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HomeMy WebLinkAbout03 - JOINT PH - AGMT Downtown Inc and Loan AgmtPublic Hearing ~- Amendr~ent of Downtown Management District Plan, Management agreement with Downtown Inc., and loan Agreement lay ~.~, 209 Page ~~~USI~1~ ~n December 1,5~ OO, the city council adopted a resolution establishing the Downtown ,Santa Ana community ~Ianagemer~t Dzstr.ict ~CNlD~ and the levy ~~ an assessment of the property owners within the D~.str~,ct to fund var~.ous act,~vities in the Downtown. The ~~~ plan provided that the initial tai assessment was to be levied in F ~~-~9, and the operating term of the cMD w~ ~a~luary 1 f ~0~ t0 Dece~rlber 1, ~~.~, Downtown Inc. is the newly created non~prof~,t organa~~atio~n that will oversee the expenditure of the assessments collected during the five dear term of the c~lD, The Hoard of Downtown Inc. recently taa an action to defer the assessment levy until FY ~~~--~.~~ with the first install~aent being due in ~ctobea~ ~~ The Hoard felt that the new assessment nay place an undue hardship an the property owners ~.n the cMD due to current challenging economic conditions. This charge in assessment levy necessitates an amendment to the cMD plan approved by the pity council ~Ehibit ~.~ . Further, the operating term of the c~ID must also be modified to now reflect January ~., bolo to December 1, X14. Since the deferral. of the first year' s assessment to the property owners ~.n the 1~D would net y~.eld funds until January X010, each director on the Board has agreed to made a loan to the corporation in artier to begin implementat~.or~ of the cMD activities in calendar year ~~~~. The loans are based on the ar~aunt of the first year' s assessment and wi11. be repaid by the fifth gear. These loans gill generate approximately ~.~~, boo, which w~.11 be used for administrative, aperatzng, corporate start-ups and ~tarl~eting~promational. activities as outlined on Exhibit , The funds will enable Downtown Inc. to hire a new f fu1.1-time Executive Director along with a support staff person as weld. as assuming certain basic services currently provided by the city, The c~,ty ,is the rec~.p~.ert of the annum. property tai assessments therefore it is necessary to eater into a management agreement with Downtown Inc. to oversee the implementation of the fzveTyear program as authorised when the cMD was established. The decision to levy the assessment w.i~.x be determined by the city council on an annual basis and w~.ll be based on a program budget developed by Downtown Inc. 3-2 ~~.~.~ ~~~~.~~ ~- ~mend~nent of downtown ~.na~ement Eistrict Flan, Management A~reemer~t with Dpwntown Inc,, and Loan agreement NIa 18, ~0~ Fade ~ Notice of the ~~b1ic hearing was ~u~lished in the grange ount e~orter on Mai S and Nay 15, ~~~~, ~~rsuant to eotion i~11 of the Santa Ana ~r~i~ipal Code . FI~CAI~ IFA~ E~ands are a~railahle in acoount no. 4~7--~~3--~~~~. for the fit{ s gortion of the .can; the ~genc~ s loan will ~e provided fx~o a~~~t~nt ~~. ~~- AFFR~~IED AS T~ EU~]DS A1~D I~oOT ~n hia ~. el~on Deput~r ~it~r 1~anager for ~e~relop~tent Services ommunit~r De~re~.~~ment ~~~ ,; T ~`ranc~sco utlerre~ Executive l~a.xctor F'.inance and Management serv~,~es Agen~ CJN/NTE/TE/m1r 3-3 THIS P~ LEFT BLIP I~ITEI~TI~l~AI~If 3-4 DOWNTOWN SANTA ANA COMMUNITY MANAGEMENT DISTRICT THE MANAGEMENT DISTRICT PLAN ~'orm~d (lr~a~r ~r~~a~~r ~ ~~ ~~~ n~~ ~r~~ ~~n~c~p~~ ~d P~e~~re~ ~~ ~d~v~ra~ ~~~~~~~ P. ~. ~t~af ~'~ ~~~~ ~~ ca~rd~r~ati~r~ u~rith the Management District Formation Committee Originally Adopted -August 2008 Amended -May 2009 ~~hibit ~ The Da~rt~to~rn Santa Ana ornm~r~ity Management Dis#rict Amended Management Dis~ricf P[an May 2009 Table of Contents Introduction Map of the District ar~~ Parcels Affected ~. Name of District Description of ~aundaries and Benefit ~cnes D. List of improvements and Activities Proposed for ~ac~ dear of ~peratior~ and airnurn hosts E. Total Annual Arr~ount Proposed for Innproverner~tst Maintenance and peratio~s for Each bear of ~peratior~ I+, Proposed o~rces of Financing, lncl~ding Method and Basis of Levying of l~ssessmer~t Time and Manner of collecting Assessr~er~ts ~-l. Proposed Rules and Reguiatier~s to be Applied to the District I, ontir~uatian of Levy Specifically for Maintenance of lrnproements constructed by the District ~. Type and Tenn of District and Shoeing Specific ~luml~er of'~ears ssessrnents I~Ifiil ~e Levied 1, Proposed Tiraeli~e for Ir~ple~ner~tation and en~pletior~ of Management District Plan L. ornm~nity Management District overnar~ce ether Iterns ~ppendi~c ~ -List of Parcels Including Pablicly awned Parcels Apper~di~c ~ - ~ngineer~s Report Z Introducffon Offering ~ variety of services and amenities for visitors, businesses, and residents, Dovuntov~n Santa Ana is a quaint, historic, het bustling area located in the heart of the Santa Ana, the co~[nt seat cf orange ount~. Dontov~n Santa ~~ is hone to a vibrant ~.atino shopping district, the Artists Village, mayor office centers, and financial institutions. Dov~nto~rn is also hone to federal, State, ount, and municipal courts and administrative offices. A ~or~munit N[anagen~ent District ~ID~ funds special services that address specific needs of corrrrnercial centers. These services may include special `clean and Safe" prograrrrs like enhanced maintenance, landscaping, and security; vital ~corrornic Revltali~ation programs intended to prorr~ate customer and in~restor confidence, such as business assistance and attraction, education and information, paring prograrrrs, and the