HomeMy WebLinkAbout _ 4.2(c)--Amend Development Agreements (C-9068 and C-9406) GI �" Y � F
� � � ° � � � " � � CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: June 20,2023 FROM: Steve Bade, Assistant City
ITEM NO. 4.2(c) Manager
***APPROVED BY***
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t�ue a e; ss � �r Gfl�l'�023 ry ip}�in,Ci ana � 6,�13/2423
sbade@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.2(c)--Amend Development Agreements (C-9068 and C-9406) between
Resources for Rural Communit Development, Inc. and the City of Reddin .
Recommendation
Authorize the following regarding the Development Agreements between Resources for Rural
Community Development, Inc., dba Accessl�ome (AccessHome) and the City of Redding (City)
for the construction of income-qualifying Park Host housing units:
(1) Approve and authorize a First Amendment to Development Agreement (C-9068) thereby
increasing the City's loan by $84,717 for the development of a park host home at
Enterprise Community Park (Enterprise Host Home Project);
(2) Approve and authorize a First Amendment to Development Agreement (C-9406) thereby
increasing the City's loan by $83,311 for the development of a park host home at John
Reginato River Access Park(Reginato Host Home Project);
(3) Approve and authorize the City Manager, or designee, to execute each Amendment to the
Development Agreements, and the associated security documents necessary to complete
each transaction;
(4) Find the project is categorically exempt from the California Environmental Quality Act
pursuant to Section 15332; and
(5) Find that the National Environmental Policy Act (NEPA)review shows that the project is
categorically excluded and not subject to part 58.5 pursuant to Title 24 CFR 58.35(b)(7).
Fiscal Impact
The Enterprise and Reginato Host Home Projects (Projects) were funded with loans from
Housing Division's grant resources that include: HOME Investment Partnership Funds (I�OME)
and Affordable Housing Loan Funds (AHLF) and Park in-lieu funds. The requested loan
increases will be secured by corresponding deeds of trust and promissory notes with the City as
beneficiary. The increased loan amounts will not affect the General Fund.
Report to Redding City Council June 14,2023
Re: 4.2(c)--Amend DevelopmentAgreements(C-9068 and C-9406) Page 2
Alter�native Actzon
The City Council (Council) could choose to decline the Amendments and the subsequent loan
increases and provide alternative direction to staff. Without additional Housing Division grant
funds, the Park Host Homes will have a gap in financing and the homes may not be completed.
Background
In September 2021, Council approved the Development Agreements (DAs) for each project that
includes the construction of a 3-D printed, single-family home to serve as a park-host home.
AccessHome, as the City's current Community Housing Development Organization (CHDO), is
facilitating the construction of the Projects. Construction of the projects commenced in mid-May
2022. To date, the projects are approximately 80 percent complete. Staff anticipates that the
projects will be completed and leased by August 2023.
Between the time the projects were approved for funding and the time construction commenced,
final budget figures increased due to higher construction costs. Due to the volatility of
construction costs and new methods of construction, staff anticipated that costs may increase.
Pursuant to each DA, a cost escalation provision provides that if an increase in cost is realized,
equating to 30 percent or less of the originally approved loan amount, the loan would be
increased accordingly. As such, the Enterprise Park project needs its loan increased by $84,717
for a new loan amount of$421,913 and the Reginato Project needs its loan increased by $83,311
for a new loan amount of$420,507. Each projects' corresponding loan security documents will
be revised accordingly.
Upon completion, AccessHome will make the units available to income-qualifying households
for 20-years. During the lease term, AccessHome will manage the units, including tenant
selection and management and maintain the property. At the end of the lease period, the projects
will revert to the City and the remaining balance of the loans wi11 be forgiven. During each loan
period,based on the residual receipts of each project, annualloan payments may be received.
Envir�onmental Review
Staff has completed the California Environmental Quality Act (CEQA) environmental analysis.
The project has been determined to be categorically exempt pursuant to Section 15332 (infill
development).
Staff has also completed the National Environmental Protection Act (NEPA) environmental
analysis. The project has been determined to be categorically excluded not subject to 58.5
statutes under Title 24 CFR 58.35(b)(7) as the City is providing supplemental assistance to a
project approved under a previous environmental review.
Council Priority/City Manager Goals
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
� Economic Deve�opment — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the eommunity."
Report to Redding City Council June 14,2023
Re: 4.2(c)--Amend DevelopmentAgreements(C-9068 and C-9406) Page 3
Attachments
3D Printer Homes Staff Report
^Amendments to the DA DOT HOME and NOTE - EP
^Amendments to the DA DOT and NOTE - RBR
C-9406 - Development Agreement - 2022 - Rescources for Rural Community Development, Inc.
dba AccessHome
C-9068 - Development Agreement - 2022 - Resources for Rura1 Community Development Inc.
dba AccessHome
:��� ,t'��� CITY OF REDDING
� � � �' REPORT TO THE CITY COUNCIL
MEETING DATE: September 7,2021 FROM: Steve Bade, Deputy City
ITEM NO. 9.2(b) Manager
***APPROVED BY***
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teve a e,� e r ��� 8l2'712021 �� ry �ippin,Ci����Vlana��e='�� 8/30/2021
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sbade@ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 92(b)--Consider Development Agreements for 3D Printer Construction of
income- ualif in housin units in the Cit of Reddin .
Recommendation
Authorize the following actions regarding the development of 3D Printed Construction of
income-qualifying housing units at Enterprise Community Park, the John Reginato River Access
Park, and 745 and 785 St. Marks Street:
(1) Approve and authorize the execution of a Development Agreement between the City of
Redding and :Resources for Rural Community Development, Inc., dba AccessHome
(AccessHome) providing a City Loan in an amount not-to-exceed $337,196 for the
development of a park host home at Enterprise Community:Park;
(2) Approve and authorize the execution of a Development Agreement between the City and
Access.Home providing a City Loan in an amount not-to-exceed $337,196 for the
development of a park host home at John Reginato River Access Park;
(3) Approve and authorize the execution of a Development Agreement between the City and
AccessHome providing a City Loan in an amount not-to-exceed $1,800,000 for the
development of up to six housing units at'745 and 785 St. Marks Street; and
(4) Approve and authorize the City Manager, or designee, to execute all necessary
documents as detailed within each Development Agreement, including the associated
Ground Leases, Park Host Agreements, and any other related documents necessary to
complete each transaction.
Fiscal Impact
The combined development loans for the projects total $2,474,392 which will be comprised of
funding from the Home Investment Partnerships (H01VIE) :Program, H01VIE American Rescue
Plan (HOME-ARP) funding, Affordable Housing Loan Fund (AHLF), Community Development
Block Grant (CDBG) Program, Permanent Local Housing Allocation (PLHA), and $200,000 of
Park In-Lieu proceeds.
■ In April 2021 the City of Redding (City) was awarded HOME-ARP funding in
the amount of $1,597,470. Utilizing a portion of these funds for the St. Marks
Report to Redding City Council August 30, 2021
Re: 9.2(b)--DevelopmentAgreements 3D Printer Construction Page 2
Project that will not negatively impact other projects.
■ The City currently has approximately $300,000 in its HOME Program
Community Housing Development Organization (CHDO) budget from a
combination of multi-year annual entitlement contract allocations.
■ The AHLF currently has $200,000 available to fund a portion of the John
Reginato River Access Park unit.
■ The CDBG Program has $300,000 available of Revolving Loan Funds for the St.
Marks Project that will not negatively impact other projects.
■ The PL.HA Program has $300,000 available for rental housing development that is
affordable to income eligible participants.
■ On March 3, 2020, the City Council approved Resolution 2020-024 to provide
$200,000 of Park In-Lieu funds for the completion of the Enterprise Community
Park and John Reginato River Access Park host units.
Alternative Action
The City Council (Council) could modify the Development Agreements, provide alternative
direction to staff, or approve the above with modifications. Modifications may require additional
negotiations with AccessHome and the development team which may cause delays in the
projects moving forward.
The Council could also choose to decline to approve the Development Agreements. Without
local funding commitments from the City, the Park Host Homes or the St. Marks Project would
not be constructed.
Background
In March 2021, the City was contacted by Don Ajamian Construction and Emergent 3D, LLC, to
introduce a partnership (DAC and Emergent 3D) and an innovative proposal utilizing 3D printer
technology to build income-qualifying housing units. DAC has been a general contractor in the
Redding area for more than 17 years. Emergent 3D is a partnership that includes Mathew Giles
as the owner/CEO, who is an architect and structural engineer. Over the last four months, they
have been working with the Building, Planning, and Housing Divisions as well as the
Community Services Department (Community Services) to complete the housing unit design,
financing, and feasibility for the development of residential units.
Construction costs have risen and are still on the rise — there is also a skilled-labor shortage and
materials such as lumber, steel, insulation, windows, appliances, and finish products are limited,
expensive, and hard to acquire. 3D printed concrete residential units are a sustainable, innovative
option that uses less labor and construction waste during the construction process. DAC and
Emergent 3D have spent time and resources researching and traveling both internationally and
nationally to fully understand the 3D printer technology industry. They selected Construction Of
Buildings On Demand(COBOD), an industry leader for its 3D printer equipment.
3D printed construction is a new technology to the United States with implementation in Texas,
Florida, Arizona, and California. The 3D printer builds the walls of a residential unit layer-by-
layer, using continuous ribbons of fresh concrete made from commercially available, standard
industry materials. The 3D printer incorporates two trowels to shape and form the top and side of
the layers as they are extruded by a nozzle to form the wall structure without the use of
formwork. Approximately 70 percent of the unit will be 3D printed and the remaining 30 percent
will be traditional construction methods — such as the foundation, trusses, roofing, electrical,
Report to Redding City Council August 30, 2021
Re: 9.2(b)--DevelopmentAgreements 3D Printer Construction Page 3
mechanical and plumbing. DAC and Emergent 3D have created a master plan design set for a
1200 square-foot, three-bedroom, two-bath, single family unit. The plans have been approved by
the Building Division and are more than likely one of the first on-site, single-family, 3D printed
plans approved in California.
AccessHome, is the City's HOME designated CHDO. Since 2003, AccessHome has partnered
with the City to acquire, rehabilitate or construct income-qualifying housing units. Access.Home
has performed well managing its assets, debt servicing its loans, and providing decent and safe
housing units to special needs clients.
Access.Home, DAC, and Emergent 3D have been collaborating with City staff to partner and
develop income-qualifying housing units in this competitive housing market. The resulting
collaboration is provided in three separate Development Agreements that include: two City park
hosts units and up to siY units that will be available to someone who is homeless, at-risk of
homelessness, or individuals fleeing domestic violence.
The specific 3D printed units' location, financial commitment, terms and conditions of each
project are as follows:
ENTERPRISE COMMUNITY PARK
Historically, due to misuse and vandalism within the park, the Community Services has used a
park host to perform tasks such as routine patrols, opening and closing park gates, observing and
reporting unusual activities, and posting park reservations. To provide a permanent park host
residential unit, a 5,000 square-feet portion of the 94-acre Enterprise Community Park will be
placed under a leasehold to serve as the project site that will include one, 1,200 square-feet,
three-bedroom, two-bath, single family unit complete with landscape and walkways that blend
into the park area.
The total cost of construction is $337,196 which will be secured by a ground lease for a 20-year
period of time. The City financing will be in the form of a residual receipts loan in an amount
not-to-exceed $337,196 at zero percent interest for a 20-year term. Repayment of the loan is
contingent upon the ability of the unit to generate residual receipts; that is, revenue in excess of
approved operating expenses. As part of the agreement, AccessHome will be required to set-
aside funds each month as replacement and maintenance reserves to ensure the unit is well-
maintained. At the end of the 20-year term, any principal and interest balance will be forgiven.
The City's loan will include an affordability covenant that will restrict the rent to income-
qualifying tenants at less than 80 percent of area median income (AMI).
JOHN REGINATO RIVER ACCESS PARK
Similar to the Enterprise Community Park, Community Services has partnered with a park host
to provide routine patrols, opening and closing park gates, and observing and reporting unusual
activities at the John Reginato River Access Park, a 6.1-acre area along the Sacramento River on
South Bonnyview Road. Community Services leases the site from the State of California and it
anticipates negotiating an amendment to its lease to secure the park host unit through a ground
lease. If an amendment is not attainable, then the financing and covenant restrictions would be
unsecured and documented through the Park Host Service Agreement.
Report to Redding City Council August 30, 2021
Re: 9.2(b)--DevelopmentAgreements 3D Printer Construction Page 4
To provide a permanent park host residential unit, approximately 5,000 square-feet, a portion of
the 6.1-acre park, will be placed under a leasehold to serve as the project site that will include
one, 1,200 square-feet, three-bedroom, two-bath, single family unit complete with landscape and
walkways that blend into the park area. The total cost of construction is $337,196 which will be
secured by a ground lease for a 20-year period of time. The City financing will be in the form of
a residual receipts loan in an amount not-to-exceed $337,196 at zero percent interest for a 20-
year term. At the end of the 20-year term, any principal and interest balance will be forgiven.
The City's loan will include an affordability covenant that will restrict the rent to income-
qualifying tenants at less than 80 percent of A.MI.
745 and 785 ST. MARKS STI2EET
During the Park Host Homes discussion, staff negotiated up to six additional affordable housing
units to be constructed at 745 and 785 St. Marks Street in Redding. The total cost of the
development is $1.8 million and includes: the refinancing of Access.Home's acquisition cost of
the parcels, predevelopment costs, needed infrastructure, and construction of the income-eligible
units. The City financing will be secured by a deed of trust and the loan will be in the form of a
residual receipts loan in an amount not-to-exceed $1.3 million at zero percent interest for a 20-
year term. At the end of the 20-year term, any principal and interest balance will be due and
payable to the City. The City's loan will include an affordability covenant that will restrict the
rent to income-qualifying tenants at less than 80 percent of A.MI.
If approved by the Council, DAC and Emergent 3D plan to order the COBOD 3D printer
equipment and anticipate the printer will arrive within the next five ta six manths. Once the
printer is received, the Enterprise Park host unit u�ill be the first constructed with the Reginato
River Aecess Park unit following. The St. Marks Stireet project will be designed over the next
few months wit1� construction following t1�e park host units. Overall, DAC and Emergent 3D
plan to partner with the City and develop 24 income-qualifying, 3D print�d housing units.
Following constructian of each unit, AccessHome will manage each parlc host unit and
own/operate t1�e St. Mark's units to ensure that each unit is available to and occupied by income-
qualifying tenants for the affordability period,
Staff b�lieves funding the projeets will increase the overall publie benefit by providing additianal
income-qualifying housing choices within the community, improving the safety and accessibility
af parklands, and introducing an innovative n�w method of constiruction t�chnology. Should the
projects be built according to t1�e anticipated timeline, the City of Redding will have built the
first an-site constructed, 3D printed home in California.
Council Prio�ity/City Manage� Goals
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
• Eeonomie Development — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the eommunity."
Report to Redding City Council August 30, 2021
Re: 9.2(b)--DevelopmentAgreements 3D Printer Construction Page 5
Attachments
Enterprise Park Host DA (available online)
John Reginato Access Park Host DA (available online)
St. Marks Project DA (available online)
3D Printing Techology(available online)
FIRST AMENDMENT TQ
DEVELOFMENT A�REEMENT, C-9068
The Development Agreement (the "DA") executed March 30, 2022 between the CITY
OF REDDING, a rnunicipal corporation and general law cit�, ("City") and RESQURCES FQR
RURAL CC}MMUNITY DEVELQPMENT, INC. dba ACCESSHOME, a Califarnia Nanprofit
Corporatron, ("AccessHome") is hereby amended pursuant to sectian 11.7 as follaws:
SECTIQN 3.1. is hereby arnended to read in its entirety as follows:
C�ty Assrstance; Citv Loan. In arder to effectuate the completion of the Praject on
the Property, the Gity shall provide praject financing to the Owner/Operator for the sale purpose
of assisting with construction costs ofthe Affordable Units within the Project(City Loan). The
C�ty Loan shall be in a total amount that shall nat exceed Four Hundred Twenty-Une
Thousancl Nine Hundred Thirteen and No1100 Dollars ($421,913).
All other terrns and candxtions af the Devela�ment Agreement executed on March 30,2Q22,
shaIl remain in fatl farce and effect. If there is a canflict between this arnendment and the
DA or any earlier amendment, the terms of this amendment will prevail.
[SIGNATURE PAGES T(7 F4LLQW]
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Page 1 of 2
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IN WITNESS WHEREQF, the City and� have executed this 33�'��~Amendment an the respective
dates set-forth below:
CITY�F REDDING
A rnunicipal corporation and general law city of
the`State of California
Date;
Barry Tippin, City Manager
ATTESTa AFPROVED AS TtJ F4RM`:
Barry E. DeWalt,City Attarney
�
�
Pamela Mize; City Clerk By: �� �� �� � ��
S�r`�"� "�° ° � ���
BC1 (?WER:
RESQURCES FOR RURA.L COIVIMUNITY
DEVELOPMENT, INC. dba ACCESSHOME, a
California nanprofit public benefit eorporatian
Date. �� �� __
�
By: Ba ara�White
Title: Interim Executive Director
Page 2 af 2
RECORDING REQUESTED BY:
City of Redding
CITY BUSINESS—NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
City of Redding—Housing
7'77 Cypress Avenue
Redding, CA 96001
(Space Above This Line For Recorder's Use)
AMENDMENT TO DEED OF TRUST, PROMISSORY NOTE AND HOME
AGREEMENT
THIS AMENDMENT TO DEED OF TRUST,NOTE AND HOME AGREEMENT (the
"Amendment") is entered into as of June , 2023, by and between RESOURCES FOR
RURAL COMMt1NITY DEVELOPMENT, INC. dba ACCESSHOME, a California Nonprofit
Public Benefit Corporation("Borrower"), and the CITY OF REDDING, a municipal
corporation and general law city("City") with reference to the following facts:
RECITALS
A. WHERAS, the City and Borrower entered into that certain Development
Agreement executed March 30,2022 (the"DA")and Borrower executed a Promissory Note,dated
May 25, 2022, in favor of the City (the "Note") to evidence the City Loan, which is secured by a
City of Redding Leasehold Deed of Trust and Assignment of Rents (the "Deed of Trust"), dated
May 25, 2022, executed by Borrower in favor of the City and recorded on August 30, 2022 as
Instrument No. 2022-0026564 in the Official Records of Shasta County, and a HOME Program
Funded Rental Project Agreement (the "HOME Agreement"}, dated May 25, 2022, and recorded
on August 30, 2022 as instrument No. 2022-0026563 in the Official Records of Shasta County;
and
B. WHEREAS, the City desires to increase the Borrower's Loan by $84,717 as set
forth in that certain FIRST AMENDMENT TO DEVELOPMENT AGREEMENT, C-9068,
between Borrower and the City executed as of June , 2023; and
D. WHEREAS, the City and the Borrower desire to amend the Note, Deed of Trust,
and HOME Agreement as set forth herein to reflect the increased Loan amount.
NOW, THEREFORE, with reference to the foregoing Recitals and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
mutually agree as follows:
First Amendment to Note and Deed of Trust
1. Amendments.
(a) The principal amount of the Note is hereby increased to Four Hundred
Twenty-One Thousand Nine Hundred Thirteen and No/100 Dollars ($421,913).
{b) All references in the Note, Deed of Trust, and HOME Agreement
documents in the amount of$337,196 are hereby revised to be references to the loan in the amount
of$421,913.
2. Governin Law. The Agreement shall be interpreted under and be governed by the
laws of the State of California.
3. Counterparts. This Amendment may be executed in counterparts by the parties
hereto, each of which shall be deemed to be an original, and all such counterparts shall constitute
but one and the same instrument.
4. Full Force and Effect. Except as amended hereby, the Loan Documents remain in
full force and effect.
5. The date of this Amendment to Deed of Trust and Promissory Note shall be the
date that the City executes the same.
[SIGNATURE PAGES FOLLOW]
2
First Amendment to Note and Deed of Trust
IN WITNESS WHEREOF, the parties hawe executed this Agreement as of the date first
written above.
BU IJWER:
RESQURCES FtJR RURAL COMMUNITY
DEVELC7PMENT,INC.dbaACCESSHOME, a
California nonprofit public benefit corporation
r � � �
y: arbara White
Title: Tnterim Executive Directar
CITYs
CITY QF REDDING, a municipal cozporation
By;
Barry Tippin, City Manager
APPROVED AS TQ FQ .
�y. � � �
Barry E. DeWalt, City Attorn�y
ATTEST:
By:
Pamela Mize,City Clerk
The signatures of the Borrower and City must be Notarized.
3
First Amendment to Note and Deed of Trvst
AGK LE G E T
A notary public ar other officer completing this
certificate verifiies only the identity of the individual
whc�signed the document to which this certificate is
attached, and nat the truthfulness, accuracy, or
validit of that document.
State of California
Gounfiy of �Masta �
Q� Aprif 21, 2Q23 before me, Kristen K. McGee, Notary Public
(insert name and title of the afficer)
personally appeared Barbara White
who praved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscrib�d to the within instrument and aeknowledged to me that helshe/they executed the same in
hisfherltheir authorized capacity(ies}, and that by his/her/their signatur�(s}on th� instrument the
person(s), or the enti#y upon b�half af which the person(s} acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State af Galifarnia that the foregaing
paragraph is true and Garrect.
� � � , � � � �. .,
� ;,oFr
4�-.,— ..., KRISTEN K.MCGEE
WITNESS my hand and official seal. ,� '~=, Not�ry P�ai,�-cai;ro��;a �
_ '� - = Shasta County' >
a % ' �° 'si0n m 240933b +
�,�'�Foa*`'�M�m.E�cpires Jun 28,202fi
ommis
"' ��o�
SignatUr� (Seal)
FIRST AMENDMENT TO
DEVELOFMENT AGREEMENT, C-9406
The Develapment Agreement (the "DA"} executed June 17, 2022 between the CITY QF
REDDING, a municipal corporation and general Iaw city, ("City") and RESOUFF�CES FOR
RURAL COMMUNITY DEVELOPMENT, ING. dba ACCESSHOM]E, a California Nonprofit
Corporation, ("AccessHome") is hereby amended pursuant to section 11.7 as follaws.
SECTION 3.1. is hereby amended to read in its entirety as follows;
City Assistance; City Laan. In order to effectuate the completi�n of th�Praject an
the Froperty, the City shall provide praject financing ta the Qwner/Operator for the sole purpose
of assisting with construction costs of the Affordable Units within the Project(City Loa�}. The
City Loan shall be in a total amount that shall not exceed Four Hnndred Twenty Thousand
Five Hunclred �even and No/1Q4 I}allars ($42Q,507}.The City Loan inciudes Park In-Lieu fees
of$2Q0,000 from the Community Services Department.
All other terms and conditions of the Development Agreement executed an June 17, 2022,
shall remain in full force and effect. If there is a conflict between this amendment and the
DA or any earlier amendment, the terms af this amendment will prevail.
[sIGNaTVu�pAGEs Fol.,l.,ow)
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Page i of 2
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IN WITNESS WHEREQF; the City and.E��' have executed this� Amendment an the respective
dates set fartl�below;
CITY OF REDDING
A municipal corporation and general law city of
the State of Calafornia
Date�
Barry Tippin, City Manager
ATTEST: APPRQVED AS TO F�RM:
Barry E. DeWalt, City Attorney
�
PAMELA MIZE, CITY CLERK By: ,���f�.,��;� � � ����/�
�S i� "�
BORROWER:
RES{�URCES FOR RURAL COMMUNITY
DEVELQPMENT;INC. dba ACCESSHOME, a
California nonpra�t public benefit corporatian
Date< ��� ��� - .,�
�a ����..
By: arbara White
Tit1e: Interim Executive Director
Page 2 of 2
RECORDING REQUESTED BY:
City of Redding
CITY BUSINESS—NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
City of Redding—Housing
777 Cypress Avenue
Redding, CA 96001
(Space Above This Line For Recorder's Use)
AMENDMENT TO DEED OF TRUST and PROMISSORY NOTE
THIS AMENDMENT TO DEED OF TRUST,NOTE AND HOME AGREEMENT (the
"Amendment") is entered into as of June , 2023, by and between RESOURCES FOR
RURAL COMMIJNITY DEVELOPMENT, INC. dba ACCESSHOME, a California Nonprofit
Public Benefit Corporation("Borrower"), and the CITY OF REDDING, a municipal
corporation and general law city("City") with reference to the following facts:
RECITALS
A. WHERAS, the City and Borrower entered into that certain Development
Agreement executed March 30, 2022 ("DA") and Borrower executed a Promissory Note, dated
May 25, 2022, in favor of the City (the "Note") to evidence the City Loan, which is secured by a
City of Redding Leasehold Deed of Trust and Assignment of Rents (the "Deed of Trust"), dated
May 25, 2022, executed by Borrower in favor of the City and recorded on September 16, 2022 as
Instrument No. 2022-0027924 in the Official Records of Shasta County; and
B. WHEREAS, the City desires to increase the Borrower's Loan by $83,311 as set
forth in that certain FIRST AMENDMENT TO DEVELOPMENT AGREEMENT, C-9406,
between Borrower and the City executed as of June , 2023; and
D. WHEREAS, the City and the Borrower desire to amend the Note, Deed of Trust,
as set forth herein to reflect the increased Loan amount.
NOW, THEREFORE, with reference to the foregoing Recitals and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
mutually agree as follows:
First Amendment to Note and Deed of Trus[
l. Amendments.
(a) The principal amount of the Note is hereby increased to Four Hundred
Twenty Thousand Five Hundred Seven and No/100 Dollars ($420,507).
(b) All references in the Note, Deed of Trust, in the amount of$337,196 are
hereby revised to be references to the loan in the amount of$420,507.
2. Governin�Law. The Agreement shall be interpreted under and be governed by the
laws of the State of California.
3. Counter,parts. This Amendment may be executed in counterparts by the parties
hereto, each of which shall be deemed to be an original, and all such counterparts shall constitute
but one and the same instrument.
4. Full Force and Effect. Except as amended hereby, the Loan Documents remain in
full force and effect.
5. The date of this Amendment to Deed of Trust and Promissory Note shall be the
date that the City executes the same.
[SIGNATURE PAGES FOLLOW]
2
First Amendment to Note and Deed of Trust
IN WITNESS WHEREOF, the parties have executed this Agreement as ofthe date first
written abowe.
BO OWER:
RESQURCES FOR RURAL COMMIJNITY
DEVELOPMENT, INC. dba RCCESSHOME,a
California nonprofit public benefit corporation
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B � 8 �Illt�
Title: Interim Executive Director
GITY:
CITY O�' DDING, a municipal corporation
By:
Barry Tippin, City Manager
APPRQ�ED AS T4 FC) .
By: � � �
Barry E. DeWalt, City Attorney
ATTEST:
By:
Pamela Mize, City Clerk
The signatur�s of the Borrower and City must be Notarized.
3
First Amendment to Note and Deed of Trust
AGKN LEDG E T
A natary public ar ather officer completing this
certificate Verifies only the identity of the indiv�dual
who signed the document tn which this certificate is
attached,and not the truthfulness, accuracy, or
validit of that documenfi.
State af California
Caunty of Sh�sta �
On Aprii 2i, 2023 pefore me, �risten K, McGee, Notary Public
(insert name and title of the afficer)
personally appeared ��rbara White
who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s} is/are
subscribed ta the within instrument and acknowledg�d to me that he/she/they executed the sam� in
hislherltheir authorized capacity(ies), and that by his/her/their signature(s) an the instrument the
p�rsan(s), or the entity upon behalf of which th� person(s) aeted, executed the instrument.
I certify under PENfiLTY OF PERJURY under the laws of th� State of Galifarnia that the foregoing
paragraph is true and carrect.
5��°c r�, KRISTEN K.MGGEE
WITNESS my hand and offieial seal. _ �. Natary PUbut-cai�forn��
� � '' Shasta Caunty >
r � � Cammission rc 2404336 r
_ "`�Fa�"� My Comm,Expires Juri 26,2�2b.
Signature (Seal)
� _f �( �ITY F I
` '� 777 Cypress Avenue, Redding, CA 96001
;
'� � PO BOX 496071, Redding, CA 96049-6071
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C A L I F � O R f� � � ��'" c�t�cafr�dc�i��,org
PAMELA MIZE,CITY CLERK
SHARLENE TIPTON,ASSISTANT CITY CLERK
530.225.4447
530.225.4463 FAX
June 17, 2022
AccessHome Inc.
715 Parkview Avenue, Suite 1
Redding, CA 96001
RE: Development Agreement— C-9406
Dear Sir or Madam,
Enclosed piease find the fully executed original of the above referenced Development
Agreement by and between the City of Redding and Resources for Rural Community
Development, Inc. dba AccessHome regarciing the John Reginato River access park host project.
If you have any questions regarding this agreement, or if we can be of assistance, please
contact the Office of the City Clerk at(530) 225-4044.
Sincerely, _
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Executive Assistant
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Development Agreement between City and AccessHome
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DEVELOPMENT AGREEMENT
This DEVELOPMENT AGREEMENT ("Agreement") is made and entered into by
and between the CITY OF REDDING, a municipal corporation and general law city ("City"), and
RESOURCES FOR RURAL COMMLTNITY DEVELOPMENT, INC. dba AccessHome, a
California nonprofit corporation("Operator" or"AccessHome").
RECITALS
A. The City wishes to facilitate the development of a Park Host Home at 3855 S.
Bonnyview Road, Redding, Shasta County, California, Assessor's Parcel Number 048-400-003-000
(the "John Reginato River Access Property") Redding, Shasta County, California, as further
described in Exhibit 1 "Legal Description" respectively; and depicted in Exhibit 2, "Location Map,"
attached hereto and incorporated by reference herein from the State of California
B. On March 3, 2020, City Council approved $100,000 in Park In-Lieu funds for the
development of Park Host Housing at the John Reginato River Access Property to provide consistent
onsite coordination that dissuades vandalism and improves park safety.
C. The City desires to provide funds as a loan to Operator for the development and
construction of the Project. The City reserves the right, in its sole discre�ion, to utilize any other
affordable housing funding sources available to the Project, along with allocated Park-In Lieu funds,
to fulfill the obligations set forth in this Agreement.
D. The City entered into a General Lease — Public Agency Use effective June 1, 2011
with the State of California for Assessor's Parcel Number 048-4Q0-003-000, also described as John
Reginato River Access Property and said Agreement, permits City of Redding occupancy of the
underlying property and the right to provide for a residential use on the parcel as confirmed by the
City of Redding Community Services Department.
E. The City and Operator agree that the shortage of construction workers has reached
critical levels thereby driving construction costs beyond acceptable levels and extending the
production time of income-qualified housing.
F. Don Ajamian Construction, a California corporation and general contractor and
Emergent 3D, a California limited liability corporation (collectively "Contractor") provides 3D
Printed Building Construction services to the Redding area. 3D Printed Building Construction,
when combined with conventional construction methods, provides home construction that innovates
the local construction industry and solves housing cost and production delays.
G. The City and Operatar desire to enter into this Agreement to set forth the mutual
obligations of the City and Operator in connection with the design, financing and construction of the
Project.
2 �27
Development Agreement between City and AccessHome
H. The City anticipates partnering with the Contractor to develop twenty-four 3D
Printed Building Construction projects over the next four years to increase rental and homebuyer
opportunities in the community.
AGREEMENT
1. Definitions. The following definitions shall apply for the purposes of this Agreement:
l.l "Affordable Rent" shall have the meaning set forth in the City's Declaration of
Affordability Restrictions.
1.2 "Affordable Unit" shall mean the single-family rental unit developed on the
Property which is restricted by the City's Declaration of Rent Restrictions as further defined in
Exhibit 4.
13 "Affardability Period" sha11 mean a period commencing upon the date of the
Certificate of Occupancy issued by the City's Building Division far the Project and continuing for
twenty(20) years, the period of affordability.
1.4 "Area Median Income or AMI" shall mean the current area median income adjusted
for family size appropriate to the size of the rental unit applicable to Shasta County, as determined by
the United States Department of Housing and Urban Development(HUD).
1.5 "Certificate of Completion" shall mean the document attached as Exhibit 1 l.
1.6 "Certificate of Occupancy" shall mean the document issued by the City's Building
Division certifying that the project has been completed according to the approved plans and
applicable building codes.
1.7 "City" shall mean the City of Redding. The City is a municipal corporation and
general law city. City as it is used in this Agreement includes the City Council of the City and any
assignees of or successors to its right,powers, and responsibilities. The principal office of the City is
located at 777 Cypress Avenue, Redding, California 960Q1. The phone number for voice
communication with the City (Mark Christ, Associate Project Coordinator) is 530.245.7136 and for
email transmittal to the City is mchrist(�a,citvofreddin�.org.
1.8 "City Assistance or City Loan" shall mean the financial assistance provided by
the City to Operator pursuant to Sections 3.1 and 3.2.
1.9 "City Manager" shall mean the City Manager of the City of Redding.
1.10 "Code of Federal Regulations" or "CFR" is the codification of the general and
permanent rules published in the Federal Register by the executive departments and agencies of
the Federal Government.
l.11 "Combined Loan-To-Value" shall mean the ratio of Other Financing, as described in
Section 3.3,plus the City Loan divided by the Market Value of the completed Project.
� . , :� 3J27
Development Agreement between City and AccessHome
1.12 "Completion Date" shall mean the date stated in the Schedule of Performance for the
completion of construction of the Project.
1.13 "Consulting and Professional Services Agreement or Park Host Agreement" shall
mean that certain contract entered into and between the City of Redding and AccessHome for
Park Host services.
1.14 "Construction" shall mean (whether or not capitalized) unless the context clearly
indicates otherwise, the construction of the Project on the Property and all required public
improvements in accordance with the final Project Specifications and this Agreement.
1.15 "Contractor" shall mean the contractor or contractors with whom the Operator
contracts for the construction. Contractor must have a current and valid contractor's license issued by
the California Contractors' State License Board for the construction. Don Ajamian Construction and
Emergent 3D LLC are collectively considered the contractor for this Project.
1.16 "Days" shall mean calendar days unless expressly stated otherwise. If the date or
time period for any action under this Agreement falls or ends on a Saturday, Sunday or federal, state
or legal holiday, then such date or time period shail automatically be eatended until 5 p.m. Pacific
Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday.
1.17 "Declaration of Rent Restrictions" sha11 mean the document recorded against the
Property to enforce the Affordability Period and Affordable Rent for the Affordable Unit, a
representative copy of which is attached hereto as Exhibit 4.
1.18 "Deed of Trust" or "City Deed" shall mean the deed of trust recorded against the
Property to secure the City Loan, a copy of which is attached as Exhibit 5.
1.19 "Development Agreement" or "Agreement" is this agreement which includes this
document and the referenced exhibits and attachments to this Agreement, which are all
incorporated in this Agreement as if set forth in full in the body of the Agreement.
1.20 "Operator" shall mean AccessHome Inc., a California Nonprofit Benefit Corporation.
The principal off]ce and mailing address of the Operator is 715 Parkview Avenue #1, Redding, CA
96001. The phone number for voice communication with the Operator is 530.224.2800 and for email
transmittal to the Operator is dsmith(a�accesshc�rrl�.t�rg. Operator as it is used in this Agreement,
shall include any permitted nominee, assignee, or successor in interest as herein provided.
L21 "Development Team" shall mean designated representatives from the City, Operator
and Contractor to function as a team to ensure the Project is developed in accordance with this
Agreement.
1.22 `Bffective Date" sha11 mean the date this Agreement is signed by the City or its
designee authorized to sign on behalf of the City.
1.23 "Escrow Closing Costs" shall mean the fees, charges and costs identified in Section
3.8 applicable to the City Loan Documents.
1.24 "Extremely-Low Income Household sha11 mean a household whose income does not
exceed 30 percent (30%) of the Area Median Income adjusted for family size appropriate to the size
of the rental unit applicable to Shasta County, as established and amended from time to time by HUD
and as set forth in in HSC Division 31, Section 50106.
: 4 �2�
Development Agreement between City and AccessHome
1.25 "Final Plans" or "Final Project Plans" are the complete set of architectural and civil
engineering plans and specifications for the Project which include the City's Development Services
and Land Development Divisions' conditions of approval and have been approved by the City's
Building Division and Engineering Division.
1.26 "Health and Safety Code (HSC)" shall mean the California Health and Safery Code.
1.27 Reserved
1.28 Reserved
1.29 "Lease Agreement" or "Ground Lease" shall mean the written agreement negotiated
between the City and Operator.
1.30 "Lender" shall mean a11 holders, including the holder of any construction or any
permanent loan with a lien in first position or encuinbrance as security far £'inancing on all or any
part of the Property and references to the Property shall mean that portion of the Property so
encumbered.
1.31 "Long-term lease" or "Ground Lease" shall mean the lease agreement equal to the
period of affordability or 20-years. The single-family home wi11 be made available to, restricted
occupancy to and rented at an affordable rent to income qualifying households as defined within
this agreement of which a copy is attached as Exhibit 7.
1.32 "Low-Income" or "Lower-Income Household" sha11 mean a household earning no
greater than eighty percent (80%) of Shasta County median income adjusted for household size as
established and amended from time to time by HUD and as set forth in Health and Safety Code
Section 50079.5, as it exists as of the date of this Agreement.
133 "Notice of Completion" is the document attached as Exhibit 12.
1.34 "Other Financing" shall mean all non-City financing sufficient to complete the
Project pursuant to Section 3.3.
135 "Plans" are the Preliminary Plans and/or the Final Plans, or both, as the context
requires.
1.36 "Preliminary Plans" are all the necessary plans, documents, and supplemental
infarmation to comprise a complete application for the entitlements necessary to develop the
Project, as required by the City's Development Services Department.
1.37 "Preliminary Project Budget" shall mean the document attached as Exhibit 9.
1.38 "Project" sha11 mean improvements to be constructed on the Property in accordance
with the approved architectural plans and this Agreement. The improvements include, but are not
limited to, the construction of one single-family home of 3D Printed Construction that includes the
common areas and the associated infrastructure to complete the Project. The maintenance of the
single-family unit wi11 be pursuant to Park Host Agreement. Additional Project detail is further �
described and provided in this Agreement, the Scope of Development (EXhibit 8) and the Project
Final Plans.
�� s �2�
Development Agreement between City and AccessHome
1.39 "Project Budget" shall mean the identification of costs for development and
construction as required in Section 5.1 of this Agreement. A Project Budget is attached to this
Agreement as Exhibit 9.
1.40 "Project Manager" shall mean the City's designee of a City staff person to verify
development and construction compliance with this Agreement and to distribute construction draw
requests.
1.41 "Promissory Note" or "City Promissory Note" shall mean the promissory note to be
executed by Operator which evidences the City Loan, a copy of which is attached as Exhibit 6.
1.42 "Property" or "Project Site" shall mean a leasehold interest in the real property
located at 3855 S. Bonnyview Road, Redding, Shasta County, California, Assessor's Parcel Number
048-400-003-000 (the "John Reginato River Access Property"). The John Reginato River Access
Property as described in Exhibit 1 "Legal Description" respectively; and depicted in Exhibit 2,
"Location Map," respectively.
1.43 "Redevelopment Law" shall mean California Community Redevelopment Law as
contained in California Health and Safety Code Section 33000 et seq and statutes referenced therein.
1.44 "Residual Receipts" shall mean any Project net income remaining after:
a) Payment of allowable distributions to the Operator that include any
withdrawal, taking or payment of any assets, subsidies, earnings or income of the Project excluding
payments for current and budgeted Operating EXpenses of the Project. Distributions shall be payable
only after payment of Operating Expenses and Non-Standard Operating Expenses and shall be
limited to 50% of the net income remaining after payment of Operation Expenses and Non-Standard
Operating Expenses, as defined below:
i) Operating Expenses means all reasonable and proper expenses, as
approved by the City, of the operation of the Project including, but not limited to, loan payments
payable before the calculation of allowable Distributions as approved by the City, the annual
servicing fee, if applicable, insurance, real estate taxes, ordinary maintenance and repair, costs of
marketing, project management, supportive services, fuel, utilities, garbage disposal, sewer charges,
audit expenses, the required impounds, reserve and escrow deposits, reasonable attorney fees
incurred in operating the Project, and such other payments as the City may require or specifically
approve in writing as Operating Expenses. In no event shall attorney fees or litigation costs other
than as stated, or expenditures normally required to be paid out of the replacement reserve, be treated
as Operating EXpenses unless specifically approved in writing by the City.
ii) Non-Standard Operating Expenses means expenses as approved in
writing by the City payable after all Operating Expenses and before Distributions. Non-Standard
Operating Expenses shall be paid in the following priority and may include (if applicable) the
following: (i) cash flow operating reserves; (ii) non-City required operating reserves funded from
Project cash flow; (iii) deferred Operator fee (only if the Project was funded with the proceeds from
the sale of tax credits and the Project has a limited partner investor) payable as determined by
Operator, not to exceed the total approved deferred Operator fee; and (iv) partnership asset
management fees.
1.45 "Residual Receipts Loan" shall mean a loan, the repayment of which is dependent
upon the availability of net incorne remaining after deducting the amount necessary to satisfy
�:� ��2�
Development Agreement between City and AccessHome
City approved Operating Expenses, Non-Standard Operating Exp�nses and distributions to the
Operator associated with the operation and maintenance of the Project.
1.46 "Schedule of Performance" is attached as Exhibit 10.
1.47 "Scope of Development" or"Scope of Work" is attached as Exhibit 8.
1.48 "Section 3 Clause" is attached as Exhibit 13.
1.49 "Security Documents" shall mean the following documents related to the Project:
Promissory Note and the Declaration of Rent Restrictions
1.50 "Subcontractor" shall mean those contractors or material suppliers with whom the
Contractor contracts or with whom another subcontractor contracts for a portion of the construction.
Subcontractor must have a current and valid contractor's license, issued by the California
Contractors' State License Board, for the work they are performing.
1.51 "Substantial Change" sha11 have the meaning described in Subsection 4.2.3.
1.52 "Units" shall mean the residential dwelling units constructed on the Site pursuant to
this Agreement.
1.53 "Very-Low Income Household" shall mean a household earning no more than fifty
percent (50%) of Shasta County median income adjusted for household size as determined by the
United States Department of Housing and Urban Development (HUD) from time to time, as set forth
in 24 CFR Part 92.2 as it exists as of the date of this Agreement.
2. The A�reement.
2.1 Purpose of the A�reement. The purpose of this Agreement is to further the goals
of the City to increase, improve, and preserve affordable housing by assisting the Operator with the
development of the Property and the completion of the Project in accordance with the Final Plans and
this Agreeinent.
The City represents that the development of the Property and completion of the Project,
under this Agreement, and the fulfillment generally of this Agreement, are in the vital and best
interests of the City of Redding and the health, safety, morals and welfare of its residents; for the
purpose of community improvement and welfare; and to improve, preserve, and increase the supply
of affordable housing. Except for the risks and speculation inherent with respect to real estate
development projects, Operator represents and agrees that its development of the Project under the
Agreement is not intended for speculation in land holding.
It is contemplated by the parties that all activities undertaken by Operator will be in
accordance with this Agreement.
2.2 Sco�e of Work. It is contemplated by the parties that the Operator will develop the
Project on the Property. AccessHome wiil construct one,three bedroom and two-bathroom unit with
3D Printed Construction Technology as portrayed in Exhibit 8.5.
The Scope of Work will include architectural drawings, building perinits, lot preparation and
clearing, foundation excavation, footings poured and set, foundation poured, and all necessary
infrastructure and site development for parking.
�� � ��7
Development Agreement between City and AceessHome
The specific scope of work to be carried out by the Operator under this Agreement is more
particularly described in this Agreement, the Scope of Development and the Preliminary Project
Design Package (Exhibit 8.5).
2.3 Term. This Agreement shall commence as of the Effective Date and proceed as
required by the Agreement and the Schedule of Performance, and shall terminate upon the
occurrence of all of the following (except for any deed restrictions, covenants running with the land,
or other agreements or provisions which by their terms survive the term of the Agreement):
a) Completion of the construction of the Project in accordance with this Agreement; and
b) Fulfillment by the parties of their obligations under this Agreement including but not
limited to, all affordability requirements set forth herein
3. Project Financin�.
3.1 City Assistance; Ci , Loan. In order to effectuate the completion of the Project on
the Property, the City shall provide project financing to the Operator for the sole purpose of assisting
with construction costs of the Affordable Unit within the Project (City Loan). The City Loan shall be
in a total amount that shall not exceed Three Hundred Thirty-Seven Thousand One Hundred
Ninety-six No1100 Dollars ($337,196). The City Loan includes Park In-Lieu fees of$100,000 from
the Community Services Department.
3.1.1 City Loan Terms and Conditions. The City Loan shall be evidenced by a
promissory note (City Promissory Note) in favor of City for the full amount of the City Loan. The
City Promissory Note shall bear zero interest. Required payments will be based on residual receipts
as defined in 1.44 and 1.45 of this Agreement and the Promissory Note. Twenty-years (20) from the
date set forth in the City Promissory Note, the term of the loan expires, any remaining balance of
principal and interest is due.
This City Promissory Note shall not be assumable by the successors and assigns
of Operator without the prior written consent of the City, whereby such consent shall not
reasonably be withheld.
3.2 Re�ayment of City Loan•. One hundred twenty (120) Days from completion of the
Certificate of Completion, monthly installments, as identified within the City Promissory Note, will
begin and continue for a period of twenty (20) years. Payments received by the City or its loan
servicing agent shall be applied first to the interest and subsequently to reducing the principal as
identified in the City Promissory Note.
Operatar, or other party autharized by this Agreement, including any successors and assigns,
may pay in full, or any part of, the City Loan prior to the due date without penalty.
Subject to the notice and cure rights set forth in Section 10.1, the full amount of the City
Loan, including principal and all accrued interest, shall become immediately due and payable upon
the occurrence of any of the following:
a) Operator's failure to proceed with and complete the Project in accordance
with the Schedule of Performance;
b) Operator abandons or substantially suspends construction of the Project for a
. - _ :� & j27
Development Ageement between City and AccessHome
period of three (3)months after written notice of such abandonment or suspension from the City;
c) Operator fails to utilize the Property for the Project within the timeframe set
forth in the Schedule of Performance or as or as authorized in writing;
d) Operator fails to comply with the affordability covenants set forth in this
Agreement and the exhibits to the Agreement; or
e) Other material breach of this Agreement following expiration of applicable
notice and cure periods.
The City's overall intention is to forgive the City Loan over time. After the Operator fulfills
its twenty (20) year obligation under this Agreement, the City Loan shall be forgiven in its entirety
and the asset shall be owned by the City.
3.3 Other Financin�. If needed, Operator shall obtain other financing that sha11 be
sufficient for the completion of the Project and its operation in conformity with this Agreement when
combined with City financing. The City of Redding will provide at least $100,000 toward the
construction costs of the Project.
If necessary, the Operator shall contribute additional funds, i.e.,personal resources, Redding Electric
Utility Rebates or any other funds that, when combined with the City Loan and any other financing,
will complete the Project in conformity with this Agreement.
3.3.1 A�proval of Other Financing; Commitments. Operator shall provide
to City for review and approval evidence of a firm and binding commitment for the private loan
amount as well as any other private financing necessary for the Project. Such commitments shall be
subject only to reasonable conditions of the Lender necessary to assure the value and security of its
loan. Such commitments shall not be subject to conditions which require amendment of this
Agreement or other agreements between 4perator and City without City approval. Said commitments
shall be, in the aggregate, in a total amount sufficient to complete development of the Project as
provided in the Project Budget and to fulfill a11 other obligations of this Agreement.
3.4 Limitation on Encumbrances; Subordination to Other Financin�. Prior to the
completion of the Project, Operator shall not engage in any financing or any other transaction
creating any encumbrance or lien on the Property, whether by express agreement or operation of law
except to obtain funds to be used only for actual costs of the Project and other expenditures necessary
and appropriate to develop the Property in accordance with this Agreement and then only with the
prior approval of the City. Operator shall notify the City in advance of any proposed financing to be
secured by the Property. In any event, Operator shall promptly notify the City of any encumbrance
or lien that has been created on or attached to the Property. If Operator is not in default of this
Agreement, and if City approves all of the private financing documents, including the terms of any
subordination agreement, which approval shall not be unreasonably withheld, City will subordinate
its Deed of Trust to the lien of a construction deed of trust and permanent deed of trust, for such
financing.
3.5 Provisional Refinancin�. The Operator may, without City consent, refinance any
indebtedness secured by an encumbrance which is superior to the City Deed, provided that the
refinanced encumbrance shall have the following characteristics:
a) Amount. The refinanced encumbrance shall not secure indebtedness in a dollar
amount greater than the balance owed on the indebtedness plus reasonable costs related to the
refinancing to which the City's interest was originally subordinated, unless otherwise approved by
the City Manager.
� _ _ 9 �27
Development Agreement between City and AccessHome
b) Debt Service. The debt service of the refinanced indebtedness shall be an amount
which does not exceed the amount of the debt service of the indebtedness to which the City's interest
was originally subordinated.
c) No Monies to Operator. Operator shall receive no fees or monies as a result of the
refinancing of the indebtedness of the Project unless otherwise approved by the City Manager.
d) Subordination Agreement. Subject to City approval, which approval shall not be
unreasonably withheld, upon request, City shall execute any document reasonably required to
evidence the subordination of the City's Deed of Trust to a permitted indebtedness or refinancing.
City sha11 a11ow the Declaration of Affordability Restrictions to be recorded on the Property junior
only to 1)the lien of the construction lender securing funds for construction of the Project; and 2)the
lien of a permanent loan so long as the permanent loan is for an amount not greater than the amount
due and owing by the Operator pursuant to the construction loan plus customary fees and costs
payable for the benefit of the permanent lender in connection with the permanent loan and upon
satisfaction and release and reconveyance of the deed of trust securing repayment of the construction
loan. In the event a subordination agreement meets these requirements, the City Manager shall be
authorized to execute the subordination agreement on behalf of the City without additional
authorization by the City Council.
3.6 Assurances to Lenders. The City and the Operator sha11, in good faith, consider
making such reasonable modifications to this Agreement and executing such further instruments and
agreements as a Lender, secured by an interest in the Property, may reasonably request to
acknowledge and protect such Lender's rights, provided such modifications, instruments, and
agreements do not materially adversely affect any party's rights or obligations under this Agreement
and provided such modificat'rons, instruments, and agreements serve a material economic purpose.
3.7 No Reimbursement. Except as expressly provided in this Agreement, no person sha11
have the right of reimbursement from the City for any funds expended by them for the Project prior
to execution of this Agreement. This provision does not preclude any person from receiving
reimbursement from persons other than the City.
3.8 Reserved
4. Preparation of Plans and Related Documents.
41 Project Mana er. Subject to the terms of this Agreement, City shall designate a
Project Manager who shall, in addition to other responsibilities under this Agreement, have the right
of architectural and site planning review of all plans and drawings, including but not limited to
complete structural and engineering plans, landscape plans, and grading plans associated with the
Project as well as any changes therein.
4.2 City Review of Substantial Changes to Final P1ans.
4.2.1 Citv Project Mana e�r ApprovaL Notwithstanding the foregoing, any
Substantial Change in the Final Plans is subject to City approval. If the Operator desires to make a
Substantial Change in the Final Plans, the Operator sha11 submit such proposed change, in writing, to
the City for the Project Manager's approval, which approval shall not be unreasonably withheld.
Substantial Changes to the Final Plans shall be deemed approved unless disapproved within fifteen
(15) Days after their delivery to the City.
�o �?�
Development Agreement between City and AccessHome
Nothing in this Section shall be construed to relieve Operator of its obligations under all applicable
laws regarding such changes.
4.2.2 Citv Disapproval. If the Project Manager disapproves, in whole or in part,
any Substantial Change in the Final P1ans, the Project Manager shall state, specifically and in
writing, at the time of disapproval, the reasons for disapproval and the changes which the City
requests to be made for its approval. The reasons for disapproval and such City-requested changes
shall be consistent with the approved Final Plans and Scope of Development. In no event may the
City impose a Substantial Change upon the Project or change or modify any aspect of the Project
approved by the City. Revised and resubmitted plans in response to a City disapproval shall be
deemed approved unless the Project Manager, within fifteen (15) Days after proper delivery to City,
disapproves the resubmitted plans in whole or in part, in writing.
