HomeMy WebLinkAbout2008 CON CDC Manuel Cavada DBA Creative Images Photography - Community Benefit Loan Agreementc/) UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [oplional]
Mike Dalla, City Clerk, City of National City, CA (619) 336-4226
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
[ Mike Dalla
Office of the City Clerk
City of National City
1243 National City Blvd.
National City, CA 91950
L
J
IIII II i I I I I II I II II 1 II II II II II IIIII I I I III III
JUN 24, 2008 9:51 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
GREGORYJ. SMITH. COUNTY RECORDER
FEES: 0.00
PAGES:
i11110IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIInlllIIIIIIIIIIIIIII'lll
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR'S EXACT FULL LEGAL NAME- insertonlyone debtor name (la ori b)-do not abbreviate or combine names
OR
la ORGANIZATIONS NAME
1 b. INDIVIDUAL'S LAST NAME
Cavada
FIRST NAME
Manuel
MIDDLE NAME
N/A
SUFFIX
Ic. MAILING ADDRESS
939 "A" Ave.
CITY
National City
STATE
CA
POSTAL CODE
91950
COUNTRY
U.S.
Id. s4EF INSTBIICTIONS
ADD'L INFO RE I le. TYPE OF ORGANIZATION
DORGANIZATION I Sole Proprietorshil
if. JURISDICTION OF ORGANIZATION
County of San Diego
19. ORGANIZATIONAL ID#, if any
17 NONE
REMOVED
2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do not abbreviate or combine names
OR
2a. ORGANIZATION'S NAME
2b. INDIVIDUAL'S LAST NAME
FIRST NAME
MIDDLE NAME
SUFFIX
2c. MAILING ADDRESS
CITY
STATE
POSTAL CODE
COUNTRY
2d.
SFF INSTRUCTIONS
ADD'L INFO RE 12e. TYPE OF ORGANIZATION
ORGANIZATION
DEBTOR I
2f. JURISDICTION OF ORGANIZATION
2g. ORGANIZATIONAL ID#,Many
n NONE
3.SECU REDPARTY'SNAME (or NAMEofTOTAL ASSIGNEEofASSIGNOR SIP)- insert only n secured part yname (3acr3b
OR
3a. ORGANIZATIONS NAME
Community Development Commission (CDC) of the City of National City
3b. INDIVIDUAL'S LAST NAME
FIRST NAME
MIDDLE NAME
SUFFIX
Sc. MAILING ADDRESS
1243 National City Blvd.
CITY
National City
STATE
CA
POSTAL CODE
91950
COUNTRY
U.S.
.This FINANCING STATEMENT covers the following collateral:
1996 Jeep and camera, lighting, and office equipment with an approximate total market value of $63,500.00.
S, ALTERNATIVE DESIGNATION [if applicable]'I LESSEE/LESSOR nCONSIGNEEICONSIGNOR nBAILEFJBAILOR nSELLER/BUVER�AG.LIEN �NON-UCCFILING
6. This FINANCING STATEMENT is to be fileforrecord] (or recorded) in the REAL 17. Check to REQUEST SEARCH REPORT(S) on Debtor(s) All Debtors Debtor i nDebtpr 2
ESTATE RECORDS. Attach Addendum lit soplicablel IADDITIONAI FFF1 footrace!
B. OPTIONAL FILER REFERENCE DATA
For $15,000 Community Benefit Loan Program, CDC of National City, CA. DBA Creative Images Photography.
FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCCl) (REV. 05/22/02)
International Association of Commercial Administrators (IACA)
UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
Mike Dalla, City Clerk, City of National City, CA (619) 336-4226
B. SENDACKNOWLEDGMENTTO: (Name and Address)
' Mike Dalla
Office of the City Clerk
City of National City
1243 National City Blvd.
National City, CA 91950
L
THE ORIGINAL OF THIS DOCUMENT
WAS RECORDED ON JUN 24, 2008
DOCUMENT NUMBER 2008-0338047
GREGORY J, SMITH, COUNTY RECORDER
SAN DIEGO COUNTY RECORDERS OFFICE
TIME 9-51 AM
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR'S EXACT FULL LEGAL NAME-insertonlyonedebtorname (1 aor1 b)-do notabbreviateorcombine names
OR
la. ORGANIZATION'S NAME
I b.INDIVIDUAUSLASr NAME
Cavada
FIRST NAME
Manuel
MIDDLE NAME
N/A
SUFFIX
lc. MAILING ADDRESS
939 "A" Ave.
CITY
National City
STATE
CA
POSTAL CODE
91950
COUNTRY
U.S.
1d_ SEE INSTRUCTIONS
ADD'L INFO RE Ile TYPE OF ORGANIZATION
ORGANIZATION
DEBTOR I Sole Proprietorshil
1f. JURISDICTION OF ORGANIZATION
County of San Diego
Ig. ORGANIZATIONAL ID #, it any
p NONE
REMOVED
2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME
serf on ty one debtor name (2a or 2b) - do not abbreviate or combine names
OR
2a. ORGANIZATION'S NAME
2b. INONIDUAUS LAST NAME
FIRST NAME
MIDDLE NAME
SUFFIX
2c. MAILING ADDRESS
CITY
STATE
POSTAL CODE
COUNTRY
2d.
6EE INSTRUCTIONS
ADO'L INFO RE Ile. TYPE OF ORGANIZATION
ORGANIZATION
DEBTOR (
21. JURISDICTION OF ORGANIZATION
2g. ORGANIZATIONAL ID #, 1 any
n NONE
3. S ECURED PARTY'S NAME (or NAME ofTOTALASSIGNEEofASSIGNOR S/P)- insertonlyone secured padyname (3a or3b
OR
3a. ORGANIZATION NAME
Community Development Commission (CDC) of the City of National City
3h_ INDIVIDUAL LAST NAME
FIRST NAME
MIDDLE NAME
SUFFIX
3c. MAILING ADDRESS
1243 National City Blvd.
GTY
National City
STATE
CA
POSTAL CODE
91950
COUNTRY
U.S.
. This FINANCING STATEMENT covers the following collateral:
1996 Jeep and camera, lighting, and office equipment with an approximate total market value of $63,500.00.
5. ALTERNATIVE DESIGNATION ]if applicable]:' LESSEE/LESSOR ,CONSIGNEE/CONSIGNOR nBAILEE/BAILOR nSELLER/BUYER� AG. LIEN�NON-UCC FILING
6. C�This FINANCING STATEMENT is to be filed jtor record] (or recorded) in the REAL 7, Check to REQUEST SEARCH REPORT(S) on Debtor(s)
L ESTATE RECORDS. Attach Addendum lit applicable) 'ADDITIONAL rm. [optional] All Debtors Debtor 1 nDebtor 2
8. OPTIONAL FILER REFERENCE DATA
For $15,000 Community Benefit Loan Program, CDC of National City, CA. DBA Creative Images Photography.
FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)
International Association of Commercial Administrators (IACA)
COMMUNITY BENEFIT LOAN AGREEMENT
THIS COMMUNITY BENEFTI LOAN AGREEMENT [AGREEMENT], is made between The
Community Development Commission (CDC) [OWNER] of the City Of National City, a
Redevelopment Agency, and Manuel Cavada doing business as Creative Images
Photography Studio [BUSINESS OWNER], located at 939 "A" Ave., National City, CA,
91950, on June 8, 2008, to participate in the Community Benefit Loan Program.
RECITALS
1. The CDC desires to stimulate private investment in the City's Commercial Districts.
2. The CDC believes that investment on improvements visible to customers, neighboring
merchants, and residents will beautify the commercial corridors and increase the volume
of business by making the districts and individual businesses more attractive.
3. The CDC has adopted and established a Community Benefit Loan Program to assist
property and BUSINESS OWNER to improve their properties located in a designated
area of the City of National City.
4. The designated area of the City of National City is the Redevelopment Project Area.
5. The CDC and the City of National City have determined that the project subject to this
AGREEMENT, per Labor Code section 1771.5, is exempt from State prevailing wage
requirements, so long as the alteration project is $15,000 or less, because the CDC has
elected to initiate and enforce a labor compliance program.
6. The CDC has determined that the business subject to this AGREEMENT is located in the
Redevelopment Project Area, has completed the SDSU Technical Assistance Program
and is eligible to participate in the Program.
7. As a condition of receiving the funds, BUSINESS OWNER(s) shall execute, among other
things, this AGREEMENT, a promissory note, and a security agreement, which security
agreement shall be recorded against the Business Property. These instruments are
intended to secure CDC'S continuing interest in the condition of the Business, as well as
the secure performance of other covenants contained in these AGREEMENTs.
NOW, THEREFORE, in consideration of the recitals and the mutual obligations of the parties as
herein expressed, the CDC and the BUSINESS OWNER(s) agree as follows:
AGREEMENT
I. DEFINITIONS
The following terms shall have the following meanings whenever used in this AGREEMENT,
except where the context clearly indicates otherwise. Any ambiguity as to the intended meaning
or scope of the terms set forth below will be resolved solely by the CDC through its designated
representative.
1
1. Completion Date is defined as the date that the contractor has finished the
business improvements per the AGREEMENT and Scope of Work and to the
satisfaction of the CDC, as evidenced by final inspection and sign off by CDC
staff.
2. Facade is defined as the exterior of a commercial building visible from the public
street, and excludes all else, unless otherwise determined by the CDC.
3. Parcel is defined as the unit of real property as identified within the County
Recorder's documents.
4. Program Manager is defined as the CDC's designated representative for the
Community Benefit Loan Program.
5. Project is defined as the total business improvements made to the business/
property outlined in the Scope of Work, attached as Exhibit "B", and approved
by the Program Manager.
6. Total Cost Expenditure is defined as the total actual costs incurred by and paid for
completing the project.
7. Contractor is defined as a contractor selected through the bidding process to
complete the business improvements per this AGREEMENT.
8. Participant is defined as the Property and/or BUSINESS OWNER of the property
to which the business improvements are made.
9. Property Owner(s) is defined as the person(s) on Title at the San Diego County
Recorders Office and identified on the Certificate of Ownership (Exhibit "A").
10. BUSINESS OWNER(s) is defined as Manuel Cavada doing business as Creative
Images Photography Studio.
11. Owner is defined as the Community Development Commission (CDC).
12. CDC is defined as the Community Development Commission of National City , a
municipal corporation, and its authorized representatives, officers, officials, directors,
employees and agents.
13. AGREEMENT is defined as this AGREEMENT entered into between the CDC
and BUSINESS OWNER(s).
14. Note (the NOTE) is defined as the certain promissory note in the total principal
amount of Fifteen Thousand Dollars ($15,000) to be executed by BUSINESS
OWNER(s) in favor of the CDC, evidencing all or any part of the funds, which is
secured by the security agreement as well as any amendments thereto, modifications
thereof or restatements thereof. The terms of the NO IL are hereby incorporated into
this AGREEMENT by this reference, attached as Exhibit "F".
2
15. Business Property is defined as the pledged collateral by the BUSINESS OWNER(s)
to the CDC as security for debt repayment.
16. Security Agreement is the agreement for security for the assistance by
BUSINESS OWNER(s), as well as any amendments to, modifications of, and
restatements of said Security Agreement. The terms of the Security Agreement
are hereby incorporated into this AGREEMENT by this reference, attached as
Exhibit "G".
11. CERTIFICATION OF OWNERSHIP
1. The Property Owner(s) of the said property agrees to the improvements to the property
pursuant to this AGREEMENT and has signed the Certificate of Ownership, attached as
Exhibit "A" and incorporated by this reference.
11I. PROPERTY/ BUSINESS OWNER(S) RESPONSIBILITIES
1. The Property Owner shall sign the CBL Program Application and submit to the
Program Manager by June 8, 2008.
2. The BUSINESS OWNER(s) shall meet with the Program Manager to discuss the
business improvement work to be completed, per this AGREEMENT by June 8,
2008.
