HomeMy WebLinkAboutORIENT CORPORATION OF AMERICA, INC. (3)1-1g,; Q II
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AGREEMENT REGARDING ADVANCES
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00 PROPOSED CITY OF SANTA ANA
COMMUNITY FACILITIES DISTRICT NO 92-1
ATE (MAIN STREET CONCOURSE PUBLIC IMPROVEMENTS)
7
J� This Agreement Regarding Advances (the "Agreement") dated as of February 3, 1992, is by
and between the City of Santa Ana (the "City") for and on behalf of the proposed City of Santa Ana
Community Facilities District No. 92-1 (Main Street Concourse Public Improvements) (the "District")
and Orient Corporation of America, Inc. (the "Company").
WITNESSETH
WHEREAS, the Company has requested that the City form the District under the Mello -Roos
Community Facilities Act of 1982, as amended (the "Act"), in order to provide funds to finance
certain public capital improvements (the "Improvements") necessitated by development of certain
property in the City owned or to be owned by the Company and known as "Main Street Concourse";
and
WHEREAS, the Company desires that the City proceed with the construction of certain of the
Improvements and is willing to advance funds for that purpose, provided that any funds so advanced
are reimbursed to the Company from the proceeds of any bonds issued by the City for the District;
and
WHEREAS, the City and the Developer now desire to specify the terms of said advances and
reimbursement.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth
herein, the parties hereto agree as follows:
Section 1. Advances. It is contemplated that the Company will, from time to time,
advance monies to the City to provide funds for the acquisition and construction of the Improvements.
Specifically, but without limitation, the Company may advance up to $1,500,000 for costs related to
the improvement of Owens Drive and $448,000 for costs related to the construction of the "Memory
Lane Extension" sewer improvements. The City hereby agrees to remit to the Company, from time
to time, but at least semi-annually, any investment earnings on the amount advances by the Company.
The Company hereby agrees that the City may use such funds at the discretion of the
City for such purposes or for such other purposes as the City and the Company may from time to
time agree related to the acquisition and/or construction of land and public capital improvements
necessitated or required by the City in connection with the Company's proposed development within
the District.
Section 2. Reimbursement. The City hereby agrees to reimburse any advances made as
described in Section 1 above solely from the proceeds of bonds issued for the District under the Act
KMLYDDAN 21932 58573 1
and only to the extent otherwise permitted under the Act (as determined by bond counsel to the City
for the District). If for any reason whatsoever bonds are not issued under the Act for the District
(including, but not limited to, a decision by the City Council in its sole discretion, for any reason, not
to approve the issuance of such bonds), the City shall have no obligation to reimburse any advances
described in Section 1 hereof; provided that, if the total cost of the contemplated improvements is less
than $2,000,000.00, the City shall return to the Company any excess contribution by the Company as
determined by the City.
Section 3. No Obligation. This Agreement shall not in any way create any obligation or
commitment that the City will proceed with the formation of the District or the issuance of bonds for
the District; however, the City acknowledges that its present intent is to proceed with the formation of
the District and the issuance of bonds for the District. The City reserves the right to abandon
proceedings to form the District at any time in its sole and absolute discretion. In addition, this
Agreement shall in no way affect the obligations of the Company under any zoning, planning, land
use approval or other regulations of City.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and
year first set forth above.
ATTEST:
CITY OF SANTA ANA
141
1�fadice C. Guy a I H.'Young \j
Clerk of the Council Mayor
APPROVED AS TO FORM:
Edward 1. o
City Attorney
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ORIENT CORPORATION OF AMERICA, INC.
Ryujiro Saegusa
President