HomeMy WebLinkAboutReso RDA 17-1997 RESOLUTION NO. 17-97
REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO
STATE OF CALIFORNIA
A RESOLUTION APPROVING AN AMENDMENT TO THE OWNER
PARTICIPATION AGREEMENT WITH THE GRAND HOTEL GENERAL
PARTNERSHIP, OWNERS OF THE PROPERTY LOCATED AT 731
AIRPORT BOULEVARD, REGARDING AN ADDITIONAL LOAN
AMOUNT OF $400,000, AND AUTHORIZING THE EXECUTIVE
OFFICER TO EXECUTE AMENDED I.OAN DOCUMENTS
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San
Francisco that it hereby approves an amendment to the Owner Participation Agreement with the Grand Hotel
General Partnership, as shown in Exhibit A, to provide an additional loan amount of $400,000, and authorizes the
Executive Officer to execute amended loan documents to the amended Owner Participation Agreement.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
Redevelopment Agency of the City of South San Francisco at a regu ] arineeting held on the 10th day of~
Dec: 1997 by the following vote:
AYES: Boardmembers James L. Datzman, Joseph A. Fernekes,
Kar~,l Matsumoto and Chairman Eu.qene R. Mullin
NOES: Nnno
ABSTAIN: Nonc
ABSENT: Boardmember John R. Penna
Clerk
A:\GRANDHOT.RDA
EXHIBIT A
RESOLUTION NO. 17-97
-- AMENDED'
OWNER PARTICIPATION AGREEMENT
THIS OWNER PARTICIPATION AGREEMENT (this "Agreement") dated as of
December 11, 1997, is entered into by and between the CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT AGENCY, a public body corporate and politic (the "Agency") and The
Grand Hotel, doing business as A General Partnership ("Participant"). The Agency and
Participant agree as follows:
This Agreement is entered into with reference to the following facts:
A. This Agreement is entered to, and in implementation of, the Downtown/Central
Redevelopment Plan for Redevelopment Project No. 1 of the City of South San Francisco as
adopted by the City Council of the City of South San Francisco by Ordinance No. 1056-89 on
July 12, 1989.
B. The purpose of this Agreement is to effectuate the Redevelopment Plan for the
Project Area by providing for the redevelopment of the Property. Completion of the
Improvements constituting the Project pursuant to this Agreement is in the best interests of the
City and the Agency, and the health, safety and welfare of residents and taxpayers of the
Project Area and the City, and is in accord with the public purposes and provisions of applicable
and state and local laws.
C. A material inducement to the Agency to enter into this Agreement is the agreement
by Participant to construct the Improvements within a limited period of time, and the Agency
would be unwilling to enter into this Agreement in the absence of an enforceable commitment
by Participant to construct the Improvements within a limited period of time.
D. Construction of the Improvements will assist in the elimination of blight in the Project
Area, provide additional jobs, improve safety in the Project Area and substantially improve the
economic and physical conditions in accordance with the purposes and goals of the
Redevelopment Plan.
E. The Agency has determined that the land uses specified in this Agreement and the
provisions relating to construction of the Improvements specified in this Agreement are
consistent with the provisions of the Redevelopment Plan and each of its applicable elements.
- - NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE 1. DEFINITIONS.
Section 1.1. Definitions.
The following terms as used in this Agreement shall have the meanings given unless
expressly provided to the contrary:
1.1.1. Agency means the City of South San Francisco Redevelopment Agency, a
public body, corporate and politic, exercising governmental functions and powers and is
organized and existing under the Community Redevelopment Law of the State of California and
with full power and authority to execute this Agreement. The principal office of the Agency is
located at 400 Grand Avenue, South San Francisco, California 94080.
1.1.2. Agency Loan means the loan of funds by the Agency to Participant as set forth in
Article 3.
1.1.3. Agreement means this Owner Participation Agreement.
1.1.4. Agency Note shall mean the promissory note detailing the terms and conditions
of the loan of funds by the Agency to Participant, as set forth in Article 3.
