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HomeMy WebLinkAbout07-13 CC Ordinance I I I ORDINANCE NO. 07-13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DEVELOPMENT AGREEMENT BETWEEN TEMECULA PROPERTIES, LLC, PROFESSIONAL HOSPITAL SUPPLY, INC., AND THE CITY OF TEMECULA FOR AN APPROXIMATE 84- ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD IN THE CITY OF TEMECULA (APN 909-370-018 AND 909-370-032) PLANNING APPLICATION NO. PA07-0220 THE CITY COUNCil OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOllOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Application No. PA07-0220, a Development Agreement between Temecula Properties llC, Professional Hospital Supply, Inc, and the City of Temecula for an 84-Acre site located at the northwest corner of Dendy Parkway and Winchester Road as a Future Specific Plan Area (APN 909-370-018 and 909-370-032) (the "Development Agreement"). B. The Development Agreement was processed in the time and manner prescribed by State and local law. C. On September 5, 2007, the Planning Commission held a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support of or in opposition to the Development Agreement. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve the Development Agreement. E. On September 25, 2007, the City Council held a duly noticed public hearing on the Development Agreement as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to the Development Agreement. R:/Ords 2007/0rds 07-13 I I I F. On September 25, 2007 the City Council adopted Resolution No. 07-76 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLC/PROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT, PA07-0220 A DEVELOPMENT AGREEMENT; PA06- 0370, A TENTATIVE MAP, AND PA06-0369 AND PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION." F. Following due consideration of the testimony received at the public hearings and the administrative record, the City Council adopted this Ordinance. G. All legal preconditions to the adoption of this Ordinance have occurred. that: Section 2. Further Findinas. The City Council hereby finds and determines A. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City of Temecula General Plan and each of its elements in that the Development Agreement makes reasonable provision for the use of certain real property for industrial, commercial and residential development. B. The Development Agreement complies with the goals and objectives of the Circulation Element of the General Plan, and the traffic impacts of the development will be less than significant or substantially mitigated by the mitigation measures and Conditions of Approval imposed. C. The Project subject to the Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the zoning district in which the property subject to the Development Agreement is located, 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. D. 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. E. The Development Agreement will not be detrimental to and will promote the health, safety, or general welfare of the community because it provides adequate assurances for the protection thereof. R:/Ords 2007/0rds 07-13 2 I I I F. The benefits that will accrue to the people of the City of Temecula from this legislation and this Development Agreement are expansion of an important local employer that could bring additional employment opportunities to local residents. G. The potential significant impacts to the environment from the project will be mitigated to a less than significant level based upon the identified mitigation measures. Section 3. Approval The City Council of the City of Temecula hereby approves that certain agreement entitled "Development Agreement Temecula Properties, LLC" by and between the City of Temecula, Temecula Properties LLC, and Professional Hospital Supply, Inc. ("Development Agreement"), in substantially the form attached hereto as Exhibit A, with such changes to the Development Agreement as may be mutually agreed upon by Temecula Properties, LLC, Professional Hospital Supply and the City Manager and which are in substantial conformance with the form of such Development Agreement attached hereto. The Mayor is hereby authorized to execute the Development Agreement, including related exhibits and attachments on behalf of the City. A copy of the final Agreement when executed by the Mayor and the other parties shall be placed on file in the Office of the City Clerk. Section 4. Authoritv of Citv Manaaer. The City Manager (or his designee), is hereby authorized, on behalf of the City, to take all actions necessary and appropriate to carry out and implement the Development Agreement and to administer the City's obligations, responsibilities and duties to be performed under the Development Agreement, including but not limited to, approval and execution on behalf of the City of acceptances, certificates, certificates of completion and such other implementing agreements and documents as contemplated, necessary or described in the Development Agreement. Section 5. Certification. The City Clerk shall certify to the adoption of this Ordinance. This Ordinance shall take effect upon its adoption. R:/Ords 2007/0rds 07-13 3 I PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 9th day of October, 2007. 7~ / C ' ck Washington, Mayor ATTEST: [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 07-13 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 25th day of September, 2007, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 9th day of October, 2007, by the following vote: AYES: 5 COUNCIL MEMBERS: Comerchero, Edwards, Naggar, Roberts, Washington NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: COUNCIL MEMBERS: None ABSTAIN: 0 None I ~ W. Jones, MMC City Clerk R:/Ords 2007/0rds 07-13 4 I RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Temecula 43200 Business Park Drive P.O. box 9033 Temecula, California 92589-9033 Attn: City Clerk Exempt from recording fees pursuant to GoV!. Code Section 27383 (Space above for recorder's use) DEVELOPMENT AGREEMENT TEMECULA PROPERTIES, LLC THIS DEVELOPMENT AGREEMENT (the "Agreement") is entered into as of [DATE], by and between the TEMECULA PROPERTIES, LLC, a California limited liability company (hereinafter "OWNER"), PROFESSIONAL HOSPIT AL SUPPLY, INC., a California corporation (hereinafter "PHS"), and the CITY OF TEMECULA, a municipal corporation, organized and existing under the laws of the State of California (hereinafter "CITY"), pursuant to the authority of Sections 65864 through 65869.5 of the California Government Code (the "Development Agreement Legislation") and Article XI, Section 2 of the California Constitution. I RECITALS This Agreement is predicated upon the following facts: A. These Recitals refer to and utilize terms that are separately defined by Section I or by other Sections of this Agreement. It is the intent of the parties that these words shall have the same meaning in these Recitals as they do in the Agreement. B. The Development Agreement Legislation authorizes the CITY to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property for the following purposes: plans; I. Ensuring high quality development in accordance with comprehensive 2. Reducing uncertainty in the development approval process that might otherwise result in a waste of resources, discourage investment, and escalate the cost of development to the consumer; 3. Strengthening the CITY's comprehensive planning process to provide for the most efficient use of public and private resources by encouraging private participation in the comprehensive planning process; I 946783.6 Final 9118/07 I 4. Assuring owners of land that upon approval, they may proceed with their projects in accordance with defined policies, rules, regulations, and conditions of approval; and 5. Providing for the financing and/or construction of necessary public facilities. C. In addition to the general purposes stated above, the following are among the considerations supporting this Agreement: I. This Agreement authorizes OWNER to develop an approximately eighty- four (84) acre property located within the CITY of Temecula, the County of Riverside, State of California (the "Property"), described in Exhibit "A" with a potential mixture of industrial, commercial retail, office, high density residential, and public institutional facility uses, as further defined in this Agreement. 2. This Agreement will provide for both parties: (a) a high quality development on the Property subject to this Agreement; (b) certainty in the type of development to be undertaken on the Property; and (c) the assurance of adequate public facilities to ensure the good of the community regardless of the CITY's legal authority to impose such requirements under constitutional or statutory authority. I 3. For the CITY, this Agreement serves to provide for: (a) employment growth anticipated to result from the Development of the Property, both during construction and use; (b) an increase in tax revenues anticipated to result from the Development of the Property; and (c) the achievement of the goals and directives of its General Plan. 4. The development of new commercial facilities and offices is an integral part of OWNER's development plans for the Property. Such facilities are expected to bring employment and generate sales tax revenue for the CITY. I 5. OWNER will co-operate in facilitating the Western By-Pass. The CITY is planning for the design, financing, and construction of the Western By-Pass. At this time the CITY contemplates, but has not approved, a financing mechanism, such as but not limited to an assessment district or a community facilities district, by which the Western By~Pass will be funded with Transportation Uniform Mitigation Fees ("TUMF") and grant funds and the properties benefited by the Western By-Pass would pay their fair share of the costs not covered by TUMF or grant funds with credits for appropriate TUMF contributions. OWNER obligations under applicable law will require a substantial payment ofTUMF. Any provision of this Agreement to the contrary notwithstanding, this Agreement does not impose any duty upon OWNER to vote in favor of or join in the formation of a community facilities district or similar entity for financing all or any part of the Western By-Pass. In the event of the formation of a community facilities district or similar entity that includes the Property for financing all or any part of the Western By-Pass, OWNER shall receive credits against its obligation to pay TUMF and/or other fees and/or assessments related to transportation. In the event OWNER has previously thereto paid TUMF fees and the Property becomes subject to the payment of special assessments or similar impositions by virtue of being included in a community facilities district or similar financing entity, then OWNER shall be entitled to a credit against any such special 946783.6 Final 9118/07 2 I assessments and/or similar impositions in the amount ofthe said TUMF fees previously paid on account of the Property. D. OWNER desires to develop the Property in accordance with the provisions of this Agreement, the Applicable Regulations, and those other agencies exercising jurisdiction over the Property. E. OWNER has applied for, and the CITY has approved, this Agreement in order to create beneficial development of the Property and a physical environment that will conform to and complement the CITY's goals, create development sensitive to human needs and values, facilitate efficient traffic circulation, and otherwise provide for the development of the Property in accordance with the best interests of the CITY. F. Project: The following actions have been taken with respect to this Agreement and the I. On September 4, 2007, following a duly noticed and conducted public hearing, the CITY Planning Commission recommended that the CITY Council approve this Agreement; I 2. On September 25, 2007 after a duly noticed public hearing and pursuant to the California Environmental Quality Act of 1970, as amended, ("CEQA'') the CITY Council adopted Resolution 2007-_ approving the Mitigated Negative Declaration for the Project Approvals, this Agreement, and the Project; 3. On September 25, 2007, following a duly noticed public hearing, the City Council introduced Ordinance No. 2007-_and on October 9, 2007 held the second reading and adopted Ordinance No. 2007-_ approving this Agreement, a copy of which is on file in the CITY Clerk's Office at the CITY, which ordinance includes the findings pertaining thereto, including those relating to the CEQA documentation for the Project and this Agreement's consistency with the CITY's General Plan and each element thereof and any specific plans relating to the property. 4. On September 25, 2007, after a duly noticed public hearing, the City Council adopted to following resolutions approving certain entitlements for the Project (the "Project Approvals"): (1) Resolution No. 07-_ approving Planning Application No. PA07- 0048 General Plan Amendment; (2) Resolution No. 07-_ approving Planning Application No. 06-370 Tentative Tract Map TTM 35181; (3) Resolution No. 07-_ approving Planning Application No. P A06-0369 Development Plan; (4) Resolution No. 07-_ approving Planning Application No. P A07-0090 Minor Exception. G. The CITY has engaged in extensive studies and review of the potential impacts of the Project as well as the various potential benefits to the CITY by the Development ofthe Project and has concluded that the Project is in the best interests ofthe CITY. I H. In consideration of the public improvements and beneficial uses of the Property to be provided by OWNER for the CITY and in order to strengthen the planning process for this Property and reduce the economic costs of development, by this Agreement, the CITY intends to 946783.6 Final 9/18/07 3 I give OWNER assurance that OWNER can proceed with the Development of the Property for the Term of this Agreement pursuant to the terms and conditions of this Agreement and in accordance with the Project Approvals and CITY's Applicable Regulations. In reliance on the CITY's covenants in this Agreement concerning the Development of the Property, OWNER has and will in the future incur substantial costs in site preparation and the construction and installation of major infrastructure and facilities in order to make Development of the Property feasible. I. Pursuant to Section 65867.5 of the Development Agreement Legislation, the CITY Council has found and determined that: (i) this Agreement implements the goals and policies ofthe CITY's General Plan, provides balanced and diversified land uses, and imposes appropriate standards and requirements with respect to land development and usage in order to maintain the overall quality oflife and the environment within the CITY; (ii) this Agreement is in the best interests of and not detrimental to the public health, safety and general welfare of the CITY and its residents; (iii) adopting this Agreement is consistent with the CITY's General Plan, and each element thereof and any applicable specific plan, and constitutes a present exercise of the CITY's police power; and (iv) this Agreement is being entered into pursuant to and in compliance with the requirements of Government Code Section 65867 of the Development Agreement Legislation. I J. OWNER and Professional Hospital Supply, Inc. ("PHS") have entered into an agreement providing for the lease of the PHS Property to PHS (as defined in Section 1.14) along with an option for PHS to purchase the PHS Property from OWNER for the development of the PHS Facility. A memorandum of this agreement is recorded in the Riverside County Recorder's Office as Document No. 2007- AGREEMENT NOW, THEREFORE, pursuant to the authority contained in the Development Agreement Legislation, as it applies to the CITY, pursuant to Article XI, Section 2 of the California Constitution, and in consideration of the foregoing recitals of fact, all of which are expressly incorporated into this Agreement, the mutuai covenants set forth in this Agreement and for the further consideration described in this Agreement, the parties agree as follows: I. Definitions. The following words and phrases are used as defined terms throughout this Agreement and each defined term shall have the meaning set forth below. 