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HomeMy WebLinkAboutContract 1507 • RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) HOC IS 2007-0027271 ) 01/12/2007 Redevelopment Agency of the ) City of Cathedral City ) Conformed Copy 68-700 Avenida Lalo Guerrero ) Has not been compared with original Cathedral City, CA 92234 ) Larry W Ward Attn: Executive Director ) County o yRilerkide Assessor,, Cy Count Clerk & Recorder APN 687-322-007 SPACE ABOVE THIS LINE FOR RECORDER'S USE EXEMPT FROM RECORDING FEES PURSUANT TO GOVERNMENT CODE SECTIONS 6103&27383 CONDITIONAL GRANT AND SECURITY AGREEMENT • 4ti vItfryld 1 CATH.0046/DOC/0178-2 THIS CONDITIONAL GRANT AND SECURITY AGREEMENT (this "Agreement") is made on ,Jcf fn f1_4-- 27 , 200 by and between Richard Gordon and Deborah Gordon (together, "Owner") and the Redevelopment Agency of the City of Cathedral City, a public body, corporate and politic (the "Agency"), with respect to that certain real property more commonly known as 68-415 Perez Road, Cathedral City, California, as legally described in Exhibit "A" attached hereto and incorporated herein by this reference (the "Property"). RECITALS: WHEREAS, the Agency is authorized and empowered by the Community Redevelopment Law, Chapter 1 of Division 24 of the California Health and Safety Code, as amended, ("CRL") to permit owner participation in the redevelopment of real property; to enter into agreements for the acquisition, disposition and development of property or to otherwise assist in the redevelopment of real property within a redevelopment project area conforming with a redevelopment plan adopted for such area; to receive consideration for the provision of redevelopment assistance; and to make and execute contracts and other instruments necessary or convenient to the exercise of its powers; and WHEREAS, pursuant to the CRL, the City of Cathedral City (the "City") and Agency have adopted a Redevelopment Plan and related Implementation Plan, as amended (collectively, the "Redevelopment Plan"), for a project area within the City (the "Project Area") which includes the Property; and WHEREAS, Owner desires to construct the "Project", comprised of an addition totaling approximately 3,000 square feet and certain building facade and parking lot improvements upon Owner's existing auto repair business (more commonly known as "Quality Transmission") located upon the Property in accordance with City Design Review No. 05-002 (the "Design Review Requirements"); and WHEREAS, the Design Review Requirements include various conditions which are making the Project infeasible for Owner; and WHEREAS, among other conditions, the Design Review Requirements require Owner to pay for the expense of the installation of a fire hydrant upon the Property; and WHEREAS, Owner has requested certain financial assistance from the Agency in the form of a conditional grant in an amount not to exceed twenty-five thousand dollars ($25,000), to pay for the expense of the installation of the fire hydrant (the "Grant"); and WHEREAS, the Agency finds that; Owner has no other means developing the Project in the absence of the Grant, Owner's Project will significantly improve the appearance of the Property and other properties surrounding the Property, and the 2 CATH.0046/DOC/0178-2 Project is an initial step towards implementation of an Agency desired "Business Façade Program" which will encourage physical improvements to existing businesses within the Project Area. WHEREAS, the Agency finds that providing Owner the Grant under the terms of this Agreement is consistent with the Redevelopment Plan and is in the vital and best interest of the City and its residents and will assist in the elimination of blight within the Project Area. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED BY EACH OF THE PARTIES HERETO, THE PARTIES HERETO AGREE AS FOLLOWS: Section 1. RECITALS The Recitals set forth above are incorporated into this Agreement as though fully set forth herein. Section 2. TERM OF GRANT The principal amount of this Grant and accrued interest shall be due and payable the Agency in full in a single balloon payment, upon the earlier of (i) the sale or transfer of the Property or any interest therein (unless permitted by the Agency as provided under Section 17 below), or (ii) any default under this Agreement as provided under Section 13 (either, a "Repayment Event"); provided however, the Grant and accrued