BOWERS MUSEUM - 2006 GUARANTY AGMT FOR EXPANSION-2006

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A-2006-050 INSURANCr Nor ,,-, D \^I(I~K ~W" :.m CL[klt OF CUUNCIL MTE, 3 -I (ccJV - ORIGINAL tJ 'ft>A(~) { ;(. ::UCrZlf?W) GUARANTY AGREEMENT THIS GUARANTY AGREEMENT, made and entered into as February 6, 2006 by and among the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body, corporate and politic duly organized and existing under the laws of the State of California (the "Agency"), the CITY OF SANTA ANA, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City"), the CHARLES W. BOWERS MUSEUM CORPORATION, a California non-profit public benefit corporation (the "Corporation") and EAST WEST BANK, a California Corporation (the "Bank"). RECITALS A. The Corporation operates the Bowers Museum of Cultural Art (the "Museum") on behalf of the City of Santa Ana (the "City") pursuant to the Certain Amended and Restated Operating Agreement dated June 18,2001, as amended by that certain First Amendment dated September 6, 2005(the "Project"); and, B. The Corporation has agreed to undertake and finance an expansion and redevelopment of the Museum (the "Project") as referenced in the First Amendment as well as that certain Ground Lease dated September 6, 2005 between the Corporation and the City (the "Ground Lease")' and , , C. The Corporation has requested financial assistance from the Agency in the form of a guaranty of a standby line of credit to be issued by the Bank to be used as part of the financing of the Project; D. The City finds pursuant to Health and Safety Code Section 33445 that the Project and this guaranty are in furtherance of the redevelopment plans formerly known as Central City; Inter-City; South Main; Bristol; North Harbor; and South Harbor (the "Merged Project Area") in that the Bowers Museum is a highly unique and special community asset that attracts visitors from outside Santa Ana to the community and the Merged Project Area, and will assist in the elimination of one or more blighting conditions inside Merged Project Area. In addition, it serves as an economic engine in the Museum District of the City that is within the Merged Project Area generating both income and investment in the Merged Project Area. The Agency's guaranty is necessary to ensure the expansion and redevelopment of the Museum in that other funds for this purpose are not reasonably available. NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto do hereby agree as follows.