1.1. Authorizing Ordinance. No. 2007-_ adopted by the CITY on Agreement. The "Authorizing Ordinance" means Ordinance , 2007 approving this 1.2. Applicable Regulations. The phrase "Applicable Regulations" is defined in Section 3.1.2 below. I 1.3. CITY. The "CITY" means the City of Temecula, a Califomia municipal corporation, duly organized and existing under the Constitution and laws of the State of California, and all of its officials, employees, agencies and departments. 946783.6 Final 9/18/07 4 I 1.4. CITY Council. "CITY Council" means the duly elected and constituted CITY Council of the CITY.. 1.5. Development. "Development" means the improvement of the Property for purposes consistent with this Agreement, including, without limitation: grading, the construction of infrastructure and public facilities related to the Off-Site Improvements and on-site improvements, the construction of structures and buildings and the installation of landscaping. 1.6. Development Al!J'eement Legislation. The "Development Agreement Legislation" means Sections 65864 through 65869.5 ofthe California Government Code as it exists on the Effective Date. I. 7. Effective Date. "Effective Date" means the date that the Agreement becomes effective in accordance with Section 2.3.1, below. 1.8. Future DevciIopment Approvals. "Future Development Approvals" means those entitlements and approvals contemplated, necessary, and requested by the CITY or OWNER to cause development to occur upon the Property after the Effective Date. 1.9. Off-Site Improvements. "Off-Site rIDprovements" means the improvements set forth on Exhibit B. I 1.10. OWNER. "OWNER" shall mean TEMECULA PROPERTIES, LLC, a California limited liability company, and all successors in interest, in whole or part, to this entity with respect to that portion of the Property other than the PHS Property, and PROFESSIONAL HOSPITAL SUPPLY, INC. and all successors in interest, in whole or part, to this entity with respect to the PHS Property. 1.11. Intentionallv Omitted 1.12. PHS "PHS" shall mean Professional Hospital Supply, Inc. 1.13 PHS-Related Transferee "PHS-Related Transferee" shall mean an affiliated entity of PHS nominated to hold the PHS Property for the use and development of the business of PHS. 1.14. PHS Property. "PHS Property" shall mean the approximately 36.96 acres of the Property which OWNER has leased to PHS with an option to purchase and which is further described and depicted on Exhibit C, and more particularly described as Lot 4 of Tentative Tract Map No. 35181. 1.15. Proiect. "Project" shall mean Development of the Property for industrial, commercial, retail, offices, high-density residential and public institutional facility uses in accordance with the Project Approvals and this Agreement, inclusive ofthe permitted uses ~d regulations set forth herein. I 1.16. Project Approvals. The phrase "Project Approvals" as used herein shall mean all City approvals, entitlements, or both pertaining to the Project, including without 946783.6 Final 9/18/07 5 I limitation, the following resolutions approving certain entitlements for the Project: (I) Resolution No. 07-_ approving Planning Application No. P A07 -0048 General Plan Amendment; (2) Resolution No. 07-_ approving Planning Application No. 06-370 Tentative Tract Map TIM 35181; (3) Resolution No. 07-_ approving Planning Application No. PA06- 0369 Development Plan; (4) Resolution No. 07-_ approving Planning Application No. PA07- 0090 Minor Exception.. The Parties will cooperate in good faith in the adoption of a Planned Development Ordinance if and when the OWNER applies for the same. Exhibit A. 1.17. Propertv. "Property" shall mean the property depicted and described in 1.18. Public Improvements. "Public Improvements" shall mean the Off-Site Improvements described on Exhibit B. 1.19. Transferee. The person to whom the OWNER sells, assigns or otherwise transfers all or any portion of OWNER's interests in the Property together with all its right, title and interest in this Agreement in accordance with Section 2.5 of this Agreement. Exhibit E. 1.20. Western By-Pass. "Western By-Pass" shall mean that road described on 2. General Provisions. I 2.1. Binding Covenants. The provisions of this Agreement, to the extent permitted by law, constitute covenants that shall run with the Property for the benefit thereof, and the benefits and burdens of this Agreement shall bind and inure to the benefit of the parties and all successors in interest to the parties hereto. 2.2. Interest of OWNER. OWNER represents that OWNER has a legal or equitable interest in the Property that satisfies California Government Code Section 65865(b). 2.3. Term. This Agreement shall become effective on the Effective Date, and shall have a term (the "Term") often (10) consecutive calendar years, commencing upon the issuance by the CITY of a Certificate of Occupancy for the building to be constructed on the PHS Property, subject to specific extensions, revisions, and termination provisions of this Agreement. When the Term has been determined, the parties shall execute and record an Operating Memorandum pursuant to Section 2.6.4 ofthe Agreement that will confirm the Term. The termination of this Agreement pursuant to this Section shall not affect any right or duty arising independently from entitlements issued by the CITY or other land use approvals approved prior to, concurrently or subsequent to the approval of this Agreement, except as may be provided in this Agreement. The zoning of the Property at the time of termination pursuant to this Section shall be the zoning in effect at the time oftermination. I 2.3.1 Effective Date. This Agreement shall become effective only after both: (I) the Authorizing Ordinance becomes effective; and (2) the OWNER either sells the PHS Property to PHS or leases the PHS Property to PHS for a term of not less than eight years. The Effective Date shall be the date on which the later of these two events occurs. When the parties 946783.6 Final 9/18/07 6 I determine the Effective Date, they shall execute and record an Operating Memorandum pursuant to Section 2.6.4 of the Agreement confinning the Effective Date. 2.4. Termination. This Agreement may be terminated by either party upon notice to the other upon the occurrence of any of the following events: (I) if termination occurs pursuant to any specific provision of this Agreement; or (2) entry after all appeals have been exhausted of a final judgment or issuance of a final order directed to the CITY as a result of any lawsuit filed against the CITY to set aside, withdraw, or abrogate the approval of the CITY Council of this Agreement for any part of the Project. The termination of this Agreement pursuant to this Section shall not affect any right or duty arising independently from entitlements issued by the CITY or other land use approvals approved prior to, concurrently or subsequent to the approval of this Agreement, except as may be provided in this Agreement. The zoning of the Property at the time oftermination pursuant to this Section shall be the zoning in effect at the time of termination. 2.5. Transfers and Assignments. I 2.5.1. Restrictions on Transfers. With the exception of the sale or lease of the PHS Property to PHS required for this Agreement to go into effect, OWNER shall not sell, assign, or otherwise transfer all or any portion of its interests in the Property together with all its right, title and interest in this Agreement, or the portion thereof which is subject to the transferred portion of the Property, to any Transferee until such time as the Public Improvements have been accepted by the CITY Council unless the CITY has approved the transfer prior to its completion. CITY shall not unreasonably withhold or unreasonably delay consent to the transfer provided that: (1) the Transferee has specifically assumed in writing the obligations, or a portion of the obligations of the OWNER, to design, construct, install and finally complete the Public Improvements for the Property; (2) the Transferee has the experience and financial capacity to complete the Public Improvements; and (3) the Transferee has obtained replacement bonds, accepted by the CITY for the Public Improvements (in which event, the City shall release the OWNER's corresponding Public Improvement bonds). In the event of any sale, assigrunent, or other transfer pursuant to this Section 2.5, (i) OWNER shall notify the CITY within twenty (20) days prior to the transfer of the name of the Transferee, together with the corresponding entitlements being transferred to such Transferee and (ii) the agreement between OWNER and Transferee pertaining to such transfer shall provide that the Transferee shall be liable for the performance of those obligations of OWNER under this Agreement which relate to the Transferred Property, if any, or shall confirm that the OWNER and all Transferees shall remain jointly liable for the design and construction of Public Improvements pursuant to this Agreement. I 2.5.2. Rights and Duties of Successors and Assigns. Any, each and all successors and assigns of OWNER shall have all of the same rights, benefits, duties and obligations of OWNER under this Agreement. All entities holding title to a portion of the Property shall be jointly liable for the design and construction of the Public Improvements for that portion of the Property as set forth in this Agreement, except as provided in this Agreement or as may be modified in an Operating Memorandum pursuant to Section 2.6.4. Notwithstanding this Section or any other provisions of this agreement, no Transferee of the PHS Property shall be responsible for the design or construction of any Public Improvements (or any portion 946783.6 Final 9118107 7 I thereof) except those that bear a direct relationship, i.e., "nexus" to the Development ofthe PHS Property. 2.6. Amendment of Develooment Agreement. 2.6.1. Initiation of Amendment. Any party may propose an amendment to this Agreement and both parties agree that it may be beneficial to enter into additional agreements or modifications of this Agreement in connection with the implementation of the separate components of the Project. 2.6.2. Procedure. Except as set forth in Section 2.6.4 below, the procedure for proposing and adopting an amendment to this Agreement shall be the same as the procedure required for entering into this Agreement in the first instance. 2.6.3. Consent. Except as expressly provided in this Agreement, any amendment to this Agreement shall require the written consent of both parties. No amendment to all or any provision of this Agreement shall be effective unless set forth in writing and signed by duly authorized representatives of each of the parties. I 2.6.4. Ooeraling Memoranda. The parties acknowledge that refmements and further Development of the Project may demonstrate that changes are appropriate with respect to the details and performance of the parties under this Agreement. The parties desire to retain a certain degree of flexibility with respect to those items covered in general terms under this Agreement. If and when the parties mutually find that changes, adjustments, or clarifications are appropriate to further the intended purposes of this Agreement, they may, unless otherwise required by law, effectuate such changes, adjustments, or clarifications without amendment to this Agreement through one or more operating memoranda mutually approved by the parties, which, after execution, shall be attached hereto as addenda and become a part hereof and may be further changed and amended from time to time as necessary, with further approval on behalf of the CITY by the CITY Manager, or such person designated in writing by the CITY Manager, and by any corporate officer or other person designated for such purpose in a writing signed by a corporate officer on behalf of OWNER. Unless otherwise required by law or by this Agreement, no such changes, adjustments, or clarifications shall require prior notice or hearing, public or otherwise. 2.7. Term ofMao(s) and Other Project Aoorovals. Pursuant to California Government Code Sections 66452.6(a) and 65863.9, the term of any subdivision or parcel map that has been or in the future may be processed for all or any portion of the Property and the term of each of the Project Approvals shall be deemed extended without further required action for a period oftime through the scheduled termination date of this Agreement as set forth in Section 2.3 above if such map or Project Approval would otherwise have expired prior thereto. I 2.8. Amendments to Project Aoorovals. It is contemplated by CITY and OWNER that OWNER may, from time to time, seek amendments to one or more of the Project Approvals. Any such amendments are contemplated by CITY and OWNER as being within the scope of this Agreement as long as they are consistent with the Applicable Regulations and shall, upon approval by CITY, continue to constitute the Project Approvals as referenced herein. The 946783.6 Final 9118/07 8 I parties agree that any such amendments shall not constitute an amendment to this Agreement nor require an amendment to this Agreement. 