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HomeMy WebLinkAboutRDA Packet 2000/01/18 ~{~ -=-..- - - CIlY OF TUISDAY, JANUARY 18, 2000 CHUIA VISTA COUNCIL CHAMIERS 6:00 P.M. PUBLIC SERVlCD BUILDING (I_EDIATILY fOLLOWING TNI CITY COUNCIL MinING) JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER I. ROLL CALL Agency/Council Members Davis, Moot, Padilla, Salas, and Chair/Mayor Horton CONSENT ITEMS (lIem2) (Will be voted on immediately fallowing the Council Consent Calendar during the City Council meeting) The staff recommendations regarding the following item(s) listed under the Consent Colendar will be enacted by the Agency by one molion without discussion unless an Agency member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Colendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 2. AGENCY/COUNCIL RESOLUTION APPROVING THE FIRST AMENDMENT TO THE ASSESSMENT DISTRICT NO. 90-2 REIMBURSEMENT AGREEMENT PROVIDING FOR REPAYMENT TO THE AGENCY OF AN OUTSTANDING $440,087 LOAN-On March 9, 1993, the City/Agency entered into an agreement with the Darling Delaware Company that deferred payment of the assessment fees for their property located on Otay Valley Road. The deferral was granted due to ongoing efforts to clean up the property and the resulting limitations on developability and sale of the property. The Agency loaned to Darling Delaware the assessment fee which was to be repaid to the Agency upon development or sale. In December 1999, Darling Delaware sold the property to LandBank. Landbank will in turn be selling the property to the end user [Investment Development Services (IDS)]. The property is presently in escrow with the transaction scheduled to close in March 2000. LandBank has requested a deferral of the fees until after IDS closes the property. IDS has agreed to pay the assessment district fees after they purchase the property. [Community Development Director] Staff Recommendation: Council/Agency adopt the resolution. ORAL COMMUNICATIONS This is an opportunity for the generol public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generolly prohibits the Redevelopment Agency from taking aclion on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak Under Orol Communications Form" avaüable in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up aclion. ACTION ITEMS The items listed in this seclion of the agenda are expected to elicit substantiol discussions and deliberations by the Councü, staff, or members of the generol public. The items wül be considered individuolly by the Council and staff recommendations may in certain cases be presented in the oltemative. Those who wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the City Clerk prior to the meeting. T ~ - AGENDA -2. JANUARY 18, 2000 3. AGENCY RESOLUTION CONDITIONALLY APPROVING FINANCIAL ASSISTANCE IN THE FORM OF A RESIDUAL RECEIPT LOAN FROM THE LOW AND MODERATE INCOME HOUSING FUND IN AN AMOUNT NOT-TO.EXCEED $1,387,152 TO CHEUEA INVESTMENT CORPORATION FOR THE ACQUISITION AND REHABILITATION OF PEAR TREE MANOR APARTMENTS-an 12/7/99, the Council and Housing Authority held a public hearing to consider the issuance of tax exempt obligations to finance the Chelsea Investment Corporation (Chelsea) acquisition and rehabilitation of a 119 unit complex known as Pear Tree Manor located at 1025 Broadway. Chelsea is in the process of preparing an application for an allocation of the 2000 state ceiling on private activity bonds for multi-family rehabilitation projects from the California Debt Limit Allocation Committee (CD LAC). The application process is competitive and needs to demonstrate readiness to complete the project and strong support from the community. Staff has reviewed Chelsea's most recently submitted pro forma which indicates an approximate financing gap of $1,387,152. Staff is recommending approval of the resoiution in order for Chelsea to submit an application to CD LAC by the 2/15/2000 deadline. [Community Development Director] (Continued from the meeting of January 11, 2000) 4/5THS VOTI RIQUIRID Staff Recommendation: Agency adopt the resolution. ITEMS PULLED FROM CONSENT CALENDER .~':U'.:I'J.111IoJ.-J. 4. DIRECTOR'S REPORT(S) 5. CHAIR(S) 6. AGENCY MEMBER COMMENTS "'JlI.I'I'III",I~I. The meeting will adjourn to an adjourned Redevelopment Agency meeting on January 25, 2000 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect the interests of the City. The Agency is required by law to rerum to open session, issue any reports of /imJl action taken in closed session, and the votes taken. However, due to the typicol length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency's rerum from closed session, reports of /imJl aclion taken, and adjoumment will not be videotaped. Nevertheless, the report of finol aclion taken will be recorded in the minutes which will be avaüable in the Office of the Secretary to the Redevelopment Agency and the City Clerk's Office. 7. CONFERENCE WITH REAL PROPERTY NEGOTIATOR ..Pursuant to Government Code Section 54956.8 Property: Agency-owned parcels at the northwest corner of Third Avenue and H Street Negotiating Parties: Redevelopment Agency (Chris Salomone) and Chrismatt Corporation, a California Corporation, dba Pieri Company (James V. Pieri) Under Negotiations: Price and terms for disposition/acquisition T' ~ - AGENDA -3. JANUARY 18, 2000 8. CONFERENCE WITH RIAL PROPERTY NEGOTIATOR ..Pursuant to Government Code Section 54956.8 Property: 1) 565-010-30 and 567-011-05 Midbayfront 96.57 acres 2) 567-010-28 Bayfront Park 4.94 acres 3) 567-011-01,565-010-12,565-010-15, SDG&E ROW 9.8 acres (appx) portion of 565-01 0-18 4) 567-021-11, portion of 565-290-39 SD&AE ROW 2.3 acres (appx) 5) 565-310-09 & 565-310-25 Street Merziotis 6.35 acres 6) 567-011-04 Marina Motor Hotel 1.0 acres 7) 567-010-18 Cappos 2.01 acres 8) 567-010-19 Shangri La 2.73 acres 9) 567-021-32 Lagoon Drive Park 1.14 acres Negotiating Parties: Redevelopment Agency/City of Chula Vista (Chris Salomone); Chula Vista Capital, B.F. Goodrich, SDG&E, SD&AE, Tuchscher Development Enterprises, Inc. Under Negotiations: Price and terms for disposition/acquisition or' ~ - ..JOINT REDEVELOPMENT AGENCy/CITY COUNCIL AGENDA STATEMENT ITEM No. ~ MEETING DATE 1/18/00 ITEM TITLE: RESOLUTION APPROVING THE FIRST AMENDMENT TO THE ASSESSMENT DISTRICT NO. 90-2 REIMBURSEMENT AGREEMENT PROVIDING FOR REPAYMENT TO THE AGENCY OF AN OUTSTANDING $440,087 LOAN SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR W-~ (S Q REVIEWED By: EXECUTIVE DIRECTOR (4/STH. VOTE: YES- No.....L) On March 9, 1993, the City of Chula Vista and the Redevelopment Agency (City/Agency) entered into an Agreement with the Darling Delaware Company that deferred payment of the Assessment Fees for their property located on Otay Valley Road (see Attachment 1). The deferral was granted due to ongoing efforts to clean-up the property and the resulting limitations on developability/sale of the property. The Agency paid the Assessment and "loaned" to Darling Delaware the $440,087 Assessment fee which was to be repaid, upon development or sale, to the Agency. The Darling Delaware