HomeMy WebLinkAboutClaim Number 688 - Civic Center Barrio Housing CorporationCITY OF PALM DESERT
CITY CLERK DEPARTMENT
STAFF REPORT
REQUEST: CLAIM AGAINST THE CITY (#688) BY CIVIC CENTER BARRIO
HOUSING CORP. IN AN UNSPECIFIED TOTAL AMOUNT
SUBMITTED BY: Rachelle Klassen, City Clerk
DATE: December 8, 2011
CONTENTS: • Staff Report
• Recommendations of Claims Adjusters and Staff
• Claim No. 688
Recommendation
By Minute Motion, reject the Claim and direct the City Clerk to so notify the
Claimant.
Background
Based on a review of the subject Claim and the recommendation of the Claims Adjuster,
Risk Manager, City Attorney, and staff, it is recommended that the Claim be rejected.
Discussion of this item should be held in Closed Session pursuant to Government Code
Section 54956.9(b), potential litigation.
Submitted by:
rd k
Attachment (as noted)
Approved.
f
J HN M. WOHLMUTH
CITY MANAGER
CITY COUNCIL ACTION
APPROVED— ✓ DENIFD
RECEIVED OTHER.
"NII?I?TING DATE
AYES: X11.svi
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A13SF,NT:
VFRIFE?I) l3Y: - �K l o
Ori91i'al on "Ic With City Clo-Ws Office
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TO: City of Palm Desert
ATTENTION: Rachelle D. Klassen, MMC
r ! L f
'S OFFICE
,1 EiE_SE:RT, CA
November 9, 2011 7.111 Nov 10 AN 11: 28
RE: Claim Seacrist v. City of Palm Desert
Claimant Civic Center Barrio Housing Corp.
D/Event 3/31/10
Rec'd Y/Office 10/27/11
Our File 1536863 RQ
We have reviewed the above captioned claim and request that you take the action indicated
below:
• CLAIM REJECTION: Send a standard rejection letter to the claimant's attorney.
Please provide us with a copy of the notice sent, as requested above. If you have any
questions please contact the undersigned.
Very Truly Yours,
CARL WARREN & CO.
Richard Marque
cc: CJPIA
Attn: Liability Program Manager
CARL WARREN & CO.
CLAIMS MANAGEMENT•CLAIMS ADJUSTERS
770 Placentia Avenue, Placentia, CA 92870-6832
Mail: P.O. Box 25180, Santa Ana, CA 92799-5180 lrUr fY � 1 y
! 4rt ill
Phone: (714) 572-5200 • (800) 572-6900 •Fax: (714) 961-8131 r
Phone: (714) 740-7999 • (800) 572-6900 • Fax: (714) 740-9412 LAl-
1 1 E
73-510 FRED WARING DRIVE
PALM DEs[RT, CALIFORNIA 921.60-2579
TIL: 760 346-o6i it
i n Fa(*6 ryofp2l mdeserr.orV
TO: CJPIA (c/o CARL WARREN & CO.), CITY MANAGER, CITY ATTORNEY,
ACM FOR REDEVELOPMENT, DIRECTOR OF HOUSING,
RISK MANAGER
DATE: OCTOBER 27, 2011
SUBJECT: CLAIM NO.688 - CLAIM AGAINST THE CITY BY CIVIC CENTER BARRIO
HOUSING CORP., A CALIFORNIA NON-PROFIT CORP., IN AN
UNSPECIFIED TOTAL AMOUNT
The attached Claim No. 688 is being transmitted to you for the following:
❑ Information only.
or
❑ Review and recommendation to the Claims Review Committee for any action
required by the City of Palm Desert.
We would appreciate your report, if requested, by November 28, 2011 , fortimely response
to the Claimant.
t
RACHELLE D. KLASSEN, CMC
CITY CLERK
Attachment (as noted)
N%I.W NI IY Wil
wQFS OCIRALM DESERT
C1T Y UERK'S OFFICE
P Aur.NEIS EBAImM.
CLAIM AGAINST THE CITY OF PALM DESERT
(For Damages) to Person(s) or Personal Property) 2911 OCT 27 PM 3: 33
Received by: I -
via: U.S. Mail Interoffice Mail Over -the -Counter _k�
A CLAIM MUST BE FILED WITH THE CITY CLERK OF THE CITY OF PALM DESERT WIT SIX
MONTHS AFTER WHICH THE INCIDENT OR EVENT OCCURRED. BE SURE YOUR CLAIM IS
AGAINST THE CITY OF PALM DESERT, NOT ANOTHER PUBLIC ENTITY. WHERE SPACE IS
INSUFFICIENT, PLEASE USE ADDITIONAL PAPER AND IDENTIFY INFORMATION BY
PARAGRAPH NUMBER. COMPLETED CLAIMS MUST BE MAILED OR DELIVERED TO THE CITY
CLERK. CITY OF PALM DESERT. 73-510 FRED WARING DRIVE. PALM DESERT, CA 92260.
TO THE HONORABLE MAYOR AND CITY COUNCIL, City of Palm Desert, California:
The undersigned respectfully submit(s) the following claim and information relative to damage(s) to
person(s) and/or personal property:
1. CLAIMANT INFORMATION:
Attn.: Helen R. Brown, President
NAME Civic Center Barrio Housing Corp., a California non-oroflt corp.
ADDRESS 980 West 17th Street Suite E. Santa Ana. CA 92706
PHONE NO. 71 835-0406 DATE OF BIRTH. N A
SOCIAL SECURITY NO. - DRIVER'S LICENSE NO. N/A
Tax ID No.: 953508428
2. Name, telephone number and post office address to which claimant desires notices to be
sent, 4a#=)thwkabove: Attn.: Mark A. Kompa, Esq.
In addition to Law Offices of Mark A. Kompa
23113 Plaza Pointe, Suite 110
Laguna HU s. CA 92653
(949) 600-7800
3. Occurrence or event from which the claim arises:
THIS IS A CLAIM FOR THE CITY TO DEFEND AND INDEMNIFY THE CCBHC ONLY.
a. DATE: juiy 29. 2011 b. TIME: 1 : 30
p.m. c. PLACE (exact and specific
location) 980 west 17th Street, Suite
F. Santa Ana, CA 427n6
Plaintiffs Kathy L. Seacrist and
John A. Mcnn_nAid rarvpri the
D_ efen�_CIvlc Center Barrio Housing
Carp, fM'8Hr) wlth a
Summons and Complaint for Personal
Injury in the Riverside Co.
d. How and under what circumstances did damage or injury occur? Specify the particular
occurrence, event, act or ommission you
claim caused the Injury or damage. (Use
additional paper if necessary.)
Superior Court civil action, captioned
Seacrist & McDonald vs.
City of Palm Desert.. Etc. -RH.,_
et al__., rase Hn_ TNC-11j34 1_
Plaintiffs claim they were lnlured
by t-nxlc mnld At the residential
real Aronerty at the Desgrt RCISP
Prn1ect 75-4Sf, ranaa Blnssnm
Lane, Palm Desert, CA and have
prayed for damages In excess of
e. What particular action by the City, or its employees, caused the alleged damage or
injury?
$12 million, Copies-Qf Plaintiffs'
Complaint and S _a em ntCs)
of Damages are ao ended to this
clalm,ac FxhlhIt "A" and FYhihit
"B". The CCBHC oranted the real
o_rnoer•y to the Palm Desert
Redevelopment Agency (RDA) per
the Grant Deed recorded April 15,
Page I of 2 1996 which Is appended to this
claim as Exhibit "C".
ORIGINAL
4. Give a general description of the indebtedness, obligation, injury, damage, or loss incurred
so far as it may be known at the time of presentation of the claim. If there were no
injuries, state "no Injuries": The RDA sold the real property to Plaintiff
Seacrist on September 19, 1997 per the Grant Deed appended to thLs
claim as Exhibit "D". The CCBHC seeks a defense and indemnity and
reimbursement of Its defense costs) eer Subsection b of Sect 16
"Miscellaneous of the Mousing Assistance Agreement attached as Exh. "E"
5. Give the name(s) of the City employee(s) causing the damage or injury:
The City of Palm Desert and the CCBHC deny that the Plaintiffs were
Injured as a consequence of the City's and the CCBHC's conduct.
6. Name and address of any other person(s) injured:
KathyL. Seacrist / John AnthonyMcDonald
75-456 Orange Blossom Lane, Palm Desert, CA 92211
7. Name and address of the owner of any damaged property:
Kathy L. Seacrist
75-456 Orange Blossom Lane, Palm Desert, CA 92211
9. Damages claimed: See, Plaintiffs' Statement(s) of Damages (Exhibit "B").
a. Amount claimed as of this date: $
b. Estimated amount of future costs:
c. Total amount claimed:
d. Basis for computation of amounts claimed include copies of all bills, invoices,
estimates, etc.): Defendant CCBHC has incurred attorneys' fees 03-932.50)
plus costs ($510.00) totaling $4,442.50 as of 10/24/11 in defense
of civil action. Copies of Invoices to 9/30/11 are attached as Exh.
9. Names and addresses of all witnesses, hospitals, doctors, etc.: Unknown.
The CItv's legal counseL Joe McMillin. Eso. has ornDaLincigael writtan
discovery to Plaintiffs. but Plaintiffs —have not responded tn same.
Attorney McMillin has filed a Mot Lon to Compel Answers Against the
P aintlffs.
10. Any additional information, including police reports, which might be helpful in considering
thisclaim: The RDA acquired the Desert Rose Pro ect from the CCBHC
on April 15, 1996 and the RDA sold the real property to Plaintiff
Seacrist on Sept. 19, 1997. Pl I ff le a theIr In urles bec3an In
WARNINGAT IS A CRIMINAL OFFENSE TO FILE A FALSE CLAIM! PENAL CODE 72; 2 0 0 7 .
INSURANCE CODE 556.1).
I have read the matters and statements made in the above claim, and I know the same to be true of
my own knowledge, except as to those matters stated upon information or belief as to such matters
I believe the same to be true. I certify under penalty of perjury that the foregoing is TRUE AND
CO T.
Si ed t is 25th October , 24 11, at Santa Ana, California
C E ER SING CORP.
llR OF C SIGNATURE OF CLAIMANT
BY: Heleft R. Brown, President
Office of the City Clerk, Palm Desert, California DOC. NO. DATE FILED
Page 2 of 2
Exhibit A
8d/28/2811 12:42 131& 1619t ROBERT J TOBIASt PAGE 92/14
SUMMONS
(WACION 1UDICEQ
NOTC1 TO DEPENDANT:
(A MD AL DEMANGA00)
CITY OR PALM DUMT, PALM MSERT R SVF1.OPMENT AUENCY,
A PUBLIC BODY. CORPORATE AND POMC, ?AIM DMRT
A"ORDABLE HOUSING PROJECT, CIVIC CW= AARIo HOUSING
CORPORATION. C.C.B.H.C., DEMT ROSE HOMEOWNERS
ASSOCIATION. DEMT R05S M11DENT9 ASSOCIATION, DOE
CORPORATIONS I TO )00, AND DOES i TO 100
YOU ARE BM NO BOW 8Y PLAWIFF:
(rrO WA DAWAVDANDt9 EL DEW NDANM;
KATHY L. STsACWBT sad JOHN ANTHM' WDONALD
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SANTA MONI" CA 90401
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tinsermmm 46-200 OASIS STREET.
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OMNDANr Cti 1' 0P PALM M=T, PALM DUERT WERVELOPAtW A0NCV, A PultUE
OODY. 004MA70ANO POU710. PALM 013ERT AFFORDAl)(.8 HOU LING TRC=. CI VIC C94M
BARWOUIPMOORMAT1ON.C.C.VHC..t)WER'rp=HOM MAIRMA3S=A11ON,owxrl
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I �.I Pfoporty Demop I i Wrongful Onto
rtt Petaonal kqu fy I I Oilter Dsmages (ap"ift
ACTION 12 A Lltilf= DIM L CASE
Amount demanded Ise donot exceed ii10,000
t.I 411900 de 810,000, but dodo not exceed 525,000
1 ACTION 18 AN UNLIM(M CIVIL CASE (&=soda $26,0001
I~ 1 ACTION tl RBCLASSIPIND by this amad&d eamplalrd "BY FAX'
from Nm tad to unlimited
heat unnMftd 20 11 lbd
1. MalnliM Inert ornamuid., .ATHY L. 9EACRIST and ANTHONY WDONALD
a mpaa cede& of adion against defendant (namm or ngmos)t ALL DEMNDANTS
FILE.D
04178/20/1
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BUperlor Court of California
County of Riverside
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INC 1103491
2. T1rh ptaadle0. IndudN attachmunla am "Alb. eensim of the tdlowing number of pepec, 10
3. @deft pie ra nomad above Is a cmp b M adult
a. I _, ' I exempt piaitt4ff (rralfm)t
(1) r : a amparstion qualitod to do budnesa In Califarnta
(`a) , "j an uNrrcorpp Md 0 ty (d"Crtae):
mpublic
thOr a
( nsd 1•
(a) [`,_� tbrwl,wp a gustdlan or wwor,eter at the estate of a guwdiarn ad Idem Ms been sopnintud
(b) L, . l othe\rfombW
other rapocNyp
b. ( eat mt piskW (name};
(1) -'-I a Corp ninon quWMadty do bualnese In CaffWis
(2) ( on unlaoarporata0 omft fdam-Mep
(% I a "1e srlgtY fdasc►iea}: .
