HomeMy WebLinkAboutContracts & Agreements_33-1967ORiGINAL
A G R E E M E N T
THIS AGREEMENT is entered into this 27 day of December
1967, by and between the CITY OF REDLANDS, a municipal cor-
poration (herein "City''), CITY OF REDLANDS PARKING AUTHORITY,
a parking authority, created pursuant to the Parking Law of
1949 (herein "'Authority"), REDLANDS SECURITY COMPANY, a
corporation (herein "Security"), and THE HARRIS COMPANY, a
corporation (herein "Harris").
Recitals
1. Security intends to develop a shopping area con-
taining a major department store, additional retail stores
and an air conditioned mall (herein "Town Square") in the
area designated in black on Exhibit A, attached hereto, in
accordance with plans approved by the Planning Commission
and City Council, including all departmental requirements.
2. Said department store will be built in the area
designated in red on Exhibit A, with the solid red line
indicating the first floor of said building, and the broken
red line indicating the second, and possible third floors.
3. Harris has entered into a lease with Security to
occupy the department store for a thirty-year period, pro-
vided public parking is available, on a validation basis,
on parking lots designated in green on Exhibit A.
4. City has heretofore indicated its intent to vacate
those portions of Third Street, Fourth Street and State
Street designated in blue on Exhibit A (herein "vacated
property"') and to allow construction of Town Square, ac-
cording to the plans heretofore submitted to City.
5. Authority has heretofore secured a financial
SURR & HELLYER feasibility report from Stone and Youngberg, Municipal
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Financing consultants, indicating that it would be feasible
to issue revenue bonds in the sum of $600,000 to purchase
property for the parking lot adjoining Eureka Street (herein
"Eureka Lot") as shown on Exhibit A, and to construct said
lot, provided Town Square is constructed and Harris occupies
and operates the department store, and agrees to validate
customer parking.
6. City and Authority have indicated that the Eureka
Lot will be operated on a validation basis, through the
Parking District (herein "District") and Authority will
receive a rental sufficient to pay all obligations incurred
by Authority for the acquisition and construction of the
Eureka Lot, over a twenty --five year period.
7. City has indicated that, during the amortization
period of the bonds, in addition to revenue from the Eureka
Lot, it will pay to Authority any increases in sales tax
and real property taxes, as needed to make bond payments,
in excess of that received in the fiscal year 1967--1968, from
the properties located within the area outlined in brown
on Exhibit A (herein "affected area"). Provided, however,
that there shall be deducted from said increased sales taxes
the amount of sales tax paid by Harris during its last full
year of occupancy of its present store location.
8. Stone and Youngberg have advised Authority that
bonds should not be issued until approximately six months
after the commencement of construction on the department
store and Authority presently has no funds with which to
acquire property for the Eureka Lot.
9. Because of rising real estate prices it has been
desirable for certain individuals and Security to purchase
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parcels of real property which are to be part of the Eureka
Lot, and further purchases may be made prior to sale of the
bonds. Such purchases have been made, and will be made, upon
the agreement that after sale of the bonds Authority will
purchase said parcels for a sum equal to the amount paid by
the purchasers, plus interest at six percent (6%) per annum
on the funds expended, except to City and Security.
10. Harris will not agree to occupy and operate the
department store, and Security will not agree to build
Town Square, unless Authority agrees to construct the
Eureka Lot, and Security cannot build Town Square unless
City vacates the vacated property.
11. This Agreement is entered into for the purpose
of irrevocably binding Security to build Town Square,
Harris to occupy and operate the department store, City
to vacate the vacated property and Authority to issue bonds
and acquire and construct the Eureka Lot.
Agreements
For and in consideration of the promises and covenants
herein contained, the parties hereto agree as follows:
First: City will immediately take any and all steps
and procedures necessary to vacate the vacated property,
subject only to easements for utilities in place, emergency
vehicle access, and public easements for pedestrian traffic
in such locations as are designated on the approved Town
Square plan, and further subject to the limitation that no
buildings or structures shall overhang said easements
except in the area adjoining the Elks Club property, without
the further consent of City. City further agrees that it
will, upon receiving the written request of a majority of
SURR & F-M4LYER the property owners involved, take such steps as are pro -
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vided under the law to implement the property owners' re-
quest for the creation of a mall on State Street between
Orange and Fourth Streets; provided, however, that City
shall not be obligated to expend public funds therefor.