Company sold the property to LandBank in December 1999. LandBank will in turn be selling this property to the end-user. The property is presently in escrow to Investment Development Services (IDS), with the transaction scheduled to close in March 2000. LandBank has requested a deferral of the fees until after IDS closes the property. Staff supports the amendment (see Attachment 2) to defer the fees due to the fact that LandBank is not an end-user and IDS has agreed to pay the Assessment District fees after they purchase the property. It is recommended that the City Council and the Redevelopment Agency adopt the resolution amending the Assessment District No. 90-2 Reimbursement Agreement providing for repayment to the Agency of an outstanding $440,087 loan. Not applicable. BackQround As noted above the City/Agency entered into a deferral agreement with the Darling Delaware Company on March 9, 1993. The Agency "loaned" $440,087 to the Darling Company that was to be repaid upon the completion of work required to make the property a developable site. This required completion of hazardous materials remediation and reguiatory agency approval thereof. The loan was to be repaid in 4 equal quarterly installments. The first payment was to be paid gO days after the certification of the site as a developable property. ó'J-1 T TT - PAGE 2, ITEM - MEETING DATE 1/18/00 The original deferral agreement contained a number of acceleration clauses that could be triggered by Darling Delaware's failure to reach specific property remediation milestones. If triggered, these provisions could have required Darling Delaware to repay the loan sooner than staff is now proposing and to pay interest on the loan. Staff believes that these provisions should not be invoked because of Darling Delaware's continuous good faith efforts to ready the property for development in the face of regulatory delays and third party litigation. All of these issues appear now to be resolved. The Darling Delaware Company has sold the property to LandBank. LandBank in turn will be selling the property to an end user that will develop the property. The property is presently in escrow to Investment Development Services, Inc. (IDS). The escrow is pianned to close in mid-March 2000. iDS has committed to pay the Assessment District fees in the purchase agreement with LandBank. IDS will begin payment of the Assessment District gO days after the close of escrow with LandBank, as laid out in the deferral agreement. In the event the sale to IDS does not occur, LandBank will have a one-year deferral period. If the property remains unsold at the end of this year, the 151 installment will be due 90 days after year-end, with each subsequent payment due 90 days thereafter. If LandBank, IDS or a subsequent property owner does not pay the Assessment fees, a lien will be placed on the property. Staff supports the amendment to the deferral agreement because it supports the redevelopment of an important property within the Otay Valley Road Redevelopment area. The Agency will not be collecting interest on the outstanding assessment fee, which represents approximately $24,000 over the one year deferral period considering a 6% interest rate. H :\HOME\COMMOEV\ST AFF HEP\ 1 \25\OOjehovah.doc ~-~ T' ~ - AGENCY RESOLUTION NO. AND COUNCIL RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE ASSESSMENT DISTRICT NO. 90-2 REIMBURSEMENT AGREEMENT PROVIDING FOR REPAYMENT TO THE AGENCY OF AN OUTSTANDING $440,087 LOAN WHEREAS, the City of Chula Vista and the Redevelopment Agency (City/Agency) entered into an Agreement with the Darling Delaware Company that deferred payment of the Assessment Fees for their property located on Otay Valley Road; and WHEREAS, the deferral was granted due to ongoing efforts to clean-up the property and the resulting limitations on developabilitylsaie of the property; and WHEREAS, the Agency paid the Assessment and "loaned" to Darling Delaware the $440,087 Assessment fee which was to be repaid to the Agency upon readiness of the property for development; and WHEREAS, the Darling Company sold the property to LandBank in December 1999; and WHEREAS, LandBank will be selling the property to the end-user. The property is presently in escrow to Investment Development Services (IDS), with the transaction scheduled to close in March 2000; and WHEREAS, LandBank has requested a deferral of the fees until after IDS closes the property; and WHEREAS, staff supports this deferral due to the fact that Darling Delaware has proceeded in good faith to prepare the property for development as contemplated by the original deferral agreement and, appropriate provision has been made for repayment of amounts owed in the proposed amendment; LandBank is not an end-user and IDS has agreed to pay the Assessment District fees after they purchase the property. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula Vista and the Redevelopment Agency approve the first amendment to the Reimbursement Agreement for Assessment District 90-2 in the form presented with such minor modifications as may be approved or required by the City/Agency Attorney. Presented by Approved as to form by ŒL ~~ Chris Salomone Director of Community Development H: \HOM EICOM M D EVlRESOSlla ndbankc.doc .;2-.3 T' IT - _. r RileD.. /5-U¡ 3 .'~ Æ - I ~c; <0 ATTACHMENT 1 c¡ J - D ~Q 1./ Lj 7 () (P 1'1'4f-/'1bl '-f/~'<13 ~) Recording Requested y and f' When Recorded Mail To: '~/ . '1.;,,1 f) ~ ~,,' './ .> CHULA VISTA REDEVELOPMENT AGENCY Q_b~ n'/-c"'- 276 Fourth Avenue }:>- sJ' / Chula Vista, CA 91910 Attention: Sylvia Simmons Assessors Parcel Number(s): 644-041-01 through 644-041-03 and 644-041-05 through 644-041-14 and 644-041-17 through 644-041-19. This document does not grant, assign, transfer, conveyor vest title to real property within the meaning of Section 11911 of the California Revenue and Taxation Code, and hence NO DOCUMENTARY TRANSFER TAX IS DUE. The real property is located in the City of Chula Vista, County of San Diego, State of California. ASSESSMENT DISTRICT NO. 90-2 REIMBURSEMENT AGREEMENT THIS AGREEMENT ("Agreement") is made as of this..