(41 a minor 1,. I an 64alt
(4) tat whom s puadtan or oonsen W01' Of the estate ar a guardtbrt W litam has been 11ppolnt00
(b) I^l ante► (dpeorfy),
(61 {' , *Mar f*w4r).
I . 1 lnfoeaa0cm abouteddd amol pa,jnt & who are not aempnenl eduits to shown in Atraenmartt 3.
"1°1b COMPLAINT--Fereanal Injury, F
Oamaea, Wtenpflul Dssdt
ti
coo XV3 TOUT MON TT/TO/90
BHORTTMLE: NI AC KIS'► vs. C M JF , ss.M DESERT CASEANaMft
4. Ir-1 Plaintiff (name):
Is doing business under the fictitious name (specify):
and has complied with the fictitious business name laws.
S. Each defendant named above Is a natural person
a. ® except defendant (name). CITY OF PALM C.
DESERT
(1) 0 a business organization, form unknown
(Z) M a corporation
(3) U an unincorporated entity (describe):
(4) i] e public entity (describe): A Municipal
Corporation
(5) 1' 1 other (specify):
.r? l except defendant (name):
PALM DESERT REDEVELOPMENT AGENCY
(1) I_M l e business organization, form unknown
(2) L J a corporation
0) I 1 on unincorporated entity (describe):
(4) �,1 a public entity (describe):
(5) [ other (specify):
A public body corporate and politic
[—j except defendant (name):
CIVIC CENTER BARIO HOUSING
CORPORATION
(1) C1 a business organization, form unknown
(2) C) a corporation
(3) `,..J an unincorporated entity (descrlbs):
(4) f 1 a public entity (describe):
(5) ( I other (specify):
d. a ]
except defendant (name):
All other defendants
(1) a business organization, form unknown
(2) L'
. { a corporation
(3) 1
1 an unincorporated entity (describe):
(4) L
.1 a public entity (describe):
(5)
1other (specify):
I Information about additional defendants who are not natural persons is contained in Attachment 5,
S. The true names of defendants sued as Does are unknown to plaintiff.
a. [if] Doe defendants (specify Doe numbers): All Defendants were the agents or employees of other
named defendants and acted within the scope of that agency or employment.
b. r x .1 Doe defendants (apecl(y Doe numbers): All De dents are persons whose capacities are unknown to
Plaintiff.
7. (�I Defendants who are joined under Code of Civil Procedure section 382 are (name,
B. This court is the proper court because
at least one defendant now resides in its jurisdictional area.
the prindpal place of business of a defendant corporation or unincorporated association is in its jurisdictional area.
C. LA injury to person or damage to personal property occurred in its jurisdIdanal area.
d. I ' other (specify):
S. 1 x] Plaintiff is required to comply with a claims statute, and
a. has complied with applicable chime statutes, or
is excused from complying because (specify):
vtp-PI-WI (aev. AmKV %. aoo71
COMPLAINT —Personal Injury, Property
Damage, Wrongful Death
rr4e sef a
t oo@ %yd WIT NO TT/To/90
I r FLU-rr-uu 1
SHORT TiTLE SEACRIST vs. crr'-' PALM ll£SERT ME NUIOB It
10. The following causes of action are attached and the statements above apply to each teach complaint must have one or more
causes of action attached):
a. C._j Motor Vehicle
b. (x7 General Negligence
a n Intentional Tort
d_n Products Liability
e.i T l Premises Liability
t. ® Other (specify); Negligence Per So.
Private Nuisance
11. Plaintiff has suffered
a. L.K I wegs loss
b. [-g ] toes of use of property
c. (j 7 hospital and medical expenses
d. N i gOMM damage
er I„&J property damage
f. LX I lose of earning capacity
g. a j other damage (specify):
Miscellaneous related damages, the nature and extent of which are unknown at this time.
12. f.- I The damages claimed for wrongful death and the relationships of plaintiff to the deceased are
a. j Noted in Attachment 12.
b. I I as follows,
13. The relief sought in this complaint is within the jurlsdictlo n of this court
14. Plalndff prays for judgment for coats of suit; for such relief as is fair, just, and equitable; and for
a. (1) [jj compensatory damages
(2) L_ j punitive damages
The amount of dsrnsges is (in cases for personal injury or wrongful death, you must check (1)):
(1) ' X t according to proof
(2) C7J in the amount of S
15. I- The paragraphs of this complaint alleged on information and belief are as follows (specify paragraph numbers):
All paragraphs
Date: April 27, 2011
ROB l.,_T�QDIAS
(TYPE OR PWNT NAMGi^ NATO ' pL*,* ;r no ArroamM
01ft. Jwu"'• morl COMPLAINT ---Personal I eKy
Damage, Wrongful Death
400M IVd WIT NOR TT/T0/90
1 ,
iLu�r Iw1I 1A
SHORT TITLE: SEACRIST vs. CITY'"' iLM DESERT CASE NUMUea:
FIRST CAUSE OF ACTIOW—General Negligence Page !L___,
(number)
ATTACHMENT TO CZ Complaint C= Cross -Complaint
(Use 9 separate cause of action form for escn cause of action.)
GN-1. Plaintiff (name): KXI`FiY L. SEAClUST and JOHN ANTHONY WDONALD
alleges that defendant (name): All L3c:fendunta
[-1 Does to
was the legal (proximate) cause of demeges to plaintiff`. By the following acts or omissions to act, defendant
negligently caused the damage to plaintiff
on (date):
at (place):
(descrlpdon of reasons for 1100y):
See Attachment GN-1 hereto, incorporated herein by this reference as if fully act forth verbatim at ibis point,
erc. t er �
Fonr Apse OpOpM� Vao G� d Cidl geciMlt�. d4S.11
camledr.ffaffir CAUSE OF ACTION —General Negligence
Pl ff-PI.Wi i teev. JW W Y 1. 200rrj 5,
900121 rVJ SO:IT NOR TT/TO/80
SBAC:RIST vs. CITY Of PALM DESERT CASE NUMBER:
Page 5
ATTACHML•NT GN -1
a That on or about September 18, 1997, Plaintiff Kathy L. Seacrist purchased from the
defendants and each of them a single family dwelling (hereafter "home') located at75-456
Orange Blossom Lane, City of Palm Desert, California. installed by said defendants therein
were appliances, including an air c;unditioning unit. Soon thereafter, in 1997, she took
possession of said home and commenced living there as her primary residence. She has at
all times thereafter resided therein.
b Defendants manufactured and constructed the home and installed the air conditioning unit
and other appliances prior to Plaintiff 9 purchase thereof.
c On or about 2006, Plaintiff John Anthony McDonald, moved in with Plaintiff Seacrist. He
resided continuously with Plaintiff Seacrist at the borne until September, 2009.
d In 2007, Plaintiff John Anthony McDonald began to sull'er from seizures, and symptoms of
headaches, dizziness, and fatigue. He suffered thereafter from severe pain throughout his
body.
e In September, 2009, Plaintiff Seacrist began to suffer symptoms of fevers, headaches,
dizziness, fatigue, cold and flu -like symptoms, bursting sore throat, headaches, diarrhea, and
impaired or altered immune function. She was further diagnosed with allergic rhinitis.
abdominal pain, viral syndrome, with symptom of tremors and chronic pain throughout her
body.
Neither plaintiff was aware of the cause of such illnesses and symptoms, not did they have
reason to believe that such illness and related symptoms were caused or related to toxigenic
mold until March 31, 2010 when, at that time, toxigenic molds in the forms of Aspergillus,
Pcnicillium, Altemaria, Cladosporium, and Stachybotrys sp were detected by persons and
companies expertise in such detections.
g Thereafter, in April, 2010, said experts determined that, as a result of prolonged improper
drainage of the air conditioning unit and/or other appliances present in the borne at the time
of and prior to Plaintiff Kathy Seacrist's purchase thereof in 1997, ae aforesaid, the mold
infestation was caused to continuously exist without Plaintiffs' knowledge over a prolonged
period of time involving many years, as yet not deterrni.ned, but including those years in
which both Plaintiffs resided at the home.
Cont'd ... P.6
too p 1Vd CO UT Moll Tt/tt M
SEACRIST vs. CITY OF PALM DESERT CASE NUMBER:
ATrACHMFNT GN -1
Page 6
h That at all times prior to, on and after Plaintiff's purchase of the home, and continuing,
Defendants negligently and carelessly manufactured, constructed, built, operated, maintained,
and installed the home and appurtenant appliances thereto, including the air conditioning
unit, such negligence and carelessness causing the Said appliances to leak into the home,
causing mold infestation as aforesaid, directly causing the injuries, harm and damages to
Plaintiffs herein alleged in this complaint.
As a direct result ofthe acts complained of by the defendants, and each of them, there existed
a latent defect in the construtuion of the home, said defect not having been discovered by an
expert until no earlier than March 31, 2011, nor was there reason for Plaintiffs to have so
discovered it prior thereto. Further, it could not have been discovered by Plaintiffs by a
reasonably careful inspection by them prior to the inspection and discovery of the mold
infestation by an expert an, or about March 31, 2011.
0M YY3 CdqT NOR TT/T0/90
SEACIIST vs. CITY OF PALM DESERT CASE NUMBER:
Page 7
SECOND CAUSE OF ACTION - NEGLIGENCE PER SE
The allegations of the first cause of action - General Negligence, nre incorporated herein at
this point as if sully set forth verbatim.
2 That the defendants at all times herein, including to the date of the filing of this complaint
and thereafter, and prior to the purchase by Plaintiff Kathy L. Seacnist of the home, violated
certain laws, rules, ordinances, regulations and codefi designed to address health effects from
exposure to indoor molds,* including but not limited to the California Toxic Mold protection
Act of 2001, its predecessors, Health and Safety Code Sections, City of Palm Desert and
County of Riverside Municipal Code Sections, the exact identities of which are not known
at this time, said violations being a subsantial factor in brfii&g about the harm, injuries and
damages to the Plaintiffs as herein alleged,
100M Yva co:iT Nod TT/To/no
SEACRIST vs. CYT"Y OF PALM DESERT CASE NUMBER,
Page 8
THM CAUSE OF ACTION - PRIVATE NUISANCE.
The allegations of the First cause of action - General Negligence, are incorporated herein at
this point as if sully set ;forth verbatim.
2 The defendants created the aforesaid condition that was harmful to Plaintiffs' health, and this
condition interfered with Plaintiffs' use and enjoyment of their home. Neither Plaintiff
consented to defendants' conduct, and Plaintiffs, as ordinary persons, were reasonably
annoyed, disturbed and injured, both physically and emotionally, by such conduct.
3 As a direct result thereof Plaintiffs suffered the injuries and damages as heminabovc alleged
in the complaint, such conduct by said defendants being a substantial factor in causing the
injuries, damages and other harm as hercinabove alleged in this complaint.
4 The seriousness of the resulting harm, injuries and damages outweighs the public benefit of
Defendants' conduct.
OT01M YVd C0: tT NOR TT/TO790
smoRT TITLE: SEACRIST vs. Cl"r PALM DESERT CASE nuMRFA:
FOUR 1A CAUSE OF ACTION --Products Liability Page___..
(number
ATTACHMENT TO [x-.J Complaint II Cross -Complaint
(else a separate cause of action form for each cause ofactlon.)
Plaintiff (name): KATTIY L. SEACRIST and ANTHONY McDONALD
date, and contirming hereafter.
Prod, L-1. On or about (dale): at all dates on and after 9118197 to plaintiff was Injured by the following product:
As to the Single Family Dwelling referenced here as "home" and the appurtenant appliances, including
the air conditioner, referenced herein:
Paragraphs (a) through (i), inclusive, of the First Cause of Action - General Negligence, are
incorporated herein at this point as if sully set forth verbatim.
Prod. L.2. Each of the defendants knew the product would be purchased and used without Inspection for defects.
The product was defective when it left the control of each defendant. The product at the tkne of Injury
was being
YJ- used in the manner intended by the defendants.