4.2.3 Substantial Chan�e. A Substantial Change in the Plans or budget shall mean
any of the following, with respect to the Project:
a) Changes in size or design resulting in an increase or decrease of greater than
ten percent(10%} of square footage or density of Units.
b) Changes in the mix of Units or bedroom sizes.
c} Changes in the total number of Units.
d) Changes in use of exterior finishing materials substantially affecting
architectural appearance or functional use and operation of the Project.
e} Material changes in size or placement of public service or handicapped
facilities; or material changes in general pedestrian or vehicular circulation in,
around or through the public areas of the Project.
fj Material changes in landscaping or in size or quality of exterior pavement,
pedestrian walkways, parkways, or any public areas shown and speci�ed in
the Final Plans.
g) Any change which would preclude or materially reduce the ability to use the
Project as set forth in the Plans.
h) Changes in the Final Project Budget or subsequent change orders that exceed
an amount greater than thirty (30%) above the previously approved
Preliminary Project Budget.
4.3 Purpose of Review and Approval. The City's Project Manager's review of the Final
Plans and approval of the Final P1ans and any Substantial Changes is not an assurance of the
adequacy or correctness of the Final Plans. City has reserved its rights pursuant to Sections 4.3 solely
to assure that the Final Plans conform to the Site Development Permit, the Scope of Development
and the requirements of this Agreement.
4.4 Substantial Chan�e to Project Cost. Should a substantial change in project cost occur
between the Preliminary Project Budget and the Fina1 Project Budget, the Operator is bound to abide
by the renegotiated Final Project Budget cost figures and may need to obtain additional private or
other types of financing to cover the Project cost.
5. Develo�ment of the Site.
5.1 Project Bud� At the times called for in the Schedule of Performance, the Operator
shall provide to the City a complete final Project Budget for the construction of the Project in a form
and with specificity reasonably satisfactory to the City, ineluding al1 "hard" and "soft" costs for the
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Development Agreement between City and AccessHome
Project and reflecting, as possible, executed contracts. Such final Project Budget shall be
substantially in conformance with the terms of this Agreement and the Project Budget attached
hereto as Exhibit 9.
5.2 Disbursement of Ci. Loan. The parties agree that upon close of escrow described in
Section 3.8, the remaining proceeds of the City Loan not expended during escrow, will be placed into a
non-interest-bearing account controlled by the City's Finance Department. Each and any disbursement of
funds from this account shall require a written authorization signed by the City's Project Manager
autharizing the release of the requested disbursement. The City's Praject Manager shall provide such
written approval,which shall not be unreasonably withheld,within ten(10)business days of receipt of the
request from Operator.
5.2.1 Disbursement durin� Construction. Prior to any disbursement of City Loan
proceeds for construction, Operator and City's Project Manager shall develop a mutually agreeable
disbursement format. In part,this format shall include certifications from the Project's architect,engineer
and/or general contractor that all materials and construction included in the request for disbursement are
consistent with approved plans and specifications and that all materials have been delivered to the Site or
installed and inspected as required. All disbursements shall be based on a percentage of completion and
a11 disbursements shall reflect ten percent (10%) retention not including the costs of stored materials.
(Retention shall be released upon the issuance of a Certificate of Completion for the Project.)
The City Loan shall be disbursed in accordance with the mutually agreed upon draw
schedule described above. Disbursement shall be based upon satisfaction of the construction component
upon which the draw request is based as determined in good faith by the City's Project Manager.
Disbursements shall not exceed aggregate amounts set forth in the accepted and approved construction
contracts for the Project. Operator and City acknowledge that it shall be the sole responsibility of the
Operator to obtain the required written authorization for any request for disbursement.
5.3 Construction. The Operator shall construct the Projeet according to the requirements
established in this Agreement, including, but not limited to, the Final Plans, the Scope of
Development and the Schedule of Performance. In the event that the cost of construction of the
Project, or any part of the Project exceeds the costs projected by Operator, the Operator shall,
nevertheless, bear the responsibility to complete, at Operator's cost, the construction of the Project in
accordance with this Agreement. The City and the Operator agree that such obligations of the
Operator sha11 be covenants running with the land and that they sha11, in any event, and without
regard to technical classification or designation, be to the fullest extent permitted by law and equity,
binding for the benefit of the City and enforceable by the City against the Operator, its successors �
and assigns. These covenants shall terminate upon the City issuing a Certificate of Completion for
the Project.
5.4 Chan�es During Construction. The Operator covenants and agrees that the C?perator
shall not make or permit to be made any construction of the Project which incorporates a Substantial
Change in the Final Plans without City approval of such changes. The Operator shall, prior to their
occurrence, notify the City of a11 Substantial Changes in the construction as well as all changes which
result in a material net increase in cost or extend the period for construction beyond the Completion
Date. The City shall, in its sole discretion, approve or reject such changes in writing within 15
(fifteen) days after proper delivery to City.
5.5 No Construction Over Utility Easements. The Operator shall not construct any of the
Project on, over, or within the boundary lines of any easement for public utilities on the Site, unless
such construction is pravided for in such easement or has been approved by the beneficiary of the
easement.
5.6 Commencement and Completion of Construction. The Operator shall promptly begin
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Development Agreement between City and AccessHome
and thereafter make reasonable efforts to diligently pursue to complete the construction of the Project
and the development of the Property in accordance with the provisions of this Agreement and at the
times specified in the Schedule of Performance. The Operator shall complete construction no later
than the timeframe set forth in the Schedule of Performance. Time is of the essence.
5.7 Reports• During the period of construction, the Operator sha11, once every 90 Days,
or more often if requested by the City Project Manager, submit to the Project Manager a written
report of the progress of the work. The report sha11 be in such form and detaii as may reasonably be
required by the Project Manager and shall include a reasonable number of construction photographs
taken since the last report if previously requested by the City.
5.8 Local State and Federal Laws. The Operator shall carry out the construction of the
Project in conformity with all applicable laws, including all applieable federal and state labor
standards.
5.9 Anti-Discrimination Durin� Construction. The Operator, for itself, and its successors
and assigns, agrees that the following provisions shall apply to, and be contained in all contracts and
sub-contracts for the construction of the Project. (For purposes of this Section, Operator shall also
mean Contractor or Sub-contractor.)
5.9.1 Employment. The Operator shall not discriminate against any employee or
applicant for employment because of race, color, religion, age, disability, sex, sexual orientation,
marital status, creed, ancestry, or national origin. The Operator sha11 ensure that applicants are
employed and that employees are treated during employment without regard to their race, color,
creed, religion, age, disability, sex, sexual orientation, marital status, ancestry, or national origin.
Such action sha11 include, but not limited to, employrnent, upgrading, demotion or transfer;
recruitment or recruitment advertising; layout or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The Operator agrees to post in
conspicuous places, available to employees and applicants for employment, notices setting forth the
provisions of this nondiscrimination clause.
59.2 Advertisin�. The Operator shall, in all solicitations or advertisements for
employees placed by or on behalf of the Operator, state that a11 qualified applicants wi11 receive
consideration for employment without regard to race, color, creed, religion, age, disability, sex,
sexual orientation, marital status, ancestry, or national origin.
5.10 Public Improvements. The Operator shall, at Operator's expense, undertake and
complete any modification, construction, relocation or improvement of public facilities,
improvements and utilities on or far the development of the Site.
5.11 City Access to the Site. The Operator shall permit the City's representatives access,
without charge, to the entire Site at any time and for any purpose which the City reasonably
considers necessary to carry out its obligations and protect its interests under the Agreement.
Purposes for City entry may include, without limitation, inspection of all work being performed in
connection with the construction of the Project. Any City personnel entering on the Site shall
register immediately at Operator's construction office, shall be escorted by the Operator's designee,
and shall wear proper clothing and safety equipment, and shall comply with all job site safety rules.
The City assumes all liability and responsibility for failure of its representatives to comply with such
requirements and for their negligent acts and/or willful misconduct.
5.12 Certificate of Completion. After the City has determined that the Operator has
completed the Project in accordance with the Operator's obligations under this Agreement and a
Notice of Completion has been furnished and the subsequent 30-day mechanic's lien period has
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Development Agreement between City and AccessHome
expired, the City will record, and will furnish the Operator with, a "Certifcate of Completion"
certifying such completion. Such certification shall be a conclusive determination of satisfaction and
termination of the agreements and covenants in the Agreement with respect to the obligations of the
Operator to construct the Project and of the dates for the commencement and completion of
construction, subject to any qualifications or limitations stated in such certification. Such certification
and such determination shall not constitute evidence of compliance with or satisfaction of any
governmental requirements other than the obligation to construct the Project or any obligation of the
Operator to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to
finance all or any part of the Project.
The City Manager or designee sha11 prepare and execute the Certificate of Completion in a
form suitable for recording in the Official Records of Shasta County pursuant to Exhibit 11.
5.12.1 Refusal to Issue. If the City refuses or fails to provide a Certificate of
Completion, the City shall, within ten (10) business days after written request by the Operator,
provide the Operator with a written statement, indicating in adequate detail in what respects the
Operator has failed to complete the Project in accordance with the provisions of the Agreement, or is
otherwise in default, and what measure or acts wi11 be necessary, in the opinion of the City, for the
Operator to take or perform in order to obtain such certification. If the City wrongfulty refuses to
issue a Certificate of Completion, or upon passage of the ten (10) business day period, the Operatar
may seek a writ or order compelling the City to issue the Certificate.
5.13 Notification of Contractors, Architects, and Engineers. The Operator shall notify its
Project Contractors, architects and engineers in writing of the requirements of this Agreement.
Operator shall include, where applicable, the provisions of this Agreement in contracts and
subcontracts for the Project, and the Operator shall enforce such provisions.
5.14 City Inspection. The City shall have the right to inspect a11 books and records of the
Operator related to the Project and the construction and changes in construction to assure Operator's
compliance with the provisions of this Agreement and Final Plans.
5.15 Supervision of the Work. The Operator sha11 be solely responsible for monitoring all
construction, ensuring that the construction is performed in a workmanlike manner, and enforcing the
terms of this Agreement and the construction contracts. City's Project Manager's inspections of
construction are made solely for the monitoring of City Loan disbursements, assuring Operator's
performance under this Agreement and protecting the City's security interest in the Property.
6. Use of Propert�
6.1 Uses. The Qperator covenants and agrees far itself, its successors, its assigns and every
successor in interest to the Property, that during construction and through the Affordability Period (as
herein described) the Operatar, its successors and assigns, shall devote, use, operate, and maintain the
Property in accordance with the Declaration of Rent Restrictions and this Agreement. All uses conducted
on the Property, ineluding, without limitation, all activities undertaken by the Operator pursuant to this
Agreement, sha11 conform to the applicable provisions of the City of Redding Municipal Code, and any
restrictions of record ar any of the recorded documents against the Property.
6.3 Affordable Housin�. �
6.3.1 Number and Tvpe of Units; Income Eli ig bilit� The Project includes one,
single-family unit, of approximately 1,200 square feet, of which will be located at the John Reginato
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Development Agreement between City and AccessHome
River Access Property. The Operator agrees to make the Affordable Unit available to, restrict
occupancy to, and rent at an Affordable Rent to Low-Income households throughout the
Affordability Period. This Low-Income unit is referred to herein as the Affordable Unit.
6.3.2 Affordabilitv Restrictions. The City and the Operator agree to enter into a
separate and binding Declaration of Rent Restrictions in the form set forth as Exhibit 4 to this
Agreement. The City and the Operator shall each eXecute such document and submit it to the
Escrow Agent for recording against the property prior to or simultaneously with the close of escrow
as described in Section 3.8.
The covenants contained in the Declaration of Rent Restrictions shall remain in full
force and effect for the entire AfFordability Period. The issuance of a Notice of Completion by the
City shall not affect the Operator's obligations under the Declaration of Rent Restrictions.
6.33 Determination of Affordable Rent for the Affordable Units. Each Affordable
Unit shall be rented at a monthly rental amount ("Affordable Rent") not to exceed the monthly rental
amount in accordance with Section 50053 of the California Health and Safety Code. As of the
approval of this Agreement, the following formulas represent maximum Affordable Rents:
(i) for the Very Low Income Units: One-twelfth (1/12) of thirty percent(30°/a) of fifty percent(50%)
of the area median income adjusted for family size appropriate to the unit applicable to the City of
Redding, as determined by the United States Department of Housing and Urban Development (the
"Applicable Median Income"); and (ii) for the Lower-Income Units: One-twelfth (1/12) of thirty
percent (30%) of sixty percent (60%) of the Applicable Median Income adjusted for family size
appropriate to the unit.
6.3.4 Monitorin�;/Annual Report. Operator sha11 prepare and submit annually the
certification reports, as requested by the City, during the Affordability Period. The report shall
identify each Affordable Unit, the rental rate, and the income and family size of the occupants, as
we11 as any other project information that is required by State redevelopment law and requested by
City. The required income information shali be supplied by the tenant in the form of source
documentation kept at the Property and shall be available for City review at the City's request.
Annually, during the Affordability Period, the Operator, its designee, or successor
shall cooperate fully with the City to schedule at a mutually convenient time, an annual on-site
inspection by the City of the Affordable Units and file record review of the tenant source
documentation referenced above.
6.4 Mana�;ement and Maintenance. The Operator shall manage and maintain, or cause to
be managed and maintained, the Project. The Operator shall maintain the Property in good condition
throughout the Affordability Period. The Operator shall keep parking areas, lighting fixtures, trash
enclosures, common areas and all areas which can be seen from adjacent streets, free from any
accumulation of debris or waste materials by regularly seheduled maintenance. The Operator shall
maintain the common, parking, and planted areas and all landscaping, in accordance with the
landscape plan, for the term of the Affordability Period. Maintenance shall include, but not be
limited to asphalt maintenance, watering, weeding, mowing, cultivating, pruning, staking and tying,
trash pick-up and removal, and repairing any damage caused by pedestrian or vehicle encroachment
into the planting and/or turf areas.
If, at any time, the Operator fails to maintain sueh areas in the manner required pursuant to
this Agreement, and said condition is not corrected within the time set forth in Section 10.1 upon
written notice by the City pursuant to Section ll.9 of this Agreement, the City may, but shall not be
: � 1s �2�
Development Agreement between City and AccessHome
obligated to, perform the necessary maintenance and the Operator shall pay such costs as are
reasonably incurred for such maintenance, together with interest at the maximum lawful rate until
full payment is made to the City. The monies expanded by the City shall become a lien against the
Property and the Operator hereby consents to the recordation of such lien without prior notice by
City to Operator. Said lien shall be junior and subordinate to deeds of trust for financing or
refinancing of the Project as allowed pursuant to this Agreement.
Notwithstanding the above, the City reserves for itself the right to exercise any and all
remedies available to it under this Agreement and the Deed of Trust securing the City's rights under
this Agreement.
7. Operator's General Obli at�s_
7.1 Obli�ation to Refrain From Discrimination. The Operator covenants by and for itself
and any successors in interest that there shail be no discrimination against or segregation of any
person or group of persons on account of race, color, religion, sex, marital status, national origin,
ancestry, familial status, or disability as defined in California Government Code Section 12955, et
seq., in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor
shall the Operator itself or any person claiming under or through it establish or permit any such
practice or practices of discrimination or segregation with reference to the selection, location number,
use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property. The
foregoing covenants sha11 run with the 1and.
72 Non-Discrimination Covenants in Deeds Leases and Contracts All such deeds,
leases or contracts shall contain or be subject to substantially the following nondiscrimination or non-
segregation clauses as are contained in Sections 33435 and 33436 of the California Health and Safety
Code:
7.2.1 In deeds: "The grantee herein covenants by and for himself or herself, his or
her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that
there shall be no discrimination against or segregation of, any person or group of persons on account
of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease,
sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the
grantee himself or herself or any person claiming under or through him or her, establish or permit
any such practice or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land
herein conveyed. The foregoing covenants shall run with the land."
7.2.2 In leases: "The lessee herein covenants by and for himself or herself, his or
her heirs, executors, administrators and assigns, and all persons claiming under or through him or
her, and this lease is made and accepted upon and subject to the following conditions:
There shall be no discrimination against or segregation of any person or group of
persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in
the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein
leased nor shall the lessee himself or herself, or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference to
the selection, location, number, use or occupancy of tenants, Iessees, sublessees, subtenants, or
vendees in the premises herein leased."
7.2.3 In contracts: "There shall be no discrimination against or segregation of any
person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the
�` ; .. � 16�27
Development Agreement between City and AccessHome
premises, nor shall the transferee himself or herself or any person claiming under or through him or
her, establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or
vendees of the premises."
The covenants contained in this Section 7.2 shall remain in effect in perpetuity, and issuance
of a Certificate of Coznpletion by the City shall not affect the Operator's obligations under this
Section.
'7.3 Payment of Taxes, Assessments Encumbrances and Liens The Operator shall pay
prior to delinquency all real estate taxes and assessments assessed and levied on the Property, at all
times priar to the release of the lien of the City's Deed of Trust. Prior to issuance of a Certificate of
Completion, the Operator shall not allow to be placed on the Property any mortgage, trust deed,
encumbrance or lien unless expressly authorized by this Agreement or the City. The Operator shall
promptly remove ar satisfy any levy or attachment made on all or any part of the Property. Nothing
contained in this Agreement shall prohibit the Operator from reasonably contesting the validity or
amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to the
Operator in respect to such contest.
7.4 Effect and Duration af Covenants. The covenants contained in the Agreement and
Declaration of Rent Restrictions which subject and burden the Property with covenants regarding use
of the Property and regarding nondiscrimination, are covenants running with the land. It is intended
and agreed that the agreements and covenants provided in this Agreement and the Declaration of
Rent Restrictions sha11 be covenants running with the land and City's interest in the equitable
servitudes thereon and that they shall, in any event, and without regard to technical classifications or
designation, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor
of, and enforceable by, the City, the City's successors and assigns, any other governmental entity
acting within its authority and any successor in interest to all or any part of the Property against the
Operator, its successors and assigns and every successor in interest to all or any part of the Property,
and any party in possession or occupancy of the Property and any subcontracting party or parties or
other transferees under this Agreement.
7.5 Effect of Violation. The City is deemed the beneficiary of the terms and provisions
of this Agreement, the Declaration of Rent Restrictions and the covenants running with the land, both
for its own right and for the purposes of protecting the interests of the community and other parties,
public or private, in whose benefit this Agreement and the covenants running with the land have been
provided. The Agreement and the Declaration of Rent Restrictions shall run in favor of the City
without regard to whether the City has had or does have any interest in the Property.
7.6 Indemnification. Operator hereby agrees to protect, defend, indemnify and hold
harmless, City, its officers, elected or appointed officials, employees, agents and volunteers from and
against any and all claims, damages, losses, expenses,judgments, demands, penalties, fines, defense
costs, and consequential damage or liability of any kind or nature, however caused, arising directly or
indirectly out of the obligations or operations herein undertaken by Operator, but only to the extent
such damage or liability is caused in whole or in part by any act or omission of the Operator, any
contractors or subcontractors of Operator or anyone for whose acts Operator may be liable,
including, but not limited to, concurrent active or passive negligence, except where caused by the
active negligence, sole negligence or willful misconduct of the City or resulting or arising from �
allegations that the City failed to administer this Agreement in accordance with applicable law.
Operator will conduct all defense at its sole cost and eXpense and City shall have right to approve or
disapprove legal counsel defending the City. City shall be reimbursed for all costs and attorney's
fees incurred in enforcing this obligation. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable, but it is the intent of the parties that
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Development Agreement between City and AccessHome
nothing in this provision is intended to otherwise reduce any insurance coverage on any policy of
insuranee held by the Operator or its subcontractors to which the City would otherwise be entitled to
in the absence of this provision; accordingly the indemnity obligations hereunder shall not apply to
the extent this indelnnity would reduce or eliminate eXisting insurance coverage that would inure
directly or indirectly to the benefit of the City. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by Operator. This Section 7 shall survive the termination
of this Agreement, irrespective of the reason for its termination, until a date that is ten (10) years
following the date the City furnishes the Operator a Certificate of Completion;provided however that
nothing in this provision is intended to extend the statute of limitations by which any party other than
the City can bring their claim.
7.7 In addition to the indemnity provided in Section 7.6, Operator hereby agrees to
indemnify, defend, protect and hold the City harmless from and against any and all liability,
damages, penalties, claims, suits, actions, proceedings, loss, cost or eXpense (including, but not
limited to, attorney's fees and court costs) arising out of the failure of Operator to comply with the
Prevailing Wage Law (Labor Code section 1720 et seq.) including, but not limited to, the payment
of prevailing wages, if required by law in connection with the activities authorized by this
Agreement. Operator further agrees to waive all claims and causes of action it may have against City
pursuant to Labor Code section 1781.
7.8 Insurance Rec�uirements and Publie Safety Protections. Operator shall promptly take
steps to protect the public from the risk of injury whether from the condition of the Property or
Operator's activities in connection with the Property. The Operator sha11 obtain and maintain, or
require the eontractor and subcontractors for the Project to purchase and maintain the following
insurance for claims which may result from the operations under the Agreement of the Operator, any
contractor, subcontractor or anyone directly or indirectly employed by any of them, or by anyone for
whose acts any of them may be liable:
7.8.1 Operator Insurance Requirements. Operator shall procure and maintain for
the duration of the Agreement insurance against claims for injuries to persons or damages to property
which may arise from or in connection with Operator's activities hereunder. The cost of such
insurance shall be borne by Operator. Operator shall maintain the following noted insurance:
Coverage Required Not Required
CommerCial General I,lability X (if General Contractor does not carry)
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder's Risk/Course of Construction X {Dur�ng construction)
Hazard/All Risks X (Following Construction)
7.8.1.1 Course of Construction/Builder's Risk Insurance. Operator shall
provide proof of Course of ConstructionBuilder's Risk Insurance providing coverage for "all risks"
of loss during the construetion phase of the Project in the amount of the combined total of the City
and Other Financing as stated in Section 3.1 and 3.3 of this Agreement.
'7.8.1.2 Hazard Insurance. Fol�owing completion of construction, Operator
sha11 keep the improvements now existing or hereafter erected on the Project Site insured for full
replacement value against loss by fire, hazards included within the term "extended coverage," and
such other hazards as the City may require and in such amounts for the full remaining term of the
Agreement.
. .� :- r 18 �27
Development Agreement between City and AccessHome
7.8.2 General Contractor Insurance Requirements. During the course of
construction, the General Contractor shall maintain the following noted insurance:
Coverage Required Not Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder's Risk/Course of Construction X
Hazard/All Risks X
7.8.2.1 Minimum Scope and Limits of Insurance. Coverage shall be at least
as broad as:
(a) Insurance Services Office form number CG-0001, Commercial General
Liability Insurance, in an amount not less than $1,000,000 per occurrence $2,000,000 general
aggregate for bodily injury, personal injury and property damage;
(b) Insurance Services Office form number CA-0001, Comprehensive
Automobile Liability Insurance, which provides for total limits of not Iess than $1,000,000 combined
single limits per accident applicable to all owned/non-owned and hired vehicles;
(c) Statutory Workers Compensation required by the Labor Code of the State
of California and Employers' Liability Insurance in an amount not less than $1,000,000 per
occurrence. Both the Workers Compensation and Employers' Liability policy shall contain the
insurer's waiver of subragation in favor of the City, their respective elected officials, officers,agents,
employees and volunteers;
(d) Deductibles and Self-Insured Retentions: Any deductibles or self-insured
retentions, and any modifications thereof, must be declared to and approved by the Risk Manager of
the City of Redding.
7.8.3 Other Insurance Provisions. All policies required by this Agreement are to
contain or be endorsed to contain the following provisions:
For General Liability and Automobile Liability coverages: �
a) The City, its elected officials, officers, employees, agents, and
volunteers are to be covered as additional insureds as respects: liability arising out of work or
operations performed by or on behalf of Operator and/or Contractor; premises owned, leased, or used
by Operator and/or Contractor; or automobiles owned, leased, hired, or borrowed by Operator and/or
Contractor. The coverage shall contain no special limitations on the scope of protection afforded to
the City, its elected officials, officers, employees, agents, or volunteers.
b) The insurance coverage of Operator and/or Contractor shall be
primary insurance as respects the City, its elected officials, officers, employees, agents, and
volunteers. Any insurance or self-insurance maintained by the City, its elected officials, officers,
employees, agents, or volunteers shall be in excess of Operator's and/or Contractor's insurance and
shall not contribute with it.
Each insurance policy required by this Agreement shall be endorsed to state that
coverage shall not be cancelled except after thirty (30) Days prior written notice has been given to
the City Risk Manager.
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Development Agreement between City and AccessHome
7.8.4 Acceptability of Insurers. Insurance is to be placed with insurers with a
Bests' rating of no less than A-VII. This requirement may, however, be waived in individual cases
provided,however, in no event will a carrier with a rating below B: IX be acceptable.
7.8.5 Verification of Covera�e. Operator shall be responsible for furnishing the
City's Risk Manager with all certificates of insurance and original endorsements affecting specific
coverage required by this Agreement. The certificates and endorsements for each insurance policy
are to be signed by a person authorized by the insurer to bind coverage on its behalf. The City may
withhold Project payments if required certificates of insurance and endorsements have not been
provided. The City's Risk Manager reserves the right to require complete certified copies of all
required insurance policies.
7.8.b Deductibles and Self-Insured Retentions. Any deductibles or self insured
retentions must be declared to and approved by the City's Risk Manager.
'7.9 Failure to Maintain. If the Operator fails to obtain or maintain, or cause to be
obtained and maintained, any insurance required by this Agreement, the City shall have the right to
purchase the insurance and add to the principal amount of the City Loan the full costs to City of
obtaining such insurance.
8. Prohibitions A�ainst Assignment and Transfer.
81 Prohibition Against Transfer of Ri�hts or Obli ations. The City has entered into this
Agreement in reliance upon the identities and qualifications of the Operator. The Operator may not
assign or otherwise transfer Operator's rights or obligations under this Agreement without the prior
written consent of the City.
8.2 Transfer of Interest. The Operator represents that it has informed its members, and
the Operator sha11 inform any successors in interest of the provisions of this Section 8. Subject to
restriction of federal and State securities regulation and prior to issuance of a Certificate of
Completion, the Operator shall not permit transfers of ownership which would result in a change in
management authority or decrease in fiscal ability with respect to Operator or, with respect to the
parties in control of the Operator or the degree of such control, by any method or means, including,
but not limited to, sale, transfer, increased capitalization, merger with another corporation, corporate
or other amendments, issuance of additional members or new membership interests or classification
of such interests, or otherwise. With respect to this provision, the Operator the Operator represents
that it has the authority to agree to and bind Operator to this provision.
8.3 Transfer or Assi n� ment.
8.3.1 Transfer or Assi�nment of Interests, Ri�hts, or Obli�ations in the A�reement.
Except as required to obtain the financing approved by the City, the Operator sha11 not, prior to
issuance of the Certificate of Completion, make any tatal or partial sale, assignment or transfer of
any interest, right or obligation under this Agreement without the prior written approval of the City.
8.3.2 Transfer or Assignment of Interests in the Property. Except as required to
obtain the financing approved by the City, the Operator sha11 not, prior to issuance of the Certificate
of Completion, make any total or partial sale, assignment or transfer of any interest in the Property
without the prior written approval of the City.
8.3.3 One-Time Transfer to Controlled Entitv. Notwithstanding the foregoing, the
City Manager is hereby authorized to approve, in writing, a one-time assignment by Operator of all
,� � v. ?o �2�
Development Agreement between City and AccessHome
of its rights and obligations under the Agreement, and all of its interest in the Property, to a single-
asset corparation, partnership, or limited liability company wholly owned or controlled by Operator,
subject to Operator's compliance with the requirements of this Agreement.
8.3.4 Conditions of A��roval. The City shall be entitled to require the following as
conditions to any approval of any assignment or transfer of any interest in the Property, the
Agreement, or the Operator:
a) Qualifications and Financial Responsibilitv. Any proposed transferee shall
have the qualifications and financial responsibility, as determined by the City, necessary and
adequate to fulfill Operator's obligations under the Agreement.
b) Assumption of Obli ations. Any proposed transferee sha11, for itself and its
successors and assigns, expressly assume all of Operator's obligations under the Agreement and shall
agree to be subject to all the conditions and restrictions to which the Operator is subject. Said
assumption of obligations shall be in writing in recordable form approved by the City and shall
expressly be for the benefit of the City. The fact that any such transferee sha11 not have assumed such
obligations or so agreed, shall not relieve such transferee from such obligations, conditions, or
restrictions, or deprive the City of any rights or remedies or controls with respect to all or any part of
the Property or this Agreement that the City would have had, had there been no such transfer or
change.
c) Review of Documents. The Operator shall submit to the City for review and
approval all legal documents involved in effecting such transfer. Such documents shall be subject to
the City's prior written approval.
d) Limits on Consideration. Prior to issuance of the Certificate of Completion,
the consideration payable for the transfer by such transferee of any interest in the Agreement shall
not exceed the actual costs incurred for the Project, if any, actually made. It is the intent of this
provision to preclude assignment of the Agreement or transfer of the Property for profit prior to the
completion of the Project. The transferee's obligation to pay any excess to the City may be satisfied
by the transferee's assumption of the City Promissory Note.
e) Other Conditions. The Operator and such transferee shall comply with such
other conditions as the City may find necessary and reasonable in order to achieve and safeguard the
purposes of the Agreement.
8.3.5 Operator Obli�ations Not Relieved. In the absence of specific written
agreement by City to the contrary, no sucl� transfer or approval of transfer by City shall relieve the
Operator, or any other party bound in any way by the Agreement, from any of its obligations under
the Agreement.
9. Financing Defaults.
9.1 Lender's Option to Cure Defaults. After any default of Operator's
obligations under the Agreement, each Lender (or successor to Lender) sha11 have the right, at its
option, to cure or remedy such default (or to the extent that it relates to the part of the Property
covered by its lien), within the time for cure allowed to Operator as stated in Section 10.1, and to add
the cost of such cure to the debt and the lien secured by the Property. If the breach or default relates
to construction of the Project, however, Lender shall not undertake or continue the construction of
the Project (beyond the extent necessary to conserve or protect Project or construction already made)
unless Lender assumes in writing Operator's obligations to complete the Project on the Property in
the manner provided in the Agreement. Any Lender (or successor to Lender) who properly
�' . < . 21 � �7
Development Agreement between City and AccessHome
completes the Project as provided in the Agreement shall be entitled, upon written request made to
the City, to receive a Certificate of Completion from the City in a manner provided in the Agreement.
9.2 City's Option to Pay Debt. If, after Operator's default under the Agreement
and after sixty (60) Days prior written notice from the City, the Lender fails to exercise its option to
construct the Project or undertakes, but does not make reasonable efforts to diligently pursue to
completion, construction of the Project in accordance with the Schedule of Performance set forth in
Exhibit 10 to this Agreement, the City shall have the option, exercisable only by written notice to the
Lender within ten (10) Days after expiration of the sixty(b0) Day period, to do one of the following:
9.2.1 Pay Debt. The City shall be entitled, at its option, to pay to the
Lender the amount of the secured debt and acquire or terminate Lender's secured position.
9.2.2 Deed in Lieu. If title to the Property has vested in Lender by way of a
deed in lieu of foreclosure, the City shall be entitled, at its option, within sixty (60) Days from notice
to the City of Lender's acceptance of such a deed, to a conveyance to it of the Property upon
payment to Lender of an amount equal to the sum of the following:
a) The secured debt at the time of deed in lieu of foreclosure (less application of rentals
and other income received during foreclosure proceedings).
b) All expenses with respect to the deed in lieu of foreclosure.
c) The costs of Project improvements made by Lender.
9.2.3 Foreclosure. The City shall have the right to bid at any foreclosure
sale held by or for any Lender on the Property.
93 City's Option to Cure Loan Default. In the event of a default prior to the
completion of the Project by the Operator, or any successor in interest to the Operator by reason of
any of its obligations under any mortgage or other instrument creating an encumbrance or lien upon
the Property, the City may at its option cure such default or breach following the expiration of any
applicable cure period (or sooner upon notice to the Operator), in which case the City shall be
entitled, in addition to any of its other rights or remedies, to reimbursement from the Operator of all
costs and expenses incurred by the City in curing such default and to a lien upon the Property for
such reimbursement, provided that any such lien shall be subject always to the lien of any then
existing liens on the Property authorized by this Agreement (including any Iien contemplated,
because of advances yet to be made).
9.4 Inclusion in Loan and Security Instruments. Either City's rights or remedies
under this Section shall be included in all loan and security instruments of Lender related to the
Property; or City and such Lender shall enter into an intercreditor agreement in a form and substance
acceptable to the City and its counsel, incorporating such rights and remedies.
10. Defaults and Remedies. The provisions of this Section are in addition to any
provisions in the City Deed regarding default and remedies. Subject to any extension of time
permitted by this Agreement, a failure or delay by the City or the Operator to perform any term or
provision of this Agreement constitutes a material default of this Agreement.
10.1 Cure. Except as otherwise provided in the Agreement, if either party defaults in, or
breaches, the Agreement, such party shall cure such default or breach within thirty (30) Days after
receipt of written notice from the other party of such default or breach. If the defaulting party does
not cure or demonstrate to the reasonable satisfaction of the other party that it has acted and
continues to act promptly and diligently to cure the default within such time,the aggrieved party may
declare an "Event of Default" and institute proceedings to cure and remedy such default or breach,
. ,� 22 �27
Development Agreement between City and AccessHome
including, but not limited to, proceedings to compel specific performance by the party in default.
While neither the City nor Operator is relieved of any obligation under this Agreement to give notice,
mere failure to notify the other party shall not be deemed a waiver of the defaulting party's default.
10.2 Termination bv Citv Prior to Completion of Constructian. If, prior to issuance of
Certi�cate of Completion and without City approval, the Operator assigns any interest in the
Agreement or the Property, or permits a change in ownership or control in the Operator in violation
of this Agreement, defaults in its obligations related to the development of the Project as set forth in
the Agreement, abandons or unreasonably suspends construction work on the Project, or permits any
unauthorized encumbrance or lien (including tax liens) and fails to discharge any such unauthorized
lien or encumbrance then the City may elect to tenninate the Agreement at its option or invoke any
other remedy provided in this Agreement, subject to the cure period provided for in Section 10.1. In
such event, the City shall be entitled to damages, without any deduction, offset, or recoupment
whatsoever.
103 City Ri�ht to Propert� In addition to any other rights of the City, in the event of
termination of the Agreement, the City retains fu11 ownership of the Property.
10.4 Other Rights and Remedies of Citv. The City shall have the right to institute such
actions or proceedings as it may deem desirable to carry out the purposes of this Section.
10.5 No Waivin�bv Dela�. Any delay by the City or Operator in asserting any rights
under this Section 10 sha11 not operate as a waiver of such rights or to deprive such party of, or limit,
such rights in any way. Any waiver in fact made by the City or Operator with respect to any specific
default shall not be considered as a waiver of the rights of such party with respect to any other
defaults or with respect to the particular default except to the extent specifcally waived in writing.
10.6 Assi�nment of Contracts; Power of Attorne� Subject to the rights of the
Construction Lender, if any, and upon eXecution by the City of appropriate assignment and
assumption documents, all contracts with Contractors, subcontractors, suppliers and other entities
related to the construction of the Project and all sources of funds for construction of the Project are
irrevocably assigned by the Operator to the City upon City demand after default by the Operator.
10.7 De1ay for Causes Beyond Control of Part� For the purposes of any of the provisions
of the Agreement, neither the City nor the Operator sha11 be considered in breach of, or default in, its
obligations with respect to the preparation of the Property for development, or the beginning,
prosecution, and completion of construction of the Project, if delay in the performance of such
obligations is due to unforeseeable causes beyond the delayed party's control and without its fault or
negligence. Unforeseeable causes shall include acts of God, acts of a public enemy, acts of the State
or Federal Government, acts of the other party, fires, floods, epidemics, discovery of protected
species or historical artifacts upon the Property, quarantine restrictions, strikes, freight embargoes, a
general moratorium on financing for projects of the same type, and unusually severe weather (as for
example, floods, tornadoes, or hurricanes) or delays of subcontractors due to such causes. In the
event of the occurrence of any such enforced delay, the time or times for performance of such
obligations of the City and Operator shall be extended for the period of the enforced delay, as
determined by the City, provided that the party seeking the benefit of the provisions of this Section
shall, within thirty (30) Days after the party has or should have knowledge of any such enforced
delay, have first notified the other party, in writing, of the delay and its cause, and requested an
extension for the period of the enforced delay. In no event, however, shall any period of enforced
delay exceed ninety (90) Days if the party claiming enforced delay has not demonstrated, to the
reasonable satisfaction of the other party, that it has acted and continues to act promptly and
diligently to terminate such enforced delay.
��. 23 �27
Development Agreement between City and AccessHome
10.8 Ri�hts and Remedies Cumulative The rights and remedies of the parties to the
Agreement shall be cumulative, and the exercise by either party of any one or more of such remedies
sha11 not preclude the exercise by it, at the same or different tilnes, of any other such remedies for the
same default or breach or of any of its remedies for any other default or breach by the other party.
The remedies set forth in this Agreelnent shall not be construed to deny either party of any other
rights in law or equity which may be available to it in the event of a breach of this Agreement. No
waiver made by either such party with respect to the performance of any obligation of the other party
or any condition to its own obligation under the Agreement shall be considered a waiver of any rights
beyond those expressly waived in writing.
1 l. General Provisions.
11.1 Time for Actions. The City and the Operator shall each do the actions required of
them, on or before the times specif ed in this Agreement. Unless otherwise provided, the City shall
give required approvals or disapprovals within fourteen (14) Days after submission, except matters
which must be decided by the City Board of Directors or the City Council of the City, which shall be
decided within forty-five (45)Days.
11.2 Counterparts. This Agreement may be signed in counterparts, and is executed in two (2)
duplicate originals, each of which is deemed to be an original and one and the same instrument. This
Agreement includes Pages 1 through 27 and E�ibits 1 through 13, which constitute the entire
understanding and agreement of the parties.
11.3 Priority of Contents of Agreement. In the event of a conflict between the terms of
this Agreement and the Exhibits, this Agreement shall be given precedence.
11.4 Inspection of Books and Records. The City has the right, at all reasonable times and
upon reasonable notice, to inspect the books and records of the Operator pertaining to the Property as
necessary to assure compliance with the provisions of this Agreement. The Operator shall keep such
books and records as the City may reasonably require to assure Operator's performance of its
obligations under this Agreement.
11.5 Fees Commissions Gifts or Interests The City shall not be liable for any real estate
commissions, brokerage fees or finder's fees which may arise from this Agreement. The City and
the Operator each represent that neither has engaged any broker, agent or finder, and that neither
claims such a commission or fee, in connection with this Agreement. The Operator sha11 pay no fee
ar commission, make no gifts and provide no interest in the Loan to any employee or official of the
City or the City of Redding.
ll.6 Entire Agreement. This Agreement and a11 of the attached Exhibits integrate all of
the terms and conditions related or incidental to its subject matter, and supersede all negotiations or
previous agreements between the parties with respect to its subject matter.
11.7 Waivers and Amendments. No waivers, changes, amendments or alterations shall be
effective unless in writing and signed by all parties. However, minor amendments which do not result in
a substantial or functional change to the original intent of the Agreement and do not cause an increase to
the maximum amount payable beyond what is considered substantial under Section 4.2.3, may be agreed
to in writing between Operator and the City Manager or designee.
11.8 Non-liability of City Officials and Employees. No member, official or employee of
the City shall be personally liable to the Operator, or any successor in interest, in the event of any
default or breach by the City or for any amount which may become due to the Operator or its
;t ,; v 2� �27
Development Agreement between City and AccessHome
successors, or on any obligations under the terms of this Agreement.
11.9 Notices and Demands. Any notice, demand or other communication under the
Agreement by either party to the other shall be deemed to have been full and properly given when
made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office,
certified mail, postage prepaid, to the addresses for Operator and City stated in Sections 1.19 and 1.8,
respectively, or delivered by email to the email address listed for the Operator and City in Sections
1.19 and 1.8, respectively, and evidenced by a fax receipt.
11.10 Jurisdiction, Venue and Attorneys' Fees.
11.10.1 Jurisdiction and Venue. Any legal action(s) concerning the Agreement or the
performance of any party there under shall be brought only in the court of appropriate jurisdiction in
the County of Shasta. Both the Operator and the City agree that jurisdiction and venue shall only be
in said courts.
11.10.2 Attorneys' Fees. In the event any legal action, including arbitration, is
brought by either party to this Agreement to enforce this Agreement or for breach of this Agreement
or for a declaration of the rights and duties under this Agreement, the prevailing party shall recover
costs and reasonable attorney's fees in addition to any other relief to which that party may be
entitled.
11.11 The Parties hereby agree that, although the City has received written correspondence dated
May 13, 2021 from Heather McIntire of the State of California Wildlife Conservation Board which
provides that the State has no objection to a residential use on the Property, the City has not gained
an amendment to its Agreement with the State entitled ���� �- _ and executed on
'� which would affirmatively permit the City to sublet to Operator or to record any
docume ts on the title to the Property. As such, the Parties agree that if this Agreement is executed
and the City later deternnines that the State wi11 not, or has not, provided an amendment to the
aforementioned Agreement, the Parties agree to meet and confer in good faith to amend this
Agreement. The amendment shall include, but not be limited to, modification of the tenns of this
Agreement to reflect that the loan of funds eontemplated herein shall not be secured by a deed of
trust recorded on the property and that the Operator shall have an unsecured obligation to rnaintain
al1 affordability covenants consistent with the term and conditions set forth herein.
Operator further agrees to waive all causes of action, claims and liability as against City in the event
that the State later requires Operator and the Park Host to remove from the premises. Owner
assumes all such risk and shall not seek recovery of any remedy at law or equity as against the City.
THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
. _ . 2s �2�
Development Agreement between City and AccessHome
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
City af Redcling, a municipal corporation
Date: '��°`? � �,- �`�'' � .
By: Kristen �chreder, Mayar
A'i TEST: APPROVED AS TO FORM:
�".�� �
By: Pamela � ize, C'i lerk By; arry E. De alt, zty Attomey
Rural Resources Community Development, Inc. dba
AccessHome
r`
$y ��- t �k,_��� '�, �s�,.
Dawn Smith, Executive Director
P �� � e 26�27
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LIST OF EXHIBITS
EXHIBIT 1: Legal Description—John Reginato River Access
EXHIBIT 2: Location Map—John Reginato River Access
EXHIBIT 3: Reserved
EXHIBIT 4: Declaration of Rent Restrictions
EXHIBIT 5: Reserved
EXHIBIT 6: City Promissory Note
EXHIBIT "7: Ground Lease
EXHIBIT 8 Scope of Development
EXHIBIT 8.5: Preliminary Project Plans (Concept Design Package —John Reginato River
Access Park Host Project)
EXHIBIT 9: Project Budget
EXHIBIT 10 Schedule of Performance
EXHIBIT 11: Certificate of Completion
EXHIBIT 12: Notice of Completion
EXHIBIT 13: Section 3
EXHIBIT 14: Fair Housing Poster
,° :t �.. �� 2� �2�
Development Agreement between Ciry and AccessHome
EXHIBIT 1
LEGAL DESCRIPTION
FOR APN/PARCEL ID: 048-400-003-000
Legal Description is pending for the specific portion of the above APN.
ExxIBZT �a�
LEGAL DESCRIPTION
All that real property situated in the City of Redding, County of Shasta, State of California, and
being a portion of Lot 44 as shown on the map of Bonny View Subdivision filed on October 31 S�
1887 in Book of Town Plats at Page 38,Shasta County Records.Being more particularly described
as fallows:
Commencing at Engineer's Station `L' E.C. 152+41.63 as shown on a map entitled "Amending
Record of Survey of the Centerline on South Bonnyview Road",filed November 4`i', 1976 in Book
41 of Land Surveys at Page 26, Shasta County Records;
Thence on and along the `L' line shown on said map Narth 45°22' 25"East 533.54 feet to Station
I58+25.17;
Thence Ieaving said `L' line South 44° 37' 35" East 186.36 feet to the TRUE POINT OF
BEGINNING.
Thence from said point of beginning South 27° 3$' 21"East 7Q.00 feet;
Thenee North 62°21' 40"East 90.00 feet;
Thence North 27° 38' 20"West 70.d0 feet;
Thence South 62°21' 40" West 90.00 feet to the true point of beginning.
Containing 6,300 square feet more or less.
Dimensions shown are ground distances.
Being a Portion of Assessor Parce1048-400-003
Charles Ken Iwamura,City Surveyor Date
PLS 8540
Exhibit 2
John Reginato River Access
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Exhibit 3
Reserved
Exhibit 4
RECORDING REQUESTED BY:
City of Redding
CITY BUSINESS -NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
City of Redding—Housing Division
777 Cypress Avenue
P.O. Box 496071
Redding, CA 96049-6071
CITY OF REDDING
DECLARATION OF RENT RESTRICTIONS
THIS DECLARATION OF RENT RESTRICTIONS (the "Declaration") is entered into the
`h of July 2021, by and between the CITY OF REDDING, a Municipal Corporation
("CITY") and RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC. dba
AccessHome, a California Nonprofit Public Benefit Corporation,
A. ACCESSHOME has a Ground Lease of that certain real properiy ("Real Property" or
"Site") located at 3855 S. Bonneyview Road in the City of Redding, County of Shasta, State of
California, legally described in the attached Exhibit "A." The Ground Lease is the subject of a
Development Funding Agreement dated July , 2021, for the acquisition, operation, and
maintenance of a single-family rental housing project consisting of three bedrooms. The units will be
affordable to Low-Income households to be located on the Real Property as herein defined.
B. The Real Properiy is located in the City of Redding and the financing of the Site for
affordable housing is in the best interest of ACCESSHOME and the CITY, and the health, safety, and
welfare of the residents of the City of Redding.
C. To facilitate affordable low-income rental housing the CITY wishes to place affordable
rent restrictions on the one(1)unit.
NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE
PARTIES AGREE AS FOLLOWS:
1. Number of Units; Income Eligibility. The completed Project consists of one, three (3)
- bedroom housing unit. ACCESSHOME agrees to make available, restrict occupancy to, and rent at an
"Affordable Rent" the unit to "Low-Income Households" as those terms are hereinafter defined for the
period of time described in Paragraph 2. The Low-Income unit is referred to herein as the "Affordable
Unit." ACCESSHOME must maintain the HOME unit (High HOME Unit) throughout the affordability
period.
2. Definitions.
"Extremely Low-Income Households" shall mean a household earning no more than
eighty percent (30%) of Shasta County median income adjusted for household size, as determined by the
United States Department of Housing and Urban Development from time to time, for the HOME
Program and as set forth in 24 CFR Part 92.252 as it eXists as of the date of this Declaration.
"Affordable Rent" shall have the meaning set forth in 24 CFR Part 92.252(HOME rents)
as it exists as of the date of this Declaration, as further defined in Paragraph 3 of this Deciaration.
"Affordability Period" shall mean a period commencing upon the date of recordation of
the HOME Agreement and continuing for twenty-five(25)years.
3. Duration of Affordability of Affordable Units. The Affordable Unit shall remain
available for rent to and occupancy by Low-Income Households at an Affardable Rent throughout the
Affordability Period.
Not withstanding any other provision of law, the covenants and restrictions contained
herein shall run with the land for the duration of the Affordability Period and shall be enforceable,
against ACCESSHOME and/or its successors in interest, by the City, the community andlor others as
allowed by law.
This Declaration of Rent Restrictions shall survive termination of the Development
Funding Agreement and reconveyance of the City Deed of Trust and shall not be subject to
subordination.
4. Determination of Affordable Rent for the Affordable Units. Each Affordable Unit
shall be rented at an Affordable Rent not to exceed the monthly rental amount in accordance with HOME
Final Rule set forth in 24 CFR Part 92.216 and 24 CFR Part 92252. As of the approval of this
Declaration,the following formulas represent maximum monthly Affordabie Rents:
(i) for the Very Low Income Units: One-twelfth (1/12) of thirty percent (30°l0) of fifty percent
(50%)of the area median income adjusted for family size appropriate to the unit applicable to the City of
Redding, as determined by the United States Department of Housing and Urban Development (the
"Applicable Median Income"); and(ii)for the Lower-Income Units: One-tweifth(1112)of thirty percent
(30%) of sixty percent (60%) of the Applicable Median Income adjusted for family size appropriate to
the unit.
5. Monitoring of the Affordable Units. ACCESSHOME, its designee or successor shall
prepare and submit a certification report annually to the CITY during the Affordability Period. The
report shall identify each Affordable Unit, the rental rate, and the ineome and family size of the
occupants, as well as any other project information that is required by the HOME regulations(92.252 and
92.253) and requested by the City. The required income information shall be supplied by the tenant in
the form of source documentation kept at ACCESSHOME's office and shall be available far CITY
review at the CITY's request.
IN WITNESS WHEREOF,the CITY and ACCESSHOME have signed this Declaration on the respective
dates set forth below.
CITY OF REDDING, a Municipal Corporation
By:
Barry Tippin, City Manager
APPROVED AS TO FORM:
BARRY E. DEWALT, City Attorney
By:
RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. dba ACCESSHOME
A California Nonprofit Public Benefit Corporation
By:
Dawn Smith, Executive Director
EXHIBIT "A" to CITY DECLARATION OF RENT RESTRICTIONS
LEGAL DESCRIPTION
FOR APN/PARCEL ID:
LEGAL DESCRIPTION PENDING
EXHIBIT
LEGAL DESCRIPTION
FOR APN/PARCEL ID: 048-400-403-000
Legal Description is pending for the specific portion of the above APN.
Exhibit 5
RECORDING REQUESTED BY:
Ciry of Redding
CITY BUSINESS-NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
City of Redding—Housing Division
P.O.Box 4960'71
'777 Cypress Avenue
Redding,CA 96049-6071
CITY OF REDDING LEASEHOLD DEED OF TRITST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST is made this 18th day of May 2021, by RESOURCES FOR RURAL
COMMUNITY DEVELOPMENT, INC. dba ACCESSHOME, a California nonprofit benefit
corporation, as to equitable title, herein called "Trustor," and/or "Borrower" whose address is 715
Parkview Avenue #l, Redding, CA 96001; PLACER TITLE COMPANY herein called "Trustee,"
whose address is 2145 Larkspur Lane, Suite A, Redding, CA 96002; and the CITY OF REDDING, a
municipal corporation and general law city, whose address is P.O. Box 496071, 777 Cypress Avenue,
Redding, California 96049-6071,herein called"Beneficiary"and/or the"Lender".
WITNESSETH: That Trustor Irrevocably, Grants, Transfers and Assigns, to Trustee, in Trust,
with Power of Sale, that leasehold interest established by the Ground Lease dated , 2021 for
praperiy in the City of Redding("City"), County of Shasta, State of California, described as:
EXHIBIT A-Legal Description
ASSESSOR'S PARCEL NUMBER: 048-400-003-000
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or in the future thereon, .
it being understood and agreed that all classes of property attached or unattached used in connection
herewith shall be deemed fixtures, (b)rents, issues and profits thereof, and(c) all sums of money payable
on the purchase price of said property secured by a lien thereon or payable under any agreement for the
sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred
upon Beneficiary to collect and apply such rents, issues, and profits, and all sums of money payabie on
the purchase price of said property secured by a lien thereon or payable under any agreement.
BORROWER HEREBY expressly acknowledges and agrees that the subject loan, this Deed of
Trust, and the property which serves as security for the Note and Deed of Trust, involves a single-family
residential transaction, one that the Borrower is expressly entering into for the provision of affordable
housing and not for profit, and not in any way related to Borrower's home or residence. As such,
Borrower further acknowledges and agrees that Lender likewise is making this loan on the aforesaid
basis, and thus intends to enforce any and all of its rights accordingly.
FOR THE PURPOSE OF SECURING:
1. Payment of the sum of Three Hundred Thirty-Seven Thousand One Hundred
Ninety-six No/100 Dollars ($337,196) with interest thereon accarding to the terms of a certain
Promissory Note of even date herewith, designated as the "Residual Receipts Pramissory Note"made by
Trustor, payable to the order of the Beneficiary and extensions or renewals thereof.
2. Payment of such additional sums with interest thereon as: (a)may be hereafter borrowed
from the Beneficiary by the then record owner or owners of said property when evidenced by another
Promissory Note or Notes reciting that they are secured hereby, or (b) as may be added to the
indebtedness secured hereby in accordance with the provisions of this Deed of Trust.