file; and, of course, Iarl~eting and Prarrrotion programs and activities designed to increase awareness and sales. iarl~eting and Promotions pragrams carp include special events, holiday celebrations, ~rusic and arts festivals, conrrprefrensi~re advertising, branding, public outreach, and rrrore. ~ ID also facilitates coordination among various interests such as qty departments, elected ofl:icials~ cornmurrit~ groups and business leaders to accomplish its goals. This strengthens relationships= `[ncreaes cooperation, and integrates the various of€orts to thoughtfully improve the district. IUD gill provide financial and administrative resources to partner with public and private organisations to bring baclt the vitality of this liver shopping district, In ~ ~, a n~erchant~based Business Ir~proverYrent District was establisf~ed in Dovuntorn Santa Ana and continues today. originally managed ~ the Dov~nto~rn Santa Ana Business Association, in recent gears program implerr~entat'ron responsibilitiesbave been divided wrong different geographical acrd rrrar~et sectors. In ~~, after a number years of econorrric struggle to revitalise Downtovun Santa Ana, there developed an interest in establishing a Property and Business Irrrprovement District ~PB[D. Propert~r ornery formed a proponent group and approached tfre City's Camrnurrity Developrrrent Agenc~r for assistance to engage a PBID advisor. The it of Santa Ana approved hiring a consultant to v~orl~ with Donton staleho[ders in establishing a near district. Property ovtirners, in partnership v~rith local merchants rid the City, worl~ed together to launch a new effort to create a district. A Formation Cornrrrittee eras established to direct and advise on the creation of this l~lanagerrrent Plan, In June og~, the CID Forrrration Committee requested that the City of Santa Ana amend the l~llunicipal Code to enable the establishment of Cornrnunit ~lianagerrrent Ditr"rots. The pity Council began the an~endrnent process in July ~oo~. The fcrmatien of the Donto~rn Santa Ana omrrlurrity Iarragernent District r~rill serve to enhance the commercial district thereby Increasing cornrerce and prosperity, B. Name of District The name of the ne~u District shall be The ~o~rnton Santa Ana o~nmunfty Mar~ager~ent district. C. Description of Boundaries and Be~efi# Zones The ~o~rnton Santa Ana community Management Distrfct includes ~ totaf of 2 parcels represented ~~ ~ ~ individuaf propert~r o~rners. U11ith some minor ecfusions resulting frvrn essential houndar~r ad~ustn~ents, the ~istri~t generally includes all parcels l~etv~een Walnut Street on the souti~r i~ic tenter drive on the north, Mortimer Street on tl~e east ar~d Flo~rer Street on the west. Ti~is area represents the core of the greater ~ornton and is unique in its combination of retail, entertinrr~ent, government, ar~d professior~alloffice uses a well as its diversity of marlet sectors: The entire District comprises a single benefit gone. Alf parcels ~rithin the ahove- mentioned boundaries shall ~e assessed to fund special benefit services as outlined in this plan, excluding or~~y those properties or~ed, occupied b~ and operated as ~ federal, State, bounty and municipal government. services vuill be pro~rided only to those properties paring into the aesn~er~t fund; no services shat[ he provided outside the Distr`fct boundaries. The ~ovuntavvn Santa Ana omrnunit Mar~agen~ent District encompasses most properties Within tl~e following general description boundaries: Flo~rer Street on the vuest - First Street frorr~ Flower Street to Birch Street and Valnut Street from Broadvua~ to grange Street on the south Maple street from 1I1~alnut Street to First Strut, the easterly propert~r line of the cornrnerciaC center l~norn as aov~nto~vn Fla~a, and Mortimer Street from Thin Street to Santa Ana Boule~rard on the east Santa Ana Boulevard from Mortimer Street to bush Street and civic tenter Drive from Bush Street to fy louver Street on the north The above description i general and does not account for minor exclusions and inclusians. )lore precisely, the boundaries are described as fallaws; Beginning at point where the westerly ri~i~tyof v~ra line of Flevuer tret in#ersects w[th the northerly right-off way line of uric eater Drl~re, theme southerly along the westerly right~af"way line of Flower street to ~ point where it intersects with the southerly right~f-via line of first tr~et, th~r~~e e~~ter[ a[or~g southerly right-of-a line of Fiat street to point u~l~er~ it inter~e~t with center line on the alley k~isecting Block ~~, thence southerly along the centerline of said alley to a point wi~ere it intersec# with the southerly right-e~ ~u~ ling ~f 11alnut Street, thence easterly along the sautherly right-at way line of ~11~alnut street to a paint where It intersects with the westerly right-at way line of grange Sfrcet, thence r~ar~herly along the westerly rightof-vu~ line of range street t~ a paint in alinent with an e~ctension a# the southerly property line of Parcel iUumher g~-~~7-g~, theme easterly along said line, continuing along the southerly property line of Parcel [umber g8R~~7~g~ tv a point where it intersects with the easterly right-of-~ra~ line of the ~Iler ire Ioelt ~~7, theme northerly along the easterly right-of-~r~}r iir~e of aid ~Ile~r to ~ point ~rhere it intersects with the southerly right-of way line of First street, thence easterly along the saatherly right-~of~~ra lire of First street t~ a paint in alignrr~ent Frith are extension of the easterly property 1'[ne of Parcel f~rr~ber g~-g8-~ g, thence northerly along