1 3�L.J used in a manner that was reasonably foreseeable by defendants as Involving a substantial danger not
readily apparent Adequate warnings of the danger were not given.
Prod. L-3. Pleintitf was a
I x ! purchaser of the product I x I user of the product.
1 X. J bystander to the use of the produeL I -X. j other (speeiy): Reaident of the single
family home.
PLAINTIFF'S INJURY WAS THE LEGAL (PROXIMATE) RESULT OF THE FOLLOWING:
Prod. L-4. I Count One --Strict liability of the following defendants who
s. Z<1 manufactured or assembled the product (names):
ll befendants
3 Does la
b. CLI designed and manufactured Component parts supplied to the manufacturer (names):
Alt Defetuiants
L 'I Does to
c, FX-1 sold the product to the public (names):
All fendants
1...1 Does to
Prod. L-5. i x j Count Two--Nepllpence of the following defendants who owed a duty to plaintiff (names):
All Defendants
Ogee to
Prod. L-G. j it j Count Throe -Breach of warranty by the follawing defendants (names):
Ail Defendants. Breach of implied warranty of habitability.
. I Does_ ro
a. m_Aj who breached an imptled warranty
b. i ..,I who breached an express warranty which was
( ' written 1 i oral
Prod. L-7. �j_j The defendants who are liable to plaintiffs for other reasons and the reasons for the liability are
r I! listed in Attachment Prod. L-7 ! �Lj as follows:
As set forth in the remaining causes of action.
camiA�a.arofca"„u 6
Jlawa ca.� a cueCAUSE OF ACTION --Products Liability
Cu141-CM(S) (kM. JWW" 1. Mn
►WImt
Ce" a Civil prcrwlerR J 42$.12
TTOM TVA 40:LT NON TT/To/60
PLO•PI7
SHORT TTrME: SEACRiST vs. CITY r ALM DESERT c.ac ►nwsaa
PUMI num er1 CAUSE OF ACTION —Premises Liability Pape :IQ
ATTACHMENT TO n Complaint = Cross -Complaint
(Use a separate cause ofac6on form for each cause of action.)
Prsm.L-1. Plaintiff (name): KA'M L. SEACRiST and ANTHONY Mcn4NALD
alleges the acts of defendants were the legal (proximate) cause of damages to plaintiff.
On (date): at id) dates on and after 9/1 tl/97 plaintiff was injured on the following promises in the following
to date and continuing hereafter.
fashion (description of premises wZ c1mumstanaes of Injury):
paragrepbs (a) through (i), inclusive, of the First Cause of Action - General Negligenee, are
incorporated herein at this point as if sully set forth verbatim.
Prem.L-2. U] Count One -Negligence The defendants who negligently owned. maintained, managed and operated
the described premises were (names):
All Defendants
f I Does to
Prem.L-3. LXJ Count Two —Willful Failure to Warn [Civil Code section 846) The defendant awrism who willfully
or maliciously failed to guard or warn against a dangerous condition. use, structure. or activity were
(names): All Defendants
(_ ,1 Does to
Plaintiff. a recreational user, was j j an invited guest ( a paying guest.
Prem.L-4. Count Throe —dangerous Condition of Public Property The defendants who owned public property
on which a dangerous condition existed were (names): All Defendants
Does to _
a, iV'"� The defendant public entity had i actual I constructive notice of the existence of the
dangerous condition in sufficient time prior to the ln)ury to have corrected it
b. The condition was created by employees of the defendant public entity.
Prem.L-5. a. ixl Aiiepatiom about Other Defendants The defendants who were the agents and employees of the
other defendants and acted within the scope of the agency were (nerves):
All Dafendarits
C--, Does to
b. The defendants who ere liable to plaintiffs for other reasons and the reasons for their liability are
L_. i described in attachment Prem.L-S.b Li as fhpows (names).
As set forth in the remaining Causes of Actions.
Intl
dCOp10,NA* CAUSE OF ACTION —Premises Liability coo.�cy.av�..a+u.ca
PU 4o FI(41 law. JOUNM 1. 20Q7]
s
Z'T00 Yvd DOLT NON TT/10/90
Exhibit B
DO NOT FILE WITH THE COURT- %&IV-wuw
r UNLESS YOU ARE APPLYING A DEFAULT JUDGMENT UNDER Ce' CIVIL PROCEDURE j 585 -
ATr=NUV OR PAR I VATHOLR ATYCRNEV rIWm9 s •. TeL9PMrAG No.: /FOR COU" USECK V
(310) 451-4949
RClBERT J. TOAYAS (STATE 13AR #41151)
A PROFESSIONAL CORPORATION
1541 OCEAN AVENUE, SUITE 200
SANTA MONK CA 90401
ATTORN"FORLO!". intiffs K=v
1, Seacriz& John A. McDonald
SUPERIOR COURT OF CAUFORNIA, COUNTY OF RIVE S E
r►RleTAwA:en• COUNTY Or RIVERSIAF
rYwLINOAotSi.0 46-200 OASIS STREET
CM AND 70 cotr. iNDIO, CA 92201
sRAN*? NNMC.' INDJO COURT
STATEMENT OF DAMAGES CAW NUM59 .
(Personal Injury or Wrongful Death) ' 1NC1103491
To (name otone defendant;WJ CN1C CEN'1'l R BARIO 130USING CORPOKATION
Plaintiff (name o/one ple;nti8only): JOHN ANTHONY WDONALD
seeks damages in the above -entitled action, as follows_
1. General damages AMOUNT
a. CTI Pain, suffering, and inconvenience ............................................. $ L000,000
b. 11 1 Emotlonsi distress .......... . ... I .... ... • ............................... $ S 0
c. F 1 Loss of consortium .......................... . . .............. . .......... S
d. (-1 Lose of society and companionship (wrongful death actions only) ........ • • ........... • $ --
e• (_.1 other (specify) ...........................................................S
fL I Other (speciy) ........................................................ , .5
g, 1 3 Continued on Attachment i .g,
2. Special damages
a. ; x 1 Medical expenses (to date) ......... ........ . . ......... • , ......... • . $ _jSQ_000
b. CX I Future medical expenses (prosentvalue) . ................. . ...................... $ SOQ.OQQ
c. (fit ] Loss of esmings (to date) . .................... . . . ............. .............. $ 500.000 .
d. Lose of future eaMng capacity (present value)....... . . ................ $ 11000,000
e. 1..,� Property damage ......................................... ...... • . s
t ( Funeral expenses (Wrongful death actions only) .................................... $ _
g, (_.. Future contributions (present value) (wrvngtul death eakns only) ........... . ........... $
h. 1'. I Value of personal service, advice, or training (wrongful death actions only) ................ 5
Other (specitir) ... ................................... $ — —
1. Other(speefy) .......................................... ............. S K. _ Continued on Attaci+ment 2.k.
3. I Punitive damages: Plaintiff reserves the ►ighl to Seek punitive damages in the amount of (spe*)..6
when pursuing a judgment In the suit filed against you.
Oats: July 05, 2011
RQBERT ) 1'OBTAS (UA= BAR #41151)
(FM oR r1UNT NA71M
OF PLAIKOFF OR ArMRNgV FOR P~PPI
horaAd*wfkwMw"wnuse - STATEMENT OF DAMAGES coo or Doi uroe+aft 56 M, Ul. us.,,s
JM*i1Comm °rC"IIr0fts (Personal Injury or Wrongful Death) sci�T
1;
rTeap TVJ t0:0 )JOE TT/TO/Qp
- DO NOT FILE WITH THE COURT
- r1NLESS YOU ARE APPLYING' ,A DEFAULT JUDGMENT UNDER CO^'� "c CIVIL PROCEDURE § 585 -
Al sw x OR PARiV WITHOVr ATTORNEY (Name A ..deist): rE1.liPNONe NO.:
(310) 451-4849
`RORF.RT J. TOBIAS (STATE BAR #4I 151)
IA PROFESSIONAL CORPORATION
1541 OCEAN AVENUE, SUITE 200
SANTA MONICA, CA 90401
ArmRmey;cR t Ptainjirfs.K&ttTyL.Sp=ist&
SUPERIOR COURT OF CAUFORNiA, COUNTY OF
stREETAomese: COUNTY OF RIVERSIDE
usoLwa monew. 46-200 OASIS STREET
cmr Amo ze coos: INDIO, CA 92201
eaANcNNAME INDIO COURT
PLAINTIFF: KATHY L. SEACRIST, et ttil.,
T1ON
STATEMENT OF DAMAGES
(Personal Injury or Wrongful Death)
Tn fnamn nfnno inb4nndantt anlv): CIVIC CENTER BAR
POR couRr us! oft r
ame NuMBERt
INC1103491
Plaintiff (name of one plaintM' only): KATHY L. SEACRIST
seeks damages in the above-antided action, as follows:
1. General damages
AMOUNT
a. I.XJ Pain, suffering, and inconvenlence ...................... . . _ .................
$ 5.000.0m
b. Ix ] Emotional distMes .... ...................................................
3 5.000.000
c. ED Loss of Consortium ........................................................
S
d. Loss of society and companionship (wmVild death ecdons only) .......................
S
e.l I Other(speciiy)............... ......................... ................$
_
f. r ( Other(sped&)... .......................................................$
g. ( { Continued on AdKhment 1.g.
2. Special damages
a. { x Medical expenses (to date) ................................ ..................
S 250,009
b. i x { Future medical expenses (Present value) ......................................
5 500•000
c. I x J Loss of eaminga & date) ...... . ........................ . ...................
S _50_0,000
d. (x I Loss of future eaming capacity (present value) ................ i . , ......... ... • ....
$ 1 000,000
e. I I Proparty damage ........................................ ........... ....
$
f. [` 1 Funeral expenses (wrongful death actions ordy) ....................................
S
g. { l Future contributions (present value) (wrongful death actions only) . .......... . .........
$
h. �, , Value of personal service. advice, or tmWng (wrongful death sclionz only) ................
S
i. [ '� Other(spedfy) ...........................•.............................
$
1. C. Other(spe*) .... ..................... ...............................
$
k. i I Continued on Attachment 2.k.
3. ( ) Punitive damages: Plaintiff reserves the right to seek purMtive d7e7
g' the nt of peaty)..$
when pursuing a judgment In the suit flied against you.
Date: July 05, 2011
RORER J. TOSIAS r'gTATT-: !BAK #411 S I l
IrIK OR PRINT NAmq
mm ndagW tar MOrW#oq w•
juficw O&MI of Caqu(NA
C1V W tkw. amiW i, "M
OF PL AINTIP OR ATfORWY POR PLAINTIFF)
_ (Em2fo service on reverse)
STATEMENT OF DAMAGES
(Personal Injury or Wrongful Death) S s
pme 1 of 3
of 0.4 Pfamp", In 43m. 4al16
PTOZ YYd 90 LT NOR TT/10/80
Exhibit C
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( ywrh 1 �M. b0111 lJYtC CtasTa � MOuwNe OOWWmTt" • Nr PALM DIM"
R6fllII��AO►, P w�/OMM M1:�o NwOY/ �DOMW t,►tlr
r n en YrhrM of rWA am Rgra.ort�tr Aowcr wiwws
Y sni� bw �np 1st by pOOLMINT � �
PALMb� w�I IIOEN .
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Exhibit D
10/08/2011
10:02 FAX 7145609fill Knowles & Vacca, Inc.
@017/020
i
73:.
q
52
N W' AMi� MW By 3�a nq RNM
• MU An�MW Title No � CO➢*W AT M O'Ca OGc
'1
ftatby eeaearist SEP 11397.
75-456 orange BlosAW Lana
Pals Desert, CA 92211
P AI0
rwrrar+.v
000. Traeipt Tp
pool
Air. Oe. Raperdar .
Q=UM M AMr TRAMMIN
■ Co"utad on full value of
Property oonveyed, or
Q,
Conputed on full valda lama lieea and
e+�cuabranoes re.afaioe at time Of sale.
.
iA.P.N.
i34-•Ob2-0o� _
•�-� •. a8• 444
ca>yL'L Ditto
Ir
1021 VALt &WA COMetD>tR 1201i, reCsipt of which is acknowledged
'
hereby
W
PAL» ones" ASDevs>:OPUNST AGNICT,
'
a public body, aerporate and polltie,
gQe
r
hereby GRAM To KAM 89ACRIST, an unmrried roman
r
1
that pertain real property in the City. at Pals Desert, County of
t, {
Riveraids, State of California, described mar
Tot of Tract 27546 in the County of Riverside, Ateta of
CAiipnfs, As per vino rsoorded to soak 249, pages 63 through
68, inclusive, of Nape, in the Office of the County Recorder
of stivereida County, California.
snbJeat tot
f
1. Rsa1 property taxes and Assessments tar the year
399�-399�
2. Covenants, conditions, restrictions, reservatioM and FF
easements of record.
