RECORDING REQUESTED BY:
WHEN RECORDED MAIL
DOCUMENT TO:
City of Fontana
8353 Sierra Avenue
Fontana, California 92335
Attn.: City Clerk
__________________________________________________________________________ Space Above This Line for Recorder’s Use Only
Exempt from Recording Fees Pursuant
to Gov. Code §§ 27383, 6103
THIRD AMENDMENT TO
OPERATING COVENANT AGREEMENT
between
THE CITY OF FONTANA,
a California municipal corporation
(“CITY”)
and
FONTANA WOMAN’S CLUB
(“OWNER”)
CITY OF FONTANA
THIRD AMENDMENT TO OPERATING COVENANT AGREEMENT
(Fontana Woman’s Club)
This Third Amendment to Operating Covenant Agreement (Fontana Woman’s Club) (the “Third Amendment to Agreement”) is dated July 26, 2023, for reference purposes only and is entered into by and between the City of Fontana, a California municipal corporation (the “City”), and Fontana Woman’s Club, a California Domestic Nonprofit corporation (the “Owner”). The City and the Owner are collectively referred to herein as "Parties" or individually referred to as a "Party."
RECITALS
On June 11, 2019, the Parties entered into that certain Operating Covenant Agreement (Fontana Woman’s Club) (the “Original Agreement”), recorded June 26, 2019 as Document No. 2019-0211363 in the Official Records, in the Office of the County Recorder of the County of San Bernardino, State of California.
On April 13, 2020, the Parties entered into that certain First Amendment to the Operating Covenant Agreement (the “First Amendment”), recorded, May 5, 2020, as Document No. 2020-0152398 in the Official Records, in the Office of the County Recorder of San Bernardino, State of California.
On March 25, 2021, the Parties entered into that certain Second Amendment to the Operating Covenant Agreement (the “Second Amendment”), recorded June 30, 2021, as Document No. 2021-0295930 in the Official Records, in the Office of the County Recorder of San Bernardino, State of California.
The definitions described within Section 1 of the Original Agreement shall have the same meaning in this Third Amendment to Agreement.
To bring current the Fixed Loan installment schedule as set forth in the Second Amendment to the Operating Covenant Agreement, recorded June 30, 2021, as Document No. 2021-0295930 in the Official Records, in the Office of the County Recorder of San Bernardino, State of California, between the Owner and City; and To effectuate and provide the Owner with terms in which the City may forgive repayment of the Fixed Loan, it now becomes necessary to amend the Agreement and the Parties are desirous of such amendment.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN, THE PARTIES AMEND THE ORIGINAL AGREEMENT AS FOLLOWS:
Section 6.7 shall be amended as follows:
“6.7. Fixed Loan. The Owner hereby acknowledges receipt of the Fixed Loan proceeds in the amount of One Hundred Twenty Five Thousand Dollars ($125,000) from the City, with the final payment being issued on or before March 1, 2023, and agrees to repay such proceeds over a ten-year repayment period in annual installment amounts of $17,500 (“Loan Payment”) for a total repayment amount of One Hundred Seventy-Five Thousand Dollars ($175,000) to the City (" Fixed Loan"), subject to adjustments defined in Section 6.8 below. The principal of the Fixed Loan shall be payable in ten annual installments prior to June 1 in each of the years and in the principal amount and interest amount on each installment of the Fixed Loan as set forth below:
Payment Date
Principal Amount
Interest Amount
Total Loan Payment
July 1, 2024
$ 12,500.00
$ 5,000.00
$ 17,500.00
July 1, 2025
$ 12,500.00
$ 5,000.00
$ 35,000.00
July 1, 2026
$ 12,500.00
$ 5,000.00
$ 52,500.00
July 1, 2027
$ 12,500.00
$ 5,000.00
$ 70,000.00
July 1, 2028
$ 12,500.00
$ 5,000.00
$ 87,500.00
July 1, 2029
$ 12,500.00
$ 5,000.00
$ 105,000.00
July 1, 2030
$ 12,500.00
$ 5,000.00
$ 122,500.00
July 1, 2031
$ 12,500.00
$ 5,000.00
$ 140,000.00
July 1, 2032
$ 12,500.00
$ 5,000.00
$ 157,500.00
July 1, 2033
$ 12,500.00
$ 5,000.00
$ 175,000.00
Section 6.8 shall be amended as follows
“6.8. For each year, beginning July 1, 2024, and ending on May 31, 2033, in which Business has generated Two Million Dollars ($2,000,000) or more in total taxable revenue for the prior fiscal year, Loan Payment shall not be due and payable by Owner for said year and shall reflect as a credit to the Total Loan Payment, as if Owner made payment as scheduled per the above table.
2. All remaining provisions of the Original Agreement shall remain the same. (Signatures on Following Page)
IN WITNESS WHEREOF, the City and Owner have approved this First Amendment to Agreement effective the day and year first above written.
CITY: OWNER:
CITY OF FONTANA FONTANA WOMAN’S CLUB
A California Municipal Corporation a California Domestic Nonprofit Corporation By: By:
Matthew Ballantyne
City Manager
ATTEST:
By:
Germaine Key
City Clerk
APPROVED AS TO LEGAL FORM:
Best Best & Krieger, LLP
By:
City Attorney
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