2.9. Infrastructure Phasing Flexibilitv. Notwithstanding the provisions of any phasing requirements in the Project Approvals, OWNER and CITY recognize that economic and market conditions may necessitate changing the order in which the infrastructure is constructed so long as the modification continues to ensure adequate infrastructure is available to serve that portion of the Project being developed. Therefore, CITY and OWNER hereby agree that should it become necessary or desirable to develop any portion of the Project's infrastructure in an order that differs from the order set forth in the Project Approvals, OWNER and CITY shall collaborate in a good faith effort to agree upon any reasonable modification requested by OWNER provided, however, that any modification to the order of construction of the infrastructure as provided in this Agreement and the Proj ect Approvals shall be approved by the OWNER and CITY in an Operating Memorandum. 3. Develooment of the Prooertv. 3.1. Develooment and Control ofDevelooment. I 3.1.1. ControlofDevelooment. While this Agreement is in effect, OWNER shall have the vested right to develop the Property pursuant to and in accordance with the Applicable Regulations pursuant to this Agreement, including, without limitation, specific uses, densities, and types of Development provided for in the Applicable Regulations, and the CITY shall have the right to control the Development in accordance with the terms and conditions of this Agreement, the Project Approvals and all Applicable Regulations. Except as otherwise specified in the Project Approvals and this Agreement, the Applicable Regulations shall control the design and Development, Future Development Approvals and all Off-Site Improvements and appurtenances in connection therewith. The Applicable Regulations are only those written rules, policies, ordinances, and resolutions described in Section 3.1.2.1 below. OWNER and CITY shall use reasonable efforts to compile the Applicable Regulations in a permanent written form, which shall be kept on file in the Office of the CITY Clerk with a copy . to each party. 3.1.2. Aoolicable Regulations. The regulations applicable to the Development of the Property shall consist of the following requirements ("Applicable Regulations''). 3.1.2.1. General Develooment Regulations. Except as otherwise specified in this Agreement, the ordinances, rules, regulations and official policies governing the permitted uses of the Property, including but not limited to the permitted density and intensity of use, provisions for reservation or dedication of land for public purposes, and the design, improvement, and construction standards and specifications applicable to Development of the Property shall be those ordinances rules, regulations, and official policies as they exist on the Effective Date. I 3.1.2.2. Uses. OWNER shall develop the Property for industrial, commercial, retail, high-density residential, and public institutional facility uses, in 946783.6 Final 9/18/07 9 I accordance with the specific matrix of permitted uses set forth in Exhibit "F" attached hereto. No other uses shall be allowed on the Property unless otherwise authorized by this Agreement, the Project Approvals, or the Applicable Regulations. 3.1.2.3. Multi-Family Parcel Affordable Housing. The following affordable housing requirements shall be applicable to the "Multi-Family Parcel" (as designated hereinafter): I. Multi-Family Parcel. Any multi-family residential uses on the 12 acre parcel on the east side of the Property, as described on Exhibit F ("Multi- family Parcel''), shall include an affordable housing component in accordance with this Section. 2. For Sale/For Rent - Moderate Income ReQuirements. Not less than twenty percent (20%) of the units developed in each phase of Development of the Multi-family Parcel shall be restricted for sale at Affordable Housing Cost to Persons or Families of Moderate Income or for rent to Persons or Families of Moderate Income at Affordable Rent. I 3. Term of Mfordable Housing ReQuirements. The affordable housing requirements for each unit on the Multi-family Parcel shall be in effect for a period of not less than fifty-five (55) years from the date of the certificate of occupancy for the unit. 4. Regulatorv Al!l'eement. The restrictions set forth in this Section as well as the means to implement this Section, including, but not limited to, designation of the affordable housing units, marketing and outreach procedures, procedures for verifying qualified buyers or renters, restrictions on subsequent sales and rentals, lender consent and subordination, and other necessary implementation provisions shall be set forth in a Regulatory Agreement approved by the CITY and OWNER and which Regulatory Agreement shall be recorded prior to the issuance of the first building permit for the Multi-family Parcel. 5. Definitions. "Persons or Families of Moderate Income" shall be defined for the purposes of this Agreement as such term is defined in Section 50093 of the California Health and Safety Code or its successor statute. "Affordable Housing Cost" shall be defined for the purposes of this Development Agreement as such term is defined in Section 50052.5 of the California Health and Safety Code or its successor statute. "Affordable Rent" shall be defined for the purposes of this Agreement as such term is defined in Section 50053 of the California Health and Safety Code or its successor statute. I 3.1.2.4. Uniform Building Codes. Development of the Property shall be subject to such uniform building codes and fire codes as may be adopted by the CITY pursuant to Chapter 15.04 and 15.16 of the Temecula Muuicipal Code, in effect as of the date the building plans are submitted to the CITY for plan check and approval of the building permit. 946783.6 Fina) 9/18/07 10 I 3.1.2.5 Floor Area Ratio for PHS Property The Floor Area Ratio for the PHS Property shall not exceed forty- five percent (45%). This Section 3.1.2.5 shall be effective only upon the close of escrow of a sale or lease of the PHS Property to PHS or a PHS-Related Transferee. If the PHS Property is not sold or leased to PHS or a PHS-Related Transferee, then the provisions of the Temecula Municipal Code on the effective date of this Agreement pertaining to floor area ratios shall govern the PHS Property 3.1.2.6. Final Map Approval OWNER agrees the CITY shall not be required to approve the Final Map for Tentative Map No. 35181 in the event that the OWNER fails to meet or perform any or all of the material requirements of this Agreement pertaining to the physical development of the Property. I Limitation on PHS Property Vested Rights The parties agree that the public benefits of this Agreement to the CITY which enhance the public health, safety and welfare are dependent on a successful conveyance of the PHS Property to PHS or a PHS-Related Transferee for the development and operation of a facility for PHS's business. The parties further agree that it is the particular uses of the PHS Property as a facility for PHS's business that justifies the modifications to current zoning and subdivision standards for the PHS Property as provided in this Agreement. Therefore, the parties agree that the rights to develop the PHS Property in accordance with the requirements for Lot 4 of Tentative Tract Map No. 35181 shall become vested rights under this Agreement only upon and conditioned upon the closing of the sale or lease of the PHS Property to PHS or a PHS-Related Transferee for the development of PHS's Temecula Facility as described in the Deferral Agreement. In the event the OWNER seeks to develop the PHS Property for a user other than PHS's Temecula Facility, the CITY shall have the right to condition the Future Development Approvals for the non-PHS development with such conditions related to slopes and access points as the CITY deems appropriate even if such conditions may be inconsistent with the slopes and access points for the PHS Property as shown on that portion of Tentative Map No. 35181 designated as Lot 4. 3.1.2.7 3.1.2.8. Subseouent Aoorovals. In connection with any Future Development Approval or action which the CITY is permitted or has the right to make under this Agreement relating to the Project, the CITY shall exercise its discretion or take action in a manner which complies and is consistent with this Agreement and such other standards, terms and conditions contained in this Agreement. Upon CITY's granting any Future Development Approval, such Future Development Approval shall become part of the Project Approvals. 3.1.2.9 Development Phasilll!..No building permits shall be issued for the that portion of the Property other than the PHS Property until such time as a building permit has been issued for the facilities to be constructed on the PHS Property pursuant to the Project Approvals. I 3.1.3. Impact Fees. 946783.6 Final 9118/07 11 I 3.1.3.1. Development Impact Fees. The presently adopted Development Impact Fees ("DIP"), as defined in Chapter 15.04 of the Temecula Municipal Code, and the rates of the DIP as set forth in Resolution No. 03-63, shall be the DIP and DIF rates to be imposed upon parcels within the Property for the entire Term during which this Agreement is in effect and shall be those rates in effect on the Effective Date. Resolution No. 03-63 is attached hereto as Exhibit G, and is hereby incorporated by reference. The DIP and the DIP rates shall apply only to the CITY's development impact fees and not to the TUMF, any similarly regional impact fees described in Section 3.1.3.2 of this Agreement or to any other development impact fees imposed by another governmental agency not under the control, directly or indirectly, of the CITY. OWNER shall be entitled to such credits as might be available pursuant to the terms of Chapter 15.04 or other provisions of the Applicable Regulations and this Agreement. 3.1.3.1.I All persons or entities holding title or interest in any portion of the Property, including any, each, and all successors and assigns of OWNER shall be separately responsible for payment of any and all DIP for that portion of the property developed by such person or entity. Notwithstanding this Section or any other provision of this Agreement, the OWNER and any PHS-related Transferee of the PHS Property shall not be required to pay DIP related to the Development of the PHS Property, it being agreed that the payment ofDIF in connection with the Development of the PHS Property by PHS shall be subject to the Deferral Agreement between the CITY and PHS and described in Section 3.1.6 of this Agreement. I 3.1.3.2. TUMF Fees. The presently adopted Transportation Uniform Mitigation Fee, as defined in Chapter 15.08 of the Temecula Municipal Code, any future similar regional development impact fee, or any other development impact fees imposed by another governmental agency shall be imposed upon Development within the Property at the rate in effect as of the date of issuance of each building permit for the Property. OWNER shall be entitled to such credits as might be available pursuant to the terms of Chapter 15.08 or the terms ofthe future allowable fees. Notwithstanding this Section 3.1.3.2, any regional development impact fee that CITY has the discretion to adopt or not adopt, similar to the TUMF or other existing regional fees, shall, if adopted by CITY, not be applicable to the OWNER or the Property. 3.1.3.3. Application/Processing Fees. OWNER shall pay the application and processing fees customarily imposed on the type of entitlement and/or permit sought at the rate, and in the amount, imposed by CITY pursuant to the fee schedule, resolution or ordinance in effect at the time the application is deemed complete and accepted by CITY for action, which fees are designed to reimburse CITY's expenses attributable to processing such applications for entitlements, permits, or both. I 3.1.4. Timing of Development. Except as set forth in Agreement, regardless of any future enactment, by initiative, or otherwise, OWNER shall have the discretion to develop the Property in one phase or in multiple phases at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Specifically, the CITY agrees that OWNER shall be entitled to apply for and receive permits, maps, occupancy certificates, and other entitlements to develop and use the Property at any time, provided that 946783.6 Final 9118/07 12 I such application is made in accordance with this Agreement and the Applicable Regulations. The parties hereto expressly reject the holding of Pardee Construction Company v. City of Camarillo, 37 Cal. 3d 465 (1984), as regards any authority regulating the phasing of Development and construction on the Property. 3.1.5. Permits and Approvals - Cooperation. CITY further agrees to reasonably cooperate with OWNER, at no cost to CITY, in securing any County, State and Federal permits or authorizations which may be required in connection with Development contemplated by OWNER, including without limitation such permits, approvals, and/or consents required by the MSHCP, as more fully set forth in Section 4.1.11, below. This cooperation shall not entail any economic contribution by the CITY. The CITY will process all land use applications, plans, maps, CEQA documents (to the extent required), permits, construction inspection and related documents expeditiously; provided, however, the CITY will not charge additional fees relating to such expeditious processing. Without limiting the foregoing, the parties agree to use their respective good faith efforts to substantially conform to the processing and approval schedule attached as Exhibit "H". I 3.1.6. Concurrently with the approval of this Agreement, CITY and PHS entered into an Operating Covenant Agreement (the "Deferral Agreement''). CITY hereby recognizes that OWNER is the same party as identified as "Developer" in the Deferral Agreement and that OWNER is deemed by CITY to be a third party beneficiary of the Deferral Agreement to the extent the Deferral pertains to the Developer. Article 1.15 of the Deferral Agreement defines "Fee Waiver" as "a credit or reimbursement, as applicable, from the City to PHS or the Developer, as applicable, in the amount of Two Million Dollars ($2,000,000) towards any City fees or costs payable or reimbursable by the Developer or PHS, as applicable, including any development impact, plan check, application, environmental review, permit or similar fees and costs, regarding development of the Temecula Facility. The projected fees and amounts that will be waived by the City are set forth in Exhibit' A' attached to this [Deferral] Agreement." Without limiting the generality of the foregoing, the parties expressly incorporate herein the provisions of Article 4.1 of the Deferral Agreement which provide "Following the Effective Date, on each date on which any City fees or reimbursable costs are payable by the Developer or PHS regarding development of the Temecula Facility, in consideration for PHS' performance of its obligations pursuant to this Agreement, the City shall credit such amount to the Developer or PHS, as applicable, until the full amount of the Fee Waiver has been credited. Ifthe Developer or PHS pays any City fees or reimburses any City costs regarding development of the Temecula Facility prior to the Effective Date, the City shall reimburse the amount of any such payment in full to the Developer or PHS, as applicable, within fifteen (15) days following the Effective Date, and any amount so reimbursed shall be counted towards the total amount of the Fee Waiver." 