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HomeMy WebLinkAboutRes 05-91 and 510 Monies to the Foundation for CSUSB Public Imprvmnts PA No. 2CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF CITY COUNCIL RESOLUTION NO. 05- 91 AND REDEVELOPMENT AGENCY RESOLUTION NO.510 APPROVING THE ADVANCE OF MONIES TO THE FOUNDATION FOR CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO FOR COST OF CERTAIN PUBLIC IMPROVEMENTS TO BE CONSTRUCTED IN PROJECT AREA NO. 2 SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING DATE: OCTOBER 27, 2005 CONTENTS: CITY RESOLUTION NO. 05-91 AGENCY RESOLUTION NO. 510 FUNDING AGREEMENT CSU STUDENT ENROLLMENT Recommendation: That the City Council and Agency Board open the joint public hearing and receive testimony pursuant to Section 33445 of the Health and Safety Code. 1. By Minute Motion, that the City Council approve Resolution No. 05- 91 a resolution of the City Council approving the advance of monies to the Foundation for California State University, San Bernardino for cost of certain public improvements to be constructed in Project Area No. 2. 2. By Minute Motion, that the Agency Board approve Resolution No. 510, a resolution of the Palm Desert Redevelopment Agency approving the advance of monies to the Foundation for California State University, San Bernardino for cost of certain public improvements to be constructed in Project Area No. 2. Discussion: At its meeting of July 14, 2005, the City Council received a report from the City Manager recommending the City's/Agency's participation in the construction of California State University, San Bernardino's (CSUSB) nursing building. The Council approved that recommendation authorizing staff to: Staff Report Approval of City/Agency Resolutions approving Advance Monies to Foundation for CSUSB for cost of Certain Public Improvements in Project Area No. 2 Page 2 of 2 October 27, 2005 Prepare the appropriate funding agreement and necessary documents contributing $4.5 million to CSUSB Palm Desert Health Sciences Building, including reserving the naming rights for said building and returning it to the Agency Board for approval; and 2. Return to the Agency Board with an amendment to the existing DDA to bring it current with the existing relationship (i.e., reduced student number threshold, extension of time for exclusive development rights, etc.) The documents necessary for the funding of the facility have been prepared and are before the Council/Agency for approval. The Council will confer with the Dean of the Campus to select a name for the Health Sciences Building. The Health Science Building will be built on land currently owned by CSUSB. Staff will work with campus officials to identify timelines for build out of the campus. It is expected that Council members and staff will meet with the Chancellor of the University and campus officials to determine a full-time equivalent student threshold number to incorporate in the final updated document. The current document has no full-time equivalent student number to determine when the campus can be a full university. However, it does identify that the City, Agency and CSU will continue to discuss the potential use of the balance of the land. Other campuses, such as Calstate Channel Islands and Monterey Bay (see attached), have established full universities with FTES below 3,000. It is my understanding that our current FTES is just below 1,000. The updated agreement is to be approved by the City and Agency prior to the delivery of additional land to CSUSB. Subm' ed by: Dave Yrigoy Director of Redevelopment/Housing mh Approval: Carlos L. O a City Mana r/Executive Director ust� McCarthy ,CNO Redevelopme Qaak1'A___ Paul S. Gibson Director of Finance G?RDA\Maria Hunt\WPDATAIYRIGOYENtSTFRPTSttO2705CSUSBhealthOI(Jg.0oc �CTTY COUNCIL/A�TION: D�I��` �- �y,' BY RDA ,�PROVED � �CE I'V�D,_, - O�HER . ON ��-��I'�� �;�;T1N DATE -` -�� . . r 5 VERIFiED BY ������ �Y�S. � ' �pr.S: Original on fife with City Clerk's Office �BSENT: �$STAIN: VERIFIED BY: Orig�nal on File with City Clerk' s Offf.ce CITY OF PALM DESERT NOTICE OF JOINT PUBLIC HEARING NOTICE IS HEREBY GIVEN pursuant to California Health and Safety Code Sections 33445 and 33679 that ort. tiulrsda ,° i' �2 � t.4-iLni-, or as soon as practical thereafter in the City Council Chambers located at 73-510 Fred Waring Drive, Palm Desert, California, a joint public hearing will be held before the Palm Desert City Council and the Palm Desert Redevelopment Agency. At this public hearing, the City Council and Agency will receive public comment concerning a proposed Funding Agreement ("Funding Agreement") among the Agency, the Foundation for California State University, San Bernardino, and California State University, San Bernardino. The Funding Agreement would provide for, among other things, the Agency's commitment to advance $4,500,000 for the construction of an education building (the "Improvement") to be located in the Coachella Valley Center of California State University, San Bernardino in Project Area No. 2 of the Agency. A copy of the Funding Agreement and a summary pertaining to