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HomeMy WebLinkAboutSR - R19820A - AMND3 -OPA - American InvstmntContract No. R19820A PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVE THIRD AMENDMENT TO THE OWNER PARTICIPATION AGREEMENT WITH AMERICAN INVESTMENT PALMS TO PINES EAST LLC FROM: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST DATE: NOVEMBER 16, 2006 CONTENTS: THIRD AMENDMENT TO OWNER PARTICIPATION AGREEMENT BETWEEN AMERICAN INVESTMENT LLC CONSTRUCTION AGREEMENT BETWEEN AMERICAN INVESTMENT AND SHELLMAN ENTERPRISES FOR COMPLETION OF PHASE III Recommendation: By Minute Motion, that the Agency Board: Approve the Third Amendment for improvements to the property pursuant to the Owner Participation Agreement between the Agency and American Investment Palms to Pines East LLC; and 2. Authorize the Chairman to execute the Agreement incorporating the changes. Executive Summary: The proposed Third Amendment to the Owner Participation Agreement will allow American Investment Palms to Pines East, LLC an extension of their completion date for Phase III from October 2006 to October 2007. Phase III site work includes the Facade Enhancement to all the businesses fronting El Paseo. Mr. Glasser has substantially completed Phases I and II as outlined in the Second Amendment. Mr. Glasser has also contributed an additional $125,000 utilized first in the renovation, prior to the Agency's additional funding. Mr. Glasser has secured $2,249,016 for the completion of Tweeters, 99 cent Store, and Staples. The Agency's total contribution to the Palms to Pines rehabilitation of $2,157,820 will not change, and will still represent approximately 48% of the total cost of development, which is $4,531,836. This time delay reflects the wishes of the merchants as expressed in the attached three letters, and conforms to their requested time frames. Attached is the Third Amendment to the Owner Participation Agreement, which has been executed by Mr. Glasser, and the Construction contract between Shellman Construction and American Investment LLC, (AI) which outlines the improvements to be performed on Phase III of Palms to Pines East. G \RDA\Cathy Walkeri ft Data\Slaff for Third Amendment to OPA Palms to Pines 3 wpd Contract No. R19820A Staff Report Approve Third Amendment to OPA with American Investment Palms to Pines LLC Page 2 November 16, 2006 Discussion: On July 8, 2004, the Agency Board approved an Amendment to the Owner Participation Agreement ("Agreement') that superseded the earlier Amended and Restated Owner Participation Agreements between the Agency and American Investment Palms to Pines East LLC, dated February 26, 2004 ("OPA"). Both of the Owner Participation Agreements were to provide assistance to American Investment Palms to Pines East LLC in the renovation of the Palms to Pines East Shopping Center. The time extensions granted on July 8, 2004 to American Investment LLC by Agency Board established a Commencement Date of July 15, 2004, a Completion Date of March 14, 2005, and granted a delay in construction (Holiday Season from November 11, 2004 through January 15, 2005). In the Council Action of October 27, 2005, American Investment was granted an additional schedule delay extending completion of Phases I and II to April 30, 2006, and Phase III (facade enhancement to Building No. 5) to October 7, 2006. The Council Action also granted American Investment additional funding in the amount of $857,820. As of today American Investment has substantially completed Phases I and II, and has only been reimbursed by the Agency for work completed. Phase III (facade enhancement to Building No. 5) funds have been allocated and held until the Planning Department and American Investment LLC reached an agreement for modification to the architecture and change in scope for the improvements to Building No. 5. On October 3, 2006, American Investment submitted the new facade plan for Building 5 and the required grading plans. American Investment has worked closely with the Planning Department to complete this final design, and is currently in the final review stage. The $414,017 costs, approved by Council on October 27, 2005, will continue to be held as a not -to -exceed amount. Construction will be implemented beginning June 1, 2007 with completion scheduled for October 30, 2007. Construction will be held until June 1, in order to accommodate the business districts high season of November 2006 through