HomeMy WebLinkAbout _ 9.2(d)--Good News Rescue Mission Day Resource CenterC IT Y OF
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: February 20, 2024
FROM: Steve Bade, Assistant City
ITEM NO. 9.2(d)
Manager
***APPROVED
BY***
n
tee I S, er V12/2024
ry ,pp n,, C -i ars e
shade@cityofredding.org
btippin@cityofredding.org
SUBJECT: 9.2(d) --Consider actions related to the Good News Rescue Mission's Property
Purchase and development of a Day Resource Center.
Recommendation
Approve the following actions relative to the Good News Rescue Mission's acquisition of 3145
Veda Street (Assessor's Parcel Number (APN) 104-620-052-000) and 3150 South Market Street
(APN 104-620-059-000) for the development of a community -served day resource center:
(1) Accept the use of a broker's opinion of value to justify the $875,000 purchase price for
the subject properties;
(2) Authorize the City Manager, or designee, to negotiate and finalize a Development
Funding Agreement that includes but is not limited to:
(a) Providing an Encampment Resolution Funding Program grant in an amount not -to -
exceed $3,000,000 as a secured, forgivable loan with a term that begins with the
issuance of a building permit and ends three years after the opening date of the day
resource center operating in accordance to a City Council approved operations
agreement;
(b) The City Manager establishing escrow specific conditions that include: a 45 -day
escrow term; disbursement of acquisition funding; Phase I environmental site
assessment submittals; a $20,000 contingency fund for applicable escrow extension
accommodations, American Land Title Association endorsements, or other due
diligence costs; and acknowledges a City of Redding approved use permit will be
applied for after the close of escrow;
(c) 18 -month term schedule of performance;
(d) Scope and budget for the day resource center rehabilitation project;
(e) Operations agreement negotiated within 180 days; and
(3) Authorize the Mayor to execute the resulting Development Funding Agreement and the
associated documents; and
(4) Find that the aforementioned actions are exempt from review under the California
Environmental Quality Act (CEQA) Guidelines, pursuant to Section 15061(b)(3) —
Common Sense Exemption. A CEQA review will be completed as part of the use permit
process once the details of the day resource center rehabilitation are defined.
Report to Redding City Council February 15, 2024
Re: 9.2(d) --Good News Rescue Mission Day Resource Center Page 2
Fiscal Impact
In November 2023, City Council (Council) adopted a resolution appropriating Encampment
Resolution Funding Lookback Disbursement (ER Funding) funds in the amount of $8,354,955.
Of this amount, $3 million of ER Funding is budgeted for the acquisition, rehabilitation and
operation of a day resource center. The ER Funding does not require matching funds and there is
no impact to the General Fund.
Alternative Action
Council could provide alternate direction to staff for the escrow process or the Development
Funding Agreement (DFA) terms and conditions.
In regard to the loan underwriting, Good News Rescue Mission (GNRM) obtained a broker's
opinion of value to establish the likely fair market value of 3145 Veda Street and 3150 South
Market Street (Property). A broker's opinion of value does not meet Uniform Standards of
Professional Appraisal Practice appraisal standards and is considered cursory in nature. Council
Policy 1901 establishes the requirement for an appraisal with regard to the disposition of City of
Redding (City) -owned real property. This transaction does not involve City -owned property but
rather involves the City providing ER Funding in the form of a loan for the purchase of real
property on the behalf of a non-profit. Council may choose not to accept a broker's opinion of
value and instead require a formalized appraisal which is estimated to cost approximately
$5,500. Requiring an appraisal may take three months which could delay the escrow closing
date, halt the transaction in its entirety, or cause a possible increase in purchase price.
Background/Analysis
On December 19, 2023, Council directed staff to negotiate a DFA with the GNRM to provide a
zero -percent -interest loan for the purchase and rehabilitation of the Property. The loan is a
forgivable loan with a term that begins upon the issuance of a day resource center building
permit and terminates after three years of operating the center in accordance with the
expectations that will be fully defined in the pending operations agreement. It is anticipated that
the loan term will be for no more than five years.
GNRM is currently in escrow for the purchase of the Property for $875,000. Staff is preparing
the DFA - in order to complete the terms and conditions of the DFA, Council direction is needed
to underwrite the property purchase value; escrow conditions; loan provisions and terms; use of
funds, budget and schedule of performance; performance expectations; termination and clawback
language; and regulatory obligations, if any.
A Phase I Environmental Site Assessment (ESA) was completed for 3145 Veda Street. The
assessment revealed no evidence of recognized environmental conditions in connection with the
subject property. A Phase I ESA for 3150 South Market Street is pending and will be completed
prior to the close of escrow.
Pursuant to Council's direction with these DFA terms/conditions, the City Manager will be able
to negotiate the final terms of the DFA, have the DFA approved by the City Attorney and
executed by the Mayor. A draft DFA is attached for Council's review.
Report to Redding City Council February 15, 2024
Re: 9.2(d) --Good News Rescue Mission Day Resource Center Page 3
Environmental Review
Staff has reviewed the action and determined that execution of the funding agreement is exempt
from environmental review under the California Environmental Quality Act (CEQA), pursuant to
Section 15061(b)(3) — Common Sense Exemption. CEQA applies only to projects which have
the potential for causing a significant effect on the environment. This action will not result in
physical alteration of the environment, and it can be seen with certainty that there is no
possibility the action may have a significant effect on the environment. A separate
environmental review will be completed once the details of the day center rehabilitation project
are known.
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."
• Public Safety — "Work to improve all aspects of public safety to help people feel secure
and safe where they live, work, and play in the City of Redding."
Attachments
Draft Development Funding Agreement with GNRM
DEVELOPMENT FUNDING AGREEMENT
(3145 Veda Street & 3150 South Market Street)
By and Between
CITY OF REDDING
and
THY—GOOD NEWS RESCUE MISSION
DEVELOPMENT FUNDING AGREEMENT
This DEVELOPMENT FUNDING AGREEMENT ("DFA") is made and entered into by and
between the CITY OF REDDING, a municipal corporation and general law city ("City") and THE
GOOD NEWS RESCUE MISSION, a California Nonprofit Public Benefit Corporation
("Developer").
RECITALS
A. The City of Redding (City) is a municipal corporation and general law city.
B. Developer is a nonprofit corporation organized under the laws of the State of
California and qualifying for Federal Tax -Exempt Status under Section 501 (c) (3) of the Internal
Revenue Code and entry into this DFA has been authorized by its Board of Directors.
C. Developer is presently in escrow on the real property located at 3145 Veda St
identified as Assessor's Parcel Number 104-620-052-000 and andacent site located at 3150 South
Market St identified as Assessor's Parcel Number 104-620-059-000, (the "Project Site" or "Site").
The Site is described in Exhibit 1, "Legal Description" and depicted in Exhibit 2, "Site Map," both
attached hereto and incorporated by reference herein. Please note that the title rt!pgq legal lesiptiop
de icts arc el number 104-620-059-000 in two ` onions".
D. Developer is interested in providing wand developing additional homeless services
that supports the homeless population within the City of Redding.
E. Funding is needed for these additional homeless services
F. City applied for and was awarded Encampment Resolution Funds.
G. As specified in the executed Encampment Resolution Fund Standard Agreement, up to
$3,000,000 is budgeted for the acquisition and rehabilitation of a day resource center.
H. City desires to provide Encampment Resolution Funds to Developer for the purpose of
assisting Developer with the homeless services, including acquisition and rehabilitation costs of the
Project Site for the Project.
I. On December 19, 2023, the City Council of the City of Redding (Council) passed a
motion to provide a loan to Developer in an amount not to exceed $3,000,000 to purchase and
rehabilitate the Project Site.
J. City and Developer desire to enter into this Development Funding Agreement (the
"DFA") to provide financing pursuant to this DFA to set forth the mutual obligations of the City and
Developer in connection with the Project.
AGREEMENT
1. DEFINITIONS. The following definitions shall apply for the purposes of this DFA:
1.1 "Broker's Opinion of Value" shall mean the value as established by the broker's
opinion of property value to be completed as part of the purchase process.
1.2 "Certificate of Completion" shall mean the document attached as Exhibit 10.
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1.3 "City Assistance" or "City Loan" shall mean the financial assistance provided to
Developer by the City pursuant to Section 3.1.
1.4 "City Manager" shall mean the City Manager of the City of Redding.
1.5 "Completion Date" shall mean the date stated in the Schedule of Performance for the
completion of the Project.
1.6 "Days" shall mean calendar days unless expressly stated otherwise. If the date or
time period for any action under this DFA 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.
1.7 "Deed of Trust" shall mean the deed of trust recorded against the Site to secure the
City Loan, a representative copy of which is attached hereto as Exhibit 3.
1.8 "Development Funding Agreement" or "DFA" is this agreement which includes this
document and the referenced exhibits and attachments to this DFA, which are all incorporated in this
DFA as if set forth in full in the body of the DFA. A default of any of the referenced exhibits or
attachments shall be deemed a default of this DFA.
1.9 "Developer" is tThe Good News Rescue Mission, a California nonprofit public
benefit corporation. The principle office of the Developer is located at 2842 S. Market Street,
Redding, CA 96001
1.10 "Effective Date" shall mean the date this DFA is signed by the City or its designee
authorized to sign on behalf of the City.
1.11 "Escrow" is the escrow for the execution and recordation of the Security Documents.
1.12 "Escrow Agent" shall mean the title and escrow officer authorized to act within this
transaction.
1.13 "Escrow Closing Costs" shall mean the fees, charges and costs identified in Section
4.3 applicable to the City Security Documents.
1.14 "Homeless services" may include services to individuals and families who are homeless
including stabilization services, mediation, basic services such as meals; herrg , case
management, connection to services, or other eligible activities for homelessness prevention and housing
navigation for persons who have become homeless.
1.15 "Improvements" shall mean the improvements existing or to be constructed and/or
rehabilitated on the Site in accordance with the Project Final Plans and this DFA
1.16 "Predevelopment Costs" shall mean the approved Project predevelopment expenses
that include the following;
a) feasibility studies;
b) planning, design and architectural expenses;
C) legal and financial expenses;
d) required permit and approval expenses;
e) appraisals;
0 consulting expenses;
g) filing fees, legal fees and regulatory fees; and
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h) other expenses as authorized by the City.
1.1.7 "Project" is the purchase and rehabilitation of the Project Site located at 31.45 Veda St
Street, Redding, CA 96001 and 3150 South Market Street, Redding, CA 96001. and its subsequent
use to facilitate homeless services and/or shelter services as further described in this DFA.
1.18 "Project Manager" shall mean the City's designee of a City staff person to review,
approve and process invoiced payment requests associated with predevelopments costs, review the
Project final plans, and serve as the City's liaison to participate with construction draw meetings and
to ensure the Project is completed and operated as proposed.
1.1.9 "Project Site" or "Site" shall mean the real properties located in the City of Redding,
Shasta County, California, at 3145 Veda St identified as Assessor's Parcel. Number 104-620-052-
000 and 3150 South Market St identified as Assessor's Parcel Number 104-620-059-000 more
specifically described in Exhibit 1 and depicted in Exhibit 2.
1.20 "Promissory Note" or "City Promissory Note" shall mean the promissory note to be
executed by Developer which evidences the City Loan, a representative copy of which is attached as
Exhibit 4.
1.21 "Scope of Development" is attached as Exhibit 6
1.22 "Schedule of Performance" is attached as Exhibit 7.
1.23 "Security Documents" shall mean the following documents related to the Project: The
Deed of Trust; and the Declaration of Restrictive Covenant.
2. THE AGREEMENT.
2.1 Purpose of the DFA. The City represents that the completion of the Project is 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 wellbeing; and to improve, preserve, and
increase the supply of options of supportive services for homeless individuals in the City. Except for
the risks and speculation inherent with respect to real estate development projects, Developer
represents and agrees that its development of the Site under the DFA is not intended for speculation
in land holding.
2.2 Scope of Project/Work. It is contemplated by the parties that the Developer will
improve the Project Site by reconfiguring its interiorx— exterior and suz ounding area to provide
homeless clientele with supportive services. The scope of work to be carried out by the Developer
under this DFA is more particularly described in Exhibit 6.
2.3 Term. This DFA shall commence as of the Effective Date and proceed as required by
this DFA and shall continue for 2--5--10 years unless extended or terminated as provided herein.
Following the expiration of the term or extension thereof, or if sooner terminated, this DFA shall
have no force and effect, subject however, to post -termination obligations of the Developer except
for any deed restrictions, covenants running with the land, or other agreements or provisions which
by their terms survive the term of the DFA.
2.4 Exhibits. Exhibits to this DFA are as follows:
a) Exhibit 1 - Legal Description of Site
b) Exhibit 2 - Location Map
C) Exhibit 3 - City Deed of Trust
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d)
Exhibit 4 -
City Promissory Note
e)
Exhibit 5 -
Declaration of Restrictive Covenant
f)
Exhibit 6 -
Scope of Development
g)
Exhibit 7 -
Schedule of Performance
h)
Exhibit 8 -
Notice to Proceed
i)
Exhibit 9 -
Notice of Completion
h)
Exhibit 10 -
Certificate of Completion
2.5 Parties to the DFA. The parties to this DFA are:
a) The "City" shall mean the City of Redding. The City is a municipal
corporation and general law city. City as it is used in this DFA, includes the City
Council of the City of Redding 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.
b) The "Developer" shall mean the Good News Rescue Mission (GNRM), a
California nonprofit public benefit corporation. The principal office of the Developer
is located at 2842 S. Market Street, Redding, CA 96001. The phone number for
voice communication with the Developer is 530-242-5920. Developer as it is used in
this DFA, shall include any permitted nominee, assignee, or successor in interest as
herein provided.