the Improvement are available for public inspection and copying at the office of the City Clerk, located at 73-510 Fred Waring Drive, Palm Desert, California, (760) 346-0611. The summary includes all of the following: (i) an estimate of the amount of taxes allocated to the Agency pursuant to Health and Safety Code Section 33670(b) which the Agency will use to pay for cost of the installation and construction of the Improvement; (ii) the facts supporting the determinations required to be made by the City Council and Agency pursuant to Health and Safety Code 33445; and (iii) the redevelopment purpose for which such taxes are being used to pay for the cost of the installation and construction of the Improvement. All interested persons are invited to attend and provide testimony and comments to the City and the Agency concerning the proposed Funding Agreement. You are hereby advised that should you desire to legally challenge any action taken by the City or the Agency with respect to the Funding Agreement, you may be limited to raising only those issues and objections which you or someone else raised at or prior to the time of the public hearing. Dated: September 30, 2005 RA HELLE D. KLASSEN, CITY C ERK! SECRETARY TO THE PALM DESERT REDEVELOPMENT AGENCY P6402-0001\839089v1.doc CSU I Public Affairs i Student Enrollment at the CSU CSU Enrollment for Fall 2000 Page 1 of 3 Explore the System Issues & Ideas Locate & Find InfoCenter Home Student Enrollment at the CSU CSU Enrollment for Fall 2004 Giving Headcount and Full -Time Equivalent Numbers by Campus Campus Bakersfield Channel Islands Chico Dominguez Hills East Bay Fresno Fullerton Humboldt Long Beach Los Angeles Maritime Academy Monterey Bay Northridge Pomona Sacramento San Bernardino San Diego San Francisco San Jose San Luis Obispo San Marcos Sonoma Stanislaus Int'I Programs CalStateTEACH Systemwide 2004 headcount 7,755 2,021 15,734 12,613 13,061 19,781 32,744 7,550 33,479 20,307 759 3,945 31,341 19,003 27,972 16,194 32,936 28,804 29,044 17,582 7,365 7,977 7,858 583 640 397,048 2003 headcount 7,933 1,560 15,516 13,248 13,455 22,342 32,592 7,725 34,715 20,644 698 3,760 33,426 19,804 28,375 16,927 33,676 29,686 28,932 18,303 7,777 8,371 8,072 618 798 408,946 2004 FTES 6,615 1,656 14,215 8,523 10,670 17,133 24,142 7,030 26,009 15,457 756 3,851 23,237 15,964 22,091 13,100 26,769 22,187 21,554 16,643 5,837 6,958 5,778 427 641 317,234 Note: Figures for Dominguez Hills now include the Statewide Nursing Program. March 2005 2003 FTES 6,707 1,296 13,883 8,749 10,778 18,166 23,428 7,092 26,606 15,223 771 3,646 24,853 16,603 22,294 13,224 27,004 22,483 21,167 17,196 5,979 7,333 5,870 680 578 321,607 http://www.calstate.edu/PA/info/enroll.shtml 10/20/2005 RESOLUTION NO. 05- 91 A RESOLUTION OF THE CITY OF PALM DESERT APPROVING THE ADVANCE OF MONIES TO THE FOUNDATION FOR CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO FOR COSTS OF CERTAIN PUBLIC IMPROVEMENTS TO BE CONSTRUCTED IN PROJECT AREA NO. 2 THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. In order to effectuate the provisions of the Redevelopment Plan (the "Redevelopment Plan") for Project Area No. 2 (the "Project Area"), the Palm Desert Redevelopment Agency (the "Agency") proposes to enter into that certain Funding Agreement (the "Funding Agreement") with the Foundation for California State University, San Bernardino (the "Foundation"), and California State University, San Bernardino ("CSUSB") pursuant to which the Agency will advance to the Foundation $4,500,000 to finance in part the cost of construction of a college facility to be owned and operated by CSUSB for public educational purposes (the "Public Improvements"), and located on property presently owned by the CSUSB within Project Area No. 2 (the "Property"). The Property constitutes a portion of the University Campus to be developed by CSUSB pursuant to that certain Disposition and Development Agreement dated as of October 14, 1999 by and between the Agency and the Board of Trustees of CSUSB, as amended by a First Amendment to Disposition and Development Agreement dated as of March 22, 2001. Section 2. On October 27, 2005, the City Council (the "City Council") of the City of Palm Desert (the "City") and the Agency held a duly noticed public hearing on the approval of the Agency's proposed advance of $4,500,000 to the Foundation pursuant to the Funding Agreement, at which time all persons desiring to comment on, or ask questions concerning, the advance of such monies and the Funding Agreement were given the opportunity to do so. Prior to the public hearing, information concerning the Agency's proposed advance of monies and the Funding Agreement was available for public inspection in the office of the City Clerk in accordance with Health and Safety Code Sections 33445 and 33679. The Foundation and CSUSB have each previously held the public hearings required by Health and Safety Code Sections 33445 and 33679 with respect to the monies to be advanced by the Agency pursuant to the terms of the Funding Agreement. Section 3. The proposed Public Improvements are located in and will benefit the