said line across First Street and continuing norkherly along the easterly property line of B[oclc ~~ to a paint intersecting with the sa~therly right- of may [it~e of Third Street, thence westerly along tl~e southerly right-off way line of Thin Street to ~ point where it intersects with the easterly right-af way Line of French Street, thence northerly along said easterly right~of way line of French Street tc a point where [t intersects with the southerly property line of Parcel I~rnher g8-~g7'~g, thence easterly aicng said so~therC~ property line of Parcel lVurnher X98-SgT~g to a point where it meets the easterly property line of said parcel, thence northerCy along said easterly property line of Parcel IVamber g~~ g~-g~ to a point where it intersects with the southerly right o~ w~y~ Line of Fourth Street, thence easterly along the southerly right-of-~va}~ line of Fo~rti~ street to a pczr~t where it intersects with a point in allgnn~ent with an e~ctensian of the easterly right-af ~v Ilne of I~liartirner treetf thence northori}~ aior~g said line across Fourth Street along and contCn~ing northerl~r along the easterly right-af- way Cine of ll~ortimer Street to a point where it intersects with the northerly rlght- of-line of ar~ta Aria oiovard, thence u~esterl along the narti~eri right-off line of Santa Ana Boule~rard to a paint vuhere it intersects with the easterly rlght~af line of Bush Street, thence northerly along the easterly rigl~tvf4way line of Bush Street to a po'[nt where it intersects with the northerly rightRof~line of eighth Street, thence westerly along the northerly right-a~ v~ra line of ~la~hth street to a point where it intersects with the westerly right-c~ line of lain Street, thence southerly along the westerly right-of»vua}~ line of Fain Street to a point ~rhere it intersects with the r~ortheriy property line of Parcel iun~her g~44~g=thence westerly along said nort[~erly property line of Parcel I~lun~ber g8µ44~g ar~d Parcel E~lumber g~-X44-g~ rid extending across Sycamore Street and cantinuir~g westerly to a point where it intersects with the northerl~r right~of~way S line of civic tenter give, thence along the northerly right~of~v~ra line of civic tenter give westerly to the point of beginning, D. List of lmpro~ements and Activities Proposed for Each Year of Operation and Maximum Costs A description ~f lmproven~ents is ~ fello~rs; ~. Il~aintenance and Landscaping Services laintenar~ce n~a}~ include side~rallt seeping and pressure uvashing, Burn removal, graffi#i abaterr~ent, trash andlor bully item removal; the v~ratering, Breeding and pruning of all trees and plantings alleylr~edianlparl~a}~ maintenances litter and debris picl~~up; trash receptacle collectienldisposal and maintenancelreplacementF and oti~er rr~aintenance and landscaping issues that may arise, each rr~aintenance service v~il1 assist in beautifying the ~c~rnton district and enl~ar~cing the image of the con~n~ercial core. This activity is designed to increase customer comfort v~ithin the greater ~c~rnto~rn v~hich rili, in turn, increase cor~rnerce end help to attract and retain near businesses and patrons v~rithin the district. These maintenance services gill ~e provided only Within the district; therefore, these services constitute "special benefits" to tine assessed parcels. . ~larl~eting and Promotions This activity is intended to enhance the image of ~o~rntorn Santa Ana through sophisticated rnar~eting, advertising and branding of the ~o~rntovun. it v~ill heighten the e~cciterr~ent and pleasure of the customer and visitor experience b gray of holiday celebratians, special events, festivals, prorr~etions and sales, art shows, live music, and slrnIlar custat~er attractions This activity also includes these types cf supplemental activities such as nevrsletters, visitor guides, graphics arts materials, business improvement ~rorkshops, and the lilte, . Do~rntorn 1~r~hassador Program l~niforr~ed customer assistance Ambassadors gill provide a variety of business and customer support services by assisting patrcr~s and employees, supporting APB crime prevention efforts to reduce the incidence of crime and nuisance activities, and productively addressing the challenges associated Frith street populations. deployment of Do~rnto~vn ~rnhassador can include highl}~ visible foot, bic~rcle or eg~ray patrols that v~ill provide service during critical, highyimpact periods, The initial deployrr~ent will be v~hen their services are rr~ost needed. Attu! days and ties are still to be determined, but Ambassador assignrr~ents carp change as necessary. Tl~e Downtown Ambassador grogram gill assist in creating ~ safe and secure environment throughout the Dou~rntown area and, hence, will enhance the ecanomic revitaCization. This activity is designed to increase vehicular and pedestrian traffic vuithin the District ~rhicl~ vrlll increase comrr~erce and help to attract neu~r and retain existing businesses and patrons. Tf~is Ambassador Progrann vuiii be provided onCy within the D boundaries; therefore these services constitute 'special benefits" to the assessed parcels. ~. Physical enhancement Amenities The Physical Enhancement category consists of capital improvements that nay include tree~landscape planting additional street furniture, fixtures and equipr~ent, and other streetscape ar~enitles tine Board deems appropriate, These amenities include light pole and skyline banners, adver~isir~g and information l~iosCts, decorations, directories, and special lighting. These improvements will 1~eautify and enhance the image of Downtown