3. Performance of each and every obligation, covenant, promise, or agreement of Trustor
contained herein.
4. Payment, with interest thereon, of any other present or future indebtedness or obligation
of the Trustor (or of any successor in interest of the Trustor to said properly) to the Beneficiary reciting
that they are secured hereby, whether created directly or acquired by assignment, whether absolute or
contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the
execution of the Deed of Trust, or arising thereafter.
5. Performance of each agreement of Trustor contained in any Development Funding
Agreement (including without limitation the Exhibits thereto) entered into between Trustor and
Beneficiary for the development, construction of improvements, adoption of rent restrictions or other
affordability covenants, or operation of certain activities on the above-described property.
6. The whole of the Promissory Note shall be nonrecourse to Borrower.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR AGREES:
l. To keep said property in good condition and repair; to allow Beneficiary or its
representatives to enter and inspect the premises at all reasonable times and access thereto shall be
permitted for that purpose; not to remove or demolish any building thereon; not to make alterations
thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the
occupancy of the prernises without Beneficiary's written consent; to complete or restore promptly and in
good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon,
including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay
when due all claims for labor performed and materials furnished in conneetion with such properiy and
not to permit any mechanic's lien against such property; to comply with all laws affecting such property
or requiring any alterations or improvements to be made thereon; not to initiate ar acquiesce in any
zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not
to commit, suffer, or permit any act upon such property in violation of the law; and to paint, cultivate,
irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property
may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or
conditional sale of all fixtures, furnishings, and equipment located thereon.
If the loan secured hereby or any part thereof is being obtained or should any additional loan be
made hereafter for the purpose of financing rehabilitation improvements or construction of affordable
housing on said property, Trustor further agrees, anything in this Deed of Trust to the contrary
notwithstanding: (a)to compiete the same in accordance with City approved plans and specifications
satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during
City of Redding Deed of Trust Page 2 of 9
rehabilitation; (c) to replace any work ar materials unsatisfactory to Beneficiary within fifteen (15)
calendar days after written notice from Beneficiary of such fact,which notice may be given to Trustor by
registered or certified mail, sent to its last known address, or by personal service of the same; (d) that
work shall not cease on the construction of such improvements for any reason whatsoever for a period of
fifteen(15) calendar days, whether consecutive or not, without the written permission of the Beneficiary;
(e)to pay when due all claims for labor and materials furnished in connection with the said construction
and/or rehabilitation and not to permit any claiins of lien for said work or material to be �led of'record
against the said property; and (� not to permit any stop notice claims to be presented to Beneficiary. If
the said property is par� of a larger tract upon which improvements will be constructed, Trustar shall
make separate contracts and subcontracts for said construction which shall pertain to the said property
only and shall keep separate, full, and complete records of all work and materials furnished to the said
property. Trustee, upon presentation to it of an affidavit signed by the Beneficiary setting forth facts
showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts
and statements therein and to act thereon hereunder.
2. To provide and maintain in force at all times with respect to said property, tire and other
types of insurance as may be required by Beneficiary. All of sueh insurance shall have a loss payable
endorsement in favor of Beneficiary, shall contain an endorsement that such insurance shall not be
canceled or modified without thirty (30) days advance written notice to Beneficiary, shall be for a term
and in form, content, amount, and with such companies as may be satisfactory to Beneficiary, and the
policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the
faithful performance of Trustor hereunder.
At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies
renewing or extending such expiring insurance sha11 be delivered to Beneficiary together with written
evidence showing payment of the premium therefor and, in the event any such insurance policy and
evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor,
by executing this Deed of Trust, specifically requests Beneficiary to obtain such insurance and
Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing
Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or
company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness
secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance
agency or company, or any other person, any information contained in or extracted from any insurance
policy theretofore delivered to Beneficiary pursuant hereto and any information concerning the loan
secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the
collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case
of insurance loss, Bene�ciary is hereby authorized either (a} upon prior notice to Trustor, to settle and
adjust any claim under the insurance policies provided for in this document without the consent of the
Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be
paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such
insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or
improvements under the terms of any lease ar leases which are or may be priar to the lien of this Deed of
Trust and such damage or destruction does not result in cancellation or termination of such lease, such
proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to
reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said
premises. In a11 other cases, such insurance proceeds, at the option of the Beneficiary, shall either be
appiied in reduction of the indebtedness secured hereby whether due or not, ar in such order as
Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost
of rebuilding or restoring the building or improvements on said premises. Such buildings and
improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same
character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary.
City of Redding Deed of Trust Page 3 of 9
Such application or release sha11 not cure or waive any default ar notice of default hereunder or
invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit
of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder.
3. To pay: (a) all general and special City and County taxes affecting such property; (b)
when due, all special assessments for public improvements, without permitting any improvement bond to
issue for any special assessment; (c)when due, all encumbrances, charges and liens,with interest,on said
properiy, or any part thereof, which are or appears to be prior or superior hereto; (d) if the security of this
Deed of Trust is a leasehold estate, to make any payment or do any act required of the Lessee or its
successor in interest under the terms of the instrument or instruments creating said leasehold; (e) all
costs, fees and expenses of this trust; (� for any statement regarding the obligation secured hereby any
amount demanded by Beneficiary not to exceed the maximum ailowed by law thereof at the time when
such request is rnade; (g) such other charges for services rendered by Beneficiary and furnished at
Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable.
If, by the laws of the United States of America, or of any state having jurisdiction over the
Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor
covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make
any such payment, Beneficiary may elect to make such payment and any amount so paid may be added
by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.
4. That, should Trustor fail to make any payment or do any act as provided in this Deed of
Trust, then Bene�ciary or Trustee, but without obligation to do so and without notice to or demand upon
Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such
manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or
Trustee being authorized to enter upon said property for such purposes; (b) commence, appear in, or
defend any action or proceeding purporting to affect the security hereof or the property covered by this
Deed of Trust, or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest, or
compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or
superior hereto; and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay
his reasonable fees. Trustor agrees to repay any amount so expended on demand of Bene�ciary, and any
amount so, expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a
like rate of interest.
5. To perform each agreement of Trustor contained in any Development Funding
Agreement (including withaut limitation the Exhibits thereto) entered info between Trustor and
Beneficiary for the development, construction of improvements, adoption of rent restrictions or other
affordability covenants, or operation of certain activities on the above-described property.
6. To appear in and defend any action or proceeding purporting to affect the security hereof
or the property whieh is covered by tl�is Deed of Trust, or the rights or powers of Beneficiary or Trustee,
and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of
evidence of title and attorneys' fees in a reasonable sum, in any such action or proceeding in which
Bene�ciary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of
whether the interest of Beneficiary or Trustee in such property is directly questioned by such action,
including any action for the condemnation or partition of said premises, and in any suit brought by
Beneficiary to foreclose this Deed of Trust.
7. To pay immediately and without demand, all sums expended under the terms of this
Deed of Trust by Beneficiary ar Trustee, with interest from the date of expenditure at the rate which the
principal obligation secured hereby bears at the time such payment is made, and the repayment of such
City of Redding Deed of Trust Page 4 of 9
sums shall be secured hereby.
8. That, should the Trustor or any successor in interest to Trustor in such properiy drill or
extract, or enter into a lease for drilling or extraction of oii, gas, or other hydrocarbon substances or any
mineral of any kind ar character, or sell, convey, further encumber, or alienate said property, or any part
thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way,
whether voluntarily or involuntarily, Beneficiary sha11 have the right, at its option, to declare any
indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note
evidencing the same, immediately due and payable, and no waiver of this right sha11 be effective unless in
writing.
9. That any award, settlement, or damages for injury or damages to such property, or in
connection with the transaction financed by such 1oan, and any award of damages in connection with any
condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and
shall be paid to Benefieiary, who may apply or release such monies received by it in such manner and
with the same effect as above provided for the disposition of proceeds of fire or other insurance.
10. That, by aecepting payment of any sum secured hereby after its due date, or by making
any payment, or performing any act on behalf of Trustor, that Trustor was obligated hereunder, but
failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness
seeured hereby, Beneficiary does not waive its right either to require prompt payment when due of all
sums so secured or to declare a default for failure so to pay.
11. That at any time, or from time to time, without liability of the Benefieiary or Trustee
thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust
and any Note secured hereby for endorsement, and without affecting the personal liability of any person
for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of
said properiy for the fu11 amount of the indebtedness then or thereafter secured hereby, or the rights or
powers of Beneficiazy or the Trustee with respect to the remainder of said property, Trustee may: (a)
reconvey any part of said properiy; (b) consent to the making of any map or plat thereof; (c)joiu in
granting any easement thereon; (d)join in any agreement subordinating the lien or charge hereof.
12. That the lien hereof shall remain in full force and effect during any postponement or
extension of time of payment of the indebtedness secured hereby, or any part thereof.
13. That upon written request of Beneficiary stating that a11 sums secured hereby have been
paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and
retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held
hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive evidence of the
truthfulness thereo£ The grantee in such reconveyance may be described as "the person or persons
legally entitled thereto." Such request and reconveyance sha11 operate as a re-assignment of the rents,
issues, royalties and profits hereinafter assigned to Beneficiary. Five (5)years after issuance of such full
reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to
retain them).
14. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues,
and profits of the property affected by this Deed of Trust for the purposes and upon the terms and
conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents
from the property affected by this Deed of Trust, or cause Beneficiary to be (a) "mortgagee in
possession" for any purpose; (b)responsible for performing any of the obligations of the lessor under any
lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or
City of Redding Deed of Trust Page 5 of 9
defective condition of the property affected by this Deed of Trust, or for any negligence in the
management, upkeep, repair, or control of such property. This is an absolute assignment, not an
assignment for security only, and Beneficiary's right to rents, issues, and profits is not contingent upon,
and may be exercised without possession of,the property affected by this Deed of Trust.
Beneficiary confers upon Trustor a license ("License")to collect and retain the rents, issues, and
profits of the property affected by this Deed of Trust as they become due and payable, until the
occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and
Beneficiary may collect and retain the rents, issues, and profits without notice and without taking
possession of the property affected by this Deed of Trust. This right to collect rents, issues and profits
shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and
neither said right, nor termination of the License, shall impose upon City or Trustee the duty to produce
rents, issues, or profits or maintain all or any part of the property affected by this Deed of Trust. If
Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary
shall have the right, with or without taking possession of the property affected hereby,to collect all rents,
issues, royalties, and profits and shall be authorized, and may, without notice and irrespective af whether
declaration of default has been delivered to Trustee and without regard to the adequacy of the security far
the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or
proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess
and enjoy the said property, make, cancel, enforce, and modify leases, obtain and eject tenants, and set
and modify rents and terms of rents, and to sue, and to take, receive and collect a11 or any part of the said
rents, issues, and profits af the property affected hereby, and after paying such costs of maintenance,
operation of said property, and of collection inciuding reasonable attorneys' fees, as in its judgment it
may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues,
royalties, and profits of said property being hereby assigned to Beneficiary for said purposes. The
acceptance of such rents, issues, royalties, and profits shall not constitute a waiver of any other right
which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California.Failure
of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues,
royalties, or pro�ts shall not in any manner affect the subsequent enforcement by Beneficiary of the
right, power and authority to collect the same. The receipt and application by said Beneficiary of all such
rents, issues, royalties, and profits pursuant hereto, after execution and delivery of deciaration of default
and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings
hereunder, shall not cure such breach or default nor affect said sale proceedings, or any sale made
pursuant thereto, but such rents, issues, royalties, and profits, less ali costs of operation, maintenance,
collection, and reasonable attorneys' fees, when r�ceived by Beneficiary, sha11 be applied in reduction of
the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine.Nothing
contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an
affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor a
subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option.
15. That if the security of this Deed of Trust is a leasehold estate,the Trustor agrees that: (a)
the term "Lease" as used herein shall mean the lease creating the "leasehold estate'; (b) Trustor shall not
amend, change, or modify his leasehold interest, or the Lease, or agree to do so, without the written
consent of the Beneficiary; (c) Trustor will promptly advise Bene�ciary regarding any notice, request, or
demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of
any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain
unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not
merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said
estates in any party; (e) Trustor agrees that it wili promptly, strictly, and faithfully perform, fulfill, and
comply with all covenants, agreements, terms, conditions, and provisions under any lease affecting the
premises and to neither do anything, nor to permit anything to be done which may cause modification or
termination of any such lease or of the obligations of any lessee or person claiming through such lease or
the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor
City of Redding Deed of Trust Page 6 of 9
further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any
leasehold esYate that is security for this Deed of Trust. In the event of a violation of any of the covenants
set forth in this paragraph, Bene�ciary sha11 have the right, at its option, to declare all sums secured
hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed
to be a consent to or waiver of any other violation. If the security for this Deed of Trust is a leasehold
estate, the term "said property" as used in this Deed of Trust shall be deemed to mean the leasehold estate
whenever the context so requires for the protection of the Beneficiary.
16. That any default by Trustor in payment of any indebtedness secured hereby or
performance of any covenant or condition set forth in a Development Funding Agreement between
Trustor and Beneficiary shall constitute a default under this Deed of Trust, and upon default by Trustor
under the terms of any encumbrance, charge, or lien which is or appears to be prior or superior heretq
Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of
written declaration of default and demand for sale of written notice of default and of election to cause to
be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also
deposit with Trustee this Deed of Trust and any Notes and ail documents evidencing expenditures
secured hereby. After the lapse of such time as then may be required by law following recordation of
such notice of default, and notice of sale having been given as then required by law, Trustee, without
demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale,
whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the
highest bidder in lawful money of the United States, payable at time of sa1e. Trustee may postpone sale
of all or any portion of said property by public announcement at such time and place of sale, and from
time to time thereafter may postpone such sale by public announcement at the time fixed by the
preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold,
but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact
shall be conclusive evidence of the truthfulness thereof. Any person, inciuding Trustor, Trustee, or
Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and
as part thereof any shares of corporate stock securing the obiigations secured hereby, and Trustor waives
demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by
independent pledge sale, and Trustor waives demand and notice of such sale.) After deducting all costs,
fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this
sale, Trustee shall apply the proceeds of sale to payment, first, of all sums expended under the terms
hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured
hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall
distribute them to the person or persons legally entitled thereto.
17. To waive, to the fuilest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured hereby.
18. That Beneficiary may, from time to time, by instrument in writing, substitute a successor
or successors to any Trustee named herein or acting hereunder, which instrument, executed and
acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where
such property is situated, shall be conclusive proof of property substitution of such successor Trustee or
Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate,
rights, powers, and duties, including but not limited to the power to reconvey the whole or any part of the
property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor,
Trustee, and Beneficiary hereunder, and the book and page where this Deed of Trust is recorded. If
notice of default shall have been recorded, this power of substitution cannot be exercised until after the
costs, fees, and expenses of the then acting Trustee shall have been paid to such Trustee, who shall
endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee
shall not be eXclusive of other provisions for substitution provided by law.
19. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto,
City of Redding Deed of Trust Page 7 of 9
their heirs, legatees, devisees, administrators, executors, transferees, successors, and assigns. The term
Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether
or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the
masculine gender includes the feminine andlor neuter, and the singular number includes the plural.
20. Trustor agrees to file with Beneficiary annually during October of each calendar year a
written operational report which concerns the fiscal year ending ou the immediately preceding June 30th
and conforms to the standards set forth by the Participating Jurisdiction and 24 CFR Part 92 (with respect
to the real property first described in this Deed of Trust)necessary or convenient for Beneficiary to make
the annual reports.
21. That in the event of a demand for, and the preparation and delivery of a written statement
regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil
Code of California (or successor statutes), Bene�ciary shall be entitled to make a reasonable charge, not
exceeding the maximum amount which is permitted by law at the time the statement is furnished.
Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or
rendered in Trustor's behalf in connection with said properiy of this Deed of Trust, including changing
Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the
transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held
by Beneficiary and replacing the same with another such policy.
22. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party
hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor,
Beneficiary, or Trustee shall be a party unless brought by Trustee.
23. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, if said
indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if
and notwithstanding that Trustor shall have defaulted in payment thereof, or in performance of any
agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby
immediately due and payable.
24. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust
secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any
material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness
secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and
payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for
sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by
Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept
as true and conclusive all facts and statements therein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other party
shall be in writing. The mailing thereof must be certi�ed mail addressed to the Trustor at his address
herein above set forth or to the Beneficiary at his of�ce or at such other place as such parties hereto may
designate in writing.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
City of Redding Deed of Trust Page 8 of 9
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any
notice of sale hereunder be mailed to him at his address hereinbefore set forth.
Dated: May 18, 2021
Signature of Trustor(s):
RESOURCES FOR RURAL COMMUNITY DEVELOPMENT,
INC. dba ACCESSHOME, a California nonprofit
public benefit corporation
By:
Dawn Smith, Executive Director
This document must be notarized.
City of Redding Deed of Trust Page 9 of 9
EXHIBIT
LEGAL DESCRIPTION
FOR APN/PARCEL ID: 048-400-003-OOQ
Legal Description is pending for the specific portion of the above APN.
Exhibit 6
RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY LEASEHOLD
DEED OF TRUST
DO NOT DESTROY THIS NOTE:When paid,this note,with Deed of Trust securing same,
must be surrendered to Trustee for cancellation before reconveyance will be made.
Amount: $337,136 ,2021
Loan#: Redding, California
FOR VALUE RECEIVED, RESOURCES FOR RU12AL COMMUNITY DEVELOPMENT,
INC. dba ACCESSHOME, a California Nonprofit Pubiic Benefit Corporation, ("Borrower"), promises
to pay to the order of the City of Redding("Holder"),the principal sum of, pursuant to Section 4 below.
1. Borrower's Obli ation. This promissory note {"Note") evidences Borrower's obligation to
pay Holder the principal amount of Three Hundred Thirty-Seven Thousand One Hundred Ninety-
six No/100 Dollars ($337,196) as funds loaned to Borrower by Hoider to assist with the development of
certain real property ("Project") pursuant to a Development Funding Agreement between Borrower and
Holder dated ("DFA"or"Agreement").
2. Interest. The principal balance of this Note shall bear simple interest from the date of
disbursement until repaid in full at zero percent (0%) per annum; provided, however, if an event of
default occurs, interest on the principal balance shall begin to accrue, as of the date of the disbursement
and continuing until such time as the Loan funds are repaid in full, at the default rate of the lesser of: ten
percent(10%), compounded annually; or the highest rate permitted by law.
3. Term and Re�ayment Rec�uirements. The term of this Note("Term")shall commence with the
date of this Note and shall expire twenty(20)years from said date, at which time the remaining balance of
principal and interest shall be due and payable. However, City's overall intention is to forgive the City
Loan over time. After AccessHome fulfills its twenty(20)year obligation under this Agreement,the City
Loan shall be forgiven in its entirety and the a11 improvements construeted on the Properiy reverted to the
City.
4. Terms of Pavment.
a. All principal and interest payments are payable in lawful money of the United States.
b. All payments on this note shall be paid to the City of Redding at 777 Cypress Avenue,
Redding, California, or to such other place as holder of this note may from time to time designate.
c. Payments shall be based upon the availability of Residual Receipts generated
by the Project as further identified within the Promissory Note and Section 1.44 and 1.45 of the
DFA. Payment in full of the remaining balance of principal and interest, if any, sha11 be due and
payable at the conclusion of the City Loan term.
Annual payments shall be contingent upon the availability of residual raceipt funds. Within ninety (90)
days after the end of each fiscal year during the term of the Note, Borrower shall provide Holder with a
written year-end cash flow analysis and audited financial statement for the Project prepared by a
certified public accountant. Any Residual Receipts realized from the operation of the Project, as
City of Redding Residual Receipts Promissory Note Page 2 of 3
shown by the annual audit, shall provide City with a written year-end cash flow analysis and audited
financial statement for the Project prepared by a certified public accountant. Any such Residual
Receipts received by the Ci�y shall be eredited as a payment on the City Loan and shall be applied
first to reducing the accrued interest, if any, on the loan, and subsequently, to reducing the principal.
Residual receipts for purpose of this Note shall have the meaning scribed to it in the DFA.
d. All payments on this Note shall be without expense to Holder, and Borrower agrees to
pay all costs and expenses, including reconveyance fees and reasonable attorney's fees of Holder,
incurred in connection with the payment of this Note and the release of any security hereof.
e. Notwithstanding any other provision af this Note, or any instrument securing the
obiigations of Borrower under this Note, if, for any reason whatsoever, the payment of all sums by
Borrower pursuant to the terms of this Note would result in the payment of interest which would exceed
the amount that Holder may legally charge under the laws of the State of California, then the amount by
which payments exceed the lawful interest rate shall automatically be deducted from the principai balance
owing on this Note, so that in no event shall Borrower be obligated under the terms of this Note to pay
any interest which would exceed the lawful rate.
f. The whole of this Note shall be nonrecourse to Borrower.
5. Default.
a. Any of the following shall constitute an event of default under this Note.
1)Any failure to pay, in full, any payment required under this Note when due.
2)Any failure in the performance by Borrower of any term, condition, provision,
or covenant set forth in this Note.
3) The occurrence of any event of default under the DFA, the Deed of Trust, or
the Declaration of Rent Restrictions, (as defined in the DFA).
b. Upon the occurrence of suc11 an event of default and the expiration of the applicable
cure period, the entire unpaid principal balance, together with all interest thereon, and together with all
sums then payable under this Note and the Deed of Trust shall at the option of Holder become
immediately due and payable upon written notice by Holder to Borrower without further demand.
c. The failure to exercise the remedy set forth in subsection Sb above or any other
remedy provided by law upon the occurrence of one or more of the foregoing events of default shall not
constitute a wavier of the right to exercise any remedy at any subsequent time in respect to the same or
any other default. The acceptance by Holder hereof of any payment which is less that the total of all
amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise
any of the foregoing remedies or options at that time or at any subsequent time, or nullify any prior
exercise of any such remedy or option, without the express consent of Holder, except as and to the extent
otherwise provided by law.
6. No Assumption. This Note shall not be assumable by the successors and assigns of Borrower
without the prior written consent of Holder.
7. Securi . This Note is secured by a Deed of Trust and Security Agreement("Deed of Trust"),
of even date herewith, wherein Borrower is the Trustor and Holder is the Beneficiary, covering the
Property.
City of Redding Residual Receipts Promissory Note Page 3 of 3
8. Waivers.
a. Borrower hereby waives diligence, presentment, protest and demand, and notice of
protest, notice of demand, notice of dishonor and notice of nonpayment of this Note. Borrower expressly
agrees that this Note or any payment hereunder may be extended from time to time, and that Holder may
accept further security or release any security for this Note, all without in any way affecting the liability
of Borrower.
b. No extension of time for payment of this Note or any installment hereof made by
agreement by Holder with any person now or hereafter liable for payment of this note shall operate to
release, discharge, modify, change or affect the original liability of Borrower under this Note, either in
whole or in part.
c. The obligations of Borrower under this Note shall be absolute and Borrower waives
any and all rights to offset, deduct, or withhold any payments or charges due under this Note for any
reason whatsoever.
9. Miscellaneous Provisions.
a. Borrower promises to pay all costs and expenses, including reasonable attorney's fees,
incurred by Holder in the enforcement of the provisions of this Note,regardlass of whether suit is filed to
seek enforcement.
b. This Note may not be changed orally, but only by an agreement in writing signed by
the party against whom enforcement of any waiver,change,modification or discharge is sought.
c. This Note shall be governed by and construed in accordance with the laws of the State
of California.
Barrower:
RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. dba AccessHome, a California
Nonprofit Public Benefit Corporation
By:
Dawn Smith
Executive Director
Ground Lease-AccessHome page I
Exhibit 7
GROUND LEASE
WITH
RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC.
DBA ACCESSHOME
PREAMSLE AND RECITALS
This Lease is entered into by and between the CITY OF REDDING, a municipal corporation and
general law city, referred to in this Lease as "City" and RESOURCES FOR RURAL COMMIINIT�
DEVELOPMENT,INC. DBA ACCESSHOME, a California nonprofit corporation,referred to in this Lease as
"Lessee."
A. City holds a General Lease — Public Agency Use (Lease PRC 7550.9) effective Junel,
2011 for the of certain real property in the County of Shasta, S�ate of California, depicted on Exhibit A
and described on Exhibit B and, which are attached and made a part of this lease{referred to in this Lease
as the "Premises"). Said Premises is located at the John Reginato River Access Property.
B. Lessee desires to lease the Premises for the purpose of permanently affixing a single-
family Home and constructing other related improvements (collectively referred to in this Lease as the
"Park Host Home") and as a condition of execution of this Lease, is requiring that certain covenants,
restrictions and conditions as detailed in attached hereto as Exhibit D and by this reference incarporated
herein, shall be recorded against AccessHome leasehold estate in the Property (the "Leasehold Estate")
to impose occupancy and use restrictions on the Property for a period of not less than twenty(20) years
from the Effective Date; and
C. Lessee desires to lease the Property and secure a leasehold interest in the real property on
which it intends to construct the Project; and
D. City desires that the Park Host Home be made available to and occupied by low-income
households.
E. City desires that AccessHome or the occupants of the Park Host Home provide light
caretaking duties for the John Reginato River Access, pursuant to the Park Host Agreement.
AGREEMENT
ARTICLE l. LEASE OF PREMISES AND TERM OF LEASE
1.OL A�reement to Lease. For and in consideration of the covenants to be performed by Lessee
under this Lease, City hereby agrees to lease the Premises to Lessee, and Lessee agrees to lease the
Premises from City, on the terms and conditions set forth in this Lease. Except as expressly otherwise
provided in this Lease, the "Premises" includes the real property plus any appurtenances and easements
described in Exhibits A and B of this Lease, exclusive of any improvements now or hereafter located on
the Premises,notwithstanding that any such improvements may or shall be construed as affixed to and as
constituting part of the described Premises,and without regard to whether ownership of the improvements
Ground Lease-AccessHome pQge 2
is in the City or in the Lessee.
1.02. Term of Lease. The initial term of this Lease shall be for a period of twenty (20) years
commencing on the date the Certificate of Occupancy is issued, with an option to extend upon written
agreement between both parties.
ARTICLE 2. LEASE FEE
2.01. Lease Fee. In lieu of paying a lease fee, Lessee agrees as follows:
A. AccessHome agrees to develop improvements consisting of one(1)three-bedroom,single-
family unit on the Premises. AccessHome sha11 make the unit available to,restrict occupancy to, and rent
to households earning not greater than eighty percent (80%) of the City of Redding's median income
adjusted for househald size, as determined by the United States Department of Housing and Urban
Development {HUD) from time to time, as set forth in Health and Safety Cade Section 50093 at an
affordable rent, including a reasonable utility allowance not to exceed thirty percent (30%) of eighty
percent (80%} of the applicable median income adjusted for family size appropriate to the City of
Redding, as determined by HUD. The unit shall remain available to and occupied by low- or moderate-
income households at an affordable rent for a period commencing upon the date of recording of the
Certificate of Occupancy and continuing for twenty (20) years.
B. AccessHome agrees to provide a minimum of 500 hours per year of volunteer on-site light
caretaking duties as outlined in the John Reginato River Access Park Host Agreement (Exhibit C}.
AccessHome shall execute Exhibit C as a condition precedent to this Ground Lease.
ARTICLE 3. LEFT BLANK INTENTIONALLY
ARTICLE 4. USE OF PREMISES
4.01. Use of Premises.
A. Lessee shall use the Premises for the sole purpose of permanently affixing, maintaining
and utilizing a three-bedroom, single-family, energy-efficient Home which will serve as the on-site Park
Host Home for the John Reginato River Access. Lessee shall have the right to sublet the Premises to
income-eligible households. All subleases for this purpose shall be in writing and shall be reviewed by
the City prior to occupancy of the Park Host Home.
B. The Park Host Home will also serve as a demonstration of use of energy-efficient
building materials and technology in residential construction. The City shall have the right to post
signage on the Premises regarding the building materials and technology utilized in developing the Park
Host Home.
Lessee shall not change the use of the Premises without first obtaining the written consent of the
City.
Ground Lease-AccessHome Page 3
4.02. Compliance With Laws. Lessee shall, at Lessee's own cost and expense, comply with all
statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and
county or municipal, including those requiring capital improvements to the Premises or Park Host Home,
relating to any use and occupancy of the Premises (and specifically not limited to any particular use or
occupancy by Lessee), whether those statutes, ordinances, regulations, and requirements are now in force
or are subsequently enacted. If any license, permit, or other governmental authorization is required for
the lawful use or occupancy of the Premises or any portion of the Premises, the Lessee shall procure and
maintain it throughout the term of this Lease. The judgment of any court of competent jurisdiction, or the
admission by Lessee in a proceeding brought against Lessee by any government entity, that Lessee has
violated any such statute, ordinance, regulation, or requirement shall be conclusive as between City and
Lessee and shall constitute grounds for termination of this Lease by City.
4.03. No Relocation Assistance. Lessee acknowledges and agrees for itself and for a11
occupants of the Park Host Home that Lessee and Lessee's tenants sublessees, successors, or assigns are
not and shall not be eligible for relocation benefits pursuant to the California Uniform Relocation Act
(Government Code section 7260, et seq.) in connection with the displacement of Lessee or Lessee's
tenants due to expiration, termination or cancellation of this Agreement or any subsequent rental
agreement between Lessee and its tenants. All rental agreements relative to the Park Host Home shall
include the following clause:
"I/we understand that the I/we will not qualify as a "displaced person" under any federal
of state law, and that I/we therefore will not be eligible for any relocation benefits for
persons displaced by governmental activities."
4.04. Prohibited Uses. Lessee shall not use or permit the Premises or any portion of the
Premises to be improved, developed, used, or occupied in any manner or for any purpose that is in any
way in violation of any valid law, ordinance, or regulation of any federal, state, county, or local
governmental agency, body, or entity. Furthermore, Lessee shall not maintain, commit, or permit the
maintenance ar commission of any nuisance as now or hereafter defined by any statutory or decisional
law applicable to the Premises or any part of the Premises.
4.05. Conditions and Restrictions. Lessee and any and all occupants of the Park Host Home
shall comply with the John Reginato River Access Park Host Agreement (Exhibit C) and the John
Reginato River Access Park Host Home Conditions and Restrictions (Exhibit D}.
4.06. Hazardous Substances or Materials.
A. Hazardous substances or materials include, but are not limited to:
1. Substances which are flammable, explosive, corrosive, radioactive, toxic;
2. Any material or substances defined as hazardous substances, hazardous materials,
toxic substances, or hazardous wastes in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. Sections 9601, et seq.), the Resource Conservation and Recovery Act
(42 U.S.C. Sections 6901, et seq.), the Hazardous Waste Control Act (California Health & Safety Code
Sections 25100,et seq.)the Hazardous Substance Account Act(California Health& Safety Code Sections
25300, et seq.), California Health and Safety Code Section 25280, et seq., Hazardous Materials Release
Response Plans and Inventory or the California Porter-Cologne Water Quality Control Act, (Water Code
Ground Lease-AccessHome Page 4
Sections
1300Q, et seq.), and all amendments to these laws and regulations adopted or publications promulgated
pursuant to these 1aws;
3. Those asbestos-containing materials defined and described in Environmental
Protection Agency Report No. 56/5-85-024 (June 1985)whether or not friable, or any related or successor
report, or other applicable government regulations defined or describing such materials;
4. Pesticides as defined by Section 136(u) of FIFRA (7 U.S.C. Section 136) as may
be present in soil or groundwater;
5. "Hazardous wastes"as defined in Section 25117 of the California Health and Safety
Code, or as a chemical that is known to the State of Califarnia"to cause cancer or reproductive toxicity"
under the Safe Drinking Water and Toxic Enforcement Action of 1986, California Health and Safety Code
Sections 25249.5, et seq.; and
6. Hazardous materials, substances or waste, or toxic materials, substances or waste
as those terms or similar terms are defined by any other federal, state or locallaw or regulation or orders.
B. Lessee agrees to indemnify, protect, hold harmless, and defend City, its elected officials,
officers, employees, agents and volunteers from and against any and all liability, including without
limitation, (1)all foreseeable and unforeseeable consequential damages,directly or indirectly arising from
the use generation, storage, or disposal of hazardous materials by Lessee, and (2)the cost of any required
or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans,
to the full extent that such liability is attributable, directly or indirectly,to the presence of usa,generation,
storage, release, threatened release, or disposal of hazardous materials by Lessee, its officers, employees,
agents and/or invitees on the Premises after the beginning of the term of this Agreement.
C. Lessee releases City from any and all claims Lessee may have against City of whatever
kind or nature resulting from or in any way connected with the environmental condition of the Premises,
including any and all claims Lessee may have against City under the Comprehensive Environmental
Response,Compensation,and Liability Act of 1980,as amended("CERCLA"),or any other federal,state,
or local law, whether statutory or common law, ordinance, or regulation pertaining to the release of
hazardous materials into the environmental from or at the Premises. Lessee expressly waives the benefits
of Civil Code Section 1542, which provides as follows:
A general release does not extend to claims which the creditor does not know or expect to
exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.
D. Lessee's obligations under this Section shall survive termination or expiration of this
Agreement.
ARTICLE 5. TAXES AND UTILITIES
S.Q1. Taxes. Lessee is advised that,pursuant to Revenue and Taxation Code §107.6,a possessory
interest subject to taxation may be created by the grant of this lease and that Lessee may be subject to the
payment of property taxes levied upon the interest. Lessee shall promptly pay before delinquency any
taxes and/or special assessments assessed against the Premises and any improvements and/or Lessee's
Ground Lease-AccessHome Page 5
personal property, and any possessory interest tax levied by reason of its use and/or occupancy of the
Premises. On demand from the City, Lessee shall furnish the City with satisfactory evidence of these
payments.
5.02. Proration of First and Last Year Taxes. Notwithstanding the provisions of Section 5.01
of this Lease, all taxes, assessments, or other charges levied or assessed during the tax years in which the
term of this Lease commences and ends for which City is liable sha11 be prorated between City and Lessee
as of 12:01 a.m. on the date the term commences and on the date the term ends, respectively, on the bases
of tax years that commence on July 1 and end on June 30 of each year.
5.03. Utilities. Lessee shall pay or cause to be paid, prior to delinquency any and a11 utilities
furnished to the Premises, including without limitation gas, water, electricity,telephone service, and other
public utilities to the Premises during the term of this Lease and for the removal of garbage and rubbish
from the Premises during the term of this Lease. Lessee shall hold the City free and harmless from all
charges for the furnishing of utilities to the Premises.
S.Q4. Payment by Lessor. Should Lessee fail to pay any taxes, assessments, or other charges
required by this Article to be paid by Lessee, City may, without notice to or demand on Lessee, pay,
discharge, or adjust that tax, assessment, or other charge for the benefit of Lessee. In that event, Lessee
shall promptly on written demand of City reimburse Lessor for the full amount paid by City in paying,
discharging, or adjusting that tax, assessment, or other charge together with interest thereon at the
then-maximum legal rate from the date of payment by City until the date of repayment by Lessee. If this
Article does not specify the time within which Lessee must pay any charge required by this Article,Lessee
shall pay that charge before it becomes delinquent.
ARTICLE 6. CONSTRUCTION BY LESSEE
6.01. Duty ta Construct. Lessee sha11, at Lessee's sole cost and expense, permanentiy affix on
the Premises, a three-bedroom, single-family Home and covered parking, landscaping, and other related
improvements (the"Park Host Home"), in the manner and according to the terms and conditions specified
in this Article, and the Development Agreement executed on , and pursuant to the terms
and conditions set forth by the City of Redding Development Services Department. The duty to construct
for the Park Host Home and any other improvements includes the duty for site preparation, including the
removal, if necessary, of any buildings or other structures located on the Premises, the installation or
relocation of any utilities and the obtaining of any and all necessary permits, including building and
planning permits.
6.02. Requirement of City's Written Approval.
A. Nothing contained in this Article 6 is intended to address the requirements or timing of the
City of Redding Development Services Department. The City's approval pursuant to this Section is not
intended to be, nor shall it be deemed to be, approval for purposes of receiving a building or use permit.
B. No structure or other improvement of any kind shall be constructed on the Premises unless
and until the plans, specifications, and proposed location of that structure or improvement have been
approved in writing by the City. The submission of plans for the City's appraval is for review of
preliminary site layout plans and building elevations and is not intended to be nor sha11 it be deemed a
submission for purposes of receiving a building or use permit. Furthermore, no structure or other
Ground Lease AccessHome Page 6
improvements shall be constructed on the Premises that do not comply with plans, specifications, and
locations approved in writing by City.
6.03. All Work Under Direction and Supervision of Licensed Contractor. All work
required in the construction of the Park Host Home and other improvements, including site preparation
work, landscaping work, and utility installation work, as well as actual construction work on the Home
and other improvements, shall be performed under the direction and supervision of a competent
contractor(s) licensed and in good standing under the laws of the State of California. Such contractor(s)
may be an employee of Lessee and shall have a current class B General Contractor's license issued by the
State of California.
A. Lessee shall record that Certificate of Completion promptly within the time specified by
1aw for the recording of that notice; and
B. Lessee shall settle and discharge a111iens of record claimed by persons who supplied either
labor or materials for the construction of the Park Host Home and other improvements.
6.04. Compliance With Law and Standards. The Park Host Home shall be permanently affixed
and other improvements shall be constructed, all work on the Premises shall be performed, and all
buildings or other improvements on the Premises shall be erected in accordance with a11 valid laws,
ordinances, regulations, and orders of all federal, state, county, or local governmental agencies or entities
having jurisdiction over the Premises;provided,however,that any structure or other improvement erected
on the Premises, including the Park Host Home, shall be deemed to have been constructed in full
compliance with all such valid laws, ordinances, regulations, and orders when a valid final Certificate of
Occupancy entitling Lessee and sublessees, is so authorized, of Lessee to occupy and use the structure or
other improvement has been duly issued by proper governmental agencies or entities. All work
performed pursuant to this Lease,or authorized by this Lease,sha11 be done in a good workmanlike manner
and only with materials of good quality and high standard and in accordance with the final plans agreed
to with the Project Manager specified within the Development Agreement.
6.05. Time for Com�letion. Lessee shall begin substantial construction of the Park Host Home,
pursuant to acquisition of a valid building permit, within six (6) months of the effective date of this
Lease. Lessee shall cause construction of the Home and other improvements to thereafter be diligently
pursued without unnecessary interruption, and shall cause the Home and other improvements to be
completed and ready for occupancy not later than one hundred eighty(180) days after commencement of
its construction. Lessee shall be excused for any delays in construction or commencement of construction
caused by the act of the act of any public enemy, acts of God, the elements, war, war defense conditions,
litigation,strikes,walkouts,or other causes beyond Lessee's control. Lessee shall,however,use reasonable
diligence to avoid any such delay and to resume construction as promptly as possible after the delay.
6.06. Mechanics' Liens.
A. At all times during the term of this Lease, Lessee shall keep the Premises and all
improvements now or hereafter located on the Premises free and clear of allliens and claims of liens for
labor, services, materials, supplies, or equipment performed on or furnished to the Premises.
B. Should Lessee fail to pay and discharge or cause the Premises to be released from any such
lien or claim of lien within twenty (20) days after service on Lessee of written request from City to do so,
Ground Lease-AccessHome Page 7
City may pay, adjust, compromise, and discharge any such lien or claim of lien on any terms and in any
manner that City may deem appropriate unless Lessee is in good faith contesting, opposing or objecting
to such lien or claim of lien in compliance with subsection (C) below. In the event Lessee so fails to pay
and discharge or cause the Premises to be released from any such lien or claim of lien, Lessee shall, on or
before the first day of the next calendar month following any such payment by City, reimburse City for
the full amaunt paid by City in paying, adjusting, compromising, and discharging that lien or claim of
lien, including any attorneys' fees ar other costs expended by City, and late fees and penalty charges, as
appropriate, as shown in City's then current Schedule of Fees,together with interest at the then-maximum
legal rate from the date of payment by City to the date of repayment by Lessee.
C. Lessee sha11 have the right to contest, oppose or object in good faith to the amount or the
validity of any liens and claims of liens for labor, services, materials, supplies, or equipment performed
on or furnished to the Premises, provided that written notice of the contest, opposition or objection must
be given to City at least five(5) days prior to Lessee making or filing the contest, opposition or objection.
Lessee shall be responsible for and shall pay all costs and expenses in any contest or legal proceeding
instituted by Lessee. In no event shall City be subjected to any liability for costs or expenses connected to
any contest, and Lessee agrees to indemnify and hold City harmless from any such costs and expenses.
Furthermore,no such contest, opposition, or objection shall be continued or maintained unless Lessee has
provided to City such further written assurances as City may require within ten(10)days of City's written
request.
6.07. Zonin� and Use. Should it become necessary or appropriate to obtain any building
permit, use permit, variance, rezoning or administrative permit for the Premises in order to construct or
operate the Park Host Home or any other improvements, City agrees to execute any documents, petitions
and applications that may be necessary or appropriate; provided, however, that any such permits,
variances, or rezoning shall be obtained only if consistent with state and local law and at the sole cost and
expense of Lessee and Lessee agrees to defend and indemnify City and the property of City, including the
Premises, from any such cost and expense.
6.08. No Modi�cation Once Comnleted. Once the Park Host Home and other improvement are
completed, Lessee shall not modify or change in any material manner the improvements or Park Host
Home without the prior written consent of City or without securing a11 appropriate and required permits.
Upon receiving such consent, Lessee shall proceed as set forth in this Article.
6.09. Ownershin of Improvements.
A. Title to all improvements, including the Park Host Home, to be placed or constructed on
the Premises by Lessee sha11 be owned by Lessee until expiration of twenty (20) years from the
commencement date of this Lease or earlier termination of this Lease. Lessee shall surrender the
improvements to City at the expiration of the term or earlier termination of this Lease, free and clear of
all liens and encumbrances, other than those, if any, permitted under this Lease or otherwise created ar
consented to by City. Lessee agrees to execute, acknowledge, and deliver to City any instrument
requested by City as necessary in City's opinion to perfect City's right, title, and interest to the
improvements and the Premises. All improvements,including the Park Host Home, on the Premises at the
expiration of the term or earlier termination of this Lease shall and without compensation to Lessee,
become the City's property.
B. Lessee shall have the right to remove such personal property as may be removed without
Ground Lease-AccessHome Page 8
threat to the structural integrity of any building or improvement. If damage results from the removal of
any such items, Lessee shall repair such damage at its sole expense.
ARTICLE 7. REPAIRS AND RESTORATION
7.01. Maintenance bv Lessee.
A. At all times during the term of this Lease, Lessee shall, at Lessee's own cost and expense,
keep and maintain the Premises, all improvements, and all appurtenances now or hereafter on the
Premises, in good order and repair, and in a safe and clean condition. Lessee shall do, or cause to be
done without delay, all those things which, in the opinion of the City, are necessary or desirable in the
interests of safety or to maintain the Premises and the Park Host Home in good repair and appearance.
All damage caused to the Premises and/or the John Reginato River Access by Lessee, its officers,
employees, agents and invitees, sha11 be repaired at Lessee's sole expense.
B. Lessee sha11 not make or cause to be made any alterations or improvements to the Premises
without first securing the written consent of the City. The City may impose restrictions upon any
proposed alterations or improvements. A11 such alterations or improvements shall comply with all
applicable building, zoning and fire codes. Upon the termination of this Agreement, the alterations or
improvements sha11 become the property of the City and shall remain on the Premises.
C. In the event of damage or destruction of all or a portion of the Project rendering the Project
unusable, in whole or in part, AccessHome shall repair such damage or destruction with due diligence,
but only to the extent of the proceeds of the insurance coverage required by this Lease.
D. Lessee shall establish, fund and maintain reserve accounts for the term of this Agreement
as listed below. All such accounts shall be in the name of the Lessee, earn interest, and, unless otherwise
approved in writing by the Community Services Department, insured by an agency of the federal
government or other comparable federal insurance program. All interest earned on a reserve account
shall become a part of the account. Withdrawals from the reserve accounts sha11 require prior written
approval of the Community Services Department. Should the Department fail to take action on a request
for a withdrawal from a reserve account within thirty(30) days of documented receipt of the request, that
request will be deemed approved.
Replacement Reserve Account. Commencing no later than the date funds are disbursed pursuant to the
Loan Documents, Lessee shall establish a segregated replacement reserve account. Lessee shall make
annual deposits from Operating Income to the replacement reserve account in the projected percentage
amounts as set forth unless the City determines, in its sole discretion, that more frequent deposits are
required. Lessee shall also deposit any Development funds designated for replacement reserves into this
account. The amount of the minimum annual deposit may be adjusted, as determined by the Community
Services Department, in its sole discretion, based on the results of reserve studies, performed by an
independent third party at the Lessee's expense as requested by the Department or as based on other
reliable indicators of the need for reserve funds over time.
7.02. Requirements of Governmental A�encies. At a11 times during the term of this Lease,
Lessee, at Lessee's own cost and expense, shall:
Ground Lease f1 ccessHome Page 9
A. Make a11 alterations, additions, or repairs to the Premises or the improvements on the
Premises required by any valid law, ordinance, statute, order, or regulation now or hereafter made or
issued by any federal, state, county, local, or other governmental agency or entity;
B. Observe and comply with all valid 1aws, ordinances, statutes, orders, and regulations now
or hereafter made or issued respecting the Premises or the improvements on the Premises by any federal,
state, county, local, or other governmental agency or entity;
C. Except where Lessee is required by the Development Agreement, incorporated herein by
this reference, to defend, hold harmless and indemnify City and Agency, contest if Lessee, in Lessee's
sole discretion, desires by appropriate legal proceedings brought in good faith and diligently prosecuted
in the name of Lessee, or in the names of Lessee and City when appropriate or required, and when
authorized in writing by City's City Council, the validity or applicability to the Premises of any law,
ordinance, statute, order, or regulation now or hereafter made or issued by any federal, state, county, local,
or other governmental agency or entity; provided, however, that any such contest or proceeding, though
maintained in the names of Lessee and City, shall be without cost to City, and Lessee shall protect the
Premises and City from Lessee's failure to observe or comply during the contest with the contested law,
ordinance, statute, order, or regulation;
D. Indemnify and hold City and the property of City, including the Premises, free and
harmless from any and all liability, loss, damages, fines, penalties, claims, and actions resulting from
Lessee's failure to comply with and perform the requirements of this Section.
7.03. Lessee's Dutv to Restore Premises. If at any time during the Term of this Lease, any
improvements now or hereafter on the Premises are destroyed in whole or in part by fire, theft, the
elements, or any other cause not the fault of City, this Lease shall continue in full force and effect and
Lessee, at Lessee's own cost and expense, shall repair and restore the damaged improvement(s). Any
restoration by Lessee shall comply with original plans for the improvements described in Article 6 except
as may be modified by Lessee to comply with the terms of any sublease of the improvements, or except
as may be otherwise modified by Lessee and approved in writing by City. The work of repair and
restoration sha11 be commenced by Lessee within thirty (30) days after the damage or destruction occurs
and shall be completed with due diligence not later than one hundred eighty (180) days after the work is
commenced. In all other respects, the work of repair and restoration shall be done in accordance with the
requirements for original construction work on the Premises set forth in Article 6 of this Lease. Lessee's
obligation for restoration described in this Section shall exist whether or not funds are available from
insurance proceeds.
7.04. Option to Terminate Lease for Destruction. Notwithstanding Section 7.03 of this Lease,
Lessee shall have the right to terminate this Lease if, during the last five (5) years of the Term of this
Lease, the improvements are damaged or destroyed by a casualty for which Lessee is not required under
this Lease to carry insurance and the cost to repair or restore the damaged or destroyed improvements
exceeds fifty percent(50%)of the fair market value of the improvements immediately priar to the damage
or destruction.
7.05. Ap�lication of Insurance Proceeds. Any and all fire or other insurance proceeds that
become payable at any time during the term of this Lease because of damage to or destruction of any
improvements on the Premises shall be paid to Lessee and applied by Lessee toward the cost of repairing
and restoring the damaged or destroyed improvements in the manner required by Section �.03 of this
Lease, or, if this Lease is terminated pursuant to Section 7.04, paid by Lessee to City less a deduction for
Ground Lease-AccessHome Page 10
any remaining un-amortized value Lessee has in the improvements. For purposes of this Section, Lessee's
"remaining un-amortized value"shall be the full replacement value insurance proceeds required by Article
9 multiplied by a factor the numerator of which is the remaining life of the Initial Term of this Lease and
the denominator of which is the Initial Term of this Lease.
ARTICLE 8. INDEMNITY
8.01. Indemnity. Lessee shall indemnify and defend the City, its officers, officials, employees,
agents and volunteers, against and hold them harmless from any and all claims, losses, damages, civil
penalties, and liability for damages, including attorneys' fees and other costs of defense incurred by the
City, whether for violations of state or federal law committed by Lessee damage to or loss of property or
injury to or death of person(s), including properties of the City and injury to or death of the City's officers,
officials, employees, agents and volunteers, arising out of or resulting from Lessee's possession or use of
the Premises or activities hereunder or from the actions of Lessee's officers, employees, agents and
invitees, unless such damage, 1oss, injury or death is caused by the sole negligence or willful misconduct
of the City.
ARTICLE 9. INSURANCE
9.01. Insurance Requirements for Lessees. Lessee shall procure and maintain from an
insurance company authorized to do business in the State of California, for the duration of the Agreement,
insurance for claims for injuries to persons or damages to property which may arise from or in connection
with the Lessee's operation and or use of the leased premises by the Lessee, it's members, agents,
representatives, employees, contractors, subcontractors, and invitees. The cost of such insurance shall be
borne by the Lessee. Coverage shall be at least as broad as:
Coverage Required Not Required
Commercial General Liability x
Comprehensive Vehicle Liability x
Workers Compensation and Employee Liability x
Builder's Risk/Course of Construction x
Hazard/A11 Risks x
(A) Minimum Scope and Limits of Insurance: Coverage shall be at least as broad as:
1) Insurance Services Office form number CG-0001, Commercial General Liability
Insurance, in an amount not less than $1,000,000 per occurrence $2,000,000 general aggregate for bodily
injury,personal injury and property damage;
2) Insurance Services Office form number CA-0001, Comprehensive Automobile
Liability Insurance, which provides for total limits of not less than$1,000,000 combined single limits per
accident applicable to all owned/non-owned and hired vehicles;
3) Statutory Workers Compensation required by the Labar Code of the State of
California and Employers'Liability Insurance in an amount not less than$1,000,000 per occurrence. Both
the Workers Compensation and Employers' Liability policy shall contain the insurer's waiver of
subrogation in favor of the City and Agency,their respective elected officials, officers, agents, employees
Ground Lease AccessHome Page 11
and volunteers;
4) Course of Construction/Builder's Risk Insurance: Operator shall provide proof of
Course of Construction/Builder's Risk Insurance providing coverage for "all risks" of loss during the
construction phase of the Project in the amount of the combined total of the City Assistance and Agency
Assistance as stated in Sections 2.2 and 2.3 of this Agreement.
5) Hazard Insurance: Following completion of construction, Operator shall keep the
improvements now existing or hereafter erected on the Site insured for full replacement value against
loss by fire, hazards included within the term "extended coverage," and such other hazards as the City
and/or Agency may require and in such amounts for the full remaining term of the Agreement.
(B) Other Insurance Provisions: The policies are to contain or be endorsed to contain the
following provisions:
1) For General Liability and Automobile Liability coverages:
a) The City and the Agency, their respective elected officiais, officers,
employees, agents, and volunteers are to be covered as additional insureds as respects: liability arising out
of work or operations performed by or on behalf of Operator;premises owned,leased,or used by Operator,
or automobiles owned, leased, hired, or borrowed by Operator. The coverage shall contain no special
limitations on the scope of protection afforded to the City and the Agency,their respective elected officials,
officers, employees, agents, or volunteers.
b) The insurance coverage of Operator shall be primary insurance as respects
the City and Agency, their respective elected officials, officers, employees, agents, and volunteers. Any
insurance or self-insurance maintained by the City and/or the Agency, their respective elected officials,
officers, employees, agents, or volunteers shall be in excess of Operator's insurance and shall not
contribute with it.
2) Each insurance policy required by this Agreement shall be endorsed to state that
coverage shall not be cancelled except after thirty (30) days prior written notice has been given to the
entity.
