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HomeMy Public PortalAbout84-035RESOLUTION NO. 84-035 u.. THE Cl,-TV- CITY l,-T CIT OF CARSON AYYR'JVING A 117aP0Si'z kND DEVELOPMENT AGREEMENT T6E CITY COUNCIL OF THv CITY OP CkRSC;N iitr_ _ FINDS, DE ER_,+-TNES: RESOLVES AND GRDt:RS AS FOLLOWS: Section 1. Pursuant to notice culy given, the City Council has geld a full and fair public on the sale by the Carson Redeveloament Agency of certain real property located in Redevelopment Project Area No. 1, pursuant to the option Agreement attached hereto as Exhibit A and the Disposition and Development Agreement attached hereto as Exhibit B. Section 2. The Agency has made available to the public through the office of ti;e City Clerk of the City of Carson a copy of su4h cation Agree;ient ana a copy of such Disposition and Development Agreement together with a Summary of the cost thereof to the Agency, such Summary attached hereto as Exhibit C. The Summary delineates -the Costs of such Option Agreement and such Disposition and Development agreement to the Agency, including acquisition costs and interest costs on an existing loan to be assured and on bonds issued to finance such acquisition. Section 3. The City Council hereby approves such option Agreement and such Disposition and Development Agreement. PASSED, APPROVED AND ADOPTeD this 6th day of Februa-ry_+ 1984- ayor ATT3T s Ci yc lerk �a S Resolution No. 84-035/Page 2 of 2 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF CARSON ) I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing resolution, being Resolution No. 84-035 was duly and regularly adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 6th day of February, 1984, and that the same was so passed and adopted by the following vote: AYES: COUNCIL MEMBERS: Bridgers, Egan, Muise and Mills. NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Calas A04 �S� EJ�L I I i i. -a fr)-7 , City Clerk, Cit of Cars n, California OPTION AGREEMENT This Agreement, dated as of February 6, 1984, is made by and between the Carson Redevelopment Agency and The Feinberg Group, Inc. For and in consideration of the mutual covenants and promises herein, the Parties agree as follows: R E C I T A L S This Agreement is entered into with reference to the following facts: A. In furtherance of the objectives of the Redevelopment Law, the Agency has undertaken a program for the redevelopment of blighted areas in the City, and in this connection, has undertaken and is now carrying out the responsibility for the redevelopment of the Project Area pursuant to and in furtherance of the Redevelopment Plan. B. The Agency and the City have adopted the Redevelopment Plan providing for the redevelopment of the Project Area and the future uses of the land situated in the Project Area. cam. drawings to the City for review and approval and has been granted a conditional use permit regarding the development of a 248 room Hilton franchised hotel on the Site to be known as the 'Carson Hilton." The Redeveloper has agreed, pursuant to that certain "Agreement for Sale of Real Estate" dated November 2, 1382, between the Redeveloper and Peyton A. Cramer and Catherine B. Cramer, to purchase the Site and has begun efforts to secure financing for the acquisition of the Site and the Construction of such hotel. D. The powers of the Agency include the power to acquire real property, or any interest therein, and to dispose of real property, or any interest therein, for purposes of redevelopment. Redevelopment includes the replanning and development of a project area and the provision of such structures as may be appropriate or necessary in the interest of the general welfare. The development of a hotel on the Site is appropriate and necessary to the ultimate redevelopment of the Project Area and the civic center area in order to maximize the benefits to the residents, visitors, and taxpayers in the City. E. The Agency proposes to acquire the Site from the present owner and grant an option to the Redeveloper to purchase the Site from the Agency. -L� D IPF'! N IT 1ONS Section 1.01. Agency. "Agency" means the Carson ?redevelopment Agency, a public body, corporate and politic, organized and existing pursuant to the Constitution and laws of the State of California. Section 1.02. Assignment Agreement. "Assignment Agreement" means the Assignment Agreement, dated as of February 6, 1984, between the Agency and the Redeveloper. .Section 1.03. Certificate of Compliance. "Certificate of Compliance" means that certain certificate in the form attached to the Disposition and Development Agreement as Exhibit D, to be provided by the Agency to the Redeveloper upon satisfactory completion of the Improvements. Section 1.04. City. "City" means the City of Carson, a municipal corporation, organized and existing pursuant to the Constitution and laws of the State of California. Section 1.05. Disposition and Development Agreement. "Disposition and Development Agreement" means the Disposition and Development Agreement between the Agency and the Redeveloper, dated as of February 6, 1984. Section 1.06. Option Agreement. "Option Agreement" means this Option Agreement dated as of February 6, 1984, -3- -A envy ..nd ti,.