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HomeMy WebLinkAbout03 - JOINT PH - DDA Bowers 1902-1914 N MainREQUEST FOR C®UNCfL/ .~f`, AGENCY ACTION ~`"' ~~:~. - ~~ MEETING D/~TE: FEBRUARY 17, 2009 TITLE: JOINT PUBLIC HEARING - DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE CHARLES BOWERS MUSEUM CORPORATION FOR 1902-1914 NORTH MAIN STREET ,~''r ~~ E~.m.+-.,~a.~ ~~ ~~v ~ CITY MANAGER EXECU E DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to a Disposition and Development Agreement between the Community Redevelopment Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, for the sale of certain real property in the Merged Redevelopment Project Areas and approving the sale of said real property upon the terms and conditions contained in that agreement. COMMUNITY REDEVELOPMENT AGENCY ACTION Adopt a resolution approving a Disposition and Development Agreement between the Community Redevelopment Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation (Museum). COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting of February 3, 2009, by a vote of 4:0 (Villasenor absent), the Community Redevelopment and Housing Commission recommended that: 3-1 Joint P.H.- DDA with The Charles Bowers Museum Corporation for 1902-1914 North Main Street February 17, 2009 Page 2 1) the City Council adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to a Disposition and Development Agreement between the Community Redevelopment Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, for the sale of certain real property in the Merged Redevelopment Project Areas and approving the sale of said real property upon the terms and conditions contained in that Agreement, and 2) the Community Redevelopment Agency adopt a resolution approving a Disposition and Development Agreement with The Charles Bowers Museum Corporation, a California non-profit public benefit corporation (Museum). T1T C('TTCCT(1TT In September 2005, the City Council and Redevelopment Agency approved and authorized several actions to facilitate the 30,000 square foot expansion of the Bowers Museum. As part of the transaction, the City effectuated a land exchange with Steadfast Companies, a residential developer who owned the property immediately north of the Museum. Under the exchange, Steadfast was to develop a luxury condominium project on the City's existing 20th Street parking lot, and the Museum was to expand its operation on the northerly Steadfast parcel. The Museum has completed its $14 million expansion; however, the Steadfast development has been on hold due to market conditions. Steadfast recently expressed a willingness to sell the lot to the Agency as they are not interested in pursuing development of the site. Steadfast has agreed to sell their parcel to the Agency for $1,300,000, which is considerably below market value. In turn, the Agency proposes to enter into a Disposition and Development Agreement (DDA) with the Museum for parking on an interim basis and future museum expansion. The DDA provides that the Agency will convey the property to Bowers for $1. At such time as Bowers determines the scope of its future expansion, the appropriate zoning actions will be taken. In the meantime, the existing parking lot will remain and be maintained by Bowers. The DDA contains a deed restriction for the term of the project area (2026) to allow only a public and/or museum use on the property. In return for the property, the Bowers Corporation will be reimbursing the City's general fund for prior year operating expenses in the amount of $1.3 million. These funds will be paid after close of escrow on the parking lot parcel. The City Council will need to take a subsequent action to appropriate the funds once received. 3-2 Joint P.H.- DDA with The Charles Bowers Museum Corporation for 1902-1914 North Main Street February 17, 2009 Page 3 CEQA COMPLIANCE In accordance with the California Environmental Quality Act, the proposed project is exempt from further review. General Rule Exemption Environmental Review No. 2009-04 will be filed for this project. FISCAL IMPACT Funds from the sale of the property in the amount of $1 will be credited to the Merged Project Area Sale of Land revenue account (no. 570-01- 5721) . APPROVED AS TO FUNDS AND ACCOUNTS: "V ~ ~ r Vicki Uehli Francisco Gutierrez Project Manager Executive Director Community Development Agency Finance and Management Services Agency CJN/VU/kcg H:\ACTION ITEMS\COUNCIL\2009\021709 JT PH CC-CRA DDA BOWERS(1).doc 3-3 RESOLUTION NO. CRA 2009- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND THE CHARLES BOWERS MUSEUM CORPORATION, A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The Board of Directors of the Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. The Community Redevelopment Agency of the City of Santa Ana (hereinafter referred to as the "Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan for the Merged Project Area, in the sub-area formerly known as the Central City Project Area. ("the Redevelopment Plan"). B. In order to implement the Redevelopment Plan, the Agency has agreed, subject to the approval of the City Council, to sell certain real property in the Project Area, pursuant to the terms and provisions of a Disposition and Development Agreement (hereinafter referred to as the "Agreement") between the Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, which is attached to the Request for Council/Agency Action submitted in conjunction with this Resolution, in which said Site, commonly known as 1902-1914 North Main Street, 110-116 West 20th Street, and 111 West 19th Street, Santa Ana, California and consisting of approximately 1.1 acres, is further described. This Request for Council/Agency Action and its attachments are incorporated herein by this reference as though fully set forth. C. The Agreement contains all of the provisions, terms, conditions and obligations required by the state and local laws. 1 3-4 D. The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, possess the qualifications and financial resources necessary to acquire and insure development of the Site, in accordance with the purpose and objectives of the Redevelopment Plan. E. In accordance with the California Environmental Quality Act, the City of Santa Ana has deemed that the recommended action is exempt from further review and determined that an exemption for Environmental Review No. 2009-04 will be filed for this project. Asa "responsible agency," the Agency agrees that this environmental document appropriately analyzes the project and complies with the California Environmental Quality Act, and that it will implement or see to the implementation of any mitigation measures specified as its responsibility under the mitigation monitoring plan. F. Pursuant to the provisions of the California Redevelopment Law, the Agency and the City Council have held a duly noticed joint public hearing on the proposed sale of the Site pursuant to the Agreement. The Agency Board has considered all evidence submitted, both oral and written, as has been fully advised prior to adoption of this Resolution. Section 2. The Disposition and Development Agreement is hereby approved, and the Executive Director of the Agency is hereby authorized to execute the Agreement, with such non-substantive changes as may be approved as to form by Agency's General Counsel. Section 3. The Executive Director of the Agency is hereby authorized to take all steps,' and to sign all documents and instruments necessary to implement and carry out the Agreement on behalf of the Agency. ADOPTED this day of , 2009. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel 2 3-5 By: Benjamin Kaufman Assistant General Counsel AYES: Boardmembers: NOES: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Secretary City of Santa Ana 3 3-6 DISPOSITION AND DEVELOPMENT AGREEMENT This Agreement is entered into on this 17th day of February, 2009, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ("Agency") and THE CHARLES BOWERS MUSEUM CORPORATION, a California non-profit public benefit corporation ("Developer"). The Agency and the Developer agree as follows: ARTICLE 1 - SUBJECT OF AGREEMENT Section l O1. Purpose of the Agreement The purpose of this Agreement is to effectuate the Redevelopment Plan specified in Section 102 by providing for the rehabilitation and redevelopment of a portion of the Project Area. The rehabilitation and redevelopment by the Developer pursuant to this Agreement, and the fulfillment generally of the Agreement, are in the vital and best interest of the City of Santa Ana (the "City") and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of applicable laws and requirements. Section 102. The Redevelopment Plan The Redevelopment Plan for the Redevelopment Project was approved and adopted by the City Council of the City of Santa Ana by Ordinance No. NS-1 173 on July 2, 1973 and amended by Ordinance No. NS-1258 on June 2, 1975, and thereafter amended including the amendment by the City Council Ordinance No. NS-2663 on or about September 20, 2004, and is hereinafter referred to as the "Redevelopment Plan." This Agreement is subject to the provisions of the Redevelopment Plan which are incorporated herein by this reference and made a part hereof as though fully set forth herein. Any amendment to the Redevelopment Plan which changes the restrictions or controls that apply to the parcels to be developed by the Developer as defined hereafter or which otherwise affect the development and operation of the Developer, shall require the written consent of the Developer. Any other amendments of the Redevelopment Plan applying to other property in the Project Area shall not require the consent of the Developer, or its successors or assignees. Section 103. The Project Area The "Project Area" is located in the City of Santa Ana, California, and is more specifically described in the Redevelopment Plan. 3-7 Section 104. The Property The "Property" is that portion of the Project Area which is shown on "Attachment No. I", attached hereto and incorporated herein by this reference, is more fully described in "Legal Description" of the Property, which is incorporated herein by this reference and attached hereto as "Attachment No. 2". Section 105. The A ency The Agency is a public body, corporate and politic, exercising governmental functions and powers, organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code §33000 et sue.). The principal office of the Agency is located at City Hall, 20 Civic Center Plaza, Santa Ana, California, 92701. "Agency", as used in this Agreement, includes the Community Redevelopment Agency of the City of Santa Ana, and any assignee of; or successor to, its rights, powers and responsibilities. Section 106. The Developer The Developer is The Charles Bowers Museum Corporation, a California non-profit public benefit corporation. The address of Developer, for the purposes of this Agreement, is 2002 North Main Street, Santa Ana, California, 92706. ARTICLE lI -DISPOSITION OF THE PROPERTY Section 201. Sale and Purchase In accordance with, and subject to, all of the terms, covenants and conditions of this Agreement, Agency agrees to sell the Property to Developer, and Developer agrees to purchase the Property from Agency for the total sum of $ ] .00, hereinafter referred to as the "Purchase Price". The said Purchase Price shall be paid at the time of close of the escrow specified in Section 202 of this Agreement. 