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HomeMy WebLinkAboutItem No. 12 Devel Agrmnt Village at Lakeshore PrjctText File City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 17-346 Agenda Date: 9/12/2017 Status: Public HearingVersion: 1 File Type: ReportIn Control: City Council / Successor Agency Agenda Number: 12) Page 1 City of Lake Elsinore Printed on 9/7/2017 Page 1 of 3 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared by: Justin Kirk, Principal Planner DATE:September 12, 2017 PROJECT: Development Agreement For The Village At Lakeshore Project-A request by Sunwood Lakeview, LLC for approval of a Development Agreement pursuant to California Government Code Sections 65864- 65869.5 in connection with the development of 163 condominiums on an approximately 20 acre site located at the northwest corner of Grand Avenue and Riverside Drive. APPLICANT:Dana Kuhn, Sunwood Ventures Recommendation adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING A DEVELOPMENT AGREEMENT FOR AN 163 DETACHED CONDOMINIUM DEVELOPMENT LOCATED ON APPROXIMATELY TWENTY (20) ACRE PROJECT SITE. Background On August 15, 2006, the Planning Commission reviewed and recommended approval of The Village at Lakeshore Specific Plan and its related applications (Mitigated Negative Declaration No. 2006-05, Specific Plan No. 2005-01, Zone Change No. 2005-01, Tentative Condominium Map No. 33267, Conditional Use Permit No. 2005-21, and Residential Design Review No. 2005- 09). On September 12, 2006, the City Council approved The Village at Lakeshore Specific Plan and its related applications. The previously approved The Village at Lakeshore Specific Plan (Specific Plan No. 2005-01) was an infill residential project on an approximately twenty (20) acre site. The approved project featured 146 attached single-family condominium residences within thirty-seven (37) separate detached buildings consisting primarily of four (4) attached units each. A community recreation facility and recreational vehicle storage area was also identified. Page 2 of 3 In 2014, the applicant applied for an amendment to The Village at Lakeshore Specific Plan and a new residential product. The proposed new residential product modified the previously approved Residential Design Review No. 2005-09 by changing the condominium type from 146 attached single-family condominium residences within thirty-seven (37) separate detached buildings consisting primarily of four (4) attached units each to 163 single-family detached condominium residences. In addition the proposed modification updated the site plan, architectural design, and the recreational amenities. On May 5, 2015, the Planning Commission reviewed and recommended approval of the first amendment to The Village at Lakeshore Specific Plan and Residential Design Review (RDR) No. 2014-07. On June 23, 2015, the City Council approved of the first amendment to The Village at Lakeshore Specific Plan and Residential Design Review (RDR) No. 2014-07. On September 5, 2017, the Planning Commission reviewed and recommended approval of the Development Agreement. Discussion Project Request The applicant is requesting the approval of a development agreement to facilitate the development of a previously approved 163 detached condominium development. Project Location The approximately twenty (20) acre project site is located at the northwest corner of Grand Avenue and Riverside Drive, Assessor Parcel Number(S) 379-050-006, 379-050-034, 387-170- 004, 387-170-006, 387-180-001, 387-080-003/004, and 387-080-004. Environmental Setting EXISTING LAND USE GENERAL PLAN ZONING Project Site Vacant Specific Plan Specific Plan North Commercial Commercial Park (CP)Future Specific Plan “P” South Residential County Unincorporated County East Vacant/Mobile Home Commercial Park (CP)Future Specific Plan “I” West Apartments/Vacant High Density Res. Future Specific Project Description The proposed development agreement would have a seven (7) year term from the Effective Date. The proposed agreement amongst other items would memorialize the following items: Vested Rights: The development agreement provides certainty in the development process by providing a vested right in the existing entitlements and in the applicability of the City’s existing land use regulations to the development of the Project. During the term of the agreement, the Project will be exempt from newly adopted City land use regulations and fees. Page 3 of 3 Existing Development Fees: During the term of this agreement, the City shall impose and Vested Party shall be required to pay only existing development fees in connection with the development of the Property and the processing of applications for Land Use Entitlements submitted by Vested Party. This limitation does not apply to impact fees, exactions, assessments or fair share charges or other similar fees or charges imposed by other governmental entities regardless of whether the City is required to collect or assess such fees (e.g., school district impact fees pursuant to Government Code Section 65995). Development Agreement Fees: Developer shall pay a Development Agreement Fee in the amount of Five Hundred Dollars ($500) per residential unit. Analysis The proposed Development Agreement has been negotiated by the City Attorney and the applicant’s Legal Counsel. The proposed Development Agreement is an instrumental document in the facilitation of the development of 163 detached condominiums. The subject project is a benefit to the City and would encourage future development in the immediate adjacent community and the City in general. The proposed development agreement has been reviewed for consistency with respect to the State Government Code and the Lake Elsinore Municipal Code and has been found to meet all legal requirements. Environmental Determination Pursuant to the California Environmental Quality Act (CEQA), the Project received environmental clearance and analysis in connection with the approval of the Village at Lakeshore Specific Plan Amendment (SPA) No. 2014-02, Conditional Use Permit (CUP) No. 2005-21, Tentative Tract No. 33627 and Residential Design Review (RDR) No. 2014-07 by an Addendum to a Mitigated Negative Declaration (MND) (SCH No2006017027) which adequately describes the Project for the purposes of CEQA. The Development Agreement is consistent with the Lake Elsinore General Plan, the Village at Lakeshore Specific Plan, the Lake Elsinore Municipal Code and Project approvals and does not conflict with the findings and discussions contained in the MND. Exhibits: A. DA Resolution B. DA C. Vicinity Map D. Aerial Map ORDINANCE NO. 2017-__ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING A DEVELOPMENT AGREEMENT FOR AN 163 DETACHED CONDOMINIUM DEVELOPMENT, LOCATED ON APPROXIMATELY 20 ACRE PROJECT SITE Whereas,Sunwood Lakeview, LLC has requested approval of a Development Agreement pursuant to California Government Code Sections 65864-65869.5 in connection with the development of 163 condominiums on an approximately 20 acre site located at the northwest corner of Grand Avenue and Riverside Drive; and, Whereas,pursuant to LEMC Chapter 19.12 (Development Agreements) the Planning Commission (Commission) of the City of Lake Elsinore (City) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the Development Agreement is consistent with the City’s General Plan and whether to approve the Development Agreement; and, Whereas,on September 5, 2017, at a duly noticed Public Hearing, the Commission considered evidence presented by the Community Development Department and other interested parties with respect to this item and recommended approval of the proposed Development Agreement; and, Whereas,pursuant to LEMC Chapter 19.12 the Council of the City has the responsibility of making decisions to approve, modify or disapprove recommendations of the Commission for Development Agreements; and, Whereas,on September 12, 2017, at a duly noticed Public Hearing, the Council has considered evidence presented by the Community Development Department and other interested parties with respect to this item. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, DOES HERBY ORDAIN AS FOLLOWS: Section 1.On September 12, 2006, the City Council approved and adopted Mitigated Negative Declaration (MND) No. 2006-05 which analyzed the environmental impacts associated with the residential development of the subject property, which is now part of Residential Design Review No. 2014-07 and Specific Plan Amendment No. 2014-02. Section 2.Pursuant to CEQA Guidelines Section 15164, an addendum to MND No. 2006-05 was prepared to determine if the Project would have any new significant impacts on the environment. The addendum found no new impacts that exceeded the previously identified impacts that could not be mitigated through the existing mitigation measures contained in MND No. 2006-05 and updated these mitigation measures to meet current standards. Section 3. On May 5, 2015, at a duly noticed Public Hearing, the Commission considered evidence presented by the Community Development Department and other interested parties with respect to this item; and adopted Resolution No. 2015-39 recommending that the Council adopt Addendum #1 to the MND No. 2006-05 for Specific Plan 2005-02 Amendment #1 and Residential Design Review No. 2014-07. Section 4.On June 23, 2015, at a duly noticed Public meeting, the Council considered the recommendation of the Commission as well as evidence presented by the Community Development Ord. No. 2017-______ Page 2 of 4 Department and other interested parties with respect to this item; and adopted Resolution No. 2015- 58 adopting Addendum No. 1 to MND No. 2006-05 for Specific Plan 2005-02 Amendment No. 1 and Residential Design Review No. 2014-07. Section 5.Pursuant to the California Environmental Quality Act (CEQA), the Project received environmental clearance and analysis in connection with the approval of the Village at Lakeshore Specific Plan Amendment (SPA) No. 2014-02, Conditional Use Permit (CUP) No. 2005-21, Tentative Tract No. 33627 and Residential Design Review (RDR) No. 2014-07 by an Addendum to a Mitigated Negative Declaration (MND) (SCH No2006017027) which adequately describes the Project for the purposes of CEQA. The Development Agreement is consistent with the Lake Elsinore General Plan, the Village at Lakeshore Specific Plan, the Lake Elsinore Municipal Code (LEMC) and Project approvals and does not conflict with the findings and discussions contained in the MND. Section 6. That in accordance with California Planning and Zoning Law and the LEMC Chapter 19.12, the Council makes the following findings regarding the proposed Development Agreement: 1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan; The proposed Development Agreement will facilitate the development of a residential community. The proposed development is located in the Specific Plan General Plan Land use designation and is located within the Lakeview planning district. The Lakeview planning district’s primary goal is to provide a revitalized and healthy mixed-use corridor along Riverside Drive with connections to the lake; to ensure adequate public facilities and services to meet the needs of existing and new development and City-adopted specific plans; and to establish policies that create strong links between existing and future LAKE VIEW DISTRICT LV-7 residential communities and supporting commercial, entertainment, or recreational uses. The proposed development agreement would help facilitate the development of a previously approved specific plan that is consistent with the General Plan 2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located; The proposed Development Agreement will facilitate the development of a large sports complex facility. The Project is located The Villages at Lakeshore Specific Plan Amendment #1 and is located in the Medium Density Residential land-use designation. The Medium Density Residential land-use designation specifies the use of condominiums as permitted. 3. It is in conformity with public convenience, general welfare and good land use practices; The approved Village at Lakeshore development which will be facilitated through the proposed Development Agreement was found to be a high value development which will have beneficial impacts to the surrounding community. Furthermore, the approved Addendum 1 to the (MND) No. 2006-05 identified adverse impacts and mitigation to reduce these impacts to levels of less than significant. 4. It will not be detrimental to the health, safety and general welfare; The proposed Development Agreement will facilitate the development a residential community. The previously approved project was found not to be detrimental to the health, safety and general welfare. Ord. No. 2017-______ Page 3 of 4 5. It will not adversely affect the orderly development of property or the preservation of property values; The proposed Development Agreement will facilitate the development of a residential complex. The previously approved project was found not to adversely affect the orderly development of property or the preservation of property values. 6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5. The proposed Development Agreement includes all mandatory provisions required by Government Code § 65865.2 and does not include any provisions that are not authorized by the Development Agreement Act. Section 7. Based upon the evidence presented, the above findings, the Council approves Development Agreement 2017-__. Section 8. Severability.If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Resolution which can be given effect without the invalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable. Section 9. Effective Date. This Ordinance shall take effect thirty (30) days after the date of its final passage or such later date as may be designated by the Council. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. Passed and Adopted on this 12th day of September 2017. ___________________ Robert E. Magee Mayor Attest: ___________________________ Susan M. Domen, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) Ord. No. 2017-______ Page 4 of 4 I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, do hereby certify that the foregoing Ordinance No. 2017-_____ was introduced at the Regular meeting of September 12, 2017, and that the same was approved by the following vote: AYES: NOES: ABSENT: ABSTAIN: Susan M. Domen, MMC City Clerk @BCL@7C1457D5.doc RECORDING REQUESTED BY DRAFT AND WHEN RECORDED MAIL TO: City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 Attn: City Clerk (Space Above Line For Recorder’s Use Only) (Exempt from Recording Fees Per Govt Code §27383) DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND SUNWOOD LAKEVIEW, LLC (THE VILLAGE AT LAKESHORE PROJECT) TABLE OF CONTENTS Page @BCL@7C1457D5.doc -i- 1.DEFINITIONS...................................................................................................................2 2.PURPOSE AND ANALYSIS............................................................................................5 2.1.Vested Right in Existing Land Use Regulations..................................................5 2.2.Development of the Developer Property..............................................................5 2.3.Uses..........................................................................................................................5 2.4.Intensity. .................................................................................................................5 2.5.Size...........................................................................................................................5 2.6.Tentative Subdivision Map Extensions................................................................6 2.7.Timing of Development.........................................................................................6 2.8.No Significant Environmental Impact.................................................................6 3.RULES, REGULATIONS AND OFFICIAL POLICIES..............................................6 3.1.Effect of Agreement on Land Use Regulations...................................................6 3.2.New Rules. ..............................................................................................................7 3.2.1. Processing Fees and Charges................................................................................7 3.2.2. Procedural Regulations.........................................................................................7 3.2.3. Regulations Governing Construction Standards................................................7 3.2.4. Non-Conflicting Regulations.................................................................................7 3.2.5. Certain Conflicting Regulations...........................................................................7 3.2.6. Regulations Needed to Protect the