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HomeMy Public PortalAbout2014-01-01 Fullerton Successor Agency Professional Services Agmt for Escrow Services Pursuant to an Enforceable Obligation - Gold Coast Escrow FULLERTON SUCCESSOR AGENCY PROFESSIONAL SERVICES AGREEMENT FOR ESCROW SERVICES PURSUANT TO AN ENFORCEABLE OBLIGATION 1. PARTIES AND DATE. This Professional Services Agreement for Escrow Services Pursuant to Enforceable Obligation ("Agreement") is to be effective January 1, 2014, and is entered into by and between the Fullerton Successor Agency to the former Fullerton Redevelopment Agency, a public agency under Health and Safety Code section 34173, with its principal place of business at 303 West Commonwealth Avenue, Fullerton, CA 92632 ("Successor Agency") and Gold Country Escrow, Inc., a California corporation, with its principal place of business at 18180 Yorba Linda Blvd., Suite 503, Yorba Linda, CA 92886 ("Consultant"). Successor Agency and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. RECITALS. 2.1 Consultant. Consultant desires to perform and assume responsibility for the provision of professional escrow services required by the Successor Agency on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional escrow services to public clients, is licensed in the State of California, and is familiar with the plans of Successor Agency. 2.2 Finding of Enforceable Obligation. Pursuant to Assembly Bill 26 from the First Extraordinary Session of the 2011-12 California Legislative Session ("ABx1 26") as amended by Assembly Bill 1484 from the 2011-12 Regular Legislative Session ("AB 1484"), as those laws may be amended from time to time (collectively, the "Dissolution Law"), the Successor Agency submitted to the California Department of Finance ("DOF") the Recognized Obligation Payment Schedule ("ROPS") covering the 6-month period commencing January 1 , 2014 (referred to as "BOPS 13-1413"). One of the items for which the Successor Agency sought DOF approval as an "enforceable obligation," as defined in the Dissolution Law, is that certain Owner Participation Agreement by and between the Fullerton Redevelopment Agency ("RDA") and Steven Peck, as Trustee of the Steven Peck Inter Vivos Trust ("Peck" or "Participant"), entered June 4, 1991 (the "OPA"), with a total funding commitment from the RDA to Peck in the amount of $6,250,000 (the "Total OPA Funding Obligation" and "Total OPA Funding Obligation Amount"). A true and correct copy of the OPA is attached hereto as Exhibit "A" and incorporated herein. On December 17, 2013, DOF issued its final determination letter for the Successor Agency's BOPS 13-14B (the "BOPS Final Determination Letter"), in which DOF determined the OPA is an "enforceable obligation," as defined in the Dissolution 698/036753-0L26 7057598.3 06/11/I4 Law, and approved funding for the BOPS 13-14B period in the amount of $4,125,000 from the Redevelopment Property Tax Trust Fund ("RPTTF"), as defined in the Dissolution Law. A true and correct copy of the BOPS Final Determination Letter is attached hereto as Exhibit "B" and incorporated herein. 2.3 Funding Approval and Payment Obligations. Pursuant to Section 6.2.2 of the OPA, the RDA has the obligation to diligently prosecute to completion the construction of a parking structure at such a time as the renovation of the "Fox Theatre" redevelopment project commences, which event has occurred. Pursuant to the BOPS Final Determination Letter, DOF approved $4,125,000 in funding from the RPTTF (the "BOPS 13-14B Approved RPTTF Funding" and "BOPS 13-14B Approved RPTTF Funding Amount") to satisfy the obligations of the Successor Agency (as successor-in-interest by operation of law) to Peck to diligently prosecute to completion the construction of a parking structure on the "Parking Structure Parcel' as defined in the OPA. For purposes of this agreement, the parking structure to be constructed on the Parking Structure Parcel is referred to as the 'Parking Structure Project." 2.4 Services. Successor Agency desires to engage Consultant to render such escrow services for the administration and distribution of funds received by the Successor Agency from the RPTTF for the Total OPA Funding Obligation (the 'Total OPA Funding Obligation Services" or "Services") as set forth in this Agreement. In order for Consultant to perform the Total OPA Funding Obligation Services as set forth in this Agreement, the Successor Agency shall transfer to Consultant funds from the RPTTF received by the Successor Agency to pay for the Total OPA Funding Obligation, so long as such additional funding amount is approved by DOF by way of a BOPS pursuant to the Dissolution Law, including, by way of example, the BOPS 13-14B Approved RPTTF Funding Amount. 2.5 Implementing Agreement for Enforceable Obligation. The parties acknowledge and agree that this Agreement is entered into to be in compliance with the OPA, a DOF-approved enforceable obligation pursuant to Health and Safety Code section 34177.3(a). 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the Successor Agency all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the Services. The Services are more particularly described in Exhibit "C" attached hereto and 698/036753-0126 _ 7057598.3.06/11/14 -�' incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1 .2 Term. The term of this Agreement shall commence from the date upon which the Successor Agency received the BOPS 13-14B Approved RPTTF Funding Amount and shall expire, if not terminated earlier pursuant to this Agreement, on the date that is the earliest of: (i) the date on which all of the funds received by the Successor Agency for the Total OPA Funding Obligation have been spent in furtherance of diligently prosecuting to completion the construction of the Parking Structure Project, (ii) the completion of construction of the Parking Structure Project, or (iii) June 30, 2015. The Successor Agency shall have the unilateral option, at its sole discretion, to renew this Agreement every six (6) months for no more than ten (10) additional 6-month terms pursuant to the Schedule of Services identified in Section 3.2.2 of this Agreement. Each 6-month renewal period shall correspond to a 6-month BOPS period. In the event that the Dissolution Law is amended to adjust the frequency of the BOPS periods, the Successor Agency shall have the unilateral option, at its sole discretion, to renew this Agreement for a period that corresponds to the newly established BOPS period, with each renewal option, if exercised, to correspond to the newly established ROPS period; provided, however, that this Agreement may not be renewed for more than five (5) years after the original expiration date without further amendment of this Agreement. Any renewal period under this Agreement shall be considered part of the "term" of this Agreement. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or under its supervision. Consultant shall determine the means, methods and details of performing the Services subject to the requirements of this Agreement. Successor Agency retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of Successor Agency and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "D" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to 698/036753 0126 7057598 3 a06/1 1/14 -3- perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, Successor Agency shall respond to Consultant's submittals in a timely manner. Upon request of Successor Agency, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of Successor Agency. 3.2.4 Substitution of Key Personnel. Consultant has represented to Successor Agency that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of Successor Agency. In the event that Successor Agency and Consultant cannot agree as to the substitution of key personnel, Successor Agency shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the Successor Agency, or who are determined by the Successor Agency to be uncooperative, incompetent, a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property, shall be promptly removed from the Services by the Consultant at the request of the Successor Agency. The key personnel for performance of this Agreement are as follows: for CONSULTANT: Wendy Iwanaga or successor to the same management position. 3.2.5 Successor Agency's Representative. The Successor Agency hereby designates the Successor Agency's Executive Director, or his or her designee, to act as its representative for the performance of this Agreement ("Successor Agency's Representative"). Successor Agency's Representative shall have the power to act on behalf of the Successor Agency for all purposes under this Agreement. Consultant shall not accept direction or orders from any person other than the Successor Agency's Representative or his or her designee. 3.2.6 Consultant's Representative. Consultant hereby designates the same individual identified in Section 3.2.4 above, or his or her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with Successor Agency staff in the performance of Services and shall be available to Successor Agency's staff, consultants and other staff at all reasonable times. 698/036753 0126 _ 70575983 a06/11/14 _4 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the Successor Agency, City of Fullerton ("City"), or any of City's commissioners, joint power authorities, separate governing agencies or authorities, departments, or committees ("City Related Entities"), any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City Related Entities to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City Related Entities, shall be promptly removed from providing the Services by the Consultant and shall not be re-employed to perform any of the Services. 3.2.9 Laws and Reaulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the Successor Agency, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold the Successor Agency and all City Related Entities and their officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.2.10 Insurance. 3.2.10.1 Time for Compliance. Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the Successor Agency that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the Successor Agency that the subconsultant has secured all insurance required under this section. 698/036753-0126 _ 7057598.3 a0 11/14 -5 3.2.10.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder and without limiting the indemnity provisions of the Agreement, the Consultant in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so. (a) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001 , with minimum limits of at least $1,000,000 per occurrence, and if written with an aggregate, the aggregate shall be double the per occurrence limit. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement. (b) Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (c) Surety Bond or, in lieu thereof, an Assignment to Commissioner of Corporations, in an amount of no less than $50,000 or minimum amount as may be required by law or directive of the Commissioner of Corporations, whichever is more. (d) Professional Liability Insurance with a limit of not less than $1 ,000,000. If policy is written as a "claims made" policy, the retro date of the policy shall be prior to the start of the contract work. (e) Employee/Officer Fidelity Bond with a minimum limit of $4,000,000, providing coverage for the acts of all employees, officers and directors. 3.2.10.3 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the Successor Agency for approval. (A) The policy or policies of insurance required by Section 3.2.10.2 (a) (Commercial General Liability) shall be endorsed to provide the following: 698/036753-0126 _ 70575983.06/11/14 _6 (1) Additional Insured: The Successor Agency, all City Related Entities, and their respective officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement. Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the Agreement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Successor Agency except ten (10) days shall be allowed for non-payment of premium. (B) The policy or policies of insurance required by Section 3.2.10.2 (b) (Umbrella Policy) shall be endorsed to provide the following: (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Successor Agency except ten (10) days shall be allowed for non-payment of premium. (C) The policy or policies of insurance required by Section 3.2.10.2 (c) (Workers' Compensation) shall be endorsed to provide the following: (1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Successor Agency except ten (10) days shall be allowed for non-payment of premium. 3.2.10.4 Primary and Non-Contributing Insurance. All insurance coverages shall be primary and any other insurance, deductible, or self- insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions. 3.2.10.5 Waiver of Subrogation. Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions. 698/036753 0126 _ 90575983 x06/11/14 -7 3.2.10.6 Deductible. Any deductible or self-insured retention must be approved in writing by the Successor Agency and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention. 3.2.10.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the Successor Agency. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the Successor Agency. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the Successor Agency evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. 3.2.10.8 Failure to Maintain Coverage. Consultant agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the Successor Agency. The Successor Agency shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Agreement. In the event that the Consultant's operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension. 3.2.10.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. 3.2.10.10 Insurance for Subconsultants. All Subconsultants shall be included as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with the terms of these insurance requirements, including adding the Successor Agency, all City Related Entities, and their respective officials, officers, employees, agents and volunteers as an Additional Insured to the Subconsultant's policies. 3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal 698/036751-0126 _ 7057598.3 AN]I/14 -� laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.3 Fees and Payments. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "E" attached hereto and incorporated herein by reference. Notwithstanding any provision in this Agreement to the contrary, without the prior written approval of Successor Agency's Executive Director, the total compensation for Services performed by Consultant shall not exceed $12,000 ("Not To Exceed Amount"), which Not To Exceed Amount expressly includes all fees for any and all escrow accounts that have been opened pursuant to the Scope of Services. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Consultant shall submit to Successor Agency a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. Successor Agency shall, within 45 days of receiving such statement, review the statement and pay all charges thereon approved by the Successor Agency that are solely in furtherance of the Services to be provided under this Agreement. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by Successor Agency. 3.3.4 Extra Work. At any time during the term of this Agreement, Successor Agency may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by Successor Agency to be necessary for the proper completion of the Total OPA Funding Obligation Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from Successor Agency's Representative. 3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth in Exhibit "E" may be adjusted each year at the time of renewal in an amount such that Consultant's rates do not exceed the Cost of Living adjustments according to the Consumer Price Index, All Urban Consumers, Los Angeles-Riverside-Orange Counties. 3.3.6 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seg., and 1770, et sem., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other 698/036753-0126 _ 7057598.3.06/11/14 -� requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1 ,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Upon Consultant's written request, the Successor Agency shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement, but the Successor Agency shall not be in default of this Agreement for failure to provide a copy of any prevailing wage rates. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the Successor Agency, and City Related Entities, and their respective officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4 Accounting Records. 3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of Successor Agency during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.5 General Provisions. 3.5.1 Termination of Agreement. 3.5.1.1 Grounds for Termination. Successor Agency may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to Successor Agency, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. 3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, Successor Agency may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such Documents and Data and other information within fifteen (15) days of the request. For purposes of this Agreement, "Documents and Data" shall mean any and all documents associated with any of the Services 698/036753-0126 _ �_ 7057598.3 u06/11/14 provided by this Agreement, including, but not limited to, requests for proposals and responses thereto, construction agreements, contractor and subcontractor agreements, escrow instructions, and any other related documents in any tangible form or medium. 3.5.1 .3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, Successor Agency may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: Gold Country Escrow Company 18180 Yorba Linda Blvd., Suite 503 Yorba Linda, CA 92886 Fax: (714) 579-3525 E-Mail: wendy@goldcountryescrow.com Successor Agency: Fullerton Successor Agency 303 W. Commonwealth Ave. Fullerton, CA 92632 Attn: Executive Director Fax: (714) 738-6758 E-Mail: ioef@ci.fullerton.ca.us E-Mail: ramonac@ci.fullerton.ca.us With Copy To: Rutan & Tucker, LLP 611 Anton Blvd., Suite 1400 Costa Mesa, CA 92626 Attn: William H. Ihrke, Esq. Fax: (714) 546-9035 E-Mail: bihrke@rutan.com Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service, which shall include e-mail, facsimile transmission, and personal service. 698/036753-0126 7057598.3 a06/11/14 3.5.3 Ownership of Materials and Confidentiality. 3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for Successor Agency to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in Documents and Data. Consultant shall require all subconsultants to agree in writing that Successor Agency is granted a non-exclusive and perpetual license for any Documents and Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the Successor Agency. Successor Agency shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at Successor Agency's sole risk. 3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of Successor Agency, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Successor Agency's name or insignia or any publicity pertaining to the Services in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of Successor Agency, which may be granted or denied in its sole and absolute discretion. 3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. 3.5.5 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 3.5.6 Indemnification. Consultant shall defend (with legal counsel of Successor Agency's choice), indemnify and hold harmless the Successor Agency, all City Related Entities, and their respective officials, officers, employees, volunteers and agents from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence or 698/036753 0126 70575983 AN]1/14 -12- willful misconduct of Consultant, its officials, officers, employees, agents, subcontractors and subconsultants arising out of or in connection with the performance of the Services or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. Consultant shall defend, at Consultant's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against Successor Agency, all City Related Entities, and their respective directors, officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against Successor Agency, all City Related Entities, and their respective directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant shall reimburse Successor Agency, all City Related Entities, and their respective directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Successor Agency, all City Related Entities, and their respective directors, officials, officers, employees, agents or volunteers. 3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. 3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California without regard to conflict of law principles. Venue shall be in Orange County, California. 3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.10 Successor Agency's Right to Employ Other Consultants. Successor Agency reserves right to employ other consultants in connection with the Services. 3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the Successor Agency. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall 698/036753-0126 70575983.06/1 P 14 -13- be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to Successor Agency include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.5.14 Amendment: Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.5.16 Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties, except that the City of Fullerton is an expressed third party beneficiary of the rights and benefits granted to the Successor Agency, as specified in this Agreement. 3.5.17 Invalidity: Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, Successor Agency shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of Successor Agency, during the term of his or her service with Successor Agency, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of related federal, state, and local laws. 698/036753-0126 7057598.3 ON 11/14 -14- 3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. Successor Agency's Executive Director has the authority to execute this Agreement for the Successor Agency and the authority to enter into any and all amendments, modification, interpretations, and other written documents so long as the Successor Agency's costs and obligations under this Agreement are not materially increased or altered. 3.5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6 Subcontracting. 3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of Successor Agency. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. [Signatures on next page] 698/036753-0126 7057598.3.06/11/14 -15- IN WITNESS WHEREOF, Successor Agency and Consultant have executed this Agreement by and through the signatures set forth below. FULLERTON SUCCESSOR GOLD COUNTRY ESCROW AGENCY COMPANY By: .__ By: Exec uty e Dj'rector �,- ! / Name: V Title: Attest: [If Corporation, TWO SIGNATURES, President OR Vice President AND Secretary, AND CORPORATE SEAL OF CONTRACTOR REQUIRED] B4cc �r ency Clerk By: Name: Title: Approved as to Form: Successor Agency Legal Counsel 698/036753-0126 t 7057598.3 a06/11/16 IN WITNESS WHEREOF, Successor Agency and Consultant have executed this Agreement by and through the signatures set forth below. FULLERTON SUCCESSOR GOLD COUNT ES RO AGENCY COMPANY By: By: 0 7 Executive Director Name: Title: /Pfi✓ Attest: [if Corporation, TWO SIGNATURES, President OR Vice President AND Secretary, AND CORPORATE SEAL OF CONTRACTOR REQUIRED] By: Successor Agency Clerk By: Name: Title: Approved as to Form: By: — Successor Agency Legal Counsel 69SM16731 9126 7057598 i P001114 -16- t EXHIBIT "A" PECK OWNER PARTICIPATION AGREEMENT [Attached] 698/036753-0126 7057598.3.06/11/14 '17' OPMER PARTICIPATION AGREF�ENT By and Between The F=ERTON REDEVELOPMENT AGENCY and STEVEN PECK, as Trustee of the Steven Peck Inter Vfvos Trust 9/112/061334-0035/001 06/04/91 TABLE OF CONTENTS Pace SECTION 1. PURPOSE OF THIS AGREEMENT. . . . . . . . . . . . 2 SECTION2. DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1 Agency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.2 Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.3 CEQA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.4 City. . . . • . . . . . . . . . . . . . . . . . . 3 2.5 Consumer Price Index. . . . . . . . . . . . . . . . 3 2.6 Development Project Plans . . . . . . . . . . . . 3 2.7 Ellis Place Parking Parcel . . . . . . . . . . . 3 2.8 Effective Date. . . . . . . . . . . . . . . . . . . 4 2.9 Event(s) of Default. . . . . . . . 4 2.10 Evidence of Financial Capability. . . . . 4 2.11 Executive Director. . . . . . . . . . . . . . . . . . . 5 2.12 Force Majeure. . . . . . . . . . . . . . . . . . . . . . . . 5 2.13 Hazardous Substances. . . . . . . . . . . . . . 5 2.14 McDonald's Exchange Parcel . . . . . . . . . . . 5 2.15 Owner Participant. . . . . . . . . . . . . . . . 5 2.16 Parking Structure Parcel. . . . . . . . . . . . . 5 2.17 Participant . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.18 Project. . . . . . . . . . . . . . . . . . . 6 2.19 Project Certificate of Completion. . . . 6 2.20 Public Parking Covenant Termination Date. . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . 6 2. 21 Redevelopment Plan. . . . . . . . . . 6 2.22 Redevelopment Plan Expiration Date. . . 6 2.23 Sale Agreement. . . . . . . . . . . . . . . . . . . . . . . 6 2.24 Schedule of Performance. . . . . . . . . . . . . . 7 2.25 Site. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.26 Site Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 SECTION 3. PARTICIPANT REPRESENTATIONS AND WARRANTIES. . . . . . . . . . . . . . . . . . . 7 3.1 Participant Ownership of the Site. . . . 7 3. 2 Litigation. . . . . . . . . . . . . . I . . . . . . . . . . . . 7 3. 3 No Default. . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.4 No Violation. . . . . . . . . . . . . . . . . . . . . . . . . 7 3.5 Hazardous Substances. . . . . . . . . . . . . . . . . 8 3.6 No Possessory Interests. . . . . . . . . . . . . . 8 3.7 No Bankruptcy. . . . . . . . . . . . . . . . . . . 8 3.8 No Misrepresentation. . . . . . . . . . . . . . . . . 8 3.9 Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.10 Due Execution. . . . . . . . . . . . . . . . . . . . 8 3.11 No Extraneous Consideration. . . . . . . . . . 9 -i- SECTION 4. PARTICIPANT'S COVENANTS. . . . . . . . . . . . . . 9 4.1 Development of the Site. . . . . . . . . . . 9 4.1.1 Development in Accordance with Plans. . . . . . . . 9 4. 1. 2 Development Project Plans. . . . 9 4. 1. 3 Final Building Plans. . . . . . 9 4.1.4 Architect and Structural Engineer. . . . . . . . . . . . . . . . . 10 4.1.5 Evidence of Financial Capability. . . . • . . . 10 4. 1.6 Other GovernmentalPermits. . . 10 4. 1.7 Cost of Construction. . . . . . . . . 10 4.1.8 Construction Schedule. . . . . . . . 10 4.1.9 Liability Insurance. . . . . . . . . . 11 4.1.10 Casualty Insurance. . . . . . . . . . . it 4.1. 11 Workers' Compensation Insurance. . . . . . . . . . . . . . . . . . . . 12 4.1.12 Easements. . . . . . . . . . . . . . . . . . . . 12 4.1. 13 Rights of Access. . . . . . . . . . . . . 12 4. 1.14 Applicable Laws. . . . . . 12 4.1. 15 Prohibition Against Transfer. 12 4 .1. 16 Antidiscrimination During Construction. . . . . . . . . . 13 4 .1. 17 Antidiscrimination After Completion of the Project. . . . 13 4 .1.18 Antidiscrimination in Agreements. . . . . • . . . 14 4. 1. 18 .1 Clause for Deeds 14 4.1.18. 2 Clause for Leases. . 14 4 . 1. 18.3 Clause for Contracts 14 4.1. 19 Relocation Assistance. . . . . . . . 15 4.2 Use of Site. . . . . . . . . . . . . . . 15 4.2 .1 No Inconsistent Uses. . . . . . . . . 15 4.2 .2 First-Class Condition. . . . . 15 4.3 Duration of Participant's Covenants. . 15 SECTION 5. AGENCY REPRESENTATIONS AND WARRANTIES 16 5. 1 No Approvals. . . . . . . . . . . . . . . . . . . . . . . . . 16 5.2 Due Execution. . . . . . . . . . . . . . . . . . . . . . . . 16 SECTION 6. AGENCY COVENANTS. . . . . . . . . . . . . . . . . . . . . 16 6. 1 Agency Approvals. . . . . . . . . . . . . . . . . . . . . 16 6. 1. 1 Plans. . . . . . . . . . . . . . . . . . . 16 6. 1.2 City Assistance. . . . . . . . . 16 6. 1. 3 Evidence of Financial Capability. . . . . . . . 16 6.1.4 Architect and/or Structural Engineer. . . . . . . . . . . . . . . . . . . . . 16 6. 1.5 Assignments. . . . . . . . . . . 17 6. 1. 6 Project Certificate of -ii- Completion. . . . . . . . . . . . . . . . 17 6.1.7 Standards of Review. . . . . . . . . . 17 6.2 Parking and Street and Parkway Improvements. . . . . . . . . . . . 18 6.2. 1 Construction of Public Parking Facilities and Street and Parkway Improvements. . . . . . . . . . 18 6.2.2 Construction of Parking Structure. . . . . . . . . . . . . . . . . . . . 19 6.2.3 Parking variances. . . . . . . . . . . . 19 6.3 Indemnity. . . . . . . . . . . . . . . . . . . . . 20 6.4 Relocation Assistance. . . . . . . . . . . . . . . . 20 6.5 Lease Extension. . . . . . . . . . . . . . . . . . . 20 6. 6 Areas for Contractor Use. . . . . . . . . . . 20 6.7 Duration of Agency's Covenants. . . . . . . 20 SECTION 7. DEFAULTS. . . . . . . . . . . . . . . . . . . 21 7. 1 Participant Defaults. . . . . . . . . . . . . . . . . 21 7.2 Agency Defaults. . . . . . . . . . . . . . . . . . . . . . 22 7. 3 Notice of Default. . . . . . . . . . . . . . . . . . . . 22 SECTION S. REMEDIES. . . . . . . . . . . . . . . . . . . . . . 23 8. 1 Participant Remedies. . . . . . . . . . . . . . . . . 23 8. 1.1 Damages. . . . . . . . . . . . . . . . . 23 8.1.2 Specific Performance. . . . . . . . . 23 8.1.3 Right to Terminate. . . . . . . . . . . 23 8. 2 Agency Remedies. . . . . . . . . . . . . . . . . . 24 8.2.1 Performance by Agency. . . . . . . . 24 8.2.2 Damages. . . . . . . . . . . . . . . . . 24 8.2.3 Specific Performance. . . . . . . . . 24 8.2.4 Right to Terminate. . . . . . . 24 8.3 Rights and Remedies are Cumulative. . . 25 SECTION 9. GENERAL PROVISIONS. . . . . . . . . . . . . . . . . . . 25 9.1 Covenants Run With The Land. . . . . . . . . . 25 9. 2 Governing Law. . . . . . . . . . . . . . . . . . . . . . . . 25 9.3 Attorney's Fees. . . . . . . . . . . . 25 9. 4 Notices, Demands, and Communications Between the Parties. . . . . . . . . . . . . 25 9.5 Acceptance of Service of Process. . . . . 26 9.6 Conflicts of Interest. . . . 26 9.7 Nonliability of Agency officials and Employees. . . . . . . . . . . . . . 26 . . . . . . . . . . . . . . 9.8 Inspection of Books and Records. . . . . . 27 9.9 Fair Meaning. . . . . . . . . . . . . . . . . . . . . . 27 9.10 Titles and Captions. . . . . . . . . . . . . . . . . . 27 9. 11 Gender. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 9. 12 Modifications. . . . . . . . . . . . . . . . . . . . . . . . 27 -iii- 9.13 Merger of Prior Agreements and Understandings. . . . . . . . . . . . . . 27 9.14 No Third Parties Benefited. . . . . . . . . . . 27 9. 15 Counterparts. . . . . . . . . . . . . . . . . . . . . . . . . 28 9.16 Severability. . . . . . . . . . . . . . . . . . . . . . . . . 28 EXHIBIT "All LEGAL DESCRIPTION OF SITE EXHIBIT "B" SITE MAP EXHIBIT "C" LEGAL DESCRIPTION OF PARKING STRUCTURE PARCEL EXHIBIT "D" LEGAL DESCRIPTION OF MCDONALD'S EXCHANGE PARCEL EXHIBIT "E" SCHEDULE OF PERFORMANCE -iv- OWNER PARTICIPATION AGRF.F.rrRNT THIS PARTICIPATION AGREEMENT is entered into as of 1991, by and between The FULLERTON EVELOP ENT AGENCY, a public agency, and STEVEN PECK, as rustee of the Steven Peck Inter Vivos Trust. a -9r. I, TALE A. Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000, et sec• ) • H. Agency desires to implement the Redevelopment Plan for its Central Fullerton Redevelopment Project Area by providing for the major renovation of current structures on the Site, and by providing public parking on the Parking Structure Parcel, the Ellis Place Parking Parcel, and potentially other properties owned or to be acquired by Agency in the vicinity of the Site, all for the non-exclusive benefit of the Site and the Project . C. Participant has represented to Agency that: ( i) Participant (and a corporation wholly owned by Participant) is the owner of the fee interest in the Site, the Ellis Place Parking Parcel, and a portion of the Parking Structure Parcel (Assessor 's Parcel Numbers 9 and 10 on the Assessor's Map, Hook 29, Page 3, of the Official Records of the County of Orange) ; (ii) Participant is prepared to redevelop the Site in accordance with the requirements of Agency, provided the City will permit such redevelopment and provided that on conveyance of the interest of Participant and Participant ' s corporation in the Parking Structure Parcel and the Ellis Place Parking Parcel to the Agency, the Agency will covenant to utilize the same for parking for the benefit of the Site and the Project; and (iii) Participant qualifies as an Owner Participant. D. The existing private and public parking available to the Site is not adequate to justify the expenditure of funds contemplated herein for the redevelopment of the Site. The economic viability of redevelopment of the Site is dependent on the regular and convenient availability of adequate public parking accessible to the Site. 9/112/061334-0035/001 06/04/91 E. Agency intends to purchase the interest of Participant and Participant' s corporation in the Parking Structure Parcel and the Ellis Place Parking Parcel and construct .public parking thereon in order to provide public parking for businesses and properties within the Redevelopment Project Area described in Agency' s Redevelopment Plan, including adequate parking to enable Participant to redevelop the Site and construct the Project on the Site. Agency's purchase of the interest of Participant and Participant's corporation in the Parking Structure Parcel and the Ellis Place Parking Parcel is being negotiated under threat of condemnation under Agency's power of eminent domain. F. The City Council, by its approval of this Agree- ment, hereby determines, pursuant to Section 15.56.170 of the Municipal Code, that adequate off-site parking for the Site and Project will exist in the Parking Structure Parcel, the Ellis Place Parking Parcel, and other public parking facilities in the area. Accordingly, the City hereby exempts the Site and the Project if redeveloped in accordance with this Agreement from municipal off-street parking requirements that would otherwise apply. A G R E E M E N T NOW THEREFORE, in consideration of the promises and covenants contained herein, the above recitals, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: SECTION 1. PURPOSE OF THIS AGREEMENT. This Agreement and the Exhibits hereto are intended to effectuate the Redevelopment Plan for the Central Fullerton Redevelopment Project Area by providing for the development of the Project on the Site and by providing parking for the Site and the Project on the Parking Structure Parcel, the Ellis Place Parking Parcel, and potentially other properties owned or to be acquired by Agency in the vicinity of the Site. Participant has agreed to participate in the redevelopment of the Site by entering into this Agreement with Agency and by concurrently executing the Sale Agreement to sell to the Agency the Ellis Place Parking Parcel and the portion of the Parking Structure Parcel owned by Participant and Participant's corporation. The development of the Site and the Project pursuant to this Agreement, and the -2- fulfillment generally of this Agreement, are in the best interests of the City and the welfare of its residents, and consistent with the Redevelopment Plan, and are in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. SECTION 2 . DEFINITIONS. The following terms as used in this Agreement shall have the meanings given unless expressly provided to the contrary: 2.1 Acencv. The term "Agency" shall mean the FULLERTON REDEVELOPMENT AGENCY, a public body, corporate and politic, having its offices at 303 West Commonwealth Avenue, Fullerton, California 92632, and any assignee of, or successor to, the rights, powers, and responsibilities of Agency. 2.2 Agreement . The term "Agreement" or any reference to this "Agreement" shall mean this Owner Participation Agreement executed by and between Agency and Participant. 2.3 CEOA. The term "CEQA" shall mean the California Environmental Quality Act, as amended. 2.4 City. The term "City" shall mean the CITY OF FULLERTON, CALIFORNIA, a public body, corporate and politic, organized and existing under the laws of the State of California and having its offices at 303 West Commonwealth Avenue, Fullerton, California 92632. 2.5 Consumer Price Index. The term "Consumer Price Index" shall mean the Consumer Price Index (All Items-All Urban Consumers) for the Los Angeles-Anaheim-Riverside Area (1982-84 = 100) , or any successor index published by the United States Department of Labor, Bureau of Labor Statis- tics. 2.6 Development Proiect Plans. The term "Development Project Plans" shall mean the plans prepared by Participant and approved by Agency and City on June 4, 1991 (DP-90-21A) , which plans are consistent with the Conceptual Site Plan and which indicate all the proposed details of the construction of the Project, including without limitation the sizes, heights, and locations of all buildings., the building elevations, the colors, the materials, and the signage program. 2.7 Ellis Place Parking Parcel. The term "Ellis Place Parking Parcel" shall mean Assessor' s Parcel Number 21 -3- on the Assessor ' s Map, Book 29, Page 3 of the Official Records of the County of Orange, California. The Ellis Place Parking Parcel is owned by a corporation (Jupiter Meadows Enterprises, Inc. ) owned by Participant. Pursuant to the Sale Agreement, Participant 's corporation has agreed to sell the Ellis Place Parking Parcel to Agency. Agency contemplates the construction and maintenance of certain public parking facilities on the Ellis Place Parking Parcel as provided herein. 2.8 Effective Date. The term "Effective Date" shall mean the date first written above. 2.9 Event(s) of Default. The term "Event(s) of Default" shall mean those events listed in Sections 7 .1 and 7 .2 herein. 2.10 Evidence of Financial Capability. The term "Evidence of Financial capability" shall mean the following documents, together with any other documents reasonably requested by the Executive Director: (a) A current financial statement and/or other documentation reasonably satisfactory to Executive Director for the purpose of demonstrating that Participant has adequate funds committed to cover the difference, including working capital for a period of not less than twelve (12 ) months after the scheduled date for completion of construction; (b) A copy of the contract between Participant and his contractor for construction of the Project, certified by Participant to be a true and correct copy thereof; and (c) A corporate surety bond or bonds, irrevoc- able letter of credit, or other security instrument, approved as to form, content, and company by Executive Director and legal counsel of Executive Director 's choosing with Participant ' s contractor or contractors as principal(s) , in a penal sum not less than one hundred percent (100%) of the amount of the construction cost of the Project. Such security instrument shall guarantee completion of construction of the Project and the payment of wages for services engaged and bills con- tracted for materials, supplies, and equipment used in the construction of the Project and shall protect Participant and Agency from any liability, losses, or damages arising therefrom. Executive Director shall have the discretion to accept alternate security in his sole and absolute discretion. -4- 2.11 Executive Director . The term "Executive Direc- tor" shall mean the individual duly appointed to the position of Executive Director of the Agency. 2.12 Force MAleure. The term "Force Majeure" shall mean any war, insurrection, strike, lock-out, riot, flood, earthquake, fire, casualty, Act of God, act of the public enemy, epidemic, quarantine restriction, freight embargo, lack of transportation, governmental restriction, unusually severe weather, inability to secure necessary labor, mater- ials or tools, delay of any contractor, subcontractor or supplier, act of the other party, act or failure to act of City or any other public or governmental agency or entity (except that any act or failure to act of City shall not excuse performance by Agency) , or any other cause beyond the control or without the fault of the party claiming an extension of time to perform. 2.13 Hazardous Substances. The term "Hazardous Sub- stances" shall mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous or toxic substance, or other similar term, by any federal, state, or local environmental statute regulation, or ordinance presently in effect. 2.14 McDonald' s Exchange Parcel. The term "McDonald's Exchange Parcel" shall mean that certain real property located on Chapman Avenue east of Harbor Boulevard, in the City of Fullerton, which is more particularly described in Exhibit "D" attached hereto. Agency is currently negotiating with McDonald's Corporation to acquire the McDonald's Exchange Parcel. in the event Agency is successful in negotiating the acquisition of the McDonald' s Exchange Parcel, Agency contemplates constructing and maintaining certain public parking facilities on the McDonald's Exchange Parcel as provided herein. 2.15 Owner Participant. The term "Owner Participant" shall have the meaning given to it in the Redevelopment Plan, Agency's adopted rules and regulations governing the participation by owners in redevelopment of their properties, and the California Community Redevelopment Law (Health & Safety Code Section 33000, gt seg. ) . 2.16 Parking Structure Parcel. The term "Parking Structure Parcel" shall mean that certain real property adjacent to the Site, more particularly described in Exhibit "C" attached hereto, a portion of which Participant has agreed to sell to Agency pursuant to the Sale Agreement, and upon which Agency contemplates construction and maintenance of certain public parking facilities as provided herein. -5- 2.17 Participant. The term "Participant" shall mean Steven Peck, as Trustee of the Steven Peck Inter Vivos Trust, whose address for purposes of this Agreement is 501 Westchester Place, Fullerton, California 92632, and any legally permissible assignee or successor to the rights, powers, and responsibilities of Steven Peck hereunder. 2.18 Proiect. The term "Project" shall mean the construction upon the Site of a new restaurant to be named Angelo's 6 Vinci 's Cafe and other commercial uses, with not to exceed 18,000 square feet of total building area. Said restaurant and other commercial uses shall be constructed in accordance with the approved Development Project Plans and the Final Building Plans to be approved in accordance with this Agreement. 2. 19 Proiect Certificate of Completion. The term "Project Certificate of Completion" shall mean that certifi- cate issued by Agency to Participant upon written request by Participant and upon satisfactory completion of the Project. The Project Certificate of Completion shall be in a form so as to permit recordation in the Office of the Recorder of the County of Orange. 2.20 Public Parkins Covenant Termination Date. The "Public Parking Covenant Termination Date" shall have the meaning ascribed in Section 6.2.1. 2. 21 Redevelopment Plan. The term "Redevelopment Plan" shall mean the Redevelopment Plan for the Central Fullerton Redevelopment Project Area, which was adopted by Ordinance No. 2008 of the City Council of City on December 17, 1974, as amended by Ordinance No. 2597 on December 2, 1986. The Redevelopment Plan is incorporated herein by this reference and made a part hereof as though fully set forth herein. 2. 22 Redevelopment Plan Expiration Date. The term "Redevelopment Plan Expiration Date" shall mean November 26, 2019 . 2.23 Sale Agreement. The term "Sale Agreement" shall mean that Agreement of Purchase and Sale of Real Property and Joint Escrow Instructions concurrently executed by Agency and Participant and Jupiter Meadows Enterprises, Inc. relating to the sale by participant and Jupiter Meadows Enterprises, Inc. , to Agency of the Ellis Place Parking Parcel, a portion of the Parking Structure Parcel, and certain real property (the "Strip") described therein. -6- 2.24 Schedule of Performance. The term "Schedule of Performance" shall mean that schedule attached hereto as Exhibit "E" . 2.25 Site. The term "Site" shall mean that certain real property consisting of approximately 10,998 square feet of net land area (exclusive of existing dedicated rights-of- way and the grant of easement(s) to be made pursuant to Section 4.1.12 herein and the approved Development Project Plans) , more particularly described in Exhibit "A" and depicted on the Site Map. 2. 26 Site Man. The term "Site Map" shall mean the map attached hereto as Exhibit "B" . SECTION 3 . PARTICIPANT REPRESENTATIONS AND WARRANTIES. Participant hereby makes the following representations, covenants, and warranties for the benefit of Agency, and Agency's successors and assigns, and acknowledges that the execution of this Agreement by Agency has been made, in MATERIAL reliance by Agency on such representations and war- ranties: 3.1 Participant Ownership of the Site. As of the Effective Date, Participant represents that Participant is owner of fee title to the Site. 3.2 Litigation. To Participant's knowledge, there are no pending or threatened claims, allocations, or lawsuits of any kind, whether for personal injury, property damage, landlord-tenant disputes, property taxes, or otherwise, that could adversely affect the operation or value of the Site, nor is there any governmental investigation of any type or nature, pending or threatened, against or relating to the Site or the transactions contemplated hereby (other than those conducted by City and Agency) . 3.3 No Default. The execution and delivery of this Agreement will not constitute or result in any default or event that with notice or the lapse of time, or both, would be a default, breach, or violation of any lease, mortgage, deed of trust, or other agreement, instrument or arrangement by which Participant or the Site are bound or any event which would permit any party to terminate an agreement or accelerate the maturity of any indebtedness or other obligation. 3.4 No Violation. Subject to the City' s approval of off-site parking for the Site as contemplated by this -7- Agreement, to Participant's knowledge, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not violate any provision of, or require any consent, authorization, or approval under, any law or administrative regulation or any other order, award, judgment, writ, injunction, or decree applicable to, or any governmental permit or license issued to, Participant relating to the Site. 3.5 Hazardous Substances. Participant has received no notice of and has no knowledge of any Hazardous Substances (as hereinafter defined) on any part of the Site nor does Participant have any knowledge of any on-site spills, releases, discharges, or disposal of Hazardous Substances which have occurred on the Site during Participant 's ownership thereof, or are presently occurring, on any of the Site. 3.6 No Possessory Interests. Participant has the right of possession of the Site on the scheduled date of commencement of construction of the Project, free from any tenant leases, tenancies, licenses, or other similar occupancy agreements that could interfere with Participant's right to develop the Project. 3.7 No Bankruptcy. Participant has not filed or been the subject of any filing of a Petition under the Federal Bankruptcy Law or any insolvency laws, or any laws for the discharge of indebtedness or for the reorganization of debtors. 3.8 No Misrepresentation. No representation, warranty, or covenant of Participant in this Agreement, or in any document or certificate furnished or to be furnished to Agency pursuant to this Agreement, contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading. 3 . 9 Disclosure. Participant has disclosed all infor- mation concerning the Site of which Participant is aware which may materially affect the value of the Site and/or Participant's continued ability to utilize the Site as provided in this Agreement . 3.10 Due Execution. This Agreement has been duly exe- cuted by Participant and constitutes a valid, binding, and enforceable obligation of Participant. -8- 3.11 Ng Extraneous Consideration. Other than the concurrent sale by Participant and Participant's corporation to Agency of the Ellis Place Parking Parcel, a portion of the Parking Structure Parcel, and certain other real property (the "Strip") , as described in the Sale Agreement, Participant warrants that it has not paid or given to, and will not pay or give to, the Agency or City or any official or agent of the Agency or City any money or other consideration for obtaining this Agreement, except as expressly provided herein. SECTION 4. PARTICIPANT'S COVENANTS. 