2 3-8 Section 202. Escrow A. The Agency agrees to open an escrow for the sale of the Property to the Developer with First American Title Insurance Company or some other escrow company mutually agreed upon by the parties (the "Escrow Agent"), within the times set forth in the Schedule of Performance attached hereto as Attachment No. 3 and incorporated herein, as may be amended by mutual agreement of the Developer and the Agency's Executive Director. This Agreement and Escrow Agent's Standard Form Escrow Instructions constitute the joint escrow instructions of the Agency and the Developer and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow. B. The Agency's Executive Director and the Developer shall provide such additional escrow instructions as shall be necessary and consistent with this Agreement. The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of this section in writing, delivered to the Agency and within five (5) days after delivery of this Agreement, shall carry out its duties as Escrow Agent hereunder. C. After delivery to the Escrow Agent by the Agency of the Deed. as defined in Section 406 of this Agreement, and upon close of escrow, the Escrow Agent shall record the said Deed in accordance with these escrow instructions, provided that the title to such Property can be vested in the Developer in accordance with the terms and provisions of this Agreement. The Escrow Agent shall buy, affix, and cancel any transfer stamps required by law and pay any transfer tax required by law. Any insurance policies relating to such property shall not be transferred to Developer by Agency. D. The Agency and the Developer shall deliver to the Escrow Agent all documents necessary for the conveyance of title to the Property in conformity with, within the times, and in the manner provided in this Agreement. E. The Developer shall pay in escrow to the Escrow Agent the following fees, charges and costs promptly after the Escrow Agent has notified the Developer of the amount of such fees, charges and costs but not earlier than ten (10) days prior to the scheduled date for close of escrow: The escrow fee; 2. The premium for any title insurance policy as set forth in Section 206 of this Agreement; 4. Cost of drawing the deeds; 5. Recording fees; 6. Notary fees. 3 3-9 7. The Purchase Price. 8. All other fees, charges and costs promptly after the Escrow Agent has notified the Developer of the amount of such fees, charges and costs, but not earlier than ten (10) days prior to the scheduled date for a conveyance F. The Agency shall pay in escrow to the Escrow Agent the following fees: Costs necessary to place title in the condition required by the provisions of this Agreement; 2. Ad valorem taxes, if any, upon the property conveyed for any time prior to conveyance of title; 3. Any federal, state, county or city documentary stamps and transfer taxes. G. Developer and Agency agree that the Escrow Agent is authorized to: Pay, and charge the Agency and Developer for any fees, charges and costs payable by Agency and Developer respectively under this Section. Before such payments are made, the escrow agency shall notify the Agency and the Developer of the fees, charges and costs necessary to clear title and close the escrow. 2. Disburse funds and deliver the deed and other documents to the parties entitled thereto when the conditions of the escrow have been fulfilled by the Agency and the Developer. Such funds shall not be disbursed and delivered by the Escrow Agent unless and until it has recorded the deed pertaining thereto, and has delivered to the Developer a title insurance policy conforming to the requirements of this Agreement. 3. Record any instruments delivered through the escrow if necessary or proper to vest title in the Developer in accordance with the terms and provisions of this Agreement. H. All funds received in said escrow shall be deposited by the Escrow Agent in a general escrow account with any state or national bank doing business in the State of California. Such funds may be transferred to any other such general escrow account or accounts. If this Agreement is terminated and if escrow is not in a condition to permit a conveyance on or before the time therefor established in this Agreement, either party who then shall have fully performed the acts to be performed before the conveyance of title may, in writing, demand the return of its money, papers, or documents from the Escrow Agent. No demand for return shall be recognized until ten (10) days after the Escrow Agent shall have mailed copies of such demand to the other party or parties at the address of its principal place of business. Objections, if any, shall be raised by written notice to the Escrow Agent and to the 4 3-10 other party within the ten (10) day period, in which event the Escrow Agent is authorized to hold all money, papers, and documents with respect to the conveyance until otherwise instructed by a mutual agreement of the parties or by a court of competent jurisdiction. ]f no such demands are made, the escrow shall be closed as soon as possible. J. Any amendment to escrow instructions shall be in writing and signed by both the Agency's Executive Director and the Developer. At the time of any such amendment, the Escrow Agent shall agree to carry out its duties as Escrow Agent under such amendment. K. All communications from the Escrow Agent to the Agency or the Developer shall be directed to the addresses and in the manner established in Section 607 of this Agreement for notices, demands and communications between the Agency and the Developer. L. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under this section. Section 203. Conveyance of Title A. Subject to any extensions of time authorized by this Agreement, the Agency shall perform all acts required by this Agreement to be performed by the Agency as preconditions to the conveyance of title to the Property to Developer, and shall tender title to the Property to Developer by the Deed, as defined in Section 406, on or before the date set for such conveyance of title in the Schedule of Performance. B. Subject to extensions of time authorized by this Agreement, Developer shall perform all acts required by this Agreement to be performed by Developer as preconditions to the conveyance of title to the Property to Developer, and shall accept title to the Property, on or before the date set for such conveyance of title in the Schedule of Performance. Section 204. Additional Requirements for Conveyance of Title A. Developer shall provide Agency with evidence of liability insurance in accordance with Section 310 of this Agreement. B. Developer shall deliver to Agency an unconditional acceptance of the conditions of the soils of the site satisfying the terms of Section 209 of this Agreement, and an acceptance of site conditions as required by Section 208 of this Agreement. Section 205. Condition of Zoning/Condition of Title A. The Developer accepts and acknowledges that the zoning established by the City of Santa 5 3-11 Ana for the Property does not currently permit the uses thereon contemplated by this Agreement and the Redevelopment Plan. The .Agency warrants that it has applied to cancel and rescind the Development Agreement between Steadfast Courtyards, LLC and the City of Santa Ana dated on or about October 3, 2005. B. The Agency shall convey to the Developer title to the Property, free and clear of all recorded liens, encumbrances, covenants, conditions, restrictions, easements. leases and taxes, except: 1. Easements held by a public entity or a privately owned public utility company; 2. Subsurface drilling rights pertaining to exploration for or production of oil, gas, hydrocarbon substances or minerals which do not affect development of the Property; 3. The Redevelopment Plan; 4. The covenants, conditions and restrictions set forth in this Agreement and the Deed, as defined in Section 406. 5. The aforementioned Development Agreement between Steadfast Courtyards, LLC and the City of Santa Ana dated on or about October 3. 