3. The BUSINESS OWNER(s) shall sign this AGREEMENT and agrees to the
Scope of Work attached as Exhibit "B" and by this reference made part of this
AGREEMENT. The Scope of Work outlines the Community Benefit Loan
Project and itemizes approved costs based on the lowest bids, attached as Exhibit
"B"
4. The BUSINESS OWNER(s) shall be responsible for hiring the contractor from
the bid process to complete the improvement work.
5. BUSINESS OWNER(s) agrees to maintain the improvements made pursuant to
this AGREEMENT in good condition, and to repair or replace any damage that
occurs to the improvements, for a period of five (5) years following the
completion date of the improvements.
6. BUSINESS OWNER(s) shall maintain an inviting, clean, and attractive business
environment, satisfactory to and in the sole determination of the CDC.
7. BUSINESS OWNER(s) shall report annual statistics on property/ business
investment, sales tax, and job creation to the CDC of National City. See attached
Exhibit "C" for a report on 2006-2007 Data.
8. . BUSINESS OWNER(s) shall, whenever possible, hire local contractors to
perform business improvement work and hire local employees.
3
9. The BUSINESS OWNER(s) shall keep in full force and effect, during any and all
work performed pursuant to this AGREEMENT, Comprehensive General
Liability insurance in the amount not less than $1,000,000. BUSINESS
OWNER(s) shall provide proof of insurance and is hereby attached as Exhibit
"D.
IV. CDC'S RESPONSIBILITIES
1. The CDC Program Manager shall meet with the BUSINESS OWNER(s) to
discuss scope of work for the business improvements.
2. The CDC shall reimburse the BUSINESS OWNER for improvement work
undertaken pursuant to this AGREEMENT, pursuant to the following
reimbursement process.
a. Loan funds will be distributed on a reimbursement basis for qualifying and
eligible expenses per this AGREEMENT. BUSINESS OWNER(S) must
submit all required reimbursement forms, supplemental and supportive
materials to the satisfaction of the CDC.
b. CDC Staff will review the receipts submitted, and other supporting
documents and conduct a walk through of the BUSINESS to make sure
that all work was completed in accordance with the Scope of Work in
Exhibit "B"
c. If all obligations under this AGREEMENT have been met, CDC shall
issue full reimbursement payment within forty-five days of final review
and approval of the reimbursement request.
V. LOAN TO BUSINESS OWNER(S)
1. The CDC agrees to Loan the BUSINESS OWNER fifteen thousand dollars
($15,000) for the purpose of improving the business at 939 "A" Ave., National
City, CA, 91950, consistent with the terms of this AGREEMENT. The Loan is
secured by a NOTE and Security Agreement, and is subject to repayment to the
CDC if the BUSINESS is sold, leased, conveyed, refinanced, vacated, transferred,
assigned, alienated, or hypothecated within five (5) years from the Completion
Date of the improvements.
2. The NOTE is attached hereto as Exhibit "F" and incorporated herein by
reference.
3. The Note shall be secured by a Security Agreement, which is attached as Exhibit
"G" and incorporated herein by reference, and recorded against the pledged
BUSINESS PROPERTY.
VI. CONDITIONS OF LOAN / LIEN
4
1. BUSINESS OWNER(S) AND CDC agree that if the improvements detailed in the
Scope of Work, attached as Exhibit "B", on the BUSINESS commonly known as
Creative Images Photography Studio located at 939 "A" Ave., National City,
CA, 91950, are maintained for at least five (5) years from the Completion Date of
the improvements, the Loan will be forgiven and BUSINESS OWNER(S) shall
not be required to repay the loan to the CDC. However, should the BUSINESS be
sold, hypothecated, vacated, leased, transferred, assigned, or alienated on or
before five (5) years from the Completion Date of the improvements, this Loan
shall be repayable in full by the BUSINESS OWNER(S) to CDC, upon demand,
with interest at the option of the CDC.
Interest shall be calculated at 8.5 % per annum simple interest retroactive to the
date of the Loan. Unless BUSINESS OWNER(S) has complied with the terms of
the AGREEMENT, the Loan identified shall constitute a lien upon the Business in
the amount of the loan plus interest computed.
BUSINESS OWNER(S) has pledged a 1996 Jeep and camera, lighting, and
office equipment with an approximate total market value of $63,500.00,
attached as Exhibit "E".
VII. DEFAULT
A failure to use the funds received for work agreed upon in this AGREEMENT, or
any violation of any of the terms of this AGREEMENT, shall constitute a breach of
the AGREEMENT. CDC staff shall send a letter to the borrower in the case of
default on the loan account or a breach of contract and shall require the deficiency,
default, or breach be cured within 30 days. If the breach, default, or deficiency is not
cured in this time frame, then the City Attorney's Office may, at its discretion, initiate
formal legal proceedings. The borrower will be subject to all remedies available by
law.
VIII. DELINQUENCY
1. In the event of delinquencies, the loan provider shall commence collection of the
delinquent account using CDC staff and/or City Attorney staff as deemed
appropriate.
IX. RECORDATION OF AGREEMENT
1. The BUSINESS OWNER(S) and the CDC agree that this AGREEMENT shall be
recorded in the Office of the County Recorder and shall constitute constructive
notice to the public that upon sale, hypothecation, assignment, lease, transfer or
alienation of the BUSINESS within five (5) years from the Completion Date of
the Improvements, the Loan shall be repayable with interest. After five (5) years
from the Completion Date of the improvements, the Loan shall have no further
force and effect upon the BUSINESS OWNER(s) and the CDC shall execute and
record a full reconveyance of the Loan any and all documents necessary to clear
title to the BUSINESS OWNER(S) upon the request of the BUSINESS
OWNER(S).
5
TIME OF PERFORMANCE
The contractor/ BUSINESS OWNER(s) shall complete the business improvements
within 4 MONTHS of the date of this AGREEMENT. The contractor shall submit
final bills and receipts to the Economic Development Division no later than 15 days
after the Completion Date.
XI. PROJECT FUNDING
The CDC has determined that this Project qualifies for Redevelopment Funds. The
CDC agrees to pay the Total Cost Expenditure not to exceed $15,000.
XII. NO AGENCY CREATED
Any Contractor, person, or otherwise hired by the BUSINESS OWNER(s) to
complete business improvements are not agents of the CDC, nor is there any
contractual relationship established between Contractor, person, or otherwise and the
CDC. Any provisions of this AGREEMENT that may appear to give the CDC any
right to direct the BUSINESS OWNER(s) concerning the details of the obligations
under this AGREEMENT, or to exercise any control over such obligations, shall
mean only that the BUSINESS OWNER(s) shall follow the direction of the CDC
concerning the end results of the obligations, consistent with the scope of work.
XIIl. OWNERSHIP OF DOCUMENTS
Once the BUSINESS OWNER(s) has received the Final Payment for the business
improvements, all documents, including but not limited to, designs, plans, bids, bills,
and receipts, prepared or acquired by the BUSINESS OWNER(s) pursuant to this
AGREEMENT (including any duplicate copies) shall be the property of the CDC.
The CDC's ownership entitlement arises upon payment or any partial payment of the
project. The CDC's ownership of these documents includes use of, reproduction or
reuse of, and all incidental rights.
XIV. HOLD HARMLESS
The BUSINESS OWNER(s) agrees to defend, indemnify, protect, and hold the CDC
and its agents, officers, and employees harmless from and against any and all claims
asserted or liability established for damages or injuries to any person or property.
This indemnification and hold harmless agreement includes claims made by the
BUSINESS OWNER's employees, agents, or officers, or judgments arising directly or
indirectly out of obligations or services under this AGREEMENT. Claims that arise
from, are connected with, or are caused or claimed to be caused by the acts or
omissions of the BUSINESS OWNER(s), and its agents, officers, or employees are
covered. Also covered are the claims or liabilities arising from, connected with,
caused by, or claimed to be caused by the active or passive negligent acts or
omissions of the CDC, its agents, officers, or employees which may be in
combination with the negligence of the BUSINESS OWNER(s), its employees, agents
6
or officers, or any third party. The BUSINESS OWNER's duty to defend, indemnify;
protect and hold harmless shall not include any claims or liabilities arising from the
established sole negligence or sole willful misconduct of the CDC, its agents, officers
or employees.
XV. DUTY TO DEFEND
The BUSINESS OWNER(s) further agree that the hold harmless agreement in
Section XI, and the duty to defend the CDC, require the BUSINESS OWNER(s) to
pay any costs the CDC incurs that are associated with enforcing the hold harmless
provisions, and defending any claims arising from obligations or services under this
AGREEMENT. If the CDC chooses at its own election to conduct its own defense,
participate in its own defense, or obtain independent legal counsel in defense of any
claim related to obligations or services under this AGREEMENT, the BUSINESS
OWNER(s) agrees to pay the reasonable value of attorneys' fees and all of the CDC's
costs.
XVI. COMPLIANCE WITH APPLICABLE LAWS
The BUSINESS OWNER(s) agrees to comply fully with all applicable Federal, State,
and local laws, ordinances, codes, regulations, permits, and design guidelines. The
CDC will not issue any payment to the BUSINESS OWNER(s) if the subject property
is in violation of any law, ordinance, code, regulation, permit, or design guideline.
The BUSINESS OWNER(s) assumes responsibility for any costs arising from repairs
or alterations caused by any violation of any law, ordinance, code, regulation, permit,
or design guideline.
XVII. WAGE RATES
Tax increment funds are used for the CBL Program. Whenever federal and/or local
funds are used, either in whole or in part, federal Davis -Bacon and/or state
prevailing wages must be paid for all onsite labor relating to the project. Any
improvements made to the business or property in addition to the CBL project must
be completed prior to starting, or at the completion of the CBL project and is at the
expense of the business/property owner. If the work is done simultaneously, then
prevailing wage must be paid on the entire project, including interior renovations.
For more information, log onto: www.wdol.gov (Davis Bacon website) and/or
www.dir.ca.gov/DLSR/statistics research.html (California Department of Industrial
Relations, Division of Labor and Statistics, information on prevailing wage).
Alteration projects under $15,000 are excluded from the prevailing wage requirement
under the City of National City's labor compliance program. Labor Code section
1771.5 allows the City of National City to exclude prevailing wage requirements
for alteration projects of $15,000 or less.
XVIII. NON -ASSIGNMENT
The BUSINESS OWNER shall not assign the obligations under this AGREEMENT, nor
any monies due or to become due, without the CDC's prior written approval. Any
assignment in violation of this paragraph is grounds for immediate termination of this
7
AGREEMENT, at the sole discretion of the CDC. In no event shall any putative
assignment create a contractual relationship between the CDC and any putative assignee.
XIX. NO WAIVER
Any failure by the CDC to insist upon the strict performance by the other of any
covenant, term, or condition of this AGREEMENT, or any failure to exercise any
right or remedy consequent upon a breach of any covenant, term, or condition of this
AGREEMENT, shall not constitute a waiver of any breach or of such covenant, term
or condition. No waiver of any breach shall affect or alter this AGREEMENT, and
each and every covenant, condition, and term hereof shall continue in full force and
effect to any existing or subsequent breach.
XX. ORAL REPRESENTATIONS
This AGREEMENT and the exhibits and references incorporated into this
AGREEMENT fully express all understandings of the parties concerning the matters
covered in this AGREEMENT. No change, alteration, or modification of the terms of
this AGREEMENT, and no verbal understanding of the parties, their officers, agents,
or employees shall be valid unless made in the form of a written change agreed to in
writing by both parties or an amendment to this AGREEMENT agreed to by both
Parties in writing. All prior negotiations and AGREEMENTs are merged into this
AGREEMENT.
XXI. CHANGES OR AMENDMENTS TO AGREEMENT
All amendments to this AGREEMENT shall he in writing signed by the BUSINESS
OWNER(s) and the CDC.
This AGREEMENT is executed by The Community Development Commission (CDC) of the
City of National City acting by and through its Commissioners, and by the BUSINESS
OWNER(s).
