HomeMy WebLinkAbout0228C - BENEQUITY PROPERTIES, K ROO - PS MALL BUFFUMS OPA PA8B19 NOTE: After Recording Return : ; City of Palm Springs, P.O. P' 1786, Palm Springs, CA 92263 )
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LEGAL DESCRIPTION OF PROPERTY:
ia�9P®LY�� MB 14652 Lot 21 P Palm VaTley Colony Lands
LL' *rz Assessor's Parcel No. 502-190-006
Department of Community Development COMMON DESCRIPTION OF PROPERTY:
Building Division 191 South Farrell Drive, Palm Springs, California
6t9-323-0242
AGREEMENT between the CITY OF PALM SPRINGS and GARY A. VICTORSON, authorized agent
for BENEQUITY PROPERTIES, 3700 Wilshire Blvd. , Los Angeles, CA 90010 was entered
upon this date MARCH 3, 1987, the following:
41
The following conditions for smoke control upgrade forft eivWeSls�ean�fsaboes on
PALM SPRINGS MALL located at 191 South Farrell will be required upon the earlier
of:
- Ten (10) years from the date hereof, OR
- At the time structural or life safety alterations (excluding cosmetics,
decorations, lighting changeouts that do not require rewiring back to
the subpanel and store front alterations) are made by a new tenant if
the cost of such alteration exceeds $15.00 per square foot, OR
- In the case of the Walker Scott store, unless exiting, independent of
the mal has been provided prior to the ten year period.
i DATE:
* GARY VICIORSON, for BENEQUITY PROPERTIES
� z _ DATE: 2 J
TOM GRAHAM, Building and Safety Director, for CITY OF PALM SPRINGS
* Signature must be notarized below.
STATE OF, COUNTY OF r�e � �—
On this a of . , 1987, before mer/ /j9--J-kj(:j,y
GHL)1U±C- �: , tWundcYrsigned Notary Public, appeared ejl TY )/ jC1-D/��7ly
14ersonally known to me
—proved to me on., the basis of satisfactory evidence to be the person(A) whose
name(A C subscribed to the within instrument, and
acknowledged that executed it.
WITNESS my hand and official seal .
NOTARY'S SIGNATURE
{ oFrrr_,LAi_ sEnt° o ED �` W
PATRICIA GALANT � `� � A" �
m NOTFlRY PUBLIC - CALIFORNIA � � '¢ � L � �, '
- y;F g LOS NPJGELES COUfJTY � '< �Q , 4
_. Nly comet. expires FE6 19, 1991 � � 3 L:,
Post Office Box 1706, Palm Springs, California 92263-1706
GENERAL ACKNOWLEDGMENT 1
State { i��.l�. �i ✓ 1 On this the r.�1 day of �i )r ! ✓1 19 �7, before No.z�l
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ore me,
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S`3 Countyof 1<' i �,o):C% t 1 i ✓ L r;.r_ ') f l`%%� % ;[r:-Z
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the undersigned Notary Public,personally appeared
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O proved fd me on the basis of satisfactory
�,) RIVERSILc UC'IUN"I'/
Mycam, to be the per�son(s)'whose name(s)" subscribed to the
7 within instrument,and acknowledged that executed it.
1��� WITNESS my hand and official seal.
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7110122 ` 4v NATIONAL NOTARY ASSOCIATION•23012 Ventura BIN •RO Box 4625•Woodland Hills,CA 91364
11
1
I K-Roo Owner Participation
P.S. Mall (Buffums) PA8B19
AGREEMENT #228
OWNER PARTICIPATION AGREEMENT R673, 1-3-90
Palm Springs Mall ------
This Agreement is ente,�ed into as of the / day of
( MIyo 1-989, by and between the Community Redevelopment
Agency of the' City of Pafm Springs (the "Agency") and K-ROO Corp. a California
corporation (the "Participant") The Agency and Participant agree as follows :
I . SUBJECT OF THE AGREEMENT
A. Purpose of the Agreement
The purpose of this Agreement is to effectuate the Redevelopment
Plan for the Baristo Farrell Redevelopment Project Area (the
"Project Area") by providing Ahe improvement of certain real-r
property (the "Site") included within the boundaries of the
Project Area.