-21!L day of March, 1993, by and among the CITY OF CHULA VISTA ("City"), the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ("Agency"), and the DARLING-DELAWARE COMPANY, INC., a Delaware Corporation, ("Property Owner"). WHEREAS, the parties hereto acknowledge that the City, pursuant to the provisions of the "Municipal Improvement Act of 1915," Division 12 of the California Streets and Highways Code ("1915 Act"); has formed Assessment District No. 90-2 (the "Assessment District") for the construction of certain street improvements in Otay Valley Road, together with appurtenances, and; WHEREAS, the parties hereto acknowledge that Property Owner owns seventeen (17) parcels of real property, each of which is designated by an Assessors Parcel Number shown above and each of which is described in the legal description marked Exhibit" A" attached hereto and incorporated herein by reference, which parcels are individually referred to herein as a "Parcel" and are all collectively referred to herein as the "Property"; and WHEREAS, the parties hereto acknowledge that the Property excludes Assessor's Parcel Number 644-041-04 (the "Excluded Land") which, although it is also owned by Property ó1-~ T' IT -.. - Owner, has not been assessed under the Assessment District proceedings and is not subject to this Agreement; and WHEREAS, the parties hereto acknowledge that each of the seventeen (17) parcels are shown with the corresponding District Assessment Numbers and Confirmed Assessments marked as Exhibit "B" and incorporated herein by reference; and WHEREAS, the parties hereto further acknowledge that the Property receives a direct and special benefit from the improvements to be financed through the Assessment District and is located within the boundaries of the Assessment District, which Assessment District is shown on the map marked Exhibit "C," as well as set forth in the legal description marked Exhibit "D," both of which Exhibits are attached hereto and incorporated herein by reference; and WHEREAS, the parties hereto acknowledge that certain agencies within the State of California contend that the Property is not eligible for further development at this time; and by reason of such contention, the parties hereto acknowledge that it is difficult to determine the value of the Property; consequently, to avoid impairing the security for and sale of bonds for the Assessment District, the City is willing to delay the sale of bonds representing the unpaid assessments levied against the Property as referred to in Section 3 hereof; and WHEREAS, the Agency is willing to advance monies to assist in the payment of the street improvements in an amount equal to the total unpaid assessment for the Property, with funds to be repaid as herein described. WHEREAS, Section 33659 (c) of the California Health and Safety Code allows the Agency to "Make such covenants and to do any and all such acts and things as may be necessary, convenient, or desirable to secure its bonds, or, except as otherwise provided in this pan, as will tend to make the bonds more marketable. . . "; and WHEREAS, between the Agency and the City, the Agency has final review and approval authority for the Property with respect to the "Confirmations" as defined in Section 6 hereof, since the Property is located within the Otay Valley Redevelopment Project Area. NOW, THEREFORE, IT IS MUTUALLY AGREED by and among the parties hereto as follows: SECTION 1. The foregoing recitals are true and correct. SECTION 2. The City has conducted such legal proceedings as are necessary, has formed the Assessment District, levied assessments against properties within the Assessment District, including the Property, and shall authorize the issuance of bonds ("Bonds") pursuant to the "Improvement Bond Act of 1915," Division 10 of the California Streets and Highways Code ("1915 Act"), in accordance with Section 3 hereof. A: \HAYNES\DARDEL. F ¡ N ó}-S" 03119/93 11:52am .... .,.,. . - ~ SECTION 3. In authorizing the issuance of the Bonds, the City shall authorize the issuance and sale of at least two series of Bonds: (a) "Series A Bonds," which shall be issued to represent the unpaid assessments on all parcels assessed except the Property; and (b) "Series B Bonds," which shall be authorized to represent the unpaid assessments on the Property. The Excluded Land, although included in the Assessment District, does not receive a direct and special benefit from the improvements to be financed through the Assessment District and, therefore, has not been and shall not be assessed and is not subject to this Agreement. SECTION 4. a. If the Bonds are issued in the structure herein described, the following rights and duties of the parties shall arise: The Agency shall advance funds to the Assessment District to ensure construction of that portion of the costs of the District attributable to the Property, based on the combined total of the "Confirmed Assessment" amounts corresponding to Assessor's Parcel Numbers 644-041-01 through 644-041-03 and 644-041-05 through 644-041-19, as specified in that certain "Final Engineer's Report for Assessment District 90-2, Otay Valley Road, Phases I & . II" dated as of June 23, 1992, relevant portions of which are attached hereto as Exhibit "E." The amount of funds so advanced by the Agency shall hereinafter be referred to as the" Advancement." The Advancement of four hundred forty thousand eighty-seven dollars ($440,087) represents a loan from the Agency to Property Owner, and Property Owner shall have an unsecured obligation to repay such loan (the "Repayment Obligation") subject to and in accordance with the provisions of this Agreement. When and if the Agency issues and sells Series B Bonds, the Repayment Obligation shall be of no further force and effect, and the then-unpaid portion of the Advancement shall become an assessment on the secured tax bill for the Property (the" Assessment Obligation"). The Series B Bonds shall not be sold until such time as the entire Property is " Available for Development", as that term is defined in Section 6 hereof or until such time as the Series B Bonds can be legally sold in the bond market as mutually agreed upon by property owner, City, and Agency. b. Notwithstanding any other provision hereof, the City agrees that when and if the City receives funding or additional assessments from any applicable source ~, through any special fee districts) that reduce or defray A:\HAYNES\DARDEL.FIN 02-(. D3/19/93 l' :52am T" ~ - the capital expenditures and/or other costs of the Assessment District, the Advancement shall be reduced in the same proportion as all other assessments in the Assessment District are reduced, and the Repayment Obligation and/or Assessment Obligation, as is then applicable, shall likewise be reduced proportionately. c. Notwithstanding any other provision hereof, the Agency agrees that if for any reason whatsoever the Series B Bonds (or any thereof) are not issued, then the Advancement shall be reduced by the amount of interest, transactional costs and other expenses saved because of such non-issuance which would otherwise have been attributable to the Property, and the Repayment Obligation and/or Assessment Obligation, as is then applicable, shall likewise be reduced. SECTION S. The City and the Agency acknowledge that Property Owner's ability to develop the Property depends on review of the status of the Property by various other State and local agencies with discretion over issues affecting development of the Property (collectively, the "Applicable Agencies"), including, among others, the California Environmental Protection Agency ("Cal- EPA"). The Agency and the City agree to use commercially reasonable efforts to encourage Cal-EPA and all such other Applicable Agencies to do so expeditiously so as to enable the Property to become Available for Development (as defined in Section 6 hereof) at the earliest possible date. Property Owner agrees to use commercially reasonable efforts to obtain determinations (if and as necessary) from such Applicable Agencies, the effect