May 2007. The three affected business owners have written letters expressing the necessity for an additional delay, and are attached for your review. These changes are as follows: Phase I I I (Commencement June 1, 2006/Completion Oct.30, 2007) • The facade improvements to Building 5 fronting El Paseo The Site work for these phases is identified in Exhibits F and G of the Owner Participation Agreement. Attached are the signed agreement between American Investment LLC and Shellman Construction and the Third Amendment to the OPA which has been executed by Mr. Glasser. The Agreement between Shellman Construction and American Investment LLC outlines the scope of the project and states that Shellman Construction will still perform the work as determined in the OPA for the costs as established in the Second Amendment. G \RDA\Cathy Walker\Wp Data\Staff for Third Amendment to OPA Palms to Pines 3 wpd Contract No. R19820A Staff Report Approve Third Amendment to OPA with American Investment Palms to Pines LLC Page 3 November 16, 2006 Staff would recommend that the Board approve the Amended Timeline incorporating the above -described modifications to the Agreement, and thereby facilitate the completion of the project. Submitted by: Catherine Walker Senior Management Analyst mh Approval: ti McCarthy, AC evelopment Carlos L. X?09a,'Executive Director G \RDA\Cathy Walker\Wp Data\Staff for Third Amendment to OPA Palms to Pines 3.wpd Department Head: z Dave Yrir en \ Direct of Redevelopment/Housing (;4.1zelc Paul S. Gibson, Director of Finance �Tn5KIQI Bl' RDA ON I(^I Le—O(p VERIFIED BY 12�K Jr�J Original on file with City Clerk's Office THIRD AMENDMENT TO OWNER PARTICIPATION AGREEMENT THIS THIRD AMENDMENT TO OWNER PARTICIPATION AGREEMENT ("Amendment") dated as of November 16, 200G ("Effective Date"), is entered into by and between the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency") and AMERICAN INVESTMENT PALMS TO PINES EAST, LLC, a California limited liability company ("Developer"). RECITALS A. The Agency and Developer have previously entered into that certain Owner Pariicipation Agreement, dated as of March 25, 2004, as amended by that certain letter agreement dated July 22, 2004, and that certain Second Amendment to Owner Participation Agreement dated October 27, 2005, between the Agency and Developer (as so amended, the "OPA"), which affects that certain property located in the City of Palm Desert, County of Riverside, State of California, more particularly described on Exhibit "A" attached to the OPA. B. The Agency and Developer wish to amend and modify the OPA as hereinafter set forth in this Amendment. AGREEMENT NOW, THEREFORE, in consideration of the terms of this Amendment and for other valuable consideration, the receipt of which is hereby acknowledged, Agency and Developer agree as follows: 1. All capitalized terms not otherwise defined herein shall have the meanings ascribcd thereto in the OPA. 2. Section 2.2.3 of the OPA is hereby deleted in its entirety and the following is substituted therefor in its place: "2.2.3 Schedule of Performance. Owner shall commence construction of Phase I and Phase II of the Improvements (each as described in Exhibit A attached hereto) on or before October 28, 2005, and shall commence construction of Phase III of the Improvements (as described in Exhibit A attached hereto) on or before May 1, 2006 (each of said October 28, 2005 and May 1, 2006 dates being herein referred to as a"Commencement Date"}, and shall complete such construction of the Phase I and Phase II Improvements by April 3U, 200G, (the "Phase I and Phase II Completion Date"), and complete such construction of the Phase III Improvements on or before June 1, 2007 (the "Phase Ill Completio�l Date"). Without limiting the provisions or effect of this Section 2.2.3 or Section 3.1 hereof, the construction of all of the Improvements shall be completed on or before June l, 2007. For the purposes of this A�reement, thc completion of construction of each Phase of the Improvements shall be evidenced by a contractor's and architect's certificatc to be provided by Owner, and reasonably PG4112-(1459�92-1U7(,� 3 doc acceptable to the A�ency as io form and content, and certifying that the construction of the subject Improvements has been substantially completed in substantial compliance with the Final Construction Drawings and the plans and specifications approved by the City, except for specified "punch-list" items that do not impair the function or use of the subject Improvements (the "Certificate of Completion"). Subject to the provisions of Section 7.7 hereof, if Owner has not commenced construction of each Phase of the Improvements by the corresponding Commencement Date set forth in this Section 2.2.3, or completed construction of each Phase of the Improvements by the corresponding Completion Date set forth in this Section 2.2.3, then Agency may, in its sole and absolute discretion, terminate this Agreement upon ten (] 0) working days prior written notice to Owner and Owner's failure to cure within such period, and the Agency shall automatically be released from all of its obligations under this OPA, including but not limited to its obligation to pay the Agency Consideration to the Owner; provided, however, the Agency shall pay for Improvements completed as of the date of such termination." 3. Except as specifically modified hereby, the OPA shall remain unaffected and unchanged by reason of this Amendment. 4. The OPA is hereby ratified and affirmed by Developer and shall remain in full force and effect as modified hereby. 5. This Amendment shall bind and benefit the heirs, successors, and assigns of Developer and Agency, respectively. 6. Nothing contained in this Amendment shall be construed as giving any person or entity, other than the parties hereto, any right, remedy or claim under, or with respect to, the OPA. 7. Developer acknowledges and agrees that if and to the extent that Agency has not heretofore required Developer to strictly comply with the covenants, agreements and obligations contained in the OPA, such action or inaction shall not constitute a waiver of, or otherwise affect or prejudice Agency's future rights, remedies, benefits or powers under the OPA in any manner, including the right to require performance of such covenants, agreements and obligations strictly in accordance with the terms and provisions of the OPA. 8. The OPA as modified by this Amendment constitutes the final expression and the entire and exclusive agreement of the parties hereto with respect to the subject matter hereof, and supersedes in all respects any and all other negotiations and agreements between the parties hereto, whether oral or written. 9. This Amendment shall be governed by and construed in accordance with thc laws of the State of California. 10. If any court of competent jurisdiction determines any provision of this Amendment to be invalid, illegal or unenforceable, that provision shall be deemed severed from Nc�anz-o.t>��;��zam�,. � d<,� the rest, which shall remain in full force and effect as though the invalid, illegal or unenforceable provision had never been a part hereof. 11. No provision of this Amendment may be changed, discharged, supplemented, terminated or waived except in a writing executed by the parties hereto. 12. In executing this Amendment, neither party has relied on any inducements, promises or representations made by the other party or its attorney, other than those set forth herein. 13. This Amendment may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. [signatures begin on next page] P6�3U2-I1d5�1 �)241)76�?.doc WITNESS the signatures of the parties as of the date first set forth above. ATTEST: Secretary APPROVED AS TO FORM: AGENCY GENERAL COUNSEL, Richards, Watson and Gershon, a professional corporation : PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Name: Title: AMERICAN INVESTMENT PALMS TO PINES EAST, LLC, a California limited liability company By: Name: Title: By: Name: Title: P�,an2-u�3s9 9za��7�,�;.Joc 4 CONTRACT NO. R19820A THIRD AMENDMENT TO OWNER PARTICIPATION AGREEMENT EXHIBIT "A" 10/1B/2005 10:03 19494978�53 AMERICAN INVESThENT PA(� 07 CONTRACT N0. 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D. or F1C,4 No.:33- 91053�4 FOR THE FOLLOW/NG PROJECT.• lmprovements to BuiJding # 5 -n;;., : - _ , - �;-.,-.r.n;n:v ^n.�,rr.r RELEVANT OATFS: Commence►menf l7�tA: M�y 75, 7.007 r`.�r -�!�:.i:i,� i��Jc. ^.�nl���-/ir,: ' - ', �//� 10/25/2006 18:30 19494978053 AMERICAN INVESTMENT PAGE 02 FOR VALUABt.E CONSlDERA TlON, tho adoquacyand sufflclency of whfch are hereb y acknowledaed, Owner and Co�ttractor, ap�ee as fb/bws: 1. CONTR�4CTDOCUMENT� The confract docurnents ("Corrtrect Documer�ts'� shaff be comprised ailhe folbwing: ' Thrs Agreerr,errt (as i1 may be modifed pursusnt teo ds tenms); ' 7he genaraf condiNons {'Genarel Condmons'� attached here fo as Exh►bif i4-1 "; ' 7he plans and speci�cations {'Plar�s and Speci�rcations� , if any, a!lached hereto in �xhrbit �A_2" ` The parformance and Jabor and matsria! payment bends, if ar,y, idenf/fiee in !he General �ondifinns; ` Ttre job procedures and instructions manua(; °,;oD �f;�nua!' j ifanv. atlacl�ed �Tereto as tx; �rbr! 