3. PROJECT FINANCING.
3.1 City Loan/Assistance. The City shall provide a loan to Developer in an amount not
to exceed TweThree-million and No/100 Dollars ($23,954- 000,000)
pursuant to this DFA (the "City Loan"). The City Loan is provided to Developer for the purpose of
assisting Developer in the acquisition and rehabilitation of the Project Site to expand supportive
services as indicated above.
3.2 City Loan Terms and Conditions. The City Loan shall be evidenced by a promissory
note (Promissory Note) in favor of City for the full amount of the City Loan. The Promissory Note
shall bear simple interest at zero percent (0%) per annum as defined in the Promissory Note and this
DFA. The Promissory Note shall be secured by a Deed of Trust executed by the Developer and
recorded on the Site ("Deed of Trust").
The Deed of Trust shall be a lien on the Project Site, which shall be in first position.
The Promissory Note shall not be assumable by the successors and assigns of
Developer without the prior written consent of the City.
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 Promissory Note.
The Developer may pay in full, or any part, of the City Loan prior to the due date
without penalty.
If the Developer satisfactorily constructs and operates the Project for five (5) years,
from the date of issuance of a Notice to Proceed by the City, the City Loan shall be forgiven in its
entirety. Determining satisfactory operation will be at the sole discretion of the City but will include,
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but not limited to, a review of operating hours, number of participants served, adherence to the
schedule of performance and adequate reporting.
3.3 Additional Financing Conditions. Subject to the notice and cure rights set forth in
Section 1.3.1, the full amount of the City Assistance, including principal and all accrued interest, shall
become immediately due and payable upon the occurrence of any of the following:
a) Developer's failure to proceed with and complete the Project in accordance
with this DFA; or
b) Developer abandons the Project for (3) months after written notice of such
abandonment or suspension from the City; ore
eff-agreern ,
C) Material breach of the final negotiated operation agreement; or
d)) Other material breach of this DFA.
4. DISBURSEMENT OF CITY ASSISTANCE• ESCROW RECORDATION OF SECURITY
DOCUMENTS.
4.1 Disbursement of Proceeds from City Loan. Proceeds from the City Loan shall be
disbursed as follows:
Upon execution and recordation of all City Security Documents and completion of the
escrow, a portion of the proceeds of the City Loan may be utilized for the acquisition and authorized
title and escrow costs associated with escrow. Atefnii&iT y, the 4eve ope , e� ,, * �
t' Following the disbursement of these funds, any
balance remaining of the City Loan may be utilized by Developer for authorized infrastructure and/or
construction costs associated with the Project that are incurred by Developer which will be disbursed
through the City's Finance Division.
Following the completion of construction, any remaining funds shall be returned to the City
of Redding to reduce the balance of the City Loan. Further instructions will be provided to Escrow
via a letter of instruction from City to Escrow Officer.
5. PREPARATION OF PROJECT PLANS AND RELATED DOCUMENTS.
5.1 Project Manager. Subject to the terms of this Agreement, the 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, and landscape plans associated with the Project as well as
any changes therein.
5.2 Preparation of Project Final Plans. In accordance with the time line set forth in the
Schedule of Performance, the Developer shall prepare the Final Plans. The Final Plans shall include
all construction plans, drawings, specifications and other documents required to obtain the required
building permits for the construction of the Project. The Final Plans shall conform in all material
aspects with the Scope of Development, unless otherwise approved by the Project Manager.
The Project Manager and the Developer shall hold regular progress meetings as
necessary to coordinate the preparation, submission and review of the Final Plans. The Project
Manager and the Developer shall communicate and consult informally to ensure that the formal
submittal of all or any part of the Final Plans to the City can receive prompt consideration.
5.3 Review of Project Final Plans. Developer shall provide the Project Manager with a
complete set of Final Plans for the Project prior to or concurrently with the initial submittal of the
0
Plans to the City's Building Division. The Final Plans shall be accepted by the Project Manager, if a)
the Plans conform in all material respects to the Scope of Development and this Agreement, and b)
no Substantial Changes, as hereinafter defined, have been made.
5.4 Review of Substantial. Changes to Project Final. Plans.
5.4.1 City Review. Notwithstanding the foregoing, any Substantial Change in the
Final Plans is subject to City review. If the Developer desires to make a Substantial Change in the
Final. Plans, the Developer shall submit such proposed change, in writing, to the Project Manager for
review.
5.4.2 Substantial Change. A Substantial Change in the Final Plans shall mean any
of the following changes, with respect to the Project:
(a)6
.,b)—Changes in size or design resulting in an increase or decrease of
greater than ten percent (10%) of square footage o-f---a---u�or an
increase or decrease in the number of msroorns.
(c) Changes in use
Urri-tsfor anv section of the buildin s or grounds.
(d) Changes in use of exterior finishing or landscape materials
substantially affecting architectural appearance or functional use and
operation of the Project.
(e) Material changes in size or placement of public service facilities; or
material changes in general pedestrian or vehicular circulation in,
around or through the Public areas of the Project.
(f) Any changes required by or requiring approval of the City of
Redding, the County of Shasta, or any state or federal board, body, or
commission.
(g) Any change which would preclude or materially reduce the ability to
use the Project as set forth in the Final Plans and this Agreement.
5.5 Purpose of Review. Project Manager's review of Final Plans and any Substantial
Changes is not an assurance of the adequacy or correctness of the Plans. Project Manager has
reserved review rights to: a) assure that the Final Plans conform to the Scope of Development and the
requirements of this Agreement; and b) assure that City funds which may be obligated under this
Agreement are used as intended by the City.
5.5.1 Misrepresentation. If Project Manager's approval of the Final Plans or the
changes to the Final Plans delivered to the City is based upon a willful and material
misrepresentation of Developer made in conjunction with the Final Plans or changes to the Final
Plans, nothing in this Section shall be construed to preclude or limit the rights or claims of the City
with regard to such misrepresentations, including any rights the City may have to rescind such
approval.
6. DEVELOPMENT OF THE PROJECT.
6.1 Project Budget. At the times called for in the Schedule of Performance, the
Developer shall provide a complete final Project Budget in a form and with specificity reasonably
satisfactory to the Project Manager, including all "hard" and "soft" costs for the Project and
reflecting, as possible, executed contracts. The final Project Budget will include a final construction
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bid from the Project's Contractor. All Project costs that are not part of the Contractor's construction
bid shall be listed separately as line items in the final Project Budget. Such final Project Budget shall
be substantially in conformance with the Preliminary Project Budget. Reductions in total Project cost
that occur as a result of competitive bid solicitation by the Contractor, are encouraged and shall be
considered substantially in conformance with the Preliminary Project Budget.
6.2 Disbursement of Remaining Proceeds of City Loan. The parties agree that upon
recording of the City Loan Deed of Trust as described in Section 4. 1, the remaining proceeds of the
City Loan not previously expended will be controlled by the City's Finance Department. Each and
any disbursement of funds from such account shall require a written authorization signed by the
Developer, and the City's Project Manager authorizing the release of the requested disbursement.
The Project Manager shall provide such written approval within ten (10) business days of receipt of a
complete disbursement request from Developer.
6.2.1 Disbursement during Construction. Prior to any disbursement for
construction, the Project Manager, Developer and Contractor shall develop a mutually agreeable
disbursement format. This format shall include certifications from the Project Manager, Developer
and Contractor that all materials and construction included in the request for disbursement are
consistent with approved final Project Specifications and supplemental specifications and that all
materials have been delivered to either the Project Site or installed and inspected as required. All
disbursements shall be based on a percentage of completion and all disbursements shall reflect ten
percent (10%) retention not including the costs of stored materials. (Retention shall be released
following the recording of the Notice of Completion and completion of the 30 -Day mechanics lien
period.)
The proceeds of 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
Project Manager. Disbursements shall not exceed aggregate amounts set forth in the accepted and
approved construction contract(s) for the Project. Developer and City acknowledge that it shall be
the sole responsibility of the Developer to obtain the required written authorization for any request
for disbursement.
6.3 Procurement. The Developer shall coordinate the solicitation of bids with the
General Contractor based upon the Final Plans. Developer and General Contractor shall endeavor to
obtain a minimum of three bids per subcontractor and, to the greatest extent possible, utilize local
suppliers and subcontractors from within Shasta County. The General Contractor will comply with
the applicable procurement requirements in 24 CFR Part 85. The Project Manager will coordinate
with the Developer and provide the required documents to complete the bid procurement process.
The Project Manager will complete a cost analysis and ensure that the bids are cost reasonable and
conform to the proposed budget. The Project Manager's cost analysis includes initial subcontract
bids, contract modifications and change orders.
The final construction bid from the Contractor must have all non -construction categories,
including, but not limited to, general conditions; profit and overhead; and permits, clearly identified
as separate line items.
6.4 Construction. Developer shall construct the Project according to the requirements
established in this Agreement, including but not limited to the Scope of Development, Schedule of
Performance and the Final Plans. In the event that the cost of construction of the Project, or any part
of the Project exceeds the costs projected by Developer, Developer shall, nevertheless, bear the
responsibility to complete, at Developer's cost and without right of contribution from City, the
construction of the Project in accordance with this Agreement. The parties agree that such
obligations of Developer shall be covenants running with the land and that they shall, in any event,
and without regard to technical classification or designation, be to the fullest extent permitted by law
0
and equity, binding for the benefit of the City and enforceable by the City against the Developer, its
successors and assigns. These covenants shall terminate upon the City issuing a Certificate of
Completion for the Project.
California State Prevailing Wat?e�uirements shall at ply to the prcrlect. All bids will be
submitted with waw reflectin& &the requirements. -.ffi�.1._onl a lor.,._�and._ nv
subcontractor e ffiec ted,...sh illc_ol1iji v Ayith all laws related, to thererfo��i����nc cid L[bl,CW_or
rata faarl nt> aaat not aaaaitt of tat fa � t�7ttol �r�_t�r�,r �a tta r� _ate t 1��� ::ra�ti�f.tvaartia�_
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tat §>.l 777, o f'thc Ca 1if6rnia Labor Code and the obligati n see #;brfln ill, 'S 1 720 Ofthe C alil'Ornia Labor
t `aaalaa tis lar til tlig- t.`itvcaf � Aldaftfi and,4K Dc]')art wnt _
of"lnttdUShiil Relations a anile& patyroll documentation ,t=hen reClttired,
No t,.°OaaMa 01. Or srrfaawarnlracto r m av 1-rr, listed ia'a Z1 fa �a truer>a� 10a e Pttf7lic Wa7a17
tt_tfrf; qaaiij � i_� �istc rc with t��e,l a t�aataft iat csi_�aia�ust ii;ra; .Relation, )urs ant w Laboa��LLod
h mite �xce ms from this t_ Uit tnen i'(a,r bid.f)titl;t�<,s, r t�i7 taatcfa.:wt...:l._AIbo Code
l,;_L711 lf. ,i No Contractor or pial ayaaaata ar:ttar ;aaat lad AwgDJcd <a contract for a Public 77'aaaµks
pali Inless arty ?£ ia_t: v t a ffic.DcLywrtal ,o4'1ndUS1ria1 Relations a<za,aat_i:lo I.-abor Cod
rL-5J.
6.5 Substantial Changes. Developer covenants and agrees that Developer shall not make
or permit to be made any construction of the Project which incorporates a Substantial Change in the
Project Final Plans, as described in subsection 5.4.2, without City review of such changes as
provided in that section.
6.6 Changes during Construction. Developer shall, prior to their occurrence, notify the
Project Manager of all Substantial Changes (as that term is defined in subsection 5.4.2) in the
construction as well as changes which result in a material net increase in cost or may extend the
period of construction beyond the Completion Date. To the extent feasible, the Developer agrees to
submit all proposed Change Orders to the Project Manager for review and approval prior to
implementation.
6.7 Payment and Performance Bonds. As part of the construction contract for the
Project, Developer shall require the general Contractor to obtain payment and performance bonds in
favor of the City for one hundred percent (100%) of the face amount of the construction contract
price. All bonds shall be issued by a corporate surety authorized by the State of California. All
payment and performance bonds are to be submitted to the Project Manager to complete the City
Attorney approval process. City Attorney approval is a condition precedent to the Developer starting
construction.
In the event that the City Loan Deed of Trust is recorded prior to the closing of
private financing for the development of the Project and Developer intends to utilize City Loan
proceeds to construct the infrastructure improvements that are onsite and a part of the Project, this
Section 6.7 shall be deemed satisfied if Developer, or the general contractor obtain payment and
performance bonds in favor of the City for one hundred (100%) of the face amount of the
construction contract price for such infrastructure improvements.
Notwithstanding anything to the contra contained herein Developer shall not
commence construction on an component of the Project until pay ant and perfonnance bonds
meetin the require ants of the City have been obtained and approved b the City.
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6.8 No Construction over Utility Easements. Developer shall not construct any of the
Project on, over, or within the boundary lines of any easement for public utilities on the Project Site,
unless such construction is provided for in such easement or has been approved by the beneficiary of
the easement.
6.9 Conditions Precedent to Construction. The Developer shall not begin construction
until the following conditions precedent have been satisfied or waived by the City:
6.9.1 The City Loan Deed of Trust has recorded pursuant to the terms of this
Agreement;
6.9.2 The Developer has submitted payment and performance bonds as required by
tea,¢ t -o -the City and the City Attorney has approved the bonds.
6.9.3 The Developer has obtained all consents, approvals, entitlements, and permits
required for construction, including any and all environmental approvals and/or clearances required
by any Project Lender;
6.9.4 The City has reviewed the construction bid documents, construction contract
and final selection of the Contractor for the Project.
