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HomeMy WebLinkAbout2051ORDINANCE NO. 2051 AN ORDINANCE OF THE CITY COUNCIL OF CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 94.08.09 OF THE PALM SPRINGS ZONING CODE AND APPROVING A DEVELOPMENT AGREEMENT AMENDMENT WITH PS COUNTRY CLUB, LLC, RELATED TO THE SERENA PARK PROJECT PERFORMANCE SCHEDULE FOR CONSTRUCTION, THE DEVELOPMENT AGREEMENT FEE PAYMENT DATE, AND OTHER MINOR REVISIONS RELATED TO THE CONVERSION OF THE PALM SPRINGS COUNTRY CLUB GOLF COURSE INTO 386 RESIDENTIAL UNITS LOCATED NORTH OF VERONA ROAD, EAST OF SUNRISE WAY AND SOUTHWEST OF THE WHITEWATER RIVER WASH (CASE 5.1427 DA AMENDMENT). City Attorney's Summary This Ordinance amends Section 94.08.09 of the City's Zoning Code relating to an amendment to the Development Agreement with PS Country Club, LLC, to revise the performance schedule for construction, modify the payment dates of the Development Agreement Fee, memorialize phasing of utility undergrounding and other minor revisions related to the Serena Park Project, which is 386 unit residential project proposed on 126-acres of land. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: A. PS Country Club, LLC, a California limited liability company, ("Applicant" or "Developer") filed an application pursuant to Palm Springs Zoning Code Section 94.07.00 (Zone Map Change / Change of Zone) and Section 94.03.00 (Planned Development District) seeking approval of a Planned Development District in lieu of a Change of Zone (Case 5.1327 PD-366) to construct 386 residential dwellings, private streets and open space, including a public park, on 126-acres of previously disturbed land (defunct golf course) generally located north of Verona Road, east of Sunrise Way, and southwest of the Whitewater River channel (APN 501-190-002, 501-190-011, 669-480-027) ("Project"). B. The Applicant submitted related Project applications, including a General Plan Amendment (Case 5.1327 PD-366/GPA) to change the land use designation from "Open Space — Parks/Recreation" to "Very Low Density Residential;" a Tentative Tract Map application (Case TTM 36691) to subdivide the subject property into 386 residential lots and common area parcels for public and private streets and open space pursuant to Title 9 of the Palm Springs Municipal Code; a Major Architectural application to review proposed architecture pursuant to Section 94.04.00 of the Zoning Code; and a Development Agreement (Case 5.1327 DA) to establish conditions, terms and obligations for the development of the Project. Ordinance No. 2051 Page 2 C. In accordance with Section 15063 of the California Environmental Quality Act (CEQA) Guidelines, the City of Palm Springs as the Lead Agency conducted an Initial Study and determined that the Project raised potentially significant environmental impacts. An Environmental Impact Report (EIR) was prepared to assure adequate review and analysis of potentially significant environmental impacts associated with the Project. D. A notice of a public hearing of the Planning Commission of the City of Palm Springs, California to consider the above -mentioned applications was given in accordance with applicable law, and on April 13, 2016, the Planning Commission carefully reviewed and considered all of the evidence presented in connection with the hearing on the Project, including but not limited to the staff report, and all written and oral testimony presented, and voted 5-1 to recommend approval to the City Council of the Project. E. On April 27, 2016, the Planning Commission carefully reviewed and considered all of the evidence presented in connection with the proposed Development Agreement and voted 6-0 to recommend approval to the City Council. F. A notice of public hearing of the City Council of the City of Palm Springs, California to consider the above -mentioned applications was given in accordance with applicable law and on September 7, 2016, the City Council held a public hearing in accordance with applicable law, and carefully reviewed and considered all of the evidence presented in connection with the hearing on the Project, including but not limited to the staff report, and all written and oral testimony presented. The City Council reviewed and certified the Final EIR for the Project by adopting its Resolution No. 24082, identified as Case No. 5.1327, PD-366, and TTM 36691, and voted 5-0 to conditionally approve the Project. G. As part of the conditional approval of the Project, the City Council included Administrative Condition (ADM 13) which states: "Approval of these land use entitlement applications is contingent upon the approval of a development agreement. The development agreement shall address the conversion of open space for development purposes, through in -kind replacement of open space, payment of in -lieu fees for the acquisition of open space, or replacement of open space through a density transfer, pursuant to Policy LU2.2 of the City of Palm Springs General Plan." H. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California has enacted California Government Code § 65864 et seq. (the "Development Agreement Statute"), which authorizes City to enter into an agreement with any person having a legal or equitable interest in real property regarding the development of such property. This Development Agreement has been processed, considered, and approved in accordance with the procedures and requirements as set forth in the Development Agreement Statute. Ordinance No. 2051 Page 3 I. Pursuant to Government Code section 65865(c), the City of Palm Springs previously adopted Ord. 1829 § 3, 2013; Ord. 1294, 1988 [PSMC § 94.08.00], that set forth rules and regulations establishing procedures and requirements for consideration of development agreements. This Development Agreement has been processed, considered, and approved in accordance with the procedures and requirements as set forth in the City's Ordinances and Municipal Codes. J. A notice of public hearing of the City Council of Palm Springs, California to consider the Development Agreement associated with the Project was given in accordance with applicable law and on July 19, 2017, the City Council carefully reviewed and considered all of the evidence presented in connection with the hearing on the Development Agreement, including but not limited to the staff report, all written and oral testimony presented, and voted 4-0 to approve the Development Agreement, by introducing Ordinance 1931 with a second reading on July 26, 2017. The approved Development Agreement included a Performance Schedule that included the requirement that certain milestones be met. K. On July 8, 2021, the Applicant filed an amendment to the approved Development Agreement, Case 5.1327 DA, ("Amendment") to postpone payment of the Development Agreement Fee until November 1, 2022 (Section 4.03 of Development Agreement); modify and extend the approved Performance Schedule as shown in the table below (Exhibit D of Development Agreement); and modify the timeframe for utility undergrounding for the Project as required by the Conditions of Approval. APPROVED DATE PROPOSED REVISION DATE ACTIVITY July 19, 2017 DA First Hearin Se t 2017 DA Second Hearin November 2018 Final Execution DA Effective Date March 2019 Financing Phase 1 April 2019 Start Engineering October 2019 March 2022 Improvement Plan Approval/ Record Phase 1 Ma April 2020 Record Phase 2 Ma June 2020 March 2022 Infrastructure Construction Phase I Park will be built during thisphase) September 2020 Aril 2023 Infrastructure Construction Phase 2 March 2021 December 2022 Close Phase 1 First House April 2021 February 2024 Infrastructure Construction Phase 3 August 2021 February 2024 Close Phase 2 First House October 2021 January 2024 Record Phase 3 Ma December 2021 January 2024 Record Phase 4 Ma January 2022 March 2025 Close Phase 3 First House A ril 2022 February 2024 Infrastructure Construction Phase 4 January 2023 March 2025 Close First House Phase 4 Ordinance No. 2051 Page 4 L. A notice of a public hearing of the Planning Commission of the City of Palm Springs, California to consider the proposed Amendment was given in accordance with applicable law and on September 1, 2021, the Commission carefully reviewed and considered all of the evidence presented in connection with the hearing on the Amendment, including but not limited to the staff report, all written and oral testimony presented and voted 7-0 to recommend conditional approval of the Amendment to the City Council. M. A notice of a public hearing of the City Council of the City of Palm Springs, California to consider the proposed Amendment was given in accordance with applicable law and on September 30, 2021, the City Council carefully reviewed and considered all of the evidence presented in connection with the hearing on the Amendment, including but not limited to the staff report, all written and oral testimony presented. N. The City Council determined that the Amendment associated with the Project is considered a "project" pursuant to the terms of the California Environmental Quality Act ("CEQA"). O. The City Council also found that no further environmental documentation, beyond the documentation prepared in conjunction with the EIR for the Project, is required because: 1. There are no substantial changes in the project that will require major revisions to the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. There are no substantial changes with respect to the circumstances under which the project is being undertaken which will require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and 3. There is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified showing that: a. The project will have one or more significant effects not discussed in the EIR; b. Significant effects previously examined will be substantially more severe than shown in the EIR; c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but those mitigation measures or alternatives have not been adopted; or d. Mitigation measures or alternatives considerably different from those analyzed in the EIR would substantially reduce one or more significant effects on the environment, but the mitigation measures or alternatives have not been adopted. Ordinance No. 2051 Page 5 (Public Resources Code section 21166; CEQA Guidelines section 15162.) P. The City Council also found that the Amendment complies with the provisions of Palm Springs Zoning Code Section 94.08.00, as follows: Is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan; The requested revisions to the Development Agreement provide for a postponement in the commencement of the project and payment of a required fee. The modifications will not result in inconsistencies to any objectives, policies, general plan land uses or programs. 2. Is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located; The uses will not be affected by the Amendment. The Development Agreement remains the same for the subject property and permits 386 residential units, streets, and park space. 3. Is in conformity with public convenience, general welfare and good land use practice; The Development Agreement remains consistent with the previously approved entitlements, which will allow attached and detached residential units that are compatible with adjacent and surrounding residential developments in the vicinity. 4. Will not be detrimental to the health, safety and general welfare; The amended development agreement allow for the postponement of the project moving forward by 1.5 years. However, the project benefits will still occur, including removal of blight, provision of housing, and improvement of park space. Therefore, the Amendment will not be detrimental to the health, safety and general welfare. 5. Will not adversely affect the orderly development of property or the preservation of property values. The Amendment will permit orderly development of single -story homes with a density that is compatible with surrounding development patterns. The proposed amendment will only affect the time in which said development occurs, which is not anticipated to adversely affect the preservation of property values. Ordinance No. 2051 Page 6 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The findings and determinations reflected above are all true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by and through this Ordinance. Section 2. The Final EIR for the Project is the controlling environmental document for the Council's consideration of the Amendment to the Development Agreement. Section 3. In accordance with Section 94.08.00 of the Palm Springs Zoning Code, the City Council hereby approves the Amendment to the Development Agreement, including the requested date revisions to Exhibit D (Performance Schedule); the requested extension of a portion of the Development Agreement Fee from November 1, 2021 to November 1, 2022; and determines the utility undergrounding shall occur prior to occupancy permits for Phase 3B. Section 4. The City Council authorizes the City Manager to execute the Amendment to the Development Agreement between the City of Palm Springs and PS Country Club, LLC in a form substantially similar to that attached to this Ordinance, and incorporated by this reference herein as EXHIBIT 'A" and to take all steps necessary to complete its recordation. Section 5. Palm Springs Zoning Code Section 94.08.10 is hereby amended by adding a new subdivision (A)(4) to read as follows: 14. Amendment to Development Agreement. In 2021, the City Council approved an amendment modifying Exhibit D, the "PERFORMANCE SCHEDULE." The approved modification provided for a construction timeline originally scheduled to commence in June of 2020 with the first phase home being completed March of 2021, to commence in March of 2022 with the first phase home being completed in December of 2022. The Council also approved a deferral of a portion of the Development Agreement Fee until November 1, 2022, as set forth in the Development Agreement." Section 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. ADOPTED THIS 14TH DAY OF OCTOBER, 2 Ordinance No. 2051 Page 7 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss. CITY OF PALM SPRINGS) I, Anthony J. Mejia, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 2051 is a full, true and correct copy, and was duly introduced at a regular meeting of the City Council of the City of Palm Springs on September 30, 2021, and adopted at a regular meeting of the City Council of the City of Palm Springs on October 14, 2021, by the following vote: AYES: Councilmembers Garner, Kors, Woods, Mayor Pro Tern Middleton, and Mayor Holstege NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ;5' day of 06vemb-,/ �zl Anthony J. Meiia Clerk City of Palm prings, Lalifornia 1 Ordinance No. 2051 Page 8 RECORDING REQUESTED BY: CITY OF PALM SPRINGS AND WHEN RECORDED MAIL TO: CITY OF PALM SPRINGS OFFICE OF THE CITY CLERK 3200 E. TAHQUITZ CANYON WAY PALM SPRINGS, CA 92262 SPACE ABOVE FOR RECORDER'S USE ONLY Pursuant to Government Code Section 6103, recording fees shall not apply FIRST AMENDED AND RESTATED DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF PALM SPRINGS AND PS COUNTRY CLUB, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY ri •; SERENA PARK PROJECT CASE NO. 5.1327, PDD-366, TTM36691 Title of Document THIS AREA FOR RECORDER'S USE ONLY Ordinance No. 2051 Page 9 FIRST AMENDED AND RESTATED DEVELOPMENT AGREEMENT THIS FIRST AMENDED AND RESTATED DEVELOPMENT AGREEMENT (this "Agreement" or "Development Agreement") is entered into by and between the City of Palm Springs, a California Charter City and municipal corporation, ("City"), and PS Country Club, LLC, a California Limited Liability Company ("Developer"), pursuant to California Government Code § 65864 et sue. RECITALS A. Development Agreement Statute. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California has enacted California Government Code § 65864 et seg. (the "Development Agreement Statute"), which authorizes City to enter into an agreement with any person having a legal or equitable interest in real property regarding the development of such property. This Development Agreement has been processed, considered, and executed in accordance with the procedures and requirements as set forth in the Development Agreement Statute. B. City Ordinance. Pursuant to Government Code section 65865(c), City has adopted Ord. 1829 § 3, 2013; Ord. 1294, 1988 [PSMC § 94.08.00], that set forth rules and regulations establishing procedures and requirements for consideration of development agreements. The parties acknowledge: a. This Agreement will assure adequate public facilities at the time of development. b. This Agreement will assure development in accordance with City's land use policies and goals c. This Agreement will provide for orderly growth consistent with the City's General Plan, and other public policies. d. This Agreement is intended to provide certainty in the development approval process by vesting the permitted uses, densities and intensity of use with respect to the subject property. e. The execution of this Agreement furthers the public health, safety and general welfare of the community. f. This Agreement will remove a nuisance situation and potential liability due to the blight at no cost to City. g. This Agreement will protect residents and the City from the issues that typically accompany blighted areas. h. This Agreement will allow development of a blighted area with appropriate housing and open space that is compatible with the surrounding neighborhoods. i. This Agreement will reduce potential trespasses and nuisances affecting adjacent neighborhoods. Ordinance No. 2051 Page 10 j. This Agreement will reduce air pollution by reason of a significant reduction in wind borne dust and sand to adjacent neighborhoods. k. This Agreement will increase parkland in an underserved area of the City. This Agreement will allow legal commitments by Developer over and above those allowed by state law and the Palm Springs Municipal Code requirements. C. Description of the Protect and Project Site. Developer represents and warrants that it has a legal interest in certain real property as legally described in Exhibit attached hereto (the "Project Site"). The residential project on the Project Site, along with all related public and private improvements and obligations, is the "Project." D. Conversion of Open Space — Parks/Recreation Land. The Developer acknowledges the Project Site is currently designated as "Open Space — Parks/Recreation" in the City's adopted General Plan and is zoned as "Open Space" and is therefore subject to the City's Land Use Policy LU2.2 for the conversion of open space to developable areas. The Parties acknowledge the Developer shall cooperate with the City to secure the replacement of converted open space areas on the Project Site through the use of density transfer of property designated for residential development within the City. E. Entitlements. Concurrent with the approval of this Agreement, City approved the following land use entitlements for the Project Site, which entitlements are also the subject of this Agreement: a. General Plan Amendment: From "Open Space — Parks/Recreation" (OS-P/R) to Very Low Density Residential (VLDR) for the residential portions of the project. b. Planned Development District in lieu of Change of Zone: From "Open Space" (0, 0-5) to Planned Development District (PDD). c. Tentative Tract Map: To subdivide the property into residential lots, privately owned common areas and a public park. d. Major Architectural Approval: Conceptual architectural and landscape plans will be part of the preliminary PDD. e. Transfer of Density Agreement: To cooperate in the transfer of residential density from the other areas in the City including the Chino Cone Specific Plan to the Project Site consistent with the provisions of the City's General Plan and the Chino Cone Specific Plan at the ratio of 1.2 units for each unit removed from the Chino Cone. The above Entitlements have been approved subject to various conditions and requirements with which Developer will be required to comply in order to develop the Project Site ("Conditions of Approval"). The approvals described above, including without limitation the Conditions of Approval as referenced in this Recital and this Agreement, are referred to herein as the "Entitlements" and have been reviewed and approved in accordance with the Municipal Code, California Environmental Quality Act, California Public Resources Code Section 21000 et seq. ("CEQA"), and all other applicable local, Ordinance No. 2051 Page 11 state, and federal laws and regulations. The Entitlements, Conditions of Approval, and this Agreement shall be collectively referred to as "the Project Approvals." F. Substantial Costs to Developer. Developer will incur substantial costs in order to comply with the Project Approvals and to construct the additional infrastructure improvements requested by the City to assure development of the Project Site in accordance with the terms of this Agreement. G. Vesting of Rights. In exchange for the benefits to City described in the preceding Recitals, together with the other public benefits that will result from the development of the Project, Developer will receive by this Agreement assurance that it may proceed with the Project in accordance with the "Applicable Law" (defined below) and therefore desires to enter into this Agreement. H. Planning Commission — Council Findings. The approval of this Agreement is made pursuant to findings by the Planning Commission and the Council that this Development Agreement: a. Is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan; b. Is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located; c. Is in conformity with public convenience, general welfare and good land use practice; d. Will not be detrimental to the health, safety and general welfare; e. Will not adversely affect the orderly development of property or the preservation of property values. I. City Council Actions. City Council, after public hearings and extensive environmental analysis, approved the following entitlements: a. By Resolution No. 24083, dated September 7, 2016, amended City's General Plan Land Use Designation for the subject property from "Open Space — Parks/Recreation" (OS-P/R) to Very Low Density Residential (LDR) for the residential portions of the project. b. By Ordinance No. 1898, effective October 21, 2016, conditionally adopted the Planned Development District in lieu of Change of Zone, changing the zoning from "Open Space" (0, 0-5) to the Planned Development District (PDD-366). c. By Resolution No. 24085, dated September 7, 2016, conditionally approving Tentative Tract Map 36691, to subdivide the property into residential lots, privately owned common areas, and a public park. d. By Resolution No. 24083, dated September 7, 2016, conditionally approving Major Architectural Approval: Conceptual architectural and landscape plans. J. Ordinance. On July 26, 2017, Council adopted Ordinance No. 1931 approving this Agreement and authorizing the City Manager to execute the Agreement and its Ordinance No. 2051 Page 12 concomitant Transfer of Density Agreement. The Ordinance was effective on August 25, 2017; a copy of the Ordinance is attached hereto as Exhibit B. On October 134, 2021 following a duly noticed public hearing, the City Council adopted Ordinance No. 2051, approving this First Amended and Restated Development Agreement and authorizing the City Manager to execute this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the promises, covenants, and provisions set forth herein, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: ARTICLE 1. DEFINITIONS o "Agreement" shall mean this First Amended and Restated Development Agreement by and between Developer and City, dated November 1, 2018. o "Applicable Law" shall have that meaning set forth in Section 7.03 of this Agreement. o "Changes in the Law" shall have that meaning set forth in Section 7.08 of this Agreement. o "City" is the City of Palm Springs, a California Charter City and municipal corporation. o "Conditions of Approval" shall have that meaning set forth in Section 4.04 of this Agreement. o "Default' shall have that meaning set forth in Section 11.01 of this Agreement. o "Default Notice" shall have that meaning set forth in Section 11.01 of this Agreement. o "Deficiencies" shall have that meaning set forth in Section 10.02 of this Agreement. "Development Agreement Statute" shall have that meaning set forth in Recital A of this Agreement. o "Developer" is PS Country Club, LLC, a California Limited Liability Company. o "EIR" shall mean the Final Environmental Impact Report certified by City Council on September 7, 2016. o "Entitlements" shall have that meaning set forth in Recital E of this Agreement. o "Effective Date" shall have that meaning set forth in Section 3.01 of this Agreement. Ordinance No. 2051 Page 13 o "Excusable Delay" shall have that meaning set forth in Section 11.05 of this Agreement. o "Force Majeure" shall have that meaning set forth in Section 11.05 of this Agreement. o "Judgment" shall have that meaning set forth in Section 10.02 of this Agreement. o "Project" is defined above. o "Project Approvals" shall have that meaning set forth in Recital E of this Agreement. o "Prompt Review" means review of all plans, specifications, and applications by Developer in accordance with Section 7.11, below. o "Reasonable Progress" shall mean commercially reasonable efforts by Developer to achieve full build -out and completion of all executory obligations herein within ten years in accordance with Section 7.10, below. o "Term" shall have that meaning set forth in Section 3.02 of this Agreement. ARTICLE 2. INCORPORATION OF RECITALS. Section 2.01. Recitals. The Recitals set forth above, the introductory paragraph preceding the Recitals, and all defined terms set forth in both, are hereby incorporated into this Agreement as if set forth herein in full. ARTICLE 3. EFFECTIVE DATE AND TERM Section 3.01. Effective Date. This Agreement became effective as of the date the City Council of City approved this Agreement, October 17, 2018 (the "Effective Date"). Section 3.02. Term. The term of this Agreement (the "Term") shall commence upon the Effective Date and continue for a period of twenty (20) years, unless the Term is terminated or modified as set forth in this Agreement or by mutual consent of the parties hereto. ARTICLE 4. OBLIGATIONS OF DEVELOPER Section 4.01. Obligations of Developer Generally. In consideration of City entering into this Agreement, Developer agrees that it will comply with this Agreement and with all Project Approvals. The parties acknowledge and agree that City's agreement to perform and abide by the covenants and obligations of City set forth in this Agreement is a material consideration for Developer's agreement to perform and abide by its long term covenants and obligations, as set forth herein. The Developer may discharge all of its obligation under the Agreement by agreeing to have all the property returned to an Open Space Ordinance No. 2051 Page 14 designation. Section 4.02. Fees Paid by Developer. As a material consideration for the long term assurances and vested rights provided by this Agreement, Developer shall pay fees, exactions, and charges to City as set forth in the Project Approvals not to exceed the amounts specified in City Council adopted ordinances and resolutions as of the Effective Date ("City Fees"), per dwelling unit, structure, or improvement, for all fees and charges imposed by the City and payable no earlier than City's issuance of a building permit. The amount of the City Fees will be adjusted on the fifth, tenth, and fifteenth annual anniversary of the Effective Date to reflect and equal the City's fees then in effect on each such anniversary. The term "City Fees" as used in this Section 4.02 for the purpose of limiting the ability of the City to increase certain fees, exactions, and charges does not include fees or charges required or otherwise assessed by any public agency other than the City or a fee or charge levied by the City to fund an enterprise account, including without limitation the City's Sewer Fund or Engineering plan check fees. The City Fees shall be adjusted to include credits against any and all park fees, including but not limited to, Quimby Fees pursuant to California Government Code §66477, included in the City Fees, for the costs of both land and improvements provided by the Developer to build the public park. Section 4.03. Public benefits provided by Developer. a. All conditions of approval of the Project adopted and accepted by the Developer. b. Reservation of lands for public use, owned and maintained by Developer or any successor HOA, in accordance with Exhibit C attached hereto. c. Construction of a portion of an alternate for the CV Link Trail from Verona Road and Whitewater Club Drive to Sunrise Way across development. d. Indemnification over and above the indemnification allowed under the Map Act. e. Payment of Development Agreement Fee over and above the fees referred to in paragraph 4.02, above, to be used by the City for acquisition of open space for the purposes of Developer's compliance with the City's General Plan Land Use Policy 2.2 in generating land use density for the subject property. The Development Agreement Fee shall be Three Million Dollars ($3,000,000.00) paid to City, including Five Hundred Thousand Dollars ($500,000) due no later than November 1, 2021 and the balanGeremainder of Two Million, Five Hundred Thousand Dollars ($2,500,000)_ due no later than November 1, 2022. If development lots are sold to third -party builders or building permits are issued prior to one or more of those dates. Tthe Development Agreement Fee shall be paid such that as construction of the Project occurs, and either (i) developed lots are sold to third -party builders, or (ii) building permits are issued for construction of residential dwelling units, the Developer shall pay to City a pro -rats portion of the unpaid principale at the time vacant lots are sold to third -party merchant builders or building permits are issued for construction of residential dwelling units. Each payment to the City shall take place within ten (10) business days of any sale of developed lots to a third -party builder, or concurrent with City issuance of a building permit. The pro -rats portion of the Development Agreement Fee shall be Ordinance No. 2051 Page 15 calculated as the total Development Agreement Fee divided by the total number of residential dwelling units ($3,000,000 / 386), for a per lot fee of $7,772.02. By the thir eFsaFy da dateof the -� Gti„ate November 1, 2022, the entire unpaid principale on the Development Agreement Fee shall immediately become due and payable to the City. Failure to pay the initial Five Hundred Thousand Dollars ($500,000) by November 1, 2021 or the entireremainder of the Development Agreement Fee by November 1, 2022, shall constitute a default pursuant to Section 11.01 of this Agreement, whereupon, in addition to such other remedies otherwise available to the City, the City may, in its sole discretion, withhold issuance of building permits or other ministerial approvals related to the Project Site, until such default is adequately cured to the City's satisfaction. f. Conversion of a portion of Golden Sands Drive from a private to a public street to match the current and projected use patterns and more fairly apportion the burden of maintenance and liability from the Four Seasons HOA. g. Developer will build and maintain a public park in the approximate location shown on Exhibit C. Prior to City acceptance of the Park improvements or final acceptance of any subdivision improvements for the Project, Developer shall assign all of its rights and obligations to the Homeowners' Association with responsibility over the Project to maintain the Park and to preserve public access to the Park in perpetuity. Construction of the public park shall occur as part of Phase 1. h. Developer will provide 67 acres of open space within the development over and above City requirements and the Public Park. i. Fixed development standards and enforceable commitments to the adjacent HOA's: 1) The maximum height of any buildings in the development shall be no higher than 19 feet; 2) Planting of landscape trees adjacent to existing homes shall be of species and spacing that minimize blocking of existing views; 3) New walls adjacent to any phase of the Whitewater Condominiums shall be built per the landscape exhibits in the Planned Development Permit prior to the commencement of grading on any areas adjacent to that phase; 4) Property lines adjacent to Phases 1, 2, 3 and 5 of the Whitewater Condominiums shall be changed with lot line adjustments in accordance with the tentative map exhibits or as requested by the HOA of the adjoining phase prior to the recordation of any final map; 5) The connection of Francis Drive to the Property shall be for emergency access, only. A Knox -Box type gated entry control for police and fire services shall be provided; 6) Four pedestrian gates shall be provided connecting the Whitewater Condominiums to the Property, one in Phase 1, one in Phase 3 and one on either side of Whitewater Club Drive near the entrance gates to the Whitewater Condominiums; 7) A Knox -Box style gated entry for police and fire services shall be installed at the end of each of the cul de sacs adjacent to the entry road at Whitewater Club Drive; Ordinance No. 2051 Page 16 8) Landscaping and Irrigation incorporating existing mature trees shall be provided in an eight foot wide landscape area on both sides of Whitewater Club Drive within the Property; 9) A six foot high slumpstone wall shall be built eight feet behind the existing paved road on both sides of Whitewater Club Drive, except where pedestrian and emergency access gates are provided. Securities submitted in conjunction with a Subdivision Improvement Agreement required with the City's approval of any final map shall include a contingency to assure that if the Developer fails to timely complete public improvements as provided under any subdivision agreement or allows any portion of the property to remain in a disturbed condition or in violation of any ordinance of the City regarding property maintenance for more than thirty (30) days after the expiration or termination of any permit applicable to the affected property, the City may find the Developer to be in default in which case the default provisions of this Agreement, including notice provisions shall apply. In addition to whatever other remedies the City may have, the City may demand the Developer restore such property to a natural and safe condition and remove any fencing along or adjacent to such property. The City may use self- help upon refusal or non-compliance by Developer. This obligation may be secured through such other security as the Developer and City Manager may agree. Section 4.04. Compliance with Project Conditions. In addition to any and all obligations contained in this Agreement, Developer shall comply with and fulfill any and all Conditions of Approval. The Development of the Project and Project Site shall be governed by the terms of the Conditions of Approval and this Agreement. The Conditions of Approval and this Agreement shall, to the fullest extent possible, be read and considered as fully integrated documents, and shall be interpreted so as to avoid inconsistencies, comply with all applicable federal and state laws and City Law, and ensure that the objectives of the parties will be fully realized. In accordance with the Developer's written request dated July 8, 2021, which is incorporated by reference herein, the City will accept a proposal to underground overhead utilities required by Project Conditions. Said utilities shall be installed underground prior to, and as a condition precedent to, the issuance of the first certificate of occupancy permit for Phase 3B. Nothing in this Agreement is intended to supersede, terminate, modify or otherwise affect any provision of the Conditions of Approval, except to the extent that a provision of this Agreement is in direct conflict with a provision of such Condition of