of which will be to allow the Property to be developed for "Any Reasonable Use." For purposes of this Agreement, the term "Any Reasonable Use" shall mean all reasonable uses applicable to the Property that are consistent with the City's General Plan, Land Use Plan, applicable zoning and other land use requirements then in effect. SECTION 6. The parties acknowledge and agree that, for purposes of this Agreement, each Parcel shall conclusively be deemed to be and become "Available for Development" at that single moment in time when Property Owner receives from the Agency, confirmations in writing, substantially in the form attached hereto as Exhibit "F" (the "Confirmations"), concurring that such Parcel is eligible for potential development for Any Reasonable Use. The Confirmations shall be executed by the Agency. The Agency shall not send the Confirmations to A:\HAYNES\OAROEL.FIN .J.7 03119/9311:53am T- ~ - Property Owner until after the Agency has received notice in writing ("Notice") from Property Owner that all Applicable Agencies, including, without limitation, Cal-EPA, have determined that investigations of and/or remedial work (if any) on such Parcel are adequate to allow development of such Parcel for Any Reasonable Use. Property Owner shall send Notice, along with all necessary and applicable correspondence and reports from Applicable Agencies, to the Agency within thirty (30) days after it has received all information and/or determinations Property Owner believes are sufficient for development of such Parcel for Any Reasonable Use. Following receipt of the Confirmations, Property Owner shall discharge the Repayment Obligation or Assessment Obligation, as the case may be, in accordance with Section 11 hereof. SECTION 7. During the term of this Agreement, Property Owner and the Agency shall make efforts to enable the Property to become Available for Development by taking the following additional actions in accordance with the following schedule: a. No later than May 1, 1993, Property Owner shall have submitted to Cal-EPA a request that Cal-EPA review the investigatory work Property Owner has completed to such date regarding the Property and containing a proposed schedule for Cal-EPA's review and approval of Property Owner's investigatory work to such date. b. Commencing upon execution of this Agreement, the Agency shall use its best efforts and reasonable diligence to cause the Regional Water Quality Control Board, San Diego Region (the "RWQCB") and the State Water Resources Control Board (the "SWRCB") to adopt the Agency's petition for an Amendment to the RWQCB's Resolution No. 88-49, which petition seeks to extend the southern boundaries of the "Salt Creek Area" to include land within the Agency's Otay Valley Redevelopment Area (the "Petition"). The parties acknowledge and agree that the foregoing obligation of the Agency is a material part of the consideration hereunder to Property Owner, since the extent of the remediation at the Property, if any is required by Cal-EPA, may be affected by adoption of the Petition. c. No later than November I, 1993, Property Owner shall have submitted to Cal-EPA a proposal that contains either of the following: (i) a proposed agreement that the A: \HA YNES\OAROEL. FIN -' -f" 03/19/93 1':53am T' ~ - extent of Property Owner's investigatory work done regarding the Property to such date is snfficient to allow Cal-EPA to determine whether remedial work, if any, is necessary at the Property; or (ii) a proposed agreement regarding the scope and type of further investigation to be done regarding the Property, if any is requested by Cal-EPA. Notwithstanding the foregoing provisions of this Section 7c and any other provision of this Agreement, in the event that the Petition has not been adopted or rejected by final action of both the RWQCB and the SWRCB or a formal decision rendered which requires further action by the Agency in order to pursue the Petition on or before August 1, 1993, then (a) the November 1, 1993 deadline set forth in this Section 7c shall be extended to the date which is ninety (90) days after the Petition is adopted or rejected by final action of both the RWQCB and the SWRCB (the "Petition Decision Date") or formal decision rendered which requires further action by Agency and (b) the deadlines set forth in Sections 7d, 7e, 7f, 7g and 8a hereof, as well as the Scheduled Completion Date (as defined below) shall each be extended by a period of time equal to the number of days between August 1, 1993 and the Petition Decision Date. d. Following Cal-EPA's determination regarding the - sufficiency of Property Owner's investigatory work done to date, but in any event no later than May 1, 1994, Property Owner shall have submitted to Cal-EPA the results of further investigation, if any, required by Cal- EPA regarding the Property. e. No later than November 1, 1994, Property Owner shall have submitted to Cal-EPA a proposal which contains either of the following: (i) a proposed agreement that no further remedial work (with the exception of ongoing groundwater monitoring) is necessary regarding the Property; or (ii) a proposed agreement regarding the extent and nature of further remedial work to be completed at the Property, if any is requested by Cal- EPA. f. No later than May 1, 1995, Property Owner shall have begun remedial work (if any is required by Cal-EPA) regarding the Property. A:\HAYNES\DARDEL.fIN ~-, 03/19/93 11:S4am T' ~ - - - g. No later than May I, 1998, Property Owner shall have completed remedial work (with the exception of ongoing groundwater monitoring or ongoing vapor recovery or extraction, if any, is required) at the Property (if any was required by Cal-EPA). SECTION 8. If at any time during the time period contemplated by the schedule in Section 7 hereof, Property Owner receives from Cal-EPA a determination in writing, the effect of which is to allow development of the entire Property for Any Reasonable Use, then (a) Property Owner shall have no further obligation to meet any of the remaining deadlines in Section 7 hereof, and (b) if similar determinations from the other Applicable Agencies have also been obtained, (I) Property Owner shall send Notice to the Agency and (II) the Agency shall send the Confirmations to Property Owner in accordance with Section 6 hereof and the Repayment Obligation or the sale of the Series B Bonds as defined in Section Ilc shall be effectuated. SECTION 9. a. In the event that Property Owner has not received Confirmations from the Agency for the entire Property by November 1, 1999 (the "Scheduled Completion Date") (extended, if applicable, as provided herein) and by such date Cal-EPA or any other applicable Agency has not made a determination, the effect of which is to allow the entire Property to be developed for Any Reasonable Use, then Property Owner shall discharge the remaining and owing Repayment Obligation in accordance with Section lid hereof. b. In the event that Property Owner has submitted Notice to the Agency as contemplated by Section 6 hereof but Property Owner has not received Confirmations from