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HomeMy WebLinkAboutOrd. No. 1990-890ORDINANCE NO. 890 AN ORDINANCE OF TAE CITY COUNCIL OF THE CITY OF LAKE ELSINORE APPROVING A DEVELOPMENT AGREEMENT WITH ALBERHILL RANCH ASSOCIATES. WHEREAS, the Planning Commission of the City of Lake Elsinore held a duly noticed public hearing on a proposed Development Agreement between the City of Lake Elsinore and Alberhill Ranch Associates on March 14, 1990, and found that the Development Agreement is consistent with the City's General Plan; and WHEREAS, the City Council of the City of Lake Elsinore held a duly noticed public hearing on the Development Agreement on April 24, 1990, and found that (1) the Development Agreement is consistent with the City's General Plan and the Alberhill Ranch Specific Plan and (2) the previously certified environmental impact report prepared for the Alberhill Ranch Specific Plan is adequate and complete for the Development Agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The Development Agreement between the City of Lake Elsinore and Alberhill Ranch Associates, as set forth in Exhibit A attached hereto, is hereby approved. The Mayor is authorized to execute the Development Agreement and, following such execution, the City Clerk shall cause"a copy thereof to be recorded with the Riverside County Recorder within ten (10) days. Section 2. The City Clerk shall certify to the passage and adoption of this Ordinance and shall oause the same to be published in the manner required by law. This Ordinance shall become effective upon the expiration of thirty (3oj days from and after its passage. PASSED UPON FIRST READING this 2'~*.M day of Ju.ne,r 1990 upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTENTIONS: BUCK, STARKEy, l,tqc}_!g+)nn; NOPJE DOP-1IN;UEZ, 4JINKLER NONE PASSED, APPROVED AND ADOPTED this lOth day of July_., 1990 upon the following roll call vote: AYES: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BUCK, DOP1IPIGUEZ, STARKEY, I~JINKLER, bJASHBLRPJ P10PlE NOfdE ABSTENTIONS: COUNCILMEMBERS: ~ LU~~v6~-- ~y M. Washburn, Mayo _ty of Lake Elsinore 1~'P~TF~^i ; t l ~ i m~ti,. ~ `~_~~~ Vioki 'Lynn~Kasad, City Clerk City of La ~lsinore (SEPLJ APPROVED S TO FORM AND LEGALITY: ~~ John R. a•pe , Ci y Attorney City of La e 'lsinore STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, Vicki Lynne Kasad, City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing Ordinance had its first reading on June 26, 1990, and had its second reading on July 10, 1990 and was passed by the following vote: AYES: COUNCILMEMBERS: BUCK, DOMINGUEZ, STARKEY, WINKLER, WASHBURN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE AESTAIN: COUNCILMEMBERS: NONE C'~YNNE SAD C(~ ERK CITY OF LAKE .LSINORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, Vicki Lynne Kasad, City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Ordinance No. 890 of said Council, and that the same has not been amended or repealed. DATED: July 18, 1990 ~ ~~ ~~ VI KC I LY NE SAD, CITY CLERK CITY OF LAK~NORE (SEAL) ~ g .... . . . . . ` r ~ ._ ., ~ RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City Clerk " City of Lake Elsinore 130 South Main Street Lake Elsinore, California 92330 DEVELOPMENT AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND SRIGHTON ALBERHILL ASSOCIATES FOR ALBERHILL RANCH DEVELOPMENT , .. TABLE OF CONTENTS 1. PARTIES AND DATE . . . . . . . . . . . . . 2. DEFINITIONS . . . . . . . . . . . . . . . 3. RECITALS. 3.1 Legal authority. . . . . . . . . . . . . 3.2 Consistency findiag . . . . . . . . . . . . . 3.3 Status of project. . . . . . . . . . . . . 3.4 Annexation to City . . . . . . . . . . . 3.5 Entitlements and approvals . . . . . . . . . 3.6 Consideration . . . . . . . . . . . . . . . . 4. PROPERTY COVERED . . . 5. INTEREST OF CONTRACTING PARTY . . . . . . . . . . 6. 'DURATION OF AGREEMENT . . . . . . . . . . . . . . 6.1 Scheduling . . . . . . . . . . . . . . . 6.2 Periodic review . . . . . . . . . . . 6.3 Certification of completion. . . . . . . . . 7. AMENDMENTS . . . . . . . . . . . . . . . . . . . 8. PERMITTED USES OF PROPERTY. . . . . . . . . . . . 9. VESTING OF RULES, REGULATIONS AND OFFICIAL POLICIES . . . . . . . . . . . . . . 9.1 Effective standards . . . . . . . . . . . . . 9.2 No conflicting enactments. . . . . . . . . . 9.3 Initiatives and moratoria. . . . . . . . . . 9.4 Subsequent changes in state or federal laws . . . . . . . . . 9.5 Fees, conditions and dedications ...... (1) Filing and processing fees . . . . . (2) Taxing power . . . . . . . . . . (3) Commercial rent control or office condominium conversion . . . . (4) Future tentative maps, specific plan amendments and development impact fees 9.6 Life of subdivision maps . . . . . . . . . . 10. EFFECT OF AGREEMENT WHEN RULES CHANGE . . . . . . . . . . . . . . . . . . . 11. COOPERATION AND COVENANT OF FURTHER ASSURANCES . . . . . . . . . . . . . . . . -i- Pacre 1 2 4 4 4 5 7 7 8 l. 12 12 12 14 14 15 17 20 20 20 20 21 22 2 2 24 25 25 25 25 ~~ . i 11.1 Third party actions . . . . . . . . . . . . 25 11.2 Further assurances . . . . . . . . . . . . . 26 11.3 Processing. . . . . . . . . . . . . ~ 26 permits. . . . . . . 11.4 Other governmental 28 11.5 Financing of public facilities and/or services. . . . . . . . . . . . . . 29 11.6 Utilities coordination. . . . • 30 fair dealing .. 11.7 Covenant of good faith and 30 12. PERMITTED DELAYS . . . . . . . . . . . . . . . . . 31 13. ESTOPPEL CERTIFICATES . . . . . . . . . . . . . . 31 14. RECORDATION BY CITY CLERK . . . . . . . . . . . . 32 15. DEFAULT . . . . . . . . . . . . . . . . . . . . . 32 15.1 Events of default . . . . . . . . . . . . . 32 15.2 Remedies . . . . . . . . . . . . . . . . . . 33 15.3 No waiver . . . . . . . . . . . . . . 33 15.4 Effect of termination . . . . . . . . . . . 33 16. ENFORCED DELAY AND EXTENSION OF TIME OF PERFORMANCE . . . . . . . . . . . . . . . 34 17. APPLICABLE LAW . . . . . . . . . . . . . . . . . . 35 18. NO JOINT VENTURE OR PARTNERSHIP . . . . . . . . . 35 19. ADDRESSES FOR NOTICES . . . . . . . . . . . . . . 35 20. COVENANTS RUNNING WITA THE LAND . . . . . . . . . 36 21. EFFECT OF AGREEMENT . . . . . . . . . . . . . . . 37 22. CONSISTENCY OF FINDING . . . . . . . . . . . . . . 37 23. TERMS OF CONSTRUCTION . . . . . . . . . . . . . . 38 23.1 Severability. . . . . . . . . . . . . . 38 23.2 Entire agreement . . . . . . . . . . . . . . 38 23.3 Signature pages . . . . . . . . . . . . . . 38 23.4 Time . . . . . . . . . . . . . . . . . . . . 38 24. CONSENT OF OTHER PARTIES . . . . . . . . . . . . . 39 25. ASSIGNMENT AND NOTICE . . . . . . . . . . . . . . 39 26. ENCUMBRANCES AND RELEASES ON REAL PROPERTY. ... 40 26.1 Discretion to encumber . . .. .. 40 26.2 Entitlement to written notice of default .. 40 26.3 Property subject to pro rata claims. .... 41 26.4 Releases . . . . . . . . . . . . . . . . . . 41 -ii- ~n r 27. OPERATING MEMORANDA . . . . . . . . . . . . . . . 41 28. INSTITUTION OF LEGAL ACTION . . . . . . . . . . . 42 29. INSURANCE . . . . . . . . . . . . . . . . . . . . 43 29.1 Compensation insurance . . . . . . . . . . . 44 29.2 Fublic liability and property ~ damage insurance . . . . . . . . . . . . . . 44 EXHIBITS A. Existing Alberhill Ranch Specific Plan Land Use Plan B. Golf Course Draft Alternative Land Use Plan C. Property Covered by Development Agreement -iii- I Y" DEVELOPMENT AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND BRIGHTON ALBERHILL ASSOCIATES FOR ALBERHILL RANCH DEVELOPMENT 1 PARTIES AND DATE The parties to this Development Agreement ("Agreement") are the City of Lake Elsinore, California, a municipal corporation and political subdivision of the State of California ("City"), and Brighton Alberhill Associates, a California general partnership ("Developer"). The project to which this Agreement applies is commonly known as "Alberhill Ranch." This Agreement ~ is made and entered into on JG~H ~ , 1990. It is the intent of City and Developer that Developer secure the entitlement to 2,235 residential dwelling units pursuant to approved Ci,ty of Lake Elsinore Specific Plan No. 89-2 in exchange for payment of special fees in the amounts set forth in this Agreement and compliance with all other terms and conditions of this Agreement. It is the further intent of City and Developer that Developer have the opportunity to secure an additional entitlement, through a Specific Plan amendment, to 500 additional attached or detached residential dwelling units in exchange for construction of a golf course/clubhouse facility, payment of special fees in the amounts set forth in this Agreement and compliance with all other terms and conditions of this Agreement. -1- ~i ~I "~ 2. DEFINITIONS 2.1 "Agreement" means this Development Agreement made and entered into by and between the City of Lake Elsinore and Brighton Alberhill Associates in accordance with applicable state law and local regulations. 2.2 "CEQA" means the California Environmental Quality Act of 1970 (California Public Resources Code Section 21000 et sea.) and the State CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et se~c.). 2.3 "City" means the City of Lake Elsinore, including ic ' officials, officers, employees, commissions, committees and boards. 2.4 "City Council" means the duly elected City Council of the City of Lake Elsinore. 2.5 "Developer" means Brighton Alher~ill Associates, including its successors and assigns. 2.6 "Development" means the improvement of the Property for the purposes of constructing and otherwise effecting the structures, improvements and facilities comprising the Project as set forth in this Agreement, including but not limited to grading, the construction of infrastructure and public facilities related to the Project (whether located within or outside the Property), the construction of structures and buildings and the installation of landscaping. 