1.1.5. City means the City of South San Francisco, a municipal corporation. The
principal office of the City is located at 400 Grand Avenue, South San Francisco, California
94080.
1.1.6. City Note shall mean the promissory note detailing the terms and conditions of
the loan of funds by the City to Participant, as set forth in Article 3.
1.1.7. Gross Revenue shall mean all revenues received by Participant from the
property's tenants.
1.1.8. Improvements means the improvements described on Exhibit A, attached hereto
and incorporated herein by this reference (the "Scope of Development").
1.1.9. Pro_iect means the construction of the Improvements on the real property located
at 731 and 739 Airport Blvd. In accordance with the Scope Development.
1.1.10. Project Area means Redevelopment Project No. 1 of the Agency.
1.1.11. Property means the real property located at 731 and 739 Airport Blvd.
1.1.12. Redevelopment Plan means the Redevelopment Plan for the Downtown Central
Redevelopment Project No. 1 of the City of South San Francisco as adopted by the City Council
by Ordinance No. 1056-89 on July 12, 1989.
1.1.13. Operating Expenses shall be the usual and customary expenses of the Property
that are not paid directly by the tenants.
1.1.14. Participant means The Grant Hotel, A General Partnership.
1.1.15. Scope of Development shall mean the proposed improvements described in
Exhibit "A" attached thereto and incorporated herein by reference.
1.1.16. Schedule of Performance shall mean the development schedule defined in
Exhibit "B" attached hereto and incorporated herein by reference.
ARTICLE 2. DEVELOPMENT OF THE PROPERTY
' - Section 2.1. Ownership of the Business. Participant hereby covenants that Participant
is the sole owner of the Property located at 731 and 739 Airport Blvd. as of the date and
execution of this Agreement.
Section 2.2. Development of the Property.
2.2.1. Scope of Development.
Participant hereby agrees to construct the Improvements on the Property more fully
described in Exhibit A. Said improvements shall conform to the requirements of the City
building codes and any other applicable statutes, ordinances and regulations. Participant shall
complete all Improvements as provided for in this Agreement.
2.2.2. Schedule of Performance
Participant hereby agrees to complete the Scope of Development referred to in Section
2.2 above, on the Schedule defined in Exhibit B.
Section 2.3. Cost of Construction.
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The Cost of developing and constructing the Improvements shall be borne solely by
Participant and shall not be an obligation of the Agency, except to the extent the Agency shall
assist Participant by reimbursing the cost of construction of the Improvements, up to the
amount of the Agency Loan.
Section 2.4. Final Construction Drawings and Related Documents.
Participant shall prepare, submit, and shall obtain approval from the City of plans and
specifications for the Improvements. In addition, Participant hereby covenants that it shall
obtain all necessary permits which may be required by the City or any other governmental
agency having jurisdiction over such construction or development.
Section 2.5. Progress of Construction.
During construction of the Improvements, Participant shall submit to the Agency from
time to time, within ten days following the Agency's request therefor, but not more frequently
than monthly, a written report of the progress of the construction when and as requested by the
Agency. The report shall be in such form and detail as to inform the Agency fully of the status
of construction.
Section 2.6. Access and Inspections.
Participant hereby agrees to provide City and Agency staff access to and right of
inspection of the project without charge or fee during all reasonable business hours. This shall
be in addition to those rights and entitlements the City and Agency may have under law.
Personnel costs and workman's compensation exposure shall be borne by the City/Agency.
Section 2.7. Local. State and Federal Laws.
Participant shall carry out the construction of the Improvements in conformity with all
applicable laws, including all applicable federal and state occupation, safety and health
standards.
Section 2.8. Applicable Building Codes City/Agency acknowledge that the Property
is of historic value to the community, and that the State Historical Building Code applies to the
subject project as provided for in Section 2.2.1. City's Building Division will review plans and
specifications utilizing this code where appropriate. Participant will obtain all permits which may
be required by City.