THIS C MYAWS is made and accepted and said realty is hereby
granted upon and subject to that certain AAendad and Restated
Declaration of Covenants, Conditions and Restrictions recorded on
April 29, 14961 as Doeusant Ila. 163014, Official Reeesdm of
e.iveeside County. California, and the eave4anta, conditions, 1,
restrictions, rights, sssementa, reservations, benefits, and -
�r
,
•
10/08/2011 10:02 FAX 7145609411
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PINES
•, r
�tt'S1S.Y�1'4JL=JV��r•�•� �••�� � •�� •• •
burdens thersin contained, each and
iaall
retarecae et
which
are
M rOba
expragaly i000rporatad hesain by
forth in full.
Datedr July 30 1991
PALM DLSrAT tit0CVZLOPMCVT AtWCY►
a public body, corp0sgte and Politic
dY
$y _
l
t
r
f
S!>STS aF cAz:t Ovt11%A l
l so.
COUM Or RIVIRSI01 l
pyr 1l�, balara ee, iY1 14 P, Q.JI a. Mf
Notary c, par�eoaily_aP�se�ed , �--�-
Pesgeia y own to an for pxowgo to ate an cna pews■ o:
aatiafactory e�idancel to be the par000t,ll wboaa naenl;l Fare
aob�bed to the within instrument �eRnouiedged to 00 that
be h boy executed the hie _ i thels authorised
capacities, and that by big r brit a 9naturslol an the
inateument, the pasaonfjl, o a entity upon behalf 09 whiab the
personial acted, executed the iaatruraent.
1 MITUBS ray head and official goal.
i
� I,sali
Signature
Notary 0 ,"
�eTogte o,°�i
® 01a/020
LIJ
Exhibit E
r`.
' r a
C HOUSING ASSISTANCE AGREEMENT
THIS HOUSING ASSISTANCE AGREEMENT (the "Agreement") is made
and entered into as of July 14, 1994, by and between the PALM
DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic
(the "RDA") and CIVIC CENTER BARRIO HOUSING CORPORATION, a
California non-profit, public benefit corporation ("CCBHC").
RECITALS
A. The RDA and Sterling Partners, Inc., a California
corporation, Peter Sterling, and Gary Nagle (collectively
"Original Developer") entered into that certain Disposition and
Development Agreement dated May 18, 1992, as amended by that
certain First Amended and Restated Disposition and Development
Agreement ("DDA") dated March 11, 1993, pursuant to which the RDA
purchased and acquired certain real property (the "Property," as
defined in the DDA) for the sum of $3,065,000 ("Land Purchase
Contribution"), which funds were provided from the RDA's Low and
Moderate Income Housing Fund (the "Housing Fund").
B. The RDA's principal objective in entering into the DDA
was to facilitate and encourage thereby the development by the
Original Developer of 161 duplex and detached single residential
units on the Property. (All 161 units, together with the
Property, are referred to herein as the "Project." Individually,
each of the 161 residential single family units and the real
property upon which such unit is situated is referred to herein
as a "Unit.") Originally, the Project was known as the "Las
Brisas" project, but the parties have agreed that, instead, the
Project shall be known as "Desert Rose." The purpose of the
Project is to create an affordable housing inventory available to
persons and families of low or moderate income, who but for this
special opportunity might not be able to obtain housing at
affordable cost within the City of Palm Desert.
C. By that certain Project Development Agreement dated
July 14, 1994, between the Original Developer and CCBHC (the
"Project Development Agreement"), the Original Developer is
assigning to CCBHC, and CCBHC is assuming from the original
Developer, all of the Original Developer's right, title, and
interest, in and to the DDA. In addition, pursuant to the
Project Development Agreement, the Original Developer is agreeing
to construct all the improvements on the Property required to be
constructed pursuant to the DDA for the consideration described
therein. Upon completion of such improvements, CCBHC shall pay a
fixed price for such improvements as described therein, and shall
place the improvements in service for their intended use as
affordable housing to be leased and/or purchased by persons of
low or moderate income (the "Program").
-1-
940717 jar bW-i5.1sr
D. Development of the Project will assist in the
elimination of blight in the RDA's Project Area No. 1, provide
affordable housing, provide additional jobs, and substantially
improve the economic and physical conditions in the area in
accordance with the purposes and goals of the Redevelopment Plan
for the RDA's Project Area No. 1.
E. First Interstate Bank of California ("FICAL") shall be
providing a construction loan (the "Construction Loan") the
proceeds of which shall be used to pay the cost of developing the
Project. The RDA desires to assist CCBHC in its acquisition of
the Property and the Project, and in its implementation of the
Program, by (1) contributing the sum of $1,929,000 in additional
funds now on deposit in the Housing Fund (which funds shall be
derived from a prior bond issue); (2) providing a take out loan
(the "Take -Out Loan") to CCBHC in accordance with that certain
Financing Agreement dated as of July 14, 1994, (the "Financing
Agreement") by and among CCBHC, the RDA, and Bank of America (as
the Trustee of the RDA Bonds), which loan shall be evidenced by a
promissory note (the "Take -Out Note") in the principal amount of
$15,577,780, made by CCBHC to the order of the RDA, and which
Take -Out Note shall be secured by a deed of trust (the "Take -Out
Deed of Trust") encumbering the Project, the proceeds of which
loan shall be derived from the RDA's issuance of certain Bonds
(the "RDA Bonds") in the aggregate principal amount of
$15,100,000, plus the sum of $477,780 in additional funds of the
RDA, (3) during the operation of the Project as rental housing,
by providing certain amounts of monthly housing assistance funds
to assist CCBHC in paying obligations under the Reimbursement
Agreement (described below) and operating costs as to such Units;
and (4) by providing $1,800,000 in additional funds for subsidies
to assist Qualified Persons to purchase Units in the Project (the
"Purchase Price subsidy").
F. The Trustee of the RDA Bonds shall draw on a letter of
credit (the "Letter of Credit") to be issued by FICAL for all
payments of principal and interest on the RDA Bonds (subject to
the right of either FICAL or the RDA to require a remarketing of
a portion of the RDA Bonds at a fixed rate, in which case the
principal and interest on such remarketed bonds shall be paid
from a pledge of RDA tax increment in the sum of $600,000 per
annum for a period of 28 years from the date hereof), and FICAL
shall be reimbursed on account of the draws from the Letter of
Credit pursuant to a Reimbursement Agreement with CCBHC (the
"Reimbursement Agreement"). The Reimbursement Agreement shall be
secured, inter alia, by a deed of trust (the "FICAL Deed of
Trust") encumbering the Project, and by an assignment by CCBHC of
its rights under this Agreement. In addition, pursuant to the
Reimbursement Agreement, CCBHC shall covenant that, commencing
with the 30th month after the date hereof, the principal amount
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940717 jar b8n-15.jer
of the RDA Bonds outstanding
least $143,000.00 per month.
\\\ exercise its rights against
limitations set forth in an
RDA and FICAL.
shall be reduced at the rate of at
Moreover, the RDA's ability to
CCBHC shall be subject to certain
Intercreditor Agreement between the
G. In consideration of the RDA's financial assistance to
CCBHC, CCBHC shall enter into and record a Regulatory Agreement
as an encumbrance against the Project, which shall also run with
the land as a covenant and burden each Unit upon the sale thereof
by CCBHC. The Regulatory Agreement and the Project's Covenants,
Conditions and Restrictions (11C,C&R's") shall be at all times a
senior encumbrance to each and every Unit mortgage and deed of
trust (other than (i) the deed of trust securing the Construction
Loan (the "Construction Loan Deed of Trust"), (ii) the Take -Out
Deed of Trust, and (iii) the FICAL Deed of Trust, which shall all
be superior to the Regulatory Agreement). The RDA shall provide
for a release of the Regulatory Agreement as to any individual
Unit in the event of the sale of that Unit, if (i) a replacement
Regulatory Agreement (a "Unit Regulatory Agreement") and (ii) a
Unit Enforcement Note and Unit Enforcement Deed of Trust (as
defined in the Regulatory Agreement), are executed and recorded
(if applicable).
H. The RDA has determined that the use of funds from the
Housing Fund in the manner set forth herein will increase and
improve the supply of Low and Moderate Income housing in the City
and is a proper use of such funds under the Redevelopment Law (as
defined in the DDA).
I. The RDA further has determined that such use of funds
from the Housing Fund will contribute to meeting the RDA's
obligations under a certain Stipulation for Entry of Judgment
entered in cases 51124, 51143 and 51159 in the Indio Division of
the Superior Court of the State of California, County of
Riverside (the "Stipulation").
NOW THEREFORE, in consideration of the above Recitals,
which are incorporated herein by reference in their entirety as
though set out in full, and the mutual agreements herein
contained, the parties hereto do hereby agree as follows:
Section 1. Term of Agreement. This Agreement shall
become effective upon its execution and delivery by the RDA and
CCBHC and shall continue in effect until the earlier of (a) the
date on which all the RDA Bonds have been fully redeemed by the
RDA, and all principal, interest, and premium, if any, has been
paid thereon, or provision has been made for their payment as
described in the Trust Indenture, the Financing Agreement, and
the other documents to be executed and delivered in connection
' -3-
940717 jar bBN-lS,jar
with the issuance of the RDA Bonds (the "Bond Documents"), or (b)
C32 years after the date hereof.
Section 2. Authorisation. Subject to the limitations
set forth in Section 6, below, the RDA hereby agrees to provide
to CCBHC (or its successors in interest, as provided in the
Intercreditor Agreement) financial assistance for the Project, as
herein provided, from funds now or in the future on deposit in
the Housing Fund, in order to increase and improve the supply of
affordable housing in the City, all under and subject to the
terms and conditions of this Agreement, the Regulatory Agreement
and the Redevelopment Law. CCBHC agrees to accept such
assistance, to undertake the Program, to enter into all
reasonably required documents and to fully assist and cooperate
with the RDA in the issuance of the RDA Bonds, under and subject
to the terms of this Agreement and the Bond Documents.
Section 3. Aeficit Qperations Naintenance.Fund. The RDA
agrees to deposit into an account at FICAL in the name of the RDA
(which account and all amounts therein from time to time shall be
pledged by the RDA to FICAL (pursuant to documents in form and
content reasonably satisfactory to FICAL) as security for the
obligations of CCBHC under the Reimbursement Agreement), the sum
of $500,000.00 (the "DOMP") to cover certain obligations of the
RDA to finance (i) the amount by which the Project Operating
Costs (as defined below) (including obligations under the
Reimbursement Agreement and debt service on the RDA Bonds)
exceeds the amount of revenues available from the Project to pay
the Project Operating Costs, (ii) the Monthly Housing Assistance
described below, (iii) other amounts described herein to be paid
from the DOMP, and (iv) amounts mutually approved by the RDA,
CCBHC, and FICAL to provide assistance to Qualified Persons that
purchase Units. Funds in the ROMP shall be deposited in an
interest bearing account and the interest thereon shall accrue to
the benefit of the RDA. Funds in such account shall from time to
time be disbursed therefrom to pay amounts described above. The
RDA agrees to restore the ROMP to a total of $500,000 (1) in any
month that the DOMP falls below the sum of $300,000, and (ii)
semi-annually, on or before April 30 and September 30 of each
calendar year. The RDA shall not withdraw funds from the DOMP
account without the prior written consent of FICAL.
Notwithstanding the foregoing, however, the RDA shall not be
required to contribute to the ROMP, in the aggregate, more than
$500,000 in any calendar year. Moreover, notwithstanding the
foregoing, the RDA, CCBHC and FICAL may agree to reduce the size
of the DOMP from $500,000 to a lesser amount as Units from time
to time are sold and the amount of the RDA's subsidy needed for
either the MHA (as defined below), the subsidy for Project
Operating Costs, or other subsidies of the RDA, is reduced, and
940717 jar bW-15.jar
CCBHC shall not unreasonably withhold its consent to such
reduction.
Section 4. MWratina Account. CCBHC shall establish
with FICAL an account (the "Operating Account") for receipt of
all revenues and savings from the Project and from which all
Project operating Costs and the MHA shall be paid. Such
Operating Account shall be pledged to FICAL as additional
security for CCBHC's performance of its obligations under the
Reimbursement Agreement. CCBHC shall deposit all Project
revenues into such Operating Account, and shall pay all Project
Operating costs from such account. So long as Project operating
Costs being paid from such Operating Account are consistent with
the approved Budget described below, CCBHC shall not be required
to obtain either the RDA's or FICAL's consent to disbursement.