the Agency for the entire Property by the Scheduled Completion Date (extended, if applicable, as provided herein), and by such date Cal-EPA and all other Applicable Agencies have made determinations, the effect of which is to allow the entire Property to be developed for Any Reasonable Use, then the City, the Agency and Property Owner shall amend this Agreement to provide for an extension of up to six (6) months to allow the Agency to deliver the Confirmations; provided, however, that such amendment shall not contain any additional obligations on Property Owner. City and Agency shall use commercially reasonable good faith to process and grant said Confirmations as quickly as A:\HAYNES\DARDEL.FIN ó1-IO 03/19/9311:550m T' " - possible upon receipt of said Notice and Property Owner shall have no obligation to discharge the Repayment Obligation until receipt of the Confirmations. SECTION 10. a. Notwithstanding any other provision of this Agreement to the contrary, in the event that at any time and from time to time, Property Owner is unable to meet anyone of the deadlines contained in Section 7 hereof due to the failure of Cal-EPA to make a decision or take action regarding the Property, and Property Owner has exercised commercially reasonable diligence in providing Cal-EPA with information to allow Cal-EPA to make such a decision or take such action, then the City, the Agency and Property Owner shall amend this Agreement to provide Property Owner with an extension of time equal to the length of the delay caused by Cal-EPA (which extension shall in any event not be less than three (3) months to meet such deadline, and all deadlines (in the schedule set forth in Section 7 hereof) following such extended deadline, as well as the Scheduled Completion Date, shall be extended for the same period of time; provided, however, that such amendment shall not contain any additional obligations on Property Owner and; provided that the time extension does not extend the Scheduled Completion Date or Repayment Obligation beyond the ten (10) year anniversary date of the assessment lien recordation date of June 30, 1992. b. In the event that Property Owner fails to meet one of the deadlines contained in Sections 7a, 7c, 7d or 7e hereof (as such deadlines may be extended), and such failure is not due to a failure of Cal-EPA to make a decision or take action regarding the Property, then Property Owner shall immediately begin making annual interest payments to the Agency on the then-outstanding amount of the Repayment Obligation. For purposes of this Section lOb, interest shall begin accruing as of the date Property Owner misses the deadline and shall cease accruing on the first to occur of the following three dates: (i) the date on which Property Owner satisfies the obligation to which such missed deadline applied; (ii) the date on which I'roperty Owner satisfies a subsequent deadline; or (iii) the date on which Property Owner begins paying the Repayment Obligation or the City issues the Series B Bonds. The interest rate shall be the average interest rate earned by the City on the investment of its General A:\HAYNES\DARDEL.FIN 02 -II 03/19/93 11 :55am T' ~ - Funds during the period of time interest is accruing hereunder, as determined by the City's 'Finance Director and as confirmed by Property Owner. Except as provided in this Section lOb, no interest shall be due and payable on the Repayment Obligation. c. In the event that Property Owner fails to meet one of the deadlines contained in Sections 7f or 7g hereof (as such deadlines may be extended), and such failure is not due to a failure of Cal-EPA to make a decision or take action regarding the Property, then Property Owner shall pay the Repayment Obligation in accordance with Section 11(d) hereof. SECTION 11. a. If Property Owner receives Confirmations from the Agency with respect to one or more Parcels but less than the entire Property, or if one or more Parcels but less than the entire Property is sold or exchanged, Property Owner agrees to discharge that portion of the Repayment Obligation which relates to the Parcels for which Confirmations have been received or which have been sold, or exchanged, as the case may be (the amount of which discharges, for such Parcel, shall be as more specifically described in Exhibit "D" hereto, as those same amounts may be reduced in accordance with Section 4b and/or c hereof), as follows: (i) in four (4) equal installments paid on a quarterly basis, with no obligation to pay interest thereon, if such portion of the Repayment Obligation is equal to or greater than One Hundred Thousand Dollars ($100,000); or (ii) in a lump sum, if such portion of the Repayment Obligation is less than One Hundred Thousand Dollars ($100,000). The first such installment shall be paid by a date thirty (30) days after such Confirmations have been received or the sale or exchange of such Parcels has closed escrow, as the case may be. Upon such discharge of the entire repayment obligation for such Parcels, the Agency shall reduce the outstanding amount of the Repayment Obligation in accordance with Section 13a and will record an Addendum to the Notice of Assessment for such Parcels for which the Repayment Obligation has been paid. b. If, after Confirmations are received or a sale or exchange occurs with respect to one or some of the Parcels under Section llb hereof, Property Owner receives A: \HA YNES\DARDEL. FIN .;J, -/.1 03119/9311:56am T' ~ - Confirmations from the Agency with respect to all remaining Parcels, or if all remaining Farcels are all sold or exchanged, then Property Owner shall discharge the total remaining and owing portion of the Repayment Obligation in a manner and on a schedule similar to that set forth in Section Ila hereof, and the City shall not issue the Series B Bonds. c. If Property Owner receives Confirmations from the Agency for the entire Property at one time, then Property Owner shall discharge the total Repayment Obligation by exercising either of the following options, the choice of which shall be at Property Owner's sole discretion, by notifying the Agency in writing within (30) thirty days after receipt of such Confirmations: (i) paying the amount of the Repayment Obligation to the Agency in four (4) equal installments on a quarterly basis, with no obligation to pay interest thereon, the first such installment to be paid by a date ninety (90) days after Property Owner provides such notice; or (ii) requesting that the Agency immediately sell the Series B Bonds, whereupon Property Owner shall assume responsibility for the annual debt service on the Series B Bonds from the date of sale provided that the Series B Bonds can be sold at an interest rate and on terms mutually acceptable to the City, Agency and Property Owner. d. If by the Scheduled Completion Date (extended, if applicable, as provided herein) Cal-EPA and the other Applicable Agencies have not made determinations, the effect of which is to allow the entire Property to be developed for Any Reasonable Use, then Property Owner shall discharge the entire Repayment Obligation by paying the amount of the Repayment Obligation to the Agency in four (4) equal installments on a quarterly basis, with no obligation to pay interest thereon, the first such installment to be paid by a date ninety (90) days after the Scheduled Completion Date (extended, if applicable, as provided herein). SECTION 12. Notwithstanding anything in this Agreement to the contrary, Property Owner reserves the right to pay at any time, without penalty or interest (except as otherwise provided in Section lOb hereof), all or any portion of the Repayment Obligation. A: \HA YNES\DARDEL. FIN óJ -/.J 03/19/9311:56am ..