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Progress Payrnent Applicafions must include the followirtg: ' Copies ofatl rnvaces forallmefe►tafs suitaDly stcrad at the srte of the Wcrk cr�t s�me other lOCBtfOn BQ/Bdd upO�i bUt Ao! yet incorporated int�p the Work; ' Prope�y completed Conditional Release ct Lien and Waiver oi Claims, ' Be�inn.ing with the secon� payment request, a properiy com.plered tircondrtional Reraasa ot �Iert and Wsfver of ClBims fam oovering ihe p�vJous payrrrer,t: ' .1 5���:�1ier�Subcont'8G10Y S1�fCrrl2r%t and 3pGr�;pYia,c' R�J�;�se ct!_;er. �no V'la:vt-r C�l Cl3�m �;r,;7�.- �,n tt+e f;,m� Oi �i•hiY,� '�" .`r.:M� �!l S��pp�r�,;? A"�C ti�bCOrl�rd����; _��f CO�'��r�CfC.r• E3Cf; .4p�iiC3ttC� fOf �2Vf!i@Ili S�JBtf S?;�Jt•.+iha DefCA�23p� Of �O.?'01eiiClt J�23�?i l:C'il;'.^. .^? :�� 1^i��}' i,i,7T;�716t5�. a: ot th6 �r i i7i !hA �6�7�7ii i.l�i:ESidti �`Sv ii`7F „rl,;;car.,,r, i�7i I"yV/TiF�IIf �iil�:�`! r"=iCc/:�n_u'.• ;.r .... �r��?�t.�cn �� h.7: � h� !he lesser r7t i 7 i f/r� perC �nteoe C! thbt A��t�Cn of the LVprn I/tAt .h3S sc.'uaAi be•,n --. .� =�s- _- � _'� .`a ra-ca-tau� abta:�a;, �.: :.;v;�;r,� ;a; rr,� ,?xr.=;�:,'= .�r;,:~ ;,a.; acr�;a;;y :�rar, „G:1."C'7 �: 't , - � ^9: UC!: O^ � �r:::? �' .'k �� .: r�r.:f : rE? ......."<JC!�7 %?�:; .'Y:�..� -, �� i.:c,:ir;cic;r:,r,.�c;cou^ cft � :�� r�- -r .�rarrz: ;_� ;,r.i.:.> >.,::;�j ���mc.Rr. ;•;+ :�.;�i; � I.'p.,: /'GC;(j/1lJ '��1;1 �1.�7 �,,y��h.c r,r,,u • - _ Q,�i!C�(:�"'`,'v,- `'�'y;,;e.,^i t'Y �C.i f�P Mt??.?:,t?� Ori!7_ :.h,:?'B �rir9 =•�,'i���Cf �. �E Z:'GG�'�C.:� i!?.i; Ct;.^.':;^ - .. - .. •n. .: rn.� . _ - __nr _ _ . .-rr, - - . - --- .:�:.. �'ti•_ ._ ,�r, -- �- - - - - - - - - - - - =�� -- --,- �.r i ..:?:i3fi��'S �'r��r��s Fa�tT}r ri: �?:,.;(1�3f:� � i�, _ ... 'T t�.-�•� �•!r� ...:lt �.' � �':..��ti,,-._ .�. . reuur: �.. :: �:: : _w•r'i.�r. ol�v G3��i vh72Q E1�@ 'r�GF'r' :c ;n ,-�r;: _:r:'FFC�riarrZ +k'lin .r� �•:�nr��c� � in�;�,�r.:n::, `.�,,.,:ai ,,,. �a.^�r f� i;�,�tr3r.+nr fn� `.^.x7m.�s P.�o•�r,F�1 fr^.^. n rn.%3r^n�^ nf tFn nr.manf /i���i nnr :r^^ ., . ..... _,,ra � _,;a, n�a� .,;r���ti0ti' G!'.iP.C.�u::! ::1 ;CG-i;�i:9:iGe �vrii� fli� ::enersi i,.,. .,..,•,,�•� � ;iJQt_ DAYk4�Ni'. v'rhE� i�pnFYB'C0� :i,�+�S�ders ir►at he !tas me! a1% Of hrS 0�71iL�3ii011S ur?d�f fl1? L:dn'!8�� uOCuntAri:s. �.vr�ir'v(:ii�i Sildn i,�lJy fU UWnG'f Ufbit !� YYUiK �S LOt7)Di@i@ Hi BCCOf08/iCA IA�lif7 fftB LOfiffBCi JOC��17C�1?ls, Su,7iect ro ths Gene�'d� `iOR(1F{."JP.S. :V11f!!f' lhtY'.^. ' f ��(j2V;i �!!C'!1�8 lS;iJ �.'IC9 O' ,., �'�C:.'.':,.^ J; i,�A7p:BI1��1, l.'O1TI1'8Ci0!' Sf?8!! SUOA>�l i0 C.iW�c3i i1+S t uie� ApUi+cdCruri �ur 'rdyrr�etrl wi+rcf� �),d,; �t� � .��. . � . :!`_' ....., .7'1i! ...:?�'RL9� ...^C,`�'.�� 1!)G� <:f: ..�ilf�'!&�E' C:' �!! f!7;f1�!' . N ,` B� _. ':Qr G C� �CC�r''CirSh ... _. ,.. �,:�d3 i:2d�� GC!'i�iBiB� iR CG?7pb8R�e vb'�iR ii1lS Hpf2BR12f1f. 'vY+'liL'I SfrBd C3uSB 8�tiOiiCi: . � ,.,,�; . ,. r... ., �: ,.",�:� thC .,. _ ... .. : . .�.� ., _..._... ,......��.'�� 3..0 � :'�.. .:.. .. . .. , .,..__ ..,:..•,,,� ;av/ uay'� iriBicaiici. ov�vi'r i urdi rer�ire�+u i� �naur. vur�e�ut,iur �ue�s� �u,.,Nra .v���r dn rciwr�e�reiii5 ui ilir5 ityf6titii�rfli, x��ruuuru w�uivui i�nirtairOri Iti� 'verierai i.:vriweev: •o. ►N.5(IRAN�� .... . , ti�...l: � i�7::' i`�...:n. �i.rs.3:.�.... $.";.9, . .:� .�,a C:..._..:.•9 � :.......- : �. �..':.. .. - . . ,.'�i- . . -.; - � -- rir� Orvc�au0ii5, +i� i,viKrfn;ftir� Wti/i itre rrOrR, rrdtt �d�t�etS �c:�e�idUiC Ev vw�iC�, rireCirrnt t��e c�er�erai i�i{wi�ilit��i�i �ci iulTii iii uic Vciit(pi ylj/�VKIVf�J �M1� fJfVYfCfI%f� IUI UIC IVf}t)117/f4( M/IHJ. r.i,invti wi:;rvci.�6iitr�� a;,v erf;;pyor� ��a:hrity f�,surei�i.e ot rrc.c �css i��e�,. ;r:►v�.vvv cbi.ii dtii,rt7�fii iGt �7tiV if7ur'r uy dLLK3tf�i, iUUv.tiv'v pi�ewy' i�i�i fOf uCnirry iiiJviY uv Gw5re5e. 5500, OGP each em.p?oyee for bedrly in1u.ry by drsease. Commercia! Genere! Liability of not less tha»: .�..,�..�,.� 3 �.,,..