Santa Ana and tl~ereb}~ increase pedestrian and vehiculartraffic tc the Distric#, This ao#ivit is ~esi~ne~ to enhance fhe shopping e~cperience within the District boundaries, Because the ~Clyioal Enl~ancet~ent program will be provided only within the District, these irnprovernents w[Il constitute `special benefits" to the assessed parcels. ~. Administration and operations lnciuded in the Adr~inistration component are the costs for an Executive Director, Marketing ~rornotions coordinator, office support staff, office expenses, legal fees, accour~tingfbooklceeping fees, and Directors officers and general Liability insurance. This component is vital to fhe proper expenditure of assessment funds and the administration of programs and activities which are inter~deal to prorncte business within the ~ boundaries through increased cor~rnerce and the attraction and retention of new business. Because this operating cost#adr~inistration program e~cist only for the purposes of tl~e District and will be provided only for neat#ers occurring v~rithin the l~D boundaries, this prograrr~ constitutes a "special benefit" to the assessed parcels. iVOTE: exiting pity services will be sapp~emented, not su~pp~anted or dupl~cated~ b ll~a~agomenf Disfrict ser~rices~ 7 Each ~# these prorar~ and activities word together to create a more ~leasil~~ environrr~ertt within the district that is co~d~kci~re to strengthening the econorn[c vitality of this cor~n~ercial center thra~gh the attraction and retention of new business and increased commerce. The prcgrarns~ im~rave~nent~ and services are desired to a~ecificall benefit ~rc~erties within the ID I~cundarles, The ~ropoSed I~ assessments will ~e levied onl~r on ~ro~erties within the ~ l~o~ndaries. ssessr~er~t revenues will be sent tc deliver services that ~ro~ide a direc# rr~d special benefit to assessed ~arceis and #o ~rn~rove the economic vitaiit of these properties. ~R~JE~~`E~ FkVE-YEAR Bl~~GEl'SlR~oC~AM ~~5~`S ILL~4i~~~ Soave Year 1 ~'e~r ~ Year ~ Year 4 Year ~ ~~~ ASSe~smeaks ~,~~0.~4 ~9,,~0 1,~1~,34~.0~ $1,~6~,0~5,~} ~,~~5,~~5.75 AI I ~kher ~4,0~0. $~~,~~ ~~ 3~,0~54~ ~~~,7~8.7~ ~3~,~, ~ ~ ~~~~,~~~~~~ 9~~',~0~,~~ $~,~4T,3T~~44 ~,~~~,743.~5 ~,~~~,7~~,9~ ~Xp~l~~lYli'~ Programs ~ Actirrikies Year ~ 1fe~r 2 Year ~ Yeer 4 Year 5~ Mink & ~ar~dsea~in~ ~~D,~~~,~Q $23~,1~~,7'S ~~,~98,~3 ~4,83~,T~ $1,515,4 i~lsrice~ng & Promokions 31,99~,~1 $3~ i,9.~0 ~ ~,~21,~7 431,1~~.54 ~~~,31~ .~fi Am~ass~lerPrograr~ ~5~,~~.~0 ~~~,5~9,5~ ~~~,~8~,47 21~,~g~,84 ~~,~~~,8 Physical enhancement ~4~,8~~,[l~ ~1,~,~~ $53,8~~.~~ ~58,~21, X9,341. Amin & ~~erakions ~i~4,~~~.~ ~~3D,83,~0 ~37,43~~~~ ~1~4,3~09.53 ~5~,5~5,a0 TOTAL $9~~,g~~,~~ ~9~],50b.~~ ~,~4~,31~.~g ~,~~g,743~T~ ~,~54,7~~.g4 Ali ~ro~ect and aotivitie are designed to er~hartoe #~ assets and ir~ae of Daw~towo Santa Ar~a~ and thereh increase co~meroe and promote hu~iness within the boundaries of the . The anr~ua~ ~~d~et for the first dear is estimated to he ~~~,~~~. ~f that aeunt, ~~~,~~~ is to be ~er~erated through s~eoial assessments. The nonprofit lUlartagen~er~t ~istriot orboration small have the right to reallocate up to ~ per~er~t ~~ the total budget within the budget eategorie. Accrued interest or de[in~uent payments rna}r he e~cpen~led in an}~ budget oateg~r. And frauds remaining after the fifth dear ~~ operation will he rolled over into the renewal budget or returned to tl~eholders. Also, if the funds are a~ail~ble in the fourth or ffth dear of operations, oasts for renewal mad be e~ended.~ if the District is riot renewed or terminated for any reason, unexpended funds gill he returned to the property owners, 9 E. Total Annua! Amount Proposed for Impro~emenfis, Maintenance and Operations for Each Year of Operation BUDGET SUMMARY -- Revenue & Expense REVENUE -FIRST YEAR Afl ~tl~er ~,~~~ TOTAL REVENUE $950,000 ~~C~Eh#D1Tl~I~ -- Fr~T YEAS lUlair~tennce Lan~ea~in~ Services ~, ~ ~ 2.~°~ lUlarl~etirrg & Pr~motier~s ~,~~ .~°l~ ~Ir~~a~a~~r Pr~grarn 1 ~,~ ~ .~10 ~l~sieal Er~har~eer~ertt rner~ities ~8,~~ ~. ~ °o ~rr~ir~itrati~n ~peratiens ~ ~,~~~ ~ 3.~ °o T~T~L EPEI~~IT~E ~~,~~~ ~ ~~,~~~ FIRST L~A~ ~E~TI~l1l ~ ~~l UI~IA~ ,llalntenar~~e _Landsca~e ervi~es gene ~ contract service revilers fail litter ~e~ris pi~l~~~p, alall trash Y ~ ~ colfeoti~r~, dai[ receptacle ele~ning rr~ainter~ance, urr~ rer~oval, graffiti al~ater~ent, ideurail~ ~vashin~ FFB~E rnainter~ance re~air~ larlseti~ ~rer~otions p~cial e~rentr holi~a~r cele~ratiat~r social events dart vials, concer~sJ: rr~erchar~t ~rv~etior~s, co~ep and ~i~~]~~ack opport~r~ities, print r~~teril and graphics, a~~rertising ~~istrict-vtiride end tarete~~, nev~sletter, ~~sir~cs enhancer~ent ~b~ir~ess attraction anal retentierr~ An~~assadcr ~regr~~n contract ervic ~l~looa~io~ a1~ew~ fir a~~e~ ecurr'~y ~~appre~c~r~a~el ~ ~0 oars per week ~eploed ~~ ~~1D's of{c~~~~~r~.~ P~~~ca1 ~rrf~ar~cer~er~~ ~~~~res >~l~B~E, ~ar~ners, lCiesl~sr igr~age, ~e~oratier~s, directories, ligl~tin~ ~4~r~inr~ra~ie~ ~pra~ierr~ t~ Personnel, direst administrative cysts D~ri~~ the term cf the cr~~r~it lanaemer~t ~istrictf the anr~~al budget and corresponding as~essent n~a~ ~~ adjusted tc ref[ect an anr~~tal cost cf operations increase of fire percent This is the mai~arr~ alle~rable increase based upon this Management district Plan uti[i~ing the approved assessl~ent rnethodolo. This increase rah be unposed at the discretion of the ~~r[~ers association. The D~vner ~ssociaticn shail made ~ notification to the it annual[ as to ~rhether arty ad~utrnents to the current years assess~er~t rates will be made. Addit[onally, any annual budget surplus or de#icit will be incorporated into the su~sequer~t year's CMD budget, and subsequent annual assessments wilt be set to account for s~rpfuses or deficits carried forward. ~R~~~~TEa FlVE~1~~A~ ~UDET~lPRD~RAh9 C~~S ~~V~iVUE S~~r~ Year 1 #~ Increase Year 2 ~ lnease Y~~r 3 ~l° Incr~a~e Year ~ I~~rea~e Year 5 cMD Ass~ssmen~ ~~~~,~oo,~o ~,~~ ~,~a.