The improvement of the Site pursuant to this Agreement is in the
vital and best interests of the City of Palm Springs (the "City") ,
the health, safety, and morals of its citizens , and the purposes
and provisions of applicable federal , state, and local laws and
requirements . Implementation of this Agreement will further the
goals and objectives of the Redevelopment Plan to strengthen the
commercial functions of the Palm Springs Mall (the "Mall ") and
provide public access to commercial facilities .
The parties to this Agreement acknowledge that in order to provide
for a nine percent return on investment for the Site in the first
years of stabilized occupancy, based on a current pro forma, there
is a capital shortfall to the Participant of $1 ,396.000.
B. Redevelopment Plan
This Agreement is subject to the provisions of the Redevelopment
Plan For the Baristo Farrell Redevelopment Project Area which was
adopted by the City Council of the City of Palm Springs on June 6,
1986, by Ordinance #1264. The Redevelopment Plan, as it now
exists and as it may be subsequently amended, are incorporated
herein by reference and made a part hereof as though fully set
forth herein.
C. The Site
The Site is that portion of the Project Area generally known as
the Palm Springs Mall . The Participant is an owner of the Site
which is more fully described as follows :
Those portions of Lots 20 and 21 , Section 13, Township 4 South,
Range 4 East, San Bernardino Meridian, in the City of Palm
Springs , County of Riverside, State of California , as shown by map
of Palm Valley Colony Lands, recorded in Book 14, Page 652 of
Maps, in the Office of the County Recorder of San Diego County,
California, described as follows :
Beginning at the Northwest corner of said Lot 21 , being the center
line of McCallum Way, as shown on said map; thence South 50.00
Feet on the Westerly line of said Lot 21 to a point on the
Southerly line of said McCallum Way, said Southerly line being 50
feet Southerly (measured at right angles) from the Northerly line
of said Lot 21; which is the center line of said McCallum Way,
said point being the true point of beginning; thence North 89056'
East, 667.56 feet, parallel with the Northerly line of said Lot
21, to the intersection of a line parallel with and 50 feet
Southerly (measured at right angles) from the Northerly line of
said Lot 20, said parallel line being also the Southerly line of
said McCallum Way; thence North 89056'40" East, 367.95 feet on
last said parallel line, to the beginning of a tangent curve,
concave to the Southwest with a radius of 20 feet, and which
AGREEMENT: Palm Sprinclall
terminates Southerly in a tangent line which is parallel with and
40 feet Westerly (measured at right angles) from Line "A" (Line
"A" being a straight line whose Northerly terminus is a point in
the Northerly line of said Lot 20, North 89056'40" East, 428.10
feet on said Northerly line from the Northwest corner of said Lot
20 and whose Southerly terminus is a point in the Southerly line
of said lot 20, South 89046' East, 425.35 feet on said Southerly
line, from the Southwest corner of said Lot 20) ; thence South-
easterly 31 .49 feet on said curve through a central angle of
90012'25" ; thence South 00009' 05" West, 1190.18 feet, on said
tangent line, 40 feet West of said Line "A" , to the beginning of a
tangent curve which is concave to the Northwest, having a radius
of 20 feet and which terminates Westerly tangent to a line which
is parallel with and 30 feet Northerly (measured at right angles)
from the Southerly line of said Lot 20; thence Southwesterly 31.44
feet on last said curve, through a central angle of 90004' 55" ;
thence North 89046' West, 365.37 feet on 'said tangent line, to its
intersection with a line which is parallel with and 30 feet
northerly (measured at right angles) from the Southerly line of
said Lot 21; thence South 89052' 55" West, 666.93 feet on last said
parallel line, to the Westerly line of said Lot 21; thence North
1228.94 feet, on the Westerly line of said Lot 21 to the True
Point of Beginning.