6.9.5 The Developer has obtained the proper building permits from the City;
6.9.6 The Developer has requested a notice to proceed from the City, and the City
has notified the Developer in writing that it may proceed with construction; and
6.9.7 The Developer has issued a notice to proceed under the executed construction
contract, if any.
6.9.8 The Developer has cured all existing breaches of this Agreement to the
satisfaction of the City.
6.10 Commencement and Completion of Construction. Developer shall promptly begin
and thereafter diligently pursue to complete the construction of the Project and the development of
the Project Site in accordance with the provisions of this Agreement and at the times specified in the
Schedule of Perfonnance; and complete construction not later than the date set forth in the Schedule
of Performance, unless otherwise approved by the City. Time is of the essence.
6.11 Reports. During the period of construction, the Developer shall submit to the City a
written report of the progress of the work when reasonably requested by the City, but not more often
than once each month. The report shall be in such form and detail as may reasonably be required by
the City and shall include a reasonable number of construction photographs taken since the last report
if pfe u4y-requested by the City.
6.12 Local State and Federal Laws. The Developer shall cavy out the construction of the
Project in conformity with all applicable laws, including all applicable federal and state labor
standards.
613 Anti -Discrimination during Construction. The Developer for itself and its successors
and assigns, agrees that the following provisions shall apply to, and be contained in all contracts and
subcontracts for the construction of the Project. (For purposes of this Section,, 644 -Developer shall
also mean Contractor or Subcontractor.)
6.13.1 Employment. The Developer shall not discriminate against any employee or
1.0
applicant for employment because of race, color, religion, creed, age, disability, sex, sexual
orientation, marital status, ancestry or national origin. The Developer shall ensure that applicants are
employed, and that employees are treated during employment, without regard to their race, color,
religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin.
Such action shall include, but not limited to, the following: 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 Developer agrees to post in
conspicuous places, available to employees and applicants for employment, notices to be provided by
the City setting forth the provisions of this nondiscrimination clause.
6.13.2 Advertising. The Developer will, in all solicitations or advertisements for
employees placed by or on behalf of the Developer, state that all qualified applicants will receive
consideration for employment without regard to race, color, creed, religion, sex, marital status, or
national origin.
6.14 City Access to the Project Site. Developer shall permit City representatives' access,
without charge, to the entire Project Site at any time and for any purpose which City reasonably
considers necessary to carry out its obligations and protect its interests under this 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 Project Site shall
register immediately at Developer's construction office, shall be escorted by Developer's designee
e
and shall wear proper clothing and safety equipment. . `,
6.15 Notification of Contractors, Architects and Engineers. Developer shall notify its
Project Contractors, architects and engineers in writing of the requirements of this Agreement.
Developer shall include, where applicable, the provisions of this Agreement in contracts and
subcontracts for the Project, and Developer shall enforce such provisions.
6.16 Supervision of the Work. Developer shall 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 inspections of construction are made
solely for assuring Developer's performance under this Agreement and protecting City's security
interest in the Project Site.
6.17 Certificate of Completion. After the completion certificate has been issued by the
City's Building Division and the Project Manager has determined that the Developer has completed
the Project in accordance with Developer's obligations under this Agreement, the Project Manager
will coordinate with the Developer to execute and record a Notice of Completion. Following the
Notice of Completion 30 -Day lien period, the City will furnish the Developer with a Certificate of
Completion certifying such completion. Such certification shall be a conclusive determination of
satisfaction and termination of the agreements in the Agreement with respect to the obligations of the
Developer 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 City or any obligation of the Developer to any holder of a
mortgage, or any insurer of a mortgage, securing money loaned to finance all or any part of the
Project.
6.17.1 Refusal to Issue. If the City shall refuse or fail to provide a Certificate of
Completion, the City shall, within five (5) Days after written request by the Developer, provide the
Developer with a written statement, indicating in adequate detail in what respects the Developer has
failed to complete the Project in accordance with the provisions of the Agreement, or is otherwise in
default, and what measure or acts it will be necessary, in the opinion of the City, for the Developer 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 five (5) business day period, Developer may seek a
writ or order compelling City to issue the Certificate.
7. ANNUAL REVIEW. The City shall, at least every twelve (12) months during the term of
this DFA:, review the extent of good faith substantial compliance by Developer with this DFA.
8. COVENANTS REGARDING USE AND OPERATION OF THE PROJECT AND SITE.
The Developer covenants and agrees for itself, its successors, its assigns and every successor -
in -interest to all or any part of the Site that the Developer, such successors and such assignees shall
act as follows:
8.1 Nondiscrimination. Developer, its successors and assigns, shall not discriminate on
the basis of race, color, religion, creed, age, disability, sex (including gender identity and sexual
orientation); , marital status, ancestry or national origin in the sale, lease or rental or in the use or
occupancy of the Site and the Improvements.
8.2 Section 504. Section 504 provides that no qualified individual with a disability shall,
only by reason of his or her disability, be excluded from the participation in, be denied the benefits
of, or be subject to discrimination under any program or activity receiving Federal financial
assistance.
8.3 Payment of Taxes, Assessments, Encumbrances and Liens. The Developer shall pay
prior to delinquency all real estate taxes and assessments assessed and levied on the Site, at all times.
The Developer shall not allow to be placed on the Site any mortgage, trust deed, encumbrance or lien
other than such deeds of trust as the Developer may grant to secure construction or other financing
related to the development of the Site unless expressly authorized by this DFA or the City. The
Developer shall promptly remove or satisfy any levy or attachment made on all or any part of the
Site. Nothing contained in this DFA shall prohibit the Developer from reasonably contesting the
validity or amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to
the Developer in respect to such contest.
8.4 Effect and Duration of Covenants. It is intended and agreed that the agreements and
covenants provided in the Declaration of Restrictive Covenant 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 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 Site against the Developer, its successors and assigns and every successor in interest to all or any
part of the Site, and any party in possession or occupancy of the Site and any subcontracting party or
parties or other transferees under this DFA.
8.5 Effect of Violation. The City is deemed the beneficiary of the terms and provisions
of this DFA, the Declaration of Restrictive Covenant, and the covenants running with the land, both
for its own rights and for the purposes of protecting the interests of the community and other parties,
public or private, in whose benefit this DFA and the covenants running with the land have been
provided. The DFA, the Declaration of Restrictive Covenant, and the covenants shall run in favor of
the City without regard to whether the City has had or does have any interest in the Site.
8.6 Uses. The Developer covenants and agrees for itself, its successors, its assigns and
every successor in interest to the Project, that during construction and through the loan-+epme*t
1.2
pt-�Lenn of the DFA, its successors and assigns, shall devote, use, operate, and maintain the
Project in accordance with this DFA. All uses conducted on the Project Site, including, without
limitation, all activities undertaken by the Developer pursuant to this DFA, shall conform to all
applicable provisions of the City of Redding Municipal Code, and any restriction of record or any of
the recorded documents against the Project Site.
8.7 Public Facility. The Developer affirms the use of the Project Site as a public facility
for the Developer's mission to provide supportive services to homeless individuals and families.
8.8 Management and Maintenance. The Developer shall manage and maintain, or cause
to be managed and maintained, the improvements throughout the term of this DFA. The Developer
shall keep parking lights, lighting fixtures, trash enclosures, and all areas which can be seen from
adjacent streets, free from any accumulation of debris or waste materials by performing regularly
scheduled maintenance.
If at any time the Developer fails to maintain such areas in the manner required
pursuant to this DFA, and said condition is not corrected upon written notice by the City pursuant to
section 14.9 of this DFA, the City may (but shall not be obligated to) perform the necessary
maintenance and the Developer shall pay such costs as are reasonably incurred for such maintenance,
together with the 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 Site which shall be junior and
subordinate to deeds of trust for financing or refinancing of the improvements as allowed pursuant o
this DFA.
9. INDEMNIFICATION.
Developer 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 Developer, but only to the extent such damage or
liability is caused in whole or in part by any act or omission of the Developer, any contractors or
subcontractors of Developer or anyone for whose acts Developer 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 the program in accordance with applicable law. Developer 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 nothing in this provision
is intended to otherwise reduce any insurance coverage on any policy of insurance held by the
Developer 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 this 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 Developer. This Section 4-9 shall survive the termination of
this DFA, irrespective of the reason for its termination, until a date that is ten (10) years following
the date the City furnishes the Developer 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.
Developer shall promptly take steps to protect the public from the risk of injury whether from
1.3
the condition of the Site or Developer's activities in connection with the Site. The Developer 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 DFA of
the Developer, 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:
1.0.1 Developer Insurance Requirements. Developer shall procure and maintain for the
duration of the DFA insurance against claims for injuries to persons or damages to Site which may
arise from or in connection with Developer's activities hereunder. The cost of such insurance shall be
borne by Developer. Developer shall maintain the following noted insurance:
Coverage
Required
Not Required
Commercial General Liability X (lif (-- ontractor does not carry)
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Hazard/All Risks
X (After course of construction)
10.2 Contractor Insurance Requirements. During the Course of construction, Developer
shall insure that the Contractor and Subcontractors maintain the following noted insurances:
Coverage ..........Required ----------------------------------------------- " of
Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder's Risk/Course of Construction :: w
Hazard/All Risks X
10.3 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) 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, its 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.
10.4 Other Insurance Provisions. The general liability policy is to contain, or be endorsed
to contain, the following provisions:
(a) The City, its officers, officials, employees, agents, and volunteers are
to be covered as insured as respects: liability arising out of activities performed by or on behalf of
1.4
Developer; products and completed operations of the Developer; premises owned, occupied, or used
by the Developer. The coverage shall contain no special limitations of the scope of protection
afforded to the City, its officers, officials, employees, agents, or volunteers.
(b) Developer's insurance coverage shall be primary insurance as
respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-
insurance maintained by the City, its officers, officials, employees, agents, or volunteers shall be in
excess of Developer's insurance and shall not contribute with it.
(c) Each insurance policy required by this clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in
limits except after thirty (30) Days prior written notice has been given to the entity.
(d) All insurance policies and renewals thereof shall be in form acceptable to
the City. Developer shall promptly furnish to City copies of all renewal notices and all receipts of
paid premiums. In the event of loss, Developer shall give prompt notice to the insurance carrier and
City. City may make proof of loss if not made promptly by Developer.
10.5 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A. VII.
10.6 Verification of Coverage. Developer shall furnish the Risk Manager of the City of
Redding 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. All endorsements are to be received and approved by the Risk Manager of the City of
Redding as a condition precedent to the obligation of the City to disburse funds to Developer.
10.7 Failure to Maintain. If Developer fails to obtain or maintain, or cause to be obtained
and maintained, any insurance required by this DFA, the City shall have the right to purchase the
insurance and Developer shall reimburse the full costs to City of obtaining such insurance.
11. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER.
11.1 Prohibition Against Transfer of Rights or Obligations. City has entered into this
DFA in reliance upon the identity and qualifications of the Developer. Developer may not assign or
otherwise transfer Developer's rights or obligations under this DFA without the prior written consent
of City.
11.2 Transfer or Assignment of Interests in the Site. Except as required to obtain any other
financing approved by the City, Developer shall not, make any total or partial sale, assignment or
transfer of any interest in the Site without the prior written approval of the City.
12. FINANCING AND LENDER'S RIGHTS.
12.1 Limitation on Encumbrances. Prior to the completion of the Project, Developer shall
not engage in any financing or any other transaction creating any encumbrance or lien on the Site,
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 Site in
accordance with this DFA. Developer shall notify the City in advance of any proposed financing to
be secured by the Site. In any event, Developer shall promptly notify City of any encumbrance or
lien that has been created on or attached to the Site.
12.2 Foreclosure. City shall have the right to bid at any foreclosure sale held by or for any
Lender on the Site.
15
12.3 Eminent Domain. Nothing in this DFA shall limit any exercise of City's power of
eminent domain over the Site.
13. DEFAULTS AND REMEDIES.
The provisions of this Section are in addition to any provisions in the City's Deed of Trust
regarding default and remedies. Subject to any extension of time permitted by this DFA, a failure or
delay by a party to perform any term or provision of this DFA constitutes a default of this DFA.
1.3.1 Cure. Except as otherwise provided in the DFA, if either party shall default in, or
breach, the DFA, 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, including,
but not limited to, proceedings to compel specific performance by the party in default. While neither
party is relieved of any obligation under this DFA to give notice, mere failure to notify the other
party shall not be deemed a waiver of the defaulting party's default.
14. GENERAL PROVISIONS.
14.1 Time for Actions. City and Developer shall each do the actions required of them, on
or before the times specified in this DFA. Unless otherwise provided, City shall give required
approvals or disapprovals w-ithi f uftee ""pfgSnEtly43ays after submission, except matters which
must be decided by the City s Council Board of Adninisirative Review or other --similar entityFd
or 4)iFe,.tef which shall be decided within forty-five (45) Days.
14.2 Counterparts. This DFA may be executed in two (2) counterpart originals, each of
which shall constitute one and the same instrument.
14.3 Priority of Contents of DFA. In the event of a conflict between the terms of this DFA
and the Exhibits, this DFA shall be given precedence.
14.4 Inspection of Books and Records. City has the right, at all reasonable times and upon
reasonable notice, to inspect the books and records of the Developer pertaining to the Project as
necessary to assure compliance with the provisions of this DFA. Developer shall keep such books
and records as City may reasonably require to assure Developer's performance of its obligations
under this DFA for the length of 25 -JO years.