~ ~,~a4~~ 1,~14,3~~,~0 ~,°~~ ~T,~5~,415. ~,~~~ ~,~ ~ ~,~~~.~~ AlIO~~er ~,~0~.00 ~,~D~lo ~1,~(~.~0 ~,~0°~a ~,~~.~4 ~,(~0°1~ 34,7~~.~v ~,~°~o ~~,4~~,19 ~~4P~NDITl1R~S r ~ragra~ns &~c~vi~ es Years °1a Increase Year2 °~a lnetease Years ~~ in~reese Year 0 Increase Years 1YI~~n~ ~[ landscaping }~~L~? I ~~~ ~~llUpJ4 y~~J~,~~~ ~f ~ ~.~~4~0 d~L~~~~~~~ ~~~~a~ ~~~~~.}r}.f ~ ~~W~14 4~~E~~~~~~ ~ar~ce~in~ ~7~,g},0~ ~,~~°la g1,~9,~ 5.~~°~ ~11,~~1.~7 5,~~°~ ~~i,78~.5~ ~,f?~~~ 45,~7~,~fi p~mo~lens Arnbassadorprogram 18~,~5~,0~ 5,~~°la $1~~,~59,~~ 5,4g°1o ~~2,1~T.47 ~.~~~~ ~1,~~~.84 ~.~a ~~,91~,~8 P yslca ~~$,$~5,~~ x,00°1~ 51,~~5.~5 ~,~~°~~ ~~,~~~, ~.~~°l~ ~,~1 ~~~ ~,~°lo ~9,34~.0~ ~n~ancemen~ Admin & ~ra~ians 1 ~~,B~I~.~O ~.~~~~a ~13~,$~~.00 ~,~4~1~ 1 ~~,~3T,G5 5.00~1~ $1 ~~4,3~~.~ ~,I~~ ~1 ~~,~~~.~ TOTAL ~~~,4~~.~0 ~~57,~~~.~~ ~~,fl~~,~7~.~~ 9,0~9r~'~~,~~ 1,~5~,7~4,g4 F. Proposed Sources of Financing, Including Me#hod and Basis of Levying of Assessment The downtown Santa Ana orr~rnunit l~lar~ager~ent District anticipates two eneral sources of revenge --special assessment revenue which is the principal frorr~ source of funding ~~ percer~t~, and program ~noon~e which includes funding sources such as sponsorships, sales of goods and services, dues, interest incorr~e ar~d tl~e lime. The Downtown Santa Ana on~manit Janagement district is ~ benefit asessment-tpe district whereby special service and district ro rarr~ costs are apporkioned among benefitting properties based on the ~~ s ecial benefit each property is e~cpected to derive fror~ those services and ro rams. This method of financing such special services and programs is based ~~ ~ ors the lev of assessments on real property that benefit from proposed irnprover~ents and activities. The method and basis of spreading program costs vary from one district to another based on local geographic conditions, types of programs and activities to he undertaken and sire and development cor~pleit. Further, general benefits f rya not be incor crated into the assessment formula and levied on the iD Y ~ ro ertiesr onl special benefits and oast nay be considered. ssessrent ~~ forrr~ulae t ica[[ relate to the ph~rsicaf factors of a parse[ such as street ]gyp fronts a lot size, building si~e~ location. The formula nay base assessments on ga a single factor or a combination of factors. based on the ro ram activities to be fended, v~hich relate substar~tia[I to the pg . edestrian~orier~td si~lewall~ areas~public vualltv~a}~s, parse[ size and ph}rs~cal p . im roven~ents it i determined that the assessments be based jn part an f our F propert~related elements: The amount of adjacent stree#~sidewall~ frontage linear feet} The parcel size total land area ~ The building area A flat parcel fee These variables ~rere developed b the consulting engineer and presented to a focus rou that vas conducted far purposes of gathering a consensus of g p affected ro ert owners. The focus group Included ley stal~eholders in the p p Downtown, The variables and forn~u[ae were verified as equitable ~y an ~ngineer~s Deport. The assessment formula utilised in the Downtown Santa Ana ornr~unity Il~ana ernent district is comprised of these four ~rariables, each with a relative ~ . wei kiting aler~ved from prograrr~ benefit, The ~rar~ab[es are; g t S#reetlSidewa[k Frontage Parcel Size (Land Area} Building Area Flat Parcel Fee 3a~~o or ~276,oaa ~a~~o or $276,aaa 30% ar $276,000 1 ~% ar 92 000 ~ DO°~a ~92d,OQ0 1ithin the II~D there are 8 parcels Frith rou~hl ~,~~~ linear feet of stree# franta e, 4 million square feet of land and ,~ million square feet of building area. F ~ ~ ~ ~ ^ list of all arcels rn tl~e ~ is sha~rn in ~ppend~~ . ~s~ng tie currtulat~~re ro ert Rrelated data totals from above, the base bear ~ assessment ratan are sef at er linear foot of street frantaa~e, ~ ~ cuts per square foot of land area, p . . and ~ cents per square foot of building area abased on gross eter~or bu~ld~ng dimensior~s~. Abe parcel fee shall be ~ per parcel, aue to identified diminished benefi#s and a number of formula adjustment factors for certain lanai uses, parcel configurations and other circumstances are also incorporated into the proposed ~ ferrr~ula s follo~rs: ~ . residential uses from one to four units are set at a f lat rate of 1 ~~ per unit includes residential condos. . residential uses of fire or mere units are set at ~~ percent of repecti~re base assessment rates apartments. . IVon rofit- ~~~1 c~ o~rned~accupied properties are set t ~ percent of p respective base assessment rates. ~. Building areas are capped at a flaor area ratio ~~~~ of~.