Except that portion described as follows :
Beginning at a point on the West line of said Lot 21 that is
1278.94 feet South of the Northwest corner of said Lot 21, said
point being also the Southwest corner of the above described
parcel ; thence North 10.00 feet; thence North 89052'55" East,
666.93 feet; thence South 89046' 00" East, 365.37 feet to a tangent
curve; thence along said curve, concave to the Northwest, having a
radius of 20.00 feet, through a central angle of 90004155" , a
distance of 31.44 feet; thence South 0009'05" West, 10.00 feet to
a tangent curve; thence along said curve, concave to the North-
west, having a radius of 20.00 feet, through a central angle of
90004'55" , a distance of 31 .44 feet; thence North 89046'00" West,
365.37 feet; thence South 89052'55" West, 666.93 feet to The Point
of Beginning.
The legal description above described is the same real property
described in the deed recorded December 31, 1968, as Instrument
No. 127272, Official Records.
D. Parties to the Agreement
1. The Agency
The 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 & Safety Code Section 33000 et
seq. ) .
The office of the Agency is located at 3200 East Tahquitz
McCallum Way, Palm Springs , California 92262.
"Agency," as used in this Agreement, includes the Community
Redevelopment Agency of the City of Palm Springs and any
assignee of or successor to its rights , powers and responsi-
bilities .
2. The Participant
The Participant is K-R00 Corp. , a California corporation.
The Participant has an interest in real property within the
Project Area and therefore qualifies as an "owner partici-
pant" as that term is used in the Redevelopment Plan and
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AGREEMENT: Palm Sprinomall
Community Redevelopment Law. The principal office of the
Participant is located at 3700 Wilshire Boulevard, Los
Angeles, California 90010.
All of the terms , covenants and conditions of this Agreement
shall be binding on and shall inure to the benefit of the
Participant and the permitted expressly named assigns of the
Participant as herein provided according to their terms and
application.
Wherever the term "Participant" is used herein, such terms
shall include any permitted assignee or successor in
interest as herein provided.
Notwithstanding any other provisions hereof, no voluntary or
involuntary successor in interest of the Participant shall
acquire any rights or powers under this Agreement except as
expressly set forth herein. The Participant shall not
assign all or any part of this Agreement without the prior
written approval of the Agency and the Agency shall not
recognize, accept or pay any purported successor in interest
or assignee of Participant unless it receives an express ,
written assignment of Participant's rights under this Agree-
ment signed by Participant. The Agency shall not
unreasonably withhold its approval of any assignment by the
Participant so long as the proposed assignee executes an
assumption agreement in form and content satisfactory to the
Agency assuming the obligations of the Participant hereunder
consistent with its interest, and such assignment will not
diminish or impair in any way the performance of the Parti-
cipant's obligations under this Agreement.
II . TAX INCREMENT AND RETAIL SALES TAX REVENUES
In return for improvements made and agreed to be made by the Participant
and Participant's sole shareholder, Benequity Properties , a California
Limited Partnership ("Benequity") and funds expended and agreed to be
expended by the Participant and Benequity towards the implementation of
this Agreement, and the Redevelopment Plan, the Participant shall receive
the following share of tax increment and retail sales tax revenues
accruing to the Site.
A. Tax Increment Revenues
For a period of ten (10) years , commencing January 1 , 1990, the
Participant shall receive one hundred percent (100%) of all of the
tax increment revenues attributable to the Site (the "Tax Incre-
ment Revenues" ) . The Tax Increment Revenues are the increase in
the property taxes received by the Agency from the Site from the
increase in assessed valuation over the over the assessed valua-
tion in the Base Year of 1988-89 fiscal year. The Tax Increment
Revenues shall be paid to the Participant semi-annually, in
arrears , within thirty (30) days following allocation of the tax
increment revenues to the Agency. The assessed valuation as
reported by the Riverside County Assessor's Office, for the Site
in the Base Year was $16,488,026.