2.7 "Development Approval(s)" means site specific plans, maps, permits, and other entitlements to use of every kind or nature approved or granted by City in connection with the -2- ~ <I~ "~ ~ development of the Property, including but not limited to general plan amendments, specific plans and amendments thereto, EIRs, negative declarations, categorical or statutory exemptions, site ~ plans, development plans, tentative and final subdivision tract maps, vesting tentative maps, parcel maps, conditional and special use permits, grading and building permits, and other similar permits, maps, plans, authorizations, licenses and entitlements. 2.8 "Effective Date" means the date this Agreement is recorded with the Riverside County Recorder or the effective date of the annexation of the Property to City, whichever occurs later. The parties acknowledge that this Agreement shall not become operative and enforceable until and unless such annexation is completed. 2.9 "EIR" means an environmental imgact report prepared in accordance with the provisions of CEQA. 2.10 "Existing Development Approvals" means those development approvals in effect on the Effective Date of this Agreement with respect to the Property, including but not limited to Specific Plan No. 89-2 (as adopted or as may thereafter be amended from time to time upon application by Developer), annexation of the Property to City, this Agreement and general plan and zoning provisions. 2.11 "Existing Land Use Ordinances" means all those land use ordinances, resolutions, policies, rules and regulations adopted by City in effect on the Effective Date of this Agreement, including but not limited to those which govern the permitted -s- ~2 ~~~ ~ uses of land, the density and intensity of use, subdivision codes, fees and exactions, growth management, design improvement and construction standards and specifications applicable to development of the Property. 2.12 "LAFCO" means the Riverside County Local Agency Formation Commission. 2.13 "Project" means the development project contemplated by the Existing Development Approvals, including but not limited to the land use plan encompassed by Specific Plan No. 89-2 with respect 'to the Property, consisting of not less than 2,235 and not more than 2,735 dwelling units (in accordance with Section 8 .below) and 2,722,500 square feet of commercial/industrial buildings, including but not limited to all on-site and off-site improvements, as such development project is further defined, enhanced or modified pursuant to the provisions of this Agreement. 2.14 "Property" means the real property which is the subject of this Agreement and described in Section 4 below. 3. RECITALS 3.1 Legal authority. California Government Code Section 65864 et s~. authorize City to enter into development agreemer in connection with the development of-real property within City. This Agreement is made and entered into pursuant to those provisions of state law. 3.2 Consistency findinq. By approving and executing this Agreement, the City Council finds that its provisions are -4- consistent with City's General Plan, Specific Plan No. 89-2, and all other applicable Existing Land Use Ordinances of City. 3.3 Status of Proiect. Since November, 1987, various property owners and developers have been in the process of planning, financing and preparing for the Development commonly known as the Alberhill Ranch, a large scale mixed use phased Development of some 3705 dwellings on 1853 acres in the City of Lake Elsinore more particularly described in City of Lake Elsinore Specific Plan No. 89-2 and City of Lake Elsinore EIR No. 89-2. Additional land uses include commercial (neighborhood commercial and highway and office commercial), schools, ooen space and recreational uses,.including two 5-acre neighborhood parks and one 30-acre community park. Exhibit "A" attached hereto and incorporated herein by this reference shows the intended land uses contemplated by the Specific Plan. Constructinq the Alberhill Ranch project pursuant to City's approved Specific Plan and providing the mitigation set forth in EIR No. 89-2 will require major investment by Developer in public facilities and onsite and offsite improvements. The Development has been analyzed and reviewed by City as part of its process of granting Development Approvals in light of the enacted land use standards and policies of.City embodied in its Existing Land Use Ordinances and pursuant to state law, including but not limited to CEQA. City and Developer contemplate that there may be a future amendment to Specific Plan No. 89-2 proposed by Developer, which City encourages and supports, to establish an 18-hole championship public golf course, together with related - 5 - ,~/_ ~~,~~ii facilities, including but not limited to a championship clubhouse, within the designated open space area. The precise nature and scope of the golf course and clubhouse, including a phasing schedule therefor, shall be detailed in any amendment to the Specific Plan. (A draft concept plan for the golf course is attached hereto as Exhibit "B" and incorporated herein by this reference. City and Developer agree that this draft is for illustrative purposes only, is preliminary in nature, may be revised in whole or in part, and shall not be binding on either party.) The golf course and related facilties, to be operated Developer or its assignee, shall be open on a priority basis to members of the.public, including meetings of civic.and community organizations in the following manner: within the fourth quarter of each calendar year, City and the golf course/clubhouse operator shall meet and confer to establish a mutually agreeable priority use schedule for use of civic and community activities to occur during the following calendar year. Meeting room facilities shall be made available at no fee to the City Council, City Manager's office and City commissions, boards and committees not less than two (2) days per calendar month. Residents of Lake Elsinore and municipal employees shall be granted a 10% discount on green fees. City shall be entitled to periodically review t public nature of the golf course operation, including the schedules for use of clubhouse facilities. Developer shall use its best efforts to evaluate and apply for a golf course/clubhouse Specific Plan amendment as discussed above and, in the event the amendment is submitted and approved, City agrees -6- ~ to permit the construction of 500 additional attached or detached dwelling units on the Property (in excess of the 2,235 dwelling units herein provided) at such locations as are indicated on the Specific Plan amendment. In order to accomplish this golf course/clubhouse Specific Plan amendment, the parties recognize that a corresponding reduction in the amount of permanent passive open space will be necessary. The parties acknowledge and aqree that the establishment of the above-discussed golf course and civic and community use of the clubhouse meeting facilities shall be deemed to satisfy any and all deficiencies in required park and recreational lands and/or in-l~eu fees pursuant to Specific ..P1an.No..89-2. Shared civic use of clubhouse facility by City shall run in perpetuity as consideration for in-lieu fee offset. 3.4 Annexation to Citv. On August 8, 1989, at a duly noticed public hearing, the City Council adopted Resolution No. 89-35, which granted its consent to the initiation of annexation proceedings pursuant to the Cortese-Knox Local Government Reorganization Act of 1985 (Government Code Section 56000 et s~.) for the real property encompassed by Specific Plan No. 89- 2. A landowner-initiated annexation petition was thereafter filed with LAFCO. If the annexation of the Property is approved by LAFCO, the matter will be submitted to the City for final approval pursuant to Government Code Section 57002(b) or, if notice and hearing are required, the matter will be set for hearing by City at the earliest possible scheduled time following LAFCO approval. 3.5 Entitlements and aoorovals In contemplation of the -7- e annexation of the Alberhill Ranch property, applications for various Development Approvals have been submitted to City in connection with the Development of the Alberhill Ranch project, including but not limited to the following: (1) Certification oE a Final EIR on the Alberhill Ranch project. (2) Specific Plan No. 89-2 approval (which shall constitute the applicable zoning for the Alberhill Ranch project). (3) General Plan amendment approval. (4) Preannexation zoning approval (consistent with Specific Plan No. 89-2). (5) Approval of this Agreement (which includes a finding of consistency with the General Plan). (6) Annexation of the project site to City. It is contemplated that as of the Effective Date of this Agreement, all of the above Development Approvals will have been granted or approved by City. 3.6 Consideration. City has determined that entry into this Agreement will further,City's goals and objectives of becoming a major retail center and recreation and resort-oriented community in the region. This Agreement will also further the goals and objectives of City's land use planning policies by eliminating uncertainty in planning for and securing orderly Development of the Project so that adequate long-term plans regarding the provision of necessary infrastructure for existing and future City residents can be developed and implemented. Further, the maximum effective utilization of resources within City will be pursued at the least economic cost to its citizens. City acknowledges that