~, b. government-ou~rned~occupied properties gill not be assessed and v~ill receive no direct ser~rices, ~. residential uses, regardless of the number of units, that are ~ ~~ percent ro'ect-based rental assistance programs; for e~tar~ple, senior housing and pl the line, ~r~l[ nat be assessed and ~r~ll receive no direct services, 7. lied-use propertieslcornplees v~ill generail~ be assessed based on prorated landyue ratios, using the follo~ring guidelines: omrr~ercial~~ffice tondos --~ Flo Residential Uses multi le corners a, Building area fee at full building area fee rate structured parl~ing area excluded}~ b, .and area fee at fuCl land area fee rate but prorated for each unit based on ratio of unit building area to fetal building area. I3 c. Frr~tage fee at fu[1 frontage rata but prarated for each unit based an ratio of unit building area to total ~uildir~g area. I~Ilied-~~ Rental: ground-Float omeroial and lJ~~er->''.Coar Residential sin le owner ~. ~u[lding area fee at full rate for oorrneroial area aid ~o percent camn~ercial rate for residential area structured ~arl~ing area e~cluded~. b. Lard area fee at full land area fee rate. c, Frontage fea at f ull frontage rate. Iied-~Je Hondas; _raund-Floor omrnercial and ~pp~r->~loar Ro~~der~tia~ r~ult[ Ie o~ur~ers a. building area fee atfull rate tar car~r~ercial pad areas and ~~ per year per residential condo unit structured parking area eoluded. b. Land area fee et full land area fee rate for commercial pad faotprir~t. c. Frar~tae fee at full frontage rate for commercial units {ground floor direct fror~tage~. d. Live~~ror~C condo units gill be assessed using combination of a, b, and c abo~re. ~Al~ ~E A~1E~T.._AL.tlLAT~~[ ,,~ _ - _ . parceC's first annual assessment Is calculated as fvllo~vs. Any applicable adjustment factors are applied after the calculatiar~ of the parcel's assessment at the full rate. ANNUAL AEI~EI~T ~ Street Frontage Fee ~ Land Area Pee ~ building Area fee ~ Parcel Fee Street Frontage Fee is caiculated b multiplying the linear feet of street frontage of a parcel b the Street Frontage Rate ~ per linear faot~. Land Area Fee is calculated b r~u[tiplying the square footage of the parcel by the Land Area Rate ~~ ~ ants per square foot tuilding Area Fee is calculated by multiplying the square footage of a structure, as derived from its grass eteriar dirr~enslons, by the ~uilding Area Rate ~~ ~ Dents per square foat~, t4 1=tat farce[ i=ee -each individual Assessor's Parcel is assessed the F[at Parcel Rate ~4~~. Street Frontage Rate Land Area Rafe BuiEdir~g Area Rafe Flat Parcel Rate $6.Od er linear foot ~ 0¢ er s oars foot 9 5 er s oars foot X425 er parcel during the terra of the ~, the annual budget and corresponding assessments ray ~ adjusted to reflect an annual cast of operations increase of #ive percent. since the ~ is planned for a tive~}~ear term, rriair-r~un~ assessments for future years dears -~ rr~ust ~ sot at the inception of the I~I~. 111lhile future inflationary ~~ other pragrarrt cost increases are unl~rlov~n at this point, a built-~in rr~a~cirr~urn increase of fire percent per year i incorporated inte the projected program cost and, in turn, the resulting assessment rates for the five-year life of the IBID. These figures are he~rn in the table belo~r, Assessment rates may act exceed these indicated belouv. ~ive~Yea~ I~axyr~n~ Assessment }at~s Includes a ~ percent cap on annual increases} Rate Year ~rt~ Year Teo Year Three Year Faur Year Five street Frontage Fee ~ ~~.30 ~.~~ ~,~~ 7.~ Land Area Fee ~o¢ ~~. 1 ~~ ~ ~.~ ~.~¢ Buildi~~ area Fee ~5 ~~.~~ ~~.~ ~1.~ ~~.~ Flat Parcel Fee 4~~ 44~ 4~ ~~~ ~~~ Any annual budget surplus or deficit gill be incorporated into the subsequent year's ~~ budge#a and subsequent annual assessments will be setto account ter surpluses or deficits carried for~rard. G. Time and Manner of Collecting Assessments pursuant to analogous lay pertaining to Propert}~ and business lrnpravernent districts, the Santa Ana Donto~rn ornrnunity Management district assessment vuill be collected b the bounty of grange in the same manner as annual property taxes are callected, and will appear as a separate line item on the annum property tax bills prepared and issued b the bounty. Property tax bills are generally distributed to property o~rners in the fall, and pa}~ment is expected b lurr~p sung or'rn tv~o installments. The bounty of grange sha11 distribute the assessments to the it}~ v~hich gill, in turn, forward the assessments to the 15 Managing association pursuant to the a~thori~ation of this plan. biting laws for enforerrxent of property takes apply to the ~istri~#'s asssm~nts. The asesr~er~ts shall be collected at the sane time and in the same manner as ter and ~~ ~r~~ore property ta~c paid to the ount~ of grange. These assessments shall prav'rde ter the same lien priority and penalties for delinquent payment as is provided for the act ~~Iorerrx property tai. if necessary, the Santa Ana pity lerl~'s office will direc#[ bill property owners or entities that do net appear an the direct billing cf the property tai tell provided by the bounty. The ``property evuner" of the a~ valorem interest shall be any person listed as the onerlta~payer on the last ec~uali~ed ad valorem interest assessrr~ent tell or o#herwise Known to be the o~rr~erlta~cpayer ~ the pity. H. Proposed Rules and Regulations to be Applied to the D~stricf There are na specific rules or regulations applied to this District. 1. Continuation of Levy Specifically for Maintenance of Improvements Constructed by the District In accordance with section ~ -~ ~ ~i~ of Article ~4, chapter ~ , Santa Ana flllur~icipal bode, it shall be a re~uirerr~ent of the Downtown Santa Ana amrn~nity i~lar~agernent District that assessments specifically des~gnatcd for the maintenance and upl~eep of improvements constructed ~~ the District using assessment revenue, if any, shall continue to be levied on each parcel of land v~ithin the ID for a period of time equal to the useful life of the irnproverner~tr as deterrr~ined b the pity ~ngincer, regardless of whether the District is disestablished or the terra of the original levy has expired. J. Type and Term of District and Showing Specific Number of Years Assessments Wit[ Be Levied The proposed Downtown Santa Ana ornrnunit~r [I~anagernent District is a new district. The ID will have an initial operating term of fire gears. Due to the time ar~d manner of levying and cal[ecting assessments as described ire section assessment revenue is generally riot available for direct operations until the following January. The iD gill commence with the first year of levying of assessments in August of ~~og, ar~d the first year of programs and activities beginning in January of ~D~o, as assessment f~rnd become available. The final assessment shall be levied by August of D~ with the fifth }year of programs and activities commencing in .