... Section 2.8.1. Section 106 Compliance Participant will assist City/Agency in
assuring compliance with Section 106 of the National Historic Preservation Act of 1996, as
amended (16 U.S.C.:470), EO11593 (identification and preservation of historic properties - 36
C.F.R. Part 800), and the Archaeological and Historic Preservation Act of 1974 (U.S.C.: 469a-
1 et seq.).
Section 2.9. Anti-discrimination During Construction.
Participant shall not discriminate against any employee or applicant for employment
because of age, sex, marital status, race, handicap, color, religion, creed, ancestry, or national
origin in the construction of the Improvements.
Section 2.10. Prevailing Wages Participant, and all contractors and subcontractors
employed by or under contract with Participant, will comply with all applicable provisions,
including reporting requirements, of the Davis-Bacon Act (40 U.S.C.:276a to 276 A-7) regarding
labor standards for federally assisted construction agreements in the construction of
improvements contemplated by this Agreement. This section shall be waived if the Federal
Youth Build program is implemented as part of this project.
Section 2.11. Failure to Complete Construction of Improvements VVithin Eight Months.
If Participant fails to complete the construction of the Improvements on the Property as
provided for in the Schedule of Performance (Exhibit B), then all sums disbursed or advanced
by the Agency shall, at the option of Agency, immediately become due and payable, and the
Agency shall be released from any and all further obligations to Participant under the terms of
this Agreement.
ARTICLE 3. AGENCY LOAN TO PARTICIPANT
Section 3.1. Agency Loans.
The Agency agrees, in consideration for Participant's construction of the Improvements
on the Project, subject to the terms and conditions precedent set forth below, to lend to
Participant an amount not to exceed FIVE HUNDRED THOUSAND DOLLARS $500,000 at
(4%) four percent interest, amortized over twenty-five years, to construct improvements on the
Property.
This amendment provides for an additional Agency loan, subject to the terms and
· '.-../_conditions set forth below, to lend Participant an amount not to exceed FOUR HUNDRED
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THOUSAND DOLLARS ($400,000), at five percent (5%) interest, amortized over twenty-five
years, to construct improvements on the Property.
Section 3.2. City Loan
The City agrees to provide Participant a loan of "HOME" funds from City's allocation of
Federal HOME Investment Partnership funds from the Count of San Mateo, in an amount not to
exceed FOUR HUNDRED THOUSAND DOLLARS ($400,000) to construct improvements on
the Property. As consideration for the use of the residential elements of the property as
affordable housing for the 30 year period as set forth in the Rent Regulatory Agreement (Exhibit
C). Two hundred thousand dollars ($200,000) of this amount will become a deferred forgivable
loan which becomes a grant on the thirty-first (31) year.
Section 3.3. Conditions Precedent to City/Agency Loans and Grant.
The City/Agency's obligation to disburse those funds described in Sections 3.1 and 3.2
above, is subject to the following conditions precedent:
3.3.1. Disbursement Agreement Agency and Participant shall enter into a
.... Disbursement Agreement attached hereto as Exhibit D for funding construction of the
improvements defined in the Scope of Development (Exhibit A). The Disbursement Agreement
shall include all construction costs which shall be based upon actual construction hard and soft
costs, to be incurred by Participant in the construction of improvements, as provided for in the
Scope of Development. Participant shall also submit a project pro forma and disbursement
schedule prior to the execution of the Disbursement Agreement.
3.3.1.1. Bank Disbursement
Agency and Participant agree that it is in their mutual interest to enter into an agreement
with, and pay the costs of, a bank whose function will be to disburse Agency funds for project
improvements; the bank shall be required to provide a monthly accounting to Agency for the
disbursement of funds; and subsequent to project completion service the Promissory Note
defined herein.
3.3.1.2. The total cost incurred by Participant in the construction of the
Improvements shall be verified by the Agency based upon the documentation submitted
pursuant to subsection 3.3.1 above, and the determination thereof by the Agency shall be final
and conclusive as to the amount of such total cost.
3.3.3. Agency's obligations herein shall terminate upon Participants default hereunder
or under any other agreement with the Agency or the City.