the Project is and shall be considered a -8- ^ ~ ~2" single, integrated development project, that each phase of the Project is dependent upon the completion and occupancy of each other phase, and.that the viability of each phase of the Project ~ is and shall be dependent upon the completion and occupancy of each other phase and the full performance of this Agreement. The benefits conferred by Developer herein will facilitate the installation of certain public improvements and will help increase traffic capacity for the road system of City, both of which will promote the health, safety and general welfare of existing and future City residents. In exchange for these benefits to City and its residents, Developer wishes to receive the assurances permitted by state law that Developer may proceed to develop the Project in accordance with Existing Land Use Ordinances, and its existing financial and contractual commitments, and at a rate of Development of its choosing, subject to the terms and conditions contained in this Agreement. The assurances provided by City and Developer to each other herein are provided pursuant to and as contemplated by statute, bargained and in consideration for the undertakings of the parties, and are intended to be and have been relied upon by the parties to their detriment. - City and Developer agree that the following amenities and improvements.being provided by Developer as part of the planning, financing and construction of the Alberhill Ranch project will result in substantial general public benefit: a. As part of the Development of the Alberhill Ranch project, Developer will provide a substantial amount of permanent -9- ~ d r~ passive and active open space, including the golf course and related facilities referenced in Section 3.3 above, in accordance with the applicable provisions of the Specific Plan. Develooer agrees to provide as a turn key project the combined 15-acre elementary school site/park for park purposes only in conjunction with the first phase of the Project, and operational concurrent with opening of project's Phase I model complex. The school site portion, consisting of approximately 10 acres, shall be graded, hydroseeded and irrigated by Developer, who shall also install soccer and baseba~l fields in accordance with City standards f such facilities. City acknowledges that Developer intends to <convey the school site to the appropriate school district, and City further acknowledges that the future availability of the school site for City use after the conveyance shall be subject to mutual agreement of City and the school-district. b. The Development of the commercial portion of the Alberhill Ranch project will produce new jobs and a positive fiscal impact. The commencement of commercial development is conditioned on the availability of utility services and the assurances that the Project may proceed to its conclusion pursuant to the terms and conditions of this Agreement. c. Developer will design and construct a waste water treatment plant with capacity greater than that required just ror ' the Alberhill Ranch project. d. Developer will design and construct a water distribution system including storage capacity in excess oF that required just for the Alberhill Ranch project. -10- r e. Developer will design and construct improvements to the circulation system located within the boundaries of Specific Plan , No. 89-2, including half-width improvements for Lake Street, Nichols Road and Coal Road. These improvements will provide street capacity in excess of needs generated by the Alberhill Ranch project. The parties acknowledge that additional in-tract and off-tract improvements and associated fees may be required in connection with the subdivision review process occurring in the future; provided, however, such improvements and fees must be expressly authorized by state and local laws and must bear a direct and reasonable relationship in fact to needs, impacts and burdens:proximately created by the proposed subdivision. f. Within one (1) month after the Effective Date of this Agreement, Developer agrees to pay the sum of $100,000.00 to City for the purpose of preparing a report to~study the needs assessment, economic feasibility and evaluation of potential sites for a possible mixed use cultural/performing arts center, including enclosed theater and open air amphitheater facilities. in the event the actual cost of the report does not exceed $100,000.00, City shall refund the remaining difference to Developer. The consideration to Developer for the provision of these special amenities which are not otherwise legally required of Developer is the consummation of this Agreement by City. g. In consideration for City's entering into this Agreement and the uses permitted herein, Developer agrees to support the annexation to City and further agrees that it will -11- ,~ <~l~Iii, r comply with all the conditions of approval during the time this Agreement is in full force and effect. The parties acknowledge that this Agreement by City is a material consideration for Developer's acceptance of the conditions of approval as specifically set forth herein. h. Developer shall cooperate to the extent feasible to work with City and the Lake Elsinore Foundation to keep the point of sales tax within the city. i. Developer shall pay to City substantial Development Agreement Fees, as set forth in Section 9.5(1) below for municipal capital facilities and impr:ovements and municipal public services. 4. PROPERTY COVERED The portion of the Alberhill Ranch property covered by this Agreement is described in Exhibit "C" attached hereto and incorporated herein by this reference. 5. INTEREST OF CONTRACTING PARTY Developer has a legal and eguitable interest in the real property subject to this Agreement and described above in Section 4. 6. DURATION OF AGREEMENT 6.1 Schedulina. Pursuant to Government Code Section 65865.2, the duration of this Agreement shall be for fifteen (15) calendar years from and after the effective date hereof. -12- Construction of the Project covered by this Agreement-will be diligently undertaken following receipt of requisite Development Approvals from City. City and Developer acknowledge that Developer cannot at this time accurately predict the time schedule within which the Project will be developed, except that it will be completed within the aPoresaid fifteen (15) year period. Such decisions with respect to the rate of Development of the Project will depend upon a number of circumstances not within the control of Developer, including market factors, demand, the state of the economy, and other matters. Therefore, so long as the Project is constructed in a manner consistent with City's_Existing Land.Use Ordinances and Existing Development Approvals and this Agreement, Developer shall have the right to construct the Project at the rate and in the sequence deemed appropriate by Developer within the exer~ise of its sound business judgment; provided, however, that Developer shall have the vested right to construct a minimum of 745 dwelling units (the "Residential Construction Minimum") and 907,500 square feet of commercial/industrial buildings (the "Commercial/Industrial Construction Minimum") per year on the Property, subject to increase as hereinafter set forth. The Residential Construction Minimum and the Commercial/Industrial Construction Minimum shall be increased each year by the number of dwelling units or amount of square feet, respectively, equal to any difference between the Residential Construction Minimum and the Commercial/Industrial Construction Minimum for previous years during the term oE this Agreement, less the actual number of dwelling units or square -13- footage of Development constructed in such previous years. It is Developer's present reasonable expectation that Development of the Project will be completed within the term of this Agreement. For purposes of this Agreement, completion of the Project shall mean the date on which a certificate of occupancy or comparable instrument is issued for the last improvement or structure constructed pursuant to this Agreement. Following the expiration of the aPoresaid fifteen (15) year term, this Agreement shall be deemed terminated and of no further force and effect; provided, however, that such termination shall not affect any right of Developer arising from City entitlements for the Project which were approved prior to, concurrently with or subsequent to the approval of this Agreement. 6.2 Periodic review. City shall, in accordance with . applicable state law, review this Agreement at least once every twelve (12) months from and after the Effective Date hereof. During each such periodic review, City and Developer shall have the duty to demor:strate their good faith compliance with the terms and conditions of this Agreement. Soth parties agree to furnish such evidence of good faith compliance as may be reasonably necessary or required. City's failure to review at least annually Developer's compliance with this Agreement shal] not constitute or be asserted by either party as a breach of the other party. 6.3 Certification of completion. Promptly upon completion of the Project, City shall provide Developer with an instrument so certifying. This certification shall be a conclusive -14- ~'~. f •~ determination that the obligation of Developer under this Agreement has been met. The certification shall be in such form as will enable it to be recorded in the Official Records of ~ Riverside County, California. 