Dated this day of `l`)"" e• , 2008.
Dated this 5 day of June,
COMMUNITY DEVELOPMENT
COMMISSION
Braun ecutive Director
, 2008. MANUEL CAVADA doing business as
CREATIVE IMAGES PHOTOGRAPHY
STUDIO:
8
By \r\mtck,Q
APPROVED AS TO FORM:
GEGE SE; City Att. -�i
By!!! , ►!:�� �I�� �%i'. /�r��i
Claudia Iacitua Sill
Senior A 'istant City Attorney
Manuel Cavada, Sole Proprietor
EXHIBITS:
A —Certificate of Ownership
B - Scope of Work and Lowest Project Bids
C — Report to CDC
D - Business Insurance
E — Loan Collateral
F — Promissory Note
G — Security Agreement
9
CALIFORNIA ALL-PURPOSE ACKOWLEDGEMENT
State of California
County of San Diego
On this day June 5th, 2008, before me, Ana Miriam C. Dickens, a Notary Public,
personally appeared: Manuel Cavada who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s)pare subscribed to the within
instrument and acknowledged to me that rhe/they executed the same in
is er/their authorized capacity(ies), and that by /her/their signature ) on the
instrument the person6 or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the Sate of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
A(
iriam C. Dickens
otary Public
ANA MIRIAM CASAS DICKENS
Commission # 1513970
Notary Public - California
San Diego County [
My Comm. Expires Sep 17. 2008
COMMUNITY DEVELOPMENT COMMISSION of the CITY OF NATIONAL CITY
COMMUNITY BENEFIT LOAN PROGRAM
CERTIFICATION OF OWNERSHIP! C^"" '"TT T^ rMPRO �"ter `r r o(V
`bl\vLi\ a z�tp-7L1\1LLr=T -
I/We L/ 11) I'Yli '.
(list all owners)
("Property Owner") hereby certify that
is/are the Owner(s) of record of certain commercial real property
commonly known as _939 A Ave. d13!"' (address), National
City, California, 91950.
As Property Owner(s), we further certify that to the best of our knowledge, there arc no
current code enforcement actions pending against the real property described above.
I/We declare under penalty of perjury pursuant to the laws of the State of California that
the foregoing is true and correct.
Executed this 8th day of May , 2008, in National City, California.
By
(Print ame)
EXHIBIT "A"
Community thanACCocations
Studio Equipment andServices
Note * professional" equipment at this fever are priced at world market value/same price
1. Large format camera, used to produce quality Large photographic images.
Vendor Georges Camera San Diego
Item Nikon D3 $5000.00 $5000.00
2. Studio Lighting / Photo Pro
Photo Pro $4039.55 $4039.55
.3. Video monitors and digital" equipment for safes presentations
Vendor Try's fEfectronics
Item Samsung 1080p ice with dvd prayer
$2574.43
Nelsons Photo San Diego
Best Buy
$2574.43
4. We6site Design c _7fosting Services
Vendor 7oftec 9Kedut Pozo's Graphics
Wed design $3000.00 $3500.00
5. Studio Signage / complying with %ationaf City ordinances
Vendor The Sign 9Kaker The Sign Shop
$300.00 $340.00
Sub Total. of Purchases Camera
Studio Lights
Monitor c DUD
4Ne6site Design
Sign
$5000.00
$4039.00
$2575.00
$3000.00
$ 300.00
Grand -Total" $14, 914. 00
(4)
Exhibit "B"
Relocation Plan
New Location: 'The new Location of Creative Images Photography studio is
within NationalCity's 12edevetopment ProjectArea.
Lease agreement:
OutdoorSignage:
Vocation expenses:
Location time line:
Wove in date:
939AAve. National- City, CA 91950
A Five year tease agreement has been signed 6y the owner and
wi1Lbe managed 6y Janice Martinette.'Fie terms of the tease has
an option to continue after 5 years. The monthly Lease is $1800.00
beginning on May 1, 2008 and ending May 1, 2013. * Copy of
lease enclosed
An outdoor sign wiLLhe placed and wilt comply with the
National CityJLeritage cPark's sign ordinance.
'The cost of relocation of equipment andfurniture wiLL6e
the responsibility of Creative Images.
Tainting and reconstruction began onApritl5tfi, 2008 with a
completion date of May 15th 2008.
'The move in date is June 1, 2008
Marketing gun
New Service A: Family (Portraiture
Because of the fimitedspace previously available to Creative
Images at KimbalT.Ifouse, famit portraiture was not offered to
the families of the Sweetwater high School -District. 'Family style
photography requires a Large photo room and an additional room
for presentation and safes. The new Location will arrow ample
space to provide these profitable services.
Market Flan: In compliance with the Community (Benefit Loan program
objectives, Creative Images wiClworkwith the SweetwaterlLigh
SchoofASB and promote business opportunities. 'Under the
contract with the school district, Creative Images has the
availability of 1500 prospective families. The Sweetwater(figh
SchooLASB will assist in the promotion of the family portrait
safe. The ASB wilt benefit by receiving a commission from the
portrait program. In action to the high school -pan, several focal -
businesses have agreed to cross market each other's services.
This effort wiflfurther enhance the promotion of the
redevelopment area.
Workplan: (Promote the Family Portrait Program by:
• (Designing a We6site / brochures /direct mailing
• Purchasing studio righting equipment, posing
furniture, props, and portrait backgrounds..
• Purchasing video monitors and digital- equipment
for making sales presentations.
• Purchase Large format camera
Benefits:
The exposure of 1500 prospective families to the heritage Park
area will- definitely benefit the LocaLmerchants with the
opportunity to promote their services. With the infCuxof the new
families, we believe that it will encourage the business in area to
improve their appearance of the Redevelopment Project Area.
(2)
New Service B:
Workq'lan:
Marketing Plan continued
Weddings and Quinceaneras
Creative Images will now be a6Ce to offer an expansion of
photography services throughout the South (Bay area. Weddings
and Quinceaneras are a profitable market. The expansion of
services will draw more families that five outside the National -
City area to Heritage Square.
To approach allbusiness in the South (Bay area that offer services
to the Quinceanera and Wedding couples with a cross marketing
plan. Each bridal - shop, florist, baker of wedding cakes, limousine
service, tuxedo shop and photo studio would promote each other.
Market Conclusion: After much research and review, the adding of a Matting and
Framing Department within Creative Images has been temporally
postponed:
The conclusions are as follows:
1. (Because of the unfamiliarity's of production, it would take
6 months to a year in order to get a new department running
and staff trained In contrast; the Family (Portrait (Program
and Wedding / Quinceanera services can start immediately.
2. With the increase in volume of portrait customers, the
matting andframing department wou&-f not get the full
attention requiredin becoming successful.
3. The volume of families seeking photography services in
Heritage Square outnumbers the persons requiring matting
andframing. 'Thus; following the objectives of promoting
business in the redevelopment area.
4. The cost to develop the Matting and Framing Department
would require more than 75% of the $15,000 community loan.
The monies would better spend on what Creative Images does
best, and that's photography.
(3)
7 ASSOCIATION
OF REALTORS®
1-11Ga711JG11 1 Iiil_ GG/iJG via
MONTH -TO -MONTH RENTAL AGREEMENT
(C.A.R. Form LR, Revised 1106)
The r^pyiiC . h., laof te ^j{g , States ;T frI CocI,2I!... .c.
,���:0^. .tG 1 `!l�• `�. 11 x poruol t1e.eon by (.` ma., v VI any Cider
CALIFORNIA ASSOCIATIY' OF REALTOG -'. INC. ALL NIC.FITIL'Fs-SAVED.
LR REVISED 1/06 (PAGE 1 OF 6) Print Date BDC Feb 07
("Landlord") and
("Tenant") agree as follows:
1. PROPERTY:
A. Landlord rents radenapt and. Tenant rents ,qm Landlord, the real property and improvements described as:
F� ✓:"I V"' 1T' ' 1q�/ 4,` ( ("Premises").
°.B. The Premises are for the sole use as.ar-gvrspnal residen by the foUdwingpamed person(s) only:
C. The following personal property, maintained pursuant to paragraph 11, is included: .-<-,fit --
or ❑ (if checked) the personal property on the attached addendum.
2. TERM: The term begins on (date) ("Commencement Date"), (Check A or B):
❑ A. Month -to -Month: and continues as a month -to -month tenancy. Tenant may terminate the tenancy by giving written notice
at least 30 days' prior to the intended termination date. Landlord may terminate the tenancy by giving written notice as
provided by law. Such notices may be given.on any date, m
B. Lease: and shall terminate on (date) 5' ' "' U `. f•' S at ❑ AM/❑ PM.
Tenant shall vacate the Premises upon termination of the Agreement, unless) Landlord and Tenant have extended this
agreement in writing or signed a new agreement; (ii) mandated by local rent control law; or (iii) Landlord accepts Rent from
Tenant (other than past due Rent), in which case a month -to -month tenancy shall be created which either party may
terminate as specified in paragraph 2A. Rent shall be at a rate agreed to by Landlord and Tenant, or as allowed by law. All
other terms and conditions of this Agreement shall remain in full force and effect.
3. RENT: "Rent" shall mean all monetary eblidations,ofTenant to Landlord under the terms of the Agreement, except security deposit.
A. Tenant agrees to pay $ i',`-- C .7 e per month for the term of the Agreement.
B. Rent is payable in advance on the 1st (or ❑ ) day of each calendar month, and is delinquent on the next day.
C. If Commencement Date falls on any day other than the day Rent is payable under paragraph 3B, and Tenant has paid one full
month's Rent in advance of Commencement Date, Rent for the second calendar month shall be prorated based on a 30-day
period. -�,
D. PAYMENT: Rent shall be paid by.Ii personal check, 0 money order;{ cashier's check, or ❑ other / to (name)
t ; '7 ‹. :. ° 'VI r, 3'.,-) ( (phone) 1 , ,, r y- c,; at (address)
u, t fix,' ..- -t' ; 4, t -' 2 \.,F Ji.. (.4,-, e < ,r LJ (or at any other location
subsequeptjy sp c1f ed by La dlwd�.in writing to Tenant between the hours( of Li F' `,and ` 9'" on the following days
;' f'''t�i �t''11 1 s-- . If any payment is returned for non -sufficient funds ("NSF") or
because tenant stops payment, then, after that: (i) Landlord may, in writing, require Tenant to pay Rent in cash for three months
and (ii) all future Rent shall be paid by ❑ money order, or ❑ cashier's check.
4. SECURITY DEPOSIT:
A. Tenant agrees to pay $ ` '-' (� s` ✓ as a security deposit. Security deposit will be
❑ transferred to and held by the Owner of the Premises, or ❑ held in Owner's Broker's trust account.
B. All or any portion of the security deposit may be used, as reasonably necessary, to: (i) cure Tenant's default in payment of Rent (which
includes Late Charges, NSF fees or other sums due); (ii) repair damage, excluding ordinary wear and tear, caused by Tenant or by a
guest or licensee of Tenant; (iii) clean Premises, if necessary, upon termination of the tenancy; and (iv) replace or return personal
property or appurtenances. SECURITY DEPOSIT SHALL NOT BE USED BY TENANT IN LIEU OF PAYMENT OF LAST
MONTH'S RENT. If all or any portion of the security deposit is used during the tenancy, Tenant agrees to reinstate the total security
deposit within five days after written notice is delivered to Tenant Within 21 days after Tenant vacates the Premises, Landlord shall:
(1) furnish Tenant an itemized statement indicating the amount of any security deposit received and the basis for its
disposition and supporting documentation as required by California Civil Code § 1950.5(g); and(2) return any remaining
portion of the security deposit to Tenant.
C. Security deposit will not be returned until all Tenants have vacated the Premises and all keys returned. Any security
deposit returned by check shall be made out to all Tenants named on this Agreement, or as-subsegUently modified.
