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HomeMy WebLinkAbout95-10 CC OrdinanceORDINANCE NO. 95-10 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN DEVELOPMENT AGREEMENT NO. DV95-0001 BY AND BETWEEN HANCOCK DEVELOPMENT COMPANY, INC., JOHN FIRESTONE, AND THE CITY OF TEMECULA, FOR PLANNING APPLICATION NO. 95-003, WESTSIDE SPECIFIC PLAN THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the Planning Commission of the City of Temecula has received an application for a Development Agreement No. DV95-0001, Westside Specific Plan, Hancock Development and John F. Firestone (hereinafter "Development Agreement"); and WHEREAS, the Planning Commission held a noticed public hearing on May 15, 1995, on the issue of recommending approval or denial of the Development Agreement; and WHEREAS, the Planning Commission continued Development Agreement No. DV95- 0001 at their May 15, 1995 meeting to June 5, 1995; and WHEREAS, at the public hearing, upon hearing and considering all testimony and arguments, if any, of all persons deserving to be heard, said Commission considered all facts relating to Development Agreement No. 95-0001 and recommended approval to the City Council; WHEREAS, the City Council held a noticed public hearing on June 13, 1995, on the issue of recommending approval or denial of the Development Agreement; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMECULA DOES FIND AS FOLLOWS: Section 1. That the City Council approves the Development Agreement, in substantially the form of Exhibit A, attached hereto and incorporated herein by this reference. Section 2. That in approving the Development Agreement the City Council hereby make the following findings: 1. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City of Temecula's General Plan in that the Development Agreement makes reasonable provision for the use of certain real property for commercial, residential and open space development and is consistent with the General Plan Land Use Designations for the site; and, Ords\95-10 2. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the Property subject to the Development Agreement is located as the Development Agreement provides for commercial, residential and open space development and that this Development Agreement is consistent with good planning practices by providing for the opportunity to develop the Property consistent with the General Plan and is consistent with the Westside Specific Plan; and, 3. The Development Agreement is in conformity with the public convenience, general welfare, and good land use practice because it makes reasonable provision for a balance of land uses compatible with the remainder of the City; and, 4. The Development Agreement will not be detrimental to the health, safety, or general welfare because it provides adequate assurances for the protection thereof; and, 5. Notice of the public hearing before the City Council was published in a newspaper of general circulation at least ten (10) days before the City Council public hearing, and mailed or delivered at least ten (10) days prior to the hearing to the project applicant and to each agency expected to provide water, sewer, schools, police protection, and fire protection, and to all property owners within one thousand feet (1,000') of the property as shown on the latest equalized assessment roll; and, 6. Notice of the public h g before the City Council included the date, time, and place of the public hearing, the identity Df the hearing body, a general explanation of the matter to be considered, a general description and text or by diagram of the location of the real property that is the subject of the hearing, and of the need to exhaust administrative remedies; and, 7. The Development Circulation Element of the General P period of the Development Agreement and conditions of approval imposed; 8. The Development Ag in which the applicant proposes to Residential is consistent with the Designation; and, 9. The benefits that will legislation and this Development Ag a. Generation of b. Public C. Enhancement of present and future residents of the City ords\95-10 ent complies with the goals and objectives of the and the traffic impacts of the development over the . be substantially mitigated by the mitigation measures at complies with requirements of the zoning district p in that the Specific Plan zoning of High Density um Density Residential General Plan Land Use to the people of the City of Temecula from this are as follows: revenue; facilities; quality of life; including recreation facilities for d. The opportunity for an adjacent residential -commercial project creating significant job opportunities, sales tax and ad valorem tax revenues for the City; e. Payment of Public Facilities Fees (fire and traffic signal mitigation); f. Participation in special assessment districts to finance regional infrastructure improvements; and, g. The creation of recreation dedications and payment of in lieu fees for public use and the protection of significant natural resources. Section 3. The Development Agreement imposes upon the subject property the sam land use regulations imposed by the Westside Specific Plan. Therefore, the Development Agreement will have the same impact on the environment as the Westside Specific Plan. No further environmental review beyond that undertaken for the Westside Specific Plan is necessary because none of the circumstances described in Section 15162 of Title XVI of the California Administrative Code ("CEQA Guidelines") are found to exist. Section 4. PASSED, APPROVED AND ADOPTED this 27th day of June, 1995. Ords\95-10 3 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) SS CITY OF TEMECULA) I June S. Greek, City Clerk of the City of Temecula, California, do hereby certify that the foregoing