4.1 Development of the Site. 4.1 . 1 Development in Accordance with Plans. Provided the City issues a building permit in accordance therewith, Participant shall develop the Project in accordance with the approved Development Project Plans and the Final Building Plans to be approved in accordance with Section 4.1. 2 herein, including any changes thereto as may be subsequently approved in writing by both Participant and City/Agency. Notwithstanding the foregoing, Participant shall have no obligation to develop the Project unless it obtains a building permit therefor from the City, the required governmental approvals to develop and operate the Project, and the Agency covenants parking for the Site and the Project as provided in this Agreement. 4 .1.2 Development Prosect Plans. On or before the Effective Date of this Agreement, Participant has prepared and submitted to City and Agency for their approval the Development Project Plans and City and Agency have approved the same. 4.1. 3 final Building Plans. Participant shall submit to City for City's review and approval a complete set of Final Building Plans within the time set forth in the Schedule of Performance. The Final Building Plans shall be consistent with applicable code requirements and the approved Development Project Plans and shall be sufficient to obtain all necessary building permits required for the Project. Participant shall exercise reasonable diligence to obtain City' s approval of the Final Building Plans. In the event City requires any modifications or changes to the proposed Final Building Plans to meet applicable code requirements or to conform to the terms of the approved Development Project Plans, Participant shall make the necessary changes with reasonable diligence and resubmit them to City. -9- 4.1.4 Architect and Structural Encineer. Agency's Executive Director has previously approved the architect and structural engineer selected by Participant for the Project. if Participant desires to utilize any other architect or structural engineer on the Project at any time prior to Agency's issuance of its Project Certificate of Completion, Participant shall obtain the approval of Agency's Executive Director for the change. 4.1. 5 Evidence of Financial Capability. Within the time set forth in the Schedule of Performance, Participant shall submit to Executive Director Participant's Evidence of Financial Capability. The Evidence of Financial Capability shall demonstrate to Executive Director, in his reasonable discretion, that Participant has the financial resources and commitments necessary for the development of the Project in accordance with this Agreement. 4.1.6 Other Governmental Pgrmits. Partici- pant shall, at his own expense and before commencement of construction, rehabilitation, restoration, revitalization, or development of any buildings, structures, or other work of improvement upon the Site, secure or cause to be secured any and all permits and approvals which may be required by City or any other governmental agency affected by such construc- tion, development or work, including but not limited to necessary building permits and all approvals required under CEQA. 4 .1.7 Cost of Construction. Participant shall bear all costs of preparing and developing the Project and constructing all improvements on the Site, including but not limited to any and all costs for demolition and clearance of existing surface and sub-surface improvements inconsistent with the Project, architectural and engineering plans, preparation of the Site, costs associated with meeting applicable seismic standards, interim and permanent financ- ing, broker ' s and leasing commissions, and fees or charges for development and building. Participant shall be responsible to install and maintain a temporary water line to keep his existing restaurant in service during the course of construction of the Project. 4.1.8 Construction Schedule. Subject to delay occasioned by the City and/or the Agency and force majeure, Participant shall commence and complete construction of the Project within the times set forth in the Schedule of Performance. Once construction is commenced, Participant shall diligently pursue such construction to completion, and Participant shall not abandon such construction for more than -10- five (5) consecutive days, except when due to an event of Force Majeure. 4.1.9 Liability Insurance. Prior to the com- mencement of any construction by Participant on the Site, Participant shall furnish or cause to be furnished to Agency duplicate originals or appropriate certificates of bodily injury and property damage insurance policies in the amount of at least one Million Dollars ($1,000,000. 00) for death or injury to any person, Two Million Dollars ($2,000,000.00) for any occurrence, and Five Hundred Thousand Dollars ($500,000 .00) for property damage, naming the Participant, City, and Agency as additional insureds or co-insureds. All such insurance: ( i) shall be primary insurance and not contributory to or with any insurance maintained by City or Agency; ( ii) shall be with a carrier reasonably approved by Agency; and (iii) shall provide that the policy will not be cancelled or modified by the insurer or Participant unless there is a minimum of thirty ( 30) days' prior written notice to City and Agency. None of the above described policies shall require Participant to meet a deductible or self- insured retention amount of more than Ten Thousand Dollars ($10,000.00) (which amount shall be permitted to increase at a rate not to exceed the percentage increase in the Consumer Price Index after the Effective Date) unless approved in writing by 'Executive Director in his or her sole and absolute discretion. 4.1.10 Casualty Insurance. From the date of issuance of the Project Certificate of Completion until the Redevelopment Plan Expiration Date, Participant shall maintain and shall furnish or cause to be furnished to Agency duplicate originals or appropriate certificates of fire and extended coverage insurance policies including coverage for not less than ninety percent (90%) replacement value of the Project and not more than a $10,000 deductible or self- insured retention (which amount shall be permitted to increase at a rate not to exceed the percentage increase in the Consumer Price Index after the Effective Date) . All such insurance policies shall provide that the policy will not be cancelled or modified by the Insurer or Participant unless there is a minimum of thirty (30) days' prior written notice to City and Agency. In the event of total or partial destruction of the Project due to a cause for which Partici- pant is, or is required to be, covered by insurance, and subject to compliance with then-applicable building code requirements (but excluding any changed parking requirements) and the rights of any lender, Participant shall utilize the proceeds of such insurance and other necessary funds to restore the Project and the related on-site improvements and landscaping to substantially the same condition they were in -11- immediately prior to such destruction. Participant shall commence reconstruction as soon as reasonably practicable and shall diligently pursue such reconstruction to completion. 4.1.11 Workers ' Compensation Insurance. Participant shall furnish, or cause to be furnished, to Agency evidence reasonably satisfactory to Agency that any contractor with whom Participant has contracted for the performance of work on the Site carries appropriate workers' compensation insurance as required by law. 4. 1.12 Easements. Participant shall grant to Agency and City all necessary and appropriate easements for development of public improvements consistent with the approved plans for the Project and which do not interfere with operation of the Project on the Site, including but not limited to streets, rights of vehicular access, sidewalks, sewers, storm drains, and water improvements. 4.1.13 Rights of Access. Participant shall grant to Agency and its agents, employees or designees, the reasonable right of access to the Site, without charges or fees, at normal construction hours during the period of con- struction of the Project for any and all reasonable purposes. 4.1.14 Applicable Laws. Participant shall construct the Project in conformity with all applicable laws, including all applicable Federal and State labor laws. 4.1.15 Prohibition Against Transfer. Except as provided below, prior to the date Agency issues, or is required to issue, the Project Certificate of Completion, Participant shall not transfer or encumber the Site or any portion thereof or assign any of its rights or obligations under this Agreement without the prior written consent of Agency. Notwithstanding the foregoing, at any time, Partici- pant may transfer all or any portion of its rights in this Agreement, the Site or the Project to the following: (a) Any entity or entities owned or controlled by Participant; (b) Any partnership formed by Participant pursuant to which Participant retains operational and managerial control; (c) Any person or entity receiving such rights due to the death of Participant, pursuant to a testa- mentary device, or through the incapacitation (physical or mental) of Participant; -12- •A (d) Any trust for the benefit of Participant 's spouse, child, grandchild, or other family member, or for the benefit of a charitable purpose; (e) Any entity providing a mortgage, deed of trust, sale and leaseback, or other form of conveyance required for any reasonable method of financing the acquisition and development of the Site and the Project, including all direct and indirect costs related thereto; and (f) City or any other appropriate governmental agency for the formation of an assessment district, or the granting of easements or permits to facilitate the development of the Site. Except for assignments made pursuant to Section 4.1.15(e) , no assignment shall be effective unless and until the proposed assignee executes and delivers to Agency an agreement, in form satisfactory to Agency's attorney, assuming the obligations of Participant which have been assigned. Thereafter, Participant shall be relieved of all responsibility to Agency for performance of the obligations assumed by the assignee; provided, however, that Participant shall remain responsible for such obligations in the event of any transfer pursuant to Sections 4.1.15(a) through 4.1.15(f) . 4 . 1.16 Antidiscrimination Durino Construction. Participant, for itself and its successors and assigns, agrees that during the construction of the Project, Partici- pant will not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, ancestry, or national origin. 4.1.17 Antidiscrimination After Comoletion of the Proiect. Participant covenants and agrees, for itself, its successors, its assigns and every successor in interest to the Site, or any part thereof, that it: (i) shall not discriminate against any person, or group of persons, on account of sex, race, color, creed, marital status, religion, handicap, national origin, or ancestry in the enjoyment of the Site; and (ii) shall not establish or permit any such discriminatory practice or practices with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Site or any portion thereof. The covenant in this Section 4. 1. 18 shall run with the land and shall remain in effect in perpetuity. -13- 4.1.18 Antidiscrimination in Agreements. Participant shall not restrict the rental, sale, or lease of any portion of the Site on the basis of race, color, creed, religion, sex, marital status, ancestry, or national origin of any person. The covenants in this Section 4.1.18 shall run with the land and shall remain in effect in perpetuity. Any and all agreements relating to the rental, sale, or lease of the Site, or any portion thereof, shall contain the following nondiscrimination or nonsegregation clauses (or clauses substantially similar thereto) : 4. 1.18. 1 Clause for Deeds. "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself or herself, or any persona claiming under or through him or her, establish or permit any such practice or prac- tices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." 4.1.18.2 Clause for Leases. "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the land herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein leased. " 4. 1.18. 3 Clause for Contracts. "There shall be no discrimination against or segregation of any persons or group of persons on account of race, color , creed, -14- religion, sex, marital status, ancestry, or national origin in the sale, lease, transfer, use, occupancy, tenure, or enjoyment of land, nor shall the transferee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selec- tion, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees or vendees of land. " 4.1.19 Relocation Assistance. Participant waives any claims that he, any entities owned or controlled by him, and his successors and assigns may have to receive relocation assistance or benefits arising out of the work to be performed pursuant to this Agreement. 4.2 Use of Site. 4.2.1 No Inconsistent Uses. Participant covenants and agrees, for itself, its successors, its assigns, and every successor in interest to the Site, or any part thereof, that for the period beginning on the Effective Date and ending on the Redevelopment Plan Expiration Date, Participant and such successors shall not devote the Site to uses inconsistent with the Redevelopment Plan, the applicable zoning restrictions, and the approved Project plans. 4.2. 2 First-Class Condition. Participant covenants and agrees, for itself, its successors, its assigns, and every successor in interest to the Site, or any part thereof, that for the period beginning on the Effective Date and ending on the Redevelopment Plan Expiration Date, Participant and such successors shall maintain the Project and all related on-site improvements and landscaping on the Site in first class condition and repair (and, as to land- scaping, in a healthy condition) and in accordance with the approved Project plans and all other applicable laws, rules, ordinances, orders, and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having jurisdiction and all their respective departments, bureaus, and officials. During such period, Participant and such successors shall not permit any accumulation of weeds, rubbish, or debris on the Site and Participant and such successors shall not permit any unlawful use or public or private nuisance to be maintained on the Site. 4. 3 Duration of Participant's Covenants. After issuance of the Project Certificate of Completion, or the accrual of the right to its issuance pursuant to Section 6.4.6, all of the terms, covenants, agreements, or conditions set forth in this Section 4 shall cease and terminate, except as follows: -15- (a) Sections 4.1.7, 4.1.9, 4.1.10, 4.1.12, 4.1.19, 4.2.1, and 4. 2. 2 shall be binding upon Participant until the Redevelopment Plan Expiration Date. (b) Sections 4.1.17 and 4.1. 18 shall be binding upon Participant in perpetuity. SECTION 5. AGENCY REPRESENTATIONS AND WARRANTIES. Agency hereby represents and warrants for the benefit of Participant, and Participant' s successors and assigns, that the following facts are true as of the execution of this Agreement: 5.1 No Approvals. No approvals or consents not here- tofore obtained by Agency are necessary in connection with the execution of this Agreement by Agency or with the performance by Agency of Agency's obligations hereunder . 5.2 Due Execution. This Agreement has been duly exe- cuted by Agency or its duly authorized officers or agents and constitutes a valid, binding, and enforceable obligation of Agency. SECTION 6. AGENCY COVENANTS. 6.1 Agency Approvals. 6. 1.1 Plans. Agency shall approve or disapprove of all the plans, drawings, and related documents required to be submitted by Participant to Agency within the time periods set forth in the Schedule of Performance. 6.1. 2 City Assistance. If Participant' s Final Building Plans are acceptable to Agency and meet applicable code requirements, Agency shall provide reasonable assistance to Participant, at no expense to Agency, in ob- taining City's approval of such Final Building Plans; provided, however , Agency does not warrant or represent that such approval shall be obtained. 