7. AMENDMENTS Except as otherwise provided herein, this Agreement may be amended in whole or in part only by mutual written consent of the I i, parties and in the manner provided by Government Code Section , 65868. Any minor deviation from this Agreement, as discussed ~ below, does not require an amendment to this Agreement. I Upon the written,request of Developer for a minor amendment or modification to Specific Plan No. 89-2, including but not ! I limited to the location of buildings, streets and roadways and ; other physical facilities, or the configuration of the parcels, ~' lots or development areas set forth in the Specific Plan or the subdivision maps, City's Community Development Director or his/her designee shall determine whether the requested amendment or modification is consistent with this Agreement, the City's General Plan, Specific Plan No. 89-2 and applicable provisions of City's zoning and subdivision ordinances in effect as o~ the Effective Date of this Agreement. For purposes of this Agreement, the determination whether such amendment or modification is minor shall depend upon whether the amendment or modification is minor in the context of the overall Alberhill Ranch project. If the Community Development Director or his/her designee finds that the proposed amendment is both minor and -15- ~~ r consistent with this agreement, City's General Plan, Specific Plan No. 89-2, and applicable provisions of City's zoning and subdivision ordinances, the Community Development Director or his/her designee may approve the proposed amendment without notice and public hearing. For purposes of this Agreement and notwithstanding any City ordinance or resolution to the contrary, lot line adjustments, or building construction or remodeling projects confined within the exterior perimeter of the building footprints shall be deemed minor amendments or modifications. Such amendments or modifications approved pursuant to this section shall not constitute su~sequent discretionary approvals subject to further CEQA review or determination. In the event that Developer's request for a minor amendment or modification is denied by the Community Development Director or his/her designee, Developer shall have the right to appezl such determination to the Planning Commission, and thereafter to the City Council if necessary, in accordance with the City's applicable appeal procedures. Upon the approval of any minor amendment or modification as provided above in this section, City shall provide -Developer with an instrument so certifying. The certification shall be in such form as will enable it to be recorded in the Official Records o Riverside County, California. Except as provided above in this section, the amendment or modification of Specific Plan No. 89-2 shall be subject to the applicable substantive and procedural provisions of City's zoning, subdivision and other applicable land use ordinances in -16- ~~~f/ effect (1) on the date of the request for the amendment or modification as to changes relating to the permitted uses of the Property and the density and intensity of use, and (2) on the Effective Date of this Agreement as to all other amendments or modifications. 8. PERMITTED USES OF PROPERTY The permitted uses of the Property, the density and intensity of use, the maximum height, bulk and size of the proposed buildings on the property, the design standards for such ' construction, and provisions for reservation or dedication of land for public purposes are all set forth in Specific P1an No. ' 89-2.and are incorporated.herein by this reference. They are the i i uses of the Property covered by this Agreement 4dhich are i specifically permitted by this Agreement and City is bound to ~' permit those uses on the Property. Citp-agrees to grant and I implement Development Approvals for the Project and to grant other land use and construction approvals, subject to the applicable review and conditioning process, including but not limited to grading permits, building permits, subdivision maps, lot line adjustments, use permits, variances and certificates of occupancy reasonably necessary or desirable to accomplish the goals, objectives, policies and plans shown and described in the Specific Plan No. 89-2 and this Agreement. It is expressly understood that Developer shall have a vested right and be entitled to construct 2,235 dwelling units and an additional 500 dwelling units in the event of a Specific Plan amendment for a golf course as referenced above in Section 3.3, and approximately -17- ~~~ 47 acres of Neighborhood Commercial and Highway and Office Commercial uses consisting of 2,722,500 square feet of buildings. Multi-family uses may overlay the commercial zones, and commercial uses may overlay the multi-family zones, but in no event shall the total number of dwelling units exceed 2,735. Multi-family density may be up to thirty (30) dwelling units per acre and be constructed up to three (3) stories subject to design review, in accordance with the criteria set forth in the Specific Plan or as may be subsequently amended. Developer will provide its fair share of affordable housin~ within the multi-family zones of the Specific Plan. If area within the.multi-family zones prove deficient, areas with Commercial zones shall be utilized. The total number of affordable units in the low and very low income ranges, as determined by the County of Riverside me~ian average, shall be equal to 5°s of the total number of residential dwelling units actually constructed by Developer. The affordable mix between low and very low income ranges shall be based on the current Housing Element standards. The affordable housing shall begin construction upon the completion of 500 of the Specific Plan's total units and shall be completed upon the completion oE 75% of the Specific Plan's total units based on the estimated build-ou City will assist Developer in providing its fair share of affordable housing by providing access to available redevelopment set aside funds. Other economic incentives such as bond assistance, reduction of development standards, etc., may also be offered at the discretion of City. -18- Developer will be responsible ~/~L r ~ for implementing changes that from time to time may occur to City's Housing Element, where such changes occur on a city-wide equitable basis. The affordable units shall remain in the affordable categories as long as City maintains a regional affordable housing requirement. City further agrees to grant and implement subsequent Development Approvals for the Project related to building construction or remodeling confined within the exterior perimeter of the building footprints identified on Specific Plan No. 89-2. Any such building construction or remodeling shall be subject to the maximum height and exterior architectural design specifications set forth in Specific Plan No. 89-2. The aforementioned subsequent discretionary approvals shall be granted and approved by City on a timely basis, provided applications for such approvals are submitted to City during the term of this Agreement. Developer's failure to develop the Project shall not result in any liability for Developer except as is provided in this Agreement. Notwithstanding any provision herein to the contrary, City agrees that Developer shall have the right to co.*nmence grading the Property at any time after the effective date of this Agreement (subject to securing a grading permit), and that permits will not be denied based on season or date provided that Developer agrees to comply with all required precautions, to use due care in grading activities and to take reasonable steps to prevent erosion, slippage or dangerous runoff conditions. -19- ~ ~ ~ 9. VESTING OF RULES, REGULATIONS AND OFFICIAL POLICIES 9.1 Effecti:~e standards. Except as otherwise provided in this Agreement, the written rules, regulations, official policies and conditions of approval (as adopted by ordinance, resolution, minute order or other such official method) governing permitted uses for the Project, development, density and intensity of use, design, improvement, construction and building standards, occupancy and specifications applicable to the Project, and all on-site and off-site improvements and appurtenances in connecti~n therewith, including without limitation the conditions of approval shall be those rules, regulations and official policies in force upon the Effective Date of this Agreement which are not inconsistent with Specific Plan No. 89-2. 9.2 No conflicting enactments. Neither City nor any agency of City shall enact an ordinance, resolution or other measure which relates to the rate, timing or sequencing of the Development or to the construction of the Project on all or any part of the Property, including but not limited to the development standards therefor, which is in conflict with this Agreement. 9.3 Initiatives and moratoria. In the event an ordinance, resolution or other measure is enacted, whether by action of City, by initiative, referendum or otherwise which relates to the rate, timing or sequencing of the Development or construction of the Project on all or any part of the Property, City agrees that such ordinance, resolution or other measure shall not apply to the Project, the Property, or the Existing Development Approvals -20- to the extent that such ordinance, resolution or other measure is in conflict with this Agreement. Without limiting the foregoing, City agrees that no moratorium or other limitation (whether or not relating to the rate, timing or sequencing of Development) affecting subdivision maps, building permits or other entitlements to use which are approved or to be approved, issued ~ I or granted within City, or portions of City, shall apply to the ! i Project, the Property or the Existing Development Approvals to ' the extent it is in conflict with this Agreement. To the maximum extent permitted by law, City agrees to use its best efforts to prevent any such ordinance, measure, moratorium or other ' limitation.from.invalidating or prevailing over all or any part , i of this Agreement, and City agrees to cooperate with Developer in a reasonable manner in order to keep this Agreement in full force and effect. City shall not support or adopt any initiative, referendum, moratorium, ordinance, policy or take any other action (including but not limited to the delay or stoppage of the development, processing or construction of the proposed project) which would violate the intent of this Agreement. Developer reserves the right to challenge any such ordinance or other measure in a court of law should it become necessary to protect the development rights vested in the Project and the Property pursuant to this Agreement. 