--- .". - - -. SECTION 13. a. When and if Property Owner pays a portion of the Repayment Obligation, the Agency and the City shall record a partial release, establishing that the obligations under this Agreement have been satisfied in full and that the Agreement has no further force or effect with respect to the Parcel(s) for which the Repayment Obligation has been paid. When and if Property Owner pays the entire Repayment Obligation or the Series B Bonds are sold, the Agency and the City shall record a full release, establishing that the obligations under the Agreement have been satisfied in full and that this Agreement has no further force or effect with respect to the entire Property. b. If the Agency or the City fails to record a full or partial release, as required by this Agreement, within sixty (60) days after the date Property Owner has paid part or all of the Repayment Obligation or the Series B Bonds have been issued, or within thirty (30) days after Property Owner's request therefor under Section 9b hereof, then Property Owner shall, in addition to any other rights and remedies it may have at law or in equity, have the right to record such a release unilaterally. SECTION 14. If the Series B Bonds cannot be issued at an interest rate and on terms mutually acceptable to the City, the Agency and Property Owner, then the Agency agrees to extend the date on which Property Owner must commence payment of the Repayment Obligation as defined under Section 11 c for a period of ninety (90 days). SECTION 15. Property Owner shall, upon written request of the Agency, provide copies to the requesting party of any written information, data, surveys or reports theretofore provided by Property Owner to Cal-EPA or any other applicable agencies, or any written information, data, surveys or reports provided by Cal-EPA or any other applicable agencies to Property Owner. SECTION 16. Immediately upon execution of this Agreement, this Agreement shall be recorded in the Office of the County Recorder of San Diego County and shall constitute a covenant running with the land and a binding obligation of Property Owner, as well as all successors-in-interest and assignees of Property Owner. Except to the extent expressly provided in Sections lla and b hereof to the A:\HAYNES\DARDEL.FIN ~"""¡ 03/19/93 11:S8am T' 1T - - - contrary, upon sale or exchange of the entire Property or any Parcel thereof, and so long as Property Owner's successor or assignee is taking title with constructive notice of this Agreement, Property Owner shall be released from any and all obligations hereunder with respect to Property or such portion which has been sold, as applicable, and Property Owner's successor-in-title to the Property or such Parcel(s), as applicable, which have been sold or exchanged, and Property Owner's successor-in-title to the Property or such Parcel(s) shall thereafter be responsible for performing all the obligations of Property Owner hereunder with respect thereto. SECTION 17. Notwithstanding any other provision hereof, for so long as Property Owner is attempting, in good faith, to perform its obligations hereunder, Property Owner's obligations hereunder shall be temporarily suspended, and the deadlines provided herein (including, without limitation, the Scheduled Completion Date) shall be extended, by any event beyond Property Owner's control, including, without limitation, strikes, other labor disturbances, riots, delays in transportation, inability to secure materials or equipment, acts of God or the elements, fire, flood or accidents, acts of war, or acts or failure to act of governmental authorities, which prevents or delays, or substantially increases the cost of, performance of an act or covenant to be performed by Property Owner under this Agreement as long as such Scheduled Completion Date or Repayment Obligation is not extended beyond the ten (10) year anniversary date of the assessment lien recordation date of June 30, 1992. SECTION 18. This Agreement sets forth the entire and only agreement or understanding between Property Owner and the City and Agency relating to the subject matter hereof, and supersedes and cancels all previous agreements, negotiations, commitments and representations with respect thereto. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. Except as expressly provided in Section 13b hereof, no modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party hereto against whom enforcement thereof is sought. In the event of any A: \HA YNES\DARDEl. FIN -'-IS;- 03/19/93 11 :SBarn T' 1T - ambiguity in this Agreement, this Agreement shall be construed equally as between and against the parties hereto, and shall not be construed against the party responsible for its drafting. 1/1 // IIIII ///11 //1/1 I I // I 1/1 // fill I //1// A:\HAYNES\DARDEL.FIN -' -I C- 03/19/93 11:59am TOO Tr - - - EXECUTED by and among the parties hereto on the day and year first hereinabove written. "CITY:" CITY OF CHULA VISTA ATIEST: CITY CL RK, CITY OF CHULA VISTA STATE OF CALIFORNIA "AGENCY:" REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA A TIEST: ~~ çc( ÇL~ SECRETARY, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, STATE OF CALIFORNIA "PROPERTY OWNER:" DARLING DELAWARE COMPANY, INC. By: M~IDE," ENVIRONMENTAL AFFAIRS A:\HAYNES\DARDEl.FIN ~-/7 02/12/93 9:01am T' ~ - STATE OF C-fUrORNIA-- ) ~Cv:> ) ss. COUNTY OF----SX-, )1(,5 ) On-1 e) !%)before me, i"~ ~~,;r~ ~. Cr, n n ('1ft Qc 0 , personally appear ('(\ 'LQ 'I<' "1 0 ^, ,(). 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/shelthey executed the same in his/herltheir authorized capacity(ies), and that by his/herltheir 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. Signatur~¡ m. fú nD:1rJQ-.Jì r~-~I!C?~~~-~1:~~'!~~~-~ ~'>~~~~~~~_':~!~ !~~'>~~"'- ---~- ---------- ~~"o ~;; ~7~~~~;~: ~:~1 ¡ )tate of ("'-;.Þ i~~} CAPACITY CLAIMED BY SIGNER ~¡ ~ .' . Though staMe does not require the Notary 10 ' ~ County of /l/.tAf 1) [ , ¿¡ ,) Ul1 in the data below, doing so may p,ave g1 ~ ' ,invaluable to pe<saos lelying on the document. i] ~ 3 -.2t.f - éf3 before rne RUGIA !{{;I-!¡J, NorntLl/ f..Ju!3UG 0 INDIVIDUAL ~¡ :' On DATE 'NAME,TI11.EOFOFFICER.E,G,,'JAN2DOE,NOTARYPUBLIC' DCORPORATEOFFICER(S) gi I " I d T~IZ&~ If . If,."", !' :' persona y appea e 'I NAME(S) OF SIGNER(S) TI11.E(S).i i . . . 