjust any requirement under the zone. There are
storage units in this plan.
Councilmember Hilkey,stated that he has come concerns about the access of the park
and questioned if there was some way of addressing that issue.
Community Development Director Koontz,stated that a gate can be placed on Grand
Terrace Road so there is direct access from the sidewalk.
Councilmember Hilkey, stated that he is hearing that the problem that people are
having are not necessarily with the project but with the process. He stated that the
current process of not being able to respond to questions is not a function of the
entire Council. He feels that people need immediate response. He stated that this is
the third public meeting that he has attended on this project and there was a Planning"
Commission Meeting before that and feels that it is a bit disconcerting to hear people
saying that they have just heard about this project. He feels that the Developer has
done all of their PR work and has worked with the community.
Mayor Ferr6, stated that the rule that she uses to run the meetings is not her rule, it
is the law and it is at the advice of the City Attorney.
Colin Burns,City Attorney,stated that it is completely appropriate under the Brown
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Council Minutes
September 8,2005
Page 18
Act to limit Public Comment to three minutes and the Mayor is acting appropriately.
CC-2005-94 MOTION BY MAYOR FERRE, SECOND BY COUNCILMEMBER GARCIA,
CARRIED 5-0, to waive the full reading of the Ordinances with the provision that
j the full Ordinances are available for review following the meeting.
CC-2005-95 MOTION BY MAYOR PRO TEM CORTES, SECOND BY COUNCILMEMBER
HILKEY, CARRIED 5-0,to approve Environmental Assessment E-05-16, General
Plan Amendment GPA-05-01, and Specific Plan SP-05-01 as recommended by the
Planning Commission and to approve the latest design change dated September 8,
2005.
UNFINISHED BUSINESS -None
NEW BUSINESS -None
CLOSED SESSION-None
Mayor Pro Tem Cortes adjourned the meeting at 9:42 p.m.until the next CRA/City Council Meeting
which is scheduled to be held on Thursday, September 22, 2005 at 6:00 p.m.
CITY CLERK of the City of Grand Terrace
MAYOR of the City of Grand Terrace
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CITY OF GRAND TECE "ECEIVED
EMERGENCY OPERATIONSSCCOMMITTEE
Regular Meeting
MINUTES 0 7 2005
August 2, 2005 CITY OF GRAND TERRACE
CITY CLERK'S DEPARTMENT
The Grand Terrace Emergency Operations Committee met at the regular time at the Special Place,
Fire Station 23. The meeting was called to order by Chairperson Vic Pfennighausen at 6:00 p.m.
Agendas were distributed.
MEMBERS PRESENT—JoAnn Johnson, Vic Pfennighausen and Glenn Nichols.
MEMBERS ABSENT—Rich Haubert and Dottie Raborn.
CITY STAFF—Assistant City Manager, Steve Berry.
GUESTS PRESENT/INTRODUCTIONS—Host, Captain Bob Campbell
APPROVAL OF AGENDA with motion by Glen Nichols and second by JoAnn Johnson.
APPROVAL OF MINUTES OF JULY 5,2005 as written. Motion by Steve Berry and second by
Glenn Nichols.
LIAISON REPORT by Steve Berry
a. Be sure to check all phone lines, including those in Community Room.
b. Vic had reported two of the Emergency phones were not working. Follow up and check.
c. Containers will be moved to Senior Center parking lot on Thursday.
d. Vic has found portable generators and they are chained up.
e. Steve will be going to OES training in Ontario for a 3 hour class at the end of the month.
f. Mike Mullins will be out at least six weeks with detached retina surgery.
g. Vic requested anyone who could work with us on Monday afternoons. Possibly Dragos.
h. Drug store is still a go. Will still be Save On.
i. Volunteer Picnic date set for October 1" at Senior Center.
EQUIPMENT AND FACILITIES REPORT by Vic Pfennighausen
a. Leak in roof of trailer needs to be repaired. Vic will work on it in the fall.
b. Newly purchased pumps will remain in EOC building for time being.
c. Would like the garage back when possible for our storage needs.
d. All radios are working well.
e. Steve reports that it will be about 2 months to complete the yard work.
UNFINISHED BUSINESS
a. Haven't purchased yellow tape yet.
b. Would still like to get kitchen floor fixed.
c. Need to look up vests and other items on web site.
d. Steve has license and will give password to site for OES. JoAnn pursue.
NEW BUSINESS—Nothing new.
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TRAINING/SPEAKERS
a. Tour of Station 23.
b. Volunteer firemen receive dispatch calls at the same time as the station.
c. From where ever they are, they then go immediately to the station.
d. Station 23 does not have paramedics yet, but hopes to in the future.
e. Station 23 has one Rescue vehicle which can be used for swift water and other rescues.
f. Also, has a structure unit that has all equipment for structure fires and life support.
g. Is capable of using some foam.
h. May possibly be changing radio frequencies if Nextel buys out the 800 system.
ADJOURNMENT at 6:50 p.m.
Respectfully,silbmi t"d�
` JoA hnson, Secretary f
NEXT MEETING WILL BE TUESDAY, SEPTEMBER 6, 2005 AT 6 P.M.
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COMMITTEE REQUEST FOR
CITY COUNCIL ACTION
COUNCIL MEETING DATE SEPTEMBER 22, 2005 DATE SEPT. 7, 2005
PROBLEM:
The Emergency Operations Committee has vacancy's that need to be filled.
ALTERNATIVES:
SOLUTION(S):
Accept the application of Debra Hurst to be a regular member.
PROPOSED ACTION TO BE TAKEN BY COUNCIL AND/OR STAFF:
Accept the application of Debra Hurst.
ITEM N0.11%V)
9
�ITy
o CITY OF GRAND TERRAC H� ��
�sF AMD WRR c APPLICATION FOR CITIZEN SERVIR# ® BOO
CITY OF GRAND TERRACE
CLERK'S D"'AR i MEN z
Oomplete and submit to the City Clerk's Department
APP Y 1 ing as a me er of
Name
i
Address c2 9 k:S-
Home Phone -7l i�'� Business Phone
Occupation
Education (List highest year completed and all degrees) I�
Are there any workday evenings you could not meet? ( ) Yes ) No If so, please list
-4C),
Why are you interested in this appointment?
What do you consider to be your major qualifications?
Referenc s
2.
3.1
1
Please attach a written statement containing any additional information you feel would be useful to the City
Council.
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CITE' OF GRAND TERRACE ECEIVED
CRIME PREVENTION COMMITTEE
Regular Meeting SEP 14 2005
MINUTES CITY OF GRAND TERRACE
August 8,2005 CITY CLERKS DEPARTMEMT
The Grand Terrace Crime Prevention Committee met for the regular meeting at the Senior Center.
Meeting was called to order at 6:09 p.m. by Chairperson, Philomene Spisak.
MEMBERS PERSENT were Chairperson, Philomene Spisak, JoAnn Johnson, Dottie Raborn,
Richard Rollins, Don Bennett, Lew Neeb and Pat Smith.
MEMBERS ABSENT— None.
CITY STAFF/SHERIFF'S DEPT. SSS, Beth Powell
GUESTS PRESENT—Robert Stewart
INTRODUCTIONS - None needed.
AGENDA was approved with motion by Lew Neeb and second by Pat Smith.
MINUTES for the meeting of July 11, 2005 were approved with motion by Dottie Raborn and
second by Lew Neeb.
PUBLIC COMMENT—None
CORRESPONDENCE -None
UNFINISHED BUSINESS
A. Swindles
a. Emphasize reports from last month re e-mail scams.
b. Be very careful when buying on eBay.
c. Do not use same password on different accounts or memberships.
B. Parking at Grand Royal Mobile Home Park
a. Request for red curbs at Grand Royal will be heard at Council on August 11 th.
b. Philomene met with Steve at Grand Royal to survey the situation first hand.
c. Shelter will also be built for bus stop.
C. Grand Terrace Days
a. Nothing yet for 2006.
NEW BUSINESS
A. Crime Prevention Planning
a. Next months article in Blue Mountain will be on Neighborhood Watch.
b. Crime Free Multi Housing is doing well.
B. Action Items
a. See item above re red curbs. y�
0L-K OUL AQ-17��DA MOW, P00. ��YZA
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REPORTS
A. Summary of Law Enforcement Activity—Beth Powell, SSS
a. A total of 34 Cites were made last week. Also, 10 Warrant Arrests.
b. Warned not to leave anything visible in your car.
c. Be careful of leaving windows "cracked"in the hot weather.
d. There were some attempts to cash stolen business checks.
e. There have been some other stolen checks and attempts to rewrite them.
f. Waiting to hear from prospects to do Neighborhood Watch.
g. Grand Terrace's regular noise ordinance is for 10 pm to 7 am.
h. However, loud noises can be reported at any other time.
B. Citizen Patrol Report—Bob Stewart
a. Hours for July, 147 hours. For the year to date, 1424.
b. New member Dani Bubier graduated last week and will be introduced at Council.
c. She has lived in Grand Terrace 24 years and is now learning the streets.
d. Good reports on getting vehicles off the streets.
C. Other Community Programs - None
D. Member Reports
a. Richard reported that he had put up signs in the restrooms at the parks stating
that children should be supervised when using the rest rooms.
b. Suggested that signs that children need supervision are also needed at picnic
shelter area.
c. Cameras in the park are on from 11 pm until 6 am.
d. There are at least 8 pedophiles living in Grand Terrace.
e. Beth suggested using Megan's law to find those in our area.
ADJOURNMENT-There being no further business to discuss, the meeting was adjourned at 6:58
p.m.
Respectfully Submitted,
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Secretary Ann Johnson
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COMMITTEE REQUEST FOR
CITY COUNCIL ACTION
COUNCIL MEETING DATE: September 22, 2005
COMMISSION/COMMITTEE: CRIME PREVENTION
DATE: 14 SEPT 2005
SUBJECT THE CALIFORNIA SEXUAL PREDATOR PUNISHMENT AND CONTROL
ACT
STATEMENT
IN THE CONTINUED EFFORT TO KEEP OUR COMMUNITY SAFE FOR OUR
CITIZENS THE CRIME PREVENTION COMMITTEE IS RECOMMENDING THAT
GRAND TERRACE SUPPORT THE "CALIFORNIA SEXUAL PREDATOR
PUNISHMENT AND CONTROL ACT"
BACKGROUND INFORMATION:
1. IN AN EFFORT TO BETTER PROTECT CHILDREN AND CITIZENS FROM
SEXUAL PREDATORS, THE SEXUAL PREDATOR PUNISHMENT AND CONTROL
ACT ("JESSICA'S LAW") HAS BEEN INTRODUCED AS TWO BILLS IN THE
CALIFORNIA STATE LEGISLATURE. THIS LEGISLATION IS CO-SPONSORED BY
STATE SENATOR GEORGE RUNNER AND ASSEMBLYWOMAN SHARON
RUNNER.
2. CALIFORNIA'S JESSICA'S LAW, AS PROPOSED, IS THE COMBINATION OF
SB 588 (G. RUNNER) AND AB 231 (S. RUNNER). BOTH BILLS HAVE BEEN
INTRODUCED IN EACH HOUSE OF THE STATE LEGISLATURE CONCURRENTLY.
JESSICA'S LAW WOULD OFFER SEVERAL NEW AND STRENGTHENED
PROVISIONS TO STATE LAW INCLUDING GPS TRACKING OF PAROLED SEX
OFFENDERS FOR LIFE, NEW PREDATOR-FREE ZONES FOR SCHOOLS AND
PARKS, AND A STIFFENED "SEXUALLY VIOLENT PREDATOR" PROVISION FOR
VIOLENT FIRST-TIME OFFENDERS. ALSO, JESSICA'S LAW WOULD INCREASE
PENALTIES FOR THESE OFFENSES, INCREASE PAROLE TERMS, AND ADD NEW
PUNISHABLE OFFENSES FOR SEX OFFENDERS TO LAW.
OUNCIL AGEMDA ISM NO:�, �rJ
PROPOSED ACTION TO BE TAKEN BY COUNCIL AND OR STAFF
1. THE CRIME PREVENTION COMMITTEE RECOMMENDSIHAT THE COUNCIL
ADOPT AND SUPPORT THE CALIFORNIA SEXUAL PREDATOR PUNISHMENT
AND CONTROL ACT.
2. WE FURTHER RECOMMEND THAT A LETTER OF SUPPORT FOR THIS ACT
ON BEHALF OF THE CITY OF GRAND TERRACE BE PREPARED AND
FORWARDED TO:
STATE SENATOR ROBERT DUTTON 31ST DISTRICT
ASSEMBLY MEMBER BILL EMMERSON 63RD DISTRICT
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RECEIVED
Historical&Cultural Activities Committee SEP 12 2005
Minutes for July 11, 2005
CITY OF GRAND TERRACE
CITY 0:L.FERM DEPARTMENT
The meeting was called to order at 7:00 p.m.by Ann Petta.Those present were Ann,Brenda Stanfill,
Shelly Rosenkild, Colleen Edmundson, Masako Gifford and Gloria Ybarra.
Secretary's Report: The Minutes for June 6`h were read and approved on a motion by Colleen,
seconded by Shelly. Motion carried.
Treasurer's Report: The budget shows a balance of$1,200. Colleen reminded us that the city
requested that when an expense receipt is submitted,it must be the original receipt. The city auditors
will not accept a copy. The Petty Cash balance is $108.76
Historical Report: Ann turned in photos of quilts that were on display at the 2004 Country Fair.
Shelly stated she will put them in her book.
CountryFair:As was discussed at our June meeting,the CountryFairwill be on Saturday,November
5'. Shelly noted that the information regarding the Fair will be on the cable ad. The August issue
of the Blue Mountain Outlook and City Hall will have the applications for the Fair. Shelly presented
a copy of the ad for our committee's review. Discussion followed. The committee decided that
participants may not sell food other than produce. Included in the ad will be that applications must
be returned and approved by our committee in advance and that applications should be turned in by
October 1, 2005.
The committee discussed the materials for the billboards. No decision was made at this time.
Colleen noted that she will tend to getting the posters out for the Fair by the middle of'October.
The meeting was adjourned at 7:45 p.m. There is no August meeting. Next meeting will be
September 12, 2005.
Respectfully Submitted,
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Gloria Ybarra
Secretary
{ C'' -rE LL AGENDA ETEM No.jn`q c,c
RAND TER C C.ommunity. Services Department
Staff Report
CRA ITEM O COUNCIL ITEM O (X)MEETING DATE: September 22, 2005
SUBJECT: STREET CUT POLICY AND ORDINANCE
FUNDING REQUIRED: () NO FUNDING REQUIRED (X)
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-RECOMMENDATION: CONTINUING THE PUBLIC HEARING UNTIL THE-
OCTOBER 27, 2005 CITY COUNCIL MEETING
The Inter Utility Coordinating Council has requested another meeting with the City
Manager to be held on September 22, 2005 to-discuss further review of the proposed
Street Cut Policy and Ordinance.
BACKGROUND
The City of Grand Terrace established'its current guideline for"Specifications for
Construction Within Public Right-of-Way"under the 1990 State of California manual of
Traffic Controls.
This guideline established by the city engineer(GTMC 12.08.220) dictates how
contractors/utility companies cut into our public right-of-ways (e.g. streets_and sidewalks)
by trenching, removing pavement and asphalt, and restoring existing improvements.
Staff has been working since the fall of 2004 to develop a more comprehensive street cut
policy that helps maintain the integrity of our roads and balances the interests of the
public utilities.
RECOMMENDATION:
COUNCIL TO CONTINUE"THE PUBLIC HEARING ON.THE PROPOSED STREET
CUT POLICY AND ORDINANCE UNTIL OCTOBER 27, 2005.
ORDINANCE NO
AN ORDINANCE OF THE CITY COUNCIL OF THE 'CITY OF. GRAND.TERRACE
APPROVING SP-05-01 (BLUE MOUNTAIN SENIOR VILLAS SPECIFIC PLAN) AND
ENVIRONMENTAL ASSESSMENT E-05-16
WfffiREAS, the property covered by the Blue Mountain Senior Villas Specific Plan is owned by
the City of Grand Terrace; and
WHEREAS, the project site is the location of the existing community senior center. and master
planned Petta Park; and
WHEREAS, the City's General Plan requires the preparation of a Specific Plan for all multi-
family projects of 20 or more units;
WHEREAS, the Blue Mountain 'Senior Villas Specific Plan land uses are consistent with those
identified in the City General Plan for Medium High Density Residential uses; and
WHEREAS, development of the Blue Mountain Senior Villas Specific Plan will result 'in high
quality and affordable senior housing for City residents;and
WHEREAS, development of the Blue Mountain Senior Villas Specific Plan will'result in the
Provision of a new community senior center and new recreational•opportunities through the construction
of a new park for City residents; and
WHEREAS, the Blue Mountain Senior Villas Specific Plan, as presented in Exhibit A, is
consistent with the General Plan of the City of Grand Terrace; and
WHEREAS, in accordance with the provisions of the,Calif6mia Environmental Quality Act, a
Mitigated Negative Declaration and Mitigation Monitoring Program have been prepared under E-05-16,
for this proposal with the Environmental Assessment(Exhibit B)having been considered by the Planriing
Commission and the City Council; and
WHEREAS, the Planning Commission held a properly noticed public hearings on'August 4,
2005; and
WHEREAS,, the Planning Commission following its public hearing. on August 4, 2005
recommended that the City Council approve the Blue MountainSenior Vilas Specific Plan under SP-05-
01 and associated Mitigated Negative Declaration under E-05-16, set out in full in,the attached Exhibits A
and B; and
WHEREAS, the City Council held a properly noticed public hearing on 2005-for SP-
05-01 and E-05-16.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1: The proposed Blue Mountain Senior Villas Specific Plan (SP-05-01) set
out in full in Exhibit A is hereby approved and adopted by the City
Council.
Section 2: The Mitigated Negative Declaration on file in the Community
Development Department of the City of Grand Terrace (E-05-16) is
UC V•l it:"EL Win'•=� ..'•'��sa�'�• gTE✓�s7 b + ea �`�
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hereby approved as Exhibit B.
. ; Y PP -
Section 3: Effective Date: This Ordinance shall be in full force and effect at 12:01
a.m. on the.31"day of its adoption.
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j Section 4: Posting: The City Clerk•shall cause this Ordinance to be posted in three
(3) public places with fifteen (15) days of its adoption, as designated for
such purpose by the City Council.
Section 5. First read at a regular meeting of the City Council of said City held on
the - day of , 2005 and finally adopted and ordered posted at
a regular meeting of said City Council on the of , 2005. .
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I - ATTEST:
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City Clerk of the City of Grand Mayor of the City of Grand Terrace
Terrace and of the City Council and of the City Council thereof
h I, BRENDA STANFILL, City Clerk of the City of Grand Terrace, California, do hereby certify
that the foregoing Ordinance was introduced and adopted at a regular meeting of the City Council of the
City of Grand Terrace held on the by the following,vote:
AYES:
NOES:
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ABSENT:
ABSTAIN:
1 Brenda Stanfill,
City Clerk
1 Approved as to form:
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j John Harper,
j City Attorney
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,
STATE OF CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT CASE NO
GP-05-01 FOR AN AMENDMENT TO THE CITY GENERAL PLAN- COMMUNITY
DEVELOPMENT ELEMENT TO ADD A NEW LAND USE DESIGNATION OF
MEDIUM HIGH DENSITY RESIDENTIAL.
WHEREAS,.the applicant has applied for a General Plan Amendment to allow for
a Medium High Density Residential designation with a density of up to 20 units per acre
for senior citizen to be considered.by the City Council of the City of Grand Terrace: and
WHEREAS, the applicant-has additionally applied for the approval of. SP-05-01,
SA-05-14, and E-05-16 to construct a 120 unit senior-oriented multi-family residential
project -with an overall density of 20 units per acre on -approximately six acres of
property located south of Grand Terrace Road approximately 200 feet east of Mt.
Vernon Avenue (Assessor's Parcel Numbers 0276-461-09 and 14); and
WHEREAS, a properly noticed public hearing was held by the Planning
Commission on Thursday, August 4, 2005; and
WHEREAS, a properly noticed public hearing-was held by the City Council on
Thursday, August 11, 2005 and September 8, 2005; and
`1 WHEREAS, under the California Environmental Quality Act (CEQA) Guidelines,
Article 6, Section -15070, the proposed project qualifies for a Mitigated Negative
Declaration in that all potential environmental impacts of the project may be mitigated to
a level of insignificance. The environmental assessment of this project was completed
under Environmental Review Case No.-E-05-16.
NOW, THEREFORE, THE CITY,COUNCIL OF THE CITY OF GRAND
TERRACE, STATE OF CALIFORNIA,.DOES HEREBY ORDAIN AS FOLLOWS:
1. The City General Plan Community Development Element shall be
amended to incorporate the new land use designation proposed Medium
High Density Residential as described in Exhibit A.
2: The City General Plan' Land Use Map shall be amended to identify
property proposed for development under -SP-05-01 as Medium High
Density Residential.
3. General Plan Amendment is consistent with the current policies of the
California Department of Housing regarding the provision of low/moderate
senior housing.
4. The new Medium High Density Residential designation will provide a
means to comply with State housing policies.
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5. The new Medium High Density residential designation will assist in
meeting the housing needs of the residents of Grand Terrace.
6. Effective Date: The Ordinance shall be in full force and effect at 12:01
a.m. on the 31st day of its adoption.
E
7. Posting: The City Clerk shall cause this Ordinance to be posted in three
(3) public Places within fifteen,(15) days of its adoption, as designated for
such purpose by the City Council.
8. First read at a regular meeting of the City Council of said City held on
August 11, 2005 and finally adopted and ordered posted at a regular
meeting of said City Council on September 22,-2005.
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Mayor of the City of Grand
Terrace
Attest:
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City Clerk
I, Brenda Stanfill, City Clerk of the City of Grand Terrace, California, do hereby certify
that the foregoing Ordinance was introduced and adopted at a regular meeting of the City
Council of the City of Grand Terrace held on September 22, 2005 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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City Clerk
Approved as to form:
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City Attorney
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STAFF REPORT
CRA ITEM () COUNCIL ITEM(X) MEETING DATE: September 22, 2005
SUBJECT: APPROVE AUGUST 25,2005 COUNCIL- MINUTES AND RE-VOTE ON.. .
VOUCHER#56055 IN THE AMOUNT OF$890,674.00.
At the September 8,2005 City Council Meeting,Councilman Miller indicated that he had intended
on abstaining from the-vote on Voucher#56055 for the purchase of 21992 De Berry Street in the
amount of$890,674.00 that was on the Check Register dated August 25, 2005'and would like-the
minutes to reflect that. Subsequently, Council'tabled the August 25, 2005 Council Minutes.
Since the August 25, 2005 Minutes actually reflect the action taken at that time, staff-has re-
agendized those minutes for Councils consideration as well as a re-vote on Voucher-#56055 in the
amount of$890,674.00 for the purchase of 21992 De Berry Street;,Council's action on the re-vote
will be recorded in the minutes of September 22, 2005.
Staff Recommends Council:
STAFF RECOMMENDS THAT COUNCIL APPROVE THE AUGUST 25, 2005 COUNCIL
MINUTES AND RE-VOTE ON VOUCHER#56055 IN THE AMOUNT OF $890,674.00.