14.5 Fees Commissions Gifts or Interests. Neither party shall be liable for any real estate
commissions, brokerage fees or finder's fees which may arise from this DFA. City and Developer
each represent that neither has engaged any broker, agent or finder, and that neither claims such a
commission or fee, in connection with this DFA. Developer shall pay no fee or commission, make
no gifts and provide no interest in the City Loans to any employee or official of the City.
14.6 Entire Agreement. This DFA, including all of the exhibits and attachments,
integrates all of the terms and conditions related or incidental to its subject matter, and supersedes all
negotiations or previous agreements between the parties with respect to its subject matter.
14.7 Waivers and Amendments. All waivers of the provisions of this DFA must be in
writing and signed by the appropriate authorities of the City or the Developer, and all amendments
hereto must be in writing and signed by the appropriate authorities of the City and the Developer.
However, minor amendments which do not result in a substantial or functional change to the original
intent of the DFA and do not cause an increase to the maximum amount payable under this DFA may
be agreed to in writing between Developer and the As fstant-City Manager or designee.
1.6
14.8 Non -liability of City Officials and Employ. No member, official or employee of
the City shall be personally liable to the Developer, 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 Developer or its
successors, or on any obligations under the terms of this DFA.
1.4.9 Notices and Demands. Any notice, demand or other communication under the DFA
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 City and Developer stated in Sections ' .9 +A-4 .24,
rc:spe.�-e iv'2�5,—� s�r'r`d�a Hca ay ra af-rc Y. ,
1.4.1.0 Jurisdiction, Venue and Attorneys' Fees.
14. 10.1 Jurisdiction and Venue. Any legal action(s) concerning the DFA or the
performance of any party thereunder shall be brought only in the court of appropriate jurisdiction in
the County of Shasta. The Developer and the City agree that jurisdiction and venue shall only be in
said courts.
14.10.2 Attorneys' Fees. In the event any legal action, including arbitration, is
brought by either party to this DFA to enforce this DFA or for breach of this DFA or for a
declaration of the rights and duties under this DFA, the prevailing party shall recover costs and
reasonable attorney's fees in addition to any other relief to which that party may be entitled.
14.10.3 No Party Deemed Drafter. In the event of a dispute between the parties
hereto over the meaning of this DFA, no party shall be deemed to have been the drafter hereof, and
the principle of law that contracts are construed against the drafter does not apply.
Section 14.10.4 Other Approvals Required. This DFA shall not be construed as a grant of any
land use entitlement nor shall it be construed as a waiver of any right held by the City of Redding to
disapprove or condition any approval for the Project pursuant to the Redding Municipal Code and the
laws of the State of California.
Section 14.10.5 Ordinance Not Adopted. In the event that an ordinance is not adopted which
would facilitate the uses contemplated by this DFA, or that the Project is not approved as an appropriate
use of the Project Site or in the event Developer determines that it shall not apply for approval of the
Project, Developer shall, not later than one hundred and twenty (120) calendar days after the Council fails
to adopt the authorizing ordinance, or approve the use of the Project Site, return all funds granted
pursuant to this DFA without payment of interest. In the event that Developer determines it shall not
proceed with the Project after having been granted a land use entitlement, it shall make such
determination and provide written notice of the same to the City no later than thirty (30) calendar days
after a final land use entitlement is granted by the City of Redding. If Developer fails to provide such
notice, the one hundred and twenty (120) calendar day time -frame for repayment to the City shall
commence on the lapse of the thirtieth (30"') day
THE REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
17
IN WITNESS WHEREOF, the City and the Developer have executed this DFA on the respective
dates set forth below:
Date:
Sharlene Tipton, City Clerk
Date:
CITY:
City of Redding
Barry Tippin, City Manager
APPROVED AS TO FORM:
Christian. M. Curtis, City Attorney
DEVELOPER:
Good News Rescue Mission, a California
Nonprofit Benefit Corporation
By: Jonathan Anderson
Title: Executive Director
TaxlD#-94-
1652602—
HE
EXHIBIT 1
Legal Description of Site
escribed as followso
THAT REAL PROPERTY IN SECTIONS 14 AND 15 OF THE P. B. READING GRANT. IN
THE CITY OF R BED AS
FOLLOWS:
PARCEL I;_jARN_L 104-_620-0.52-0001
COMMENCING AT THE NORTHWEST CORNER OF PARCEL C AS SHOWN ON A
SURVEY FILED M EYS AT PAGE 103
SHASTA COUNTY RECORDS- THENCE ALONG THE NORTH LINE OF PARCELS C
AND Q OF SAID S CE OF 151,07 FEET,,
THENCE LEAVING SAID NORTH LINE. SOUTH 20 55'34" EAST A DISTANCE OF 70.60
FEET TO THE POINT OF BEGIN 4" EAST
A DISTANCE OF 79.28 FEET MORE OR LESS TO A POINT ON THE NORTH LINE OF
PARCEL B OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE
103° TI -IE TCE ALCM Ca SHIT) N6�II TII LIFE UTH 880 24'00" EAST A DISTANCE OF
2.42 FEET TO THE NORTHWESTCORNER OF THAT CERTAIN PARCEL DESIGNA,rED
"PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 1990 IN BOOK 2659 OF OFFICIAL
RECORDS AT PAGE
E, .303SLIASTA couNTY RECORDS THENCE ALONG THE WEST
LINE OF SAID "PARCEL 4". SOUTH 20 38'00" EAST A DISTANCE OF 96.59 FEET TO A
P_OrNT_THA_'I'BEARS _NOR_I'H_870 _2100" ELAST,_A IDYISTANCE OF 14.00 FEE TEROM THE
SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF
LAND SURVEYS AT PAGE 103- THENCE SOUTH 87- 22'00" WESI A DISTANCE OF
14.00 FEET TO TETE SOUTHEAST CORNER OF SAID PARCEL A- THENCE ALONG THE
SOUTH LINE OF SAID PARCEL A SOUTH 870 14'54" WEST A DISTANCE OF 130.21
T PER 46-L.S.-1013), MORE OR LESS TO
THE EAST LINE OF VEDA TREE "T° THENCE ALONG SAID EAST LINE NORTH 60 11"
00" WEST LEAVING SAID EAST LINE, SOUTH
880 24° 00" EAST A DISTANCE OF 153.45 FEET MORE OR LESS,FO THE POINT OF,
BEGINNING AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE
ADJUSTMENT PLA -6-06.
PARCEL 2: (APN: 104-620-059-000 PORTION)
BEGINNING AT THE SOUTHEAST CORNER OF PARCEL A AS SHOWN ON A SURVEY
FILED MSURVEYS AT FACE 103, THENCE
SOUTH 60 1 FEAST ALONG THE WESTERLY LINE OF LOT 29 OF BLOCK 2 OF THE
ALTA SUBDIVISION, (BOOK 4; OF MAPS PAGE 53 A DISTANCE OF 164.40 FEET TO
THE SOUTHWEST CORNER OF SAID LOT 29- THENCE NORTH 870 22' WEST ALONG
THE SOUTH LINE OF SAID LOT 29, 50.00 FEET., TO THE SOUT14FAST CORNER
THEREQF° THENCE NORTH 691' WEST ALONG THE LINE COMMON TO LOTS 29
AND 30 OF SAID ALTA SUBDIVISION 67.38 FEET TO THE NORTHWEST CORNER OF
SAID LOT 30- THENCE NORTH 87" 22' EAST ALONG THE NORTH LINE OF SAID LOT
30, A DISTANCE OF 30.23 FEET; THENCE NORTH 2' 38' WEST 187.00 FEET TO A
POINT ON THE NORTH LINE OF PARCEL B AS SHOWN ON 46 LAND SURVEYS AT
PAGE 103; THENCE, NORTH 88- 24' WEST 72.00 FEET MORE OR LESS, TO A POINT
WHICH BEARS NORTH 870 22' EAST 14.00 FEET- THENCE NORTH 20 8' WEST 86.00
FEET FROM THE POINT OF BEGINNING; THENCE, SOUTH 2' 38' EAST 86.00 FEET-
TLIENC E SOUTH $7° 22' WEST 14,00 FEET IO THE POINT OF BEGINNING,
PARCEL 3: (APN: 104-620-059-000 PORTIONJ
BECK TNG AT A POINT ON THE NORTH LINE OF LOT 30 OF BLOCK 2 OF THE ALTA.
SUBDIVISION (BOOK 5 OF MAPS, PAGE 53i DISTANT THEREON NORTH 87c22'EAST
19
30.23 FEET FROM THE NORTHWEST CORNER THEREOF- TITPNC'P,.-NORTH 870 22'
EAST, 64.00 FEET TO THE SOUTHEAST CORNER OF PARCEL B AS SHOWN ON A
SURVEY FILED MARCH 27 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103
EAST LINE OF SAID PARCEL B
, 183.42
FEET TO THE NORTHWEST CORNER OF SAID PARCEL & THENCE NORTH 880 .
WEST ALONG THE NORTH LINE OF SAID PARCEL L3 64.00 FEET* THENCE SOUTH 20
3 'EAST 187.00 FE INNING.
EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED TO THE STATE OF
CALIFORNIA. DEPARTMENT OFTRANSPORTATION IN GRANT DEED RECORDED
JUNE 300 2020 AS INSTRUMENT NO. 2020-0020302 OF OFFICIAL RECORDS.
APN- 104-620-052-000 and 104-620-059-00
ME
EXHIBIT 2
Locati2p MaR
m
WN
EXHIBIT 3
RFC ORDINNEG RF'-QUF$TED BY:
tit A of Redding
cra BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:
City of Reddin Housin Division
Divisi
... X ------- —
P,O. Box 496071
177 C ILe
Z
Reddin_CA 9604-9—&071
CITY OFREDDING DEED OF TRUST AND ASSIGNMENT OF RENTS
THIS DEED OF TRUST is made this day, 2024 GOOD NEWS RESCUE
MISSION. a California Nonmrofit Public Benefit Corporation, as to equitable title herein called
"Trustor" adlor `T3orroer" whose address is 2 South Market Stre
�.et ReddiA
ng, -G 01-
-- — �-_960960,
FIRST AMERWAN TITI,E COMPANY herein called "Trustee" whose address is 1900
Chum Creek Road. Reddil,10,9 CA 96002- and the CITY OF REDDING. a municipal cpM2Eation
and general Saw city„ whose address is 777 Cvl�ress Avenue, ledding fornia 96001. herein
called "Beneficiary" apo/or the "Lender".
WITNESSETH: That Trustor Irrevocably, Grants, Transfers and Assigns, to Trusftle
T st it Po er of Sale that ro ert in the Cit of I2eddin "Cit " Count of Shasta State
of California described- as;
EXHIBIT A - gj Qg
-Leg sc
g, ---
ASSESSOR'S PARCEL NUMBERS- 104-620-052-000 and 104-620-059
TOGETHER all buildil 1 gs 1m rove eats and fixtures now or in. the future
thereon it bein understood and a reed that all classes ofvropg�rt attached or unattached used in
be deemed fixtqres_f�) rents issues aR
—conneetio—nherew—ith -shall d_profits thereo f and (e) all
sums ofrnppgy able on
_paya,��the purchase price of said property secured by a lien thereon or
HOWEVER. to the -ri ht, ower
and authority hereinafter given to and confeired upon Beneficiary to collect and apply such rents
issues„ and profits, and all su sof ones payable on the I�urchase lance 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 1Dm13erfXr which serves as security for the Note and Deed of Trust. one that
the Borrower is expressly entering into for the benefit of the homeless population and shelter
sulasort services 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 riahts accordin I .
FOR THE PURPOSE OF SECURING:
23
/100 Dollars 1$390009000 without
interest thereon according to the terms of a certain Promissory Note of even date herewith
and extensions or renewals thereof,
2. PAy!nqqL-qf--such additional sums with interest thereon as: (a) may be hereafter
borrowed from the I3eneficiar alae then record o nen or owners of said ro ert when
evidenced by another Promissory Note or Notes reciting that then are secured herehL or Lb) as
n1a be added to the indebtedness secured ereb n accordancew�h th�erov�jsions _ofthis�Qeed
of Trust.
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3. Performance of each and every obli.-ation covenant, taro mise or
agreement of
Trustor contained herein.
4. ... PayMent with interest thereon of an other resent or future indebtedness or
tihliation of the T attar dor of any successor in interest of the Trustor to said ro�ert
to the
Beneficiary reciting that tb
-an ---,gy are!� �
e secured hbw�hether created directly or a -g -J-1
assirrrenta whether absolute or cortin_ ant, bather due or not whether otherwise secured or
of the Deed of Trust or arisihgjhereqfter.
5. Performance of each -ag Trustor contained jR n DevelopLe
-�eement of Tt -A-y
_qt
Fundii (including without limitation the Exhibits ffi:CiL!1A,) entered into between
Trustor and Beneficiary for the devel Tg
( jent construction of ------ i:,overncjjjL-qdqptLon of rent
restrictions or other affordability covenants or operation of certain activities on the above-
�LescribedTro A -
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e -
TO PROTECT THE SECURITY OF THIS DEED OFTRUST TRUSTOR AGREES:
I To keep said ro erty in �ood. condition and repair, to allow Beneficiary or its
reviresentatives to enter and ins act the remises at all reasonable tr es and access thereto shall
demolish any building-Lbereow, not to make
alterations thereto without the consent of the Beneficiary, to suffer orTcrnit no char e in the
premisesgeneral nature of the occut�arcy of the without Beneficia,.LyWs written consent, to
coax fete or restoreprQMpgy
� 3t] and in good and workmanlike MAnnar ar b�uildi �-whicb ma e
constructeO., dqn-lqggd., or destroyed there the
when due all claims for labor performed and
materials furnished in connection with such ro, ert and ngLjo -permiLLny mechanic's lien
against such property; to comply with all laws affecting such property or reqWdpgM
alterations or imnrovements to be made thereon- not to initiate or acquiesce in any orin
reclassification without Beneficiary's written consent; not to commit or pennit waste thereon; not
to co rnitw sufferR or per it any act u aint
cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of
said property pray be reasonably necessary- to promtatly ay all a Darts due others upon
agreements of lease or conditional sale of all fixtures, furnishings, and equipment located
thereon.