Project Area. The development of the Public Improvements will assist in the elimination of blight. The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight are so prevalent and so substantial that there is a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private RESOLUTION NO. 05- 91 enterprise or governmental action, or both, without redevelopment. Among other things, the Project Area contains vacant and underutilized properties, properties which suffer from depreciated or stagnant property values and impaired investments, and deteriorated, aged and obsolete buildings. Such conditions tend to further deterioration and disuse because of the lack of incentive to landowners and their inability to improve, modernize or rehabilitate their property while the condition of the neighboring property remains unchanged. In addition, the Project Area is characterized by the existence of inadequate public improvements and utilities, which cannot be remedied by private or governmental action without redevelopment. The development of the Public Improvements and related uses on the Property will provide needed educational facilities and will redevelop a vacant, underutilized parcel. Overall, the construction of the Public Improvements will help remedy the lack of adequate public improvements, thereby eliminating a factor which substantially hinders the economically viable use of property and buildings within the Project Area, and the construction of an educational facility on a previously vacant, underutilized parcel will assist in the revitalization of the Project Area and create employment opportunities for residents of the Project Area. All of the foregoing will assist in encouraging private sector investment in the Project Area and will assist in eliminating blighting conditions in the Project Area and will additionally be of benefit to and assist in eliminating blighting conditions in the Project Area. Section 4. The budget constraints of the City prevent the City from financing the installation and construction of the Public Improvements by any means. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefitting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 5. Based upon the foregoing and other information presented to the City Council, the City Council hereby finds and determines that: (i) the advance by the Agency of up to $4,500,000 to the Foundation pursuant to the Funding Agreement is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; (ii) no other reasonable means of financing the Public Improvements are available to the City; (iii) the Public Improvements will be of benefit to Project Area and the immediate neighborhood in which the Public Improvements are located; and (iv) the advance by the Agency for the cost of the Public Improvements will assist in the elimination of one or more blighting conditions inside the Project Area. RESOLUTION NO. 05-91 Section 6. The City hereby approves (a) the Funding Agreement, and (b) the advance by the Agency of up to $4,500,000 to the Foundation for the construction of the Public Improvements. PASSED, APPROVED and ADOPTED this 27"' day of October, 2005, by following vote to wit: AYES: NOES: ABSENTS: ABSTAINS: ATTEST: Rachelle D. Klassen, City Clerk Buford A. Crites, Mayor RESOLUTION NO. 510 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE ADVANCE OF MONIES TO THE FOUNDATION FOR CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO FOR COSTS OF CERTAIN PUBLIC IMPROVEMENTS TO BE CONSTRUCTED IN PROJECT AREA NO. 2 THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. In order to effectuate the provisions of the Redevelopment Plan (the "Redevelopment Plan") for Project Area No. 2 (the "Project Area"), the Palm Desert Redevelopment Agency (the "Agency") proposes to enter into that certain Funding Agreement (the "Funding Agreement") with the Foundation for California State University, San Bernardino (the "Foundation"), and California State University, San Bernardino ("CSUSB") pursuant to which the Agency will advance to the Foundation $4,500,000 to finance in part the cost of construction of a college facility to be owned and operated by CSUSB for public educational purposes (the "Public Improvements"), and located on property presently owned by the CSUSB within Project Area No. 2 (the "Property"). The Property constitutes a portion of the University Campus to be developed by CSUSB pursuant to that certain Disposition and Development Agreement dated as of October 14, 1999 by and between the Agency and the Board of Trustees of CSUSB, as amended by a First Amendment to Disposition and Development Agreement dated as of March 22, 2001. Section 2. On October 27, 2005, the City Council (the "City Council") of the City of Palm Desert (the "City") and the Agency held a duly noticed public hearing on the approval of the Agency's proposed advance of $4,500,000 to the Foundation pursuant to the Funding Agreement, at which time all persons desiring to comment on, or ask questions concerning, the advance of such monies and the Funding Agreement were given the opportunity to do so. Prior to the public