3.4. Participant's execution and delivery to the Agency of the Promissory Note.
Within ten (10) days of Agency approval of this Agreement, Participant shall execute,
and deliver a new Promissory Note and Deed of Trust, referenced herein, in the amount of four
hundred thousand dollars ($400,000) for the additional loan granted hereunder. Within thirty
(30) days subsequent to completion of construction, Participant shall submit to agency the total
cost of improvements. Agency shall calculate the total funds utilized by participant in
constructing improvements and submit Agency's findings to participant. With partici
concurrence Agency shall prepare, and Participant agrees to execute, Amended Prol
Note and Deed of Trust reflecting participant's actual obligation to Agency, which sha
those funds requisite to completion of the subject improvements.
3.5. Security Agreement.
3.5.1. Loan Security In consideration of the Agency funding made available to
Participant pursuant to this Agreement, Agency loan and City loan each shall be in the form of a
Promissory Note (the form of which is attached hereto as Exhibit E) secured by a Trust Deed
(the form of which is attached hereto as Exhibit F) naming Agency as beneficiary.
ARTICLE 4. TRANSFERS AND SECURITY INTERESTS
Section 4.1. Limitation as to Transfer of the Property and Assignment of Agreement
4.1.1. Prior to the repayment of the Agency Loan, Participant shall not, except as
permitted by this Agreement, sell, transfer, assign, convey or sublease Participant's interest in
the Property. Participant acknowledges that the identity of Participant is of particular concern to
the Agency, and it is because of Participant's identity that the Agency has entered into this
Agreement with Participant.
4.1.2. If prior to the repayment of the Agency Loan Participant (i) sells, transfers,
conveys, subleases or assigns Participant's interest in the Property or any of Participant's rights
in this Agreement to or in favor of any person or entity, or (ii) sells, transfers, assigns,
subleases or conveys Participant's leasehold interest assuming any such now or in the future
exists in the Property then all sums disbursed or advanced by the Agency shall, at the option of
Agency, immediately become due and payable, with the exception of such activity as sale,
transfer, assignment, sublease, or conveyance is caused by the death of a partner and
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partner's heirs become a party to the partnership, said conditions of the agreement shall be
maintained as provided for herein.
ARTICLE 5. USE OF THE PROPERTY
Section 5.1. Uses.
Participant covenants and agrees for itself, and its successors and its assigns, that
during construction and thereafter, Participant, such successors, and such assignees shall use
the Property solely for the purposes of operating residential units and a restaurant. Participant
is expressly prohibited from using the Property for any uses prohibited by applicable City zoning
ordinances or regulations, or the Redevelopment Plan for the Project Area.
Section 5.2. 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, age, handicap, race, color, religion, creed, national
origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of
the Property, and Participant (itself or any person claiming under or through Participant) 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,
sub-lessees, or vendees thereof or any portion thereof.
Section 5.3. Effect and Duration of Covenants.
All of the terms, covenants, agreements or conditions set forth in this Agreement
pertaining thereto shall cease and terminate excepting only the following provisions which shall
survive in accordance with their provisions:
1. Section 5.1 (relating to uses) shall remain in effect for a period starting from the
date that this Agreement is executed until the Agency Loan is satisfied.
2. Section 5.2 (relating to nondiscrimination) shall remain in effect in perpetuity.
ARTICLE 6 RELOCATION OF TENANTS
Section 6.1 Relocation
6.1.1. If due to the construction schedule and activity, it is necessary to temporarily
.... relocate any residents presently residing in the units to be retrofitted, Participant shall be
responsible for the temporary relocation of said residents, such relocation to be in conformance
with the relocation provisions of California Redevelopment Law and Federal Relocation
Requirements. Said costs, if any, shall be a part of the project budget.
ARTICLE 7 DEFAULTS, REMEDIES AND TERMINATION
Section 7.1. Defaults- General.
7.1.1. Failure or delay by either party to perform any term or provision of this
Agreement constitutes a default under this Agreement. The party who so fails or delays must
immediately commence to cure, correct, or remedy such failure or delay, and shall complete
such cure, correction or remedy with reasonable diligence and during any period of curing shall
not be in default.