If the loan secured herebynu
or any part thereof is bei (I obtained or should alladditional
loan be made hereafter fear the a case of financin rehabilitation inn rovements or construction
of affordable housing on said -moverty, Trustor further a reesg an 411itu--, in this Deed of Trust to
the contras accordance with -City approved plans
ands ecifications satisfactory to Benefzciar� to allow Beng�ficia to inspect such property at
all times Burin rehabilitatioxz c to re Iac e an work or materials unsqtjsfactor to Bencfsciar
within fifteen (15) calendar days after written notice from Beneficiary of such fact which notice
npa e ivc;n to Tzustor b re laterad oz- certified npail sent to its last known address or b
tpersonal service of the same; that work all not cease on the construction of such
irn prove ants for an reason whatsoever fora eriod of fifteen Ij 5)_ calendar days whether
consecutive due all
claims for labor and materials fumished in connection with the said construction and/or
rehabilitation and not to tserrnit aa2y clai s cpf lien for said work or npateria] to be filed of record
against the said rorty9 and �fj not to Ise it anystopnotice claims to be presented to
Beneficiary . If the said DrODerty is p --t of g larger tract uron-Hl-iich improvements will be
constructedTz gstor shall make se arate contracts and subcontracts for said construction which
shall. es-tain to tlae said property only and shall keep se arateful1R and conpplete records of all
work and materials furnished to the said davit
si ned y the Beneficiary setting forth facts slpowin� a default by T stor under this para rapl�, is
authorized to accept as true and conclusive all facts and statements therein and to act thereon
hereunder,
1 To provide and maintain in force at all times with resrect to said orr
and other types of insurance as maybe required e
a loss payable endorsement in favor of Beneficiaryg shall contain an endorse ant that such
insurance shall not be canceled or modified without thirty 30das advance written notice to
Beneficiary, shall be for a. term and in fo content a Dunt and ith such com anise as ma
be satisfactory to Beneficiary, and tliepolicies therefor shall be delivered to and remain in
possession of Beneficiary as further s
_s�ec for the faithfulgEforniance of Trustor hereunder,
At least thirty (30) days tarior to the
pojficiqs rqne urance shall be delivered to Benefic1igay-tMether
with written evidence showinpaymc�ntof t�herrsiurn� therefor and, in the event an such
insurance polj�g��ence of the pAyinent— p
- of the remipm therefor are not so delivered �I! — -----
Trustor to Beneficiar T stor b eecutin this Deed of Trust, specificallv requests
Beneficiary -to obtain such insurance and Benefi�ciaithoutLqbjigation to do so without notice
to or demand upon Trustor and without releasin Trustor fronp an cabli anon lsereof rna obtain
such insurance through or from any insurance acg 3table to ittsa the
—
prernium thereof, and may add the amount thereof to the indebtedness secured hereby, which
amount shall bear a like rate of interest. Beneficiary may famish to any insurance a envy or
company, or any other person, any information contained in or extracted from any insurance
pursuanttpolic�theretofore delivered to Beneficiary hereto and any information concerran the
loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or
for the collection of any insurance oniesw or for any insolvency of any insurer or insurance
underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) upon prio
notice to Trustor to settle and -A-lust any claim under the insurance policies Drovided for in this
document without the consent of the Trustor, orb to allow Trustor to agree with the insurance
co daany or comtaanies on the amount to be raid uron the loss. In either caseg the Benefaciar is
authorized to collect and make receipt of any such insurance monev. If Truster is obl'
rq,L-- i� b i aced to
restore or re 71ace the da a ed or destro ed uildin s or i rove ants under the ter qjsofan
lease or leases which are or may be prior to the lien of this Deed of Trust and such darnqgg�gr
destruction does not result in —cancellation or ter nination of such lease sash r�oceeds �qfterr
deduetin therefrom ars expenses incurred in the collection thereof shall be used to reimburse
the Trustor for the cost of reb nts on said
premises. In all other cases, sac h insuranceroeeeds, at the option of the �enef"iciary, shall her
e a lied in reduction of the indebtedness secured here; Mother due or not or in such order
as Beneficiary may determine or be held b-- the Beneficiar and used to reimburse the Trustor
for the cost of rebuildin or restorin the buildin ori rove ants on said rentises. Such
buildings arzd i prove eats shall be so restored r rebuilt as to be of at tegastequal value and
substantia truction and shall be in a condition
satisfactorK!Q Beneficiary, Such lication or release shall not cure or waive default or
jqry Such a lication or release shall not cure any
notice of default hereunder or invalidate d all
unexpired insurance shall. inure to the benefit of and pass to the purchaser of the roperty
conve ed at �qnTrustee sale held hereunder.
3. To {al at least tern 09) -days before deli: uerccy, all general ands ecial pity
and County taxes affecting such property when due all special assessments for public
t bond to issue for an'ys eeial assessment° c
when due all encumbrances. charees and liens with interest on said property, or any art
thereof.- which are oLapeg, ears be�ri eed of
Trust is a leasehold estate to make a---- anent or do any act rewired of the Lessee or its
successor in interest under the terms of the instrument or instruments creatjiio, said leaseholdOe
all costs fees and expenses of this statement re mrdi g the obl' anon secured
hereby an a Dunt de added Beneficiary not to exceed the maximum allpmLgri q_k1qwtkereof
at the time when such request is made, (2) such other char es for services rendered _by
Bene ciary and fumished at Trustor's re
-qLiest or that of any _successor in interest to Trustor as the
BeneficiaryjRU deem reasonable,
If by the laws of the United States of Arrlerica or of any state Navin risdiction over
the TrustoL-Any e e
tax is due or becomes due in respect to �thissuance of the Not hereby secured
the Truster covenants and agrees to pay such tax in the manner required by such law. Should
Trustor fail to make any such pqym�gntBpnefic' nay elect to make such
amount so paid max be added by Beneficiary to the indebtedness secured here bv and shall bear a
like rate of interest.
4, That should Truster fail to make aRiy_p4went or do any act as tarovided in this
Deed of Trust, then Beneficiary or Trustee, but without obligation to do so and without notice to
or demand Won Ti star and without releasin (T Trustor from any obligation hereof rna e
or do the same in such manner and to such extent as either may deem necessary to-prgtect the
security hereof Benefieiary or T etas beim authorized to enter upon said prori,"Iert for such
pug?oses; (b) commence, appear in, or defend any action or proceeding purporting to affect the
security hereof or the raroperty covered y this Deed of Trustg or the r-ohts or rowers of
Beneficiary or Trustee; (c) pay, purchase, contest, or coLnpronuse any encumbrance, char ge_or
lien, which in teed ant of either is or appears to 17e or or superior hereto. anddLin
L —
exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable
fees. Trustor affees to repay any amount so expended on d d of and an
__q�eman �� _____y
amount soft expended rn4y be added by beneficiary LLq-the indebtedness secured herebyand shall
bear a like rate of interest.
5.
��ree ent�inc;ludin without lil�nitation the Exhibits thereto entered. into between T�a�stor and.
Beneficiar for the dcvelo anent construction of i rove nems ado tion of rent restrictions or
other affordability covenants or operation of certain activities on the above-described proerty
6. To appear in and defend any action or proceeding 9L porti o, to affect the security
hereof or the ro girt which is covered b than Deed of Trust or the ri hts or rovers of
Beneficiary or Trustee, and whether or not Trustor so aDoears or defends to pay all costs and
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ex eases includin cost of evidence of title and attorne s' fec;s in a reasonable su in an such.
action o7- roceedin in which Benef"�ciary or Trustee a a pear b virtue of beim ads a party
defendant or otherwise irre rV
-��ve of whether the interest of Beneficia or Trustee in such
property is directlyquestioned by such. action, including any action for the sonde nation or
this Deed of Trust.
7m ed under the terms of
this Deed of Test y Fenec iaryor`Frustee with interest from the date of expenditure at the
rate whick the I obligation secured herehy bears at the time such paynezt is made azad
there �yment of such sums shall be seca�red her�b�
_Iqe pjiqg��
&TIZat, should the T stor or anv successor in interest to Trustor in such ro ert
drill or extract or enter into a lease for drillipS or extraction of oil as, or other -hydrocarbon
substance:, or any mineral of 1 i y kind or character, or sell convey, further encumber, or alienate
said pro pertL or ani art thereof or an therein or be divested of his title or any interest
therein in any manner or way, whether voluntarily or involuqDnlqril,BB,enefi�ciarv shall have the
dght., at its s or obligations secured herby irrespective of tl�e
maturity date specified in anv Note evidencing the same, immediately due and payable, and no
waiver of this right shall be effective unless -ip-Hricin,
9. That any award, s 111a es to suchpr ert or
ettlemernor dam ges for dain
— 9L�!4!Me� — -g—
in connection with the transaction financed by such loans and anv award of damages in
connection with any Lsonde mnation for )ublic use of or injury to said prol�er��z or ani art
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 royided for the
disposition of proceeds of fire or other insurance.
M That, bv accepting Day
IDent of any sum secured hereby after its due date pl_by
�nakin payment, or pex forming any set on behalf of Trustor, that Trustor was obl . ate
hereunder, but failed, to make, or perfonn, or by adding any payment so made by Beneficiary to
the indebtedness secured hereby, Beneficiary does not waive its richt either to require pro pt
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 Beneficiary or
Trustee tbereof, 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 ani person for pay eat of tl�e indebtedness secured herebv or the lien of the Deed of
Trust upon the remainder of said profaerty for he full amount of the indebtedness then or
thereafter secured hereby, or the riahts or ars of Leneficiar or the Trustee with res ect to
the remainder of said pro Dell , Trustee rna a a reconv i y any Dart of said
to the algin of an a or lot thereof c oin in rantin an easement thereom d min in
any agree ant subordinatinte hien or chane of.
12. That the lien hereof shall remain in fall force and effect durinig, any t)0s+pnn,-1-n,-nf
or extension of time of a hent of the indebtedness secured hereb or an art thereof.
13° That a on ritten re oast ofl3eneflciar statin that all su s secured hgrgb
�hqve
been aidz and ut?on surrender of this Heed of Trust and said Note or Notes to Trustee for
cancellation and rete hall reconvgL_Eithout
warrantyR floe roperty then held hereunder, The recitals in such reconveyance of ani mnttp S of
fact shall be conclusive evidence of the truthfulness thereof. ThLg-Zantee in such reconveyance
ay be described as '°the person or persons le ally led thereto," Such request and
of the rents alties and refits
hereinafter assigned to Beneficia: ears after issuance of such -full reconvevance.
Trustee naW destroy saidMess directed in such r Note and this Deed of
ftern
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14, That as additional security. Truster irrevocably assians to Beneficiary the rents
issues, and profits of the
terms and conditions set forth below, This assiani-nent shall not unt)ose upon Beneticiary any
duty to taroduce rents frozxa the ro :art affected this Deed of Trust or cause Beneficlary to be
jai "`mort�a ee in possession's for any purraose�b responsible for raerforrnin any of the
o>liicns oaf the lessor under ora lease° or c res onsible for araste i1jed�blessees
or an other -oarties, for any dangerous or defective condition of the oronerty affected bv this
Deed of Trust a repair, or control of such
oro -perty, This is an absolute qssignqnje�ntnotan ass
��ent for sec uritv onIyand _Beneficiary,s
r lot to rentsz issues and prof"its is not continent uraon, and e exercised without ssession
of, the r)roi)ertv affected bv this Deed of Trust.
Be t and retain the
issues and fits of the pro art affected y thea Lied of T st as they become due and
oavable, until the occurrence of a default hereunder. Upon such default
the License shall be
autornaticqlly revoked and 13eneficiar ay collect and retain the rents, issues4 and profits
without notice and without taking possession of the -property affected by this Deed of Trust. This
right to collect -renis, issues and rofits shallranto�a—nt to-B--en-e-fi-ciar or Trustee the-Klit to
possession, except as otherwise provided herein; and neither said right, nor termination of the
License, shall imose�oop_ or
maintain all or any part of the property affected by this Deed of Trust. If Trustor shall default as
ceaseaforesaid, T stor's right to collect any such oney shall and Beneficiar shall ave the
right, with or without taking possession of the property affected hereby, to collect all rents,
issues, royalties» and profits and shall e authorized, and maw without notice and irrespective o
whether declaration of default has been delivered to Trustee and without regard to the adequacy
of the security for the indebtedness secured her. either nersonall or by attorney or a ant
without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into
rnodif leases obtain and a'act tenants and set and rnodif ants and terms_of rents and to sue
and to tape, receive and collect all or anart of the said rents issues an profits ofthe property
yp
affected harab and aftarr a in such costs of rnaintanance o eration of said ro. ert and of
collection includingr reasonable n i
qttorrrg�fee�sasin its �
-dee �es r
the balance rents issues ro alties and rofits of
said property beim hara assinad to lar3aficiary for said taurposas, The acceptance of such
rents issues ro aloes and rofits shall Wert constitute a waivej of any other right which Tnistee
or Beneficia enjoy under this Deed of Trust or under the laws of California, Failure of or
discontinuance
royalties„ or profits shall not in ani naannar affect the subsequent enforcement by Beneficia--,
the rri ht o ar and authorit to collect the same. The
Beneficiary of all such rentsafter execution and
deliver of declaration of default and da and r sale as hereinafter rovided or Burin the
pendency of Tr ustaa's sale rocaadins haraundarg shall not cure such breach or default nor affect
said sale roceedn s or an sale made ursuant thereto but such rents issues ro aloes and
profits, less all c oats of operation, rnairrtanarrcaw c ollaationg and reasonable attomevs' fees when
received by Beneficiary, hall be� a plied in reduction of the indebtedness secured her:eb fronj
time to ti eg in such order as Beneficia the
exercise of the ht b Bepefici rigffirniation
-- ---y--- --qby
Beneficiary of any t liability under nor a
subordination of the lien or char of this Deed of"Trust jqan such tenancy lease oro -tion.