2005. Section 206. Title Insurance Concurrent with recordation of the Deed, as defined in Section 406 ,First American Title Insurance Company, 2 American Way, Santa Ana California, 92707, or some other title insurance company mutually agreed upon by the parties (the "Title Company") shall provide and deliver to the Developer a CLTA standard title insurance policy as may be required by Developer issued by the Title Company insuring that title is vested in the Developer, or its designee in the condition required by this Agreement. Such title insurance policy shall be in the amount of the Purchase Price, and the premium therefor shall be paid by the Developer. Concurrently, with the recording of such deed, the Title Company shall, if requested by the Developer, provide an endorsement, solely at Developer's cost to insure the amount of the Developer's estimated development and construction costs of the improvements to be constructed upon the property. Section 207. Possession of the Property A. Possession of the Property shall be deemed delivered by the Agency to Developer at the time title to the Property is conveyed by the Agency to Developer. Except as otherwise provided in subsection B of this section, the Agency shall deliver the Property to Developer 6 3-12 free of any possession or right of possession except that of Developer unless waived by Developer in writing. B. To the extent that any wall or fence serving to separate the Property from abutting property encroaches onto the Property, the Agency is not responsible for terminating any possession or right of possession existing by reason of such encroachment. Section 208. Site Clearance A. Except as otherwise provided in subsections B and C of this section, the Agency shall, convey title to the Property to Developer, without removal of any improvements located on the Property, including any foundations, basements, concrete, masonry, asphaltic flat work and walls, and any utility lines, installations, facilities, and related equipment which are not maintained on the Property pursuant to valid and enforceable easements. Developer shall be responsible for any and all utility relocation expenses, the costs of which Developer agrees to pay at the time such expenses, if any, are incurred. B. The Agency shall not be responsible for the demolition or removal of anv subsurface structure or remnant thereof (including, but not limited to, any underground storage tank) the existence of which was not known to the Agency at the time of its approval of this Agreement and could not have been definitely determined by the Agency prior to such time through reasonable inquiry. C. The Agency shall not be responsible for the demolition and removal of encroachments installed, maintained, occupied or used by the owner or occupant of any property abutting the Property. Section 209. Soils Conditions and Hazardous Substance A. It shall be the sole responsibility of Developer, at Developer's sole cost and expense, to investigate and determine the soil conditions of the Property and the suitability of such Property for the development proposed to be constructed by Developer. If the soil or other physical conditions of the Property, or any portion thereof, are not in all respects entirely suitable for the use or uses to which the Property will be put, then Developer agrees that it is the sole responsibility and obligation, including financial, of Developer to take such action as may be necessary to place the Property and the soil conditions of the Property in all respects in a condition entirely suitable for such development. B. Hazardous substances.. as used in this Agreement, shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or 7 3-13 "restricted hazardous waste" under Section 251 15, 251 17 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 1 1 of Title 22 of the California Code of Regulations, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 31 1 of the Clean Water Act, (33 U.S.C. § 1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 690] et sec. (42 U.S.C. § 6903) or (xi) defined as a "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S.C. Section 9601 et secy. (42 U.S.C. § 9601). C. Developer agrees to perform and be solely responsible for the cleanup of any hazardous substances on, in, under or within the site, and to comply with all related provisions of the Scope of Development, at the sole cost, risk and expense of Developer. D. Agency has agreed to make available to Developer all its files and records regarding the Property, which shall include a Phase 1 and Phase lI environmental audit performed on behalf of the prior owner, Steadfast Courtyards L.P, should Agency receive said audits. Based solely upon information contained in those records, Agency represents that it is not aware of the existence of any Hazardous Substances on the Property. E. After delivery of title or possession of the Property, the Developer shall defend, indemnify and hold harmless the Agency, the City and their officers, agents, employees, contractors and consultants from any claims, liability, injury, damages, costs and expenses (including, without limiting the generality of the foregoing, the cost of any required cleanup of hazardous substances, and the cost of attorneys' fees) which may be sustained as the result of the presence or cleanup of hazardous substances on, in, or under the site. Agency agrees to reasonably cooperate with Developer in any such action. F. Upon the development of the long-term use of the Property, Developer shall (at its own cost and expense) remove and/or otherwise remedy as provided by law and implementing rules and regulations, and sufficiently to adequate project the public health and safety (including the health and safety of occupants of the site and adjacent properties), any hazardous substances and soil and water contamination on, in, under and/or within the site. Such work shall include, without limitation, the following: 8 3-14 Remove (and dispose of) and/or treat any contaminated soil and/or water on the site (and adjacent public rights-of--way which the Developer is required to improve) as necessary to comply with applicable governmental standards and requirements. 2. Design and construct the improvements on the site in a manner which will assure protection of occupants and the improvements from any contamination, whether in vapor or other form, and/or from the direct and indirect effects thereof. 3. Prepare a site safety plan and submit it to the appropriate governmental and other authorities for approval in connection with obtaining a building permit for the construction of improvements on the site. Such site safety plan shall assure workers and other visitors to the site of protection fror~n any health and safety hazards during development and construction of the improvements. Such site safety plan shall include monitoring and appropriate protective action against vapors and/or the effect thereof. 4. Obtain from the County of Orange and/or California Regional Water Quality Control Board and/or any other authorities required by law any permits or other approvals required in connection with the removal and/or remedy of soil and/or water contamination, in connection with the development and construction on the site. 5. Cooperate with the applicable governmental authorities and/or property owners and occupants as necessary or appropriate to cure any soil and/or water contamination condition on adjacent and nearby properties in the project area. The Developer agrees that the Agency, and its consultants and agents, shall have the right (but not the obligation) to enter upon the site at any time to monitor the construction on the site, to test the soil and/or water on the site, and to take such other actions as may be reasonably necessary to assure compliance with this section of the Agreement. Nothing herein (including without limitation the Agency's right to inspect) shall be construed to make the Agency, the City or their respective officers, employees. contractors and agents liable for the responsibilities under this Section. Section 210. Preliminary Work by Developer Prior to the conveyance of title, the Developer or his representatives, upon written request of Developer, shall have the right of access to any part of the Property which is in the possession of the Agency at all reasonable times for the purposes of obtaining data and making surveys and tests necessary to carry out this Agreement. The Developer hereby indemnifies and holds the Agency and the City harmless for any injury or damages arising out of any activity of Developer, its agent, employees and contractors, performed and conducted on this Property pursuant to this Section. Developer shall obtain the same insurance coverage as required by Section 310 prior to exercise of any right of access as permitted by this Section. Developer shall have access to all information concerning the condition of the Property of which the Agency has knowledge and access. 9 3-15 Section 21 1. "As ]s" Condition DEVELOPER ACKNOVI~LEDGES AND AGREES THAT EXCEPT FOR THE EXPRESS REPRESENTATIONS, WARRANTIES AND COVENANTS OF AGENCY SET FORTH IN THIS AGREEMENT, AGENCY HAS NOT MADE, DOES NOT MAKE, AND SPECIFICALLY DISCLAIMS ANY AND ALL REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS, OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT, OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO: (A) THE NATURE, QUALITY, OR CONDITION OF THE PROPERTY; (B) THE INCOME TO BE DERIVED FROM THE PROPERTY; (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH DEVELOPER MAY CONDUCT THEREON; (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, INCLUDING, BUT NOT LIMITED TO, ANY STATE OR FEDERAL ENVIRONMENTAL LAW, RULE OR REGULATION; (E) THE HABITABII.(TY, MERCHANTABILITY, OR FITNESS OF THE PROPERTY FOR A PARTICULAR PURPOSE; OR (F) ANl' OTHER MATTER WITH RESPECT TO THE PROPERTY. NOTWITHSTANDING ,ANYTHING HEREIN TO THE CONTRARY, AGENCY IS CONVEYING THE PROPERTY TO DEVELOPER "AS 1S. WHERE 1S", AND WITH ALL FAULTS AND SPECIFICALLY AND EXPRESSLY WITHOt1T ANY WARRANTIES. REPRESENTATIONS, OR GUARANTEES, EITHER EXPRESS OR IMPLIED. OF ANY KIND, NATURE, OR TYPE WHATSOEVER FROM OR ON BEHALF OF THE SELLER, EXCEPT FOR THE REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER SET FORTH IN THIS AGREEMENT. Developer's Initials ARTICLE II[ - DEVELOPMENT OF THE PROPERTY Section 30l . Scope of Development A. Developer agrees the Property shall be developed in accordance with and within the limitations specified in Scope of Development, Attachment No. 4, attached hereto and incorporated herein by this reference, and plans approved by Agency pursuant to Sections 304 through 307 hereinbelow. 