hearing, information concerning the Agency's proposed advance of monies and the Funding Agreement was available for public inspection in the office of the City Clerk in accordance with Health and Safety Code Sections 33445 and 33679. The Foundation and CSUSB have each previously held the public hearings required by Health and Safety Code Sections 33445 and 33679 with respect to the monies to be advanced by the Agency pursuant to the terms of the Funding Agreement. Section 3. The proposed Public Improvements are located in and will benefit the Project Area. The development of the Public Improvements will assist in the elimination of blight. The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight are so prevalent and so substantial that there is a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private P6402•000FAgency Resolution - CSUSB RESOLUTION NO. 510 enterprise or governmental action, or both, without redevelopment. Among other things, the Project Area contains vacant and underutilized properties, properties which suffer from depreciated or stagnant property values and impaired investments, and deteriorated, aged and obsolete buildings. Such conditions tend to further deterioration and disuse because of the lack of incentive to landowners and their inability to improve, modernize or rehabilitate their property while the condition of the neighboring property remains unchanged. In addition, the Project Area is characterized by the existence of inadequate public improvements and utilities, which cannot be remedied by private or governmental action without redevelopment. The development of the Public Improvements and related uses on the Property will provide needed educational facilities and will redevelop a vacant, underutilized parcel. Overall, the construction of the Public Improvements will help remedy the lack of adequate public improvements, thereby eliminating a factor which substantially hinders the economically viable use of property and buildings within the Project Area, and the construction of an educational facility on a previously vacant, underutilized parcel will assist in the revitalization of the Project Area and create employment opportunities for residents of the Project Area. All of the foregoing will assist in encouraging private sector investment in the Project Area and will assist in eliminating blighting conditions in the Project Area and will additionally be of benefit to and assist in eliminating blighting conditions in the Project Area. Section 4. The budget constraints of the City prevent the City from financing the installation and construction of the Public Improvements by any means. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefitting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 5. Based upon the foregoing and other information presented to the Agency, the Agency hereby finds and determines that: (i) the advance by the Agency of up to $4,500,000 to the Foundation pursuant to the Funding Agreement is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; (ii) no other reasonable means of financing the Public Improvements are available to the City; (iii) the Public Improvements will be of benefit to Project Area and the immediate neighborhood in which the Public Improvements are located; and (iv) the advance by the Agency for the cost of the Public Improvements will assist in the elimination of one or more blighting conditions inside the Project Area. Section 6. The Agency hereby approves (a) the Funding Agreement, and (b) the advance of up to $4,500,000 to the Foundation for the construction of the Public Improvements. The execution of the Funding Agreement by the Agency is conditioned upon the prior or concurrent approval and execution of the Funding Agreement by the Foundation and CSUSB. The Agency hereby authorizes its Executive Director to execute and deliver the Funding Agreement in substantially the P6402•.0001'Agency Resolution - CSCSB 2 RESOLUTION NO. 510 form presented to the Agency at this meeting and now on file with the City Clerk, with such changes therein or such other documents or actions as may be necessary or convenient and as the Executive Director may approve, in his discretion, as being in the best interests of the Agency, such approval to be conclusively evidenced by the execution and delivery thereof. PASSED, APPROVED and ADOPTED this 27th day of October, 2005, by the following vote to wit: AYES: NOES: ABSENTS: ABSTAINS: Buford A. Crites, Chairman ATTEST: Rachelle D. Klassen, Secretary 1`6402.00OI',Agency Resolution - CSUSB 3 FUNDING AGREEMENT This Funding Agreement is executed on 2005, (the "Agreement") by and among the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), THE FOUNDATION FOR CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO, a California nonprofit corporation (the "Foundation") and THE BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY (California State University, San Bernardino), the State of California acting in its higher education capacity, ("CSUSB"). RECITALS WHEREAS, the purpose of this Agreement is to effectuate the Redevelopment Plan ("Redevelopment