Approval. Then, and only in that event, the provisions of this Agreement shall prevail over the contradictory provisions of any such Condition of Approval. The execution of this Agreement by the parties hereto shall in no way otherwise affect the validity of any or all of the provisions of the Conditions of Approval. Ordinance No. 2051 Page 17 ARTICLE 5. OBLIGATIONS OF CITY In consideration of Developer entering into this Agreement, City agrees that it will comply with the terms and conditions of this Agreement. The parties acknowledge and agree that Developer's agreement to perform and abide by its covenants and obligations set forth in this Agreement is a material consideration for the City's agreement to perform and abide by the long term covenants and obligations of the City, as set forth herein. ARTICLE 6. COOPERATION - IMPLEMENTATION The parties agree to cooperate in good faith to implement this Agreement. ARTICLE 7. STANDARDS, LAWS AND PROCEDURES GOVERNING THE PROJECT Section 7.01. Vested Right to Develop. Developer shall have a vested right to build out the Project through the Term on the Project Site in accordance with the terms and conditions of the Project Approvals. Section 7.02. Permitted Uses Vested by This Agreement. The permitted residential use of the Project Site, the density and intensity of use of the Project Site, the maximum height, bulk and size of proposed buildings, provisions for reservation or dedication of land for public purposes and the location of public improvements, the general location of public utilities, and other terms and conditions of development applicable to the Project, are set forth in the Project Approvals. Section 7.03. Applicable Law. The rules, regulations, official policies, standards and specifications applicable to the Project (the "Applicable Law") shall be those set forth in the Project Approvals, and, with respect to matters not addressed by the Project Approvals, those rules, regulations, official policies, standards and specifications (including City ordinances and resolutions) governing permitted uses, building locations, timing of construction, densities, design, heights, fees, exactions, and taxes in force and effect on the Effective Date of this Agreement. Section 7.04. Uniform Codes. City may apply to the Project Site, at any time during the Term, the then current Uniform building construction, fire or other codes, as the same may be adopted or amended from time to time by City, and City's then current design and construction standards for public improvements, as the same may be adopted or amended from time to time, provided any such uniform code or standard has been adopted and uniformly applied by City on a citywide basis, and provided that no such code or standard is adopted for the purpose of preventing or otherwise limiting construction of all or any part of the Project. Section 7.05. No Conflicting Enactments. City shall not impose on the Project (whether by action of the City Council or by initiative, referendum or other means) any ordinance, resolution, rule, regulation, standard, directive, condition or other measure (each individually, a "City Law") that is in conflict with Applicable Law, or the Project Ordinance No. 2051 Page 18 Approvals, or that reduces the development rights or assurances provided by this Agreement with respect to the Project. Without limiting the generality of the foregoing, such City Law may be allowed to address a significant public health or safety issue. Without limiting the generality of the foregoing, any City Law shall be deemed to conflict with Applicable Law, or the Project Approvals, or reduce the development rights provided hereby if it would accomplish any of the following results, either by specific reference to the Project or as part of a general enactment which applies to or affects the Project. Approvals: a. Change any land use designation or permitted use of the Project Site existing as of the Effective Date of this Agreement; b. Limit or control the availability of public utilities, services or facilities or any privileges or rights to public utilities, services, or facilities (for example, water rights, water connections or sewage capacity rights, sewer connections, etc.) for the Project, unless such limitation is necessary to address significant health and safety issues; c. Limit or control the location of buildings, structures, grading, or other improvements of the Project in a manner that is inconsistent with or more restrictive than the limitations included in the Project Approvals; d. Limit or control the rate, timing, phasing or sequencing of the approval, development or construction of all or any part of the Project in any manner inconsistent with the Project Approvals; e. Apply to the Project any City Law otherwise allowed by this Agreement that is not uniformly applied on a the citywide basis to all substantially similar types of development projects and project sites; f. Result in Developer having to substantially delay construction of the Project or require the issuance of additional permits or approvals by the City other than those required by the Project Approvals or Applicable Law; g. Substantially increase the cost of constructing or developing the Project or any portion thereof; h. Establish, enact, increase, or impose against the Projector Project Site any fees, taxes (including without limitation general, special and excise taxes), assessments, liens or other monetary obligations other than those specifically permitted by this Agreement; Impose against the Project any condition, dedication or other exaction not specifically authorized by the Project Approvals or Applicable Law; Ordinance No. 2051 Page 19 Grant any development right, entitlement or approval for any portion of the Property that will reduce, limit or encumber Developer's rights hereunder, or k. Unreasonably limit the timing, processing or procuring of applications and approvals. If City attempts to apply to the Project a City Law that Developer believes to conflict with Applicable Law or the