9.4 SubseQUent chanqes in state or federal laws. This Agreement shall not preclude the application to the Project of any state or federal laws or regulations enacted after the Effective Date of this Agreement cahich prevent or preclude -21- ~A~ compliance with one or more provisions of this Agreement pursuant to Government Code Section 65869.5. In the event such changes in state or federal law prevent or preclude compliance with one or more provisions of this Agreement, City and Developer shall take such action as may be required pursuant to this Section 9 and Section 11 of this Agreement. 9,5 Fees, condi*_ions and dedications. Developer shall make only those dedications and pay only those fees expressly prescribed in this Agreement, the Existing Development Approvals, and subsequent Development Approvals, provided that such dedications and fees are imposed on a city-wide basis. (1) Filina and processinq fees. The filing and processing fees for all Development Approvals for the Project charged by City shall be those fees which are in force and effect on a city-wide basis at such time building permits are issued. In addition, Developer agrees to pay a special fee ("Development Agreement Fee") for each residential dwelling unit at the time of building permit issuance for municipal capital facilities and improvements and municipal public services, including but not limited to a civic center, police stations, fire stations, libraries, cultural facilities, senior citizen facilities, recreational facilities and corporate yards, in the following manner: (a) For the Project as approved by Specific Plan No. 89-2 and reflected on Exhibit "C" attacned hereto, Developer agrees to pay a fee of $3,000 per unit at the time of building permit issuance during the period from the Effective Date of this -22- ~ Agreement to the fifth anniversary date thereof; a fee of $4,000 per unit at the time of building permit issuance during the period from the fifth anniversary date of the Effective Date of this Agreement to the tenth anniversary date thereof; and a fee of $5,000 per unit at the time of building permit issuance during the period from the tenth anniversary date of the Effective Date of this Agreement ta the expiration date hereof. (b) For the Project as may be amended by a future amendment to Specific Plan No. 89-2 providing for a golf course and related facilities as described in Section 3.3 above, Developer agrees to pay a fee of $1,000 per unit at the time of .building permit issuance during the term of this Agreement; provided, however, that at least 9 holes of the golf course are operational and open to public play by the fifth anniversary date of the Effective Date of this Agreement and that the remaining 9 holes and clubhouse are operational and open to public play/use by the seventh anniversary date of the Effective Date of this Agreement. If either (i) 9 holes of the golf course are not operational and open to public play by the fifth anniversary date of the Effective Date of this Agreement or (ii) the remaining 9 holes of the golf course and the clubhouse are not operational and open to public play/use by the seventh anniversary date of the Effective Date of this Agreement, then the fee shall be $2,000 per unit at the time of building permit issuance Eor each permit not yet issued Por the remaining term of the Agreement following the fifth or seventh anniversary dates, respectively, provided that the entire 18-hole golf course and clubhouse are -23- ~i ~'~~ e operational and open to public play/use by the tenth anniversary date of the Effective Date of this Agreement. If the entire 18- hole golf course and clubhouse are not operational and open to public play/use by the tenth anniversary date of the Effective Date of this Agreement, then the fee shall be $3,000 per unit at the time of building permit issuance for each such permit not yet ' issued for the remaining term of the Agreement. City agrees to provide Developer with a periodic accounting, or upon reasonable request by Developer, set~ing forth the amount , of Development Agreement Fees levied and collected by City and the specific purposes and/or projects for which such fees are expended. City agrees in good faith to use its best efforts to locate certain new municipal capital facilities and improvements on the Property in consultation with and with the consent of Developer. (2) Taxina power. Nothing in this Agreement shall prohibit the adoption and application of a special tax approved by City's voters, provided that such tax is imposed on a city- wide basis. (3) Commercial rent control or office condominium conversion. During the term of this Agreement, City shall not impose or enact any ordinance, regulation, fee or condition wh h~ directly or indirectly controls or otherwise restricts market ' forces on commercial or residential rents charged within the ~ Property, or applies directly or indirectly to the conversion of office or residential rental units to condominiums within the Property. -24- ~ /~,~, (4) Future tentative maps, specific plan amendments and develoAment impact fees. Developer will be subject to conditions as a result of tentative map review or specific plan ~ amendments and to any developmelt impact fees that may be adopted by City on a city-wide basis. 9.6 Life of subdivision maos. Pursuant to Government Code Section 66452.6(a), the term of any subdivision maps approved for the Project shall be extended for the term of this Agreement. 10. EFFECT OF AGREEMENT WHEN RULES CNANGE City's rules and regulations governing permitted uses of the ;Property,.its.density ot development, and its design, improvement and construction standards are those rules and regulation in force at the Effective Date of this Agreement. However, this Agreement does not prevent City in subsequent actions generally applicable to the Property and other similarly situated real property within City from enacting and imposing changes in City's uniform building, plumbing, mechanical, electrical and fire codes, providing said changes are (1) necessary to protect the public health and safety and (2) not in conflict with the rights conferred by this Agreement. 11. COOPERATION AND COVENANT OF.FURTHER ASSURANCES 11.1 Third oartp actions. Dev2loper and City shall cooperate in defending any action or proceeding instituted by any third party challenging the validity of any provision of this Agreement or any action taken or decision made hereunder. -25- Developer agrees to assume the lead role in the defense of any such action or proceeding so as to minimize litigation expenses incurred by City. In addition, any court action or proceeding ~ brought by any third party to challenge this Agreement or any other permit or approval required from City or any other governmental entity for Development or construction of all or any portion of the Project covered by this Agreement shall constitute a permitted delay under Section 12. Notwithstanding the foregoing, the filing of any third party litigation against City and/or Developer relating to this Agreement or any provision thereof shall not be a reason to delay or stop the Development, processing or.construction of the Project (including but not limited to the issuance of building permits or certificates of occupancy) uniess the third party obtains a court order preventing the activity. City will not stipulate to the issuance of any such court order. 11.2 Further assurances. Each party covenants on behalf oP itself and its successors and assigns to take all actions and do all things, and to execute with acknowledgments or affidavits if required any and all documents and writings that may be necessary or proper to ac~ieve the purposes and objective of this Agreement. Each party shall take.all necessary measures to see that the provisions of this Agreement are carried out in full. 11.3 Processina. If necessary or required, upon satisfactory completion by Developer of all required preliminary actions and payments of appropriate filing and processing fees, if any, City shall use its best efforts to promptly commence and -26- ~~ diligently proceed to complete all steps required or r.ecessary for the implementation of this Agreement and the Development by Developer of the Project in accordance with the Existing " Development Approvals, including but not limited to the following: (1) The City Council shall instruct City's Planning Department, City's Planning Co.