B. Sales Tax Increment
For a period of ten (10) years , commencing January 1, 1990, the
Participant shall receive an amount equal to that portion of the
retail sales taxes equal to one hundred percent (100%) up to
$100,000 and fifty percent (50%) of the amount over $100,000 of
the increased annual sales tax accruing to the City from the Site
(the "Sales Tax Increment") . At the end of each calendar year,
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AGREEMENT: Palm Sprin•Mall •
the Participant shall provide, or shall cause to be provided, to
the Agency a list of the active tenants in the Mall including each
tenant's sales tax identification number as and if reported by
said tenants pursuant to the provisions of said tenant's lease.
The Sales Tax Increment is the increase in the amount of sales tax
revenues received by the City or Agency from the Site in
subsequent calendar years over the amount received by the City in
the Base Calendar Year of 1988. The Sales Tax Increment due the
Participant shall be paid to the Participant annually, in arrears,
within ninety (90) days following: 1) the collection of retail
sales tax by the City, or 2) the receipt of the information from
the Participant regarding tenants at the Site, as outlined above
in this Section; whichever is later. The amount received by the
City in the Base Calendar Year of 1988 was $258,504 which repre-
sents one percent (1%) of the retail sales at the Site as reported
to the California State Board of Equalization.
C. Maximum Assistance
The total amount of Tax Increment Revenues and Sales Tax Increment
paid to the Participant as described in Sections IIA. and IIB.
shall not exceed a total of $1,396,000.
The actual amount expended on the allowable improvements to the
Site, as outlined in Section IV.A. of this Agreement shall deter-
mine the actual amount of assistance to be provided by the Agency.
On or before March 31, 1990, the Participant shall provide to the
Agency a accounting of Participant's actual costs for items
identified in Section IV.A. of this Agreement. Should the total
allowable expenditures by the Participant be less than $2,346,500,
the maximum assistance provided to the Participant shall be
reduced fifty cents for each dollar of shortfall .
D. Security for Payments
The Agency financed obligation under this Agreement shall be
secured by a note to the benefit of the Participant (see Exhibit
A) . The note shall be in an amount equal to the amount determined
in Section II C. above and not to exceed $1,396,000. Except for
Tax Increment Revenues and Sales Tax Increment payable to Partici-
pant for periods prior to such date, any balance remaining on the
note as of January 1, 2000, shall be extinguished and as of that
date the note shall be considered paid in full .
Upon the opening for business of the Buffums store on the Site,
Participant's rights hereunder to receive Tax Increment Revenues
and Sales Tax Increment shall be deemed to be vested subject to
verification of actual costs as provided in Section IV A hereof.
Any subsequent sale of the Site shall not constitute an assignment
of Participant's right hereunder unless there is an express,
written assignment signed by Participant.
III . ADDITIONAL PAYMENTS TO BUFFUMS
In addition to the monies identified in Section II , the Agency shall pay
to the Participant three hundred thousand dollars ($300,000) for the
benefit of Buffums Department Stores, in recognition of the excess costs
incurred by Buffums for demolition, correction of deferred code items ,
job training, and related opening expenses for their new store in the
Palm Springs Mall . The first payment of one hundred fifty thousand
($150,000) shall he made on or before thirty days after the opening of
the Buffums Palm Springs Mall store or January 1 , 1990, whichever is
later. The second payment of one hundred and fifty thousand dollars
($150,000) shall be made on or before six (6) months after the first
payment. The Participant shall pay these sums to Buffums Department
Stores within thirty (30) days after their receipt of said funds by the
Participant from the Agency. Notwithstanding the foregoing, Participant
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AGREEMENT: Palm Sprin*Mall •
and Buffums may agree among themselves as to the disposition of such
funds .
IV. IMPROVEMENT OF THE SITE
A. Scope of Development Improvements
The Participant shall provide for the establishment and operation
of a Buffums Department Store on the Site. The Participant shall
provide incentives to Buffums totalling at least $2,346,500. Said
incentives may be in the form of free rent, construction
allowances , mall improvements required by Buffums , and other
expenses directly related to the opening of the Buffums store.