3.2. Reserved Authority. I 3.2.1. State and Federal Laws and Regulations. In the event that State or Federal laws or regulations prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions 946783.6 Final 9118/07 13 I impractical to enforce. Notwithstanding the foregoing, the CITY shall not adopt or undertake any regulation, program or action, or fail to take any action which is inconsistent or in conflict with this Agreement until the CITY makes a finding that such regulation, program action or inaction is required (as opposed to permitted) to comply with such State and Federal laws or regulations after taking into consideration all reasonable alternatives. 3.2.2. Regulation for Health and Safetv. Notwithstanding anything to the contrary in this Agreement, the CITY shall have the right to apply the CITY regulations (including amendments to the Applicable Regulations) adopted by the CITY after the Effective Date, in connection with any Future Development Approvals, or deny, or impose conditions of approval on any Future Development Approvals if CITY determines that the failure of CITY to make such application or to deny, or impose conditions of approval on any future Development Approvals would place the residents or occupants of the Property or the residents of the CITY, or both, in a condition dangerous to their safety, health, or both. 3.3. Vested Rights. By entering into this Agreement and relying thereon, OWNER is obtaining the vested rights to proceed with the Development of the Property in accordance with the terms and conditions of this Agreement. By entering into this Agreement and relying thereon, the CITY is securing certain public benefits which enhance the public health, safety and welfare, a partial listing of which benefits is set forth in Recital C above. I 3.4. No Conflicting Enactments. Except as otherwise provided by this Agreement, neither the CITY Council nor any other agency of the CITY shall enact a rule, regulation, ordinance, or other measure (collectively "law'') applicable to the Property that is inconsistent or conflicts with the terms of this Agreement. By way of example, any law, whether by specific reference to this Agreement or otherwise, shall be considered to conflict if it limits or reduces the density or intensity of Development as regulated by the Applicable Regulations and Project Approvals or otherwise requires any reduction or increase in the number, size, or square footage oflot(s), structures, buildings, or other improvements, except as provided in Section 3.2. I 3.4.1. Moratorium. It is the intent of OWNER and the CITY that no moratorium or other limitation (whether relating to the Development of all or any part of the Project and whether enacted by initiative or otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative, or final), site development permits, precise plans, site development plans, building permits, occupancy certificates, or other entitlements to use approved, issued, or granted within the CITY, or portions of the CITY, shall apply to the Project to the extent such moratorium or other limitation would restrict OWNER's right to develop the Property as provided by this Agreement in such order and at such rate as OWNER deems appropriate as limited or regulated by this Agreement. The CITY agrees to reasonably cooperate with OWNER in order to keep this Agreement in full force and effect. In the event of any legal action instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement, the parties hereby agree to reasonably cooperate in defending such action. In the event of any litigation challenging the effectiveness of this Agreement, or any portion hereof, this Agreement shall remain in full force and effect while such litigation, including any appellate review, is pending. The filing of any third party lawsuit(s) against CITY or OWNER relating to this Agreement, the Project Approvals or to other 946783.6 Final 9/18/07 14 I development issues affecting the Property shall not delay or stop the Development, processing, or construction of the Project, unless the third party obtains a court order preventing the activity. 3.4.2. Consistency Between this Al1l'eement and Current Laws. The CITY represents that at the Effective Date there are no rules, regulations, ordinances, policies, or other measures of the CITY in force that would interfere with the Development and use of all or any part of the Property according this Agreement. In the event of any inconsistency between any Applicable Regulation, Project Approval, and this Agreement, the provisions ofthis Agreement shall control. 3.5. Reimbursement. Nothing in this Agreement shall preclude CITY and OWNER from entering into any reimbursement agreements for the portion (if any) of the cost of any dedications, public facilities, infrastructure, or any of these that CITY may require as conditions of the Project Approvals, to the extent that they are in excess of those reasonably necessary to mitigate the impacts of the Project. I 3.6. Acauisition ofRililit ofWav for Off-Site Improvements. To the extent the OWNER does not have sufficient title or interest in the real property required for the construction or installation of an Off-Site Improvement, the OWNER shall make a good faith effort to acquire the required property in a timeframe calculated to allow for the orderly Development of the Project. If, following this effort, the OWNER is unable to acquire the required property; the OWNER may request that the CITY acquire the property pursuant to the provisions ofGovemment Code Section 66462.5. The CITY shall consider in good faith the acquisition of the required property pursuant to an agreement in accordance with the provisions of Government Code Section 66462.5. Both parties acknowledge and agree that the acquisition of real property in accordance with the California Eminent Domain Law requires more time than the suggested time frames of Government Code Section 66462.5 allow and therefore, the parties waive these time constraints and the Agreement shall so provide. The parties further acknowledge and agree that the CITY cannot exercise its power of eminent domain unless and until a Resolution of Necessity has been duly adopted by the CITY Council pursuant to law. This Agreement is neither a commitment nor an announcement of an intent by the CITY to acquire any or all of the property required for the Off-Site Improvements. 3.7. Easements. In the event a Proj ect Approval requires an easement to be dedicated for pedestrian use, such an easement shall be permitted to include easements for underground drainage, water, sewer, gas, electricity, telephone, cable, and other utilities and facilities so long as they do not unreasonably interfere with pedestrian use. 4. Obligations of the Parties. I 4.1. Western By-Pass. The parties agree that the public benefits of this Agreement to the CITY which enhance the public health, safety and welfare are dependent on a successful conveyance ofthe PHS Property to PHS for the development and opemtion of a facility for PHS's business. The parties further agree that it is the particular uses of the PHS Property asa facility for PHS's business that justifies the modifications to current standards and funding options for the Western Bypass as provided in this Agreement for the Property and for the PHS Property. Therefore, the parties agree that the provisions of Section 4.1 of this 946783.6 Final 9/18/07 15 I Agreement shall be effective only upon and conditioned upon the closing ofthe sale or lease of the PHS Property to PHS or a PHS-Related Transferee for the development of PHS's Temecula Facility as described in the Deferral Agreement. 4.1.1. Status of Western Bv-Pass. The CITY is planning for the design, financing, and construction of the Western By-Pass. At this time the CITY contemplates, but has not approved, a financing mechanism, such as but not limited to an assessment district or a community facilities district, by which the Western By-Pass will be funded with TUMF and grant funds and in which the properties benefited by the Western By-Pass would pay their fair share of the costs not covered by TUMF or grant funds with credits for appropriate TUMF contributions. Any provision of this Agreement to the contrary notwithstanding, no provision of this Agreement obligates OWNER, with respect to the Property, or PHS with respect to the PHS Property to vote in favor of or join in the formation of a community facilities district or similar entity for financing all or any part of the Western By-Pass. I 4.] .2. Consent to Westem Bv-Pass Financing Mechanism. Neither OWNER, with respect to the Property, nor PHS, with respect to the PHS Property, shall be required by this Agreement to consent to the establishment of a future financing mechanism, such as, without limitation, an assessment district or community facilities district, for the purposes of spreading the costs of financing construction of the Western By-Pass among those property owners who will benefit from its construction. Nothing in this Agreement, however, precludes the CITY or a related entity from initiating proceedings to form such a future fmancing mechanism in accordance with applicable law. 4.].3. Participation in Western Bv-Pass Financing Mechanism. Neither OWNER, with respect to the Property, nor PHS, with respect to the PHS Property, shall be required by this Agreement to participate in the future financing mechanism for the Western By- Pass except as may be required by law (and not by virtue of this Agreement). OWNER, with respect to the Property, and PHS, with respect to the PHS Property, may, however, elect to participate in the future financing mechanism for the Westem By-Pass. Nothing in this Agreement, however, precludes the CITY or a related entity from initiating proceedings to form such a future financing mechanism in accordance with applicable law. I 4.1.4. Construction of Western Bv-Pass as a Condition to Development. Except as provided in Section 4.1.5, CITY shall not require that actual construction of the Western By-Pass, or a portion thereof, be a condition precedent, a condition concurrent or a condition subsequent to Future Development Approvals for the Property or the PHS Property. If the City or other governmental agency designs and construct the Western By-Pass, the City or such other agency shall be responsible for all costs associated with the Western By-Pass including without limitation, roads, utilities, slopes, grading, retaining walls, and landscaping. The CITY shall be responsible for all slopes, grading and retaining walls required to construct the Western By-Pass as shown on Exhibit E. The OWNER shall be responsible for all grading, slopes, and retaining walls required to construct Parcel 2, as shown on Exhibit E. The Owner shall have the right to grade and develop Parcel 2 prior to construction ofthe Western By-Pass as approved in Tentative Map No. 35181, as shown on ExhibitM, provided that the development of Parcel 2 does not inhibit construction or potentially place additional costs upon the CITY or other governmental entity for the future development of the Westem Bypass. 946783.6 Final 9/18/07 16 I 4.1.5. Westem By-Pass Connector Roads; On and OffRamDs. Provided the Western By-Pass is actually constructed, OWNER shall, at its own expense, design, secure rights of way, obtain all applicable governmental approvals and construct any approved connector roads or on or off ramps and related improvements from the Property to the Western By-Pass. CITY will use its good faith in evaluating and considering approval of a reasonable request by OWNER of any connector roads or on or off ramps from the Property to the Western By-Pass. Connector road construction costs shall include, without limitation, rights-of-way, roads, utilities, slopes, grading, and retaining walls associated with such connector roads or on or off ramps. 4.1.6. TUMF Credits and Reimbursements. In the event that OWNER desires to construct a portion of the Western By-Pass for access to the Property, any connector roads or on or off ramps, OWNER may apply for TUMF reimbursements or credits in accordance with the credit and reimbursement provisions of Chapter 15.08 of the Temecula Municipal Code pertaining to TUMF for any such portions of the Western By-Pass. In agreeing to this provision, OWNER acknowledges and agrees that CITY can provide no assurances that such constructs are now or will be in the future eligible for TUMF credits or reimbursements. 