~unission and all other relevant agencies of City which are affected or may be affected use their best efforts to diligently process any and all Development Approvals necessary for Developer to obtain all necessary permits to begin and complete construction of the Project. (2) City.shall use its best efforts to schedule, convene and conclude all required public hearings in a diligent manner consistent with applicable laws and regulations in force as of the Effective Date of this Agreement. (3) City shall use its best efforts to process and approve in a diligent manner, all maps, plans, land use permits, building plans and specifications and other applications for Development Approvals relating to the Development of the Project, filed by Developer, including but not limited to all General Plan and Specific Plan amendments, zoning, final development plans, tentative maps, parcel maps, final maps, resubdivisions, amendments to maps, subdivision improvement agreements, lot line adjustments, encroachments, grading and building permits, variances, use permits and related matters as necessary for the completion of the development of all lots and parcels comprising the Project, to the extent permitted by law. -27- ~~~ ~ (4) City will use its best efforts to maximize the amount of acreage which is released for grading and allocated to City pursuant to the Riverside County Short-Term Habitat Conservation Plan for the Stephens Kangaroo Rat and will take such steps as may be necessary or appropriate from time to time to secure such maximum allocation. (5) Developer agrees to process such ~ermits as may be' necessary for its golf course plan with the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service and California Department of Fish and Game in an expeditious manner and to report monthly to City on the progress of same. Developer will use its best efforts to timely provide City with all documents, applications, plans and other information necessary for City to carry out its obligations ; hereunder and cause Developer's planners, engineers and all other' consultants to submit in a timely manner all required materials and documents therefor. It is the express intent of Developer and City to cooperate and diligently work to implement any General Plan amendment, zoning, final Development plan and/or other land use, grading or building permits or approvals which are necessary or desirable in connection with the development of the Project in substantial conformance with this Agreement. 11.4 Other vovernmental permits. In addition, DevelopeL shall apply in a timely manner for such other permits and approvals as are required by other governmental agencies having ~ jurisdiction over the Project in connection with the development of, or provision of services to, the Project. City shall i -28- ~~ ~ cooperate with and use its best efforts to assist Developer in coordinating the implementation of the Project with such other governmental agencies and in obtaining permits, approvals and ~ services from those agencies as may be necessary to implement the Project. 11.5. Financinq of public facilities and/or services. City and Developer shall in good faith use their best efforts to establish one or more community facilities districts (pursuant to the Mello-Roos Community Facilities Act of 1982 as set forth in Government Code Section 53311 et se~c.) and such other assessment, improvement or maintenance districts, as may be appropriate, for the purpose of funding the planning, design, construction and maintenance of publio facilities, including related fees (including those referenced above in Section 9.5) and the acquisition of land therefor, and/or the provision of public services for the Project. The parties expect that bonds, assessments, liens or other such financing devices would be issued or levied to provide sufficient funds for the above- mentioned purpose. City and Developer agree that the proportion of assessed real property value allocated to real property taxes and aggregate debt service may go up to but shall not exceed two percent (2s), and City shall take no action to limit such allocation to less than two percent (2%). City acknowledges that completion of proceedings to establish one or more public financing districts as discussed above is critical to provide the parties with security for performance by Developer of its obligation to commence and complete construction of major -29- . ~v~ infrastructure. To the extent that the infrastructure required by City to be constructed by Developer is in excess of the needs and demands of the Project and will be utilized by future developments, City agrees to use its best efforts to cause such future developments to contribute to the costs of the infrastructure (including but not limited to the formation of an assessment district) and, from such funds, cause appropriate reimbursement payment(s), including interest at the legal rate, to be made to Developer after first reimbursing the public financing district to the extent district funds were expended ' construct the infrastructure. Developer understands that City has f.ormed a joint powers authority under the Marks-Roos Local Bond Pooling Act of 1985 known as the "Lake Elsinore Public Financing Authority" and that City policy requires all public financing by City to be funded through said Authority. 11.6 Utilities coordination. City shall use its best efforts to assist Developer in obtaining all electrical, gas, telephone and other necessary utility connections required by the Project. Within a reasonable time after request therefor by Developer, City shall approve all connection and access points for such utilities if in compliance with all applicable ordinances,.rules and regulations. 11.7 Covenant of aood faith and fair dealinq. Except as may be required by law, neither party shall do anything which shall have the effect of harming or injuring the right of the other party to receive the specified and described benefits of this Agreement; each party shall refrain from doing anything -30- \I" ~ _ _ _ _ __ r ~ which would render its performance under this Agreement - impossible or impractical; and each party shall do everything which this agreement describes that such party shall do. 12. PERMITTED DELAYS Developer shall be excused from performance of its obligations hereunder during any period of delay caused by acts of God or civil commotion; riots, strikes, picketing, or other Iabor disputes; unavoidable shortage of materials or supplies; damage to work in progress by reason of fire, flood, earthqua;ce or other casualty; litigation; initiatives or referenda; .,moratoria; acts or neglect of City; or unanticipated restrictions ~ imposed or mandated by other governmental entities. Each party shall promptly notify the other party of any delay hereunder as soon as possible after the same has been ascertained, and the term of this Agreement shall be extended by the period of any such delay. 13. ESTOPPEL CERTIFICATES Either party may at any time, and from time to time, deliver written notice to the other party requesting the other party certify in writing that to the knowledge of the certifying party: (1) this Agreement is in full force and effect and is a binding obligation of the parties; (2) this Agreement has not been amended or modified, and, if so amended or modifi'ed, to identify the relevant documents; and (3) no default in the performance of the requesting party's obligations under this Agreement exists -31- ~ ?.~ f or, if in default, the nature of any default. A party receiving a request hereunder shall execute and return the certificate within thirty (30) days following the receipt thereof. 14. RECORDATION SY CITY CLERK Pursuant to Government Code Section 65868.5, within ten (10) days of City's execution of this Agreement the City Clerk shall record a copy with the Riverside County Recorder. Therearter, the burdens of this Agreement shall be binding upon, and the benef,its of this Agreement shall inure to, all successors in interest to-the parties to this Agreement. 15. DEFAULT 15.1 Events of default. Subject to any written extension of time by mutual consent of the parties, and subject to the provisions of Section 12 regarding permitted delays, the failure of either party to perform any matsrial term or provision of this Agreement sha11 constitute default if such defaulting party does not cure such failure within thirty (30) days following written notice of default from the other party; provided, however, that if the nature of the default is such that it cannot be cured within thirty (30) days, the commencement of a cure within sucr period and the diligent prosecution to completion of the cure shall be deemed to be a cure within sucn period. Any notice of default given hereunder shall specify in detail the nature of the alleged default and the manner in which such default may be satisfactorily cured in accordance with the terms and conditions -32- of this Agreement. During the time periods herein specified fcr cure of a failure of performance, the party charged with such failure of performance shall not be considered to be in default ~ for purposes of termination of this Agreement, or for purposes of institution of legal proceedings with respect thereto, or for purposes of issuance of any building or grading permit with - respect to the Project (provided that failure of performance is unrelated to the entitlement to obtain such permit). 15.2 Remedies. Upon the occurrenc~ of default under this section and the expiration of any applicable cure period, the non-defaulting party shall have such rights and remedies against the.defaulting party as it may have at law or in equity, including but not limited to the right to terminate this Agreement. 15.3 No waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party shall not constitute waiver of such party's right to demand strict compliance by such other party in the future. All waivers must be in writing to be effective or binding upon the waiving party, and no waiver shall be implied from any omission by a party to•take any action with respect to such default. No express written waiver of any default shall affect any other default, or cover any other,period of time except that specified in such express waiver. 