Verification of said incentive costs shall be provided to the
Agency by the Participant within ninety (90) days after the
opening of the Buffums store or December 31, 1990, whichever is
earlier. Should the total costs of said incentives be less than
$2,346,500, the maximum assistance provided to the Participant in
Section IIC. shall be reduced fifty cents for each dollar of
shortfall .
B. Repainting of the Mall
Within sixty (60) days after the execution of this Agreement, the
participant shall submit a plan to the City Planning Department
for the repainting of portions of the accent colors on the
exterior of the Mall to create a more subdued color scheme for the
facility. Within one hundred twenty (120) days of the approval of
a repainting plan by the City Planning Department, the Participant
shall complete the repainting of the Mall pursuant to said
approval . In no case shall the Participant be required to repaint
more than thirty percent (30%) of the wall surface of the Mall
buildings.
C. Cost of Construction
The cost of improving the Site and constructing all improvements
thereon shall be borne by the Participant. The Agency and Parti-
cipant shall each pay the costs necessary to administer and carry
out their respective responsibilities and obligations under this
Agreement.
D. City and Governmental Permits
Before the commencement of construction of any buildings ,
structures , or other work of improvement upon the Site, the Parti-
cipant shall at its own expense secure or cause to be secured any
and all permits which may be required by the City or other govern-
mental agency affected by such construction or work. The Agency
shall provide all proper assistance to the Participant in promptly
securing these permits.
E. Maintenance
The Participant agrees that it or its successors in interest
respecting the Site shall ensure that the improvements on the Site
shall continue to be well-maintained in a manner at least
consistent with their condition as of the completion date of the
Buffums Palm Springs store.
F. Applicable Laws
The Participant shall carry out or cause to be carried out con-
struction of the improvements in conformity with all applicable
laws .
V. DEFAULTS, REMEDIES AND TERMINATION
A. Defaults - General
Subject to the extensions of time set forth in this Agreement,
failure or delay by either party to perform any term or provision
of this Agreement constitutes a default under this Agreement. The
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AGREEMENT: Palm Sprir*Mall 46
party who so fails or delays must immediately commence to cure,
correct or remedy such failure or delay, and shall complete such
cure, correction or remedy with reasonable diligence and during
any period of curing shall not be in default.
The injured party shall give written notice of default to the
party in default, specifying that default complained of by the
injured party. Except as required to protect against further
damages , and except as otherwise expressly provided in this Agree-
ment, the injured party may not institute proceedings against the
party in default until thirty (30) days after giving such notice.
Failure or delay in giving such notice shall not constitute a
waiver of any default, nor shall it change the time of default.
Except as otherwise expressly provided in this Agreement, any
failure or delay by either party in asserting any of its rights or
remedies as to any default shall not operate as a waiver of any
default or of any such rights or remedies or deprive such party of
the right to maintain any action or proceeding which it may deem
necessary to protect, assert or enforce any such rights or
remedies .
B. Legal Actions
1. Institution of Legal Actions
In addition to any other rights or remedies, either party
may institute legal action to cure, correct, or remedy any
default, to recover damages for any default, or to obtain
any other remedy consistent with the purpose of this Agree-
ment. Such legal actions must be instituted in the Superior
Court of the County of Riverside, State of California , in
any other appropriate court in that County, or in the
Federal District Court in the Central District of
California. The prevailing party in any such legal action
may recover its reasonable attorney's fees .
2. Applicable Law
The laws of the State of California shall govern the inter-
pretation and enforcement of this Agreement.
C. Rights and Remedies are Cumulative
Except as otherwise expressly stated in this Agreement, the
remedies of the parties are cumulative, and the exercise by either
party of one or more of such 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 rights or
remedies for the same default or any other default by the other
party.
D. Damages
If the Participant or the Agency defaults with regard to any of
the provisions of this Agreement, the nondefaulting party shall
serve written notice of such default upon the defaulting party.
If the default is not cured or commenced to be cured by the
defaulting party thirty (30) days after service of the notice of
default, the defaulting party shall then be liable to the other
party for any damages caused by such default.