-- _Pledeveiop,er. Sc^t1Cn x.07. °;:P`iOVements. ''1rDr6VeiTie^.i.5°v TFi2cP.� a '248 room, Hilton franchised hotel, to be known and designated as the Carson Hilton and related improvements to be constructed by the Redeveloper on the Site, all in accordance with plans and specifications approved by the City, and more particularly described in Exhibit 3 to the Disposition and Development Agreement. Section 1.08. Party. "Party" means any party to this Agreement. Section 1.09. Project Area. "Project Area" means the territory included within Redevelopment Project Area No. 1 of the Agency. Section 1.10. Redeveloper. "Redeveloper" means The Feinberg Group, Inc., a Missouri corporation. Section 1.11. Redevelopment Law. "Redevelopment Law" means the Community Redevelopment Law (California Health ■ and Safety Code Sections 33000, et seg.). Section 1.12. Redevelopment Plan. "Redevelopment Pian" means the Redevelopment Plan for the Project Area. Section 1.13. Site. "Site" means that certain real property more particularly described in Exhibit A, attached to the Disposition and Development Agreement, -4- OPT !ON Section 2.01. Option. Effective upon its acquisi- tion of the Site, the Agency hereby grants to the Redeveloper an option to purchase the Site for the purchase price forth in Section 2.05. The option granted pursuant to this Section 2.01 shall expire at 5:00 p.m. on Friday, September 14, 1984. In consideration for the option granted pursuant to this Section 2.01, the Redeveloper shall execute concurrently with the.execution by the Agency of this Option Agreement an assignment of its Agreement.for Sale of Real Estate as set forth in Section 2.04 and, thereafter, on or prior to the first day of -each month, commencing April 1, 1984, the Redeveloper shall pay to the Agency the sum of Twenty Thousand Dollars ($20,000.00) until such option is exercised, or until the option granted pursuant to this Section 2.01 expires, whichever occurs first, except that, on September 1, 1984, the Redeveloper shall pay to the Agency the sum of Thirty Thousand Dollars ($30,000.00) to cover the option period from August 1, 1984, to September 14, 1984. Upon the failure of the Redeveloper to make any such monthly payment, the option in favor of the Redeveloper shall automatically terminate, any prior payments shall be retained by the Agency and the Redeveloper shall have no further rights hereunder or tc purchase the Site. Upon receipt of each -5- :.; v_�'mcntF t^e ^�ncy sna I _..<.;e _"'.E C^tniV r �.._";L to _ Drd Motor Credit Comrany of debt service on the _inDa1Q balance of the existing loan described in Section 2.0" below. Section 2.02. Exercise of,option. The Redeveloper may exercise the option granted pursuant to Section 2.01, above, by providing written notice to the Agency of its election to so exercise such option and by opening the escrow provided for in Section 2.03 and depositing the sum of Fifty Thousand Dollars ($50,000.00) therein. Such notice shall be delivered to the Executive Director of the Agency at 701 East Carson Street, Carson, California 91745. The Redeveloper shall also, as a condition for exercising said option, give written evidence to the Agency that the Redeveloper has the necessary financing for the project. Section 2.03. Escrow and Closing. Concurrently with the delivery of notice to the Agency pursuant to Section 2.02, above, the Redeveloper shall cause to be opened an escrow and shall deposit the sum of Fifty Thousand Dollars ($50,000.00) therein. Said sum shall constitute consideration for holding the Site for the Redeveloper for a 30 -day escrow period and shall be retained by the Agency if the Redeveloper should not pay the purchase price and close escrow as herein provided. If the Agency fails to perform hereunder for any reason other than the failure of the _�VeicG2* _ _�_ccc such escro crtc PV `- =Cicse prC�n- i .r w? se per f 0r ih e eund er =he r;e �. `.'e lcp=_ aT:ay reCOVE'r SiiC; deposit of Fifty Thousand Dollars 15.;0,000.00). If the Redeveloper completes the purchase as