0 PARTNER(S) 0 LIMITED \ ; I)!: personally known to me. OR. 0 pr-"\ffid lu "'" 01, the easle of eallGfaffi8f) C..Oêllce 0 GENERAL ~J ~ . to be the person(~. v.:h~se name(!f) IS/a4 0 ATTORNEY-iN-FACT G; & subscnbed to the within Instrument and ac- ~ ~1 knowledged to me that he/~ executed 0 TRUSTEE(S) ~! ~ the same in his/~ authorized 0 GUARDIAN/CONSERVATOR Y.¡ I a'",c'^, %" '"P"¡"hS}, "" ""' b, hl,t......,;, 0 omm í 'í ALICIA KEMP ORNIA signature(" on the instrument the person(~), JÎ " NOTARY PUBLIC - CALIF, . ,. ~ SAN DIEGO COUI'HY . or the entity upon behalf of which the ~, ~ My comm. expires MAY 25. 19ro person(~ acted, executed the instrument. ù\ , SIGNER IS REPRESENTING: ': :'( h d d ff' . I I NAMEOFPERSON(SIORENTITY(IES) (,¡ , WI~ESS,m, '" : 0 <. '" t~. V~ '~f'/A" /t)1-4tA~ ~ '. SIGNATURE OF NOTA ~i OPTIONAL SECTION. (;¿. ~\ ,J THIS CERTIFICATE MUST BE ATTACHED TO TITlEORTYPEOFDOCUMENT~-'--'-'~ ð~ ~¡ Y THE DOCUMENT DESCRIBED AT RIGHT. NUMBER OF PAGES DATE OF DOCUMENT 3 - "3 - c¡ 3 . , hough the data ,equested he'e is no! requil~d by law. SIGNER(S) OTHER THAN NAMED ABOVE 1'A..ti..- 1'P ~ Q~ j "could plevent Imudulen! lea"achmen! 01 Ih" 101m. - @1992 NATIONAL NOTARY ASSOCIATION. B236 Remmet Ave.. P,O. eo, 7184. Canoga Pa", CA 913a9.7'B4 A:\HAYNES\DARDEL.FIN 02-1'/ D2/,a/93',:,9am ~. - _. EXHIBIT "A" Description of the Propertv Lots I through 3 and 5 through 18 inclusive of Chula Vista Tract 82-11 in the City of Chula Vista, County of San Diego, State of California, according to Map thereof No. 11643, filed in the Office of the County Recorder of San Diego County, October 31, 1986. A,\HAYNES\DARDEL.FIN ~-I' 02/12/93 9,05am T' ". - - - EXHIBIT "B" Individual Parcel Assessments Assessor's Parcel Number District Assessment No. Confirmed Assessment 644-04 1-0 I 25 $30,47d4 644-041-02 26 $15,807 644-041-03 27 $25,585 644-041-04 28 $ -0- 644-041-05 29 $33,720 644-041-06 30 $25,137 644-041-07 31 $23,014 644-041-08 32 $20,062 644-041-09 33 $29,333 644-041-10 34 $17,111 644-041-11 35 $14,666 644-041-12 36 $15,807 644-041-13 37 $35,027 644-041-14 38 $30,963 644-041-17 39 $30,073 644-041-18 40 $35,200 644-041-19* 41 $58,108 *Comprised of Lots 15 and 16 inclusive of Chula Vista Tract 82-11 A, \HA YNES\OAROEL. fJ N r:;2-.20 02112/93 9:10am .,.. TT - EXHIBIT "C" Man of the Assessment District ~i¡ ~<. ~!i ~ ;11 ~ ~ ~~I --2 - ~ =, ~ B crJ C\1 I 0 m : ~ ~ « Q ~ 0 L....-. :z ~ I "~:;~ 1 ~ >- 0:: 1 ~~::; I T '\ t- 0 ~ d~~~ '--' Z ..... 'o~:;~ ::2 ::>::;0 ~ 1" ':;;~< I~ <{ ~ 0 « <{ ~~ I;:\~ I~~;; ~ ~~ ~ ~ U U 0 ~- I~~ <;~,§ I~ ~~ . -..... 0::: ~ I~~ N 'is ~ ~ ~~~ C) ~ « 0 ~ \ l:t~ ;:;; Iz ~~ > I¡!~. t- ~ 'iìu - I,:; z ~ '% f 0 <{ en ~ w i:J ~ ~I!; ~~~ 8~ 18 *~5 0 ~ > t- --1 :;; u.Ë el: ~I: ~ ~~~ "..-..., « --1 ~ '~u z. ~Z ~ ~~o ~ j \/ï <{ ~I!; ~~6 ~B I§ ~1r~ I- ::> > :;;~ ~,g~ ~u ~ ~5~ :z: :r: - ~ 0 'o~ ~~ . ~ U 0 ~ I > ~~:;; ~~8 W S >- ~ I ;:\~~ ~~~ -c Z ..... - <{ ~~ lo~~ > z .,.¿:, 0 0 I-- n \:;:::;1; ~ð:; (/) r~ì 0 Z< z~::; Of:;; (/) ~ Ç: Z« S~ ~-I~: u ~g~ ::;E o~ I-~ ~ ~z W U V') §s § ,~¡¡ 0 ~~i1 ~ en ~ ~5 .. IiSu % ~u <{en ~ þ::¡ ~ CI ~ en is ~ :;;::!i1iS ;; I!;¡~;::~~~f I~ : ~ en Ëg5g~o,~~~ I~ Õ 15 -<r: ~~~S I~~~ Ii ~ I~ :;~~~E~~~~ i~ § II!; a: Õ~;~::;iS:~¡;j b ~ ¡Ë ~ >- 0 0 ~~3~§~~~~ IQ. ~ I~ ",a::> % U"o 5g~~ I" 0 . ,~ 5 ~ ¡¡ :3 E~~~~~~~5 ¡~ ~~ I~ I g ;5:Z :;; -~ ~<~N~~~i5~ Ii: d 1 If, CI ... ~ ~ ~ ~zQ;8:;~~;; ," I: I i3 ~ d ~ ~ ~!!;¡-,@>::;~~ Q I 3 ~ ~ ~ :5 8~" I~õ~~: ~ ..Jë~:; -' ~:;;gl::!'¡!:;:~~:;1 ~~5 I~~"~~~ 1:1:; I 0 ~ ~~3 :¡¡,,~~~~ E~ . :;; ~<'~~~;:\-,::;~- ~o, I 13' 0 ~~~~~~ :~~~ z I \tV ~ ~ ~o~~ I <~ - I I ~ ')~( ~i~ i~~ I~~~ ~I % C>' <u- ..~ '-~< T' ~ EXHIBIT "0" Description of the Assessment Distr.d Assessment District No. 90-2. Otay Valley Road, as described in the diagram recorded as Document No. 92-397322 on June 25, 1992 in the County Recorder's Office in the County of San Diego, California. A,\HAYNES\DARDEL.FI' ~ -;t~ 02/10/93 11,168m T. ~ - Exhibit "E" Otay Valley Road Widening-Phases I & n Assessment PrelimÏnary Confirmed Number APN Assessment Assessment 1 624-060-09 0 0 2 624-060-27 150,995 115,496 3 624-060-28 6,864 3,252 4 624-060-38 105,962 81,049 5 624-060-45 110,803 49,683 6 644-040-01 257,102 141,234 7 644-040-11 26,490 20,262 8 644-040-13 521,862 399,169 9 644-040-14 0 0 10 644-040-16 455,371 348,310 11 644-040-23 39,133 21,942 12 644-040-24 77,470 16,420 13 644-040-27 0 0 14 644-040-28 123,434 92,135 15 644-040-44 148,876 106,687 16 644-040-45 167,155 123,500 17 644-040-36 143,819 89,519 18 644-040-37 99,147 70,100 19 644-040-38 0 0 20 644-040-40 529,809 405,247 21 644-040-46 24,901 19,047 22 644-040-47 23,047 17,628 23 644-040-48 38,676 29,147 24 644-040-49 132,982 101,717 25 644-041-01 47,076 30,474 26 644-041-02 24,419 15,807 27 644-041-03 39,524 25,585 28 644-041-04 0 0 29 644-041-05 60,167 33,720 30 644-041-06 47,580 25,137 31 644-041-07 47,328 23,014 32 644-041-08 54,880 20,062 33 644-041-09 45,314 29,333 34 644-041-10 26,433 17,111 35 644-041-11 22,657 14,666 36 644-041-12 24,419 15,807 37 644-041-13 60,167 35,027 38 644-041-14 47,831 30,963 Filial Engilleer's Report Assessmen1 District 90-2 Otay Valley Road Wukning ó2 -.2..3 .,... 1T - Exhibit "E" Otay Valley Road Widening-Phases I & IT Assessment Prelinùnary Confirmed Number APN Assessment Assessment L39 644-041-17 59,915 30,07[1 40 644-041-18 54,377 35,200 41 644-041-19 99,187 58.108 47 644-181-01 34,864 25,063 48 644-181-02 35,644 24,099 49 644-181-03 38,506 23,107 50 644-181-04 58,279 35,797 51 644-181-07 0 0 52 644-181-08 61,922 41,683 53 644-181-09 39,807 28,616 54 644-181-10 109,794 70,870 55 644-181-11 43,189 31,048 56 644-181-15 135,031 82,261 57 644-181-16 37,986 26,872 58 644-181-18 35,124 25,250 59 644-181-19 43,449 28,621 60 644-181-20 33,823 24,315 61 644-181-21 36,164 25,998 62 644-181-22 38,506 27,681 63 644-181-23 50,734 36,472 64 644-181-24 11,708 8,417 65 644-181-25 11,968 8,604 66 644-181-26 23,156 16,646 67 644-181-27 17,432 12,53- 68 644-181-28 17,432 12,531 69 644-181-29 47,352 32,734 70 644-181-30 15,611 11,222 71 644-181-33 27,318 19,639 72 644-182-01 133,990 96,323 73 644-182-02 135,551 97,445 74 644-182-03 135,031 78,123 75 644-182-06 0 0 76 644-182-07 169,374 121,760 77 644-182-08 134,511 96,697 78 644-182-09 171,716 123,443 79 644-182-10 137,893 71,032 80 644-182-11 110,314 79,303 81 644-182-12 97,306 69,951 Final Engineer's Report Æss~smenl DistriCt 90-2 Otay Valley Road Widening 02-~'I T' ~ . - - EXHIBIT "F" Form of Confirmation VIA CERTIFIED MAIL Property Owner Dear Property Owner: We have received and reviewed your notice that any and all state and local agencies with discretion over issues affecting development of the Property, including, without limitation, the California Environmental Protection Agency ("Cal-EPA") have determined that investigatory andlor remedial work completed at your property located at 4826 Otay VaIley Road, Chula Vista, California (the "Property") is in adequate condition to all Ow development of [all/Parcel No(s). [ ]] of the Property for Any Reasonable Use (as defined in the Agreement described below). We concur in that determination. However, this letter does not constitute any approval, specific or implied, of any particular development proposal and/or project. AIl of the existing applicable local and state project development requirements