CCBHC must receive the RDA's and FICAL's prior written consent in
order to use any funds from the Operating Account for payment of
costs that are not in accordance with the approved Budget
(described below). In the event there are insufficient funds in
the Operating Account to pay the Project operating Costs or the
MHA, then FICAL shall withdraw funds from the ROMP to cover the
deficiency, which funds shall be deposited into the Operating
Account. Any excess rent or other income received, or any
savings realized, on account of this Project shall be utilized by
CCBHC for costs of the Project.
Section 5. Take-out Loan. The RDA shall make the Take-
out Loan in accordance with the Financing Agreement, the Bond
Documents, and the Project Development Agreement. The repayment
of the Take -Out Loan shall be made and secured in the fashion
described in the Financing Agreement and the other Bond
Documents. Until the delivery of the 81st Unit, the Take -Out
Loan shall be derived from the net proceeds of the RDA Bonds.
Upon the delivery of the 81st Unit, the RDA shall deposit with
FICAL the sum of $477,780 to cover the shortfall between the net
proceeds of the RDA Bonds and the total project purchase price,
which funds shall be disbursed for Take-out Loan proceeds. After
utilizing such $477,780, the balance of the Take -Out Loan shall
be derived from the remaining net proceeds of the RDA Bonds.
Further details concerning the Take -Out Loan are set forth in the
Financing Agreement, and the terms of the Financing Agreement
shall prevail in the event of any conflict between the terms
hereof and the terms of -the Financing Agreement.
Section 6. Amortization Payment Obligation. Pursuant to
the Reimbursement Agreement, commencing with the month that is 30
months after the closing of the RDA Bonds, CCBHC is obligated to
reduce the principal amount of the RDA Bonds outstanding in an
amount equal to $143,000 per month, to the end that for the
applicable calendar month shown on the amortization table
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940717 jar WN-15.1ar
attached to the Reimbursement Agreement (the "Amortization
Table"), the actual unamortized balance of the RDA Bonds shall
not exceed the amount shown for the "Unamortized Balance"
corresponding to such month. Such obligation is referred to
herein as the "Amortization Payment Obligation." The
Amortization Payment Obligation is in addition to the Purchase
Price Subsidy obligation of the RDA and is separate from the DOMP
and is not limited by the contribution limitation of the ROMP.
The RDA agrees to deposit into the Loan Payment Account'
established under the Trust Indenture the amount by which the
actual principal balance of the RDA Bonds from time to time
outstanding for any calendar month exceeds the amount shown as
the "Unamortized Balance" for the corresponding month on the
Amortization Table attached to the Reimbursement Agreement.
Section 7. Purchase Price Subsidy. The RDA agrees to
create a fund (the "Purchase Subsidy Sinking Fund"), the purpose
of which is to provide subsidies (a "Purchase Price Subsidy") to
Qualified Persons that are Persons or Families of Low or Very Low
Income (as defined in the Regulatory Agreement). The RDA shall
deposit the sum of $300,000 into the Purchase Subsidy Sinking
Fund on the date that is the first day of the month that is 25
months after the closing of the Bonds, and an additional $300,000
every six months thereafter for five (5) additional installments,
for a maximum contribution by the RDA in the sum of $1,800,000.
Such amounts shall be deposited into an interest bearing account
held at FICAL in the name of the RDA (which account and all
amounts therein from time to time shall be pledged by the RDA to
FICAL (pursuant to documents in form and content reasonably
satisfactory to FICAL)). Funds shall be released from the
Purchase Subsidy Sinking Fund with the consent of the RDA, CCBHC
and FICAL, for the purpose of providing subsidies to assist
Qualified Persons that are Persons or Families of Low and Very
Low Income to purchase Units at the Project.
Section 8. D&Hoggina Assistance.
The RDA shall provide to CCBHC the assistance and
subsidies described in this Section for the purpose of advancing
the affordable housing objectives of this Agreement.
(a) Pursuant to the DDA, the RDA shall sell, transfer
and convey the Property to CCBHC for the sum of one Dollar
($1.00). Such sale and transfer shall take place on the date and
simultaneously with the closing of the RDA Bonds and the
Construction Loan. (Pursuant to the DDA, the RDA purchased the
Property for the sum of $3,065,000, and pursuant to this
subsection, the RDA is reselling the Property to CCBHC for the
sum of $1.00. The difference between the RDA's purchase price
940717 Jar bM-15.Jar
c
and the resale price of the Property to CCBHC is referred to
herein as the "Land Purchase Contribution.")
(b) The RDA shall advance to CCBHC an "Initial Project
Purchase Price Contribution" in the amount of $1,929,000 as
additional consideration for providing the affordable housing on
the Property. Such funds may be used by CCBHC only as follows:
(1) $1,454,000 for the payment of project development
permits and fees (as shown on CCBHC's proforma
previously delivered to the RDA). Such funds shall be
advanced to CCBHC at such time as building permits are
ready to be issued for the Project.
(ii) $50,000 leasing and marketing costs to be incurred
prior to completion of the Units. Such funds shall be
advanced from time to time as reasonably needed by
CCBHC in accordance with a Budget approved by the RDA.
(iii) $90,000 in legal and consulting expenses incurred
by CCBHC.
(iv) $335,000 to reimburse CCBHC for the cost of
architectural and engineering services rendered for the
Project. Such funds shall be released to CCBHC upon
execution of this Agreement, the Regulatory Agreement,
and the RDA's approval of the Bond Documents.
The amounts described in subparagraphs (i) and (iii) shall be
disbursed at the close of escrow. CCBHC shall, as additional
security for the Reimbursement Agreement, hold, in an account in
the name of CCBHC, which account shall be pledged to FICAL, the
amounts described in subparagraph (ii), above, for payment as
provided therein. The RDA shall be obligated to provide to CCBHC
(or to FICAL, as the case may be) funds on account of the $50,000
pre -completion leasing and marketing subsidy only after CCBHC's
delivery and the RDA's receipt and approval of a reasonably
detailed Budget therefor, which approval shall not unreasonably
be withheld.
(c) The RDA shall provide to CCBHC (and FICAL, if
it succeeds to CCBHC as the owner of the Project pursuant to
Section 6(h), above) a subsidy in an amount equal to the
difference between the projected debt service on the RDA Bonds
reasonably allocated on the Units leased to and occupied by a
Low -Income Household, and the rental required to be paid by any
Low -Income Household leasing a Unit. Such amount is referred to
herein as the Monthly Housing Assistance ("MHA"). There shall be
no MHA provided for Moderate -Income Units. Such funds may be
disbursed from the DOMP.
940717 jar bW-15.jar
-7-
(d) At the RDA's sole option, the RDA may provide
C assistance to Qualified Persons who purchase a Unit. It is
acknowledged and agreed that the RDA is not obligated pursuant to
this Agreement to provide any financial subsidy to CCBHC on
account of costs and expenses incurred by CCBHC in assisting the
Unit tenants in purchasing their Units or on account of
administrative costs incurred by CCBHC in assisting such tenants
in the sale of such Units.
(e) Notwithstanding anything provided herein to
the contrary, it is acknowledged and agreed that the RDA's
obligations described herein to provide financial assistance and
other subsidies, including but not limited to (i) the RDA's
obligation to deliver funds into the ROMP pursuant to Section 3,
(ii) the RDA's obligation, pursuant to Section 6, to provide the
amount by which the actual balance of the RDA Bonds from time to
time outstanding for any calendar month exceeds the amount shown
as the "Unamortized Balance" for the corresponding month on the
Amortization Table attached to the Reimbursement Agreement, (iii)
the RDA's obligation, pursuant to Section 7, to provide the
Purchase Subsidy Sinking Fund, and (iv) the RDA's obligation,
pursuant to Section 8(c), to provide the MHA, or (v) other
payments under this Agreement or any Unit Assistance Contract,
shall be contractual obligations of the RDA, enforceable at law,
but.shall not be secured by any lien upon or pledge of the RDA's
tax increment, and such obligations shall be subordinate and
inferior to any and all rights, including but not limited to a
pledge of any such moneys, created by (A) any bonded indebtedness
now or hereafter created by the RDA, and (B) any loan agreement,
lease agreement, or other obligation or agreement now or
hereafter entered into by the RDA, or otherwise from time to time
outstanding that is secured by a pledge of tax increment;
provided, however, such obligations are not subordinate to
unsecured obligations of the RDA; provided, further, the $600,000
per annum pledge of Tax Increment described in the RDA Bonds (the
"Pledged Tax Revenues") shall be a lien upon the RDA's tax
increment housing set -aside, but such lien shall be inferior to
(I) the RDA's 1988 Housing Set -Aside Bonds (the 111988 Agency
Bonds") and (II) a 1988 Pledge Agreement to the Housing Authority
of the County of Riverside (the "Housing Authority Bonds"), and
any refundings thereof meeting the requirements of Section 15
hereof (collectively, the "Prior Obligations"). Notwithstanding
the foregoing, the RDA shall not create any new bonded
indebtedness if the RDA's financial consultant issues an opinion
opining that as a result of (a) the creation of the indebtedness,
and (b) the priority that such new indebtedness shall receive
over the rights of CCBHC, there are likely to be insufficient
funds available to the RDA to pay the MHA and the deficit in the
Project Operating Costs, and the other obligations of the RDA.
The financial consultant to provide such opinion shall be
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�'" 940717 jar bUB-15. jor
/ selected by the RDA and subject to the written approval of CCBHC,
j which approval shall not unreasonably be withheld or delayed.
Moreover, it is agreed that all funds to be provided by the RDA
hereunder shall be provided only from the Housing Fund, and the
RDA shall have no obligation to provide any assistance or
subsidies from any other funds of the RDA.
Section 9. RDA Enforcement Note and Deed of Trust.
(a) The Land Purchase Contribution and the
Initial Project Purchase Price Contribution are being made in
consideration of the covenants set forth in the Regulatory
Agreement that the Property remain available as affordable
housing to Low -Income Residents and Moderate -Income Residents (as
defined in the Regulatory Agreement) for a term of at least 50
years. It is also intended that the $3,065,000 Land Purchase
Contribution and the $1,929,000 Initial Project Purchase Price
Contribution (for a total of $4,994,0oo) shall be considered a
grant, but the RDA shall have the right to have the Land Purchase
Contribution and the Initial Project Purchase Price Contribution
repaid to the RDA in the event of a breach of the covenants set
forth in the Regulatory Agreement. Subject to the non -recourse
provision below, CCBHC shall initially be liable for the entire
unreimbursed $4,994,000 in the event of a breach of the
Regulatory Agreement by CCBHC, and in the event of a sale of a
Unit, each ultimate purchaser of any Unit shall successively and
C ' individually be liable thereafter on a pro rata basis (with
CCBHC's conditional obligations for payment of the principal
amount of the Enforcement Note (as defined below) reduced in a
corresponding amount) upon the creation of a separate note and
deed of trust for such pro-rata amount (a "Unit Enforcement Note
and Unit Enforcement Deed of Trust", respectively), in the event
of a breach of the Regulatory Agreement as to each such Unit.
(b) Enforcement Note and Deed of Trust.
(i) Concurrently herewith, CCBHC shall
execute a promissory note in the sum of $4,994,000 (the
"Enforcement Note") which shall be secured by a deed of trust
(the "Enforcement Deed of Trust") both of which shall be in form
and substance acceptable to the RDA. The RDA shall subordinate
the Enforcement Deed of Trust to the lien of the Construction
Loan Deed of Trust, the Take-out Deed of Trust, and the
Reimbursement Agreement Deed of Trust, and each deed of trust
securing a loan made to finance the purchase of a Unit by an
owner, provided that such loans and deeds of trust meet the
requirements and limitations of Section 7 of the Regulatory
Agreement.
-9-
940717 jar WU- 15.jar
(ii) In the event of the sale of any Unit to
a Qualified Person, as described in the Regulatory Agreement, and
the execution and recordation of a new Unit Enforcement Note and
a new Unit Enforcement Deed of Trust which ratably allocates to
each Unit the principal sum of $31,018.63 (i.e., 1/161th of the
Land Purchase Contribution and the Initial Project Purchase Price
Contribution), the RDA shall partially release the lien of the
Enforcement Note and Enforcement Deed of Trust. The principal
amount of each Unit Enforcement Note shall be the sum of (A)
$31,018.63 plus (B) the principal amount of any additional
subsidy provided by the RDA to assist the Qualified Person to
purchase their Unit. In the event of a sale of a Unit, the
principal amount of the Enforcement Note shall be reduced by
$31,018.63 to reflect the allocation of such principal amount to
the Unit Enforcement Note and Unit Enforcement Deed of Trust
encumbering each of the Units sold.