interest shall be forgiven in full, on the fifth (5th) anniversary of the date a Notice of Completion is issued for the Project by the City if a Repayment Event has not occurred prior to such time (the "Term"). Upon expiration of the Term, this Agreement shall automatically terminate without further action required on the part of either party, unless the Agency has filed an Agency Declaration (as defined under Section 13 below) upon the Property. Section 3. INTEREST CHARGES Interest shall accrue on the unpaid principal balance of the Grant at a rate of seven percent (7%) per annum, simple interest, calculated on the basis of a 365 day year, with interest accrual to commence upon disbursement of any portion of the Grant. Section 4. DISBURSEMENT OF GRANT The Grant shall be disbursed by the Agency for the cost of installing the fire hydrant in one or more installments directly to the Desert Water Agency or its contractors and subcontractors as determined appropriate by the Agency in its sole discretion, and/or the Owner upon the Agency's receipt from the Owner of evidence 3 CATH.0046/DOC/0178-2 reasonably acceptable to the Agency of Owner's expenditures for the same, upon Owner's satisfaction, or the Agency's waiver, of the following conditions: (a) Owner shall have executed this Agreement and this Agreement shall have been recorded upon the Property with the Riverside County Recorder's Office; and (b) Owner shall not be in breach of this Agreement. Section 5. NO ASSOCIATION BETWEEN CITY AND OWNER The Agency and Owner in no way intend for this Agreement to give rise to or create any relationship of partnership, joint venture, or any other form of association of any kind or nature between Agency and Owner. Section 6. PRINCIPAL REPRESENTATIVES a. Richard Gordon is designated as the principal representative of Owner for purposes of communicating with Owner on any matter associated with the performance of this Agreement. b. Janet Davison is designated as the principal representative of the Agency for purposes of communicating with the Agency on any matter associated with the performance of this Agreement. c. Either party may designate another individual as its principal representative by giving written notice of such designation to the other party. Section 7. NOTICES All notices given hereunder shall be in writing. Notices shall be presented in person or by certified or registered United States Mail, return receipt requested, postage prepaid or by overnight delivery by a nationally recognized delivery service to the addresses set forth below. Notice presented by United States Mail shall be deemed effective on the third business day following the deposit of such Notice with the United States Postal Service. This Section shall not prevent the parties hereto from giving notice by personal service or telephonically verified fax transmission, which shall be deemed effective upon actual receipt of such personal service or telephonic verification. Either party may change their address for receipt of written notice by notifying the other party in writing of a new address for delivering notice to such party. To Agency: Redevelopment Agency of the City of Cathedral City Civic Center 68-700 Avenida Lalo Guerrero Cathedral City, California 92234 Attention: Executive Director 4 CATH.0046/DOC/0178-2 With a copy to: Green, de Bortnowsky and Quintanilla 23801 Calabasas Road, Suite 1015 Calabasas, California 91302 Attention: Charles R. Green To Owner: Richard Gordon and Deborah Gordon 68-415 Perez Road Cathedral City, California 92234 Section 8. ENTIRE AGREEMENT This Agreement contains the entire agreement between the Agency and Owner with respect to the subject matter hereof and supersedes all prior understandings, if any, with respect thereto. This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written instrument signed by each party or by its agent duly authorized in writing or as otherwise expressly permitted herein. The Agency and Owner do not intend to confer any benefit hereunder on any person, firm, corporation or entity, other than the Agency and Owner and their successors and assigns. Section 9. RECORDATION This Agreement and any amendments or modifications hereto shall be executed by the parties in a format and manner which permit recordation of the same against Property in the official records of Riverside County, California. Section 10. GOVERNING LAW AND VENUE This Agreement shall