�M..,... aue.x� a+axw�r 10/25/2006 18:30 19494978053 Ah£RICAN INVESTMENT PAGE 04 $1,000,000 oach oCCumence (Combined single limit for bodily i�jury and properfy damage; a1,000,000 !or persona! advertisrng in/ury liability; �i,000,00Q aggregate forproduds-oompleted operations; 51.000.000 general aggreqate. Automobife Liability of nof l�ss than: a1,000,OQ0 Combined single limit each accidenf for bodrly r�jury and property damage. Excess Coverage of not Jess than: 51,000,000 each occurnence: $ t, 000, 000 ge►terai agg�egare. Contractor sh�U provide a Wenrer of Subrogation endorsemenf under his Woricer'S Cort�pensation ins�rance thai contains the fblbwi»g w�orcling�: 'We have the right to recover o�r pay+mer►ts from anyone llabre l�r an Injury covered �n thls polfcy. We wlJl not enior�e ow ri�Ms against the persor+ a o�ior, narrred Detow (rhis aqreemenf ap�lies onJy to the extent fhat you perform work under wriften contr�Ct tf�At roqurres you t� obtain thrs agnterrkrrt lrom us).' The CQ1f'r/'rCit� oir»sWyMloo shelf provfde fo�the l�l�owing es addifiona� in5ureds • American L�vestr.rent/Palrns to Pines East, LLC, Aaec J_ Glasser, AJG Property, LP, fhe G/asser Family Trust, and/ �r all MemDers. Uirectors. Oi�cers, Owr�rs and Empbyees thereo! � 7�e L'escn�ti�n o� Woik� rr� the Cart�t;c�a:e of lnsurance s►�a11 be for ihe prclect &s aescnbed or. paae or�e (�) ot this A�eerr�ent eir►d shaq ov�erthe Sc�vAe orWork as prQvided in ihis agreemenr 8. MISCELLAN�'OLlS PROVISIONS. A. Govem�a Law. Fhis AQreemenf sha�t be goreme0 by ll�e le�ws of ihe St�e ot Cati�orn,e. B E�Ur� A4reemenl. 1h;s Aqreement suAersedes aN pnpr neqotratrons, praposals and i;f7Ce�5ta��d�."Iys, rf a�y, whether mitten or oral, Of UtB p8ft!@S heleft7, a»d a�stih�tes the entr'ne undcrsfAndinq ot the Aarfies wdh refere»ce t� the Wark. Th�; A�rBemenf may be amen�eQ only bv a Change Orper rssued pu�su�nt to Article 5 0l tha GerrPra� Conditions or � �vritrng signeC by bcttr partie�. �.%. ��SSQCS aQ� pss�s. Uwner and �ontracier eacn brnds ilsefr !ts s��ccessors. assrans and legal r�eAr�ser►tAt;ves to �he other paR�+ Irereio and to the auccessors, ass�gns and lega! �?r,rdsentativ�.s nf such, nther na�fy in re�nnr,t tn al1 r,nvenant.5 aryre�mP�l.� �n.-i nhfr^.a+�nn.s c�etai�ad ir the G�r.fract J�C�_ment; Thr; Agreement may be ass+grred by �wner �nclud�nq an ass�qnmeni to anv lender(sl nrovld�na financin� fcr fhe J�roiecf V'Jork /as r�afined ir, thA C�anF+ra� C;nr,d�irc�ns� Fh� c:cntractor sha(f not assign the Agreeme�i or any pafion t�:ereof wrf,ho;ft the prior wr:tten cor,se�! :,; ,� r:•;,+ -_i';� /p�jY (�.L.:� er3!! »�` 3i!3i,i ir'e R�ht Of {.'b�;tl2CtOrtd SuOCont�dC! Dcirli��n� d! the �i�O�k. . ....• ._, = i :: �:: c".? ii8::.;i, <'.i..^.;i �� �;0.'7Strued io pron�b." C;O: ii('e1CiOf : ass�g�mern ^; i11S :':7�?t t0 ,'L=C21L'e . .. . . .. ,..,.. . ?�: .`�'�+.... -•�r.; ;r-;:r.;.., ��...,,,.,.r.. �-..�� �.-,,.,.,.,�.., �....r. � - - ":•:.,^-. .....'�r` ";r,��ril i� uufeuir•ci arrd Il:at i)tvrler sltdti riot ue iiabie io ine as; rqrr�e r�r p�y�:�n; uni::.s . � r, r,i .. �C." 33�....1.^,t,_ ,. .t�';, �,. :Y„� 7_7 F_�.. �1:._ �j L'3. . .. �; i1.F .�^c!_. �'F' . . .. . "? ... . ....,_ 7G�'Eiili6f w��17 t"EBSOfi&C�Id GfOpl it18i Ui6 2SSrQ�1lT�ni t�bs �!"� irlaCiB_ iti yUC�I @vc'r�f. d►}Y fMylY�tvrt !c: th9 �sSig�e9 s�af! be by jornf check to include a�i ConlrBCtOrs SubMnt!'�CtOYs and their r�SpsCt�vs � ar�w M a�" 4 oe�,�,,, �ro� 10i2512006 18:30 19494978053 AMERICAN IMIESTMENT PACE 05 Mecl�anics (as deBned in the Genera! Conditions). a. Sevetabl�Itv. If any one or more o/ the provfsions conialned in th(s Agreemeni or the applicatr'on fhereo! to any persons or cirGumsfances, shall lor any r�sasorr be held to be invalid, iNegal or unenforceable rr� any respect, such invalidily, ilfegal�iy or unenlorceability sha!! not affecf any ofhe� provrsrons of this AQasemen! or rts spplicatron to persons or cr'rcumstarrces other than tt�ase as to which rt was invalid, illega! or unenlor�eabfe, bui fhis Ag�ement shap be construed as if such invaHd, illega! or unenforceable provision had never been conta�ned her�in. E. g�medies C�� um laGve. AR righfs and remedieS ol the penres her+eto are cumulative and in addibon to those existing at law or in equity, and the exencfse of any one or mere thereof by either party l�ereto sha!! not be construed to constitute a wsivier of eny ofhers; and the waiver by either party hereio of any breach or default vr� the pari o! the ofher party herefo shal! not be constrx�ed fo constitute a weiver of any other breach or de(ault. F. Attornevs' Fees. lf the pa�ties becor�e involved irr litigation or