E. Specific Performance
If the Participant or the Agency defaults under any of the provi-
sions of this Agreement, the nondefaulting party shall serve
written notice of such default upon the defaulting party. If the
default is not commenced to be cured by the defaulting party
within thirty (30) days after service of the notice of default,
the nondefaulting party, at its option, may then institute an
action for specific performance of the terms of this Agreement
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AGREEMENT: Palm Sprinomall
VI . GENERAL PROVISIONS
A. Notices , Demands and Communications Between the Parties
Formal notices , demands and communications between the Agency and
the Participant shall be sufficiently given if dispatched by
registered or certified mail , postage prepaid, return receipt
requested, to the principal offices of the Agency and the Partici-
pant as set forth in this Agreement. Such written notices ,
demands and communications may be sent in the same manner to such
other addresses as either party may from time to time designate by
mail .
B. Conflict of Interests
No member, official or employee of the 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 interest or
the interests of any corporation, partnership or association in
which is is directly interested.
C. Nonliability of Agency Officials and Employees
No member, official or employee of the Agency shall be personally
liable to the Participant in the event of any default or breach by
the Agency or for any amount which may become due to the Partici-
pant or on any obligations under the terms of this Agreement.
D. Obligation to Refrain from Discrimination.
The Participant covenants and agrees for itself, its successors ,
its assigns and every successor in interest to the Site or any
part thereof, 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 Site, nor shall the Participant itself,
or any person claiming under or through it, 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 , subtenants , sublessees , or vendees
of the Site. The foregoing covenants of this Section VI-D. shall
run with the land and shall remain in effect in perpetuity.
E. Amendment of Redevelopment Plan
Pursuant to provisions of the Redevelopment Plans for modification
or amendment thereof, the Agency agrees that no amendment which
changes the uses or development permitted on the Site or changes
the restrictions or controls that apply to the Site or otherwise
affect the Site or Participant's rights under this Agreement shall
be made or become effective without the prior written consent of
the Participant. Amendments to the Redevelopment Plan applying to
other property in the Project Areas shall not require the consent
of the Participant.
F. Amendments to this Agreement
The Participant and the Agency agree to mutually consider reason-
able requests for amendments to this Agreement which may be made
by any of the parties hereto, lending institution, or bond counsel
of financial consultants to the Agency, provided said request are
consistent with this Agreement and would not substantially alter
the basic business terms included herein.
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AGREEMENT: Palm Sprin*all •
VII . ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS
This Agreement is executed in five (5) duplicate originals each of which
is deemed to be an original .
This Agreement integrates all of the terms and conditions mentioned
herein or incidental hereto, and supersedes all negotiations or previous
agreements between the parties with respect to all or any part of the
subject matter hereof.
All waivers of the provisions of this Agreement must be in writing and
signed by the appropriate authorities of the Agency and the Participant,
and all amendments thereto must be in writing and signed by the
appropriate authorities of the Agency and the Participant.
L981 COMMUNITY REDEVELOPMENT AGENCY
i" OF THE CITY OF PALM SPRINGS -
Y ChaIrma
I
By
Secretary
"AGENCY"
19 K-R00 CORP.
(` a California Corporation
C B.y-CT 7
NICHOiL'AS E. 0 NEILL, it's President
BY �za,
T,NIi) a,r MARK E. ABRAMSON, lt't Secretary
izn,
"PARTICIPANT'
M'aG �:.,C_J�'16.7 �13L fiL L+4S e.,F,✓J Ji,!11;u�_� .iLl�1 u;.i-',:�iuC;4: .
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EXHIBIT A
PROMISSORY NOTE
$1,396,000 1989
FOR VALUE RECEIVED, the undersigned , COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF PALMS SPRINGS, (herein called the "Agency") hereby promises to pay to
K-R00 CORP. , a California corporation (herein called the "Participant") , a
principal sum hereunder determined, at 3700 Wilshire Boulevard , Los Angeles ,
California, 90010, or any such other place as the Participant may, from time
to time, designate in writing. Principal shall be payable in lawful money of
the United States of America.