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CSC TNf,CCL A NDA @ T EM E'v C/
'IF r�a't L—!i)�l(
CITY OF GRAND TERRACE OUd1Ur*"Ot1 APU E--.O-i:'a
CITY COUNCIL MINUTES
REGULAR MEETING-AUGUST 25, 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 August
25, 2005, at 6:00 p.m.
PRESENT: Maryetta Ferr6, Mayor
Bea Cortes, Mayor Pro Tern
Herman Hilkey, 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 Glander,Building& Safety Director
Gary Koontz, Community Development Director
John Harper, City Attorney
ABSENT: Lt. Hector Guerra, Sheriffs Department
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 Lee Ann Garcia.
ITEMS TO DELETE -None
SPECIAL PRESENTATIONS
2A. Robert J. Nava, Esq., Assistant Vice Chancellor`, UCR-Update of UC Riverside
Robert J.Nava,Esq.,gave a brief update on the University on California Riverside and their
goals for the future. He brought regards from the campus and their desire to continue dialog
with Grand Terrace and to build closer relationships between the Grand Terrace community,
University of California Riverside and the Regional community as they build and look to the
future.
Councilmember Garcia,asked Mr.Nava to talk about the Sustainable Development Project.
She feels that it is a good "program and feels that if more developers in the Inland Empire
were to follow the model it would make for a much nicer quality of life for the residents in
the region.
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Council Minutes
August 25,2005
Page 2
Mr. Nava, stated that they have a research center that was established two years ago, the
Edward Blakely Center for Sustainable Suburban Developments. The center is focusing on
growth in the region. They are the only research center in the Country that is focusing on
Suburban issues. The center is in the final negotiations with an incredible director that they
are going to have to lead them. The focus is to bring together all the various stake holders,
the developers,the community members,and the environmentalists to address in aproactive
way the challenges and opportunities as we grow and develop, but to do it in a way that is
planned.
Councilmember Garcia, stated that there will be a new High School in Grand Terrace and
is excited about having a close relationship with the higher educational institutions in the
area.
Councilmember Hilkev, questioned if the law school was ever successful at UCR.
Mr. Nava, responded that it was not. The question was raised whether or not there was a
need for a law school in the area. It was determined that there wasn't. They know,that the
University of California will establish a new professional school. He stated that the last
medical school was established forty years ago. The next professional school will be a
medical school and they hope that it will be in Riverside.
Councilmember Hilkev, questioned what the transition.is for those students that are in the
two year medical program at UCR.
Mr. Nava,responded that it is very competitive.
Councilmember Hilkev, questioned how far along the research facility is in Highgrove that
included some housing.
Mr.Nava, stated that the purpose of the facility was to move the research programs out into
the community off of the campus but is unaware of any housing component but would be
happy to follow up on it.
Mayor Pro Tern Cortes, thanked Dr.Nava for coming to the meeting.
CONSENT CALENDAR
CC-2005-85 MOTION BY MAYOR PRO TEM CORTES, SECOND BY COUNCILMEMBER
GARCIA,CARRIED 5-0,to approve the following Consent Calendar Items with the
removal of Voucher#56055 under item 3A:
3A. Approve Check Register Dated August 25, 2005
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Council Minutes
August 25,2005
Page 3
3B. Waive Full Reading of Ordinances on Agenda
3C. Approval of 08-11-2005
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ITEMS REMOVED FROM CONSENT CALENDAR
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Voucher# 56055 in the amount of$890,674.00
CC-2005-86 MOTION BY MAYOR FERRE, SECOND BY COUNCILMEMBER GARCIA,
CARRIED 3-1-0-1 (COUNCILMEMBER HILKEY VOTED NO AND MAYOR
PRO TEM CORTES ABSTAINED), to accept voucher #56055 in the amount of
$890,674.00.
PUBLIC COMMENT
Anthony Bonello, 22413 Barton Road, stated that there are a lot of sewage problems at the
Stater Bros. center. He stated that whoever owns the center should maintain the center in
accordance with the laws that the City has. The building needs to be cleaned and painted.
The tenants have been demanding trash cans in the food court area because there was trash
all over the center. The tenants care about Grand Terrace and want to stay, however, they
have not been getting any support from Anita McGaughey as far as the conditions of all the
small businesses in the center. Most of them are doing without air conditioning because she
won't repair any of the air conditioners in the building and he feels that it is not the tenants
responsibility. He feels that the conditions at the center should be better and asked the City
for assistance.
Michelle Casey, 12531 Mirado, stated that she has been a resident of Grand Terrace for
almost 34 years. She is requesting the City Council and the City of Grand Terrace for their
help in doing something about the shopping center and Viking Investments owned by Anita
and Dennis McCaughey. Grand Terrace doesn't need slum lords. She feels that this
common area is a mess. She stated that the tenants are afraid of the landlord. She would like
the City to get involved and to contact the Department of Real Estate.
Angela Bonello, 22413 Barton Road, feels that the center owned and operated by Anita
McGaughey is in dire need of repairs. The owner has been advised of all of the repairs that
need to be made and the tenants have documented them. The landlord refuses to do the
repairs. She submitted a packet to the City Clerk with referenced information.
Mario A. Chavez, 22421 Barton Road, stated that he had problems with the center as well.
He feels that the landlord purposely doesn't fix items that need to be repaired for operation,
however, she tells the tenants that everything is in working condition and then when there
is a problem, she tell the tenants that they did something to cause the problem and then
requires them to fix it. He stated that he has since closed his business because of the
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Council Minutes
August 25,2005
Page 4
difficulties of dealing with Ms. McGaughey. He feels that.in order for the City to succeed
in creating more business opportunities for small businesses it would be in the best interest
for the City to do something about Anita McGaughey. She has used racial comments many
times. He feels that it is time to take action against Viking Investment.
Bill HUs, 22114 De Berry Street,read the following letter:
In reference to pending,partial or deficient approvals for:Miguel's drive-thru,SA-05-10,E-
05-05, CUP-05-05 Town Square Jacobsen DDA 2-14-2005.
The city has not updated its.Land use element since 1988,
The city has not updated its conservation element since 1988,
The city has not updated its Safety element since 1988,
The city has not updated its circulation element since 1999,
The city has not updated its open space element since 1999,
The current housing element on file is from 2002 and
The city has not updated its noise element since 2003.
These elements above are all mandatory elements of the Grand Terrace general plan and
should take priority over optional elements like the bicycle plan updated in 2002. With
numerous projects anticipated for construction,in planning stages or on the drawing board,
or in plan check; it is IMPOSSIBLE for the planning staff or city council or planning
department to knowledgeably and appropriately respond. These proj ects total over 195 acres
in a 3.5 square mile town. The plans above have not been.kept current with the times for the
physical realities,environmental conditions, safety, conservation, land use,housing,noise,
public services, flood control, fire hazards and open spaces now present in Grand,Terrace.
These elements should be updated with the full input of the citizen community so that they
are guidelines for all the anticipated projects and planning. Without your immediate
attention to updating to these out of date plans—you are making decisions with data 10-20
years old by the time some projects will be completed. This is malfeasance and not a proper
discharge of your duties to the citizens.
The Five year Redevelopment program implementation plan for 2004-2009,recently passed
as a new ordinance,gives a preliminary cost estimate paid by the City/CRA of$300,000.To
be paid for the Town Square infrastructure improvements. Exactly what improvements will
the city pay for in connection with this 16 acre site? If this is a subsidy to Lowe's,why is it
being paid with the taxpayers'money,and without our consent? We are continually told that
we are not subsidizing big corporations to come to town, but this budget and resolutions
show otherwise. Is this to pay for street & signal improvements that would not be needed,
except for the arrival of this big box retailer to Michigan Avenue? Why is the newspaper call
Town Square a 20 acre project,when the size of the project area in the Barton Road Specific
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Council Minutes
August 25,2005
Page 5
Plan is much smaller at 16 acres?
We Grand Terrace citizens see that the preferred developer now owns residential property
on Michigan Avenue south of La Paix Street. This area is zoned residential and is NOT part
of the Barton Road Specific Plan. Is this going to be a part of the proposed Lowe's big box
center also? Is this perhaps for overflow parking or a temporary worker hiring site? It is
imperative that you address all the health and safety issues that you are PAID to guard on our
behalf. Instead you recommend a blanket negative declarations, or exemption for partial
development within this area. Is the city or CRA planning to rezone all of Michigan Avenue
from residential to commercial use? If this is part of the city or CRA overall plan you are
required to hold public hearings. You are required to notify the residents in the area who will
be more affected by massive,permanent changes such as this, than we are by the change in
the hours of operations of a local business,where you DO mail the local property owners in
the radius area to keep them informed.
You are required to provide open government, not only in law but in fact and in spirit.
When you do not make your planning documents open and available for the public to get
information, you encourage suspicion. Recently you have delayed the production of
documents or other information when they requested by the general public. They are often
missing on the counter, or put there only at the last minute. We distrust you because you
hold meetings in secret and conduct many deals without open and competitive bidding. Staff
often tell residents or the newspaper one thing,when the facts,documents or participants tell
an entirely different story. With open government we could work together for abetter Grand
Terrace community. With involved citizen participation we could come together to find
solutions to smart, planned, cohesive community development plans. We are not against
progress or improvement. We are in favor of plans honestly financed with private money for
private property, and public money only used for truly public projects. We hope you will
heed our requests. We want to be involved for a better Grand Terrace,and we know that you
have ignored our comments and been negligent in guarding our community interests to the
determent of us all.
Reese Fozoani,22400 Barton Road#11, stated that Anita Mc Gaughey does not care about
the building or tenants, all she cares about is collecting her checks. She allows for unsafe
conditions. She hopes that the City helps the tenants in order to keep businesses in Grand
Terrace.
Ci , Manager Schwab,stated that staff will look into the issues at the center. The City could
possibly get involved in the Health and Safety related issues. The civil issues he is unsure
what level the City can intervene in. He will discuss this with the City Attorney and develop
a plan of action to present to the Council for guidance.
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ORAL REPORTS
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Council Minutes
August 25,2005
Page 6
5A. Committee Reports -None
COUNCIL REPORTS
Councilmember Miller,he feels that after listening to the tenants at the shopping center,that
the concern is what is in their Lease. The Council is going to have a hard time intervening
in what is in the Lease. He feels that they will probably have to have an attorney look at the
lease. The City can look into code enforcement issues. Council is concerned and are
listening to what they have brought up this evening. He reported that the Chamber of
Commerce will be holding their golf tournament on August 26,2005. He thanked all of the
businesses of Grand"Terrace who have supported the event as well as the Councihnembers
and everyone who has supported the event. It looks like it is going to be a successful event.
He expressed his concern with graffiti in town. He would like staff to look into the graffiti
on the real estate sign by Bank of America and on the wall behind the Terrace Retirement
Center.
Councilmember Hilkey,stated that staff has been hearing the comments that are being made
by the tenants of the shopping center over the years, however, the City is limited on what
they can do. The failure of"that site and the future demise of that site has to do with the
owner and not new businesses coming into town. There have been comments that were
made when talking about the Outdoor Retail Center and the Town Center that new
businesses and new development was not sustainable because they would cause a demise of
the Stater Bros. Center. He wants it to be clear that the demise of that center will happen but
it will happen because of the owner. Many of the improvements over the past 15 to 20 years
that he has witnessed have been with staff doing sharing expenses with the signs and the
landscaping and it has been an uphill battle. Our hands are tied with the Civil issues. He
reported that the Citizens in town had an opportunity to look at the plans and options for the
Senior Citizens Housing project. He feels that the company that the City has hired to do the
project is amenable and flexible and very eager to help those with frustrations and feels that
it was a very good meeting. He reported that he and Mayor Ferr6 sit on an oversight
committee on the school bond that was approved a few years ago. Councilmember Garcia
and Mayor Pro Tem Cortes have also sat on the committee over the years. They submitted
a plan to accelerate the construction of the high school and that plan will be submitted to the
School Board in September.
Councilmember Garcia, thanked the tenants for their comments. She would like to see the
center be a quality shopping center and hopes that everyone can work together to make that
happen. She requested an update on the work that is going on with the roads.
Assistant City Managerrry, stated that the City is doing repairs on Barton Road.
Councilmember Garcia,requested that when the City is doing road repairs that we have the
Council Minutes
August 25,2005
Page 7
road closures on the Webpage.
Mayor Pro Tem Cortes,reported that she has also noticed the graffiti in town and questioned
if there is a hotline number that the residents can call to report graffiti.
CAY Manager Schwab, responded that there is a phone number.
City Clerk Stanfill, stated that staff would put the hotline number on channel 3.
Assistant City Manager Berry, reminded everyone that if the graffiti is on private property
it takes longer because we need permission from the property owner to remove it. The
graffiti on the wall by The Terrace will be taken care of and will work on the sign.
Mayor Pro Tem Cortes,requested that the information on the graffiti hotline be included in
the Blue Mountain Outlook as well as the information being included on the website. She
requested that those tenants that have concerns place it in writing so that the City Attorney
can address their issues.
City Attorney Harper, indicated that he and City Manager Schwab along with the Code
Enforcement Officer will discuss the item that are in the jurisdiction of the City. He can't
simply write a letter to the landlord,however,the City can address code enforcement issues
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as well as nuisance abatement.
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Mayor Pro Tem Cortes, would like to help the tenants as much as possible.
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Mayor Ferr6, stated that she is sorry that the tenants at the Stater Bros. Center have had to
deal with the conditions for as long as they have. It is important for them to come as a group
and to let the Council know what is going on. Council is listening and it is her hope that they
can be of some help. She reported that she attended along with Councilmember Hilkey the
Bond Oversight Committee. She felt that it was rewarding to see that the School District is
planning to move ahead at an accelerated pace on the high school in Grand Terrace. She
congratulated the Chamber on the number of golfers for the Chamber Golf Tournament. She
attended the Senior Housing Workshop Meeting and feels that it was well done and feels that
everyone that had concerns was able to voice them and felt that the developer listened
sensitively.
PUBLIC HEARING
6A. Appeal of SA-05-06/E-05-04 (Manhole Builders) Applications for a Site and
Architectural, and Environmental Review to convert an existing single story, 1,350
square foot residence into an office and the conversion of an existing barn, garage
and several outbuildings into approximately 3,500 square feet of material storage
Council Minutes
August 25,2005
Page,8
warehouses..There will also be approximately 70,000 square feet of outdoor storage
and approximately 10,000 square feet of production
City Attorney Harper, stated that one of'the grounds that the approval is'being appealed
pertains to the AQMD Study and-the recommended Mitigation Measures_ from AQMD,
which were not considered by the Planning Commission nor incorporated in the project. As
a consequence he feels from a legal perspective that it is most appropriate to refer it back to
the Planning Commission to incorporate the AQMIJ Mitigation Measures and-the study in
the initial study,and begin again. It would be heard at the October Planning Commission
meeting.
CC-2005=87 MOTION BY MAYOR PRO TEM CORTES; SECOND BY COUNCILMEMBER
HILKEY, CARRIED 5-0, to refer SA-05-06/E-05-04 (Manhole Builders)
Applications for a Site and Architectural, and Environmental Review to convert an
existing single story, 1,350 square foot residence into an office,and the conversion
of an existing barn,garage and several outbuildings into approximately 3,500 square
feet of material storage warehouses and approximately 70,000 square feet of outdoor
storage and approximately,.10,000 square feet of production to the Planning
Commission.to incorporate the AQMD Mitigation Measures and the,study in the
initial study and begin again.
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UNFINISHED BUSINESS -None
NEW BUSINESS
8A. Award of the 2005-06 Street Striping Contract to the lowest Bidder Determined by
Staff-from the August.22, 2005 Bid Opening
CC-2005-88 MOTION BY COUNCILMEMBER GARCIA,•SECOND BY MAYOR PRO TEM
CORTES, 5-0,to award the 2005-06 Street Striping Contract to Traffic Operations,
Inc.in the amount of$22,697.10 and to enter into an Agreement with them for those
services.
8B. Award of the Street Slurry Contract to American Asphalt South,Inc.for the.2005-06
Slurry Seal Program
CC-2005-89 MOTION BY COUNCILMEMBER HILKEY, SECOND BY MAYOR PRO TEM
CORTES, CARRIED 5-0,to award the Street Slurry Contract,to American Asphalt
South,Inc. for the 2005-06 Slurry Seal Program in the amount of$58,074.92 and to
enter into an Agreement with them for those services.
8C. Award of the Asphalt Crack Sealing Contract to Roadworks, Inc.
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Council Minutes
August 25,2005
Page 9
CC-2005-90 MOTION BY MAYOR PRO TEM CORTES, SECOND BY COUNCILMEMBER
HILKEY, CARRIED 5-0,'to award the Crack Sealing Contract to Roadworks,Inc.
in the amount of,up to $20,000.00 and to enter into an Agreement with them for
those services.
i 1 CLOSED SESSION-None
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! Mayor Ferr6 adjourned the meeting,at 7:30 p.m.until the next CRA/City Council Meeting which is
scheduled to be held on Thursday, September 8, 2005 at 6:00 p.m.
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CITY CLERK of the City'of Grand Terrace
MAYOR of the City of Grand Terrace
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STAFF REPORT
TROMP TERZ ` City -Manager's Office
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CRA ITEM ) COUNCIL ITEM (X)
MEETING DATE: September 22, 2005
SUBJECT: Fireworks
FUNDING REQUIRED Q
NO FUNDING REQUIRED (X)
City Staff had indicated previously to Council that the issue of fireworks both legal and illegal would be
brought to the City Council for discussion.
The City Council adopted Ordinance 178 in 1998 establishing the sale and regulation of safe and sane
fireworks in the City of Grand Terrace.
At the time of this adoption the Colton/Terrace Little League,which covered the City of Colton and Grand
Terrace,was growing,causing the group to split,creating an independent Grand Terrace Little League which
had no access to the major fund-raiser of fireworks sales. It was at this time Council considered and adopted
Ordinance 178 establishing the sale and regulation of safe and sane fireworks to assist our local Little League
in this major fund-raiser.
Our current ordinance states,"no license shall be issued to any-person,firm or corporation except nonprofit
associations or corporations organized primarily for youth sports and that each such organization must have
its principal and permanent meeting place in the corporate limits of the city and must have been organized
and established in the city's corporate limits for a minimum of one year continuously preceding the filing
of the application for the license, and must have a bona fide membership of at least one hundred fifty
members and that no organization may receive more than one license for fireworks sale. One license may
be issued to two or more qualifying applicants as a joint venture.The maximum number of licenses which ;
maybe issued pursuant to this chapter shall be one." Our fireworks booth is operated by the Little League
and Soccer League combined and benefits both of those organizations. The fireworks fund-raiser nets
between$12,000-$15,000 each year for the two groups combined.
During the 7 years that the City has allowed legal fireworks, and especially in recent years, the
number and quality of illegal fireworks has proliferated considerably.
In our research it appears that the illegal fireworks.are now more readily available within the
United States, and particularly in the State of Nevada, for purchase by California residents to be
utilized-in our local neighborhoods. Whether it is increased availability of illegal fireworks or
the use of legal fireworks in Grand Terrace that has caused the proliferation of the illegal variety
is open to debate.
CGUMICEIL G� O,
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In our limited research of local law enforcement agencies both the City of Loma Linda and the
City of Highland both prohibit the use of fireworks of any variety-legal or otherwise and it is our
conclusion that those communities had a high level of illegal fireworks use even though they
allow no legal fireworks.
Staff is seeking direction from the City Council as to whether there is any desire to amend our
current fireworks regulations.
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UND TERR C
Community Services Department
Staff Report
MEETING DATE:September 22,2005
SUBJECT: CONSIDERATION OF A LEASE AGREEMENT BETWEEN THE CITY OF GRAND
TERRACE AND T-MOBILE WIRELESS ON A CELL TOWER SITE AT IN THE CITY'S
CORPORATE YARD.
NO FUNDING REQUIRED
BACKGROUND:
On January 13,2005,the City Council approved a contract between Cingular Wireless(now T-Mobile)and
the Colton Joint Unified School District CJUSD for a cell tower to be located on CJUSD property at Rollins
Park. The city was going to split the monthly revenue of$2,000 per month with CJUSD and allow the
tower to be built in place of an existing light standard.For multiple reasons unrelated to the city,the cell
tower was never built and the wireless company began looking for alternative sites.
City staff was approached by T-Mobile to consider a cell tower in the city's corporate yard next to the
antenna arrays for the Emergency Operations Center(EOC). The wireless antenna would be 10 feet higher
than the current EOC's antenna structure. A wireless study commissioned by T-Mobile shows a need for
additional wireless coverage on Barton Road and the surrounding neighborhoods.
Staff has been negotiating with T-Mobile,who has agreed to all of the concessions outlined below,in
exchange for an approval of the contract by City Council before October 1,2005. T-Mobile has also agreed
to receive all appropriate entitlements from the Planning Commission before construction could begin.
Contract Highlights:
• $2,000 per month in revenue
• 5-year renewable lease term with a 15%rent increase after the first term
• T-Mobile will construct a pole able to support co-location of another vendor of which the city has
the right to approve and negotiate separately
• T-Mobile must provide a intermodulation study to show that there is no interference with the
EOC's existing radio antenna array.
• T-Mobile's antenna's facilities are subject to review and approval by the City's Planning
Commission.
CONCLUSION:
Staff recommends the following:
• Approve the contract with T-Mobile pending review by the city attorney and with the
understanding that for the project to be built,T-Mobile must receive all appropriate entitlements
from the Planning Commission.
f vUrF'r$:Pq :P G In DA �EEll N 0.
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LEASE TRANSMITTAL
Site Number: IE04942B Date Turned In:
Site Name: SB516_Grand_Terrace Cijy Hall
Market: California Site Acquisition Coordinator: JAY BANKS
Attached lease find: Market Information
4 Landlord-signed leases Market Entity Name:Omnipoint Communications,Inc.,a Delaware
I Landlord-signed/notarized memorandums corporation,a subsidiary of T-Mobile USA,Inc.
❑Owner Authorization Agreement Type of Entity: Delaware Corporation
Market address: 3 Imperial Promenade,Suite 1100
❑Landlord-signed W-9
i Santa Ana, CA, 92707
❑Authorization to sign lease(f applicable) (Site#: IE0494213)
Director Name: Raj Tank
Director Title: Area Director,Engineering
Landlord information
Landlord Name: City of Grand Terrace,a municipal 2nd Landlord Name
corporation
Additional Mailing Address(if any)
Mailing Address: Attn: Asst.City Manager Mailing Address:
22795 Barton Road
Grand Terrace,CA 92313
Phone Number: <felephone> Phone Number: <Telephone>
Fax Number: <Facsimile> Fax Number <Facsimile>
Site Information Option Terns
Site Address: 22795 Barton Road Option Amount: $2,000.00=two thousand dollars
Grand Terrace,CA 92313 Option Term: twelve(12)months
Square Footage: 625 square feet Option Renewal Amt: $2,000.00=two thousand dollars
Parcel Number: 0276-202-82,-48,and-77 Option Renewal Term: twelve(12)months
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Lease Terms
Payee Name: City of Grand Terrace
Rent Amount: $2,000.00=two thousand dollars
Rent Frequency Monthly
Rent Increase: 15%= fifteen percent
Lease Term: five(5)years
Renewal Terms: five(5)additional five-year terms
Cancel Terms: thirty(30)days prior
Insurance: One Million($ 1,000,000.00)
Comments No Non-Standard Terms
Approved by:
Real Estate Manager Date General Manager/Director Date
Legal Department Date Vice President(if applicable) Date
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SITE LEASE WITH OPTION
THIS SITE LEASE WITH OPTION(this"Lease")is by and between City of Grand Terrace,a municipal corporation
("Landlord")and Omnipoint Communications,Inc.,a Delaware corporation,a subsidiary of T-Mobile USA,Inc.,a Delaware
Corporation("Tenant").