Ordinance No. 95-08 was duly introduced and placed upon its first reading at a regular meeting of the City Council on the 13th day of June, 1995, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council of the City of Temecula on the 27th day of June, by the following roll call vote: AYES: 3 COUNCILMEMBERS: NOES: 0 COUNCILMEMBERS: ABSENT: 0 COUNCILMEMBERS: ABSTAINED: 1 COUNCILMEMBERS: Ords\95-10 Lindemans, Parks, Roberts None None Stone Ju e S Greek, CMC,ity Clerk EXEMPT FROM RECORDER'S FEES Pursuant to Government ^ Code §16103, 27383 Recording Requested By and When Recorded Return to: CITY CLERK CITY OF TEMECULA 43174 Business Park Drive Temecula, ca 92590-3606 DEVELOPMENT AGREEMENT BY AND BETWEEN AND HANCOCK DEVELOPMENT COMPANY, INC. AND JOHN F. FIRESTONE Development Agreement No. DV95-0001 THIS AGREEMENT SHALL BE RECORDED WITHIN TEN DAYS OF EXECUTION BY ALL PARTIES HERETO PURSUANT TO THE REQUIREMENTS OF GOVERNMENT CODE § § 65868.5 IRASTAFFWTf AAF I NTAT WNB kb DEVELOPMENT AGREEMENT ' This Development Agreement ("Agreement") is made this day of 1995, by and between the CITY OF TEMECULA, a general law city in the State of California (the "City") and HANCOCK DEVELOPMENT COMPANY, INC., a California corporation ("Hancock") and JOHN F. FIRESTONE, an unmarried man ("Firestone") (together, Hancock and Firestone are referred to herein as the "Developer"). In consideration of the mutual covenants and agreements contained in this Agreement, the City and Developer agree as follows: 1. Recitals. This Agreement is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the parties: A. The City is authorized pursuant to Government Code Sections 65864 through 65869.5 (the "Development Agreement Statute") to enter into binding agreements with persons or entities having legal or equitable interests in real property for the development of such property in order to establish certainty in the development process. B. The parties desire to enter into this Agreement in conformance in conformance with the Development Agreement Statute and the City of Temecula Municipal Code in order to achieve the development of the "Westside Specific Plan" area (the "Site") as expressly provided under the terms of this Agreement. ' The legal description of the Site is shown on Exhibit "A" attached hereto. The parties likewise desire to provide complementary land uses to the Old Town Temecula Specific Plan and provide public services and urban infrastructure, all in the promotion of the health, safety, and general welfare of the residents of the City of Temecula. C. The development for the Site, as contemplated by the Westside Specific Plan includes special uses that complement the uses permitted by the Old Town Temecula Specific Plan and the General Plan of the City (the "General Piano), including a "Wild West" arena, a hotel, supporting commercial, high density residential, a mixed-use transition area and natural open space areas (the "Project"). D. On May 15, 1995, the Planning Commission of the City of Temecula held a duly noticed public hearing on the Developer's application for the Agreement, the Westside Specific Plan (Planning Application No. PA95-0003) (the "Westside Specific Plan") and Tentative Tract Map No. 28011 (Planning Application No. PA95-0004) (the "Tentative Map") (together, the Westside Specific Plan and the Tentative Map are referred to herein as the "Project Approvals") and by Resolution Nos. recommended to the City Council approval of the Project Approvals and this Agreement. E. On , 1995, the City Council, held a duly noticed ' public hearing on the Westside Specific Plan, the Tentative Map and this aWAFFFFrwar4VJrrr.0r encs m 1 Agreement. ' F. On , 1995, the City Council of the City adopted Ordinance No. approving the Westside Specific Plan, Resolution No. approving the Tentative Map and Ordinance No. approving this Agreement with the Developer. G. An environmental review has been conducted and approved in conjunction with the Project Approvals and this Agreement in accordance with the California Environmental Quality Act and the City Council has considered and certified Environmental Impact Report (Planning Application No. PA95-0031). H. The City desires to obtain the binding agreement of the Developer for the development of the Site in accordance with the provisions of this Agreement and the approved Project. I. The Developer desires to obtain the binding agreement of the City to permit the Developer to develop the Project and Site in accordance with the "Applicable Rules" (as hereinafter defined) and this Agreement. J. Developer has applied to the City in accordance with applicable procedures for approval of this mutually binding Agreement. The Planning Commission and City Council of the City has given notice of Intention to consider the agreement, has conducted public hearings thereon pursuant to the Government Code, and has found that the provisions of this Agreement are consistent with the Applicable Rules, including, without limitation, the Westside Specific Plan and the City's General Plan. K. This Agreement is consistent with the present public health, safety, and welfare needs of the residents of the City and the surrounding region. The City has specifically considered and approved the impact and benefits of the Project upon the welfare of the region. L. This Agreement will bind the City to the terns and obligations specified in this Agreement and will limit, to the degree specified in the Agreement and under State law, the future exercise of the City's ability to delay, postpone, preclude or regulate development of the Project on the She, except as provided for herein. M. In accordance with the Development Agreement Statute, this Agreement eliminates uncertainty in planning process and provides for the orderly development