This Note is made and delivered pursuant to and in implementation of an Owner
Participation Agreement entered into as of , (the "OPA")
between the Agency and the Participant. The OPA calls for the Participant or
Participant's sole shareholder, Benequity Properties , a California Limited
Partnership ("Benequity") , to expend up to $2,346,500 to provide incentives
and improvements for Buffum's Department Store at the Palm Springs Mall , which
is located in the Baristo-Farrell Redevelopment Project Area of the City of
Palm Springs .
Under the OPA, the Participant shall expend such funds as necessary to make
improvements to certain real property designated in the OPA as the "Site" , and
a portion of such expenditures in the amount of ONE MILLION THREE HUNDRED
NINETY-SIX THOUSAND DOLLARS ($1,396,000) shall be subject to repayment by the
Agency.
A. Definitions .
1 . "Tax Increment Revenues" means the increase in the property taxes
received by the Agency from the Site from the increase in assessed
valuation over the assessed valuation in the Base Year of 1988-89
fiscal year.
2. "Sales Tax Increment" means the increase in the amount of sales
tax revenues received by the City or Agency from the Site in
subsequent calendar years over the amount received by the City in
the Base Calendar Year of 1988.
3. "Site" means the property described in Section I .C. of the OPA.
B. Principal and Interest.
1. The principal amount of this Note is ONE MILLION THREE HUNDRED
NINETY-SIX THOUSAND DOLLARS ($1,396,000) , which constitutes the
reimbursable portion of the cost of improvements made or agreed to
be made to the Site by the Participant and/or Benequity and funds
expended or agreed to be expended by the Participant and/or
Benequity pursuant to the OPA.
2. This Note shall not bear interest unless and until there is a
default in payment of any installment; whereupon, interest shall
accrue at the rate of ten percent per annum on any such delinquent
installment.
EXHIBIT A (Continued)
C. Repayment.
The Agency shall make periodic payments to the Participant to reduce the
principal amount of this Note, as follows :
1. Tax Increment Revenues
For a period of ten (10) years , commencing January 1, 1990, the
Participant shall receive one hundred percent (100%) of all of the
Tax Increment Revenues . The Tax Increment Revenues shall be paid
to the Participant semi-annually, in arrears, within thirty (30)
days following allocation of the tax increment revenues to the
Agency. The assessed valuation, as reported by the Riverside
County Assessor's Office, for the Site in the Base Year was
$16,488,026.
2. Sales Tax Increment
For a period of ten (10 years , commencing January 1 , 1990, the
Participant shall receive an amount equal to that portion of the
retail sales taxes equal to one hundred percent (100%) up to
$100,000 and fifty percent (50%) of the amount over $100,000 of
the increased annual sales tax accruing to the City from the Site
(the "Sales Tax Increment") . At the end of each calendar year,
the Participant shall provide, or shall cause to be provided, to
the Agency a list of the active tenants in the Mall including each
tenant's sales tax identification number as and if reported by
said tenants pursuant to the provisions of said tenant's lease.
The Sales Tax Increment is the increase in the amount of sales tax
revenues recieved by the City or Agency from the Site in subse-
quent calendar years over the amount received by the City in the
Base Calendar Year of 1988. The Sales Tax Increment due the
Participant shall be paid to the Participant annually, in arrears ,
within ninety (90) days following: 1) the collection of retail
sales tax by the City, or 2) the receipt of the information from
the Participant regarding tenants at the Site, as outlined above
in this Section; whichever is later. The amount received by the
City in the Base Calendar Year of 1988 was $258,504 which
represents one percent (1%) of the retail sales at the Site as
reported to the California State Board of Equalization.
Time is of essence of every obligation under thisx4ote.
If an event of default occurs , the Agency promises to pay all costs of
enfocement and collection, including reasonable attorneys fees, whether of not
such enforcement and collection includes the filing of a law suit.
This Note shall be cancelled as of January 1, 2000, subject to the payment of
Tax Increment Revenues and Sales Tax Increment accrued for periods ending
prior to that date.
COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS