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HomeMy WebLinkAbout88-18 Approving Development Agreement for Metro Pointe Phases 2 and 3ORDINANCE NO. 88-18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF COSTA MESA AND A&R PARCEL 4 AND R&A PARCEL 5 FOR METRO POINTE PHASES 2 AND 3. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council finds and declares as follows: 1. A public hearing has been held before this City Council pursuant to the procedures described in Council Resolution No. 88-53. At the hearing, the City Council has considered testimony presented by the public and the Planning Commission's recommendation regarding the proposed Development Agreement between the City of Costa Mesa and A&R Parcel 4, a California Limited Partnership, and R&A Parcel 5, a General Partnership. 2. The Development Agreement between the City of Costa Mesa and A&R Parcel 4 and R&A Parcel 5 is: (a) Consistent with the objectives, policies, general land uses and programs specified in the General Plan and with the General Plan as a whole; (b) Compatible with the uses authorized in, and the regulations prescribed for, the zoning district in 1 which the real property is and will be located; and (c) Is in conformity with and will promote public convenience, general welfare and good land use practice. 3. The Development Agreement between the City of Costa Mesa and A&R Parcel 4 and R&A Parcel 5 will not: (a) Be detrimental to the health, safety and general welfare; and (b) Adversely affect the orderly development of property or the preservation of property values. 4. The Development Agreement between the City of Costa Mesa and A&R Parcel 4 and R&A Parcel 5 will promote and encourage the development of the proposed project, and will ensure the public benefits promised in the Development Agreement, by providing stability and certainty to the developer. 5. EIR 1020 was prepared for the project and was certified on August 20, 1984; in accordance with Section 15162(a) of the CEQA Guidelines, no additional EIR need be prepared for the following reasons: there are no changes in the project or in the circumstances under which the project is to be undertaken which will require important revisions to EIR 1020; and the Metro Pointe Phase 2 and 2 Phase 3 Initial Studies and Traffic Analyses, prepared in connection with General Plan Amendment GP -82-3A and Final Development Plans PA -88-03 and PA -88-72, have shown that there is no new information of substantial importance that was not known and could not have been known at the time the EIR was certified. SECTION 2. The City Council hereby approves, adopts and enters into the Development Agreement in the form attached hereto and incorporates the Agreement herein by this reference. Upon execution of the Development Agreement by all parties, the City Clerk is directed to record the Development Agreement pursuant to City of Costa Mesa Development Agreement Procedures and Requirements. SECTION 3. This Ordinance shall take effect and be in full force thirty (30) days from and after the passage thereof, and prior to the expiration of fifteen (15) days from its passage shall be published once in the ORANGE COAST DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa or, in the alternative, the City Clerk may cause to be published a summary.of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and within fifteen (15) days after adoption, the City 3 Clerk shall cause to be published the aforementioned summary and shall post in the office of the City Clerk a certified copy of this Ordinance together with the names of the members of the City Council voting for and against the same. PASSED AND ADOPTED this 7th day of November, 1988. ATTEST: G-1 City Clerk of the City of Costa Mesa APPROVED AS TO FORM: City A orney 4 May of the City of Costa Mesa STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and ,foregoing Ordinance No. 88-18 was introduced and considered section by section at a special and adjourned regular meeting of said City Council held on the 31st day of October, 1988, and thereafter passed and adopted as a whole at a regular meeting of said City Council held on the 7th day of November, 1988, by the following roll call vote: AYES: COUNCIL MEMBERS: /� �/ A� 1 4UJU-d%7 NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: 17 x� IN WITNESS WHEREOF, I have hereunto set my hand and affixed he Seal of the City of Costa Mesa this day of 1988. -, City Clerk and ex -officio Cler of the City Council of the Ci of Costa Mesa 5 Recording Requested by: y(LTIM1 Eileen P. Phinney, City Clerk City of Costa Mesa P. O. Box 1200 Costa Mesa, California 92628-1200 and when recorded, please return to City Clerk Eileen P. Phinney EXEMF C18 OFORANGE COUNTY. CAUFOORRNIA :0SEC - 81988 '!:; . Q. vj'w'z moo" ER Space Above This Line For Recorders Use MRO POINTE DEVELOPMENT AGREEMENT 88-639006 TABLE OF CONTENTS METRO POINTE DEVELOPMENT AGREEMENT Page I. RECITALS OF PREMISES, PURPOSE, AND INTENT........... 1 1.01 The Property .................................. 1 1.02 Description of the Project .................... 2 1.03 Public Objectives Served by the Agreement..... 3 1.03(a) Intent of the Parties ................ 3 1.03(b) Comprehensive Planning Objectives.... 4 1.03(c) Public Benefits in Return for Assurance of Completion.. ..... o ...... 4 1.04 Objectives of Owner ........................... 5 1.04(a) Risks and Uncertainties that Would Deter or Prevent Commitment'to the Project Absent this Agreement........ 5 1.04(b) Assurances that Would Remove Disincentives to Carry Out the Project ............................. 6 1.05 Reasonable Assurances of Completion........... 6 1.06 Enabling Statute .............................. 7 1.07 City Procedures ................................ 7 1.08 Planning Commission/City Council Hearings... o ....... o ........ o ................. 7 1.09 Environmental Review.... ...................... 8 II. AGREEMENT AND ASSURANCES ............................ 9 2.01 Agreement and Assurances on the Part of Owner.... o ....... 9 2.01(a) Completion of the Project........... 9 88-639006 2.01(b) Public Benefits ..................... 10 2.02 Agreement and Assurances on the Part of City.. 10 2.02(a) Entitlement to Development.......... 11 2.02(b) Subsequent Review ................... 11 2.02(c) Justifiable Reliance ................ 12 2.02(d) Finding of Consistency With Laws in Force... o ............... o .... 12 2.02(e) Integrated Project .................. 13 2.03 Regulations Governing The Development of the Project ................................... 13 2.03(a) Governing Policies... ... .... 13 (i) Permitted uses... ............. 13 (ii) Density and Intensity......... 13 (iii) Maximum Height and Size of Buildings..................... 13 (iv) Increase in Intensity or Other Substantial Change...... 14 (v) Density, Intensity, Height and Size Decreases............ 14 (vi) Timing of Development......... 15 (vii) Reservations and Dedication :of Lands for Public Purposes.. 15 (viii) Moratoria, Phasing of Development. ... o .............. 15 (ix) Development Exactions......... 16 2.03(b) Regulation of Development....:....... 17 (i) In General., ......... 17 Vested Right., ... o ............ 17 2.03(c) Limitations, Reservations and Exceptions ........................... 18 88-6390% (i) Future Regulations............ 18 (ii) State and Federal Laws and Regulations ..... ........ ..:... 18 (iii) Public Health and Safety...... 19 (iv) Building Improvement Standards. 20 (v) Full Extent of Law............ 20 III. GENERAL PROVISION .................................. 20 3.01 Effective Date of Agreement .................. 21 3.02 Duration of Agreement ........................ 21 3.03 Implementation ............................... 21 3.04 Single Agreement ............................. 21 3.05 Periodic Review .............................. 21 3.06 Relationship of Parties ...................... 23 3.07 Hold Harmless., ........ o..o .................. 23 3.08. Notices., .... o .... o ........ o ............. o ... 24 3.09 Severability ................................. 24 3.10 Time of Essence.............. ............... 25 3.11 Modification ................................. 25 3.12 Waiver.....-, ... ...... 6 ... 26 3.13 Successors and Assigns......... .............. 26 EXHIBITS • 88=639006 METRO POINTE DEVELOPMENT AGREEMENT THIS AGREEMENT is executed this 3 O -i-h day of NO V C w1, 19819, by and between the CITY OF COSTA MESA, ("City"), and A & R PARCEL FOUR, a California limited partnership, and R & A, PARCEL FIVE, a general partnership (hereinafter referred to as "Owner"). Unless otherwise indicated herein, all exhibits and attachments referred to are incorporated by reference into the Agreement. I. RECITALS OF PREMISES, PURPOSE, AND INTENT. 1.01 The Property. Owner has a legal interest in certain real property which is comprised of approximately 22.15 undeveloped acres (the "Property") in a triangular area bounded by the San Diego Freeway (I-405), South Coast Drive, and Bear Street, in the City of Costa Mesa, County of Orange, State of California, more particularly described as follows: South Westerly portion of the 900 block of South Coast Drive, City of Costa Mesa, County of Orange, State of California - Parcel No's 4 and 5 of Parcel Map 84-389, as shown on the Location Map which is attached hereto as Exhibit "A" and by this reference incorporated herein and more particularly shown on the Phase 2 Site Map and Phase 3 Site Map which are attached hereto as Exhibits "A-1" and "A-211, respectively, and by this reference incorporated herein. 11/2/88 88-639006 t 1.02 Description of the Project. , Owner seeks to develop the Property as a planned commercial development in accordance with the development approvals previously approved or granted by City in connection with the development of the Property, ("Development Approvals") as more particularly described in Exhibit "B" attached hereto and by this reference incorporated herein, which are consistent with the City's General Plan (the "General Plan"). Pursuant to General Plan Amendment GP -82-3A Revised ("GP -82-3A") the development of a master planned project was approved in seven phases which have been combined as follows: The initial phase of the development of the master planned project ("Phase 111), which has been completed, encompassed phase I as described in GP - 82 -3A; additional phases of the development of the master planned project which are the subject of this Agreement consist of (i) a second phase of development of the Master Planned project ("Phase 211), which will encompass phases VI and a portion of VII as described in GP -82-3A, and (ii) a third phase of the development of the Property ("Phase 311), which will encompass phases II, III, V and a portion of VII as described in GP -82-3A. "Phase 2" and "Phase 3" constitute the "Project." A future phase ("Phase 411), not a part of this Project, will encompass phase IV as described in GP -82- 3A and may include a 500 room hotel and approximately 120,000 square feet of commercial uses; Phase 4 is not a subject of this Development Agreement. The major components of Phase 2 -2- 88-639006 are set forth in Exhibit "C" attached hereto and by this reference incorporated herein. The major components of Phase 3 are set forth in 'Exhibit "D" attached hereto and by this reference incorporated herein. 1.03 Public Objectives Served by the Agreement. In accordance with the legislative findings set forth in Government Code Section 65864, City wishes to attain certain public objectives that will be furthered by this Agreement. These objectives are set forth in subsections 1.03(a), 1.03(b) and 1.03(c) below. 1.03(a) Intent of the' -Parties. The Parties desire to enter into this Agreement in conformity with the applicable provisions of the Government Code, the Costa Mesa Municipal Code and City policies, rules and regulations to achieve the development of commercial land uses permitted under Exhibit "C" and Exhibit "D" hereto and to provide for public services, public uses, and urban infrastructure pursuant to Section 1.03(b) hereof and Exhibit "E" hereto, all in the promotion of the public health, safety, and general welfare of -the City of Costa Mesa. It is the intent of the parties that on execution of this Agreement, Owner will be bound to provide the public benefits referred to in Section 2.01(b) hereof and more particularly described in Exhibit "E" hereto and that Owner shall have the right to complete -the Project described in Section 1.02 hereof. -3- 88-639005 1.03(b) -Comprehensive Planning Objectives. City wishes to facilitate the implementation of the General Plan of the City of Costa Mesa. The completion of the Project, a major development within the City, will provide a long term sourcez of employment service opportunities for the residents of the City in furtherance of the comprehensive planning objectives contained within the General Plan including the following objectives: (1) Objective IV -A: Establish and maintain a balance of land uses; (2) Objective VI -E: Ensure integration of utility system considerations into land use planning and development processes; (3) Objective VI -C:. Ensure the long-term productivity and viability of the community's economic base. 1.03(c) Public Benefits in Return for Assurance of Completion. The means of attaining the aforementioned ob- jectives and the public benefits (See Exhibit "E" attached hereto and by this reference incorporated herein) to be received as a result of the development of the Project through this Agreement include the following,_among others: (1) Development of a major business center within the City. of Costa Mesa pro- viding a long-term source of employment opportunities; -4- 88-639006 (2) Development of a quality project which will enhance the image and stature of the City of Costa Mesa. (3) Owner's participation in a housing plan described in Exhibit "Elf. (4) Owner's participation in a fire station described in Exhibit "E". (5) Owner's participation in the provision of a traffic improvement program described in Exhibit 11E.11 1.04 Objectives of Owner 1.04(a) Risks and Uncertainties that Would Deter or Prevent Commitment to the Project Absent this Agreement. The following are some of the development risks and uncertainties that would, in the absence of this Agreement, deter and discourage Owner from making a long-term commitment to the implementation of the Project: The costs of the public benefits to be provided by Owner, directly or indirectly, might be incurred in advance of the completion of the private income-producing components of the Project which would provide the economic return required to justify and offset the total dollar investment in providing those public benefits. That investment would be at risk in that, absent this Agreement, the Owner would have no assurance that the private income-producing components could ever -be built. -5- 88-639006, 1.04(b) Assurances that Would Remove Disincentives to Carry Out the Project. . Assurances are required to offset or remove thedisincentives to the completion of the Project created by the potential risk possibilities cited in Section 1.04(a) above. These assurances include assurances regarding the ordinances, regulations and rules that will be applicable to the development of the Property, including, but not limited tothose relating to timing, density and intensity of development and development exactions that will justify the undertakings and commitments of Owner. 1.05 Reasonable Assurances of Completion. The entire Project has been designed to be carried out in an environmentally responsible manner with the provision of major public benefits, including those set forth in Section 1.03 above. Development of the Project shall be in accordance with the Development Approvals, land -use ordinances, resolutions, policies and regulations adopted by the City Council of the City and the Planning Commission of the City which govern the permitted uses of land, the density and intensity of use, the design, improvement and construction standards (other than Uniform Codes) applicable to the development of the Project and requirements for dedication •of property or payment of fees and exactions (hereinafter „Land Use Regulations") in effect on the date of execution of this Agreement (hereinafter "Existing Land Use Regulations"). The development of the Project will also -6- provide the public benefits at an, earlier stage in the development of the Project than could otherwise be required under Existing Land Use Regulations. 1.06 Enabling Statute. Government Code Sections 65864 et seq. authorize and provide that a Development Agreement is a means by which to obtain such assurance of completion as summarized in Section 1.05 above. 1.07 City Procedures. Pursuant to the authorization set forth in California Government Code Sections" '65864 et seq., City adopted Resolution No. 88-53 on July 19, 1988, establishing procedures and requirements for consideration of Development Agreements. In accordance with such rules and regulations, City has undertaken the necessary proceedings, has found and determined that this Agreement is consistent with the intent of the City of Costa Mesa General Plan and with the Development Approvals, and has adopted Ordinance No. 88-18 approving this Agreement which ordinance becomes effective on December 8, 1988. All conditions of the Development Approvals shall remain in effect except to the extent modified by Exhibit "E" hereto. - 1.08 Planning Commission/City Council Hearings. On September 26, 1988, the Planning Commission of the City of Costa Mesa, after giving due notice pursuant to Government Code Sections 65854, 65854.5 and. 65856, held a public hearing on Owner's application for approval of this -7- 88-639006 Agreement. On October 31, 1988, the City Council of the City of Costa Mesa, after providing public notice as required by law, also held a public hearing to consider Owner's application for this Agreement. 1.09 Environmental Review. In preparing and adopting this Agreement, the General Plan Amendment GP -82-3A, Zoning Ordinance Amendment 84-36, Parcel Map No. S-84-389, Final Development Plan Phase 1 which was approved as Zone Exception Permit ZE-84-187 and Zone Exception Permit ZE-84-193, Final Development Plan PA -88-03 (Phase 2), Final Development Plan PA -88-72 (Phase 3), Vesting Tentative Map No. 13452 and Vesting Tentative Map No. 13470, City considered the health, safety and welfare of existing and future residents and populations of the City and prepared in this regard Environmental Impact Report 1020, certified on August 20, 1984, as well as extensive traffic impact reports including Metro Pointe Phase 2 Traffic Analysis, Metro Pointe Phase 3 Traffic Analysis and other studies. The City Council has found that Environmental Impact Report No. 1020 and Metro Point Phase 2 and Phase 3 Traffic Analyses prepared in connection with General Plan Amendment GP -82-3A and Final Development Plans PA -88-03 (Phase 2) and PA -88-72 (Phase 3) constitute adequate environmental documentation for the Project and for this Agreement based on the following: (1) the Project incorporates mitigation measures identified in the EIR and Traffic Analyses, and (2) the Initial Studies for the Phase 2 and Phase 3 Final Development Plans disclosed no -8- i substantial changes in the Project or the circumstances under which it will be undertaken and no new information of substantial importance to the Project has become available. After making appropriate findings, the City Council .adopted Resolutions Nos. 88-13 and 88-65, certifying the environ- mental Initial Studies for the Project in compliance with CEQA, on February 18, 1988, and August 15, 1988, respectively. II. AGREEMENT AND ASSURANCES 2.01 Agreement and Assurances on the Part of Owner. In consideration of the premises, purposes, and inten- tions set forth in Section I (Sections 1.01 -1.06) -above, and in consideration of the assurances for completion of. the Project pursuant to the terms and conditions of City assur- ances set forth in Section 2.02 below, Owner, in entering into this Development Agreement, hereby agrees and acknowl- edges that: 2.01(a) Completion of the Project. Owner, in accordance with its sound business judgment, agrees to carry out the Project as described in the Development Approvals in accordance with the Regulations Governing the Development of the Project as set forth in Section 1.02, including, all major components of Phase 2 as described in Exhibit "C" and all major components of Phase 3 as described in Exhibit ''D", provided, however, that in the sole discretion of Owner the densities and intensities of uses and heights and sizes of .buildings may be less than the -9- 88-639006 maximums specified in this Agreement as set forth in Section 2.03(a)(v). Building locations may not be substantially changed without prior approval of the Development Services Director. Owner represents that it intends to pursue development of the Project in accordance with this Agreement with reasonable diligence as it deems appropriate in its sound business judgment, in light of market conditions, and agrees that it shall not unreasonably delay pursuing such development of the Project. 2.01(b) Public Benefits. The public benefits to be provided by Owner are as set forth in Exhibit "E." Owner agrees to provide all such public benefits and to exercise due diligence to complete, in a timely manner, all things necessary on its part to provide those benefits. This promise by Owner constitutes the chief consideration for City's entering into this Development Agreement with Owner. 2.02 Agreement and Assurances on the Part of City. In order to -effectuate the premises, purposes and intentions set forth in Section I (Sections 1.01-1.06) above, and as an inducement for Owner to obligate itself to carry out the covenants and conditions set forth in the preceding Section 2.01 of this Agreement, City hereby agrees that Owner will be permitted to carry out and complete the entire Project, as specifically described and set forth in subsection 1.021 -,in accordance with the Regulations Governing the Development of the Project as set forth in Section 2.03, -10- 88-639006 while this Agreement is in effect. In furtherance of such agreement and assurance, and pursuant to the authority and provisions set forth in California Government Code Sections 65864 et seq., City, in entering into this Development Agreement, hereby agrees and acknowledges as follows: 2.02(a) Entitlement to Develop. City agrees that the Owner has the right, while this Agreement is in effect, to develop all phases of the Project as set forth and described in Section 1.02 and the Development Approvals in accordance with the Regulations Governing the Development ..and finds the Project consistent with the City of Costa Mesa General Plan and the applicable Existing Land Use Regulations. With respect to Government Code Section 65865.2, and as more fully set forth in Section 2.03, the development regulations governing subsequent discretionary actions are: (1) The Development Approvals, and (2) The Existing Land Use Regulations. As provided in Government Code Section. 65865.2, any subse- quent discretionary actions by City or any conditions, terms, restrictions and requirements for such discretionary actions by City, shall not prevent development of the Project for the uses and to the maximum density or intensity of develop- ment set forth in this Agreement and the existing development approvals and land use regulations. 2.02(b) Subsequent Review. -11- 88-639006 All subsequent review of development of the Project shall be subject to the terms and conditions of this Agreement and the provisions of Government Code Sections 65865.4 and 65866. As provided in Government Code Section 65866, the rules, regulations, and official policies govern- ing permitted uses of the land, density, design, improvement, and construction applicable to development of the Project shall be those rules, regulations, and official policies in force as of the date of execution of this Agreement, except as specifically set forth in Section 2.03. 2.02(c) Justifiable Reliance. City acknowledges that, in investing money and planning effort in and to the Project, in contributing the public benefits hereunder, and in undertaking completion of the Project, Owner will be doing so in reliance upon City's covenants contained in this Agreement and upon the enforceability of this Agreement, and City agrees that Owner may and will be reasonably and justifiably relying upon City's covenants contained in this Development Agreement and the enforceability hereof in so doing. 2.02(d) Finding of Consistency with Laws in Force. The City Council of City has found, based upon all information made available to the City prior to or concurrently with the execution of this Agreement, that the Agreement is consistent with the General Plan of City and all other applicable plans, rules, regulations,- policies and ordinances of City. -12- 88-539006 2.02(e) Integrated Project. City acknowledges by executing this Agreement -for the Project as a whole, that the Project is and shall be considered a single, integrated development project, and that each phase of the Project is dependent upon the completion and occupancy of the other phase, and that the viability of each phase of the Project is and shall be dependent upon the completion and occupancy of the other phase and the full performance of this Agreement. 2.03 Regulations Governing The Development of the Project 2.03(a) Governing Policies The following policies set forth in this Section 2.03(a) are consistent with and/or are provided for in the General Plan of the City, the Existing Land Use Regulations, and the Development Approvals:. (i) Permitted Uses. The uses permitted hereunder in accordance with the Existing Land Use Ordinances are as set forth in the Development Approvals and include, without. limitation, commercial uses including conventional retail uses, business, professional and administrative offices, restaurant uses and parking structures. (ii) Density and Intensity. The density and intensity of the commercial uses shall be as set forth in Exhibit "C" and Exhibit "D." Maximum Height and Size of Buildings. -13- 88-639006. The maximum height of commercial, office or other non-residential buildings within the Project is as set forth in Exhibit "C" and Exhibit "D". The maximum size of any such building shall be as set forth in Exhibit "C" and Exhibit "D". The maximum height of any parking structure within the Project as set forth in Exhibit and Exhibit "D". The -maximum size of any such parking structure is as set forth in Exhibit C and Exhibit D. (iv) Increase in Intensity or Other Substantial Change. Any application by Owner for an increase in. the intensity of the Project, as compared with what has been approved as of the time this ..Agreement is executed,, or for any substantial change in the Project other than a decrease as provided for in paragraph 2.03(a)(v) shall be reviewed under and shall be subject to the laws, policies and regulations then in force, regardless of whether or not such laws, policies and regulations are consistent with the terms of this Agreement. (v) Density, Intensity, Height and Size Decreases. The densities and intensities of uses and the heights and sizes of buildings specified in this Agreement are intended by City and Owner.to be maximums and nothing herein shall be construed as a covenant or promise by Owner to construct the major components of Phase 2 or Phase 3 to their maximum permitted densities, intensities, heights, and/or sizes. City and Owner -14- 88-639006 agree that Owner in its sole discretion may proceed with development of the Project at densities, intensities, heights and sizes which are less than the maximum provided for under this Agreement. (vi) Timing of Development. The parties acknowledge that the most efficient and economic development of the Project depends upon numerous factors such as market orientation and demand, - interest rates, competition and similar factors and that generally it will be most economically beneficial to the ultimate purchasers to have the rate of development determined by Owner. Accordingly, the timing, sequencing and phasing of Development shall be as determined by Owner in its sole subjective business judgment and discretion except that the rate of development shall be in accordance with the Existing Land Use Regulations and the other terms and conditions of this Agreement, subject to the Reservations of Authority provided in Section 2.03(c). (vii) Reservations and Dedication of Lands For Public Purposes. In accordance with the Development Approvals Owner has undertaken to dedicate certain lands and construct and convey to the public certain public facilities. (viii) Moratoria; Phasing of Development. The parties acknowledge and agree that the Governing Policies set forth in this Section 2.03 -is- 88-639006 provide for the phasing of the Development of the Project and that except as expressly provided in this Section 2.03, no moratorium, ordinance, resolution, or other land use regulation or limitation on the conditioning, rate, timing or sequencing of the development. of the Project or any portion thereof shall apply to or govern the development of the Project during the term hereof whether affecting parcel or subdivision maps (whether tentative, vesting tentative, or final), building permits, occupancy permits or other entitlements to use issued or granted by City. (ix) Development Exactions. In addition to and not in limitation of the foregoing, or the provisions of Section 2.03, except and subject to the Reservations of Authority, City shall not levy or require: (a) any further development exactions except those provided for in Section 2.03(c) or which are provided for or required by the Existing Land Use Regulations (including, but not limited to the existing General Plan and the Development Approvals), which include, but are not limited to, development exactions which may be required by City in accordance with its current subdivision standards and policies (including, without limitation, as to the amount, and method of payment), excluding processing and permit -fees; or -16- (b) any further traffic -related development exactions. This shall not preclude the formation of a Mello -Roos Community Facilities District or other benefit assessment district. In addition, this Agreement does not apply to any exaction that is levied by any other public agency, utility, district or joint powers authority, including but not limited to the San Joaquin Hills Transportation Corridor Agency, Newport -Mesa Unified School District, Costa Mesa Sanitary District, and Mesa Consolidated:Water District. 2.03(b) Regulation of Development. (i) In General. Notwithstanding any future action of City, whether by ordinance, resolution, initiative or otherwise, during the term of this Agreement, the rules, regulations and official policies applicable to and governing the Development of the Project shall be the Existing Land Use Regulations together with amendments and additions adopted pursuant to the Reservations of Authority of City provided in Section.2.03(c). (ii) Vested Right. In developing the Project, Owner is provided and assured the vested right to require that the Land Use Regulations of City applicable to and governing the -17- 88-639006 ,Development of,the Project during the term hereof shall be as provided in this Section 2.03(b). 2.03(c) Limitations, Reservations and Exceptions. Notwithstanding anything to the contrary set forth in Section 2.03(a) or 2.03(b) hereinabove, in addition to the Existing. Land Use Regulations, only the following land use regulations adopted by City hereafter shall apply to and govern the Development of the Project ("Reservations of Authority"): (i) Future Regulations. Future City land use regulations which are not in conflict with the Governing Policies or which, are in conflict with the Governing Policies and the application of which to the development of the Project has been consented to in writing by Owner; (ii) State and Federal Laws and Regulations. Existing and future State and Federal laws and regulations, together with any City Land Use Regulations, programs and actions, or inaction, which are reasonably (taking into consideration, among other -things, the assurances provided to Owner hereunder) adopted or undertaken by City in order to comply with State and Federal laws and regulations; provided, that in the event that State or Federal laws and regulations prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or -is- 88-639006 suspended as may be necessary to comply with such State and Federal. laws and regulations, in which event this Agreement shall remain in full force and effect to the extent that it is not inconsistent with such laws and regulations and that performance of the remaining provisions would not be inconsistent with the intent and purposes of this Agreement; (iii) Public Health and Safety. Land Use Regulations which are adopted by City, which may be in.conflict with the Governing Policies and the application of which to the Development of the Project is reasonably necessary, in order to protect the public health and safety taking into consideration: (a) .the importance of the public interest that the regulation is intended to protect; the extent to which such regulation substantially impairs the rights of Owner under Section 2.03(a) and 2.03(b) and is (i) to be unreasonably borne only by Owner and ,the Project rather than being borne by other lands and interests, or (ii) unreasonable taking into consideration other reasonable, and practicable alternatives; and (b) whether the concerns which are the subject of proposed Land Use Regulation were considered and/or provided for in the adoption of the Existing Land Use Regulations. -19- 88-639006 The burden of proof that a Land Use Regulation adopted pursuant to this Section 2.03(c)(iii) is reasonable as applied to the Project shall be on City. The greater the severity of such Land Use Regulation's adverse impact on Owner, the greater the showing required of City that the' concerns addressed are legitimate and that such Land Use Regulation is reasonable; (iv). Building and Improvement Standards. Present and future Building and Improvement Standards, except that (taking into consideration the assurances to Owner in this Section 2.03) any future amendment thereto which significantly reduces the amount of land within the Project which can be utilized for structures and improvements or significantly increases the amount of open space within the Project under the Development Approvals shall not be considered a provision of any of the Building and Improvement Standards included within the exception provided by this Paragraph.2.03(c)(iv) and shall not apply to and govern the development of the Project unless it complies with another exception under this Section 2.03(c); and, (v) Full Extent of Law. The parties acknowledge and agree that City is restricted in its authority to limit its police power by contract -,and that the foregoing, limitations, reservations and exceptions are intended to reserve to -20- 88-639006 City all of its police power which cannot be so limited. Notwithstanding the foregoing, this Agreement shall be construed, contrary to its stated terms if necessary, to reserve to City all such power and authority which cannot be restricted by contract. III. GENERAL PROVISION. 3.01 Effective Date of Agreement. This agreement shall be effective after its execution by a duly authorized representative of both parties and the recording of this Agreement pursuant to Government Code Section 65868.5. 3.02 Duration of Agreement. This Agreement shall remain in effect for a term of twenty (20) years, unless otherwise extended by the parties, subject to earlier termination upon the completion, performance and discharge of all obligations hereunder. 3.03 Implementation. The Owner represents that it intends to pursue develop- ment of the major components of the Project with reasonable diligence as it deems appropriate in its sound business judgment, in light of market conditions, and other similar factors influencing a business decision to commence development. 3.04 Single Agreement. -21- 86-639006 - City and Owner agree there shall be no more than one Development Agreement covering Property in effect at the same time. 3.05 Periodic Review. City and Owner shall review the parties' respective performance of this Agreement as provided for in Government Code Section 65865.1, the City's Development Agreement Procedures and Requirements and as further provided in this section as follows: The City's Planning Commission shall review the Agreement at least every twelve (12) months from the date the Agreement is entered into until expiration of the term of the Agreement. The City's Director of Development Services shall give Owner at least thirty (30) days advance notice of the time at which the Planning Commission will review the Agreement. The Planning Commission shall hold a public hearing and shall make a report and recommendation to the City Council of Owner's demonstration of good faith compliance with the terms of the Agreement. If, as a result of such periodic review, the Planning Commission finds and determines, on the basis of substantial evidence, that Owner has not complied in good faith with the terms or conditions of the Agreement, the Planning Commission may recommend to the City Council commencement of proceedings to enforce, modify, or terminate the Agreement. After the Planning .Commission has made its recommendation, a public hearing shall be set before the City Council. If the City Council finds and determines on the -22- 88-639006 basis of substantial evidence that Owner has complied in good faith with the terms and conditions of the Agreement during the period under review, the review for that period is concluded. -If the City Council finds and determines on the basis of substantial evidence that Owner has not complied in good faith with the terms and conditions of the Agreement during the period under review, the City Council may modify or terminate the Agreement, as set forth in the City's Development Agreement Procedures and Requirements. 3.06 Relationship of Parties. It is understood that the contractual relationship between the parties created hereunder is that Owner is an independent contractor and not an agent of the City. 3.07 Hold Harmless. In the event any person not a party to this Agreement shall institute an action against the City concerning the validity, interpretation, or enforceability of this Agreement, City may, at its sole option; elect to tender the defense of such action to Owner. In that event Owner shall accept such a tender and shall protect, defend, indemnify, and hold City harmless from any and all claims, actions, suits, liabilities and judgments, including all defense and investigation expenses and attorneys' fees, incurred in the defense. of such matter. In the event of any substantial conflict of interest between Owner and City, City shall be entitled to separate and independent legal counsel acceptable -23- OB -639006 both to Owner and City, and Owner shall pay and bear the cost of such separate legal counsel. City agrees that it shall fully cooperate with Owner in the defense of such matter and shall take all reasonable steps necessary to assist Owner in defending such action. In the event City elects not to tender the defense of such matter to Owner, City shall bear its own costs and expenses incurred in the defense of such matter. 3.08 Notices. All notice under this Agreement shall be given to the following representatives of the parties at the addresses indicated below: If to City: City of Costa Mesa 77 Fair Drive Post Office Box 1200 Costa Mesa, CA 92628-1200 Attn: City Manager If to Owner: A & R PARCEL 4, R & A PARCEL 5 c/o Arnel Development 950 South Coast Drive Costa Mesa, CA 92626 Attn: President of Arnel Either party may change its address by giving notice in writing to the other party. 3.09 Severability. If any provision of this Agreement should be determined by a court to be invalid or unenforceable, or if any provision of this Agreement is superseded or rendered unenforceable according to the terms of any law which becomes effective after the date of this Agreement, either party to -24- 88-639005 the Agreement may elect to declare subject to this Section that, the Agreement shall become null and void as to all obligations then remaining unperformed and the Agreement shall be terminated, unless extended by the parties by mutual consent. If either party so elects to declare a termination of the Agreement, the other party -may contest the election and declaration in an appropriate court of law within thirty (30) days of receiving a "Notice of Termination" from the party electing termination. If no action is filed within the thirty (30) day time period, the Agreement shall be deemed terminated ,as of that date.,, In the event that a "Notice of Termination" is contested through judicial review, the burden of proof shall be on the party alleging termination to demonstrate that the provision of the Agreement previously determined to be invalid or unenforceable materially affects the consideration for the entire Agreement as set forth in the Agreement. The above provisions are subject to meeting the notice requirements of Government Code Section 65868. 3.10 Time of Essence. Time is of the essence for each provision of this Agree- ment of which time is an element. 3.11 Modification. Except as otherwise provided in Section 3.05, no modification, amendment, cancellation or other change in this Agreement or any..provisions hereof shall be effective for any purpose unless specifically set forth in a writing signed by -25- 88-639006. duly authorized representatives of both parties and referring expressly to this Section. This Agreement may be amended, cancelled or modified in whole or in part in the manner set forth in Government Code Sections 65867, 658,67.5 and 65868 and City's Development Agreement Procedures and Requirements. 3.12 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought and referring expressly to this Section. No waiver of any right or remedy in respect of any occurrence or event shall be deemed a waiver of any right or remedy in respect of any other occurrence or event. 3.13 Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Upon written notification to City thirty (30) days in advance of assignment, Owner may assign this Agreement in whole or in part to any Iperson, partner, joint venture or other entity ("Assignee") that agrees to be bound hereby, provided said- Assignee provides to City certification from a financial institution or a certified public accountant that Assignee has a market value net worth of a minimum of Fifteen Million Dollars ($15,000,000.00). Any successor in interest to City shall be. subject to the -26- 88-639006 provisions set forth in Government Code Sections 65865.4 and 65868.5. IN WITNESS WHEREOF, the parties have each executed this Agreement on the date first above written. CITY TA ME A By. , OF THE CITY OF 88-639006 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) On this 5th day of December, 1988, before me, Florine T. Reichle, Notary Public in and for the County of Orange, State of California, personally appeared Donn Hall, Mayor of the City of Costa Mesa, a public agency, and Eileen P. Phinney, City Clerk of the City of Costa Mesa, a public agency, and known to me to be the persons who executed the within instrument on behalf of said public agency and acknowledged to me that the public agency executed same. WITNESS my hand and official seal. OFFICIAL SEAL FLORINE T. REICHLE ' V. -. NOTARY PUBLIC CALIFURNIA; Notary Public In and for PRINCIPAL OFFICE IN t ■ ORANGE C:OUNrY ■ said County and State My Commisslom Expires !uy 17.1992 a ry i ker Sec -r ary R & A, \PMCP3T-\JIVE, a cLeneral By: 9�NU. Argyros General Partn is Ge ral Partner 88-539006 STATE OF CALIFORNIA ss. COUNTY OF On the a�L odaY of ,�ai�i,?8�2." , 1988, before me, the undersigned, a NotaryPublic, in and for said State and County, personally appeared GEORGE L. ARGYROS, personally known to me (or proved to me on the basis of satisfactory evidence) to be the President of AMER, INC., a California corporation, known to me to be the person who executed the within instrument on behalf of said corporation, said corporation being known to me to be the general partner of A & R PARCEL FOUR, a California limited partnership, and acknowledged to me that said corporation executed the same as such partner pursuant to its bylaws or a resolution of its board of directors and that such limited partnership executed the same. WITNESS my hand and official seal. OFFICIAL SEAL BE J. FAZEKAS NODkRYY PUBLIC CALIFORNIA ORANGE COUNTY MY CaaMWm Expires OCL 23,1992 STATE OF CALIFORNIA ) ss. COUNTY OF Notary XiblicT On the y6�0day of zro�/x r3e'e , 1988, before me, the undersigned, a Notary Public, in an�Ic�for said State and County, personally appeared HARRY S. RINKER, personally known to me (or proved to me on the basis of satisfactory evidence) to be the Secretary of ARKER, INC., a California corporation, known to me to be the person who executed the within instrument on behalf of said corporation, said corporation being known to me to be the general partner of A & R PARCEL FOUR, a California limited partnership, and acknowledged to me that said corporation executed the same as such partner pursuant to its by]�Aws or a resolution of its board of directors and that such limited partnership executed the same. WITNESS my hand and official seal. -------------------- OFFICIAL SEAL EM eErm I mAKAC JEERM NOTARY PUBLIC - CALIFORNIA ORANGE COUNTY My Commission Expires OCL 23,1992 M / I 88-639006 STATE OF CALIFORNIA ) ).ss. COUNTY OF be-4AK-Ir- ) On the day of ' evE� ,� , 1988, before me, the undersigned, a Notary Public in an for said State and County, personally appeared GEORGE L. ARGYROS, personally known to me (or proved to me on the basis of satisfactory evidence) to be one of the general partners of R a A, PARCEL FIVE, a general partnership, the general partnership that executed the within instrument, and acknowledged that such partnership executed the same. WITNESS my hand and official seal. OFFICIAL SEAL BETTE J. FAZEKAS NOTARY PUBLIC - CALIFORNIA ORANGE COUNTY My Commission Expires Oct. 23, 1992 STATE OF CALIFORNIA ) ss. COUNTY OF 4- fu G'C ) ��/il���� 1988, before On the ��day of _ me, the undersigned, a Notary Public in an for said State and County, personally appeared HARRY S. RINKER, personally known to me (or proved to me on the basis of satisfactory evidence) to be one of the general partners of R a A, PARCEL FIVE, a general partnership, the general partnership that executed the within instrument, and acknowledged that such partnership executed the same. WITNESS my hand and official seal. OFFICIAL SEAL BETTE J. FAZEKAS' NOTARY PUBLIC - CALIFORNIA ORANGE COUNT My.Commission Exoire� .t ?? .. Notary "Pj�nicw j I 88-639006 *"r i •601661409 411' i tM r I 41, moom jsse— br StNTA ANA Se � • � Y• of �• •• Ns i PROJECT SITE �-�f IQ �.i r� + •+ ±`I $OUTT 80NTM COatT ' PLAZA 1 TOWN C9NT9R ur : ! • ' s `� MALL t..• i , •. i = _ � � .11! tl>9 ... • •� — t' i tltta/t�!s•o i///r w t.r •• ./` • sro r AM ■ • •4 iii • • ■ � MGt M[4W o—m few a.r/ra taw• ••r i _ � � a ..c n go ,•`' aa�� .• t• +01•t► 09-Mh•CANf *■ ■ •• ry',• 47 ~ , _\ •, ,•• •rlltNtl •!./H" • a t.tV tti r...�fv.nr i ~ • uf'y 1 ' •f�a � ���r f d �• if • �.1p, y •, • i • m fav • . i • / ,, O j i i -41,► '� = COSTA MEA 4114 KACM d1b "I � _ � �►�. _ ! � w � i _...moi^ � y'a• • 1 EXHIBIT "A" 88-fi39006' r W 206m cow no. MICRO aaa o t. ma Orum COX C, a9. ars �.". \ op CP , as axstes ... �,_ � •""'~ J ! r I 1 t pop &*"XAW s.. ice° via }f. l ! , esplow VANIM . fA[fA • r Was, r I wa.o seY>. • . u.as ra s` I Grua r .ro owrow� aotr. � i .,o ago. s. .rw •MAUD FRatMStan_ Riwai ...o tar j r i i .AML a..SUcr w an. ..p. O-C&&No loth tt ? . POW Q aa..O r �SWA %a towns «lkllsr &W 00 &*Tr. O.. raaaa 0=1 tt.an at sa - ______— coffin mlcAl sTAu vNsloNs r I INTEMETRO Po PHASE 2 ARNEL DEVELOPMENT COWANY 950 SOUTH COAST DRIVE. '200 COSTA KSA, CA 92626 714-241-4900 ALBERT C MARTIN APD ASSOCaTES PLANNING I ARCHITECTURE 1 ENGNEERNG 2809 MAN ST i1VNE. CA 97714 714.474-0101 E OMIT "A-1" — l sl � �I I LE` 3 r W 206m cow no. MICRO aaa o t. ma Orum COX C, a9. ars �.". \ op CP , as axstes ... �,_ � •""'~ J ! r I 1 t pop &*"XAW s.. ice° via }f. l ! , esplow VANIM . fA[fA • r Was, r I wa.o seY>. • . u.as ra s` I Grua r .ro owrow� aotr. � i .,o ago. s. .rw •MAUD FRatMStan_ Riwai ...o tar j r i i .AML a..SUcr w an. ..p. O-C&&No loth tt ? . POW Q aa..O r �SWA %a towns «lkllsr &W 00 &*Tr. O.. raaaa 0=1 tt.an at sa - ______— coffin mlcAl sTAu vNsloNs r I INTEMETRO Po PHASE 2 ARNEL DEVELOPMENT COWANY 950 SOUTH COAST DRIVE. '200 COSTA KSA, CA 92626 714-241-4900 ALBERT C MARTIN APD ASSOCaTES PLANNING I ARCHITECTURE 1 ENGNEERNG 2809 MAN ST i1VNE. CA 97714 714.474-0101 E OMIT "A-1" — FUTURE PHASE 4 M.- 88-639008 I�f►�f%�►�f►�I�f �f�fi�f►�f .sb r. .a 00 aj6ry leauai . slow !s wnr• �Uau a� - ZZ PHASE 2 low me rl Y : cakIKi ME R PO INTE PHASE 3 1 AWL DEVELC NT COMPANY • ALUNT C. HAAT AADASSOCIATES K V$0 SOUTH COAST DANE. 8200 COSTA IDSA • CA 92626 "' • 7 W-241-4900 MACH N. W88 ; W I ARCHITECTURE I EN NEAD'S 2800 MAN ST . IIVK. CA. 927 M ?M.474-0101 SCALE X0 W.0 • 87080.50.300 D 00 .P K EXHIBIT "A-2" 88-639006 EXHIBIT B DEVELOPMENT APPROVALS 1. General Plan Amendment GP -82-3A Revised approved August 20, 1984. 2. Zoning Ordinance Amendment 84-36 approved August 20, 1984. 3. Final Development Plan for Phase I approved as Zone Exception Permit ZE-84-187 and Zone Exception -Permit ZE-84-193 on December 3, 1984. 4. Parcel Map No. S-84-389 approved November 13, 1985. 5. Final Development Plan PA -88-03 (Phase 2) approved February 16, 1988. 6. Final Development Plan PA -88-72 (Phase 3) approved August 15, 1988. 7. Vesting Tentative Map No. 13452 approved March 14, 1988. 8. Vesting Tentative Map No. 13470 approved August 15, 1988. 88-639006 EXHIBIT C PHASE 2 1. Site Area Acres Total 12.3 534,481 sq.ft. 2. Office Building Height and Areas Gross a. 4 Story Office Building 83,600 sq.ft. b. 6 Story Office Building 125,400 c. 12 Story Office Building 250,800 Total 459,800 sq.ft. 3. Parking a. Parking Structure A (4 Level) 860 Stalls b. Parking Structure B (6 Level) 1,416 'c. Future Phase Parking Allocation _898 d. Surface Parking 84 Total 1,462 Stalls Parking Required per 1000 - a. 83,600 4 334 Stalls b. 125,400 3 376 c. 250,800 3 752 Total 1,462 Stalls Page 1 of Exhibit C 88=639006 4. Parking Breakup a. Full Size 1,085 Stalls b. Compact 365 25% c. Handicapped 12 Total 1,462 Stalls 5. Site Coverage Office Building Coverage (Footprint) a. 4 Story Office Building 21,065 b. 6 Story Office Building 21,065 c. 12 Story Office Building 21,065 Total Coverage 63,195 12% Parking structure Coverage (Footprint only) a. Parking Structure A (4 Level) 64,255 b. Parking Structure B (6 Level) 88,155 Total Coverage 152,410 29% a. Surface Parking & Drives 113,207 21% b. Plaza & Landscaping Area 205,865 39% Total Site Coverage 534,677 100% 6. Landscaping Required Area of 25' Setback 27,.778 84 Surface Stalls at 25 SF/Stall 2,100 Total Required 29,878 sq.ft. Page 2 of Exhibit C 88=639006. 7. Floor - Area Ratio 0.86 a. Office Building Areas Total 459,800 sq.ft. b. Site Area Total 534,481 sq.ft. Page 3 of Exhibit C EXHIBIT D 88=639006 PHASE 3 1. Site Area Acres Total 9.85 429,066 Sq. Ft. 2. Building Areas Gross a. Office Building Area 795,256 Sq. Ft. b. Commercial Building Area 30,000 Total 825,256 Sq. Ft. 3. Parking Parking Totals Submitted a. Parking Structure C (6 Level) 1,180 Stalls b. Parking Structure D (6 Level) 875 c. Future Phase Parking Allocation -443 d. Surface Parking 40 e. Allocated from previous phase 898 Total 2,550 Stalls Parking Required per 1000 a. 195,256 3 556 Stalls. b• 300,000 3 900 C. 300,000 3 900 d• 30,000 4 120 Total 2,506 Stalls Page 1 of Exhibit D 88=639006- 4. Parking Breakup a. Full Size 1,888 Stalls b. Compact 638 25% c. Handicapped 24 Total 2,550 Stalls 5. Building Height and Site Coverage Office Building Coverage (Footprint) 6. a. 10 Story Office Building 21,065 b. 15 Story Office Building 21,065 c. 15 Story Office Building 21,065 d. 2 Story Commercial Building 15,000 . Total Coverage 78,195 18% Parking Structure Coverage (Footprint only) a. Parking Structure C (6 Level) 58,532 b. Parking Structure D (6 Level) 42,275 Total Coverage 100,807 23% a. Surface Parking & Drives 62,309 15% b. Plaza & Landscaping Area 187,776 44% Total Site Coverage 429,087 100% Landscaping Required Area of 25' Setback 22,500 40 Surface Stalls at 25 SF/Stall 1,000 Total Required 23,500 Sq. Ft. Page 2 of Exhibit D 7. Floor Area Ratio a. Office Building Areas Total b. Commercial Building Area c. Total Building Area d. Site Area Total Page 3 of Exhibit D 88-639006 1.92 795,256 Sq. Ft. 30,000 Sq. Ft. 825,256 Sq. Ft. 429,066 Sq. Ft. 88-639005 PUBLIC BENEFITS (2.01(b)) The public benefits to be received by the City of Costa Mesa as a result of the development of the Project are as follows: 1. Major Business and Employment Center. Owner will develop a major business center within the City of Costa Mesa providing a long term source of employment opportunities that will enhance the image and stature of the City of Costa Mesa. 2. Metro Pointe Housing Plan. Owner has agreed and hereby continues to agree to the incorporation into its Project of a.Housing Plan to be known as the Metro Pointe Housing Plan. Under the General Plan and rezone changes accomplished for Metro Pointe and South Pointe there was a net increase of 140 housing units. Under maximum build out of the entire Metro Pointe development, including Phase 4, which has not yet received final approval, a Housing demand of 752 units will be created. Owner has constructed the housing required under the General Plan in anticipation of the commercial development encompassed by Phases 2 and 3, and the housing provided remains ahead of the demand created by the Project for housing. In order to insure a jobs/housing balance developer herein agrees to complete 736 units, comprised of 296 units at Metro Pointe - the Cape and 440 units at South Pointe, prior to occupancy of any buildings in Phases 2 or 3. This- will insure in place housing prior to the creation of the demand for it by Project. 3. Fire Station Contribution. Owner shall participate on a fair share basis in funding the cost of construction and basic fire fighting equipment in conjunction with other benefitting new development in North Costa Mesa. The Owner's pro rata share for Phase 2 is $114,950, and for Phase 3 the Owner's pro rata share is $206,300. Payment by Owner shall be made at time of building permit issuance. Should, however, a community facilities district or other similar financing mechanism be utilized to provide a fire station, Owner shall join such assessment district to finance their proportionate share in lieu of a one time fee payment. 4. Metro Pointe Traffic Improvement Plan. Owner hereby agrees to bear the cost of the needed improvements to the traffic circulation system affected by Page 1 of Exhibit E 88-639006 Phases 2 and 3 as itemized hereinbelow subject to the terms and conditions set forth below. Phase 2 The needed improvements affected by Phase 2 are the following intersections: 1. Fairview/Baker 2. Bristol/Sunflower 3. Bear/Paularino (Scope of work to be completed is as detailed in the North Costa Mesa Arterial Study) The costs for the needed improvements for Phase 2 are as follows: A. Design costs. City will contract:for and approve all final design for Phase 2 improvements and Owner hereby agrees to pay the actual costs incurred by City for design services, within thirty (30) days of receiving written notification from City of final approval of the intersection improvement plans, estimated to total $258,480.00 in accordance with the following schedule: Estimated Estimated Design Intersection Design Cost Completion Date 1. Fairview/Baker $ 100,000 January 1989 2. Bristol/Sunflower $ 100,000 March 1989 3. Bear/Paularino $ 58,480 April 1989 B. Right of Way acquisition costs including appraisal costs. City shall select and retain an appraiser with the consent of Owner which shall not be unreasonably withheld, to prepare an appraisal report on the property needed for right of way acquisition (inclusive of any needed relocation costs). Owner shall then deposit with City the appraiser's fee and the amount of the appraisals within thirty (30) days of written notification by City of said amounts, so that City may proceed with the acquisition of said property. Upon final determination of the actual cost of right of way acquisition as agreed to by City and Owner, owner shall pay the difference, if any, between the amount of the deposit and the actual cost of appraisal and acquisition, within thirty (30) days of written notification by City of said amounts. City shall proceed with the appraisals, acquisi- tions, and any relocation associated with the needed right of way. Currently the estimated right-of-way acquisition costs Page 2 of Exhibit E 'i i � • 11:� are $897,000.00. City estimates that it will be prepared to certify acquisition of the right of way by the following dates: Estimated Estimated Estimated Appraisal Right -of -Way Right -of -Way Intersection Cost Cost Certification Date 1. Fairview/ Baker $ 80,000 $ 707,000 March, 1989 2. Bristol/ Sunflower $ 40,000 $ 190,000 May, 1989 3. Bear/ Paularino (no right of way needed) C. Construction of improvements. Owner shall put out for bid the construction of the necessary improvements within thirty (30) days of the City's certifying it has obtained the necessary right of way and has finally approved all necessary street improvement plans or such other plans as may be necessary to build the improvement. After obtaining bids mutually acceptable to Owner and City and entering into contracts, Owner shall diligently proceed with construction of the necessary improvements currently estimated to cost a total of $902,800.00 as follows: Intersection Estimated Construction Cost I. Fairview/Baker $ 571,700 2. Bristol/Sunflower $ 245,500 3. Bear/Paularino $ 85,600 Phase 3 The needed improvements affected by Phase 3 are the following intersections and interchanges: 1. Bear/Sunflower 2. South Coast/I-405 (New northbound offramp construction and associated Fairview offramp link reconstruction) (Scope of work to be completed is as detailed in the North Costa Mesa Arterial Study and I-405 Project Study Report) Page 3 of Exhibit E Fairview/I-405 $ 58,900 Start.November 1988 (Southbound Offramp) B. Right of Way acquisition costs including appraisal, costs. City shall select and retain an appraiser with the consent of Owner, which shall not be unreasonably withheld, to prepare an appraisal report on the property needed for right of way acquisition (inclusive of any needed relocation costs). Owner shall then deposit with City the appraiser's fee and the amount of the appraisals, within thirty (30) days of.written notification by City of said amounts, so that City may proceed with the acquisition of said property. Upon final determination of the actual cost of right of way acquisition as agreed to by City and Owner, Owner shall pay the difference, if any, between the amount of the deposit anj the actual cost of appraisal and acquisition, within thirty (30) days of written notification by City of said amounts. Page 4 of Exhibit E 88-6 9006 3. Fairview/I-40 (Northbound offramp widening and southbound offramp widening) The costs for the needed improvements for Phase 3 are as follows: A. Design costs. Owner will at its expense contract for, and City will expeditiously approve, all remaining final design for Phase 3 improvements estimated to total $278,100 in accordance with the following schedule: Intersection/ Estimated Estimated Design Interchange Design Cost Schedule 1. Bear/Sunflower $ 75,800 Start December 1988 2. South Coast/I-405 $ 76,500 Currently in progress (New Northbound by Van Dell under Offramp) contract with Owner. South Coast/I-405 $ 66,900 Start November 1988 (Northbound Fairview Offramp Link Reconstruction) 3. Fairview/I-405 (Completed) Complete (Northbound Offramp) Fairview/I-405 $ 58,900 Start.November 1988 (Southbound Offramp) B. Right of Way acquisition costs including appraisal, costs. City shall select and retain an appraiser with the consent of Owner, which shall not be unreasonably withheld, to prepare an appraisal report on the property needed for right of way acquisition (inclusive of any needed relocation costs). Owner shall then deposit with City the appraiser's fee and the amount of the appraisals, within thirty (30) days of.written notification by City of said amounts, so that City may proceed with the acquisition of said property. Upon final determination of the actual cost of right of way acquisition as agreed to by City and Owner, Owner shall pay the difference, if any, between the amount of the deposit anj the actual cost of appraisal and acquisition, within thirty (30) days of written notification by City of said amounts. Page 4 of Exhibit E 88-639006 City shall proceed with the appraisal and acquisition and any relocation associated with the needed right of way. Right-of-way acquisition for Bear/Sunflower is estimated to cost $345,000.00 and the estimated cost of appraisal services is $20,000.00. C. Construction of Improvements. Owner shall put out for bid the construction of the necessary improvements for the Bear/Sunflower intersection within thirty (30) days of the City's certifying it has obtained the necessary right of way and has finally approved all necessary street improvement plans or such other plans as may be necessary to build the improvement. After obtaining bids mutually acceptable to Owner and City and entering into contracts, Owner shall diligently proceed with construction of the necessary improvements currently estimated,to cost a total of $455,000. City shall, at Owner's expense, put out for bid the construction of the necessary improvements for the South Coast/I-405 and Fairview/I-405 interchanges within thirty (30) days of certifying it has obtained the necessary right of way or easements, if needed, and has finally approved all necessary street improvement plans or such other plans as may be necessary to build the improvement. After obtaining bids mutually acceptable to Owner and City and entering into contracts, City shall diligently proceed with construction of the necessary improvements currently estimated to cost a total $1,606,200. Owner shall deposit the cost of construction of said improvements with City within thirty (30) days of written notice by City. Conditions Applicable To Phase 2 and 3 Improvements City and Owner agree to the following conditions with respect to all Phase 2 and 3 improvements set forth hereinabove: 1. Owner shall receive credits for all monies expended against its traffic impact fee as finally determined. It is recognized that the current maximum fee of $668.00 may be reduced pursuant to Resolution 88-10 and the elimination of any North Costa Mesa Arterial Projects as the result of a decrease in currently assumed densities or further refinements to the plan made as a consequence of new information or further financing alternatives approved by the City which may reduce the traffic impact fee. 2. In those cases where public right-of-way is necessary for Owner to construct the aforementioned public improvements, Owner shall not be obligated to construct said Page 5 of Exhibit E 88=639006 improvements prior to building occupancy if City does not provide right-of-way to Owner in a timely fashion. 3. Upon completion of the improvements referred to herein, Owner shall be deemed to have complied with PA -88-03 Condition No. 3 relating to all Phase 2 traffic improvements and PA-88-72/VT-13470 Condition No. 51 with respect to all Phase 3 traffic improvements. 4. Owner's total traffic impact fee obligation shall be reduced in accordance with trip end reductions resulting from a reduction in intensity Owner may make pursuant to Paragraph 2.03(a)(V) or any changes in methodology used by City in determining trip generation -rates until the date of occupancy of the final building in the Project. 5. In the less than the improvements set difference within event Owner's total traffic impact fee is total expenditures of Owner for the forth hereinabove, City shall refund said ninety (90) days of determination. 6. If the City increases intensities beyond the North Costa Mesa Arterial Study (September 1988) or I-405 Project Study Report (September 1988) assumptions, then the Project's traffic impact fee shall be adjusted to account for the new trip -ends. Any new improvements required by any project increasing the intensities beyond that now identified in the North Costa Mesa Arterial Study or I-405 Project Study Report will not be funded by the current traffic impact fee program, but will be project specific expenses. 7. It is recognized that Owner's total maximum Phases 2 and 3 traffic impact improvement fee could be $12,535,688 (multiply average daily trips (18,766) by $668.00) if not otherwise reduced as set forth herein, and if otherwise consistent with State law. It may, therefore, be necessary for Owner to pay additional fees over and above those advanced pursuant to this Agreement or to participate in a Mello -Roos District or other funding program, or a combination thereof pursuant to a further agreement mutually acceptable to City and Owner. S. In contracting for the construction of any public improvements required by this Agreement to be constructed by Owner, Owner shall comply to the maximum extent practicable with all applicable City regulations and ordinances and State laws relative to the procedures in awarding and form of contract for construction of public improvements. 9. Owner may above those advanced into an assessment Facilities District Should a Community satisfy any additional fees pursuant to this Agreement by district or Mello Roos providing for the equivalent Facilities District or other Page 6 of Exhibit E over and entering Community monies. similar g6=639006: mechanism be utilized, Owner shall similarly participate on a fair share basis with other benefitting development. Page 7 of Exhibit E