D. No interest will be paid on security deposit unless required by local law. -
E. If the security deposit is held by Owner, Tenant agrees not to hold Broker responsible for its return. If the security deposit is
held in Owner's Broker's trust account, and Broker's authority is terminated before expiration of this Agreement, and security
deposit is released to someone other than Tenant, then Broker shall notify Tenant, in writing, where and to whom security
deposit has been released. Once Tenant has been provided such notice, Tenant agrees not to hold Broker responsible for the
security deposit.
5. MOVE -IN COSTS RECEIVED/DUE: Move -in funds made payable to
shall be paid by ❑ personal check, ❑ money order, or ❑ cashier's check.
Category
Total Due
Payment Received
Balance Due
Date Due
Rent from
"
A
r
yr: )
i_>
_. e
�-' � �— �:
-
•
to I
(date)
'Security Deposit
' s' (,
rY
Other
Other
Total
[�
*The maximum amount Landlord may receive as security deposit, however designated, cannot exc
unfurnished premises, or three months' Rent for furnished premises. •
)( )
)(
Tenant's Initials
Landlord's Initials(
Reviewed by Date
two months' Rent for
EQUAL MOUSING
OPPORYVNITY
... . r •••• ww . .A. a..., • -.•A uA1 .T. . P.r. .Tl . -Af u—r. Im..T /r i1 INA Ar •/lr rl
Property Address:
ILO la AA,
6. LATE CHARGE; RETURNED CHECKS:
A. Tenant acknowledges either late payment of Rent or issuance of a returned check may cause Landlord to incur costs and
expenses, the exact amounts of which are extremely difficult and impractical to determine. These costs may include, but are
not limited to, processing, enforcement and accounting expenses, and late charges imposed on Landlord. If any installment of
Rent due from Tenant is not received by Landlord within 5 (or 0 ) calendar days after the date due, or if a check is
returned, Tenant shall pay to Landlord, respectively, an additional sum of $ or % of the Rent due as a
Late Charge and $25.00 as a NSF fee for the first returned check and $35.00 as a NSF fee for each additional returned check,
either or both of which shall be deemed additional Rent. i. S() Q,;,, ,-, C. '?0fc J „ il, y.' 1 : ("'''''''.7-'7.'
B. Landlord and Tenant agree that these charges represent a fair and reasonable'6stimafe of the costs Landlord may incur by
reason of Tenant's late or NSF payment. Any Late Charge or NSF fee due shall be paid with the current installment of Rent.
Landlord's acceptance of any Late Charge or NSF fee shall not constitute a waiver as to any default of Tenant. Landlord's right
to collect a Late Charge or NSF fee shall not be deemed an extension of the date Rent is due under paragraph 3 or prevent
Landlord from exercising any other rights and remedies under this Agreement and as provided by law.
7. PARKING: (Check A or B) e ` �;
AA. Parking is permitted as follows: . f ' , / i(, , r tr ki , i
The right to parking ❑ is ❑ is not included in the Rent charged pursuant to paragraph 3. If not included in the Rent, the
parking rental fee shall be an additional $ per month. Parking space(s) are to be used for parking
properly licensed and operable motor vehicles, except for trailers, boats, campers, buses or trucks (other than pick-up
trucks). Tenant shall park in assigned space(s) only. Parking space(s) are to be kept clean. Vehicles leaking oil, gas or other
motor vehicle fluids shall not be parked on the Premises. Mechanical work or storage of inoperable vehicles is not permitted
in parking space(s) or elsewhere on the Premises.
OR ❑ B. Parking is not permitted on the Premises.
8. STORAGE: (Check A or B) -,
❑ A. Storage is permitted as follows:_; r _ s t f=
The right to storage space ❑ is, ❑ is not, included in the Rent charged pursuant to paragraph 3. If not included in the Rent,
storage space fee shall be an additional $ per month. Tenant shall store only personal property
Tenant owns, and shall not store property claimed by another or in which another has any right, title or interest. Tenant shall
not store any improperly packaged food or perishable goods, flammable materials, explosives, hazardous waste or other
inherently dangerous, material, or illegal substances.
OR ❑ B. Storage is not permitted on the Premises. P1-- t :-1 ff • i� e-
9. UTILITIES: Tenant agrees to payfor all utilities and services, and the following charges w kA "°- F(` j
g except , which shall be paid for by Landlord. If any utilities are hot separately metered(!`;,
Tenant shall pay Tenant's proportional share, as reasonably determined and directed by Landlord. If utilities are separately metered, u,,,q'
Tenant shall place utilities in Tenant's name as of the Commencement Date. Landlord is only responsible for installing and ";
maintaining one usable telephone jack and one telephone line to the Premises. Tenant shall pay any cost for conversion from
existing utilities service provider.
10. CONDITION OF PREMISES: Tenant has examined Premises and, if any, all furniture, furnishings, appliances, landscaping and c
fixtures, including smoke detector(s).
,check all that apply:)
„4l A. Tenant acknowledges these items are clean and in operable condition ;with the following exceptions: ii , t
_ `v s
_- -,•, y .? ;fr i11 {s,,, y r if,- t 4 3 C J.-0Al: ,.,- I .4 ti_ ? t_;,, 0 U'iL b `- .
❑ B. Tenant's acknowledgment of the condition of these items is contained in an attached statement of condition (C.A.R. Form
MIMO).
❑ C. Tenant will provide Landlord a list of items that are damaged or not in operable condition within 3 (or ❑ J days after
Commencement Date, not as a contingency of this Agreement but rather as an acknowledgment of the condition of the
Premises.
Li D. Other:
11. MAINTENANCE:
A. Tenant shall properly use, operate and safeguard Premises, including if applicable, any landscaping, furniture, furnishings and
appliances, and all mechanical, electrical, gas and plumbing fixtures, and keep them and the Premises clean, sanitary and well
ventilated. Tenant shall be responsible for checking and maintaining all smoke detectors and any additional phone lines beyond
the one line and jack that Landlord shall provide and maintain. Tenant shall immediately notify Landlord, in writing, of any
problem, malfunction or damage. Tenant shall be charged for all repairs or replacements caused by Tenant, pets, guests or
licensees of Tenant, excluding ordinary wear and tear. Tenant shall be charged for all damage to Premises as a result of failure
to report a problem in a timely manner. Tenant shall be charged for repair of drain blockages or stoppages, unless caused by
defective ptumbirf'g parts or tree roots invading sewer lines.
B. ❑ Landlord Tenant shall water the garden, landscaping, trees and shrubs, except:
ff : \ eft (
C. ❑ Landlord III l rant shall tmaintain the garden, landscaping,trees ancf shrubs, except:
D. ❑ Landlord ❑ Tenant shall maintain
E. Tenant's failure to maintain any item for which Tenant is responsible shall give Landlord the right to hire someone to perform
such maintenance and charge Tenant to cover the cost of such maintenance.
F. The following items of persor}al..property are included in the Premises without warranty and Landlord will not maintain, repair or
replace them: < i--; )
Tenant's Initials ( y "° )(
Landlord's Initials( `+ �, )(
..;.O.,p!
LR'REVISED 1/06 (PAGE 2' OF 6)
Reviewed by
Date
EQUALX06111G
UPPOFTIMITT
Property Address: Date:
12. NEIGHBORHOOD CONDITIONS: Tenant is advised to satisfy him or herself as to neighborhood or area conditions, including
schools, proximity and adequacy of law enforcement, crime statistics, proximity of registered felons or offenders, fire protection,
other governmental services, availability, adequacy and cost of any speed -wired, wireless Internet connections or other
telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities,
existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or
odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, cemeteries, facilities and condition
of common areas, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements
and preferences of Tenant.
13. PETS: Unless otherwise provided in California Civil Code § 54.2, no wnimal or pet shall be kept on or about the Premises without
Landlord's prior written consent, except:
14. RULES/REGULATIONS:
A. Tenant agrees to comply with all Landlord rules and regulations that are at any time posted on the Premises or delivered to
Tenant. Tenant shall not, and shall ensure that guests and licensees of Tenant shall not, disturb, annoy, endanger or interfere
with other tenants of the building or neighbors, or use the Premises for any unlawful purposes, including, but not limited to,
using, manufacturing, selling, storing or transporting illicit drugs or other contraband, or violate any law or ordinance, or commit
a waste or nuisance on or about the Premises.
B. (If applicable, check one)
❑ 1. Landlord shall provide Tenant with a copy of the rules and regulations within days
or
OR El 2. Tenant has been provided with, and acknowledges receipt of, a copy of the rules and regulations.
15. ❑ (If checked) CONDOMINIUM;PLANNED UNIT DEVELOPMENT: nr
A. The Premises is a unit in a condominium, planned unit develoRm ntJ cor tmkin interest subdivision or other development
governed by a homeowners' association ("HOA"). The name ofth CIA is . Tenant agrees to comply
with all HOA covenants, conditions and restrictions, bylaws, rules artd regulationd andldecisions. Landlord shall provide Tenant copies
of rules and regulations, if any. Tenant shall reimburse Landlord for any fines or charges imposed by HOA or other authorities, due
to any violation by Tenant, or the guests or licensees of Tenant.
B. (Check one)
❑ 1. Landlord shall provide Tenant with a copy of the HOA rules and regulations within days
or
OR ❑ 2. Tenant has been provided with, and acknowledges receipt of, a copy of the HOA rules and regulations.
16. ALTERATIONS; REPAIRS: Unless otherwise specified by law or paragraph 27C, without Landlord's prior written consent, (I) Tenant
shall not make any repairs, alterations or improvements in or about the Premises including: painting, wallpapering, adding or
changing locks, installing antenna or satellite dish(es), placing signs, displays or exhibits, or using screws, fastening devices, large
nails or adhesive materials; (it) Landlord shall not be responsible for the costs of alterations or repairs made by Tenant; (iii) Tenant
shall not deduct from Rent the costs of any repairs, alterations or improvements; and (iv) any deduction made by Tenant shall be
considered unpaid Rent.
17. KEYS; LOCKS:
A. Tenant acknowledges receipt of (or Tenant will receive ❑ prior to the Commencement Date, or ❑ ):
❑ key(s) to Premises, ❑ remote control device(s) for garage door/gate opener(s),
❑ key(s) to mailbox, ❑
❑ key(s) to common area(s), ❑
B. Tenant acknowledges that locks to the Premises ❑ have, ❑ have not, been re -keyed.
C. If Tenant re -keys existing locks or opening devices, Tenant shall immediately deliver copies of all keys to Landlord. Tenant shall
pay all costs and charges related to loss of any keys or opening devices. Tenant may not remove locks, even if installed by Tenant.
18. ENTRY:
A. Tenant shall make Premises available to Landlord or Landlord's representative for the purpose of entering to make necessary or
agreed repairs, decorations, alterations, or improvements, or to supply necessary or agreed services, or to show Premises to
prospective or actual purchasers, tenants, mortgagees, lenders, appraisers, or contractors.
B. Landlord and Tenant agree that 24-hour written notice shall be reasonable and sufficient notice, except as follows. 48-hour
written notice is required to conduct an inspection of the Premises prior to the Tenant moving out, unless the Tenant waives the
right to such notice. Notice may be given orally to show the Premises to actual or prospective purchasers provided Tenant has
been notified in writing within 120 days preceding the oral notice that the Premises are for sale and that oral notice may be
given to show the Premises. No notice is required: (I) to enter in case of an emergency; (ii) if the Tenant is present and consents
at the time of entry or (iii) if the Tenant has abandoned or surrendered the Premises. No written notice is required if Landlord
and Tenant orally agree to an entry for agreed services or repairs if the date and time of entry are within one week of the oral
agreement.
C. ❑ (If checked) Tenant authorizes the use of a keysafe/lockbox to allow entry into the Premises and agrees to sign a
keysafe/lockbox addendum (C.A.R. Form KLA).