1. Option to Lease.
(a)In consideration of the payment of two thousand and no/100 dollars ($2,000.00)(the"Option Fee")by Tenant to
Landlord,Landlord hereby grants to Tenant an option to lease the use of a portion of the real property described in the attached
Exhibit A(the"Property"),on the terms and conditions set forth herein(the"Option"). The Option shall be for an initial term of
twelve(12)months, commencing on the Effective Date(as defined below)(the "Option Period"). The Option Period may be
extended by Tenant for an additional twelve (12) months upon written notice to Landlord and payment of the sum of two
thousand and no/100 dollars($2,000.00)("Additional Option Fee")at any time prior to the end of the Option Period.
(b) During the Option Period and any extension thereof, and during the term of this Lease, Landlord agrees to
cooperate with Tenant in obtaining, at Tenant's expense,all licenses and permits or authorizations required for Tenant's use of
the Premises(as defined below)from all applicable government and/or regulatory,entities(including,without limitation,zoning
and land use authorities,and the Federal Communication Commission("FCC")("Governmental Approvals"),including all land
use and zoning permit applications,and Landlord agrees to cooperate with and to allow Tenant,at no cost to Landlord,to obtain
a title report,zoning approvals and variances,land-use permits,and Landlord expressly grants to Tenant a right of access to the
Property to perform surveys, soils tests, and other engineering procedures or environmental investigations'on the Property
necessary to determine that Tenant's use of the Premises will be compatible with Tenant's engineering specifications, system
design, operations and Governmental Approvals. Notwithstanding the foregoing, Tenant may not change the zoning
classification of the Property without first obtaining Landlord's written consent.,During the Option Period and any.extension
thereof,Landlord agrees that it will not interfere with Tenant's efforts to secure other licenses and permits or authorizations that
relate to other property. During the Option Period and any extension thereof,Tenant may exercise the Option by so notifying
Landlord in writing,at Landlord's address in accordance with Section 12 hereof.
(c) If Tenant exercises the Option, then, subject to the following terms and conditions; Landlord hereby leases to
Tenant the use of that portion of the Property sufficient for placement of the Antenna Facilities(as defined below),together with
all necessary space and easements for access and utilities, as generally described and depicted in the attached Exhibit B
(collectively referred to hereinafter as the"Premises"). The Premises,located at 22795 Barton Road,Grand Terrace,CA 92313,
comprises approximately 625 square feet.
2. Term. The initial term of this Lease shall be five(5)years commencing on the date of the exercise of the Option
(the"Commencement Date"),and.terminating at midnight on the last day of the month of the initial term(the"Initial Tern").
3. Permitted Use. The Premises may be used by Tenant for the transmission and reception of radio communication
signals and for the construction, installation,operation,maintenance,repair,.removal or replacement of related facilities,tower
and base,antennas,microwave dishes,equipment shelters and/or cabinets and related activities.
4. Rent. Tenant shall pay Landlord,as rent,two thousand and no/100 dollars($2,000.00)per month("Rent"). Rent
shall be payable within twenty(20)days following the Commencement Date prorated for the remainder of the month in which
the Commencement Date falls and thereafter Rent will be payable monthly in advance by the fifth day of each month to Ci1Y of
Grand Terrace at Landlord's address specified in Section 12 below. If this Lease is terminated at a time other than on the last day
of a month,Rent shall be prorated as of the date of termination for any reason(other than a default by Tenant)and all prepaid
Rent shall be immediately refunded to Tenant.
5. Renewal. Tenant shall have the right to extend this Lease for five(5)additional,five-year terms(each a"Renewal
Term"). Each Renewal Term shall be on the same terms and conditions as set forth herein,except that Rent shall be increased by
fifteen percent (15%) of the Rent paid over the preceding term. This Lease shall automatically renew for each successive
Renewal Tern unless Tenant notifies Landlord,in writing,of Tenant's intention not to renew this Lease,at least thirty(30)days
prior to the expiration of the Initial Term or any Renewal Term. If Tenant shall remain in possession of the Premises at the
expiration of this Lease or any Renewal Term without a•written agreement,such tenancy shall be deemed a month-to-month
tenancy under the same terms and conditions of this Lease.
6. Interference. Tenant shall not use the Premises in any way which interferes with the use of the Property by
Landlord,or lessees or licensees of Landlord with equipment installed prior in time to Tenant's installation. Similarly,Landlord
shall not use,nor shall Landlord permit its lessees,licensees,employees,invitees or agents to use,any portion of the Property in
any way which interferes with the operations of Tenant. Such interference shall be deemed a material breach by the interfering
Site Number, IE04942B 1 CA version 1.4.05
Site Name: SB516 Grand_Terrace_City_Hall
Market: California
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party, who shall, upon written notice from the other, be responsible for terminating said interference. In the event any such
interference does not cease promptly, the parties acknowledge that continuing interference may cause irreparable injury and,
therefore,the injured party shall have the right, in addition to any other rights that it may have at law or in equity, to bring a
court action to enjoin such interference or to terminate this Lease immediately upon written notice.
7. Improvements:Utilities:Access.
(a)Tenant shall have the right,at its expense,to erect and maintain on the Premises improvements,personal property
and facilities necessary to operate its communications system, including, without limitation, radio transmitting and receiving
antennas,microwave dishes,tower and base,equipment shelters and/or cabinets and related cables and utility lines and a location
based system, including,without limitation, antenna(s), coaxial cable,base units, location based systems,and other associated
equipment(collectively,the"Antenna Facilities"). Tenant shall have the right to alter,replace,expand,enhance and upgrade
the Antenna Facilities at any time during the term of this Lease. Tenant shall cause all construction in compliance with all
j applicable laws and ordinances,and shall discharge or bond any mechanic's lien filed or recorded. Landlord acknowledges that
it shall not interfere with any aspects of construction,including,without limitation,attempting to direct construction personnel as
to the location of or method of installation of the Antenna Facilities and the Easements (as defined below) ("Construction
Interference"). Landlord further acknowledges that it will be responsible for any costs and damages (including, fines and
penalties)that are directly attributable to Landlord's Construction Interference.The Antenna Facilities shall remain the exclusive
property of Tenant and shall not be considered fixtures. Tenant shall have the right to remove the Antenna Facilities at any time
during and upon the expiration or termination of this Lease.
(b) Tenant, at its expense, may use any and all appropriate means of restricting access to the Antenna Facilities,
including,without limitation,the construction of a fence.
(c) Tenant shall, at Tenant's expense, keep and maintain the Antenna Facilities now or hereafter located on the
Property in commercially reasonable condition and repair during the term'of this Lease, normal wear and tear and casualty
excepted. Upon termination or expiration of this Lease,the Premises shall be returned to Landlord in good,usable condition,
normal wear and tear and casualty excepted.
(d) Tenant shall have the right to install utilities, at Tenant's expense, and to improve the present utilities on the
Property (including, but not limited to, the installation of emergency power generators). Landlord agrees to use reasonable
efforts in assisting Tenant to acquire necessary utility service. Tenant shall, wherever practicable, install separate meters for
utilities used on the Property by Tenant. Landlord shall diligently correct any variation,interruption or failure of utility service. -
(e)As partial consideration for Rent paid under this Lease,Landlord hereby grants Tenant an easement in,under and
across the Property for ingress, egress, utilities and access (including access for the purposes described in Section 1) to the
Premises adequate to install and maintain utilities,which include,but are not limited to,the installation of power and telephone
service cable, and to service the Premises and the Antenna Facilities at all times during the Initial Term of this Lease and any
Renewal Term(collectively,the"Easements").The Easements provided hereunder shall have the same term as this Lease.
(0 Tenant shall have 24-hours-a-day, 7-days-a-week access to the Premises ("Access") at all times during the Initial
Term of this Lease and any Renewal Term at no additional charge to the Tenant. In the event Landlord,its employees or agents
impede or deny Access to Tenant,its employees or agents,Tenant shall,without waiving any other rights that it may have at law
or in equity,deduct from Rent amounts due under this Lease an amount equal to five hundred and no/100 dollars($500.00)per
day for each day that Access is impeded or denied.
8. Termination. Except as otherwise provided herein, this Lease may be terminated,without any penalty or further
liability as follows:
(a)upon thirty(30)days'written notice by Landlord if Tenant fails to cure a default for payment of amounts due under
this Lease within that thirty(30)day period;
(b)immediately if Tenant notifies Landlord of unacceptable results of any title report,environmental or soil tests prior
to Tenant's installation of the Antenna Facilities on the Premises,or if Tenant is unable to obtain,maintain,or otherwise forfeits
or cancels any license(including,without limitation, an FCC license),permit or any Governmental Approval necessary to the
installation and/or operation of the Antenna Facilities or Tenant's business;
(c) upon thirty (30) days' written notice by Tenant if the Property or the Antenna Facilities are, or become
unacceptable under Tenant's design or engineering specifications for its Antenna Facilities or the communications system to
which the Antenna Facilities belong;
(d)immediately upon written notice by Tenant if the Premises or the Antenna Facilities are destroyed or damaged so as
in Tenant's reasonable judgment to substantially and adversely affect the effective use of the Antenna Facilities. In such event,
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Site Number: IE04942B 2 CA version 1.4.05
Site Name: SB516_Grand_Terrace_City_Hall
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all rights and obligations of the parties shall cease as of the date of the damage or destruction,and Tenant shall be entitled to the
reimbursement of any Rent prepaid by Tenant. If Tenant elects to continue this Lease, then all Rent shall abate until the
Premises and/or the Antenna,Facilities are restored to the condition existing immediately prior to such damage or destruction;or
.(e)at the time title to the Property transfers to a condemning authority,pursuant to a taking of all or a portion of the
Property sufficient in Tenant's determination to render the Premises unsuitable for Tenant's use. Landlord and Tenant shall each
be entitled to pursue their own separate awards with respect to such taking. Sale of all or part of the Property to a purchaser with
the power of eminent domain in the face of the exercise of the power shall be treated as a taking by condemnation;or
(f) upon thirty (30) days written notice by Tenant is Tenant determines that the Property or Antenna Facilities are
inappropriate or unnecessary for Tenant's operations due to economic reasons.
9. Default and Right to Cure. Notwithstanding anything contained herein to the contrary and-without waiving any
other rights granted to it at law or in equity,each party shall have the right,but not the obligation,to terminate this Lease on
written notice pursuant to Section 12 hereof,to take effect immediately,if the other party(i)fails to perform any covenant for a
period of thirty(30)days after receipt of written notice thereof to cure.
10. Taxes. Landlord shall pay when due all real property taxes for the Property,including the Premises. In the event
that Landlord fails to pay any such real property taxes or other fees and assessments,Tenant shall have the right, but not the
obligation,to pay such owed amounts and deduct them from Rent amounts due under this Lease. Notwithstanding the foregoing,
Tenant shall pay any personal property tax, real property tax or any other tax or fee which are directly attributable to the
presence or installation of the Tenant's Antenna Facilities,only for so long as this Lease has not expired of its own terms or is not
terminated by either party. Landlord hereby grants to Tenant the right to challenge, whether in a Court, Administrative
Proceeding, or other venue, on behalf of Landlord and/or Tenant, any personal property or real property tax assessments that
may affect Tenant. If Landlord receives notice of any personal property or real property tax assessment against the Landlord,
which may affect Tenant and is directly attributable to Tenant's installation, Landlord shall provide timely notice of the
assessment to Tenant sufficient to allow Tenant to consent to or challenge such assessment. Further,Landlord shall provide to
Tenant any and all documentation associated with the assessment and shall execute any and all documents reasonably necessary
to effectuate the intent of this Section 10.
11. Insurance and Subrogation and Indemnification.
(a)Tenant shall provide Commercial General Liability Insurance in an aggregate amount of One Million and no/100
dollars($1,000,000.00). Tenant may satisfy this requirement by obtaining the appropriate endorsement to any master policy of
liability insurance Tenant may maintain.
(b)Landlord and Tenant hereby mutually release each other(and their successors or assigns)from liability and waive
all right of recovery,against the other for any loss or damage covered by their respective first party property insurance policies
for all perils insured thereunder. In the event of such insured loss,neither party's insurance company shall have a subrogated
claim against the other. To the extent loss or damage is not covered by their first,party property insurance policies,Landlord and
Tenant each agree to indemnify and hold harmless the other party from and against any and all claims, damages, cost and
expenses, including reasonable attorney fees,to the extent caused by or arising out of (a) the negligent acts or omissions or
willful misconduct in the operations or activities on the Property by the indemnifying party or the employees, agents,
contractors,licensees,tenants and/or subtenants of the indemnifying party,or(b)a breach of any obligation of the indemnifying
party under this Lease. Notwithstanding the foregoing, this indemnification shall not extend to indirect,special',incidental or
consequential damages, including,without limitation,loss of profits,income or business opportunities to the indemnified party
or anyone claiming through the indemnified party. The indemnifying party's obligations under this section are contingent upon
(i) its receiving prompt written notice of any event giving rise to an obligation to indemnifying the other party and (ii) the
indemnified party's granting it the right to control the defense and settlement of the same. Notwithstanding anything to the
contrary in this Lease,the parties hereby confirm that the provisions of this section shall survive the expiration or termination of
this Lease. Tenant shall not be responsible to Landlord,or any third-party,for any claims,costs or damages(including,fines and
penalties) attributable to any pre-existing violations of applicable codes, statutes or other regulations governing the Property,
including the Premises.
12. Notices. All notices,requests,demands and other communications shall be in writing and are effective three(3)
days after deposit in the U.S.mail, certified and postage paid,or upon receipt if personally delivered or sent by next-business-
day delivery via a nationally recognized overnight courier to the addresses set forth below. Landlord or Tenant may from time to
time designate any other address for this purpose by providing written notice to the other party.
Site Number: IE04942B 3 CA version 1.4.05
Site Name: SB516_Grand Terrace_City_Hall
Market: California
If to Tenant,to: With a copy to:
T-Mobile USA,Inc. Omnipoint Communications,Inc.,a Delaware corporation,a
12920 SE 380s Street subsidiary of T-Mobile USA,Inc.
Bellevue,WA 98006 3 Imperial Promenade,Suite 1100
Attn: PCS Lease Administrator Santa Ana,CA 92707
With a copy to: Attn: Legal Dept. (Site#: IE04942B)
Attn:Lease Administration Manager
If to Landlord.to: With a copy to:
City of Grand Terrace,a municipal corporation
Attn: Asst.City Manager
22795 Barton Road
Grand Terrace,CA 92313
13. Quiet Enjoyment. Title and Authority. Landlord covenants and warrants to Tenant that(i)Landlord has full
right, power and authority to execute this Lease; (ii) it has good and unencumbered title to the Property free and clear of any
liens or mortgages,except those disclosed to Tenant and which will not interfere with Tenant's rights to or use of the Premises;
and (iii) execution and performance of this Lease will not violate any laws, ordinances, covenants, or the provisions of any
mortgage,deeds of trust,lease,or other agreement binding on Landlord. Landlord.covenants that at all times during the term of
this Lease,Tenant's quiet enjoyment of the Premises or any part thereof shall not be disturbed as long as Tenant is not in default
beyond any applicable grace or cure period.
14. Environmental Laws. Landlord represents that it has no knowledge of any substance, chemical or waste
(collectively, "Hazardous Substance") on the Property that is identified as hazardous, toxic or dangerous in any applicable
federal, state or local law or regulation. Landlord and Tenant shall not introduce or use any Hazardous Substance on the
Property in violation of any applicable law. Landlord shall be responsible for,and shall promptly conduct any investigation and
remediation as required by any applicable environmental laws,all spills or other releases of any Hazardous Substance not caused
solely by Tenant, that have occurred or which may occur on the Property. Each party agrees to defend, indemnify and hold
harmless the other from and against any and all administrative and judicial actions and rulings,claims,causes of action,demands
and liability(collectively,"Claims")including,but not limited to,damages,costs,expenses,assessments,penalties,fines,losses,
judgments and reasonable attorney fees that the indemnitee may suffer or incur due to the existence or discovery of any
Hazardous Substances on the Property or the migration of any Hazardous Substance to other properties or the release of any
Hazardous Substance into the environment(collectively,"Actions"),that relate to or arise from the indemnitor's activities on the
Property. Landlord agrees to defend, indemnify and hold Tenant harmless from Claims resulting from Actions on the Property
not caused by Landlord or Tenant prior to and during the Initial Term and any Renewal Term of this Lease. The
indemnifications in this section specifically include, without limitation, costs incurred in connection with any investigation of
site conditions or any cleanup,remedial,removal or restoration work required by any governmental authority. This Section 14
shall survive the termination or expiration of this Lease.
15. Assignment and Subleasing. Tenant may assign this Lease and the Easements (as defined above)granted
herein upon written notice to Landlord. Upon such assignment, Tenant shall be relieved of all liabilities and obligations
hereunder and Landlord shall look solely to the assignee for performance under this Lease and all obligations hereunder. Tenant
may sublease the Premises,upon written notice to Landlord.
Additionally,Tenant may,upon notice to Landlord, collaterally assign or grant a security interest in this Lease and
the Antenna Facilities,and may assign this Lease and the Antenna Facilities to any mortgagees or holders of security interests,
including their successors or assigns (collectively "Secured Parties"). -In such event, Landlord shall execute such consent to
leasehold financing as may reasonably be required by such Secured Parties.
16. Successors and Assigns. This Lease and the Easements granted herein shall run with the land,and shall be binding
upon and inure to the benefit of the parties,their respective successors,personal representatives and assigns.
17. Waiver of Landlord's Lien. Landlord hereby waives any and all lien rights it may have, statutory or otherwise,
concerning the Antenna Facilities or any portion thereof,which shall be deemed personal property for the purposes of this Lease,
whether or not the same is deemed real or personal property under applicable laws, and Landlord gives Tenant and Secured
Parties the right to remove all or any portion of the same from time to time,whether before or after a default under this Lease,in
Tenant's and/or Secured Parties'sole discretion and without Landlord's consent.
18. Miscellaneous.
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Site Number: IE04942B 4 CA version 1.4.05
Site Name: SB516_Grand_Terrace City_Hall
Market: California
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(a)The prevailing party in any litigation arising hereunder shall be entitled to its reasonable attorneys'fees and court
costs,including appeals,if any.
(b)Each party agrees to furnish to the other,within twenty(20)days after request,such truthful estoppel information
as the other may reasonably request.
(c)This Lease constitutes the entire agreement and understanding of the parties,and supersedes all offers,negotiations
and other agreements. There are no representations or understandings of any kind not set forth herein. Any amendments to this
Lease must be in writing and executed by both parties.
(d)Each party agrees to dooperate with the other in executing any documents(including a Memorandum of Lease in
substantially the form attached hereto as Exhibit C)necessary to protect its rights or use of the Premises. The-Memorandum of
Lease may be recorded in place of this Lease by either party. In the event the Property is encumbered by a mortgage or deed of,
trust,Landlord agrees,upon request of Tenant,to obtain and furnish to Tenant a non-disturbance and attornment agreement for
each such mortgage or deed of trust,in a form reasonably acceptable to Tenant. Tenant may obtain title insurance on its interest
in the Premises. Landlord agrees to execute such documents as the title company may require in connection therewith.
(e)This Lease shall be construed in accordance with the laws of the state in which the Property is located.
(f) If any term of this Lease is found'to be void or invalid, such finding shall not affect the remaining terms of this
Lease,which shall continue in full force and effect. The parties agree that if any provisions are deemed not enforceable,they
shall be deemed modified to the extent necessary to make them enforceable. Any questions of particular interpretation shall not
be interpreted against the draftsman,but rather in accordance with the fair meaning thereof. No provision of this Lease will be
deemed waived by either party unless expressly waived in writing signed by the waiving party. No waiver shall be implied by
delay or any other act or omission of either party. No waiver by either party of any provision of this Lease shall be deemed a
waiver of such provision with respect to any subsequent matter relating to such provision.
(g)The persons who have executed this Lease represent and warrant that they are duly authorized to execute this Lease
in their individual or representative capacity as indicated.
(h)This Lease may be executed in any number of counterpart copies,each of which shall be deemed an original,but
all of which together shall constitute a single instrument.
(i)All Exhibits referred to herein and any Addenda are incorporated herein for all purposes. The parties understand
and acknowledge that Exhibit A(the legal description of the Property)and Exhibit B(the Premises location within the Property),
may be attached to this Lease and the Memorandum of Lease,in preliminary form. Accordingly,the parties agree that upon the
preparation of final,more complete exhibits,Exhibits A,and/or B,as the case may be,which may have been attached hereto in
preliminary form, may be replaced by Tenant with such final, more complete exhibit(s). The terms of all Exhibits are
incorporated herein for all purposes.
(j)If Landlord is represented by any broker or any other leasing agent,Landlord is responsible for all commission fee
or other payment to such agent, and agrees to indemnify and hold Tenant harmless from all claims by such broker or anyone
claiming through such broker. If Tenant is represented by any broker or any other leasing agent,Tenant is responsible for all
commission fee or other payment to such agent, and agrees to indemnify and hold Landlord harmless from all claims by such
broker or anyone claiming through such broker
The effective date of this Lease is the date of execution by the last party to sign(the"Effective Date").
LANDLORD: City of Grand Terrace,a municipal corporation
By:
Printed Name:
Its:
Date:
Site Number: IE04942B 5 CA version 1.4.05
Site Name: SB516_Grand Terrace_City_Hall
Market: California
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LANDLORD:
By:
Printed Name:
Its:
Date:
TENANT: Omnipoint Communications,Inc.,a Delaware corporation,a subsidiary of T-Mobile USA,Inc.
By:
Printed Name: Raj Tank
Its: Area Director,Engineering
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Date:
Approved as to form
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Site Number: JE04942B 6 CA version 1.4.05
Site Name: SB516_Grand_Terrace_City_Hall
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Market: California
ADDENDUM TO SITE LEASE WITH OPTION
[Additional Terms]
In the event of conflict or inconsistency between the terms of this Addendum and this Lease,the terms of the Addendum shall
govern and control. All capitalized terms shall have the same meaning as in this Lease.
The Lease is hereby amended as follows:
1. Section 6(Interference)is hereby amended to include the following at the end thereof: "Tenant acknowledges that
Landlord's communications antennas are located near the Premises and agrees to take whatever steps are reasonably necessary to
avoid any interference with Landlord's communications. If Landlord believes that Tenant's operations may be causing
interference with its communications,Landlord will notify Tenant in writing specifying the nature of the interference. Within
seventy-two(72)hours of receiving such a notice,Tenant shall either resolve the interference or shut down its Antenna Facilities
_ (except for intermittent testing)until such time as the source of the interference is resolved or an intermodulation study indicates
that the Antenna Facilities are not the source of the interference."
2. Section 7(Improvements:Utilities;Access)is hereby amended to include the following paragraph:
(g) Tenant shall install a monopole that is designed for co-location and capable of supporting an additional
carrier's antenna array as part of the Antenna Facilities. If Tenant upgrades or installs additional telephone or
electrical utilities,including any underground conduit to deliver such utilities to the Premises,Tenant shall ensure there
is enough excess capacity for an additional carrier. Prior to allowing another carrier to use these facilities,Tenant shall
have the right to require the carrier to pay a pro rata share of the cost of the installation of these facilities.