7.1.2. The non-defaulting party shall give written notice of default to the party in default,
specifying the default complained of by the injured party. Failure or delay in giving such notice
shall not constitute a waiver of any default, nor shall it change the time of default.
...... 7.1.3. Except as otherwise expressly provided in this Agreement, any failure or delay
by either party in asserting any of its rights or remedies as to any default shall not operate as a
waiver of any default or of any such rights or remedies or deprive either such party of its right to
institute and maintain any actions or proceedings which it may deem necessary to protect,
assert or enforce any such rights or remedies.
Section 7.2. Applicable Law.
The Owner Participation Agreement shall be constructed and interpreted in accordance
with the laws of the State of California. Any action must be instituted in either the Superior
Court of the County of San Mateo, State of California, or in an appropriate court in that County.
Section 7.3. Rights and Remedies are Cumulative.
Except as otherwise expressly stated in this Agreement, the rights and remedies of the
parties are cumulative, and the exercise by either party of one or more of such rights or
remedies shall not preclude the exercise by it, at the same time or different times, of any other
rights or remedies for the same default or any other default by the other party.
Section 7.4. Inaction Not a Waiver of Default.
Except as expressly provided in this Agreement to the contrary, any failures or delays by
either party in asserting any of its rights and remedies as to any default shall not operate as a
waiver of any default or of any such rights or remedies, or deprive either such party of its rights
to institute and maintain any actions or proceedings which it may deem necessary to protect,
assert or enforce any such rights or remedies.
Section 7.5. Remedies.
If either party defaults with regard to any of the provisions of this Agreement, the non-
defaulting party shall serve written notice of such default upon the defaulting party. If the
default is not commenced to be cured within ten (10) days after service of the notice of default
and is not cured promptly in a continuous and diligent manner within a reasonable period of
time after commencement thereof, then (i) the non-defaulting party may terminate this
Agreement, and the defaulting party shall be liable to the non-defaulting party for any damages
caused by such default, and the non-defaulting party may thereafter commence an action for
damages against the defaulting party with respect to such default; and/or (ii) the non-defaulting
party, at its option, may thereafter commence an action for specific performance of the terms of
this Agreement pertaining to such default; and/or (iii) the Agency shall be released from any
- and all further obligations to Participant under the terms of this Agreement. In addition, if
Participant is the defaulting party, the Agency may acquire Participant's interest in the Property
by any legal means, including eminent domain, for redevelopment in accordance with the
Redevelopment Plan. Participant hereby stipulates and agrees that the only issue in such
proceedings shall be the then current fair market value of the Property.
ARTICLE 8 GENERAL PROVISIONS
Section 8.1. Notices. Demands and Communications Between the Parties.
Any written notice or payment of one party to the other shall be service by registered or
certified mail, postage prepaid, return receipt requested, addressed to the parties as follows:
To the Agency: CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY
P. O. Box 711
South San Francisco, CA 94083
ATTENTION: Executive Director
Copies to: Agency Counsel
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P. O. Box 711
South San Francisco, CA 94083
To Participant: Donald M. Ahlbach
Managing Partner
315 Harbor Way
South San Francisco, CA 94080
All notices shall be deemed received on the date two (2) business days after the date of deposit
into the U.S. mail in the fashion provided herein.
Section 8.2. Conflicts of Interest.
No member, official or employee of the Agency shall have any direct or indirect interest
in this Agreement, nor participate in any decision relating to the Agreement which is prohibited
by law.
Section 8.3. Warranty Against Payment of Consideration for Agreement
Participant warrants that it has not paid or given, and will not pay or give, to any third
person, any money or other consideration for obtaining this Agreement, other than normal
costs of conducting business and costs of professional services such as architects, engineers
and attorneys.
Section 8.4. Nonliability of Agency and City Officials.
No member, official or employee of the Agency or City shall personally be liable to
Participant, or any successor in interest of Participant, in the event of any default or breach by
the Agency or for any amount which may become due to Participant or successor or on any
obligation under the terms of this Agreement.