(C) Acceptability of Insurers: Insurance is to be placed with insurers with a Bests' rating of
no less than A-VIL This requirement may, however, be waived in individual cases provided, however,
in no event wi11 a carrier with a rating below B:IX will be acceptable.
(D) Verification of Coverage: Operator shall furnish the City's Risk Manager with certificates
of insurance and with original endorsements affecting coverage required by this Agreement. The
certificates and endorsements for each insurance policy are to be signed by a person authorized by the
insurer to bind coverage on its behalf. The City and Agency may withhold payments to Operator if
certificates of insurance and endorsements required have not been provided. The City's Risk Manager
reserves the right to require complete certified copies of all required insurance policies.
(E) Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must
be declared to and approved by the City's Risk Manager.
A. General Liability,for bodily injury,personal injury and property damages,covering no less
than all operations of the Lessee, including, but not limited to, premises-operations, products and
Ground Lease-AccessHome Page l2
completed operations, contractual liability, independent contractors, broad form property damage
(including completed operations), explosion, collapse and underground hazards (if applicable), and
fueling, defueling and refueling operations.
B. Automobile Liability, combined single limits per accident, applicable to all owned, non-
owned, and hired vehicles utilized on the leased premises or the airport apron.
C. Workers' Compensation insurance as required by the State of California and Employer's
Liability insurance. The workers' compensation insurance policy shall contain a waiver of subrogation
in favor of the City, its officers, officials, agents, employees, and volunteers.
D. Property Insurance against all risks of loss to any owned structures or facilities, including
any tenant improvements, betterments, and contents at full replacement value. The property insurance
policy shall contain a waiver of subrogation in favor of City, its officers, officials, agents, employees and
volunteers.
9.07. Accentability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A-:VII.
9.08. Verification of Covera�e. Lessee shall furnish the City with certificates of insurance
and original endorsements effecting coverage required by this clause. The endorsements are to be signed
by a person authorized by that insurer to bind coverage on its behalf.
9.09. Review of Insurance Covera�e. A11 insurance requirements identified in this
Agreement sha11 be re-evaluated every five (5) years for appropriate coverage. After each evaluation,
Lessee is obligated to provide such insurance coverage and minimum limits as required by the City.
ARTICLE 10. RIGHT TO INSPECT
10A1. Right to Inspect.
A. City and its authorized officers, agents, employees, volunteers, contractors, subcontractors
and other representatives shall have the right to inspect the Premises for any purpose, including, but not
limited to the following purposes:
1. To inspect the Premises at reasonable intervals during regular business hours (or at
any time in case of emergency) to determine whether Lessee has complied with or is complying with the
terms and conditions of this Lease; 2.To make repairs, additions or alterations as may be necessary or
convenient for the conduct, safety, improvement or preservation of the John Reginato River Access;
3. For emergency purposes;
4. In the exercise of City's police power; and
5. To inspect the Premises, on an annual basis, to determine whether the Premises
comply with the Uniform Fire Code. Lessee agrees to annually schedule an inspection with City of
Reddirig's Fire Department personnel and to provide access to the Premises during the inspection period
specified by the Fire Department. Furthermore, The Housing Division, through its duly authorized
Ground Lense AccessHome Page 13
agents, shall have, at any time, with reasonable note to AccessHome and without interfering with tenants,
the right to enter the Property for the purpose of inspecting, monitoring and evaluating the obligations of
Lessee hereunder and for the purpose of doing any and all things with it is obligated and has a right to
do under this Lease.
B. No entry by or on behalf of City within or upon the Premises shall cause or constitute a
termination of the Lease, or be deemed to constitute an interference with Lessee's possession thereof.
ARTICLE 11. SUBLET OR ASSIGNMENT
11.01. Subleasin� and Assi�nment. Lessee shall not voluntarily assign, encumber or sublet its
interest in this Lease or in the Premises, or a11ow any other person or entity (except its authorized
representatives and tenants as authorized pursuant to Section 4 of this Agreement)to occupy or use all or
any part of the Premises, without first obtaining the City's prior written consent. Any assignment or
encumbrance without the City's consent shall be voidable and, at the sole election of the City, sha11
constitute a default of this Lease. No consent to any assignment or encumbrance shall constitute a further
waiver of the provisions of this paragraph.
ARTICLE 12. INVOLUNTARY ASSIGNMENT
12.01. Involuntary Assi�nment. No interest of Lessee in this Agreement shall be assignable by
operation of 1aw.
A. Each of the following acts shall be considered an involuntary assignment:
l. If Lessee is or becomes bankrupt (whether voluntary or involuntary) or insolvent,
makes an assignment for the benefit of creditors, or institutes a proceeding under the Bankruptcy Act in
which Lessee is the bankrupt; or, if Lessee is a partnership or consists of more than one person or entity,
if any partner of the partnership, or other person or entity, is or becomes bankrupt (whether voluntary or
involuntary) or insolvent, or makes an assignment for the benefit of creditors;
2. If a writ of attachment or execution is levied on this Agreement;
3. If, in any proceeding or action to which Lessee is a party, a receiver is appointed
with authority to take possession of the Premises; or
4. The abandonment or discontinuance of occupancy of the Home by Lessee, or the
failure to conduct any service, operation or activity permitted by this Agreement. If this condition exists
for a period of fifteen (15) days without the prior written consent of the City, it will constitute an
abandonment of the land, facility or location, and this Agreement shall become null and void.
B. An involuntary assignment sha11 constitute a default by Lessee, and the City sha11 have the
right to elect to terminate this Agreement. In no event shall this Agreement be deemed or treated as an
asset of Lessee.
ARTICLE 13. DEFAULT AND REMEDIES
Ground Lease-AccessHome Page 14
13.01. Lessee's Default.
A. The occurrence of any of the following shall constitute a material breach or default by
Lessee under this Lease:
1. Lessee's failure to provide light caretaking for the John Reginato River Access as
required under this Lease if the failure continues for thirty(30)days after written notice of the failure from
City to Lessee;
2. Lessee's failure to provide any instrument or assurance as required by this Lease if
the failure continues for ten(10) days after written notice of the failure from City to Lessee;
3. Lessee's failure to perform any other obligation under this Lease if the failure
continues for thirty (3Q) days after written notice of the failure from City to Lessee, except in those
instances where the cure would require more than thirty(30)days and Lessee is diligently seeking to cure
the default, then the time shall be a reasonable period of time for the given circumstances;
4. To the extent permitted by 1aw:
a. A general assignment by Lessee or any guarantor of the Lease for the benefit
of creditors;
b. The filing by or against Lessee, or any guarantor, of any proceeding under
an insolvency or bankruptcy law, unless (in the case of an involuntary proceeding) the proceeding is
dismissed within sixty(60) days;
c. The appointment of a trustee or receiver to take possession af a11 or
substantially all the assets of Lessee or any guarantor, unless possession is unconditionally restored to
Lessee or that guarantor within thirty (30) days and the trusteeship or receivership is dissolved;
d. Any execution or other judicially authorized seizure of all ar substantially
all the assets of Lessee located on the Premises, or of Lessee's interest in this Lease, unless that seizure is
discharged within thirty (30) days; ore. The committing of waste on the Premises if such waste
continues or is allowed to remain for thirty(30)days after written notice of the waste from City to Lessee,
except in those instances where the cure would require more than thirty(30) days and Lessee is diligently
seeking to cure the default,then the time shall be a reasonable period of time for the given circumstances.
13.02. Citv's Remedies on Lessee's Default. On the occurrence of a default by Lessee, City
shall have the right to pursue any one or more of the remedies set forth in Sections 13.03 and 13.04 in
additian to any other remedies now or later available to City at law or in equity. These remedies are not
exclusive but cumulative.
13.03. Termination of Lease. Upon the occurrence of a default that is not timely cured by
Lessee, City may immediately terminate this Lease and recover possession of the Premises. Once City has
terminated this Lease, Lessee shall immediately surrender the Premises to City. In addition to any other
remedy available to City, as set out in Section 6.12, title to a11 the improvements on the Premises shall
vest in City at the expiration of twenty (20) years from the commencement date of this Lease or earlier
Ground Lease AccessHome Page 1 S
termination of this Lease. On termination of this Lease,City may recover from Lessee all of the following:
A. Any amount necessary to compensate City for all the detriment proximately caused by
Lessee's failure to perform obligations under this Lease,including brokerage commissions and advertising
expenses,expenses of remodeling the Premises for a new Lessee(whether for the same or a different use),
and any special concessions made to obtain a new Lessee; and
B. Any other amounts, in addition to or in lieu of those listed above,that may be permitted by
applicable law.
13.04. Continuation of Lease in Effect. Upon the occurrence of a default that is not timely
cured by Lessee, City sha11 have the remedy described in Civil Code Section 1951.4,which provides that,
when a Lessee has the right to sublet or assign (subject only to reasonable limitations), the City may
continue the lease in effect after the Lessee's breach and abandonment and recover rent as it becomes due.
Accordingly, if City does not elect to terminate this Lease on account of any default by Lessee, City may
enforce all of City's rights and remedies under this Lease, including the right to recover all rent as it
becomes due.
13.OS. Form of Payment After Default. If Lessee fails to pay any amount due under this Lease
within three (3) days after the due date or if Lessee draws a check on an account with insufficient funds,
City sha11 have the right to require that any subsequent amounts paid by Lessee to City under this Lease
(to cure a default or otherwise)be paid in the form of cash,money order,cashier's or certified check drawn
on an institution acceptable to City, or other form approved by City despite any prior practice of accepting
payments in a different form.
13.06. Efforts To Relet. For purposes of this Article 13, Lessee's right to possession sha11 not
be considered to have been terminated by City's efforts to relet the Premises,by City's acts of maintenance
or preservation with respect to the Premises, or by appointment of a receiver to protect City's interests
under this Lease. This list is merely illustrative of acts that may be performed by City without terminating
Lessee's right to possession.13.07. Acceptance of Lease Payment Without Waivin� Ri�hts. Under
Sections 14.15 and 14.16, City may accept Lessee's lease payments without waiving any rights under this
Lease, including rights under a previously served notice of default. If City accepts lease payments after
serving a notice of default, City may nevertheless commence and pursue an action to enforce rights and
remedies under the previously served notice of default without giving Lessee any further notice or demand.
13.08. Lessee's Remedies on City's Default.Lessee waives any right to terminate this Lease and
to vacate the Premises on City's default under this Lease. Lessee's sole remedy on City's default is an
action for damages or injunctive or declaratory relief.
ARTICLE 14. MISCELLANEOUS
14.01. Administration bv Ci . Whenever Lessee is required to secure the approval or consent
of the City pursuant to this Agreement,the City shall mean the City Manager.
14.02. Force Maieure. Except as otherwise expressly provided in this Lease, if the performance
of any act required by this Lease to be performed by either City or Lessee is prevented or delayed by
reason of any act of God, strike, lockout, labor trouble, inability to secure materials, or any other cause
(except financial inability) not the fault of the party required to perform the act, the time for performance
Ground Lease-AccessHome Page 16
of the act will be extended for a period equivalent to the period of delay and performance of the act during
the period of delay will be excused. However, nothing contained in this Section shall excuse the prompt
payment of rent by Lessee as required by this Lease or the performance of any act rendered difficult or
impossible solely because of the financial condition of the party required to perform the act.
14.03. Attorney Fees. In any dispute between the City and Lessee, whether ar not resulting in
litigation, the prevailing party shall be entitled to recover from the other party all reasonable costs,
including without limitation, reasonable attorney's fees. "Prevailing party" shall include without
limitation, a party who dismisses an action for specific performance or for damages in exchange for sums
allegedly due, performance for covenants allegedly breached or consideration substantially equal to the
relief sought in the action, or which receives from the other party, in connection with any dispute,
performance substantially equivalent to any of these.
14.04. No Partnership or Joint Venture. Nothing in this Lease shall be construed to render the
City in any way or for any purpose a partner,joint venturer, or associate in any relationship with Lessee
other than that of City and Lessee, nor shall this Lease be construed to authorize either to act as agent for
the other.
14.OS. Notices. Any notices required to be given under this Agreement shall be in writing and
shall be deemed properly delivered, given or served when personally delivered to the City or Lessee, or
in lieu of such personal service,sent by United States mail,registered or certified,return receipt requested,
addressed as follows:
CITY:
City of Redding
Attention: City Manager
777 Cypress Avenue
P.O.BoX 496071
Redding, California 96049-6071
LESSEE:
Resources for Rural Community Development, Inc. dba AccessHome
'715 Parkview Avenue
Redding, California 96001
In the event of personal service, notice shall be deemed given when personally served. In the
event af service by mail, notice shall be deemed to have been given seventy-two (72) hours after deposit
of same in the United States mail post box in the State of California, postage prepaid, addressed as set
forth above, or upon the date of the signed return receipt, whichever is sooner. Either party may change
its address for the purposes of this section by giving written notice of such change to the other party in the
manner provided in this section.
14.06. California Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California. Any claim or lawsuit pertaining to this Agreement shall be filed and
litigated only in the Superior Court of Shasta County, State of California.
14.0'7. No Third-Partv Bene�ciaries Intended. Unless specifically set forth,the parties to this
Agreement do not intend to provide any other party with any benefit or enforceable legal or equitable right
or remedy.
Ground Lease-AccessHome Page 17
14.08 Bindin� on Heirs and Successors. This Lease shall be binding on and shall inure to the
benefit of the heirs, executars, administrators, successors, and assigns of the parties hereto, but nothing in
this Section shall be construed as a consent by City to any assignment of this Lease or any interest in the
Lease by Lessee except as provided in Article ll of this Lease.
14.09. Partial Invalidity. If any provision of this Lease is held by a court of competent
jurisdiction to be either invalid,void,or unenforceable,the remaining provisions of this Lease shall remain
in full force and effect unimpaired by the holding.
14.10. Time of Essence. Time is expressly declared to be of the essence of this Lease.
14.11. Memorandum of Lease for Recordin�. Neither party, City or Lessee, shall record this
Lease without the written consent of the other. However, City and Lessee shall, at the request of either at
any time during the term of this Lease, execute a memorandum or "short form" of this Lease for purposes
of, and in a form suitable for, recordation. The memorandum or "short form" of this Lease shall describe
the parties, set forth a descriptian of the leased Premises, specify the term of this Lease, incorporate this
Lease by reference, and include any other provisions required by Lender(s).
14.12. FIeadings, Reference and Joint and Several Liability. The titles and headings of the
various Sections of this Lease are intended solely for convenience of reference and are not intended to
explain,modify or place any construction on any of the provisions of this Lease. Masculine and feminine,
or neutral gender and the singular and the plural number shall each be considered to include the other
whenever the context so requires. If either party consists of more than one person,each such person shall
be jointly and severally liable.
14.13. No Party Deemed Drafter. In the event of a dispute between any of the parties hereto
over the meaning of this agreement, no party shall be deemed to have been the drafter hereof, and the
principle of law set forth in Civil Code §1654 that contracts are construed against the drafter shall not
apply.
14.14. Exhibits. The exhibits attached to this lease are incorporated herein by this reference.
14.15. No Waiver. No waiver of any provision of this Lease shall be implied by any failure of
City to enforce any remedy for the violation of that provision, even if that violation continues or is
repeated. Any waiver by City of any provision of this Lease must be in writing. Such written waiver sha11
affect only the provision specified and only for the time and in the manner stated in the writing.
14.16. Acceptance and A�plication of Pavment; Not Accord and Satisfaction. No receipt
by City of a lesser payment than the rent required under this Lease shall be considered to be other than on
account of the earliest amount due,and no endorsement or statement on any check or letter accompanying
a payment or check shall be considered an accord and satisfaction. City may accept checks or payments
without prejudice to City's right to recover all amounts due and pursue all other remedies provided for in
this Lease.
City's receipt of monies from Lessee after giving notice to Lessee terminating this Lease shall in
no way reinstate, continue, or extend the Lease term or affect the termination notice given by City before
Grouncl Lease-AccessHome Page I8
the receipt of those monies. After serving notice terminating this Lease, filing an action, or obtaining final
judgment for possession of the Premises, City may receive and collect any rent due, and the payment of
that rent shall not waive or affect such prior notice, action, or judgment.
14.17. Modi�cation of Agreement. This Lease shall not be altered, amended, or modified
except by a writing signed by the City and Lessee. Should minor modifications or amendments be
warranted, the City Manager or designee shall have full authority to execute such modifications or
amendments without additional City Cauncil approval.
14.18. Authority. Each of the undersigned signatories hereby represents and warrants that they
are authorized to execute this Contract on behalf of the respective parties to this Contract; that they have
fu11 right, power and lawful authority to undertake all abligations as provided in this Contract; and that
the execution, performance and delivery of this Contract by said signatories has been fully authorized by
all requisite actions on the part of the respective parties to this Contract. .
14.19. No Discrimination or Se�re�ation.Lessee shall not discriminate in Lessee's recruiting,
hiring, promotion, demotion or termination practice on the basis of race, religion, creed, color, national
origin, ancestry, sex, age, physical handicap, medical condition, source of income, or marital status with
respect to its use of the Property hereunder, and PC Redding sha11 comply with the provisions of the
California Fair Employment and Housing Act (Government Code Sections 12900 et seq.), the Federal
Civil Rights Act of 1964 (P.L. 88-352), as amended, and all Administrative Rules and Regulations issued
pursuant to said Acts and Orders with respect to its use of the Property.
14.20 Loca�,State and Federai Laws in Construction. Lessee shall carry out the construction
of the Project in conformity with all applicable federal, state and local laws and regulations, including,but
not limited to the California Environmental Quality Act. Lessee represents and warrants that all of the
Project sha11 be constructed in compliance with all laws or regulations with respect to the payment of
prevailing wages as applicable. The City sha11 not have any responsibility whatsoever for the payment
to any contractor or supplier of AccessHome. Following the completion of the initial construction of the
Project, AccessHome, may, from time to time, during the Term of the Lease, make such modifications or
alterations to the Project provided that all construction is in conformity with a11 applicable federal, state
and local laws and regulations, and subject to City approval.
14.21 Incornoration bv Reference. All exhibits and addenda attached hereto are hereby
incorporated into this Lease and made a part hereof. If there is any conflict between such exhibits or
addenda and the terms of this Lease, such exhibits or addenda shall control. Furthermore, the terms and
conditions of the Development Agreement are hereby incorporated by reference and made a part hereof.
14.22. Effective Date of A�reement. The effective date of this Agreement shall be that date that
it shall have been signed by City.
THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
Ground Lease ficcessHome Page 19
CITY OF REDDING
Dated: , 2021
ERIN RESNER, Mayar
ATTEST: APPROVED AS TO FORM:
BARRY E. DeWALT
City Attorney
By:
PAM MIZE, City Clerk
LESSEE
RESOURCES FOR RURAL CQMMUNITY
DEVELOPMENT, INC. DBA ACCESSHOME, a
California Nonprofit Corporation
Dated: , 2021
By:
Tax ID Number
Exhibit A: Site Map
Exhibit B: Legal Description
Exhibit C: John Reginato River Access Park Host Agreement
Exhibit D: John Reginato River Access Park Host Home Conditions and Restrictions
Ground Lease-AccessHome Page 20
Exhibit A
Site Map
1 x ��
� � �� ' � � � ��t
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Ground Lease-AccessHome Page 21
Exhibit B
� Legal Description
Legal Description for the portion of the property allocated to the Park Host site is Pending.
CITY OF REDDING
PARK HOST AGREEMENT
THIS CONTRACT is made at Redding, California,by and between the City of Redding("City"),
a municipal corporation, and Resources for Rural Community Development ("RRCD") for the
purpose of providing a park host presence at John Reginato River Access Property.
NOW, THEREFORE, the Parties covenant and agree, for good consideration hereby
acknowledged, as follows:
SECTION L RRCD SERVICES
A. Subject to the terms and conditions set forth in this Contract, RRCD shall:
1. Assign a"Park Host"to reside on Premises and RRCD shall cause said Park
Host to perform duties as outlined in Exhibit A, attached and incorporated
herein.
2. To the extent passible, each Park Host will reside on the Premises for a period
of six months or more.
3. RRCD shall cause the Park Host to make reports, as outlined in Exhibit A, to
a City of Redding Community Services Department employee.
4. RRCD shall treat all activities of its Park Host as being performed as a
volunteer and not as an agent or employee. Nonetheless, Agency shall give
City three (3) calendar days' advance notice if Park Host plans to take time
away from the Park so that his/her duties can be covered by the City.
SECTION 2. CITY RESPONSIBILITIES
A. Provide a site for a residence to be used by the Park Host (hereafter, "Premises") as
indicated on Exhibit B, attached and incorporated herein.
B. Provide RRCD with a list of emergency contact personnel and phone numbers.
C. Pay all monthly charges for water, sewer, garbage and electrical utilities.
D. Provide a printer/copier/facsimile machine to be used for City-related matters.
Monthly charges attributable to City-related use shall be paid by City.
E. Provide an electric GEM vehicle andlor bicycle for use on City-related matters.
Consulting and Professional Services Agreement Page 1
Rev. 11/13
F. Provide RRCD with a "Park Hast" vest which will be affixed with identification
badges to be worn by Park Host while performing duties set forth herein.
SECTION 3. TERM AND TERMINATION
A. This Contract shall commence on the date of the Contract and shall continue until
terminated herein.
B. City shall have the right to terminate this Contract without cause on thirty (30)
calendar days' written notice.
C. Either Party may terminate for cause if there is a material breach of the obligations
set forth herein which is not cured within thirty(30)calendar days after written notice
is provided of the breach. RRCD hereby recognizes that it has contractual obligations
to City set forth in the dated and that breach
of this Agreement may result in a breach of that other Contract referenced herein.
D. In no event shall the termination or expiration of this Contract be construed as a
waiver of any right to seek remedies in law, equity or otherwise for a Party's failure
to perform each obligation required by this Contract.
SECTION 4. MISCELLANEOUS TERMS AND CONDITIQNS QF CONTI2ACT
A. RRCD hereby agrees and consents that if any claim in law or equity is made with
regard to this Contract, the market value of lodging and utilities provided by City
hereunder may be set-off against the amount of any judgment of penalty to the
maximum extent permitted by law.
B. RRCD shall, during the entire term of this Contract, be construed ta be an
independent contractor and nothing in this Contract is intended, nor shall it be
construed, to create an employer/employee relatiansh'rp, association, joint venture
relationship,trust or partnership or to allow City to exercise discretion or control over
the professional manner in which RRCD performs under this Contract. Any and all
taxes imposed on RRCD's income, imposed or assessed by reason of this Contract or
its performance, including but not limited to sales or use taxes, shall be paid by
RRCD. RRCD shall be responsible for any taxes or penalties assessed by reason of
any claims that RRCD is an employee of City. RRCD shall not be eligible for
coverage under City's workers' compensation insurance plan, benefits under the
Public Employee Retirement System or be eligible for any other City benefit.
C. No provision of this Contract is intended to,or shall be for the benefit of,or construed
to create rights in, or grant remedies to, any person or entity not a party hereto.
D. No portion of the work or services to be performed under this Contract shall be
assigned, transferred, conveyed or subcontracted without the prior written approval
Consulting and Professional Services Agreement Page 2
Rev. 11/13
of City. RRCD shall be the responsible party with respect to all actions of its
independent contractors and park hosts, and shall obtain such insurance and
indemnity provisions from its contractors and subcontractors as City's Risk Manager
shall determine to be necessary.
E. RRCD, at such times and in such form as City may require, shali furnish City with
such periodic reports as it may request pertaining to the work or services undertaken
pursuant to this Contract, the costs or obligations incurred or to be incurred in
connection therewith, and any other matters covered by this Contract.
F. RRCD shall maintain accounts and records, including personnel, property and
financial records, adequate to identify and account for all costs pertaining to this
Contract and such other records as may be deemed necessary by City to assure proper
accounting for all project funds. These records shall be made available for audit
purposes to state and federal authorities, or any authorized representative of City.
RRCD shall retain such records for three (3) years after the expiration of this
Contract, unless prior permission to destroy them is granted by City.
SECTION 5. INSURA.NCE
A. Unless modified in writing by City's Risk Manager, RRCD shall maintain the
following noted insurance during the duration of the Contract:
Coverage Required Not Required
Commercial General Liabi(ity X
Comprehensive Vehicle Liability X
Workers' Compensation and Employers' Liability X
Professional Liability(Errors and Omissions) X
(Place an"x" in the appropriate box)
B. Coverage shall be at least as broad as:
1. Insurance Services Office form number CG-0001, Commercial General
Liability Insurance, in an amount not less than$1,000,000 per occurrence and
$2,000,000 general aggregate for bodily injury, personal injury and property
damage;
2. Insurance Services Office form number CA-0001 (Ed. 1/8?), Comprehensive
Automobile Liability Insurance, which provides for total limits of not less
than$1,00Q,000 combined single limits per accident applicable to all owned,
non-owned and hired vehicles;
Consulting and Professional Services Agreement Page 3
Rev. 11/13
3. Statutory Workers' Compensation required by the Labor Code of the State of
California and Employers' Liability Insurance in an amount not less than
$1,000,000 per occurrence. Both the Workers' Compensation and
Employers' Liability palicies shall contain the insurer's waiver of subrogation
in favor of City, its elected officials, officers, employees, agents and
volunteers;
4. Professional Liability {Errors and Omissions} Insurance, appropriate to
RRCD's professian, against loss due to error or omission or malpractice in an
amount not less than$1,000,000.
5. The City does not accept insurance certificates or endorsements with the
wording "but only in the event of a named insured's sole negligence" or any
other verbiage limiting the insured's insurance responsibility.
C. Any deductibles or self-insured retentions must be declared to and approved by City.
At the option of the City,either: the insurer shall reduce or eliminate such deductibles
or self-insured retentions as respects the City, its elected officials, officers,
employees, agents and volunteers; ar the RRCD shall procure a bond guaranteeing
payment of losses and related investigations, claims administratian and defense
expenses.
D. The General Liability shall contain or be endorsed to contain the following
provisions:
1. City, its elected officials, officers, employees, and agents are to be covered as
additional insured as respects liability arising out of work or operations
performed by or on behalf of RRCD; premises owned, leased or used by
RRCD; or automobiles owned, leased, hired or borrowed by RRCD. The
coverage shall contain no special limitations an the scope of protection
afforded to City, its elected officials, officers, employees, agents and
volunteers.
2. The insurance coverage of RRCD shall be primary insurance as respects City,
its elected officials, officers, employees, agents and volunteers. Any
insurance or self-insurance maintained by City, its elected officials, officers,
employees, agents and volunteers, shall be in excess of RRCD's insurance
and shall not contribute with it.
3. Coverage shall state that the insurance of RRCD shail apply separately to each
insured against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
4. Each insurance policy required by this Contract shall be endorsed to state that
coverage shall not be canceled except after thirty (30) calendar days' prior
Consutting and Professional Services Agreement Page 4
Rev. 11J13
written natice has been given to City. In addition, RRCD agrees that it shall
not reduce its coverage or limits on any such policy except after thirty (30)
calendar days' priar written notice has been given to City.
E. Insurance is to be placed with insurers with a current A.M.Best's rating of no less
than A-VII.
F. RRCD shall designate the City of Redding as a Certificate Holder of the insurance.
RRCD shall furnish City with certificates of insurance and original endorsements
effecting the coverages required by this clause. Certificates and endorsements shall
be furnished to: Risk Management Department, City of Redding, 777 Cypress
Avenue, Redding, CA 96001. The certificates and endorsements for each insurance
policy are to be signed by a person authorized by the insurer to bind coverage on its
behalf. All endorsements are to be received and approved by the City's Risk Manager
prior to the commencement of contracted services. City may withhold payments to
RRCD if adequate certificates of insurance and endarsements required have not been
provided, or not been provided in a timely manner.
G. The requirements as to the types and limits of insurance coverage to be maintained
by RRCD as required by Section 5 of this Contract, and any approval of said
insurance by City, are not intended to and will not in any manner limit or qualify the
liabilities and obligations otherwise assumed by RRCD pursuant to this Contract,
including, without limitation, provisions concerning indemnification.
H. If any policy of insurance required by this Section is a"claims rnade"policy,pursuant
to Code of Civil Procedure § 342 and Government Code § 945.6, RRCD shall keep
said insurance in effect for a period of eighteen(18) months after the termination of
this Contract.
I. If any damage, including death, personal injury or property damage, occurs in
connection with the performance of this Contract, RRCD shall immediately notify
City's Risk Manager by telephone at(530)225-4068. No later than three{3)calendar
days after the event, RRCD shall submit a written report to City's Risk Manager
containing the following information, as applicable: 1) name and address of injured
or deceased person(s); 2) name and address of witnesses; 3) name and address of
RRCD's insurance company; and 4)a detailed description of the damage and whether
any City property was involved.
SECTION 6. INDEMNIFICATION AND HOLD HARMLESS
A. To the fullest extent permitted by law, RRCD shall indemnify protect, defend and
hold harmless, City, its elected officials, officers, employees, and agents, and each
and every one of them, from and against all actions, damages, costs, liability, claims
(including, but not limited to, wages and hours claims, and claims for relocation
benefits), losses, penalties and expenses (including, but not limited to, reasonable
attorney's fees of the City Attorney or legal counsel retained by City, expert fees,
Consulting and Professional Services Agreement Page 5
Rev. 11/13
litigation costs, and investigation costs) of every type and description to which any
or all of them may be subjected by reason of the performance of the services required
under this Contract by RRCD its officers, employees or agents in the performance
of professional services under this Contract, except when liability arises due to the
sole negligence, active negligence or misconduct of the City.
C. The RRCD's obligation to defend, indemnify and hold harmless shall not be excused
because of the RRCD's inability to evaluate liability. The RRCD sha11 respond
within thirty(30) calendar days to the tender of any claim for defense and indemnity
by the City, unless this time has been extended in writing by the City. If the RRCD
fails to accept or reject a tender of defense and indemnity in writing delivered to City
within thirty (30) calendar days, in addition to any other remedy authorized by law,
the City may withhold such funds the City reasonably considers necessary for its
defense and indemnity until disposition has been made of the claim or until the RRCD
accepts or rejects the tender of defense in writing delivered to the City, whichever
accurs first. This subdivision sha11 not be construed to excuse the prompt and
continued performance of the duties required of RRCD herein.
D. The obligation to indemnify, protect, defend, and hold harmless set forth in this
Section applies to all claims and liability regardless of whether any insurance policies
are applicable. The policy limits of said insurance policies da not act as a limitation
upon the amount of indemnification to be provided by Contractor.
E. City shall have the right to approve or disapprove the legal counsel retained by RRCD
pursuant to this Section to represent City's interests. City shall be reimbursed for all
costs and attorney's fees incurred by City in enforcing the obligations set forth in this
Section.
SECTION 7. CONTRACT INTERPRETATION,VENUE AND ATTORN�Y FEES
A. This Contract shall be deemed to have been entered into in Redding, California. All
questions regarding the validity, interpretation or performance of any of its terms or
of any rights or obligations of the parties to this Contract shall be governed by
California law. If any claim, at law or otherwise, is made by either party to this
Contract, the prevailing party shall be entitled to its costs and reasonable attorneys'
fees.
B. This document, including all exhibits, contains the entire agreement between the
parties and supersedes whatever oral or written understanding each may have had
prior to the execution of this Contract. This Contract shall not be altered, amended
or modified except by a writing signed by City and RRCD. No verbal agreement or
conversation with any official, officer, agent or employee of City, either before,
during or after the execution of this Contract, shall affect or modify any of the terms
or conditions contained in this Contract, nor shall any such verbal agreement or
Consulting and Professional Services Agreement Page 6
Rev. 11/13
conversation entitle RRCD to any additional payment whatsoever under the terms of
this Contract.
C. No covenant or condition to be performed by RRCD under this Contract can be
waived except by the written consent of City. Forbearance or indulgence by City in
any regard whatsoever shall not constitute a waiver of the covenant or condition in
questian. Until performance by RRCD of said covenant or condition is complete,
City shall be entitled to invoke any remedy available to City under this Contract or
by law or in equity despite said forbearance or indulgence.
D. If any portion of this Contract or the application thereof to any person or circumstance
shall be invalid or unenforceable to any extent, the remainder of this Contract shall
not be affected thereby and shall be enforced to the greatest extent permitted by law.
E. The headings in this Contract are inserted for convenience only and sha11 not
constitute a part hereof. A waiver of any party of any provision or a breach of this
Contract must be provided in writing, and shall not be construed as a waiver of any
other provision or any succeeding breach of the same or any other provisions herein.
F. Each Party hereto declares and represents that in entering into this Contract, it has
relied and is relying solely upon its own judgment, belief and knowledge of the
nature, extent, effect and consequence relating thereto. Each Party further declares
and represents that this Contract is made without reliance upon any statement or
representation not contained herein af any other Party or any representative, agent or
attorney of the other Party. The Parties agree that they are aware that they have the
right to be advised by counsel with respect to the negotiations, terms, and conditions
of this Contract and that the decision of whether or not to seek the advice of counsel
with respect to this Contract is a decision which is the sole responsibility of each of
the Parties. Accordingly, no party shall be deemed to have been the drafter hereof,
and the principle of law set forth in Civil Code § 1654 that contracts are construed
against the drafter shall not apply.
G. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury
in any action, proceeding, claim or counterclaim, whether in contract or tort, at law
or in equity,arising out of or in any way related to this Agreement or the transactions
contemplated hereby. Each Party further waives any right to consolidate any action
which a jury trial has been waived with any other action in which a jury triai cannot
be or has not been waived.
H. In the event of a conflict between the term and conditions of the body of this Contract
and those of any exhibit or attachment hereto, the terms and conditions set forth in
the body of this Contract proper shall prevail. In the event of a conflict between the
terms and conditions of any two or more exhibits or attachments hereto, those
prepared by City shall prevail over those prepared by RRCD.
Consulting and Professional Services Agreement page 7
Rev. 11/13
SECTION 8. SURVIVAL
The provisions set forth in Sections 3 through 7, inclusive, of this Contract shall survive
termination of the Contract.
SECTI�N 9. COMPLIANCE WITH LAWS - NONDISCRIMINATION
A. RFLCD shall comply with all applicable laws, ordinances and codes of federal, state
and local governments.
B. In the performance of this Contract, RRCD shall not discriminate against any
employee or applicant for employment because of race, color, ancestry, national
origin, religious creed, sex, sexual orientation,disability, age,marital status,political
affiliation, or membership or nonmembership in any organization. RRCD shall take
affirmative action to ensure applicants are employed and that employees are treated
during their employment without regard to their race,color,ancestry,national origin,
religious creed, sex, sexual orientation, disability, age, marital status, political
affiliation,or membership or nonmembership in any organization. Such actions sha11
include, but not be limited to, the foliowing: employment, upgrading, demotion or
transfer, recruitment or reeruitment advertising, layoff or termination, rates of pay or
other forms of compensation and selection for training.
SECTION 10. R�PRESENTATIV�S
A. City's representative for this Contract is Kim Niemer, te�ephone number(530) 225-
4085, fax number (530) 225-4585. All of RRCD's questions pertaining to this
Contract shall be referred to the above-named person, or to the representative's
designee.
B. RRCD's representative for this Contract is Dawn Smith, telephone number (53Q)
224-2800, fax number (� . All of City's questions pertaining
� to this Contract shall _be referred to the above-named person.
C. The representatives set forth herein shall have authority to give all notices required
herein.
SECTION 11. NOTICES
A. All notices,requests, demands and other communications hereunder shall be deemed
given only if in writing signed by an authorized representative of the sender(may be
other than the representatives referred to in Section 10) and delivered by facsimile,
with a hard copy mailed first class, postage prepaid; or when sent by a courier or an
express service guaranteeing overnight delivery to the receiving party, addressed to
the respective parties as follows:
Consulting and Professional Services Agreement Page 8
Rev. 11/13
To City: To RRCD:
Kimberly A Niemer Dawn S. Smith
77� Cypress Avenue 715 Parkview Avenue #1
Redding, CA 96001 Redding, CA 96001
B. Either party may change its address for the purposes of this paragraph by giving
written notice of such change to the other party in the manner provided in this Section.
C. Notice shall be deemed effective upon: 1)personal service;2)two caiendar days after
mailing or transmission by facsimile, whichever is earlier.
S�CTION 12. AUTHORITY TO CONTRACT
A. Each of the undersigned signatories hereby represents and warrants that they are
authorized to execute this Contract on behalf of the respective parties to this Contract;
that they have full right, power and lawful authority to undertake all obligations as
provided in this Contract; and that the execution, performance and delivery of this
Cantract by said signatories has been fully authorized by all requisite actions on the
part of the respective parties to this Contract.
B. When the Mayor is signatory to this Contract, the City Manager and/or the
Department Director having direct responsibility for managing the services provided
herein shall have authority to execute any amendment to this Contract which does
not increase the amount of compensation allowable to RRCD or otherwise
substantially change the scope of the services provided herein.
SECTION 13. DATE 4F C�NTRACT
The date of this Contract shall be the date it is signed by City.
Consulting and Professional Services Agreement Page 9
Rev. 11/13
IN WITNESS WHEREOF, City and RRCD have executed this Contract on the days and year set
forth below:
CITY OF REDDING,
A Municipal Corporation
Dated: ,2021
By:
ATTEST: APPROVED AS TO FORM:
BARRY E. DeWALT
City Attorney
PAM MIZE, City Clerk By:
RESOURCES FOR RURAL
COMMUNITY DEVELOPMENT
Dated: , 2021
By:
Tax ID No.:
Consulting and Professional Services Agreement Page 10
Rev. 11/13
Exhibit A
1. On a daily basis, fill out the Park Host Daily Log in the form provided herein as Exhibit
Al. Park Host may email the Daily Log to parksinfo a,citvofreddin�.or� or fax to (530)
224-6104.
2. Attend a Crime Prevention and Reporting Training by the Redding Police Department
within 90 days of moving into premises.
3. Observe and report suspicious or unusual activities accurring on the premises to the
Redding Police Department as the circumstances warrant. Park Host shall report any
vandalism and/or any other unsightly, unusual or unsanitary litter conditions to the City of
Redding Parks Division in a timely manner. Park Host shall also report any emergency
situation with regard to park facilities(i.e., broken sprinklers)to the City of Redding Parks
Division. Park Host is not required to remain on a stand-by status in order to perform the
functions set forth in this subdivision. CITY's intention is to have said duties performed
only when they happen to be observed by Park Host.
4. Open restrooms and all park gates by 6:00 a.m. daily and close restrooms and park gates
one hour after dusk daily. Prior to closing gates, Park Host shall check to see that no
people/vehicles are still on the Premises, and if so, politely warn said persons fifteen(15)
minutes before closing that you will close the gates in fifteen(15)minutes,or as instructed
by City personnel.
5. Daily open and close the following: 1)the walk-through chain link gate at the north end of
the premises; 2) the roller hockey rink gates; 3)the pickle ball court gate; 4)the upper and
lower restrooms; and 5)the north and south main entry gates.
6. Patrol the premises regularly.
7. Post park reservations for the premises. Park reservations will be faxed to the Park Host
in a timely manner by the City af Redding Recreation Division. Park Host shall
immediately report any dispute etc. regarding reservations to the City of Redding Parks
Division of which helshe becomes aware.
8. Respond to inquiries on an as needed basis. Park Host is not expected to remain in a stand-
by status or otherwise remain on site in order to perform this service. CITY's sole
expectation is that inquiries shall be answered while Park Host is actively performing the
duties set forth in Sections 4 - �.
9. Wear an identification vest while performing these assigned duties listed in this exhibit and
present in a neat and professional manner.
10. Comply with all local, state and federal laws, rules and regulations.
11. Except for emergency situations,provide a three (3)-day written notice to City to schedule
periods of time away from the premises.
12. Procure and maintain, for the duration of this Agreement, insurance against claims to
injuries to persons or damages to property which may arise from or in connection with the
use of owned, non-owned and hired vehicles. The policy of insurance shall be endorsed to
name the City of Redding as an additional insured. Copies of all insurance certificates and
endorsements shall be forwarded to the City of Redding Risk Management Division.
13. Charge the batteries and maintain water levels on the GEM vehicle. City maintenance
crews may use the GEM vehicle as needed.
14. Park Host shall not engage in confrontational situations and shall report any confrontational
situation to the City of Redding Parks Office or the City of Redding Police Department, if
necessary.
15. Represent the CITY in a positive manner and not accept any monies, donations, or fees for
park use or reservations. Any person requesting the scheduling of facilities shall be
referred to the City of Redding Recreation Division(225-4095).
Exhibit A1
CITY OF REDDING
PARK HOST DAILY L06
AREA: Reginato/Bonneyview Boat Ramp
Fax to(530)224-6104 or Emaii:parksinfo@cityofredding.org.
Number of Hours
DATE COMMENTS Worked
Monday
Tuesdav
Wednesdav
Thursdav
Friday
Saturdav
Sunday
i, ,declare under penalty of perjury that this Daily Log report of hours worked is an
accurate report of hours worked under the agreement and that this Daily Log neither overestimates or underestimates
the time spent performing duties under the agreement.
Signature of Park Host: Date:
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Exhibit 9
Enterpr�se �'a�k Has#H�r�e `� �� �. ; .
#' �F . . , .... '�5; "a �,ttt a '�.. 'c°v�.a^5 �- 4 ` 5��� �t' 4 �, � �'�`����s,':,. �,� ... � a�s .� ti .
';��.,�a�.����k�, ,,..;... . .�, . , ,���������� ���,,�3,,..r .:��.,,ro�,...�T.��� �,���������� � �.-r,l�� � ,,'� '' <>��c������ � �,+� �°
� a
a �....a,,.:� ,�:.,.�. :�r,;s,s�.7ti;�, ti .�.. .._� ,...u..,> i.s�k l
LAND ACQUISITION $0 $0�
PREDEVELOPMENT $0 $0
PERMITS, FEES, etc. $31,000 $31 ,000
CONSTRUCTION $306,196 $306,196
TOTAL
N:\3- HCD WORKING FILES\Multi Family Rehab and New Construction\Emergent 3D\Development
Agreements\John Reginato River Access Property\Exhibit 9 Project Budget.xls
EXHIBIT 10
SCHEDULE OF PERFORMANCE
John Reginato River Access
Action Time Frame
Operator signs Development Agreement and related
documents Prior to City Council meeting
City Council considers Project financing terms and
conditions; and directs staff to forward DA to City Manager September 7, 2021
for future execution
Community Services Department obtains amendment to State
lease Following City Council approval
City Manager executes DFA and related documents following Within 14 Days following State's written
State's sublease approval notification of sublease approval
Operator submits certificates of hazard insurance to City Risk
Manager Prior to the recording of security documents.
After Project plans are approved by the
Construction commences Development Services Department and within 60
days of security documents recordation
Construction completed Within 6 months after constructian commences
ExxIBIT Il
CERTIFICATE OF COMPLETION
THIS CERTIFICATE OF COMPLETION(the "Certificate") is made by the CITY OF REDDING,a
municipal corporation and general law city(the"CITY"),in favor af RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT INC. dba ACCESSHOME, (the "OWNER"), as of the date set forth below.
RECITALS
A. The CITY and the O WNER have entered into that certain Development Funding Agreement(DFA)
dated , concerning the development of certain real property situated in Redding, California,
including Assessor's Parcel Number 048-400-003-000 as more fully described in Exhibit"A",attached here to and
made a part hereof(the Property}.
B. The DFA sets forth the obligations of the Owner, to as Developer, under the DFA.
C. The CITY has conclusively determined that the Developer has satisfactorily completed the
obligations of the OWNER relative to development of the Property required by the DFA and now desires to furnish
OWNER or its successors with a Certificate of Completion. This Certificate is in such form as to permit it to be
recorded in the Recorder's Office of Shasta County and is conclusive determination of satisfactory completion of all
of the obligations of the OWNER required by the DFA regarding development of the property.
NOW, THEREFORE, the CITY hereby certifies as follows:
1. The obligations of the OWNER regarding Development of the Project as stated in the DFA have
been fully and satisfactorily completed in conformance with the DFA.
2. Nothing contained in this instrument sha11 modify in any way any other provisions of the DFA.
IN WITNESS WHEREOF,the CITY has executed this Certificate on this date , 2021.
CITY OF REDDING
Steve Bade, Deputy City Manager
EXHIBIT A
LEGAL DESCRIPTION
EXHIBIT 12
NOTICE OF COMPLETION
RECORDING REQUESTED BY
CITY OF REDDING
WHEN RECORDED, MAIL TO:
CITY OF REDDING—HOUSNING DIVISION
P.4. Box 496071
Redding, CA 96049-6071
Loan No.:
THIS SPACE FOR RECORDER'S USE ONLY
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093 must be filed within 10 days after completion.
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is the owner or authorized agent of the owner of the interest or estate stated below in the
property hereinafter described.
2. The full name of the owner is: RESOURCES FOR RURAL COMMtTNITY DEVELOPMENT INC. dba
ACCESSHOME
3. The full address of the owner is: 715 PARKVIEW AVENUE #l, Redding, CA 96001
4. The nature of the interest or estate of the undersigned is: In Fee
5. The fu11 names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants
or as tenants in common are: None
6. Work or improvement on the property hereinafter described was construction and was completed on
7. Said work or improvement was undertaken on said property pursuant to a contract dated ,
2021 with General Contractor
8. The street address of the property on which said work or improvement was completed is 3855 South
Bonneyview Avenue, located in the City of Redding, County of Shasta, State of California. AP# 048-400-003-
000.
Dawn Smith, Executive Director, ACESSHOME.
I, the undersigned, state that I am the declarant of the foregoing Notice of Completion; that I have read said
Notice of Completion and, to the best of my knowledge, I declare under penalty of perjury that the foregoing is
true and correct.
Dated: , Redding, California.
Dawn Smith, Executive Director, ACESSHOME.
EXHIBIT 13
SECTION 3 CLAUSE
The work to be perfarmed under this contract is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The
purpose of Section 3 is to ensure that empioyment and other economic opportunities generated by
HUD assistance ar HCTD-assisted projects covered by Section 3, shall, to the greatest extent
feasible, be directed to low-and very low-income persons, particularly persons who are recipients
of HUD assistance for housing.
The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which
implement Section 3. As evidenced by their execution of this contract, the parties to this contract
certify that they are under no contractual or other impediment that would prevent them from
complying with the part 135 regulations.
The contractor agrees to send to each labor organization or representative of workers with which
the contractor has a collective bargaining agreement or other understanding, if any, a notice
advising the labor organization or workers' representative of the contractor's commitments under
this Section 3 Clause, and will post copies of the notice in conspicuous places at the work site
where both employees and applicants for training and employment positions can see the notice.
The notice shall describe the Section 3 preference, shall set forth minimum number and job titles
subject to hire, availability of apprenticeship and training positions, the qualifications for each;
and the name and location of the person(s) taking applications for each of the positions; and the
anticipated date the work shall begin.
The contractor agrees to include this Section 3 clause in every subcontract subject to compiiance
with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this Section 3 Clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not
subcontract with any subcontractor where the contractor has notice or knowledge that the
subcontractor has been found in violation of the regulations in 24 CFR part 135.
The contractor will certify that any vacant employment positions, including training positions,
that are filled (1) after the contractor is selected but before the contract is executed, and (2) with
persons other than those to whom the regulations of 24 CFR part 135 require employment
opportunities to be directed, were not filled to circumvent the contractor's obligations under 24
CFR part 13 5.
Non compliance with HCTD's regulations in 24 CFR part 135 may result in sanctions, termination
of this contract for default,and debarment or suspension from future HUD assisted contracts.
N:\3 - HCD WORKING FILES\Single Family Acquisition and New Constmction\CRDC 3208 Veda\DFA\Exhibit 13 Section 3
Clause.doc
EXHIBIT 14
FAIR HOUSING POSTER
U.S. Department of Housing and Urban Development
�
_
EQUAL HOUSING
OPPORTUNITY
We Do Business in Accordance With the Federal Fair
Housing Law
{The Fair Housing Amendments Rct of 1988)
It is Iilegal to Discriminate Against A►ny Person
Because of Race, Color, Religion, Sex,
Handicap, Familial Status, or Natianal CJrigin
■ In the sale or rental of housing or ■ In the provision of real estate
residential lots brokerage services
■ In advertising the sale or rental ■ In the appraisal of housing
of housing
■ In the financing of housing ■ Blockbusting is also illegal
Anyone who feels he or she has been U.S. Department of Housing and
discriminated against may file a complaint of Urban Development
hausing discrimination: Assistant Secretary for Fair Housing and
1-800-669-9777 (Toll Free) Equal Opportunity
1-800-927-9275 (TDD) Washington, D.C. 20410
Previous editions are obsolete form HUD-928.1A(8-93}
' �� TRANSMITTAL FORM
� �
- HRRL}COPIES REQU(ItED*DO NOT E-MA[L FOR REVfEW
� -
TO CITY ATTORNEY(225-4054)&CITY CLERK(225-44391
Agreements p Bonds p Contracts 0 Leases a Escrow Instructions
p Deeds p Securities p Resolutions 0 Ordinances p Opinions
Date: 10/05/2021 From: Nicole Smith `
Dept. Name: Housing Dept. # g96 Phone: 225-4336
Person most knowledgeable: same Phone:
iNSURANCE REQUIREMENTS MET? When submitting contract for review, you must also submit an Insurance
Transmittal Form to Risk so insurance can be requested and approved in PINS. lf not, your contract wiN be held in
the Cterk's Office. For help contact Risk Liability at pdah/(cr?�citvofreddinq.orp or(530) 225-4385.
DESCRIBE ATTACHED DOCUMENTfSI
Document Title: Enterprise Park Development Apreement
Outside Parry(ies): AccessHome
Project/Purpose: Development Aqreement for Enterprise Park Host Home
COUNCIL APPROVAL REQUIRED? No C�'es�IF YES,DATE OF MEETING: _qJ�t�� Agenda Item#: 9.2b
Was contract/agreement the result of an RFP or Bid?No �Yes � Bid Schedule#or RFP#: �,� � � �� �
����.����`�C������..
REQUEST FOR ATTORNEY SERVICES
`..��=� �—��-�
� Attorne�Reviews Draft-All documents must be reviewed&approved before obt � k��� , :�"`��
When amending contracts,attach a copy of original contract and all prior amendments. Do not e-mail
documents without prior approval.
❑ Retut'n di'1ftS to: (to finalize&obtain outside signatures)
� Attoi`ne�Si ns Qri�i�tals.t�p�rovil2�AS To For�n�l�t��`: (1� draft has been previously reviewed&
approved by Attarney; (2) Dept,has abtained outside signatures. Piease submit 2 originals. Use paperclips
-no staples-and affix"Sign I�er-e"tabs on all signature pages. �����
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MEETING DATE: September 7,2021 FRQM: Steve Bade,Deputy City
ITEM NO. 9.2(b) Manager
***APPROVED BY***
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s6ade ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 9.2(b)--Consider Development Agreements for 3D Printer Construction of
income- ualif in housin units in the Cit of Reddin .
Recommendation
Authorize the following actions regarding the development of 3D Printed Construction of
income-qualifying housing units at Enterprise Community Park, the John Reginato River Access
Park, and 745 and 785 St. Marks Street:
(1) Approve and authorize the execution of a Development Agreement between the City of
Redding and Resources for Rural Community Development, Inc., dba AccessHome
(AccessHome) providing a City Loan in an amount not-to-exceed $337,196 for the
development of a park host home at Enterprise Comznunity Park;
(2) Approve and authorize the execution of a Development Agreement between the City and
AccessHom.e providing a City Loan in an amount not-to-exceed $337,196 for the
development of a park host home at John Reginato River Access Park;
(3) Approve and authorize the execution of a Development Agreement between the City and
AccessHome providing a City Loan in an amount not-to-exceed $1,800,000 for the
development of up to six housing units at'745 and 785 St. Marks Street; and
(4) Approve and authorize the City Manager, or designee, to execute all necessary
documents as detailed within each Development Agreement, including the associated
Ground Leases, Park Host Agreements, and any other related documents necessary to
complete each transaction.
Fiscal 1'mpact
The combined development loans for the projects total $2,474,392 which will be comprised of
funding from the Home Investment Partnerships (HOME) Program, HC}ME American Rescue
Plan (HOME-ARP) funding,Affordable Housing Loan Fund(AHLF), Community Development
Btock Grant (CDBG) Program, Permanent Local Housing Allocation (PLHA), and $200,000 of
Park In-Lieu proceeds.
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C;ITY()F RE�DINCi
and
RESOURCES FOR RURAL COMMUNITY DEVELQPMENT, INC.