3. The first paragraph of Section 15 (Assignment and Subleasing)that says: "Tenant may assign this Lease and the
Easements(as defined above)granted herein upon written notice to Landlord. Upon such assignment,Tenant shall be relieved
of all liabilities and obligations hereunder and Landlord shall look solely to the assignee for performance under this Lease and all
obligations hereunder. Tenant may sublease the Premises,upon written notice to Landlord."is hereby deleted and replaced with
the following:
Tenant shall have the right to assign or sublease this Lease(i)to an affiliate or subsidiary of Tenant, (ii)to Tenant's
successor by operation of law or otherwise,(iii)in connection with any public offering of interests by Tenant or(iv)to
any affiliate or subsidiary or other party as may be required in connection with any offering, merger, acquisition
recognized security exchange or financing. Under all other circumstances,such assignment or sublease shall require
Landlord's written consent,which consent shall not be unreasonably withheld,conditioned or delayed,provide&that it
will not be unreasonable for Landlord to deny its consent for another carrier to sublease space within the Premises
without an increase in Rent.
4. The following paragraph is hereby added to the Lease:
Section 19. Governmental Approvals. It is understood and agreed that Tenant's ability to use the Premises is
contingent upon its obtaining all Governmental Approvals(as defined in Section I(b))that may be required to permit
Tenant's use of the Premises as set forth herein. Tenant acknowledges that Landlord is entering into the Lease as the
owner of the Property and by so doing is not granting any zoning approvals or land use permits. Tenant must submit
plans to the Landlord's planning department and go through the normal process to obtain any Governmental Approvals
that are necessary for its use of the Premises in the City of Grand Terrace. By entering into this Lease,Landlord is not
guaranteeing that Tenant will obtain all Governmental Approvals from the City of Grand Terrace or its Planning
Commission.
[signature page follows]
Site Number: IE04942B 7 _ CA version 1.4.05
Site Name: SB516_Grand Terrace_City_Hall
Market: California
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jIN WITNESS WHEREOF,Landlord and Tenant have caused this Addendum to be duly executed as of the date of the
Lease.
LANDLORD: City of Grand Terrace,a municipal corporation
By:
Printed Name:
Its:
Date:
LANDLORD:
By:
Printed Name:
Its:
Date:
TENANT: Omnipoint Communications,Inc.,a Delaware corporation,a subsidiary of T-Mobile USA,.Inc.
By:
Printed Name: Raj Tank
Its: Area Director,Engineering
Date:
Site Number: IE04942B CA version 1.4.05
Site Name: SB516_Gran d_Terrace_City_Hall
Market: California
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EXHIBIT A
Legal Description
The Property is legally described as'follows:
APN: 0276-202-82,-48,and-77
All that certain real property located in the County of San Bernardino,State of California,being more particularly described as
follows:
Site Number: IE04942B CA version 1.4.05
Site Name: SB516_Grand Terrace_City_Hall
Market: California
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EXHIBIT B
The location of the Premises within the Property(together with access and utilities)
is more particularly described and depicted as follows:
However,it is expressly agreed and understood by and between the Landlord and Tenant that the exact and
precise location of the Tenant's Antenna Facilities are subject to review and approval by the planning and/or
zoning Boards having jurisdiction over the"Premises".
Therefore, it is expressly agreed and understood by and between Landlord and Tenant that the precise
location of the Premises as shown on Exhibit `B" may be modified by the Tenant in order to comply with and
obtain necessary planning and/or zoning approvals,and any and all other approvals necessary for Tenant's intended
use of the property. The Premises as described herein may therefore be modified by the Tenant to reflect the final
engineering design. An amended Exhibit `B" (if necessary) will be provided by the Tenant and attached to the
lease in place of the existing Exhibit`B",a copy of which will be provided to the Landlord for review prior to being
incorporated into the lease.
Site Number: IE04942B CA version 1.4.05
Site Name: SB516_Grand Terrace_City_Hall
Market: California
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EXHIBIT C
Memorandum
of
` Lease
Site Number: IE04942B CA version 1.4.05
Site Name: SB516 Grand Terrace City_Hall
Market: California
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Recorded,Requested By,and
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When Recorded Return To:
Omnipoint Communications,Inc.,a
Delaware corporation,a subsidiary of T-
Mobile USA,Inc.
3 Imperial Promenade,Suite 1100
Santa Ana,CA 92707
(Site#: IE0494213)
Attn: Lease Administration Manager
MEMORANDUM OF LEASE
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This Memorandum of Lease("Memorandum")dated as of ,200_,is entered into
between City'of Grand Terrace,a municipal corporation ("Landlord")and Omnipoint Communications,Inc.,a
Delaware corporation,a subsidiary of T-Mobile USA,Inc.,a Delaware Corporation ("Tenant").
Recitals
A. On or about ,200_,Landlord and Tenant entered into a Site Lease with Option
("Lease"),pursuant to which Landlord leased to Tenant and Tenant leased from Landlord real property,more
particularly described in attached Exhibit A and incorporated by reference("Premises").
B. Landlord and Tenant desire to execute this Memorandum to provide constructive notice of
Tenant's rights under the Lease to all third parties.
For good and valuable consideration,the receipt and adequacy of which are hereby acknowledged,the
parties agree as follows:
Section 1
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Term.
Landlord leases the Premises to Tenant for a term of five(5)years commencing on or about
200___,and ending five years thereafter,subject to Tenant's right to extend the Lease for five(5)additional,five-
year terms.
Section 2
Lease Terms.
This lease of the Premises to Tenant is pursuant to the Lease,which is incorporated in this Memorandum
by reference.
Section 3
Assignment.
Tenant's rights and obligations under the Lease shall be assignable upon written notice to Landlord.
Section 4
Successors and Assigns.
This Memorandum and the Lease shall bind and inure to the benefit of the parties and their respective
heirs,successors,and assigns,subject,however,to the provisions of the Lease on assignment.
Section 5
Governing Law.
This Memorandum and the Lease are governed by California law.
[signature page follows]
Site Number: IE04942B CA version 1.4.05
Site Name: SB516_Grand_Terrace_City_Hall
Market: California
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Executed as of the date first above written.
LANDLORD: City of Grand Terrace,a municipal
corporation
By:
Name:
Its:
Date:
r ,
LANDLORD:
By:
Name:
Its:
Date:
TENANT: Omnipoint Communications,Inc.,A
Delaware Corporation,A Subsidiary Of
T-Mobile USA,Inc.,a Delaware
Corporation
By:
Name: Rai Tank
Its: Area Director,Engineering
Date:
Site Number- IE04942B CA version 1.4.05
Site Name: S8516_Grand Terrace_City_Hall
Market: California
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EXHIBIT A
Description of the Premises
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The Premises are located on a portion of that certain real property located in the County of San Bernardino,State of California, '
being more particularly described as follows:
APN: 0276-202-82,-48,and-77
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Site Number: IE04942B CA version 1.4.05
Site Name: SB516_Grand_Terrace_City_Hall
Market: California
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State of California )
)SS.
County of )
On before me, ,personally appeared
personally known to
me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s)is/are subscribed to the
within instrument and'acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of
which the person(s)acted,executed the instrument.
WITNESS my hand and official seal.
Signature:
State of California )
)SS.
County.of )
On before me, ,personally appeared
personally known to
me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s)is/are subscribed'to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of
_ which the person(s)acted,executed the instrument.
WITNESS my hand and official seal.
Signature:
State of California ) `
)SS.
County of )
On before me, ,personally appeared
personally known to
me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s)is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of
which the person(s)acted,executed the instrument.
WITNESS my hand and official,seal.
Signature:
Site Number: IE04942B CA version 1.4.05
Site Name: SB516_Grand_Terrace_City_Hall
Market: California
STAFF REPORT
o -
�RHnD TERR CE City Manager's Office
CRA ITEM Q COUNCIL ITEM (X-)
MEETING DATE:,SEPTEMBER 22, 2005
SUBJECT: BLUE MOUNTAIN VILLAS - GROUND LEASE
FUNDING REQUIRED ()
NO FUNDING REQUIRED (x)'
The City of Grand Terrace owns the land on which the Blue Mountain Villas and Senior Center are
to be constructed. The.City proposes to lease the land to Corporation for Better Housing for the r
purpose of building the project: The nominal cost of one dollar per year is in effect donating the land
for the project which provides additional justification for obtaining an allocation.in the tax credit
financing program.
The lease outlines the guidelines for the operation of the project, fixes the use of the site, sets the
income and rent guidelines, and sets a minimum tenant qualifying age of 62 years. The lease also
sets forth maintenance and repair standards, capital reserve and improvement requirements,
indemnity and insurance requirements, and remedies in the event of a default.
The lease has been reviewed by Staff and the City Attorney.
STAFF RECOMMENDS:
Council authorize execution of the Ground Lease By and Between the City of Grand Terrace/Lessor
and Corporation for Better Housing/Lessee.
COUNCIL A(3—ENDA-I T En C30e
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GROUND LEASE
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By and Between
THE CITY OF GRAND TERRACE
CITY/LESSOR
and
CORPORATION FOR BETTER HOUSING
LESSEE
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DOCSOC\849072v9\22867.0016 Rev 08232005
GROUND LEASE
This GROUND LEASE(the"Lease") is made as of , 2005 by and between
the CITY OF GRAND TERRACE, a public body corporate and politic(the"City" or"Lessor"),and
CORPORATION FOR BETTER HOUSING, a California nonprofit affordable housing development
company (the "Developer" or"Lessee").
1. SUBJECT OF LEASE; DEFINITIONS.
The City of Grand Terrace hereby enters this Lease to further the goals and objectives of the
City and of the City of Grand Terrace Community Redevelopment Agency("Agency"),to effectuate
the Redevelopment Plan ("Redevelopment Plan") for the Grand Terrace Redevelopment Project(the
"Redevelopment Project"),which was originally adopted on by the
City Council of the City of Grand Terrace, and amended on
by providing for the lease of the "Site" (as hereinafter defined)to Lessee and the development and
operation thereon of certain improvements (the "Improvements"). Concurrently herewith the City of
Grand Terrace Community Redevelopment Agency is entering into a Regulatory Agreement to
further the Agency's goals and objectives identified in the Redevelopment Plan.
1.1 Definitions:
"Act"means the Community Redevelopment Law of the State of California,Health and
Safety Code Section 33000, et seq.
"Affiliate"means, when used with respect to a Person, any corporation, partnership,joint
venture, limited liability company, limited liability partnership,trust or individual controlled by,
under common control with, or which controls such Person (the term"control" for these purposes
shall mean the ability,whether by the ownership of shares or other,equity interests, by contract or
otherwise,to elect a majority of the directors of a corporation, or to make management decisions on
behalf of, or independently to select to the managing partner or, a partnership, or otherwise to have
the power independently to remove and then select a majority of those individuals exercising
managerial authority over an entity, and control shall be conclusively presumed in the case of the
ownership of 50%or more of the equity interests).
"Affiliated Person"means an entity formed for the purpose of constructing, owning, and
operating the Development,which [] may include tax credit investors as limited partners. It is
contemplated that Corporation for Better Housing will later form a Limited Partnership,wherein
CBH will be the Managing General Partner and the to-be-identified Tax Credit Investor will be the
Limited Partner. The City hereby agrees to execute the "Assignment and Assumption Agreement"to
allow the formation of the Partnership and syndication of the Project's Tax Credits.
"Affordable Rent" shall have the meaning set forth in Health and Safety Code Section 50053.
"Agency"means the City of Grand Terrace Community Redevelopment Agency, 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, and any assignee of or
successor to its rights,powers and responsibilities.
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"Agency DisbursementAmount"means an amount equal to the sum of Eight Million Four
Hundred Thousand and no/100 Dollars ($8,400,000.00)disbursed through escrow to CBH,pursuant
j to an Intercreditor Agreement in a form mutually agreeable to the Agency, City, Lenders,Lessee and
Tax Credit Investors.
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"Agency Executive Director"means the Executive Director of the Agency or his designee.
"Application Deadline"means the date(s) established by CDLAC and TCAC for the
2005/2006 funding rounds.
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"Area"means the area HUD identifies as regulating the Project Site.
"Audited Financial Statement"means an audited financial statement, including without
limitation a profit and loss statement, generated by a third party certified public accountant
acceptable to the City in its reasonable discretion, showing, for the previous Lease Year,on a
monthly basis and in an easily readable format, Gross Revenues, Operating Expenses, Debt Service,
Operating Reserve, Capital Replacement Reserve and Residual Receipts. Said audit shall be
delivered to City on or about May 1 ("Audit Date").
"Basic Concept Drawings"means those certain plans and drawings submitted to and
j approved by the City.
"Bond Regulatory Agreement"shall mean the regulatory agreement which it is contemplated
may be required to be recorded against the Site with respect to the issuance of multifamily housing
bonds in the event an allocation is obtained from CDLAC.
"Bond Rules"means Section 103(b) of the Internal Revenue Code,the rules and regulations
applied by CDLAC in connection with the private activity bond allocation or the issuance of bonds
thereunder and as set forth in the Indenture of Trust in connection with the issuance of the Bonds.
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"Bonds"means multi-family housing bonds.
"Capital Events" is defined in Section 5.4 hereof.
"Capital Replacement Reserve"means a reserve fund to be established by the Lessee as a
capital reserve in the amount not less than$250.00 per Lease Year per unit(e.g. 250 x 120=
$30,000)(for the first Lease Year),which shall increase from time to time as reasonably required by
the Permanent Lender. The Capital Replacement Reserve is more fully described in Section 10 of
this Lease.
"Certificate of Completion"means the document which evidences the Developer's
satisfactory completion of the Development.
"Certificate of Continuing Program Compliance"means adequate and reasonable
documentation required by the City and/or Agency to ensure Project Compliance.
"Chargeable Reserves"means each of the following,within the respective parameters
therefor set forth in this Lease: (i) Capital Replacement Reserve;and (ii) Operating Reserve.
"City"means the City of Grand Terrace, California, a California municipal corporation.
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"City Administrator"means the City Administrator or Manager of the City or his designee.
"Closing"means the day on which the Closing occurs.
"Commencement"means the commencement of this Lease.
"Commencement Date"means the date of Construction Loan closing.
"Construction Loan"means the mortgage loans obtained by the Developer from a state
agency or instrumentality or a reputable and established bank, savings and loan association, or other
similar financial institution for financing the development(but not the operation) of the Project, and
reimbursement obligations to approved lenders and Fannie Mae securing credit enhancement
facilities and a Fannie Mae one percent(1%) forward commitment deposit fee deed of trust, if the
Bonds are sold publicly.
"County" shall mean the County of San Bernardino, California.
"Date of Agreement"means the Commencement Date.
"Debt Service"means required debt service payments for the Primary Construction Loan
and/or the Primary Permanent Loan,Deferred Developer fee notes, and Partner loans, including the
funding obligations in respect of all reserves or escrows required thereunder.
"Default"means the failure of a party to perform any action or covenant required by this
Lease within the time periods provided herein following any applicable notice and opportunity to
cure period, as may be set forth herein.
"Design Development Drawings"means those plans and drawings to be submitted to City
for its approval.
"Developer"means Corporation for Better Housing.
"Development"means the new senior rental complex, community center, and associated
improvements required to be: (i) constructed by the Developer upon the Site,with related offsite
improvements, as more particularly described in the Scope of Development and(ii) operated as an
affordable housing complex for seniors in conformity with this Lease,the Agency Regulatory
Agreement,TCAC Regulatory Agreement and the Bond Regulatory Agreement.
"Executive Director"means the Executive Director of the Agency or his designee or
delegate.
"Fannie Mae"means Fannie Mae, a corporation organized and existing under the Federal
National Mortgage Association Charter Act, 1 U.S. C. Sections 1716, et seq., and its successors and
assigns.
"Governmental Requirements"means all laws, ordinances, statutes, codes, rules, regulations,
orders, and decrees of the United States,the state,the County,the City, or any other political
subdivision in which the Site is located, and of any other political subdivision, agency, or
instrumentality exercising jurisdiction over the Developer or the Site.
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"Gross Revenues"means the total rental income and all other revenues or income received
by the Lessee or its successors or assigns in connection with the Project,including without limitation
Housing Rent, laundry charges,parking and storage fees, cable income, and interest earnings,but,
jexcept for any interest earned thereon, does not include (i)the proceeds of the sale of Tax Credits to
finance the Development or(ii)refinancing proceeds (provided the refinancing is permitted by and is
accomplished in accordance with this Lease or(iii) insurance proceeds which are used to repair or
reconstruct the Project or condemnation proceeds).
"Hazardous Materials"means any substance, material, or waste which is or becomes
regulated by any local governmental authority,the County,the State of California, regional
governmental authority, or the United States Government, including,but not limited to, any material
or substance which is (i) defined as a"hazardous waste," "extremely hazardous waste," or"restricted
hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the
California Health and Safety Code,Division 20, Chapter 6.5 (Hazardous Waste Control Law)),
(ii) defined as a"hazardous substance"under Section 25316 of the California Health and Safety
Code,Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act),
iii defined as a"hazardous material," "hazardous substance," or"hazardous waste" under
Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous
Materials Release Response Plans and Inventory), (iv) defined as a"hazardous substance" under
Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground
j Storage of Hazardous Substances), (v)petroleum, (vi)friable asbestos, (vii) polychlorinated
byphenyls, (viii) listed under Article 9 or defined as"hazardous"or"extremely hazardous"pursuant
to Article 11 of Title 22 of the California Administrative Code,Division 4, Chapter 20,
(ix) designated as "hazardous substances"pursuant to Section 311 of the Clean Water Act(33 U.S.C.
§ 1317), (x) defined as a"hazardous waste"pursuant to Section 1004 of the Resource Conservation
and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903) or(xi) defined as"hazardous
substances"pursuant to Section 101 of the Comprehensive Environmental Response, Compensation,
and Liability Act, 42 U.S.C. § 6901 et seq.
j "Housing Authority"means the Housing Authority of the County of San Bernardino.
"Housing Fund"means the Agency's Low and Moderate Income Housing Fund, established
pursuant to Health and Safety Code Section 33334.3.
"Housing Rent" shall mean the total of monthly payments by the tenants of a Housing Unit
for(a) use and occupancy for the Housing Unit and facilities associated therewith, (b) any separately
charged fees or service charges assessed by the Developer which are required of all tenants of the
Housing Units, other than security deposits, (c)a reasonable allowance for utilities not included in
(a) or(b) above, including garbage collection, sewer,water, electricity and gas, as determined by
regulation of the Housing Authority pursuant to 24 CFR Part 813 and(d)possessory interest,taxes or
other fees or charges assessed for the use of the Housing Units and facilities associated therewith by
a public or private entity other than the Developer.
"Housing Units"means the one hundred twenty (120) individual residential units within the
Development to be constructed and operated by the Developer on the Site, as provided in the Scope
of Development, but excluding therefrom one unit which the Lessee may develop and make available
to an on-site manager.
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"HUD"means the United States Department of Housing and Urban Development or its
successor(s).
"Improvements"means all improvements required to be accomplished by the Developer, as
more fully described in the Scope of Development.
"Income Verification"means the Income Verification in the form acceptable to the City,
Agency and Developer.
"Lease"means this Ground Lease,which may also be referred to as the "City Lease."
"Lease Year"means the period commencing as of Commencement Date and ending as of
December 31 of that calendar year,then each calendar year thereafter.
"Lower Income Household"shall mean a household earning not greater than eighty
percent(80%) of median income for the Area as set forth by regulation of the California Department
of Housing and Community Development,pursuant to Health and Safety Code Section 50079.5.
"Lower Income Units"means Units available to and occupied by Lower Income Households.
"Median Income"means the median income for the Area as most recently determined by the
Secretary of Housing and Urban Development under Section 8 of the United States Housing Act of
1937, as amended, or, if programs under Section 8 are terminated, Median Income for the Area
determined under the method used by the Secretary prior to such termination.
"Memorandum of Lease"means a form Memorandum of Lease acceptable to all parties to
this transaction,which shall be recorded with the County Recorder at Closing.
"Net Operating Income"means Gross Revenues, less Operating Expenses, and further less
Debt Service.
"Notice"shall mean a notice in the form prescribed.
"Operating Expenses" means for any period the sum of the following expenses reasonably
incurred and actually paid during that period, including actual,reasonable and customary costs, fees
and expenses directly attributable to operation, maintenance,taxes and management of the Project,
including,without limitation,the following(all of which are deemed customary and reasonable):
onsite administrative costs (including materials and labor);payments to an operating reserve account;
payments to a replacement reserve account, subject to annual increases by the annual percentage
increase as reasonably determined by the tax credit investor, not to exceed 3.5%per year;painting,
cleaning,repairs and alterations; landscaping; utilities; rubbish removal; certificates,permits and
licenses; sewer charges; costs incurred to third parties in connection with generating laundry charges
(but in no event to exceed the laundry charges);maintenance of the storage facilities; real and
personal property taxes and assessments; insurance; security; advertising,promotion and publicity;
office,janitorial,cleaning and building supplies;the actual and customary salary payable to any on-
site personnel; internet service, cable television, satellite and similar facilities;recreational amenities
supplies, utility charges, services, a property management fee (excluding salaries and benefits
payable to any on-site personnel), not to exceed eight percent(8)%of Gross Income;purchase,
repair, servicing and installation of appliances, equipment,fixtures and furnishings other than from
reserves; and fees and expenses of accountants, attorneys, consultants and other professionals,
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including annual audits and tax return preparation costs payable to a third party;the deferred
Developer's fee; an annual partnership asset fee, which may be increased annually by the annual
percentage increase in the CPI; an annual asset management fee of Five Thousand Dollars ($5,000),
which may be increased annually by the annual percentage increase in the CPI, but which may only
be paid for 15 years following the issuance of a Certificate of Completion. Notwithstanding the
foregoing, Operating Expenses shall not include: (i)non-cash expenses, including without limitation,
depreciation(ii) payments made from insurance or condemnation proceeds or any costs or expenses
paid or reimbursed by others (iii) funds expended from replacement reserves; (iv)the initial cost of
constructing the Improvements, less apprised cost increases, or any expansion or replacements
thereof; (v) any penalties or interest resulting from the Developer's failure to pay when due any sums
that the Developer is obligated to pay to third parties (e.g.,penalties and interest for late payment of
real property taxes); (vi) debt service or other payments in connection with financing.
"Operating Reserve"means a reserve fund to be established by the Lessee as a reserve for
operating expenses in the amount to be determined by the Permanent Lender.
"Partners or Proposed Partners"means Corporation for Better Housing, (Managing General
Partner); Lynx Realty&Management,LLC (Administrative General Partner); and Simpson Housing
Solutions,LLC, (Tax Credit Investor),Limited Partner. The Partners are identified for illustration
only and subject to change with the approval of the City Manager.
"Permanent Loan"means the mortgage loan obtained by the Developer from a state agency
or instrumentality or a reputable and established bank, savings and loan association, or other similar
financial institution, and reimbursement obligations to approved lenders and Fannie Mae securing
credit enhancement facilities and a Fannie Mae one percent(1%) forward commitment deposit fee
deed of trust, if the Bonds are sold publicly. Additionally,the Permanent Loan will include any
Deferred Developer Fee note(s) and any Partner Loans, if either should occur.
"Person"means an individual, estate,trust,partnership, corporation, limited liability
1 company, limited liability partnership, governmental department or agency or any other entity which
has the legal capacity to own property.