Health and Safety........................................7 3.2.7. Regulation by Other Public Agencies. .................................................................8 3.3.Subsequent Actions and Approvals......................................................................8 3.4.State and Federal Laws.........................................................................................8 4.FEES, TAXES AND FINANCIAL RESPONSIBILITIES............................................8 4.1.Existing Development Impact Fees......................................................................8 4.2.Affordable Housing In Lieu Fee...........................................................................8 TABLE OF CONTENTS (cont'd) Page @BCL@7C1457D5.doc -ii- 4.3.Development Agreement Fees...............................................................................9 4.4.Payment of Development Fees..............................................................................9 4.5.General and Special Taxes....................................................................................9 4.6.Reservations, Dedications, Improvements and Canary Island Date Palm.......................................................................................................................10 5.DURATION OF AGREEMENT....................................................................................10 5.1.Term......................................................................................................................10 5.2.Annual Review. ....................................................................................................10 5.3.Operating Memoranda........................................................................................10 5.4.Amendment. .........................................................................................................11 6.COVENANT OF FURTHER ASSURANCES AND FAIR DEALING......................11 6.1.Further Assurances..............................................................................................11 6.2.Covenant of Good Faith and Fair Dealing. .......................................................11 7.PERMITTED DELAYS..................................................................................................11 8.ESTOPPEL CERTIFICATES........................................................................................12 9.RECORDATION BY CITY CLERK............................................................................12 10.DEFAULT. .......................................................................................................................12 10.1.Events of Default..................................................................................................12 10.2.Remedies...............................................................................................................12 10.3.No Waiver.............................................................................................................13 10.4.Effect of Termination. .........................................................................................13 11.INCORPORATION BY REFERENCE. .......................................................................13 11.1.Recitals..................................................................................................................13 11.2.Attachments..........................................................................................................13 12.APPLICABLE LAW.......................................................................................................13 13.NO JOINT VENTURE, PARTNERSHIP OR THIRD PARTY BENEFICIARY....13 TABLE OF CONTENTS (cont'd) Page @BCL@7C1457D5.doc -iii- 14.COVENANTS RUNNING WITH THE LAND............................................................14 15.TERMS AND CONSTRUCTION..................................................................................14 15.1.Severability...........................................................................................................14 15.2.Entire Agreement.................................................................................................14 15.3.Signature Pages....................................................................................................14 15.4.Time.......................................................................................................................14 15.5.Notices...................................................................................................................14 16.ASSIGNMENT AND NOTICE......................................................................................15 17.ENCUMBRANCES AND RELEASES ON REAL PROPERTY................................16 17.1.Discretion to Encumber.......................................................................................16 17.2.Entitlement to Written Notice of Default...........................................................16 17.3.Property Subject to Pro Rata Claims.................................................................16 18.CONSTRUCTION, NUMBER AND GENDER...........................................................16 19.INSTITUTION OF LEGAL ACTION..........................................................................16 20.INDEMNIFICATION.....................................................................................................17 @BCL@7C1457D5.doc -1- DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND SUNWOOD LAKEVIEW, LLC (THE VILLAGE AT LAKESHORE PROJECT) (Pursuant To Government Code Sections 65864 -65869.5) This Development Agreement (“Agreement”) dated for identification purposes only as of ______________, 2017 (“Date of Agreement”) is entered into by and between Sunwood Lakeview, LLC, a Delaware limited liability company (“Developer”), and the City of Lake Elsinore, a California municipal corporation (“City”). Developer and City are sometimes singularly referred to herein as a “Party” and are collectively referred to herein as the “Parties.” RECITALS A.To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the legislature of the State of California adopted the “Development Agreement Act,” Government Code Sections 65864 through 65869.5. The Development Agreement Act authorizes the City to enter into an agreement with any person having a legal or equitable interest in real property regarding the future development of such property. B.Pursuant to the Development Agreement Act, the City adopted Ordinance No. 996 establishing procedures and requirements for consideration of development agreements as set forth in Lake Elsinore Municipal Code Chapter 19.12 (the “Development Agreement Ordinance”). C.Developer owns approximately 20 acres of real property generally located in the south west portion of the City of Lake Elsinore, California, at the north west corner of Grand Avenue and Riverside Drive and more particularly described as Assessor Parcel Numbers 379- 050-006 and 379-050-034 (the “Developer Property”). The parcels of land comprising the Developer Property are more particularly described in the Legal Description (Attachment “A”) and depicted in the Vicinity map (Attachment “B”). D.Tentative Tract Map (TTM) No. 33267 is a single lot condominium tract map and is part of an entitlement that includes the development of a 163 unit detached single-family condominium project commonly known as The Village at Lakeshore (the “Project”) to be developed in accordance with The Village at Lakeshore Specific Plan Amendment (SPA) No. 2014-02, Conditional Use Permit (CUP) No. 2005-21 and Residential Design Review (RDR) No. 2014-07 (collectively, the “Development Approvals”). E.Developer’s development of the Project and the Developer’s obligations set forth in this Agreement requires significant financial investment by Developer and in order to bring certainty and stability to the City’s regulations applicable to the Development of Developer @BCL@7C1457D5.doc -2- Property, the Developer and the City intend to vest the Existing Land Use Regulations and the development rights under the Development Approvals. F.On ________, 2017, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider Developer’s application for this Agreement and recommended to the City Council approval of this Agreement. G.On ________, 2017, the City Council held a duly noticed public hearing to consider this Agreement and found and determined that (a) this Agreement is compatible with the