(iii) The Enforcement Note, each Unit
Enforcement Note, the Enforcement Deed of Trust and each Unit
Enforcement Deed of Trust shall be nonrecourse as to the
borrower. The Enforcement Note and the Unit Enforcement Notes
shall not bear interest and the principal balance thereof shall
be for a term expiring 50 years after the date of the original
Enforcement Note. All obligations under the Enforcement Note
shall be forgiven at the and of the term thereof if there are no
uncured violations of the Regulatory Agreement, the Enforcement
Note, or the Enforcement Deed of Trust as of the expiration of
the term thereof. All obligations under any Unit Enforcement
Note shall be forgiven at the end of the term thereof if there
are no uncured violations of the applicable Unit Regulatory
Agreement, the Unit Enforcement Note, or the Unit Enforcement
Deed of Trust as of the expiration of the term thereof (although
each Unit owner shall be liable thereon only for defaults that
occur during such person's ownership of the Unit). The
Enforcement Deed of Trust and each Unit Enforcement Deed of Trust
shall be recorded in the Official Records of Riverside County.
The Enforcement Note, Enforcement Deed of Trust, and each Unit
Enforcement Note and Unit Enforcement Deed of Trust, shall
contain a "due on sale" clause and a "due on encumbrance" clause,
which shall be exercised by the RDA on and subject to the terms
and conditions set forth in the Regulatory Agreement. The
Enforcement Deed of Trust and the Unit Enforcement Deeds of Trust
shall contain a reasonable subordination provision providing for
the subordination of same to first trust deeds meeting the
requirements and limitations of the Regulatory Agreement. The
RDA may include other teams and conditions in the Enforcement
Note and Enforcement Deed of Trust. The form of the Enforcement
Note, Unit Enforcement Notes, Enforcement Deed of Trust, and Unit
Enforcement Deeds of Trust shall be drafted by the RDA but shall
be subject to the review and approval of CCBHC and FICAL.
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940717 Jar bSU-15.1ar
(c) Unit Purchaser Obligation.
(i) In the event any Qualified Person
purchases a Unit, such Qualified Person shall be obligated by the
terms and conditions of each respective Unit Enforcement Note and
Unit Trust Deed, although such obligations shall be nonrecourse
to each respective Unit purchaser, and shall continue to run with
and burden each respective Unit in question until expiration
thereof.
(ii) The individual Unit Enforcement Deeds
of Trust shall each be governed by the respective terms thereof
and by the applicable Unit Regulatory Agreement; provided,
however, if the Unit Regulatory Agreement is in conflict with the
individual Unit Enforcement Deed of Trust, then the terms of the
Unit Regulatory Agreement shall prevail.
Section 10. Duties of CCBHC.
(a) CCBHC agrees to undertake the Program,
including the acquisition of the Property and development of the
Project, with all reasonable diligence and at all times and
pursuant to the terms of the Project Development Agreement.
CCBHC agrees, however, to either terminate development of the
Project, as provided in Section 6.8 of the Project Development
Agreement, upon receipt of written request of the RDA to do so,
subject to CCBHC's receipt from the RDA of funds in the amount of
any sums due to the original Developer on account of such
termination, and further subject (so long as the Letter of Credit
is outstanding and FICAL has not defaulted in its obligations
thereunder) to the RDA's having obtained the express prior
written consent of FICAL to such termination as required pursuant
to Section 6.8 of the Project Development Agreement.
(b) CCBHC agrees to cooperate fully with the RDA
to enable the RDA to issue the RDA Bonds, and to comply with any
and all terms and conditions imposed upon it under the Bond
Documents. CCBHC shall have the right to approve all RDA Bond
documents and terms. Except as provided herein to the contrary,
all obligations arising out of the RDA Bond transaction shall be
non -recourse to CCBHC.
(c) Upon acquisition of the Property, the
Project, or any Units therein, CCBHC shall hold title thereto for
its own account, and shall lease, manage, and sell the Units in
the Project in accordance with the applicable requirements of the
Program, the Regulatory Agreement, the Redevelopment Law, and the
Bond Documents, including without limitation those forbidding
discrimination on any basis.
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960717 jar b6M-1i.jar
(d) CCBHC shall keep proper books and records,
separate and apart from all other books and records of CCBHC, in
which complete and correct entries shall be made of all
transactions relating to the Project and the Units (including the
acquisition thereof and the revenue and expenses thereof). Such
books and records shall at all times be subject to inspection and
audit by the staff of the RDA or its agents.
(e) (i) CCBHC shall prepare and submit to the
RDA an annual Project Operating Budget (the "Budget's). The
Budget shall be submitted to the RDA in writing no later than
thirty (30) days prior to the end of the calendar year
immediately prior to the year for which the Budget is intended.
The Budget shall be subject to the review and approval of the RDA
as provided in subsection (h) hereof. So long as the Letter of
Credit is outstanding, a copy of the Budget shall be delivered to
FICAL.
(ii) The Budget shall include, among other
things, (i) the difference between CCBHC's projected costs for
payments on the Reimbursement Agreement and the projected rental
revenue from each Unit, (ii) projected costs reasonably to be
incurred by CCBHC in connection with its performance under this
Agreement, the Regulatory Agreement, the Project Development
Agreement, and the DDA, and (iii) CCBHC's projected expenses for
operating the Project, including maintenance expenses, staff
salaries, overhead, contract work, the child care center, and the
like, costs of complying with the Bond Documents, the occupancy
leases, and other agreements relating to the Project which are
not otherwise specifically provided for. Such costs are referred
to herein as the "Project Operating Costs." So long as the
Letter of Credit is outstanding, FICAL shall have a right to
review the format of the Budget.
(iii) "Project operating Costs" shall
also include reasonable unanticipated expenses arising in
connection with CCBHC's performance under this Agreement, the
Reimbursement Agreement, and the Regulatory Agreement_ In the
event of an unanticipated expense, CCBHC shall present same to
the RDA for approval. In the event of a dispute as to whether
the expense should be approved and paid as a Project Operating
Cost, the dispute shall be resolved in accordance with the
provisions of subsection (h) hereof.
(f) CCBHC shall keep proper records of all Units
owned, leased, operated or sold, and shall provide to the RDA, on
a quarterly basis, a programmatic and financial accounting of the
Program's activities and results throughout the term of this
Agreement.
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�- 960777 jar b8E6-15.Jar
(g) The RDA shall have the right from time to
C time to examine, review and audit the books and records of CCBHC
to determine whether it is in compliance with the terms hereof,
and to consider whether its Budget is reasonable. So long as the
Letter of Credit is outstanding, FICAL shall have such rights, as
well.
(h) (i) If there should be a bona fide dispute
over the Project Operating Costs described in the Budget, then
the parties shall temporarily continue to operate under the prior
approved Budget. The RDA shall then perform an audit of the
books and records of the Project to determine if the expenditures
and income are properly accounted for, or, at the RDA's option,
an audit and review of CCBHC's management practices for the
Project. If the parties cannot mutually resolve such dispute
within 30 days after completion of such audits, then either party
shall thereafter have the right, exercisable on 30 days prior
written notice to the other party and to FICAL, to terminate
CCBHC's rights and obligations with respect to the Project.
(ii) If FICAL determines with reasonable
cause that CCBHC is not managing the Project to the satisfaction
Of FICAL, then, upon the RDA's receipt of a written notice from
FICAL to terminate this Agreement, the RDA shall terminate
CCBHC's rights and obligations with respect to the Project.
(iii) If this Agreement is terminated as
provided in subsections (i) and (ii), above, the following shall
apply: CCBHC shall, as soon as reasonably practicable, reconvey
to the RDA or its designee (which may be FICAL if FICAL shall so
elect) all real and personal property owned by CCBHC that is part
of the Project (including but not limited to the Property) and
used by CCBHC in the operation of the Project, including but not
limited to all Units and personal property thereon owned by
CCBHC, and CCBHC shall thereupon be released from any obligations
hereunder accruing from and after the date of such conveyance.
The Property shall be conveyed in its "as -is" condition. If
there is a time interval between the election to terminate CCBHC
and the actual date CCBHC is required to reconvey the Property
then owned by CCBHC, then, pending such termination, the RDA
shall pay for the Project Operating Costs reasonably incurred by
CCBHC through the date of termination. The RDA may then engage
another person or entity to own or operate the Project. So long
as the Letter of Credit is outstanding and FICAL has not
defaulted thereunder, no conveyance of the Property shall release
the RDA from its obligations pursuant to Sections 2, 3, 4, 5, 6,
7, and 8, unless FICAL shall have expressly consented to the
termination of such obligations.
`� 940717 jar bM-15.jar
(iv) Any conveyance of the Property pursuant
r to this subsection shall be subject to applicable provisions of
\ the Reimbursement Agreement, the deed of trust securing the
construction loan, and the deeds of trust and security documents
which secure the obligations thereunder, including, without
limitations, provisions allowing FICAL to implement default
remedies upon transfers of the Property, interests therein, or
interests in the owner thereof.
(i) CCBHC shall direct and assist the
Project tenants in the formation of a Residents' Association. As
part of the operation of the Residents' Association, CCBHC will
initiate the following:
(i) Operation of the child day care center
with the Headstart Preschool educational program and fee
subsidies available to low-income working families and job
training participants, if available and received by CCBHC.
After school child care activities operated in conjunction
with the local 4-H program provider shall also be requested.
CCBHC covenants and agrees to include a continuous operation
covenant, in form and substance acceptable to the RDA, in
any CC&R's affecting the Project requiring the Residents'
Association to maintain and operate the child care center
.during all ordinary.business hours, and the RDA shall be a
named third party beneficiary of such covenant. CCBHC shall
use its best reasonable efforts to obtain funding for this
child day care center from other sources.
(ii) Jobs training, placement and retention
programs incorporating a GED component, and vocational
English program, as needed. CCBHC shall also solicit the
participation of local employers in this function, to
provide the training component, and assist those local
businesses with tax credits for jobs training and child
care.
(iii) A local van pool program under the
sponsorship of'the United States Department of
Transportation to be available specifically amongst service
worker personnel in the Project, for so long as such program
exists under the Department of Transportation.
(iv) Youth educational programs operated in
conjunction with local business and educational
institutions, such as School -After -School (a tutorial
program), The Mentor Program (a big brother/sister program),
Saturday College (college exposure program for at -risk
youth) and Junior Achievement (an entrepreneurial small
business program for high school students).
-14-
940717 jar h688-15.Jar
(v) Information and referral services to
meet health, education and legal needs.
(j) Upon formation and successful operation of
the Residents' Association, CCBHC shall establish a wholly -owned
subsidiary organization with its own local Board of Directors
which will qualify under HUD rules and regulations as a community
Houeinq Development Organization (CHDO). This Board of Directors
shall be structured in the same manner as the Board of CCBHC and
shall have two types of members: residents of the Project and
technical advisory members from the local community. This Board
of Directors will serve in an advisory capacity only to CCBHC,
which shall continue to operate the Units in the Project from
time to time owned by CCBHC.
(k) The parties hereto acknowledge that in the
event CCBHC shall sell the Units, CCBHC shall be released from
its obligations hereunder with respect to each Unit sold, as and
when such Unit is sold, and upon the sale of the last Unit by
CCBHC, neither CCBHC nor the RDA shall have any further
obligations hereunder.
(1) Subject to the provisions of Section 9(k),
CCBHC's duties hereunder will continue throughout the term of
this Agreement. CCBHC and the RDA intend to enter into an
administrative management agreement to implement the details
hereof.
�~ m CCBHC shall provide to the RDA copies of all
( ) p P
notices received or sent by CCBHC from or to either the Original
Developer (Sterling Partners, Inc.), the General Contractor, the
construction lender, FICAL, or any other person relating to the
development of the Project, including but not limited to all
notices made pursuant the Project Development Agreement (such as
Completion Notices, Acceptance Notices, and notices of default).
Section 11. Rearesentatio s and Warranties of CCBHC:
CCBHC hereby represents and warrants to the RDA as
follows:
(a) CCBHC is a non-profit, public benefit, 501(c)(3)
corporation duly established and existing under the laws of the
State of California with full power and authority to undertake
the Program and enter into this Agreement.
(b) The execution and delivery of this Agreement and
the performance of its obligations hereunder have been authorized
by the Board of Directors of CCBHC.
-15-
9i0717 Jar bEEB-tS.Jar
(c) The execution and delivery of this Agreement by
C CCBHC and the consummation of the transactions on its part
contemplated hereby and thereby do not and will not conflict with
or constitute a breach of or a default under or result in a
violation of (i) its Articles of Incorporation or its Bylaws,
(ii) to the best of CCBHC's knowledge, any constitutional or
statutory provision or order, rule, regulation or ordinance, or
any order, decree or judgment of any court or governmental
authority having jurisdiction over CCBHC or any of its
properties, or (iii) to the best of CCBHC's knowledge, any
agreement or instrument to which it is a party or by which it is
bound.