"Prescribed Rent Levels" means rent that is Affordable Rent for households at the following
income levels: (i) forty-seven (47) one-bedroom units and eight(8)two-bedroom units, at or below
fifty percent(50%) of Area Median Income; and(ii) forty-six (46) one-bedroom units and seven(7)
two-bedroom units, at or below sixty percent(60%) of Area Median Income (less one unrestricted
manager's unit),the balance of the 120 units, (a)ten (10) one bedroom units and (b)two (2)two
bedroom units, shall be rented at market rent and shall not be regulated by HUD, CDLAC, or TCAC
or HCD.
Principal"means Mary Silverstein, on behalf of CBH; Charles Brumbaugh, on behalf of
Lynx Realty &Management, LLC.
"Project" means the multi-family residential rental housing development located on the Site
to be constructed and operated by the Developer pursuant to this Lease.
"Project Facilities"means the buildings, structures and other improvements located on the
Site, and all fixtures and other property owned, leased or licensed by the Developer and located on,
or used in connection with, such buildings, structures and other improvements.
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"Property"means real property located in Grand Terrace,California,which real property,is
more particularly described in Exhibit"A"attached hereto.
"Property Manager"means the person or organization responsible for the management and
operation of the Project,the reasonable approval of which by the City shall be required,and which
shall initially be The John Stewart Company, or another manager mutually acceptable to the City
and/or Agency and the Lessee.
"Redevelopment Plan"means the Redevelopment Plan for the Redevelopment Project, as
originally adopted by the City Council of the City and amended from time to time, if any, is
incorporated herein by reference.
"Redevelopment Project"means the.Grand,Terrace Redevelopment Project,adopted by the
City pursuant to the Redevelopment Plan(as amended through the date of this Lease).
"Regulatory Agreement" shall mean the Regulatory Agreement which is to be"recorded
against-the Site, in the form satisfactory to all parties.
"Related Entity"means a Principal or an entity in which any interest,is-held by the
Developer or one or more of the Principals.
"ReportingAmount(s)"means the sum of Fifty Hundred Dollars ($50.00)per unit per year
for each dwelling unit as to which Lessee fails to deliver to Agency, during any Lease Year, a full and adequate report that conforms to Section 33418 of the California Health and Safety-Code.
"Required Covenant Period"shall mean the duration of the affordable housing requirements
which are set forth in this Lease.
"Residual Receipts"for a particular Lease Year means Gross Revenues for the .
corresponding Lease Year less (i)Debt Service payments made during such Lease Year on the
Construction Loan or the Permanent Loan, including payments under escrow and'reserve provisions -
thereunder in amounts not in excess of the amounts due and payable during such month or year(and
not including prepayments), and(ii),the sum of Operating Expenses and,to the extent furided,.
Chargeable Fees and Reserves made during the corresponding Lease Year. All calculations of
Residual Receipts shall be made annually,on or before May 1 for the preceding Lease Year, and the
components thereof shall be subject to verification.and approval, on an annual basis, based:upon
conformity with the-terms of the Lease,by'the City and/or Agency.
"Rent" is One Dollar per year defined in Section 5.2.3 of this Lease.
"Schedule of Performance"means the attachment to the Lease entitled"Schedule of
Performance".
"Scope of Development"means that attachment entitled Scope of Development which -
describes the.scope, amount, and quality of the Development-to be constructed by the Developer.
The Scope of Development is subject to revision.
"Seniors"means those persons meeting the qualifications as set-forth in the Fair Housing
Act,42 U.S.C. § 3601, et seq., and 24 CFR 100.300 et seq., and Sections 51.3 and 51.4 of the
California Civil Code, as applicable. At least one•occupant for each Unit shall be sixty-two (62)
years or older and,to,the greatest extent permitted by law, all occupants shall be sixty-two (62)years
or older.
"Site or Property"means that certain real property which is described in the Site Legal
Description and depicted on the Site Map.
"Site Legal Description"means the description of the Site which is attached hereto and
incorporated herein.
"Site Map"means the map of the Site which is attached hereto and incorporated herein.
"Tax Credit Rules"means Section 42 of the Internal Revenue Code and/or California
Revenue and Taxation Code Sections 17057.5, 17058,23610.4 and 23610.5 and California Health
and Safety Code Section 50199, et seq., and the rules and regulations implementing the foregoing.
"Tax Credits"shall mean 4%Low Income Tax Credits granted pursuant to Section 42 of the
Internal Revenue Code and/or California Revenue and Taxation Code Sections 17057.5, 17058,
23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq.
"TCAC"means the California Tax Credit Allocation Committee.
"Term" or"Term of the City Lease"means that approximately sixty-five (65)year period as
so described in this Lease. The Term consists of sixty-four(64) complete calendar years plus one
complete or partial year(depending upon the Commencement Date).
"Title Company"means Chicago Title Company or another mutually acceptable title insurer.
"Title Policy"means the policy of title insurance to be provided to the Developer for its
leasehold interest.
"Title Report"means the preliminary title report for the Site.
"Unit"means each of the one hundred twenty (120) dwelling units required to be developed
by the Developer under this Lease.
"Very Low Income Household"shall mean a household earning not greater than fifty percent
(50%) of median income for the Area, as set forth by regulation of the California Department of
Housing and Community Development,pursuant to Health and Safety Code Section 50105.
"Very Low Income Units"means Units available to and occupied by Very Low Income
Households.
"Year"means a fiscal year beginning as of January 1 and ending December 31 of the same
calendar year or such other annual period as may be mutually agreed to by City and Lessee.
2. LEASE OF THE SITE.
City,for and in consideration of the Low Income Rents, covenants, and agreements
hereinafter reserved and contained on the part of Lessee to be paid,kept,performed and observed by
Lessee, hereby leases to Lessee, and Lessee hereby leases from City, that certain real property in the
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City of Grand Terrace (the"City") shown on the"Site Map"-attached hereto as Exhibit"A" and
incorporated herein by this reference,and having the legal description in the"Site Description"
attached hereto as Exhibit"B" and incorporated herein by this reference (the "Site"). Except as
expressly provided to the contrary in.this Lease,reference to the Site is to the described.land,
exclusive of any improvements now or hereafter located on the land,notwithstanding that any such
improvements may or shall be construed as,affixed to and as constituting part of the real property.
3. LEASE TERM:'
Lessee shall lease the Site from City and City sha11 lease the Site.to Lessee for a term
t commencing on (the"Commencement Date") and continuing for a period of
sixty-five'(65)years thereafter(the"'Tenn"), unless sooner terminated as provided for herein.
4. USE OF THE SITE.
4.1 Use of the Site. Lessee covenants and agrees for itself, its successors and assigns,
that during the'Term,the'Lessee shall,.by the respective times.established therefor in the Schedule of -
Performance, commence and complete the Development in.conformance with the approved.Design
Development Drawings, all applicable laws and,to the extent applicable, and thereafter the Site and
the Improvements shall be devoted to those uses as-set forth in.the Lease and the Redevelopment
.Plan. Lessee shall apply for and obtain all necessary permits,,and shall complete the Improvements
as provided. In the event of any inconsistency between this Lease or the Redevelopment'Plan,the
most restrictive of the documents shall control.
4.2 Management. Lessee shall manage or cause the Site and the Improvements to be
managed'in a prudent and business-like manner, consistent with other newly-constructed rental
housing projects for Seniors,.including market rate projects, in'San Bernardino-County, California,,
and in conformity with the Regulatory Agreement.,
Lessee has contracted with a management company or manager, which may, be an affiliate of
Lessee,to operate andmaintain-the Site and the Improvements in accordance with the tel of this
Lease(hereinafter"Property Manager"or"Management,Company");the selection and hiring of such
management company was subject to, and the selection of any other manager shall be subject to,
approval by City and/or Agency.
The Lessee shall submit for the approval of the,City and.Agency a"Management Plan"
which sets forth the duties.of the Property Manager.
Lessee shall'submit or shall"cause its Property Managerto submit to the City and Agency,
and each anniversary thereof, an annual'budget for the ongoing operation of the Project.,Each of the
Lessee'and the Agency shall cause its•respective representatives)to meet during the thirty (30)days.
following the receipt of the annual budget to review the budget;such review'is without obligation to
either party to propose or agree to any modification of permitted Operating Expenses.
- In the event of"Gross Mismanagement"(as that term is defined below) of the Improvements,
City shall have the authority to require that such Gross Mismanagement cease immediately, and
further to require the immediate replacement of the Property Manager if such condition is not
corrected after expiration•of sixty(60).days from the.date of written notice to all Partners from City.
For purposes of this Lease,the term"Gross Mismanagement" shall mean management of the
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jImprovements in a manner which violates the terms and/or intention of this Lease to operate a quality
affordable housing complex, and shall include,'but is not limited to,the following:
Leasing to tenants not in conformity with the Prescribed Income Levels;
f Leasing to tenants who-are not Seniors;
Allowing the tenants to exceed the prescribed-occupancy levels without taking.immediate
action to stop such overcrowding;
Under funding the-prescribed Capital Replacement or Operating Reserves (Sections 10.8 and
10.9) notwithstanding the generation of cash flow adequate to fully fund such Reserves in -
conformity with this Lease prior to the disbursement of Residual Receipts to Lessee;
Failing to timely maintain the Improvements and the Site in accordance with the
! Management Plan and the manner prescribed in Section 10;
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Failing to submit timely and/or adequate annual Section 33418 reports as required in
Section 6.6;
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Fraud or embezzlement of Improvements moneys; and
Repeatedly failing to fully cooperate with the local law and code enforcement office'in
maintaining a crime free environment on the Site.
Notwithstanding the above,Lessee shall use its best efforts to correct any defects in
management at the earliest feasible time and, if necessary,to replace the management company prior
to the elapsing of such time period. Further, if General Partner(s)fail to take action,City shall allow
the Limited Partner a reasonable time to remove General Partner and cure the Gross Management.
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City and Limited Partner shall'Meet and agree on an action plan to rrect such Gross Management
within 15 days after the General Partner failed to correct the Gross Management and the Default has
! occurred hereunder.. City,agrees to stand still and cooperate with Limited Partner so long as Limited
Partner progresses on the agreed upon action plan. Further, City agrees to provide any and all notices
of default to the Limited Partner, its assigns or delegates. Limited Partner's cure rights will be more
! formally annunciated in the various Project Agreements after the Partnership Agreement is formed
and the Tax Credit Investor(Limited Partner) is identified.
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4.3 Only Lawful Uses Permitted. Lessee shall not use the'Site or the Improvements for
any purpose that is in violation of any law, ordinance or regulation of any federal, state,county or
local governmental agency, body or entity. Furthermore,Lessee shall not maintain or commit any
nuisance or unlawful conduct(as now or hereafter defined by any applicable statutory or decisional
law) on the Site or the Improvements, or any part thereof.
j 5. RENT.
5.1 Rent. During;each Lease Year during the Term,Rent shall be$1.00 per year.
5.2 Payment of Rent. All rent that becomes due and payable pursuant to this Lease shall
be paid to City at the address of City listed in Section 26.7 or such,other place as City may from time
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to time designate by written notice to the Lessee without notice or demand, and without setoff,
counterclaim, abatement, deferment, suspension or deduction.
6. AFFORDABLE HOUSING REQUIREMENTS.
6.1 Number of Affordable Units. Lessee agrees to make available, restrict occupancy
to, and rent one hundred and eight(108)minus the manager's unit(the "Required Affordable Units")
of the one hundred eighty(120) units to be located on the Site(the"Housing Units")to be available
at an Affordable Rent. All Units shall be rented to Seniors, except the manager's unit. Rental of the
Required Affordable Units shall conform to the Prescribed Rent Levels.
In the event the Lessee charges rents for one or more of the Required Affordable Units which
exceed Affordable Rent,the Lessee shall promptly, and without necessity of notice or request
therefor by the City, correct such rent. Any penalties arising from the charging of rents which exceed
Affordable Rent shall be paid solely by Lessee.
6.2 Duration of Affordability Requirements. The Housing Units shall be subject to the
requirements-of this Section 6 for the Term of this Lease. The duration of this requirement shall be
known as the "Affordability Period."
6.3 Selection of Tenants. Lessee shall be responsible for the selection of tenants for the
Housing Units in compliance with the criteria set forth in this Section 6 of this Lease. Preference
shall be given to tenants who have been displaced by redevelopment activities of City in the
implementation of the Redevelopment Plan.
6.3.1 Senior Housing. Except for the Manager's unit, all of the Housing Units
shall be occupied by Seniors, consistent with all applicable requirements as set forth in the Fair
Housing Act, 42 U.S.C. § 3601, et seq., and 24 CFR 100.300 et seq., and Sections 51.3 and 51.4 of
the California Civil Code, as applicable. At least one person per Housing Unit shall be sixty-two
(62)years or older and,to the greatest extent permitted by law, all occupants shall be sixty-two (62)
years or older.
6.4 Income of Tenants. Prior to the rental or lease of any Lower Income Unit to a
tenant, and annually thereafter,the Lessee shall submit to City or its designee, at Lessee's expense, a
completed income computation and certification form, in a form to be provided by City. Each tenant
shall be a Very Low Income Household or a Lower Income Household which meets the eligibility
requirements established for the Lower Income Unit, and Lessee shall obtain a certification from
each tenant leasing a Lower Income Unit which substantiates such fact. Lessee shall verify the
income certification of the tenant.
In the event a household's income initially complies with the corresponding income
restriction (for a Very Low Income Household or a Lower Income.Household,whichever is
applicable) but the income of such household increases, such increase shall not be deemed to result in
a violation by Lessee of the restrictions of this Lease concerning limitations upon income of
occupants.
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6.5 Determination of Affordable Rent for the Required Affordable Units. Each
Required Lower Income Unit shall be rented at an"Affordable Rent"to be established as provided
herein:
(a) The maximum monthly rental amount for the Required Lower
Income Units to be rented to Very Low Income Households shall be established at one-twelfth (1/12)
of thirty percent(30%) of fifty percent(50%) of San Bernardino County median income for a
household of a size appropriate to the Housing Unit.
(b) The maximum monthly rental amount for the Required Lower _
Income Units to be rented to Lower Income Households shall be established at one-twelfth (1/12) of
thirty percent(30%) of sixty percent(60%) of San Bernardino County median income for a
household of a size appropriate to the Housing Unit.
"Household size appropriate to the unit," for the purpose of the calculation of rent herein
(and without regard to actual occupancy), shall mean two persons for each one bedroom unit and
three persons for each two bedroom unit. The maximum monthly rental amount of the Housing
Units shall be adjusted annually by the formula set forth above upon the promulgation of revised San
Bernardino County median income figures by regulation of the California Department of Housing
and Community Development. Actual rent charged may be less than such maximum rent.
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6.6 Verifications.
(a) Income Verification. Lessee shall verify the income of each
proposed and existing tenant of the Lower Income Units.
(b) Annual Reports. Following the issuance of the Certificate of
I Completion, and on or before May 1 of each Lease Year,Lessee shall submit to City or its designee
the reports required pursuant to Health and Safety Code Section 33418, as the same may be amended
from time to time,with each such report to be in the form prescribed by City. Each annual report
shall cover the immediately preceding Lease Year.
In addition, commencing on May 1, in the year after the Project is placed in Service, and
continuing on each May 1 thereafter during the Term,the Developer shall submit an Audited
Financial Statement for the previous Lease Year(or portion thereof), including all funds from
whatever source provided to the Lessee or any Related Entity in connection with the Project(Audit
` Date). The Audited Financial Statement shall demonstrate ongoing compliance with this Lease,
including without limitation Section 5.2.2 hereof.
The Lessee shall maintain on file each tenant's executed lease and Income Verification and
rental records for the Project and the Lower Income Units. The Lessee shall maintain complete and
accurate records pertaining to the Very Low Income Units,the Lower Income Units, and any other
Units and will permit any duly authorized representative of the City to inspect the books and records
of the Lessee pertaining to the Project, including those records pertaining to the occupancy of the
Very Low Income Units,the Lower Income Units, and any other units. The Lessee shall prepare and
submit to the City annually commencing [April 15, 2007] and continuing throughout the Term, a
Certificate of Continuing Program Compliance. Such documentation shall state for each unit in the
Project the unit size,the rental amount,the number of occupants, and the income of the occupants
and any other information which may be used to determined compliance with the terms of this Lease.
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6.7 Regulatory Agreement. The Lessee shall execute, acknowledge, and deliver to
Agency a"Regulatory Agreement,"to be recorded with respect to the Site in the official records of
San Bernardino County, California. The Lessee shall comply with the Regulatory Agreement. The
Regulatory Agreement is subject to notification (which amendment shall have the same priority as
the Regulatory Agreement)to conform to the number of Units regulated by the Bond Regulatory
Agreement if that number is greater than originally provided in the Regulatory Agreement. The
Regulatory Agreement and this Lease shall be construed to be consistent to the greatest feasible
extent. In the event of any express conflict,this Lease shall control over the Regulatory Agreement.
} 7. UTILITIES AND TAXES.
7.1 Utilities. Lessee shall pay or cause to be paid all utility and related costs for the
Housing Units. Lessor shall pay or cause to be paid all utility and related costs for the community
center.
7.2 Real Estate Taxes. Lessee shall pay or cause to be paid all real estate taxes and
related costs. It is the intent of the parties hereto that the rent provided herein shall be net to City and
that Lessee shall pay the costs, taxes, charges, and expenses against the Housing Units which may
arise or become due during the Term, and which, except for execution hereof,would or could have
been payable by City.
7.3 Personal Property. Lessee covenants and agrees to pay before delinquency all
personal property taxes, assessments and liens of every kind and nature upon all personalty as may be
owned by Lessee and from time to time situated within the Site and any Improvements.
8. OWNERSHIP OF IMPROVEMENTS,FIXTURES AND FURNISHINGS.
8.1 Ownership During Term. All Improvements constructed on the Site by Lessee as
permitted by this Lease shall, during the Term, be and remain the property of Lessee;provided,
however, that Lessee shall have no right to waste the Improvements, or to destroy, demolish or
remove the Improvements except as otherwise permitted pursuant to this Lease; and provided further
that Lessee's rights and powers with respect to the Improvements are subject to the terms and
limitations of this Lease. City and Lessee covenant for themselves and all persons claiming under or
through them that the Improvements are real property.
8.2 Capital Events. The Lessee shall make payments of Rent to the City. In addition, in
the event of(i) a sale, assignment or transfer of the Development or(ii)the refinancing of the
Development in an amount greater than the outstanding balance of a loan existing as of the time of
such refinancing,the Developer shall treat all such excess proceeds (less 10%processing fee) as
Residual Receipts and distribute those Receipts as required. Lessee and Lessor agree that, should a
refinancing occur seventeen years from the Commencement Date,the Parties hereto agree that a
portion or all of the excess proceeds may be used to refurbish the Project, if reasonably necessary.
8.3 Ownership at Termination. Upon termination of this Lease, whether by expiration
of the Term or otherwise,all Improvements, fixtures and furnishings shall,without compensation to
Lessee,then become City's property, as is at the time of the termination of the Lease.
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9. MECHANICS LIENS; FAITHFUL PERFORMANCE.
Lessee shall not suffer or permit any mechanics' or materialmen's liens to be enforced
against the fee simple estate in reversion of City as to the Site and Improvements, nor against
Lessee's leasehold interest therein by reason of work, labor, services or materials supplied or claimed
to have been supplied to Lessee or anyone holding the Site and the Improvements, or any part
thereof,through or under Lessee, and Lessee agrees to defend, indemnify, and hold City, Agency and
their respective officers, officials, employees, agents, and representatives, harmless against such
liens. If any such lien shall at any time be filed against the Site or any Improvements, Lessee shall,
i within thirty (30) days after notice to Lessee of the filing thereof, cause the same to be discharged of -
record; provided, however,that Lessee shall have the right to contest the amount or validity, in whole
j or in part, of any such lien by appropriate proceedings but in such event, Lessee shall notify City and
promptly bond such lien in the manner authorized by law with a responsible surety company
qualified to do business in the State of California or provide other security acceptable to City. Lessee
shall prosecute such proceedings with due diligence. Nothing in this Lease shall be deemed to be,
nor shall be construed in any way to constitute, the consent or request of City,express or implied, by
inference or otherwise,to any person,firm or limited partnership for the performance of any labor or
the furnishing of any materials for any construction,rebuilding, alteration or repair of or to the Site,
the Improvements, or any part thereof. Prior to commencement of construction of the Improvements
on the Site, or any repair or alteration thereto having a cost in excess of$10,000,Lessee shall give
City not less than thirty(30) days advance notice in writing of intention to begin said activity in order
that non-responsibility notices may be posted and recorded as provided by State and local laws.
10. MAINTENANCE AND REPAIR; CAPITAL REPLACEMENT RESERVE.
j Lessee agrees to assume full responsibility for the management, operation and maintenance
of the Improvements and the Site throughout the Term without expense to City, and to perform all
repairs and replacements necessary to maintain and preserve the Improvements and the Site in good
j repair, in a neat, clean, safe and orderly condition reasonably satisfactory to City and in compliance
with all applicable laws. Lessee agrees that City shall not be required to perform any maintenance,
repairs or services or to assume any expense in connection with the Improvements and the Site.
Lessee hereby waives all rights to make repairs or to cause any work to be performed at the expense
of City as provided for in Section 1941 and 1942 of the California Civil Code.
The following standards shall be complied with by Lessee and its maintenance staff,
contractors or subcontractors:
(1) Lessee shall maintain the Improvements, including
individual Affordable Units, all common areas, all interior and exterior facades, and
all exterior project site areas, in a safe and sanitary fashion suitable for a high quality,
rental housing project. The Lessee agrees to provide utility services, administrative
services, supplies, contract services, maintenance, maintenance reserves, and
management for the Housing Units including interior tenant spaces, common area
spaces and exterior common areas. The services provided by the Lessee shall
include, but not be limited to,providing all common area electricity, gas,water,
television, cable television,property,fire and liability insurance in the amounts set
forth in this Lease, all property taxes and personal property taxes, any and all
assessments, maintenance and replacement of all exterior landscaping, and all
administration and overhead required for the property manager.
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(2) Landscape maintenance shall include, but not be
limited to: watering/irrigation; fertilization; mowing, edging, and trimming of grass;
tree and shrub pruning;trimming and shaping of trees and shrubs to maintain a
healthy,natural appearance and safe road conditions and visibility, and optimum
irrigation coverage; replacement, as needed, of all plant materials; control of weeds in
all planters, shrubs, lawns, ground covers, or other planted areas; and staking for
support of trees.
(3) Clean-up maintenance shall include, but not be limited
to: maintenance of all private paths,parking areas, driveways and other paved areas
in clean and weed-free condition; maintenance of all such areas clear of dirt,mud,
trash, debris or other matter which is unsafe or unsightly; removal of all trash, litter
and other debris from improvements and landscaping prior to mowing; clearance and
cleaning of all areas maintained prior to the end of the day on which the maintenance
operations are performed to ensure that all cuttings,weeds, leaves and other debris
are properly disposed of by maintenance workers.
(4) The Improvements shall be maintained in
conformance and in compliance with the approved construction and architectural
plans and design scheme, as the same may be amended from time to time with the
approval of the City(and Agency, if such approval is required).
(5) All maintenance work shall conform to all applicable
federal and state Occupation Safety and Health Act standards and regulations for the
performance of maintenance.
(6) Any and all chemicals,unhealthful substances, and
pesticides used in and during maintenance shall be applied only by persons in strict
accordance with all governing regulations.