4.1.7. Reming;ton Road Extension. OWNER shall be responsible for all costs associated with the construction of the Reming;ton Road extension, the connection to the Western By-Pass and the installation of access points from the Property to Remington Road; in substantial conformity with the plans depicted in Exhibit I (phase II Streets). I 4.1.8. Access Points/Commercial Deliveries. For clarity of understanding, the parties acknowledges that access points i) along Remington Road; ii) pertaining to the future access of the extension of Remington Road to the Western By-Pass; iii) pertaining to Dendy Drive as it adjoins the Property; iv) and along the Western-By-Pass are as set forth on Tentative Map No. 35181 (the "Map"). The foregoing notwithstanding, potential additional access points are shown on Exhibit J. The number and precise locations of such potentially additional access points are to be analyzed and agreed upon in good faith by the CITY and OWNER in conjunction with the processing of applicable development plans in the future bearing in mind the reasonable commercial considerations of OWNER and the reasonable safety and design considerations of CITY. CITY and OWNER may reasonably modify the location of the access points through an Operating Memorandum pursuant to Section 2.6.4 approved by the OWNER and the City Manager of CITY. 4.1.10. Offer of Dedication of CherrY Street. OWNER shall, in consideration of all benefits received under this Agreement, grant or dedicate to the CITY or other such governmental agency as may construct Cherry Street, such right of way, roadway, utilities, slopes, walls, piers, or other construction that would facilitate construction of Cherry Street ("Cherry Street ROW"). The foregoing notwithstanding, the area where such easements or other authorizations as may be required is limited to that area within the Right-of-Way as approved on Tentative Map 35181. The City, or any other governmental agency, as the case may be, shall be responsible for any and all retaining walls and slopes required to keep the impacts of Cherry Street within the Right-of-Way and shall not impede the development of the any parcel within Tentative Map No. 35181. If the CITY is able to obtain approval from all applicable governmental agencies associated with the construction of portions ofthe Western I 946783.6 Final 9118/07 17 I By-Pass northerly of the City's boundary and accepts the aligrunent ofthe Western By-Pass as depicted on Exhibit N or ever abandons its intention to design and construct part or all of Cherry Street such that part or all of the Cherry Street ROW is no longer reasonably needed by the CITY for the construction of Cherry Street, CITY agrees to execute and forthwith record such documents as are reasonably needed to release that portion of the Cherry Street ROW that is no longer needed from any lien, easement, or obligation created by this Section 4.1.10. In addition, OWNER shall have the option tO,relocate the detention basin, in accordance appropriate CITY permit processes and extend improvements within the previously dedicated area in a manner which the parties shall negotiate in good faith. Furthermore, in such event, CITY shall use good faith efforts to secure access points to the Western By-Pass in the same approximate latitudinal position to the access points to the Westem By-Pass for Cherry Street approved on Tentative Map 35181. The requirements of the last sentence are demonstrated on Exhibit N. If the CITY or other governmental agency designs and constructs Cherry Street, the CITY or such other agency shall be responsible for all costs associated with Cherry Street, including without limitation roads, utilities, slopes, grading, retaining walls, and landscaping with the exception that the OWNER bears all associated costs related to connection with Cherry Street. I 4.1.11. Water Oualitv Plan. CITY agrees that a Water Quality Plan for the development of the PHS Property will satisfy the current water quality requirements of CITY for the Project as presently designed if it is in substantial conformity as that depicted in the Project Specific Water Quality Management Plan prepared by SB&O dated June 10, 2007 for the PHS Property on file in the Office of the City Clerk. 4.1.12 Offer of Dedication of Western Bv-Pass Easements. OWNER shall, in consideration of all benefits received under this Agreement, grant or dedicate to the CITY, or such other governmental agency as may construct the Westem By-Pass, such easements or other authorizations as may be necessary for the Western Bypass to utilize a portion of the Property for right of way, roadway, utilities, slopes, walls, piers, or other construction that would facilitate construction of the Western By-Pass (UWestern By-Pass ROW") Within the Right-of-Way and easements as approved on Tentative Map No. 35181. If the City ever abandons its intention to design and construct part of all of the Western By-Pass such that part or all of the Western By-Pass ROW is no longer reasonably needed for the construction of the Western By-Pass, CITY agrees to execute and record such documents as are reasonably needed to release that portion of the Western By-Pass ROW no longer needed from any lien, easement, or obligation created by this Section 4.1.13. Furthermore, in the event of such partial or full abandonment or in the event that the final aligrunent of the Western By-Pass is such that part or all ofthe Eastern most toe of the Western By-Pass isWest of the aligrunent approved in Tentative Map No. 35181 , then the CITY shall cooperate in good faith in processing the OWNERS application for a lot line adjustment such that the Western Parcel Line shall extend to the toe of the slope of the Eastern most edge of the Western By-Pass. As stated in Section 4.1.1, the Western By-Pass aligrunent is in the design planning phase. Both parties have in good faith developed an aligrunent to accommodate the development ofthe PHS Property to the best of their respective abilities with the information available to at the time of approval of this Agreement. In the event that circumstances arise that cause an alteration in the assumed horizontal and vertical aligrunent and associated appurtenances for the Westem By"Pass, the OWNER and the CITY shall cooperate in good faith with the each other in processing adjustment(s) ofthe lot lines, easements and access points described in this Agreement or the I 946783.6 Final 9/18/07 18 I Project Approvals, except to the extent that said adjustments would have a material adverse economic impact on the Project. That certain document entitled "Western Bypass Alignment- North Segment-55 mph Design Speed" dated April 24, 2007, prepared by URS for the City of Temecula shall be the reference point for determining the extent of any such change of alignment and economic impact. 4.1.13. Western Bv-PasslProiect Aooroval Conditions. Subject to the provisions of Section 4.1.5 above, none of OWNER's or PHS's Project Approvals or permits shall contain conditions requiring the construction or completion of any portion of the Western By-Pass, except those improvements associated with connection of the extension of Remington Road as described in Section 4.1.7 above. 4.2. OWNER's Obligations to Construct Public Imorovements. OWNER shall, at its sole cost and expense, design, construct, install, and finally complete Off-Site Improvements. The design, construction, installation, and final completion of the Off-Site Improvements shall be in conformance with the CITY standards in effect as of the date of this Agreement and Improvement Plans approved by the CITY Engineer. Except as otherwise provided in this Agreement, the Off-Site Improvements shall be completed at such time as set forth in the conditions of approval for Development on the Property. CITY and OWNER shall enter into the CITY's standard subdivision improvement agreement, or an applicable modification thereof, for the completion of the Public Improvements. I 4.3. Maintenance of Improvements. Responsibility for the ongoing maintenance of improvements provided by OWNER pursuant to this Agreement shall be apportioned between the parties in accordance with the terms of this Section. 4.3.1. CITY Maintenance of Dedicated Public Imorovements. CITY shall maintain all dedicated and accepted Public Improvements, including but not limited to, public streets and related walls, streetlights, and public storm drainage facilities. 4.3.2. OWNER Maintenance of Landscaoing and Storm Drain Facilities. OWNER shall maintain all landscaping on the Property and on adjacent City rights-of-way and all storm drainage facilities on the Property. 4.4. Easements. CITY shall grant such easements over CITY property as are reasonably needed for the Development ofthe Property provided such easements do not impede or interfere with public services provided on such properties. OWNER agrees to grant to the CITY such easements over its property as are reasonably needed for the construction and maintenance of public improvements, except to the extent such easements would have a material adverse economic effect on the Project. Such grants shall be at no additional cost to the OWNER or CITY. 4.5. Financing Mechanisms. I 4.5.1. Industrial Develooment Bonds. If requested by OWNER, CITY shall cooperate in the issuance of Industrial Development Bonds, as allowed by State or Federal law. 946783.6 Final 9118/07 19 I 4.5.2. Cost of Creating Financing Mechanism. If the formation or establislunent of any public financing mechanism is requested by OWNER, OWNER shall bear the full cost of creating any and all such financing mechanisms. 4.6. Public Financing of Imllrovements. OWNER may, from time to time, request CITY to establish one or more assessment and/or community facilities districts to finance infrastructure, public facilities and/or fees that may be required in connection with the Development ofthe Project and CITY agrees to use its best efforts to implement such requests subject to applicable State and Federal law and to the Applicable Regulations. 5. Further Assurances to OWNER Regarding Exercise of Reserved Authoritv. I 5.1. Assurances to OWNER. The parties further acknowledge that the public benefits to be provided by OWNER to the CITY pursuant to this Agreement are in consideration for and reliance upon assurances that the Property can be developed in accordance with the Project Approvals and this Agreement. Accordingly, while recognizing that the Development of the Property may be affected by exercise of the authority and rights reserved and excepted as provided in Section 3.2 ("Reserved Authority") of this Agreement, OWNER is concerned that normally the judiciary extends to local agencies significant deference in the adoption of land use regulations which might permit the CITY in violation of the Reserved Authority, to attempt to apply regulations which are inconsistent with the Project Approvals pursuant to the exercise of the Reserved Authority. Accordingly, OWNER desires assurances that the CITY shall not and the CITY agrees that it shall not further restrict or limit the Development of the Property in violation of this Agreement except in strict accordance with the Reserved Authority. 5.2. Judicial Review. Based on the foregoing, in the event OWNERjudicially (including by way of a reference proceeding) challenges the application of a future land use . regulation as being in violation of this Agreement and as not being a land use regulation adopted pursuant to the Reserved Authority, OWNER shall bear the burden of proof in establishing that such rule, regulation, or policy is inconsistent with the Applicable Regulations, the Project Approvals, or both and the CITY shall thereafter bear the burden of proof in establishing that such regulation was adopted pursuant to and in accordance with the Reserved Authority and was not applied by the CITY in violation of this Agreement. 6. Indemnification. I 6.1. OWNER agrees to indemnify and hold harmless the CITY, its agents, officers, contractors, attorneys, and employees ("Indemnified Parties") from and against any claims or proceeding against the Indemnified Parties to set aside, void or annul the approval of this Agreernent. Notwithstanding the provisions of Section 2.5.1 of this Agreement, OWNER's obligation pursuant to this Section is not a benefit or burden running with the land and shall not. be assigned to any person without the express written consent of the CITY. OWNER's duties under this Section are solely subject to and conditioned upon the Indemnified Parties written request to OWNER to indemnify the Indemnified Parties. OWNER shall deposit the expected costs of defense with the CITY within five (5) business days of notice from the CITY of the claim and shall add to the deposit within five (5) business days from the request of CITY. Without in any way limiting the provisions of this Section, the parties hereto agree that this 946783.6 Final 9/18/07 20 I Section shall be interpreted in accordance with the provisions of California Civil Code Section 2778 in effect as of the Effective Date.. 6.2. Notwithstanding Section 6.1, and as a separate and distinct obligation of OWNER, OWNER agrees to indenmify and hold harmless the Indemnified Parties from and against each and every claim, action, proceeding, cost, fee, legal cost, damage, award or liability of any nature arising from alleged damages caused to third parties and alleging that the Indemnified Parties is or are liable therefor as a direct or indirect result ofthe CITY's approval of this Agreement. OWNER's duties under this Section are solely subject to and conditioned upon the Indemnified Parties written request to OWNER to indemnify the Indemnified Parties. OWNER shall deposit the expected costs of defense with the CITY within five (5) business days of notice from the CITY of the claim and shall add to the deposit within five (5) business days from the request of CITY. Without in any way limiting the provisions of this Section, the parties hereto agree that this Section shall be interpreted in accordance with the provisions of California Civil Code Section 2778 in effect as of the Effective Date. 7. Relationshiu of Parties. The contractual relationship between the CITY and OWNER is such that OWNER is an independent contractor and not the agent or employee of the CITY. The CITY and OWNER hereby renounce the existence of any form of joint venture or partnership between them, and agree that nothing contained in this Agreement or in any document executed in connection with the Development of the Property shall be construed as making the CITY and OWNER joint ventures or partners. I 8. Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by mutual consent of the parties in the manner provided for in Government Code Section 65868. No amendment or modification of this Agreement or any provision hereof shall be effective unless set forth in writing and signed by duly authorized representatives of each party hereto. This provision shall not limit the CITY's or OWNER's remedies as provided by Section 10.3. . 9. Periodic Review of Compliance with Agreement. 9.1. Periodic Review. The CITY and OWNER shall review this Agreement at least once every 12-month period from the date this Agreement is executed. The CITY shall notify OWNER in writing of the date for review at least thirty (30) days prior thereto. Such periodic review shall be conducted in accordance with Government Code Section 65865.1. 9.2. Good Faith Comuliance. During each periodic review, OWNER shall be reqnired to demonstrate good faith compliance with the terms of this Agreement. OWNER agrees to furnish such reasonable evidence of good faith compliance as the CITY, in the exercise of its reasonable discretion, may require. If requested by OWNER, the CITY agrees to provide to OWNER, a certificate that OWNER or a duly authorized Transfere~ is in compliance with the terms ofthis Agreement, provided OWNER reimburses the CITY for all reasonable and direct costs and fees incurred by the CITY with respect thereto. I 946783.6 Final 9118/07 21 I 9.3. Failure to Conduct Annual Review. The failure of the CITY to conduct the annual review shall not be an OWNER default. Further, OWNER shall not be entitled to any remedy for the CITY's failure to conduct this annual review. 