herein provided, said sum shall be applied to the purchase price. Within thirty (30) days after opening the escrow the Redeveloper shall deposit in escrow the balance of the purchase price described in Section 2.05 herein. The Agency shall within fifteen. (15) days after written notice from the Redeveloper that such escrow has been opened, deposit a good and sufficient grant deed to the Site conveying to the Redeveloper title to the Site subject only to such matters of record as were of record upon acquisition of title by the Agency and to such other matters as have not been created or caused by the Agency. Such notice shall be delivered to the Executive Director of the Agency at 701 East Carson Street, Carson, California 91745. The Redeveloper shall bear all costs of escrow and any assurances of title it may wish to obtain. Escrow shall be closed within thirty (30) days of the date of exercise of the option by the Redeveloper pursuant to Section 2.02, above. The Agency does not warrant the condition of the bil'u:ngs, structures or improvements on the Site and the Redeveloper shall accept them as is in such condition as they may be in at the time for close of escrow. However, in -7- covered by insurance the amount of any insurance Proceeds received by the Agency shall be deducted from the purchase price provided for in Section 2.05. The Agency shall consult with the Redeveloper regardin4 the Settlement of claims for insurance arising from such damage or destruction. Section 2.04. Acquisition from Present Owner. The Redeveloper has agreed to purchase the Site pursuant to that certain "Agreement for Sale of Real Estate" entered into on November 2, 1982, by and between the Redeveloper and Peyton A. Cramer and Catherine B. Cramer. The Redeveloper concurrently with the execution of this Option Agreement shall execute the Assignment Agreement assigning its right to acquire the Site to the Agency pursuant to such Agreement for Sale of Real Estate. The Agency shall acquire the Site from the present Owner for the sum of Four Million Two Hundred Thousand Dollars ($4,200,000.00) less the unpaid.balance of the exisitng loan secured by a Trust Deed on the Site in favor of Ford Motor Credit Company. Section 2.05. Purchase Price. At the close of escrow pursuant to the Redeveloper exercising the option granted hereunder, the Redeveloper shall pay to the Agency as the purchase price.for the Site a sum computed as follows: 1. The sum of Four Million Two Hundred Thousand Dollars ($4,200,000.00). IM. -Oua_ _o F:er annum �.,c alf�cr2nCe be;. we en Four I'' ion T :.T :+ N 1 n _ Wo , i rldrea Thc s_.._c n.., �`�lars t$4,200.000.00; and the unpaid balance of the existing Fora Motor Credit Company loan as of the date of acquisition of the Site by the Agency, computed from March 1, 1984 to the close of escrow for acquisition of the Site by the Redeveloper from the Agency. 3. Plus a sum for the tax increment loss by the Agency by virtue of the Site being removed from the tax assessment roll as a result of its ownership of the Site for the entire period of such ownership by the Agency. Such tax increment loss shall be computed on an assumed assessed value of the Site in the amount of $4,200,000. 4. Plus reimbursement to the Agency of any reasonable expenses incurred as a result of the Agency's ownership of the Site, including without limitation, insurance, repairs, maintenance, and documented staff cost for property maintenance and repair. 5. Less the unpaid balance of the Ford Motor Credit Company loan if assumed by the Redeveloper at the close of escrow. Section 2.06. Assurances Regarding Escrow. The Redeveloper shall provide the agency with such assurances as it may recuire regarding performance by the sellers pursuant the Agreement from Sale of Real Estate described in -9- ^S she Sei�er5 a.,� ?er "..._�cC � _.. �, ��. C: _3C .... .. �.�0`K aieQ OthcrWiSe perfc_,med al-, coed -i.- --ns of escrow necessary to close.such escrow. Section 2.07. Periodic Reports to Agency. At the first regular meeting of the Agency in the months of April, June and August, an officer of the Redeveloper shall present orally and in writing a report to the Agency which sets forth to that date the progress of the Redeveloper in obtaining financing for the Site and Improvements; the progress of the Redeveloper in obtaining all permits and other entitlements for use; the progress of the Redeveloper in obtaining a Hilton franchise; the progress of the Redeveloper with respect to the architectural plans, drawings and specifica- tions; and any other matter which, in the opinion of the Executive Director of the Agency, would be of particular interest to Agency regarding the Site and Improvements. 