be governed by, interpreted under, construed and enforced in accordance with, the laws of the State of California. This Agreement is made and entered into in the County of Riverside, State of California, and any legal actions or proceedings arising from or related to this Agreement shall be brought in the County of Riverside, State of California. Section 11. CAPTIONS AND HEADINGS The headings and captions of the various sections and paragraphs of this Agreement have been inserted only for the purpose of convenience and are not a part of this Agreement and shall not be deemed in any manner to modify, explain, expand or restrict any of the provisions of this Agreement. Section 12. AMBIGUITIES This Agreement is in all respects intended by each party hereto to be deemed and construed to have been jointly prepared by the parties and the parties hereby 5 CATH.0046/DOC/0178-2 expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them. Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement. Section 13. DEFAULT a. Failure by Owner to complete the Project and comply with all the Design Review Requirements as evidenced by the City's issuance of a Notice of Completion for the Project within eighteen (18) months following the Agency's initial disbursement of any portion of the Grant, Owner's failure to pay the Grant and accrued interest charges to the Agency if and when required under this Agreement, Owner's failure to timely pay any real property taxes or assessments levied upon the Property, Owner's failure to timely pay any promissory note or loan agreement payment secured by a deed of trust or similar lien against the Property, Owner's failure to maintain the Property and all improvements located upon the Property in compliance with the City Municipal Code, or Owner's breach of any material term or condition of this Agreement, shall each constitute a default under this Agreement; provided however, that if Owner cures said default within five (5) calendar days after receipt of written notice specifying such default, Owner shall not be deemed to be in default hereunder. b. Any failure or delay by the Agency in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. The exercise by the Agency of one or more 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 Owner. c. In the event that a default of Owner remains uncured for more than five (5) calendar days following receipt of written notice of default as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, in addition to other Agency remedies as set forth in Section 14 below, Owner hereby grants the Agency a secured lien against the Property in a total amount not to exceed the Grant, accrued interest charges and any other amounts due the Agency under this Agreement. Said lien shall be perfected upon Agency's recordation of a declaration against the Property in the Official Records of the County of Riverside, California, declaring a default under this Agreement and stating the amount so due hereunder (the "Agency Declaration"). Upon the recordation of the Agency Declaration, the Agency may file a notice of default upon the Property and commence a foreclosure action upon the Property for all amounts due under this Agreement in compliance with California law. Section 14. CUMULATIVE REMEDIES In the event of a breach or default of this Agreement, the Agency shall be entitled to all remedies available pursuant to the terms of this Agreement, at law and in equity, including, but not limited to, perfecting the Agency's lien interest in the Property as provided in Section 13 above and foreclosing upon the same in compliance with all 6 CATH.0046/DOC/0178-2 applicable laws. All such remedies are cumulative in nature and may be asserted by the Agency in the alternative and the assertion of any particular remedy by the Agency shall not be deemed an exclusive election of remedies or waiver of any other rights conferred on the Agency by the terms of this Agreement. Section 15. SEVERABILITY Every provision of this Agreement is intended to be severable. If any provision of this Agreement or the application of any provision hereof to any party or circumstance is declared to be illegal, invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction, such invalidity shall not affect the other terms and provisions hereof or the application of the provision in question to any other party or circumstance, all of which shall continue in full force and