15. That if the security of this Deed of Trust is a leasehold estate the Trustor a rasa
that; (a the term "Lease" as used haraitr shall rnaan the lease creating the "leasehold estate".
Trustor shall not amend,, clange or mod e or agree to do so
without the written consent of the Beneficiary, -') Trustor will promptly advise Beneficiary
b him from the lessor under the Lease and
such notice, request or demand, (d) as long as
an of the indebtedness secured hereby shall rarnain un�aid9 unless the �aneicrar� shall
otherwise consent thereto in writirn4, the leasehold estate shall not mere with the fee title but
shall always be kppt separate and distinctg notwithstanding the union of said estates in an party,
(e) Truster quees that jiLtw�jr�otjy, strictly, and fqithfujj�wrfbr�mfulf�illand �com�Iwiffih
all covenants e affect
covenants, -�-�i�nthq
premises and to neither do a-nYtbjpgnor jg _ i
L _Tterrnnythung to be done which may cause
modification or tennination of any such lease or of the obligations of any lessee or ersQn
clainlin throe h such lease or the rents zovided for therein or the interest of the lessor or the
Beneficiary therein or thereunder. Trustor further areas lie will not execute a Deed of Trust or
mortaaae which may be or become swerior to any leasehold estate that is security for this Deed
of Trust. In the event of a violation opf-qny of the covenants set forth in this para
Beneficiary shall have the riaht, at its option, to declare all sums secured hereb 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
to "said DrMerty" as used in this Deed of Trust shall be deemed to can the leasehold estate
whenever the context so requires for the protection of the Beneficiary.
1 6. That any default by Trustor in payment of any indebtedness secured hereby or
taarforranca of any covenant or condition set forth in a Devel
,g�lo ment Fundin Area2rrant
between Trustor and Beneficiary shall constitute a default under this Deed of Trust, and upon
default Trustor under the ter sof any encu trance, char c or lien which is or anDears to be
prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and
on of default and demand for sale of written
notice of default and of election to cause to be sold said mo3erty, which notice Trustee shall
cause to be filed for record. Beneficiar shall also de osit with Tz astee this Deed of Trust and
an Motes and all docu ants eviencin expenditures secured hereby. After the lapse of such
time as then f such notice of"default ,. and notice
of sale having been aiven as then required by law, Trustee without demand on Trustorshall sell
said ro eri at the tinge and lace fixed b it in such notice of sale, whether as a whole or in
sjo,gate excels, and in easels order as it ay deter ins, at riublic auction to the hi hest bidder in
lawful one of the United States a able at ti e of sale, Trustee ma estpone sale of all or
ani portion of said ro art b�pu lie announce ent at, such time and place of sale and from
time to time thereafter at the time fixed b the
rarecedin postrsone ant, Trustee shall deliver to such rsurchaser its Deed conveyinla, thg-�ert
evidenceso sold but ithout an covenant or arrant ex rasa ori lied., "The recital. in such Deed of
any matters of fact s11a11 be conclusive of the truthfulness thereof. An person.
including faustoz, trustee, or Ieneficiar as hereinafter defiRed�niq�urchase at such sale.
Trustee may also sell at any such sale and as Dart thereof any shares of corporate stock seculrin
the o li ations secured harsh and I" star waives demand and notice of such sale. Bene iciery
at its oration may also foreclose on such shares b independent riled e sale, and ri' star awes
demand and notice of such sale, After deductillg_all costs fees at d ex ems cif Trustee and of
this Taustg ancludin cost of evidence of title in connection with this sale Trustee shall apraly the
prg cecds oqf7 saleto �qmentjrrst,, of all sums expended under the terms hereof, not then rWaid
with accrued interest at the rate then payable under the Mote or Dotes secured hereby, and then of
all other sums secured hereby, and if there are an _roceeds ��!nqtijin shall distribute thenj to
the person or persons legally entitled thereto.,
IT To waive, to the fullest extent pen-nissible bV law the right to plead any statute of
limitations as a defense to any demand secured here .
I& That Beneficiary time to ti eR by instpurnent in writing substitute a
successor or successors der, which instrui-nent
executed and acknowledged by Bengficiary and recorded in the office of the recorder of the
county or counties where such pjgpart y--jLsituated , shall be conclusive roof of ro art�
substitution of such successor Trustee or Trustees who shall without conveancs fro the
Trustee predecessor, succeed to all its title, estate jights, powers, and duties, including but not
limited to the -power to r gconve the whole car any part of the pro -art c v re b this Deed of
Trust, Such instrument must contain the name of the _ori ginal Trustor, Trustee and Beneficiarl
hereunerR and the boom arida e vvre 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
x ansae of the then acting Trustee shall 1a�Te been raid to such Tiustee 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,
M That this Deed of Trust applies tow inures to the benefit of and binds all --artier
hereto, their heirs, legatees, devisees, administrators, executors, transferees, successors, and
assigns. The to encficiar shall can the owner and holderg including-pledee of the Note
Z_, -
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 sin alar includes the plural.
20. Trustor a Tees to fzle with 33cnef7ciar annuall dairin Jul of each calendar ear
a written operational report which concerns the fiscal -year -�ending on the i ediatel�precediiig
June 30th and confoinis to the standards set forth by -the ParticipatinJurisdiction and 24 CFR
fart 92 wiih respect to the real prorrerty first Z—
described in this Deed of Trust) necessarAr or
convenient for BeneficigpLIgIpAkgthe _annual re orfs.
21. That in the event of a demand for and the re aration and deliver of a ritten.
I,
statement re oarding the obligations secure this Deed of Trust pursuant to Sections 2943 and
2954 of the Civil Code of Califo is or successor statutes 13eneficiar shall e entitled to make
I I
a reasonable char ae not exceeding urn amount MwLhq�ichi �rmitti L11paAw a
Lltl!�L� the maxim a Lt the _ time
mpe
the statement is furnished. Benefic.
services rendered to Trustor or rendered in Trustor's behalf in connection with said ronert.v o
this Deed of Tru in to this Deed of Trust and
the loan secured hereby in connection with the transfer of said ')roierty, or releasing existing
policy of fire, insurance or other casualty insurance held by I3e�re�ciary anal retalacirMe, sane
with another such polis
22. That Trustee accepts this Trust when this Deed of Tiust§ duly executed and
acknowledged is made a loublic record Aas_g�-ovided bila Trustee is not obligated tc�an
part hereto of endin sale under any other Deed of Trust or of any action or nroceedin in
whit "Trustor Bene ciaryor Trustee shall be aiTarty unless razzhtTrustee,
21 That should this Deed of Trust or qnLNote secured her�h
�rqyjLde any fee for
re�ayrr�ent of any indebtedness secured 1�rereby4 T stor agrees to t�ay said fee, if any rf said.
indebtedness shall be aid �rioK to the due date thereof stated in said Note or this Deed of Trust
even if and notwithstandirnz, that Trustor shall have defaulted in payment thereof or in
Mfornia eclared
all suras secured herebv immediately due and payable.
24. That Trustor has made certain renresentations 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 an material r�risre resentation or failed to
disclose any material fact Beneficiary at its tion and without notice, shall have the
-...-..—,Lright to
declare the indebtedness secured hereby, irrespective of the maturity date-'5pecified in such Note
or iyiote�, immediatel due and pa ablcs and on failure to so a enc ficiary may mare awritten
declaration of default and demand for sale as in ara ra leo, 15 herein set forth. Trustee a on
�aresentation to it of an affidavit si ned ary
sgttih&fgrth facts showing a default qbl -y
Trustor under this parnraph, is authorized to accept as true and conclusive all facts and
statements therein and to act thereon hereunder,
Ani V notice which a:
I ! partes ies heri I illa desire or be rewired to ive 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 writh2g.
THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
THE UNDERSIGNED 1S'TTS that a copy of any notice of default
and of any notice of sale hereunder be mailed to l�im at his address hereinbefore set forth.
Dated: -2024
Si nature of Trustor(s):
GOOD NEWS RESCUE MISSION. a
California Nonprofit Public Benefit
R
Coro ration
By.
Jonathan Anderson
Executive Director
TaxlD# 94-1652602
IThis document must be Notarized. I
EXHIBIT A
LEGAL DESCRIPTION
3145 Veda St.
Redding, CA 96001
Accessor's Parcel Number 104-620-052-000
THAT REAL PROPERTY IN SECTIONS 14 AND 15 OF THE P. B. READING GRANT. IN
THE cify OF R BED AS
FOLLOWS;
PARCEL 1LLAPN.-_104-_620-_052-000)
COMMENCING AT THE NORTHWEST CORNER OF PARCEL C AS SHOWN ON A
SURVEY FILED M VEYS AT PAGE 103
SHASTA COUNTY RECQRQS° THENCE ALONG THE NORT14 LINE OF PARCELS C
AND D OF SAID S CE OF 153_,,07 FEETT14ENCE LEAVING SAID NORTH LINE. SOUTH 20 55'34" EAST A DISTANCE OF 70.60
FEET TO THE POINT OF BEQINNINQ� THENCE CONTINUING SOUTH 2" 55'34" EAST
A DISTANCE OF 79,28 FEET MORE OR LESS TO A POINT ON THE NORTH LINE OF
PARCEL B OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE
103° T1ENCE ALONG SAID NORTIi LIME SOUTH 880 24'00" EAST. A DISTANCE OF
2.42 FEET TO THE NORTHWEST CORNER OF THATCER,rAIN PARCEL DESIGNATED
"PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 1990 IN BOOK 2659 OF OFFICIAL
RECORDS ATPAG RECORDS THENCE ALONG THE WEST
LINE OF SAID "PARCEL 4". SOUT14 20 38'00" EAST A DISTANCE OF 96.59 FEET TO A
POINT FHAT BEARS NORTH 870 22'00" EASI,A DISTANCE OF 14.00 FEET FROM THE
SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF
LAND SURVEYS AT PAGE 103 -THENCE soum 87- 22' 00" WEST A DISTANCE OF
14.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL A- THENCE ALONG THE
SOUTH LINE OF SAID PARCEL OF 13021
FEET (SOUTH 870 22' 00" WE LESS TO
THE EAST LINE OF VEDA STREET; THENCE ALONG SAID EAST LINE NORTH 6- 11'
00" WEST LEAVING SAID EAST LINE
,, SOUTH
88- 24' 00" EAST r OF,
A DISTANCE OF 153.45 FEET MORE OR LESS TO THE POEN
BEGINNING AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE
ADJUSTMENT PLA -6-06.
PARCEL 2: (ARN: 104-620-059-000 PORTION)
BEGINNING AT THE souTHEAST CORNER OF PARCEL AAS SHOWN ON A SURVEY
FILED MARCH 27 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE I03LTFIF.NCF._,
SOUTH 60 1 FEAST. ALONG THE WESTERLY LINE OF LOT 29 OF BLOCK 2 OF THE
ALTA SUBDIVISION, (BOOK 4; OF MAPS PAGE 53) A DISTANCE OF 164.40 FEET TO
THE SOUTHWEST CORNER OF SAID LOT 29; THENCE, NORTH 87- 22' WEST ALONG
THE SOUTH LINE OF SAID LOT 29, 50.00 FEET, TO THE SOUTHEAST CORNER
THEREOFTHENCE NORTH 6011' WEST ALONG THE LINE COMMON TO LOTS 29
AND 30 OF SAID ALTA SUBDIVISION 67.38 FEET TO THE NORTHWEST CORNER OF
SAID LOT 30° THENCE NORTH 870 22' EAST ALONG THE NORTH LINE OF SAID LOT
30, A DISTANCE OF 30.23 FEET; THENCE NORTH 2' 38' WEST 187.00 FEET TO A
POINT ON THE NORTH LINE OF PARCEL B AS SHOWN ON 46 LAND SURVEYS AT
PAGE 103: THENCE. NORTH 88' 24' WEST 72.00 FEET MORE OR LESS. TO A POINT
Development Funding Agreement Between the GNRM and the City of Redding Page 33 of 48
WHICH BEARS NORTH 870 22' EAST 14.00 FEET- THENCE NORTH 2" 38'WEST 86.00
FEET FROM THE POINT OF BEGINNING; THENCE SOUTH 2' 38' EAST" 86.00 FEET;
TITENCE SCILTTLI 87° 22' WEST 14,00 FEE i TC} THE POINT OF BEGINNING.
PARCEL3;(Ap� �-104�-620-0�59-00�QPQR�TIQN�
BEGINNING AT A POINT ON THE NORTH LINE OF LOT 30 OF BLOCK. 2 OF THE ALTA
SUBDIVI THEREON NORTH 870 22' EAST
30.23 FEET FROM THE NORTHWEST CORNER THEREOF,- THENCE NORTH 870 22'
RNER OF PARCEL B AS SHOWN ON A
SURVEY FILED MARCH 27. 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103
THFNCE, NORTH 2' 38' WEST ALONG THE EAST LINE OF SAID PARCEL B 183.42
FEET TO THE NORTHWEST CORNER OF SAID PARCEL 13- THENCE NORTH 880 2/1'
NORTH 00 Z -1t
WEST ALONG THE NORTH LINE OF SAID PARCIEL 131, 64.00 FEET- THENCE SOUTH 20
38' EAST, 187.00 FEET TO THE POINT OF BEGINNING.