arbrtratron wrth eac� ofher arising' ouf i�i9 Agteemetft or other perfotm8»Ce thereof in which ihe services of sn atfomey or oiher expe�t are reasonably required, ihe prevailirtg party sheA be fu!!y compenseted fot the cost of its part�cfpafFott irt strch ptbceedings, inGuding the cost incurred for attomeys' fees and experts' fees. Unless/udgment goes by defautt, the atfomeys' fee award shall not be computed fn accomtence wtth any cou�'f schedule, but shaH be such as to fu1Jy reimburse aN attomeys' fees aduaNy incurred rn goal farth, regar+dless of the size of a judgment, ri being the intention of the part�es to be fufly compensated lor a!! atiomeys' f�es and experts' fees pafd or incurred in Qood faith. 0. Sech'on Headinas. The headrngs of fhe severaJ Articles and Sections of this Apr�ement a� inserted solely for conveMence of referunce and they are not a part of an sre noi intended to gov�em, fimrt or eid in �he constrvction af eny temr or prpvision heneot. H. Relationshi� of Parties, Neither ihis Agreement nor eny of the other Cohtroct pocLments sha!! be construed as c�eafing a genera/ sg�ncy or partnership betw�sen ihe pa�es, and Owirer and Co»trgctor shsl! hav�e no avthority, express or impJieQ, !o bind eacli other, except as speGfically p�nviried he�in. Contlacf�w en0 Owrfe� do, howevet, agr�e to cooperaie wifh each oiher to fac�7itate the fimely and economica! completion of ihe Woric in accornfanca wifh �he terms of the Contract Documenis. f. Subordinati�n. Cvntractor dces hereby suboldinate arty and a!! liens or lien claims whrch iY may now or at any Gme AsroaRer have tr� secure paymerrt oI any sums now or heneaRer owing by Owner to Corrt�ador under the tem�s 1�ereot fo the Nen or tiens given or creat�ed to seaue fhe repayment of arty eorutnrctron loett o►losns nrede to the Owner in t�onnectiorr w�tJt bh�e Praqect Work. Contr�actor shaN execute prompfly upon requesf such other or fetrther agreements evfdencing such subwdination frr surh form as �»y such len�dsr ar ler�ders shal! require. Wothing contained in this Section shaH be constn�ed to impair the lier� rigMs thaf Co�ttector wnukl othsn�ise have. J. fdo�t'cgs,. At! notices, requests, and demands of any kind which either party her�to may be requlred or aesir�s to serve upm the oiher psvty he�eto sh�ll be in writi»q arrd shal/ be served upon such other party by peraaia! se�vice or by maiting a copy thereof by certi�od mai1, ,00stage prepa;�, with r�fum receipt n9qtre�6ed, 6ddressed to the 8dd�ss of such party set lorth in this Agreemeni c�r �� tscs�m�le provtded answerback corrfirmation ofthe entire nofice �s received and notrce is thereafier =or!r!me� by registeied or cerfifred ma�7marked FreviouslyDelivered byFacsimile". orby a rep►dable overn�ght courrer servke, fn ctf.se of serviCe t+y maiJ. service shal! be desmed compte!e on the O�v pt �tus! dekv�ry ss Sh�owrt by ftre addressee's registered or certified msit r9cei�t a st the 0xpiratron nr tnp tnrrd bus�ness day after ihe date o� marii»�, whiChevEr firsf occu�. !n case oi sen�ice bv ��csrr, �r+e. unon re.;e�pt at the facsunire number as eviaenced by fhs answar ha^k machan�sm of iha tacsimife machlne, anr! rn tr�e case o/ delniery bv co�,riPr �hr. ri�y rlPhvPra�i a.� P��rr.Pnr.P:-! n�- tnr counBr's delivery �eoeipt_ The eQd�sses to which and tne person.a tn whom nofi�Ps AnU dem2ndS sha11 be delivu�ed or senf may be chartged from t,me io trme by notr'ce served as hereinabove providet! by either party upon fhe other p�trty. �!/,,� �% .�.�eN �n,.�.� $ e� �.A.�.M awer. w uoe c..w_ � ei.r � 10/25/2006 18:30 19494978953 AhERICAN IMIESTMENT PAGE 08 K Access te R�cotrts. Ownarshalf bs aff�onded access fo a!! of the Confrscio�s recorcls, books, corres,vondence, instructbne, drawings, r+ecelpts, vouchers, memoranda and similar data r�eJating to the Work durrlT� rtlasonabls Dusiness hours, an0 Cantractor shaN pre�serve al! such reoords for e period olllve (S) years sRet completion vl the Worrc. M. lntero�efatlon. 