Enterprise Park Host Project
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Development Agreement Between the City and AccessHome Page 1 of 28
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DEVELOPMENT AGREEMENT
This DEVELOPMENT AGREEMENT ("Agreement") is made and entered into by
and between the CITY OF REDDING, a municipal corporation and general law city ("City"), and
RESOURCES FOR RURAL COMMIJNITY DEVELOPMENT, INC. dba AccessHome, a
California non-profit corporation ("Owner/Operator" or"AccessHome"}.
RECITALS
A. The City owns property located at 4000 Victor Avenue, Redding, Shasta County,
California, Assessor's Parcel Number 068-290-004-OQO (the `Bnterprise Park Property") Redding,
Shasta County, California, as further described in Exhibit 1 "Legal Deseription" respectively; and
depicted in Exhibit 2, "Location Map," attached hereto and incorporated by reference herein.
B. On March 3, 2020, City Council approved $100,000 of Park In�Lieu funds for the
development of Park Host Housing at the Enterprise Park Property to provide consistent onsite
coordination that dissuades vandalism and improves park safety.
C. City is a HOME Participating Jurisdiction that distributes HOME Investment
Partnerships Program ("HOME") funds geographically within its boundaries.
D. The United States Department of Housing and Urban Development ("HUD")
allocates funds to the HOME Investment Partnerships Program ("HOME"), authorized by Title II of
the Cranston-Gonzalez National Affordable Housing Act of 1990. The objectives and intent of the
HOME Program are to provide decent affordable housing to lower-income households; to strengthen
the ability of state and 1oca1 governments to provide housing; to expand the capacity of non-profit
housing providers; and to leverage private sector participation.
E. The Project is a qualifying Community Housing Development Organization (CHD4)
activity pursuant to HOME Final Rule 24 Code of Federal Regulations Part 92. Each year, the City
must set aside 15 percent of its annual allocation to be used in CHDO activities.
F. Owner/Operator is a qualified CHDO under the HOME Program and will oversee all
aspects of the development and wi11 act as the Owner/Operator subsequent to Project completion
G. The City desires to provide HOME funds as a loan to Owner/Operator for the
development and construction of the Project. The City reserves the right, in its sole discretion, to
utilize any other affordable housing funding sources available to it with allocated Park-In Lieu funds,
to fulfill the obligations set forth in this Agreement.
H. The City and Owner/Operator agree that the shortage of construction workers has
reached critical levels thereby driving construction costs beyond acceptable levels and extending the �
production time of income-qualified housing. � �'
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I. Don Ajamian Construction, a California corporation and general contractar and ��_
1.
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Development Agreement Between the City and AccessHome Page 2 of 28
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Emergent 3D, a California limited liability corporation (collectively "Contractor") provides 3D
Printed Building Construction services to the Redding area. 3D Printed Building Construction,
when combined with conventional construction methods, provides home construction that innovates
Che local construction industry and solves housing cost and production delays.
J. The City and Owner/Operator desire to enter into this Agreement to set forth the
mutual obligations of the City and Owner/Operator in connection with the design, financing and
construction of the Project.
K. The City anticipates partnering with the Contractor to develop a total of twenty-four
3D Printed Building Construction projects over the next four years to increase rental and homebuyer
opportunities in the community.
AGREEMENT
l. Definitions. The following definitions shall apply for the purposes of this Agreement:
11 "Affardable Rent" shall have the meaning set forth in the City's Declaration of
Affordability Restrictions.
1.2 "Affordable Unit" shall mean the single-family rental unit developed on the
Property which is restricted by the City's Declaration of Rent Restrictions as further defined in
Exhibit 4.
1.3 "Affordability Period" shall mean a period commencing upon the date of the
Certificate of Occupancy issued by the City's Building Division for the Project and continuing for
twenty(20) years, the period of affordability.
1.4 "Area Median Income or AMI" shail mean the current area median income adjusted
for family size appropriate to the size of the rental unit applicable to Shasta County, as determined by
the United States Department of Housing and Urban Development(HUD).
1.5 "Certificate of Completion" sha11 mean the document attached as Exhibit 11.
1.6 "Certificate of Occupancy" shall mean the document issued by the City's Building
Division certifying that the project has been completed according to the approved plans and
applicable building codes.
1.7 "City" shall mean the City of Redding. The City is a municipal corporation and
general law city. City as it is used in this Agreement includes the City Council of the City and any
assignees of or successors to its right, powers, and responsibilities. The principal office of the City is
located at 777 Cypress Avenue, Redding, California 96001. The phone number for voice
communication with the City (Mark Christ, Associate Project Coordinator) is 530.245.7136 and for
email transmittal to the City is a�christ�,cityofreddin .�org.
1.8 "City Assistance or City Loan" shall mean the financial assistance provided by
the City to Owner/Operator pursuant to Sections 3.1 and 3.2.
Development Agreement Between the City and AccessHome Page 3 of 28
19 "City Manager" shall mean the City Manager of the City of Redding.
1.10 "Code of Federal Regulations" or "CFR" is the codification of the general and
permanent rules published in the Federal Register by the executive departments and agencies of
the Federal Government.
l.l 1 "Combined Loan-To-Value" sha11 mean the ratio of Other Financing, as described in
Section 3.3,plus the City Loan divided by the Market Value of the completed Project.
1.12 "Completion Date" shall mean the date stated in the Schedule of Performance for the
completion of construction of the Project.
1.13 "Consulting and Professional Services Agreement or Park Host Agreement" shall
mean that certain contract entered into and between the City of Redding Community and
AccessHome for Park Host services. Should this agreement terminate, the long-term lease
automatically terminates as well.
1.14 "Construction" shall mean (whether or not capitalized} unless the context clearly
indicates otherwise, the construction of the Project on the Property and all required public
improvements in accordance with the final Project Specifications and this Agreement.
1.15 "Contractor" sha11 mean the contractor or contraetors with whom the Owner/Operator
contracts for the construction. Contractor must have a current and valid contractor's license issued by
the California Contractors' State License Board for the construction. Don Ajamian Construction and
Emergent 3D LLC are collectively considered the contractor for this Project.
1.16 "Days" shall mean calendar days unless expressly stated otherwise. If the date or
time period for any action under this Agreement falls or ends on a Saturday, Sunday or federal, state
or legal holiday, then such date or time period shall automatically be extended until 5 p.m. Pacific
Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday.
1.17 "Declaration of Rent Restrictions" shall mean the document recarded against the
Property to enforce the Affordability Period and Affordable Rent for the Affordable Unit, a
representative copy of which is attached hereto as Exhibit 4.
1.18 "Deed of Trust" or "City Deed" shall mean the deed of trust recorded against the
Property to secure the City Loan, a copy of which is attached as Exhibit 5.
1.19 "Development Agreement" or "Agreement" is this agreement which includes this
document and the referenced exhibits and attachments to this Agreement, which are all
incorporated in this Agreement as if set forth in full in the body of the Agreement.
1.20 "Owner/Operator" shall mean AccessHome Inc., a California Nonprofit Benefit
Corporation. The principal office and mailing address of the Owner/Operator is '715 Parkview
Avenue #l, Redding, CA 96001. The phone number for voice communication with the
Owner/Operator is 530.224.2800 and for email transmittal to the Owner/Operator is
dsmith(a�accesshome.or�. Owner/Operator as it is used in this Agreement, sha11 include any
permitted nominee, assignee, or successor in interest as herein provided.
1.21 "Development Team" shall mean designated representatives from the City and
Development Agreement Between the City and AccessHome Page 4 of 28
Owner/Operator to function as a team to ensure the Project is developed in accordance with this
Agreement.
1.22 `Bffective Date" shall mean the date this Agreement is signed by the City or its
designee authorized to sign on behalf of the City.
L23 "Escrow Closing Costs" shall mean the fees, charges and costs identified in Section
3.8 applicable to the City Loan Documents.
1.24 `Bxtremely-Low Income Household shall mean a household whose income does not
exceed 30 percent(30%) of the Area Median Income adjusted for family size appropriate to the size
of the rental unit applicable to Shasta County, as established and amended from time to time by HUD
and as set forth in in HSC Division 31, Section 50106.
1.25 "Final Plans" or "Final Project Plans" are the complete set of architectural and civil
engineering plans and specifications for the Project which include the City's Development Services
and Land Development Divisions' conditions of approval and have been approved by the City's
� Building Division and Engineering Division.
1.26 "Health and Safety Code (HSC)" shall mean the California Health and Safety Code.
1.27 "HOME" shall mean the H4ME Investment Partnerships Program as authorized by
Title II of the Cranston-Gonzalez National Affordable Housing Act as amended. The implementing
regulations are found at 24 CFR Part 92.
1.28 "HOME Affordability Period" sha11 mean the period commencing upon the date of
recordation of a Notice of Completion by the Owner/Operator for the Project and continuing for
twenty(20) years as further defined in the HOME Agreement attached as E�ibit 3.
1.29 "Lease Agreement" shail mean the written agreement negotiated between the City
and Owner/Operator for the lease of the Property.
1.30 "Lender" shall mean all holders, including the holder of any construction or any
permanent loan with a lien in first position or encumbrance as security for financing on all or any
part of the Property and references to the Property shall mean that portion of the Property so
encumbered.
1.31 "Long-term lease" or "Ground Lease" shall mean the lease agreement equal to the
period of affordability or 20-years for the Property attached as Exhibit 7. The single-family home
will be made available to, restricted occupancy to and rented at an affordable rent to income
qualifying households as defined within this agreement.
1.32 "Low-Income" or "Lower-Income Household" shall mean a household earning no
greater than eighty percent (80%) of Shasta County median income adjusted for household size as
established and amended from time to time by HUD and as set forth in Health and Safety Code
Section 500'79.5, as it exists as of the date of this Agreement.
1.33 "Notice of Completion" is the document attached as Exhibit 12.
1.34 "Other Financing" shall mean all non-City financing sufficient to complete the
Development Agreement Between the City and AccessHome Page 5 of 28
Project pursuant to Section 3.3.
135 "Plans" are the Preliminary Plans and/or the Final Plans, or both, as the cantext
requires.
1.36 "Preliminary Plans" are all the necessary plans, documents, and supplemental
infarmation to comprise a complete application for the entitlements necessary to develop the
Project, as required by the City's Development Services Department.
1.37 "Preliminary Project Budget" shall mean the document attached as Exhibit 9.
1.38 "Project" shall mean improvements to be constructed on the Property in accordance
with the approved architectural plans and this Agreement. The improvements include, but are not
limited to, the construction of one single-family home that includes the common areas and the
associated infrastructure to complete the Project. The maintenance of each single-family unit will be
pursuant to lease negotiations between the City and the Owner/0perator for each Property prior to
occupancy. Additional Project detail is further described and provided in this Agreement, the Scope
of Development and the Project Final Plans.
1.39 "Project Budget" sha11 mean the identification of costs for development and
construction as required in Section 5.1 of this Agreement. A Project Budget is attached to this
Agreement as Exhibit 9.
1.40 "Project Manager" sha11 mean the City's designee of a City staff person to verify
development and construction compliance with this Agreement and to distribute construction draw
requests.
1.41 "Promissory Note" or "City Promissory Note" shall mean the promissory note to be
executed by Owner/Operator which evidences the City Loan, a copy of which is attached as Exhibit
6.
1.42 "Property" or "Project Site" shall mean the City's real property located at 4000
Victor Avenue, Redding, Shasta County, California, Assessor's Parcel Number 068-290-004-000
(the "Enterprise Park Property"). The Enterprise Park Property as described in Exhibit 1 "Legal
Description" respectively; and depicted in Exhibit 2, "Location Map," respectively.
1.43 "Redevelopment Law" shall mean California Community Redevelopment Law as
contained in California Health and Safety Code Section 33000 et seq and statutes referenced therein.
1.44 "Residual Receipts" shall mean any Project net income remaining after:
a) Payment of allowable distributions to the Owner/Operator that include any
withdrawal, taking or payment of any assets, subsidies, earnings or income of the Project excluding
payments for current and budgeted Operating Expenses of the Project. Distributions shall be payable
only after payment of Operating Expenses and Non-Standard Operating Expenses and shall be
limited to 50% of the net income remaining after payment of Operation Expenses and Non-Standard
Operating Expenses, as defined below:
i) Operating Expenses means all reasonable and proper expenses, as
approved by the City, of the operation of the Project including, but not limited to, loan payments
Development Agreement Between the City and AccessHome Page 6 of 28
payable before the calculation of allowable Distributions as approved by the City, the annual
servicing fee, if applicable, insurance, real estate taxes, ordinary maintenance and repair, costs of
marketing, project management, supportive services, fuel, utilities, garbage disposal, sewer charges,
audit expenses, the required impounds, reserve and escrow deposits, reasonable attorney fees
incurred in operating the Project, and such other payments as the City may require or specifically
approve in writing as Operating EXpenses. In no event shall attorney fees or litigation costs other
than as stated, or expenditures normally required to be paid out of the replacement reserve, be treated
as Operating Expenses unless specifically approved in writing by the City.
ii) Non-Standard Operating Expenses means expenses as approved in
writing by the City payable after all Operating Expenses and before Distributions. Non-Standard
Operating Expenses shall be paid in the following priority and may include (if applicable} the
following: (i} cash flow operating reserves; (ii) non-City required operating reserves funded from
Project cash flow; (iii) deferred Owner/Operator fee (only if the Project was funded with the
proceeds from the sale of tax credits and the Project has a limited partner investor) payable as
determined by Owner/Operator, not to exceed the total approved deferred Owner/Operator fee; and
(iv)partnership asset management fees.
1.45 "Residual Receipts Loan" shall mean a loan, the repayment of which is dependent
upon the availability of net income remaining after deducting the amount necessary to satisfy
City approved Operating Expenses, Non-Standard Operating Expenses and distributions to the
Owner/Operator associated with the operation and maintenance of the Project.
1.46 "Schedule of Performance" is attached as Exhibit 10.
1.47 "Scope of Development" is attached as Exhibit 8.
1.48 "Section 3 Clause" is attached as Exhibit 13.
1.49 "Security Documents" shall mean the following documents related to the Project:
the Deed of Trust; Promissory Note; the Declaration of Rent Restrictions; and the HOME
Agreement.
1.50 "Subcontractor" shall mean those contractors or material suppliers with whom the
Contractor contracts or with whom another subcontractar contracts for a portion of the construetion.
Subcontractor must have a current and valid contractor's license, issued by the California
Contractors' State License Board, for the work they are performing.
1.51 "Substantial Change" shall have the meaning described in Subsection 4.2.3.
1.52 "Units" shali mean the residential dwelling units constructed on the Site pursuant to
this Agreement.
1.53 "Very-Low Incame Household" shall mean a household earning no more than fifty
percent (50%) of Shasta County median income adjusted for household size as determined by the
United States Department of Housing and Urban Development (HUD) from time to tirne, for the
HOME Program and as set forth in 24 CFR Part 92.2 as it exists as of the date of this Agreement.
2. The Agreement. •
2.1 Purpose of the Agreement. The purpose of this Agreement is to further the goals
Development Agreement Between the City and AccessHome Page 7 of 28
of the City to increase, improve, and preserve affordable housing by assisting the Owner/0perator
with the development of the Property and the completion of the Project in accordance with the Final
Plans and this Agreement.
The City represents that the development of the Property and completion of the Project,
under ihis Agreement, and the fulfillment generally of this Agreement, are in the vital and best
interests of the City of Redding and the health, safety, morals and welfare of its residents; for the
purpose of community improvement and welfare; and to improve, preserve, and increase the supply
of affordable housing. Except for the risks and speculation inherent with respect to real estate
development projects, Owner/Operator represents and agrees that its development of the Project
under the Agreement is not intended for speculation in land holding.
It is contemplated by the parties that ali activities undertaken by Owner/Operator will be in
accordance with this Agreement. All attachments and exhibits are hereby incorporated into this
Agreement by reference.
2.2 Scope of Work. It is contemplated by the parties that the Owner/Operator wi11
develop the Project on the Property. AccessHome, in its capacity as a CHDO, will execute a long-
term lease for the Enterprise Property with the City of Redding for the extent of the 20-year period of
affordability. The Project wi11 consist of one 3D Printed Construction Technalogy unit, consisting
of three bedrooms and two bathrooms as portrayed in Exhibit 8.5. In general, the Scope of Work
� will include architectural drawings, building permits, lot preparation and clearing, foundation
excavation, footings poured and set, foundation poured, driveway constructed, all infrastructure and
site development necessary for Project completion. AccessHorne will then sublease the unit to an
income eligible occupant as more completely described in the HOME Agreement and the Park Host
Agreement executed with the City of Redding's Community Services Department. The specific
scope of work to be carried out by the Owner/Operator under this Agreement is mare particularly
described in this Agreement, the Scope of Development and the Preliminary Project Design Package
(Exhibit 8.5).
2.3 Term. This Agreement shall commence as of the Effective Date and proeeed as
required by the Agreement and the Schedule of Performance, and shall terminate upon the
occurrence of all of the following (except for any deed restrictions, covenants running with the land,
or other agreements or provisions which by their terms survive the term of the Agreement):
a) Completion of the construction of the Project in accordance with this Agreement; and
b) Fulfillment by the parties of their obligations under this Agreement.
3. Project Financin�.
3.1 City,Assistance; Cit�n. In order to effectuate the completion of the Project on
the Property, the City shall provide project financing to the OwnerlOperator for the sole purpose of
assisting with construction costs of the Affordable Units within the Projeet (City Loan). The City
Loan shall be in a total amount that shall not exceed Three Hundred Thirty-Seven Thousand �lne
Hundred Ninety-six No/100 Dollars ($337,196}. The City Loan includes Park In-Lieu fees of
$100,000 from the Community Services Department.
31.1 City Loan Terms and Conditions. The City Loan shall be evidenced by a
promissory note (City Promissory Note) in favor of City for the full amount of the City Loan. The
Development Agreement Between the City and AccessHome Page 8 of 28
City Promissary Note shall bear zero interest. Required payments will be based on residual receipts
as defined in 1.44 and 1.45 of this Agreement and the Promissory Note. Twenty-years (20) from the
date set forth in the City Promissory Note, term of the loan expires, any remaining balance of
principal and interest is due. The City Promissory Note shall be secured by a Deed of Trust (City
Deed) executed by Owner/Operator and recorded on the Property.
The City Deed shall be a lien on the Property which shall be junior only to the deeds
of trust securing Other Financing described in Section 3.3 of this Agreement and the Declaration of
Affordability Restrictions.
This City Promissory Note shall not be assumable by the successors and assigns
of Owner/Operator without the prior written consent of the City, whereby such consent shall not
reasonably be withheld.
3.2 Repavment of Cit�Loan. One hundred twenty (120) Days from recordation of the
Certificate of Completion, monthly installments, as identified within the City Promissory Note, wi11
begin and continue for a period of twenty (20) years. Payments received by the City or its loan
servicing agent shall be applied first to the interest and subsequently to reducing the principal as
identified in the City Promissory Note.
Owner/Operator, or ather party authorized by this Agreement, including any successors and
assigns, may pay in ful1, or any part of, the City Loan prior to the due date without penalty.
Subject to the notice and cure rights set forth in Section 10.1, the full amount of the City
Loan, including principal and all accrued interest, shall become immediately due and payable upon
the occurrence of any of the following:
a) Owner/Operator's failure to proceed with and complete the Project in
accordance with the Schedule of Performance;
b) Owner/Operator abandons or substantially suspends construction of the
Project for a period of three (3) months after written notice of such abandonment or suspension from
the City;
c) OwnerlOperator fails to utilize the Property for the Project within the
timeframe set forth in the Schedule of Performance or as or as authorized in writing;
d) Owner/Operator fails to comply with the affordability covenants set forth in
this Agreement and the exhibits to the Agreement; or � �
e) Other material breach of this Agreement following expiration of applicable
notice and cure periods.
The City's overall intention is to forgive the City Loan over time. After the Owner/Operator
fulfills its twenty(20) year obligation under this Agreement,the City Loan shall be forgiven in its
entirety and the asset reverted to the City's Community Services Department.
3.3 Other Financin�. Owner/Operator shall obtain other financing that sha11 be sufficient
for the completion of the Project and its operation in conformity with this Agreement when combined
with City financing. The City of Redding Community Services Department will provide $100,000
toward the construction costs of the Project.
If necessary, the OwnerlOperator shall contribute additional funds, i.e., personal resources, Redding
Electric Utility Rebates or any other funds that when combined with the City Loan and any other
Development Agreement Between the City and AccessHome Page 9 of 28
financing, wi11 complete the Project in conformity with this Agreement.
331 Approval of Other Financing Commitments. Owner/Operator shall
provide to City for review and approval evidence of a firm and binding commitment for the private
loan amount as well as any other private financing necessary for the Project. Such commitments
shall be subject only to reasonable conditions of the Lender necessary to assure the value and
security of its loan. Such commitments shall not be subject to conditions which require amendment
of this Agreement or other agreements between Owner/Operator and City without City approval.
Said commitments shall be, in the aggregate, in a total amount sufficient to complete development of
the Project as provided in the Project Budget and to fulfill all other obligations of this Agreement.
3.4 Limitation on Encumbrances; Subordination to Other Financing. Prior to the
completion of the Project, Owner/Operator shall not engage in any financing or any other transaction
creating any encumbrance or lien on the Property, whether by express agreement or operation of law,
except to obtain funds to be used only for actual costs of the Project and other expenditures necessary
and appropriate to develop the Property in accordance with this Agreement. Owner/Operator shall
notify the City in advance of any proposed financing to be secured by the Property. In any event,
Owner/Operator shall promptly notify the City of any encumbrance or lien that has been created on
or attached to the Property. If Owner/Operator is not in default of this Agreement, and if City
approves a11 of the private financing documents, including the terms of any subordination agreement,
which approval shall not be unreasonably withheld, City will subordinate its Deed of Trust to the lien
of a construction deed of trust and permanent deed of trust, for such financing.
3.5 Provisional Refinancin�. The Owner/Operator may, without City consent, refinanee
any indebtedness secured by an encumbrance which is superior to the City Deed, provided that the
refinanced encumbrance shall have the following characteristics:
a) Amount. The refinanced encumbrance shall not secure indebtedness in a dollar
amount greater than the balance owed on the indebtedness plus reasonable costs related to the
refinancing to which the City's interest was originally subordinated, unless otherwise approved by
the City Manager.
b) Debt Service. The debt service of the refinanced indebtedness shali be an amount
which does not exceed the amount of the debt service of the indebtedness to which the City's interest
was originally subordinated.
c) No Monies to Owner/Operator. Owner/Operator shalt receive no fees or monies as a
result of the refinancing of the indebtedness of the Project unless otherwise approved by the City
Manager.
d) Subordination Agreement. Subject to City approval, which approval shall not be
unreasonably withheld, upon request, City shall execute any document reasonably required to
evidence the subordination of the City's Deed of Trust to a permitted indebtedness or refinancing.
City shall a11ow the Declaration of Affordability Restrictions to be recorded on the Property junior
only to 1)the lien of the construction lender securing funds for construction of the Project; and 2)the
lien of a permanent loan so long as the permanent loan is for an amount not greater than the amount
due and owing by the OwnerJOperatar pursuant to the construction loan plus customary fees and
costs payable for the benefit of the permanent lender in connection with the permanent loan and upon
satisfaction and release and reconveyance of the deed of trust securing repayment of the construction
loan. In the event a subordination agreement meets these requirements, the City Manager shall be
authorized to execute the subordination agreement on behalf of the City without additional
Development Agreement Between the City and AccessHome Page 10 of 28
authorization by the City Council.
3.6 Assurances to Lenders. The City and the Owner/Operator sha11, in good faith,
consider making such reasonable modifications to this Agreement and executing such further
instruments and agreements as a Lender, secured by an interest in the Property, may reasonably
request to acknowledge and protect such Lender's rights, provided such modifications, instruments,
and agreements do not materially adversely affect any party's rights or obligations under this
Agreement and provided such modifications, instruments, and agreements serve a material economic
purpose.
3.7 No Reimbursement. Except as expressly provided in this Agreement, no person shall
have the right of reimbursement from the City for any funds expended by them for the Project prior
to execution of this Agreement. This provision does not preclude any person from receiving
reimbursement from persons other than the City.
3.8 Escrow. If requested by City, within ten (10) Days of the Effective Date of this
Agreement, Owner/Operator agrees to establish an escrow account with a title and escrow company
mutually agreeable to both parties (`Bscrow Agent"). This Agreement constitutes the joint escrow
instruction of the City and the Owner/Operator with respect to the recording of the City security
documents and a duplieate original of this Agreement sha11 be delivered to the Escrow Agent. The
City and Owner/Operator shall provide the Escrow Agent with such additional escrow instructions as
shall be necessary and consistent with this Agreement. The Escrow Agent is hereby empowered to
act under this Agreement, and upon indicating its acceptanee of the provisions of this Section 3.8 in
writing, delivered to the City and to the Owner/Operator within five (5) Days after reeeipt of this
Agreement, shall carry out its duties as Escrow Agent hereunder. Close of escrow shall occur within
thirty(30) Days from the opening of escrow.
The Escrow Agent is authorized to pay and charge the Escrow Account for the following
fees, charges and costs (Escrow Closing Costs):
a) the escrow fee;
b) recording fees, if any; and
c) premiums for standard ALTA title insurance policies for the City
Loan, if any.
Before such payments are made, the Escrow Agent shall notify the City and the
Owner/Operator of the amount of the Eserow Closing Costs. The City will pay in escrow to the
Escrow Agent the agreed upon Escrow Closing Costs. Payment shall be made promptly after the
Escrow Agent has notified the City and Owner/Operator of the amount of Escrow Closing Costs but
no earlier than ten (10) Days prior to the scheduled date for close of escrow. The amount disbursed
for the Escrow Closing Costs shall be deducted from the proceeds of the City Loan described in
Section 3.1 of this Agreement. In addition,the Escrow Agent is authorized to:
a) Deliver any documents to the parties entitled thereto when the eonditions of the
escrow have been fulfilled by the City and the Owner/Operator.
b} Record any instruments delivered through the eserow, if necessary or proper, in
accordance with the terms and provisions of this Agreement.
If the escrow is not in condition to close within the timeframe stated above, either party who
then shall have fully performed the acts to be performed may, in writing, terminate this Agreement in
Development Agreement Between the City and AccessHome Page 11 of 28
the manner set forth in Section 10 hereof, and demand return of its money, papers, or documents.
Thereupon, all obligations and liabilities of the parties under this Agreement shall cease and
terminate in the manner set forth in Section 10 hereof. If neither the City nor the Owner/Operator
have fully performed the acts to be performed before the scheduled closing date, no termination or
demand for return shall be recognized until ten (10) Days after the Escrow Agent shall have mailed
copies of such demand to the other party or parties at the address of its or their principal place of
business. If any objections are raised within the ten (10) Day period, the Escrow Agent is authorized
to hold all money, papers and documents until instructed in writing by all parties to this Agreement
or, upon failure thereof, by a court of competent jurisdiction. If no such demands are made, the
escrow shall be closed as soon as possible. Nothing in this Section 3.8 shall be construed to impair
or affect the rights or obligations of the City or the Owner/Operator to specific performance.
Any amendment of these escrow instructions shall be in writing and signed by the City
Manager and the Owner/Operator. At the time of any amendment, the Escrow Agent shall agree to
carry out its duties as Escrow Agent under such amendment.
All communications from the Escrow Agent to the City or the Owner/Operator shall be
directed to the addresses and in the manner established in Section ll.9 of this Agreement.
The liability of the Escrow Agent under this Agreement is limited to performance of the
obligations imposed upon it under Section 3.8 of this Agreement.
3.8.1 Execution and De�osit of Declaration of Rent Restrictions and Notice of
Affordabilitv Restrictions on Transfer of Pro�ert,y; Recordation of Declaration and Notice. Prior to
the close of escrow, the Owner/Operator shall deposit the executed Declaration of Rent Restrictions,
and concurrently with close of escrow, Escrow Agent shall file the Declaration and Notice for
recordation on the Property with the Office of the Recorder of the County of Shasta. Said
Declaration shall be recorded on the Property junior only to 1) the lien of the construction lender
securing funds for the construction of the Project; and 2) the lien of a permanent loan so long as the
permanent loan is for an amount not greater than the amount due and owing by the Owner/Operator
pursuant to the construction loan plus customary fees and costs payable for the benefit of the
permanent lender in connection with the permanent loan and upon satisfaction and release and
reconveyance of the deed of trust securing repayment of the construction loan.
3.8.2 Execution and Deposit of City Promissory Note and Deed; Recordation of
Deed of Trust. Prior to the clase of escrow, the Owner/Operatar sha11 deposit the executed City
Promissory Note and the executed City Deed of Trust with the Escrow Agent. With close of escrow,
the Escrow Agent shall file the City Deed of Trust for recordation on the Property with the Office of
the Recorder of the County of Shasta. The City Deed shall be a lien against the Property which shall
be junior to a deed of trust securing the Other Financing as described in Section 3.3 of this
Agreement.
3.83 Title Insurance. Concurrently with the recordation of the City Deed of Trust
on the Property, Escrow Agent shall issue and deliver to the City an ALTA Lender's Policy of Title
Insurance for the full amount of the City Loan, showing that title to the Property is vested in the
Owner/Operator and insuring Czty as beneficiary if requested by City.
4. Pre�aration of Plans and Related Documents.
4.1 Pro�ect Mana�er. Subject to the terms of this Agreement, City shall designate a
Project Manager who shall, in addition to other responsibilities under this Agreement, have the right
Development Agreement Between the City and AccessHome Page 12 of 28
of architectural and site planning review of all plans and drawings, including but not limited to
complete structural and engineering plans, landscape plans, and grading plans associated with the
Project as well as any changes therein.
4.2 Citv Review of Substantial Chan�es to Final Plans.
4.2.1 Citiy Project Mana e� r Approval. Notwithstanding the foregoing, any
Substantial Change in ihe Final Plans is subject to City approval. If the Owner/Operator desires to
make a Substantial Change in the Final Plans, the QwnerfOperator shall submit such proposed
change, in writing, to the City for the Project Manager's approval, which approval shall not be
unreasonably withheld. Substantial Changes to the Final Plans shall be deemed approved unless
disapproved within fifteen(15) Days after their delivery to the City.
Nothing in this Section sha11 be construed to relieve Owner/Operator of its obligations under all
applicable laws regarding such changes.
4.2.2 City Disapproval. If the Project Manager disapproves, in whole or in part,
any Substantial Change in the Final Plans, the Project Manager shall state, specifically and in
writing, at the time of disapproval, the reasons for disapproval and the changes which the City
requests to be made for its approval. The reasons for disapproval and such City-requested changes
sha11 be consistent with the approved Final Plans and Scope of Development. In no event may the
City impose a Substantial Change upon the Project or change or modify any aspect of the Projeet
approved by the City. Revised and resubmitted plans in response to a City disapproval shall be
deemed approved unless the Project Manager, within fifteen (15) Days after proper delivery to City,
disapproves the resubmitted plans in whole or in part, in writing.
4.2.3 Substantial Chan�e. A Substantial Change in the Plans sha11 mean any of the
following changes, with respect to the Project:
a) Changes in size or design resulting in an increase or decrease of greater than
ten percent(10%) of square footage or density of Units.
b) Changes in the mix of Units.
c) Changes in the total number of Units.
d) Changes in use of exterior finishing materials substantially affecting
architectural appearance or functianal use and operation of the Project.
e) Material changes in size or placement of public service or handicapped
facilities; or material ehanges in general pedestrian or vehicular circulation in,
around or through the public areas of the Project.
� Material changes in landscaping or in size or quality of exterior pavement,
pedestrian walkways, parkways, or any public areas shown and specified in
the Final Plans.
g) Any change which would preclude or materially reduce the ability to use the
Project as set forth in the Plans.
h) Changes in the Final Project Budget or subsequent change orders that exceed
an amount greater than thirty (30%) above the previously approved
Preliminary Project Budget.
4.3 Pur�ose of Review and Approval. The City's Project Manager's review of the Final
Plans and approval of the Final Plans and any Substantial Changes is not an assurance of the
adequacy or correctness of the Final Plans. City has reserved its rights pursuant to Seetions 4.3 solely
to assure that the Fina1 Plans conform to the Site Development Permit, the Scope of Development
Development Agreement Between the City and AccessHome Page 13 of 28
and the requirements of this Agreement.
4.4 Substantial Chan�e to Project Cost. Should a substantial change in project cost occur
between the Preliminary Project Budget and the Final Project Budget, the Owner/Operator is
bound to abide by the renegotiated Final Project Budget cost figures and may need to obtain
additional private or other types of financing to cover the Project cost.
5. Development of the Site.
5.1 Proiect Budget. At the times calied for in the Schedule of Performance, the
Owner/Operator shall provide to the City a complete final Project Budget for the construction of the
Project in a form and with specificity reasonably satisfactory to the City, including all "hard" and
"soft" costs for the Project and reflecting, as possible, executed contracts. Such final Project Budget
shall be substantially in conformance with the terms of this Agreement and the Project Budget
attached hereto as Exhibit 9.
5.2 Disbursement of Ci_ Loan. The parties agree that upon close of escrow described in
Section 3.8, the remaining proceeds of the City Loan not expended during escrow, will be placed into a
non-interest-bearing account controiled by the City's Finance Department. Each and any disbursement of
funds from this account shall require a written authorization signed by the City's Project Manager
authorizing the release of the requested disbursement. The City's Project Manager shall provide such
written approval,which shall not be unreasonably withheld, within ten(10)business days of receipY of the
request from Owner/Operator.
5.2.1 Disbursement during Construction. Prior to any disbursement of City Loan
proceeds for construction, Owner/Operator and City's Project Manager shall develop a mutually
agreeable disburseinent format. City may provide an advancement of funds at the request of the
Owner/Operator to secure construction equipment or needed construction materials necessary to start
construction. In part, this format shall include certifications from the Project's architect, engineer andlor
general contractor that all materials and construction included in the request for disbursement are
cansistent with approved plans and specifieations and that all materials have been delivered to the Site or
installed and inspected as required. After any advancement, all disbursements shall be based on a
percentage of completion and all disbursements shali reflect ten percent(10%) retention not including the
costs of stored materials. (Retention shall be released upon the issuance of a Certificate of Completion
for the Project.)
The City Loan shall be disbursed in accordance with the mutually agreed upon draw
schedule described above. Disbursement shall be based upon satisfaction of the construction component
upon which the draw request is based as determined in good faith by the City's Project Manager.
Disbursements shall not exceed aggregate amounts set forth in the accepted and approved construction
contracts for the Project. Owner/Operatar and City acknowledge that it shall be the sole responsibility of
the Owner/Operator to obtain the required written authorization for any request for disbursement.
53 Construction. The Owner/Operator sha11 construct the Project according to the
requirements established in this Agreement, including, but not limited to, the Final Plans, the Scope
of Development and the Schedule of Performance. In the event that the cost of construction of the
Project, or any part of the Project exceeds the costs projected by Owner/Operator, the
OwnerlOperator shall, nevertheless, bear the responsibility to complete, at Owner/Operator's cost,
the construction of the Project in accordance with this Agreement. The City and the Owner/Operator
agree that such obligations of the Owner/Operator shall be covenants running with the land and that
they sha11, in any event, and without regard to technical classification or designation, be to the fullest
Development Agreement Between the City and AccessHome Page 14 of 28
extent permitted by law and equity, binding for the benefit of the City and enforceable by the City
against the Owner/Operator, its successors and assigns. These covenants shall terminate upon the
City issuing a Certificate of Completion for the Project.
5.4 Chan�es Durin� Construction. The Owner/Operator covenants and agrees that the
Owner/Operator shall not make or permit to be made any construction of the Project which
incorporates a Substantial Change in the Final Plans without City approval of such changes. The
Owner/Operator shall, prior to their occurrence, notify the City of all Substantial Changes in the
construction as well as all changes which result in a material net increase in cost or extend the period
for construction beyond the Completion Date. The City shall, in its sole discretion, approve or reject
such changes in writing within 15 (fifteen)days after proper delivery to City.
5.5 No Construction Over Utilitv Easements. The Owner/Operator shall not construct
any of the Project on, over, or within the boundary lines of any easement for public utilities on the
Site, unless such construction is provided for in such easement or has been approved by the
beneficiary of the easement.
5.6 Comrnencement and Completion of Construction. The Owner/Operator shall
promptly begin and thereafter make reasonable efforts to diligently pursue to complete the
construction of the Project and the development of the Property in accordance with the provisions of
this Agreement and at the times specified in the Schedule of Performance. The Owner/Operator shall
complete construction no later than the timeframe set forth in the Schedule of Performance. Time is
of the essence.
5.7 Reports• During the period of construction, the Owner/Operator shall once every 90
Days, or more often if requested by the City Project Manager, submit to the Project Manager a
written report of the progress of the work. The report shall be in such form and detail as may
reasonably be required by the Project Manager and shall include a reasonable number of construction
photographs taken since the last report if previously requested by the City.
5.8 Local State and Federal Laws. The Owner/Operator sha11 carry out the construction
of the Project in eonformity with all applicable laws, including a11 applicable federal and state labor
standards.
5.9 Anti-Discrimination During Construction. The Owner/Operator, for itself, and its
� successors and assigns, agrees th�at the following provisions shall apply to, and be contained in all
contracts and sub-contracts for the construction of the Project. (Far purposes of this Section,
Owner/Operator sha11 also mean Contractor or Sub-contractor.)
5.9.1 Em�loyment. The Owner/Operator shall not discriminate against any
employee or applicant for employment because of race, color, religion, age, disability, sex, sexual
orientation, marital status, creed, ancestry, or national origin. The Owner/Operator sha11 ensure that
applicants are employed and that employees are treated during employment without regard to their
race, color, creed, religion, age, disability, sex, sexual orientation, marital status, ancestry, or national
origin. Such action shall include, but not limited to, employment, upgrading, demotion or transfer;
recruitment or recruitment advertising; layout or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The Owner/Operator agrees to
post in conspicuous places, available to employees and applicants for employment, notices setting
forth the provisions of this nondiscrimination clause.
5.9.2 Advertisin�. The Owner/Operator shall, in all solicitations or advertisements
for employees placed by or on behalf of the Owner/Operator, state that all qualified applicants will
Development Agreement Between the City and AccessHome Page 15 of 28
receive consideration for employment without regard to race, color, creed, religion, age, disability,
sex, sexual orientation,marital status, ancestry, or national origin.
510 Public Im�rovements. The Owner/Operator shall, at Owner/Operator's expense,
undertake and complete any modification, construction, relocation or improvement of publie
facilities, improvements and utilities on or for the development of the Site.
5.11 Cit_y Access to the Site. The Owner/Operator sha11 permit the City's representatives
access, without charge, to the entire Site at any time and for any purpose which the City reasonably
eonsiders necessary to carry out its obligations and protect its interests under the Agreement.
Purposes for City entry may include, without limitation, inspeetion of all work being performed in
connection with the construction of the Project. Any City personnel entering on the Site shall
register immediately at Owner/Operator's construction office, shall be escorted by the
Owner/Operator's designee, and shall wear proper clothing and safety equipment, and shall comply
with all job site safety rules. The City assumes all liability and responsibiliry for failure of its
representatives to comply with such requirements and for their negligent acts and/or willful
misconduct.
5.12 Certificate of Completion. After the City has determined that the (�wnerlOperator has
completed the Project in accordance with the OwnerlOperator's obligations under this Agreement
and a Notice of Completion has been recorded and the subsequent 30-day mechanic's lien period has
expired, the City will record, and will furnish the Owner/Operator with, a "Certificate of
Completion" certifying such completion. Such certification shall be a conclusive determination of
satisfaction and termination of the agreements and covenants in the Agreement with respect to the
obligations of the Owner/Operator to construct the Project and of the dates for the commencement
and completion of eonstruction, subject to any qualifications or limitations stated in sueh
certification. Such eertification and sueh determination shall not constitute evidence of compliance
with or satisfaction of any governmental requirements other than the obligation to construct the
Project or any obligation of the Owner/Operator to any holder of a mortgage, or any insurer of a
mortgage, securing money loaned to finance all or any part of the Project.
The Ci1y Manager or designee shall prepare and execute the Certificate of Completion in a
form suitable for reeording in the Official Records of Shasta County pursuant to Exhibit ll.
5.12.1 Refusal to Issue. If the City refuses or fails to provide a Certificate of
C�ompletion, the City � shall, within ten (TO) business days after written request by the
Owner/Operator, provide the Owner/Operator with a written statement, indicating in adequate detail
in what respects the Owner/Operator has failed to complete the Project in accordance with the
provisions of the Agreement, or is otherwise in default, and what measure or acts will be necessary,
in the opinion of the City, for the Owner/Operator to take or perform in order to obtain such
certification. If the City wrongfully refuses to issue a Certificate of Completion, or upon passage of
the ten (10) business day period, the Owner/Operator may seek a writ or order compelling the City to
issue the Certificate.
5.13 Notification of Contractors, Architects, and En ineers. The Owner/Operator shall
notify its Project Contractors, architects and engineers in writing of the requirements of this
Agreement. Owner/Operator shall include, where applicable, the provisions of this Agreement in
contracts and subcontracts for the Project, and the Owner/Operator shall enforce such provisions.
5.14 Cit�Inspection. The City shall have the right to inspect all books and records of the
Owner/Operator related to the Project and the construction and changes in construction to assure
Owner/Operator's compliance with the provisions of this Agreement and Final Plans.
Development Agreement Between the City and AccessHome Page 16 of 28
5.1 S Supervision of the Work. The Owner/Operator shall be solely responsible for
monitoring al1 construction, ensuring that the construction is performed in a workmanlike manner,
and enforcing the terms of this Agreement and the construction contracts. City's Project Manager's
inspections of construction are made solely for the monitoring of City Loan disbursements, assuring
Owner/Operator's performance under this Agreement and protecting the City's security interest in
the Property.
6. Use of Pro�ert�
6.1 Uses. The Owner/Operator covenants and agrees for itself, its successors, its assigns and
every successor in interest to the Properiy, that during construction and through the Affordability Period
(as herein described) the Owner/Operator, its successors and assigns, shall devote, use, operate, and
maintain the Property in accordance with the Declaration of Rent Restrictions and this Agreement. All
uses conducted on the Property, including, without limitation, all activities undertaken by the
Owner/Operator pursuant to this Agreement, shall conform to the applicable provisions of the City of
Redding Municipal Code, and any restrictions of record or any of the recorded documents against the
Property.
6.2 HOME Agreement. The Owner/Operator will enter a HOME Agreement that further
details AccessHome's responsibilities as a CHDO and their responsibilities under the HOME program
(Exhibit 3).
6.3 Affordable Housin�.
6.3.1 Number and Tvpe of Units; Income Eli_ibilit� The Project includes one,
single-family unit, of approximately 1,200 square feet, of which will be located at the Enterprise Park
Property. The Owner/Operator agrees to make the Affordable Unit available to, restrict occupancy
to, and rent at an Affordable Rent to Low-Income households throughout the Affordability Period.
This Low-Income unit is referred to herein as the Affordable Unit.
6.3.2 Affordabitity Restrictions. The City and the Owner/Operator agree to enter
into a separate and binding Declaration of Rent Restrictions in the form set forth as Exhibit 4 to this
Agreement. The City and the Owner/Operator shall each execute such document and submit it to the
Escrow Agent for recording against the property prior to or simultaneously with the close of escrow
as described in Section 3.8.
The covenants contained in the Declaration of Rent Restrictions shall remain in full
force and effect for the entire Affordability Period. The issuance of a Notice of Completion by the
City shall not affect the Owner/Operator's obligations under the Declaration of Rent Restrictions.
6.3.3 Determination of Affordable Rent for the Affordable Units. Each Affordable
Unit shall be rented at a monthly rental amount ("Affordable Rent") not to exceed the manthly rental
amount in accardance with Section 50053 of the California Health and Safety Code. As of the
approval of this Agreement, the following formulas represent maximum Affordable Rents:
(i) for the Very Low Income Units: One-twelfth (1/12) of thirty percent(30%) of fifty percent(50%)
of the area median income adjusted for family size appropriate to the unit applicable to the City of
Redding, as determined by the United States Department of Housing and Urban Developrnent (the
"Applicable Median Income"); and (ii) for the Lower-Income Units: One-twelfth (1/12) of thirty
percent (30%) of siXty percent (60%) of the Applicable Median Income adjusted for family size
appropriate to the unit.
Development Agreement Between the City and AccessHome Page 1'7 of 28
6.3.4 Monitorin�/Annual Report. Owner/Operator shall prepare and submit
annually the certification reports, as requested by the City, during the Affordability Period. The
report shall identify each Affordable Unit, the rental rate, and the income and family size of the
occupants, as well as any other project information that is required by State redevelopment law and
requested by City. The required income information shall be supplied by the tenant in the form of
source documentation kept at the Property and shall be available for City review at the City's request.
Annually, during the Affordability Period, the Owner/Operator, its designee, or
successor shall cooperate fully with the City to schedule at a mutually convenient time, an annual on-
site inspection by the City of the Affordable Units and file record review of the tenant source
documentation referenced above.
6.4 Management and Maintenance. The OwnerlOperator shall rnanage and maintain, or
cause to be managed and maintained, the Project. The Owner/Operator shall maintain the Project in
good condition throughout the Affordability Period. The City of Redding Community Services
Depar�ment shall keep parking areas, lighting fixtures, trash enclosures, common areas and all areas
which can be seen from adjacent streets, free from any accumulation of debris or waste materials by
regularly scheduled maintenance. Should there be a conflict between this DA and any Exhibit
pertaining to the management and maintenance of the Property, the Exhibit prevails.
If, at any time, the Owner/Operator fails to maintain such areas in the manner required
pursuant to this Agreement and any pertinent Exhibit to the Agreement, and said condition is not
corrected within the time set forth in Section 10.1 upon written notice by the City pursuant to Section
11.9 of this Agreement, the City may, but shall not be obligated to, perform the necessary
maintenance and the Owner/Operator shall pay such costs as are reasonably incurred for such
maintenance, together with interest at the maximum lawful rate until full payment is made to the
City. The monies expended by the City shall become a lien against the Property and the
OwnerlOperator hereby eonsents to the recordation of such lien without prior notice by City to
Owner/Operator. Said lien shall be junior and subordinate to deeds of trust for financing or
refinancing of the Project as allowed pursuant to this Agreement.
Notwithstanding the above, the City reserves for itself the right to exercise any and all
remedies available to it under this Agreement and the Deed of Trust securing the City's rights under
this Agreement.
7. Owner/Operator's General Obli atg ions•
7.1 Obligation to Refrain From Discrimination. The Owner/Operator covenants by and
for itself and any successors in interest that there shall be no discrimination against or segregation of
any person or group of persons on account of race, color, religion, sex, marital status, national origin,
ancestry, familial status, or disability as defined in California Government Code Section 12955, et
seq., in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor
shall the Owner/Operator itself or any person claiming under or through it establish or permit any
such practice or practices of discrimination or segregation with reference to the selection, location
number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property. The
foregoing covenants shall run with the land.
7.2 Non-Discrimination Covenants in Deeds Leases and Contracts. All such deeds,
leases or contracts shall contain or be subject to substantially the following nondiscrimination or non- �
segregation clauses as are contained in Sections 33435 and 33436 of the California Health and Safety
Code:
Development Agreement Between the City and AccessHome Page 18 of 28
7.2.1 In deeds: "The grantee herein covenants by and for himself or herself, his or
her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that
there shall be no discrimination against or segregation of, any person or group of persons on account
of race, color, creed, religion, sex, marital status, national arigin, or ancestry in the sale, lease,
sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the
grantee himself or herself or any person claiming under or through him or her, establish or permit
any such practice or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land
herein conveyed. The foregoing covenants shall run with the land."
7.2.2 In leases: "The lessee herein covenants by and for himself or herself, his or
her heirs, executors, administrators and assigns, and all persons claiming under or through him or
her, and this lease is made and accepted upon and subject to the following conditions:
There shall be no discrimination against or segregation of any person or group of
persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in
the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein
leased nor sha11 the lessee himself or herself, or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference to
the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants, or
vendees in the premises herein leased."
7.2.3 In contracts: "There shall be no discrimination against or segregation of any
person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the
premises, nor shall the transferee himself or herself or any person claiming under or through him or
her, establish ar permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or
vendees of the premises."
The covenants contained in this Section 7.2 shall remain in effect in perpetuity, and issuance
of a Certificate of Completian by the City sha11 not affect the Owner/Operator's obligations under
this Section.
7.3 Payment of Taxes, Assessrrients, Encumbrances and Liens. The Owner/Operator
shall pay prior to delinquency a11 real estate taXes and assessments assessed and levied on the
Property, at all times prior to the release of the lien of the City's Deed of Trust. Prior to issuance of a
Certificate of Completion, the Owner/Operator shall not a11ow to be placed on the Property any
mortgage, trust deed,encumbrance or lien unless expressly authorized by this Agreement or the City.
The Owner/Operator shall promptly remove or satisfy any levy or attachment made on all or any part
of the Property. Nothing contained in this Agreement shall prohibit the Owner/Operator from
reasonably contesting the validity or amounts of any tax assessment, encumbrance or lien, nor to
limit the remedies available to the Owner/Operator in respect to such contest.
7.4 Effect and Duration of Covenants. The covenants contained in the Agreement and
Declaration of Rent Restrictions which subject and burden the Property with covenants regarding use
of the Property and regarding nondiscrimination, are covenants running with the land. It is intended
and agreed that the agreements and covenants provided in this Agreement and the Declaration of
Rent Restrictions shall be covenants running with the land and equitable servitudes thereon and that
they shall, in any event, and without regard to technical classifications or designation, be binding, to
the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the
Development Agreement Between the City and AccessHome Page 19 of 28
City, the City's successors and assigns, any other governmental entity acting within its authority and
any successor in interest to all or any part of the Property against the Owner/Operator, its successors
and assigns and every successor in interest to all or any part of the Property, and any party in
possession or occupancy of the Property and any subcontracting party or parties or other transferees
under this Agreement.
7.5 Effect of Violation. The City is deemed the beneficiary of the terms and provisions
of this Agreement, the Declaration of Rent Restrictions and the covenants running with the land, both
for its own right and for the purposes of protecting the interests of the coinmunity and other parties,
public or private, in whose benefit this Agreement and the covenants running with the land have been
provided. The Agreement and the Declaration of Rent Restrictions shall run in favor of the City
without regard to whether the City has had or does have any interest in the Property.
7.6 Indemnification. Owner/Operator hereby agrees to protect, defend, indemnify and
hold harmless, City, its officers, elected or appointed officials, employees, agents and volunteers
from and against any and all claims, damages, losses, expenses,judgments, demands,penalties, fines,
defense costs, and consequential damage or liability of any kind or nature, however caused, arising
directly or indirectly out of the obligations or operations herein undertaken by Owner/Operator, but
only to the extent such damage or liability is caused in whole or in part by any act or omission of the
Owner/Operator, any contractors or subcontractors of Owner/Operator or anyone for whose acts
Owner/Operator may be liable, including, but not limited to, concurrent active or passive negligence,
except where caused by the active negligence, sole negligence or willful misconduct of the City or
resulting or arising from allegations that the City failed to administer this Agreement in accordance
with applicable law. Owner/Operator will conduct all defense at its sole cost and expense and City
shall have right to approve or disapprove legal counsel defending the City. City shall be reimbursed
for all costs and attorney's fees incurred in enforcing this obligation. This indemnity shall apply to aI1
claims and liability regardless of whether any insurance policies are applicable, but it is the intent of
the parties that nothing in this provision is intended to otherwise reduce any insurance coverage on
any policy of insurance held by the Owner/Operator or its subcontractors to which the City would
otherwise be entitled to in the absence of this provision; accardingly the indemnity obligations
hereunder shall not apply to the extent this indemnity would reduce or eliminate existing insurance
coverage that would inure directly or indirectly to the benefit of the City. The policy limits do not act
as a limitation upon the amount of indemnification to be provided by Owner/Operator. This Section
'7 sha11 survive the termination of this Agreement, irrespective of the reason for its termination, until
a date that is ten (10) years following the date the City furnishes the Owner/Operator a Certificate of
Completion; provided however that nothing in this provision i� intended to extend the statute of
limitations by which any party other than the City can bring their claim.