of the Project. Further, this Agreement eliminates uncertainty about the validity of exactions imposed by the City, allows installation of necessary improvements, provides for public services appropriate to the development of the Site, and generally serves the public interest within the City of Temecula and the surrounding region. ' 2. Definitions. In this Agreement, unless the context otherwise requires., aVsrAFwvnK+nmrf.0T emus 10 2 (a) "Applicable Rules' means the rules, regulations and official policies governing permitted uses of the site, governing density, and governing ' design, improvement and construction standards and specifications applicable to the development of the Site in force at the time of the "Effective Date" las hereinafter defined), Including, without limitation, the General Plan, City's current Zoning Code, which Is comprised of County of Riverside Ordinance No. 348, as adopted and amended by City, and the Project Approvals. Notwithstanding the foregoing, nothing in this Agreement shall preclude City from applying changes occurring from time to time in the Uniform Building Code, Uniform Electrical Code, Uniform Fire Code, Uniform Mechanical Code, or Uniform Plumbing Code, provided that such changes (i) are found by City to be necessary to the health or safety of the citizens of City and 1)i) are generally applicable to all property in City. Prior to the Effective Date, City and Developer shall use reasonable efforts to identify two identical sets of the Applicable Rules, one set for . City and one set for Developer, so that if it becomes necessary in the future to refer to any of the Applicable rules, there will be a common set of the Applicable Rules available to both parties. (b) "Discretionary Actions; Discretionary Approvalsm are actions which require the exercise of judgment or a decision, and which contemplate and authorize the imposition of revisions or conditions, by the City, including any board, commission, or department of the City and any officer or employee of the City, in the process of approving or disapproving a merely requires the City, ' including any board, commission, or department of the City and any officer or employee of the City, to determine whether there has been compliance with applicable statutes, ordinances, regulations, or conditions of approval. (c) "Effective Date" is the date the ordinance approving this Agreement became effective, which date was , 1995. (d) "Future Approvals" means any development of the Property which requires Discretionary Approvals pursuant to the Applicable Rules, including, without limitation, parcel maps, tentative subdivision maps, and conditional use permits. Upon approval of any of the Future Approvals, as they may be amended from time to time, they shall become part of the Applicable Rules, and Developer shall have a "vested right," as that term is defined under California law, in and to such Future Approvals by virtue of this Agreement. 1e) "Public Improvements" means those public improvements contemplated by the Project Approvals. 3. Interest of Developer. The Developer represents to the City that, as of the Effective Date, it either owns or is contractually entitled to acquire all of the Site subject to encumbrances, easements, covenants, conditions, restrictions, and other matters of record. ' 4. Binding Effect. This Agreement, and all of the terms and conditions of R:VrrAFF FTWRlBMT.OT WIN m 3 this Agreement shall run with the land comprising the Site and shall be binding upon and inure to the benefit of the parties and their respective assigns, heirs, or other successors in interest. 5. Negation of Agency. The parties acknowledge that, in entering into and performing under this Agreement, each is acting as an independent entity and not as an agent of the other in any respect. Nothing contained herein or in any document executed in connection herewith shall be construed as making the City and Developer joint venturers, partners or employer/employee, 6. Development of the Property. The following specific restrictions shall govern the use and development of the Project and the Site: (a) Permitted Uses The Site may be developed and used for the development of the Project in accordance with the terms of the Project Approvals and the Applicable Rules. (b) Devel gment Standards All design and development standards applicable to the development of the Site shall be in accordance with the Applicable Rules. (c) Density and Intensity of Use The density and intensity of use shall be in accordance with the Applicable Rules. (d) Maximum Height and Size of project Buildings The maximum height and size of the Project buildings shall be in accordance with the Applicable Rules. (e) Reservation or Dedication of Land for Public Purposes The reservation or dedication of land for public purposes shall be in accordance with the Applicable Rules. 7. Acknowledgments. Agreements and Assurances on the Part of the Developer. The parties acknowledge and agree that Developer's faithful performance in developing the Project on the Site and in constructing and installing public improvements and complying with the Applicable Rules will fulfill substantial public needs. The City acknowledges and agrees that there is good and valuable consideration to the City resulting from Developer's assurances and faithful performance thereof and that same is in balance with the benefits conferred by the City of the Project. The parties further acknowledge and agree that the exchanged consideration hereunder is fair, just and reasonable. Developer acknowledges that the consideration is reasonably related to the type and extent of the impacts of the Project on the community and the Site, and further acknowledges that said consideration is necessary to mitigate the direct