2.08. Additional Consideration. In the event that the Redeveloper does not exercise the Option by September 14, 1984, pursuant to this Article II, the Redeveloper hereby assigns to the Agency (i) its rights pursuant to the Architects Agreement between the Redeveloper and J. P. Darling and Associates, attached to the Disposition and Development Agreement as Exhibit E; and (ii) itsright to the Architectural Plans, Drawings, and Specifications, Soil -10- .am Pe i _t S.G i. r.. a:' uv_es o' finer materia_ deve'opeC f G� '_��'c' _. z.. ^L.. Or the all aE: additional consideration for the o�tlon. The 6rritten consent of J. P. Darling and Associates to such'assign,ment shall be substantially in the form hereto attached. As additional consideration for the option granted hereunder, the Redeveloper shall complete the architectural plans, drawings and specifications now on file with the City by April 1, 1984, and all plans, drawings and specifica- tions with respect to the tower, the alterationof existing structures and the landscaping shall be completed to the satisfaction of the City and shall be filed with the Depart- ment of Community Development, Division of Building and Safety, by July 1, 1984. All corrective work or changes required by the Building and Safety Division with respect to such plans shall be completed and filed with said division within 30 days after the Redeveloper is informed of such requirements. ARTICLE III GENERAL PROVISIONS Section 3.01. Hilton Franchise. Concurrently 'W_th ttie execution of this OPtion Agreement, the'', Redeveloper stall Provide the Agency with such assurances as! it may -11- - - _ _re reg=_-ir9 g^-r�;'tirnChse G -ig 1— the Redeveloper. Section 3.02. Partial Invalidity. If any term, Covenant, condition or provision of this Option Agreement or the application thereof to any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, the remainder of this Option Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition and provision of this Option Agreement shall be valid and be enforced to the fullest extent permitted by law. Section 3.03. Attorneys' Fees. If any Party brings an action to enforce the terms hereof or declare rights hereunder, the prevailing Party in any such action shall be entitled to its reasonable attorneys' fees to be paid by the losing Party as fixed by the court. If either the Agency or the Redeve-open, without fault, is'made a party to any litigation instituted by or againstl, the other Party, such other Party shall defend it against eland save it harmless from all costs and expenses, including reasonable attorneys' fees, incurred in connection with such litigation. Section 3.04. Assignment. This Options Agreement may not be assigned by either Party except Redeveloper may -12- -y. - _ .._ �. rhi%h iz has an Section 3.05. Law Governing. This Option; Agrec:-,ent Shall be construed in accordance wd-th the ConStitution anc laws of the State of California. Section_ 3.06. Sign. Prior to March 151 1984, the Redeveloper shall erect a sign on the Site which states that the Site is the future site of the Carson Hilton, to be developed by the Redeveloper in cooperation with the Agency and presents a pictorial representation of the Tower. The size, type, location and wording of the sign shall be subject to approval by the Executive Director of the Agency. CARSON REDEVELOPMENT AGENCY ATTEST: Secretary By THE FEINBERG GROUP,! INC. By -13- '. �ti _V14 •� a 11 �: �» �.!Y 1 Ft �ii�� <�ID'!1i This Agreement, dated as of February 6, 1984, made by and between the Carson Redevelopment Agency and The Feinberg Group. For and in consideration of the mutual covenants and promises herein, the Parties agree as follows: RECITALS This Agreement is entered into with reference to the following facts: A. In furtherance of the objectives of the Redevelopment Law, the Agency has undertaken a program for the redevelopment of blighted areas in the City, and in this connection, has undertaken and is now carrying out the responsibility for the redevelopment of the Project Area pursuant to and in furtherance of the Redevelopment Plan. B. The Agency and the City have adopted the Redevelopment Plan providing for the redevelopment of the Project Area and the future uses of the land situated in the Project Area. C. The Redeveloper has submitted architectural drawings to the City for review and approval and has been granted a conditional use permit regarding the development of the Site and the corstruc�ion '-f sucr, notei. D. The powers of the Agency include the power to acquire real