orderly development of the Developer Property and the surrounding area; (b) this Agreement will have an overall positive effect on the health, safety and welfare of the residents of and visitors to the City; (c) this Agreement constitutes a lawful, present exercise of the City’s police power and authority under the Development Agreement Act and Development Agreement Ordinance; (d) this Agreement is entered into pursuant to and in compliance with the requirements of the Development Agreement Act and the Development Agreement Ordinance; and did therefore, in approving this Agreement introduce for first reading Ordinance No. 2017- ___ (the “Enabling Ordinance”). On _____________, 2017 the City Council conducted the second reading of the Enabling Ordinance thereby approving this Agreement, to become effective thirty (30) days thereafter which date is ________, 2017, (the “Effective Date”). The foregoing true and correct Recitals constitute a substantive part of this Agreement, and the Parties have materially relied upon them as such in their respective determinations to execute this Agreement. NOW, THEREFORE, in consideration of the mutual terms, obligations, promises, covenants and conditions contained herein and for other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties, and each of them, agree as follows: AGREEMENT 1.DEFINITIONS. All initially-capitalized words, terms, and phrases used, but not otherwise defined, in the Recitals shall have the meanings assigned to them in Section 1 of this Agreement, unless the context clearly indicates otherwise. 1.1.“Agreement” means this Development Agreement. 1.2.“Affordable Housing In Lieu Fee” is defined in Section 4.2 of this Agreement. 1.3.“Applicable Rules” means this Agreement, the Development Approvals, the Existing Land Use Regulations, the Development Agreement Act, and the Development Agreement Ordinance. 1.4.“Building Codes” shall mean such California standard, uniform, codes governing construction, including without limitation, the Building Code, Housing Code, Energy Code, Green Building Code, Plumbing Code, Electrical Code, Mechanical Code, and Fire Code @BCL@7C1457D5.doc -3- (including amendments thereto by the Riverside Fire Authority), as modified and amended by official action of the City as set forth in Title 15 of the Lake Elsinore Municipal Code as may be amended from time to time. 1.5.“Business Day” means Monday through Friday, excepting holidays. 1.6.“CEQA” means the California Environmental Quality Act, Public Resources Code Section 21000, et seq.and the implementing regulations promulgated thereunder as the “CEQA Guidelines” (Title 14, California Code of Regulations Section 15000 et seq.) and the City's local guidelines. 1.7.“City” means the City of Lake Elsinore, a municipal corporation. 1.8.“City Council” means the duly elected City Council of the City. 1.9.“City Manager” means the City Manager of the City and his or her authorized designees. 1.10.“Dedication” shall mean Developer’s grant of real property or an interest therein to the City or another governmental, public agency or non-profit entity for a public purpose. 1.11.“Developer” means Sunwood Lakeview, LLC, a limited liability company and its successors in interest to all or any part of the Developer Property. 1.12.“Developer Property” means the real property which is the subject of this Agreement and which is described in Recital C, and more particularly described in Attachment “A” attached hereto and incorporated by this reference. 1.13.“Development” means the construction and/or installation of structures, improvements and facilities on the Developer Property as set forth in this Agreement including, without limitation, grading, the construction of infrastructure and public facilities (whether located within or outside the Developer Property), the construction of buildings and the installation of landscaping. 1.14.“Development Agreement Act” is defined in Recital A of this Agreement. 1.15.“Development Agreement Fee” is defined in Section 4.3. 1.16.“Development Agreement Ordinance” is defined in Recital B of this Agreement. 1.17.“Development Approvals” means Tentative Tract Map (TTM) No. 33267, The Village at Lakeshore Specific Plan Amendment (SPA) No. 2014-02, Conditional Use Permit (CUP) No. 2005-21 and Residential Design Review (RDR) No. 2014-07 as set forth in Recital D of this Agreement. @BCL@7C1457D5.doc -4- 1.18.“Development Fees” means Development Impact Fees, Affordable Housing In Lieu Fees and Development Agreement Fees as set forth in Attachment C. 1.19.“Development Impact Fees” means local or regional impact fees, linkage fees, or exactions, collected as a condition to issuance of grading and/or building permit, or otherwise, imposed by the City on and in connection with Development. Development Impact Fees do not include (a) Processing Fees and Charges; (b) impact fees, linkage fees, exactions, assessments or fair share charges or other similar fees or charges imposed by other governmental entities regardless of whether the City is required to collect or assess such fees pursuant to applicable Laws (e.g., school district impact fees pursuant to Government Code Section 65995), or (c) general or special taxes and assessments. 1.20.“Effective Date” means the date this Agreement and the Enabling Ordinance approving this Agreement become effective as defined in Recital G. 1.21.“Enabling Ordinance” is defined in Recital G. 1.22.“Existing Land Use Regulations” means the City General Plan, Development Approvals and the City’s rules, regulations, ordinances, resolutions, and official policies applicable to the Development and occupancy of the Developer Property which are in effect on the Effective Date, subject to the exceptions set forth in Section 3.2 et seq. Existing Land Use Regulations includes Development Impact Fees subject to the provisions and exceptions set forth in Sections 4.1 – 4.4. 1.23.“Government Code” means the California Government Code. 1.24.“LEMC” means the Lake Elsinore Municipal Code. 1.25.“Parties” mean Developer and the City. 1.26.“Processing Fees and Charges” means all processing fees and charges required by the City in connection with new construction, including, but not limited to, Subsequent Approvals application fees, plan-check and inspection fees, fees for monitoring compliance with any Development Approval or for monitoring compliance with environmental impact mitigation measures. 1.27.“Project” means the Development of the proposed 163 unit detached residential condominium project on the Developer Property pursuant to the Development Approvals. 1.28.“Subsequent Approvals” shall mean all future land use and development entitlements, permits and plans that do not yet exist and are necessary for Development of the Developer Property, including building permits, grading permits, encroachment permits, landscape and signage plans, and other similar permits subject to and including all conditions of approval and any mitigation measures identified and adopted pursuant to the Existing Land Use Regulations and applicable CEQA review, if any, in accordance with the terms of this Agreement. @BCL@7C1457D5.doc -5- 1.29.“Term” is defined in Section 5.1. 2.PURPOSE AND ANALYSIS. 2.1.Vested Right in Existing Land Use Regulations. The City has determined that the proposed Project is consistent with the goals and objectives of the City’s land use and housing policies by providing a mix of 3-bedroom and 4-bedroom quality residential housing opportunities to meet the needs of families in the community in accordance with the Existing Land Use Regulations and eliminating uncertainty in the planning, entitlement and Development processes. In exchange for the Project benefits the Developer wishes to receive the assurances permitted by the Development Agreement Act and the Development Agreement Ordinance such that the Developer will be deemed to have a vested interest in the applicability of the Existing Land Use Regulations to the Development and implementation of the Project and each portion thereof. As such, the Developer, if it chooses, may proceed to develop the Property in accordance with the Existing Land Use Regulations, with certainty that Developer will have the ability to expeditiously and economically complete the Project. 