10 3-16 B. The Developer agrees, acknowledges and warrants that the Property shall only be used by Developer for the expansion of the Bowers Museum, being a place devoted to the acquisition, conservation, study, exhibition, and educational interpretation of objects having scientific, historical, or artistic value, together with such ancillary uses as are normally associated with a museum (sometimes referred to herein as the "long-term use"). In the interim, as the sole interim use, the Property shall only be used for public (and museum) parking. Section 302. Interim Improvements Developer agrees, at its own cost and expense, including cost of design plans and specifications, to install or construct or cause to be installed or constructed, new surfacing and as necessary, lighting and landscaping, such that the Property may continue in its interim use as a parking lot. Section 303. Responsibilities of the A encx The Agency shall review all submittals as set forth in the Schedule of Performance (Attachment No. 3) and elsewhere in this Agreement for the Agency to review. Agency agrees to reasonably assist Developer in obtaining approvals of other governmental agencies (except for the City of Santa Ana). In no event shall Agency offer of assistance be deemed to be a guarantee or warrantee that such approvals will be obtained. Section 304. Concept Plans All work to be performed on the Property, except for work on the interim use as a parking lot as set forth in Section 302, shall be in accordance with the Concept Plans as set provided for in Schedule of Performance, Attachment No. 3 hereto and incorporated herein, except for such changes which may be mutually agreed upon in writing between the Developer and the Agency. Any such changes may be approved by Agency's Executive Director provided they are within the limitations established in the Scope of Development. Section 305. Landscapin Plans As part of development of the long-term use, landscaping plans shall be prepared by a licensed landscape architect. The Developer shall prepare and submit to the Agency for its approval, preliminary and final landscaping plans at the times established in the Schedule of Performance. Section 306. Reserved 3-17 Section 307. Agency Approval of Plans Drawings and Related Documents The Agency shall have the right of reasonable review (including, but not limited to, architectural review) of all plans, drawings and related documents for the development, including any proposed changes therein. The Agency shall approve or disapprove such plans, drawings, and related documents referred to in this Agreement (and any proposed changes therein) within the times established in the Schedule of Performance. Such approval shall not be unreasonably withheld. Any disapproval shall state in writing the reasons for disapproval. The Developer, upon receipt of a disapproval, shall revise such portions of the plans, drawings or related documents in a manner that satisfies the reasons for disapproval and shall resubmit such revised portions to the Agency as soon as possible after receipt of the notice of disapproval. Plans, drawings, and related documents receiving Agency approval shall not be subsequently disapproved. Section 308. Cost of Construction The cost of developing the Property and of constructing all improvements thereon shall be borne by the Developer, except as otherwise expressly provided in this Agreement. Section 309. Construction of the Long-Term Use A. Developer agrees, at its own cost and expense, including cost of design plans and specifications, to install or construct or cause to be installed or constructed sidewalks, curbs, gutters, culverts, pavement, street lights and any other off-site improvements as may be required for development of the Property by the City of Santa Ana as part of the long-term use, all in accordance with technical specifications, standards and practices of the City of Santa Ana. B. Developer shall contract with a general contractor, licensed as such by the State of California, for all such construction work. 12 3-18 Section 310. Indemnification During Construction- Bodily Injury and Property Damage Insurance A. From and after close of escrow as to the Property or any portion thereof, Developer agrees to and shall indemnify and hold Agency, City and their officers, agents and employees harmless from and against all damages to property or injuries to or death of any person or persons, including employees or agents of Agency or City, and shall defend, indemnify and save Agency, City, and their officers, agents, and employees, from any and all claims, demands, suits, actions, or proceedings of any kind or nature, including, but not by way of limitation, workers' compensation claims of or by anyone whomsoever, in any way resulting from the negligent or wrongful acts or omissions of Developer, its employees, agents or subcontractors. B. Prior to the conveyance of the Property by Agency, Developer shall obtain at its sole cost and file with the Executive Director of Agency, and maintain for the period covered by this Agreement, a policy or policies of liability insurance or a certificate of such insurance, consistent with this Agreement, naming Agency and the City of Santa Ana, their officers, agents, and employees, as insured or additional insured, which provides coverage not less than that provided in the form of a comprehensive general liability insurance policy against liability for any and all claims and suits for damages or injuries to persons or property resulting from or arising out of operations of Developer, its officers, agents, or employees. Said policy or policies of insurance shall provide coverage for both bodily injury and property damage in not less than One Million Dollars 01,000,000) combined single limit, or its equivalent. Said policy or policies shall also contain a provision that no termination, cancellation, or change of coverage of insured shall be effective until after thirty (30) days notice thereof has been given in writing to Agency. Developer shall give to Agency prompt and timely notice of claim made or suit instituted arising out of Developer operations hereunder. Developer may procure and maintain, at its own cost and expense, any additional kinds and amounts of insurance which in its own judgment may be necessary for its proper protection in the prosecution of the work. All insurance policies shall be written by responsible and solvent insurance companies. Section 31 1. City of Santa Ana Discretionary and Non-Discretionar~pprovals A. Developer shall be responsible for the costs of environmental documents and all other municipal requirements which shall be such as to permit development of the Property and the construction, use, operation, and maintenance of the improvements to be constructed thereon in accordance with the provisions of this Agreement. These may include amendment to the zoning, conditional use permit, variances, building permits. B. The Developer shall be responsible for obtaining any approvals required by any agency, department or bureau, other than the City of Santa Ana, having jurisdiction over the development or the Developer. 13 3-19 Section 312. Reserved Section 313. Antidiscrimination During Construction The Developer for itself and its successors and assignees agrees that in the construction of the improvements on the Property provided for in this Agreement, the Developer will not discriminate against any employee or any applicant for employment because of sex, marital status, race, color, religion, creed, national origin or ancestry. Section 314. Compliance with Governmental Requirements Developer shall carry out the design, construction, and operation of the Project in substantial conformity with all applicable laws, ordinances, statutes, codes, rules, regulations, orders, and decrees of the United States, the State of California, the County of Orange, the City, or any other political subdivision in which the Property is located, and of any other political subdivision, agency, or instrumentality exercising jurisdiction over the City, the Developer or the Property, including all applicable federal, state, and local occupation, safety and health laws, rules, regulations and standards, applicable state and labor standards, applicable prevailing wage requirements, the City zoning and development standards. City permits and approvals, building, plumbing, mechanical and electrical codes. as they apply to the Property and the Project, and all other provisions of the City and its Municipal Code (as they apply to the Property and the Project), and all applicable disabled and handicapped access requirements, including, without the limitation, the Americans With Disability Act, 42 U.S.C. § 1210] et seg., Government Code ~ 4450 et seg., and the Unruh Civil Rights Act, Civi] Code § 51 et seq. ("Governmental Requirements"). Section 315. Right of Holders of Security Interests A. The holder of any mortgage, deed of trust, or other security interest authorized by this Agreement shall in no way be obligated by the provisions of this Agreement to construct or complete the improvements or to guarantee such construction or completion; nor shall any covenant or any other provision in a deed for any portion of the Property be constructed so to obligate such holder. Nothing in this Agreement shall be deemed to construe, permit, or authorize any such holder to devote the Property to any uses, or to construct any improvements thereon, other than those uses or improvements provided for or authorized by this Agreement. B. Whenever the Agency shall deliver any notice or demand to the Developer with respect to any breach or default by the Developer in completion of construction of the improvements, the Agency shall at the same tune deliver to each holder of record of any mortgage, deed of trust or other security interest authorized by this Agreement a copy of such notice or demand. Each such holder shall (insofar as the rights of the Agency are concerned) have the 14 3-20 right at its option within one hundred twenty (120) days after the receipt of the notice to cure or remedy any such default and to add the cost thereof to the security interest debt and the lien on its security interest, provided such holder complies with the following requirements: If such default shall be a default which can only be remedied or cured by such holder upon obtaining possession, such holder shall seek to obtain possession with diligence and continuity through a receiver or otherwise, and shall remedy or cure such default within one hundred twenty (120) days after obtaining possession; provided that in the case of a default which cannot with diligence be remedied or cured, or the remedy or cure of which cannot be commenced, within such one hundred twenty (120) day period, such holder shall have such additional time as is reasonably necessary to remedy or cure such default of the Developer. 