of the City of Chula Vista and the Chula Vista Redevelopment Agency must be followed and met subsequent to the issuance and receipt of this letter of confirmation. Please be advised that this letter constitute's "Confirmation" as that term is defined in Section 6 of that certain Agreement dated February 23, 1993 by and among the City of Chula Vista, the Redevelopment Agency of the City of Chula Vista, and Darling-Delaware Company, Inc. Sincerely, City of CllLIla Vista Redevelopment Agency A:\HAYNES\DARDEl.FIN ~-,¿~ 02/10/93 2:13pm ~... ~ - ATTACHMENT 2 Recording Requested By: CHULA VISTA REDEVELOPMENT AGENCY 276 Fourth Avenue Chula Vista, CA 91910 When Recorded Mail To: CHULA VISTA REDEVELOPMENT AGENCY 276 Fourth Avenue Chula Vista, CA 91910 ATTN: Debra DePratli (Space Above This Line For Recorder) Assessors Parcel Number(s): 644-041-01 through 641-041-03 and 644-041-05 throu9h 644-041-14 and 644-041-17 through 644-01-19. The document does not grant, assign, transfer, conveyor vest title to real property within the meaning of Section 11911 of the California Revenue and Taxation code, and hence NO DOCUMENTARY TRANSFER TAX is DUE. The real property is located in the City of Chula Vista, County of San Diego, State of California, FIRST AMENDMENT TO ASSESSMENT DISTRICT NO. 90-2 REIMBURSEMENT AGREEMENT THIS FIRST AMENDMENT ("Amendment") is made as of January 18, 2000, by and among the CITY OF CHULA VISTA ("City"), the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ("Agency"), and LANDBANK, a Colorado Corporation, ("Property Ownen with respect to certain real property in the City of Chula Vista, County of San Diego, more particularly described on Exhibit A attached hereto and incorporated herein by this reference ("Property"). WHEREAS, the City and Agency entered into that certain Assessment District No. 90-2 Reimbursement Agreement ("Agreement") with the Darling Delaware Company dated March 9, 1993, and recorded on with the San Diego County Recorder as Doc. No, in order to facilitate redevelopment of the Property; and WHEREAS, under the terms of the Agreement the Agency loaned Darling Delaware Company $440,087 ("Loan Amount") which was to be repaid upon the occurrence of certain events as more particularly described therein; and WHEREAS, the Darling Delaware Company sold the Property to Property Owner in December 1999, and Property Owner is therefore the "successor in interest" to Darling Delaware under the Agreement and subject to its terms and conditions; and WHEREAS, under the Agreement some or all of the Loan Amount is or will soon be due and payable to the Agency; and WHEREAS, the Property Owner will not be an end user of the Property and will be selling the property to the ultimate developer and has requested a deferral of the Loan Amount untii the Property is sold to the end user/developer; and WHEREAS, the Agency is will to forego collection of the Loan Amount on the terms and conditions set forth in this Amendment; and NOW, THEREFORE, IT IS MUTUALLY AGREED by and among the parties hereto that the Agreement shall be amended as follows: 02-.2.(" ,.. ~ - 1. Section 9 of the Agreement is hereby amended and restated to read in its entirety as follows: a. Notwithstanding any other provision of this Agreement to the contrary upon the earlier to occur of (a) the sale of all or substantially all of the Property (defined as 80% or more of the Property measured in terms of gross acreage), or (b) January 1, 2001 (each a "Triggering Event"), the Property Owner (including, in the event of a sale, any successor thereto) shall be obligated to discharge the remaining and owing Repayment Obligation by paying to the Agency the amount of $440,087. Such amount shall be paid in four (4) equal quarterly installments of $110,021.75. The first such installment shall be due and payable on the date falling ninety (90) days after the date of Trigger Event and each subsequent payment shall be due at ninety (90) day intervals thereafter. Property Owner's obligation under this section shall not be subject to suspension or other modification pursuant to the terms of Section 17 hereof. b. In the event that the Property Owner (or any successor thereto) defaults in its obligation to make installment payments under this Section, then (1) the entire unpaid Repayment Obligation balance ("Delinquent Amount") shall immediately become due and payable; (2) the Delinquent Amount shall immediately commence to accrue interest at a defauit interest rate of ten percent (10%) per annum until paid; and (3) in addition to any and all other rights at law or in equity that Agency may have to enforce Its rights to collect the Repayment Obligation through actions against the Property Owner, or any successor thereto, Agency shall be entitled to (and Property Owner hereby grants) a lien against the Property. Such lien shall secure repayment of the Delinquent Amount, any interest accruing thereon, and Agency's attorneys' fees and other reasonable costs incurred in its efforts to collect same. The lien may be foreclosed upon in the same manner as the foreclosure of a mortgage upon real property under the laws of the state of California, or may be enforced by sale pursuant to Sections 2924, 2924(b), 2924(c) or 1367 of the California Civil Code, or any successor statute or law, and to that end, the right to enforce the lien by sale is hereby conferred upon the Agency or any trustee designated thereby. The Agency shall have the power to bid for the property served at a foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Suit to recover a money judgment for unpaid charges, costs, late penalties and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same. The City shall also have the right to collect the Delinquent Amount as a speciai assessment to be charged to the Property Owner (or any successor thereto) by the County of San Diego on the Property's then next regular tax bill. 2. Section 10 of the Agreement, and any other references to Section 10 in other sections of the Agreement, are hereby deleted in their entirety. 3. Except as expressly provided herein all other terms of the Agreement shall remain in full force and effect. 4. Immediately upon execution of this Amendment, this Amendment shall be recorded in the Office of the County Recorder of San Diego County. SIGNATURE PAGE FOLLOWS FitSt Amendment to Assessment District No. 90-2 Reimbursement Agreement . Page 2 02-.2.7 ". IT - SIGNATURE PAGE TO ASESSMENT DISTRICT NO. 90-2 REIMBURSEMENT AGREEMENT EXECUTED by and among the parties hereto on the day a year first hereinabove written. CITY: PROPERTY OWNER: CITY OF CHULA VISTA LANDBANK Mayor, City of Chula Vista AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Chairman, Redevelopment Agency of the City of Chula Vista ATTEST: City Clerk, City of Chula Vista APPROVED AS TO FORM: City 1 Agency Attorney First Amendment to Assessment District No. 90-2 Reimbursement Agreement . Page 3 02-.1.r T. ~ - EXHIBIT A DESCRIPTION OF PROPERTY [ To be inserted] First Amendment to Assessment District No. 90-2 Reimbursement Agreement 8 Page 4 02-2..' T. ,.,. -