7.7 In addition to the indemnity provided in Section 7.6, Owner/Operator hereby agrees
to indemnify, defend, protect and hold the City harmless from and against any and a11 liability,
damages, penalties, claims, suits, actions, proceedings, loss, cost or expense (including, but not
limited to, attarney's fees and court costs) arising out of the failure of Owner/Operator to comply
with the Prevailing Wage Law (Labor Code section 1'720 et seq.) including, but not limited to, the
payment of prevailing wages, if required by law in connection with the activities authorized by this
Agreement. Owner/Operator further agrees to waive all claims and causes of action it may have
against City pursuant to Labor Code section 1781.
7.8 Insurance Requirements and Public Safetv Protections. Owner/Operator shall
promptly take steps to protect the public from the risk of injury whether from the condition of the
Property or Owner%Operator's activities in connection with the Property. The OwnerfOperator shall
obtain and maintain, or require the contractor and subcontractors for the Project to purchase and
maintain the following insurance for claims which may result from the operations under the
Development Agreement Between the City and AccessHome Page 20 of 28
Agreement of the Owner/Operator, any contractor, subcontractor or anyone directly or indirectly
employed by any of them, or by anyone for whose acts any of them may be liable:
7.8.1 Owner/Operator Insurance Requirements. Owner/Operator shall procure and
maintain for the duration of the Agreement insurance against claims for injuries to persons or
damages to property which may arise from or in connection with Owner/Operator's activities
hereunder. The cost of such insurance shall be borne by Owner/Operator. Owner/Operator shall
maintain the following noted insurance:
Coverage Required Not Required
Commet'Cial General Liability X(if General Contractor does not carry)
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder's Risk/Course of Construction X(D�ring Construction)
Hazai'd/A11 Risks X (Following Construction)
7.8.1.1 Course of Construction/Builder's Risk Insurance. Owner/Operator
shall provide proof of Course of Construction/Builder's Risk Insurance praviding coverage for "all
risks" of loss during the construction phase of the Project in the amount of the combined total of the
City and Other Financing as stated in Section 3.1 and 3.3 of this Agreement.
7.8.1.2 Hazard Insurance. Following completion of construction,
Owner/Operator shall keep the improvements now existing or hereafter erected on the Project Site
insured for full replacement value against loss by fire, hazards included within the term "extended
coverage," and such other hazards as the City may require and in such amounts for the full remaining
term of the Agreement.
7.8.2 General Contractor Insurance Requirements. During the course of
construction,the General Contractor shall maintain the following noted insurance:
Coverage Required Not Required
Commereial General Liability X
Coinprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder's Risk/Course of Construction X
Hazard/All Risks X
7.8.21 Minimum Scope and Limits of Insurance. Coverage shall be at least
as broad as:
(a) Insurance Services Office form number CG-0001, Commercial General
Liability Insurance, in an amount not less than $1,000,000 per occurrence $2,000,000 general
aggregate for bodily injury,personal injury and property damage;
(b) Insurance Services Office form number CA-0001, Comprehensive
Automobile Liability Insurance, which provides for total limits of not less than$1,000,000 combined
single limits per accident applicable to all owned/non-owned and hired vehicles;
(c) Statutary Workers Compensation required by the Labor Code of the State
Development Agreement Between the City and AccessHome Page 21 of 28
of California and Employers' Liability Insurance in an amount not less than $1,000,000 per
occurrence. Both the Workers Compensation and Employers' Liability policy shall contain the
insurer's waiver of subrogation in favor of the City, their respective elected officials, officers,agents,
employees and volunteers;
(d) Deductibles and Self-Insured Retentions: Any deductibles or self-insured
retentions, and any modifications thereof, must be declared to and approved by the Risk Manager of
the City of Redding.
7.8.3 Other Insurance Provisions. All policies required by this Agreement are to
contain or be endorsed to contain the following provisions:
For General Liability and Automobile Liability coverages:
a) The City, its elected officials, officers, employees, agents, and
volunteers are to be covered as additional insureds as respects: liability arising out of work or
operations performed by or on behalf of Owner/Operator and/or Contractor; premises owned,leased,
or used by Owner/Operator and/or Contractor; or automobiles owned, leased, hired, or borrowed by
Owner/Operator and/or Contractor. The coverage shall contain no special limitations on the scope of
protection afforded to the City, its elected officials, officers, employees, agents, or volunteers.
b) The insurance coverage of Owner/Operator and/or Contractor shall be
primary insurance as respects the City, its elected officials, officers, employees, agents, and
volunteers. Any insurance or self-insurance maintained by the City, its elected officials, officers,
employees, agents, or volunteers shall be in excess of Owner/Operator's and/or Contractor's
insurance and shall not contribute with it.
Each insurance policy required by this Agreement shall be endorsed to state that
coverage shall not be cancelied except after thirty (30) Days prior written notice has been given to
the City Risk Manager.
7.8.4 Acce�tabilit�of Insurers. Insurance is to be placed with insurers with a
Bests' rating of no less than A-VII. This requirement may, however, be waived in individual cases
pravided, however, in no event wi11 a carrier with a rating below B: IX be acceptable.
7:8.5 Verification of Covera�e. Owner/Operator shall be responsible for furnishing
the City's Risk Manager with all certificates of insurance and original endorsements affecting
specific coverage required by this Agreement. The certificates and endarsements for each insurance
policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. The City
may withhold Project payments if required certificates of insurance and endorsements have not been
provided. The City's Risk Manager reserves the right to require complete certified copies of all
required insurance policies.
7.8.6 Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City's Risk Manager.
Development Agreement Between the City and AccessHome Page 22 of 28
7.9 Failure to Maintain. If the Owner/Operator fails to obtain or maintain, or cause to be
obtained and maintained, any insurance required by this Agreement, the City shall have the right to
purchase the insurance and add to the principal amount of the City Loan the full costs to City of
obtaining such insurance.
8. Prohibitions A�ainst Assignment and Transfer.
8.1 Prohibition A�ainst Transfer of Ri�hts or Obli at� ions. The City has entered into this
Agreement in reliance upon the identities and qualifications of the Owner/Operator. The
Owner/Operator may not assign or otherwise transfer Owner/Operator's rights or obligations under
this Agreement without the prior written consent of the City.
8.2 Transfer of Interest. The Owner/Operator represents that it has informed its
members, and the Owner/Operator shall inform any successors in interest of the provisions of this
Section 8. Subject to restriction of federal and State securities regulation and prior to issuance of a
Certificate of Completion, the Owner/Operator shall not permit transfers of ownership which would
result in a change in management authority or decrease in fiscal ability with respect to
OwnertOperator or, with respect to the parties in control of the Owner/0perator or the degree of such
control,by any method or means, including, but not limited to, sale,transfer, increased capitalization,
merger with another corporation, corporate or other amendments, issuance of additional members or
new membership interests or classification of such interests, or otherwise. With respect to this
provision, the Owner/Operator the OwnerlOperator represents that it has the authority to agree to and
bind OwnerlOperator to this provision.
8.3 Transfer or Assi n� ment•
8.3.1 Transfer or Assi�nment of Interests, Ri�hts, or Obligations in the Agreement.
Except as required to obtain the financing approved by the City, the Owner/Operator shall not, prior
to issuance of the Certificate of Completion, make any total or partial sale, assignment or transfer of
any interest, right or obligation under this Agreement without the prior written approval of the City.
8.3.2 Transfer or Assignment of Interests in the Pro�erty. Except as required to
obtain the financing approved by the City, the Owner/Operator shall not, prior to issuance of the
Certificate of Completion, make any total or partiai sale, assignment or transfer of any interest in the
Property without the prior written approval of the City.
8.3.3 One-Time Transfer to Controlled Entitv. Notwithstanding the foregoing, the
City Manager is hereby authorized to approve, in writing, a one-time assignment by Owner/Operator
of all of its rights and obligations under the Agreement, and all of its intere�t in the Properiy, to a
single-asset corporation, partnership, or limited liability company wholly owned or controlled by
Owner/Operator, subject to Owner/Operator's compliance with the requirements of this Agreement.
83.4 Conditions of Approval. The City shall be entitled to require the following as
conditions to any approval of any assignment or transfer of any interest in the Property, the
Agreement, or the OwnerlOperator:
a) Qualifications and Financial Res�onsibility_ Any proposed transferee shall
have the qualifieations and financial responsibility, as determined by the City, necessary and
adequate to fulfill Owner/Operator's obligations under the Agreement.
b) Assum�tion of Obli at� ions• Any proposed transferee shall, for itself and its
successors and assigns, expressly assume all of Owner/Operator's obligations under the Agreement
Development Agreement Between the City and AccessHome Page 23 of 28
and shall agree to be subject to all the conditions and restrictions to which the Owner/Operator is
subject. Said assumption of obligations shall be in writing in recordable form approved by the City
and shall expressly be for the benefit of the City. The fact that any such transferee shall not have
assumed such obligations or so agreed, shall not relieve such transferee from such obligations,
conditions, or restrictions, or deprive the City of any rights or remedies or controls with respect to all
or any part of the Property or this Agreement that the City would have had, had there been no such
transfer or change.
c) Review of Documents. The Owner/Operator shall submit to the City for
review and approval all legal documents involved in effecting such transfer. Such documents shall be
subject to the City's prior written approval.
d) Limits on Consideration. Prior to issuance of the Certificate of Completion,
the consideration payable for the transfer by such transferee of any interest in the Agreement shall
not exceed the actual costs incurred for the Project, if any, actually made. It is the intent of this
provision to preclude assignment of the Agreement ar transfer of the Property for profit prior to the
completion of the Project. The transferee's obligation to pay any excess to the City may be satisfied
by the transferee's assumption of the City Promissory Note.
e) Other Conditions. The Owner/Operator and such transferee shall comply
with such other conditians as the City may find necessary and reasonable in order to achieve and
safeguard the purposes of the Agreement.
83.5 Owner/Operatar Obli�ations Not Relieved. In the absence of specific written
agreement by City to the contrary, no such transfer or approval of transfer by City shall relieve the
Owner/Operator, or any other party bound in any way by the Agreement, from any of its obligations
under the Agreement.
9. Financing Defaults.
9.1 Lender's Option to Cure Defaults. After any default of Owner/Operator's
obligations under the Agreement, each Lender (or successor to Lender) shall have the right, at its
option, to cure or remedy such default (or to the extent that it relates to the part of the Property
covered by its lien), within the time for cure allowed to Owner/0perator as stated in Section 10.1,
and to add the cost of such cure to the debt and the lien secured by the Property. If the breach or
default relates to construction of the Project; however, Lender shall not undertake or continue the
construction of the Project (beyond the extent necessary to conserve or protect Project or
construction already made) unless Lender assumes in writing Owner/Operator's obligations to
complete the Project on the Property in the manner provided in the Agreement. Any Lender (or
successor to Lender) who properly completes the Project as provided in the Agreement shall be
entitled, upon written request made to the City, to receive a Certificate of Completion from the City
in a manner provided in the Agreement.
9.2 City's Option to Pay Debt. If, after Owner/Operator's default under the
Agreement and after sixty (60) Days prior written notice from the City, the Lender fails to exercise
its option to construct the Project or undertakes, but does not make reasonable efforts to diIigently
pursue to completion, construction of the Project in accordance with the Schedule of Performance set
forth in Exhibit 10 to this Agreement, the City shall have the option, exercisable only by written
notice to the Lender within ten (10) Days after expiration of the sixty (60) Day period, to do one of
the following: � � �
9.2.1 Pay Debt. The City shall be entitled, at its option, to pay to the
Development Agreement Between the City and AccessHome Page 24 of 28
Lender the amount of the secured debt and acquire or terminate Lender's secured position.
9.2.2 Deed in Lieu. If title to the Property has vested in Lender by way of a
deed in lieu of fareclosure, the City shall be entitled, at its option, within sixty (60)Days from notice
to the City of Lender's acceptance of such a deed, to a conveyance to it of the Property upon
payment to Lender of an amount equal to the sum of the following:
a) The secured debt at the time of deed in lieu of foreclosure (less application of rentals
and other income received during foreclosure proceedings).
b) All expenses with respect to the deed in lieu of foreclosure.
c) The costs of Project improvements made by Lender.
9.2.3 Foreelosure. The City shall have the right to bid at any foreclosure
sale held by or for any Lender on the Property.
9.3 City's Option to Cure Loan Default. In the event of a default prior to the
completion of the Praject by the OwnerJOperator, or any successor in interest to the Owner/Operator
by reason of any of its obligations under any mortgage or other instrument creating an encumbrance
or lien upon the Property, the City may at its option cure such default or breach following the
expiration of any applicable cure period (or sooner upon notice to the Owner/Operator), in which
case the City sha11 be entitled, in addition to any of its other rights or remedies, to reimbursement
from the Owner/Operatar of all costs and expenses incurred by the City in curing such default and to
a lien upon the Property for such reimbursement, provided that any such lien shall be subject always
to the lien of any then existing liens on the Property authorized by this Agreement(including any lien
contemplated, because of advances yet to be made).
9.4 Inclusion in Loan and Security Instruments. Either City's rights or remedies
under this Section shall be included in a11 loan and security instruments of Lender related to the
Property; or City and such Lender shall enter into an intercreditor agreement in a form and substance
acceptable to the City and its counsel, incorporating such rights and remedies.
10. Defaults and Remedies. The provisions of this Section are in addition to any
provisions in the City Deed regarding default and remedies. Subject to any extension of time
permitted by this Agreement, a failure or delay by the City or the Owner/Operator to perform any
term or provision of this Agreement constitutes a material default of this Agreement.
10.1 Cure. Except as otherwise provided in the Agreement, if either party defaults in, or
breaches, the Agreement, such party shall cure such default or breach within thirty (30) Days after
receipt of written notice from the other party of such default or breach. If the defaulting party does
not cure or demonstrate to the reasonable satisfaction of the other party that it has acted and
continues to act promptly and diligently to cure the default within such time,the aggrieved party may
declare an `Bvent of Default" and institute proceedings to cure and remedy such default or breach,
including, but not limited to, proceedings to compel specific performance by the party in default.
While neither the City nor Owner/0perator is relieved of any obligation under this Agreement to give
notice, mere failure to notify the other party shall not be deemed a waiver of the defaulting party's
default.
10.2 Termination bv Citv Prior to Completion of Construction. If, prior to issuance of
Certificate of Completion and without City approval, the Owner/Operator assigns any interest in the
Agreement or the Property, or permits a change in ownership or control in the Owner/Operator in
violation of this Agreement, defaults in its obligations related to the development of the Project as set
forth in the Agreement, abandons or unreasonably suspends construction work on the Project, or
Development Agreement Between the City and AccessHome Page 25 of 28
permits any unauthorized encumbrance or lien (including tax liens) and fails to discharge any such
unauthorized lien or encumbrance then the City may elect to terminate the Agreement at its option or
invoke any other reinedy provided in this Agreement, subject to the cure period provided for in
Section 101. In such event, the City shall be entitled to damages, without any deduction, offset, or
recoupment whatsoever.
10.3 Cit�Ri�ht to Pro�ert� In addition to any other rights of the City, in the event of
termination of the Agreement, the City shall void the Lease with AecessHome and retain full
ownership of the Property.
10.4 Other Ri�hts and Remedies of Citv. The City shall have the right to institute such
actions or proceedings as it may deem desirable to carry out the purposes of this Section.
10.5 No Waivin�bv Delav. Any delay by the City or OwnerJOperator in asserting any
rights under this Section 10 shall not operate as a waiver of such rights or to deprive such party of, or
limit, such rights in any way. Any waiver in fact made by the City or Owner/0perator with respect
to any specific default shall not be considered as a waiver of the rights of such pariy with respect to
any other defaults or with respect to the particular default except to the extent specifically waived in
writing.
10.6 Assignment of Contracts; Power of Attorney. Subject to the rights of the
Construction Lender, if any, and upon execution by the City of appropriate assignment and
assumption documents, all contracts with Contractors, subcontractors, suppliers and other entities
related to the canstruction of the Project and all sources of funds for construction of the Project are
irrevocably assigned by the Owner/Operator to the City upon City demand after default by the
OwnerlOperator.
10.7 Dela,y for Causes Beyond Control of Part� For the purposes of any of the provisions
of the Agreement, neither the City nor the Owner/Operator shall be considered in breach of, or
default in, its obligations with respect to the preparation of the Property for development, or the
beginning, prosecution, and completion of construction of the Project, if delay in the performance of
such obligations is due to unforeseeable causes beyond the delayed party's control and without its
fault or negligence. Unforeseeable causes shall include acts of God, acts of a public enemy, acts of
the State or Federal Government, acts of the other party, fires, floods, epidemics, discovery of
protected species or historical artifacts upon the Property, quarantine restrictions, strikes, freight
embargoes, a general moratorium on financing for projects of the same type, and unusually severe
weather (as for example, floods, tornadoes, or hurricanes) or delays of subcontractors due to such
causes. In the event of the occurrence of any such enforced delay, the time or times for performance
of such obligations of the City and Owner/Operator shall be extended for the period of the enforced
delay, as determined by the City, provided that the party seeking the benefit of the provisions of this
Section shall, within thirty (30) Days after the party has or should have knowledge of any such
enforced delay, have first notified the other party, in writing, of the delay and its cause, and requested
an extension for the period of the enforced delay. In no event, however, shall any period of enforced
delay exceed ninety (90) Days if the party claiming enforced delay has not demonstrated, to the
reasonable satisfaction of the other party, that it has acted and continues to act promptly and
diligently to terminate such enforced delay.
10.8 Ri�hts and Remedies Cumulative. The rights and remedies of the parties to the
Agreement sha11 be cumulative, and the exercise by either party of any one or more of such remedies
shall not preclude the exercise by it, at the same or different times, of any other�such remedies for the
same default or breach or of any of its remedies for any other default or breach by the other party.
The remedies set forth in this Agreement shall not be construed to deny either party of any other
Development Agreement Between the City and AccessHome Page 26 of 28
rights in law or equity which may be available to it in the event of a breach of this Agreement. No
waiver made by either such party with respect to the performance of any obligation of the other party
or any condition to its own obligation under the Agreement shall be considered a waiver of any rights
beyond those expressly waived in writing.
11. General Provisions.
11.1 Time for Actions. The City and the Owner/Operator shall each do the actions
required of them, on or before the times specified in this Agreement. Unless otherwise provided, the
City shall give required approvals or disapprovals within fourteen (14)Days after submission, except
matters which must be decided by the City Board of Directors or the City Council of the City, which
shall be decided within forty-five (45)Days.
11.2 Counterparts. This Agreement may be signed in counterparts, and is executed in two (2)
duplicate originals, each of which is deemed to be an original and one and the same instrument. This
Agreement includes Pages 1 through 27 and Exhibits 1 through 13, which constitute the entire
understanding and agreement of the parties.
11.3 Prioritv of Contents of Agreement. In the event af a conflict between the terms of
this Agreement and the Exhibits, this Agreement shall be given precedence.
11.4 Inspection of Books and Records. The City has the right, at all reasonable times and
upon reasonable notice, to inspect the books and records of the Owner/Operator pertaining to the
Property as necessary to assure compliance with the provisions of this Agreement. The
Owner/Operator sha11 keep such books and records as the City may reasonably require to assure
Owner/Operator's performance of its obligations under this Agreement.
11.5 Fees Commissions Gifts or Interests. The City shall not be liable for any real estate
commissions, brokerage fees or finder's fees which may arise from this Agreement. The City and
the Owner/Operator each represent that neither has engaged any broker, agent or finder, and that
neither claims such a commission or fee, in connection with this Agreement. The Owner/Operator
shall pay no fee or commission, make no gifts and provide no interest in the Loan to any employee or
official of the City or the City of Redding.
11.6 Entire A�reement. This Agreement and all of the attached Exhibits integrate all of
the terms and conditions related or incidental to its subject matter�, and supersede all negotiations or
previous agreements between the parties with respect to its subject matter.
11.7 Waivers and Amendments. No waivers, changes, amendments or alterations shall be
effective unless in writing and signed by all parties. However, minor amendments which do not result in
a substantial or functional change to the original intent of the Agreement and do not cause an increase to
the maximum amount payable beyond what is considered substantial under Section 4.2.3, may be agreed
to in writing between Owner/Operator and the City Manager or designee.
11.8 Non-liabilitv of City Officials and Emplo,yees. No member, official or employee of
the City shall be personally liable to the Owner/Operator, or any successor in interest, in the event of
any default or breach by the City or for any amount which may become due to the Owner/Operator
or its successors, or on any obligations under the terms of this Agreement.
ll.9 Notices and Demands. Any notice, demand or other communication under the
Agreement by either party to the other shall be deemed to have been full and properly given when
made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office,
Development Agreement Between the City and AccessHome Page 27 of 28
certified mail, postage prepaid, to the addresses for Owner/Operator and C�ty stated in S�ctions 1.19
and I.8, respectivety, or deiivered by email to the email address listed foc the 4wner/Operator and
City in Sections 1.I9 and 1.8,respectively, and evidenced by a fax receipt,
11.10 3urisdictian, Venue and Attorne,ys' Fees.
1 I,10.I Jurisdiction and Venue. Any legal action(s) concerning the Agreement or the
performance of any party there under shall be 6rought onty in the court of appropriate jurisdiction in
the County of Shasta. Bath the OwnerlOperatar and the City agree that jurisdictioi� and venue shail
oniy be in said courts.
11,10.2 Attorneys' Fees. In the event any legaI action, including arbitration, is
brought by either party to this Agreement to enforce this Agreement or for breach of this Agreement
or for a declaration of the rights and duties under this Agreement, the prevailing party shal) recover
costs and reasonabte attorney's fees in addition to any other relief to which that party may be
entitled.
IN WITNESS WHEREQF,the parties have executed this Agreement as of the Effective Date.
City o Redding, a municipal corporation
Date: �. � "� J
By: Kr� s��en Schreder, Mayor
A�'�EST� APFRO AS T FORM:
p . �; �
,;���,�;' "`.��,:�°R.� `..�..�,� � ��
�,�`` �.�y: Pamela Mize, City Clerk By: Barry E. DeWalt, City ttorney
Rural Resouxces Community Development, Inc. dba
AccessHame
� ` � ���
t.:�
By.} � � �_,�wa��; �����_� �� �.
��;-
Dawn Smith, Executive Director
Development Agreement Between the City and AccessHome Page 28 of 2&
LIST OF EXHIBITS
EXHIBIT 1: Legal Description—Enterprise Park
EXHIBIT 2: Location Map—Enterprise Park
EXHIBIT 3: HOME Agreement
EXHIBIT 4: Declaration of Rent Restrictions
EXHIBIT 5: City Deed of Trust
EXHIBIT 6: City Promissory Note
EXHIBIT 7: Ground Lease
EXHIBIT 8 Scope of Development
EXHIBIT 8.5: Preliminary Project Plans (Concept Design Package—Enterprise Park)
EXHIBIT 9: Project Budget
EXHIBIT 10 Schedule of Performance
EXHIBIT 11: Certificate of Completion
EXHIBIT 12: Notice of Completion
EXHIBIT 13: Section 3 Clause
EXHIBIT 14: Fair Housing Poster
Development Agreement Between the City and AccessHome
EXHIBIT 1
LEGA�DESCRIPTION
Enterprise Park
FOR APN/PARCEL ID: 068-290-004-000
LEGAL DESCRIPTION PENDING
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Exhibit 3
RECORDING REQUESTED BY:
City of Redding
CITY BUSINESS-NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
Ciry of Redding—Housing Division
P.O.Box 496071
777 Cypress Avenue
Redding,CA 96049-6071
HOME Program Funded Rental Project Agreement
This Agreement is entered into this day of August 2021, by and between RESOURCES
FOR RURAL COMMIJNITY DEVELOPMENT, INC. dba ACCESSHOME, a California
nonprofit public benefit corporation ("Owner") and the City of Redding, a municipal corporation
("Cit�,").
WHEREAS, Owner has a long-term lease equal to the length of affordability (twenty (20) years)
in that certain real property (Property) located at 4000 Victor Avenue in the City of Redding,
County of Shasta, State of California, legally described in Exhibit A attached hereto. The real
property is the subject of a Development Funding Agreement (Agreement) dated , 2021
for the development, operation, management, and maintenance of a single-family housing project
consisting of one (1) three-bedroom unit (the "Project"). The City has provided financing from
the HOME Investment Partnerships Program(HOME) in accordance with the Agreement.
The single-family unit, sha11 be deemed, the "HOME-Assisted Unit." The Owner agrees to make
available, restrict occupancy to, and rent at an "Affordable Rent" for the full "Affordability
Period"to Lower-Income Households (as those terms are hereinafter defined).
Lower-Income households shall mean a household earning no more than thirty percent(60%)
of Shasta County median income adjusted for household size as determined by HUD from
time to time, for the HOME Program and as set forth in 24 CFR Part 92.2 as it exists as of the
date of this Agreement.
NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE PARTIES
AGREE TO THE HOME REQUIREMENTS AS DEFINED HEREIN:
L Use of HOME Funds. The Owner shall receive a City HOME loan (City Loan) in the
amount of Three Hundred Thirty-Seven Thousand One Hundred Ninety-six No/100 Dollars
(�337,196) in HOME funds to support the development costs associated with the HOME-
Assisted Unit as part of the Project. The HOME funds will be used toward eligible Project costs
in accordance with 24 CFR 92.206 as supported by the pro-forma and development budget
documents submitted, analyzed, and approved by the City.
2
2. Project-specific Requirements. The HOME-Assisted rental Project and unit will
comply with the provisions contained under 24 CFR Part 92, Subpart F, Project Requirements,
including 24 CFR 92.250-253, maximum per-unit subsidy amount; subsidy layering requirements
as determined by the City; applicable property standards; affordability requirements, tenant
income eligibility, occupancy requirements, HUD issued annual rent thresholds, period of
affordability and tenant and participant protections.
For projects that contain HOME-Assisted and non-HOME assisted units: These provisions apply
to HOME-Assisted units which are designated as "Floating Units" and which may be substituted
with non-HOME-Assisted units within the Project that are comparable in terms of size, features,
number of bedrooms and amenities, to the originally designated HOME-Assisted units.
3. Tenant Income Targeting and Occupancy Requirements.
a. The Project's HOME-Assisted units must be occupied by households that meet the
specified income eligibility, based on current annual income guidelines issued by HUD and
whose income is determined at initial occupancy by the City and thereafter, annually by the
Owner in accordance with 24 CFR 92.203(a)(1).
b. The Owner of a HOME-Assisted Project with an affordability period of 10 years or more
who re-examines tenant's annual income through a statement and certification in accordance
with 24 CFR 92203(a)(1)(ii), must examine the income of each tenant, in accordance with 24
CFR 92.203(a)(1)(i), every sixth year of the affordability period. Otherwise, an owner who
accepts the tenant's annual income in accordance with 24 CFR 92.203(a)(1)(ii) is not required to
examine the income of tenants in multifamily projects unless there is evidence that the tenant's
written statement failed to completely and accurately state information about the family's size or
income.
4. Period of Affordability and Requirements. Pursuant to 24 CFR 92.252, the HOME-
Assisted units must meet the affordability requirements for not less than the term specified in the
regulations, or a longer period stipulated by the City in the Agreement. The HOME period of
affordability applicable to the Project shall be twenty (20) years and commence at the time that
aIl of the following actions have been completed:
a. All necessary title transfer requirements and rehabilitation work have been performed;
b. This HOME Agreement has been executed by the Owner and recorded;
c. The project complies with the requirements of 24 CFR Part 92 (including property
standards under 24 CFR 92.251;
d. The final drawdown has been disbursed for the project; and
e. The project completion information has been entered in HUD's Integrated Disbursement
and Informatian System (IDIS).
The affordability requirements shall apply without regard to the term or repayment of the loan or
the transfer of ownership and shall be imposed by deed restrictions or covenants running with the
1and, except that the affordability requirements may terminate upon foreclosure or transfer in lieu
of foreclosure. The affordability restrictions shall be revived according to the original terms if,
during the original affordability period, the Owner of record before the foreclosure, or deed in
3
lieu of foreclosure, or any entity that includes the former Owner or those with whom the former
Owner has or had family or business ties, obtains an ownership interest in the Project or property.
5. Property Standards. The Project must be maintained in compliance with applicable
State and local housing code requirements and HUD Housing Choice Voucher Housing Quality
Standards for the duration of the Loan as well as any Development Agreement.
a. The exterior areas around the Property shall be kept free of rubbish, debris, trash, garbage
and other unsightly or unsanitary materials. Trash or refuse cans, bins, boxes or other such
containers must be stored out of the public right of way.
b. There shall be no parking, storing or keeping of any large commercial type vehicle (dump
truck, cement mixer truck, oil or gas truck, etc.}, or any recreational vehicle (camper unit, camper
shell detached from a private passenger vehicle, motor home, trailer, boat trailer, mobile home or
other similar vehicle), boats or any vehicle other than a private passenger vehicle.
c. Property or material such as lumber, salvage materials, broken or neglected equipment or
wrecked, dismantled or inoperable vehicles may not be stored at the Property.
d. Foundations, driveways and walkways are to be maintained in good condition and have
no significant cracks that could jeopardize structural integrity or become unsightly.
e. No buildings abandoned, boarded up, partially destroyed or left in an unmaintained
condition so that any of the following exists:
(i) Building abandoned, boarded up, partially destroyed or left unreasonably in a state
of partial construction.
(ii) Paint in such a condition as to: cause dry rot, warping and termite infestation; or
constitute an unsightly appearance that detracts from the aesthetic value of the Property or
surrounding properties.
(iii) Broken windows or missing glass constituting hazardous conditions and/or
inviting trespassers and malicious mischief.
(iv) Graffiti remaining on any portion of the Property for a period exceeding five (5)
Days.
f. Landscaping shall be absent of the following:
(i) Grass in excess of six (6} inches in height.
(ii) Untrimmed hedges.
(iii) Dying trees, shrubbery, lawns and other plant life from lack of water or other
necessary maintenance.
(iv) Trees and shrubbery grown uncontrolled without proper pruning.
(vi) Vegetation so overgrown as to be likely to harbor rats or vermin.
4
(vii) Dead, decayed or diseased trees, weeds and other vegetation.
(viii) Inoperative irrigation system(s).
6. Repayment of HOME Funds. All interest and ather return on the investment of HOME
funds in the form of the Loan are to be remitted to City as set forth in the Agreement and the City
Loan Documents. In order for the City to comply with the HOME regulations described under
24 CFR 92.503, Owner shall repay to the City the remaining principal balance of the loan if after
Project completion the HOME-Assisted Project fails to comply with the affordability
requirements described under Subpart F, 24 CFR 92.252 of the HOME regulations. In the event
that the Project is terminated before completion, either voluntarily or otherwise, any HOME
funds invested in the Project must be repaid by the Owner to the City.
7. Other Federal Requirements. Owner shall operate the Project in compliance with all
Federal laws and regulations described in 24 CFR 92350-356, including specifically,
nondiscrimination and equal opportunity; affirmative marketing procedures and requirements
adopted by the City pursuant to 24 CFR 92.351; displacement, relocation and acquisition; labor;
lead-based paint; and conflict of interest. Owner shall not assume City's responsibilities for
environmental review contained in 24 CFR 92352 or the intergovernmental review process
contained in 24 CFR 92.359. The requirements set forth below apply:
a. Nondiscrimination and equal opportunity.
(i) The Fair Housing Act (42 U.S.C. 3601-19) and implementing regulations at 24
CFR part 100 et seq.; Executive Order 11063, as amended by Executive Order 12259 (3 CFR,
1959-1963 Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing
Programs) and implementing regulations at 24 CFR part 107; title VI of the Civil Rights Act of
1964 (42 U.S.C. ZOOOd-2000d-4) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations at 24 CFR part 1; the Age Discrimination Act of 1975 (42 U.S.C.
6101-6107) and implementing regulations at 24 CFR part 146; section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794) and implementing regulations at part 8 of this title; title II of the
Americans with Disabilities Act, 42 U.S.C. 12101 et seq.; 24 CFR part 8; section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations
at 24 CFR part 135; Executive 4rder 11246, as amended by Executive Orders 11375, 11478,
12086, and 12107 (3 CFR, 1964-1965 Comp., p. 339; 3 CFR, 1966-1970 Comp., p. 684; 3 CFR,
1966-1970 Comp., p. 803; 3 CFR, 1978 Comp., p. 230; and 3 CFR, 1978 Comp., p. 264,
respectively) (Equal Employment Opporiunity Programs) and implementing regulations at 41
CFR chapter 60; Executive Order 11625, as amended by Executive Order 12007 (3 CFR, 1971-
1975 Comp., p. 616 and 3 CFR, 1977 Comp., p. 139) (Minority Business Enterprises); Executive
Order 12432 (3 CFR, 1983 Comp., p. 198) (Minority Business Enterprise Development); and
Executive Order 12138, as amended by Executive Order 12608 (3 CFR, 197'1 Comp., p. 393 and
3 CFR, 1987 Comp.,p. 245) (Women's Business Enterprise).
(ii) Equal access to HUD-assisted or insured housing. (1} Eligibility for HUD-assisted
or insured housing. A determination of eligibility for housing that is assisted by HUD or subject
to a mortgage insured by the Federal Housing Administration shall be made in accordance with
the eligibility requirements provided for such program by HUD, and such housing sha11 be made
available without regard to actual or perceived sexual orientation, gender identity, or marital
status. (2) Prahibition of inquiries on sexual orientation or gender identity. No owner or
administrator of HUD-assisted or HUD-insured housing, approved lender in an FHA mortgage
5
insurance program, nor any (ar any other) recipient or subrecipient of HUD funds may inquire
about the sexual orientation or gender identity of an applicant for, or occupant of, HUD-assisted
housing or housing whose financing is insured by HUD, whether renter- or owner-occupied, for
the purpose of determining eligibility for the housing or otherwise making such housing
available. This prohibition on inquiries regarding sexual orientation or gender identity does not
prohibit any individual from voluntarily self-identifying sexual orientation or gender identity.
This prohibition on inquiries does not prohibit lawful inquiries of an applicant or occupant's sex
where the housing provided or to be provided to the individual is temporary, emergency shelter
that involves the sharing of sleeping areas or bathrooms, or inquiries made for the purpose of
determining the number of bedrooms to which a household may be entitled.
b. Disclosure requirements. The disclosure requirements and prohibitions of 31 U.S.C.
1352 and implementing regulations at 24 CFR part 87; and the requirements for funding
competitions established by the Department of Housing and Urban Development Reform Act of
1989 (42 U.S.C. 3531 et seq.).
c. Debarred, suspended, or ineligible contractors and participants. The prohibitions at 2
CFR part 2424 on the use of debarred, suspended, or ineligible contractors and participants.
d. Drug-free workplace. The Drug-Free Workplace Act of 1988 (41 U.S.C. 701, et seq.) and
HUD's implementing regulations at 2 CFR part 2429.
e. Each Owner must adopt affirmative marketing procedures and requirernents for rental and
projects containing 5 or more HOME-Assisted housing units (24 CFR 92.35I}. Affirmative
Marketing steps consist of actions to provide information and otherwise attract eligible persons
in the housing market area to the available housing without regard to race, color, national origin,
sex, religion, familial status ar disability. The written affirmative marketing requirements and
procedures must include the following:
(i) Methods for informing the public, property owners and potential tenants about
federal fair housing laws and affirmative marketing policy (i.e., through the use of the fair
housing logo or equal opportunity language in marketing materials, posters on office walls, and
referrals to fair housing agencies). � � �
(ii) Requirements and practices each property owner must adhere to in order to carry
out the affirmative marketing procedures and requirements (i.e., advertising requirements,
outreach to community groups, EO logo, fair housing poster).
(iii) Procedures to be used to inform and solicit applications from persons in the
housing market area that are not likely to apply for the housing without special autreach. These
efforts might include advertising in non-English language newspapers, targeted outreach through
direct mail, informing service agencies about the project, community organizations, places of
worship, and translators at public meetings.
(iv) Records that will be kept describing actions taken to affirmatively market HOME-
Assisted units and records to assess the results of these actions.
b
(v) A description of how you will annually assess the success of your affirmative
marketing actions and what corrective actions will be taken when affirmative marketing
requirements are not met (i.e., making an annual review of who the program or project is serving
to determine whether they are reaching members of protected classes and to determine which
marketing vehicle works best to reach persons who might not be likely to apply).
£ Affirmative Fair Housing Marketing Plan. Every HOME-Assisted project must develop
and carry out an Affirmative Fair Housing Marketing P1an {AFHMP) (see attached Appendix I).
Owners must comply with the requirements of their AFHMP, which is designed to promote equal
housing access for all prospective tenants regardless of race, color, religion, sex, disability,
familial status, or national origin. The AFHMP is the owner's blueprint for marketing activity.
Owners must review their AFHMP at least every five years and update it as needed to ensure
compliance. A review may indicate that revisions to the AFHMP are necessary if the population
of the property area has changed over time, and thus targeted marketing efforts should change.
The AFHMP helps owners to effectively market the availability of housing opportunities to
individuals of both minority and non-minarity groups that are least likely to apply for occupancy.
g. Displacement, Relocation and Acquisition. In accordance with 24 CFR 92.353 the
Owner must ensure that they have taken all reasonable steps to minimize the displacement of
persons (families, individuals, businesses, nonprofit organizations, and farms} as a result of the
Project.
h. Labor.
(i) In accordance with 24 CFR 92.354 every contract for the construction
(rehabilitation or new construction) of housing that includes 12 or more units assisted with
HOME funds must contain a provision requiring the payment of not less than the wages
prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-
Bacon Act (40 U.S.C. 2'76a-276a-S), to all laborers and mechanics employed in the development
of any part of the housing. Such contracts must also be subject to the overtime provisions, as
applicable, of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-332}.
(ii) The contract for construction must contain these wage provisions if HOME funds
are used for any project costs in § 92.206, including construction or non-construction costs, of
housing with 12 or more HOME-Assisted units. When HOME funds are only used to assist
homebuyers to acquire single-family housing, and not for any other project costs, the wage
provisions apply to the construction of the housing if there is a written agreement with the owner
or developer of the housing that HOME funds will be used to assist homebuyers to buy the
housing and the construction contract covers 12 or more housing units to be purchased with
HOME assistance. The wage provisions apply to any construction contract that includes a total
of 12 or more HOME-Assisted units, whether one or more than one project is covered by the
construction contract. Once they are determined to be applicable, the wage provisions must be
contained in the construction contract so as to cover all laborers and mechanics employed in the
development of the entire project, including portions other than the assisted units. Arranging
multiple construction contracts within a single project for the purpose of avoiding the wage
provisions is not permitted.
�
(iii) Contractors, subcontractors, and other participants must comply with regulations
issued under the above-noted acts and with other Federal laws and regulations pertaining to labor
standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in Housing and
Community Development Programs), as applicable. The City requires certification as to
compliance with the provisions of this section before making any payment under such contract.
(iv) Volunteers. The prevailing wage provisions of paragraph(i) and (ii) of this section
do not apply to an individual who receives no compensation or is paid expenses, reasonable
benefits, or a nominal fee to perform the services for which the individual volunteered and who
is not otherwise employed at any time in the construction work. See 24 CFR part 70.
(v) Sweat equiry. The prevailing wage provisions of paragraph (a) of this section do
not apply to members of an eligible family who provide labor in exchange for acquisition of a
property for homeownership or provide labor in lieu of, or as a supplement to, rent payments.
i. Lead-Based Paint. Housing assisted with HOME funds is subject to the Lead-Based
Paint Poisoning Prevention Act {42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at part 35, subparts
A, B, J, K, M and R of this title.
j. Conflict of Interest.
(i) Con.flicts prohibited. No persons described in paragraph (ii) of this section who
exercise or have exercised any functions or responsibilities with respect to activities assisted with
HOME funds or who are in a position to participate in a decision making process or gain inside
information with regard to these activities, may obtain a financial interest or benefit from a
HOME-Assisted activity, or have an interest in any contract, subcontract or agreement with
respect thereto, or the proceeds thereunder, either for themselves or those with whom they have
family or business ties, during their tenure or for one year thereafter.
(ii) Persons covered. The conflict of interest provisions of paragraph (i) of this
section apply to any person who is an employee, agent, consultant, officer, or elected official or
appointed official of the City or Owner which are receiving HOME funds. No owner, developer
ar sponsor of a project assisted with HOME funds (or officer, employee, agent or consultant of
the owner, developer or sponsor) whether private, for profit or non-profit (including a community
housing development organization (CHDO) when acting as an owner, developer or sponsor) may
occupy a HOME-Assisted affordable housing unit in a project. This provision does not apply to
an individual who receives HOME funds to acquire or rehabilitate his or her principal residence
or to an employee or agent of the owner or developer of a rental housing project who occupies a
housing unit as the project manager or maintenance worker.
8. Monitoring. City sha11 be responsible for managing the day-to-day operations of its
HOME Program, for monitoring the performance of the Owner as a recipient of HOME funds
from the City to assure compliance with the requirements of Federal regulations, as they relate to
HOME funds, and for taking appropriate action whenever performance problems arise. To that
end:
a. Owner must annually provide the City with information on tenant income, rents and
occupancy of the Project's HOME-Assisted units to demonstrate compliance with the
8
affordability requirements contained in 24 CFR 92.252, and information regarding the Owner's
progress in implementing the affirmative marketing requirements and procedures agreed upon
between the City and Owner.
b. For Projects containing 26 or more units (i.e., including HOME and non-HOME assisted),
not less than annually, the City shall review the aetivities of the Owner as a recipient of HOME
funds to assess compliance with the requirements of 24 CFR Part 92, the Agreement and the
City's Loan Documents. The City's review shall include:
(i} an on-site inspection of a sufficient sample of HOME-Assisted units to determine
compliance with applicable "Property Standards" required under 24 CFR 92.251, and adopted by
the City, and to verify information regarding tenant income, rent and occupancy pertaining to
same units, and affirmative marketing progress, previously submitted by the Owner. The results
of each review must be included in the City's annual performance required by 24 CFR Part 91,
and shall be made available to the public.
9. Records and Reports. Owner must maintain all records pertaining to the Project and
participation in the HOME Program and submit any required information or reports to the City,
in arder to assist the City in meeting its monitoring, recordkeeping and reporting requirements.
a. Records must be retained for five years after the Project completion date, except that records
of individual tenant income verifications, rents, occupancy and unit inspections must be retained
for the most recent five-year period, until five years after the HOME period of affordability
terminates. Other record keeping and reporting requirements as described in the Loan
Documents shall apply.
b. City must provide citizens, public agencies, and other interested parties with reasonabie
access to records, consistent with applicable State and local laws regarding privacy and
obligations of confidentiality.
10. DisplacementJRelocation. Records covering displacements and acquisition must be
retained for five years after the date by which all persons displaced from the property and all
persons whose property is acquired for the project, have received the final payment to which they
are entitled in accordance with 24 CFR 92.353.
1L Requests for Disbursement of Funds. Owner may not request disbursement of HOME
funds under the Loan Documents until the funds are needed for payment of eligible costs. The
amount of each request must be limited to the amount actually needed.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
9
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first hereinabove set forth.
CITY OF REDDING, a municipal corporation
By: Barry Tippin, City Manager
APPROVED AS TO FORM:
BARRY E. DEWALT, CITY ATTORNEY
By:
RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. dba ACCESSHOME, a California
nonprofit public benefit corporation
By:
DAWN SMITH, Executive Director
10
ExxIBIT a
LEGAL DESCRIPTION
FOR APN/PARCEL ID:
LEGAL DESCRIPTION PENDING
Exhibit 4
RECORDING REQUESTED BY:
City of Redding
CITY BUSINESS -NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
City of Redding—Housing Division
777 Cypress Avenue
P.O. Box 496071
Redding, CA 96049-6071
CITY QF REDDING
DECLARATION OF RENT RESTRICTIONS
THIS DECLARATION OF RENT RESTRICTIONS (the "Declaration") is entered into the
_tt' of July 2021, by and between the CITY OF REDDING, a Municipal Corporation ("CITY") and
RESOURCES FOR RURAL COMMITNITY DEVELOPMENT, INC. dba AccessHome, a California
Nonprofit Public Benefit Corporation,
A. ACCESSHOME is having a Ground Lease of that certain real property("Real Property"
or "Site") located at 4000 Victor Avenue in the City of Redding, County of Shasta, State of California,
legally described in the attached E�ibit "A." The Real Property is the subject of a Development
Funding Agreement dated 2021, for the acquisition, operation, and maintenance of a single-family
rental housing project consisting of one {1) unit. The unit will be affordable to Very Low-Income
households to be located on the Real Property as herein defined.
B. The Real Property is located in the City of Redding and the financing of the Site for
affordable housing is in the best interest of ACCESSHOME and the CITY, and the health, safety, and
welfare of the residents of the City of Redding.
C. To facilitate affardable low-income rental housing the CITY wishes to place affordable
rent restrictions on one(1)unit.
NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE
PARTIES AGREE AS FOLLOWS:
1. Number of Units; Income Eligibility. The completed Project consists of one (1)three-
bedroom housing unit. ACCESSHOME agrees to make available, restrict occupancy to, and rent at an
"Affordable Rent" the unit to a "Lower-Income Household" as those terms are hereinafter defined for
the period of time described in Paragraph 2. The Lower-Income unit is referred to herein as the
"Affordable Unit." ACCESSHOME must maintain the HOME unit (High HOME Unit) throughout the
affordability period.
2. De�nitions.
"Lower-Income Household" shall mean a household earning no greater than
sixty percent (60%) of the Shasta County median income, as determined by the United States
Department of Housing and Urban Development from time to time, as set forth in the HOME
Program Final Rule at 24 CFR Part 92.216(a)(1), as it exists as of the date of this Declaration.
"Affordable Rent" shall have the meaning set forth in 24 CFR Part 92.252(HOME rents)
as it exists as of the date of this Declaration, as further defined in Paragraph 3 of fhis Declaration.
"Affordability Period" sha11 mean a period commencing upon the date of recordation of
the HOME Agreement and continuing for twenty(20)years.
3. Duration of Affordability of Affordable Units. The Affordable Unit shall remain
availabie for rent to and occupancy by Low-Income Households at an Affordable Rent throughout the
Affordability Period.
Not withstanding any other provision of law, the covenants and restrictions contained
herein shali run with the land for the duration of the Affordability Period and shall be enforceable,
against ACCESSHOME and/or its successors in interest, by the City, the community and/or others as
allowed by law.
This Declararion of Rent Restrictions shall survive termination of the Development
Funding Agreement and reconveyance of the City Deed of Trust and shall not be subject to
subordination.
4. Determination of Affordable Rent for the Affordable Units. Each Affordable Unit
shall be rented at a monthly rental amount ("Affordable Rent") in accordance with Section 50053(b)(2)
of the California Health and Safety Code as to the Very Low-Income Units and Section 50053(b}(3) of
the California Health and Safety Code as to the Lower-Income Units. As of the date of tnis Declaration,
the following formulas represent maximum Affordable Rents:
(i) for the Very Low Income Units: One-twelfth (1/12) of thirty percent (30%) of fifty percent (50%} of
the area median income adjusted for family size appropriate to the unit applicable to the City of Redding,
as determined by the United States Department of Housing and Urban Development (the "Applicable
Median Income"); and (ii) for the Lower-Income Units: One-twelfth (1/12) of thirty percent (30%) of
sixty percent(60%}of the Applicable Median Income adjusted for family size appropriate to the unit.
5. Monitoring of the Affordable Units. ACCESSHOME, its designee or successor shall
prepare and submit a certification report annually to the CITY during the Affordability Period. The
report sha11 identify each Affordable Unit, the rental rate, and the ineome and family size of the
occupants, as well as any other project information that is required by the HOME regulations(92.252 and
92.253) and requested by the City. The required income information shall be supplied by the tenant in
the form of source documentation kept at ACCESSHOME's office and shall be available for CITY
review at the CITY's request.
� IN WITNESS WI��EREOF,the CITY and ACCESS�IOME have signed this Declaration on the respective �
dates set forth below.
CITY OF REDDING, a Municipal Corporation
By:
Barry Tippin, City Manager
APPROVED AS TO FORM:
BARRY E. DEWALT, City Attorney
By:
RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. dba ACCESSHOME
A California Nonprofit Public Benefit Corporation
By:
Dawn Smith,Executive Director
EXHIBIT "A" to CITY DECLARATION OF RENT RESTRICTIONS
LEGAL DESCRIPTION
FOR APN/PARCEL ID:
LEGAL DESCRIPTION PENDING
Exhibit 5
RECORDING REQUESTED BY:
City of Redding
CITY BUSINESS-NO FEE
Section b 103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
City of Redding—Housing Division
P.O.Box 4960�1
'777 Cypress Avenue
Redding,CA 96049-60�1
CITY OF REDDING LEASEHOLD DEED OF TRUST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST is made this h day of July 2021, by RESOURCES FOR
RURAL COMMUNITY DEVELOPMENT, INC. dba ACCESSHOME, a California nonprofit
benefit corporation, as to equitable title,herein called"Trustor,"and/or`Borrower"whose address is 715
Parkview Avenue #l, Redding, CA 96001; PLACER TITLE COMPANY herein called "Trustee,"
whose address is 2145 Larkspur Lane, Suite A, Redding, CA 96002; and the CITY OF REDDING, a
municipal corporation and general law city, whose address is P.O. Box 496071, 777 Cypress Avenue,
Redding, California 96049-6071, herein called"Beneficiary"and/or the"Lender".
WITNESSETH: That Trustor Irrevocably, Grants, Transfers and Assigns, to Trustee, in Trust,
with Power of Sale, that leasehold interest established by the Ground Lease dated July , 2021 for
property in the City of Redding("City"), County of Shasta, State of California, described as:
EXHIBIT A-Legal Description
ASSESSOR'S PARCEL NUMBER: 048-400-003-000
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or in the future thereon,
it being understood and agreed that all classes of property attached or unattached used in connection
herewith shall be deemed fixtures, (b}rents, issues and profits thereof, and(c)all sums of money payable
on the purchase price of said property secured by a lien thereon or payable under any agreement for the
sale thereof, SUBJECT, HOWEVER,to the right,power and authority hereinafter given to and conferred
upon Beneficiary to collect and apply such rents, issues, and profits, and all sums of money payable on
the purchase price of said property secured by a lien thereon ar payable under any agreeinent.
BORROWER HEREBY expressly acknowledges and agrees that the subject loan, this Deed of
Trust, and the property which serves as security for the Note and Deed of Trust, involves a single-family
residential transaction, one that the Borrower is expressly entering into for the provision of affordable
housing and not for profit, and not in any way related to Borrower's home or residence. As such,
Borrower further acknowledges and agrees that Lender Iikewise is making this loan on the aforesaid
basis, and thus intends to enforce any and all of its rights accordingly.
FOR THE PURPOSE OF SECURING:
1. Payment of the sum of Three Hundred Thirty-Seven Thausand One Hundred
Ninety-six No/100 Dollars ($33'7,196) with interest thereon according to the terms of a certain
Promissory Note of even date herewith, designated as the "Residual Receipts Promissory Note"made by
Trustor,payable to the order of the Beneficiary and extensions or renewals thereof.
2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed
from the Beneficiary by the then record owner or owners of said property when evidenced by another
Promissory Note or Notes reciting that they are secured hereby, or (b) as may be added to the
indebtedness secured hereby in accordance with the provisions of this Deed of Trust.
3. Performance of each and every obligation, covenant, promise, or agreement of Trustor
contained herein.
4. Payment, with interest thereon, of any other present or future indebtedness or obligation
of the Trustor (or of any successor in interest of the Trustor to said property) to the Beneficiary reciting
that they are secured hereby, whether created directly or acquired by assignment, whether absolute or
contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the
execution of the Deed of Trust, or arising thereafter.
5. Performance of each agreement of Trustor contained in any Development Funding
Agreement (including without limitation the Exhibits thereto) entered into between Trustor and
Beneficiary for the development, construction of improvements, adoption of rent restrictions or other
affordability covenants, or operation of certain activities on the above-described property.
6. The whole of the Promissory Note shall be nonrecourse to Borrower.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR AGREES:
l. To keep said property in good condition and repair; to allow Beneficiary or its
representatives to enter and inspect the premises at all reasonable times and aecess thereto shall be
permitted for that purpose; not to remove or demolish any building thereon; not to make alterations
thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the
occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in
good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon,
including, without restricting the generality of the faregoing, damage from termites and dry-rot; to pay
when due all claims for labor performed and materials furnished in connection with such property and
not to permit any mechanic's lien against such property; to comply with all iaws affecting such property
or requiring any alterations or improvements to be made thereon; not to initiate ar acquiesce in any
zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not
to commit, suffer, or permit any act upon such properly in violation of the law; and to paint, cultivate,
irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property
may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or
conditional sale of all fixtures, furnishings, and equipment located thereon.