19. SIGNS: Tenant authorizes Landlord to place FOR SALE/LEASE signs on the Premises.
20. ASSIGNMENT; SUBLETTING: Tenant shall not sublet all or any part of Premises, or assign or transfer this Agreement or any
interest in it, without Landlord's prior written consent. Unless such consent is obtained, any assignment, transfer or subletting of
Premises or this Agreement or tenancy, by voluntary act of Tenant, operation of law or otherwise, shall, at the option of Landlord,
terminate this Agreement. Any proposed assignee, transferee or sublessee shall submit to Landlord an application and credit
information for Landlord's approval and, if approved, sign a separate written agreement with Landlord and Tenant. Landlord's
consent to any one assignment, transfer or sublease, shall not be construed as consent to any subsequent assignment, transfer
or sublease and does not release Tenant of Tenant's obligations under this Agreement.
21. JOINT AND INDIVIDUAL OBLIGATIONS: If there is more than one Tenant, each one shall be individually and completely
responsible for the performance of all obligations of Tenant under this Agreement, jointly with every other Tenant, and individually,
whether or not in possession.
>Jr_c;h J 1L'i:10S .__�:�f �ASL%lUi' ION Of= r- AL OR .,..
LR REVISED 1/06 (PAGE 3 OF 6)
Tenant's Initials (' )(
Landlord's Initials( )(
Reviewed by J Date
EQUAL ROUSING
OPPORTUNITY
and Tenant acknowledges receipt of the disclosures on the attached form (t;.H.n. romi r LUG anu a Itu , iNy appivvc.. IOG4
pamphlet.
23. ❑ MILITARY ORDNANCE DISCLOSURE: (If applicable and known to Landlord) Premises is located within one mile of an area
once used for military training, and may contain potentially explosive munitions.
24. 0 PERIODIC PEST CONTROL: Landlord has entered into a contract for periodic pest control treatment of the Premises and shall
give Tenant a copy of the notice originally given to Landlord by the pest control company.
25. ❑ METHAMPHETAMINE CONTAMINATION: Prior to signing this Agreement, Landlord has given Tenant a notice that a health
official has issued an order prohibiting occupancy of the property because of methamphetamine contamination. A copy of the
notice and order are attached.
26. DATABASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex
offenders is made available to the public via an Internet Web site maintained by the Department of Justice at
www.meganslaw.ca.gov. Depending on art offender's criminal history, this information will include either the address at which the
offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Landlord nor Brokers, if any, are
required to check this website. If Tenant wants further information, Tenant should obtain information directly from this website.)
27. POSSESSION:
A. Tenant is not in possession of the premises. If Landlord is unable to deliver possession of Premises on Commencement Date,
such Date shall be extended to the date on which possession is made available to Tenant. If Landlord is unable to deliver
possession within 5 (or ❑ ) calendar days after agreed Commencement Date, Tenant may terminate this Agreement
by giving written notice to Landlord, and shall be refunded all Rent and security deposit paid. Possession is deemed terminated
when Tenant has returned all keys to the Premises to Landlord.
B. ❑ Tenant is already in possession of the Premises.
28. TENANT'S OBLIGATIONS UPON VACATING PREMISES:
A. Upon termination of the Agreement, Tenant shall: (i) give Landlord all copies of all keys or opening devices to Premises,
including any common areas; (ii) vacate and surrender Premises to Landlord, empty of all persons; (iii) vacate any/all
parking and/or storage space; (iv) clean and deliver Premises, as specified in paragraph C below, to Landlord in the same
condition as referenced in paragraph 10; (v) remove all debris; (vi) give written notice to Landlord of Tenant's forwarding
address; and (vii)
B. All alterations/improvements made by or caused to be made by Tenant, with or without Landlord's consent, become the
property of Landlord upon termination. Landlord may charge Tenant for restoration of the Premises to the condition it was
in prior to any alterations/improvements.
C. Right to Pre -Move -Out Inspection and Repairs as follows: (i) After giving or receiving notice of termination of a tenancy
(C.A.R. Form NTT), or before the end of a lease, Tenant has the right to request that an inspection of the Premises take place
prior to termination of the lease or rental (C.A.R. Form NRI). If Tenant requests such an inspection, Tenant shall be given an
opportunity to remedy identified deficiencies prior to termination, consistent with the terms of this Agreement. (ii) Any repairs or
alterations made to the Premises as a result of this inspection (collectively, "Repairs") shall be made at Tenant's expense. Repairs
may be performed by Tenant or through others, who have adequate insurance and licenses and are approved by Landlord. The
work shall comply with applicable law, including governmental permit, inspection and approval requirements. Repairs shall be
performed in a good, skillful manner with materials of quality and appearance comparable to existing materials. It is understood
that exact restoration of appearance or cosmetic items following all Repairs may not be possible. (iii) Tenant shall: (a) obtain
receipts for Repairs performed by others; (b) prepare a written statement indicating the Repairs performed by Tenant and the
date of such Repairs; and (c) provide copies of receipts and statements to Landlord prior to termination. Paragraph 28C does
not apply when the tenancy is terminated pursuant to California Code of Civil Procedure § 1161(2), (3) or (4).
29. BREACH OF CONTRACT; EARLY TERMINATION: In addition to any obligations established by paragraph 28, in the event of
termination by Tenant prior to completion of the original term of the Agreement, Tenant shall also be responsible for lost Rent, rental
commissions, advertising expenses and painting costs necessary to ready Premises for re -rental. Landlord may withhold any such
amounts from Tenant's security deposit.
30. TEMPORARY RELOCATION: Subject to local law, Tenant agrees, upon demand of Landlord, to temporarily vacate Premises for a
reasonable period, to allow for fumigation (or other methods) to control wood destroying pests or organisms, or other repairs to
Premises, Tenant agrees to comply with all instructions and requirements necessary to prepare Premises to accommodate pest
control, fumigation or other work, including bagging or storage of food and medicine, and removal of perishables and valuables.
Tenant shall only be entitled to a credit of Rent equal to the per diem Rent for the period of time Tenant is required to vacate Premises.
31. DAMAGE TO PREMISES: If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake,
accident or other casualty that render Premises totally or partially uninhabitable, either Landlord or Tenant may terminate this
Agreement by giving the other written notice. Rent shall be abated as of the date Premises become totally or partially uninhabitable.
The abated amount shall be the current monthly Rent prorated on a 30-day period. If the Agreement is not terminated, Landlord shall
promptly repair the damage, and Rent shall be reduced based on the extent to which the damage interferes with Tenant's reasonable
use of Premises. If damage occurs as a result of an act of Tenant or Tenant's guests, only Landlord shall have the right of termination,
and no reduction in Rent shall be made.
32. INSURANCE: Tenant's or guest's personal property and vehicles are not insured by Landlord, manager or, if applicable, ROA,
against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause. Tenant
is advised to carry Tenant's own insurance (renter's insurance) to protect Tenant from any such loss or damage. Tenant
shall comply with any requirement imposed on Tenant by Landlord's insurer to avoid: (i) an increase in Landlord's insurance
premium (or Tenant shall pay for the increase in premium); or (ii) loss of insurance.
LR REVISED 1/06 (PAGE 4 OF 6)
Tenant's Initials ( )(
Landlord's Initials( )(
Reviewed by i a date
EQUAL ROUSING
OPPORTUNITY
RESIDENTIAL LEASE OR MONTH -TO -MONTH RENTAL AGREEMENT (LR PAGE 4 OF 6)
33. WATERBEDS: Tenant shall not use or have waterbeds on the Premises unless: (i) Tenant obtains a valid waterbed insurance policy;
(ii) Tenant increases the security deposit in an amount equal to one-half of one month's Rent; and (iii) the bed conforms to the floor
load capacity of Premises.
34. WAIVER: The waiver of any breach shall not be construed as a continuing waiver of the same or any subsequent breach.
35. NOTICE: Notices may be served at the following address, or at any other locatiogrsubsequently1iesignated
Landlord: i"—",,
Tenant: /•
36. TENANT ESTOPP 'L CERTIFICATE: l'ehant shall execute and return a tenant estoppel' certificate delivered to Tenant by
Landlord or Landlord's agent within 3 days after its receipt. Failure to comply with this requirement shall be deemed Tenant's
acknowledgment that the tenant estoppel certificate is true and correct, and may be relied upon by a lender or purchaser.
37. TENANT REPRESENTATIONS; CREDIT: Tenant warrants that all statements in Tenant's rental application are accurate. Tenant
authorizes Landlord and Broker(s) to obtain Tenant's credit report periodically during the tenancy in connection with the modification
or enforcement of this Agreement. Landlord may cancel this Agreement: (i) before occupancy begins; (ii) upon disapproval of the
credit report(s); or (iii) at any time, upon discovering that information in Tenant's application is false. A negative credit report
reflecting on Tenant's record may be submitted to a credit reporting agency if Tenant fails to fulfill the terms of payment
and other obligations under this Agreement.
38. MEDIATION:
A. Consistent with paragraphs B and C below, Landlord and Tenant agree to mediate any dispute or claim arising between them
out of this Agreement, or any resulting transaction, before resorting to court action. Mediation fees, if any, shall be divided
equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party commences an action
without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that
party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action.
B. The following matters are excluded from mediation: (i) an unlawful detainer action; (ii) the filing or enforcement of a mechanic's
lien; and (iii) any matter within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable
the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall
not constitute a waiver of the mediation provision.
C. Landlord and Tenant agree to mediate disputes or claims involving Listing Agent, Leasing Agent or property manager ("Broker"),
provided Broker shall have agreed to such mediation prior to, or within a reasonable time after, the dispute or claim is presented
to such Broker. Any election by Broker to participate in mediation shall not result in Broker being deemed a party to this
Agreement.
39. ATTORNEY FEES: In any action or proceeding arising out of this Agreement, the prevailing party between Landlord and Tenant
shall be entitled to reasonable attorney fees and costs, except as provided in paragraph 38A.
40. C.A.R. FORM: C.A.R. Form means the specific form referenced or another comparable from agreed to by the parties.
41. OTHER TERMS AND CONDITIONS;SUPPLEMENTS: ❑ Interpreter/Translator Agreement (C.A.R. Form ITA);
0 Keysafe/Lockbox Addendum (C.A.R. Form KLA); LI Lead -Based Paint and Lead -Based Paint Hazards Disclosure (C.A.R. Form FLD)
The following ATTACHED supplements are incorporated in this Agreement:
42. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the parties are
incorporated in this Agreement. Its terms are intended by the parties as a final, complete and exclusive expression of their Agreement
with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement.
If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and
effect. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed except in writing. This
Agreement is subject to California landlord -tenant law and shall incorporate all changes required by amendment or successors to such
law. This Agreement and any supplement, addendum or modification, including any copy, may be signed in two or more counterparts,
all of which shall constitute one and the same writing.
43. AGENCY:
A. CONFIRMATION: The following agency relationship(s) are hereby confirmed for this transaction:
Listing Agent: (Print firm name) is the agent of
(check one): ❑ the Landlord exclusively;. or ❑ both the Landlord and Tenant.
Leasing Agent: (Print firm name) (if not same as Listing Agent)
is the agent of (check one): D the Tenanf exclusively; or C7 the Landlord exclusively; or D both the Tenant and Landlord.
B. DISCLOSURE: ❑ Of checked): The term of this lease exceeds one year. A disclosure regarding real estate agency
relationships (C.A.R. Form AD) has been provided to Landlord and Tenant, who each acknowledge its receipt.
44. ❑ TENANT COMPENSATION TO BROKER: Upon execution of this Agreement, Tenant agrees to pay compensation to Broker
as specified in a separate written agreement between Tenant and Broker.