6.1. 3 Evidence of Financial Capability. Executive Director shall approve or disapprove Participant 's Evidence of Financial Capability within the time period set forth in the Schedule of Performance. 6.1. 4 Architect and/or_ Structural Engineer. Agency has approved the Architect and/or Structural Engineer -16- (or proposed replacement thereto) submitted by Participant to Agency. 6.1. 5 Assionments . In considering whether it will grant approval to any transfer or assignment by Partici- pant pursuant to Section 4.1 . 15, Agency shall consider factors such as: (i) the financial strength and capability of the proposed assignee to perform Participant ' s obligations hereunder; and (ii) the proposed assignee' s experience and expertise in the planning, financing, development, ownership, and operation of similar projects. 6.1 . 6 Project Certificate of Completion. Upon written request by Participant, and upon satisfactory completion of the Project, Agency shall issue to Participant a Project Certificate of Completion. The Project Certificate of Completion shall be, and shall so state, a conclusive determination of satisfactory completion of the Project required by this Agreement, and of full compliance with the terms of this Agreement relating to commencement and comple- tion of the Project. After the date Participant is entitled to issuance of the Project Certificate of Completion, and notwithstanding any other provision of this Agreement to the contrary, any party then owning or thereafter purchasing, leasing, or otherwise acquiring any interest in the property covered by said Project Certificate of Completion shall not (because of such ownership, purchase, lease, or acquisition) incur any obligation or liability under this Agreement for which the Project Certificate of Completion is issued, except that such party shall be bound by the covenants that survive issuance of the Project Certificate of Completion, as set forth in Section 4. 3 hereof. If Agency refuses or fails to furnish the Project Certificate of Completion for the reason that specific items or materials for landscaping are not available, Agency shall issue the Project Certificate of Completion upon the posting by Participant with Agency of a cash deposit or irrevocable letter of credit (in form acceptable to Agency) in an amount representing the fair value of the work not yet completed. The Project Certificate of Completion is not a notice of completion as referred to in California Civil Code Section 3093. 6.1.7 Standards of Review. Agency approval(s) under this Section 6.1 shall not be unreasonably withheld, conditioned, or delayed. Any disapproval by Agency shall state in writing the reasons for disapproval and the changes which Agency requests to be made. Such reasons and such changes must be consistent with any items previously approved hereunder. -17- 6.2 Parking and Street and Parkway Improvements. 6. 2.1 Construction of Public Parking Facili- ties and Street and Parkway Imorovements. Upon Agency' s acquisition of the Ellis Place Parking Parcel and Participant 's interest in the Parking Structure Parcel pursuant to the separate Sale Agreement being entered into by and between Agency, Participant, and Participant ' s corporation concurrently with this Agreement, Agency, at no expense to Participant and without cost or assessment against the Site or the Project, shall diligently commence and complete construction of: ( i) a minimum 32-space surface parking lot on the Ellis Place Parking Parcel; ( ii) a temporary surface parking lot on the Parking Structure Parcel with a minimum of 110 parking spaces; and (iii) street and parkway improvements on the south side of Ellis Place from Harbor Boulevard to the Parking Structure Parcel. In addition, contingent upon Agency's acquisition of the McDonald' s Exchange Parcel, Agency shall exercise reasonable diligence to commence and complete construction of an additional surface parking lot with a minimum of 30 spaces on said parcel. All such parking shall be developed within the times set forth in the Schedule of Performance. Subject to Section 6. 2 . 2 herein and the balance of this Section 6. 2. 1, once constructed, such parking spaces shall be regularly and conveniently available to the public generally, including customers and invitees of Participant's restaurant and Project, until the earliest of the following dates (the "Public Parking Covenant Termination Date" ) : ( i ) five ( 5) years after the date that the building to be constructed by Participant on the Site (as the same may be repaired, improved, reconstructed, or replaced from time to time) is demolished and cleared from the Site and construction has not commenced on a new or replacement building; or (ii) five ( 5) years after the date that the business(es) on the Site is(are) discontinued and no new business(es) is(are) opened; or ( iii) fifty (50) years after the date the Project Certificate of Completion is issued. The parking spaces shall be public spaces, available to, but not reserved exclusively for , the use of Participant, its successors and invitees as to the Site until the aforesaid date. Agency and City shall retain full regulatory authority over all parking spaces, including but not limited to hours of operation, maximum time limits , fees, and charges, allocation of spaces to comply with applicable laws, rules, and regulations (such as laws requiring spaces for handicapped parking) , and temporary removal of spaces for repair, alteration, mainte- nance, and restriping, provided parking shall be provided on nondiscriminatory terms to Participant, its successors and invitees. Agency shall ensure that hourly parking restric- tions will not be in effect during holidays and weekends for -18- the parking required to be constructed and maintained by Agency pursuant to this Agreement and Agency shall exercise reasonable diligence to cause the Traffic Commission and City Council to ensure that hourly parking restrictions will not be in effect during holidays and weekends for the public parking lot east of Harbor Boulevard, south of Chapman Avenue and west of Pomona Avenue. In addition, Agency shall have the right to reconfigure the parking spaces, to construct non-parking improvements on any of the properties on which parking spaces are to be maintained, to transfer some or all of the required minimum number of spaces from one property or parcel to another property or parcel (and to transfer from the transferor site to the transferee all or part of the covenants and restrictions that would Dtherwise apply to the transferor site) , and to replace some or all of the surface parking spaces with a parking structure and/or subsurface parking, provided that the required minimum number of 142 public parking spaces is maintained on a permanent basis (excluding the period of construction or reconstruction) on one or more of the properties subject to this Section 6.2.1. 6.2.2 Construction of Parking Structure. At such time as the renovation of the Fox Theatre (Assessor ' s Parcel No. 20 on the Assessor ' s Map, Book 29, Page 3 of the Official Records of the County of Orange, California) commences, Agency shall begin, and diligently prosecute to completion, the construction of a parking structure on the Parking Structure Parcel, which parking structure will accom- modate at least 200 vehicles. When completed, parking spaces in said parking structure shall replace the minimum number of temporary at-grade spaces to be provided pursuant to Section 6.2.1 shall also be made available for the use of Partici- pant, its successors, and invitees to the Site in the same manner and for the same term as provided in Section 6.2.1 herein. During the period of construction of the Parking Structure, Agency shall exercise its best efforts to provide temporary public parking for Participant ' s restaurant (either the existing restaurant located in the Fox Theater building adjacent to the Site or the new restaurant to be located on the Site) , at one or more of the following areas: (i ) the west end of the Parking Structure Parcel; ( ii) the Ellis Place Parking Parcel; and ( iii ) the McDonald ' s Exchange Parcel. 6.2. 3 Parking Variances . Except as provided in the next sentence herein, Agency covenants that, after the Effective Date of this Agreement and for as long as the Project continues to be maintained and continuously operated in accordance with this Agreement, the Agency shall not grant and the Agency warrants and represents that it shall cause the City not to grant any variances or exemptions to other -19- lots or parcels within the block bounded by Harbor Boulevard, Chapman Avenue, Pomona Avenue, and Ellis Place reducing the number of off-street parking spaces required. Notwith- standing the foregoing, Agency shall be permitted to grant and to authorize the City to grant a variance of not more than five (5) parking spaces in order to accommodate the Agency's acquisition of the McDonald's Exchange Parcel. 6.3 indemnity. Agency shall indemnify, defend, and hold Participant harmless from any damage caused or liability arising out of its exercise of its rights pursuant to Section 4.1.13 (access to Site) . 6.4 Relocation ,Assistance. As between Agency and Participant, and without intending to acknowledge any legal liability to third parties, Agency agrees to be responsible for, and to hold Participant harmless against, any third party claims for relocation assistance or benefits that may arise out of the work to be performed pursuant to this Agreement. 6.5 Lease Extension. Upon the execution of this Agreement, Agency shall exercise reasonable diligence in attempting to obtain from Edward Lewis, Participant's landlord at its existing restaurant location, an extension of Participant's lease until February 14, 1992, and a propor- tionate rental reduction for vacating the backstage area of the Fox Theatre during its seismic rehabilitation. Nothing in this Section 6. 5 shall make Agency liable to Participant for the failure to obtain said extension or reduction in rental. 6.6 Areas for Contractor Use. During the period of construction of the Project, the rehabilitation of the Fox Theatre, the construction of the temporary surface parking lot on the Parking Structure Parcel, and the construction of the parking structure on the Parking Structure Parcel, Agency will exercise its best efforts to ensure that the following areas are available for the use of the general and subcon- tractors working on such projects: (i) Project contractors, on the portion of Ellis Place immediately north of the existing liquor store location; ( ii) theatre contractors, on the McDonald' s Exchange Parcel (assuming that Agency has acquired the same) and a portion of the Parking Structure Parcel immediately to the east of the theatre; and ( iii) parking structure contractors, on a portion of Ellis Place along the north side of the Parking Structure Parcel. 6.7 Duration of Agency ' s Covenants. After issuance of the Project Certificate of Completion, or the accrual of the right to its issuance pursuant to Section 6. 1.6, all of -20- the terms, covenants, agreements , or conditions set forth in this Section 6 shall cease and terminate, except that Sections 6. 2.1, 6. 2.2, 6. 2. 3, 6. 3, and 6.4, shall be binding upon Agency until the Public Parking Covenant Termination Date referenced in Section 6. 2.1 . SECTION 7. DEFAULTS. 7.1 Participant Defaults. The occurrence of any one or more of the following events shall constitute an Event of Default by Participant hereunder : 7.1. 1 Participant fails to observe or perform any term or provision of this Agreement and such failure is not cured to Agency's reasonable satisfaction within thirty ( 30) days after Agency gives Participant written notice identifying such failure; provided, if such default cannot be cured within thirty ( 30) days even with the exercise of due diligence, Participant shall not be deemed in default if it commences to cure within such thirty (30) day period and continues diligently to effect such cure. 7. 1. 2 Participant fails to timely obtain all required permits and approvals for the Project which shall be determined .in the sole and absolute discretion of Agency; 7.1. 3 Participant makes or delivers to Agency any statement, report, financial statement, or certificate that is not true or correct in any material respect; 7.1. 4 Participant applies for the appointment of a receiver , trustee, or custodian for any of Participant ' s assets; 7. 1. 5 Participant files a petition under any section or chapter of the Bankruptcy Code or any similar law or regulation; 7 . 1 .6 Participant makes an assignment for the benefit of his creditors; 7 . 1.7 Subject to events of force maieure, Participant ceases to conduct his business substantially as now conducted (except for the period of time during the relocation of the restaurant - not to exceed six (6) months) ; 7 .1.8 Participant is enjoined, restrained, or in any way prevented by court order from conducting all or any material part of his business affairs; -21- 7 .1.9 A petition under any section or chapter of the Bankruptcy Code or any similar law or regulation is filed against Participant, and such injunction, restraint, or petition is not dismissed within ninety (90) days after the entry or filing thereof; 7 .1.10 A notice of lien, levy, or assessment is filed of record with respect to all or any of Participant 's assets by the United States, or any department, agency or instrumentality thereof, or by any state, county, municipal, or other governmental agency, or if any taxes or debts owing at any time hereafter to any one of these becomes a lien or encumbrance upon any of Borrower 's assets or the Site and the same is not released within ninety (90) days after the same becomes a lien or encumbrance; provided that Participant shall have the right to contest in good faith and by appropriate proceedings any such lien, levy or assessment if Participant provides Agency with a bond or indemnity satisfactory to Agency assuring the payment of such lien, levy, or assessment; 7.1. 11 Participant becomes insolvent or admits in writing his inability to pay its debts as they mature; or 7 .1.12 Any of Participant 's representations and warranties set forth in Section 3 of this Agreement is untrue or materially misleading. 7 . 2 Agency Defaults. The occurrence of any one or more of the following events shall constitute an Event of Default by Agency hereunder: 7 .2. 1 Agency fails to observe or perform any term of provision of this Agreement and such failure is not cured to Participant's reasonable satisfaction within thirty (30) days after Participant gives Agency written notice identifying such failure; 7 . 2 . 2 Agency makes or delivers to Participant any statement, report, or certificate that is not true or correct in any material respect; or 7. 2. 3 Any of Agency's representations and warranties set forth in Section 5 of this Agreement are untrue or materially misleading. 7. 3 Notice of Default. The lion-defaulting party shal). give written notice of any default in this Section 7 to the defaulting party, clearly specifying the default. Copies of any notice of default given to the defaulting party shall also be given to any permitted lender requesting such notice. -22- Except as required to protect against further damages, and subject to applicable cure periods, the non-defaulting party may not institute proceedings against the defaulting party until thirty ( 30) days after giving such notice. Any failure or delay in giving such notice or in asserting any of either party's rights and remedies as to any default shall not constitute a waiver of any default, nor shall it change the time of default, nor shall it deprive either party of its rights to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. SECTION S. REMEDIES. In addition to any other rights or remedies set forth in this Section 8, either party may institute legal action to cure, correct, or remedy any default, to recover damages for any default, or to obtain specific performance and any other remedy consistent with the purposes of this Agreement. Such legal actions must be instituted and maintained in the Superior Court of the County of Orange, State of California, or in any other appropriate court in that county. 