(7) Parking lots, lighting fixtures,trash enclosures, and all
areas shall be kept free from any accumulation of debris or waste materials by
regularly scheduled maintenance.
(8) Lessee shall, or shall cause the Property Manager to,
set aside in an Operating Reserve,which shall be maintained as a separate interest-
bearing trust account, in an amount as prescribed under the Primary Permanent Loan.
To the extent this Lease requires that an Operating Reserve be funded at a level in
excess of that required under the Primary Permanent Loan, such excess amount shall
be funded by Lessee from Residual Receipts. Lessee shall provide, on not less than
an annual basis, evidence reasonably satisfactory to City of compliance herewith, and
shall thereafter cause such amount to be retained in the Operating Reserve,to cover
shortfalls between Improvements income and actual project operating expenses. The
Operating Reserve shall be replenished to the full amount prior to any further
disbursement of Residual Receipts to the Lessee. Any moneys in such Operating
Reserve which are not expended as of the termination of this Lease shall be treated as
Residual Receipts.
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(9) Lessee shall also, or cause the Property Manager or
permanent lender to, commencing as of the first month following the first anniversary
of the completion of the first Housing Unit(as such completion is evidenced by the
issuance of a certificate of occupancy by the City as to the corresponding building)
set aside the Capital Replacement Reserve. The Capital Replacement Reserve shall
be deposited into a separate interest-bearing trust account. Funds in the Capital
Replacement Reserve shall be used for capital replacements to the Improvements'
fixtures and equipment which are normally capitalized under generally accepted
accounting principles. As capital repairs and improvements of the Project become
necessary,the Capital Replacement Reserve shall be the first source of payment -
therefor;provided,however,that Lessee may first use other funds for payment with
the prior consent of City,which approval shall not be unreasonably withheld. The
non-availability of funds in the Capital Replacement Reserve does not in any manner
relieve Lessee of the obligation to undertake necessary capital repairs and
improvements and to continue to maintain the Site in the manner prescribed in this
Section 10. Lessee, at its expense, shall submit to City on not less than an annual
basis an accounting for the Capital Replacement Reserve. Any amounts of the
Capital Replacement Reserve in excess of the level of such reserve required by the
Primary Permanent Lender shall be funded from Residual Receipts. Any moneys in
the Capital Replacement Reserve which are not expended as of the termination of this
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Lease shall be treated as Residual Receipts.
Capital repairs to and replacement of the Improvements shall include only those items with a
long useful life, including without limitation the following:
(b) Appliance replacement;
(c) Hot water heater replacement;
(d) Plumbing fixtures replacement, including tubs and showers,
toilets, lavatories, sinks, faucets;
(e) Air conditioning and heating replacement;
(f) Concrete or Asphalt replacement;
(g) Roofing replacement;
(h) Landscape tree replacement and irrigation pipe and controls
replacement;
(i) Gas line pipe replacement;
0) Lighting fixture replacement; and
(k) Miscellaneous motors and blowers.
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11. ENVIRONMENTAL MATTERS.
11.1 Definitions. For the purposes of this Lease, unless the context otherwise specifies or
requires, the following terms shall have the meanings herein specified:
(a) The term"Hazardous Materials" shall mean any substance,
material, or waste which is or becomes regulated by any local governmental authority,the County of
San Bernardino,the State of California,regional governmental authority or the United States
Government, including, but not limited to, any material or substance which is(i) defined as a
"hazardous waste,""extremely hazardous waste," or"restricted hazardous waste" under
Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and
Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a"hazardous
substance"under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8
(Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a."hazardous
material," "hazardous substance," or"hazardous waste"under Section 25501 of the California Health
and Safety Code,Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and
Inventory), (iv) defined as a"hazardous substance"under Section 25281 of the California Health and
Safety Code,Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances),
(v)petroleum, (vi) friable asbestos, (vii)polychlorinated byphenyls, (viii) listed under Article 9 or
defined as "hazardous" or"extremely hazardous"pursuant to Article 11 of Title 22 of the California
Administrative Code, Division 4, Chapter 20, (ix) designated as"hazardous substances"pursuant to
Section 311 of the Clean Water Act(33 U.S.C. §1317), (x) defined as a"hazardous waste"pursuant
to Section 1004 of the Resource Conservation and Recovery Act,42 U.S.C. §6901 et'seq. (42 U.S.C.
§6903) or(xi) defined as "hazardous substances"pursuant to Section 101 of the Comprehensive
f Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 et seq.
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(b) The term"Hazardous Materials Contamination" shall mean
the contamination(whether presently existing or hereafter occurring) of the improvements, facilities,
soil, groundwater, air or other elements on, in or of the Site by Hazardous Materials, or the
contamination of the buildings, facilities, soil, groundwater, air or other elements on, in or of any
other property as a result of Hazardous Materials at any time (whether before or after the Date of
Lease) emanating from the Site.
(c) The term"Governmental Requirements" shall mean all past,
present and future laws, ordinances, statutes, codes,rules, regulations, orders and decrees of the
United States,the state,the county,the city, or any other political subdivision in which the Site is
located, and any other state, county, city,political subdivision, agency, instrumentality or other entity
exercising jurisdiction over City,Lessee or the Site.
11.2 Site Evaluation. Lessee assumes any and all responsibility and Liabilities (as
defined in Section 11.3 of this Lease) for all Hazardous Materials Contamination of the Site which
occurs during the Term of this Lease or extension thereof.
11.3 Indemnification; Lessee's Indemnity. Lessee shall save,protect, defend, indemnify
and hold harmless City,Agency and its officers, officials, employees, and agents from and against
any and all liabilities, suits, actions, claims, demands,penalties, damages (including,without
limitation,penalties,fines and monetary sanctions), losses, costs or expenses (including, without
limitation, consultants' fees, investigation and laboratory fees, reasonable attorneys' fees and
remedial and response costs) (the foregoing are hereinafter collectively referred to as"Liabilities")
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which may now or in the future be incurred or suffered by City and its officers, officials, employees,
or agents by reason of, resulting from, in connection with, or arising in any manner whatsoever as a
direct or indirect result of the presence on or under, or escape, seepage, leakage, spillage, dischar
p P e g ,
emission or release from the Site of any Hazardous Materials or Hazardous Materials Contamination
after the commencement of this Lease, including any Liabilities incurred under any Governmental
Requirements relating to such Hazardous Materials or Hazardous Materials Contamination. Lessee's
obligations under this Section 11.3.1 shall survive the expiration of this Lease and shall not merge
with any grant deed.
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11.4 Duty to Prevent Hazardous Material Contamination. Lessee shall take all -
necessary precautions to prevent the release of any Hazardous Materials into the environment. Such
precautions shall include compliance with all Governmental Requirements with respect to Hazardous
Materials. In addition,Lessee shall install and utilize such equipment and implement and adhere to
such procedures as are consistent with the standards generally applied by apartment complexes in
San Bernardino County, California as respects the disclosure, storage, use, removal, and disposal of
Hazardous Materials.
11.5 Obligation of Lessee to Remediate Premises. Notwithstanding the obligation of
Lessee to indemnify City and Agency pursuant to Section 11.3 of this Lease,Lessee shall, at its sole
cost and expense,promptly take(i)all actions required by any federal, state, regional, or local
G governmental agency or political subdivision or any Governmental Requirements and (ii) all actions
necessary to make full economic use of the Site for the purposes contemplated by this Lease, which
requirements or necessity arise-from the presence upon, about or beneath the Site of any Hazardous
Materials or Hazardous Materials Contamination no matter when occurring. Such actions shall
include, but not be limited to,the investigation of the environmental condition of the Site,the
preparation of any feasibility studies or reports and the performance of any cleanup,remedial,
removal or restoration work. Lessee shall take all actions necessary to promptly restore the Site to an
environmentally sound condition for the uses contemplated by this Lease,notwithstanding any lesser
standard of remediation allowable under applicable Governmental Requirements.
11.6 Storage or Handling of Hazardous Materials. Lessee, at its sole cost and expense,
l shall comply with all Governmental Requirements for the storage,use,transportation, handling and
disposal of Hazardous Materials on or about the Site. In the event Lessee does store, use,transport,
handle or dispose of any Hazardous Materials, Lessee shall notify City and Agency in writing at least
j ten (10) days prior to their first appearance on the Site and Lessee's failure to do so shall constitute a
material default under this Lease. Lessee shall conduct all monitoring activities required or
prescribed by applicable Governmental Requirements, and shall, at its sole cost and expense, comply
with all posting requirements of Proposition 65 or any other similarly enacted Governmental
I Requirements. In addition, in the event of any complaint or governmental inquiry, or if otherwise
deemed necessary by City in its reasonable judgment, City may require Lessee, at Lessee's sole cost
and expense,to conduct specific monitoring or testing activities with respect to Hazardous Materials
on the Site. Lessee's monitoring programs shall be in compliance with applicable Governmental
Requirements, and any program related to the specific monitoring of or testing for Hazardous
Materials on the Site, shall be satisfactory to City, in City's reasonable discretion. Lessee shall
further be solely responsible, and shall reimburse City, for all costs and expenses incurred by City
arising out of or connected with the removal, clean-up and/or restoration work and materials
necessary to return the Site and any property adjacent to the Site affected by Hazardous Materials
emanating from the Site to their condition existing at the time of the Lessee's Site Evaluation.
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Lessee's obligations hereunder shall survive the termination of this Lease and shall not merge with
any grant deed.
11.7 Environmental Inquiries. Lessee shall notify City, and provide to City a copy or
copies, of the following environmental permits, disclosures, applications, entitlements or inquiries
relating to the Site: notices of violation,notices to comply, citations, inquiries, clean-up or
abatement orders, cease and desist orders,reports filed pursuant to self-reporting requirements, and
reports filed or applications made pursuant to any Governmental Requirement relating to Hazardous
Materials and underground tanks, and Lessee shall report to City, as soon as possible after each
-- incident, any unusual,potentially important incidents.
In the event of a release of any Hazardous Materials into the environment, Lessee shall, as
soon as possible after the release, furnish to City a copy of any and all reports relating thereto and
copies of all correspondence with governmental agencies relating to the release. Upon request of
City,Lessee shall furnish to City a copy or copies of any and all other environmental entitlements or
inquiries relating to or affecting the Site including,but not limited to, all permit applications,permits
and reports including,without limitation,those reports and other matters which may be characterized
as confidential.
12. ALTERATION OF IMPROVEMENTS.
Upon completion of the Improvements,Lessee shall not make or permit to be made any
material structural alteration of, addition to or change in the Improvements (which shall be deemed to
be material if the cost or value of such alteration(s) or addition(s) exceeds $10,000.00 as to any item
or$25,000.00 as all such items are aggregated), nor demolish all or any part of the Improvements
without the prior written consent of City;provided, however,that the foregoing shall not prohibit or
restrict the repair and/or replacement of the Improvements by Lessee in accordance with Section 10
hereof. In requesting such consent Lessee shall submit to City detailed plans and specifications of
the proposed work and an explanation of the need and reasons therefor.
This provision shall not limit or set aside any obligation of Lessee under this Lease to
maintain the Improvements and the Site in a clean and safe condition, including structural repair and
restoration of damaged Improvements. City shall not be obligated by this Lease to make any
improvements to the Site or to assume any expense therefor.
Lessee shall not commit or suffer to be committed any waste or impairment of the Site or the
Improvements, or any part thereof, except as otherwise permitted pursuant to this Lease. Lessee
agrees to keep the Site and the Improvements clean and clear of refuse and obstructions, and to
dispose of all garbage,trash and rubbish in a manner satisfactory to City.
13. DAMAGE OR DESTRUCTION.
13.1 Obligation to Repair and Restore Damage Due to Casualty Covered by
Insurance. Subject to Section 13.3 below, if the Improvements shall be totally or partially destroyed
or rendered wholly or partly uninhabitable by fire or other casualty required to be insured against by
Lessee,Lessee shall promptly proceed to obtain insurance proceeds and take all steps necessary to
begin reconstruction and, immediately upon receipt of insurance proceeds,to promptly and diligently
commence the repair or replacement of the Improvements to substantially the same condition as the
Improvements are required to be maintained in pursuant to this Lease,whether or not the insurance
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proceeds are sufficient to cover the actual cost of repair, replacement, or restoration, and Lessee shall
complete the same as soon as possible thereafter so that the Improvements can continue to be
operated and occupied as an affordable housing project in accordance with the Lease. Subject to
Section 26.23, in no event shall the repair, replacement, or restoration period exceed fourteen (14)
months from the date Lessee obtains insurance proceeds unless City or Agency's Executive Director,
in his or her sole and absolute discretion,approves a longer period of time. City shall cooperate with
Lessee, at no expense to City, in obtaining any governmental permits required for the repair,
replacement, or restoration. If,however,the then-existing laws of any other governmental agencies
with jurisdiction over the Site do not permit the repair, replacement, or restoration, Lessee may elect
not to repair, replace, or restore the Improvements by giving notice to City (in which event Lessee will be entitled to all insurance proceeds but Lessee shall be required to remove all debris from the
Site) or Lessee may reconstruct such other improvements on the Site as are consistent with applicable
land use regulations and approved by the City,Agency, and the other governmental agency or
agencies with jurisdiction. In the event Lessee elects not to repair,replace, or restore and give City
notice of such election as provided herein,this Lease shall terminate.
13.2 Continued Operations. During any period of repair, Lessee shall continue, or cause
the continuation of,the operation of the Improvements on the Site to the extent reasonably
practicable from the standpoint of prudent business management.
13.3 Damage or Destruction Due to Cause Not Required to be Covered by Insurance.
If the Improvements are completely destroyed or substantially damaged by a casualty for which
Lessee is not required to (and has not) insured against,then Lessee shall not be required to repair,
replace, or restore such improvements.
14. SALE,ASSIGNMENT, SUBLEASE OR OTHER TRANSFER.
Except for(a) leases of particular.dwelling units to tenants, and (b)the lease of or grant of an
easement or license to the City, or public utility or the like, Lessee shall not sell, assign, sublease, or
otherwise transfer this Lease or any right therein,nor make any total or partial sale, assignment,
sublease, or transfer in any other mode or form of the whole or any part of the Site or the
Improvements (each of which events is referred to in this Lease as an"Assignment"), without prior
written approval of City. Any purported assignment without the prior written consent of City shall
be made null and void and shall confer no rights whatsoever upon any purported assignee or
transferee.
Notwithstanding any other provision of this Lease to the contrary,the City shall not
unreasonably withhold its approval of an assignment of this Lease or conveyance of the Site or
Improvements, or any part thereof, in connection with any of the following:
(a) Any transfers to an entity or entities in which Lessee retains
management and control of the transferee entity or entities, including transfers to allow the entry into
the Partnership by the tax credit investor,Limited Partner.
(b) The conveyance or dedication of any portion of the Site to the
City or other appropriate governmental agency, or the granting of easements or permits to facilitate
construction of the Improvements for public utility access.
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In the event of a proposed assignment by Lessee under subparagraphs (a)through (b),
inclusive, above, Lessee agrees that at least thirty (30) days prior to such assignment it shall give
written notice to City including a request for approval of such assignment and satisfactory evidence
that the assignee has assumed the obligations of this Lease.
Notwithstanding any provision in this Section 14 to the contrary, in no event shall Lessee
make any assignment which would or could be effective beyond the Term without the prior consent
of the City.
15. [INTENTIONALLY OMITTED]
v 16. INDEMNITY.
During the Term,Lessee agrees that City and Agency,their agents, officers, representatives
and employees, shall not be liable for any claims, liabilities,penalties, fines or for any damage to the
goods,properties or effects of Lessee, its sublessees or representatives, agents, employees, guests,
licensees, invitees,patrons or clientele or of any other person whomsoever, nor for personal injuries
to, or deaths of any persons, whether caused by or resulting from any act or omission of Lessee or its
sublessees or any other person on or about the Site and the Improvements, or in connection with the
operation thereof, or from any defect in the Site or the Improvements, or from any displacement of
tenants or liability for relocation assistance pursuant to Government Code Section 7260, et seq., due
to the acts of Lessee hereunder. Lessee agrees to indemnify and save free and harmless Agency and
City and their authorized agents, officers, representatives and employees against any and all claims,
actions, damages, liability (including reasonable expenses and attorneys' fees) concerning loss of
life,personal injury and/or damage to property arising from or out of any occurrence in, upon or at
the Site and/or the Improvements or the occupancy or use by Lessee of the Site and/or the
Improvements or any part thereof, or arising from or out of Lessee's failure to comply with any
provision of this Lease or otherwise occasioned wholly or in part by any act or omission of Lessee,
its agents,representatives, contractors, employees, servants, customers or licensees. Lessee shall not
be responsible for(and such indemnity shall not apply to) any acts, errors or omissions of Agency,
City, or their respective agents, officers, representatives or employees.
17. INSURANCE.
17.1 Insurance to be Provided by Lessee. During the Term,Lessee, at its sole cost and
expense, shall:
(a) Maintain or cause to.be maintained a policy or policies of
insurance against loss or damage to the Improvements of all property of an insurable nature located
upon the Site, resulting from fire, lightning,vandalism, malicious mischief, and such other perils
ordinarily included in extended coverage fire insurance and casualty loss policies.
(b) Maintain or cause to be maintained use and occupancy or
business interruption or rental income insurance against the perils of fire, lighting, vandalism,
malicious mischief, and such other perils ordinarily included in extended coverage fire insurance
policies, in an amount equal to not less than twelve (12) months' gross rental income payable to
Lessee from tenants on the Site, assuming one hundred percent(100%) occupancy.
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(c) Maintain or cause to be maintained, comprehensive general
jliability insurance with respect to the Site and the Improvements and the operations of the Lessee in,
on or about the Site and the Improvements, including, but not limited to, owned and hired motor
vehicle liability, cross liability and severability of interests,personal injury,XC&U, blanket
contractual, owners protective,broad form property damage, and product/completed operations
liability coverage in an amount not less than Two Million Dollars ($2,000,000), combined single
limit,public liability insurance to protect against loss from liability for damages on account of
personal injury, including death therefrom, suffered or alleged to be suffered by any person or
persons whomsoever on or about the Site and the Improvements, or in connection with the operation
thereof, resulting directly or indirectly from any acts or activities of Lessee or its sublessees, or any -
person acting for Lessee,or under their respective control or direction, and also to protect against
loss from liability imposed by law for damages to any property of any person occurring on or about
the Site and the Improvements, or in connection with the operation thereof, caused directly or
indirectly by or from acts or activities of Lessee of its sublessees, or any person acting for Lessee, or
under their respective control or direction. Such property damage and personal injury insurance shall
also provide for and protect against incurring any legal cost in defending claims for alleged loss. The
required amount of insurance shall be subject to increases as Agency may reasonably require from
time to time, but not more frequently than every twenty-four(24)months. In no event shall such
increase or increases exceed the increase during such period in the United States Department of
Labor, Bureau of Labor Statistics, Consumer Price Index for Urban Wage Earners and Clerical
Workers, Subgroup"All Items," in the geographical area applicable to the Bellflower area. Lessee
agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as
limiting in any way the extent to which Lessee may be held responsible for the payment of damages
to persons or property resulting from Lessee's activities, activities of its sublessees or the activities of
any other person or persons for which Lessee is otherwise responsible. -
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(d) Maintain or cause to be maintained worker's compensation
insurance issued by a responsible carrier authorized under the laws of the State of California to insure
employers against liability for compensation under the workers' compensation laws now in force in
California, or any laws hereafter enacted as an amendment or supplement thereto or in lieu thereof.
Such workers' compensation insurance shall cover all persons employed by Lessee in connection
with the Site and the Improvements and shall cover full liability for compensation under any such act
aforesaid, based upon death or bodily injury claims made by, for on behalf of any person incurring or
suffering injury or death in connection with the Site or the Improvements or the operation thereof by
Lessee.
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17.2 Definition of"Full Insurable Value". The term "Full Insurable Value" as used in
this Section 17 shall mean the actual replacement cost(excluding the cost of excavation,foundation
and footings below the lowest floor and without deduction for depreciation) of the Improvements,
including the cost of construction of the Improvements, architectural and engineering fees, and
inspection and supervision. To ascertain the amount of coverage required,Lessee shall cause the
Full Insurable Value to be determined from time to time by appraisal by the insurer or, if no such
appraisal is available,by an appraiser mutually acceptable to City and Lessee,not less often than
once every three (3)years.
17.3 General Insurance Provisions. All policies of insurance provided for in this
Section 17, except for the workers' compensation insurance, shall name Lessee as the insured and
loss payee and Agency and the City and their respective officers, employees, agents, and
representatives, as additional insureds, as their respective interests may appear. All property casualty
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insurance policies shall include the interest of any Lessee's Mortgagee, and may provide that any
loss is payable to Lessee's Mortgagee in which event such policies shall contain standard mortgage
loss payable clauses. Lessee agrees to timely pay all premiums for such insurance and, at its sole
cost and expense,to comply and secure compliance with all insurance requirements necessary for the
maintenance of such insurance. Lessee agrees to submit policies of all insurance required by this
Section 17 of this Lease, or certificates evidencing the existence thereof,to City on or before the
effective date of this Lease, indicating full coverage of the contractual liability imposed by this
Lease. At least thirty (30) days prior to expiration of any such policy, copies of renewal policies, or
certificates evidencing the existence thereof, shall be submitted to City. All policies of insurance
required of Lessee herein shall be issued by insurance companies with a general policy holder's
rating of not less than A and a financial rating of not less that Class XV, as rated in the most current
available`Best's Key Rating Guide". All policies or certificates of insurance shall also: (i)provide
that such policies shall not be canceled or limited in any manner without at least thirty (30) days prior
written notice to City; and(ii)provide that such coverage is primary and not contributing with any
insurance as may be obtained by City and shall contain a waiver of subrogation for the benefit of the
City and Agency.
Coverage provided hereunder by Lessee shall be primary insurance and not be contributing
with any insurance maintained by Agency or City, and the policy shall contain such an endorsement.
The insurance policy or the endorsement shall contain a waiver of subrogation for the benefit of the
City and Agency. None of the above-described policies shall require Developer to meet a deductible
or self-insured retention amount of more than Ten Thousand Dollars ($10,000.00) unless first
approved in writing by the City. All policies shall be written by good and solvent insurers and shall
have a policyholder's rating of A or better in the most recent edition of`Best's Key Rating Guide--
Property and Casualty." The required certificate shall be furnished by Lessee at the time set forth
herein.
17.4 Failure to Maintain Insurance. If Lessee fails or refuses to procure or maintain
insurance as required by this Lease, City shall have the right, at Agency's election, and upon ten(10)
days prior notice to Lessee,to procure and maintain such insurance. The premiums paid by City
shall be treated as added rent due from Lessee,to be paid on the first day of the month following the
date on which the premiums were paid. City shall give prompt notice of the payment of such
premiums, stating the amounts paid and the name of the insured(s).
17.5 Insurance Proceeds Resulting from Loss or Damage to Improvements. All
proceeds of insurance with respect to loss or damage to the Improvements during the term of this
Lease shall be payable,under the provisions of the policy of insurance,to Lessee, and said proceeds
shall constitute a trust fund to be used for the restoration, repair and rebuilding of the Improvements
in accordance with plans and specifications approved in writing by City. To the extent that such
proceeds exceed the cost of such restoration, repair or rebuilding,then such proceeds shall be
retained by the party that purchased the insurance. Notwithstanding the foregoing,within the period
during which there is an outstanding mortgage upon the Improvements, such proceeds shall be
payable in accordance with Section 17.3 of this Lease.