45. ❑ INTERPRETER/TRANSLATOR: The terms of this Agreement have been interpreted for Tenant into the following language:
. Landlord and Tenant acknowledge receipt of the attached interpretor/translator
agreement (C.A.R. Form ITA). Tenant's Initials ( )(
Landlord's Initials( `1 )(
Reviewed by 1 Date
LR REVISED 1/06 (PAGE 5 OF 6)
EQUAL HOUSING
OPPORTUNITY
e•• a esen, nnu•r, a TA as/surfrlra1TA r A ,SnGGAAG.rT /a f] nAft C !1G C\
Premises:' Date:
46. FOREIGN LANGUAGE NEGOTIATION: If this Agreement has been negotiated by Landlord and Tenant primarily in Spanish,
Chinese, Tagalog, Korean or Vietnamese. Pursuant to the California Civil Code Tenant shall be provided a translation of this
Agreement inthe language used for the negotiation. •
47. OWNER COMPENSATION TO BROKER: -Upon execution of this Agreement, Owner agrees to pay compensation to Broker as
specified in a separate written agreement between Owner and Broker (C.A.R. Form LCA).
48. RECEIPT: If specified in paragraph 5, Landlord or Broker, acknowledges receipt of move -in funds.
Landlord and Tenant acknowledge and agree Brokers: (a) do not guarantee the condition of the Premises; (b) cannot
verify representations made by others; fc) cannot provide legal or tax advice; (d) will not provide other advice or
information that exceeds the knowledge, education or experience required to obtain a real estate license. Furthermore,
if Brokers are not also acting as Landlord in this Agreement, Brokers: (e) do not decide what rental rate a Tenant
should pay or Landlord should accept; and (f) do not decide upon the length or other terms of tenancy. Landlord and
Tenant agree that they will seek legal, tax, insurance and other desired assistance from appropriate professionals.
Tenant.agr. (es to rentthe Rremimes on the above terms and conditions.
Tenant,", f
Address
Telephone Fax
City
E-mail
Date
State
Zip
Tenant Date
Address City State Zip
Telephone Fax
E-mail
❑ GUARANTEE: In consideration of the execution of the Agreement by and between Landlord and Tenant and for valuable
consideration, receipt of which is hereby acknowledged, the undersigned ("Guarantor") does hereby:
(i) guarantee unconditionally to Landlord and Landlord's agents, successors and assigns, the prompt payment of Rent or other
sums that become due pursuant to this Agreement, including any and all court costs and attorney fees included in enforcing the
Agreement; (ii) consent to any changes, modifications or alterations of any term in this Agreement agreed to by Landlord and
Tenant; and (iii) waive any right to require Landlord and/or Landlord's agents to proceed against Tenant for any default occurring
under this Agreement before seeking to enforce this Guarantee.
Guarantor (Print Name)
Guarantor Date
Address City State Zip
Telephone Fax E-mail
Landlord agrees to rent the premises on the above terms and conditions.
Landlord Date
(Owner or Agent with authority to enter into this Agreement)
Landlord Address City Stale
Telephone
Fax
Zip
E-mail
REAL ESTATE BROKERS:
A. Real estate brokers who are not also Landlord under the Agreement are not parties to the Agreement between
Landlord and Tenant.
B. Agency relationships are confirmed in paragraph 43.
C. COOPERATING BROKER COMPENSATION: Listing Broker agrees to pay Cooperating Broker (Leasing Firm)
and Cooperating Broker agrees to accept: (i) the amount specified in the MLS, provided Cooperating Broker is
a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS; or (ii) ❑ (if checked) the
amount specified in a separate written agreement between Listing Broker and Cooperating Broker.
Real Estate Broker (Listing Firm) DRE Lic. #
DRE Lic. # Date
Address City State Zip
Telephone
By (Agent)
Fax E-mail
Real Estate Broker (Leasing Firm) DRE Lic. #
By (Agent)
DRE Lic. #
Address City' State Zip
Telephone
Fax E-mail
Date
THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (CAR.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY
PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE,
CONSULT AN APPROPRIATE PROFESSIONAL.
This loam is available for use by the entire real estate industry. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by
members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
! Published and Distributed by.
(SIREt �':V.) REAL ESTATE BUSINESS SERVICES, INC.
�� a subsidiary of the California Association of REACTORS`
The System 'for Success® 525 South Virgil Avenue, Los Angeles, California 90020
LR REVISED 1/06 (PAGE 6 OF 6)
Reviewed by Date
EQUAL ROUSING
OPPORTUNITY
Creative Images Photography Studio
939AAve. National City, CA 91950
619-336-8454 memcavacla@s6cgto6aGnet
Community Benefit Loan Report
7o
Community Development Commission ofNational-City
From
Creative Images Photography Studio
JKanuel Cavada
April15, 2008
Exhibit "C"
Community Benefit Loan Summary
SB DITC Tina( Weport
The SBtI2C Report has 6een su6mitted and a copy was given to CDC on the
deadline elate of the roan application.
Implementation of student recommendations:
• The most current QuickBooks 2007 and training CD guide software has 6een
purchased and is currently being used to keep accurate accounting records.
• Creative Images is receiving accounting systems training from a bookkeeping
company provided 6y the Southwestern Collage Small Business Development.
• We are in the process of implementing the "Family (Portrait" program.
• We are working with local bridal shops in National City and Liles Creations in
Chula Vista on cross marketing our services.
• We are a current mem6er of the National City Chamber of Commerce.
(s)
Business/ Property Information
1. Year Built: 1868 Square Footage
2. Is this a Historical Registered Building:
Is this is a building of known local significance
3. Describe work to be completed.
* Purchase Matting and Framing Equipment
• Build company website
* Build an outdoor company sign
4. Proposed start date: 05-01-08
5. Number of Employees: 2
1100 (est.) Parcel Number
Yes 4 No (check one)
Yes 4 No (check one)
Proposed completion date: 06-15-08 (before June 30th)
Sales Tax Revenue Generated this Year $ 1,050.00
(Paid receipt attached)
6. Please indicate how many full-time (FT) and part-time (PT) jobs will be Retained or Created
once the project is completed?
Retained Created
Officials & Managers FT -__ PT _._ FT PT
Professionals FT PT FT PT
Technicians FT PT FT PT
Sales FT PT FT PT
Office/Clerical FT PT FT PT
Craft (Skilled) FT PT FT 2 PT
Operations (Semi -skilled) FT PT 2 FT PT
Laborers (Unskilled) FT PT FT PT
Service Workers FT PT FT PT
7. Attended a Loan Application Orientation Workshop
8. Project Criteria
Yes
d Yes
4 Yes
J Yes
J Yes
Yes
�( Yes
4 Yes
Al Yes
_I Yes No (check one)
No Participated in the San Diego State University Small Business Technical
Assistance Program
No Participated in Southwestern College's Small Business Development &
International Trade Center Technical Assistance Program
No Business has a current Business License issued by National City
No Is located within the National City's Redevelopment Area?
No Creates Additional Jobs?
If yes, how many? Part Time Full Time 2
No Located within a Community Benefit District and is in good standing
No Applicant has prior business experience in ownership or management
No Business has a business plan and marketing plan
No Applicants business complies with all ADA accessibility guidelines
' 4 Yes No The business has been in operation for more than 5 years
4 Yes No The business has been in operation for more than 10 years
4 __ Yes No The business has been in operation for more than 15 years
4 Yes No The business supports the Comprehensive Storefront
Improvement Program
'I Yes No The business provides longer business hours to serve customers? Hours of
Operation? 10 AM to 6 PM
4 Yes No The business/ project adds to the overall economic vitality of commercial area
4 Yes No The business/ project creates a synergy with existing businesses (business to
business sales tax generation)
4 Yes No The business/ project demonstrates compatibility with neighboring businesses
J Yes No Business/ project supports pedestrian oriented activities and interaction
4 Yes No Business/ project enhances physical appearance of the commercial area
4 Yes No Business/ project enhances safety of commercial area/ community
J Yes No Business/ project enhances quality of life for residents of National City
I certify that the information contained in this application is true and accurate. I submit this forgivable loan
application with full knowledge of the application process and I understand that lam not guaranteed a
forgivable loan or funding for my project tf my project is approved and funded, I understand that I will be
reimbursed for approved costs under the terms of the loan agreement. I understand that this loan application
is due February 22, 2008 for available program funds for the 2007-08 fiscal year.
i \ � lfA ka
•
\rjt
Applicant Signature Date Signed
Tenants requesting assistance to perform work to the property must have authorization by the
property owner to participate in the program.
Property Owner
Or
VNetni.AJ�Gt is
Date Signed
tiz t51.0
Tenant Responsible for Property Improvement Work Date Signed
May 12 2000 12:57:26 -> 619 336 4206 The Hartford Fax Page 003
A
ACORD,, CERTIFICATE OF LIABILITY INSURANCE
PRODUCER
MKNI INSURANCE SERVICES INC/PUS
132469 P:(866)467-8730 F:(877)905-0457
PO BOX 33015
SAN ANTONIO TX 78265
DATE
11-28-2007
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
INSURERS AFFORDING COVERAGE
ENSURED
MANUEL CAVADA DBA CREATIVE IMAGES
PHOTOGRAPHY
923 A AVE.
NATIONAL CITY CA 91950
INSURER A: Hartford Casualty Ins Co
INSURER B:
INSURER C:
INSURER D:
INSURER E
COVERAGES
I rlt rvu..lta ur mUHANL.t us 1 ED BELOW HAVE BEEN ISSUED 10 THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POUCIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
WSR
_kW_
A
TYPE
TYPE OF INSURANCE
POLICY NUMBER
POLX:YETTECT,VE
IMM1DDtYYI
POLICY EXPLRATION
DATE IMMND/YYl
taws
GENERAL
LIABILITY
COMMERC':ALGENERAL UABILITY 151
SBA KD7486
02/01/08
02/01/09
EACH OCCURRENCE
el, 0 0 0, 0 0 0
FIRE DAMAGE [Any ore We)
8300, 000
CLAIMS MADE f X J OCCUR
MED EXP Any one Person)
810 , 00 0
X
General Liab
PERSONAL & ADV INJURY
21, 000, 000
GENERAL AGGREGATE
a2 , 0 0 0, 0 0 0
GEN'L AGGREGATE EMIT APPLIES PER:
PRODUCTS - COMP/OP ADD
82, 000, 000
POLICY PRO- X LOC
JFCT
A
AUTOMOBILE
UAMLITY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON -OWNED AUTOS
51 SBA KD7486
02/01/08
02/01/09
COMBINED SINGLE LIMIT
COMBINED E
al, 000, O00
6ODILY INJURY
(Per person)
e
X
BODILY INJURY
leer ecdcenc)
e
X
PROPERTY DAMAGE
per accident)
a
GARAGE
LIABQ/TY
ANY AUTO
AUTO ONLY - EA ACCIDENT
8
OTHER THAN EA ACC
8
AUTO ONLY: AGG
a
EXCESS
LLABNJTY
EACH OCCURRENCE
I a
AGGREGATE
a
DEDUCTIBLE
RETENTION a
8
a
a
WORKERS COMPENSATION AND
EMPLOYERS'LIABILITY
WC STATU- DTH-
TQAY LIMITS ER
E.L. EACH ACCIDENT
e
E.L. DISEASE - EA EMPLOYEE
a
E.L. DISEASE - POUCY LIMIT
8
OTHER
DESCRIPTION OF OPERATIONSLOCA TIONIYNEINCLES/EXCLUSIOIVS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS
Those usual to the Insured's Operations.
ADDITIONAL dVSURED; INSURER LETTER:
22ND District Agricultural Association
2260 Jimmy Durante Blvd
Del Mar, CA 92014-2216
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL
30 DAYS WRITTEN NOTICE (10 DAYS FOR NON-PAYMENT) TO THE CERTIFICATE
HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO
OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REPRESENTATIVES.