15.4 Effect of termination. Termination of this Agreement by one party due to the other party's default shall not affect any right or duty emanating from City entitlements or approvals -33- on the Project, but the rights, duties and obligations of the parties hereunder shall otherwise cease as of the date of such termination. If City terminates this Agreement because of Developer's default, City shall retain any and all benefits I including money or land received by City hereunder. If Developer terminates this Agreement because of City's default, Developer shall be entitled to a return or a refund of all unused benetits and exactions paid, given or dedicated to City pursuant to this Agreement. 16. ENFORCED DELAY AND EXTENSION OF TIME OF PERFORMANCE In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war, insurrection, ' strikes, walk-outs, riots, floods, earthquakes, fires, I casualties, acts of God, litigation, referenda, initiatives, moratoria, governmental restrictions imposed or mandated by other ', governmental entities, enactment of conflicting City, county, state or federal laws or regulations, judicial decisions, or similar basis for excused performance which is not within the reasonable control of the party to be excused. If written notice of such delay is given to either party within thirty (30) days f the commencement of such delay, an extension of time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. -34- . ~y ~ 17. APPLICABLE LAW This Agreement shall be construed and enforced in accordance with the laws of the State of California. 18. NO JOINT VENTL'RE OR PARTNERSHIP City and Developer hereby renounce the existence of any form „ of joint venture or partnership between City and Developer, and expressly agree that nothing contained herein or in any document executed in connection herewith shall be construed as making City and Developer joint venturers or partners. It is understood that the contracbual relationship between City and Developer is such that Developer.is an independent contractor and not an agent of City. Furthermore, this Agreement is not intended, or shall it be construed, to create any tnird party beneficiary rights in any person who is not a party to this Agreement. 19. ADDRESSES FOR NOTICES Any notice sent to either party under this Agreement shall be in writing and shall be given by delivering the same to such party in person or by sending the same by registered mail, return receipt, with postage prepaid, to the following addresses: City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92330 Attn: City Manager Brighton Alberhill Associates 505 North Tustin Avenue Suite 250 Santa Ana, CA 92705 Attn: Mr. Todd Cunningham -35- , < I !/~r~: ~ 20. COVENANTS RUNNING WITH THE LAND - All of the terms, provisions, covenants and obligations contained in this Agreement shall be binding upon the parties and their respective successors and assigns, and all other persons or entities acquiring all or any portion of the Property, and shall inure to the benefit of such parties and their respective successors and assigns. All the provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running witr. the land pursuant to applicable law, including but not limited to California Civil Code Section`146k Each covenant to do or refrain from doing some act on the , property covered by.this Agreement is for the benefit of such property and is a burden upon such property, runs with such property and is binding upon each party and each successive owner during its ownership of such property or any portion thereof, and shall b'enefit each party and its property hereunder, and each other party succeeding to an interest in such property. Notwithstanding the foregoing, upon the sale or lease for more than one year of a dwelling unit or office or commercial or industrial space by Developer to a member of the public, but not upon the bulk sale thereof to any person or entity for resale to the public, such residential unit or office, commercial or industrial space shall be automatically released from the terms, provisions, covenants and obligations of this Agreement without the necessity of executing or recording any specific instrument of release. -36- ~~ti 21. EFFECT OF AGREEMENT City and Developer agree that unless this Agreemerit is amended or terminated pursuant to its provisions, this Agreement `shall be enforceable by any party hereto notwithstanding any change hereafter enacted or adopted in any General Plan amendment, Specific Plan, zoning ordinance, subdivi~ion ordinance, or any other land use ordinances or building ordinances, resolutions or other rules, regulations or policies of City which change, alter or amend the rules, regulations and policies applicable to the Development of the Project as of the Effective Date of this Agreement as provided by Government Code Section 65866. This Agreement shall not prevent the City from taking subsequent actions applicable to the project from applying new rules, regulations and policies which (1) are necessary to protect the public health and safety, (2) are not directly or indirectly in conflict with those rules, regulations, policies applicable to the Project as set forth herein, and (3) do not prevent or materially frustrate the Development of the Project as contemplated herein. 22. CONSISTENCY FINDING By approving and executing this Agreement, City finds that its provisions are consistent with City's General Plan and with Specific Plan No. 89-2, and City further finds and determines that execution of this Agreement is in the best interests of the public health, safety and general welfare of City's residents, property owners and taxpayers. -37- ~~Z/ 23. TERMS OF CONSTRUCTION 23.1 Severabilitv. If any term, provisions, covenant or condition of this Agreement shall be determined invalid, void or ` unenforceable by judgment or court order, the remainder of this Agreement shall remain in full force and effect, unless enforcement of this Agreement as so invalidated would be unreasonable or grossly inequitable under all the circumstances, or would frustrate the stated purposes of this Agreement. 23.2 Entire aareement. This written Agreement contains all the representations and the entire agreement between City and Developer.- Any prior correspondence, memoranda, agreements, - warranties or sepresentations are superseded.in total by this Agreement. This Agreement shall be construed as a whole according to its common meaning and not strictly for or against any party in order to achieve the objectives and purposes of the parties hereunder. Whenever required by the context of this Agreement, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine or neutered genders. "Shall" is mandatory and "may" is permissive. 23.3 Sianature pages. For convenience, the signatures of the parties to this Agreement may be executed and acknowledged on separate pages which, when attached to this Agreement, shall ' constitute this document as one complete Agreement. 23.4 Time. Time is of the essence of this Agreement and of each and every term and condition hereof. '' -38- ~ti ~~ ~ ~ ~ .~ 24. CONSENT OF OTHER PARTIES Developer may, at its discretion, elect to have other , holders of legal, equitable or beneficial interests in the j ~ Project, the Property or portions thereof, acknowledge and , consent to the execution and recordation of this Agreement by 'I executing an appropriate instrument therefor. It is understood by the parties that the execution of such document by other ' i holders of legal, equitable, or beneficial interest in the ~ i Project is not a condition precedent to this Agreement. j 25. ASSIGNMENT AND NOTICE Developer shall have.the right to assign or transfer all or any portion of its interests, rights or obligations,under this Agreement to third parties acquiring an interest or estate in Project, the Property or portions thereof, including but not limited to purchasers or long-term ground lessees of individual lots, parcels, or of any of the buildings located within the Project. Developer shall give prior written notice to the City of its intention to assign or transfer any of its interest, rights or obligations under this Agreement. Any failure by Developer to provide said notice shall be curable in accordance with the provisions of Section 15 hereof. The express assumption of any of Developer's obligations under this Agreement by its assignee or transferee shall thereby relieve Developer of any further obligations under this Agreement. Notwithstanding the foregoing, Developer shall have no obligation whatsoever to provide said notice when it intends to assign an interest in this -39- ~ <If f Agreement in connection with a conveyance or transfer to a bank or other financial institution or corporation for financing purposes of an equitable interest in the Project and/or the ~' Pro~erty whether by means of a deed of trust or other instrument. 26. ENCUMBRANCES AND RELEASES ON REAL PROPERTY 26.1 Discretion to encumber. The parties hereto agree that this Agreement shall not prevent or limit Developer in any manner, at Developer's sole discretion, from encumbering the subject real Property or any portion of any improvement thereo by any mortgage, deed of trust or other security device securing financing with.respect to the Property. City acknowledges that the lenders providing such financing may require certain modifications and City agrees, upon request, fro~ time to time, to meet with Developer and/or representatives of such lenders to negotiate in good faith any such request for modification. City further agrees that it will not unreasonably withhold its consent to any such requested modification so long as the modifications do not materially alter this Agreement. 