2.2.Development of the Developer Property. The Parties agree and acknowledge that this Agreement itself does not authorize Developer to undertake any Development of the Property and that before any Development activity can occur, the Developer shall have satisfied the conditions of the Development Approvals and obtained any necessary Subsequent Approvals pursuant to the Applicable Rules. The City shall have the right to control Development in accordance with the terms and conditions of the Applicable Rules. 2.3.Uses. The Developer Property may be used in accordance with the Development Approvals, all Subsequent Approvals, and the Existing Land Use Regulations. 2.4.Intensity. Permitted density and intensity of use vested hereby shall be the maximum permitted by the Development Approvals, all Subsequent Approvals, and the Existing Land Use Regulations. 2.5.Size. The maximum height and size of buildings vested hereby shall be as set forth in the Development Approvals, all Subsequent Approvals, and the Existing Land Use Regulations. @BCL@7C1457D5.doc -6- 2.6.Tentative Subdivision Map Extensions. In accordance with Government Code §66452.6(a)(1), TTM No. 33267 shall be granted an extension of time for the greater of the term of this Agreement (in which case no such extension application to extend the expiration date of the tentative map need be filed) or such time approved in accordance with State law or the Existing Land Use Regulations. 2.7.Timing of Development. There is always uncertainty in forecasting future market conditions. Consequently, phasing of development of the Project is difficult to predict or regulate. In order to avoid the result in Pardee Construction Co. v. City of Camarillo, 37 Cal.3d 465 (1984), the City and Developer agree that Developer shall have the right, without obligation, to develop the Project in such order and at such rate and times as Developer deems appropriate within the exercise of its subjective business judgment, subject only to the Development Approvals. Furthermore, the City shall not (whether by City Council action, initiative or otherwise) limit the rate or timing of Development of the Developer Property except as expressly authorized by the Development Approvals. Nothing in this section shall be construed to limit the City’s right to require that Developer timely provide all Required Roadway Improvements and Exactions in accordance with the Development Approvals. 2.8.No Significant Environmental Impact. All potentially significant impacts of the Project have been avoided or mitigated pursuant to the Mitigated Negative Declaration (MND) No. 2006-05 (State Clearinghouse No. 200671027) adopted by the City Council on September 12, 2006 and Addendum #1 to MND 2006-05 approved by the City Council on June 23, 2015. There are no substantial changes to the Developer Property or the circumstances under which the Developer Property is to be regulated and developed under this Agreement when viewed against the Existing Land Use Regulations, including the Development Approvals, and there is no new information of substantial importance which would require preparation of another CEQA document pursuant to CEQA Guidelines Section 15162. The vesting of the Existing Land Use Regulations, including the General Plan and Development Approvals through this Agreement is exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) because there is no possibility that this Agreement will have any significant direct, indirect, or cumulative environmental impacts apart from or beyond those already analyzed, addressed, and mitigated as stated in the environmental documentation prepared and adopted/approved for the Development Approvals pursuant to CEQA. 3.RULES, REGULATIONS AND OFFICIAL POLICIES. 3.1.Effect of Agreement on Land Use Regulations. In connection with any Subsequent Approval with respect to the Developer Property, the City will exercise its discretion or take action in a manner which is as expeditious as possible and which complies and is consistent with the Existing Land Use Regulations and this Section 3 et seq.In addition, the City shall use its reasonable, good faith @BCL@7C1457D5.doc -7- efforts to make its staff available so as to expeditiously complete processing of all Subsequent Approvals for the Development. 3.2.New Rules. Although the Existing Land Use Regulations will govern uses and Development of the Developer Property, this Agreement will not prevent and shall not be construed to limit the authority of City to apply new rules, regulations and policies set forth in this Section 3.2 et seq. on the Developer in connection with the Development of the Developer Property. 3.2.1. Processing Fees and Charges. Processing Fees and Charges as defined in Section 1.26 shall be paid by Developer at the prevalent rate at the time of payment. 3.2.2. Procedural Regulations. Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. 3.2.3. Regulations Governing Construction Standards. Regulations governing construction standards and specifications including without limitation, the Building Codes as defined in Section 1.4. 3.2.4. Non-Conflicting Regulations. Written regulations approved by the City that are not in material conflict with the Applicable Rules and do not materially and adversely impact the Development of the Developer Property. 3.2.5. Certain Conflicting Regulations. Written regulations approved by the City that are in material conflict with the Applicable Rules if Developer has given its written consent to the application of such regulations to Development of the Developer Property. 3.2.6. Regulations Needed to Protect the Health and Safety. Any City ordinance, resolution, regulation, or official policy which is reasonably necessary to protect persons from conditions dangerous to their health and/or safety; provided that any such regulations must constitute a valid exercise of the City’s police power, applied and enforced in a uniform, consistent and nondiscriminatory manner. @BCL@7C1457D5.doc -8- 3.2.7. Regulation by Other Public Agencies. The Parties acknowledge that other public agencies, not within the control of the City, possess authority to regulate aspects of the Development of the Project and the Developer Property separately from the City. This Agreement does not limit the authority of such other public agencies. 3.3.Subsequent Actions and Approvals. The City shall accept and process with reasonable promptness all completed applications for any Subsequent Approval in accordance with the Existing Land Use Regulations; provided, however, this Agreement will not prevent the City, in subsequent actions applicable to the Developer Property, from applying new rules, regulations and policies which do not conflict with the Existing Land Use Regulations, nor will this Agreement prevent the City from denying or conditionally approving any Subsequent Approval on the basis of such Existing Land Use Regulations or such new rules, regulations or policies. Subsequent Approvals shall, upon approval and as may be amended from time to time, become part of the Applicable Rules and the Developer shall have a “vested right,” as that term is defined under California law, in and to such Subsequent Approvals by virtue of this Agreement 3.4.State and Federal Laws. If State or Federal laws or regulations enacted after the Effective Date hereof, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement will be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however that this Agreement will remain in full force and effect to the extent it is not inconsistent with such State or Federal laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. 4.FEES, TAXES AND FINANCIAL RESPONSIBILITIES. 4.1.Existing Development Impact Fees. During the Term of this Agreement, City shall impose and Developer shall be required to pay only the Development Impact Fees, Affordable Housing In Lieu Fees and DAG Fees (collectively “Development Fees”) at the rates existing as of the Effective Date as set forth in Attachment “C” in connection with the use or Development of the Property. 4.2.Affordable Housing In Lieu Fee. Pursuant to Conditions of Approval for the Development Approvals, Developer shall pay “Affordable Housing In Lieu Fee” at the rate of $2.00 per square foot of assessable space for each dwelling unit in the Project. For purposes of this condition, “assessable space” means all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, detached assessory structure, or similar area. The amount of the square footage within the perimeter of a residential @BCL@7C1457D5.doc -9- structure shall be calculated by the building department of the City in accordance with the standard practice of the City in calculating structural perimeters. 