2. Nothing contained in this Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the improvements (beyond that necessary to conserve or protect the improvements or construction already made) without first having expressly assumed the obligations to the Agency by written agreement satisfactory to the Agency. The holder in that event must agree to complete, or cause to be completed, in the manner provided in this Agreement, the improvements to which the lien or title of such holder relates, and submit evidence satisfactory to the Agency that it has the qualifications and financial responsibility necessary to perform such obligations. Any such holder properly completing such improvements shall be entitled, upon written request made to the Agency, to a Certificate of Completion from the Agency. C. In any case where. six (6) months after the holder of any mortgage, deed of trust. or other security interest creating a lien or encumbrance upon the Property or any portion thereof has obtained possession of the Property pursuant to a default by the Developer in the completion of construction of improvements under this Agreement and, has not exercised the option to construct, or has exercised the option but has not proceeded diligently with construction, the Agency may, upon giving the holder thirty (30) days prior written notice, purchase the mortgage, deed of trust or other security interest by payment to the holder of the amount of the unpaid debt, plus any accrued and unpaid interest at the end of such thirty (30) day period. If the ownership of the Property has vested in the holder, the Agency, if it so desires, shall be entitled to a conveyance from the holder to the Agency upon payment to the holder of an amount equal to the sum of the following: The unpaid mortgage, deed of trust; or other security interest debt at the time title became vested in the holder (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings); 2. All expenses with respect to foreclosure; 15 3-21 3. The net expenses, if any (exclusive of general overhead), incurred by the holder as a direct result of the subsequent ownership or management of the Property, such as insurance premiums and real estate taxes; 4. The costs of any improvements made by such holder; and 5. An amount equivalent to the interest that would have accrued on the aggregate on such amounts had all such amounts become part of the mortgage or deed of trust debt and such debt had continued in existence to the date of payment by the Agency. D. The Agency's Executive Director may, on behalf of the Agency, modify the provisions of this section to meet the requirements of any construction or permanent lender financing the construction of improvements on the Property. Section 316. Right of Agency to Cure and Satisfy Financing Defaults and Liens A. In the event of a default or breach by the Developer of a mortgage, deed of trust, other security instrument, or a leaseback, or of obligations to the grantee under any other conveyance for financing purposes with respect to the Property (or any portion thereof) prior to the issuance of the Certificate of Completion, the Agency may cure the default prior to completion of any foreclosure, termination of the lease, or completion of proceedings by which such other security interest is obtained or granted back. In such event, the Agency shall be entitled to reimbursement from the Developer of all costs and expenses reasonably incurred by the Agency in curing the default. The Agency shall also be entitled to a lien upon the Property (or any portion thereof) to the extent of such costs and disbursements. Any such lien shall be subordinate and subject to mortgages, deeds of trust, or other security instruments and the interest of lessors under any leaseback and grantees under other conveyances for financing executed for the sole purpose of obtaining funds to purchase and develop the Property as authorized herein. B. After the conveyance of title to the Property to Developer, and prior to the issuance of the Certificate of Completion, and after the Developer has had a reasonable time to challenge, cure, bond, or otherwise satisfy any unauthorized liens or encumbrances on the Property, the Agency shall have the right to satisfy any such liens or encumbrances; provided, however, that nothing in this Agreement shall require the Developer to pay or make provisions for the payment of any tax, assessment, lien, or charge so long as the Developer in good faith shall contest the validity or amount thereof, and so long as such delay in payment shall not subject the Property (or any portion thereof) to forfeiture or sale. C. The amount of any and all expenses incurred by the Agency in the exercise of its rights under this section shall be added on to the Purchase Price. The Developer shall be liable to the Agency for the amount of such expenses. 16 3-22 Section 317. Certificate of Completion A. Promptly after the completion of all construction required by this Agreement to be completed by Developer (including landscaping and off-site improvements) Agency's Executive Director shall furnish Developer with a Certificate of Completion therefor upon written request by Developer. Agency's Executive Director shall not unreasonably withhold or delay such Certificate. Such Certificate shall affirm that satisfactory completion of the construction required by this Agreement has been conclusively determined by Agency. If the Agency's Executive Director refuses or fails to furnish such Certificate of Completion after written request from Developer, the Agency's Executive Director shall within ten (]0) days of the written request, provide Developer with a written statement of the reasons why the Agency refuses or fails to furnish such Certificate of Completion. The statement shall also contain the Agency's Executive Director's opinion of the action that must be taken to obtain such Certificate of Completion. B. If this Agreement has been recorded at the Recorder's Office of Orange County, such Certificate of Completion shall be in such form as to permit it to be recorded at the Recorder's Office of Orange County. C. Such Certificate of Completion shall not constitute evidence of compliance with, or satisfaction of, any obligation of Developer to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the improvements, or any part thereof. Such Certificate of Completion is not a Notice of Completion as referred to in California Civil Code, Section 3093. D. Furthermore, such Certificate of Completion is separate and distinct from any Certificate of Occupancy to be issued by the City pursuant to the Building Code of the City for the construction required by this Agreement or any part thereof No Certificate of Completion shall be issued by the Agency's Executive Director for the construction required by this Agreement until after the issuance by the City of all applicable Certificates of Occupancy for such construction. ARTICLE IV -COVENANTS RUNNING WITH THE LAND Section 401. Use of the Propertx Developer covenants and agrees for itself, its successors, assignees and every successor in interest to the Property or any part thereof, that during construction and thereafter, Developer, such successors, and such assignees shall devote the Property to the uses specified in this Agreement. This provision shall remain in effect until July 2, 2026, and shall cease and terminate on such date. 17 3-23 Section 402 Reserved Section 403. Obligation to Refrain from Discrimination The Developer covenants and agrees for itself, its subcontractors and every successor in interest to the Property or any party thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of sex, marital status, race, color, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall be Developer itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination of segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property. Section 404. Maintenance of the Site Solely at the Developer's expense, the Developer shall maintain or cause to be maintained the Property and all improvements thereon (including but not limited to the landscaping) in good order, condition and appearance. Developer shall keep the Property reasonably free from any debris and waste material. If, at any time, Developer fails to maintain or cause to be maintained the Property as required by this section, and said condition is not corrected after the expiration of a reasonable period of time not to exceed thirty (30) days from the date of written notice from the Agency, either the Agency or the City may perform the necessary landscape or other maintenance and Developer shall pay all costs incurred for such maintenance. Section 405. Reserved Section 406. Effect, Recordation and Duration of Covenants The covenants established in this Article shall, without regard to technical classification and designation, be binding on Developer and any successor in interest to its interest in the Property or any part thereof or any improvements thereon for the benefit and in favor of the Agency, its successors and assigns, and the City. The covenant against discrimination shall remain in effect in perpetuity. All other covenants shall remain in effect until July 2, 2026. Developer agrees that the covenants set forth in this Article shall be included in the deed by which the Property is conveyed by Agency to Developer, in the form set forth in Attachment No. 5, attached hereto and incorporated herein (the "Deed"). 