property, or any interest therein,and to dispose of rea= property, or any i^terest therein, for purposes of redevelopment. Redevelopmaent includes the replanning and development of a project area and the provision of such structures as may be appropriate or necessary in the interest of the general welfare. The development of a hotel on the Site is appropriate and necessary to the ultimate redevelopment of the Project Area'and the civic center area in order to maximize the benefits to the residents, visitors, and taxpayers in the City. E. As a material inducement to the Agency to enter into the Disposition and Development Agreement, the Redeveloper has agreed to acquire the Site from the Agency and to develop a 248 room, Hilton franchised hotel thereon within a limited period of time. The Agency's efforts to redevelop the Project Area makes it unwilling to enter into the Disposition and Development Agreement in the absence of a mechanism to enforce such development within a limited period of time. F. A material inducement to the Agency to enter into the Disposition and Development Agreement is the entry by the Redeveloper into the Second option Agreement. -2- Section 1.01. Agent "Agency" means the Carson Redevelopment Agency, a public body, corporate and politic, organized and existing pursuant to the Constitution and laws of the State of California. Section 1.02. Certificate of Compliance. "Certi- ficate of Compliance" means that certain certificate in the form attached hereto as Exhibit D, to be provided by the Agency to the Redeveloper upon satisfactory completion of the Improvements. Section 1.03. City. "City" means the -City of Carson, a municipal corporation, organized and existing pursuant to the Constitution and laws of the State of California. Section 1.04. Disposition and Development Agreement. "Disposition and Development Agreement" means this Disposition and Development Agreement, dated as of February 6, 1984, between the Agency and the Redeveloper (sometimes referred to herein as "this Agreement"). //SS5ection 1.05. Option Agreement. "Option Agreement" means the C t_o: R.'7ree_me nt fatC C f 1,<'`F. r.. .- ! 'eCQf. as lJ� ✓1uary `i 11 , between the Agency and the Redeveloper. Section 1.06. Improvements. "Improvements" means -3- W 4te a- the 96Carson HiltonanC related i3liproVei%?:':t5 t0 De constructed by the Redeveloper on the Site, all in accordance with plans and specifications approved by the City, and more Particularly described in Exhibit B attached hereto. Section 1.07. Party, "Party" means',any party to this Agreement. Section 1.08. Project Area. "Project Area" means the territory included within Redevelopment Project Area No. 1 of the Agency. Section 1.09, Redeveloper. '"Redeveloper" means The Feinberg Group, a Missouri corporation, Section 1.10. Redevelopment Law. "Redevelopment Law" means the Community Redevelopment Law (California Health and Safety Code Sections 33000, et seg,) Section 1.I1. Redevelopment Plan. "Redevelopment Plan" means the Redevelopment Plan for the Project Area. Section 1.12. Second Option Agreement. "Second Option Agreement" means the Second Option Aare- ^ ent, dated February 6, 1984, between the Agency and the Redeveloper. Section 1.13. Site. "Site" means that certain real property more particularly described in Exhibit A, attached to the Disposition and Development Agreement. -4- Section 2.01. Purchase Price Sub -4e-+- to all terms, covenants and conditions of this Disposition and Deves.opment Agreement, the Agency shall convey the Site to the Redeveloper for a total purchase price as set forth in the Option Agreement. Section 2.02. Escrow. The Parties agree that the escrow shall be closed in accordance with the terms and conditions set forth in the Option Agreement. Title shall be conveyed by grant deed substantially in the form of the grant deed attached hereto as Exhibit C and by this reference incorporated herein. Upon the close of escrow, title to the Site shall be conveyed, to the Redeveloper and the purchase price shall be paid to the Agency all as set forth in the Option Agreement. Section 2.03. Letter of Credit. Concurrently with or prior to the close of escrow between the Agency and the Redeveloper for the Site, the Redeveloper Shall deliver to the Agency an irrevocable standby letter of ',credit in favor of Agency securing payment to the Agency ',of the sum of five hundred thousand dollars ($500,000) in the event the [� Laelop�~ itl�iC�J not construct the Tom.--. with Section 3.01, below, or otherwise Perform its obliga- tions pursuant to this Agreement. -5- In the event', the Redeveloper A C 2.._ .�d__1.. .. 