4.3.Development Agreement Fees. Upon the City’s issuance of the initial building permit for each residential dwelling unit to be constructed within the Project, Developer shall pay to City a Development Agreement Fee in the amount of Five Hundred Dollars ($500) (each, a “DAG Fee” and collectively, “DAG Fees”). 4.4.Payment of Development Fees. Except as provided hereinbelow, Developer agrees to pay Development Fees in four lump sum installments as follows: (1) Upon issuance of the first (1 st) building permit, Developer shall pay all applicable Development Fees for the first forty-three (43) residential units in the Project. (2) Upon issuance of the forty-fourth (44 th) building permit, Developer shall pay all applicable Development Fees for the next thirty (30) residential units in the Project (i.e. 44th – 73 rd residential units). (3) Upon issuance of the seventy-fourth (74 th) building permit, Developer shall pay all applicable Development Fees for the next thirty (30) residential units in the Project (i.e. 73rd – 103 rd residential units). (4) Upon issuance of the one hundred fourth (104 th) building permit, Developer shall pay all applicable Development Fees for the remaining residential units in the Project (i.e. 104th – 134 th residential units). (5) Upon issuance of the on hundred thirty-fourth (134 th) building permit Developer shall pay all applicable Development Fees for the remaining residential units in the Project (i.e. 134th – 163 rd residential units). Notwithstanding the foregoing, Developer shall pay, at the rate then in effect, (i) applicable Drainage Fees prior to approval of Final TTM No. 33267 and (ii) Quimby Fees prior to issuance of each building permit in accordance with the Lake Elsinore Municipal Code and applicable Resolutions. 4.5.General and Special Taxes. Developer shall pay general or special taxes, including but not limited to, property taxes, sales taxes, transient occupancy taxes, business taxes, which may be applied to the Developer Property or to businesses occupying the Developer Property; provided, however, that the tax is of general applicability Citywide and does not burden the Developer Property @BCL@7C1457D5.doc -10- disproportionately when compared to the development of other residential uses within the City. Nothing in this Agreement prohibits the adoption and application of a CFD special tax requested by the Developer and approved by the City Council in accordance with applicable laws. 4.6.Reservations, Dedications, Improvements and Canary Island Date Palm. Developer shall timely complete at Developer’s cost and expense all reservations, dedications and the provision of improvements and facilities for public purposes in accordance with the requirements of the conditions of approval for the Development Approvals. In addition, Developer shall donate to the City the Canary Island Date Palm located on the Developer Property; provided, however, the City shall be responsible for all costs of removal and relocation. 5.DURATION OF AGREEMENT. 5.1.Term. The Term of this Agreement shall commence as of the Effective Date and shall automatically expire on the seventh (7 th) anniversary thereof. 5.2.Annual Review. City shall review this Agreement annually (“Annual Review”) on or before the anniversary of the Effective Date. During each Annual Review, Developer is required to demonstrate good faith compliance with the terms of this Agreement, and shall furnish such reasonable evidence of good faith compliance as the City, in the exercise of its reasonable discretion, may require. Such Annual Review shall be conducted administratively by the City Manager and any appropriate department heads designated by the City Manager to perform such Annual Review. The City Manager shall report the results of such Annual Review to the City Council within thirty (30) days after the conclusion thereof. No public hearing shall be held by the City Manager or City Council with regard to such Annual Review; provided, however, that the City Council and/or the Developer shall have the right to appeal the City Manager’s findings to the City Council, in which case Developer shall have the right to request a public hearing on the matter. City shall notify Developer in writing of the date for review at least thirty (30) days prior thereto. The City’s failure to review the Developer’s compliance with this Agreement, at least annually, will not constitute or be asserted by either Party as a breach by the other Party. The requirement for an Annual Review shall not be deemed to modify or restrict Developer’s rights under Section 2.7 to develop the Project in such order and at such rate and times as Developer deems appropriate in view of market conditions and within the exercise of its subjective business judgment, subject only to the Development Approvals. 5.3.Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between the City and the Developer. The Development of the Developer Property may demonstrate that clarifications to this Agreement and the Existing Land Use Regulations are appropriate with respect to the details of performance of the City and the Developer. To the extent allowable by law, the Developer shall retain a certain degree of flexibility as provided herein with respect to all matters, items and provisions covered in general under this Agreement, @BCL@7C1457D5.doc -11- except for those which relate to the (i) term; (ii) permitted uses; or (iii) density or intensity of use. When and if the Developer finds it necessary or appropriate to make changes, adjustments or clarifications to matters, items or provisions not enumerated in (i) through (iii) above, the Parties shall effectuate such changes, adjustments or clarifications through operating memoranda (the “Operating Memoranda”) approved by the Parties in writing which reference this Section 5.3. Operating Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial clarifications; therefore public notices and hearings shall not be required. The City Manager shall be authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment to this Agreement which requires compliance with the provisions of Section 5.4 below. 5.4.Amendment. Subject to the notice and hearing requirements of the Government Code, this Agreement may be modified or amended from time to time only with the written consent of the Developer and the City or their successors and assigns in accordance with the provisions of the Development Agreement Ordinance and the Development Agreement Act. 6.COVENANT OF FURTHER ASSURANCES AND FAIR DEALING. 6.1.Further Assurances. Each Party covenants on behalf of 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 achieve the purposes and objectives of this Agreement. Each Party will take all necessary measures to see that the provisions of this Agreement are carried out in full. 6.2.Covenant of Good Faith and Fair Dealing. Except as may be required by law, neither Party will do anything which will have the effect of harming or injuring the right of the other Party to receive the benefits of this Agreement and each Party will refrain from doing anything which would render performance under this Agreement impossible or impractical. In addition, each Party will do everything which this Agreement describes that such Party will do. 7.PERMITTED DELAYS. Any period of delay caused by acts of God; civil commotion; war; insurrection; riots; strikes; walk outs; picketing or other labor disputes; unavoidable shortages of materials or supplies; damages to work in progress by reason of fire, flood, earthquake or other casualty; litigation which prohibits or delays performance of the Agreement; moratoria; judicial decisions; or any other cause which is not within the reasonable control of the Parties may extend the duration of the Agreement. Each Party will 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 will be extended by the period of any such delay. Any claim for delay must be presented within thirty (30) days of knowledge of the cause of such delay or any entitlement to @BCL@7C1457D5.doc -12- time extension will be deemed waived. Notwithstanding the foregoing, in no event shall Developer be entitled to a permitted delay due to an inability to obtain financing or proceed with development as a result of general market conditions, interest rates, or other similar circumstances that make development impossible, commercially impracticable, or infeasible. 