18 3 - 24 ARTICLE V -DEFAULTS, REMEDIES AND TERMINATION Section 501. Defaults-General Subject to the extensions of time set forth in Section 610, failure or delay by either party to perform any term or provision of this Agreement constitutes a default under this Agreement. If the default is for a cause other than failure of the Developer to perform the conditions precedent for a conveyance of title, the defaulting party shall be entitled to cure the default in accordance with this section. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default. Except as otherwise provided in Section 509, the defaulting party must, within thirty (30) days, following service of said notice, commence to cure, correct or remedy such failure or delay and shall complete such cure, correction, or remedy with reasonable diligence. Section 502. Institution of Legal Actions Subject to the provisions of Section 501 hereof, in addition to any other rights or remedies, either party may institute legal action to cure, correct or remedy any default to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Orange, State of California, or in any other appropriate court in that County. Section 503. Applicable Law The laws of the State of California shall govern the interpretation and enforcement of this Agreement. Venue shall be in the County of Orange, State of California. Section 504. Acceptance of Service of Process In the event that any legal action is commenced by the Developer against Agency, service of process on the Agency shall be made in such other manner as may be provided by law. In the event that any legal action is commenced by the Agency against the Developer, service of process on the Developer shall be made by personal service upon a general partner of the Developer or in such manner as may be provided by law. and shall be valid whether made within or without the State of California. 19 3-25 Section 505. Rights and Remedies are Cumulative Except with respect to rights and remedies expressly declared to be exclusive 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 or different times, of any other rights or remedies for the same default or any other default by the other party. Section 506. Dama es In the event that the Developer is liable for damages to the Agency, such liability shall be limited to the liquidated damages specified in Section 508. In the event that the Agency is liable for damages to the Developer, such liability shall not exceed costs incurred by the Developer in the performance of this Agreement and shall not extend to compensation for loss of future income, profits or assets; provided, however, Developer's only remedy for any breach of this Agreement by Agency alleged to occur after the conveyance of the Property by Agency to Developer shall be an action for specific performance of Agency's obligations. Section 507. Termination by Developer A. Developer may terminate this Agreement in the event that Agency fails to convey title to the Property in the manner provided in this Agreement provided Developer is not in default under this Agreement. In the event, however, that such failure is due to causes beyond Agency's control, said right of termination shall be Developer's sole and exclusive remedy. B. Notwithstanding any provisions of Section 508 to the contrary, Developer may also terminate this Agreement, without penalty, if for any reason whatsoever, Developer fails to satisfy any of the requirements for conveyance of title set forth in Section 204 A or B within 90 days of the date the Agency approves this Agreement. Section 508. Termination by A ency Prior to Conveyance This Agreement may be terminated by Agency in the event that prior to the conveyance of title to the Property: A. Developer, or any successor-in-interest assigns or attempts to assign this Agreement or any rights herein, in violation of this Agreement without written consent of Agency; or B. There is a substantial change in ownership of Developer contrary to the provisions of Section 602 hereof; or 20 3 - 26 C. Developer does not submit the requisite liability insurance, construction drawings and related documents as required by this Agreement by the dates provided in this Agreement; or D. Developer does not take title to the Property upon tender of conveyance by Agency in accordance with the provisions of this Agreement; or E. Developer does not provide funds as required under Sections 201 through 205; or F. Developer otherv,~ise defaults on its obligations under this Agreement. ARTICLE VI -GENERAL PROVISIONS Section 601. Reserved Section 602. Limitations on Transactions A. It is stipulated and agreed by the parties hereto that the Agency has entered into this Agreement for the purpose of obtaining redevelopment of the Property in accordance with the goals and objectives of the Redevelopment Plan, that the qualifications and plan submitted by Developer were essential to Agency's selection of Developer for the development of the Property, and that the Developer is not entitled by this Agreement to obtain profit through speculation in undeveloped land. The limitations of this section are imposed to promote the foregoing purposes. B. Except as otherwise provided in subsections C and D of this section, the Developer shall not do any of the following transactions or permit them to occur without the written consent of the Agency, which shall not be unreasonably withheld: Assign all or any part of this Agreement. 2. Allow any significant change in the membership, management, or control of Developer, other than resignations and new appointments to Developer's Board of Directors (exclusive of the death or incapacitation of any person in such position). 3. Make any total or partial sale, transfer, conveyance or assignment of the whole or any part of the Property. C. The prohibition contained in subsection B of this section shall not apply to, and the Agency hereby consents to, the following: 21 3-27 Associations with other entities for the purpose of performing Developer's obligations under this Agreement, provided Developer retains operational and managerial control. 2. Easements or temporary permits to facilitate development of the Property. 3. Leases of building space. 4. Deeds of trust or other financing documents executed for the purpose of securing loans to Developer made to finance the construction and permanent financing of the acquisition and/or development of the Property. 5. An assignment to a related company has no ownership or shareholders other than those who are principal shareholders of the corporation which currently constitutes the Developer. Such an assignment shall be only be effective when approved by the Agency's Executive Director, who shall approve such conveyance upon delivery by Developer of docurrrentation reasonably establishing compliance with the restrictions imposed by the paragraph. D. The prohibition contained in subsection B of this section shall terminate upon the issuance by Agency of a Certificate of Completion for the Property as provided in Section 317 of this Agreement. Section 603. Right of Entry From the time the Property is conveyed to Developer until the issuance of a Certificate of Completion pursuant to Section 317 of this Agreement, the Agency and its representatives shall have a right of access to the Property to inspect the work being performed by Developer on the Property and to perform such work as the Agency may be required to perform on the Property by this Agreement. Such right of entry shall be exercised in a reasonable manner and at reasonable times so as not to disrupt the activities of Developer and its agents on the Property. Section 604. Reserved Section 605. Reserved Section 606. Notices, Demands, and Communications between the Parties Formal notices, demands and communications between the Agency and the Developer shall be sufficiently given if dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of the Agency and the Developer as designated in Sections 106 and 107 hereof. Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time to time designate by mail as provided in this Section 606. 22 3-28 Section 607. Conflicts of Interest No member, official or employee of the Agency shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is, directly or indirectly, interested. Section 608. Warranty Against Pay~rrent of Consideration for Agreement The Developer warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Section 609. Nonliability of A ency Officials and Emplo ees No member, official or employee of the Agency shall be personally liable to the Developer, or any successor-in-interest, in the event of any default or breach by the Agency or for any amount which may become due to Developer or to its successor, or on any obligation under the terms of this Agreement. Section 610. Enforced Delay Extension of Time of Performance The time of performance by either party hereunder shall be extended where delays are due to war; insurrection; strikes; lockouts; labor disputes; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation including, but not limited to, litigation challenging the validity of this transaction or any element thereof (except condemnation); severe weather; inability to secure necessary labor, materials or tools; delays of an_y contractor, subcontractor, or supplies; acts of the other party; acts or failure to act of the City or any other public or governmental agency or entity (other than acts or failure to act of the Agency or the City shall not excuse performance by the Agency); or any other cause beyond the control, or without the fault of the party claiming an extension of time to perform; provided that notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Any such extension shall be for the duration of the cause of the delay. Section 61 1. Inspection of Books and Records ~fhe Agency has the right at all reasonable times to inspect the books and records of the Developer pertaining to the Property as pertinent to the purposes of this Agreement. The Developer 23 3-29 also has the right at all reasonable times to inspect the books and records of the Agency pertaining to the Property as pertinent to the purposes of the Agreement. Section 612. Approvals Approvals required of the Agency or the Developer shall not be unreasonably withheld, and approval or disapproval shall be given within the times set forth in the Schedule of Performance, or, if no time is given, within a reasonable time. Section 613. Real Estate Commissions Neither the Agency nor the Developer shall be liable for any real estate commission, brokerage fees or finder's fees which may arise from this Agreement. The Agency and the Developer each represent that neither has engaged any broker, agent, or finder in connection with this transaction, and shall defend, hold harmless and indemnify the other against any such claims. Section 614. Indemnification Developer and Agency each hereby indemnify and hold the other harmless from and against all damages, judgments, costs, expenses, claims, and fees arising from any negligent act or omission of such indemnifying party hereunder. Section 615. Date of Agreement This Agreement shall be dated as of the date of the resolution of the Agency's governing board by which the Agency approves this Agreement. Section 616. Entiret~of_A~reement A. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreement between the parties with respect to all or any part of the Property. B. None of the terms, covenants, agreements or conditions set forth in this Agreement shall be deemed to be merged with any grant deed conveying title to the Property, and this Agreement shall continue in full force and effect before and after such conveyance. 24 3-30 C. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the Agency and the Developer, and all amendments hereto must be in writing and signed by the appropriate authorities of the Agency and the Developer. IN WITNESS WHEREOF the parties hereto have executed this Agreement the date and year first above written. ATTEST: Patricia E. Healy Secretary APPROVED AS TO FORM: Joseph W. Fletcher Agency General Counsel by Benjamin Kaufman Assistant General Counsel COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA by Cynthia J. Nelson Executive Director THE CHARLES BOWERS MUSEIJM CORPORATION, a California non-profit public benefit corporation By:_ Name: Title: 25 3-31 H ~ w w w w ~ ~ H ~ ~ N 20TH STREET Q 0 Q .- O m 19TH STREET z a 18TH STREET 18TH STREET = m -~ Attachment No. 1 The Property 3-32 ATTACH>V1EN"T NO.2 LEGAL DESCRIPTION PARCEL 1: LOT 1 IN BLOCK "A" OF ORANGE GROVE TRACT, AS PER MAP RECORDED IN BOOK 31, PAGE 27 OF MISCELLANEOUS RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY, CALIFORNIA. EXCEPT THEREFROM THE EAST 4-1/2 FEET, CONVEYED TO THE CITY OF SANTA ANA, FOR WIDENING OF MAIN STREET. PARCEL 2 THAT PORTION OF THE LAND ALLOTTED TO WILLIAM FERGUSON IN DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED IN BOOK "B° OF JUDGMENTS OF THE 17TH JUDICIAL DISTRICT COURT OF CALIFORNIA DESCRIBED AS FOLLOWS: BEGINNING AT A POINT NORTH 1 DEG. EAST 718 FEET FROM A POINT NORTH 89 DEG. 52' WEST 33 FEET FROM THE COMMON CORNER OF SECTIONS 1, 6, 7 AND 12, IN TOWNSHIP 5 SOUTH, RANGES 9 AND 10 WEST, THENCE NORTH 1 DEG. EAST 52 FEET; THENCE NORTH 88 DEG. 47' WEST 158 FEET; THENCE SOUTH 1 DEG. WEST 52 FEET; THENCE SOUTH 88 DEG. 4T EAST 158 FEET TO THE POINT OF BEGINNING. PARCEL 3 THAT PORTION OF THE LAND ALLOTTED TO WILLIAM FERGUSON IN DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED IN BOOK "B" OF JUDGMENTS OF THE 17TH JUDICIAL DISTRICT COURT OF CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT NORTH 1 DEG. EAST 718 FEET AND NORTH 83 DEG. 47' WEST 151 FEET FROM THE COMMON CORNER IN SECTIONS 1, 12, b AND 7, IN TOWNSHIP 5 SOUTH, RANGES 9 AND 10 WEST, THENCE NORTH 88 DEG. 47' VEST 40 FEET; THENCE SOUTH i DEG. WEST 64 FEET; THENCE SOUTH 89 DEG. 52' EAST 40 FEET; AND THENCE NORTH 1 DEG. EAST 64 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. PARCEL 4 LOT 3 IN BLOCK "A" OF THE ORANGE GROVE TRACT, AS SHOWN ON A MAP OF A RE- SUBDIVISION OF THE ORANGE GROVE TRACT, RECORDED IN BOOK 1 PAGE 14 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 5: LOT 1 IN BLOCK "A" OF GEOPPER'S ADDITION TO THE TOWN OF SANTA ANA, AS SHOWN ON A MAP RECORDED IN BOOK 21 PAGE 98 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. PARCEL 5A THAT CERTAIN 12.00 FOOT ALLEY, AS SHOWN ON A MAP OF GOEPPER'S ADDITION TO THE TOWN OF SANTA ANA, RECORDED IN BOOK 21 PAGE 98 OF MISCELLANEOUS RECORDS OF LOS 3-33 Page 1 of 2 ANGELES COUNTY, CALIFORNIA, ADJOINING LOT 1 IN BLOCK "A" OF SAID GOEPPER'S ADDITION TO THE TOWN OF SANTA ANA ON THE EAST, AS SAID ALLEY WAS VACATED AND ABANDONED BY THAT CERTAIN RESOLUTION N0. 63-19 OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, A CERTIFIED COPY OF WHICM WAS RECORDED IN BOOK 6423 PAGE 656 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, BOUNDED NORTHERLY BY THE EASTERLY PROLONGATION OF THE NORTHERLY LINE OF SAID LOT 1 AND SOUTi-iERLY 8Y THE EASTERLY PROLONGATION OF THE SOUTHERLY LINE OF SAID LOT 1. PARCEL 6: LOT 2 IN BLOCK A OF THE RESUBDIVISION OF BLOCKS A & B OF ORANGE GROVE TRACT", AS PER MAP RECORDED IN BOOK 1, PAGE 14 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THE WESTERLY 47 FEET AND 3 INCHES THEREOF PARCEL 7: COMMENCING AT A POINT NORTH 1 DEG. EAST 718 FEET FROM A POINT NORTH 89 DEG. 52' WEST 33 FEET FROM THE COMMON CORNER OF SECTIONS 1, 6, 12 AND 7, TOWNSHIP 5 SOUTH, RANGES 9 AND 10 WEST AND THENCE NORTH 89 DEG. 52' WEST 118 FEET; THENCE SOUTH 1 DEG. WEST 62 FEET TO THE NORTH LINE OF NINETEENTH STREET; THENCE EAST ALONG THE NORTH LINE OF NINETEENTH STREET, 118 FEET TO A POINT IN A LINE DRAWN NORTH 1 DEG. EAST FROM A POINT NORTH 89 DEG. 52' WEST 33 FEET FROM SAID COMMON CORNER OF SECTIONS i, 6, 12 AND 7; THENCE NORTH 1 DEG. EAST 62 FEET TO THE POINT OF BEGINNING. PARCEL 8: THE WESTERLY 47 FEET, 3 INCHES OF LOT 2 IN BLOCK "A" OF THE "ORANGE GROVE TRACT', AS SHOWN ON A MAP RECORDED IN BOOK 31 PAGE 27 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. APN: 002-162-05 (Affects: Parcel 8); 002-162-06 (Affects: Parcel 3); 002-162-07 (Affects: Parcel 4); 002-162-30 (Affects: Parcel 1); 002-162-31 (Affects: Parcel 2); 002-162-32 (Affects: Parcel 6); 002-162 33 (Affects: Parcel 7) and 002-162-34 (Affects: Parcels 5 and 5A) 3-34 Page 2 of 2 ATTACHMENT NO. 3 SCHEDULE OF PERFORMANCE FUNCTION I. Site Conveyance A. Opening of Escrow Agency shall open escrow for conveyance of the Property TIME OF PERFORMANCE At the Agency's option or within 5 days after receipt of written request from Developer, whichever is earlier. B. Deposit of Deed in Escrow Agency shall deposit deed to the Property C. Conveyance of Title Not later than 5 days prior to date for conveyance of the Property. Agency shall convey title to Developer and Developer shall accept conveyance of the Property. Il. Development A. Interim Use 1. Developer shall submit Interim Improvement Plans for the current Parking Lot. Within 90 days after date of Agency execution of this Agreement. Within 60 days of the conveyance of the Property 2. Executive Director of Agency shall approve or disapprove Con- cept Plans for the entire Property. 3. If approved, Developer shall commence construction of the Parking Lot improvements. Within thirty (30) days of submittal. Within sixty (60) days of Executive Director approval 4 3-35 B. Concept Plans for Long-Term Use l . Developer shall submit Concept Plans for the entire Property 2. Executive Director of Agency shall approve or disapprove Con- cept Plans for the entire Property. 3. Developer shall have file full and complete application for the required rezone, conditional use permit, subdivision map approvals, and other entitlements. Not later than submittal of application for development of the long-term use to the City of Santa Ana; or any "early look" review process with the City, whichever comes first. Within thirty (30) days of submittal Within ninety (90) days of Agency's approval of Concept Plan. C. Final Site Plan for Long-Term Use l . Developer shall prepare and submit to Agency the Site Plan and Landscaping Plans for the improvements At the same time such plans are submitted to the City of Santa Ana. 2. Executive Director of Agency shall approve or disapprove the Site Plan Landscaping Plans for the improve- ments constituting the long-term use.. 3. If disapproved, Developer shall submit revised Plans. 4. Executive Director of Agency shall approve or disapprove any revised Plan 5 Within sixty (60) days after Agency receipt. Within 30 days after notice by Agency of any disapproval. Within 30 days after receipt of any revised Plans. 3-36 ATTACHMENT NO. 4 SCOPE OF DEVELOPMENT AND GENERAL CONDITIONS Project Description The expansion of the Bowers Museum, being a place devoted to the acquisition, conservation, study, exhibition, and educational interpretation of objects having scientific, historical, or artistic value, together with such ancillary uses as are normally associated with a museum (long-term use), As the sole interim use, use of the Property as public (and museum) parking. Landscaping All areas of the Property that are not used for buildings, driveways and parking shall be landscaped and maintained. Landscaping may consist of grass lawns, groundcovers, trees, decorative block walls, screenings, terraces, fountains, pools and other water arrangements. A permanent water sprinkler system shall be provided in all landscaped areas to insure proper maintenance. Refuse An enclosed refuse area or areas shall be provided at convenient locations in accordance with the requirements of the City of Santa Ana. Refuse areas shall be designed with building materials compatible with those used for the other structures on the site. Signs Developer shall be entitled to only those signs necessary permitted by City Code. Utilities Developer shall be responsible for all utility relocation or installations on the Property; and hookups to sewers, drains, water and gas distribution lines, electric, telephone and telegraph lines; and for hookup to all other public utility lines. All utility services on-site shall be installed underground or concealed within buildings and no mechanical equipment or meters shall be exposed at ground level as required by the Santa Ana Municipal Code. Pavement The Developer agrees to submit for Agency approval a plan showing areas of special surface treatment. 