(d) To the best of CCBHC's knowledge, there is no
action, suit, proceeding, inquiry or investigation before or by
any court, public board or body pending against or threatened
against or affecting CCBHC wherein an unfavorable decision,
ruling or finding would adversely affect (i) the validity or
enforceability of, or the authority or ability of CCBHC to
perform its obligations under this Agreement or any other
agreement or instrument to which CCBHC is a party and which has
been or will be executed by it in connection with the
consummation of the transactions contemplated hereby, or (ii) the
transactions contemplated to be performed by it under this
Agreement.
Section 12. }Representations and Warranties of the RDA.
C
The RDA hereby represents and warrants to CCBHC as follows:
(a) The RDA is a public body, corporate and politic,
duly established and existing under the Community Redevelopment
Law of the State of California (the "Redevelopment Law") with
full power and authority to perform its obligations hereunder.
(b) The execution and delivery of this Agreement and
the performance of its obligations hereunder have been authorized
by the RDA.
(a) This Agreement has been executed and delivered by
the RDA and constitutes a legal, valid and binding obligation of
the RDA enforceable upon the RDA in accordance with its terms.
(d) The execution and delivery of this Agreement by
the RDA and the consummation of the transactions on its part
contemplated hereby do not conflict with or constitute a breach
of or a default under or result in a violation of (i) the
Redevelopment Law, (ii) any constitutional or statutory provision
or order, rule, regulation or ordinance, or any order, decree or
judgment of any court or governmental authority having
jurisdiction over the RDA or any of its properties, or (iii) any
-16-
�' 940717 jar bSU-15.1or
agreement or instrument to which it is a party or by which it is
bound.
(a) There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board or body
pending against or threatened against or affecting the RDA
wherein an unfavorable decision, ruling or finding would
adversely affect (i) the validity or enforceability of, or the
authority or ability of RDA to perform its obligations under this
Agreement or any other agreement or instrument to which the RDA
is a party and which has been or will be executed by it in
connection with the consummation of the transactions contemplated
hereby, or (ii) the transactions contemplated to be performed by
it under this Agreement.
Section 13. insurance Requirements of CCBHC.
Throughout the term of this Agreement, CCBHC shall keep and
maintain in full force and effect the following policies of
insurance:
(a) Liability insurance. CCBHC shall procure, as an
item of the Budget of the approved Project Operating Costs, and
keep in effect from the date of this Agreement and at all times
until the end of the term either Comprehensive General Liability
insurance or Commercial General Liability insurance applying to
the use and occupancy of the Property, the Units, the Project, or
any part thereof, or any areas adjacent thereto, and the business
�- operated by CCBHC therefrom. Such insurance shall include Broad
Form Contractual liability insurance coverage insuring all of
CCBHC's indemnity obligations under this Agreement. Such
coverage shall have a minimum combined single limit of liability
of at least Three Million Dollars ($3,000,000). All such
policies shall be written to apply to all bodily injury, property
damage, personal injury and other covered loss, however
occasioned, occurring during the policy term, shall be endorsed
to add the RDA as an additional insured, to provide that such
coverage shall be primary and that any insurance maintained by
the RDA shall be excess insurance only. Such coverage shall also
contain endorsements: (i) deleting any employee exclusion on
personal injury coverage; (ii) including employees of the RDA and
CCBHC as additional insureds; (iii) deleting any liquor liability
exclusion; and (iv) providing for coverage of employer's
automobile non -ownership liability. All such insurance shall
provide for severability of interests or a cross -liability
endorsement, if such endorsement is reasonably available; shall
provide that an act or omission of one of the insureds shall not
reduce or avoid coverage to the other insureds; and shall afford
coverage for all claims based on acts, omissions, injury and
damage, which claims occurred or arose (or the onset of which
-17-
940717 jar bw-15.jar
occurred or arose) in whole or in part during the policy period.
Subject to approval by the RDA, such insurance may be provided by
the Resident's Association, or a homeowners' association. CCBHC
shall also maintain Workers' Compensation insurance in accordance
with California law, and employers liability insurance with a
limit no less than $1,000,000 per employee and $1,000,000 per
occurrence. Such coverage shall be endorsed to waive the
insurer's rights of subrogation against the RDA. All coverages
described in this Section shall be endorsed to provide the RDA
with 30 days' advance notice of cancellation or change in terms.
If at any time during the term the amount or coverage of
insurance which CCBHC is required to carry under this Section is,
in the RDA's reasonable judgment, materially less than the amount
or type of insurance coverage typically carried by owners or
lessees of properties located in Riverside County, California,
which are similar to and operated for similar purposes as the
Project, the RDA shall have the right to require CCBHC to
increase the amount or change the types of insurance coverage
required under this Section.
(b) Property Insurance.
(i) CCBHC shall obtain and keep in force during
the term of this Agreement a policy of insurance covering loss or
damage to the Project, including the Units owned by CCBHC, and
all subsequent and additional improvements thereon, and all
�- personal property that is part of the Project or the Units, or
used by CCBHC in owning, managing or operating the Project, in
the amount of the full replacement value thereof, as the same may
exist from time to time, but in no event less than the total
amount required by lenders having liens on the Units or the
Project, against all perils included within the classification of
fire, extended coverage, builder's risk, vandalism, malicious
mischief, and special extended perils ("all risk" as the term is
used in the insurance industry). At the RDA's option,
endorsements for flood and earthquake shall also be acquired.
Said insurance shall provide for payment of loss thereunder to
the RDA or to the holders of mortgages or deeds of trust on the
Project or the Units. If such insurance coverage has a
deductible clause, the deductible amount shall not exceed $10,000
per occurrence, and CCBHC shall be liable for such deductible
amount.
(ii) Not less often than every three (3) years
during the term of this Agreement, CCBHC and the RDA shall agree
in writing on the full replacement cost of the Property and all
improvements thereon. If, in the opinion of the RDA, the amount
or type of property damage insurance coverage, or any other
amount or type of insurance at that time is not adequate or not
provided for herein, CCBHC shall either acquire or increase the
-1B-
940717 )or b088-15.iar
insurance coverage as required by the RDA and approved in the
annual Budget of the Project Operating Costs.
(c) Insurance Policies. If CCBHC shall fail to obtain
any insurance required hereunder, the RDA may, at its election,
obtain such insurance. Insurance required hereunder shall be
issued by companies holding a "General Policyholders Rating" of
at least B+ VIII or better, as set forth in the most current
issue of "Beat's Insurance Guide" and authorized to business in
California (or a carrier admitted in the United States, if
approved by the RDA). CCBHC shall deliver to the RDA copies of
policies of such insurance or certificates evidencing the
existence and amounts of such insurance with loss payable clauses
as required by this Section 13. No such policy shall be
cancelable or subject to reduction of coverage or other
modification except after thirty (30) days' prior written notice
to the RDA. CCBHC shall, at least thirty (30) days prior to the
expiration of such policies, furnish the RDA with renewals or
"binders" thereof. CCBHC shall not do or permit to be done
anything which shall invalidate the insurance policies referred
to in this Section 13. If CCBHC does or permits to be done
anything which shall increase the cost of the insurance policies
referred to in Section 13, then CCBHC shall forthwith upon the
RDA's demand reimburse the RDA for any additional premiums
attributable to any act or omission or operation of CCBHC causing
such increase in the cost of insurance. All policies of
insurance shall name the RDA (and at the RDA's option, any
additional parties designated by the RDA) as an additional
insured, except the fire and extended coverage insurance shall
name the RDA as loss payee.
Section 14. Expiration of FICAL's Rights. Upon the
expiration of the Letter of Credit, or in the event of a default
by FICAL on its obligation to make a disbursement on the Letter
of Credit, any provisions hereof relating to FICAL shall
terminate and be of no further force or effect. In such case,
wherever the RDA may exercise any rights only with FICAL's
consent, the RDA may thereupon exercise such rights without
FICAL's consent.
Section 15. Refunding of )?r:Lgr obligations. The
definition of Prior Obligations (to which the Pledged Tax
Revenues are subordinate) shall include any obligations, bonds or
other indebtedness issued to refund any of the Agency Bonds or
Housing Authority Bonds, subject to the following limitations:
(a) In the event of a refunding, refinancing or
restructuring (collectively, a "refunding") of the Housing
Authority Bonds, the terms of such refunding shall provide that
the pledge of the Housing Set -Aside Amount pledged to debt
-19-
940717 jar b8WIS.1ar
service on the obligations which refund Housing Authority Bonds
shall be made on a parity lien basis with the pledge of Pledged
Tax Revenues hereunder. The annual portion of the Housing Set -
Aside Amount that is pledged to obligations which refund the
Housing Authority Bonds that shall be on a parity lien basis with
the Pledged Tax Revenues shall not exceed the sum of $1,450,000
plus any coverage requirements associated with the refunding
obligation.
(b) In the event of a refunding of the Agency
Bonds, any pledge of the Housing Set -Aside Amount to such
refunding obligations may be superior to the pledge of Pledged
Tax Revenues hereunder on the condition that (i) the average
annual debt service requirements of such refunding obligations
does not exceed the average annual debt service requirements of
such refunded Agency Bonds, and (ii) the portion of such Housing
Set -Aside Amount pledged to the obligations which refund the
Agency Bonds is derived only from the Agency's Project Area No. 1
-- Added Territory. In addition, if:
(i) as of the time of such refunding of the
Agency Bonds the Housing Authority Bonds have either been
refunded or are no longer outstanding and
(ii) the requirements for the issuance of
parity bonds contained in the indenture for the refunding of the
( ' Agency Bonds are satisfied,
then the HousingSet-Aside Amount pledged to the obligations
d P 9 9
which refund the Agency Bonds shall be on a parity lien basis
with the pledge of Pledged Tax Revenues hereunder.
(c) To the extent that debt or obligations
secured by Prior Obligations are subsequently defeased, cancelled
or otherwise terminated from proceeds other than refunding
proceeds, there shall be a reduction of Prior Obligations equal
to the amount of Housing Set -Aside Amount released as a result of
such defeasing, cancellation or termination.
Section 16. Miscellaneous.
(a) Amendments and Interpretation. This Agreement may
be amended only in writing signed by the parties hereto. The
parties agree that, wherever and whenever possible this Agreement
shall be interpreted so as to give effect to the purpose of the
Program, the Regulatory Agreement, the Bond Documents and the
Project Development Agreement. Whenever possible each provision
hereof shall be interpreted in such a manner as to be effective
and valid under applicable law. If any provision hereof is
prohibited or found to be invalid under any applicable law, such
( -20-
940717 jar b8WS.jer
provision shall be deemed withdrawn only to the minimal extent of
such prohibition or invalidity, without invalidating the
ll remainder of such provision, or the remaining provisions hereof.
Titles to Sections are only for convenience of reference and
shall not be used to interpret or explain this Agreement.
(b) Indgmnification. CCBHC shall indemnify, or
cause indemnification of, and hold the RDA, the Trustee, and
their assigns, members, officers, agents and employees harmless
from, and defend each of them against, any and all claims, liens
and judgments for death of or injury to any person or damage to
property whatsoever occurring in, on or about the Project or the
Property. CCBHC shall indemnify, defend, and save the RDA
harmless against any and all claims, costs, losses, liabilities,
and causes of action made against the RDA or arising under any
judgment rendered against it arising from the acquisition,
ownership, operation or disposition of the Project or any portion
thereof, or any interest therein, or arising under the Regulatory
Agreement or the Project Development Agreement. The indemnity
obligation described herein shall be subject to and limited by
the remedies and non -recourse provisions set forth in subsection
(i) hereof. Each successor in interest of CCBHC as owner of the
Project shall be liable on account of this indemnity provision to
the extent any claim, cost, loss, liability, or cause of action
arises during any period of time in which such successor is in
possession of the Project or portion thereof.
C(c) Assignment. The rights and obligations of this
Agreement may not be assigned or otherwise transferred except by
operation of law to a successor public agency or qualified non-
profit corporation, as the case may be; provided, however, CCBHC
may assign its rights hereunder to FICAL. This Agreement shall
be binding upon and shall inure to the benefit of the parties
hereto and the successors and assigns of the parties hereto.
(d) Conflict of Interest. No member of the staff of
either party or any of its commissioners or advisory
commissioners, if any, shall have any interest in this Agreement,
in the Project, or in any contract to be let in accordance
herewith or in any real property within one-half mile of the
Project. If any such interest is present now or subsequently
arises, the interest holder shall give written notice to the RDA
or CCBHC, respectively, of such interest and such interest holder
shall be thereafter precluded, for so long as such conflicting
interest continues, from any decision making with regard to the
implementation hereof.