AUTHORIZED REPREESENTATNE
- - -
ACORD 25-S (7/971
ACORD CORPORATION 1988
ne/lam/�nno snnM n.eo r
Exhibit "D"
Community Benefit Loan Application
Applicant Name Manuel Cavada
Applicant Address 923 A Avenue
E-mail Address memocavada(a�sbcglobal_net
Business Name Creative Images Photography
City National City State CA Zip 91950
Phone (619) 336 — 8454 Fax
Business Address 923 A Avenue City National City State CA Zip 91950
Federal Tax ID or Social Security Number 550 — 56 — 2236
Type of Business Photography Studio
Type of Entity (Check One) ❑ Corporation
Status of Applicant (Please check one):
Al Business owner
Property owner with tenant business
Business Ownership and Management
Name Manuel Cavada Title Owner
Date Established 1980.__
❑ Partnership ❑ LLC C'Proprietorship
% of Ownership 100%
Name Title % of Ownership
Name Title % of Ownership
:Arno easeattach a copy of.the grant deed for the property.
Project Request
Loan Amount $_1.5,000.00.
Use of Funds
Leasehold Improvements
Machinery & Equipment 15,000.00
Vehicles
Working Capital
Inventory/Supplies
Other
Project Location National City, CA
Sources of Funds
Applicant's Equity
Bank Financing
Private Lender
San Diego County
CDC Loan
Other
Collateral Available
(Attach a sheet if necessary)
Describe real estate, vehicles, or business assets that may be pledged to support your request.
1. 1996 Jeep $ 3,500
2. camera, lighting, and office equipment
$ 60,000
Exhibit "E"
PROMISSORY NOTE
SECURED BY SECURITY AGREEMENT
San Diego, California
June 8, 2008
1. For value received, the undersigned, Manuel Cavada doing business as Creative Images
Photography Studio ("Borrower"), promises to pay to the order of the Community Development
Commission of the City of National City ("Lender" or "CDC"), in accordance with the
provisions of this Promissory Note ("Note"), on or before the Loan Maturity Date (defined
below), the initial sums of Fifteen Thousand Dollars and no/100 Dollars ($15,000) (the "Loan
Amount").
2. The "Effective Date" of this Note is June 8, 2008, the date of the initial advance
of funds.
3. All capitalized terms used in this Note, unless otherwise defined, will have the
respective meanings specified in the Community Benefit Loan Agreement or the Security
Agreement entered into between the Borrower and Lender on June 8, 2008, which meanings are
incorporated herein by this reference as though fully set forth.
4. If any provision of this Note conflicts with or is inconsistent with the provisions
of the Community Benefit Loan Agreement or the Security Agreement (all collectively, the
"Community Benefit Loan Agreements"), the Community Benefit Loan Agreements shall
supersede.
5. The Loan Amount will bear interest at the rate of 8.5% per annum simple interest
retroactive to the date of the Loan.
The Loan Amount will be due on the Loan Maturity Date (as defined below).
7. "Loan Maturity Date" means the date on which the indebtedness evidenced by
this Note is due pursuant to the terms of any of the Community Benefit Agreements, which
includes, but is not limited to, immediate repayment if the Business is sold, leased, conveyed,
refinanced, vacated, transfeiied, assigned, alienated, or hypothecated within five (5) years from
the Completion Date of the improvements as defined by and at the option of the CDC.
8. All payments will be applied first to accrued interest then to the principal.
9. The Loan Amount is payable in lawful money of the United States of America, in
same day funds at any place that Lender or the legal holders of this Note may, from time to time,
in writing designate, and in the absence of that designation, then by cashiers check delivered to
the attention of the Finance Department at CDC's office located at 1243 National City
Boulevard, National City, California 91950.
EXHIBIT "F'
10. The principal amount of the indebtedness evidenced by this Note may, at the
option of the Borrower, be prepaid in whole or in part without penalty or premium.
11. Time is of the essence. A failure by Borrower to fully repay the Loan on or
before the Loan Maturity Date will constitute an Event of Default under this Note and entitle
Lender to exercise any and all of its contractual, legal or equitable remedies including but not
limited to those set forth in the Community Benefit Loan Agreements.
12. On the occurrence of an Event of Default under this Note, or on the occurrence of
any Event of Default under any of the Community Benefit Loan Agreements, or on the
occurrence of any other event that, under the terms of any of the- Community Benefit Loan
Agreements, gives rise to Lender's right to accelerate the repayment of the outstanding Loan
Amount, then, at the sole option of Lender, the full outstanding amount of this Note, or any part
thereof specifically designated by the Lender in writing, shall immediately become due and
payable by Borrower to Lender, without any further presentment, demand, protest, or notice of
any kind. Borrower agrees that this Note will be deemed to have been made under, and will be
governed by, the laws of the state of California in all respects, including matters of construction,
validity, and performance, and that none of its terms or provisions may be waived, altered,
modified, or amended except as Lender may consent to in a writing duly signed by Lender or its
authorized agents.
13. This Note is to become secured, among other security, by a security agreement
covering inventory located thereon, including 1996 Jeep and camera, lighting, and office
equipment with an approximate total market value of $63,500.00, as loan collateral, which
is attached to the Community Benefit Loan Agreement as Exhibit "E", and incorporated herein
by this reference as though fully set forth herein, to be executed by the undersigned. This Note is
the Note referred to in the Community Benefit Loan Agreements, as well as the Security
Agreement, and is entitled to the benefits of the Community Benefit Loan Agreements, that
contain among other things, provisions for acceleration of the maturity of this Note on the
happening of certain stated events.
14. The Security Agreement provides as follows:
"Should the BUSINESS be sold, hypothecated, vacated, leased,
transferred, assigned, or alienated on or before five (5) years from
the Completion Date of the improvements, this Loan shall be
repayable in full by the BUSINESS OWNER(S) to CDC, upon
demand, with interest at the option of the CDC", (each, a
"Transfer"), without first obtaining the written consent of the
Beneficiary, then all obligations secured by the Security
Agreement may be declared due and payable, at the option of the
Beneficiary, as stated in Section VI of the Community Benefit
Loan Agreement (as defined in the Note). Consent to one
transaction of this type will not constitute a waiver of the right to
acquire consent to future or successive transactions.
2 EXHIBIT " F"
15. Borrower agrees that, if Lender or holder of this Note incurs: (i) any costs, fees, or
expenses, including costs of procuring evidence of title incurred in connection with sale; or (ii)
any costs including, without limitation, attorney fees, incurred in enforcing payment, whether or
not suit is filed, or protecting security, including, without limitation, all costs, attorney fees, and
expenses incurred in connection with any bankruptcy, reorganization, arrangement, or other
similar proceedings involving the undersigned or the Property, that in any way affects the
exercise of rights and remedies under this Note or the Community Benefit Loan Agreements,
then Borrower will repay such expenses upon receipt of written demand from Lender, and, if
such expenses are not immediately repaid, such outstanding amount will increase the currently
outstanding indebtedness under this Note, and be secured by the Security Agreement All costs
and expenses incurred by Lender or holder of this Note to obtain relief from the stay of
bankruptcy statutes are specifically included in the expenses referred to in this Paragraph.
16. Regardless of any of the provisions of this Note, nothing in this Paragraph will be
deemed to limit or prejudice the rights of Lender to: (a) enforce the Security Agreement or
enforce any of its other rights or remedies under the Community Benefit Loan Agreements; or
(b) proceed against any entity or person, including Borrower with respect to the enforcement of
any leases, bonds, policies of insurance, or other agreements; or (c) recover damages against
Borrower for fraud, breach of warranty, failure to maintain insurance, waste, or material
misrepresentation; or (d) recover any condemnation proceeds or insurance proceeds or other
similar funds or payments attributable to the Property that, under the terms of the Community
Benefit Loan Agreements should .have been paid to Lender; or (e) recover any tenant security
deposits, prepaid rents, or other similar sums paid to or held by Borrower or any other entity or
person in connection with the Business; or (f) recover the rents and profits of the Business
accruing from and after the occurrence of an Event of Default that have not been applied to pay
any portion of the outstanding indebtedness of this Note, operating, and maintenance expenses of
the Business, insurance, premiums, impositions, deposits into a reserve for replacement, or other
sums required by the Loan Document; or (g) recover damages including, without limitation,
recovery of all amounts authorized under any environmental indemnity agreement between
Lender and Borrower, relating to breach of any covenant, representation, or warranty of
Borrower in the Community Benefit Loan Agreements; or (h) recover from Borrower the entire
outstanding indebtedness of this Note, if the exercise of any right or remedy under federal, state,
or local forfeiture laws results in the loss of the lien of any Security Agreement, or the priority of
such, against the respective Business; or (i) recover funds to reimburse Lender for sums
expended by Lender for the protection or preservation of the Property or Lender's interest in it
(including, without limitation, payment of any real property taxes or assessments). Any liability
of Borrower for any obligations arising in connection with the matters set forth in the above
clauses, (a) through (i) inclusive, will be personal liability, and may be asserted against and
recovered from its or their interest in the Business, as well as, against any of Borrower's other
assets. Any liability of Borrower arising in connection with matters set forth in clause (g) will
not be limited to the outstanding principal amount of this Note, and Borrower's obligations will
survive foreclosure, deed in lieu of foreclosure, release, partial release, reconveyance, partial
reconveyance, or any other transfer of the Property.
3 EXHIBIT "F'
17. The Security Agreement will be reconveyed upon Lender's satisfaction that all
obligations secured by the Security Agreement have been performed in full.
In witness whereof, the undersigned has caused this Promissory Note to be executed as of
the date and year first above written.
Borrower:
Manuel Cavada doing business as
Creative Images Photography Studio
By:
Manuel Cavada, Sole Proprietor
4 EXHIBIT "F"
SECURITY AGREEMENT
This Security Agreement is made and entered into on this 8TH day of June, 2008, by and
between Manuel Cavada doing business as Creative Images Photography Studio ("Debtor"), of
939 "A" Ave., National City, CA, 91950, San Diego County, State of California, and
Community Development Commission (CDC) of the City of National City ("Secured Party"), of
1243 National City Blvd., National City, 91950, San Diego County, State of California, as
follows:
For value received, the Debtor grants to the Secured Party a security interest in the
following described property, referred to in this Security Agreement as the Collateral: a 1996
Jeep and camera, lighting, and office equipment with an approximate total market value of
$63,500.00, to secure (1) the Debtor's note of $15,000 to the Secured Party of June 8, 2008,
payable as to principal and interest as provided in the note; (2) future advances by the Secured
Party to the Debtor, to be evidenced by similar notes; (3) all expenditures by the Secured Party
for taxes, insurance, and repairs to and maintenance of the Collateral incurred by the Secured
Party in the collection and enforcement of the note and other indebtedness of the Debtor; and (4)
all liabilities of the Debtor to the Secured Party now existing or incurred in the future, matured
and unmatured, direct or contingent, and any renewals, extensions, and substitutions of those
liabilities.
The Debtor warrants and covenants:
The Collateral is to be used for personal, family, or household purposes.
X_ The Collateral is to be used in business other than farming operations.
The Collateral is equipment used in farming operation, or farm products, or
accounts, contract rights, or general intangibles arising from or relating to the
sale of farm products by a farmer.
The Collateral is accounts, and the records concerning the accounts are kept at
[address].
The Collateral is a fixture attached to or to become attached to the above -
described land.
The Collateral is being acquired by the Debtor from the Secured Party or is
being acquired with the proceeds of the advance evidenced by this Security
Agreement.
X The Debtor's residence is at 939 "A" Ave., National City, CA, 91950.
X The Collateral will be kept at 939 "A" Ave., National City, CA, 91950.
X_ The Debtor's chief place of business is at 939 "A" Ave., National City, CA,
91950.
EXHIBIT "G"
The Debtor warrants, covenants, and agrees as follows:
TITLE
1. Except for the security interest granted by this Agreement, the Debtor has, or on
acquisition will have, full title to the Collateral free from any lien, security interest,
encumbrance, or claim, and the Debtor will, at the Debtor's cost and expense, defend any action
that may affect the Secured Party's security interest in, or the Debtor's title to, the Collateral.