26.2 Entitlement to written notice of default. The mortgagee of a mortgage or beneficiary of a deed of trust, and their successors and assigns, or any mortgage or deed of trust encumbering the property, or any part thereof, which mortgagee, beneficiary, successor or assign has requested notice in writing received by City, shall be entitled to receive written ~; notification from City of any default by Developer in the performance of Developer's obligations under this Agreement which II -40- ~~ is not cured within thirty (30) days. 26.3 Property subiect to pro rata claims. Any mortgagee who comes into possession of the property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to any pro rata claims for payments or charges against the Property, or part thereof secured by such mortgage which accrue prior to the time such mortgagee comes into possession of the Property or part thereof. 26.4 Releases. City hereby covenants and agrees that upon completion of the public improvements and payment of all fees :,required under this Agreement with:respect to the Property, or any portion thereof, City shall execute and deliver to the Riverside County Recorder appropriate release or releases of further obligations in form and substance acceptable to the County Recorder or as may otherwise be necessary to effect such release. 27. OPERATING MEMORANDA The parties acknowledge that from time to time it may be in the mutual interest of the parties that certain details relative to performance of this Agreement be refined. Therefor, to the extent allowable by law, the parties retain a certain degree of flexibility with respect to those provisions covered in general under this Agreement which do not relate to the term, permicted uses, density or intensity of use, height or size of buildings, provisions for reservation and dedication of land, timing, rate ; -41- ~~ , or sequence of development, conditions, terms, restrictions and .. requirements relatinq to subsequent discretionary actions, development of public improvements or monetary contributions by ~ Developer or any conditions or covenants relating to the use of the Property. When and if the parties find it necessary or I appropriate to make changes or adjustments to such provisions, they shall effectuate changes or adjustments through operating ' memoranda in recordable form approved by the parties in writing ', which reference this Section 27. For purposes of this Section I 27, the City Manager or his/her designee upon report to and ' approval by the City Council, shall have the authority to approve ' ,.. the operating.memoranda on behalf of City. No operating memoranda shall require notice or hearing or shall be deemed to constitute an amendment to his Agreement. 28. INSTITUTION OF LEGAL ACTION. In addition to any other rights or remedies, either party may institute legal action to cure, correct or remedy any default, to enforce any covenants or agreements herein or to ! enjoin any threatened or atter,pted violation thereof or to obtain any remedies consistent with the purpose of this Agreement. In the event of any such legal action involving or arising out of this Agreement, the prevailing party shall be entitled to recover reasonable litigation expenses, attorneys' fees and costs incurred. It is understood between the parties that in the event ~, a breach of this Agreement by City occurs, irreparable harm is likely to occur to Developer and damages may be an inadequate I -42- ~/i~ : remedy. To the extent permitted by law, therefore, it is expressly recognized that specific enforcement of this Agreement by Developer is a proper and desirable remedy in addition to any A and all"other remedies which may be available to Developer under law or at equity. 29. INSURANCE. Developer agrees to and shall hold City, its officers, agents, employees and representatives harmless from liability for , damage or claims for damage,for personal injury including death and claims for property damage which may arise out of the direct or..indirect operation.of Developer. or.those of their.contractors, subcontractors, agents, employees or other persons acting on their behalf which relate to the Project. Developer agrees to and shall defend City and its officers, agents, employees and representatives from actions for damages caused or alleged to have been caused by reason of Developer's activities in connection with the Project. This hold harmless agreement applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications or both for the Project and regardless of whether or not the insurance policies referred to below are applicable. Before beginning work on the Project, Developer shall obtain the insurance required under this paragraph and receive the -43- .~('t~~; ~ ~ approval of City Attorney as to form, content, amount and carrier. Developer shall maintain the insurance during the term of this Development Agreement. The insurance shall extend to City, its elective and appointive boards, commissions, officers, agents, employees and representatives and to Developer and each contractor and subcontrac:or performing work on the Property: 29.1 Compensation Insurance. Developer shall maintain Workers Compensation Insurance for all persons employed at the site of Project. Developer shall require each contractor and subcontractor similarly to provide Workers Compensation Insura ~ for their respective employees. Developer agrees to indemnify ..City for damage..resulting-from the failure to take out and maintain such insurance. 29.2 Public Liability and Prooertv Damaae Insurance. Developer shall maintain public liabili.ty insurance in an amount not less than One Million Dollars ($1,000,000.00) for injuries (including death) to any one person and in an amount not less than One Million Dollars ($1,000,000.00) on account of any one occurrence; and property damage insurance in an amount not less , than One Hundred Thousand Dollars ($100,000.00) for damage to the , property of each person on account of any one occurrence. Developer shall furnish City before beginning work on the Project with a Certificate of Insurance constituting satisfactory , evidence of the insurance required and providing that each -44- I ~~1 , carrier is required to give City at least ten (10) days prior written notice by certified mail of the cancellation or reduction I in coverage of any insurance. ~ bEVELOPER: BRIGHTON ALBERHILL ASSOCIATES, a California genera~artnership By. ~~' Ge ra tner CITY: CITY OF LAKE ELSINORE, a municiyfal corporation and political subdiv jsion of the State of Califo~Mia , i _ e By: A TEST: ~ City Cler -45- 1 STATE OF CALIFORNIA ) ) ss. COUNTY OF ~,e,v.~4.E ) On this /7~ day of ~~~ v , 1990, before me the undersigned, a Notar~ Public in and for said State, personally appeared ~'on S(.~,~,~,vo-.w,a~.~, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the within instrument as the General Partner of Brighton Alberhill Associates. WITNESS my hand and official seal. A~1D Cd11m. E%p. OCL 4. 7992 ary STATE OF CALIFORNIA COUNTY OF RIVERSIDE On this llth day of ~U~Y , 1990, before me the undersigned, a Notarp Public in and for said State, personally appeared Gary M. 4lashburn , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the within instrument as the Mayor of the City of Lake Elsinore, California, and acknowledged to me that said City of Lake Elsinore, Califo'rnia executed it. WITNESS my hand and official seal. 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" . ~ . - , ~ WITH G~tF ~ CO~URSE . ~ . ~ ~ ` - ~ ~ . ~ ~ ,,- : ~~ - _--- -.--; .v:~~ ~~ ~r-~-__-,_ EXH I BIT - B " . . ~ _ _ ~-~_ : - - . . r - ,---~ _~ i ~ _ -~~ ~ Y_, % ~i ~~~.~ r'~s~.. _ . ~_ _ --- ~„ . " ' . _.>~-~ % i . •-~- ~;_`~; ' ... ~ - ..:71\~ `. ~,t ~J~ : l,~ ~F\ '~ : ~~~~~. ~~ ; -~,~~ ~ , , ? 'o. M1 ~~ \Q , ` `" ,~ ` f ;~ - ~ ~'18~BB~SINGIE F/JAILV UNR~ ~ a ~`I J :-I 3W MULTI{ LY IINIIS . O NZ '~ f ~, 2288 TOT.1l UNI ~ 'p A~g .. ^ ., :. j~~~~,: `. c'~ " f j~ ~ R'~ -3 cuAaEi+rvur+vnTMSioEinr•.m.~.w...sro i+ ~` 4; !~ ~ ~ l 1 ~ PETNNINGYMLLSONLY. C PO2I SINGtE F~MILY l1NITS i~~~ W iro e ~ `\~ ( ,~/ /~ \~ ' p . 30p MULTI-FAMILY UNRS ~ ' ~~ ~~ \ `\ \- \ \ ~ \ 232] TOT,{L UNITS ~a u~f r++rn~ . 1 \~~ ~`~~ l ~ I.-~ 1 I \ ",1 \\l.`~~,r.fl1 i~~ \ I ~ Y „"~"~. ~"~ C / - IXXiPENTPLQIWRHPMHIGH un4~~~ xfiEINFOHCEDE~RTIATTOEOFSIDPEFF~~ - ~ ) 1' ~~ l\ l/~ ~. ,~ ` I~~ ('" n l l .~' ~_ ~. q1. ~ `~^ 'i~ > \J ~ f~. I ' I~ ~ ~~ LOMMEHCIGLANDSCHOOLP~S. ' M21 SINQIE FAMILV UNITS ^ ,~ 1~ ~~ t ~ 1 ~ ~ I ~ ~ 1~;•• J \ )'. I ~ ~~ ~ / ': ~ f~~ \ ~ 1 300MULT1-FAMILYUNRS ` ~ \l~~ ~\ j ~ 1~' ~ ~ . ' ~l-~' / ~ 2321 TOTAL UNfIJ muiec.,cm n .. .. •. ~'f. ~ ,\, ~l\ 1~; 1. ~ 1 ~ ~~ , ~\ / r \ \ A ^ . C .~ ~ 1 . \J." ~NJ~~ i4[iz~-~,: lili ., ~ ..vo..wvonrommami..~wunaw~ewa . . ~ ' ~I1 `i~j,~(~t~~]1 ~ ~u»~ov arsw[uu;M2wwm~nunnwa. , ~ ~ ~ ~ ^ - ~~~4 , i #++ii,ni (' ~ ~~ i , ,; ,~\ „ a~ ~ ~~ B~RHILL~ Ri~NC ~~ -~~~ `-~1,~:~,~ A ~. ~II 1 ifI ~ \I~\\~i~ ~ aBRIGHT'ON,ALBERHI ,SSOCIATE~ ~ ;,7~'~+ ~~',, ~= ,~ ~ ~ < ' ° • " ~ ~i '~ ; :~ - . - ,. .. ~ . . ~~ . _._ . ~. a,';~ / L . ' ' ~ PREPARED FOR .. , - , i~r~"qhron l, . , ~~ ~1^ `605 N TU&TN AVENUE surE zbo ~ `\ , ~ ~- SAN,7A ~NA, CA Y2T05 y ~-\~ .`~"~ ~ b1Q BB)-3BBG ' _.,,,. . ~11~~ '` \\~:~ ~ ~ i PREPA(iED BY: • ~C.~ I ~ 1 ~ ,~i~i, .~. ~~ ~' ~ I!~~}!~../.._ ._ ~- ~.~~- ~_5p ~~~u ~ BPA4 50 K ,,~~`4~~ ~` b' SGAk p~ ~ K ~ / b PROPERTY COVER~D BY THIS AGREEMENT :;~;::;:::~:~:::;::::;::~;;::: EXHIBIT C ~~ nk ~ ~v ak ~ • 8PA y. j s~°' lPI~• l 08 ~r ~c qf K I B00 0 M K SP~• ~ ~'_ nk OS~ ~ _ _ _ ~ ~J __ ~ ~ t