If the loan secured hereby or any part thereof is being obtained or should any additional loan be
made hereafter for the purpose of financing rehabilitation improvements or construction of affardable
housing on said property, Trustor further agrees, anything in this Deed of Trust to the contrary
notwithstanding: (a)to complete the same in accardance with City approved plans and specifications
satisfactory to Beneficiary; (b) to alIow Beneficiary to inspect such property at a11 times during
City of Redding Deed of Trust Page 2 of 9
rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15)
calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by
registered or certified mail, sent to its last known address, or by personal service of the same; (d) that
work shall not cease on the construction of such improvements for any reason whatsoever for a period of
fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary;
(e)to pay when due al1 claims for labor and materiais furnished in connection with the said construction
andlor rehabilitation and not to permit any claims of lien for said work or material to be filed of record
against the said property; and (f) not to pennit any stop notice claims to be presented to Beneficiary. If
the said property is part of a larger tract upon which improvements will be constructed, Trustor shall
make separate contracts and subcontracts for said construction which shall pertain to the said property
only and shall keep separate, full, and complete records of all work and materials furnished to the said
property. Trustee, upon presentation to it of an affidavit signed by the Beneficiary setting forth facts
showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts
and statements therein and to act thereon hereunder.
2. To provide and maintain in force at all times with respect to said property, fire and other
types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable
endorsement in favor of Beneficiary, shall contain an endorsement that such insurance shall not be
canceled or modified without thirly (30) days advance written notice to Beneficiary, shall be for a term
and in form, content, amount, and with such companies as may be satisfactory to Beneficiary, and the
policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the
faithful performance of Trustor hereunder.
At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies
renewing or extending such expiring insurance shall be delivered to Beneficiary together with written
evidence showing payment of the premium therefor and, in the event any such insurance policy and
evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor,
by executing this Deed of Trust, specifically requests Beneficiary to obtain such insurance and
Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing
Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or
company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness
secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance
agency or company, or any other person, any information contained in or extracted from any insurance
policy theretofore delivered to Beneficiary pursuant hereto and any infonnation concerning the loan
secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the
collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter.In case
of insurance loss, Beneficiary is hereby authorized either (a) upon prior notice to Trustor, to settle and
adjust any claim under the insurance policies provided for in this document without the consent of the
Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be
paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such
insuranee money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or
improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of
Trust and such damage or destruction does not result in cancellation ar termination of such lease, such
proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to
reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said
premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be
applied in reduction of the indebtedness secured hereby whether due or not, or in such order as
Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost
of rebuilding or restoring the building or improvements on said premises. Such buildings and
improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same
character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary.
City of Redding Deed of Trust Page 3 of 9
Such application or release shall not cure or waive any defauit or notice of default hereunder or
invalidate any act done pursuant to such notice.Any and all unexpired insurance shall inure to the benefit
of, and pass to the purchaser of,the property conveyed at any Trustee sale held hereunder.
3. To pay: (a) all general and special City and County taxes affecting such property; (b)
when due, all special assessments for public improvements, without permitting any improvement bond to
issue for any special assessment; (c)when due, all encumbrances, charges and liens, with interest,on said
property, or any part thereof, which are ar appears to be prior or superior hereto;(d) if the security of this
Deed of Trust is a leasehold estate, to make any payment or do any act required of the Lessee or its
successor in interest under the terms of the instrument or instruments creating said leasehold; (e) all
costs, fees and expenses of this trust; (fl for any statement regarding the obligation secured hereby any
amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when
such request is made; (g) such other charges for services rendered by Beneficiary and furnished at
Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable.
If, by the laws of the United States of America, or of any state having jurisdiction over the
Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor
covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make
any such payment, Beneficiary may elect to make such payment and any amount so paid may be added
by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.
4. That, should Trustor fail to make any payment or do any act as provided in this Deed of
Trust, then Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon
Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such
manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or
Trustee being authorized to enter upon said property for such purposes; (b) commence, appear in, or
defend any action ar proceeding purporting to affect the security hereof ar the property covered by this
Deed of Trust, or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest, or
compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or
superior hereto; and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay
his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any
amount so, expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a
like rate of interest.
5. To perform each agreement of Trustor contained in any Development Funding
Agreement (including without limitation the Exhibits thereto) entered into between Trustor and
Beneficiary for the development, construction of improvements, adoption of rent restrictions or other
affordability covenants, ar operation of certain activities on the above-described property.
6. To appear in and defend any action or proceeding purporting to affect the security hereof
or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee,
and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of
evidence of titie and attorneys' fees in a reasonable sum, in any such action ar proceeding in which
Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of
whether the interest of Beneficiary or Trustee in such property is directly questioned by such action,
including any action for the condemnation or partition of said premises, and in any suit brought by
Beneficiary to foreclose this Deed of Trust.
7. To pay immediately and without demand, all sums expended under the terms of this
Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the
principal obligation secured hereby bears at the time such payment is made, and the repayment of such
City of Redding Deed of Trust Page 4 of 9
sums shall be secured hereby.
8. That, should the Trustor or any successor in interest to Trustor in such property drill or
extract, or enter into a lease for drilling or extraction of oil, gas, or other hydrocarbon substances or any
mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any part
thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way,
whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any
indebtedness ar obligations secured hereby irrespective of the maturity date specified in any Note
evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in
writing.
9. That any award; settlement, or damages for injury ar damages to such property, or in
connection with the transaction financed by such loan, and any award of dainages in connection with any
condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and
shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and
with the same effect as above provided for the disposition of proceeds of fire or other insurance.
10. That, by accepting payment of any sum secured hereby after its due date, or by making
any payment, or performing any act on behalf of Trustor, that Trustor was obligated hereunder, but
failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness
secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all
sums so secured or to declare a default for failure so to pay.
11. That at any time, or from time to time, without Iiability of the Beneficiary or Trustee
thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust
and any Note secured hereby for endorsement, and without affecting the personal liability of any person
for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of
said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or
powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a)
reconvey any part of said property; (b) consent to the making of any map or plat thereof; (c)join in
granting any easernent thereon; (d}join in any agreement subordinating the lien or c�large hereof.
12. That the lien hereof shall remain in full force and effect during any postponement ar
extension of time of payment of the indebtedness secured hereby, or any part thereof.
13. That upon written request of Beneficiary stating that all sums secured hereby have been
paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and
retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then heid
hereunder. The recitais in such reconveyance of any matters of fact shall be conclusive evidence of the
truthfulness thereo£ The grantee in such reconveyance may be described as "the person or persons
legally entitled thereto." Such request and reconveyance shall operate as a re-assignment of the rents,
issues, royalties and profits hereinafter assigned to Beneficiary. Five (5)years after issuance of such full
reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to
retain them).
14. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues,
and profits of the property affected by this Deed of Trust far the purposes and upon the terms and
conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents
from the property affected by this Deed of Trust, or cause Beneficiary to be (a) "mortgagee in
possession" for any purpose; (b)responsible for performing any of the obligations of the lessor under any
lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or
City of Redding Deed of Trust Page 5 of 9
defective condition of the property affected by this Deed of Trust, or for any negligence in the
management, upkeep, repair, or control of such properiy. This is an absolute assignment, not an
assignment for security only, and Beneficiary's right to rents, issues, and profits is not contingent upon,
and may be exercised without possession of,the property affected by this Deed of Trust.
Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues, and
profits of the property affected by this Deed of Trust as they become due and payable, until the
occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and
Beneficiary may coliect and retain the rents, issues, and profits without notice and without taking
possession of the property affected by this Deed of Trust. This right to collect rents, issues and profits
shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and
neither said right, nor termination of the License, shall impose upon City or Trustee the duty to produce
rents, issues, ar profits or maintain all or any part of the properly affected by this Deed of Trust. If
Trustor shall default as afaresaid, Trustor's right to collect any such money shall cease and Beneficiary
shall have the right, with or without taking possession of the property afPected hereby, to collect all rents,
issues, royalties, and profits and shall be authorized, and may, without notice and irrespective of whether
declaration of default has been delivered to Trustee and without regard to the adequacy of the security for
the indebtedness secured hereby, either personaliy ar by attorney or agent without bringing any action or
proceeding, or by receiver to be appointed by the Court, enter into possession and hold, oecupy, possess
and enjoy the said property, make, cancel, enforce, and modify leases, obtain and eject tenants, and set
and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said
rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance,
operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it
may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues,
royalties, and profits of said property being hereby assigned to Bene�ciary for said purposes. The
acceptance of such rents, issues, royalties, and profits shall not constitute a waiver of any other right
which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California.Failure
of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues,
royalties, or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the
right, power and authority to collect the same. The receipt and application by said Beneficiary of all such
rents, issues, royalties, and profits pursuant hereto, after execution and delivery of declaration of default
and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings
hereunder, shall not cure such breach or default nor affect said sale proceedings, or any sale made
pursuant thereto, but such rents, issues, royalties, and profits, less all costs of operation, maintenance,
collection, and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of
the indebtedness secured hereby, from time to time, in such order as Bene�ciary may determine.Nothing
contained herein, nar the exercise of the right by Beneficiary to collect, shall be,or be construed to be, an
affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor a
subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option.
15. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a)
the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b)Trustor shall not
amend, change, or modify his leasehold interest, or the Lease, or agree to do so, without the written
consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request, or
demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of
any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain
unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not
merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said
estates in any party; (e) Trustor agrees ihat it will promptly, strictly, and faithfully perform, fulfill, and
comply with all covenants, agreements, terms, conditions, and provisions under any lease affecting the
premises and to neither do anything, nor to permit anything to be done which may cause modification or
termination of any such lease or of the obligations of any lessee or person claiming through such lease or
the rents provided for therein or the interest of the lessor or the Beneficiary therein ar thereunder. Trustor
City of Redding Deed of Trust Page b of 9
further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any
leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants
set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured
hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed
to be a consent to or waiver of any other violation. If the security for this Deed of Trust is a leasehold
estate,the term "said property" as used in this Deed of Trust shall be deemed to mean the leasehald estate
whenever the context so requires for the protection of the Beneficiary.
16. That any default by Trustor in payment of any indebtedness secured hereby or
performance of any covenant or condition set forth in a Development Funding Agreement between
Trustor and Beneficiary shall constitute a default under this Deed of Trust, and upon default by Trustor
under the terms of any encumbrance, charge, or lien which is ar appears to be prior or superior hereto,
Beneficiary may declare ail sums secured hereby immediately due and payable by delivery to Trustee of
written declaration of default and demand for sale of written notice of default and of election to cause to
be sold said properiy, which notice Trustee shall cause to be filed far record. Beneficiary shall also
deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures
secured hereby. After the lapse of such time as then may be required by law following recordation of
such notice of default, and notice of sale having been given as then required by law, Trustee, without
demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale,
whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the
highest bidder in lawful money of the United States, payable at time of sale. Trustee may postpone sale
of all or any portion of said properiy by public announcement at such time and place of sale, and from
time to time thereafter may postpone such sale by public announcement at the time fixed by the
preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold,
but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact
sha11 be conclusive evidence of the truthfulness thereof. Any person, including Trustor, Trustee, or
Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and
as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives
demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by
independent pledge sale, and Trustor waives demand and notice of such sale.) After deducting ali costs,
fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this
sale, Trustee shall apply the proceeds of sale to payment, first, of all sums expended under the terms
hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured
hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall
distribute them to the person or persons legally entitled thereto.
17. To waive, to the fullest extent permissible by law, the right to plead any statut0 of
limitations as a defense to any demand secured hereby.
18. That Beneficiary may, from time to time, by instrument in writing, substitute a successor
or successors to any Trustee named herein or acting hereunder, which instrument, executed and
acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where
such properiy is situated, shall be conclusive proof of property substitution of such successor Trustee or
Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate,
rights, powers, and duties, including but not limited to the power to reconvey the whole or any part of the
property covered by this Deed of Trust. Such instrument must contain the name of the originai Trustor,
Trustee, and Beneficiary hereunder, and the book and page where this Deed of Trust is recorded. If
notice of default shall have been recorded, this power of substitution cannot be exercised until after the
costs, fees, and expenses of the then acting Trustee shall have been paid to such Trustee, who shall
endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee
shall not be exclusive of other provisions for substitution provided by law.
19. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto,
City of Redding Deed of Trust Page'7 of 9
their heirs, legatees, devisees, administrators, executors, transferees, successars, and assigns. The term
Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether
or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the
masculine gender includes the feminine and/or neuter, and the singular number includes the plural.
20. Trustor agrees to file with Beneficiary annually during October of each calendar year a
written operational report which concerns the fiscal year ending on the immediately preceding June 30th
and conforms to the standards set forth by the Participating Jurisdiction and 24 CFR Part 92 (with respect
to the real property first described in this Deed of Trust)necessary or convenient for Beneficiary ta make
the annual reports.
21. That in the event of a demand for, and the preparation and delivery of a written statement
regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil
Code of California (or successor statutes), Beneficiary shall be entitled to make a reasonable charge, not
exceeding the maximum amount which is permitted by law at the time the statement is furnished.
Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or
rendered in Trustor's behalf in connection with said properly of this Deed of Trust, including changing
Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the
transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held
by Beneficiary and replacing the same with another such policy.
22. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any pariy
hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor,
Beneficiary, or Trustee shali be a party unless brought by Trustee.
23. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, if said
indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if
and notwithstanding that Trustor shall have defaulted in payment thereof, or in performance of any
agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby
immediately due and payable.
24. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust
secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any
material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness
secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and
payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for
sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by
Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept
as true and conclusive all facts and statements therein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other party
shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address
herein above set forth or to the Beneficiary at his office or at such other place as such parties hereto may
designate in writing.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
City of Redding Deed of Trust Page 8 of 9
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any
notice of sale hereunder be mailed to him at his address hereinbefore set forth.
Dated: July , 2021
Signature of Trustor(s}:
RESOURCES FOR RURAL COMMUNITY DEVEL4PMENT,
INC. dba ACCESSHOME, a California nonprofit
public benefit corporation
By:
Dawn Smith, Executive Director
This document must be notarized.
City of Redding Deed of Trust Page 9 of 9
Exhibit 6
RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED TRUST
DO NOT DESTROY THIS NOTE:When paid,this note,with Deed of Trust securing same,
must be surrendered to Trustee for cancellation before reconveyance wilt be made.
Amount: $337,196
Loan #: ,2021
Redding, California
FOR VALUE RECEIVED, RESOURCES FOR RIJRAL COMMUNITY DEVELOPMENT,
INC. dba ACCESSHOME, a California Nonprofit Public Benefit Corporation, ("Borrower"), promises
to pay to the order of the City of Redding ("Holder"), the principal sum of Three Hundred Thirty-
Seven Thousand One Hundred Ninety-six No1100 Dollars ($337,196) pursuant to Section 4 below.
1. Borrower's 4bli�ation. This promissory note ("Note") evidences Borrower's obligation to
pay Holder the principal amount of Three Hundred Thirty-Seven Thousand One Hundred Ninety-
six No/100 Dollars ($337,196). for the funds loaned to Borrower by Holder to assist with the
development of certain real property ("Project") pursuant to a Development Agreement between
Borrower and Holder dated_July .2021 ("DA"or"Agreement").
2. Interest. The prineipal balance of this Note shall bear simple interest from the date of
disbursement until repaid in full at zero percent (0%) per annum; provided, however, if an event of
default occurs, interest on the principal balance shall begin to accrue, as of the date of the disbursement
and continuing until such time as the Loan funds are repaid in full, at the default rate of the lesser of: ten
percent(10%), compounded annually; or the highest rate permitted by law.
3. Term and Repa�ment Rec�uirements. The term of this Note("Term")shall commence with the
date of this Note and shall expire twenty(20)years from said date, at which time the remaining balance of
principal and interest shall be due and payable.
4. Tenns of Pa_�.
a. All principal and interest payments are payable in lawful money of the United States.
b. All payments on this note shall be paid to the City of Redding at 777 Cypress Avenue,
Redding, California, or to such other place as holder of this note may from time to time designate.
c. Payments shall be based upon the availability of Residual Receipts generated
by the Project as further identified within the Promissory Note and Section 1.44 and 1.45 of the
DA. Payment in fu11 of the remaining balance of principal and interest, if any, sha11 be due and
payable at the conclusion of the City Loan term.
Annual payments shall be contingent upon the availability of residual receipt funds. Within ninety (90)
days after the end of each fiscal year during the term of the Note, Borrower shall provide Holder with a
written year-end cash flow analysis and audited financial statement for the Project prepared by a
certified pubiic accountant. Any Residual Receipts realized from the operation of the Project, as
shown by the annual audit, shall provide City with a written year-end cash flow analysis and audited
financial statement for the Project prepared by a certified public accountant. Any such Residual
City of Redding Residual Receipts Promissory Note Page 2 of 3
Receipts received by the City shall be credited as a payment on the City Loan and shall be applied
first to reducing the accrued interest, if any, on the loan, and subsequently, to reducing the principal.
Rasidual receipts for purpose of this Note shall have the meaning scribed to it in the DA.
d. All payments on this Note shall be without expense to Holder, and Borrower agrees to
pay all costs and expenses, including reconveyance fees and reasonable attorney's fees of Holder,
incurred in connection with the payment of this Note and the release of any security hereof.
e. Notwithstanding any other provision of this Note, or any instrument securing the
obligations of Borrower under this Note, if, for any reason whatsoever, the payment of all sums by
Borrower pursuant to the terms of this Note would result in the payment of interest which would exceed
the amount that Holder may legally charge under the laws of the State of California, then the amount by
which payments exceed the lawful interest rate shall automatically be deducted from the principal balance
owing on this Note, so that in no event shall Borrower be obligated under the terms of this Note to pay
any interest which would exceed the lawful rate.
£ The whole of this Note shall be nonrecourse to Borrower.
5. Default.
a. Any of the following shall constitute an event of default under this Note.
1)Any failure to pay, in full, any payment required under this Note when due.
2) Any failure in the performance by Borrower of any term, condition, provision,
or covenant set forth in this Note.
3)The occurrence of any event of default under the DA,the Deed of Trust, or the
Declaration of Rent Restrictions, (as defined in the DA).
b. Upon the occurrence of such an event of default and the expiration of the applicable
cure period, the entire unpaid principal balance, together with all interest thereon, and together with all
sums then payable under this Note and the Deed of Trust shall at the option of Holder become
immediately due and payable upon written notice by Holder to Borrower without further demand.
c. The failure to exercise the remedy set forth in subsection Sb above or any other
remedy provided by law upon the occurrence of one or more of the foregoing events of default shall not
constitute a wavier of the right to exercise any remedy at any subsequent time in respect to the same or
any other default. The acceptance by Holder hereof of any payment which is less that the total of all
amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise
any of the foregoing remedies or options at that time or at any subsequent time, or nullify any prior
exercise of any such remedy or option, without the express consent of Holder, except as and to the extent
otherwise provided by law.
6. No Assumption. This Note shall not be assumable by the successors and assigns of Borrower
without the prior written consent of Holder.
7. Securi . This Note is secured by a Deed of Trust and Security Agreement("Deed of Trust"),
of even date herewith, wherein Borrower is the Trustor and Holder is the Beneficiary, covering the
Property.
8. Waivers.
City of Redding Residual Receipts Promissory Note Page 3 of 3
a. Borrower hereby waives diligence, presentment, protest and demand, and notice of
protest, notice of demand, notice of dishonor and notice of nanpayment of this Note. Borrower expressly
agrees that this Note or any payment hereunder may be extended from time to time, and that Holder may
accept further security or release any security for this Note, all without in any way affecting the liability
of Borrower.
b. No extension of time for payment of this Note or any installment hereof made by
agreement by Holder with any person now or hereafter liable for payment of this note shall operate to
release, discharge, modify, change or affect the original liability of Borrower under this Note, either in
whole or in part.
c. The obligations of Borrower under this Note shall be absolute and Borrower waives
any and all rights to offset, deduct, or withhold any payments or charges due under this Note for any
reason whatsoever.
9. Miscellaneous Provisions.
a. Borrower promises to pay all costs and expenses, including reasonable attorney's fees,
incurred by Holder in the enforcement of the provisions of this Note, regardless of whether suit is filed to
seek enforcement.
b. This Note may not be changed orally, but only by an agreement in writing signed by
the pariy against whom enforcement of any waiver, change, modification or discharge is sought.
c. This Note shall be governed by and construed in accordance with the laws of the State
of California.
Borrower:
RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. dba AccessHome, a California
Nonprofit Public Benefit Corporation
By:
Dawn Smith
Executive Director
EXHIBIT 8
SCOPE OF DEVELOPMENT
I. GENERAL
The location of the Project is the leased property as further described and specifically delineated on
the Legal Descriptions associated with this Development Agreement ("Agreement"). The
Owner/Operator agrees that all work completed on the leased property will be in accordance with the
provisions of this Agreement and the plans, drawings and related documents approved by the City
and Developer pursuant hereto.
II. DEVELOPMENT
A. Specifically, the Owner/Operator sha11 develop, construct, operate, manage and
maintain a Park Host Housing unit,the Affordable Unit. The Affordable Unit will also include any
necessary infrastructure improvements required by the City. This may include underground utilities,
water,sewer,cable installation,power installation and any other requirements set forth by the City of
Redding Planning, Building, Fire, and Electric Departments and any other local City, County or
Public Utility Departments.
i. The Affordable Unit will be pursuant to the Agreement,this Exhibit,Exhibit 8.5 and
all conditions set forth in any City permit issued for the Affordable Housing Project that shall consist
of a single-family unit for Park Host housing consisting of one(1),two (2)bedroom unit with an office
and two (2) bathrooms, 1,200 square feet, constructed with 3D Printing Technology as described in
Exhibit 8.5. In addition,the Affordable Unit shall include an open space area,and landscaping sufficient
to meet specific City development standards and
B. The Developer shall commence and complete the Improvements by the respective
times established therefore in the Schedule of Performance.
III. DEVELOPMENT STANDARDS
The Improvements shall conform to all applicable state laws and regulations and to applicable
provisions of the Municipal Code of the City of Redding(the"Municipal Code");all applicable City
of Redding development and zoning code requirements; and any and all permits issued for the
Affordable Housing Project.
Ground Lease-AccessHome Page I
Exhibit 7
GROUND LEASE
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RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC.
DBA ACCESSHOME
PREAMBLE AND RECITALS
This Lease is entered into by and between the CITY OF REDDING, a municipal corporation and
general law city, referred to in this Lease as "City" and RESOURCES FOR RURAL COMMt7NITY
DEVELOPMENT,INC. DBA ACCESSHOME, a California nonprofit corporation, referred to in this Lease as
"Lessee."
A. City owns the of certain real property in the County of Shasta, State of California,depicted
on Exhibit A and described on Exhibit B and, which are attached and made a part of this lease (referred
to in this Lease as the "Premises"}. Said Premises is located at the Enterprise Community Park.
B. Lessee desires to lease the Premises for the purpose of permanently affixing a single-
family Home and constructing other related improvements (collectively referred to in this Lease as the
"Park Host Home") and as a condition of execution of this Lease, is requiring that certain covenants,
restrictions and conditions as detailed in attached hereto as Exhibit D and by this reference incorporated
herein, shall be recorded against AccessHome leasehold estate in the Property (the "Leasehald Estate")
to impose occupancy and use restrictions on the Property for a period of not less than twenty(20) years
from the Effective Date; and
C. Lessee desires to lease the Property and secure a leasehold interest in the real property on
which it intends to construct the Project; and
D. City desires that the Park Host Home be made available to and occupied by low-income
households.
E. City desires that AccessHome or the occupants of the Park Host Home provide duties as
identified in this Lease and any Park Host Agreement.
AGREEMENT
ARTICLE l. LEASE OF PREMISES AND TERM OF LEASE
1.01. A�reement to Lease. For and in consideration of the covenants to be performed by Lessee
under this Lease, City hereby agrees to lease the Premises to Lessee, and Lessee agrees to lease the
Premises from City, on the terms and conditions set forth in this Lease. Except as expressly otherwise
provided in this Lease, the "Premises" includes the real property plus any appurtenances and easements
described in Exhibits A and B of this Lease, exclusive of any improvements now or hereafter located on
the Premises, notwithstanding that any such improvements may or shall be construed as affixed to and as
constituting part of the described Premises,and without regard to whether ownership of the improvements
is in the City or in the Lessee.
Ground Lease-AccessHome Page 2
1.02. Term of Lease. The initial term of this Lease shall be for a period of twenty (20) years
commencing on the date the Certificate of Occupancy is issued, with an option to extend upon written
agreement between both parties.
ARTICLE 2. LEASE FEE
2.01. Lease Fee. In lieu of paying a lease fee, Lessee agrees as follows:
A. AccessHome agrees to develop improvements consisting of one(1)three-bedroom,single-
family unit on the Premises. AccessHome shall make the unit available to,restrict occupancy to, and rent
to households earning not greater than eighty percent ($0%) of the City of Redding's median income
adjusted for household size, as determined by the United States Department of Housing and Urban
Development (HUD) from time to time, as set forth in Health and Safety Code Section 50093 at an
affordable rent, including a reasonable utility allowance not to exceed thirty percent {30%) of eighty
percent (80%) of the applicable median income adjusted for family size appropriate to the City of
Redding, as determined by HUD. The unit shall remain available to and occupied by 1ow- or moderate-
income households at an affordable rent for a period commencing upon the date of recording of the
Certificate of Occupancy and continuing for twenty (20) years.
B. AccessHome agrees to provide a minimum of SQO hours per year of volunteer on-site light
caretaking duties as outlined in the Enterprise Community Park Host Agreement (Exhibit C).
AccessHome sha11 execute Exhibit C as a condition precedent to this Ground Lease.
ARTICLE 3. LEFT BLANK INTENTIONALLY
ARTICLE 4. USE OF PREMISES
4A1. Use of Premises.
A. Lessee shall use the Premises for the sole purpose of permanently affixing, maintaining
and utilizing a three-bedroom; single-family, energy-efficient Home which will serve as the on-site Park
Host Home for the Enterprise Community Park. Lessee shall have the right to sublet the Premises to
income-eligible households. All subleases for this purpose shall be in writing and shall be reviewed
by the City prior to occupancy of the Park Host Home.
B. The Park Host Home will also serve as a demonstration of use of energy-efficient
building materials and technology in residential construction. The City shall have the right to post
signage on the Premises regarding the building materials and technology utilized in developing the Park
Host Home.
Lessee shall not change the use of the Premises without first obtaining the written consent of the
City.
Ground Lease-AccessHome Page 3
4.02. Comt�liance With Laws. Lessee shall, at Lessee's own cost and expense, comply with all
statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and
county or municipal, including those requiring capital improvements to the Premises or Park Host Home,
relating to any use and occupancy of the Premises (and specifically not limited to any particular use or
occupancy by Lessee), whether those statutes, ordinances, regulations, and requirements are now in force
or are subsequently enacted. If any license, permit, or other governmental authorization is required for
the lawful use or occupancy of the Premises or any portion of the Premises, the Lessee shall procure and
maintain it throughout the term of this Lease. The judgment of any court of competent jurisdiction, or the
admission by Lessee in a proceeding brought against Lessee by any government entity, that Lessee has
violated any such statute, ordinance, regulation, or requirement shall be conclusive as between City and
Lessee and shall constitute grounds for termination of this Lease by City.
4.03. No Relocation Assistance. Lessee acknowledges and agrees for itself and for all
occupants of the Park Host Home that Lessee and Lessee's tenants sublessees, successors, or assigns are
not and sha11 not be eligible for relocation benefits pursuant to the California Uniform Relocation Act
(Government Code section 7260, et seq.) in connection with the displacement of Lessee or Lessee's
tenants due to expiration, termination or cancellation of this Agreement or any subsequent rental
agreement between Lessee and its tenants. All rental agreements relative to the Park Host Home shall
include the following clause:
"I/we understand that the I/we will not qualify as a "displaced person" under any federal
of state law, and that I/we therefore will not be eligible for any relocation benefits for
persons displaced by governmental activities."
4.04. Prohibited Uses. Lessee shall not use or permit the Premises or any portion of the
Premises to be improved, developed, used, or occupied in any manner or for any purpose that is in any
way in violation of any valid law, ordinance, or regulation of any federal, state, county, or local
governmental agency, body, or entity. Furthermore, Lessee shall not maintain, commit, or permit the
maintenance or commission of any nuisance as now or hereafter defined by any statutory or decisional
law applicable to the Premises or any part of the Premises.
4.OS. Conditions and Restrictions. Lessee and any and all occupants of the Park Host Home
shall comply with the Community Park Host Agreement (Exhibit C) and the Enterprise Community
Park Host Home Conditions and Restrictions (Exhibit D).
4.06. Hazardous Substances or Materials.
A. Hazardous substances or materials include, but are not limited to:
1. Substances which are flammable, explosive, corrosive, radioactive, toxic;
2. Any material or substances defined as hazardous substances, hazardous materials,
toxic substances,or hazardous wastes in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. Sections 9601, et seq.), the Resource Conservation and Recovery Act
(42 U.S.C. Sections 6901, et seq.), the Hazardous Waste Control Act (California Health & Safety Code
Sections 25100,et seq.)the Hazardous Substance Account Act(California Health& Safety Code Sections
25300, et seq.), California Health and Safety Code Section 25280, et seq., Hazardous Materials Release
Response Plans and Inventory or the California Porter-Cologne Water Quality Control Act, (Water Code
Ground Lease-AccessHome Page 4
Sections
13000, et seq.), and all amendments to these laws and regulations adopted or publications promulgated
pursuant to these laws;
3. Those asbestos-containing materials defined and described in Environmental
Protection Agency Report No. 56/5-85-024(June 1985)whether or not friable,or any related or successor
report, or other applicable government regulations defined or describing such materials;
4. Pesticides as defined by Section 136(u) of FIFRA (7 U.S.C. Section 136) as may
be present in soil or groundwater;
5. "Hazardous wastes"as defined in Section 25117 of the California Health and Safety
Code, or as a chemical that is known to the State of California"to cause cancer or reproductive toxicity"
under the Safe Drinking Water and Toxic Enforcement Action of 1986,California Health and Safety Code
Sections 25249.5, et seq.; and
6. Hazardous materials, substances or waste, or toxic materials, substances or waste
as those terms or similar terms are defined by any other federal, state or local law or regulation or orders.
B. Lessee agrees to indemnify, protect, hold harmless, and defend City, its elected officials,
officers, employees, agents and volunteers from and against any and all liability, including without
limitation,(1)all foreseeable and unforeseeable consequential damages,directly or indirectiy arising from
the use generation, storage, or disposal of hazardous materials by Lessee, and(2)the cost of any required
or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans,
to the full extent that such liability is attributable, directly or indirectly,to the presence of use, generation,
storage, release, threatened release, or disposal of hazardous materials by Lessee, its officers, employees,
agents and/or invitees on the Premises after the beginning of the term of this Agreement.
C. Lessee releases City from any and all claims Lessee may have against City of whatever
kind or nature resulting from or in any way connected with the environmental condition of the Premises,
including any and all claims Lessee may have against City under the Comprehensive Environmental
Response,Compensation,and Liability Act af 1980,as amended("CERCLA"),or any other federal,state,
or local law, whether statutory or common 1aw, ordinance, or regulation pertaining to the release of
hazardous materials into the environmental from or at the Premises. Lessee expressly waives the benefits
of Civil Code Section 1542, which provides as follows:
A general release does not extend to claims which the creditor does not know or expect to
exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.
D. Lessee's obligations under this Section shall survive termination or expiration of this
Agreement.
ARTICLE 5. TAXES AND UTILITIES
5.01. Taxes. Lessee is advised that,pursuant to Revenue and Taxation Code §107.6,a possessory
interest subject to taxation may be created by the grant of this lease and that Lessee may be subject to the
payment of property taxes levied upon the interest. Lessee shall promptly pay before delinquency any
taxes and/or special assessments assessed against the Premises and any improvements and/or Lessee's
Ground Lease AccessHome Page S
personal property, and any possessory interest tax levied by reason of its use and/or occupancy of the
Prernises. On demand from the City, Lessee shall furnish the City with satisfactory evidence of these
payments.
5.02. Proration af First and Last Year Taxes. Notwithstanding the provisions of Section S.Q 1
of this Lease, all taxes, assessments, or other charges levied or assessed during the tax years in which the
term of this Lease commences and ends for which City is liable shall be prorated between City and Lessee
as of 12:01 a.m. on the date the term commences and on the date the term ends, respectively, on the bases
of tax years that commence on July 1 and end on June 30 of each year.
5.03. Utilities. Lessee shall pay or cause to be paid, prior to delinquency any and all utilities
furnished to the Premises, including without limitation gas, water, electricity,telephone service, and other
public utilities to the Premises during the term of this Lease and for the removal of garbage and rubbish
from the Premises during the term of this Lease. Lessee shall hold the City free and harmless from a11
charges for the furnishing of utilities to the Premises.
5.04. Payment bv Lessor. Should Lessee fail to pay any taxes, assessments, or other charges
required by this Article to be paid by Lessee, City may, without notice to or demand on Lessee, pay,
discharge, or adjust that tax, assessment, or other charge for the benefit of Lessee. In that event, Lessee
shall promptly on written demand of City reimburse Lessor for the full amount paid by City in paying,
discharging, or adjusting that tax, assessment, or other charge together with interest thereon at the
then-maximum legal rate fram the date of payment by City until the date of repayment by Lessee. If this
Article does not specify the time within which Lessee must pay any charge required by this Article,Lessee
shall pay that charge before it becomes delinquent.
ARTICLE 6. CONSTRUCTION BY LESSEE
6.01. Duty to Construct. Lessee shall, at Lessee's sole cost and expense, permanently affix on
the Premises, a three-bedroom, single-family Home and covered parking, landscaping, and other related
improvements (the"Park Host Home"), in the manner and according to the terms and conditions specified
in this Article, and the Development Agreement executed on , and pursuant to the terms
and conditions set forth by the City of Redding Development Services Department. The duty to construct
for the Park Host Home and any other improvements includes the duty for site preparation, including the
removal, if necessary, of any buildings or other structures located on the Premises, the installation or
relocation of any utilities and the obtaining of any and a11 necessary permits, including building and
planning permits.
6.02. Repuirement of Ci 's Written Apt�roval.
A. Nothing contained in this Article 6 is intended to address the requirements or timing of the
City of Redding Development Services Department. The City's approval pursuant to this Section is not
intended to be, nor sha11 it be deemed to be, approval far purposes of receiving a building or use permit.
B. No structure or other improvement of any kind shall be constructed on the Premises unless
and until the plans, specifications, and proposed location of that structure or improvement have been
approved in writing by the City. The submissian of plans for the City's approval is for review of
preliminary site layout plans and building elevations and is not intended to be nor shall it be deemed a
submission for purposes of receiving a building or use permit. Furthermore, no structure or other
Ground Lease AccessHome Page 6
improvements shall be constructed on the Premises that do not comply with plans, specifications, and
locations approved in writing by City.
6.03. All Work Under Direction and Sunervision of Licensed Contractor. All work
required in the construction of the Park Host Home and other improvements, including site preparation
work, landscaping work, and utility installation work, as well as actual construction work on the Home
and other improvements, shall be performed under the direction and supervision of a competent
contractor(s) licensed and in good standing under the laws of the State of California. Such contractor(s}
may be an employee of Lessee and shall have a current class B General Contractor's license issued by the
State of California.
A. Lessee shall record that Certificate of Completion promptly within the time specified by
law for the recording of that notice; and
B. Lessee shall settle and discharge all liens of record claimed by persons who supplied either
labor or materials for the construction of the Park Host Home and other improvements.
6.04. Compliance With Law and Standards. The Park Host Home shall be permanently affixed
and other improvements shall be constructed, a11 work on the Premises sha11 be performed, and all
buildings or other improvements on the Premises shall be erected in accordance with all valid laws,
ordinances, regulations, and orders of all federal, state, county, or local governmental agencies or entities
having jurisdiction over the Premises;provided,however,that any structure or other improvement erected
on the Premises, including the Park Host Home, shall be deemed to have been constructed in full
compliance with all such valid laws, ordinances, regulations, and orders when a valid final Certificate of
Occupancy entitling Lessee and sublessees, is so authorized, of Lessee to occupy and use the structure or
other improvement has been duly issued by proper governmental agencies or entities. All work
performed pursuant to this Lease,or authorized by this Lease,shall be done in a good workmanlike manner
and only with materials of good quality and high standard and in accordance with the final plans agreed
to with the Project Manager specified within the Development Agreement.
6.05. Time for Comt�letion. Lessee shall begin substantial construction of the Park Host Home,
pursuant to acquisition of a valid building permit, within six (6) months of the effective date of this
Lease. Lessee shall cause construction of the Home and other improvements to thereafter be diligently
pursued without unnecessary interruption, and shall cause the Home and other improvements to be
completed and ready for occupancy not later than one hundred eighty {180) days after commencement of
its construction. Lessee sha11 be excused for any delays in construction or commencement of construction
caused by the act of the act of any public enemy, acts of God, the elements, war, war defense conditions,
litigation,strikes,walkouts,or other causes beyond Lessee's control.Lessee shall,however,use reasonable
diligence to avoid any such delay and to resume construction as promptly as possible after the delay.
6.06. Mechanics' Liens.
A. At all times during the term of this Lease, Lessee shall keep the Premises and all
improvements now or hereafter located on the Premises free and clear of all liens and claims of liens for
labor, services, materials, supplies, or equipment performed on or furnished to the Premises.
B. Should Lessee fail to pay and discharge or cause the Premises to be released from any such
lien or claim of lien within twenty(20} days after service on Lessee of written request from City to do so,
Ground Lease AccessHome Page 7
City may pay, adjust, compromise, and discharge any such lien or claim of lien on any terms and in any
manner that City may deem appropriate unless Lessee is in good faith contesting, opposing or objecting
to such lien or claim of lien in compliance with subsection (C) below. In the event Lessee so fails to pay
and discharge or cause the Premises to be released from any such lien or claim of lien, Lessee shall, on or
before the first day of the next calendar month following any such payment by City, reimburse City for
the full amount paid by City in paying, adjusting, compromising, and discharging that lien or claim of
lien, including any attorneys' fees or other costs expended by City, and late fees and penalty charges, as
appropriate, as shown in City's then current Schedule of Fees,together with interest at the then-maximum
legal rate from the date of payment by City to the date of repayment by Lessee.
C. Lessee shall have the right to contest, oppose or object in good faith ta the amount or the
validity of any liens and claims of liens for labor, services, materials, supplies, or equipment performed
on or furnished to the Premises, provided that written notice of the contest, opposition or objection must
be given to City at least five(5) days priar to Lessee making or filing the contest, opposition or objection.
Lessee shall be responsible for and shall pay all costs and expenses in any contest or legal proceeding
instituted by Lessee. In no event shall City be subjected to any liability for costs or expenses connected to
any contest, and Lessee agrees to indemnify and hold City harmless from any such costs and expenses.
Furthermore,no such contest, opposition, or objection shall be continued or maintained unless Lessee has
provided to City such further written assurances as City may require within ten(10) days of City's written
request.
6.07. Zonin� and Use. Should it become necessary or appropriate to obtain any building
permit, use permit, variance, rezoning or adrninistrative permit for the Premises in order to construct or
operate the Park Host Home or any other improvements, City agrees to execute any documents,petitions
and applications that may be necessary or appropriate; provided, however, that any such permits,
variances, or rezoning shall be obtained only if consistenti with state and local law and at the sole cost and
expense of Lessee and Lessee agrees ta defend and indemnify City and the property of City, including the
Premises, from any such cost and expense.
6.08. No Modi�cation Once Completed. Once the Park Host Home and other improvement are
completed, Lessee shall not modify or change in any material manner the improvements or Park Host
Home without the prior written consent of City or without securing all appropriate and required permits.
Upon receiving such consent, Lessee shall proceed as set forth in this Article.
6.09. Ownership of Improvements.
A. Title to a11 improvements, including the Park Host Home, to be placed or constructed on
the Premises by Lessee shall be owned by Lessee until expiration of twenty (20) years from the
commencement date of this Lease or earlier termination of this Lease. Lessee shall surrender the
improvements to City at the expiration of the term or earlier termination of this Lease, free and clear of
all liens and encumbrances, other than those, if any, permitted under this Lease or otherwise created or
consented to by City. Lessee agrees to execute, acknowledge, and deliver to City any instrument
requested by City as necessary in City's opinion to perfect City's right, title, and interest to the
improvements and the Premises. All improvements, including the Park Host Home, on the Premises at the
expiration of the term or earlier termination of this Lease shall and without compensation to Lessee,
become the City's property.
B. Lessee shall have the right to remove such personal property as may be removed without
Ground Lease AccessHome Page 8
threat to the structural integrity of any building or improvement. If damage results from the removal of
any such items, Lessee shall repair such damage at its sole expense.
ARTICLE 7. REPAIRS AND RESTORATION
7.OL Maintenance bv Lessee.
A. At all times during the term of this Lease, Lessee shall, at Lessee's own cost and expense,
keep and maintain the Premises, all improvements, and all appurtenances now or hereafter on the
Premises, in good order and repair, and in a safe and clean condition. Lessee sha11 do, or cause to be
done without delay, all those things which, in the opinion of the City, are necessary or desirable in the
interests of safety or to maintain the Premises and the Park Host Home in good repair and appearance.
All damage caused to the Premises and/or the Enterprise Community Park by Lessee, its officers,
employees, agents and invitees, shall be repaired at Lessee's sole expense.
B. Lessee sha11 not make or cause to be made any alterations ar improvements to the Premises
without first securing the written consent of the City. The City may impose restrictions upon any
proposed alterations or improvements. All such alterations or improvements shall comply with all
applicable building, zoning and fire codes. Upon the termination of this Agreement, the alterations or
improvements shall become the property of the City and shall remain on the Premises.
C. In the event of damage or destruction of a11 or a portion of the Project rendering the Project
unusable, in whole or in part, AccessHome shall repair such damage or destruction with due diligence,
but only to the extent of the proceeds of the insurance coverage required by this Lease.
D. Lessee shall establish, fund and maintain reserve accounts for the term of this Agreement
as listed below. All such accounts shall be in the name of the Lessee, earn interest, and, unless otherwise
approved in writing by the Community Services Department, insured by an agency of the federal
government or other comparable federal insurance program. All interest earned on a reserve account
shall become a part of the account. Withdrawals from the reserve accounts shall require prior written
approval of the Community Services Department. Should the Department fail to take action on a request
for a withdrawal from a reserve account within thirty (30) days of documented receipt of the request,that
request will be deemed approved.
Commencing no later than the date funds are disbursed pursuant to the Loan Documents, Lessee shall
establish a segregated replacement reserve account. Lessee sha11 make annual deposits from Operating
Income to the replacement reserve account in the projected percentage amounts as set forth unless the City
determines, in its sole discretion, that more frequent deposits are required. Lessee shall also deposit any
Development funds designated for replacement reserves into this account. The amount of the minimum
annual deposit may be adjusted, as determined by the Community Services Department, in its sole
discretion, based on the results of reserve studies,performed by an independent third party at the Lessee's
expense as requested by the Department or as based on other reliable indicators of the need for reserve
funds over time.
7.02. Requirements of Governmental A�encies. At all times during the term of this Lease,
Lessee, at Lessee's own cost and expense, shall:
Ground Lease AccessHome Page 9
A. Make all alterations, additions, or repairs to the Premises or the improvements on the
Premises required by any valid law, ordinance, statute, order, or regulation now or hereafter made or
issued by any federal, state, county, local, or other governmental agency or entity;
B. Observe and comply with all valid laws, ordinances, statutes, arders, and regulations now
or hereafter made or issued respecting the Premises or the improvements on the Premises by any federal,
state, county, local, or other governmental agency or entity;
C. Except where Lessee is required by the Development Agreement, incorporated herein by
this reference, ta defend, hold harmless and indemnify City and Agency, contest if Lessee, in Lessee's
sole discretion, desires by appropriate legal proceedings brought in good faith and diligently prosecuted
in the name of Lessee, or in the names of Lessee and City when appropriate or required, and when
authorized in writing by City's City Council, the validity or applicability to the Premises of any law,
ordinance, statute, order,or regulation now or hereafter made or issued by any federal, state,county,local,
or other governmental agency or entity; provided, however, that any such contest or proceeding, though
maintained in the names of Lessee and City, shall be without cost to City, and Lessee shall protect the
Premises and City from Lessee's failure to observe or comply during the contest with the contested law,
ordinance, statute, order, or regulation;
D. Indemnify and hold City and the property of City, including the Premises, free and
harmless from any and all liability, loss, damages, fines, penalties, claims, and actions resulting from
Lessee's failure to comply with and perform the requirements of this Section.
'7.03. Lessee's Dutv to Restore Premises. If at any time during the Term of this Lease, any
improvements now or hereafter on the Premises are destroyed in whole or in part by fire, theft, the
elements, or any other cause not the fault of City, this Lease sha11 continue in full force and effect and
Lessee, at Lessee's own cost and expense, shall repair and restore the damaged improvement(s}. Any
restaration by Lessee shall comply with original plans for the improvements described in Article 6 except
as may be madified by Lessee to comply with the terms of any sublease of the improvements, or except
as may be otherwise modified by Lessee and approved in writing by City. The work of repair and
restoration shall be commenced by Lessee within thirty (30) days after the damage or destruction occurs
and shall be completed with due diligence not later than one hundred eighty (180) days after the work is
commenced. In a11 other respects, the work of repair and restoration shall be done in accordance with the
requirements for original construction work on the Premises set forth in Article 6 of this Lease. Lessee's
obligation for restoration described in this Section shall exist whether or not funds are available from
insurance proceeds.
7.04. Option to Terminate Lease for Destruction. Notwithstanding Section 7.03 of this Lease,
Lessee sha11 have the right to terminate this Lease if, during the last five (5) years of the Term of this
Lease, the improvements are damaged or destroyed by a casualty for which Lessee is not required under
this Lease to carry insurance and the cost to repair or restore the damaged or destroyed improvements
exceeds fifty percent(50%)of the fair market value of the improvements immediately prior to the damage
or destruction.
7.05. Application of Insurance Proceeds. Any and all fire or other insurance proceeds that
become payable at any time during the term of this Lease because of damage to or destruction of any
improvements on the Premises shall be paid to Lessee and applied by Lessee toward the cost of repairing
and restoring the damaged or destroyed improvements in the manner required by Section 7.03 of this
Lease, or, if this Lease is terminated pursuant to Section 7.04, paid by Lessee to City less a deduction for
Ground Lense AccessHome Page 10
any remaining un-amortized value Lessee has in the improvements. For purposes of this Section, Lessee's
"remaining un-amortized value"shall be the full replacement value insurance proceeds required by Article
9 multiplied by a factor the numerator of which is the remaining life of the Initial Term of this Lease and
the denominator of which is the Initial Term of this Lease.
ARTICLE 8. INDEMNITY
8.01. Indemnitv. Lessee shall indemnify and defend the City, its officers, officials, employees,
agents and volunteers, against and hold them harmless from any and all claims, losses, damages, civil
penalties, and liability for damages, including attorneys' fees and other costs of defense incurred by the
City, whether for violations of state or federal law committed by Lessee damage to or loss of property or
injury to or death of person(s), including properties of the City and injury to or death of the City's officers,
officials, employees, agents and volunteers, arising out of or resulting from Lessee's possession or use of
the Premises or activities hereunder or from the actions of Lessee's officers, employees, agents and
invitees, unless such damage, loss, injury or death is caused by the sole negligence or willful misconduct
of the City.
ARTICLE 9. INSURANCE
9.01. Insurance Requirements for Lessees. Lessee shall procure and maintain from an
insurance company authorized to do business in the State of California, for the duration of the Agreement,
insurance for claims for injuries to persons or damages to property which may arise from ar in connection
with the Lessee's operation and or use of the leased premises by the Lessee, it's members, agents,
representatives, employees, contractors, subcontractors, and invitees. The cost of such insurance shall be
borne by the Lessee. Coverage shall be at least as broad as:
Coverage Required Not Required
Commercial General Liability x
Comprehensive Vehicle Liability x
Workers Compensation and Employee Liability x
Builder's Risk/Course of Construction x
Hazard/All Risks x
(A) Minimum Scope and Limits of Insurance: Coverage shall be at least as broad as:
1) Insurance Services Office form number CG-0041, Commercial General Liability
Insurance, in an amount not less than$1,000,000 per occurrence $2,000,000 general aggregate for bodily
injury,persanal injury and property damage;
2) Insurance Services Office form number CA-0001, Comprehensive Automobile
Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per
accident applicable to all owned/non-owned and hired vehicles;
3} Statutory Workers Compensation required by the Labor Code of the State of
California and Employers'Liability Insurance in an amount not less than$1,000,000 per occurrence. Both
the Workers Compensation and Employers' Liability policy shall contain the insurer's waiver of
subrogation in favor of the City and Agency, their respective elected officials, officers, agents,employees
Ground Lease AccessHome Page II
and volunteers;
4) Course of Construction/Builder's Risk Insurance: Developer shall provide proaf of
Course of Construction/Builder's Risk Insurance providing coverage for "all risks" of loss during the
construction phase of the Project in the amount of the combined total of the City Assistance and Agency
Assistance as stated in Sections 2.2 and 2.3 of this Agreement.
5) Hazard Insurance: Following completion of construction, Developer shall keep the
improvements now existing or hereafter erected on the Site insured for full replacement value against
loss by fire, hazards included within the term "extended coverage," and such other hazards as the City
and/or Agency may require and in such amounts for the full remaining term of the Agreement.
(B) Other Insurance Provisions: The policies are to contain or be endorsed to contain the
following provisions:
1) For General Liability and Automobile Liability coverages:
a) The City and the Agency, their respective elected officials, officers,
employees, agents, and volunteers are to be covered as additional insureds as respects: liability arising out
of work or operations performed by or on behalf of Developer; premises owned, leased, or used by
Developer, or automobiles owned, leased, hired, or borrowed by Developer. The coverage sha11 contain
no special limitations on the scope of protection afforded to the City and the Agency, their respective
elected officials, officers, employees, agents, or volunteers.
b) The insurance coverage of Developer shall be primary insurance as respects
the City and Agency, their respective elected officials, officers, employees, agents, and volunteers. Any
insurance or self-insurance maintained by the City and/or the Agency, their respective elected officials,
officers, employees, agents, or volunteers shall be in excess of Developer's insurance and shall not
contribute with it.
2) Each insurance policy required by this Agreement shall be endorsed to state that
coverage sha11 not be cancelled except after thirty (34) days prior written notice has been given to the
entity.
(C) Acceptability of Insurers: Insurance is to be placed with insurers with a Bests' rating of
no less than A-VII. This requirement may, however, be waived in individual cases provided, however,
in no event will a carrier with a rating belaw B:IX will be acceptable.
(D) Verification of Coverage: Developer shall furnish the City's Risk Manager with certificates
of insurance and with original endorsements affecting coverage required by this Agreement. The
certificates and endorsements for each insurance policy are to be signed by a person authorized by the
insurer to bind coverage on its behalf. The City and Agency may withhold payments to Developer if
certificates of insurance and endorsements required have not been provided. The City's Risk Manager
reserves the right to require complete certified copies of a11 required insurance policies.
(E) Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must
be declared to and approved by the City's Risk Manager.
A. General Liability,for bodily injury,personal injury and property damages,covering no less
than all operations of the Lessee, including, but not limited to, premises-operations, products and
Ground Lease AccessHome Page I2
completed operations, contractual liability, independent contractors, broad form property damage
(including completed operations), explosion, collapse and underground hazards (if applicable), and
fueling, defueling and refueling operations.
B. Automobile Liability, combined single limits per aceident, applicable to all owned, non-
owned, and hired vehicles utilized on the leased premises or the airport apron.
C. Workers' Compensation insurance as required by the State of California and Employer's
Liability insurance. The workers' compensation insurance policy shall contain a waiver of subrogation
in favor of the City, its officers, officials, agents, employees, and volunteers.
D. Property Insurance against all risks of loss to any owned structures or facilities, including
any tenant improvements, betterments, and contents at full replacement value. The property insurance
policy shall contain a waiver of subrogation in favor of City, its officers, officials, agents, employees and
volunteers.