9 to this Agreement- the Agency shall return such letter of credit to the Redeveloper, on or prier to the fifth (5th; business day following the date of furnishing the Redeveloper with the Certificate of Compliance. -6- REDEVELOPMENT OF THE PROPERTY Section 3,01, Redevelopment. The Redeveloper shall construct Or cause to be constructed the Improvements to the Site in accordance with this Agreement. In connection With such construction, the Redeveloper shall comply in all respects with the following schedule of performances The Redeveloper shall begin such construction within sixty (60) days of the close of the escrow specified in Section 2.02, above. The tower of the 248 room Hilton franchised hotel portion of the Improvements shall be completed within three hundred thirty (330) days of the close of such escrow, The Redeveloper shall complete construction of the Improvements and the 248 room Hilton franchised 'hotel shall be open for business within four hundred twenty (420) days -of the close of such escrow. The Agency and the City have acquired surrounding real property in the area of the Site for the purposes of redevelopment and more specifically for the purpose of development of a civic center and compatible uses in that portion of the Project Area. A material inducement to the Agency to enter into the Option Agreement and this Agreement is the covenant by the Redeveloper to construct the Improvements on the Site within a limited period of -7- I C on ' se. The Redeveloper steal' obtain in a timely :wanner all permits and other entitlements for use which may be required by any public entity or regulatory body in connection with the construction of the Improvements in accordance with this ?agreement. Section 3.03. Disposition of the Property. The Redeveloper shall not sell, transfer, convey, lease or otherwise dispose of the Site, or any interest therein, by any means prior to the issuance of the Certificate of Compliance. The Redeveloper shall not assign any of its rights under this Agreement without the prior written consent of the Agency. The Redeveloper may, with the written consent of the Agency, assign this Agreement to an entity in which it has an ownership interest. Section 3.04. Certificate of Compliance. Upon completion of the Improvements in accordance with this Agreement, the Agency shall furnish the Redeveloper with a Certificate of Compliance. Section 3.05. Name of Hotel. Such hotel shall be designated by the Redeveloper as the "Carson Hilton", and all references to the hotel by the Redeveloper, including but not limited to all signs, and all other advertising anc Promotional materials and publications shall refer to such hotel as the "Carson Hilton". Redeveloper shall secure and deposit with the City Clerk a bond securing the faithful performance by the construction contractor or contractors of the completion of construction of the Improvements within the +-iM- provide- in Section 3.01. Such bond shall be in an amount equal to one hundred percent (100%) of the estimated cost of such construction. Such construction bond shall name the City and the Agency as well as the Redeveloper and its Lender as obligees. Such construction bond shall be from a company listed in the current United States Treasury Department Circular 570 and F within the underwriting limits specified for that company in such Circular. Section 3.07. Architectural Drawings and Hilton Franchise. The Redeveloper hereby assigns to the Agency all its rights, title and interest in (i) the architectural plans, drawings and specifications regarding the Improve- ments, (ii) the Architects Agreement attached hereto as Exhibit E, and (iii) the Hilton franchise, as additional assurance for the Redeveloper's performance of this Agreement. The Agency may, at its election, retain all such rights (without assuming any obligations with respect thereto) until such time as the Agency has furnished to the Redeveloper a Certificate of Compliance, at which time such assignment shall become void. Section 4.01. Default by Redeveloaer. in the event of default or breach by the Redeveloper of any of the agreements, covenants or conditions of this Disposition and Development Agreement, including but not limited to the schedule for construction of the Improvements set forth in Section 3.01, above, or if the Redeveloper should default in the payments accruing to the construction lender having a trust deed or lien on the Site, then the Agency may, at any time after any such breach or default, in addition to but not exclusive of any other remedies available to the Agency, acquire the Site and z Improvements from the