8. 1 Participant Remedies . 8.1.1 Damages. Subject to any applicable cure periods and the general right to notice provided for in this Agreement, upon a default or breach of this Agreement by Agency, Participant may bring an action for damages proxi- mately caused thereby. 8.1. 2 Specific Performance. Subject to any applicable cure periods and the general right to notice provided for in this Agreement, upon a default or breach of this Agreement by Agency, Participant may bring an action for specific performance of this Agreement or any term or provision hereof. 8.1. 3 Right to Terminate. In the event that, prior to Participant 's commencement of construction of the Project, Participant is not in default under this Agreement and: (i) Agency commits a material default hereunder and fails to cure such default within the time provided in Sections 7.2. 1 and 7. 3; or ( ii ) Participant is unable, after and despite its exercise of best efforts, to timely obtain all required governmental approvals for development and operation of the Project; or (iii ) Participant provides evidence reasonably satisfactory to Agency' s Executive Director that the City or other governmental agencies with jurisdiction over the Site and the Project have imposed -23- changes and corrections on Participant ' s Final Building Plans ( in addition to those of which Participant has been notified as of May 29, 1991) with a cumulative cost in excess of One Hundred Thousand Dollars ($100 ,000.00) ; then, in such event, Participant may deliver a thirty (30) day written notice of termination to Agency and, as to clauses ( i) and (ii ) , if the applicable default or condition has not been satisfied (or waived by Par=icipant) within said time period, this Agreement shall terminate and neither party shall have any further rights against or liabilities to the other (except Participant reserves its rights under Section 8.1 .1 if Agency is in default) . 8. 2 Agency Remedies . 8. 2. 1 Performance by Agency. In the event that Participant breaches any of the covenants contained in Section 4 . 2. 2 relating to the failure of Participant to appropriately maintain and preserve the improvements on landscaped areas located on the Site, then Agency, in addition to whatever other remedy it may have hereunder or at law or in equity, shall have the right to enter upon the Site and perform or cause to be performed all such acts and work reasonably necessary to cure the default and perform all acts and work reasonably necessary to preserve and maintain the improvements and landscaped areas on the Site. In the event that Agency shall perform any such work, Agency shall have the right to attach a lien on the Site, or to assess the Site, in the amount of the expenditures arising from such work. The costs of such work, including a fifteen percent (158) administrative charge, shall be promptly paid by Participant to Agency upon demand. 8. 2. 2 Damages. Subject to any applicable cure periods and the general right to notice provided for in this Agreement, upon a default or breach of this Agreement by Participant, Agency may bring an action for damages proxi- mately caused thereby. 8 . 2. 3 Specific Performance. Subject to any applicable cure periods and the general right to notice provided for in this Agreement, upon a default or breach of this Agreement by Participant , Agency may bring an action for specific performance of this Agreement or any term or provision hereof. 8. 2. 4 Right to Terminate. In the event that, prior to Participant' s commencement of construction of the Project , Agency is not in default under this Agreement and: (i ) Participant commits a material default hereunder and fails to cure such default within the time provided in -24- Sections 7.1.1 and 7.3; or ( ii) Participant fails to obtain any of the required approvals for the Project referenced herein; then, in such event, Agency may deliver a thirty ( 30) day written notice of termination to Participant and, if the applicable default or condition has not been satisfied (or waived by Agency) within said time period, this Agreement shall terminate and neither party shall have any further rights against or liabilities to the other (except Agency reserves its rights under Section 8.2 .2 if Participant is in default) . 8.3 Rights. and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties hereto are cumulative, and the exercise by any party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by another party. SECTION 9. GgNERAL PROVISIONS. 9.1 Covenants Run With The Land. All covenants, conditions, restrictions, representations, reservations, rights, interests , and privileges created by this Agreement shall be appurtenant to, for the benefit of, and shall run with the land and each part thereof and interest therein, and shall be binding upon and a burden against the Site, Participant, and its successors and assigns acquiring any right, title, or interest in the Site, and upon and against the Parking Lot Parcel, Agency and its successors and assigns acquiring any right, title or interest in the Parking Lot Parcel. 9.2 Governing Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 9.3 Attorney' s Fees. In the event of litigation between the parties arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys ' fees and other costs and expenses incurred in addition to whatever other relief to which it may be entitled. 9.4 Notices. Demands, and communications Between the Parties. Formal notices, demands, and communications between Agency and Participant shall be sufficiently given if: (i) personally delivered; (ii) delivered by overnight courier (acknowledged by receipt) ; or (iii) dispatched by registered -25- or certified mail, postage prepaid, return receipt requested, to the addresses set forth below: If to Participant: STEVEN PECK, as Trustee of the Steven Peck Inter Vivos Trust 501 Westchester Place Fullerton, CA 92632 With a copy to: Mitchell, Silberberg & Knupp 11377 W. Olympic Boulevard Los Angeles, CA 90064 Attn: Marvin Leon, Esq. If to Agency: FULLERTON REDEVELOPMENT AGENCY 303 West Commonwealth Avenue Fullerton, CA 92632 Attn: Executive Director With a copy to: Rutan & Tucker 611 Anton Blvd. , Suite 1400 Costa Mesa, CA 92626 Attn: Jeffrey M. Oderman, Esq. All notices shall be deemed to be received as of the earlier of actual receipt by the addressee thereof or the expiration of forty-eight (48) hours after depositing in the United States Postal System in the manner described in this Section. 9. 5 AcceRtance of Service of Process. In the event that any legal action is commenced by Participant against Agency, service of process on Agency shall be made by personal service upon Executive Director or the Secretary of Agency, or in such other manner as may be provided by law. In the event that any legal action is commenced by Agency against Participant, service of process on Participant shall be made by personal service upon Participant or in such other manner as may be provided by law, and shall be valid whether made within or without the State of California. 9. 6 Conflicts of Interest . No member, official, or employee of Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. 9.7 Nonliability of Agency Officials and Employees. No member, official, employee, or consultant of Agency or City shall be personally liable to Participant, or any successor in interest of Participant, in the event of any -26- default or breach by Agency or for any amount which may become due to Participant or to its successor, or on any obligations under the terms of this Agreement. 9.8 inspection of _Books and Record@. Agency shall have the right at all reasonable times to inspect the books and records of Participant pertaining to the Site as perti- nent to the purposes of this Agreement. Participant also has the right at all reasonable times to inspect the books and records of Agency pertaining to the Site as pertinent to the purposes of the Agreement. 9. 9 Fair Meaning. This Agreement shall be construed according to its fair meaning and as if prepared by each respective party hereto. 9.10 Titles and Captions. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. 9.11 Qgader. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates. 9. 12 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. 9.13 Merger of Prior Agreements and Understandingg. With the exception of the Sale Agreement entered into by and between Agency and Participant on or before the Effective Date (which agreement addresses, inter alfa, Participant's sale to Agency of the Parking Lot Parcel and a portion of the property on which the parking structure is to be located) , this Agreement and all documents incorporated herein contain the entire understanding among the parties hereto relating to the transactions contemplated herein and all prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged herein and shall be of no further force or effect. 9.14 No Third Parties Benefited. This Agreement shall create no other third party beneficiary rights or any other rights in favor of any persons, firms or corporations This Agreement is for the sole use and benefit of the parties hereto and is not for the use or benefit of any other person or entity. -27- 9.15 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 9.16 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If, however, any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first written above (the "Effective Date" ) . FULLERTON REDEVELOPMENT AGENCY ( "Agency" ) By; W v Chairman ATTEST: mac/ Secretary APPROVED AS TO FORM: RUTAN & TUCKER By: Jeffrey M. O erman, Esq. Attorneys for the Fullerton Redevelopment Agency STEVEN PECK INTER VIV TRUST ( "Particip nt") By: eck, -28- 9.15 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and .all of which together shall constitute one and the same instrument. 9.16 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If, however, any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first written above (the "Effective Date" ) . FULLERTON REDEVELOPMENT AGENCY ( "Agency") By: Chairman ATTEST: Secretary APPROVED AS TO FORM: RUTAN & TUCKER By: , J r y M O erman, Esq. A t rneys for the Fullerton Redevelopment Agency STEVEN PECK INTER VIVOS TRUST ( "Participant" ) By: Steven Peck, Trustee -28- EXHIBIT "A" LEGAL DESCRIPTION OF SITE TM North 100.00 tat of Lt 1 at the Central A649tlon L eM City at fallsrta, 090047 of Camp. lasts of Oslitereta, on a may wearied is bean 7, POP& 7 004 l K N9aelisaa00 NSP, Seards at aid Stamp County, ahitaefa. . orolNalro alolrlou d.. Nara SOM tat, the South 1.00 tat and aha vase 10.00 tat thereat. ALO EMOT O U1117209 all that parties 4*4 Nara+roatly K the teltaviat Maertbad flat N1010111N/ at the 94ac604tian at the South lies of ail North 10.00 bet Utah the Nat Use of ail Vast 10.00 Sa0i theles, slant said South lies Somberly 11.00 bat be the =a MINI Or N1onomi eMsa. 141 a """ 1W twaweterly to a pia It 8614 an lies of ahs Yat 10.00 tat distant •11M said Sat 1990 Swiderly 11.00 ba tree the POINT OF 311101110100 aid polar hetet els poor or X1110. ngnv=N TxUmw a re•aalviw "Scant sed rf t•st•aq for pedestrir purposes along Berea wA ahrouth e90 South 5.00 tat of de Garth 01.00 bat of Said W 1. Page 1 of 1 EXHIBIT "A° TO OWNER PARTICIPATION AGREEMENT EXHIBIT 6 Site Map NAAIdI t_ We �� s-`------------------------------------------- ------ ----- ' N� \ \ !� wC N 111 •• f \ T \ t \ i -- i 39 s � ■ J ` r a ti T-------------------------- POYONA- AKr4R - - _---- EXHIBIT "C" LEGAL DESCRIPTION OF PARKING STRUCTURE PARCEL THE LAND REFERRED TO HEREIN IS 81TUATED IN THE STATE OF CALIFORNIA] COUNTY OF ORANGE, CITY OF FULLERTON AND IB DESCRIBED AS FOLLONIS PARCEL A LOTS 2 AND 3 OF THE J. E. ELLIS' SUBDIVISION AS SHOWN ON A MAP THEREOF RECORDED IN SOCK It PAGE 39p MISCELLANEOUS MAPt0 RECORDS L OF SAID ORAE COUNTY$ PARCEL B THAT PORTION OF THE SOUTH 3 FEET OF ELLIS AVENUE ADJOINING LOTS 2 AND 3 ON THE NORTH AS VACATED AND ABANDONED BY RESOLUTION OF THE BOARD OF TRUSTEES OF THE CITY OF FULLERTON ON SEPTEMBER 28o 19230 A CERTIFIED COPY OF NHICH RESOLUTION WAS RECDRDRD FiBRUARV 4. 19371 IN BOOK 9731 PAGE 1131 OFFICIAL RECORDSe IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORA14M COUNTY) AND RECORDED SEPTEMBER 131 1939) IN BOOK 10129 PAOE' 2400 OFFICIAL RSCORDSO IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY. PARCEL C� THE FORTE RAW (SORTS 1/9) Of TEE EAST ULF (EAST 1/0 AND TEE MOM 18 PRT 07 THE' SOOTS RALF (80UTE 1/9) OF TEE BAST RALF (EAST 1/9) OF LOT 9 OF CENTRAL ADDITION, BOOK 7 PAORS 7 AND $ OT NI80ELLANNOOS NAPS REOORDED IN TEE OFFICE OP TEE COUNTY RECORDER or sAry COUNTY. EXCEPTING TEEREPRON TES NORTHERLY 97.00 FEET AS GRANTED TO THE CITY Of FULLERTON BY DEED RECORDED AUGUST 18, 1919 IE BOOK 341 PAGE 309 OF DEEDS, REOORDS Of SAIij ORANGE COUNTY. PARCEL D THE FORTE RALF OF TEE WEST RALF OF LOT 9 OF CENTRAL ADDITION. AS SHOWN ON A MAP RECORDED IN BOOK 7, PAGES 7 AMD S OF NI8CELLANE0U8 NAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING TNEREPRON THE NORTHERLY 97.00 PEST AS GRANTED TO THE CITY Of FULLERTOS BY DIED RECOROBD JULY 28, 1019 IN BOOK 941, PAGE 99 OF DEED$ RECORDS OF SAID ORANGE COUNTY, Page 1 of 1 EXHIBIT "C" TO OWNER PARTICIPATION AGREEMENT EXHIBIT "D" LEGAL DESCRIPTION OF MCDONALD S EXCHANGE PARCEL ALL TMAT OSRTAIN L M BITOATID IM alt BUTS Of CALI/ORM . COM Of OBAMOS, CITY Of IUIimcm, DZICRIBID Af 10LLOV1: fARCQ, t- Tim W&BT CNN-MALS of silt VBIT ONI.w► z of TMt am on-MALS a LOT 1 Of TRE "CENTRAL VWTIMP. A@ BMW OM A NW TNtREOf @W=0 W 3M 7. M= 7 AND f, NI@ LIANIW@ MALI, ncoRDt Of @AID =A,= COOMTY. TMAICSfiliq ERE"= Tm Vest 7 nn. IARCXL 1: A RICO Of VAT M I Me$ AMD SCiLIS OVZR TMS VW 7 ItfY Of TMs slam ONS-NAil Of LOT 1 Of "=M& ADDITION`. AS IN= ON A 1W TN MM no=n IM D00@: 7, FAM 7 AMD f, NIiCMJAM M We. MECODD@ W @AID ORAMI COMM# @AID 110T Of WAY MOT TO ,►t YM TNs =XgIVs Wt Of Tit OVSQ Of TIM AW" DISCRIBID Lin, DVT TO DL OItD IN O MNOM VI= O=W# TAROSL 3: TMS LUT Luz OF TMt an MALI Of TNS s00a sw 0f LOT 1, Of TMS •Cm a" ADDITIOM•, A IMWM ON A NAI TSE=F DSCOSDtD IN BOON 70 MOfI 7 AND f Of MZBCEUANtOOI NAW, IMMS Of SAID CBANCI COO V, IMMIs0 TMLRsf m TMt USTERLY 15.00 RBI. PARCCL A: TMS Z"TIRLT 14.00 na Of TMs @WYMBILY 10.00 ftiT Of IAT 1 Of TMS J. S. BIA"' VADIDI/ION AN BMW 0/ A NAI 2113 0f RIO=M IM BOOK B, MOs 55, NIICtLLQUOUl ". 