(e) Notices. All notices to be delivered to the
parties pursuant to the terms hereof shall be in writing and
shall be delivered in person or by certified U.S. Mail, postage
-21-
t` 940717 jar WN-15.Iar
prepaid, return receipt requested, or another nationally
recognized overnight delivery service, to the addresses listed
below.
Any of the following addresses may be changed by written
notice. If notice is given it shall be deemed effective upon the
date of actual receipt as evidenced by personal acknowledgement,
return receipt or other comparable means.
If to CCBHC: Civic Center Barrio Housing
Corporation
431 S. Bristol, Suite 6
Santa Ana, California 92703
Attn: Helen Brown
Copy to: AH Consultants, Inc.
7745 Greenback Lane
Suite 300
Citrus Heights, California 95610
Attention: Michael A. Heaman
and copy to: Roger Grable
Paone, Callahan, McHolm & Winton
19100 Von Xarman
Sth Floor
Irvine, California 92715
If to the RDA: Palm Desert Redevelopment Agency
C
75-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Executive Director
with a copy to: Richards, Watson & Gershon
333 South Hope Street
38th Floor
Los Angeles, California 90071
Attn: William L. Strausz
So long as the Letter of Credit is outstanding, copies of all
notices shall be sent to FICAL, at the following address:
First Interstate Bank
707 Wilshire Boulevard, MS W18-5
Real Estate Community Loans
Los Angeles, California 90017
Attention: Lee Winslett
-22-
940717 Jar bC88-15.1ar
First Interstate Bank
707 Wilshire Boulevard, MSW 18-5
Real Estate Community Loans
Los Angeles, California 90017
Attention: Rhonda Friedly
(f) Time is of the Essence. Time is hereby expressly
made of the essence of this Agreement and each and every term and
condition contained herein.
(g) Governing Law. This Agreement shall be construed
in accordance with the laws of the State of California in effect
at the time of the execution of this Agreement.
(h) Attorneys' Fees. Except as otherwise expressly
provided herein, each party shall be responsible for its own
costs and fees incurred in connection with any of the litigation
described in this Agreement and in connection with the
preparation and execution of this Agreement. In the event any
action is brought between the parties hereto seeking enforcement
of any of the terms and provisions of this Agreement, the
prevailing party in such action shall be entitled to have and to
recover from the other party attorneys' fees and other expenses
in connection with such action or proceeding, in addition to its
recoverable court costs.
- (i) Remedies: Non- se Provision. If either party
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
by the defaulting party within thirty (30) days after service of
the notice of default, or if the default is not commenced to be
cured within thirty (30) days after service of the notice of
default and is not cured promptly within a reasonable period of
time after commencement, the defaulting party shall be liable to
the other party for damages caused by such default. Provided,
however, the RDA, the Trustee, and their assigns, members,
officers, agents and employers, agree to look solely to CCBHC's
interest in the Property and improvements thereon (or the
proceeds thereof) for the satisfaction of any remedy of the RDA,
and for the collection of a judgement (or other judicial process)
requiring the payment of money by CCBHC, except where such
judgment results from a claim of fraud; intentional
misrepresentation; misapplication, misappropriation, or wrongful
retention of rental income, casualty insurance, condemnation
proceeds, or other funds attributable to Property; the commission
of any act of deliberate waste with respect to the Property; or
the deposit of any hazardous or toxic materials on the Property,
in which events there shall be no such limitation on the recourse
against CCBHC.
C940717 jar h888-15.1ar —23—
IN WITNESS WHEREOF, the parties have caused this Agreement
to be executed on their behalf by their duly authorized
representatives all as of the date first above written.
"RDA" "CCBHC"
PALM DESERT REDEVELOPMENT CIVIC CENTER BARRIO HOUSING
AGENCY, a public body, corporate CORPOBATTQN, a California non -
and politic / pro t, p lic benefit
co oorati -1- , /)
By:
By:
irman
sident
t
Q ` By.
X
Se r ary
-24-
940717 Jar b6U-15jer
Exhibit F
Law Offices of Mark A. Kompa
23113 Plaza Pointe Drive
Suite 110
Laguna Hills, CA 92653
Telephone: (949) 600-7800
Fax: (949) 600-7805
Ms. Helen Brown
President & CEO
Civic Center Barrio Housing Corp.
980 West 17th Street, Suite "E"
Santa Ana, CA 92706
CCBHC/Seacrist & McDonald
For Services Rendered from 81W01I Through 813MOI1.
Fees
12& TmknrDescriation
09/02/2011 MAK Review and analysis of Plaintiffs' ten -page Complaint for Personal
Injury (Toxic Mold) and Plaintiffs` Statement of Damages;
telephone conference with Defendant CCBHCs President H.
Brown, discussing factual background of civil action, denying that
the CCBHC was the developer or owner of the home; telephone
conference with Plaintiffs' attorney R. Tobias, asserting that the
CCBHC is not liable for the Plaintiffs' claims, advising him that
the CCBHC only qualified the Plaintiffs for the home, confirming
brat the Plaintiffs served H. Brown personally on 718/11.
requesting 15-day extension oftime for the CCBHC to respond,
granting extension to VW11; prepare e-mail to attorney R. Tobias
re: same
Continued Ou Next Page
September 5, 2011
Invoice No. 2553
Hoare Ammot
0.70 S19230
Client Number: BROWN
Matter Number: SEACRIST
0910011
page: 2
WI1/201 I MAK Review and analysis of I I -page Answer to Complaint of the City 0.50 $137.50
of Palm Desert Defendants; telephone conference with City of
Palm Deserts attorney J. McMillin, advising him that the
Defendant CCBHC was not the developer of the project,
explaining that the City of Palm Desert hired the CCBHC as an
independent contractor to evaluate eligibility of low-income
applicants, requesting the City of Palm Desert to defend the
CCBHC, inquiring if there was a written indemnity agreement
between the City of Palm Desert and the CCBHC; prepare e-mail
to H. Brown, summarizing telephone conference with the City of
Palm Desecf s attorney J. McMillin, requesting confirmation that
the CCBHC was not the developer, inquiring if there is a written
agreement between the City of Palm Desert and the CCBHC (that
provides for indemnity), etc.
09/16/2011 MAK Prepare-a-M&il to Plainri attorney R. Tobias, acknowledging my 0.30 S32.50
receipt of the City of Palm Desert Defendants' Answer to
Complaint, advising him that the City of Palm Desert did not
cross -complain against my client, the Defendant CCBHC, advising
him that the CCBHC is attempting to locate any documents it
entered into with the City of Palm Desert related to the
development, requesting additional 15-day extension of time to
answer or plead or otherwise respond to the Complaint
08/10011 MAK Telephone conference with Plaintiffs' attorney B. Tobias; 0.40 sI10.00
requesting additional extension of time for the Defendant CCBHC
to answer or plead or otherwise respond to the Complaint to
9n1l 1, granting same, inquiring if the CCBHC has determined
who developed the real property, etc.; prepare e-mail to attorney
Tobias, confirming additional extension of time for the Defendant
CCBHC to answer or plead or respond to 9n/11; prepare e-mail to
H. Brown and J. Sealey, re. status of civil action, same, reiterating
need for them to provide me with any documents identifying the
developer and agreements between the City of Palm Desert and the
CCBHC as soon as possible; *review e-mail from IL Brown,
acknowledging same, advising me that the file for this
development probably is in storage, etc.; prepare e-mail to H.
Brown, reiterating that there should be a written agreement
between the City of Palm Desert and the CCBHC, etc.
BMsbk Hours /Fees: ' 1.90 SUIS0
Timekeeper Summary
Timekeeper MAK worked I.90 hours at S275.00 per hour, totaling $=,SO.
Continued On Piet Page
Client Number: BROWN
Matur Number: SEACRIST
Current Fees:
5522.50
Advanced Costs:
$0.00
TOTAL AMOUNT DUE:
S S22.50
Kindly prepare a check in the above amount and remit it to
us within thirty (30) days of the date of this invoice.
Please do not hesitate to contact us if you have any
Questions.
09105/201l
Page: 3
Law Offices of Mark A. Kompa
23113 Plaza Pointe Drive
Suite 110
Laguna Hills, CA 92653
Telephone: (949) 600-7300
Fax: (949) 600-7805
Ms. Helen Broom
President & CEO
Civic Center Barrio Housing Corp.
990 West 17th Street, Suite "E"
Santa Ana, CA 92706
CMUSeacrist & McDonald
October 3, 2011
Invoice No. 2586
For Services Rendered from 9/17011 Thrcngb 9/30J2011.
Fees
DAU Tmknr esD crlotion &M Agount
09/0620I t MAX Telephone conference with J. Sealey, updating me on the status of 030 S82.50
her efforts to locate the documents related to the subject
development, etc.; telephonic voice mail to Plaintiffs' attorney B.
Tobias, requesting an additional I5-day extension of time to
answer or plead or respond to 9=11. explaining that the
Defendant CCBHC is endeavoring to find the documents related to
the development, requesting an additional 15-day extension of
time to 9/22/I 1; prepare e-mail to B. Tobias re: same
09/07/2011 MAK Telephone conference with Plaintiffs' attorney B. Tobias, granting 0.10 $27.50
the Defendant CCBHC an additional 15-day extension of time to
respond to the Complaint from 9/7/11 to 9=11; review e-mail
from attorney Tobias, confirming same; prepare e-mail to attorney
B. Tobias, acknowledging same
09/122011 MAX Prepare e-mail to J. Sealey, notifying her that the Plaintiffs' 0.20 S55.00
attorney granted the Defendant CCBHC an additional extension of
time to 9/22/11 in which to answer or plead or otherwise respond,
requesting her to collate and produce the documents related to the
development no later than 9/20/1 I, etc.
Continued On Next Page
Client Number: BROWN
Matter Number: SEACRIST
09/1 U2011 MAK
09130/20I1 MAX
Telephone conference with Plaintiffs attorney B. Tobias,
requesting final 15-day extension of time for the Defendant
CCBHC to answer or plead or respond to the Plaintiffs' Complaint,
granting a final extension to I0/7/I I in exchange for allowing
Plaintiffs' to propound written discovery to the Defendant
CCBHC, notifying me of the Court -ordered Case Management
Conference (CMC) on 10125/11; prepare e-mail toB. Tobias,
confirming final I5-day extension and agreement that the Plaintiffs
may propound written discovery to the Defendant CCBHC,
acknowledging I have been notified of the CMC, etc.; prepare
e-mail to I Sealey re: same, reiterating need to find and collate all
documents related to the project as soon as possible; view o-ma.1
from the CCBHCs President H. Brown, advisima
lieu of an original, etc.
Review and analysis of three -page Memorandum from the
CCBHCs Paralegal J. Seat
Ya_bACKgr0Un4 o
am me mg ropers ono ttorney notes and comments to
same
Billabk Hone / Fees:
Timekeeper Summary
Timekeeper MAX worked 2.40 hours at $275.00 per hour, totaling S660.00.
Current Fees:
$660.00
Advanced Costs:
S0.00
TOTAL AMOUNT DUE:
S660•00
Kindly prepare a check in the above amount and remit it to
us within thirty (30) days of the date of this invoice.
Please do not hesitate to contact us if you have any
questions.
0.50
130
2.40
10/03/2011
Page: 2
S13730
$357.50
S660.00
OEL /VERY SERV/CEf
INVOIC,
KOWA, H xx
Attnt BEAM& PIERCE
23113 PLAZA POn ME DRIVE, s=TE 110
LAGMUL WOODS, CA 92653
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Phone F. 9494151-2127
Email: Accounting ®NorcodWImycom
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Proof of Service by U.S. Mail
State of California )
ss
County of Orange )
1, Seana Pierce, declare that:
I was at the time of service hereinafter mentioned at least 18 years of age and not a party to the
above -captioned unlimited civil action. My business address is: 23113 Plaza Pointe, Suite 110,
Laguna HiIIs, California 92653. 1 am employed in Orange County, California.
On October 26, 2011, I served a copy of the pleading, entitled: CIVIC CENTER BARRIO
ROUSING CORPORATION'S CLAIM AGAINST THE CITY OF PALM DESERT on
interested parties by placing a genuine and complete copy thereof enclosed in a sealed envelope and
addressed as follows:
Joe McMillin, Esq.
Attorney at Law
70 Colgate Drive
Rancho Mirage, CA 92270
[Counsel to Defendant City of Palm Desert, Etc.]
I personally deposited said envelope in the mail at Laguna Hills, California. The envelope was
mailed via first-class United States mail, with postage thereon fully prepaid.
(State) I declare under penalty of perjury of the laws of the State of Califomia that the above
is accurate and true.
(Federal) I declare that I am employed in the office of a member of the bar of this Court at
direction the service was made.
Executed on October 26, 2011, at Laguna Hills, California.
Seana Pierce