Section 8.5 Mediation
Should any dispute arise out of this Agreement, which cannot be resolved by the parties,
the parties shall meet in mediation and attempt to reach a resolution with the assistance of a
mutually acceptable mediator. The costs of the mediator, if any, shall be paid equally by the
parties. If a mediated settlement is reached, neither party shall be deemed the prevailing party
for purposes of the settlement, and each party shall bear its own legal costs. Neither party shall
be permitted to file legal action without first meeting in mediation and making a good faith
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attempt to reach a mediated resolution.
Section 8.6. Litigation.
If the Agency shall be or shall become a party to any legal proceedings instituted in
connection or arising out of this Agreement or the improvement of the Property, or in the event
of any dispute between the parties hereto arising out of this Agreement in which the Agency is
the prevailing party, Participant agrees to pay to the Agency all sums paid or incurred by the
Agency as costs and expenses in the legal proceedings, including but not limited to actual
attorneys' fees and costs incurred by the Agency.
Section 8.7. Severability.
Any failure by the Agency to enforce any of its remedies hereunder in any particular
instance shall not constitute a waiver by the Agency of its right to subsequently enforce its
rights in the event of a subsequent default.
Section 8.8. Entire Agreement. Waivers and Amendments.
The Agreement is executed in duplicate originals, each of which is deemed to be an
original. This Agreement, together with all attachments and exhibits hereto, constitutes the
entire understanding and agreement of the parties. This Agreement integrates all of the terms
and conditions mentioned herein or incidental hereto, and supersedes all negotiations or
previous agreements between the parties with respect to all or any part of the subject matter
hereof. Any waiver or modification of any provision of this Agreement must be in writing and
signed by the party to be charged.
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IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the
day and year first above written.
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT AGENCY
Executive Director
ATTEST:
Agency Secretary
Participant
APPROVED AS TO FORM:
Agency Counsel
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Exhibit A
SCOPE OF DEVELOPMENT
GRAND HOTEL/AFFORDABLE HOUSING PROJECT
The Project consists of two buildings containing the Grand Hotel, a 16 single room occupancy
units with an additional manager's units; Darby Dan's, an established restaurant; an apartment
complex with 8-one bedroom units; and an adjacent parking lot. The proposed scope of
development will rehabilitate both structures to include: new doom and windows, sheet vinyl and
ceramic tile, renovated kitchens, new deck seismic upgrades, roof and vinyl insulation, interior
and exterior painting, restroom remodels, disabled access, and parking lot and landscaping
improvements.
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Exhibit B
SCHEDULE OF PERFORMANCE
1. Participant shall submit to Agency Design Development plans, elevations, outline notes
and specifications, based upon the Schematic Design approved by Agency, within 30
days of the date Participant receives Agency approval of the Schematic Design.
Agency's Executive Director shall approve Design Development materials within 14 days
of the date of submission. Failure by Agency's Executive Director to respond within 14
days shall mean that Agency has approved the Design Development materials as
submitted. Should the Redevelopment Agency require revisions, such revisions as are
necessary shall be resubmitted to the Redevelopment Agency within 15 days of such
request.
2. Participant shall submit to Agency Construction Documents, based upon the Design
Development materials approved by Agency, within 60 days of the date participant
receives Agency approval of Design Development materials. Agency's Executive
Director shall approve construction Documents within 21 days of the date of submission.
Failure by Agency's Executive Director to respond within 21 days shall mean that
-- Agency has approved the Design Development materials as submitted. Should the
Redevelopment Agency require revisions, such revisions as are necessary shall be re-
submitted to the Redevelopment Agency within 15 days of such request.
3. Participant shall submit Construction Documents and request a Building Permit from
City's Building Division.
4. Participant shall award a contract to a qualified contractor based on the construction
documents within 45 days of construction documents being made available.
5. Construction shall begin within 30 days of Participant's awarding a contract to a qualified
contractor.
6. Construction shall be completed within eight (8) months subsequent to receiving a
building permit.
7. Within twenty-one (21) days subsequent to completion of construction, Participant shall
submit to Agency a composite report of all monies expended during design and
construction of the Project.