120O1H Of OSAMU OWMTY. CALIFORNIA. Page I of 1 EXHIBIT "D" TO OWNER PARTICIPATION AGREEMENT EXHIBIT "E" SCHEDULE OF PERFORMANCE Item of Performance Time for Performance 1. Participant submits Develop- Prior to or concurrently ment Project Plans with the OPA 2. Participant submits final Prior to Effective Date building plans to City 3. Agency approves OPA, Concurently at the meeting Development Project Plans, of June 4, 1991 and Purchase and Sale Agree- ment with Steven Peck 4. Participant submits evidence Within 10 days after of financial capability and Effective Date required insurance coverage 5. Agency Executive Director Within 5 days after approves evidence of finan- submittal cial capability and insurance 6. Participant obtains building Within 15 days of permits and comences con- Effective Date struction of Project 7. Agency begins design for Within 30 days of temporary parking on Item No. 6 Parking Structure Parcel and for expansion of existing parking lot on Ellis Place Parking Parcel 8. Agency commences construction Construction on Parking of temporary parking on Structure Parcel to Parking Structure Parcel commence within 90 days and expansion of existing of Item No. 7; construc- parking lot on Ellis Place tion on Ellis Place Parking Parcel Parking Parcel to commence within 30 days after Participant notifies Agency that Participant has vacated the building that Partici- pant is authorized to occupy on such parcel pursuant to Section 8 of the Sale. Agreement Page 1 of 2 EXHIBIT "E" TO OWNER PARTICIPATION AGREEMENT 9. Agency completes construction As to each facility, within of temporary parking on 60 days after commencement Parking Structure Parcel of construction of such and expansion of existing facility pursuant to Item parking lot on Ellis Place No. 8 Parking Parcel 10. Agency completes construction In conjunction with of parking structure on redevelopment of Fox Parking Structure Parcel Theater property 11. Participant completes Within 210 days of Item construction of Project No. 6 Page 2 of 2 EXHIBIT "E" TO OWNER PARTICIPATION AGREEMENT EXHIBIT "B" ROPS 13-14B FINAL DETERMINATION LETTER [Attached] 698/036753-0126 7057598.3.06/11/14 - g- ANT O, 44, IL i W IIII {c DEPARTMENT OF EDMUND G. BROWN JR. • GOVERNOR �9L/FCM1NIP F I N A N C E 91 S L STREET ■ SACRAMENTO CA ■ 952 14-3705 ■ WWW.00F.CA.00V December 20, 2013 Revised Ms. Ramona Castaneda, Fiscal Services Manager City of Fullerton 303 West Commonwealth Avenue Fullerton, CA 92832 Dear Ms. Castaneda: Subject: Recognized Obligation Payment Schedule This letter supersedes the California Department of Finance's (Finance) Recognized Obligation Payment Schedule (ROPS) letter dated December 17, 2013. Pursuant to Health and Safety Code (HSC) section 34177 (m), the City of Fullerton Successor Agency (Agency)submitted a Recognized Obligation Payment Schedule (ROPS 13-14B)to Finance on September 30, 2013, for the period of January through June 2014. Finance issued a ROPS determination letter on November 14, 2013. Subsequently, the Agency requested a Meet and Confer session on one or more of the items denied by Finance. The Meet and Confer session was held on December 4, 2013. Based on a review of additional information and documentation provided to Finance during the Meet and Confer process, Finance has completed its review of the specific items being disputed. • Item Nos. 8 and 45— Steven Peck Owner Participation Agreement (OPA)totaling $4,125,000. Finance no longer denies this item. Finance initially denied this item even though it was approved for expenditure for the July through December 2013 period (ROPS 13-14A) because according to the OPA, the Agency was required by the Schedule of Performance to complete the construction of the parking structure in conjunction with the renovation of the Fox Theatre. According to information provided to Finance, the renovation of the theatre was completed on March 19, 2012; however, no contracts to commence the construction of the parking structure have been created. Additionally, allocating funds for unknown contingencies is not an allowable use of funds. During the Meet and Confer process, the Agency provided additional documentation to identify that the obligation is enforceable and the construction of the parking garage is required to commence. According to Section 6.2.2 of the OPA, the Agency is required to diligently prosecute to completion, the construction of a parking structure at such a time as the renovation of the Fox Theatre commences. During the ROPS 13-14A period, the Agency requested $1,562,000 in Redevelopment Property Tax Trust Fund (RPTTF) funding; however, due to insufficient RPTTF funding, the item remained unfunded. Therefore, Finance approves $4,125,000 in RPTTF funding this period. Ms. Ramona Castaneda December 20, 2013 Page 2 • Item No. 15 — State College Grade Separation Project in the amount of$1,000,000 in unspent pre-2011 bond funds. Finance no longer denies this item. The Agency originally requested reserve funding, but revised the funding request to bond proceeds during the initial review. It was our initially understanding that this item was related to a Memorandum of Understanding (MOU) dated June 22, 2011, that was executed between the Agency, the City of Fullerton (City), California State University Fullerton (CSUF), and Hope International University (HIU). The MOU states the total costs for the preparation of the plan shall not exceed $900,000, and the parties agree to share the costs equally (1/3 each or$300,000) amongst the City/Agency, CSUF, and HIU. Therefore, the Agency is obligated at a cost not to exceed $150,000. However, during the Meet and Confer process, the Agency clarified that the MOU is related to Item No. 17, which Finance did not dispute in the ROPS 13-14B period to be funded from the RPTTF as requested. Item No. 15 is related to a Cooperative Agreement with the Orange County Transportation Authority(OCTA) dated December 31, 2009. The Agency provided documentation showing that they received their Finding of Completion on May 10, 2013, and was approved to expend their pre-2011 unexpended bond proceeds. During the ROPS 13-14A period, the Agency was approved to expend $4,400,000; however, the Agency reported expending only $3,400,000. As such, the Agency is requesting approval to expend the remaining bond funds during the ROPS 13-14B period. Since the Agency has met all requirements in HSC section 34191.4 and is approved to expend the excess bond proceeds, Finance is approving the expenditure of the remaining $1,000,000 in bond funds. • Item No. 16— Project T Grant Match in the amount of$98,000. Finance continues to deny this item. Finance denied this item as these contracts are between the City and various third-parties; the former redevelopment agency (RDA) is neither a party to the contract nor responsible for payment of the contract. During the Meet and Confer process, the Agency did not provide any additional documents showing that the former RDA had a responsibility to pay for this item. Therefore, this line item is not an enforceable obligation and is not eligible for RPTTF funding. • Item No. 18 — Downtown Core & Corridors Specific Plan in the amount of$1,321,860. Finance continues to deny this item. Finance denied the items as the contract is between the City and a third-party and the former RDA is not a parry to the contract. The Agency stated the former RDA committed funds for the City's project per the City and RDA Cooperation Agreement dated January 25, 2011. However, HSC section 34171 (d) (2) states that agreements, contracts, or arrangements between the city that created the RDA and the former RDA are not enforceable, unless issued within two years of the RDA creation date or for issuance of indebtedness to third-party investors or bondholders. During the Meet and Confer process, the Agency did not provide any additional documents showing that the former RDA had a responsibility to pay for this item. Therefore, this line item is not an enforceable obligation and is not eligible for RPTTF funding. • Item Nos. 19 and 20 — City and former RDA Cooperation Agreements dated January 29, 2011, and June 7, 2011, totaling $15,500,000. Finance continues to deny these items. The Agency contends the cooperation agreements committed the RDA to fund the related capital improvement projects. However, Finance denied these items as Ms. Ramona Castaneda December 20, 2013 Page 3 HSC section 34171 (d) (2) states that agreements, contracts, or arrangements between the city that created the RDA and the former RDA are not enforceable, unless issued within two years of the RDA creation date or for issuance of indebtedness to third-party investors or bondholders. During the Meet and Confer process, the Agency did not provide any additional documents showing that an enforceable obligation existed prior to June 27, 2011. Therefore, these line items are not enforceable obligations and are not eligible for RPTTF funding • Item Nos. 23 and 28-Affordable Housing Monitoring, Administration, and Reporting contracts totaling $10,735,000. Finance continues to deny these items. Finance denied these items as the City Housing Division assumed the housing functions. Upon the transfer of the former RDA's housing functions to the new housing entity, HSC section 34176 requires that"all rights, powers, duties, obligations and housing assets...shall be transferred" to the new housing entity. This transfer of"duties and obligations" necessarily includes the transfer of administrative obligations; to the extent any continue to be applicable. To conclude that such costs should be on-going enforceable obligations of the successor agency could require a transfer of tax increment for life— directly contrary to the wind down directive in ABx1-26/AB1484. Therefore, these items are not enforceable obligations and are not eligible for RPTTF funding. • Item No. 30—Capital Improvement Projects in the amount of$95,000. Finance continues to deny this item. Finance originally denied this item because the contract is between the City and Griffin Structures; the former RDA is not a party to the contract. The Agency stated the City and RDA signed a cooperation agreement on January 29, 2011 committing former RDA funding to the City agreement with Griffin Structures, Inc. However, HSC section 34171(d) (2) states that agreements, contracts, or arrangements between the city that created the RDA and the former RDA are not enforceable, unless issued within two years of the RDA creation date or for issuance of indebtedness to third-party investors or bondholders. During the Meet and Confer process, the Agency did not provide any additional documents showing that an enforceable obligation existed prior to June 27, 2011. Therefore, this line item is not an enforceable obligation and is not eligible for RPTTF funding. • Item Nos. 41 and 44—The Alexander (Affordable Housing Development) and associated project management costs totaling $4,600,000 in unspent pre-2011 bond proceeds. Finance no longer denies these items. Finance initially denied these items as insufficient documentation was provided to support the amounts claimed. HSC section 34176 (a) (1) states if a city, county, or city and county elects to retain the authority to perform housing functions previously performed by a RDA, all rights, powers, duties, obligations, and housing assets shall be transferred to the city, county, or city and county. Since the City Housing Division assumed the housing functions, the administrative costs associated with these functions are the responsibility of the housing successor. During the Meet and Confer process, the Agency provided documentation showing that they received their Finding of Completion on May 10, 2013, and met all requirements in HSC section 34191.4. Therefore, the Agency is approved to expend pre-2011 housing bond proceeds in the amount of$4,600,000. Pursuant to HSC section 34186 (a), successor agencies were required to report on the ROPS 13-14B form the estimated obligations and actual payments (prior period adjustments) associated with the January through June 2013 period. HSC section 34186 (a) also specifies that the prior period adjustments self-reported by successor agencies are subject to audit by the Ms. Ramona Castaneda December 20, 2013 Page 4 county auditor-controller(CAC) and the State Controller. The amount of RPTTF approved in the below table includes the prior period adjustment resulting from the CAC's audit of the Agency's self-reported prior period adjustment. Except for items denied in whole or in part as enforceable obligations or for items that have been reclassified, Finance is not objecting to the remaining items listed on your ROPS 13-14B. The Agency's maximum approved RPTTF distribution for the reporting period is $9,409,688 as summarized below: Approved RPTTF Distribution Amount For the period of January through June 2014 Total RPTTF requested for non-administrative obligations 11,097,653 Total RPTTF requested for administrative obligations 360,000 Total RPTTF requested for obligations $ 11,457,653 Total RPTTF requested for non-administrative obligations 11,097,653 Denied Items Item No. 16 (45,000) Item No. 18 (330,465) Item No. 19 (1,000,000) Item No. 20 (500,000) Item No. 23 (60,000) Item No. 28 (65,000) Item No. 30 47,500 2,047,965 Total RPTTF approved for non-administrative obligations 9,049,688 Total RPTTF approved for administrative obligations 360,000 Total RPTTF approved for obligations 9,409,688 ROPS III prior period adjustment Total RPTTF approved for distribution $ 9,409,688 Pursuant to HSC section 34177 (I) (1) (E), agencies are required to use all available funding sources prior to RPTTF for payment of enforceable obligations. Beginning with the ROPS 13-14B period, Finance required successor agencies to identify fund balances for various types of funds in its possession. During our ROPS 13-14B review, Finance requested financial records to support the fund balances reported by the Agency; however, Finance was unable to reconcile the financial records to the amounts reported. As a result, Finance will continue to work with the Agency after the ROPS 13-14B review period to properly identify the Agency's fund balances. If it is determined the Agency possesses fund balances that are available to pay approved obligations, the Agency should request the use of these fund balances prior to requesting RPTTF in ROPS 14-15A. Please refer to the ROPS 13-146schedule that was used to calculate the approved RPTTF amount: http://www.dof.ca.gov/redevelopment/ROPS/ROPS 13-14B Forms by Successor Agency . This is Finance's final determination related to the enforceable obligations reported on your ROPS for January 1 through June 30, 2014.This determination applies only to items where Ms. Ramona Castaneda December 20, 2013 Page 5 funding was requested for the six month period. Finance's determination is effective for this time period only and should not be conclusively relied upon for future periods. All items listed on a future ROPS are subject to a subsequent review and may be denied even if it was or was not denied on this ROPS or a preceding ROPS. The only exception is for those items that have received a Final and Conclusive determination from Finance pursuant to HSC section 34177.5 (i). Finance's review of items that have received a Final and Conclusive determination is limited to confirming the scheduled payments as required by the obligation. The amount available from the RPTTF is the same as the amount of property tax increment that was available prior to enactment of ABx1 26 and AB 1484. This amount is not and never was an unlimited funding source. Therefore, as a practical matter, the ability to fund the items on the ROPS with property tax is limited to the amount of funding available to the successor agency in the RPTTF. To the extent proceeds from bonds issued after December 31, 2010, exist and are not encumbered by an enforceable obligation pursuant to HSC section 34171 (d), HSC section 34191.4 (c)(2)(B) requires these proceeds be used to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. Please direct inquiries to Evelyn Suess, Dispute Resolution Supervisor, or Derk Symons, Analyst, at (916) 445-1546. Sincerely, JUSTYN HOWARD Assistant Program Budget Manager cc: Mr. Charles Kovac, Project Manager, City of Fullerton Mr. Frank Davies, Property Tax Manager, Orange County California State Controller's Office EXHIBIT "C" SCOPE OF SERVICES [Attached] 698/036753-0126 70515989 a06/I 1114 -19- SCOPE OF SERVICES FOR ADMINISTRATION OF TOTAL OPA FUNDING OBLIGATION This SCOPE OF SERVICES FOR ADMINISTRATION OF TOTAL OPA FUNDING OBLIGATION ("Scope of Services") is attached to and incorporated into that certain Professional Services Agreement for Escrow Services Pursuant to Enforceable Obligation ("Agreement"). The Services to be provided by the Consultant shall be in accordance with the following: 1. Administration of Covenants and Obligations re Bond Proceeds. Consultant agrees to administer and distribute the funds received by the Successor Agency from the RPTTF (or other funding source) and transferred to Consultant for the former RDA's (now Successor Agency's) obligations in Section 6.2.2 of the OPA pursuant to this Scope of Services and the Agreement. 