9.4. Initiation of Review bv CITY Council. In addition to the annual review, the CITY Council may at any time initiate a review of this Agreement by giving written notice to OWNER. Within thirty (30) days following receipt of such notice, OWNER shall submit evidence to the CITY Council of OWNER's good faith compliance with this Agreement and such review and determination shall proceed in the same manner as provided for the annual review. The CITY Council shall initiate its review pursuant to this Section only ifit has probable cause to believe the CITY's general health, safety, or welfare is at risk as a result of specific acts or failures 'to act by OWNER. 9.5. Administration of Agreement. Any final decision by the CITY staff concerning the interpretation and administration ofthis Agreement and Development of the Property in accordance herewith may be appealed by OWNER to the CITY Council, provided that any such appeal shall be filed with the CITY Clerk within ten (10) business days after OWNER receives written notice that the staff decision is final. The CITY Council shall render its decision to affirm, reverse, or modify the staff decision within thirty (30) days after the appeal was filed. The decision of the City Council as to the administration of this Agreement shall be finaJ and is not appealable. The foregoing notwithstanding, breaches of this Agreement are subject to judicial relief as provided in this Agreement. I 9.6. Availabilitv of Documents. Ifrequested by OWNER, the CITY agrees to provide to OWNER copies of any documents, reports or other items reviewed, accumulated or prepared by or for the CITY in connection with any periodic compliance review by the CITY, provided OWNER reimburses the CITY for all reasonable and direct costs and fees incurred by the CITY with respect thereto. The CITY shall respond to OWNER's request on or before ten (10) business days have elapsed from the CITY's receipt of such request. 10. Events of Default: Remedies and Termination. Unless amended, modified, or suspended pursuant to Government Code Section 65869.5, this Agreement is enforceable by either party hereto. I 10.1. . Defaults bv OWNER. If the CITY determines that OWNER has not complied in good faith with the terms and conditions of this Agreement, the CITY shall, by written notice to OWNER, specify the manner in which OWNER has failed to so comply and state the steps OWNER must take to bring itself into compliance. If, within thirty (30) days after the effective date of notice from the CITY specifYing the manner in which OWNER has failed to so comply, OWNER does not commence all steps reasonably necessary to bring itself into compliance as required and thereafter diligently pursue such steps to completion, then OWNER shall be deemed to be in default under the terms of this Agreement. The foregoing 30-day period shall be tolled during the pendency of any appeal undertaken pursuant to Section 9.5, if applicable. Default of OWNER shall also include, but not limited to, OWNER's failure to timely commence construction of the Public In1provements pursuant to this Agreement; OWNER's failure to timely complete construction of the Public In1provements; OWNER's failure to timely cure any defect in the Public In1provements; OWNER's failure to perform 946783.6 Final 9118107 22 I substantial construction work on the Public Improvements for a period of 20 calendar days after commencement of the work; or OWNER's failure to perform any other obligation conceming the Public In1provements under this Agreement. Except as provided in Section 13 ("Attomeys Fees'') CITY's remedies for OWNER's breach shall be limited to those specified in Section 10.3. 10.2. Defaults bv CITY. If OWNER determines that the CITY has not complied in good faith with the terms and conditions of this Agreement, OWNER shall, by written notice to the CITY, specify the manner in which the CITY has failed to so comply and state the steps the CITY must take to bring itself into compliance. If, within thirty (30) days after the effective date of notice from OWNER specifying the manner in which the CITY has failed to so comply, the CITY does not commence all steps reasonably necessary to bring itself into compliance as required and thereafter diligently pursue such steps to completion, then the CITY shall be deemed to be in default under the terms of this Agreement. OWNER's remedies for CITY'S breach shall be limited to those specified in Section 10.3. 10.3. Legal Remedies. I 10.3.1. No MonetarvDamages. Due to the size, nature, and scope of the Project, it will not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER may be foreclosed from other choices it may have had to utilize the Property and provide for other benefits. OWNER has invested significant time and resources and performed extensive planning and processing of the Development of the Property in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, and it is not possible to determine the sum of money which would adequately compensate OWNER for such efforts. For the above reasons, the CITY and OWNER agree that damages would not be an adequate remedy if the CITY fails to carry out its obligations under this Agreement and that OWNER shall have the right to seek and obtain specific performance as a remedy for any breach of this Agreement. Moreover, the CITY would not have consented to this Agreement if it were to be subject to damages for breach of this Agreement. Therefore, OWNER specifically agrees that it has no authority under this Agreement to seek monetary damages against the CITY for any breach of this Agreement by the CITY, and agrees not to seek monetary damages against the CITY for breach of this Agreement. I 10.3.2. Soecific Performance Remedv. The CITY and OWNER further acknowledge that, if OWNER fails to carry out its obligations under this Agreement, the CITY shall have the right to refuse to issue any permits or other approvals that OWNER would otherwise have been entitled to pursuant to this Agreement. Therefore, the CITY's remedy of denying issuance of permits or terminating this Agreement shall be sufficient in most circumstances if OWNER fails to carry out its obligations hereunder. Notwithstanding the foregoing, if the CITY issues a permit or other approval pursuant to this Agreement in reliance (explicitly stated in writing) upon a specified condition being satisfied by OWNER in the future, and if OWNER then fails to satisfy such condition, the CITY shall be entitled to specific performance for the sole purpose of causing OWNER to satisfy such condition. The CITY's right to specific performance shall be limited to those circumstances set forth above, and the CITY shall have no right to seek specific performance to cause OWNER to otherwise proceed with the Development of the Project in any manner. 946783.6 Final 9118/07 23 I 10.4. Institution of Legal Action. In addition to any other rights or remedies, and except as provided in Section 11.3, OWNER or the CITY may institute legal action to cure, correct or remedy any default, to enforce any covenants or agreements herein, to enjoin any threatened or attempted violation hereof to recover damages for any default, or to obtain any other remedies consistent with the purpose ofthis Agreement. Such legal action shall be heard by a referee from the Riverside County Superior Court pursuant to the reference procedures of the California Code of Civil Procedure Sections 638, et seq., OWNER and the CITY shall agree upon a single referee who shall then try all issues, whether of fact or law, and report a finding and judgment thereon ana issue all legal and equitable relief appropriate under the circumstances of the controversy before him/her. If OWNER and the CITY are unable to agree on a referee within ten (10) days ofa written request to do so by either party hereto, either party may seek to have one appointed pursuant to the California Code of Civil Procedure Section 640. The cost of such proceeding shall initially be borne 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 California Constitution. 10.5. EstoDDel Certificates. I 10.5. I. Written Request. Either party may at any time deliver written notice to the other party requesting an estoppel certificate (the "Estoppel Certificate") stating: (1) this Agreement is in full force and effect and is a binding obligation of the parties; (2) this Agreement has not been amended or modified either orally or in writing or, if so amended, identifying the amendments; and (3) no default in the performance of the requesting party's obligations under this Agreement exists or, if a default does exist, the nature and amount of any default. 10.5.2. Thirtv (30) Davs to ResDond. A party receiving a request for an Estoppel Certificate shall provide a signed certificate to the requesting party within thirty (30) days after receipt of the request. 10.5.3. Authorized Signatories.. The CITY Manager or any person designated by the CITY Manager may sign the Estoppel Certificates on behalf of the CITY. Any officer of OWNER may sign on behalf of OWNER. and mortgagees. 10.5.4. Reliance. An Estoppel Certificate may be relied on by assignees 10.5.5. Reimbursement. In the event that one party requests an Estoppel Certificate from the other, the requesting party shall reimburse the other party for all reasonable and direct costs and fees incurred by such party with respect thereto. 10.5.6. Failure to Provide EstoDDel Certificate. Failure by a party to provide an Estoppel Certificate within thirty (30) days after receipt of the request therefor shall be deemed confirmation that this Agreement is in full force and effect, has not been amended or modified either orally or in writing and that no defaults in the performance of the requesting party's obligations under this Agreement exist. I 946783.6 Final 9/18/07 24 I 11. Waivers and Delays. 11.1. No Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, and failure by a party to exercise its rights upon a default by the other party hereto, shall not constitute a waiver of such party's right to demand strict compliance by such other party in the future. 11.2. Third Parties. Non-performance shall not be excused because of a failure of a third person, except as provided in Section 11.3 11.3. Force Maieure. OWNER shall not be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots, terrorism, or similar hostilities, strikes and other labor difficulties beyond OWNER's control, government regulations (including, without limitation, state and federal environmental and natural resource regulations applied to the Property), or judicial decisions directly applicable to the Property. 11.4. Extensions. The Term ofthis Agreement and the time for performance by OWNER or the CITY of any of its obligations hereunder shall be extended by the period of time that any of the events described in Section 11.3 and this Section 11.4 exists and/or prevents performance of such obligations. In addition, the Term shall be extended for delays arising from the following events for a time equal to the duration of each delay occurring during the Term. I 11.4.1. Litigation. The period of time after the Effective Date during which litigation related to this Agreement or having the actual effect of delaying implementation of the Development of the Property is pending, including litigation pending on the Effective Date. This period shall include any time during which appeals may be filed or are pending. 11.4.2. Government Agencies. Any delay resulting from the acts or omissions of the CITY or any other governmental agency or public utility and beyond the reasonable control of OWNER except those related to the normal and customary processing of Future Development Approvals. 12. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid, return receipt requested, or by overnight delivery. Notices required to be given to the CITY shall be addressed as follows: City ofTemecula 43200 Business Park Drive Post Office Box 9033 Temecula, CA 92589-9033 Attention: CITY MANAGER With a copy to: I Richards, Watson & Gershon 355 South Grand Avenue, 40th Floor 946783.6 Final 9118/07 25 I Los Angeles, CA 90071-1469 Attention: Peter M. Thorson, City Attorney Notices required to be given to OWNER shall be addressed as follows: The Garrett Group, LLC One BetterW orld Circle, Suite 300 Temecula, CA 92590 Attention: John Potts, Vice President Real Estate With a copy to: Martin A. Weiss, J.D., LLM, General Counsel One BetterWorld Circle, Suite 300 Temecula, CA 92590 A party may change its address for notices by giving notice in writing to the other party as required herein and thereafter notices shall be addressed and transmitted to the new address. 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, or air bill. I 13. Attornevs' Fees. Iflegal action is brought by either party against the other for breach of this Agreement, including actions derivative from the performance of this Agreement, or to compel performance under this Agreement, the prevailing party shall be entitled to an award of its costs, including reasonable attorneys' fees, and shall also be entitled to recover its contribution for the costs of the referee referred to in Section 10.4 above as an item of damage and/or recoverable costs. Attorneys' fees under this Section shall include attorneys' fees on any appeal and, in addition, a party entitled to attorneys' fees shall be entitled to all other reasonable costs and expenses, including, without limitation, expert witness fees, incurred in connection with such action.. In addition to the foregoing award of attorneys' fees to the prevailing party, the prevailing party in any lawsuit shall be entitled to its attorneys' fees incurred in any post. judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger ofthis Agreement into any judgment on this Agreement. 14. Recording. This Agreement and any amendment or cancellation hereof shall be recorded, at no cost to the CITY, in the Official Records of Riverside County by the CITY Clerk within the period required by Section 65868.5 of the Government Code. 15. Effect of Agreement on Title. 