~anuary of ~~ ~, as assessment finds became available. Prograrr~ operations are expected to be complete by December ~, o~~. Any continuation of the N[D after the initialfive-year period will require t corr~pliance with the reguiations in piece at that time relative to estabiisbment ~~ ~ on~runity i~lanagen~ent District. ~n assessrnentfor the maintenance of improvements constructed ~}~ the CilliD, i~ and, may extend be~ror~d the original ~iveR}~ear term as described 'in section i of the Management District Plan. K. Proposed Time for lmplementafion and Completion of Management District Plan Cori let~d Tasl~ to ~~ p Estimated Bate of ~plat~on ornple#ion and ap~ror~al of l1llana~er~ent Dlstri~t Plan. A~~ust ~~~~ Send com~l~te ~Ilanagemer~t ~lstrict Plan to Assess~ent Engineer. 1~u~~st ~~~~ or~~late peti~i~n drive ref iecting support of ~ro~~rty owners in tho ~~ ~rst - September ~ ro ~~~~ district who gill pay more than ~~ peroent of tie assessrner~t l~ ~ ~~~8 ~~ ~~~~ to bo levied. ubr~it r~orn~leted petitions to pity Cl~rl~. September ~~~$ ~esol~tl~~ of lntentl0il Setting ~ publlo hear'ing ~~ld p~'dering the ~ctaber ~~~$ dEStrib~tion of ballots adopted by pity o~ncil. Ballots returned to City lerl~. December ~ F ~~~5 Publlo l~learinglcour~ting of returned ballots, consideration of ordinance ~ecer~bor ~, ~~~8 by Santa Ana City Council establishing the district. L. Community Management District Governance downtown, lnoorporated wiCi be the agency responsibie for the ongoing da~r-to- day t~anager~ent and administration of the Downtown Santa Ina ommunit lanagernent Distract ~~, owntovun, Incorporated is an existing nonprofit corporation ~orr~ed ~~ business and property owners located in Dov~ntown Santa Ana. Downtown, Incorporated mad choose to contract with third-pad entities to carry out the District programs and activities. ~'he annual prograrns~ budgets, and asserner~ts for the Dowr~towr~ Santa Ana Cornrnunit~r management District steal[ be determined b Downtown, Incorporated, which shall also serve as the Con~~nunity l~Ianagen~ent District "owners association"described in Article Chapter ~ of the Santa ~1na >Iunicipal bode. Such programs, budgets, and assessments n~t~t be consistent with this management Plan. Downtown, incorporated shall be responsibie for the general oversight of the District including apprevai of the annual worl~ programs end budgets, monitoring performance, and ensuring corr~pllance with appropriate vies and regulations, incl~rding a Domrr~~inity management District n~ar~agement t7 a~reerrient pith the it of Santa 1~na. span arnmu~ity Mar~a~er~ent District a~aptia~llreneal, the pity of Santa Ana and ~antav~~, Inaer~arated v~ill eea~te a aantract fer the ~ertarr~ar~ae ~~~ delivery of the sti~u[ated ~ra~rrrz services over the life of the District. The aar~ of Directors of Dav~rrltant Inaorparated shall meet ~enerall an a r~anthl~ basis. Then related to amr~unit iana~emer~t District matters, such r~eetirl~ shall ~e s~hjeat to the state of alifarnia "Dro~rn Aot" a~en rrteeting requirerr~ent. ~eaor~s of this carparatiar~ ~ertainin to omrn~anit Nlana~ement District-related ratters shall he available far ~~thlia review as sti~~lated by State Cap. ~ursua~t to the f ~ur~icipal fade, the Dav~ntavun, Incar~orated Beard of Directors sh~[II file, far a~pro~ral b~ the it}~ aur~ail, an annual repart far the upcoming dear far~rhiah assessments shall he levied. Donto~vn, Incarparated v~ill ernplo a rr~ana~ernent ~rafesianal a executive Diretorl~ v~hose duties shall ir~alude the im~lernentatian of the pra~rar~s ar~d activities of the iD as v~ell a the manaarnent of the da}~~to~da}~ affairs of tf~e NiQ and Dov~rntav~n, Incorparated. ~dditianal staff n~a be err~~lo~e~ as needed anal as pravided far ire the budget. M. Other Items lea bands ~ri[I be issued far and iD ~raJects. I~:liwl~w B!D Farm~tion~Bla ~anst~lta~tl~ana~em~r~t aistcict Far~matiorr ~ommi#tWIA~lA~FI~F~l7 aIS7~[~T FIAI~ Arn~nded 5,~9.~~~x ~$ r~oWnTODUn INCORPORATED Proposed 2009 Budget DOWNTOWN SANTA ANA COMMUNITY MANAGEMENT DISTRICT Board o~ ~~r~~~or' ~~r~c~ L~~n ~ ~, ~ T~T~~ #~~11~[!L ~IU~~~L~~~~I~T~T~~ ~~E~~-r~.. i~l~~I~~~T~~ Personnel Services $82,OD0 u~lies ,D~o ~~her ervioe and hargos ~,~DO ~urrriture, ~~~uro ~q~i~rrrent ~~~~ ~arf ~~~ .0,~~~ T~T~L EN~~A~.IA~I~N ~P~~ITIN ~~~~~ ~R~~A~1 ~P~N~1T~J~~ [ar~e~in~ ~ror~~tions ~ ~~ T~T~L ~ ~~ ~AIV~ EP~N~ T~TJ~L ~P~N~IT~]R~ $986,320 $147,ooa 39 32D 186 320 Exhibit 2 'fills A~~1~1~~ ~~ entered into this dad of- ~ X09 among the it ~#` Santa Aria, ~ eharte~~ city dui. organised and existing x~nder the constitution ~ laws of the State of alifo~~ia~ ~k~e~einaer ~~ita~~a the on~munit ed~volopn~ent Agenc~r ofthe pity of Santa ~aa, ~ public hods} co~~pot~ate and ~alitic~ and Dawntown Incnr~or•ated, aiifo~~nia non ~ro~it corpo~~ation, iereinafre~ "~ow~town~ Inc.'