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EXHIBIT C
RENT REGULATORY AGREEMENT
Between
The Redevelopment Agency of the City of South San Francisco
and
The Grand Hotel
This Agreement ("Agreement") is entered into as of this day of ,1997,
by the Redevelopment Agency of the City of South San Francisco, hereinafter referred to as
"Agency," and the Grand Hotel, a General Partnership, hereinafter referred to as "Participant."
RECITALS
A. Participant is the owner of that real property located at 731 and 739 Airport boulevard in
the City of South San Francisco, mor particularly described in Exhibit "C" hereto
(hereinafter Property). The property is the site of Participant's proposed renovation
project.
B. Agency is an entity formed and operating in accordance with the provisions of Sections
33000 et seq of the Health and Safety Code of the State of California. The property is
located within the jurisdiction of the Agency and within the South San Francisco
Downtown Central Redevelopment Project Area. The Project must, therefore, comply
with Affordable Housing Requirements set out in Health and Safety Code Section 33413
(B)(2).
C. By this Agreement, Participant and Agency desire to provide affordable housing within
the Project to satisfy those obligations described in Paragraph B, above.
D. This Agreement, Promissory Note and Deed of Trust executed and recorded
concurrently with each other constitute the entire agreement between the parties.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. All hotel units located at the properties shall be governed by this Agreement. The
Participant or Participant's representative shall rent the units and shall not discontinue
__ use of those units as residential rental units during the term of this Agreement.
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-- 2. No later than sixty (60) days from the anniversary date each year of the recording date
of this Agreement, Participant or Participant's representative shall submit to the Housing
and Community Development Manager of the City of South San Francisco a report
containing a listing of each hotel unit and the rent received. This listing shall be
forwarded to Agency's Executive Director.
3. Hotel room rents shall be affordable to very Iow income tenants for a period of 25 years.
Affordable rent is defined as rent, including utilities, that does not exceed 30% of 65% of
the median household income for San Mateo County as defined by HUD. Rent levels
for this project as specified in attached Exhibit. In case of any dispute regarding income
levels or rents to be charged under this Agreement, the determination of the Agency
shall be final.
4. This Agreement shall run with the land, shall be binding on, and shall inure to the benefit
of the heirs, successors, and assigns of the Participant and Agency. It is expressly
agreed by Participant that any note entered into between participant and Agency
regarding the Property shall be subject to acceleration by Agency if Participant breaches
any term of this Agreement.
-- 5. Agency shall record this Agreement. This Agreement shall be subordinated only to
Agency's loan on the Property. In the event of sale or refinancing of the Property,
Agency shall agree to subordinate this Rent Regulatory Agreement on the following
conditions:
a. The terms and conditions of the new Promissory Note and Deed of Trust are
approved in writing by Agency as being conventional and not impairing Agency's
security interest in the Property, and
b. The Rent Regulatory Agreement is incorporated into the new loan.
REDEVELOPMENT AGENCY OF GRAND HOTEL
THE CITY OF SOUTH SAN FRANCISCO
Executive Director Participant
ATTEST: APPROVED AS TO FORM
Agency Clerk Agency Counsel
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Exhibit "C"
GRAND HOTEL
Pro forma
Projected Annual Income:
16 SRO units @$90/week $ 74,880
8 - 1 Bdrm apts @ $475/mo 45,600
Darby Dan @$2,500/mo 30,000
TOTAL PROJECTED INCOME $150,480
Projected Annual Expenses:
Bank Charges $ 45
Office Expense 395
Maintenance & Cleaning 455
License & Fees 240
Garbage 2,080
P.G.&E. 7,832
Water 1,151
Property Insurance 15,812
Compensations Insurance 953
Resident Manager & Janitorial 9,365
Management Fees 7,524
Supplies 1,365
Accounting 575
Telephone 577
Promotions 500
Payroll Taxes 2,512
Property Taxes 11,072
Vacancy Factor (3%) 5,000
TOTAL EXPENSES $ 67,463
NET OPERATING INCOME $ 83,027