18. EMINENT DOMAIN.
(a) The City agrees that during the Term,provided that this Lease
shall remain in effect,the City shall not exercise eminent domain powers as to the Site or the
Improvements.
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19. OBLIGATION TO REFRAIN FROM DISCRIMINATION.
There shall be no discrimination against or segregation of any person or group of persons, on
account of sex, marital status,race, color, creed, religion, national origin or ancestry in the leasing,
subleasing,transferring,.use, occupancy,tenure or enjoyment of the Site and the Improvements, and
Lessee itself or any person claiming under or through it shall not.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 thereof or any
portion thereof, or in the providing of goods, services, facilities,privileges, advantages and
accommodation.
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Lessee shall refrain from restricting the rental, sale, or lease of the Site and the
Improvements, or any portion thereof, on the basis of sex, marital status, race, color, creed, religion,
ancestry or national origin of any person. All such leases or contracts shall contain or be subject to
substantially the following nondiscrimination or nonsegregation clauses:
(a) In Leases:
The lessee herein covenants by and for itself, its heirs, executors, administrators and assigns,
and all persons claiming under or through it, 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 of sex, marital status, race, color, creed, religion, national origin, or ancestry, in
the leasing, subleasing,transferring,use, occupancy,tenure, or enjoyment of the premises herein
leased nor shall the lessee itself, or any person claiming under or through it,establish or permit any
such practice or practices of discrimination or segregation with reference to the selection, location,
number,use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises
herein leased."
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(b) In Contracts:
"There shall be no discrimination against or segregation of, any person or group of persons
on account of sex, marital status, race,color, creed, religion, national origin or ancestry in the sale,
lease, sublease,transfer, use, occupancy,tenure or enjoyment of the premises, nor shall the transferee
itself or any person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use of occupancy of
1 tenants, lessees, subtenants, sublessees or vendees of the premises."
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20. NONDISCRIMINATION IN EMPLOYMENT.
Lessee, for itself and its successors and assigns, agrees that during the operation of the
Improvements provided for in this Lease, and during any work of repair or replacement, Lessee shall
not discriminate against any employee or applicant for employment because of race, color, creed,
religion, sex,marital status,physical or mental disability, sexual orientation, ancestry or national
origin, or on the basis of any other category or status not permitted by law.
21. [INTENTIONALLY OMITTED].
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22. COMPLIANCE WITH LAW.
Lessee agrees, at its sole cost and expense,to comply and secure compliance by all
contractors and tenants of the Site and Improvements with all the requirements now in force, or
which may hereafter be in force, of all municipal, county, state and federal authorities,pertaining to
the Site and the Improvements, as well as operations conducted thereon, and to faithfully observe and
secure compliance by all contractors and tenants of the Site and Improvements with, in the use of the
Site and the Improvements all applicable county and municipal ordinances and state and federal
statutes now in force or which may hereafter be in force, and to pay before delinquency all taxes,
assessments, and fees, if any, assessor levied upon Lessee or the Site or the Improvements, including
the land and any buildings, structures, machines, appliances or other improvements of any nature
whatsoever, erected, installed or maintained by Lessee or by reason of the business or other activities
of Lessee upon or in connection with the Site and the Improvements. Lessee shall use good faith
efforts to prevent tenants from maintaining any nuisance or other unlawful conduct on or about the
Property, and shall take such actions as are reasonably required to abate any such violations by
tenants of the Site and Improvements. The judgment of any court of competent jurisdiction, or the
admission of Lessee or any sublessee or permittee in any action or proceeding against them, or any of
them, whether City be a party thereto or not,that Lessee, sublessee or permittee has violated any
such ordinance or statute in the use of the Site or the Improvements shall be conclusive of that fact as
between City and Lessee, or such sublessee or permittee. Lessee shall comply with all applicable
laws, regulations, and any applicable labor standards, all of which laws and regulations shall be
deemed to be incorporated herein by reference. Lessee shall comply with the Tax Credit Rules. The
Lease shall further comply with the Bond Rules and the Bond Regulatory Agreement.
23. ENTRY AND INSPECTION.
In addition to and without limitation to such rights as the Agency or City may have as a
matter of law,the City reserves and shall have the right between the hours of 8:00 a.m. and
8:00 p.m., upon twenty-four(24) hours prior notice (except in cases of emergency in which case
entry may be made at any time and without notice)to Lessee by the City,to enter the Site and the
Improvements for the purpose of viewing and ascertaining the condition of the same, or to protect its
interests in the Site and the Improvements or to inspect the operations conducted thereon.
24. RIGHT TO MAINTAIN.
In the event that the entry or inspection by City pursuant to Section 23 hereof discloses that
the Site or the Improvements are not in a decent, safe, and sanitary condition, City shall have the
right, after thirty (30) days written notice to Lessee (except in case of emergency, in which event no
notice shall be necessary),to have any necessary maintenance work done for and at the expense of
Lessee and Lessee hereby agrees to pay promptly any and all costs incurred by City in having such
necessary maintenance work done in order to keep the Site and the Improvements in a decent, safe
and sanitary condition. The rights reserved in this Section shall not create any obligations on City or
increase obligations elsewhere in this Lease imposed on City.
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25. EVENTS OF DEFAULT AND REMEDIES.
25.1 Events of Default by Lessee. The occurrence of any one (1) or more of the
{ following shall constitute an event of default hereunder:
(a) Lessee shall fail to construct the Improvements in accordance
j with the terms and within the times set forth; or
(b) Lessee shall abandon or surrender the Site, or the
Improvements; or
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(c) Lessee shall fail or refuse to pay,within ten(10) days of
notice from City that the same is due, any installment of rent or any other sum required by this Lease
to be paid by Lessee; or
(d) Lessee shall fail to pay when due any Capital Events
Payment(s); or
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(e) Lessee shall fail to perform any covenant or condition of this
Lease other than as set forth in subparagraphs (a) or(b) above or paragraphs (f), (i) or 0)below, and
any such failure shall not be cured within thirty (30) days following the service on Lessee of a
written notice from City specifying the failure complained of, or if it is not practicable to cure or
remedy such failure within such thirty (30) day period,then Lessee shall not be deemed to be in
default if Lessee shall commence such cure within such thirty (30) day period and thereafter
diligently prosecute such cure to completion; or
(f) Subject to any restrictions or limitations placed on City by
applicable laws governing bankruptcy,Lessee's (i) application for, consent to or suffering of the
appointment of a receiver,trustee or liquidator for all or for a substantial portion of its assets;
(ii)making a general assignment for the benefit of creditors; (iii) admitting in writing its inability to
pay its debts or its willingness to be adjudged a bankrupt; (iv) becoming unable to or failing to pay its
debts as they mature; (v) being adjudged a bankrupt; (vi) filing a voluntary petition or suffering an
involuntary petition under any bankruptcy, arrangement,reorganization or insolvency law(unless in
the case of an involuntary petition,the same is dismissed within ninety (90) days of such filing);
(vii) convening a meeting of its creditors or any class thereof for purposes of effecting a moratorium,
extension or composition of its debts; or(viii) suffering or permitting to continue unstayed and in
effect for sixty (60)consecutive days any attachment, levy, execution or seizure of all or a portion of
Lessee's assets or of Lessee's interest in this Lease, or with respect to the Lower Income Units;
(g) Lessee shall charge or accept rent that is in excess of
Affordable Rent; or
(h) Lessee shall charge or accept rent that is in excess of the
Prescribed Rent Levels; or
(i) Lessee shall rent to a tenant, or allow occupancy by a person
or household,that is not a Very Low Income Household or a Lower Income Household; or
(j) Lessee shall rent to a household which does not qualify as
Seniors;
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credit investor an opportunity to cure the Event of Default in a reasonable manner, as stated in the to
be formed'Limited Partnership.Agreement.
25.3 Right of City in the Event of Termination_of Lease. Upon termination of this
Lease pursuant to Section 25.2 or Section 15, it shall be lawful for City to re-enter and repossess the
Site and the Improvements and Lessee, in such event, does hereby waive any demand for possession.
the reof,,and'agrees to surrender and deliver the Site and the Improvements peaceably to City
immediately upon such termination in good order, condition and repair, except for reasonable wear
and tear. Lessee agrees that upon such termination,title to all the Improvements on the Site shall
vest in City pursuant to Section 8.2.
Even,though Lessee has breached the Lease arid.abandoned the Site,this Lease shall continue
in effect for so long as City does not terminate Lessee's right to'possession, and City.may enforce all
of its right and remedies under this Lease, including,but not limited-to,the right to recover the rent as it becomes due under this Lease. No ejectment, re-entry or other act by or on behalf of City shall
constitute a t'ermination.unless City gives Lessee notice of termination in writing.
Termination of this Lease shall not relieve or release Lessee from any obligation incurred
pursuant to this Lease prior to the date of such.termination. Termination of this Lease.shall not
relieve Lessee from the obligation to pay any sum due to City or from any claim for damages against
Lessee. City shall not exercise-this right without first providing the tax credit investor with notice
and an-opportunity to cure.
25.4 Damages. Should City elect to terminate this Lease pursuant to.the provisions of this
Section 25,Agency may recover from Lessee, as damages,the following: (a)The worth at the time
of the award of any unpaid rent which had been earned at the time of the termination,plus (b)the
worth at the time of the award of the amount by which the unpaid rent which would have been earned
after termination until the time of the award exceed&the amount of rent loss Lessee proves could
have been'reasonably avoided,plus (c)the worth at the time of award of the amount by which the
unpaid rent for the balance of the Term after the time of award exceeds the amount of rent loss that
Lessee proves could be reasonably avoided,plus (d)any other-amounts necessary to compensate City,
for all the detriment proximately caused by Lessee's.failure.to perform its obligations under this
Lease or which, in the ordinary course of things,would be likely to,result therefrom including, but
notlimited to, any costs or expenses incurred by City in (i)retaking possession of the Site and the
Improvements, including reasonable attorneys' fees•therefor, (ii)maintaining,or preserving the Site
and-the Improvements after default, (iii)preparing the Site and the Improvements.for reletting to a
new tenant, including repairs or alterations to the Site and the Improvements, (iv) leasing
commissions, or(v) any other costs necessary or appropriate to relet the Site and the Improvements,
plus (e) at City's election,any other amounts in addition to or in,lieu of the foregoing as may be
permitted from time to time by the law of the State of California.
As used in subparagraphs(a) and (b) above,the"worth at the time of award" is computed by
allowing interest at the maximum lawful.rate. As used in subparagraph (c) above,the "worth at the
time of award" is computed by discounting such amount at the discount rate of the Federal Reserve
Bank situated nearest to the location of the.Site at the time of the award plus one percent(1%).
Damages under this.section shall be waived unless City provides tax credit investor with
notice and an opportunity to cure.
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then, upon notice having been given by City and the failure to cure within sixty (60) of such notice,
such event shall constitute an event of default under this Lease.
Notwithstanding any of the foregoing, any Event of Default shall be stayed upon City
receiving notice from the tax credit investor that the tax credit investor shall take steps necessary to
cure the Event of Default. City will provide notice to the tax credit investor of any and all Event(s)
of Default. Upon receiving same,tax credit investor will propose a plan of action to City to cure the
Event of Default. City will reasonably approve such plan of action and will allow the tax credit -
investor reasonable time to effectuate the plan. The Tax Credit Investor's Cure Rights shall be
further annunciated in the to be formed Limited Partnership Agreement. The City will be provided
an opportunity to review and comment and approve the Limited Partnership Agreement and will be
bound by its terms as they affect this Lease and other Project Documents.
25.2 Remedies of Lessor.
In the event of any such default as described in Section 25.1 which default has not been
timely cured,Lessor may, at its option:
(1) Correct or cause to be corrected said default and
charge the costs thereof(including costs incurred by City in enforcing this provision)
to the account of Lessee,which charge shall be due and payable within sixty (60)
days after presentation by City of a statement of all or part of said costs;
(2) Correct or cause to be corrected said default and pay
the costs thereof(including costs incurred by City in enforcing this provision) from
the proceeds of any insurance;
(3) Exercise its right to maintain any and all actions at
law or suits in equity to compel Lessee to correct or cause to be corrected said
default;
(4) Have a receiver appointed to take possession of
Lessee's interest in the Site and the Improvements,with power in said receiver to
administer Lessee's interest in the Site and the Improvements,to collect all funds
available to Lessee in connection with its operation and maintenance of the Site and
the Improvements; and to perform all other consistent with Lessee's obligation under
this Lease as the court deems proper;
(5) Maintain and operate the Site and the Improvements,
without terminating this Lease; or
(6) Terminate this Lease by written notice to Lessee of its
intention to do so.
Notwithstanding anything hereinabove to the contrary, City will not exercise any of the
above Remedies without first providing the tax credit investor notice of Default and allowing the tax
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25.5 Rights and Remedies are Cumulative. The remedies provided by this Section 25
are not exclusive and shall be cumulative to all other rights and remedies possessed by City. The
exercise by City of one or more such rights or remedies shall not preclude the exercise by it, at the
same or different times, of any other rights or remedies for the same default or any other default by
Lessee.
26. MISCELLANEOUS.
26.1 Governing Law; Interpretation. The laws of the State of California shall govern
the interpretation and enforcement of this Lease.
This Lease shall be reasonably interpreted in light of its purposes to provide affordable
housing for Seniors and to afford the City those rents and other revenues as are provided for herein.
This Lease shall be interpreted as if jointly prepared by both parties.
This Lease shall be construed as consistent with the Regulatory Agreement to the greatest
extent feasible.
26.2 Legal Actions. In addition to any other rights or remedies, either party may institute
legal action to cure, correct or remedy any default,to recover damages for any default, or to obtain
any other remedy consistent with the purpose of this Lease. Such legal actions must be instituted in
the Superior Court of San Bernardino County, State of California, in any other appropriate court in
that County, or in the Federal District Court in the District of California in which the Site is located.
26.3 Acceptance of Service of Process. In the event that any legal action is commenced
by Lessee against City, service of process*on City shall be made by personal service upon the City
Clerk, or in such other manner as may be provided by law.
In the event that any legal action is commenced by City against Lessee, service of process on
Lessee shall be made by personal service upon Lessee or in such other manner as may be provided
by law, and shall be effective whether made within or without the State of California.
26.4 Attorneys' Fees And Court Costs. In the event that either Lessor or Lessee shall
bring or commence an action to enforce the terms and conditions of this Lease or to obtain damages
against the other party arising from any default under or violation of this Lease,then the prevailing
party shall be entitled to and shall be paid reasonable attorneys' fees and court costs therefor in
addition to whatever other relief such prevailing party may be entitled.
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26.5 Financial Statement; Inspection of Books And Records. Lessee shall submit to
the City on an annual basis,not later than May 1, an Audited Financial Statement for the operation of
the Site and Improvements,which is prepared by a certified public accounting firm, including
without limitation the information described in Section 6.6 hereof. In addition, City shall have the
right(at Lessee's office, upon not less than forty-eight(48)hours' notice, and during normal business
hours)to inspect the books and records of Lessee pertaining to the Site as pertinent to the purposes of
this Lease. Lessee also has the right(at City's office, upon not less than forty-eight(48)hours'
notice, and at all reasonable times)to inspect the books and records of City pertaining to the Site as
pertinent to the purposes of this Lease.
26.6 Interest. Any amount due City that is not paid when due shall bear interest from the
date such amount becomes due until it is paid. Interest shall be at a rate equal to the lesser of
[(i) seven percent(7%)] per annum, compounded annually, on the first day of the month such amount
becomes due, and (ii)the maximum rate permitted by applicable law.
26.7 Notices. All notices, statements, demands, requests, consents, approvals,
j authorizations, offers, agreements,appointments or designations hereunder by either party to the
other shall be in writing and shall be given either by(i)personal service, (ii) delivery by reputable
document delivery service such as Federal Express that provides a receipt showing date and time of
delivery, or(iii)mailing in the United States mail, certified or registered mail,return receipt
requested,postage prepaid, and addressed as follows:
Agency: City of Grand Terrace Community Redevelopment Agency
22795 Barton Rd.
Grand Terrace, CA 92313
Attention: Thomas J. Schwab
with a copy to:
(delivery of which
copy shall not
constitute notice
to Agency) John Harper, Esq.
c/o City of Grand Terrace
1 22795 Barton Road
Grand Terrace, California 92313
I Tel.: (714) 771-7728
Lessee: Corporation for Better Housing
15303 Ventura Blvd. Suite 1100
Sherman Oaks, CA 91403
Attention: Mary Silverstein
Copy to:
The Tax Credit Investor
or to such other address as either party shall later designate for such purposes by written notice to the
other party. Notices shall be deemed effective upon receipt provided that the party to whom notice is
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being given has notified the other party of its current address, and otherwise upon the earlier of
personal receipt or within seven(7) days after delivery thereof to the address(es) as provided above;
provided,however that refusal to accept delivery after reasonable attempts thereto shall constitute
receipt. Any notices attempted to be delivered to an address from which the receiving party has
moved without notice to the delivering party shall be effective on the third day after the attempted
delivery or deposit in the United States mail.
26.8 Time is of the Essence. Time is of the essence in the performance of the terms and
conditions of this Lease.
26.9 Non-Merger of Fee And Leasehold Estates. If both City's and Lessee's estates in
the Site or the Improvements or both become vested in the same owner,this Lease shall nevertheless
not be destroyed by application of the doctrine of merger except at the express election of City and
Lessee's Mortgagee. The voluntary or other surrender of this Lease by Lessee, or a mutual
cancellation thereof, shall not work as-a merger and shall, at the option of City,terminate all or any
existing sublease or subtenancies or may, at the option of City, operate as an assignment to City of
any or all such existing subleases or subtenancies.
26.10 Holding Over. The occupancy of the Site after the expiration of the Term of this
Lease shall be construed to be a tenancy from month to month, and all other terms and conditions of
this Lease shall continue in full force and effect.
26.11 Conflict of Interest. No member, official or employee of City shall have any
personal interest, direct or indirect, in this Lease nor shall any such member, official or employee
participate in any decision relating to the Lease which affects his personal interests or the interests of
any limited partnership,partnership or association in which he is directly or indirectly interested.
Lessee warrants that it has not paid or given, and will not pay or give, any third parry any
money or other consideration for obtaining this Lease.
26.12 Non-Liability of City Officials And Employees. No member, official, officer,
employee, agent, or representative of City shall be personally liable to Lessee, or any successor in
interest, in the event of any default or breach by City or for any amount which may become due to
Lessee or successor or on any obligations under the terms of this Lease.
26.13 Relationship. The relationship between the parties hereto shall at all times be
deemed to be that of landlord and tenant. The parties do not intend nor shall this Lease be deemed to
create a partnership or joint venture.
26.14 Transactions with Affiliates. Lessee shall not have the right to enter into
transactions with subsidiaries, affiliates and other related entities for the purpose of leasing space,
providing cleaning, maintenance and repair services, insurance policies and other purposes related to
the use and development of the Site and the Improvements,without the prior written approval of the
City,which approval shall be given only if the City reasonably concludes that all such costs, charges
and rents are competitive with the costs, charges, rent and other sums which would be paid by or to,
as the case may be, an unrelated third party.
26.15 Waivers And Amendments. All waivers of the provisions of this Lease must be in
writing and signed by the appropriate authorities of City or Lessee. The waiver by City of any
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breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of
such term, covenant or condition, or any subsequent breach of the same or any other term, covenant
or condition herein contained. The subsequent acceptance of rent hereunder by City shall not be
deemed to be a waiver of any preceding breach of Lessee of any term, covenant or condition of this
Lease, regardless of City's knowledge of such preceding breach at the time of acceptance of such
rent. Failure on the part of City to require or exact full and complete compliance with any of the
covenants or conditions of this Lease shall not be construed as in any manner changing the terms
hereof and shall not prevent City from enforcing any provision hereof.
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All amendments or modifications hereto must be in writing and signed by the appropriate
authorities of City and Lessee.
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The Lessee's mortgagee permitted by this Lease shall not be bound by any waiver or
amendment to this Lease without Lessee's mortgagee giving its prior written consent.
26.16 Entire Agreement; Duplicate Originals; Counterparts. Except as set forth in
Section 26.16,this Lease sets forth the entire understanding of the parties with respect to Lessee's
ground lease of the Site. This Lease is executed in three (3) duplicate originals and counterparts,
each of which is deemed to be an original. This Lease includes pages and
exhibits, The Exhibits are incorporated by reference
herein.
26.17 Severability. If any provision of this Lease or the application thereof to any person
or circumstances shall be invalid or unenforceable to any extent,the remainder of this Lease and the
application of such provisions to other persons or circumstances shall not be affected thereby and
shall be enforceable to the greatest extent permitted by law.
26.18 Terminology. All personal pronouns used in this Lease,whether used in the
masculine, feminine, or neuter gender, shall include all other genders; the singular shall include the
plural, and vice versa. Titles of sections are for convenience only,and neither limit nor amplify the
provisions of the Lease itself.
i 26.19 Recordation. A short form memorandum of this Lease should be recorded at or
within one (1) day after the time the Lease is executed. The failure to record such Memorandum
i shall not affect this Lease.
26.20 Binding Effect. This Lease, and the terms,provisions,promises, covenants and
conditions hereof, shall be binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and assigns.
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26.21 Estoppel Certificate. Each of the parties shall at any time and from time to time, but
not more frequently than twice during any calendar year, upon not less than twenty (20) days' prior
notice by the other, execute, acknowledge and deliver to such other party a statement in writing
certifying that this Lease is unmodified and is in full force and effect(or if there shall have been
modifications that this Lease is in full force and effect as modified and stating the modifications), and
the dates to which the rent has been paid (which may be based upon the best knowledge of the party
providing the certificate), and stating whether or not to the best knowledge of the signer of such
certificate such other party is in default in performing or observing any provision of this Lease, and,
if in default, specifying each such default of which the signer may have knowledge, and such other
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matters as such other party may reasonably request, it being intended that any such statement
delivered by Lessee may be relied upon by City or any successor in interest to City or any
prospective mortgagee or encumbrancer thereof, and it being further intended that any such statement
delivered by City may be relied upon by any prospective assignee of Lessee's interest in this Lease or
any prospective mortgagee or encumbrancer thereof. Reliance on any such certificate may not
extend to any default as to which the signer of the certificate shall have had no actual knowledge.
26.22 Force Majeure. The time within which City or Lessee is obligated herein to perform
any obligation hereunder, other than an obligation that may be performed by the payment of money,
shall be extended and the performance excused when the delay is caused by fire, earthquake or other
acts of God, strike, lockout, acts of public enemy,riot, insurrection or other cause beyond the control
of the applicable party.
26.23 Quiet Enjoyment. City does hereby covenant, promise and agree to and with Lessee
that Lessee,for so long as Lessee is not in default hereof, shall and may at all times peaceably and
quietly have, hold, use, occupy and possess the Site throughout the Term.
26.24 City and Agency Approvals and Actions. Whenever a reference is made herein to
an action or approval to be undertaken by City,the Agency Executive Director or his or her designee
is authorized to act on behalf of the City unless specifically provided otherwise or the law otherwise
requires.
26.25 No Third Parties Benefited Except for Agency and Approved Leasehold
Mortgagee. This Lease is made for the purpose of setting forth rights and obligations of Lessee and
City, and no other person(except for the Agency) shall have any rights hereunder or by reason
hereof. Except for the Agency, and each leasehold mortgagee approved by City, each of which shall
be deemed to be a third party beneficiary of this Lease,there shall be no third party beneficiaries of
this Lease.