2. General Escrow Services of Consultant. Consultant shall establish, open, administer, manage, and close an escrow account (the "OPA Escrow Account") for the following events as authorized by the Successor Agency (each, an "OPA Escrow Account Authorized Event"): (a) Transfer from the Successor Agency to Consultant of funds from the RPTTF in furtherance of the former RDA's (now Successor Agency's) obligation under Section 6.2.2 of the OPA; (b) Acquisition of any interest in real or personal property within or for use within the Parking Structure Parcel or Parking Structure Project; (c) Advertisement or solicitation of requests for proposals ("RFPs") or requests for qualifications ("RFQs") by the Successor Agency or City for demolition, grading, construction, and other improvement work in furtherance of the development of the Parking Structure Parcel for the Parking Structure Project; (d) Demolition, grading, construction (including all pre- development/design work and post-construction/punch-list work), or any improvement to any or all of the Parking Structure Parcel and/or in furtherance of the development and completion of the Parking Structure Project; (e) Disbursement of funds from the RPTTF to any contractor or subcontractor awarded a contract to complete any work identified in subparagraph (d) in this Paragraph 2; and (f) Any other event as may be established by the Successor Agency from time to time in furtherance of the development of the Parking Structure Project and satisfaction of the Successor Agency's obligations pursuant to Section 6.2.2 of the OPA. The OPA Escrow Account shall earn interest at the then prevailing rate of interest earned on escrow accounts established for the acquisition of real property in the Orange County, California market area. 3. General Procedure for Establishing and Opening Escrow Account. Prior to or upon an OPA Escrow Account Authorized Event, Successor Agency shall deliver to Consultant notice thereof (the "Notice of OPA Escrow Account Authorized Event"), identifying the OPA Escrow Account Authorized Event and the anticipated amount of funds from the RPTTF to be transferred from the Successor Agency to the OPA Escrow Account for the corresponding OPA Escrow Account Authorized Event. No later than five (5) business days after delivery of the Notice of OPA Escrow Account Authorized Event, Consultant shall establish and open the OPA Escrow Account, shall deliver any additional escrow instructions for review and approval by the Successor Agency (which approval shall be within the reasonable discretion 698/036]53-0126 705/598.3 a06/11/I4 -20- of the Successor Agency), shall deliver to the Successor Agency the escrow account number and any other unique identifying information for the OPA Escrow Account, and shall deliver to the Successor Agency any other information that the Successor Agency deems necessary or proper for the efficient administration of the OPA Escrow Account and the distribution of funds from the RPTTF for payment of work completed in furtherance of the Parking Structure Project. Upon delivery to the Successor Agency by Consultant of all information set forth in the immediately preceding sentence, the Successor Agency shall transfer to the OPA Escrow Account the ROPS 13-14B Approved RPTTF Funding Amount. Thereafter, after the Successor Agency receives funds from the RPTTF in amounts up to the Total OPA Funding Obligation Amount, the Successor Agency shall transfer those amounts to the OPA Escrow Account. The Successor Agency may, but shall have no obligation to, transfer funds, whether from the RPTTF or other funding source, to the OPA Escrow Account in excess of the ROPS 13-14B Approved RPTTF Funding Amount, it being expressly understood and agreed between the Parties that the receipt by Consultant of funds for the OPA Escrow Account shall be contingent upon DOF approval of funds for the development of the Parking Structure Project. 4. General Procedure for Administering and Managing Escrow Account; Escrow Fees; Payments Thereof. Upon the opening of the OPA Escrow Account, Consultant shall administer and manage the OPA Escrow Account with all diligence, duty, and care that is consistent with industry practice and fiduciary obligations of escrow service providers in the Orange County, California market area. Consultant shall monitor and track all RPTTF funds and any other funds, including funds raised from interest, deposited and withdrawn from the OPA Escrow Account. Consultant may charge a fee for the administration and management of the OPA Escrow Account; provided, however, that any fees shall be payable only upon a distribution of funds from the RPTTF (or other funding source approved by the Successor Agency). In no event shall Consultant charge a fee that exceeds Consultant's generally applicable fees for the servicing of an escrow for the acquisition of real property or administration for draw of funds in furtherance of the construction of a public works project, and in no event shall the aggregate amount of Consultant's fees, for all services rendered in connection with the OPA Escrow Account, exceed the maximum total compensation that Consultant may receive under this Agreement set forth in Section 3.3.1. Prior to the payment of any fees for Consultant's services, the Successor Agency shall have the right to review and approve the amount of those fees, which approval shall not be unreasonably withheld or denied by the Successor Agency. Consultant's fees shall be paid from the source of funds as identified by the Successor Agency, and, in the event the Successor Agency does not identify any specific source of funds, all Consultant fees shall be paid according to the following: (a) first, from interest earned on the OPA Escrow Account; (b) second, from funds from the RPTTF approved by DOF as available for payment to Consultant for the OPA Escrow Account; and (c) third, other funds as identified and approved by the Successor Agency. 5. General Procedure for Distribution of Funds from OPA Escrow Account. No RPTTF funds or any other funds, including any interest earned, may be withdrawn, disbursed, or distributed from the OPA Escrow Account unless and until the Successor Agency delivers written notice to Consultant that a specified amount of funds are to be withdrawn, disbursed, or distributed. The Successor Agency shall specify the amount of funds from the OPA 698/036753 0126 7057598.3 x06/11/14 -21 Escrow Account, the recipient (for example, a third party payee) of that amount of funds, and any other information that is necessary or proper for the distribution of that amount of funds from the OPA Escrow Account to pay for the corresponding work completed in furtherance of the Parking Structure Project. Consultant expressly understands, and it is the intent of the Parties, that certain OPA Escrow Account Authorized Events may involve installment payments of funds that have been deposited into the OPA Escrow Account, and Consultant expressly acknowledges and agrees that only the specified amount of funds may be withdrawn, disbursed, or distributed as instructed by the Successor Agency notwithstanding the fact that the OPA Escrow Account may have additional funds remaining after the Successor Agency's written notice to withdraw, disburse, or distribute a specified amount. The Successor Agency may instruct Consultant to distribute a specified amount of funds from the OPA Escrow Account to a third party payee, such as a contractor or subcontracted who has been awarded a contract by either the Successor Agency or City for specified work in furtherance of the development of the Parking Structure Project. Consultant shall deliver written notice to Successor Agency of any withdraw, disbursement, or distribution of funds from the OPA Escrow Account no later than one (l) business day after said withdraw, disbursement, or distribution. 6. General Procedure for Closing Escrow Account. Upon written notice delivered by the Successor Agency to Consultant of the completion of the Parking Structure Project or receipt of all funds from the RPTTF authorized by DOF to be used in furtherance of the Successor Agency's obligations under Section 6.2.2 of the OPA, whichever date occurs first, Consultant shall diligently proceed to close the OPA Escrow Account. Any and all funds remaining in the OPA Escrow Account shall be transferred back to the Successor Agency or, upon the Successor Agency's instruction, to a contractor or subcontractor or other third party. Any closing fees shall be charged and payable in accordance with the payment of other Consultant fees set forth in Paragraph 4 of this Scope of Services. 7. Additional Joint Escrow Instructions. In the event that the Successor Agency enters into a purchase and sale agreement, public works agreement, or any other agreement or contract with a third party that governs in whole or in part the payment to that third party with funds that have been deposited into the OPA Escrow Account (each, a "third party agreement"), Consultant shall be bound by the terms and conditions of the third party agreement to the extent it provides for additional escrow instructions that are not directly inconsistent with the terms and conditions of this Agreement. In the event that Consultant is unable to perform a term or condition in a third party agreement because it directly conflicts with a term or condition in this Agreement, Consultant shall notify the Successor Agency and the Successor Agency and Consultant shall meet and confer to resolve the conflict. In the event that the Successor Agency and Consultant are unable to resolve the conflict, the Parties shall engage in binding arbitration pursuant to the general provisions adopted by the American Arbitration Association at the time the dispute arises. A. Successor Agency Executive Director/City Manager Authority. The Successor Agency's Executive Director, or his or her designee, shall have the authority to administer the Agreement on behalf of the Successor Agency, and the Executive Director, or his or her designee, shall have the authority to approve on behalf of the Successor Agency any and all 698/036753 0126 70575983 n0N]1/14 -22- items needing Successor Agency approval under the Agreement, including approval of compensation to the Consultant for Services completed under the Agreement. 9. Definition of Terms. Capitalized terms not otherwise defined in this Scope of Services shall have the same meaning ascribed to them in the Agreement. - end - 698/036753-0126 70575983 aONI 1114 -23- EXHIBIT "D" SCHEDULE OF SERVICES The general schedule for Consultant's performance of the Services shall be as set forth in Paragraphs 3-6 of Exhibit "C" in the Scope of Services. This Agreement shall be effective for the Term set forth in Section 3.1 .2. The Term of this Agreement may be renewed pursuant to Section 3.1 .2. 698/036753-0126 7057598.3 a06/11/14 -24- EXHIBIT "E" COMPENSATION Compensation to Consultant shall be as set forth below and shall comply with Paragraphs 4 & 6 of Exhibit "C" in the Scope of Services: • $750.00 flat fee per escrow deposit. • $25.00 per check cut fee. • Up to $10,000.00 for Fidelity Bond 698/036753-0126 7057598.3 u06/11/14 -25- ASSIGNMENTAND ASSUMPTION AGREEMENT THIS ASSIGNMENT' AND ASSUMPTION AGREEMENT (this "Assignment") is macre and entered into and is cl'lective as of August 6, 2014 (the "effective date") by and between Gold Country Escrow, Inc„ a California corporation, with its principal place of business at 18180 Yorba Linda Blvd., Suite 503, Yorba Linda, CA 92886 ("Assignor"), and Sunset One Escrow, Inc., a California corporation, with its principal place of business al 29970 Technology Drive, SIe.217, Murrieta, CA 92563 ("Assignec"), with reference to the following Recitals. RECITALS A. Assignor and the Fullerton Successor Agency, it public agency under Health and Safety Code section 34173 ("Agency"), have entered into (flat certain Fullerlet Successor Agency Professional Services Agreement for Escrow Services Pursuant to an Enforceable Obligation dated as of January 1, 201 it (the ",ngrcemcnl"). B. Section 3.5.12 of the Agreement allows for the assignment of the Agreement and section 3.5.21 allows the Agency's Execwivc Director to consent to such an assignment. C. Assignor now desires to assign its right, title ,incl interest in, to and under the Agreement to Assignee, and Assignee, desires to accept such assignment on, and subject to, the terms anti conditions set forth in this Assignrnenl. D. Agency, by executing the acknowledgement and consent attached to this Assignment, approves of the assignment of the Agreement as provided herein. Now, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which arc hereby acknowledged, the parries hereto agree as follows: AGREEMENT 1 . AcsinenL Assignor hereby assigns, conveys, transfers and delivers to Assignee all of Assignor's right, title and interest in and to (he Agreement, and Assignee hereby accepts such assignment and agrees to assume performance of all terms, covenants air(] conditions occurring or arising under the Agreement, subject to the terms and conditions in this Assignnenl, on or after the date of this Assignment, 2. Assumption of Obligations. By acceptance of this Assignment, Assignee hereby assumes and agrees to timely discharge, perform and to be bound by all of the liabilities, duties and obligations imposed in connection with the Agreement from and alter the effective (late of this Assignment to the same extent as if Assignee had been the original party and "Consultant" under the Agreement, subject to the following exception: a. Assignee will not be required to submit, as part of any invoice or slaternent for payment under the Agreement, the hours of Services rendered by the Assignee to the Agency, as set forth in section 3,3,2 of the Agreement. Assignees shall still submit monthly itemized statements indicating (lie work completed by the Ass'LTec for the applicable month and all other requirements required by the Agreement. t` 7707025 2 a012')r 1 3. 'Authority tc�_ Sigtl for in(] hind the parties Iierclo. The person signing, on behalf of Assignor represents and w;urants that person has full authority to bind the Assignor to the terms and conditions of this Assignment, and that all company, corporate, and other approvals required to be obtained under Assignor's governing documents have been so obtained to bind the Assignor, The person signing on behalf or Assignee represents and warrants that person has full authority to bind the Assignee to the terms and conditions of this Assignment, and that all company, corporate, and other approvals required to be obtained under Assignee's governing documents have been so obtained to bind the Assignee. The persons signing for Assignor and Assignee. respectively, each understand and acknowledge that the Successor Agency materially relies on the representations and warranties set forth in this Section 3, and that any breach of any such representation and warranty that exists as of the effective dale or, with lite passage of time, comes to exist shall be a material breach of this Assignment and the Agreement, and the Successor Agency shall have the right to seek any remedy at law or in equity for such n breach, in addition to any other rights and remedies available under the Agreement. 4, L\ttorney's Fees. In the event any action or suit is brought by a party hereto against another party by reason of any breach ol'any or the covenants, conditions, agreements or provisions on the part of such other party arising out of this Assignment, tile prevailing party shall be entitled to have ancf recover of and from any other party all costs and expenses or the action or suit, including reasonable attorneys' Pecs. S. Successors _nxl Assiuns. Subject to the assignment and Iransfer provisions of the Agreement, this Assignment shall be binding upon and shall inure to the benclit of lhe. successors and assigns of Ole respective: parties hereto. 6. Governing Law, This Assignment shall be governed by and construed in accordance with the laws of the Slate of California without regard to conflict of law principles. 7. Further Assurances. The parties covenant and agree that they will execute such other and Auther instruments and documents as are or may become necessary or convenient to of iectuate and cnrry out this Assignment. S. Counteortrts. This Assignment may be executed in any number of counterparts, each of which when so executed and delivered shall be ducted to be an original and all of'which counterparts taken logelher shall constitute bill one and the same instrument. Signatures on Next Page ML*01 3.1.0 n, y X101025'1012. N IN WITNESS WHY'RIi01", (his Assignment has been executed by [lie parties as of the dates set forth below Dated:�(�' � _ ASSIGNOR: GOLD COUNTY SCR C�5tN11'ANY��/ a California corp ration �/ Name. .— - '1'it14 _ _2� ivy✓�� ---- — Datcd:_ _ _F5 �/{( ASSIGNEE: SUNSET NEES�CK6 , ' a CaNnia11) 411101By: /Nam (a_y) Signatures Conlimre on ilex( Page )WVS,W 21) U -3- THE AGENCY IIEREBY ACKNOWLEDGES AND CONSENTS TO THIS ASSIGNMENT AS OF ,r1IE EFFECrIVF, DATE OF SAID ASSIGNMENT AGENCY: FULLERTON SUCCESSOR AGENCY, a public agency under Health and Safety Code section 34173 By: Exe lie r ctor Atte" ,-1 Successor Agency Clerk Approved as to Form: By: _ Successor Agency Legal Counsel 2606 03675 0126 _ 1307025 2.07/29.'14 -4-