effect. Section 16. WAIVERS No waiver of any breach of any agreement, provision or failure of a condition herein contained shall be deemed a waiver of any preceding or succeeding breach or failure thereof, or of any other agreement, provision or condition contained herein, nor an extension of time for performance of any other obligation or act. Section 17. ASSIGNMENT AND ASSUMPTION This Agreement shall not be assignable by Owner. Notwithstanding the foregoing, in the event of sale or transfer of the Property, the Agency may, in its sole discretion which may be withheld, allow Owner's successor-in-interest to the Property to assume the obligations of the Owner under this Agreement under terms acceptable to the Agency in its sole discretion. Section 18. REVIEW BY ATTORNEYS Each party hereto has had its attorneys review this Agreement and all related documents. Each party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation. Section 19. REPRESENTATIONS OF PERSONS EXECUTING AGREEMENT The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent. Section 20. SUCCESSORS, HEIRS AND ASSIGNS Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the parties to this Agreement and, likewise, shall inure to the benefit of the 7 CATH.0046/DOC/0178-2 successors, endorsees, assigns, heirs, and personal representatives of each of the parties. Section 21. ATTORNEY'S FEES If an action is commenced to enforce or interpret any provision of this Agreement, or for damages alleged to have resulted from a breach of this Agreement, the prevailing party, as determined by the court, shall be entitled to recover from the other party, reasonable attorneys' fees and expenses incurred in the action as the court may award, including, expert witness fees, photocopying and telephone charges, deposition costs, travel expenses and investigation expenses. In addition, the prevailing party shall be entitled to its reasonable attorneys' fees and expenses incurred in any post-judgment proceeding to collect or enforce a judgment. This provision shall survive the merger of this Agreement into any judgment based on this Agreement. Section 22. PREPAYMENT OF GRANT Owner may pay all or a portion of the Grant at any time prior to expiration of the Term without any penalty or premium. All payments made under this Agreement shall be applied first to the interest due on the Grant and then to the principal amount of the Grant. [END OF PAGE] 8 CATH.0046/DOC/0178-2 IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THIS AGREEMENT TO BE EXECUTED AS OF THE DATE FIRST WRITTEN ABOVE. "Agency" "Owner" The Redevelopment Agency By: W of the City of Cathedral City, Richard Gordon a public body, corporate and politic /� BY: J&)6r7// L BY: 14 7-)77,?. Deborah Gordon Donald E. Bradley, Executive Direct ATTEST BY: / Ll Aff Pat ammers, Agency Secretary APPROVED AS TO CONTENT: BY: (1,41Lf L 4ret Davison, evelopment Director APPROVED AS TO FORM: Agency Counsel / BY: Green, de Bortnowsky & Quintanilla, LLP 9 CATH.0046/DOC/0178-2 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Lot 8 of Parcel Map No. 5749, in the City of Cathedral City, County of Riverside, State of California, as per plat recorded in Book 14 of Parcel Maps, Page 17, in the Office of the County Recorder of said county. APN 687-322-007 10 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT r' &•("&<> '-e<' • <.•:..<,:e<.c-<•.- '-ec <cce<c<%ercrcrerc<:ercrec •':. c-<?.=‘(:,c-c',.e c.(errererer,Q<0 .' <c w',' State of Cali nia ff ss. lt, County of iV erSici -e_ s On 2o0 , before me, ✓ hr7`.. Ml2 , /2a/11°Y iQo ?cii f L , � Date Name and Title of Officer(e.g.,'Vane Doe, tary Public') personally appeared 41.7 1 /le M ' -s /t , / Name(s)of Signer(s) • L rsonally known to me El proved to me on the basis of satisfactory q It, evidence 9 AA 3 e to be the ers whose name) / '?' ii JOSEFINAMEZA subscribed to the within instrument and , ""t Commission#1547287 acknowledged to me that hP/tiaqy executed z,- ..4-w'� Notary Public-California i Z t, the same in bi�(rler/their authorized nv, Riverside county capacity(i and that by higher/t#ieir My Comm.Expires Feb 17,2009 Signatur on the instrument the person, or '?' li the entity upon behalf of which the personO ' acted, executed the instrument. ie WITNESS my hand and official seal. 1 ;1, Place Notary Seal Above _ Signature of Notary Public 9 g 9 l,Cy OPTIONAL 1, Though the information below is not required by law, it may prove valuable to persons relying on the document ‘?, I0, and could prevent fraudulent removal and reattachment of this form to another document. y, Description of Attache oc �ent n A A Title or Type of Document: on de 4-4�-+•�_ `,'i d 4+ 6 ecvr a � ,y- ,rnu nn•+ ''' Document Date: .