EXCEPTING THEREFROMTHAT PORTION OF LAND CONVEYED TO THE STATE OF
CALIFORNIA. DEPARTMENT OF TRANSPORTATION. IN GRANT DEED RECORDED
JUNE 30 2020 A LN TIRITII ENT PTCI. 0302 OF OFFICIAL RECORDS.
APN: 104-620-052-000 and 104-620-059-00
Development Funding Agreement Between the GNRM and the City of Redding Page 34 of 48
EXHIBIT 4
NOTE SECURED BY DEED OF TRUST
Forgivable Note
DO NOT DESTROY THIS NOTE: When 3aid this Note alo ry with the Deed of Trust
r cancellation before EKK2RjKjRflKLwill !Le
made.
53,000 000 2024
FOR VALUE RECEIVED- Me GOOD NEWS RESCUE MISSION a California
REDDING a munici 3al cor uratic {.`Lender' i whose address is 777 Cypress avenue,
Pcddin Califcart�ia 96001 or order tlae rind I sum of Three Million and No/1 00 Dollars
annum. Provided that the
Borrower/s continue to meet the rgqwire moats set forth in the DevelpRinent Funding -Agreen
Lient
(�F�) executed by Bor-��o er and Lender on „ 2024 for a five ��� ear perrod fro. __
the date of reeof4a4op-of-die-N-o �issuance of a Notice to Proceed, as
incorporated as Exhibit � in afore entioned I�F'� all principal and. interest ill be for�ivena
Borrower/s may choose to renalr any or all of the principal d interest described in this Note at
a7 � tip ze before flee er�d of five � }years without nalt .
Should default bernadgby either failure to comply with at of the terms and conditions of this
Note, the Deed off st securing this Mote, the L)FAor iy-PLM919mis� —
the Declaration of Restrictive
Covenants, or ip the_perforinapce of qjjy-qf the oblications of Borrower/s contained therein the
entire sun -i of orinclitIal and interest shall become inirrteiiriijeh due and -Pambblle at Lender's
o tion° T'ailure b� Lin lir to exercise this option ut�on one or ore events of default b�y
Bon-ower/s shall not constitute a waiver of the richt to exercise it in the event of anv subsequent
Whether or not suit is filed t
l3grrower/s q! gree LTAy all reasonable attorney'sfees costs of
�C
collection, costs and expenses incurred by Lender in connection with the enforcement or
collection of the Note.
This Note is secured b,La_Deed of Trust of even date herewith . executed by t�orrower/s�hifav�or
of Lender,
GOOD NEWS RESCUE MISSION,
A California Nonprofit Public Benefit Corporation
Jonathan Anderson, Executive Director
Development Funding Agreement Between the GNRM and the City of Redding Page 35 of 48
. ... ........
RECORDED AT REO JEST OF
AND RETURN TO:
City of Redding Housing Division
777 Cypress Avenue
Redding. A 96001
Attention- Housn- -Nana er
t,Sqa�ceabve this �Iine�brRe�corder�'suse�onl �
DECLARATION OF
RESTRICTIVE COVENANT
aLorneless Services)
This Declaration of Restrictive Covenants ("Covenant", ) is made as of this dad o
2024 between the CITY OF REDDING, a unici al corporation and general law
city ("City" and the 4IC9fJt3 NESS RESCUEiI1Ci�T a lifornia NoEpmfit Public Benefit
Corraoration ("`�i3eve;loe;r">, with reference to the following facts;
A. The City of Redding i 1,s a municirml corporation and General law cites
B. DeNeloner is a nonprofit corporation organized under the laws of the State of California
under Section 501fcl(3) of the Internal Revenue
Code.
C. Developer is resentl in escrow or the owner of the Pro-oertv located at 3145 Veda
Street,Redd Shasta CityC,alifgmia Assessor's Parcel Number 104-620-052-000 and 3150 S
.
Market Street Assessor's Parcel Number 104-620-059-000, the "Proiect Site" or "Site"), The
Site is described in Exhibit A "LMql Desc—Ition" attached hereto and incorporated by reference
herein.
13, Developer is interes ess services that
sW
�Qrts the hojpg less too pulation within the Cit of Redding
---- —
E. Cit, desires t"rovLlde—Enca ent funds to Dveloter for the sole arose of ass1HLnisti
Z
Developer with the acquisition and rehabilitation costs of the Property Site for the Project.
F, On January 29. 2021 the City Council of the City of Redding
MpKove a loan in a
arnount not to exceed $3,000,000 to the GN RM to purchase and rehabilitate the Property as a day
resource center for homeless individuals.
G, City and Developer desire to enter into this Covenant set forth the mutual obli--ations of
the City and Developer in connection with the Project Site.
Development Funding Agreement Between the GNRM and the City of Redding Page 36 of 48
declare that the followin rasa covenants
are to be taken and construed as running with the Prol,,)erty and except as set forth below, shall
ass to and be bindin a on CJwner and its successors assi ns heirs rantees or lessees to the
Pro arty or an�Part thereof Ire the date of dation of this Covenant and shall continue for
ent. Each and ever contract deed lease or
CV
other instrument covering or conyeAIMheld
conclusive) sub'ect to covenants and restrictions
regardless of whether such covenants and us are set forth in such contract deedw lease or
other instruments.
se and Effect of Covenant.
The Purpose of this �Covgnqnt is to restrict the use of the PrgD
pgjjy
-Aas set, forth in
Paragraph gqgrvhiidg��-
2. Restrictions Affecting the Properr�L.
The Owner hereb,y agrees to the below restrictions for 10 ears from the execution of the
FundipZ-Agee iLnent.
The Pio art shall be used solely and exclusive) homeless services for the homeless
citizens of the City on the Project Site as allowed by local law. "Horneless services"" nay
include but are not limited to, prevention and rapid rehhousin services to individuals and
2 --------- I—
families who are homeless including stabilization set -vices including housing spare
mediation outreach �troerty owpers credit repair, security or utilit deposits, utility
ay�rtents9 rental assistance for a Pnal �rtonth at a locationg ovine cosi assistance, and.
case manangglent or other appropnate activities for homelessness pEevention and�raid
rehousim4 oersons who have become homeless. Other "Homeless services" may
include a war ming/coolinlo, area laundry facilities shower facflit
ypersonal storac ares
char in stations and intemet access.
I Restrictions Run with the Pro part y.
Owner intends that the Provisions set forth in Paragraph 2 above are covenants which
shall run with the land and be binding upon Owner9 its heti s.,s
_successors and as-sMsn-,,
includin lessees or other users of the Pronert-v (collectivelv, "Users"). Should it be
determined that the restrictions contained in Para rash 2 are not covenants which run
wi are equitable servitudes which run
with the land and are binding, upon all Users. Owner also intends that the set
forth in Pararah2 mav be enforced b -v Owner a2ainst Users even if Owner does not
gown ropgrjy-hick is benefited
be held to be unenforceable, all of the other portions shall remain binding_And
enforceable. Should anPortion of Pararalah 2 be held to not run with the land all of the
other nortions shall continue to run with the land.
4, Irrevocability of Covenant.
This Covenant may not be revoked, or n�ateriall� edified or amended, by Owner during
the term hereof without the prior written consent of Cjy.
Development Funding Agreement Between the GNRM and the City of Redding Page 37 of 48
S. Maintenance- Com-fiance with Law..
Owner
food conditiong repair and sattitar� condition �at�sd, as to landscar�in�, in � healthy
condition and in accordance with an
landscaping ping _and signagetas the same may be amended from time to time and all other
a licable laws rule s orditsances orders and re Mations f all federal state C~it
ttniciyalR attd ether rove mental agencies and bodies having, gEor c��lairm
--�ris�dictioq
and all their res active de artt tents bureaus and officials. Owner acknoyy�jedes�the
great emphasis the C`it�places on cluati�y and to �ovide duality se ices to eli�ibl�
a�tici ants to ensure cons liar�ce with this :I evelo rnent Fundi�x cement. In
additionfl Owner shall keen the Pr( yetty free from all araffiti and any qccq�inulqtion of
debris or waste material. Owner shall roes tl make all re airs and re lacerrtents
necessary toeey toethe Property in food condition and rKpqjLjqd shall alli ro ri
---1 �)tly eliminate
all Orraffiti and re lace dead and diseased -plants-and -la.iidscapiiigwith coin. arable
qpprrpyvgdjmngqjtqerfi als
6. Owner's Rigl sts.
Excepi-for the express restrictions on use of the Property as s�h herein Owner shall
have all other rights of ownersh'i:3 arsrsurtenant to the Propert and the right to exercise
sante.
7. 'rem-, of the Covenant.
This Covenant shall automatically temtinate on the date which is j0eyears from the date
_
of the execution of the Fundinc, Aoreement if not earlier tert-ninAjgd by mutual consent of
Owner and City ("Term of the Covenant").
& Defaults:
A ons est ars each of the folio ink shall constitute an "Event of Default" by Owner
under this Covenant:
i Failure to overate and maintain the Property pursuant to re uirements of the
Covenant Development Funadi
- ng Agree entw and other applicable state and federal laws
and reaqlatiqns°
ii Owner's unauthorized sale or transfer of the Property in violation of this
Covenant or undin A ree e
iii Failure to op 0, rty s a location for erso erty
-- overate and maintain the Pr - M- -A-- pLqp -
stoniae facilities. homeless services and daily life necessities for the horneless citizens of
the Cit nant,
iv An fraudulent act or onaisston b the O ner ertaiztin to or ade in connection
with the use of the Funds, Develonment Funding_Agreement or operation and
maintenance of the Property as indicated above.
9, Remedies:
The occurrence of anv Event of Default. or anv other violation of Owner under this
Covenant or the Development Funding Agreement shall give the City the right to proceed
with auv and all remedies available to the City including but not limited to -
Development Funding Agreement Between the GNRM and the City of Redding Page 38 of 48
La)S
---- 2ecific Perfori-nance- The C shall have the ri ght to mandamus or other suit,
action or roceedin at law or in e uit to re wire Owner to perform its obIigqtipRLqqd
covenants under this Covenant or DeveloOrnent Fundinto enjoin acts QR
thins s of this Covenant or
jQjgevygeJIppmm�eg�ntFqn&ng Agreement.
of this Covenant or Develo
Or
other ri;,�( ower, or remedy; and each and every such right .)ower or remedy shall be
cumulative and in addition I City by the
terms of any such instrument orb anv statute or otherwise against Owner and any other
arson. Neither the failure nor an dais on the art of the C"it to exercise ars such
rights and remedies shall olaerate as a waiver thereof, nor shall an�r sin le or artial
ex lude an other or further exercise of
such right or remed or any other right or rerned .
----------- y-
10. Notice: Notices or other communications which mqy be required o,l
iq d under the
provided no
— -jjndgLme
tern -is of this Covenant shall be
-given as folio s;
Owner ChitV
The Good News Rescue Mission ---City of Reddip lTousi
Attn: Executive Director Attn: Housnic, Manager
2842 S. Market Street 777 C ress Avenue
bedding C;A 961)01 bedding CA 96001
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK
Development Funding Agreement Between the GNRIVI and the City of Redding Page 39 of 48
IN WITNESS WHEREOF. the City and the Devel
y�j�oer have executed this FA on the reVecfiye dates
set forth below:
CITY:
It of Reddin
Date: Hquirz, Cit 1�Iana�er
Date:
APPROVED AS TO FORM:
Rqgy �-.QeW�qjt GENERAL CCS SEL,
UM
DEVELOPER:
Good News Rescue Missiona California
Nonvrofit Benefit Corporation
BL3�- qn�Lthqn Anderson
_— —
Title- -Executive Director
TaxID# 94-1652602
Development Funding Agreement Between the GNRM and the City of Redding Page 40 of 48
PARCEL 1: (APN-. 104-620-052-000
COMMENCING AT THE NORTHWEST CORNER OF PARCEL C AS SHOWN ON A
SURVEY FILED MA EYS AT PAGE 103
SHASTA COUNTY RECORDS- THENCE ALONG THE NORTH LINE OF PARCELS C
AND D OF SAID S CE OF 153,07 FFET
THENCE LEAVfN(3 SAID NORTH LINE. SOUTH 2" 55'34" EAST A DISTANCE OF 70.60
FEET TO THE POINT OF BEGINNINQ THENCE CQNTINUING SOUTH 2- 55'34" EAS L�
J- ---
A DISTANCE OF 79 HE NORTH LINE OF
PARCEL B OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE
UTH 880 24'00" EAST A DISTANCE OF
2.42 FEET TO THE NORTH WEST CORNER OF THAT CERTAIN PARCEL DESIGNATED
11PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 1990 IN BOOK 2659 OF OFFICIAL
RECORDS AT PAGE 303 SHASTA COUNTY RECORDS THENCE ALONG THE WEST
LINE OF SAID "PARCEL 499. SOUT14 20 38'00" EAST A DISTANCE OF 96.59 FEET TO A
POINT THAT BEARS NQR,rB 87- 229 009' EASrA DISTANCE OF 14.00 FEETFROM THE
SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF
LAND SURVEYS AI PAGE; 103- THENCE SOUTH 87- 22'00" WE5_1 A 121STANCE OF
14.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL A- THENCE ALONG THE
SOUTH LINE OF SAID PARCEL, SDUTH 87' 14' 54" WEST , --A DISTANCE OF 130.21
FEET (SOUTH 870 22' 00" WEST, 130.21 FEET PER 46-L,S,IQ3�1C�RE CSR LESS TQ
THE EAST LINE OF VEDA STREET° THENCE ALONG SAID EAST LINE NORTH 6- IF
j-
00" WEST LEAVING SAID EAST LINF SOUTH
J,-
880 24'001V EAST A DISTANCE OF 153.45 FEEJ,MORE OR LE�ESS THE POINT OF
--- :
BEGINNING AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE
ADJUSTMENT PLA -6-06,
Development Funding Agreement Between the GNRM and the City of Redding Page 41 of 48
. ... ........