and indirect impacts cause by the development of the Project. in consideration of the foregoing and the City's assurance set out in Section S, Developer hereby agrees to use its reasonable best efforts, in accordance with Its own reasonable business judgement, taking into ' consideration market conditions, financing and other economic factors, to develop RWBTAFFFWTMOMBWW.OT On/OO kb 4 the Project on the Site in accordance with the terms and conditions of this ' Agreement and the Applicable Rubs. Notwithstanding any other provision of this Agreement, it is understood and agreed that the obligations of Developer under this Agreement shall not be personal recourse obligations of Developer, but shall be conditions which, if not satisfied by Developer, its successors or assigns, will give the City the right to seek a modification or termination of this Agreement in accordance with the procedures described in Sections 10 through 12 of this Agreement. g. Acknowledgements, Agreements and Assurances on the Part of the City. In order to effectuate the provisions of this Agreement, and in consideration for the Developer to obligate itself to carry out the covenants and conditions set forth in the preceding Section 7 of this Agreement, the City hereby agrees and assures Developer that Developer will be permitted to cant' out and complete the development of the Project within the Site, subject to the terms and conditions of this Agreement, the conditions of the Project Approvals and the Applicable rules. Therefore, the City hereby agrees and acknowledges that: (a) Entitlement to Develop. The Developer is hereby granted the vested right to develop the Project on the Site to the extent and in the manner provided in this Agreement, subject to the conditions of the Project Approvals, the Applicable Rules and the Future Approvals. (b) Conflictina Enactments. Any change in the Applicable Rules, ' including, without limitation, any change in any applicable general, area or specific plan, zoning, subdivision or building regulation, adopted or becoming effective after the Effective Date, including, without limitation, any such change by means of an ordinance, initiative, resolution, policy, order or moratorium, initiated or instituted for any reason whatsoever and adopted by the Council, the Planning Commission or any other board, commission or department of City, or any officer or employee thereof, or by the electorate, as the case may be, which would, absent this Agreement, otherwise be applicable to the Site and which would conflict in any way with or be more. restrictive than the Applicable Rules ('Subsequent Rules'), shall not be applied by City to the Site. Developer may give City written notice of its election to have any Subsequent Rule applied to the Property, in which case such Subsequent Rule shall be deemed to be an Applicable Rule. (c) Permitted Conditions. Provided Developer's applications for any Future Approvals are consistent with this Agreement and the Applicable Rules, City shall grant the Future Approvals in accordance with the Applicable Rules and authorize development of the Property for the uses and to the density of the Project described herein. City shall have the right to impose reasonable conditions in connection with Future Approvals and, in approving tentative subdivision maps, impose dedications for rights of way or easements for public access, utilities, water, sewers, and drainage necessary for the Project; provided, however, such conditions and dedications shall not be inconsistent with the Applicable Rules or Project Approvals, nor inconsistent with the development of the Project as ' contemplated by this Agreement. Developer may protest any conditions, R-.WrAFFipRAOREMNT.OT Gf7M m 5 dedications or fees while continuing to develop the Site; such a protest by ' — Developer shall not delay or stop the issuance of building permits or certificates of occupancy. (d) Term of Maple) and Other Prosect Aoorovals. Pursuant to California Govemment Code Sections 66452.6(1) and 65863.9, the term of any subdivision or parcel map that may be processed on all or any portion of the Site and the term of each of the Project Approvals, including the Tentative Map and any Future Approvals shall be extended for a period of time through the scheduled termination date of this Agreement as set forth in Section 14 below. (e) Timino of Development Because the California Supreme Court held in Pardee Construction Co. V. City of Camarillo, 37 Cal.3d 465 (1984), that failure of the parties to provide for the timing of development resulted in a later adopted initiative restricting the timing of development to prevail over the parties' agreement, It is the Developer's and City's intent to cure that deficiency by acknowledging and providing that Developer shall have the right (without obligation) to develop the Site in such order and at such rate and at such time as Developer deems appropriate within the exercise of its subjective business judgement. (f) Moratorium. No City -imposed moratorium or other limitation .. (whether relating to the rate, timing or sequencing of the development or construction of all or any part of the Site, whether imposed by ordinance, initiative, resolution, policy, order or otherwise, and whether enacted by the Council, an ' agency of City, the electorate, or otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative or final), building permits, occupancy certificates or other entitlements to use or service (including, without limitation, water and sewer) approved, issued or granted within City, or portions of City, shall apply to the Site to the extent such moratorium or other limitation is in conflict with this Agreement; provided, however, the provisions of this Section shall not affect City's