Redeveloper for the purchase price and on the terms set forth in the Second Option Agreement. Except for a breach or default involving the timely payment of the purchase price and close of escrow as provided in Article II hereof and the payment of debt service to any lender having a trust deed or lien on the Site, the Agency shall not exercise any remedies in connection with any other breach or default (i) involving the payment of money until ten (10) days after written notice of such breach or default is provided to the Redeveloper by the Agency, or (ii) not involving the payment of money until thirty f -7O} days of �-er e�>r i}�n-i nr,t S:n 'F 'j' breach nr r�e. �rri 'r ie provided by the Agency to the Redeveloper, and the Redeveloper has failed to cure such breach or default within such ten (10) day or thirty (30) day period, whichever is applicable. -10- a Section 5.01. USE.-+ of the Site. The FcedeVei'^ - ope: shall use and maintain the Site in accordance with the agreements, conditions and restrictions set forth in this Disposition and Development Agreement and all Federal, State and local laws, rules and regulations. Section 5.02. No Discrimination. The Redeveloper shall not discriminate upon the basis of race, color, creed, religion, sex, marital status, age, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site or the Improve - meats, or any part thereof, nor shall the Redeveloper, or any person claiming under or through the Redeveloper, establish or permit any such practice or practices of discrimination or segregation with respect to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site or Improvements. The foregoing covenant shall run with the land. The Redeveloper shall insert into and make a part of any lease, rental agreement, occupancy permit, use or sales agreement or any other document pertaining to the Site or the imrrovements a provision that there shall be no restrictions imposed thereon because of race, color, creed, religion, sex, -11- vert! - 11 1 '.� � �� � �, � ;- , 1,r 1 , t L Redeveloper Sha -11 join with the AQencv in the recordation of such documents as the Agency may require, including, without ,'_imitation, the Second Option Agreement, to facilit-t— reaCauisition by the Agency of the Site and Improvements, in order to insure construction of the improvements in accor6ance with this Agreement. .LL this M 11 WLS106-13B ARTICLE VI GE-N',ER,P,L PROVISIONS Section 6.01. Attorneys' Fees. If any Party brings an action to enforce the terms hereof or declare its rights hereunder, the prevailing Party in any such action shall be entitled to its reasonable attorneys' fees to be paid by the losing Party as fixed by the court. If either t`e Acency or the Redeveloper, without fault, is made a party to any litigation instituted by or against the other Party, such other Partv shall defend it against and save it harMless f -or, all costs and expenses, includi_na reasonable attorneys' fees, incurred in connection with such litigation. Section 6.02. Access to the Property. The Redeveloper shall permit the Agency, through its designated representatives, access to the Site and Improvements at all reasonable times to determine compliance of the Redeveloper with the covenants and conditions contained in this Agreement. Section 6.03. Vis Major. In the event that the Parties shall be delayed, hindered in or prevented from the performance of any act required hereunder by reason of strikes, lock -outs, labor troubles, inability to procure -13- WLS106-14B ma r' f -I urs _ s _ .- �a�s, ai t.v:.cr, � J��i1.i_ivc iawS or regulations, litigation under the California Environmental Quality Act, riots, insurrection., the act, failure to act or default of the other Party, war or reason beyond the Partv's control, excluding financial inability, then performance of such act shall be excused for the period of delay arising from such cause. An extension of time by reason of any such cause shall be for the period of the enforced delay and shall commence to run from the time of the co-mm.encement of the cause, if written notice by the Party claiming such extension is delivered to the other Party within thirty (30) days of the commencement of the cause. Section 6.04. Law Governing. This Agreement shall be construed in accordance with the Constitution and laws of the State of California. Section 6.05. Effective Date. This Agreement shall become effective on the date of the exercise of the option granted to the Redeveloper by the Agency pursuant -14- o sect ion 2.G'_ of th;- ODtion Agree7zent. ATTEST S--cretary CARSON REDEVELOPMENT AGENCY By Chairman THE FETNBERG GROUP By -15-