Paragon, LLC
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DOCUMENT: 14939443 Titles: 1/ Pages: 7
RECORDING REQUESTED BY
AND
WHEN RECORDED MAIL TO:
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City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
Attn: City Clerk
BRENDA DAVIS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
City
ROE "* 009
8/13/1999
11: 48 AM
~~: 841-14-041
SPACE ABOVE THIS LINE FOR RECORDER'S USE
COVENANT REGARDING DEVELOPMENT FEES
(COVENANT RUNNING WITH THE LAND)
This Covenant Regarding Development Fees ("Covenant") is made and entered into as of
Augus t 2 , 1999 ("Effective Date") by and between the City of Gilroy, a municipal
corporation ("City") and Paragon Limited Liability Corporation, a California corporation ("Owner").
RECITALS
A. Owner is the fee owner of certain real property located at 6060 Monterey Street,
Gilroy, California, more particularly described on Exhibit "A" attached hereto ("Property"). Owner
desires to construct a new hotel comprised of one hundred thirty-nine rooms (139) upon the Property
(the "Hotel"). In connection with the development of the Hotel, Development Impact Fees in the
amount of Seven hundred sixty-four thousand six hundred twelve dollars and thirty-one cents
($764,612.31) will be due and owing to City upon issuance ofa building permit for construction of
the Hotel. Pursuant to a certain Agreement between the City of Gilroy and Paragon Limited Liability
Corporation, being entered into concurrently herewith ("Deferral Agreement"), the City will grant
Owner a contingent credit against Development Impact Fees in the amount of Seven hundred sixty-
four thousand six hundred twelve dollars and thirty-one cents ($764,612.31) ("the Deferred Fees"),
pursuant to which all or a portion ofthe Deferred Fees, together with interest thereon at the City's
highest investment rate for new monies computed from the date of issuance of the building permit
for the Hotel until the amount owing is paid in full ("Interest"), may become payable to the City at
a later date on the terms and conditions set forth in the Deferral Agreement. The parties desire to
enter into and record this Covenant as notice to all subsequent owners of the Property that the
Deferred Fees and Interest may be payable by the Property Owner to the City in accordance with the
terms and conditions of the Deferral Agreement.
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~OW, THEREFORE, FOR VALUABLE CO~SIDERATIO~, THE PARTIES AGREE AS
FOLLOWS:
1. Owner hereby agrees, on behalf of itself and all subsequent owners of the Property,
to pay, when due, all Deferred Fees and Interest, in accordance with the terms and conditions set
forth in the Deferral Agreement.
2. The City and Owner hereby declare their express intent that the covenants set forth
in this Agreement are covenants running with the land, and apply to and bind Owner and each of
Owner's heirs, assigns, successors and successors-in-interest, and all subsequent owners of the
Property, all of whom shall have joint and several liability for the payment of the sums due to City
as described in this Covenant. Each and every contract, deed or other instrument hereafter executed
conveying the Property or any portion thereof shall be held conclusively to have been executed,
delivered and accepted subject to such covenants, regardless of whether such covenants are set forth
in such contract, deed or other instrument. All covenants contained herein shall, without regard to
technical classification or designation, be binding upon the Owner and its heirs, assigns, successors
and successors-in-interest, and all subsequent owners of the Property, for the benefit of the City, and
such covenants shall run in favor of City without regard to whether the City is an owner of any land
or interest therein to which such covenants relate.
3. If any action or suit is brought by one party against the other to enforce or interpret
this Covenant, the prevailing party in such action or suit shall be entitled to have and recover from
the other party all costs and expenses incurred in such action or suit, including reasonable attorneys'
fees.
4. If any provision of this Covenant is, or hereinafter is determined to be, for any reason
void, unenforceable or invalid, the remainder of this Covenant shall be and remain in full force and
effect. This Covenant shall be governed and construed in accordance with the laws of the State of
California. The waiver or failure to enforce any provision of this Covenant shall not operate as a
waiver of any future breach of any such provision or any other provision hereof
Executed on the date set forth below.
Dated: 6.-3- q q
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STATE OF CALIFORNIA )
)ss.
COUNTY OF SANTA CLARA )
On August 3, 1999, before me, Rhonda Pellin, ~otary Public, personally appeared Jay Baksa
personally known to me to be the person whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his authorized capacity, and that by his
signature on the instrument the person or the entity upon behalf of which the person acted,
executed the instrument.
WI~SS my hand and official seal.
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Signatlrre of Notary Public
1------------
it RHONDA PB.1lN f.
_ Commission # 1142623
i Notay Public - Califania f
t Salta CIao County f
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per GC Sec. 40814; CC Sec. 1181
~otary Seal)
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Dated: g ~ 3 -c; cr
Dated:
Dated:
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ATTES . . 1ff./~ !:::t.~~~k
City Clerk
APPROVED AS TO FORM:
~U.e~~
City Attorney
PARAGON LIMITED LIABILITY CORPORA nON
By ~/?7
Its: Authorized Legal Representative
By:
Its: uthorized Legal Representative
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...
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
No. 5907
personally appeared
cJd- f
L. t}.
()]~-zf:>- t:t1 before me,~WI1N C7H ( G0ut
D TE NAME. TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC"
~ {tv&, ~ (tV&, ~LooMj
NAME(S) F SIGNER(S)
D personally known to me - OR - D proved to me on the basis of satisfactory evidence
to be the persor;kS) whose namekS) is/are-
subscribed to the within instrument and ac-
knowledged to me that he/sfle/tl.ey executed
the same in his/I=ter/theif authorized
capacity(ys), and that by his/hgr/thciF
signature~ on the instrument the personk5'),
or the entity upon behalf of which the
person(;i7 acted, executed the instrument.
......-. - - -
i@KWANSHIWU-i
~ _ . Commission # 1226304 {'
iz 'fo- a Notary Public - Califomia ~
Los Angeles County i
My CO~m. Expires Jut J 6,2003 ,
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WITNESS my hand and official seal.
State of
County of
On
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SIGNATURE OF NOTARY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER
D INDIVIDUAL
D CORPORATE OFFICER
DESCRIPTION OF ATTACHED DOCUMENT
TITLE OR TYPE OF DOCUMENT
TITLE(S)
D PARTNER(S)
D LIMITED
D GENERAL
D ATTORNEY-IN-FACT
D TRUSTEE(S)
D GUARDIAN/CONSERVATOR
D OTHER:
NUMBER OF PAGES
DATE OF DOCUMENT
SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)
SIGNER(S) OTHER THAN NAMED ABOVE
@1993 NATIONAL NOTARY ASSOCIATION' 8236 Remmel Ave., P.O. Box 7184' Canoga Park, CA 91309-7184
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of
~J
On
D personally known to me - OR - ~roved to m on the basis of satisfactory evidence to be the person(~)
whose name(l) is/aFe' subscribed to the within instrument
and acknowledged to me that he/she/thoy executed the
same in hisJt-lElrfthoir authorized capacity(~, and that by
hisfAeritheir signature(~) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted,
executed the instrument.
----1
.......-.........-......
l :j,~~5888 i
i _' Notary PubIC - CdfomJa ~
~. ;' San Mateo CoUltV !
1..:: ';J:~~' MyCOITlf1'l Expires Dee 20. 2lXXl
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WITNESS my hand and official seal.
~
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: ~ ~. ~.-....~.:7 ~ .!AI Kf// #-
y 'I
Document Date: Number of Pages: tJ I
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
Signer's Name:
D Individual
D Corporate Officer
Title(s):
D Partner - D Limited D General
D Attorney-in-Fact
D Trustee
D Guardian or Conservator
D Other: Top of thumb here
RIGHT THUMBPRINT
OF SIGNER
D Individual
D Corporate Officer
Title(s):
D Partner - D Limited D General
D Attorney-in-Fact
D Trustee
D Guardian or Conservator
D Other: Top of thumb here
RIGHT THUMBPRINT
OF SIGNER
Signer Is Representing:
Signer Is Representing:
@ 1994 National Notary Association' 8236 Remmel Ave.. P.O. Box 7184 . Canoga Park, CA 91309-7184
Prod. No. 5907
Reorder: Call Toll-Free 1-800-876-6827
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EXHIBIT "A"
All that certain Real Property in the City of Gilroy, County of Santa Clara, State of California,
described as follows:
All of Lot 6, as shown upon that certain Map, "Map of Henry Reeves Subdivision of Las Animas
Ranch Lot No. 49" which Map was filed for record in the Office of the Recorder of the County of
Santa Clara, State of California, on January 8, 1888, in Volume "C" of Maps, at Page 47.
Exception therefrom that portion thereof acquired by the State of California through a Condemnation
Proceedings for Highway Purposes, Case ~o. 223754, Superior Court of the State of California for
the County of Santa Clara.
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