3-37 Public Improvements The Developer, at its sole cost and expense, including costs of design plans and specifications, shall construct all on- and off-site improvements required for the Property, all in accordance with technical specifications, standards and practices of the City of Santa Ana. Design Objectives The development on the Property shall show a high quality of site planning and architectural design, and a pleasing, safe and well maintained environment. The objective of the design of the development is to be recognizable as a world-class museum space that meets or exceeds the standards, fit and finish of the most recent museum expansion to the north side of the Bowers Museum. The use of reflective building materials is only permitted in accordance with the zoning standards adopted for the Property. Parkin Any new parking area shall be designed and improved in accordance with applicable sections of the Santa Ana Municipal Code; including pavement, striping, landscaping and lighting. Protection against light pollution shall be provided for adjacent residential and other uses. 3-38 ATTACHMENT NO. 5 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Community Redevelopment Agency of the City of Santa Ana 20 Civic Center Plaza, M-25 P.O. Box 1988 Santa Ana, California 92702 FREE RECORDING REQUESTED PER GOVERNMENT CODE SECTIONS 6103 & 27383 (Space Above For Recorder's Use) GRANT DEED The COMMUNITY REDEVELOPMENT AGENCY OF CITY OF SANTA ANA, a public body, corporate and politic ("Grantor"), grants to THE CHARLES BOWERS MUSEUM CORPORATION, a California non-profit public benefit corporation ("Grantee") all that real property situated in the City of Santa Ana, County of Orange, State of California, described in Exhibit A, attached hereto and incorporated herein by this reference (the "Property"). This grant is made subject to the following covenants, conditions and restrictions: 1. Grantee covenants and agrees for itself, its successors, its assigns and every successor in its interest in the Property or any part thereof or any improvements thereon, that Grantee, such successors and such assigns shall devote the property to the following uses: interim use as a parking lot, and expansion of the Bowers Museum, being a place devoted to the acquisition, conservation, study, exhibition, and educational interpretation of objects having scientific, historical, or artistic value, together with such ancillary uses as are normally associated with a museum. 2. Grantee covenants and agrees for itself, its successors, its assigns and every successor in its interest in the Property or any part thereof or any improvements thereon, that solely at the expense of Grantee, its successors and assigns, Grantee, such successors and such assigns shall maintain or cause to be maintained the Property and all improvements thereon (including but not limited to landscaping) in good order, condition and appearance. The Property shall be maintained reasonably free from any debris and waste materials. If, at any time, owner fails to maintain or cause to be maintained the Property as required by this Section 2, and said condition is not corrected after the expiration of a reasonable period of time not to exceed thirty (30) days from the date of written notice from the Grantor, either the Grantor or the City of Santa Ana (the "City") may 8 3-39 perform the necessary landscape or other maintenance and owner or such successors shall pay all costs incurred for such maintenance. 3. Grantee hereby covenants and agrees on behalf of itself and its successors and assigns to the Property or any portion thereof or any interest therein that owner, such successors and assigns shall not discriminate upon the basis of race, color, creed, religion, sex, age, marital status, handicap, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any improvements erected or to be erected thereon, or any part thereof. 4. The covenants established in this Grant Deed shall, without regard to technical classification and designation, be binding on Grantee and any successor in interest to the Property or any part thereof for the benefit and in favor of the Grantor; its successors and assigns, and the City. The covenant against discrimination contained in paragraph 3 of this Grant Deed shall remain in effect in perpetuity. All other covenants contained in this Grant Deed shall remain in effect until July 2, 2026. 5. The provisions of this Grant Deed shall be enforceable by the Grantor in a civil action for injunction or any other available remedy against Grantee or its successors in interest. The covenants and restrictions contained in this Grant Deed shall not benefit or be enforceable by any person other than the Grantor, Grantee and their respective successors and assigns. 6. Neither this Grant Deed nor any breach of this Grant Deed shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value. The rights established in this section are to be interpreted in light of the fact that the Grantor conveyed the Property to the Grantee for development and not for speculation in undeveloped land. The provisions of this section 6 shall survive only until the recordation of a Certificate of Completion as contemplated by Section 317 ofthis Agreement. EXECUTED this day of ATTEST: Patricia E. Healy Secretary 20~, at Santa Ana, California. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA by Cynthia J. Nelson Executive Director 9 3-40 APPROVED AS TO FORM: Joseph W. Fletcher Agency General Counsel by Benjamin Kaufman Assistant General Counsel The Grantee hereby accepts this Grant Deed and the covenants, conditions and restrictions contained herein. THE CHARLES BOWERS MUSEUM CORPORATION, a California non-profit public benefit corporation By:_ Name: Title: [Grant Deed] 10 3-41 Exhibit A To Grant Deed Legal Description PARCEL 1 LOT i TN BLOCK "A" OF ORANGE GROVE TRACT, AS PER MAP RECORDED IN BOOK 31, PAGE Z7 OF MISCELLANEOUS RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY, CALIFORNIA. EXCEPT THEREFROM THE EAST 4-1/2 FEET, CONVEYED TO THE CITY OF SANTA ANA, FOR WIDENING OF MAIN STREET. PARCEL 2 THAT PORTION OF THE LAND ALLOTTED TO WILLIAM FERGUSON IN DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED IN BOOK "B" OF JUDGMENTS OF THE 17TH JUDICIAL DISTRICT COURT OF CALIFORNIA DESCRIBED AS FOLLOWS: BEGINNING AT A POINT NORTH i DEG. EAST 718 FEET FROM A POINT NORTH 89 DEG. 52' WEST 33 FEET FROM THE COMMON CORNER OF SECTIONS 1, 6, 7 AND 12, IN TOWNSHIP 5 SOUTH, RANGES 9 AND 10 WEST, THENCE NORTH 1 DEG. EAST 52 FEET; THENCE NORTH 88 DEG. 4T WEST 15$ FEET; THENCE SOUTN 1 DEG. WEST 52 FEET; THENCE SOUTH 88 DEG. 4T EAST 158 FEET TO THE POINT OF BEGINNING. PARCEL 3: THAT PORTION OF THE LAND ALLOTTED TO WILLIAM FERGUSON IN DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED IN BOOK "8" OF JUDGMENTS OF THE 17TH JUDICIAL DISTRICT COURT OF CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT NORTH 1 DEG. EAST 7i8 FEET AND NORTH 83 DEG. 47' WEST 151 FEET FROM THE COMMON CORNER IN SECTIONS 1, 12, 5 AND 7, IN TOWNSHIP 5 SOUTH, RANGES 9 AND 10 WEST, THENCE NORTH 88 DEG. 47' WEST 40 FEET; THENCE SOUTH 1 DEG. WEST 64 FEET; THENCE SOUTH 89 DEG. 52' EAST 40 FEET; AND THENCE NORTH 1 DEG. EAST 64 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. PARCEL 4: LOT 3 IN BLOCK "A" OF THE ORANGE GROVE TRACT, AS SHOWN ON A MAP OF A RE- SUBDIVISION OF THE ORANGE GROVE TRACT, RECORDED IN BOOK 1 PAGE 14 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 5: LOT 1 IN BLOCK "A" OF GEOPPER'S ADDITION TO THE TOWN OF SANTA ANA, AS SHOWN ON A MAP RECORDED IN BOOK 21 PAGE 98 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. PARCEL 5A: THAT CERTAIN 12.00 FOOT ALLEY, AS SHOWN ON A MAP OF GOEPPER'S ADDITION TO THE TOWN OF SANTA ANA, RECORDED IN BOOK 21 PAGE 98 OF MISCELLANEOUS RECORDS OF LOS 3-42 Page 1 of 2 ANGELES COUNTY, CALIFORNIA, ADJOINING LOT i IN BLOCK "A" OF SAID GOEPPER'S ADDITION TO THE TOWN OF SANTA ANA ON THE EAST, AS SAID ALLEY WAS VACATED AND ABANDONED BY THAT CERTAIN RESOLUTION N0. 63-19 OF THE CITI' COUNCIL OF THE CITY OF SANTA ANA, A CERTIFIED COPY OF WHICH WAS RECORDED IN BOOK 6423 PAGE 656 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, BOUNDED NORTHERLY BY THE EASTERLY PROLONGATION OF THE NORTHERLY LINE OF SAID LOT i AND SOUTHERLY BY THE EASTERLY PROLONGATION OF THE SOUTHERLY LINE OF SAID LOT 1. PARCEL b: LOT 2 IN BLOCK A OF THE RESU8DIVISION OF BLOCKS A & B OF ORANGE GROVE TRACT, AS PER MAP RECORDED IN BOOK 1, PAGE 14 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THE WESTERLY 47 FEET AND 3 INCHES THEREOF. PARCEL 7: COMMENCING AT A POINT NORTH 1 DEG. EAST 718 FEET FROM A POINT NORTH 89 DEG. 52' WEST 33 FEET FROM THE COMMON CORNER OF SECTIONS 1, 6, 12 AND 7, TOWNSHIP 5 SOUTH, RANGES 4 AND 10 WEST AND THENCE NORTH 89 DEG. 52' WEST 118 FEET; THENCE SOUTH i DEG. WEST 62 FEET TO THE NORTH LINE OF NINETEENTH STREET; THENCE EAST ALONG THE NORTH LINE OF NINETEENTH STREET, 118 FEET TO A POINT IN A LINE DRAWN NORTH 1 DEG. EAST FROM A POINT NORTH 89 DEG. 52' VdEST 33 FEET FROM SAID COMMON CORNER OF SECTIONS 1, 6, 12 AND 7; THENCE NORTH 1 DEG. EAST 62 FEET TO THE POINT OF BEGINNING. PARCEL 8 THE WESTERLY 47 FEET, 3 INCHES OF LOT 2 IN BLOCK "A" OF THE "ORANGE GROVE TRACT", AS SHOWN ON A MAP RECORDED IN BOOK 31 PAGE 27 OF MISCELLANECUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. APN: 002-162-05 (Affects: Parcel 8); 002-162-06 (Affects: Parcel 3); 002-162-07 (Affects: Parcel 4}; 002-162-30 (Affects: Parcel 1); 002-162-31 (Affects: Parcel 2; 002-162-32 (Affects: Parcel 6); 002-162-33 (Affects: Parcel 7) and 002-162-34 (Affects: Parcels 5 and 5A) 3-43 Page 2 of 2