compliance with moratoria or other limitation mandated by other governmental agencies or court -imposed moratoria or other limitation. (g) Permitted Fees. Except as otherwise provided in this Agreement, and specifically excluding fees set by entitles not controlled by City that are collected by City, City shall only charge and impose those fees and exactions, including, without limitation, dedications and any other fees or taxes (including excise, construction or any other taxes) relating to development or the privilege of developing, which are in effect on a City-wide basis as of the Effective Date. This Section shall not be construed to limit the authority of City to charge application, processing, and permit fees for land use approvals, building permits, and other similar permits and entitlements, which fees are designed to reimburse City's expenses attributable to such application, processing and permitting and are in force and effect on a City-wide basis at such time as sold approvals, permits, or entitlements are granted by City. 9. Cooperation and Implementation. The City agrees that it will ' RASTAFFFMAoREEWrr.or erne Mb 6 cooperate with Developer to the fullest extent reasonable and feasible to implement ' this Agreement. Upon satisfactory performance by Developer of all required preliminary conditions, actions and payments, the City will commence and in a timely manner proceed to complete all steps necessary for the implementation of this Agreement and the development of the Project or Site In accordance with the terms of this Agreement. Developer shall, in a timely manner, provide the City will all documents, plans, and other information necessary for the City to cant' out its obligations. Specifically: (a) Further Assurances: Covenant to Sign Documents. Each party shall take all actions and do all things, and execute, with acknowledgment or affidavit, if required, any and all documents and writings, that may be necessary or proper to achieve the purposes and objectives of this Agreement. (b) Reimbursement and Apportionment. Nothing in this Agreement precludes City and Developer from entering into any reimbursement agreements for the portion (if any) of the cost of any dedications, public facilities and/or infrastructure that City may require as conditions of the Project Approvals or the Future Approvals, to the extent that they are in excess of those reasonably necessary to mitigate the impacts of the Project (c) Processing. Upon satisfactory completion by Developer of all . . required preliminary actions and payments of appropriate processing fees, if any, City shall, subject to all legal requirements, promptly initiate diligently process, complete at the earliest possible time all required steps, and expeditiously grant any approvals and permits necessary for the development by Developer of the Property in accordance with this Agreement, including, but not limited to, the following: (1) the processing of applications for and issuing of all discretionary approvals requiring the exercise of judgement and deliberation by City, including without limitation, the Future Approvals; (2) the holding of any required public hearings; (3) the processing of applications for and issuing of all ministerial approvals requiring the determination of conformance with the Applicable Rules, including, without limitation, site plans, development plans, land use plans, grading plans, improvement plans, building plans and specifications, and ministerial issuance of one or more final maps, zoning clearances, grading permits, improvement permits, wall permits, building permits, lot line adjustments, encroachment permits, conditional and temporary use permits, certificates of use and occupancy and approvals and entitlements and related matters as necessary for the completion of the development of the Property ('Ministerial Approvals"). (d) Processing During Third Party Litigation. The filing of any third party lawsuit(s) against City or Developer relating to this Agreement or to other development issues affecting the Property shall not delay or stop the development, ' processing or construction of the Project, approval of the Future Approvals, or FLWAFFWr%AQFW1WT.OT SM95 1b 7 issuance of Ministerial Approvals, unless the third party obtains a court order preventing the activity. City shall not stipulate to the issuance of any such order. (e) State. Federal or Case Law. Where any state, federal or case law allows City to exercise any discretion or take any act with respect to that law, City shall, in an expeditious and timely manner, at the earliest possible time, (a) exercise its discretion in such a way as to be consistent with, and cant' out the terms of, this Agreement and (b) take such other actions as may be necessary to carry out in good faith the terms of this Agreement. (f) Other Governmefftel Bodies, to the extent that City, its Council, Planning Commission or any other City agency constitutes and site as any other board or agency, it shall not take any action that conflicts with City's obligations under this Agreement. (g) Defense of Agreement. City shall take all actions which are necessary or advisable to uphold the validity and enforceability of this Agreement, subject to the indemnification provisions of this subparagraph. if this Agreement is adjudicated or determined to be invalid or unenforceable, City agrees, subject to all legal requirements, to consider modifications to this Agreement to render it valid and enforceable to the extent permitted by applicable law. The Developer shall indemnify, protect, defend, and hold harmless, the City and any agency or instrumentality thereof, and/or any of its officers, employees and agents from any and all claims, actions, or proceedings against the City, or any agency or ' instrumentality thereof, or any of its officers, employees and agents, to attack, set aside, void, annul or seek monetary damages resulting from the approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative body including actions approved by the voters of the City, concerning this Agreement which action is brought within the appropriate statute of limitation period and Public Resources code, Division 13, Chapter 4 (Section 21000 at seq., including but not by way of limitations Section 21152 and 21167). City shall promptly notify the Developer of any claim, action, or proceeding brought within this time period. The City shall further cooperate fully in the defense of the action. Should the City fail to either promptly notify or cooperate fully, Developer shall not thereafter be responsible to indemnify, defend, protect, or hold harmless the City, any agency or instrumentality thereof or any of its officers, employees, or agents. (a) Periodic Review, The Director of Planning of the City shall review this Agreement annually, on or before the anniversary of the Effective Date, in accordance with the procedure and standards set forth in this Agreement and the Temecula Municipal Code in order to ascertain compliance by the Developer with the terms of this Agreement. (b) Procedure. During a periodic review, the Developer shall be required to demonstrate good faith compliance with the terns of this Agreement. ' The burden of proof on this issue shall be on the Developer. The parties R:Y rAFFWr%AO,EBMT.OT enpa kb 8 acknowledge that failure by the Developer to demonstrate good faith compliance shall constitute grounds for termination or modification of this Agreement in ' accordance with Government Code 11165865.1. (c) Cure of Default. If, on the basis of review of this Agreement, the Director of Planning concludes that the Developer has not complied in good faith with the terms of this Agreement, then the Director of Planning may issue a written 'Notice of Non-compliance' specifying the ground therefor and all facts demonstrating such non-compliance. The Developer's failure to cure or commence and diligently pursue the cure of the alleged non-compliance within thirty (30) days after receipt of said notice, shall constitute a default under this Agreement, subject to possible termination of the Agreement as provided below. Upon completion of a periodic review, the Director of Planning shall submit a report to the City Council setting forth the evidence concerning good faith compliance by the Developer with the terms of this Agreement and the recommended finding on that issue. 11. Proceedinas Ligon Termination. If the City determines to proceed with termination of this Agreement, the City shall give written notice to the Developer of its intention to terminate this Agreement and comply with the notice and public hearing requirements of Government Code § § 65868 and 65867. At the time and place set for the hearing on termination, the Developer shall be given an opportunity to be heard. If the City Council finds, based upon substantial evidence, that the Developer has not reasonably complied in good faith with the terms or conditions of this Agreement, the City Council may modify or terminate ' this Agreement. 12. Modification. Amendment. or Cancellation. Subject to the notice and hearing requirements of Section 65867 of the Government Code, this Agreement may be modified or amended from time to time by mutual consent of the parties or their successors in interest in accordance with the provisions of the Temecula Municipal Code and Section 65868 of the Government Code. 13. Ooeretion Agreement. The provisions of this Agreement require a close degree of cooperation between City and Developer and the refinements and further development of the Project may demonstrate that clarifications are appropriate with respect to the details of performance of City and Developer. If and when, from time to time, during the term of this Agreement, City and Developer agree that such clarifications are necessary or appropriate, they shall effectuate such clarifications through operating memoranda approved by City and Developer, which, after execution, shall be attached hereto, and may be further clarified from time to time as necessary with future approval by City and Developer. No such operating memoranda shall constitute an amendment to this Agreement requiring public notice or hearing. The City Attorney shall be authorized to make the determination whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such a character to constitute an amendment hereof pursuant to Section 12. The City — Manager may execute any operating memoranda hereunder without Council action. IR:WTAFAPTIAGFAZMW.OT WIN 6b 9 14. Terre of Agreement. This Agreement shall become operative and commence upon the C-ifectivs Date, it shall remain in effect until (Term - to be 10 years] unless this Agreement is terminated, modified, or extended upon mutual written consent of the parties hereto. Following the expiration of said term, this Agreement shall be deemed terminated and of no further force and effect; provided, such termination shall not automatically affect any right of the City or Developer arising from City approvals on the Site prior to the expiration of the term and arising from the duties of the parties as prescribed in this Agreement. 