8.ESTOPPEL CERTIFICATES. Either Party may at any time, and from time to time, deliver written notice to the other Party, requesting that the other Party certify in writing to the knowledge of the certifying Party that: (a) this Agreement is in full force and effect and is a binding obligation of the certifying Party; (b) this Agreement has not been amended or modified, except as expressly identified; (c) no default in the performance of the requesting Party’s obligations pursuant to Agreement exists, except as expressly identified. A Party receiving a request hereunder will execute and return the requested certificate within 30 days after receipt of the request. 9.RECORDATION BY CITY CLERK. Pursuant to Government Code § 65868.5, the City Clerk will record a copy of the Agreement in the Records of the County Recorder. 10.DEFAULT. 10.1.Events of Default. Subject to any written extension of time by mutual consent of the Parties or permitted delays pursuant to the provisions of Section 7, the uncured failure of either Party to perform any material term or provision of this Agreement will constitute a default. On written notice to a Party of its failure of performance, such Party will have 30 days to cure such failure of performance; provided, however that if the nature of the failure of performance is such that it cannot be cured within such period, then the diligent prosecution to completion of the cure will be deemed to be cure within such period. Any notice of default given hereunder will be in writing and specify in detail the nature of the alleged default and the manner in which such default may be satisfactorily cured in accordance with this Agreement. During the time period herein specified for the cure of a failure of performance, the Party charged with such failure of performance will 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 and, if the Developer is the Party that has failed to perform, then the City will not be excused from its performance under this Agreement during that period. 10.2.Remedies. Upon the occurrence of a default under this Agreement and the expiration of any applicable cure period, the non-defaulting Party will have such rights and remedies against the defaulting Party as it may have at law or in equity including, without limitation, the right to terminate this Agreement. @BCL@7C1457D5.doc -13- 10.3.No Waiver. The failure by a Party to insist on the strict performance of any of the provisions of this Agreement by the other Party will not constitute a waiver of such Party’s right to demand strict performance by such other Party in the future. All waivers must be in writing to be effective or binding on the waiving Party and no waiver will be implied from any omission by a Party to take action. No express written waiver of any default will affect any other default or cover any other period of time except that specified in such express waiver. 10.4.Effect of Termination. Termination of this Agreement by one Party due to the default of the other Party in accordance with the provisions of Section 10 et seq.will not affect any right or duty emanating from any then existing Development Approval and the conditions of approval related thereto with respect to the Developer Property, but the rights and obligations of the Parties will otherwise cease as of the date of such termination. If the City terminates this Agreement because of a default of the Developer, then the City will retain any and all benefits including, without limitation, money or land received by the City hereunder. Notwithstanding the foregoing, the obligations of Developer indemnify the City as set forth in Section 20 shall survive any termination of this Agreement. 11.INCORPORATION BY REFERENCE. 11.1.Recitals. The Parties agree that the foregoing Recitals are true and correct and that the foregoing Recitals are a part of this Agreement and are hereby incorporated by reference herein as though set forth in full. 11.2.Attachments. Each Attachment to this Agreement is incorporated herein by reference as though fully set forth herein. 12.APPLICABLE LAW. This Agreement will be construed and enforced in accordance with the laws of the State of California. 13.NO JOINT VENTURE, PARTNERSHIP OR THIRD PARTY BENEFICIARY. The City and the Developer hereby renounce the existence of any form of joint venture or partnership between them and expressly agree that nothing contained herein or in any document executed in connection herewith will be construed as making the City and the Developer joint venturers or partners. It is understood that the contractual relationship between the City and the Developer is such that the Developer is an independent contractor and not an agent of the City. Furthermore, this Agreement is not intended or construed to create any third party beneficiary rights in any person who is not a party to this Agreement. @BCL@7C1457D5.doc -14- 14.COVENANTS RUNNING WITH THE LAND. All of the terms, provisions, covenants and obligations contained in this Agreement will be binding upon the Parties and their respective successors and assigns, and all other persons or entities acquiring all or any part of the Developer Property, and will inure to the benefit of such Parties and their respective successors and assigns. All the provisions of this Agreement will be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law including, without limitation, California Civil Code § 1468. Each covenant to or refrain from doing some act on the Developer Property is expressly for the benefit of the Developer Property and is a burden upon the Developer Property, runs with the Developer Property and is binding upon each Party and each successive owner during its ownership of the Developer Property or any part thereof, and will benefit each Party and its property hereunder, and each Party succeeding to an interest in the Developer Property. 15.TERMS AND CONSTRUCTION. 15.1.Severability. If any term, provision, covenant or condition of this Agreement is determined to be invalid, void or unenforceable by judgment or court order, than the remainder of this Agreement will 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. 15.2.Entire Agreement. This Agreement contains all the representations and constitutes the entire agreement between the City and the Developer. Any prior correspondence, memoranda, agreements, warranties or representations, oral or written, are superseded in total by this Agreement. 15.3.Signature Pages. For convenience, the signatures of the Parties may be placed and acknowledged on separate pages and, when attached to this Agreement, will constitute this document as one complete Agreement. 15.4.Time. Time is of the essence of this Agreement and of each and every term and condition hereof. 15.5.Notices. Any notice shall be in writing and given by delivering the same in person or by sending the same by registered, or certified mail, return receipt requested, with postage prepaid, by overnight delivery, or by facsimile to the respective mailing addresses, as follows: @BCL@7C1457D5.doc -15- If to City:City of Lake Elsinore 130 S. Main Street Lake Elsinore, CA 92530 Attn: City Manager Facsimile: (909) 674-2392 With a copy to:Leibold McClendon & Mann, PC 9841 Irvine Center Drive, Suite 230 Irvine, CA 92618 Attn: Barbara Leibold, Esq. Facsimile: (949) 585-6305 If to Developer: Sunwood Lakeview, LLC c/o Sunwood & Associates, LLC 10035 Carroll Canyon Rd., Suite A San Diego, CA 92131 Attn: Don Knox Facsimile: (619) 573-1809 With a copy to: Either City or Developer may change its mailing address at any time by giving written notice of such change to the other in the manner provided herein at least ten (10) days prior to the date such change is effected. All notices under this Agreement shall be deemed given, received, made or communicated on the earlier of the date personal delivery is effected or on the delivery date or attempted delivery date shown on the return receipt, air bill or facsimile. 