Second: Within fifteen (15) days after vacation of
the vacated property, Security will commence construction
of Town Square and will diligently proceed to complete
Town Square in accord with the approved Town Square plans.
Third: Following commencement of construction of Town
Square, Authority will take such steps and procedures as
will allow it to submit for bid a bond issue in an amount
sufficient to purchase the property required for the Eureka
Lot and to construct said lot, but not to exceed $600,000.
Fourth: Authority shall acquire all property required
for the Eureka Lot and complete construction of said lot not
later than the date of completion of the department store,
which date shall be furnished to Authority by Security, in
writing, not less than six (6) months prior to the anticipated
date of completion. In acquiring the property required for
the Eureka Lot, Authority shall pay to the owners of said
lots all sums expended by them in acquiring and holding said
property, plus interest at the rate of six percent (6%)
per annum, except that in the case of property acquired
from Security and City no interest shall be paid.
Fifth: Upon completion of the department store, Harris
agrees to occupy said store and operate said store for a
period of not less than thirty (30) years, and during said
period Harris agrees to pay for customer parking on a valida-
tion basis at the same rate which is then charged on other
public parking lots.
Sixth: Security agrees that in the event revenues
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increases in sales tax and real property taxes in the
affected area (as set forth in Paragraph 7, Page 2), are
not sufficient to meet the annual payment of lease rental
to Authority, it will pay to City one-half (2) of such de-
ficit, but not to exceed $2,500 per year. Such payments
by Security, and any payments by City to meet such de-
ficit, shall be repaid to Security and City at any time
the revenues above exceed the annual lease rental, on a
proportionate basis, based upon the amount each has ex-
pended in payment of a deficit. (i.e., If each has paid
$1,000 in a given year, the next surplus, or surpluses,
will be shared equally until, each has been repaid. If
Security has paid $2,500 in a given year, and City has
paid $5,000, Security will receive 1/3 and City will re-
ceive 2/3 of the next surplus, or surpluses, until each
has been repaid.)
Seventh: In the event Authority does not have suffi-
cient funds from the sale of bonds for the acquisition and
construction of the Eureka Lot, Security will Lease to
Authority such amount of land which it may own within the
Eureka Lot perimeter, with the value of said land to be
figured at the average cost per square foot of said land,
as will be required to overcome such deficit. A lease,
with an option to purchase at the end of the lease, will
be entered into with a yearly rental of an amount suffi-
cient to amortize the value of the Land, with interest
thereon at the rate of six percent (6%) per annum on the un-
paid balance, and providing that in the final year of said
lease Authority shall have the option of purchasing the
property for a purchase price which will be the equivalent
of the lease rental for the final year. Said lease shall
S LfRR Es HGLLYER be for a period not to exceed twenty-five (25) years.
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Eighth: Security shall reserve from the conveyance
to Authority of the Harry and Lloyd property that portion
of said property which is outlined in red on Exhibit B,
attached hereto, along with the right to construct a build-
ing overhang twelve (12) feet into the air west of the east
line of said property, at a height of not less than fifteen
(15) feet. In determining the purchase price to be paid
by Authority to Security for the Harry and Lloyd property,
the sum of $5,000 shall be deducted therefrom.
Ninth: This agreement shall be binding upon the assigns
and successors in interest of the parties hereto.
Approved As To Form
City Atto T
ey
Approved As To Form
City of RMlalYds Parking
Authori y Attorney
SURR & 14ELLYER LL
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CITY OF REDLANDS
By
Mayor
CITY OF REDLANDS PARKING AUTHORITY
By -7-`
/aj
Chairman of the Boar f
Direc ors
REDLANDS SECURITY COMPANY
By
Pr sid�t
And
Secretary
THE HARRIS COMPANY
President
And
Secretary
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