15. Legal Action. Any party may, in addition to any other rights or remedies, institute legal action to cure, correct or remedy any default, enforce any covenant or agreement herein, enjoin any threatened or attempted violation hereof, or enforce by specific performance the obligations and rights of the parties hereto, except as provided in this subparagraph. It is acknowledged by the parties that City would not have entered into this Agreement if it were to be liable in damages for a default under or with respect to this Agreement or the application thereof and that Developer has adequate remedies other than damages to secure City's compliance with City's obligations pursuant to this Agreement. City, and its officers, employees and agents, shall not be liable in damages to Developer or to any assignee, transferee of Owner, or any other person for its default under or with respect to this Agreement, and Developer covenants not to sue for or claim any damages for default of this Agreement by City. Pursuant to Code of Civil Procedure Section 638, at sea., all legal ' actions shall be heard by a referee who shall be a retired judge from either the Superior Court, the California Court of Appeal, the United States District Court or the United States Court of Appeals, provided that the selected referee shall have experience in resolving land use and real property disputes. Developer and City shall agree upon a single referee who shall then try all issues, whether of fact or law, and report a finding and judgement thereon and issue all legal and equitable relief appropriate under the circumstances of the controversy before such referee. If Developer and City are unable to agree on a party hereto, either party may seek to have one appointed pursuant to Code of Civil Procedure Section 640. The cost of such proceeding shall initially be bome equally by the parties. Any referee selected pursuant to this Section shall be considered a temporary judge appointed pursuant to Article 6, Section 21 of the Califomia Constitution. 16. Administration of Agreement and Resolution of Disputes. All decisions by the City staff concerning the interpretation and administration of this Agreement and the Project which is the subject hereof are appealable to the City Project which is the subject hereof are appealable to the City Council and all like decisions of the City Council shall also be subject to judicial review pursuant to Code of Civil Procedure Section 1094.5 or any other applicable provision of law or equity. The resolution of disputes shall be conducted pursuant to the provisions of Section 15 of this Agreement. 17. Transfers and Assianments. MWAFFR AGrAMA--MOT 6/7196 m 10 (a) Bim, Developer shall have the right to sell, assign or ' transfer all or portions of the real property comprising the Properly to any person at any time during the term of this Agreement. (b) Liabilities Upon Transfer. Upon the delegation of all duties and obligations and the sale, transfer or assignment of all or any portion of the Property, Developer shall be released from its obligations under this Agreement with respect to the Property, or pardon thereof, so transferred arising subsequent to the effective date of such transfer If (1) Developer has provided to City ten days' written notice of such transfer and (ii) the transferee has agreed in writing to be subject to all of the provisions hereof applicable to the portion subject to all of the provisions hereof applicable to the portion of the Property so transferred. Upon any transfer of any portion of the Property and the express assumption for Developer's obligations under this Agreement by such transferee, City agrees to look solely to the transferee for compliance by such transferee with the provisions of this Agreement as such provisions relate to the portion of the Property acquired by such transferee. A default by any transferee shall only affect hat portion of the Property owned by such transferee and shall not cancel or diminish in any way Developer's rights hereunder with respect to any portion of the Property not owned by such transferee. The transferee shall be responsible for the reporting and annual review requirements relating to the portion of the Property owned by such, transferee, and any amendment to this Agreement between City and a transferee shall only affect the portion of the Property owned by such transferee. ' 18. Martaace Protection. The parties hereto agree that this Agreement shall not prevent or limit Developer, in any manner, at Developer's sole discretion, form encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. City acknowledges that the lander(s) providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with Developer and representatives of such lender(s) to negotiate in good faith any such request for interpretation or modification. City will not unreasonable withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any mortgagee of a mortgage or a beneficiary of a deed of trust ("Mortgagee") on the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any mortgage or deed of trust on the Property made in good faith and for value. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, who has submitted a request in writing to City in the manner specified herein for giving notices, shall be entitled to receive written notification from City of any default by Developer In the performance of ' Developer's obligations under this Agreement. RAFrAFFIWiMO1R33Nr.Or erase m 11 (c) If City timely receives a request from a Mortgagee requesting a copy of any notice of default given to Developer under the terms of this ' Agreement, City shall provide a copy of that notice to the Mortgagee within ten days of sending the notice of default to Developer. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. Id) 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 foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement; provided, however, in no event shall such Mortgagee be liable for any defaults or monetary obligations of Developer arising prior to acquisition of title to the Property by such Mortgagee, except that any such Mortgagee or its successors or assigns shall not be entitled to a building permit or occupancy certificate until all delinquent and current fees and other monetary obligations due under this Agreement for the Property, or portion thereof acquired by such Mortgagee, have been paid to City. 19. NoLGBS. All notices under this Agreement shall be in writing and shall be effective when personally delivered or upon receipt after deposit in the United States mail as registered or certified mail, postage prepaid, return receipt requested, to the following representatives of the parties at the addresses indicated below: ' If to City: City of Temecula Attention: City Manager 43174 Business Park Drive Temecula, CA 92590-3606 With a Copy to: Peter M. Thorson, Esq. Burke, Williams & Sorensen 611 West Sixth Street, 25th Floor Los Angeles, CA 90017 If to Developer: Mr. Eugene S. Hancock, President Hancock Development Company, Inc. 3183 Airway Avenue, Building E Costs Mesa, CA 92626 Stevan J. Gromet, Esq. Pinto, Gromet, Dubia & Worcester Two Park Plaza, Suite 300 Irvine, CA 92714-8513 Mr. John F. Firestone 702 South Laudnda Avenue ' Orange, CA 92669 RATrAFFA MAaasOMrr.OT arms m 12 With a Copy to: Ronald I. Silverman, Esq. Cox, Castle & Nicholson ' 2049 Century Park East, 28th Floor Los Angeles, CA 90067-3284 Samuel C., Alhadeff, Esq. Lorenz, Alhadeff, Cannon & Rose 27555 Ynez Road, Suite 203 Temecula, CA 92591-4677 20. Severability and Termination. If any provision of this Agreement is, determined by a court of competent jurisdiction to be invalid or unenforceable, or if any provision of this Agreement is superseded or rendered unenforceable according to any law which becomes effective after the Effective Date, the remainder of this Agreement shall be effective to the extent the remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 21. Time of Essence. Time is of the essence for each provision of this Agreement of which time is an element. 22. Force Maleure. In the event of changed conditions, changes in local,_. state or federal laws or regulations, floods, delays due to strikes, inability to obtain materials, civil commotion, fire, acts of god, or other circumstances which substantially interfere with carrying out the Project, as approved by the City, or with the ability of either party to perform its obligations under this Agreement, and which are not due to actions of Developer and are beyond its reasonable control, the panties agree to bargain in good faith to modify such obligations to achieve the goals and preserve the original intent of this Agreement. 23. Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. 24. Constructive Notice and Acceotance. Every person who, now or hereafter, owns or acquires any right, title or interest in or to any portion of the Site is, and shall be, conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Site. 25. No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties, the City Council and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 26. Attorney's Fees. If either party commences any action for the interpretation, enforcement, termination, cancellation or rescission of this ' Agreement, or for specific performance for the breach hereof, the prevailing party RASTAccwrwoREOMMOT eniae Mb 13 shall be entitled to Its reasonable attorney's fees, litigation expenses and costs. Attorney's fees under this Section shall include attomey's fees on any appeal as ' well as any attorney's fees incurred in any postjudgement proceedings to collect or enforce the judgement. 27. Incorporation of Exhibits. The following Exhibit Is part of this Agreement and each of which are Incorporated herein by this reference: Exhibit No. A Legal Description of Site 28. Entire Agreement: Conflicts. This Agreement represents the entire agreement of the parties. Should any or all of the provisions of this Agreement be found to be in conflict with any other provision or provisions found In the Project Approvals, Applicable Rules, or Subsequent Applicable Rules, then the provisions of this Agreement shall prevail. IN WITNESS WHEREOF, the Parties have each executed this Agreement of the date first written above. CITY OF TEMECULA By: Mayor ATTEST: City Clerk APPROVED AS TO FORM: Peter M. Thorson City Attorney HANCOCK DEVELOPMENT COMPANY INC. By: President John F. Firestone 1 aWrAFFarvAaasawr.ar 617118 m 14 STATE OF CALIFORNIA ) ) as. ' COUNTY OF 1 On , 19_ before me, the undersigned, a Notary Public in and for said state, personally appeared and , known to me to the persons who executed the within instrument as Mayor and City Clerk, respectively, of the CITY OF TEMECULA, the public agency therein named, and acknowledged to me that such Commission executed the within instrument pursuant to Its bylaws or a resolution of its members. WITNESS my hand and official seal. STATE OF CALIFORNIA COUNTY OF Name (typed or printed) ) as. On , 19_ before me, the undersigned, a Notary Public in and for said state, personally appeared , known to me to be President of and , known to me to be the Secretary of the corporation that executed the within instrument, known to be to be the persons who executed the within instrument of behalf of HANCOCK DEVELOPMENT COMPANY, INC., the Corporation therein named, and acknowledged to me.that such Corporation executed the within instrument pursuant to its bylaws or a resolution of its board of directors. WITNESS my hand and official seal. IRASTAFFIFT%MREE NT.OT WIN Y6 Name (typed or printed) 15 STATE OF CALIFORNIA 1 1 as. COUNTY OF 1 On , 19_ before me, the undersigned, a Notary Public in and for said state, personally appeared , personally known to me to be the person whose name is subscribed to the within Instrument, and acknowledged to me that he/she executed the some. WITNESS my hand and official seal. (SEAL) M%TAFFRPnVoVJMMrT.0T enne m Notary Public in and for said State Ell