. R~C~~TAT~ ~n I~ecen~be~r ~~ ~DO~ the it o~.ncil ofthe i of Santa Ana. established tae )downtown ~on~nuni l~Ianagemer~t I~is#rict ~t~e ~~~~~ to pt•omote econon~c ~~evitali~ation ~ physical maintenance of downtown Santa Ana through ~ levy, collec~.on and ependlture of funds. ~. Pursuant to state laws governmental agencies such ~.~~ pity and Agency which own pi~pe~•ty within an assessment district must he assessed fog special hene~ confer~~ed upon ~~~~ gove~'nrnental propet~ties. Tl~.e first assessments for the 1I~ will not ~~ ~~ceived and ~~ available fo~• use in tl~e cllstrict urrtll .Iar~uar4y ~ ~ and is in the interest of the ~ro~ei~t owne~~s in the dtst~~ict that some of .e progra.~ns called for under tlae 1a.~a.gotnent district ~la~n begin in the ~~t half ~~ Fiscal ea~i ~~09-~ l ~. ~. ~`~~ board of di~~ctors afthe III, including the pity and Agency have been ~'e~uested to lawn an arnaunt equal to the cstirnated ~~•st year assessment to I~owntown~ Inc., who shall be the anagernent entity for the dist~'ict ur~de~~ agreement with. the City {the "~anaen~ent A.g~•ee.ent'~~. . 'l~he Ioans shall be repaid by I~owntcwn~ Inc in accordance witlx this Agreement a~~d a pron~isso~~y note. l~~w '~`~~I~'~1, fog load and val~aa~le consideration. the ~a~~ties agree as follows; I. it~r and ~blx~atia~. pity ar~d Age~acy shall loan to I~owntown~ Y~ac. the sums of ~ the ~`it~r Loan"} and the "Agency Loan' ~collectively~ the `Loan proceeds"~ secured by Downtown, Inc,'s execution o~ the ~~*~misso~~y ote~ attached herete as ~l~ibit 1 and incorporated he~~ein ~y this refe~~ence. Use of Funds, epan~ent, Accele~~atio~. the Loan proceeds shall be used by Downtown, Inc. fa~~ purposes consistent with the anage~.ent Agreement. I~o~vntawn, Inc. shall ~•epay pity Loan and Agenc~r Loan on o~' before ~u~ne ~, ~ 14. ~I~twithstanding the foregoing} in the event the aual assessments for the Page 1 SID ~ net ~~enewed i~ any ea~~, tlxe loans shall immediately heeorrxe due and ayal~le at the point ~n eptehet• I ~f that yea~~. ~. lon~e~, ~`ail~.~e t~ ee~~eise any right any pa~~y hereto nay have o~~ ~~ entitled t~, in the event ~f a default h~~~un~~~+, shall nit ~ontit~~t~ a a~r~v~~~ ~f such ~~i~ht ~~ of ~~. ather right ire e event ~f ~. subsequent default. l~ef~ults. ~ailu~~e ~r delay by l~ewnt~wn, inc. to ~erf~rr~ any tei or p~~e~ision ~f this g~•een~ent which is not cured within thi~~ty ~~ ~~~~ aver receipt ~f notice fr~n~ e pity and Agency constitutes a default under this .~en~ent~ provided, howe~era if ~~~ default is of a natu~~e ~~equiri~g rr~or~ than 3 ~ days to ~~.~~~ the defaulting iO~ shall avoid. default ~ con~n~encing t~ eut~e wttl~tn such thirty ~~ ~} day ~e~~.od and thet~eaer diligently ~~arsuing such cure to oo.~letiun, ~, o~ernin Law, ~~ls .~e~~~nt ~h~ll ~e g~~~rned b the laws ~fth state of alif~rnia. Any legal action b~;ought unde~~ this Agi~een~ent rnust he instituted in the upex~o~~ oti~~~t of the bounty of ~~*ar~e, state of ~iif~~~nia. ~, rnenchnen# of,~~eernent. o ~nodi"~cation, resctsi~n, wai~er~ release or an~endn~ent of any proviians of this Agreement shall he made except ~ written agreement executed ~y the ~ar~es heron, ss~gntnent h~ ~ownton, Zne, ~~*el~ihited, ~n ~~ event sha~il l~onton, ~~e, assign ~r trarisf e~+ an arti~n of this A ~een~ent without the ~~ar ex ~~ess w~.~itten ~~ ~ ~ consent of pity's and Agency's pity anger and Executive I~ireetor} respectiel, which consent may be given ~r withheld ire xt's and Agency's sole and absolute discretion. o assurn~tion o~'the pity's and .geney ~hliations shall he pe~~rnitted at any tine. This section shall not ~robihit it's anal Agency's right to assign all or any ~o~~ion of its rights to the proceeds ofthe Fetes hereunde~~. ~ ~. entire ~ eetnent. This ~~een~ent constitutes the enti~~e understanding and ag~•een~ent of the ~artics. This Ag~~eeent integ~~ates all of the te~~~.s and conditions mentioned herein. oi~ incidental thereto and supersedes all priar negotiations, discussions and previous ag~~en~ents between eoncer~in a.Il oi• any part of the subj eet natter of this Agx~cen~ent. jSignatures provided on next page Pale ~ ~.LI~i ~~t~~ict~ ~, I~~aly i~~ ~~ #~~ o~ncil ~o~~~i~ . ~t~~~her i~~r ~~~~a~y ATT~~; Pa~~+i~ia E. ~Ieai A~~'~~ A T F~.VI: Jo~~~ . ~i~t~.ex~ A~~~y o~~a~~i ~~ ~r ~~ ~~ D~.~i~.1, e~ fit a~a~~r ~~l~i~. ~~ '~~s~r~ ~~~~~i~~ ~ir~~tox ~i Ids; p~~~ 3 ~~nt~ lid, .~~~~'~1~. .~~ ~~~ F'~R ~IL~ ~I~~~ t~ und~~•~ign~~ Do~tan Inc~r~orat~d, ~ California no~~~r~f~t ~orpora~io~, ~"~~i~ro~ve~`~x~~ ~~+a~nis~s to ~a t~ t~~ ~~ ~f Santa n~, ~ ~~a~~t~~ city and ~uni~i~~i co~•po~~tx~r~, ~"itytf~, or ar~~r, at ~~ iv~c cntc~{ ~~a~ axrta Aria, iifor~ia~ X01, ~~~ such ~thor I~cat~a~ ~ tic ~oi~r ~~r~of rrr~.y d~s~~nate, t~~ ~u~a ~~ _ _ it~au~ int~t ~u~~suan# to tie ternns ~~ that ~~r.ir~~ Loan ~4~~~ee~n~nt ente~~~~. into by and. ~c~c~ tic ~o~~~e~~ and pity ~at~~ _ _ ........_} 0~9, which are incorparat~c~ h~r~in as if yet fct~ in ~aIi ~ t~i~ ~•efer~nc~ ~t~~ i`~r~en~~~t"~. ~c~~r~`o~~`" ~~, Ids: gage ~ ,~~ ~~~ P~~ A~~ ~~~~, ~~.~ ~n~ei~signed ~o~~~n ~nco~po~•~.~e~l~ ~ dal ~~nr~l~a ~~~p~~ef t eor~~~~~~~r~, ~`~o+~~r'~~a pr~r~i~~ ~~ ~a~r ~o ~~~ or~n~~~ni ~de~~~~~~nen~ ~~ ~~ tie fit of an~~. ~. ~~hlxe belly co~po~~t~ ar~~ ~~~~~~, ~"Agency"~, o~~ o~•~.~~i~ a~ ~ ~~~~ ender P~~za, a~~ta Aria, ~li~~r~~, ~~ 1 ~ o~+ s~ich ~t~i~~~ ~eea~~~n as ~ ~~~~~~ hereof ~~ ~.e~gnate, ~~~ ~~. ~~ .~h~ut ~n~e~est p~~~.~,nt ~~ ~ terms of that ~ ce~~~ai~ ~~~ g~•eemen~ er~~r~~. tnt~ ~ and ~eteen ~~~~ Barra~r and the ~ney ~.~~ ~~9, ~vhicl~ are ~r~c~i~o~~af~d f ~~~eir~ a~ ~~ s~ ~~r i~. full b ~s ~•eer~nc~ the "g~~e~r~e:~~}}, ~~~or~e~r'~ ~. its; Pale S