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HomeMy WebLinkAboutContracts & Agreements_DDA-4-87 FIRST AMENDMENT TO REDEVELOPMENT DISPOSITION AND DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT DISPOSITION AND DEVELOPMENT AGREEMENT ( "First Amendment" ) is made on this 28th day of MARCH , 1988, by and between the REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS ( "the Agency" ) , a public body, corporate and politic, and REDLANDS FINANCIAL SERVICES, INC. , a California corporation ( "RFS" ) , with reference to the following: RECITALS A. On April 7, 1987, the Agency and H.G.H. PROPERTIES, a California Limited Partnership ( "H.G.H. " ) as the "Redeveloper" thereunder , entered into a "Redevelopment Disposition and Development Agreement (Redlands Park Plaza) " ( the "DDA" ) for the purpose of implementing the Redevelopment Plan for the Redlands Redevelopment Project in the City of Redlands providing for the development of a commercial retail and office complex to be included within the boundaries of the Project Area. B. H.G.H. has assigned all of its right, title and interest as the "Redeveloper" under the DDA to RFS and the Agency has consented to said assignment. C. The Agency and RFS now desire to amend the DDA as hereinafter- set forth. NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the Agency and RFS agree to amend the DDA in the following particulars only: 1 . Item 20 of the "SCHEDULE OF PERFORMANCE" attached as Exhibit "C" to the DDA, relating to the date of completion of the improvements to be constructed on and off the Site, is hereby amended to read as follows: "On or before September 28 , 1988. " 2 . , Section 3 . 5.2 of the DDA is hereby amended to substitute RFS as the Redeveloper in lieu and in place of H.G.H. The principal office of the Redeveloper shall be 300 East State Street, Redlands, California 92373 - Attention: Phillip R. Broderick . Further, any references to H.G.H. in the DDA and the exhibits thereto are hereby amended to substitute RFS therefor. 3 . Notwithstanding any provisions of the DDA to the contrary, the good faith deposit to be made pursuant to Section 3 .6 of the DDA may be made by Redeveloper through the assignment of a non-interest bearing passbook account established in the name of Redeveloper at Redlands Federal Savings and Loan Association provided such passbook account is irrevocable, 3 t i contains good and clear funds in the amount of the required deposit, and the passbook is delivered to the Agency, and further provided that the assignment recites that i.t is given as security for the performance by the Redeveloper of the obligations to be secured by said passbook account . The Agency agrees to accept the assignment of such passbook account in lieu of a letter of credit or other security provided for in Section 3 . 6 . 4. The last paragraph of Section 3 . 6 of the DDA is hereby amended and restated and shall be signed by the Agency and RFS: THE AGENCY AND THE REDEVELOPER, BY THIS AGREEMENT, MUTUALLY AGREE THAT IF THE REDEVELOPER SHOULD DEFAULT UPON ITS OBLIGATIONS MAKING IT NECESSARY FOR THE AGENCY TO TERMINATE THIS AGREEMENT, THE DAMAGES SUFFERED BY THE AGENCY, WOULD BE UNCERTAIN. SUCH DAMAGES WOULD INVOLVE SUCH VARIABLE FACTORS AS THE POSTPONEMENT OF TAX REVENUES FROM THE SALES PROPERTY TO THE COMMUNITY AND THE FAILURE OF THE AGENCY TO EFFECT ITS PURPOSES AND OBJECTIVES WITHIN A REASONABLE TIME RESULTING IN ADDITIONAL, IMMEASURABLE DAMAGE AND LOSS TO THE AGENCY AND THE COMMUNITY. IT IS IMPRACTICAL AND EXTREMELY DIFFICULT TO FIX THE AMOUNT OF SUCH DAMAGES TO THE AGENCY, BUT THE PARTIES ARE OF THE OPINION, UPON THE BASIS OF ALL INFORMATION AVAILABLE TO THEM, THAT SUCH DAMAGES WOULD APPROXIMATELY EQUAL THE AMOUNT OF THE GOOD FAITH DEPOSIT HELD BY THE AGENCY AT THE TIME OF THE DEFAULT OF THE REDEVELOPER, AND THE AMOUNT OF SUCH GOOD FAITH DEPOSIT SHALL BE RETAINED BY THE AGENCY UPON ANY SUCH OCCURRENCE AS THE TOTAL OF ALL LIQUIDATED DAMAGES FOR ANY AND ALL SUCH DEFAULTS AND NOT AS A PENALTY. IN THE EVENT THAT THIS PARAGRAPH SHALL BE VOID FOR ANY REASON, THE AGENCY SHALL BE ENTITLED TO THE FULL EXTENT OF DAMAGES OTHERWISE PROVIDED BY LAW. The Redeveloper and the Agency specifically acknowledge and agree to this liquidated damages provision by their signatures here: REDEVELOPER By: ,�614 AtZ/�X' -2- AGENCY By: z 5. The DDA, as amended hereby, shall continue in full force and effect according to the terms thereof. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 6. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorneys ' fees and costs. IN WITNESS WHEREOF, the undersigned have executed this First Amendment as of the date first written above. REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS By: By: (_/Z/eilJl�l ATTEST: tary, R d v lopment g A er�'CY of e ds REDLANDS FINANCIAL SERVICES, INC. , a California corporation By: Its P e,4ident By: Gam_ is Secre ary -3- DEO1080/3/22/88/S