8oth 4wn9r 8Rd Cont�eCtor have, with the assfst�nce of therr respective oounsel, �Ctivsly �aqofle►tsd ths fsrms �rtd provisrons contained i� the Contrsct Documents. Thero/one, Owner and Contractor walve fhe ef�ct of Califomi� Civi1 Code §?854 which interpnts uncerfalnties in s cor►tl�Ct eg�►in.s! the ps►ty who dmtisd the oontract. N. SdDule ed In erosf Rt�te. WheneVe� Contract�otis obfiyated to �ay Ownsrany sums pursuant to this Agrest»e»t, tt� outsta»ding balance owing pwnersh&IJ be�r inleros! af the Stipulated Mtemst Rate (as deArred h► the Genera! Condiiti�ons) irom fl►e date due untif pard. O. Survlvel of Rights. Ar►y ir►demn/ty, werranty or guaranty gr'ven by Coniracior in the Contract Documents shalJ survlve the expiratlon or fermr'nation of ihis A�reement arrd shaN be b�izdinp upon Confractor unNlfhe later p/(1) ��yection fhereunderis bsmed bysny appliceble statute oilimit�tiorrs, or (2) sUch dste sIs a»y cfefm oractlon /or which indemnifice�tion mey be claimed is fully and frna�ly �soNed, and, �f applicab�e, any cort�prorr�isa ther�eof or judgmerrt or award therain i9 paid rn full by Cvntrac7or and Owner or any other indemnified parfy 1s reimbutsed for any amaunts paid in comprornise thensby or upon a judgment or �ward thereon and Jn detsnsv of such acf;on or c/atm, rnGuding acfusl aftomeys' fees. Peyment shal! nof be a canditfon prececlent to the en}i�roemen! ol any oI the indemnity provlsfons in the Contiact Documerrts. CON7RACTORS ARE' REQUlRED BY LAW TO 8E LICENSED AND REGLILATED BY THE CONTRACTORS'STATELlCENSE60ARD WHJCN HAS JURlSDJCTlQN TO fNVE57lGATEG'OMPLAl/VT5 AGAINST CON7'R,4CTORS !FA COMPIAJNT 1S FJLED WfTNfN THREF YEARS �F THE QArE OF THE ALLEGED V10L.4TION, AIVY QUES77�NS COIVCERNING A C4NTRACTOR MAYBEREFERRED TO TNE REGIStRAR, CONTRACTOR'SSTATELICENSEB0,4RD, P. O. BpX28000, SACRAMFlYTO, C�LfFORNlA 93826. !fV WITfVPSS WHEREpF, Ownsr and Confractor have executed this Agtaement thfs � 5ih day ot December, 1988. O WlVER: CONTRACTOR: Amencan lmestmerrt/ Palr}� to Plnes Eeat , tLC Wirt Sheqmen ay: 8y: �rrrt sner,nran �Mi0D6 V � C1 R�ba07 10/25/2006 18:30 19494978053 ANERICAN INVESTMENT PAGE 06 �xx�Blr a THE CONTRAC'T DOCUMFNTS A- 9: General Condrtions- ettached herefo; A-2: Plans and Spec/Rct�#ions- attached hereto; A-3: Job Manual- None; A-4: Safety Manua!- None; and A-5: lnstrucfions to 8idders- None. . �� 10/25/2006 18:30 19494978053 ANERICAN INVESTh�NT PAGE 07 EXNIBI F "8" SCH�DULE pF VALUFS See Attached �� /' ,�., �».�„� g �� �.�. OCIaOo/ D4 2PD0 OQIfL R YYb 3 Od 25 06 11:08p p.4 10/2BI2066 65:51 Fib 0a� 1012�/2BBo ]8:38 19494979953 FU�E}?ICAN II�fVE'S71tlE2�T PR1t£ 9 K, ,4�s m tt�. Ow++.r�Aalf c� ad►orotedac�ass ro as af ttr ctootr�stor's r+eooN�, Docates. carrcwsvc►nde�rce. �rnbvdioas. dra+�i+gs, ieoQ4vla. � mer�o�� and�ohzrerd�s rebtbe co th� Wbrlt dulfrp rbilOr�BO�/ bu�v��ss froura. sd aar�ba�r sha� prmasrr� 01 su� n�ooNs RY a va+ad of�ve (� y� dl�r SvrnPlutJon d A�e Nbrk. M. Mrirror�ta.l�bn• 8oth Ar+*or enQ Cor�r bwe. rr�ri fAe �sa,trtanx dfffetr� rs�cOre ov�mef, sc6+�fy �po6easd fit teatss eAd p+ovfsia�a m�Isin�d in the C�ad Co�ta�v�fa. T�torrfofti� �«'and (.brrtrxivr Maiw dro ellbd d Cai7omia Gv� C�cls ��eb4 wtlk/r �irflap/eJs t,..�. �,;. i,�:',s io o�vnhsd s�i►►sf Sfs FIr�Y �l+� dra�rd ff+� �ci►�'ack fV yS�l�e�tibd, �o81I�aL�dtopayA��s'�'sto�'apur�r� �o �ss �k �h� aoL�ba�n�w�wrD Qa►�.r•lMbeorlhnelsstdYt� SS�J�tod Mlaast R�ie %� d�ind aft oIe Ge4esi Car�iwi6i frort► tho �te due �y�d. O. S�+r�►e�l dl�g�. A1ry i�rv�My, w�r��dyuarart�fi�'�► 4!' O. ��.�' U�e A�nbatt i7ixrynelf�ls sRa�tawYirt tJ� /aP�+�+ or iertr+k�aio� dfJsi�Apf�ems+�t wid stssit D� b�dr�F 4a� Conlractorwi07ll� b0�rd(1) a»yac[iat d�e�sundrir bsrred br a�nye�Pp�csbb at'�!e vlko�isAc�r�s, or (2,y such �ts u se�. c�o oradbn Jbr �+I�icb A�rn+Miic�Bo+� ►naY 0� tl�madia fir/y and RnaUY ►ssti�AYd. snd, ��"�'� �^Y �a� �%����'� o► srs►d Uwer�etrr !s pa�d in fuli br carmsctvr and o*a�er ar �j► �r � �,'t, ,, i i: �� p.�ty �+wio�ocns�o 1br ar�► aeiour,ts p�id i►� ...,.., � �. � i� tl+�wr.�y er i�.p/oA a�Up�j'po�t o�r yaw�{a0 tA�er�rx► �s �rr � d st��alwr ac�wt or dtaevti :wI^�r/bi'� ��'�J�/d �% I" �� �^� �� i i�ii%� � � : y 7� i I I� P� F I � � F i .. � ....,...�.,� an�r o/ths tneernr+l� provi�rbr�r b 01�+ Gbnfiscr poarr»en� CONTR'AC710�RS J11�E R��� BY LAW TD BF L� h1� R�Gl1L�TED 8Y 'iHE COKlRAC7D�R,9STA7EL1G8�BQR1� Wi�IHASJl1�D�CTi�0�V7a/NVE�'i�'aATF[�IPCI!{KT� A GAM1fST COINTRAC70RS /F A�J1INT /S FTi.E� WIIMN Ti�fiE� �v4R5 OF 7F� QA7E OF TFiF AllEb�D �JOLATlON,A/�YQ1JE5'RQNSCQNC�R.RAItri:� It C4M1?ACi'CR 1rtAY �RfFFRREB TD T}�1� REG1S'P.�, Ca►►'�R/1C'R7R'�STATELlCFJ�r6E�o�C v_ o. e0�vo, S�CR�Ti7� cr4UFar;nn� 93� I!�! Wf TI+fESS WFfEKEOF, OMms►ariC ��r have arectdird Ut+•t AaFl9�merrf fi�s l Sfh d� of Do oamtor, 1lA� OWNER: COMiiI�CTI�R: Mr.ric■n rnm�ne►nr ro Plfnss E�t , ctc wirt sn�Aruse a d� y n ay: v 8y' YYFrf 5�1eMrssar� � +,� 6 �a.