—t C m rr.l 4( a'�4 7-4)15 iO Number of Pages: I 0 ',! � � ��r r J o c6 r r Signer s) Oth r Than Named Aboe: �*' e. � w, ;� , 1, p,,, eis � 4.ry .y � Q�D ol @ Capacity(ies) Claimed by ol i!, Signer's Name: Sa RIGHT THUMBPRINT r ❑ Individual OF SIGNER A n Top of thumb here Corporate Officer—Title(s): I+ e h,G S 2CY i' , i„ Li Partner—❑ Limited ❑ General `� y .?, 1% ❑ Attorney in Fact yl 1 ❑ Trustee '?' it CI Guardian or Conservator '' e ❑ Other: i, Signer Is Representing: ^ ..-- , i .•I •,....c. .4,_ , • riff 0/ 0 1999 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 9131 -2402•www.nationalnotary.org Prod.No.5907 Reorder Call Toll-Free 1-800-876-6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT .r -.- - •- - - - - - - , ',e,<',e'<' c�c`-e�c'-e�c',e�c',ec',e'<>.c cc',e�c'.c�c,00,,er•<",O>, 'c�',e�,•,e'<ie� ,c;�',e,<`_e�' '-cc k• State of California o ss. 1 e County of i V 4( 5.A 41- 1� On Jain •. 3, 2O0"� , before me,`J'a'�'t'�ti`-ti '\ , PA) )1 c.. 0 a1- j , , Date e me and Title of Officer(e.g.,"Jane Doe,Notary Public") •--- I personally appeared -)Ovt a.. s' 1 Name(s)of Signer( ' r. rsonally known to me proved to me on the basis of satisfactory 1ty evidence ;• iit: JOSEFINA MEZA Ity Commission#1547287 to be the erson(�1 whose Dame(f) _Wake ZQ�'' i Notary Public-California subscribed to the within instrument and ),' iq Z ,1 l� tf `✓ Riverside County acknowledged to me thatLske/thoy executed ', 1� My Comm.Expires Feb 17,2009 the same in 1315/hb+r/tkeir authorized 0. 'c ca aci .4-}, and that by his/ther/ttoeir '• signature(a) on the instrument the person(,), or ?I the entit upon behalf of which the person(s) P. 1,4 ac -1, exe• ted the instrument. sc ti ', ` WITNESS y hand and official seal. It; / 'Ziis∎ T 'N '?1 1< ; Place Notary Seal Above "signature of Notary Public, '1 OPTIONAL $'' 1a y. 1� Though the information below is not required by law, it may prove valuable to persons relying on the document '0, ti and could prevent fraudulent removal and reattachment of this form to another document. 'I 1, Description of Attache octArn e t oi l Title or Type of Document: D I /■I r« rn- ?; YPngr (fl� ��LZGt►q ��°Cv r le 9l I.1 Document Date! rr►.�Jd.e ?'7, Zoo(o Number of Pages: 1 a ,)' 4 Si ner s r Than Named Ab veRick v ! it or a.K C Zprcian PJ Arnm'IS J6i 4-14Vtsar. -411'c 7 Cov►Ac. It; Caner's Name: Cl�med� by $ig�e 41� y1 Signer's Name: Y RIGHT THUMBPRINT ^1 ' ❑ Inylividual OF SIGNER yl 'SW-Corporate Top T thumb here [ Corporate Officer—Title(s): �l;,,e e� v� j(d c r y1 i,i, ❑ Partner—❑ Limited ❑ General 's. (t ❑ Attorney in Fact 's I,: ❑ Trustee sl It. ❑ Guardian or Conservator '1 rt:' ❑ Other: p1 i01 J 14 Signer Is Representin 0 Ms "B o ( t(11 '1 ( ck_ �b._, - - av^-.>'-a r-v-a.--. - e'"s- ea'-er-d d-,d'.e�.:ar.e,er•<e a as;e>'- .-a��ea'e;-"ry:.-ate'a. , ©1999 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402•www.nationalnotary.org Prod.No.5907 Reorder.Call Toll-Free 1-800-876-6827 • CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ) )ss. County of Riverside ) On December 27, 2006, before me, Sara Brightbill, Notary Public Date Name and Title of Officer(e.g., "Jane Doe, Notary Public") personally appeared Richard Gordon and Deborah Gordon Name(s)of Signer(s) . SARA BRIGHTBILL ® proved to me on the basis of satisfactory evidence to Commission# 1464573 be the persons, whose names, are subscribed to the , Notary Public-California within instrument and acknowledged to me that they 4'4? Riverside County executed the same in their authorized capacities, and tt My Comm.Expires Jan 20,2008 that by their signatures, on the instrument the persons, or the entity upon behalf of which the persons, acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above \ �•� Signature of Notic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Conditional Grant and Security Agreement Document Date: December 27, 2006 Number of Pages: Ten Signer(s)Other Than Named Above: Donald E. Bradley Capacity(ies)Claimed by Signer Signer's Name: Same ❑ Individual Right Thumbprint ❑ Corporate Officer-Title(s): of Signer ❑ Partner- ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: Redevelopment Agency of the City of Cathedral City