SCOPE OF
DEVELOPMENT
I. GENERAL
Exhibit 1) and the Site 1�Iata Exhibit 2j Paarsaaant to this DevelODm nt
shall be
rehabilitated in accordance with the provisions of this Agyres —f
referenced in Section 2.2 of the Agreement, and all �drawi�ns and related
documents qpProyed by the City of Reddi ursuant hereto.
M DEVELOPMENT
The Develo-13er shall improve or cause to be im1proved, on the Project
Satv9 all tanrsuant to the re int this Exhibit the Final Pro'ect
Plans and SDecafications9 and all conditions set forth in any City2gn-nit
issued for th satisfaction
of the City of 1Zeddnz1osin Iiivisioal seed he Pr0i Man Project 4qRqggL
The Developer shall commence and complete the I
res �ective ti es este lishedtherefore in the We of Performance.
111. DEVELOPMENT STANDARDS
laws and regulations
and to I ocal de of the
fit of ieddin and all aP livable fit evelola ant standards.
The Develolier shall-W]y for and obtain any -permits re as red for the
vals required by the
ent or Transi)ortation
and Engineering Department.
Development Funding Agreement Between the GNRM and the City of Redding Page 42 of 48
EXHIBIT 7
Schedule of Performance
Action
Time Frame
1.
CityacrdDeveloper approve DFA.
February 20-2024
2,
I3eveloier provides acceptable insurance to die City risk N1ana Yernent.
Prior to Citv execution of DFA
3,
Execution of DFA and all securitydocummnnts
Within 1daysof approval of
insurance
4.
DFA and security docurnents are delivered to Escrow A-ent.
Within 10 da s of execution of'
DFA
5.
Escrow Agent to provide C ity and Developer with closing
Within 10 days nor to Close
statement.
of Escrow
6.
Cl of
Within 30 davs of execution of
qguisition and eli ibis escrow fees.
DFA
*
Escrow Agent to issue and deliver Title Insurance to the Cit
At close of escrow
*
Developer submits application ForUie Penrnit.
With 10 days of'close of
escrow
9.
Dc�v elo cr submits F I ProiectPlansadBj dgq.to Pro-ect
Within 45 davs of close of
Mariam-
escrow
M
Pro ect Mama er approves or rpippfc
Within 14 days of rgggipfff
Final Proiect Plans
11,
Developersubmits plans and buildin-g-perm
PkM121katiom
des Project
Within 14 d - of Pr ect
----— ---
NLanageLapTnaval
11,
Develo or and/or General Contractor obtains use and building
Within 60 days of submittal to
Q -g— -
Mrm—its-
the Building Department
12,
—Rrqiec�n
Zer issues a Notice to Proceed
Project Mana
ays of
Within 10 d— —
issuance of use and
building2grmits
13.
Developer and/or General Contractor commences improvements
Within 15 das of issuance
-y .--
or the Notice to Proceed
14,
Improvements completed-
Within 12 months
following issuance of
building-pgrmits
15.
Recordation of'Notice of Completion.
Within 14 days of the
completion �ccrtifi_cate
issued by the Building
De artment
16.
City�11 issue �aCetdfjcqte�of(,orn �Jetion,
Within 35 days foIjg3yLJnZ
recordation of the Notice
of Coal !qtion
17.
Developer begins the operation of the public facility.
Within 30 days following
issuance of Certificate of
Cain p—
Development Funding Agreement Between the GNRM and the City of Redding Page 43 of 48
EXHB11T 8
Notice to Proceed
R )DING
E" [wool
C' %
A L INN
` "xA
Jonathan Anderson
The Good News Rescue Mission
2842 S Market St.
Redding, CA 96001
Subject-, NOTICE TO PROCEED, -
Dear Jonathan,
i
Y ti"I C1
In accordance with the provisions of Subsections 6.9.6 and the Scliedule of Perf6rinance incorporated as
of Redding on 2024, you shall begin work within 15 days from this issuance of Notice to
Proceed.
am=
LWWWWWO
Development Funding Agreement Between the GNRM and the City of Redding Page 44 of 48
RECORDINCI REQUESTED BY
CITY OF REDDING
WHEN RECORDED MAIL TQ
CITY OF REDDING
P.O. Box 496071
Redding 071
jdin,� _CA96�049-6�
Loan No.:
THIS SPACE FOR RECORDER'S USE ONLY
NOTICE OF COMPLETION
Notice pa�rsant to C ivil Code Section 3093 inn i e filed within 10 days after co—r-fion.
NOTICE IS I-JEREBY GIVEN THAT:
1. The undersioned is the owner or authorized agent of the owner of the interest or estate stated
below inUthepro2erty hereinafter described-
-
1 The full name of the owner is; The Good News Rescue Mission,
3. The full address of the owner is- 2842 S. Market Street Reddi--,- CA 96001.
4. The nature of the interest or estate of the Lin ersi Died Fee
Lid = -- is- - 1 - In _
5, The full names and full addresses of all persons if anY who hold title with the undersi ne
as aoint tenants or s tenants in common are: None
6. Work or imnrove ient on the property hereinafter described was construction and was
coni. xleted on _
7. Said ork or ins roverrtent was rtnde taken on said ro crt tzrsnant to a contract dated
2024 with General Contractor.
The street address of the n which said work or upro
Rg-p—rop-p-qy—o —vgirnent as co Meted is 3145
Veda Street, Reddin2, CA 96001 County of Sbasta, State of California APN; 104-620-052-000
of erg that the foteoin is tate and corse.
DEVELOPER:
Good News Rescue Missiona California
By: Jonathan Anderson
Date:
Title- Executive Director
Development Funding Agreement Between the GNRM and the City of Redding Page 45 of 48
EXHIBIT 10
CERTIFICATE OF COMPLETION
THIS CERTIFICATE OF COMP' the "Certificate" ) is ina.6e by the CITY
OF REDDING a munigI �3ql c oration and general law city the "CITY"), in favor of GOOD
NEWS RESCUE MISSION a California Nonprofit Public Benefit Comoration
"OWNER"), as of the date set forth below.
muefflim
A. The CITY and the OWNER have entered into that cerjqjn,I)evelo nzent Fundin
Assessor Parcel NumberLs
) 104-620-052-000
and 104-620-059-000 as more fully described in Exhibit A attached hereto and made a tart
hereof the Proerty)-
& The DFA sets forth the obligations of OWNER. referred to as Develo er under
the DFA,
C. The CITY has conclusively determined that the Developer has satisfactorily
�completed the obli afions of the DEVELOPER relative to develop Pro er�t uiLed
by the I FA and no desires to fu ish g, -qgy-- —ment of tljg�� re
or its successors with a Certificate of
Co plctiona This C ort ficate is in such for as to ermit conclusive determination of
satisfactory completion of all of the oblivations of the DEVELOPER reoluired y the DFA
je�din&devglomentof th"ropei!L
NOW THEREFORE the CCITY here certifies as follows:
1n The obligations of the DEVELOPER re ardizz devel�xsrnent of the Site as stated
in the DFA have been fully and satisfactorily COMDleted in conformance with the
DFA except as to those breaches of contract or defects in construction that could
not have reasonably been discovered )y CITY at the time of issuance of the
Certificate of Co
�Q�Ietion
2. Nothing contained in this instrument shall inodif
y in any other rqvisiqns
of the DFA.
IN WITNESS )F� the CITi' has executed this Certificate this da of
,202
CITY OF RENG a munici al
coKporation
BARRY TIPPIN, City Manager
Development Funding Agreement Between the GNRM and the City of Redding Page 46 of 48
Exhibit A
described as follows:
THAT REAL PROPERTY IN SECTIONS 14 AND 15 OF THE P. B. READING GRANT. IN
THE CITY OF F2EDDINCI SL1AS TA COUNTY CAL IFOF NTA DESCRIBED AS
FOLLOWS:
PARCEL I �APN- 104-620-052-OOQI
COMMENCING AT THE NORTHWEST CORNER OF PARCEL C AS SHOWN ON A
SURVEY FILED M EYS AT PAGE 103
SHASTA COUNTY RECORD - THENCE ALONG THE NORTH LINE OF PARCELS C
AND Q OF SAID SURVEY,.SOUTH 88- _24' 00'_EAST A DISTANCE OF 153.07 FEET;
THENCE LEAVING SAID NORTH LINE SOUTH 20 55'34" EAST. A DISTANCE OF 70.60
FEET TO THE POINT OF BEGI 34" EAST
A DISTANCE OF 79.28 FEET MORE OR LESS TO A POINT ON THE NORTH LINE OF
PARCEL B OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE
UTTI 880 24'00" EAST. A DISTANCE OF
2.42 FEET TO THE NORTHWEST CORNER OF THAT CERTAIN PARCEL DESIGNATED
"PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 1990 IN BOOK 2659 OF OFFICIAL
RECORDS AT PAGE 303 SHASTA couma RECORDS THENCE ALONG THE WEST
LINE OF SAID "PARCEL 4" SOUTH 20 38'00" EAST A DISTANCE OF 96.59 FEET TO A
POINT THATBEARS NORTH 870 22'00" EASTA DISTANCE OF 14.00 FEET FROM THE
SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF
LAND SURVEYS AT PAGE
� 103 THENCE SOUTH 87- 22'00" BEST A_QISTANCIL,0F
14.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL A- THENCE ALONG THE
SOUTH LINE OF SAID PARCEI F 13021
FEE SOUIII-I 7° 22' 00" WEST9 130,21 T PER 46-L.S.-10,3'). MORE OR LESS TO
THE EAST LINE OF VEDA STREET° THENCE ALONG SAID EAST LINE NORTH 60 111
00" WEST VING SAID EAST LINE SOUTH
880 24' 00" EAST A DISTANCE OF 153.45 FEET MORE OR LESS TO THE POINT OF
BEGINNING AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE
ADJUSTMENT PLA -6-06.
PARCEL 2: (APN: 104-620-059-000 PORTION)
BEGINNING AT THE SOUTHEAST CORNER OF PARCEL AAS SHOWN ON A SURVEY
FILED MARCI 127 19 4 IN BOLI 46 OF LAND Sl TRVEYS AT PAGE 103 •, THENCE
SOUTH 60 1F EAST ALONG THE WESTERLY LANE OF LOT 29 OF BLOCK 2 OF THE
ALTA SUBDIVISION, (BOOKS OF MAPS PAGE 53), A DISTANCE OF 164.40 FEET TO
THE SOUTHWEST CORNER OF SAID LOT 29LTHENQ:ENORTH 870 22' WEST ALONG
., _
THE SOUTH LINE OF SAID LOT 29, 50.00 FEET TO THE SOUTHEAST CORNER
THEREO THENCE NORTH 6011' WEST ALONG THE LINE COMMON TO LOTS 29
AND 30 OF SAID ALTA SUBDIVISION 67.38 FEET TO THE NORTHWEST CORNER OF
SAID LOT 30- THENCE NORTH 870 22' EAST ALONG THE NORTH LINE OF SAID LOT
30, A DISTANCE OF 30.23 FEET; THENCE NORTH 2' 38' WEST 187.00 FEET TO A
POINT ON THE NORTH LINE OF PARCEL B AS SHOWN ON 46 LAND SURVEYS AT
PAGE 103; THENCE, NORTH 88' 24' WEST 72.00 FEET MORE OR LESS, TO A POINT
WHICH BEARS NORTH 870 22' EAST 14.00 FEET- THENCE NORTH 20 3$' WEST 86.00
Development Funding Agreement Between the GNRM and the City of Redding Page 47 of 48
FEET FROM THE POINT OF BEGINNING THENCE SOUTH 20 38' EAST 86.00 FEET-
THE POINT OF BEGINNING.
PARCEL 3; {AEN. 104-620-059-000 PORTION)
BEGINNING AT A POINT ON THE NORTH LINE OF LOT 30 OF BLOCK 2 OF THE ALTA
SUBDIVISION (BOOK 5 OF MAPS. PAQJE 53� DISTANT THEREON NORTH 870 22' EAST
30.23 FEET FROM THE NORTHWEST CORNER THE
LREOF--THENCF NORTH 87. 22'
RNER OF PARCEL B AS SHOWN ON A
SURVEY FILED MA EYS AT PAcjE jw°
THENCE NC;F�TH 2° 38' WEST AEC}NCC TETE EAST LINE OF SAID PARCEL B. 183.42
FEET TO THE NORTHWEST CORNER OF SAID PARCE
LL BTHENCE NORTH 88'24'
WEST ALONG THE NORTH LINE OF SAID PARCEL B
, 64.00 FE T- THENCE SOUTH 2-
INNING.
EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED TO THE STATE OF
CALIFOR IN GRANT DEED RECORDED
JUNE 30. 2020 AS INSTRUMENT NO. 2020-0020302 OF OFFICIAL RECORDS.
APN- 104-620-052-000 and 104-620-059-00
X-\Redev\Staff &Pc�rts\2024 Staff
--Reports\Attqchmcnts\Q`NRM DA DRC.doc
Development Funding Agreement Between the GNRM and the City of Redding Page 48 of 48