16.ASSIGNMENT AND NOTICE. The rights and obligations of Developer hereunder shall not be assigned or transferred, except that on thirty (30) days written notice to City, Developer, may assign all or a portion of Developer’s rights and obligations thereunder to any person or persons, partnership or corporation who purchases all or a portion of Developer’s right, title and interest in the Developer Property, provided such assignee or grantee assumes in writing each and every obligation of Developer hereunder yet to be performed, and further provided that Developer obtains the consent of City to the assignment, which consent shall not be unreasonably withheld. Provided the Developer’s thirty (30) day notice includes the assumption by the assignee or grantee, the consent of the City shall be deemed to occur upon the thirtieth (30th) day of the notice period unless within that period the City provides written notice withholding consent and explaining the reasons it is withholding consent. The notice to City shall include the identity of any such assignee and a copy of the written assumption of the assignor’s obligations hereunder @BCL@7C1457D5.doc -16- pertaining to the portion assigned or transferred. After such notice and the receipt of such consent, the assignor shall have no further obligations or liabilities hereunder. 17.ENCUMBRANCES AND RELEASES ON REAL PROPERTY. 17.1.Discretion to Encumber. The Parties agree that this Agreement will not prevent or limit the Developer in any manner, at the Developer’s sole discretion, from encumbering the Developer Property, or any part of the same including, without limitation, improvement thereon, by any mortgage, deed of trust or other security device securing financing with respect to the Developer Property or the Project. The City further agrees that it will not unreasonably withhold its consent to any modification requested by a lender so long as the modification does not materially alter this Agreement to the detriment of the City. 17.2.Entitlement to Written Notice of Default. Any lender of the Developer which has filed a written request with the City for notice of default by Developer will be entitled to receive written notification from the City of any uncured default by the Developer in the performance of the obligations of the Developer under this Agreement. 17.3.Property Subject to Pro Rata Claims. Any mortgagee or beneficiary which comes into possession of the Developer Property or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, will take the Developer Property or part thereof, subject to (i) any pro rata claims for payments or charges against the Developer Property or part thereof secured by such mortgage or deed of trust, which accrued prior to the time that such mortgagee or beneficiary comes into possession of the Developer Property or part thereof; and (ii) the terms and conditions of this Agreement. 18.CONSTRUCTION, NUMBER AND GENDER. This Agreement will be construed as a whole according to its common meaning and not strictly for or against either Party in order to achieve the objectives and purposes of the Parties hereunder. Whenever required by the context of this Agreement, the singular will include the plural and vice versa, and the masculine gender will include the feminine and neuter genders. In addition, “will” is the mandatory and “may” is the permissive. 19.INSTITUTION OF LEGAL ACTION. In addition to any other rights or remedies, either Party may institute legal action to cure, correct or remedy any uncured default, to enforce any covenants or agreements herein, to enjoin any threatened or attempted violation thereof or 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 will be entitled to recover from the losing Party, reasonable litigation expenses, attorneys’ fees and costs incurred. The Parties acknowledge that if a breach @BCL@7C1457D5.doc -17- of this Agreement by the City occurs, irreparable harm is likely to occur to the Developer and damages may be an inadequate remedy. Therefore, to the extent permitted by law, the Parties agree that specific enforcement of this Agreement by the Parties is an appropriate and available remedy, in addition to any and all other remedies which may be available to the Parties under law or at equity. 20.INDEMNIFICATION. The Developer shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its officers, agents, employees, consultants, officials, commissions, councils, committees, boards and representatives (collectively referred to individually and collectively as "Indemnities") 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 activities of the Developer with respect to the Development of the Developer Property. Developer agrees to and will defend the Indemnities from any claim, action, or proceeding to attack, set aside, void, or annul an approval by Indemnitees concerning approval, implementation and construction of this Agreement or the Development Approvals in connection with the Development of the Developer Property or any of the proceedings, acts or determinations taken, done, or made prior to the decision, or to determine the reasonableness, legality or validity of any condition attached thereto. The Developer's indemnification is intended to include, but not be limited to, damages, fees and/or costs awarded against or incurred by Indemnities and costs of suit, claim or litigation, including without limitation attorneys' fees, penalties and other costs, liabilities and expenses incurred by Indemnities in connection with such proceeding. City shall promptly notify Developer of any such claim, action or proceeding, and City shall cooperate in the defense. Developer’s obligation to indemnify City hereunder shall survive any termination of this Agreement. [Signature Page Follows] @BCL@7C1457D5.doc -18- IN WITNESS WHEREOF, City and Developer have executed this Agreement as of the date first hereinabove written. “CITY” CITY OF LAKE ELSINORE, a municipal corporation By: Robert E. Magee, Mayor ATTEST: By: Susan M. Domen, MMC, City Clerk APPROVED AS TO FORM: By: Barbara Leibold, City Attorney “DEVELOPER” SUNLAND LAKEVIEW, LLC, a Delaware limited liability company By:Sunwood & Associates, LLC a Delaware Limited Liability Company, its Manager By: Name: Title: By: Name: Title: @BCL@7C1457D5.doc STATE OF CALIFORNIA ) ) § County of ) On , before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. ________________________________ Signature of Notary (Affix seal here) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. @BCL@7C1457D5.doc STATE OF CALIFORNIA ) ) § County of ) On , before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. ________________________________ Signature of Notary (Affix seal here) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. @BCL@7C1457D5.doc STATE OF CALIFORNIA ) ) § County of ) On , before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. ________________________________ Signature of Notary (Affix seal here) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. @BCL@7C1457D5.doc STATE OF CALIFORNIA ) ) § County of ) On , before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. ________________________________ Signature of Notary (Affix seal here) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. @BCL@7C1457D5.doc Attachment A ATTACHMENT “A” LEGAL DESCRIPTION OF THE DEVELOPER PROPERTY [TO BE INSERTED] @BCL@7C1457D5.doc Attachment B ATTACHMENT “B” VICINITY MAP @BCL@7C1457D5.doc Attachment C ATTACHMENT “C” DEVELOPMENT FEES VESTED DEVELOPMENT IMPACT FEES AMOUNT AS OF EFFECTIVE DATE1 Traffic Impact Fees $1,369.00 Library $150.00 City Hall & Public Works Facilities $809.00 Community Center $545.00 Marina Facilities $779.00 Animal Shelter $348.00 Fire Facility $751.00 SUBTOTAL DEVELOPMENT IMPACT FEES $4,751.00 DAG FEES AFFORDABLE HOUSING IN LIEU FEE $500.00 $2.00/assessable sq. ft. NON-VESTED FEES AMOUNT AS OF EFFECTIVE DATE2 Quimby Fees $1,600.00 Storm Drain TBD MSHCP $1,250 MF (8-14 du/acre) TUMF $6,231 MF (> 8 du/acre) 1 Fixed throughout the Term. 2 Throughout the Term, Developer shall pay these fees at prevalent rate as of the date building permits are issued. GR A N D A V E RIVERSIDE DRULL A L N HILL STMACHADO STTILL E R L N KEEL DRGR A N D A V E RIVERSIDE DRULL A L N HILL STMACHADO STTILL E R L N KEEL DRVICINITY MAPSPECIFIC PLAN NO. 2014-02 &RESIDENTIAL DESIGN REVIEW 2014-07 PROJECT SITE Attachment 1 GR A N D A V E RIVERSIDE DRULL A L N HILL STTILL E R L NMACHADO STMACY STKEEL DRSource: Esri, DigitalGlobe, GeoEye, i-cubed, Earthstar Geographics,CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN,IGP, swisstopo, and the GIS User Community GR A N D A V E RIVERSIDE DRULL A L N HILL STTILL E R L NMACHADO STMACY STKEEL DRSource: Esri, DigitalGlobe, GeoEye, i-cubed, Earthstar Geographics,CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN,IGP, swisstopo, and the GIS User Community AERIAL MAPSPECIFIC PLAN 2014-02 &RESIDENTIAL DESIGN REVIEW 2014-07 PROJECT SITE Attachment 2