Plan") for Project Area 2 ("Project Area") of the Agency, in the City of Palm Desert, California ("City'), by facilitating construction of publicly owned improvements to real property within the Project Area by providing funds for the construction of a publicly owned college facility. WHEREAS, the Redevelopment Plan has been approved and adopted by Ordinance No. 509 of the City adopted July 15, 1987. WHEREAS, 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. WHEREAS, the Foundation has been formed to financially assist the California State University, San Bernardino ("CSUSB") in its operation of an off -campus education center and intends to use the funding set forth in this Agreement, together with other funding, to construct a new 23,000 sq. ft. building at the off -campus center in the City which will be owned and operated by CSUSB ("Off Campus Building"). The Off Campus Building to be constructed with the funding provided through this Agreement is described in the attached Exhibit A, which is incorporated in this Agreement by this reference. WHEREAS, construction of the Off Campus Building utilizing Agency funds will assist in the elimination of blight in the Project Area, provide additional jobs, and substantially improve the economic and physical conditions in the Project Area in accordance with the purposes and goals of the Redevelopment Plan. WHEREAS, the construction of the Off Campus Building as contemplated by this Agreement is consistent with the provisions of the Redevelopment Plan and each of its applicable elements. WHEREAS, the Agency and CSUSB entered into a Disposition and Development Agreement dated as of October 14, 1999, as amended by a First Amendment to Disposition and Development Agreement dated as of March 22, 2001 P6402\000 l \83 8661.4 (as so amended, the "DDA") pursuant to which the Agency transferred to CSUSB certain real property (the "Site") generally located at the northeast corner of Frank Sinatra Drive and Cook Street, within the City of Palm Desert, California, (the "City") within one mile of Interstate 10 and four miles from State Route 111. The Site is legally described in Exhibit B, attached hereto and incorporated by reference herein. WHEREAS, a material inducement to Agency to enter into this Agreement is the Foundation's covenant to use the Agency funds to construct the Off Campus Building on the Site in accordance with the terms of this Agreement. Also, the Agency is relying upon CSUSB's and the Foundation's determinations that there are no other reasonable means of financing the Off Campus Building other than the Agency's funds to be provided pursuant to this Agreement. WHEREAS, CSUSB, the Foundation, the Agency and the City have each held the public hearings required by Califomia Health and Safety Code Sections 33445 and 33679 with respect to the financing assistance to be provided by the Agency pursuant to the terms of this Agreement. NOW, THEREFORE IT IS AGREED as follows: 1. Educational Services. Foundation agrees to construct the Off Campus Building as described in this Agreement, and CSUSB and Foundation agree that upon completion of construction the Off Campus Building will be owned and operated by CSUSB as a public education facility. 2. (a) Amount. Agency allocates to Foundation the sum of $4.5 million ($4,500,000). Foundation agrees that all funds provided by Agency will be restricted by Foundation and used only to construct the Off- Campus Building. (b) Initial Pavment. Agency shall disburse $1.5 million ($1,500,000) within thirty days (30) of execution of this Agreement. (c) Subsequent Pavments. Agency shall disburse $1.5 million ($1,500,000) on June 1, 2006, and $1.5 million ($1,500,000) on June 1, 2007. 3. Selection of Naming Oogortunities. The City shall meet and confer with the Dean of the Palm Desert Campus to determine the naming opportunity for the Off Campus Building. The City Council of the City shall have the right to designate the name of the Off Campus Building with the approval of CSUSB (the "City Name"). 4. Term. CSUSB agrees to use the City Name for so long as the Off Campus Building is owned and/or operated by CSUSB, or a successor institution of higher education, unless City elects to withdraw the City Name; in which case CSUSB or its successor may rename the Off Campus Building. P6402\0001 \83 8661.4 2 5. Signage. (a) Foundation shall, at its sole cost and expense, install or cause to be installed any and all signs identifying the Off Campus Building by the City Name, including street or directional signs. (b) The City Name shall be used in reference to the Off Campus Building in all official materials authored by Foundation and/or CSUSB. As used herein "official materials" include all authorized press releases, publicity, media announcements, interviews, web sites, advertising, tickets, pamphlets, maps, brochures, informational materials, and all other forms of official CSUSB communication in any form whether written, video taped, audio taped, electronic, officially spoken in public venues, or officially spoken to media persons. (c) All directional and informational signs (including, without limitation, all entrance signs) shall refer to the Off Campus Building by the City Name. (d) Foundation and CSUSB may use their names in conjunction with the City Name. (e) On or before the opening of the Off Campus Building, or any portion thereof, City, CSUSB, and Foundation shall meet and confer in good faith regarding a City Name signage plan consistent with an overall signage plan of CSUSB. The City Name signage plan will address the exact size, design, materials, and location of City Name. The signage plan shall be consistent with existing signage at the Off - Campus Center in Palm Desert. (f) CSUSB, at its sole cost and expense, shall maintain all signs bearing the City Name in a first class condition and shall effectuate any and all repairs needed for these signs. (g) Prior to the installation of any signage covered by the Agreement, Foundation shall present a signage plan, including dimensions to City for its review and comment, said comments shall not be unreasonably delayed or withheld. 6. Condition To Disbursement and Reimbursement. All amounts paid to Foundation pursuant to this Agreement shall be subject to prompt reimbursement to Agency, and the obligation of Agency to disburse any amounts herein shall terminate, upon the occurrence of any of the following events: (a) If construction of the Off Campus Building is not diligently prosecuted to completion, or if such completion does not occur on or before the tenth (10th) anniversary of the date of this Agreement, or (b) If Foundation or CSUSB defaults under any material provision of this Agreement or the DDA, and such default is not cured within 60 days after written notice thereof is given by Agency to Foundation, or P6402\0001 \838661.4 3 (c) Foundation and/or CSUSB terminates or attempts to terminate this Agreement for any reason other than Agency's default in its obligation to make the payments referenced in Section 2 above, or (d) Foundation and/or CSUSB fails to fulfill the responsibilities, duties, and obligations set forth herein. 7. Administration of Aareement. The Executive Director of the Agency, or his designee, is hereby designated to administer this Agreement on behalf of Agency and is hereby authorized to make any determination on behalf of Agency necessary for implementation of the provisions of this Agreement. 8. Reviews. Agency shall have the right to monitor Foundation and CSUSB's performance under this Agreement. Agency will make good faith efforts to notify Foundation and CSUSB in writing within thirty (30) days after its finding of any failure to perform by Foundation or CSUSB; provided, however, the failure of Agency to provide such thirty (30) day notice shall not prejudice Agency's right to provide the notice of default described in Section 6 above. When notice of any such finding is provided to Foundation and/or CSUSB, Foundation and/or CSUSB promises to take appropriate action immediately. 9. Compliance with Law. (a) CSUSB and Foundation agree that the Off Campus Building will be constructed and operated in full compliance with the applicable provisions of the DDA, and CSUSB further agrees to comply with all applicable state licensing standards, all applicable accrediting standards, and any other standards or criteria established by the State of California to assure quality of education. (b) This Agreement shall be governed and construed in accordance with the laws of the State of California. 10. Complete Agreement. Except to extent otherwise expressly provided herein, this Agreement contains all the terms and conditions agreed upon by the parties, and no other understanding, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto. This Agreement supersedes all previous agreements, if any, among the parties with respect to the subject matter hereof. 11. Amendments. Any alternations, variations, modification or waivers of provisions to this Agreement shall be valid only when reduced to writing, duly signed and attached to the original of this Agreement. 12. Assignability. Neither CSUSB nor Foundation may assign any interest in this Agreement without the prior written consent of Agency, and any attempted assignment without such consent shall be void. This Agreement binds the devisees, assigns and successors of Foundation and CSUSB. P6402',.0001 `.838661.4 4 IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto on the date first above written. PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic In Its Chairperson Attest: Its Secretary THE BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY (CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO), the State of California acting in its higher education capacity By: Albert K. Karnig, President California State University, San Bernardino THE FOUNDATION FOR CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO By: David DeMauro, Treasurer The Foundation for California State University, San Bernardino P6402',.0001 \83 8661.4 5 P6402\0001 \83 866l.4 EXHIBIT A DESCRIPTION OF OFF CAMPUS BUILDING [to be provided] A-1 P6402%0001\838661.4 EXHIBIT B LEGAL DESCRIPTION OF SITE [to be provided] In