FINANCING STATEMENT
2. No financing statement covering the Collateral or any part of it or any proceeds of
it is on file in any public office. At the Secured Party's request, the Debtor will join in executing
and pay the filing fees required for all necessary financing statements in forms satisfactory to the
Secured Party, and will further execute all other instruments deemed necessary by the Secured
Party.
SALE, LEASE, OR DISPOSITION OF COLLA I'ERAL
3. The Debtor will not, without the written consent of the Secured party, sell,
contract to sell, lease, encumber, or dispose of the Collateral or any interest in it until this
Security Agreement and all debts secured by it have been fully satisfied.
INSURANCE
4. Until final termination of this Security Agreement, the Debtor will, at its own cost
and expense, insure the Collateral with companies acceptable to the Secured Party against the
casualties and in the amounts that the Secured Party shall reasonably require with a loss payable
clause in favor of the Debtor and Secured Party as their interests may appear. The Secured Party
is authorized to collect sums that may become due under any of the insurance policies and apply
them to the obligations secured by this Security Agreement. A duplicate copy of each such
policy shall be delivered by the Debtor to the Secured Party.
PROTECTION OF COLLATERAL
5. The Debtor will keep the Collateral in good order and repair and will not waste or
destroy the Collateral or any part of it. The Debtor will not use the Collateral in violation of any
statute or ordinance, and the Secured Party will have the right to examine and inspect the
Collateral at any reasonable time.
TAXES AND ASSESSMENTS
6. The Debtor will pay promptly when due all taxes and assessments on the
Collateral, or any part of the Collateral, or for its use and operation.
LOCATION AND IDENTIFICATION
Security Agreement
7. The Debtor will keep the Collateral separate and identifiable, and at the address
shown above, and will not remove the Collateral from that address without the Secured Party's
written consent, for as long as this Security Agreement remains in effect.
SECURITY INTEREST IN PROCEEDS AND ACCESSIONS
8. The Debtor grants to the Secured Party a security interest in and to all proceeds,
increases, substitutions, replacements, additions, and accessions to the Collateral, and to any part
of the Collateral. This provision shall not be construed to mean that the Debtor is authorized to
sell, lease, or dispose of the Collateral without the prior written consent of the Secured Party.
DECREASE IN VALUE OF COLLATERAL
9. The Debtor shall, if in the Secured Party's judgment the Collateral has materially
decreased in value or if the Secured Party shall at any time deem that the Secured Party is
financially unstable, either provide enough additional Collateral to satisfy the Secured Party or
reduce the total indebtedness by an amount sufficient to satisfy the Secured Party.
REIMBURSEMENT OF EXPENSES
10. At the option of the Secured Party, the Secured Party may discharge taxes, liens,
interest, or perform or cause to be performed for and on behalf of the Debtor any actions and
conditions, obligations, or covenants that the Debtor has failed or refused to perform, and may
pay for the repair, maintenance, and preservation of the Collateral, and may enter the premises
where the Collateral or any part of it is located and cause to be performed as agent and on the
account of the Debtor any acts that the Secured Party may deem necessary for the proper repair
or maintenance of the Collateral or any part of it. Any and all sums expended by the Secured
Party under this paragraph, including but not limited to, attorney's fees, court costs, agent's fees,
or commissions, or any other costs or expenses, shall bear interest from the date of payment at
the annual rate of 8.5 percent, and shall be payable at the place designated in the Debtor's note,
and shall he secured by this Security Agreement.
PAYMENT
11. Should the BUSINESS be sold, hypothecated, vacated, leased, transferred,
assigned, or alienated on or before five (5) years from the Completion Date of the improvements,
this Loan shall be repayable in full by the BUSINESS OWNER(S) to CDC, upon demand, with
interest at the option of the CDC, (each, a "Transfer"), without first obtaining the written consent
of the Beneficiary, then all obligations secured by the Security Agreement may be declared due
and payable, at the option of the Beneficiary, as stated in Section VI of the Community Benefit
Loan Agreement (as defined in the Note). Consent to one transaction of this type will not
constitute a waiver of the right to acquire consent to future or successive transactions.
interest shall be calculated at 8.5 % per annum simple interest retroactive to the date of
the Loan. Unless BUSINESS OWNER(S) has complied with the terms of the AGREEMENT,
3
Security Agreement
the Loan identified shall constitute a lien upon the Business in the amount of the loan plus
interest computed.
The Debtor will pay the note secured by this Security Agreement and any renewal or
extension of it and any other indebtedness secured by this Security Agreement in accordance
with the terms and provisions of this Security Agreement. On full payment by the Debtor of all
indebtedness secured by this agreement in accordance with this Security Agreement, this
Security Agreement shall expire, and the Secured Party's security interest in the Collateral, as set
forth in this Security Agreement, shall terminate.
CHANGE OF RESIDENCE OR PLACE OF BUSINESS
12. The Debtor will promptly notify the Secured Party of any change of the Debtor's
residence, chief place of business, or place where records concerning the Collateral are kept.
TIME OF PERFORMANCE AND WAIVER
13. In performing any act under this Security Agreement, and the note secured by it,
time shall be of the essence. The Secured Party's acceptance of partial or delinquent payments,
or the failure of the Secured Party to exercise any right or remedy, shall not constitute a waiver
of any obligations of the Debtor or right of the Secured Party, and shall not constitute a waiver of
any other similar default that occurs later.
DEFAULT
14. The Debtor shall be in default under this Security Agreement on the occurrence of
any of the following events or conditions:
1) Default in the payment or performance of any note, obligations, covenant,
or liability secured by this Security Agreement;
2) Any warranty, representation, or statement made or furnished to the
Secured Party by or on behalf of the Debtor proves to have been false in any material respect
when made or furnished;
3) Any event that results in the acceleration of the maturity of the
indebtedness of the Debtor to others under any indenture, agreement, or undertaking;
4) Loss, theft, substantial damage, destruction, sale, or encumbrance to or of
any of the Collateral, or the making of any levy, seizure, or attachment of or on the Collateral;
5) Any time the Secured Party reasonably believes that the prospect of
payment or any indebtedness secured by this Security Agreement or the performance of this
Security Agreement is impaired; or
6) Death, dissolution, termination of existence, insolvency, business failure,
appointment of a receiver for any part of the Collateral, assignment for the benefit of creditors, or
4
Security Agreement
the commencement of any proceeding under any bankruptcy or insolvency law by or against the
Debtor or any guarantor or surety for the Debtor.
REMEDIES
15. On the occurrence of any event of default, and at any later time, the Secured Party
may declare all obligations secured due and payable immediately, and may proceed to enforce
payment, and exercise any and all of the rights and remedies provided by the California
Commercial Code as well as other rights and remedies either at law or in equity possessed by the
Secured Party.
The Secured Party may require the Debtor to assemble the Collateral, and make it
available to the Secured Party at any place to be designated by the Secured Party that is
reasonably convenient to both parties. Unless the Collateral is perishable, threatens to decline
speedily in value, or is of a type customarily sold on a recognized market, the Secured Party will
give the Debtor reasonable notice of the time and place of any public sale or of the time after
which any private sale or any other intended disposition of the Collateral is to be made. The
requirement of reasonable notice shall be met if the notice is mailed, postage prepaid, to the
address of the Debtor shown at the beginning of this Security Agreement at least five days before
the time of the sale or disposition. Expenses of retaking, holding, preparing for sale, selling, or
the like shall include the Secured Party's reasonable attorneys' fees and legal expenses.
MISCELLANEOUS PROVISIONS
16. (a) California Law to Apply: This Security Agreement shall be construed
under and in accordance with the California Commercial Code and other applicable laws of the
State of California, and all obligations of the parties created under this Security Agreement are
performable in San Diego County.
(b) Parties Bound: This Security Agreement shall be binding on and inure to
the benefit of the parties and their respective heirs, executors, administrators, legal
representatives, successors, and assigns as permitted by this Security Agreement.
(c) Attorneys' Fees: Should any legal action based in contract law be
commenced between the parties to this Security Agreement concerning the Collateral, this
Security Agreement, or the rights and duties of either party in relation to them, the prevailing
party shall be entitled to a reasonable sum as reimbursed for his or her attorneys' fees and legal
expenses.
(d) Legal Construction: In case any one or more of the provisions contained
in this Security Agreement shall for any reason be held invalid, illegal, or unenforceable in any
respect, the invalidity, illegality, or unenforceability of that provision shall not affect any other
provision of this Security Agreement, and this Security Agreement shall be construed as if the
invalid, illegal, or unenforceable provision had never been contained in it.
5
Security Agreement
(e) Prior Agreements Superseded: This Security Agreement constitutes the
only agreement of the parties, and supersedes any prior understandings or written or oral
agreements between the parties respecting the subject matter of this Security Agreement.
(f) Definitions: All terms used in the Security Agreement that are defined in
the California Commercial Code shall have the same meaning in this Security Agreement as in
the Code.
This instrument was prepared by The Community Development Commission (CDC) of
the City of National City, whose address is 1243 National City Blvd., National City, CA, 91950.
'' a
Dated:
to
DEBTOR Manuel Cavada doing business as
Creative Images Photography Studio
\-\\c-oktk
Manuel Cavada, Sole Proprietor
SECURED PARTY
Community Development Commission of the City of National City
Brad Rxecutive Director
6
Security Agreement
$15,000
NOTE
National City,
San Diego County, California.
FOR VALUE RECEIVED, the undersigned promises to pay to the order of Community
Development Commission (CDC) of the City of National City at National City, San Diego
County, California, or at any other place in the State of California that any holder of this Note
may designate in writing, the sum of $15,000 with interest, from the date written above until
paid, at the rate of 8.5 percent per annum.
This Note, together with all interest due on it, is due and payable as follows:
DEBTOR AND CDC agree that if the BUSINESS is sold, hypothecated, vacated, leased,
transferred, assigned, or alienated on or before five (5) years from the Completion Date of the
improvements as agreed to in the Community Benefit Loan Agreement, the Note shall be
repayable in full by the DEBTOR to CDC, upon demand, with interest at the option of the CDC.
The payment of this Note is secured by a Security Agreement of this date from Creative
Images Photography Studio to CDC granting a security interest in and to the following described
property: a 1996 Jeep and camera, lighting. and office equipment with an approximate total
market value of $63,500.00, together with all other property described in or referred to in the
Security Agreement.
The maker shall have the right to prepay the principal of this note in whole or in part
prior to its due date without premium or penalty.
If this note is placed in an attorney's hands for collection, or collected by a lawsuit or
through a bankruptcy, or probate, or any other court, either before or after maturity, there shall be
paid to the holder of this Note reasonable attorneys' fees, costs, and other expenses incurred by
the holder in enforcing the terms of this note.
Failure to pay any part of the principal or interest of this Note when due, or failure to
carry out any of the terms, covenants, or condition of the Security Agreement, shall authorize the
holder of this Note to declare as immediately due and payable the then -unpaid principal, and to
exercise any and all of the rights and remedies provided by the California Commercial Code as
well as all other rights and remedies either at law or in equity possessed by the holder of the
Note.
The makers, signers, and endorsers of this Note jointly and severally waive presentment,
notice of dishonor, and protest.
7
Security Agreement
Dated: JUi to 5th! 20O
DEBTOR Creative Images Photography Studio
Manuel Cavada, Sole Proprietor
SECURED PARTY Community Development Commission of the City of
National City
stop, Executive Director
State of California )
County of San 1)r J� )
On June 5 112bMg efore me, , t i).• I�o�� VIDc
p aka Y1.V.�fYt C, tC�tel�5 �, personally
appeared t1a.riue\ Dyad o who proved to me on the basis of satisfactory evidence to be the
person whose nameV)eare subscribed to the within instrument and acknowledged to me that
fi she/they executed the same ii /her/their authorized capacity , and that byer/their
signature') on the instrument the person , or the entity upon behalf of which the person
acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Sif Notary Publi
ANA MIRIAM ('ACAS DICKENS
Commission # 1513970
Notary Public - California t
San Diego County
My Comm. Expires Sep 17, 2008
8
Security Agreement