15.1. Effect on Title. OWNER and the CITY agree that this Agreement shall not continue as an encumbrance against any portion of the Property as to which this Agreement has terminated. I 15.2. Encumbrances and Lenders' Rights. OWNER and the CITY hereby agree that this Agreement shall not prevent or limit any OWNER of any interest in the Property, orany 946783.6 FinaI9f18/07 26 I I I portion thereof, at any time or from time to time in any manner, at its or their sole discretion, from encumbering the Property, the improvements thereon, or any portion thereof with any mortgage, deed of trust sale and leaseback arrangement or other security device. The CITY acknowledges that any Lender (as hereinafter defined) may require certain interpretations of or modifications to this Agreement or the Project and the CITY agrees, upon request, from time to time, to meet with the OWNER(s) and/or representatives of such Lenders to negotiate in good faith any such request for interpretation or modification. The CITY further agrees that it will not unreasonably withhold its consent to any such requested interpretation or modification to the extent such interpretation or modification is consistent with the intent and purpose of this Agreement. A default under this Agreement shall not defeat, invalidate, diminish, or impair the lien of any Lender. 15.3. Notice of Defaults. The mortgagee of a mortgage or beneficiary of a deed of trust or holder of any other security interest in the Property or any portion thereof and their successors and assigns, including without limitation the purchaser at a judicial or non-judicial foreclosure sale or a person or entity which obtains title by deed-in-lieu of foreclosure ("Lender") shall be entitled to receive a copy of any notice of default (as defined in Section 10.1 hereof) delivered to OWNER and, as a pre-condition to the institution oflegal proceedings or termination proceedings, the CITY shall deliver to all such Lenders written notification of any default by OWNER in the performance of its obligations under this Agreement which is not cured within sixty (60) days (the "Second Default Notice") and shall allow the Lender(s) an opportunity to cure such defaults as set forth herein. The Second Notice of Default shall specify in detail the alleged default and the suggested means to cure it. After receipt of the Second Default Notice, each such Lender shall have the right, at its sole option, within ninety (90) days to cure such default or, if such default cannot reasonably be cured within that ninety (90) day period, to commence to cure such default, in which case no default shall exist and the CITY shall take no further action. Notwithstanding the foregoing, if such default shall be a default which can only be remedied by such Lender obtaining possession of the Property, or any portion thereof, and such Lender seeks to obtain possession, such Lender shall have until ninety (90) days after the date of obtaining such possession to cure or, if such default cannot reasonably be cured within such period, then to commence to cure such default. Further, a Lender shall not be required to cure any non-curable default of OWNER, and any such default shall be deemed cured if any Lender obtains possession. 16. Severability of Terms. If any term, provision, covenant, or condition of this Agreement shall be determined invalid, void, or unenforceable, the remainder of this Agreement shall not be affected thereby if the tribunal fmds that the invalidity was not a material part of consideration for either party. The covenants contained herein are mutual covenants. The covenants contained herein constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 17. Subseauent Amendment to Authorizing Statute. This Agreement has been entered into in reliance upon the provisions of the Development Agreement Legislation in effect as of the Effective Date. Accordingly, subject to Section 3.2.2 above, to the extent that subsequent amendments to the GovemmentCode would affect the provisions of this Agreement, such amendments shall not be applicable to this Agreement unless necessary for this Agreement to be enforceable or required by law or unless this Agreement is modified pursuant to the 946783.6 FinaI9/18/07 27 I provisions set forth in this Agreement and Government Code Section 65868 as in effect on the Effective Date. 18. Local. State and Federal Laws. OWNER and its contractors shall carry out the design and construction of all private improvements on the Property and all Public Improvements in conformity with all applicable laws, including, without limitation, all applicable federal, state and local occupation, employment, prevailing wage, safety and health laws, rules, regulations and standards. OWNER agrees to indemnify, defend and hold the Indemnified Parties (as defined in Section 6.1) harmless from and against any cost, expense, claim, charge or liability relating to or arising directly or indirectly from any breach by or failure of OWNER or its contractor(s) or agents to comply with such laws, rules or regulations. OWNER's indemnity obligations set forth in this Section shall survive the termination or expiration of this Agreement.. 19. Rules of Construction and Miscellaneous Terms. I 19.1. Interoretation and Governing Law. The language in all parts of this Agreement shall, in all cases, be construed as a whole and in accordance with its fair meaning. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. The parties understand and agree that this Agreement is not intended to constitute, nor shall be construed to constitute, an impermissible attempt to contract away the legislative and governmental functions of the CITY, and in particular, the CITY's police powers. In this regard, the parties understand and agree that this Agreement shall not be deemed to constitute the surrender or abnegation of the CITY's governmental powers over the Property. 19.2. Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 19.3. Gender. The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, "may" is permissive. 19.4. No Joint and Several Liability. At any time that there is more than one OWNER, no breach hereof by an OWNER shall constitute a breach by any other OWNER. Any remedy, obligation, or liability, including but not limited to the obligations to defend and indemnify the CITY, arising by reason of such breach shall be applicable solely to the OWNER that committed the breach. However, the CITY shall send a copy of any notice of violation to all OWNERS, including those not in breach. In addition, a default by any Transferee shall only affect that portion of the Property owned by such Transferee and shall not cancel or diminish in any way OWNER'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. Any amendments to this Agreement between CITY and OWNER shall not affect any portion of the PHS Property unless agreed to in writing by the Transferee 0 f the PHS Property. I 946783.6 Final 9/18/07 28 I 19.5. Time of Essence. Time is ofthe essence regarding each provision ofthis Agreement of which time is an element. 19.6. Recitals. All Recitals set forth herein are incorporated in this Agreement as though fully set forth herein. 19.7. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and this Agreement supersedes all previous negotiations, discussion and agreements between the parties, and no parol evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. I 19.8. Authoritv to Execute Agreement. The person executing this Agreement on behalf of the OWNER warrants and represents to the CITY that this Agreement has been duly approved by the OWNER and that all applicable notices and procedures were complied with and that he/she is duly authorized by the OWNER to execute this Agreement on behalf of the OWNER and has been duly authorized to do so. 19.9. Not for Benefit of Third Parties. This Agreement and all provisions hereof are for the exclusive benefit of the CITY and OWNER and its Transferees and shall not be construed to benefit or be enforceable by any third party. 19.10. Counteroarts. This Agreement may be executed in any number of counterparts, and each of such counterparts for all purposes shall be deemed to be an original, and all of such counterparts shall constitute one and the same agreement. 19.11. Exhibits. The following Exhibits are attached to this Agreement and incorporated herein as though set forth in full: . Exhibit A: Description of Property; . Exhibit B: Off-Site Improvements; . Exhibit C: PHS Property; . Exhibit D: [Intentionally Deleted]; . Exhibit E: Western By-Pass; . Exhibit F: Authorized Land Uses; . Exhibit G: Resolution setting forth applicable Development impact Fee rates; . Exhibit H: Projected Processing Schedule; . Exhibit I: Plan for the Remington Road Extension, Including Future Access Points; I . Exhibit J: Curb Cuts; 946783.6 Final 9118/07 29 I . Exhibit K: MSHCP; and . Exhibit L: [Intentionally Deleted] . Exhibit M Depiction of Parcel 2 Grading . Exhibit N Depiction of Alternative Access Points and Alignments Cherry Street Right-of Way (Section 4.1.1 0) I I 946783.6 Final 9/18/07 30 I IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.. CITY OF TEMECULA, a municipal corporation By: Chuck Washington Mayor ATTEST: Susan Jones, MMC City Clerk APPROVED AS TO FORM: I Peter M. Thorson City Attorney I 31 I TEMECULA PROPERTIES, LLC A California limited liability company By: Redhawk Communities, Inc. A California corporation Its: Managing Member By: Paul Garrett, President I I 32 I PROFESSIONAL HOSPITAL SUPPLY, INC, a California corporation. By: John Augustine Chief Financial Officer I I 33 I State of Califomia ) ) ) ss County of Riverside On before me, , (here insert name of the officer), Notary Public, personally appeared personally known to me (or 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 hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Signature of Notary State of California ) ) ) ss I County of Riverside On before me, , (here insert name of the officer), Notary Public, personally appeared , personally known to me (or 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 hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Signature of Notary I 34 I EXHIBIT A (Description of Property) I I EXHIBIT A I LEGAL DESCRIPTION PARCEL A. LOT LINE ADJUSTMENT NO. PA-06-0179 I PARCEL A. Lot Line Adjustment No. P A 06- 0279 Parcel A of City ofTemecu1a Lot LIne Adjustment No. PA-06-0279, approved by the City ofTemecula on November 16, 2006 and recorded pecem.ber 7, 2006 as Instrwnent No. 2006-0898508, Official Records of RiVerside, County, State of California. being more particularly.described as follows: Being a porJlon o/Parcel "A" 0/ Lot Line Adjustment No.1 1, In the City 0/ Temecula, CountyofRivmlde, State o/Callfornia, recordedJanuary 13,1993, as Instrument1/(}. -13666 of Official Records of said County. olio a portion of Parcel "B" of lot line Adjustment No. PAOO-0051, in the City ofTemecU#a, County of Riverside, State o/California, recorded MOy 19,2000, as Instrument No. 2000-190898, o/Officlal Records of said Coimty, more particularly described as follows: COMMENCING at the westerly corner of said Parcel ",,4 "; Thence North 48 'fJ9 '38 "East along the northwe.rter/y line of said Parcel "A", a . distance of688.10feet, being the TRUEPO/NTOF BEGlNNJNG; Thence leaving said northwesterly line, South 29,,(}8'20" East, Q distQnce of 641.21 feet, 10 the beginning 0/ Q tangent curve concave southwesterly, having a radius 0/1050.00 feet, a radial line bears North 60"5I'40"Ec1st; Thence southeasterly along said curve through Q central angle of 11 "49 '37", an Qrc dislcmce of216.74feet; Thence South 17"18'43" East, Qdistanceof109.23feet, to the beginningofQ tangent curve concave northeQsterly, having Q radius of 1450.00 feet, a radial line bears South 72"4J'17"West; Thence southeasterly along said curve through a cenJral angle 34 ,,(}2 '06, an arc distance of861.33 feet; Thence South 51 "20'49" East, a distance of88.82 feet, to the southeasterly line of said Parcel "B"; Thence along said southeasterly fine North 38"49 '43" East, a distance of 11 56.40 feet, to the centerline o/Winchester Road (100.00 feet wide); Thence along said centerline North 19"53 '29"West, a distance of232.02 feet; Thence leaving said centerline South 70 ,,(}6'3J" West, a distance 0/50;00 feet, to the beginning 0/ a non-tangent curve concave southwesterly, having a radius 0/800.00 feet, a radial line bears. North 70 ,,(}6'31 "East. also being a point in the southwesterly right-ol-way line of said Winchester Road I D:\65472\sumy\llAlPan:eI A LLA PA06-021~.tloc. I Legal Description Parcel A, Lot Line Adjustment No. PA-06-0279 Page 2 of2 Thence northwesterly along said curve and said right-of-way line through a central angle of26"27'06", an arc distance of369.33 feet; Thence along said right-of-way line North 46"20'35" West, a distance of 184.96 feet, to an angle point In said right-of-way line; Thmce along said right-of-way line South 88"39'25" West, a distance of32.S3 feet; I Thence along said right-of-way line North 46"20'35" West, a distance of 50. 00 feet, to the southwe.rterly prolongation of the centerline of Dendy Parkway (100.00 feet wide); Thence along saJd prolongation and said centerline North 43 "38'42H East, a . . distance of 428. 76feet, to the beginning of a tangent curve concave southeasterly. having a radiu:r of850.00feel, a radial line bears North 46"21 'l8w West; Thence northeasterly along said curve and saJd centerline through a central angle of27041'40H, an arc di:rtance of 411.10 feet; Thence along said centerline North 71 "21'22" East, a distance of356.61 feet, to the beginning of a tangent curve concave northwesterly, having a ra.dius of850.00 f!et, a radial line bears Sourh 18"37'55" East; Thence northeasterly along said curve, through a central angle of 02 "29'54", an arc distailee of 12.23 feet, to the southerly corner of that certain parcel of land as described in Grant Deed to the City ofTemecula, recorded April 23, 1991 as Instrument No.146241, OfficiaJ Records of Riverside County; Thence along the southwesterly line of saidparcel of land conveyed to the City of Temecula North 41 ".50'22" West, a distance of 1001.63 feet, to the westerly corner thereof, being a paint in the northwesterly line of said Parcel "A "; Thence along said northwesterly line South 48"09 '38" West, a distance of 2019.60 feet, to the TRUE POINT OF BEGINNING. The above described parcel of land contains 66.23 acre:r, more or le:r:r_ This was prepared by me or under my direction. S.B. & 0., Inc. ~~ IX: CROWTHER a "" Em ~.?1\-of> :x> '* ..... * \ ~ No. 61:34..V~ "<'!!fOFC"L~ .......... -8 D - ~ ,,~ ~ j\.\i\DclA-7 'l<:JOi , Marissa Crowther, PLS 6152 Date I D:\65472\sIllYC]lUl.AIParuI A ILA PA06-l1l79.dDC I EXHIBIT B (Off-Site Improvements) I I 1?"r " . , iI,' " " f! , ,; " " " " , II , # I " " 'r , - !f " ~ " o " .:t ff , " I U I " " " " " I. II " " " " J =;:=:::::~., I I I i:j 12 Ii ~l H ~, h I ~~ i ~~~ . ~ I~bli II i . tli~~ \1 ~ ~ 'IJ~~~III' ~ .. ~ .. . , .. .