�a-cwww�r�r Od 25 06 11:07p P�3 SHELLMAN CONSTRUCTI4N INC. l:ode �1-02U 1-040 1-060 1-t00 1-350 '1 �00 i� 1-626 1-640 1�'i8D 1-690 1-700 '1-710 1-740 1-720 1-800 1-860 1-8T0 1-880 1-890 1-895 �_� 1-9A0 1-000 z-mo 2-2IX1 2-300 z-�ioo s�so 3-100 3-110 4-020 5-100 5-010 s-o2o � �-zoo 7-300 7�00 8-020 8-Ol'I 8�8D 9-25U 9�500 s-soo saoo &600 1p-155 ia�sa taszo 16-031 15�50 15-500 16-020 Uesctippon Superveion Pro;ect Mansger TrucJc E�. Frgt�ip. Ront. Ciy LicJ pertnil �Aisc. d Cont Schedute Temp. Sqn Temp. Todet Temp. OfGce Ovefi'd Plans TemD- Pfia�es Temp. Fax 7emp. Eled TemP. Wetet Temp. Fence Gen C1ean UP OumDsters Fnish Cban 6osion Contol Soi6 Testirt� S+uveY wsrtsntXE�ense SU�TOTAL Ga�era� canditions G.anascsue C�s'ad1�9 Oust Corkrol Oenw PdVlll� �� Concr+�e Sidewalts AAasorxY §teel Framinp ca�.x�s � t�s�raacn TopsetBase Roofin� Doors d� ►iardware Impact i)oors YIRrxloWa tkY�1 r� ��n a P� f� Pa�ner�p To�et Pauta ��� Fie Ex. Plumb� Air c�� waler Sprinkkrs FNAC E�ect �SUB-TOTAL BONfl 1 NSURANCE ov�x�n�aoFn- TO7AL Palm Desert Building 5 l.abor -1�1at. 'tquip. �OA00 10,400 By Owner 8y Owner By Ownar 3.298 By Ow�er s 53,298 s - s - 53�98 0 8�6 'Sub 'Gen. "'iotals S 40.On0 3 10.000 S - S - S - S - 3 - 3 - 500 S 500 2000 S 2.000 400 t 400 1,500 S 1,500 t - � " S - 1.800 s 1.800 i 3.298 3,20Q f 3,200 i - i - i - S - t - S 4.700 S 4.700 i 82�69fl s ss.s9e i - i - _ - 42,5Q0 f 42,500 S - s - 32,T�0 S 32.71Q 13.600 S 13.600 0 S - 27.450 0 S 27,450 83,195 S 83.195 s - s - - s.eoo s s,eoo � ' 65,000 S 65.000 S - S - S - 18.600 S 18,600 S - 56.000 S 58.000 s - ss.3oo s �.300 S - S - s - 5.000 S 5,000 S - a - s - S - 3,500 S 3.500 68,000 S 68,000 0 452.355 4J00 S 510,353 s - <0.828 s 55t,lBt Od 25 06 11:07p p � ! A Ks � G � �� � v � � ' � = x ' Z M M l'c:'�: � C � � � 3 a � � O � � � A �v 3 � � � � � � � � n 3 3 i��d �p � � a I o a I � ,'. ' � . .. p.2 m� vl w ca: ♦� w� wi � o . . � _-_ '— __.. __ " . � - ._' __ - � � � �., • � � � m T n �•'� � •� � � � a o S �;: � � 3 � � � � w'A � � " g s x � . i � , 0 I N �.t � � �O � O� W (7� O O 1r tl+ 4 r � � 7 n a � n � m ' � � a � � � � ; �o V N � �I i ' W � � N� i w. + (V,�� O; I•.::r' N'C3 -��--� !7 u 1 N O p j � V � i �a r � I �� N � � -y^ u i ..�i'1� �N I �ON � . .tl ` N � I U NI . . d O I � � V ..'I �' j.;:.� �' w� :�:..� �� �-�-' - :� ::: i � D a .� _ ; � I � r;� " �N r:.. OO I: " v :. � 'L—T � �' � o, i m i � ►J N N m W �_ ui w� Qn � 3 b g I .:.::• j N 'O � p, O N' _'" _ - . - i � .� L I� � DE�f 11f,f v�83€a3{' : Z!'R Wf1�1Rg tC� sti:rc !"Y :X15��:Oft tFy�:;.=�iJir� t"r) I$�.IfS!1R18nt Uf �tP. bi.c!��If14 and ;!s �`ter,t t;n my i ��3r►� ��'r�l:Jci'. � t���$ SFN3rEi � tTlGilih5, a!� ��r«�ai , a�at �f ����•�e�y remo�eliinr� th� �3�re �yv ;E:;�s^t� �s c�sl� 9 mon�hs. as ( dosa at ihP Q;i7 uf hA�,. for 4 r7Ur�s�;s ?h� !n�;�„7:� c�i m; c1�Rnt5 are only h��e ivr tne �:aSo�+. tt �Na�k st8�t�s befQt�e in�+. tuT,e, tt wu��ct �r fatal tQ n�y bu�snPc� anq � dor�'t kn�w ,` !;,^c:41�i suriv�r fir�;fn ,r,i<,fi1ly �'��•.;i ! -�t}ly �, ��r�R� t���n^e� < Z��S�'SIbCL PASEO, . ��q�� ������ ` t {�....:L�G:' .._.. .C't7rJ'J A��i Fi�%Qll$�i�L$�.u1�4�f)NE 760.341.4988 � Dear Mr. Glasser, I understand that you want to begin the fa�ade improvement project in these coming weeks. If this is the case, there is no way that I will be able to pay you rent. The parking lot restoration has been such an inconvenience for my customers for the last three months! And now with a proposed project of this magnitude, there will be no way that I will be able to keep my doors open during the beginning, if not all season. Something like this will hurt if not kill, anyone's business. This is why I will greatly appreciate if you could wait to do the fa�ade improvement until next summer. Sincerely, .�' -� � �i�'���1' GUII,LERMO D. AVALOS October 2, 2006 The City Of Palm Desert 73-530 Fred VVarring Drivc Palm Desert, Ca. 92260 Re: The redevelopment of The Palms to Pines Shopping center: 42-820 EI Paseo, Please allow the Facade redevelopment to be put off and not started Before the end of June 2007. The redevelopment of this will impact Our business. The parking lot was taken out the 1'` week of July, 2006 And is still not yet in as of now. October 2006. We The Back Street Bistro Have had to be closed as of the 2"d week in July do to this construction and Still remains closed due to the construction. This has been an exhausting summer. We hope to re open as soon as The parking lot is completed. Thank You, ��'�`-� � LaVane Hause The Back Street Bistro