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IN WITNESS WHEREOF,the parties hereto have caused this Lease to be executed by their
lawfully authorized officers.
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CITY:
j THE CITY OF GRAND TERRACE, a public body
corporate and politic
By.
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ATTEST:
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LESSEE:
CORPORATION FOR BETTER HOUSING,
a California nonprofit affordable housing development
company
By:
Mary Silverstein,Executive Vice President
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EXHIBIT B
SITE LEGAL DESCRIPTION
[To Come]
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Exhibit`B"
Page 1 of 1
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EXHIBIT C
MEMORANDUM OF LEASE
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
CITY OF GRAND TERRACE
22795 Barton Rd.
Grand terrace, CA 92313
c/o City Clerk
Exempt from Recording Fee Pursuant to Government
Code Section 27383.
MEMORANDUM OF LEASE
THIS MEMORANDUM OF LEASE("Memorandum") is hereby made as of
by and between the CITY OF GRAND TERRACE, a public body,
corporate and politic (the"City" or"Lessor"), and CORPORATION FOR BETTER HOUSING, a
California not-for profit company (the"Developer" or"Lessee").
RECITALS
A. City and the Lessee have entered into a ground lease dated as of , 2005,
for that certain parcel of real property (the "Property")which is legally described in Exhibit"A"
attached hereto and incorporated herein by reference(the ground lease, as amended is hereafter
referred to as the "Lease"). A copy of the Lease is available for public inspection at City's office at
22795 Barton Rd., Grand Terrace, California. The term of the Lease is approximately sixty-five (65)
years.
B. The Lease provides that a short form memorandum of the Lease shall be executed
and recorded in the Official Records of San Bernardino County, California.
C. The Lease includes restrictions which limit the rents chargeable,the incomes of
ninety percent(90%) of the units minus the manager's unit, and which further limit the eligible
renters to "Seniors", except the manager's unit as more fully set forth in the Lease.
D. The Lease provides that Lessee shall pay taxes upon the assessed value of the entire
Property, and not merely a leasehold interest, as provided pursuant to Section 33673 of the California
Health and Safety Code.
Exhibit"C"
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NOW, THEREFORE,the parties hereto certify as follows:
Agency,pursuant to the Lease, has leased the Property to the Lessee upon the terms and
conditions provided for therein. This Memorandum of Lease is not a complete summary of the
Lease, and shall not be used to interpret the provisions of the Lease.
THE CITY OF GRAND TERRACE, a public body
corporate and politic
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BY:
ATTEST:
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Corporation for Better Housing,
a California nonprofit public benefit corporation
By:
j Mary Silverstein
Its: Executive Vice President
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Exhibit"C"
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EXHIBIT"D" Y
SCHEDULE OF PERFORMANCE'
The following timeline is subject to project approval by City Council by,9/22/05.In the,event
.the approval occurs later than September 22, a delay of roughly six months for all items will
occur as the next funding'.cycle will occur in-March and April for most of.the sources.
Anticipated Development Timeline—
Planning Commission 08/04/05 Approved
Architectural and Site Review
City Council 08/11/05 First Reading
City Council 09/08/05 Continued''
City Council 09/22/05 Second,Reading
AHP Application 09/27/05 Fall Round'apps due,'
Tax-exempt bond Application 09/30/05 Fall Round apps.due
LIHTC Application 10/10/05 Fall Round apps due
Construction Loan Close 12/28/05 Subject to award of above.
Relocation of Senior Center- January 2006
Permits Issued/Construction February/March 2006
Commences
Pre-leasing Begins November 2006
Construction Complete March 2007
Residential Units
Construction Complete April 2007,
Community Center
Construction Complete open June 2007
space/landscaped area
In the event Lessee is not awarded the anticipated funding within one year of City Council
project approval,Agency may terminate said agreement.
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EXHIBIT "E"
SCOPE OF DEVELOPMENT
The scope of development shall be consistent with General Plan Amendment GPA-05-01, more
'particularly described in Specific Plan SP-05-01,Site and Architectural Review SA 05-14, and
f Environmental Assessment E-05-16 and shall be subject to the Conditions of Approval.
Project Description. Lessee intends to develop and operate on the property a one hundred and
I' twenty(120) unit senior housing project, comprised of one hundred and three(103) one-
bedroom rental units and seventeen(17)two-bedroom rental units,a community center,
consisting of approximately 6,500 square feet; and a landscaped open area, encompassing
roughly four(4) acres.
Project Financing.Lessee shall apply for construction and permanent funding to construct and,
operate said improvements. '.Anticipated funding sources include, but not limited to 1)
construction loan in the form of variable rate tax-exempt bonds that will adjust with'the
I market during construction_and be fixed by means of a rate lock during the permanent period;
' 2) low income housing tax credits(LIHTC) in the form of 4% credits awarded by the
California Tax Credit Allocation Committee(TCAC); 3)Federal Home Loan Bank(FHLB)
Affordable Housing Program (AHP) fully forgivable grant; and 4)Agency Funds. Lessee may'
apply for additional sources of funds if necessary and appropriate. Actual funding amounts
and sources shall be provided to Agency for review and approval prior to loan closing.
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Anticipated Source of Funds. The following table contains estimates,subject to change at the
time of actual funding. {
Estimated Estimated
i Construction Permanent
Tax Exempt Bonds issued by CSCDA $10,500,000 $4,700,000
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LIHTC (4%) $200,000 $5,160,000
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FHLB AHP $952,000 $952,000
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Agency Funds $7,560,000 $8,400,000
a Estimated Total $19,212,000 $19,212,000
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Funding Applications. Lessee shall submit all applications for funding in good faith and in a
j timely manner.
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Exhibit"E"
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EXHIBIT«F»
GROUND LEASE RIDER ,
THIS GROUND LEASE RIDER (the "Rider") is attached to and,forms a part of that certain
Ground Lease (the "Lease"),by and between the City of Grand Terrace, as.lessor (the"'Landlord")
and Corporation for Better Housing, as lessee (the "Tenant"). All capitalized'terms used herein and
not otherwise defined shall have the meanings given that term in:the Lease.,
I. TENANT'S.RIGHT TO MORTGAGE:'
1:1 Tenant shall have the right, with Landlord's prior written consent, which shall not be "
unreasonably withheld, conditioned or delayed, to mortgage the Lease and Tenant's leasehold
interest by one or.more-deeds of trust (each, a""Leasehold Mortgage"). No foreclosure (or deed or
other transfer: in lieu of foreclosure) under any Leasehold Mortgage shall require the consent of the
Landlord under,or constitute a breach or default under,the Lease.
1.2 If Tenant shall-mortgage the Lease and Tenant's.leasehold estate hereunder, then
Tenant or the,holder(each, a"Leasehold Mortgagee") of such mortgage shall forward to Landlord:
(a) an executed counterpart of the mortgage or mortgages, in form proper for,
recording,br;at Tenant's option,a true copy of such mortgage:or mortgages; and
(b) a written notice setting forth the name°and address of the holder of such
mortgage.. .
In the event of any assignment of the mortgage or mortgages held by a Leasehold Mortgagee, or
change in its name and/or-address,the assignee of'the Leasehold Mortgagee shall give written notice
thereof to Landlord, changing the name of the Leasehold Mortgagee and/or the address to which
copies of notices are to.be sent.
1.3 Until the time,. if any, that each Leasehold Mortgage shall be satisfied .of record, or
each Leasehold Mortgagee shall give to Landlord written notice that`the Leasehold Mortgage held by
it has been satisfied:
a. no. surrender or acceptance of the Demised Premises, or cancellation,
amendment or modification of the Lease, shall be binding upon any Leasehold Mortgagee, or affect
any Leasehold Mortgage, if the same is effectuated without the prior written consent of such
" Leasehold Mortgagee;
b. if Landlord shall give any notice of-default and/or termination to Tenant
under the Lease, Landlord,shall, at the same time and in the same manner,'give'a copy of,such notice
to each Leasehold Mortgagee at the respective address theretofore designated by'each of them; and
C. no notice of default and/or termination given by Landlord to Tenant shall be
-binding upon, or affect, any Leasehold Mortgagee, unless a'copy of such notice shall be given to
such Leasehold Mortgagee.
1.4 Each Leasehold Mortgagee shall be afforded the right, but not the'obligation, to
perform any term, covenant, or condition of the Lease to be performed by Tenant, as well as to
Exhibit' '
remedy any default by Tenant hereunder, and Landlord shall accept such performance by any
Leasehold Mortgagee with the same force and effect as if furnished by Tenant, provided, however,
that the Leasehold Mortgagee shall not thereby or hereby be subrogated to the rights of Landlord.
Additionally, Tenant may delegate irrevocably to any Leasehold Mortgagee(s) the authority to
exercise any or all of Tenant's rights hereunder, including, but not limited to the right of the
Leasehold Mortgagee to participate (in conjunction with or to the exclusion of Tenant) in any
proceeding, arbitration or settlement involving condemnation or eminent domain affecting Tenant's
leasehold interest in the Demised Premises, but no such delegation shall be binding upon Landlord
junless and until either Tenant or the Leasehold Mortgagee in question shall give to Landlord a.true
copy of a written instrument effecting such delegation, in form required for recording. Such
delegation of authority may be effected by the terms of a Leasehold Mortgage itself, in which event
the service upon Landlord of an executed counterpart or certified copy of the Leasehold Mortgage in
accordance with Section 2, together with a written notice specifying the provisions therein that
delegate such authority to such Leasehold Mortgagee, shall be sufficient to give Landlord notice of
such delegation. Any provision of the Lease that gives a Leasehold Mortgagee the privilege of
exercising a particular right of Tenant hereunder on condition that Tenant shall have failed to
exercise such right shall not be deemed to diminish any privilege that any Leasehold Mortgagee may
have, by virtue of a delegation of authority from Tenant, to exercise such right without regard to
whether or not Tenant shall have failed to exercise such right. No foreclosure (or deed or other
transfer of foreclosure) under any Leasehold Mortgage shall require the consent of Landlord under,
or constitute a breach or default under,the Lease.
1.5 If:
(a) Tenant shall default under the provisions of the Lease and Landlord shall give
notice of such default as provided under the provisions of the Lease;
(b) such default shall not be remedied within any applicable grace and/or cure
period pursuant to the provisions of the Lease; and
(c) Landlord, by reason of such default, shall become entitled to (i) re-enter the
Demised Premises or the improvement thereon, or (ii) terminate the Lease or (iii) bring a proceeding
to dispossess Tenant and/or any other occupants of the Demised Premises or improvements thereon,
re-enter the Demised Premises and/or improvements thereon and/or terminate the Lease,
then, before so re-entering the Demised Premises or the improvements, terminating the Lease or
commencing such proceeding, and as a condition precedent thereto,Landlord shall:
(x) give to each Leasehold Mortgagee not less than thirty (30) days
additional written notice as to a monetary default (specifying the amount and description thereof to
the extent then known to Landlord) or default in furnishing any insurance required to be furnished by
Tenant hereunder, or ninety (90) days' additional written notice of any non-monetary default (which
shall specify in detail the nature of such default); and
(y) allow each Leasehold Mortgagee:
(A) such thirty (30) days or ninety (90) days (as the case may be)
within which to cure the default; or
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Exhibit' '
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(B) if such default is a non-monetary default (other than a default
in furnishing any insurance required to be furnished by Tenant hereunder) and cannot, with the
exercise of due diligence, be cured by such Leasehold Mortgagee within such ninety (90) day period,
then provided:
(i) prior to the expiration of such ninety (90) day period,
such Leasehold Mortgagee has delivered to Landlord an instrument in writing duly executed and
acknowledged wherein it agrees to use reasonable efforts to cure such default; and
(ii) such default is susceptible of being cured by
Leasehold Mortgagee and such Leasehold Mortgagee shall,prior to the expiration of such ninety (90)
day period, have commenced curing such default, then such ninety (90) day period shall be extended,
as long as such Leasehold Mortgagee diligently pursues the curing of such default with continuity,
for such period as may be necessary to cure same provided that such period of time shall not be so
extended if to do so would subject Landlord to any criminal or civil liability or the cancellation of
any insurance required to be maintained by Tenant or the inability to obtain any such insurance.
Nothing herein contained shall affect the right of Landlord, upon occurrence of any
subsequent default, to exercise any right or remedy herein reserved to Landlord, subject, however,to
the provisions of this Section.
1.6 If:
(a) Tenant shall default in the performance or observance of any term, covenant,
or condition of the Lease on Tenant's part to be performed or observed, other than a term, covenant
or condition requiring the payment of a sum of money; and
(b) such default is of such a nature that the same either:
(i) cannot practicably be cured by a Leasehold Mortgagee without taking
possession of the Demised Premises and/or the improvements thereon; or
(ii) is not susceptible of being cured by any Leasehold Mortgagee, then
Landlord shall not:
(x) re-enter the Demised Premises and/or the improvements
thereon or serve a notice of election to terminate the Lease;
(y) bring a proceeding to dispossess Tenant and/or any other
occupants of the Demised Premises or the improvements, re-enter the Demised Premises and/or the
improvements and/or terminate the Lease; or
(z) otherwise terminate the leasehold estate of Tenant hereunder,
If, and for so long as:
(A) a Leasehold Mortgagee shall deliver to Landlord, prior to the date on
which Landlord shall be entitled to give notice of election to terminate the Lease or re-enter the
Demised Premises and/or the improvements, a written instrument, duly executed and acknowledged,
in which the Leasehold Mortgagee agrees that:
Exhibit' '
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(X) it will use reasonable efforts to cure such default to the extent
the same is susceptible of being cured by the Leasehold Mortgagee, nominee or purchaser; and
(I) if the Lease thereafter is terminated, or Landlord thereafter re-
enters the Demised Premises and/or the improvements prior to the curing of such default, the
Leasehold Mortgagee shall pay to Landlord the cost of curing such default; and
(B) if the default is of such a nature that same cannot practicably be cured
by a Leasehold Mortgagee without taking possession of the Demised Premises and/or the
improvements, a Leasehold Mortgagee shall proceed diligently, subject to any stay in any
proceedings involving the insolvency of Tenant or any other person, to obtain possession of the
Demised Premises and/or the improvements by foreclosure or deed in lieu of foreclosure, and, upon
obtaining such possession, shall promptly cure such default; and
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(C) if the default is of such a nature that the same is not susceptible of
being cured by any Leasehold Mortgagee, a Leasehold Mortgagee shall institute foreclosure
proceedings and diligently prosecute the same to completion, subject to any stay in any proceedings
involving the insolvency of Tenant or other proceeding or injunction (unless, in the meantime, the
Leasehold Mortgagee shall acquire Tenant's estate hereunder, either in its own name or through a
nominee, by assignment in lieu of foreclosure).
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1.7 No Leasehold Mortgagee shall be required to continue to proceed to obtain
possession, or to continue in possession as mortgagee, of the Demised Premises or the Improvements
pursuant to subsection (b)(B) of Section 6 or to continue to prosecute foreclosure proceedings
pursuant to subsection (b)(C) of Section 6 if and when Tenant's default shall be cured. Nothing
! contained in Section 6 shall preclude Landlord from exercising any of its rights or remedies with
respect to any other default by Tenant during any period of Landlord's forbearance under Section 6
but, in such event, if any Leasehold Mortgagee, any nominee thereof, or any purchaser at a
foreclosure sale shall:
(a) acquire title to Tenant's leasehold estate hereunder; and
(b) cure all defaults of Tenant hereunder that are susceptible of being cured by
such Leasehold Mortgagee, nominee or purchaser, as the case may be, then the defaults of any prior
holder of Tenant's leasehold estate hereunder that are not susceptible of being cured by such
i Leasehold Mortgagee, nominee or purchaser shall no longer be deemed to be defaults hereunder,
provided, however, that nothing herein shall be deemed to relieve such Leasehold Mortgagee,
nominee or purchaser from the obligation to cure any monetary defaults of Tenant hereunder, as well '
as all non-monetary defaults that are susceptible of being cured by such Leasehold Mortgagee.
1.8 If, for any reason, the Lease shall be tenninated at the election of Landlord prior to
the Expiration Date, Landlord will, on written request of any Leasehold Mortgagee made within
thirty (30) days of such termination, enter into a new lease of the Demised Premises with such
Leasehold Mortgagee, within thirty (30) days after the receipt of such request, for the remainder of
the term, effective as of the date of such termination, at the rent and additional rent, and upon the
other terms, covenants and conditions herein contained, subject, however, to the rights, if any, of the
parties then in possession of any part of the Demised Premises, provided that such Leasehold
Mortgagee shall:
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Exhibit' '
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(a) contemporaneously with such written request upon Landlord for:such new
lease, pay to Landlord or its attorney the net rent and additional rent due and payable by Tenant
hereunder as of the date of termination of the Lease (which payments shall be specified in reasonable
written detail by Landlord to the Leasehold Mortgagee, and such payments shall be held in escrow
until such time as Tenant submits such new lease of the Demised Premises. to 'such Leasehold
Mortgagee at which time such payment shall be released from escrow and, if held by Landlord's
attorney, shall be paid over to Landlord); and
(b) on or before execution and delivery of said new lease, and as a condition to
the execution and delivery thereof by Landlord:
(i) pay to Landlord:
(x) any and all sums which would have been due under the Lease
but for such termination from the date of termination of the Lease to the date of execution and
delivery of said new lease; and
(y) any reasonable expenses (including, without limitation,
reasonable attorneys' fees, disbursements and court costs) to which Landlord shall have been
subjected by reason of such default;
(ii) perform and observe all the other covenants and conditions herein
contained on Tenant's part to be performed and observed, to the extent that Tenant shall have failed
to perform and observe the same, except that:
(z) with respect to any default that cannot be cured by a
Leasehold Mortgagee until it obtains possession of the Demised Premises, the Leasehold Mortgagee
shall have a reasonable time, after the Leasehold Mortgagee obtains possession, to cure such default,
provided that such Leasehold Mortgagee shall first agree, in writing, to proceed diligently to remedy
such default after it obtains possession of the Demised Premises, provided, however, that such
extension of time shall not subject Landlord to either civil or criminal liability; and-
(aa) in no event shall the Leasehold Mortgagee be required to cure
a default not susceptible of cure by the Leasehold Mortgagee or its nominee or purchaser; and
In the event that more than one Leasehold Mortgagee qualifies to receive a new lease pursuant to the
terms of this Section, such new lease shall be entered into with the holder of the Leasehold
Mortgagee .that is most senior in priority. Upon the execution and delivery of such new lease, any
subleases that may have theretofore been assigned and transferred to Landlord shall thereupon be
assigned and transferred,without recourse by Landlord,to the new tenant; and
(c) return such new lease to Landlord, duly executed and acknowledged, within
ten (10) days after receipt thereof from Landlord.
1.9 Except as otherwise provided in Section 8 of the Lease, the rights hereunder of the
Leasehold Mortgagees shall be exercisable by them in order of priority of lien of their respective
Leasehold Mortgages. The liability of any Leasehold Mortgagee acquiring Tenant's interest
hereunder shall be limited to such Leasehold Mortgagee's then interest in the Demised Premises.
Exhibit' '
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1.10 No Leasehold Mortgagee shall be liable, as tenant, under the provisions of the Lease
unless and until such time as it becomes, and then only for as long as it remains, the owner of
Tenant's interest hereunder.
1.11 Notwithstanding anything to the contrary contained in the Lease, all proceeds arising
from any casualty insurance, business interruption insurance, rental loss insurance or similar
insurance policy relating to the Demised Premises and/or any improvements now or hereafter located
thereon, and all proceeds of any award or payment made in connection with any condemnation or
eminent domain proceeding (or deed or other transfer under threat of the same or in lieu thereof)
involving all or any part of the Demised Premises and/or any improvements now or hereafter located
thereon, shall be paid to the Leasehold Mortgagees for application in accordance with their respective
Leasehold Mortgages.
1.12 Landlord shall, within thirty (30) days after the written request of any Leasehold
Mortgagee:
(a) acknowledge in writing to them, or to any of them,the receipt by Landlord of
any notice or instrument given, sent, or delivered to Landlord pursuant to the provisions of this
Article; and/or
(b) furnish to them, or to any of them, a written statement, duly acknowledged, of
the following items:
(i) the amount of net rental and additional rent due, if any;
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(ii) whether the fire and other insurance required by the Lease have been
supplied in compliance therewith;
(iii) whether the Lease is unmodified and in full force and effect (or, if
there have been modifications, that the same are in full force and effect as modified and stating the
modifications);
(iv) whether, to the best knowledge and belief of Landlord, Tenant is in
default, specifying the nature of any known default and any pertinent facts with respect thereto; and
(v) whether Landlord has given Tenant any notice of default under the
lease, and if given,whether the default set forth therein remains uncured.
Any such statement shall be for the sole benefit of the Leasehold Mortgagee and shall have no effect,
as an estoppel or otherwise, with respect to any third party.
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1.13 In no event shall Landlord terminate the Lease as a result of any failure by Tenant to
pay any Capital Events payments when due (or any failure by any Leasehold Mortgagee to timely
cure any such failure). Furthermore, in no event shall Landlord terminate this Lease as a result of
any default by Tenant under the Regulatory Agreement or the Bond Regulatory Agreement (or any
failure by any Leasehold Mortgagee to timely cure any such failure).
2. Notwithstanding anything to the contrary contained elsewhere herein, upon the acquisition by
any Leasehold Mortgagee of leasehold title to the Demised Premises, whether by foreclosure, deed in
lieu of foreclosure, acceptance of a new lease pursuant to the terms of the Lease or otherwise, the
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Exhibit"F"
obligation to pay rent under the Lease(or any such new lease), including,without limitation, any past
due rents due under any such lease, shall irrevocably terminate, excepting only in the event
Corporation for Better Housing or an Affiliate thereof shall become owner of the Site (whether of a
'leasehold or greater interest).
3. Notwithstanding anything to the contrary contained elsewhere herein, upon the acquisition by
any Leasehold Mortgagee of leasehold title to the Demised Premises,whether by foreclosure, deed in
lieu of foreclosure, acceptance of a new lease pursuant to the terms of the Lease or otherwise, the
restrictions, limitations and obligations set forth in Article 6 of the Lease (or any such new lease)
shall irrevocably terminate, excepting only in the event Corporation for Better Housing or an
Affiliate thereof shall become owner of the Site(whether of a leasehold or greater interest).
4. Notwithstanding anything to the contrary contained elsewhere herein, upon the acquisition by
any Leasehold Mortgagee of leasehold title to the Demised Premises,whether by foreclosure, deed in
lieu of foreclosure, acceptance of a new lease pursuant to the terms of the Lease or otherwise, the
restrictions, limitations and obligations set forth in Article 1 of this Rider, as incorporated into the
Lease (or any such new lease), shall irrevocably terminate, excepting only in the event Corporation
for Better Housing or an Affiliate thereof shall become owner of the Site (whether of a leasehold or
greater interest).
Exhibit"F"
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LIST OF EXHIBITS
ExhibitA Site Map................................................................................:........................ Pages
Exhibit B Site Legal Description...................................................................................._Pages
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Exhibit C Memorandum of Lease..................................................................................._Pages
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Exhibit D Schedule of Performance ............................................................................... Pages
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Exhibit E Scope of Development................................................................................... Pages
Exhibit F Ground Lease Rider......................................................................................._Pages
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