~. I. ill. ;t.l. ~ a. I ~ e I Ii!' . I I I I I I I I \' . " II II " III II, IU '" ," ,/= I' , ' ..: ," I'. '. I. '. , '. I.'i! '. '. I. ,'. , " ll' ,/ " ,I: ;,'1/ " " ,I; ,I; 1/' II. to r , I. / 1 , o.--on=------t, 1 1 H :' i I , I I ! I , , I , ., , I , I ? .133HS 33S 3N17 H:J.1 ~If I 1 ii I " I " I " I II , " , \I , " I " , " I " "I ",I I '1 I , I.' I I, : " I I .. a ... m, .. ~ I I ills. ;t.1 t ~, I 2 t I ~ i I I~h W! J ;m..~ ~ i ~ C(t;"!!,,,,,,, !:l IIJ~~~III i i i I . q~ ~ o z . ~ -L~lo.. . ~ - !i?::5 ~~ ~~ I ',<> ...."(:) ~ ~. ~ 'l-f ~~ ~ .~ ~"t "t~ !:1l"t ~~ ~ ~~ ~ ll:!:I !X ~ ll: " I I ~ I -1-- -, , I -h ~~II ,10 ., I' 1'5 ~ '" II' ", '" . II' \j '" '<{ . ;:".", . ifll. ~ ~f!VI. . . ", '" II' . " ", '" II' '" '" '" '" II' 10 .... - " .... ~ ~ ~ ~ .... - ~ ~ 10 ~ loc ..... ~ ~ Ii) -> "'"" ~ o?P!i3 "'..:-" v; <- \:) ~ ll: ~.~ ~ K~ <:> I..;:: ~ _ r. k l., . ~ ~ ~~<:> Vi ~ Ii)!:?~ 0..: ~ II) i! ~ ~ ~~ ~~ {lj ~~ ~ ~~ .. 'l!, .. ~ ~ ~ . ij I I ~II~ ~~,I i ~, I ~. J I i i -I 9li mIll I IIJJ!~1 D . ... ~. ~ L ~IB- MI I ~~II t I l<!~s. ~!t ~I ~ I I ~~~~ ~ I J I~~~ I~- I . I ~im~ . i .~ IIB~ IiI: . ... ~ 0 a ~" 'I~~~~ . ft .J b~~ . . !~~~ , , . .~ ~~II I I r I I I I I I I I I . I I I I I . L ~ _,,...---- . '. -"-. ........ '-"" '-... ", ........ ........ ........... ....... -......~------ . '.. ------ --- '" '- - ------ ---- .....-----. ~.=-- ----------. ----.;;::~~~._.-==---- ~--------- E.LHS ___ ---- f'WOf/ u t'II b .J & ~ H It) b .J 'f'1't3.Sl.:rJ;.u1:) ~RlI-n..l.LtflX) I ,7 " " " " " " " II ,7 II " ." " " " " " h ," J P ,I " " " - " 9 " " II " " " " " " " =;====;=;;;;;;;=;=~>> ~ I ~I i 1~llh II ! 'ill~~ ~ i ~ 11~~~~~111 ; 11 ~ l! I ~.~ % - --~~ I '- "', "- ~ .. L ~ ij~1 ~~.II ~ l I ~ ~ I I I I I I i i lill ~JI II~I ".JI 0) . . I I I " ~ ., L ~ ill~ I ~b.i . ~~,a t ~ . ! I .! z .. ~ I II~ I . 11~lhll! r-,.I~il:I~! I 1__ ' ,n.~ I!! ! n I'r --t . ' , , . . j \ / -~--1- I /.\ I I ,-- I. 1 \ t : I ! . i o~ :=~~~.I<t1 i i 1 I II . ~\ \ ~ i i fll, ;!'! I.. Inll _Jdll .~ ~ \fL j I I I " ~ I . ., 9 I I I. .. ~ .. ; I ~ I . I~' I t Iii. h~! : ! !llt I IIJl~~111 ~.. .~ z \'i \\ " ~" '\ " "'. 9 '. , " " " '. .. '" '.. " .~.,. .... ........... " '. ..... . I ~ I I I I I I I ~ ~ - 1 -1-- -, I I . ~ ~\~ "- 10 Ii;- '\~ ~ 1/1 ~ 1/1 ~ '" ... '" ~ '" . 1/' "{ Will. .!..: !.!illll ~ lC III >< ~III . '<i ::v' ,,, . II' " . '" "' /11 /1/. II' /1/ If! ~:;;:... III . ~~ ~ ~lii ..1 ~).. ll:~ -~;:s .. t>~ .'<0 1:1-1 S~ .. U!::l !!i:~ ~. 10 b " .~ b b ,. ~ ~ b ~\I: ..\ : ~ " 10 b ~ ~ ~ ~ lI\ ->~ <>'0.>. 8! "" U' '" ...."" ~ ~ ll: .~ ~~ ~S ~ \) "'=. ~ Iij"'= ~tl1 ~~ a:tl ~ .g: ~ ~ ..~ .~ .e5 R ;:~ .C).~ -;::; i:::: ':". ~ ~ ~ ~~ b1 ~ ~I:! ~ ~II),!I, -.....J \" ....R'" ~ ..... ~13 (j ~ !l: :s.;::;;;: lii ~L ~ ~~ ......~ ~ ).... .~ ~ ... l!s. .. L ~ II :1, ~l bill I ~~, ~.. I ~ . i i '-1 ~ I,,~I ,OJ ~ ~ I ~. . ~ u ~ -.; l;l ~~ l3 ~ ~~ it "'- Ii:' ~~~ "'- t V) ~~!::il:> ~ . \ij::i:.s ~ ......~~~~ ~ U ~",<-j I ~ Ii:' os ~~~ -.; t ~ ~ ~ ~ '" ~~ ..., ~ ~ ~ ;, l;l ~ Vi l3 l;l :s l3 it ~ it - - ~ ~ oqf, ~ lll~ ">~<>"o~ G ~? ~~, ,. I I ." ts " ~ :0 ~ II bl I- ~~. . ~. I ~. . I EXHIBIT C (PHS Property) I I EXHIBIT C I LEGAL DESCRIPTION LOT 4, TRACf MAP NO. 35181 Lot 4 of Tract Map No. 35181, in the City ofTen:ieeula, recorded in Book of Maps, Pages through . inclusive, Records of Riverside County, State ofCaliforma. . . _~ ~1I1l~ . fI =~ \\. : .. It" f1' 6'1>-, -~ - ~ 1, zoo')O- ...... ~.J',JI~Cloe. :II - *~ * Mariasa Crowther, PLS 6152 Date. . ':'>l No. 616~ '9JiOFC^i.\~ This was prepared by me Or under my direc:lion. S.B. & 0., Inc; I I D:165472\surveylPllrtd Map\lA>l4 Leplllmripli...doe I EXHIBIT D (Intentionally Deleted) I I I EXHIBIT E (Western By-Pass) I I I i l'l ~ - 9 I i I' I ~ l I I i II / l I Ii Q il W ~ : 9 I , . ... o oJ ~ ~ U l'll'l 1; 1; u 0 I() o oJ I yroa.m. ::l} oUt::) iIOJ~:V..utn:::r.l m -< . ~~~ ~ ~~t ~ I ~~~~. ~ i So I ~~. ~ ~II~ . ~I~~ aUI. . li~~ II ! ~Ii! . ~~..a ~ ~lll . I . I I. I I I EXHIBIT F (Authorized Land Uses) I I I I I Parcel 1 EXHIBIT "F" ALLOWABLE LAND USES Parcel 2 Parcel 3 Parcel 4 Industrial Industrial 0IIIce RetaO MulU-FamDy Residential Eduqatlon Induslrlal Office Retail Industrial Office I EXHIBIT G (Resolution regarding Development Impact Fee rates) I I II I .; I , , I REIOLunoN NO. 03013 A RESOLU110N OF THE CITY COUNCIL OF THE CITY OF TEMECULA ElTAlLlSIING AND IMPOSING NEW DEVELOPMENT IMPACT FEes AND INCREASING CURRENT DIVELOPIIENT IMPACT FEES EFFECTlVE JULY 20. 2003 PURSUANT TO CHAPTER 1U1 OF THE TEMECULA MUNICIPAL CODE AND RESOwnoN NOS. 170114 AND IAO. WHEREAs, on May %7, 1997, the CIty COIIICI adop/8cl 0rcfJnMce No. 97-09 establishing Chapter 15.08 01 the Tenl8CWI MIIlk:IpaI Code, NIle FaciIIIIes DeveIopmenI ImpaQ Fee ("DIP), which was mocIIIed by Ordlnellce No. 97.14 on Augusl18, 1997, ancI was 'further modIlIed by OrdInance No. 98-05 on Ap11114, 1998; and WHEREAs, on May %7, 1997, Ihe City CouncIl adopted Resolution No. 91-45 which .establlshed the Development Impact Fees. This ResoIullon was restated and modlfled by Resolution No. 98-30 \)/'I ApfiI14, 1998; and WHEREAS, the City Ccu1cII adopted resIdenIIaI DIF as recommended In a Development Impact Fee Study conducted by Davld M. G!iffiIh and AssocIates ('ONG"). and adopted non-realclenllal DIF al 36% of lhe amount recommended by OMG; and WHEREAS. Resolullon 98-30 provides for an automa6e annual .adjuslment of bolh I1lSIdeIIIIaI and II!)IHesJclential OIF based on the percentage /na'ease or decrease. If any, of the . EngIneering News Record BuIlding CoslIncIex ('BCl") for lie Los Angeles MefropoJlIiIn MIl BCltor the twelve mOnth period prior 10 May 1 of Ihe year In which the change wRI be effecllve; and WHEREAS. Exhibit B 10 Resolution 98-30 contains projected fees for seven (1) years with no escaiaUon applied 10 reslden6a1 OIF and an escaIaUon of 10% per year applied 10 non- '. resld9ll1lalOlF untA fees reach 60% of the recommended fee; and WHEREAS. DeveIopmenllmpacl Fees are Iyplc:ally analyzed every three 10 five years 10 :monetarRy quanlIfy the Impacls of d8v!llopment 01'1 cetlaln C8JliIaI facilities; and WHEREAs, In August 2002, the City oonlracted with the f1nn of Maxlmus (fOl'l1lerly ':DMG) to prepare a report provldlng reca/cuIated devaIopment Impact fees based on updated Information on exrsUng and future devalopment and facilUes. NOW, THEREFORE, BE rr RESOLVED by the City Council of the City of TemeCUla as follows: Sect/on 1. The City CouncIl of the City of Temecula does hereby find. detannlne and c:ledare as foIows: A. As detailed In ElchIblls A. raslclenllel Deve!opmenllmpact Fees shaD be adopted as recommended In the Impact Fee Study Report completed by MaxllllUS- dated March 10,2003. R:IResoe 2OO.1IReIoI 0U3 1 ..~ . , '. I 11' B. AI dllt8lied In ExhIIII B. non-reaIdenlJBl Development Impect Filii ahal be phased In over . Ihree-yw period. The IIClI'HlIS/denllal fees would not be Inc:rtaaed (excepI for Itle lIVlual BCI edjuatment) UIIIII Juti 1, 2004 and would phase In 10 100% of the recommended 'IU beginning July 1. 2008. C. AccoRIIng 1o.~1IIon 98-30, both rell!denllal and non-resklenUal deveJopmena /mpacI 'eei wII be eublect 10 In auIam8IIc lIIlIIlIaI adjU8ImenI based on the ~ Incr8ue or decrease, If lIlY. of Ih8 EngIneerfng News Record BuIldIng Coat Index ("Bel") for 1h8!.oe Ange/ea MeI1opoltan MIa BCI for the twelve nionll1 peIfod prtor to Mil)' 1 of Itle y.. In whIcIIlh. ch8nge wII be effecllve.. Th8H annual BCllldjualmenl8 woukl conIInue cbIng the ph.. In of nOIH'8SIdenllIHees. SectIon 2. These cIeYelopment ~ fees wtI be elJecUva July 26, 2003. PASSED, APPROVED _d ADOPJ'ED by the CIty ColIIcII of the City of Temecuta at a l8gular meeUng held on 1118 27'" day of May. 2003. . I' ATTEST: I J. -I I R:IRaos 2J03IResoo 0U3 2 , hlley ."IIIy. ..dOl Ih, pon>lly 01 pOllury ''''' III. Ill". 'nd loft1jCille I, . Iru. ond COll'ct c,py " on 0lIgIntJ DO dope.il wahl. Ill. 'ocOldo ,'11le Oily 01 T.....".. In .nn... who..... I hOY. holllllllo ,el '" h.nd .nd .,lxld Ill. SOIl.' 1ho OllyolT....C1II.lhlsl!o..d.,01 ~"2<l~ Mlcll..,. A. 8011tolch. Dopu1y CIty .1lI bv: U-.::.~.,\. 1\..00.. - L I I!: ) I" I STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ).. CITY OF TEMECULA ) , I. S... W. Jonea. aty CIerfc of the aty of TemeaU. C8Ifo. .1Ia, do tiereby c:erIIfy that ResonIIlon No. 0M3 WIll duly end regu/artf acIoIlted by the CRy CoundI of the CIty of Temecufa at a regular ,",11Ing 1hereof1leld oiIlhe ~ day of May; 2OCl3. by the following volt: AYES:. 4 COUNCUfEMBERS: Comerdlero. NaD9ar;l~oberts. Stone NOES: o. COUNClLMEMBERS: None ABSENT: 0 COUNCllJ.fEMBERS: None ABSTAIN: 1 COUNCILMEMliERS: Prall R:.flesos 20031Res0s IJ3.e3 .3 ) " .. ./ .' . , I ATTACIIIEHrA crrv Of'TIIifcuu DEVILOPIIINT....ACr .... COUPAflI8OH: CUIlRENl' FEU V" tnIDY IWlIMUII AU.OWAIlU PIES I .' iI ...,.,_IIlMw_ CIU!IlIHI' " - ... ",,- " I htrtbJ cetillt. Ilr.:'tr It-a J':;'l..;. -r, t . 's..t~.',,"_L~_""''''''_'''. 7lII!JItQlnfmlllll.UOVI slid '~~Bg oJ,) l'~:' v'ltl..~ .....' . ..........'UllctJllW......lMaCcnralk olin orfglncl (III d'POiU ~"'lIn ihe "SCl'..i:!3 0 lit. cay of Tet:'IOWIa. '" 'lVilllw w:.Ue,.... t ~'1'(, _lOmo HI my bind al1d aIPed till' ani (oi tM . eny .,. Tom,,,,, ':':.J!~,y ,: Ao~;Ll.OI~_. Mthula A. D&~r'~il. i}Gr:ij'1\' CI\; -~-...,J. L . , ~PMlI&'ZtJ2DCI! by:_~~~~.-!.O"__.!: ~~ ~~L 1YMGPu.... - . _. --- .... --- 7IUI .- au -- &01 -- .. .....~I.UMII ..n -- .... --.. 1_ - "If -- eM -- US ......~ ......" "" - -- ... -- IHln ... .... -- "IS -- .... _PIllA....... OM -- - -- 1.01I ... 1.01I -- .... -- .... -- ..00 I ,.. -- ....... I -- - I -- ... t -~ .. -- ... .......,~ t.tlI -- $1".. -- 1.7K14 ... t.OO -- .... -- 0.00 -- .... -- - -- .... - .... -- ... -- .... ......, I a_.... .... -- $'- -- 2&11 ... D.OD -- 0.00 -- 0.00 --.. o.tIl -- ........ -- ..- - Ul .....~J.__.. sa --~_.. tAt --- ... ... ""-- I P1Vhnra.AIt'lStlllRapoll.NewbF~AJlft I I I 1/ "1T~. CllYOP1MCUL;\ 1lIVII.OI'WI"".FIU toYIAR PHAIIiN ICIBUU CwmtourAHNUM.IICIAIWII1IINI8) I i J MIl, "'l, .n. .Jt, -. ~, ..=:'- 1..:'- - .::f- -- =~~. -- . ... . -. .... . .... I .... -- - t... ..... ...... '''' - ur U1 t.(t Ul I." -- III III I.JI UI III -- ,. ,. UI .... U7 .....~1 "IIIIW Ul an t.tI 1M t. ~...... -- I -. tar( . '1lI14 . larf, IlUf -- -- 't_ - - ,- - '--- - a. a. - .. us -- ... ... - ... .... -- fa fa 'q M &II .-- all all ... ut U1 F_ -- . ..... . ... I - I I- I ,- -- IWI ..... .... altAI .... - ... .. All U. .... -- .... a.. Nt ... ... -- III .. &.It .... ut ......r.a.. ~ 'W 001 ... IlI1 .... all -- -- I . I -. .. I .... .... -- . trI. trI.., ....., t....., - . . - .... .... -- . . cur &1:1 ... -- . . .. ... .... .....~ . . . .. ... ... ~~ -- I -, IIUI , Zll.1I ~.! I IItoIl - -- - ....., _17 _17 _17 - al:l all ... ... .. -- .. .... us ... .... -- .. .. us ... a.. -- .. .. ... ... .. ~...- -- . US.. "f,Ila'17 . l,IIU7 I ',,11.71 I ''''m - -- t,7I4M - - -- ...... - . . . . . -- . . . . . -- . . . . . .....,.... . till . . - . . ~.!'-.,.... -- I . . <11.. . ft12 . 472..1 ""12 . br............ -- - .... ... - - - . . . . . -- . . . . . -- . . . . . ........At r till . . . . . - --- 1 -. at.. I ow I .. . - -- ....,. -.. _It _It .11 - . . . . . --. . . . . . -- . . . - . -- . . . . . ~---- -- := . ..... . ..... . ..... . ...... "'_II1IP!lI -- t,1IUI t,lIUI t,1IUI t,t2UI ... - .... UI ut ... .. _r -- ... ut Ul .. 'Ul' ._- tAl tAl &" U7 .., .....fIIlm . till .. fa UI ... 1M -... ~-pot "'-/11I_11II.,____ !...,.,.,I....._.__~ ...... rlllIW....,.. ~GIllIItII... . --__..1&4..""'_1__.... -IICI__""""""II__ ~-~~'ISId""""""DIF~~ L"40PMCl&'2I!.lOO:t ) ., i I EXHIBIT H (Project Processing Schedule) I I I I I PHSlThe Garrett Group/qty of T emecula PROCESSING SCHEDULE. Task Due [)ate #. of da- Gladlnn Plans Resubmitted {3rd revlslor.\- OS/25/2007 .. Gradlnn Plan Convnents to Aoollllllnt 06/0812007 14 days . Bulldino Plans Submitted 0611412007 Bulldlnn Plan COIIImentS to Aliollcant 06128/2007 14 days Bulld~Plans Resubmitted 07/12/2007 14 davs ~uildlon Plan Comments lo-ADDllcant 07/19/2007 7 dalis 30-dav CEQA Notice Due 06101/2007 PC SRlCondltlons .of Alioioval Due 06101/2007 I>lann!no Commil,sion hearlna lall aoollc:ations\ 09/05/2007 Ch cour:JCn hearlna IDA and GPA\ 09/2512007 Precise GmdJnn Permit available for PHS {Parcel 4\' 09/2612007 CItv Counc:lIZW' reading IGPA, DA\ 10/09/2007 IDA Validation ACtion Filina Deadline. . 10114/2007 5 days IDA Validation ActiOn Resolved Deadline 01/1212008 90 days Rulldlnn Permit available for PHS IParcel 4\" . 01/12/2008 Il=lnal.Mao-Recordation 03/07/2008 5 months Red = Applicant Blue = Staff Green = All , Contingent upon mlllgation measures being mel "Contingent upon conditions of approval being mel 08/29/2007 1 I EXHIBIT I (Plan for Remington Road Extension Including Future Access Points) I I - ~ >< ~~l ~ ~~~ i!l I I ~~~~ :u" J I . ~ aul. ~I~~ .~ lil~ ~ I .~ I I ... ~~ .~ ~~~~ 0: I~ Illj h~1 I I f . I I I I '" I J . . I . II I . I EXHIBIT J (Curb Cuts) I I I I' ~ \\ II! : I I ~Ir Ii! S- o ~ ~ ~t_11 I ~~~g ~ I I ~ J ~I~~ I IiI: l~ Ilil I~ ~ I h;d . I I I I -- , I I - -. I . I I I '. I \ ~ \ , I EXHIBIT K (MSHCP) I I m,~ I jk ~ I IlII :!ti !~ ~II~ a~ I I ~~ ~. I ",,,, ui~: s : co'" l!~ ~~ III! I~ I: ~ h~d. I I I I I. 1 ~ I I . I I I EXHIBIT L (Intentionally Deleted) I I I EXHIBIT M (Depiction of Parcel 2 Grading) I I - - , 1"l!J ---- - ~~I / ~~~ " ~i~~ ~ "~ . ~~~~ :Ih I . ~~g~ bbl~ i~<:i~ ~~~~ t lj~~ ~ 11 I ~~:~ ~ r ~!i'~ md~ ~~liJa ~ ~i~1 I ..., " () .... I I ; . 1 1 " , ! ! i : ~ "ti "I 01 ~! : , ! 1 i 1 i I ! \ i : I i i IIi" .fk, _1ll11 .0 , I EXHIBIT N (Depiction of Alternative Access Points and Alignments Cherry Street Right-of Way Section 4.1.10) I I 1'1 ,.\ ., itl ,:. I 1\:\ . ., 1:\:\ 1'1 I !u i .; , ,~I [ I' ,. ,{ 'j"" , ,/ 'j] ~ '" J<l ,)1 /I"~'/f /' :/ ': (J 0': . l 01]) ./ 'r~ ' 'i~''': , 'j t i , . ' ..It": '! 0,1 '\ ~' , ' l' ~ " ;7 ( ~.L-",=,-- J1':/ ~,,~:':::=-'~"",' i 'f/, , , ----=o-~="-J-:--~-":-~~. : '''''''' ~ ...... ",.".~",- I' ,. -, '," If Ii ~ ", ';~-".'~'~~~ '1" ~................... :r!: (') "-;.: ~-..... H -........ I,:' 0 I, .'.. ..J ~, '*~ .. "'Ci, \,,\ ~ ',~\~~ I' "'3, , 'i.,~ \ ...~' \,,\ .~' , o ~! .' ' o .... I " ! ! Ii il :,11: 11 .' 'I ! .1 I' , ' i i I Mol 'Ii'r :1 0 .:: iI . " I :, I i. il IJ rl I. / " i : Q /1 ' 0- f !:iE....g , ~ :1~w~D.: I : q>>:ra::t; ! ~:~;~~ : 10->0 I .....a:a:.... I :cngf5~ : '100:: is : : lj~ !!! . : I:~U~:Z ,': I (f)....2 ! ..,.0.....~ ': p-:~~ " ',O>->X I! : -'lXtWl.&J , ' ., ' @ 9 l5 .J I '" 9 Ii !5 !5 H '''''. '"", "~ . ........-. ,,:... ~ -;.;.-.,.- .~-- ~ -- ~;-ll!it,----':;-- II) 9 I \f1I'03.Sl.;IO.lJ.O iKIl~aA~ ~ JJNl(Y.) " ~~B I<!~S ~ll~ \ij~~ ~tll;'l~ ~~~~ ~~~~ ",..~... "t~ti)G ~ii~~ ~~:~ ..~~i!S ~ tl'" ,,~~~ ~~~~ ~~i:je !;l !iii1;i!;~ ~ ~~~~ ~ -- ..--.-- , ~ .. Il li; ~ I~ I ~!I~' ~~~~ t ~ II I ~ l! . I .1 I I . . I I I I I ! ,- . . I I Dj~ ~n II'" 'I' .. OJ /~~ ,di:;: ..W~ ti.H ~