Agmt 2006 Francisco_John Jake etc

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OWNER PARTICIPATION AGREEMENT This ("Agreement") is made by and between John "Jake" and Musa Franeisco (collectively, "Participant"), the City of San Leandro (collectively, "City") and the Redevelopmcnt Agency of San Lcandro together with its employees and Agencies (collectively, "the Agency"), with reference to the following facts: A. Palticipant is the owner of certain real property located at 1041-] 051 MacArthur Boulevard in San Leandro, California ("the Property") and is the operator of a full-scrvicc restaurant on the Property known as "Vila Cercja Restaurant. " 13. The Agency is responsible for the formulation and implementation of the MacAlthur Streetscape Project ("Projcet") within which the Property is locatcd. C. Participant claims that they have suffercd substantial monctary losses to their business, the Vila Cercja Restaurant, caused by the City/ Agency in the formulation of the Project and its implementation of the Project to date ("the Claims"). D. The City and Agency maintain that thcy have no liability based on the Clailns. E. The Parties have discussed ways to resolve the Clainls and now belicve that it is in their mutual intercst to resolve the Claims according to the terms of this Agreement. NOW, THEREFORE, in considcration of the mutual promises contained herein and othcr good and valuable consideration, the Parties agree as follows: I. Agency agrces to provide Participant with a grant in the amount of $250,000, in consideration for the cost of construction offar;ade improvements and for architectural and engineering consultant costs previously incurred in connection with improvements madc by Participant to the Property. The grant is to be distributed by the Agency to Participant as follows: (I) an advance of $1 00,000 payable upon execution 0 I' the Agreement; (2) $100,000 payable upon issuance of a Building Permit for the far;ade improvements; and (3) $50,000 payable upon completion with an approved tlnal inspection. The Participant shall submit the flna1 t~lYade improvement plans for approval by Agency within 60 days of cxecution of the Agreement. All plans are subject to ilnal approval of the Redevelopment Agency. 2. The City of San Leandro agrees to vacate a portion of the public right-of-way necessary to allow for the construction of the far;ade improvement. It is estimated that an approximately two foot strip of land is needed along the ii'ontage ofthe parcel to allow for the permanent ilnprovement. The amount of the actual street vacation is subject to detennin(1tion by the City Engineer pending reeeipt of final building plans for the approved E19ade improvement. 3. The Agency agrecs to provide Participant a separate grant in the amount of $75,000, for the repair, slurry coating and striping of the adjoining parking lot, and for landsc~lpe and irrigation improvements along the parking lot frontage. An initial disbursement of" $50,(JOO of the grant will be paid upon acceptance of a Parking and Landscaping Plan prepared by lhe Agency. The balance of $25,000 shall be paid upon eornpletion of the work. R79765-2