9.0'7. Accentability of Insurers. Insurance is to be piaced with insurers with a current A.M.
Best's rating of no less than A-:VII.
9.08. Verification of Coverage. Lessee shall furnish the City with certificates of insurance
and original endorsements effecting coverage required by this clause. The endorsements are to be signed
by a person authorized by that insurer to bind coverage on its behalf.
9.09. Review of Insurance Coverage. All insurance requirements identified in this
Agreement shall be re-evaluated every five (5) yeaxs for appropriate coverage. After each evaluation,
Lessee is obligated to provide such insurance coverage and minimum limits as required by the City.
ARTICLE 1Q. RIGHT TO INSFECT
10.01. Ri�ht to Inspect.
A. City and its authorized officers, agents, employees, volunteers, contractors, subcontractors
and other representatives shall have the right to inspect the Premises for any purpose, including, but not
limited to the following purposes:
1. To inspect the Premises at reasonable intervals during regular business hours (or at
any time in case of emergency) to determine whether Lessee has complied with or is complying with the
terms and conditions of this Lease; 2.To make repairs, additions or alterations as may be necessary or
convenient for the conduct, safety, improvement or preservation of the Enterprise Community Park;
3. For emergency purposes;
4. In the exercise of City's police pawer; and
5. To inspect the Premises, on an annual basis, to determine whether the Premises
comply with the Uniform Fire Code. Lessee agrees to annually schedule an inspection with City of
Redding's Fire Department personnel and to provide access to the Premises during the inspection period
specified by the Fire Department. Furthermore, The Housing Division, through its duly authorized
Ground Lease AccessHome Page 13
agents, shall have, at any time, with reasonable note to AccessHome and without interfering with tenants,
the right to enter the Property for the purpose of inspecting, monitoring and evaluating the obligations of
Lessee hereunder and for the purpose of doing any and all things with it is obligated and has a right to
do under this Lease.
B. No entry by or on behalf of City within or upon the Premises shall cause or constitute a
termination of the Lease, or be deemed to constitute an interference with Lessee's possession thereof.
ARTICLE 1l. SUBLET OR ASSIGNMENT
11.01. Subleasin� and Assi�nment. Lessee shall not voluntarily assign, encumber or sublet its
interest in this Lease or in the Premises, or allow any other person or entity (except its authorized
representatives and tenants as authorized pursuant to Section 4 of this Agreement)to occupy or use all or
any part of the Premises, without first obtaining the City's prior written consent. Any assignment or
encumbrance without the City's consent shall be voidable and, at the sole election of the City, shall
constitute a default of this Lease. No consent to any assignment or encumbrance shall constitute a further
waiver af the provisions of this paragraph.
ARTICLE 12. INVOLUNTARY ASSIGNMENT
12.01. Involuntary Assi�nment. No interest of Lessee in this Agreement shall be assignable by
operation of law.
A. Each of the following acts shall be considered an involuntary assignment:
l. If Lessee is or becomes bankrupt (whether voluntary or involuntary) or insolvent,
makes an assignment for the benefit of creditors, or institutes a proceeding under the Bankruptcy Act in
which Lessee is the bankrupt; or, if Lessee is a partnership or consists of more than one person or entity,
if any partner of the partnership, or other person or entity, is or becomes bankrupt (whether voluntary or
involuntary) or insolvent, or makes an assignment for the benefit of creditors;
2. If a writ of attachment or execution is levied on this Agreement;
3. If, in any proceeding or action to which Lessee is a party, a receiver is appointed
with authority to take possession of the Premises; or
4. The abandonment or discontinuance of occupancy of the Home by Lessee, or the
failure to conduct any service, operation or activity permitted by this Agreement. If this condition exists
for a period of fifteen (15) days without the prior written consent of the City, it will constitute an
abandonment of the land, facility or location, and this Agreement shall become null and void.
B. An involuntary assignment shall constitute a default by Lessee, and the City shall have the
right to elect to terminate this Agreement. In no event shall this Agreement be deemed or treated as an
asset of Lessee.
ARTICLE 13. DEFAULT AND REMEDIES
Ground Lease AccessHome Page I4
13.01. Lessee's Default.
A. The occurrence of any of the following shall constitute a material breach ar default by
Lessee under this Lease:
l. Lessee's failure to provide light caretaking for the Enterprise Community Park as
required under this Lease if the failure continues for thirty(30)days after written notice of the failure from
City to Lessee;
2. Lessee's failure to provide any instrument or assurance as required by this Lease if
the failure continues for ten(10) days after written notice of the failure from City to Lessee;
3. Lessee's failure to perform any other obligation under this Lease if the failure
continues for thirty (34) days after written notice of the failure from City to Lessee, except in those
instances where the cure would require more than thirty{30)days and Lessee is diligently seeking to cure
the default, then the time shall be a reasonable period of time for the given circumstances;
4. To the extent permitted by law:
a. A general assignment by Lessee or any guarantor of the Lease for the benefit
of creditors;
b. The filing by or against Lessee, or any guarantor, of any proceeding under
an insolvency or bankruptcy law, unless (in the case of an involuntary proceeding) the proceeding is
dismissed within sixty(60) days;
c. The appointment of a trustee or receiver to take possession of all or
substantially all the assets of Lessee or any guarantor, unless possession is unconditionally restored to
Lessee or that guarantor within thirty (30) days and the trusteeship or receivership is dissolved;
d. Any execution or other judicially authorized seizure of all or substantially
all the assets of Lessee located on the Premises, or of Lessee's interest in this Lease, unless that seizure is
discharged within thirty (30) days; ore. The committing of waste on the Premises if such waste
continues or is allowed to remain for thirty(30) days after written notice of the waste from City to Lessee,
except in those instances where the cure would require more than thirty(30) days and Lessee is diligently
seeking to cure the default,then the time shall be a reasonable period of time for the given circumstances.
13.02. City's Remedies on Lessee`s Default. On the occurrence of a default by Lessee, City
shall have the right to pursue any one or more of the remedies set forth in Sections 13.03 and 13.04 in
addition to any other remedies now or later available to City at 1aw or in equity. These remedies are nat
exclusive but cumulative.
13.03. Termination of Lease. Upon the occurrence of a default that is not timely cured by
Lessee, City may immediately terminate this Lease and recover possession of the Premises. Once City has
terminated this Lease, Lessee shall immediately surrender the Premises to City. In addition to any other
remedy available to City, as set out in Section 6.12, title to all the improvements on the Premises shall
vest in City at the expiration of twenty (20) years from the commencement date of this Lease or earlier
Ground Lease AccessHome Page IS
termination of this Lease. On termination of this Lease, City may recover from Lessee all of the following:
A. Any amount necessary to compensate City for all the detriment proximately caused by
Lessee's failure to perform obligations under this Lease, including brokerage commissions and advertising
expenses, expenses of remodeling the Premises for a new Lessee(whether for the same or a different use),
and any special concessions made to obtain a new Lessee; and
B. Any other amounts, in addition to or in lieu of those listed above,that may be permitted by
applicable law.
13.04. Continuation of Lease in Effect. Upon the occurrence of a default that is not timely
cured by Lessee, City shall have the rernedy described in Civil Code Section 1951.4, which provides that,
when a Lessee has the right to sublet or assign (subject only to reasonable limitations), the City may
continue the lease in effect after the Lessee's breach and abandonment and recover rent as it becomes due.
Accordingly, if City does not elect to terminate this Lease on account of any default by Lessee, City rnay
enforce all of City's rights and remedies under this Lease, including the right to recover all rent as it
becomes due.
13.05. Form of Pavment After Default. If Lessee fails to pay any amount due under this Lease
within three (3) days after the due date or if Lessee draws a check on an account with insufficient funds,
City shall have the right to require that any subsequent amounts paid by Lessee to City under this Lease
(to cure a default or otherwise)be paid in the form of cash,money order, cashier's or certified check drawn
on an institution acceptable to City,or other form approved by City despite any prior practice of accepting
payments in a different form.
13.06. Efforts To Relet. For purposes of this Article 13, Lessee's right to possession shall not
be considered to have been terminated by City's efforts to relet the Premises, by City's acts of maintenance
or preservation with respect to the Premises, or by appointment of a receiver to protect City's interests
under this Lease. This list is merely illustrative of acts that may be performed by City without terminating
Lessee's right to possession.13.0'7. Acceptance of Lease Payment Without Waivin� Ri�hts. Under
Sections 14.15 and 14.16, City may accept Lessee's lease payments without waiving any rights under this
Lease, including rights under a previously served notice of default. If City accepts lease payments after
serving a notice of default, City may nevertheless commence and pursue an action to enforce rights and
remedies under the previously served notice of default without giving Lessee any further notice or demand.
13.08. Lessee's Remedies on Citv's Default.Lessee waives any right to terminate this Lease and
to vacate the Premises on City's default under this Lease. Lessee's sole remedy on City's default is an
action for damages or injunctive or declaratory relief.
ARTICLE 14. MISCELLANEOUS
14.01. Administration bv City. Whenever Lessee is required to secure the approval or consent
of the City pursuant to this Agreement, the City shall mean the City Manager.
14.02. Force Maieure. Except as otherwise expressly provided in this Lease,if the performance
of any act required by this Lease to be performed by either City or Lessee is prevented or delayed by
reason of any act of God, strike, lockout, labor trouble, inability to secure materials, or any other cause
(except financial inability) not the fault of the party required to perform the act, the time for performance
Ground Lease AccessHome Page 16
of the act will be extended for a period equivalent to the period of delay and performance of the act during
the period of delay will be excused. However, nothing contained in this Section shall excuse the prompt
payment of rent by Lessee as required by this Lease or the performance of any act rendered difficult or
impossible solely because of the financial condition of the party required to perform the act.
14.03. Attornev Fees. In any dispute between the City and Lessee, whether or not resulting in
litigation, the prevailing party shall be entitled to recover from the other party all reasonable costs,
including without limitation, reasonable attorney's fees. "Prevailing party" sha11 include without
Iimitation, a party who dismisses an action for specific performance or for damages in exchange for sums
allegedly due, performance for covenants allegedly breached or consideration substantially equal to the
relief sought in the action, or which receives from the other party, in connection with any dispute,
performance substantially equivalent to any of these.
14.04. No Partnershi� or Joint Venture. Nothing in this Lease shall be construed to render the
City in any way or for any purpose a partner,joint venturer, or associate in any relationship with Lessee
other than that of City and Lessee, nor shall this Lease be construed to authorize either to act as agent for
the other.
14.05. Notices. Any notices required to be given under this Agreement shall be in writing and
shall be deemed properly delivered, given or served when personally delivered to the City or Lessee, or
in lieu of such personal service, sent by United States mail,registered or certified,return receipt requested,
addressed as follows:
CITY:
City of Redding
Attention: Ciry Manager
777 Cypress Avenue
P.O. Box 496071
Redding, California 96049-60�1
LESSEE:
Resources for Rural Community Development, Inc. dba AccessHome
715 Parkview Avenue
Redding, California 96001
In the event of personal service, notice shall be deemed given when personally served. In the
event of service by mail, notice shall be deemed to have been given seventy-two (72) hours after deposit
of same in the United States mail post box in the State of Califomia, postage prepaid, addressed as set
forth above, or upon the date of the signed return receipt, whichever is sooner. Either party may change
its address for the purposes of this section by giving written notice of such change to the other party in the
manner provided in this section.
14.06. California Law. This Agreement shall be governed by and construed in accardance with
the laws of the State of California. Any claim or lawsuit pertaining to this Agreement shall be filed and
litigated only in the Superior Court of Shasta County, State of California.
14.07. No Third-Party Bene�ciaries Intended. Unless specifically set forth,the parties to this
Agreement do not intend to provide any other party with any benefit or enforceable legal or equitable right
or remedy.
Ground Lease-AccessHome Page l7
14.08 Bindin� on Heirs and Successors. This Lease shall be binding on and shall inure to the
benefit of the heirs, executors, administrators, successors, and assigns of the parties hereto, but nothing in
this Section shall be construed as a consent by City to any assignment of this Lease or any interest in the
Lease by Lessee except as provided in Article 11 of this Lease.
14.09. Partial Invalidity. If any provision of this Lease is held by a court of competent
jurisdiction to be either invalid,void,or unenforceable,the remaining provisions of this Lease shall remain
in full force and effect unimpaired by the holding.
14.10. Time of Essence. Time is expressly declared to be of the essence of this Lease.
14.21. Memorandum of Lease for Recordin�. Neither party, City or Lessee, shall record this
Lease without the written consent of the other. However, City and Lessee shall, at the request of either at
any time during the term of this Lease, execute a memorandum or"short form"of this Lease for purposes
of, and in a form suitable for, recordation. The memorandum or "short form" of this Lease shall describe
the parties, set forth a description of the leased Premises, specify the term of this Lease, incorporate this
Lease by reference, and include any other provisions required by Lender(s}.
14.12. Headin�s, Reference and Joint and Several Liabilitv. The titles and headings of the
various Sections of this Lease are intended solely for convenience of reference and are not intended to
explain,modify or place any construction on any of the provisions of this Lease. Masculine and feminine,
or neutral gender and the singular and the plural number shall each be considered to include the other
whenever the context so requires. If either party consists of more than one person,each such person shall
be jointly and severally liable.
14.13. No Partv Deemed Drafter. In the event of a dispute between any of the parties hereto
over the meaning of this agreement, no party shall be deemed to have been the drafter hereof, and the
principle of law set forth in Civil Code §1654 that contracts are construed against the drafter shall not
apply.
14.14. Exhibits. The exhibits attached to this lease are incorporated herein by this reference.
14.15. No Waiver. No waiver of any provision of this Lease shall be implied by any failure of
City to enforce any remedy for the violation of that provision, even if that violation continues or is
repeated. Any waiver by City of any provision of this Lease must be in writing. Such written waiver shall
affect only the provision specified and only for the time and in the manner stated in the writing.
14.16. Acceptance and Application of Pavment; Not Accord and Satisfaction. No receipt
by City of a lesser payment than the rent required under this Lease shall be considered to be other than on
account of the earliest amount due,and no endorsement or statement on any check or letter accompanying
a payment or check shall be considered an accord and satisfaction. City may accept checks or payments
without prejudice to City's right to recover all amounts due and pursue all other remedies provided for in
this Lease.
City's receipt of monies from Lessee after giving notice to Lessee terminating this Lease shall in
no way reinstate, continue, or extend the Lease term or affect the termination notice given by City before
Ground Lease-AccessHome Fage 18
the receipt of those monies. After serving notice terminating this Lease, filing an action,or obtaining final
judgment for possession of the Premises, City may receive and collect any rent due, and the payment of
that rent shall not waive or affect such prior notice, action, or judgment.
14.17. Modi�ication of A�reement. This Lease shall not be altered, amended, or modified
except by a writing signed by the City and Lessee. Should minor modifications or amendments be
warranted, the City Manager or designee shall have full authority to execute such modifications or
amendments without additional City Council approval.
14.18. Authority. Each of the undersigned signatories hereby represents and warrants that they
are authorized to execute this Contract on behalf of the respective parties to this Contract; that they have
full right, power and lawful authority to undertake all obligations as provided in this Contract; and that
the execution, performance and delivery of this Contract by said signatories has been fully authorized by
all requisite actions an the part of the respective parties to this Contract.
14.19. No Discrimination or Segre�ation.Lessee shall not discriminate in Lessee's recruiting,
hiring, promotion, demotion or termination practice on the basis of race, religion, creed, color, national
origin, ancestry, sex, age, physical handicap, medical condition, source of income, or marital status with
respect to its use of the Praperty hereunder, and PC Redding shall comply with the provisions of the
California Fair Employment and Housing Act (Government Code Sections 12900 et seq.), the Federal
Civil Rights Act of 1964 (P.L. 88-352), as amended, and all Administrative Rules and Regulations issued
pursuant to said Acts and Orders with respect to its use of the Property.
14.20 Local,State and Federal Laws in Construction. Lessee shall carry out the construction
of the Project in conformity with all applicable federal, state and local laws and regulations, including,but
not limited to the California Environmental Quality Act. Lessee represents and warrants that all of the
Project shall be constructed in compliance with all laws or regulations with respect to the payment of
prevailing wages as applicable. The City shall not have any responsibility whatsoever for the payment
to any contractor or supplier of AccessHome. Following the completion of the initial construction of the
Project, AccessHome, may, from time to time, during the Term of the Lease, make such modifications or
alterations to the Project provided that all construction is in conformity with all applicable federal, state
and local laws and regulations, and subject to City approval.
14.21 Incornoration by Reference. All exhibits and addenda attached hereto are hereby
incorporated into this Lease and made a part hereof. If there is any conflict between such exhibits or
addenda and the terms of this Lease, such exhibits or addenda shall control. Furthermore, the terms and
conditions of the Development Agreement are hereby incorporated by reference and made a part hereof.
14.22. Effective Date of A�reement. The effective date of this Agreement shall be that date that
it shall have been signed by City.
THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
Ground Lease AccessHome Page 19
CITY OF REDDING
Dated: , 2021
ERIN RESNER, Mayor
ATTEST: APPROVED AS TO FORM:
BARRY E. DeWALT
City Attorney
By:
PAM MIZE, City Clerk
LESSEE
RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. DBA ACCESSHOME, a
California Nonprofit Corporation
Dated: , 2021
By:
Tax ID Number
Exhibit A: Site Map
Exhibit B: Legal Description
Exhibit C: Enterprise Community Park Host Agreement
Exhibit D: Enterprise Community Park Host Home Conditions and Restrictions
Ground Lease-AccessHome Page 20
Exhibit A
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Ground Lease AecessHome Page 21
Exhibit B
Legal Description
Legal Description for the portion of the property allocated to the Park Host site is Pending.
Exhibit C
CITY OF REDDING
PARK HOST AGREEMENT
THIS CONTRACT is made at Redding, California, by and between the City of Redding ("City"), a
municipal corporation, and Resources for Rural Community Development ("RRCD") for the purpose of
providing a park host presence at Enterprise Park.
NOW, THEREFORE, the Parties covenant and agree, for good consideration hereby acknowledged, as
follows:
SECTION 1. RRCD SERVICES
A. Subject to the terms and conditions set forth in this Contract, RRCD shall:
1. Assign a"Park Host"to reside on Premises and RRCD sha11 cause said Park Host to
perform duties as outlined in Exhibit A, attached and incorporated herein.
2. To the extent possible, each Park Host wi11 reside on the Premises for a period of six
months or more.
3. RRCD shall cause the Park Host to make reports, as outlined in Exhibit A, to a City
of Redding Community Services Department employee.
4. RRCD shall treat all activities of its Park Host as being performed as a volunteer and
not as an agent or employee. Nonetheless,Agency shall give City three(3)calendar
days' advance notice if Park Host plans to take time away from the Park so that
his/her duties can be covered by the City.
SECTION 2. CITY RESPONSIBILITIES
A. Provide a site for a residence to be used by the Park Host(hereafter, "Premises")as indicated
on Exhibit B, attached and incorporated herein.
B. Provide RRCD with a list of emergency contact personnel and phone numbers.
C. Pay all monthly charges for water, sewer, garbage and electrical utilities.
D. Provide a printer/copier/facsimile machine to be used for City-related matters. Monthly
charges attributable to City-related use shall be paid by City.
E. Provide an electric GEM vehicle and/or bicycle for use on City-related matters.
F. Provide RRCD with a "Park Host" vest which will be affixed with identification badges to
be worn by Park Host while performing duties set forth herein.
SECTION 3. TERM AND TERMINATION
A. This Contract sha11 commence on the date of the Contract and shall continue until terminated
herein.
B. City shall have the right ta terminate this Contraet without cause on thirty(30)calendar days'
written notice.
C. Either Party may terminate for cause if there is a material breach of the obligations set forth
herein which is not cured within thirty(30) calendar days after written notice is provided of
the breach. RRCD hereby recognizes that it has contractual obligations to City set forth in
the dated and that breach of this Agreement may
result in a breach of that ather Contract referenced herein.
D. In no event shall the termination or expiration of this Contract be construed as a waiver of
any right to seek remedies in law, equity or otherwise for a Party's failure to perform each
obligation required by this Contract.
SECTION 4. MISCELLANEOUS TERMS AND CONDITIONS OF CONTRACT
A. RRCD hereby agrees and consents that if any claim in law or equity is made with regard to
this Contract, the market value of lodging and utilities provided by City hereunder may be
set-off against the amount of any judgment of penalty to the maximum extent permitted
by law.
B. RRCD shall, during the entire term of this Contract, be construed to be an independent
contractor and nothing in this Contract is intended, nor shall it be construed, to create an
employer/employee relationship, association,joint venture relationship, trust or partnership
or to allow City to exercise discretion or control over the professional manner in which
RRCD performs under this Contract. Any and all t�es imposed on RRCD's income,
imposed or assessed by reason of this Contract or its performance, including but not limited
to sales or use taxes, shall be paid by RRCD. RRCD shall be responsible for any taxes or
penalties assessed by reason of any claims that RRCD is an employee of City. RRCD shall
not be eligibie for coverage under City's workers' compensation insurance plan, benefits
under the Public Employee Retirement System or be eligible for any other City benefit.
C. No provision of this Contract is intended to, or sha11 be for the benefit of, or construed to
create rights in, or grant remedies to, any person or entity not a party hereto.
D. No portion of the work or services to be performed under this Contract shall be assigned,
transferred, conveyed or subcontracted without the prior written approval of City. RRCD
shall be the responsible party with respect to all actions of its independent contractors and
park hosts, and shall obtain such insurance and indemnity pravisions from its contractors and
subcontractors as City's Risk Manager shall determine to be necessary.
E. RRCD, at such times and in such form as City may require, shall furnish City with such
periodic reports as it may request pertaining to the work or services undertaken pursuant to
this Contract,the costs or obligations incurred or to be incurred in connection therewith, and
any other matters covered by this Contract.
F. RRCD shall maintain accounts and records, including personnel, property and financial
records, adequate to identify and account for all costs pertaining to this Contract and such
other records as may be deemed necessary by City to assure proper accounting for all project
funds. These records shall be made available for audit purposes to state and federai
authorities, or any authorized representative of City. RRCD shall retain such records for
three (3) years after the expiration of this Contract, unless prior permission to destroy them
is granted by City.
SECTION 5. INSURANCE
A. Unless modified in writing by City's Risk Manager, RRCD shall maintain the following
noted insurance during the duration of the Contract:
Covera�e Required Not Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Compensation and Employers' Liability X
Professional Liability(Errors and Omissions) X
(Place an"x" in the appropriate box)
B. Coverage shall be at least as broad as:
l. Insurance Services Office form number CG-0001, Commercial General Liability
Insurance, in an amount not less than $1,000,000 per occurrence and $2,000,000
general aggregate for bodily injury, personal injury and property damage;
2. Insurance Services Office form number CA-0001 (Ed. 1/87}, Comprehensive
Automobile Liability Insurance, which provides for total limits of not less than
$1,000,000 combined single limits per accident applicable to all owned, non-owned
and hired vehicles;
3. Statutory Workers' Compensation required by the Labor Code of the State of
California and Employers'Liability Insurance in an amount not less than$1,000,000
per occurrence. Both the Workers' Compensation and Employers'Liability policies
shall contain the insurer's waiver of subrogation in favor of City, its elected officials,
officers, employees, agents and volunteers;
4. Prafessional Liability (Errors and Omissions) Insurance, appropriate to RRCD's
profession, against loss due to error or omission or malpractice in an amount not less
than$1,000,000.
S. The City does not accept insurance certificates or endorsements with the wording
"but only in the event of a named insured's sole negligence" or any other verbiage
limiting the insured's insurance responsibility.
C. Any deductibles or self-insured retentions must be declared to and approved by City. At the
option of the City, either: the insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects the City, its elected officials, officers, employees, agents and
volunteers; or the RRCD shall procure a bond guaranteeing payment of losses and related
investigations, claims administration and defense expenses.
D. The General Liability shall contain or be endorsed to contain the following provisions:
l. City, its elected officials, officers, employees, and agents are to be covered as
additional insured as respects liability arising out of work or operations performed by
or on behalf of RRCD; premises owned, leased or used by RRCD; or automobiles
owned, leased, hired or borrowed by RRCD. The coverage shall contain no special
limitations on the scope of protection afforded to City, its elected officials, officers,
employees, agents and volunteers.
2. The insurance coverage of RRCD shall be primary insurance as respects City, its
elected officials, officers, employees, agents and volunteers. Any insurance or self-
insurance maintained by City, its elected officials, officers, employees, agents and
volunteers, shall be in excess of RRCD's insurance and shall not contribute with it.
3. Coverage shall state that the insurance of RRCD shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the
limits of the insurer's liability.
4. Each insurance policy required by this Contract shall be endorsed to state that
coverage shall not be canceled except after thirty (30) calendar days' prior written
notice has been given to City. In addition, RRCD agrees that it shall not reduce its
coverage or limits on any such policy except after thirty (30} calendar days' prior
written notice has been given to City.
E. Insurance is to be placed with insurers with a current A.M.Best's rating of no less than A-
VII.
F. RRCD shall designate the City of Redding as a Certificate Holder of the insurance. RRCD
shall furnish City with certificates of insurance and original endorsements effecting the
coverages required by this clause. Certificates and endorsements shall be furnished to: Risk
Management Department, City of Redding, 777 Cypress Avenue, Redding, CA 9600 L The
certificates and endorsements for each insurance policy are to be signed by a person
authorized by the insurer to bind coverage on its behal£ All endorsements are to be received
and approved by the City's Risk Manager prior to the commencement of cantracted services.
City may withhold payments to RRCD if adequate certificates of insurance and endorsements
required have not been provided, or not been provided in a timely manner.
G. The requirements as to the types and limits of insurance coverage to be maintained by RRCD
as required by Section 5 of this Contract, and any approval of said insurance by City, are not
intended to and will not in any manner limit or qualify the liabilities and obligations
otherwise assumed by RRCD pursuant to this Contract, including, without limitation,
provisions concerning indemnification.
H. If any policy of insurance required by this Section is a "claims made" policy, pursuant to
Code of Civil Procedure § 342 and Government Code § 945.6, RRCD shall keep said
insurance in effect far a period of eighteen(18)months after the termination of this Contract.
I. If any damage, including death, personal injury or property damage, occurs in connection
with the perfarmance of this Contract, RRCD shall immediately notify City's Risk Manager
by telephone at(530)225-4068. No later than three(3)calendar days after the event,RRCD
shall submit a written report to City's Risk Manager containing the following information,
as applicable: 1) name and address of injured or deceased person(s); 2)name and address of
witnesses; 3)name and address of RRCD's insurance company; and 4)a detailed description
of the damage and whether any City property was involved.
SECTION 6. INDEMNIFICATION AND HOLD HARMLESS
A. To the fullest extent permitted by law, RRCD shall indemnify protect, defend and hold
harmless, City, its elected officials, officers, employees, and agents, and each and every one
of them, from and against all actions, damages, costs, liability, claims (including, but not
limited to, wages and hours claims, and claims for relocation benefits), losses, penalties and
expenses (including, but not limited to, reasonable attorney's fees of the City Attorney or
legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every
type and description to which any or a11 of them may be subjected by reason of the
performance of the services required under this Contract by RRCD its officers,employees
or agents in the performance of professional services under this Contract, except when
liability arises due to the sole negligence, active negligence or misconduct of the City.
C. The RRCD's obligation to defend,indemnify and hold harmless shall not be excused because
of the RRCD's inability to evaluate liability. The RRCD shall respond within thirty (30)
calendar days to the tender of any claim for defense and indemnity by the City, unless this
time has been extended in writing by the City. If the RRCD fails to accept or reject a tender
of defense and indemnity in writing delivered to City within thirty (30) calendar days, in
addition to any other remedy authorized by law, the City may withhold such funds the City
reasonably considers necessary for its defense and indemnity until disposition has been made
of the claim or until the RRCD accepts or rejects the tender of defense in writing delivered
to the City, whichever occurs first. This subdivision shall not be construed to excuse the
prompt and continued performance of the duties required of RRCD herein.
D. The obligation to indemnify, protect, defend, and hold harmless set forth in this Section
applies to all claims and liability regardless of whether any insurance policies are applicable.
The policy limits of said insurance policies do not act as a limitation upon the amount of
indemnification to be provided by Contractor.
E. City shall have the right to approve or disapprove the legal counsel retained by RRCD
pursuant to this Section to represent City's interests. City shall be reimbursed for all costs
and attorney's fees incurred by City in enforcing the obligations set forth in this Section.
SECTION 7. CONTRACT INTERPRETATION, VENUE AND ATTORNEY FEES
A. This Contract shall be deemed to have been entered into in Redding, California. All
questions regarding the validity, interpretation or performance of any of its terms or of any
rights or obligations of the parties to this Contract shall be governed by California law. If
any claim, at law or otherwise, is made by either party to this Contract, the prevailing party
shall be entitled to its costs and reasonable attorneys' fees.
B. This document, including all exhibits, contains the entire agreement between the parties and
supersedes whatever oral or written understanding each may have had prior to the execution
of this Contract. This Contract shall not be altered,amended or modified except by a writing
signed by City and RRCD. No verbal agreement or conversation with any official, officer,
agent or employee of City, either before, during or after the execution of this Contract, shall
affect or modify any of the terms or conditions contained in this Contract, nor shall any such
verbal agreement or conversation entitle RRCD to any additional payment whatsoever under
the terms of this Contract.
C. No covenant or condition to be performed by RRCD under this Contract can be waived
except by the written consent of City. Forbearance or indulgence by City in any regard
whatsoever shall not constitute a waiver of the covenant or condition in question. Until
performance by RRCD of said covenant or condition is complete, City shall be entitled to
invoke any remedy available to City under this Contract or by law or in equity despite said
forbearance orindulgence.
D. If any portion of this Contract or the application thereof to any person or circumstance shall
be invalid or unenforceable to any extent,the remainder of this Contract shall not be affected
thereby and shall be enforced to the greatest extent permitted by law.
E. The headings in this Contract are inserted for convenience only and shall not constitute a part
hereof. A waiver of any party of any provision or a breach of this Contract must be provided
in writing, and shall not be construed as a waiver of any other provision or any succeeding
breach of the same or any other provisions herein.
F. Each Party hereto declares and represents that in entering into this Contract, it has relied and
is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect
and consequence relating thereto. Each Party further declares and represents that this
Contract is made without reliance upon any statement or representation not contained herein
of any other Party or any representative, agent or attorney of the other Party. The Parties
agree that they are aware that they have the right to be advised by counsel with respect to the
negotiations, terms, and conditions of this Contract and that the decision of whether or not
to seek the advice of counsel with respect to this Contract is a decision which is the sole
responsibility of each of the Parties. Accordingly, no party shall be deemed to have been
the drafter hereof, and the principle of law set forth in Civil Code § 1654 that contracts are
construed against the drafter shall not apply.
G. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury in any
action, proceeding, claim or counterclaim, whether in contract or tort, at law or in equity,
arising out of or in any way related to this Agreement or the transactions contemplated
hereby. Each Party further waives any right to consolidate any action which a jury trial has
been waived with any other action in which a jury trial cannot be or has not been waived.
H. In the event of a conflict between the term and conditions of the body of this Contract and
those of any exhibit or attachment hereto, the terms and conditions set forth in the body of
this Contract proper shall prevail. In the event of a conflict between the terms and
conditions of any two or more exhibits or attachments hereto, those prepared by City shall
prevail over those prepared by RRCD.
SECTION 8. SURVIVAL
The provisions set forth in Sections 3 through 7, inclusive, of this Contract shall survive
termination of the Contract.
SECTION 9. COMPLIANCE WITH LAWS - NONDISCRIMINATION
A. RRCD shall comply with all appiicable laws, ordinances and codes of federal, state and local
governments.
B. In the performance of this Contract, RRCD shall not discriminate against any employee or
applicant for employment because of race, color, ancestry, national origin, religious creed,
sex, sexual orientation, disability, age, marital status, political affiliation, or membership or
nonmembership in any organization. RRCD shall take affirmative action to ensure
applicants are employed and that employees are treated during their employment without
regard to their race, color, ancestry, national origin, religious creed, sex, sexual orientation,
disability, age, marital status, political affiliation, or membership or nonmembership in any
organization. Such actions shall include, but not be limited to, the following: employment,
upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or
termination, rates of pay or other forms of compensation and selection for training.
SECTION 10. REPRESENTATIVES
A. City's representative for this Contract is Kim Niemer,telephone number(530)225-4085,fax
number (530) 225-4585. All of RRCD's questions pertaining to this Contract shall be
referred to the above-named person, or to the representative's designee.
B. RRCD's representative for this Contract is Dawn Smith, telephone number(530)224-2800,
fax number (_) . All of City's questions pertaining to this Contract
� shall _be referred to the above-named person.
C. The representatives set forth herein shall have authority to give all notices required herein.
SECTION 11. NOTICES
A. A11 notices, requests, demands and other communications hereunder shall be deemed given
only if in writing signed by an authorized representative of the sender(may be other than the
representatives referred to in Section 10)and delivered by facsimile,with a hard copy mailed
first class, postage prepaid; or when sent by a courier or an express service guaranteeing
overnight delivery to the receiving party, addressed to the respective parties as follows:
To City: To RRCD:
Kimberly A Niemer Dawn S. Smith
777 Cypress Avenue 715 Parkview Avenue #1
Redding, CA 96001 Redding, CA 96001
B. Either party may change its address for the purposes of this paragraph by giving written
notice of such change to the other party in the manner provided in this Section.
C. Notice shall be deemed effective upon: 1) personal service; 2) two calendar days after
mailing or transmission by facsimile, whichever is earlier.
SECTION 12. AUTHORITY TO CONTRACT
A. Each of the undersigned signatories hereby represents and warrants that they are authorized
to execute this Contract on behalf of the respective parties to this Contract; that they have
fu11 right, power and lawful authority to undertake all obligations as provided in this
Contract; and that the execution, performance and delivery of this Contract by said
signatories has been fully autharized by all requisite actions on the part of the respective
parties to this Contract.
B. When the Mayor is signatory to this Contract, the City Manager and/or the Department
Director having direct responsibility for managing the services provided herein shall have
authority to execute any amendment to this Contract which does not increase the amount of
compensation allowable to RRCD or otherwise substantially change the scope of the services
provided herein.
SECTION 13. DATE 4F CONTRACT
The date of this Contract shall be the date it is signed by City.
IN WITNESS WHER.EOF, City and RRCD have executed this Contract on the days and year set forth
below:
CITY OF REDDING,
� A Municipal Corporation �
Dated: ,2021
By:
ATTEST: APPROVED AS TO FORM:
BARRY E. DeWALT
City Attorney
PAM MIZE, City Clerk By:
RESOURCES FOR RURAL
COMMUNITY DEVELOPMENT
Dated: , 2021
By:
Tax ID No.:
Exhibit A
l. On a daily basis, fill out the Park Host Daily Log in the form provided herein as Exhibit A1. Park Host may
email the Dai1y Log to ���ksirzfc�,r'�z,�i�yc�fr�c�d�z��.c�r�or fax to (530) 224-6104.
2. Attend a Crime Prevention and Reporting Training by the Redding Police Department within 90 days of moving
into premises.
3. Observe and report suspicious or unusual activities occurring on the premises to the Redding Police Department
as the circumstances warrant. Park Host shall report any vandalism and/or any other unsightly, unusual or
unsanitary litter conditions to the City of Redding Parks Division in a timely manner. Park Host shall alsa report
any emergency situation with regard to park facilities (i.e., broken sprinklers} to the City of Redding Parks
Division. Park Host is not required to remain on a stand-by status in order to perform the functions set forth in
this subdivision. CITY's intention is to have said duties performed only when they happen to be observed by
Park Host.
4. Open restrooms and all park gates by 6:00 a.m. daily and close restrooms and park gates one hour after dusk
daily. Prior to closing gates, Park Host shall check to see that no people/vehicles are still on the Premises, and
if so, politely warn said persons fifteen (15) minutes before closing that you wi11 close the gates in fifteen {15)
minutes, or as instructed by City personnel.
5. Dai1y open and close the following: 1) the walk-through chain link gate at the north end of the premises; 2)the
roller hockey rink gates; 3) the pickle ball court gate; 4) the upper and lower restrooms; and 5) the north and
south main entry gates.
6. Patrol the premises regularly.
7. Post park reservations for the premises in the Enterprise Park Pavilion. Park reservations will be faxed to the
Park Host in a timely manner by the City of Redding Recreation Division. Park Host shall immediately report
any dispute etc. regarding reservations to the City of Redding Parks Division of which he/she becomes aware.
8. Respond to inquiries on an as needed basis. Park Host is not expected to remain in a stand-by status or otherwise
remain on site in order to perform this service. CITY's sole expectation is that inquiries shall be answered while
Park Host is actively performing the duties set forth in Sections 4 - 7.
9. Wear an identification vest while performing these assigned duties listed in this exhibit and present in a neat and
professional manner.
10. Comply with all local, state and federal laws, rules and regulations.
11. Except for emergency situations, provide a three (3)-day written notice to City to schedule periods of time away
from the premises.
12. Procure and maintain, for the duration of this Agreement, insurance against claims to injuries to persons or
damages to property which may arise from or in connection with the use of owned,non-owned and hired vehicles.
The policy of insurance shall be endorsed to name the City of Redding as an additional insured. Copies of all
insurance certificates and endorsements shall be forwarded to the City of Redding Risk Management Division.
13. Charge the batteries and maintain water levels on the GEM vehicle. City maintenance crews may use the GEM
vehicle as needed.
14. Park Host shall not engage in confrontational situations and shall report any confrontational situation to the City
of Redding Parks Office or the City of Redding Police Department, if necessary.
15. Represent the CITY in a positive manner and not accept any monies, donations, or fees for park use or
reservations. Any person requesting the scheduling of facilities shall be referred to the City of Redding
Recreation Division (225-4095).
Exhibit A 1
Park Host Agreement
CITY OF REDDING
PARK HOST DAILY LOG
AREA: ENTERPRISE PARK
Fax to (530} 224-6104 or Email: parksinfo@cityofredding.org.
DATE COMMENTS Number of Hours Worked
Mondav
Tuesdav
Wednesdav
Thursdav
Friday
Saturday
Sunday
I, , declare under penalty of perjury that this Daily Log report of hours worked is
an
accurate report of hours worked under the agreement and that this Daily Log neither overestimates or
underestimates
the time spent performing duties under the agreement.
Signature of Park Host:
Date:
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Exhibit 8.5
Enterprise Park Host
Project
WILDFtRE RESTORATI{�N HOUSE
Concrete Printed House, P-01 - 3 bedrm 2 bath
CONCEPT DESIGN PACKAGE
August 27,2020
Client&Contractor Team-
EMERGENT 3D
1575 Fig Avenue
Redding,CA 96001
tel:602-329-5459
DON AJAMIAN CONSTRUCTION
Contractor's License#:721195
1870 Twin View Blvd.
� Redding,CA. 96003
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5441 Fair Oaks Bivd,Teal Park,Ste G2
Carmichael,CA 95608
www.response-e n g.com
tel:916-680-9922
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WILDFIRE RESTORATION HOUSE __�_ _ ^_INTERIOR VIEWS
Emergent 3D/Don Ajamian Construction/Benjamin Albertson Architect/Response Structural Englneers 08/27/2020
i Floor to ceiling giass
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____- —-----..--
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WILDFIRE RESTORATION HOUSE FRONT AXONOMETRIC
Emergent 3D/Don Ajamian Construction!Benjamin Albertson Architect/Response Structurai Engineers �� �� ��08/27/2020
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__._._._.
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WILDFIRE RESTORATION HOUSE REAR AXONOMETRIC
Emergent 3D/Don Ajamian Construction/Benjamin Albertson Architect/Response Structurai Engineers � 08/27/2020
CLASS A FIRE RETARDANT COMPOSITE
SHINGLE ROOF W/FIRE RETARDANT
SOFRTS AND GABLE END PANELS
STANDARD STICK TRUSSES W/
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WILDFIRE RESTORATION HOUSE �' BUI�DING COMPONENTS
Emergent 3D/Don Ajamian Construction(Benjamin Aibertson Architect!Response Structural Engineers 08/27(2020
56'-0"
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(See Next Page)
WI�DFIRE RESTORATION HOUSE FLOOR PLAN-3l96"=1'-0"
Emergent 3D/Don Ajamian Construction/Benjamin Aibertson Architect/Response Structueal Engineers 0$/27 i 2020
CUSS A FI�Rq.ASS�SPHAIT
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WILDFIRE RESTORATION HOUSE E�EVATIONS&SECTION-3/16"=1'-0"
Emergent 3D/Don Ajamian Construction J Benjamin Aibertson Architect/Response Structural Engineers 08127 i 2020
PRIMARY HOUSE FEATURES: SUSTAINABLE DESIGN FEATURES:
Exterior Features- Passive Design Concepts-
-Large covered entry porch and covered back yard porch. -Large south facing roof for future photovoltaic solar panel roofing.
-Or anic sha ed walls at the middle of the house to articulate the ent -Floor to ceiling windows in living area for maximum natural daylighting.
g p ry points and provide
visuai interest and distinction for the home. -Large simple shaped roofs to allow for the most amount of rain water collection and storage.
-Floor to ceiling glazing in open living area for maximum natural daylight and views. Passive Heating Design Concepts-
-Larger windows facing the rear of the house to maintain privacy,while providing views -Orienting the house to take advantage of passive heating.
and daylight.
-Thermally insulated concrete walis that perform 30%better than a typical wood stud waii.
-Modern window system with the latest thermal performance and operable capabilities.
-Naturally insuiated slab on grade.
-2 full size siiding doors facing the rear to provide connection between inside and outside.
Passive Cooling Design Concepts-
-Garage or carport can be added on to located adjacent to east side of house.
-�arge roof overhangs to provide natural shading for windows during the hot summer months.
Interior Features- -Window openings on opposite and!or adjacent walis to promote natural cross ventilation.
-Open floor plan with interconnected living room,dining room,kitchen,and entrance foyer. -Deep inset windows to protect the interior rooms from solar heat gain in the summer.
-Full kitchen w/complete appliance package,including refrigerator,cooktop,convection
oven,exhaust hood,built in microwave,dishwasher,garbage disposal.
FIRE RESISTANT DESIGN FEATURES:
-Separated master suite from bedrooms for maximum privacy.
-Designed to meet or exceed Wildland Urban Interface(WUI)standards for High Fire Hazard zones
-Stackable washer dryer system conveniently located in the master waik in closet. throughout California.
-Generous closet and storage space in bedrooms and Iiving room. -Non Combustible concrete walls that can withstand the heat of forest fires for Ionger than typical wood
stud construction.
-Central HVAC system for complete comfort in summer and winter.
-Non-combustible composite shingie roofing.
-Recessed built in lighting throughout open living rooms,master suite,bedrooms,and
bathrooms. -Doubie pane windows that wiii better protect the interiors from the intrusion of hot embers.
-Attic space access,which can be used for further storage. -Non-combustible screens an roof vents and chimney openings to prevent intrusion of hot embers.
-5impie roof shape to minimize catching debris that can act as kindling for a forest fire.
-Ciosed roof eaves to protect the roof structure from fire.
WILDFIRE RESTORATION HOUSE HOUSE FEATURES
Emergent 3D/Don Ajamian Construction/Benjamin Albertson Architect/Response Structural Engineers 08 t 27!2020
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WILDFIRE RESTORATION HOUSE 3D CONCRETE PRINTING TECHNOLOGY
Emergent 3D 1 Don Ajamian Construction/Benjamin Albertson Architect/Response Structural Engineers 08/27 t 2020
Exhibit 9
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.,�e�.,;a<,� *.k"," �': ���,���,��s{ ���,.�,��,��.,fr ,�,'�e.'�;�<> �... �„? � ��.,�wt����������' �� iF������ �� ,,;,:'^x�
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LAND ACQUISITION $0 $0
PREDEVELOPMENT $0 $0
PERMITS, FEES, etc. $31,000 $31 ,000
CONSTRUCTION $306,196 $306,196
TOTAL � '
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N:\3 - HCD WORKING FILES\Muiti Family Rehab and New Construction\Emergent 3D\Development
Agreements\Enterprise ParkiExhibit 9 Project Budget.xis
EXHIBIT 10
SCHEDULE OF PERFORMANCE
Action Time Frame
Owner/Operator submits GL Insurance policy to City Risk Prior to execution of DFA
Mana ement De artment
City Council considers Project financing terms and conditions; September 7,2021
and directs staff to farward DFA to City Manager for approval
Owner/Operator r executes DFA and all security documents Following CA approval
Cit executes DFA and related documents Within 5 Da s followin Owner/O erator execution
Owner/O erator o ens Escrow Account,if necessar Within 10 Da s of Ci executin DFA
DFA and security documents are delivered to Escrow Agent,if Within 10 Days following Effective Date of DFA
necessary
Escrow Agent to notify City and OwnerJOperator of Escrow Within 10 Days prior to the Close of Escrow
Closing Costs
Close of Escrow.Escrow Agency records Dedaration of Rent Within 45 days of the opening of Escrow
Restrictions and Deed
Escrow Agent to issue and deliver Title Insurance to the City,if Close of Escrow
necessary
Final Plans submitted for review by City and Project Manager Within 30 days of recording security documents
Construction commences Within 6 months after Project Final Plans are
approved by City and Project Manager
Progress Reports At least every 90 days during construction
Construction completed Within 6 months after construction commences
EXHIBIT 11
CERTIFICATE OF COMPLETION
THIS CERTIFICATE OF COMPLETION(the "Certificate") is made by the CITY OF REDDING, a
municipal corporation and general law city(the"CITY"),in favor of RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT INC. dba ACCESSHOME, (the "OWNER"), as of the date set forth below.
RECITALS
A. The CITY and the O WNER have entered into that certain Development Funding Agreernent(DFA)
dated , concerning the development of certain real property situated in Redding, California,
including Assessor's Parcel Number 068-290-004-000 as more fully described in Exhibit"A",attached here to and
made a part hereof(the Property).
B. The DFA sets forth the obligations of the Owner, to as Developer, under the DFA.
C. The CITY has conclusively determined that the Developer has satisfactorily completed the
obligations of the OWNER relative to development of the Property required by the DFA and now desires to furnish
OWNER or its successors with a Certificate of Completion. This Certificate is in such form as to permit it to be
recorded in the Recorder's Office of Shasta County and is conclusive determination of satisfactory completion of all
of the obligations of the OWNER required by the DFA regarding develapment of the property.
NOW, THEREFORE,the CITY hereby certifies as follows:
1. The obligations of the OWNER regarding Development of the Project as stated in the DFA have
been fully and satisfactorily completed in conformance with the DFA.
2. Nothing contained in this instrument shall modify in any way any other provisions of the DFA.
IN WITNESS WHERE(}F,the CITIT has executed this Certificate on this date , 2021.
CITY OF REDDING
Steve Bade, Deputy City Manager
EXHIBIT A
Legal Description
Pending
EXHIBIT 12
NOTICE OF COMPLETION
RECORDING REQUESTED BY
CITY OF REDDING
WHEN RECORDED, MAIL TO:
CITY OF REDDING—HOUSNING DIVISION
P.O. Box 496071
Redding, CA 96049-6071
Loan No.:
THIS SPACE FOR RECORDER'S USE ONLY
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093 must be filed within 10 days after completion.
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is the owner or authorized agent of the owner of the interest or estate stated below in the
property hereinafter described.
2. The full name of the owner is: RESOURCES FOR RURAL COMMLINITY DEVELOPMENT INC. dba
ACCESSH4ME
3. The full address of the owner is: 715 PARKVIEW AVENUE #1, Redding, CA 96001
4. The nature of the interest or estate of the undersigned is: In Fee
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants
or as tenants in common are: None
6. Work or improvement on the property hereinafter described was construction and was completed on
7. Said work or improvement was undertaken on said property pursuant to a contract dated ,
2021 with General Contractor
8. The street address of the property on which said work or improvement was completed is 4000 Victor
Avenue, located in the City of Redding, County of Shasta, State of Califomia. AP# 068-290-004-000.
Dawn Smith, Executive Director, ACESSHOME.
I, the undersigned, state that I am the declarant of the foregoing Notice of Completion; that I have read said
Notice of Completion and, to the best of my knowledge, I declare under penalty of perjury that the foregoing is
true and correct.
Dated: , Redding, California.
Dawn Smith, Executive Director, ACESSHOME.
EXFIIBIT 13
SECTION 3 CLAUSE
The work to be performed under this contract is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The
purpose of Section 3 is to ensure that employment and otller economic opportunities generated by
H[JD assistance or H[JD-assisted projects covered by Section 3, shali, to the greatest extent
feasible, be directed to low-and very low-income persons, particularly persons who are recipients
of HLTD assistance for housing.
The parties to this contract agree to comply with HLTD's regulations in 24 CFR part 135, which
implement Section 3. As evidenced by their execution of this contract, the parties to this contract
certify that they are under no contractual or other impediment that would prevent them from
complying with the part 135 regulations.
The contractor agrees to send to each labor organization or representative of workers wiYh which
the contractor has a collective bargaining agreement or other understanding, if any, a notice
advising the labor organization ar workers' representative of the contractor's commitments under
this Section 3 Clause, and will post copies of the notice in conspicuous places at the work site
where both employees and applicants for training and employment positions can see the notice.
The notice shall describe the Section 3 preference, shall set forth minimum number and job titles
subject to hire, availability of apprenticeship and training positions, the qualifications for each;
and the name and location of the person(s) taking applications for each of the positions; and the
anticipated date the work shall begin.
The contractor agrees to inciude this Section 3 clause in every subcontract subject to compliance
with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this Section 3 Clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR part 135. The contractor wi11 not
subcontract with any subcontractor where the contractor has notice or knowledge that the
subcontractor has been found in violation of the regulations in 24 CFR part 135.
The contractor will certify that any vacant employment positions, ineluding training positions,
that are filled (1) after the contractor is selected but before the contract is executed, and (2) with
persons other than those to whom the regulations of 24 CFR part 135 require employment
opportunities to be directed, were not filled to circumvent the contractor's obligations under 24
CFR part 135.
Non-compliance with Il[JD's regulations in 24 CFR part 135 may result in sanctions, termination
of this contract for defauit,and debarment or suspension from future HCTD assisted contracts.
N:\3 - HCD WORKING FILES\Single Family Acquisition and New Construction\CRDC 3208 Veda\DFA\Exhibit 13 Section 3
Clause.doc
EXHIBIT 14
FAIR HOUSING POSTER
U.S. Department of Housing and Urban Development
_
_
EQUAL HOUSING
OPPORTUNITY
We Do Business in Accordance With the Federal Fair
Housing Law
(The Fair Housing Amendments Act of 1988)
It is Illegal to Discriminate Against Any Person
Because of Race, �otor, Religion, Sex,
Handicap, Familial Status, or National Origin
■ In the sale or renta{ of housing or ■ In the provision of real estate
residential lots brokerage services
■ In advertising the sale or rental ■ In the appraisal of housing
of housing
■ in the financing of housing ■ Blockbusting is also illegal
Anyone who feels he or she has been U.S. Department of Housing and
discriminated against may file a complaint of Urban Development
housing discrimination: Assistant Secretary for Fair Housing and
1-800-669-9777 (Toll Free} Equal Opportunity
1-800-927-9275 (TDD) Washington, D.C. 20410
Previous editions are obsolete form HUD-928.1A(8-93)
I � �9TY F I
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� 777 Cypress Avenue, Redding, CA 96001
= -.-
PO BOX 496071, Redding, CA 96049-6071
C A� L I F C3 R N } "=q% cit��fr�ci�ir��aorg
PAMELA MIZE,CITY CLERK
SHARLENE TIPTON,ASSISTANT CITY CLERK
530.225.4447
530.225.4463 FAX
June 16, 2022
AccessHome
'71��5 Parkview Avenue, Suite 1
Redding, CA 96001
RE: Development Agreement—C-9068
Dear Sir or Madam,
Enclosed please find the fully executed original of the above referenced Development
Agreement by and between the City of Redding and Resources for Rural Community
Development, Inc. dba AccessHome regarding the Enterprise Park Host Project.
If you have any questions regarding this agreement, or if we can be of assistance, please
contact the Office of the City Clerk at(530) 225-4044.
Sincerelyz
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Amber DalPoggetto
Executive Assistant
Enclosure
cc: Nicole Smith
Ellen Grannis