Project Approvals, Developer shall provide to City in writing a notice describing the legal and factual basis for Developer's position. The parties shall meet and confer within thirty (30) days after the date of such written notice with the objective of attempting to arrive at a mutually acceptable solution to this disagreement. If no mutually acceptable solution can be reached, either party may take such action as may be permitted under Section 11.08, below. Section 7.06. Initiatives and Referenda. a. To the maximum extent permitted by law, if any City Law is enacted or imposed by initiative or referendum, or by the City Council directly or indirectly in connection with any proposed initiative or referendum, which City Law would conflict with Applicable Law, or the Project Approvals or reduce the development rights provided by this Agreement, such City Law shall not apply to the Project. b. Without limiting the generality of any of the foregoing and to the maximum extent permitted by law, no moratorium or other limitation (whether relating to the rate, timing, phasing or sequencing of development) affecting building permits or other entitlements to which Developer is entitled pursuant to the Project Approvals shall apply to the Project. c. To the maximum extent permitted by law, City shall take reasonable actions to prevent any City Law from invalidating or prevailing over all or any part of this Agreement, and City shall cooperate with Developer and shall undertake such reasonable actions as may be necessary to ensure this Agreement remains in full force and effect. d. City shall not support, adopt or enact any City Law, or take any other action which would violate the express provisions or spirit and intent of this Agreement or the Project Approvals. e. Developer reserves the right to challenge in court any City Law that is enacted after the Effective Date of this Agreement that would conflict with Applicable Law or this Agreement or reduce the development rights provided by this Agreement. Section 7.07. Environmental Mitigation. The parties understand that the EIR was intended to be used in connection with all of the Project Approvals needed for the Project. Section 7.08. State and Federal Law. As provided in California Government Code § 65869.5, this Agreement shall not preclude the application to the Project of changes in laws, regulations, plans or policies, to the extent that such changes are specifically mandated and required by changes in state or federal laws or regulations, or by any Ordinance No. 2051 Page 20 regional governmental agency that, due to the operation of state law, has binding legal authority on City ("Changes in the Law"). In the event Changes in the Law prevent or preclude compliance with one or more provisions of this Agreement, such provisions of the Agreement shall be modified or suspended, or performance thereof delayed, as may be necessary to comply with Changes in the Law, and City and Developer shall take such action as may be required pursuant to this Agreement including, without limitation, Article 10 (Cooperation -Implementation) and Section 11.05 (Force Majeure and Excusable Delays; Extension of Time of Performance). Not in limitation of the foregoing, nothing in this Agreement shall preclude City from imposing on Developer any fee specifically mandated and required by state or federal laws and regulations, provided that nothing shall limit Developer's ability to challenge such laws and the imposition of such fees. Section 7.09. Timinq of Project Construction and Completion. a. Project Timing. The parties acknowledge that Developer cannot predict the timing, rate, order or actual timing with certainty. The timing, order and rate of development shall be in Developer's sole discretion, except as otherwise provided in the Project Approvals. b. In light of the foregoing, the parties agree that Developer shall be able to develop in accordance with Developer's own time schedule as such schedule may exist from time to time. In particular, and not in limitation of any of the foregoing, since the California Supreme Court held in Pardee Construction Co. v. the City of Camarillo, 37 Cal.3d 465 (1984), that the failure of the parties therein to consider and expressly provide for the timing of development resulted in a later -adopted initiative restricting the timing of development to prevail over such parties' agreement, it is the parties' desire to avoid that result by acknowledging that Developer shall have the right to develop the Project at such rate and at such times as Developer deems appropriate within the exercise of its subjective business judgment, provided that such schedule is consistent with this Agreement. c. The Developer shall use its best efforts to meet the Agreed Proposed Schedule attached hereto as Exhibit "D". Section 7.10. Annual Review. City shall, at least every twelve (12) months during the term of this Agreement, review the extent of good faith substantial compliance by Developer and Landowner with the terms of this Agreement. The review may specifically include a review of whether Developer is making Reasonable Progress. To assess such progress, the City Planning Director may require at any time subsequent to the execution of this Agreement, and as frequently as annually thereafter, a development planned schedule showing a ten-year (or less) completion schedule. Reasonable Progress shall take into account market conditions, commercial realities, the sensitivities of adjacent residents and prudent construction practices. Reasonable Progress is expressly subject to City's obligation of Prompt Review specified in Section 7.11, below. City may charge Ordinance No. 2051 Page 21 fees as necessary to cover the costs of conducting the annual review. Such periodic review shall be limited in scope to compliance with the terms of this Agreement pursuant to California Government Code Section 65865.1. Said review shall be diligently completed. Notice of such annual review shall include the statement that any review may result in amendment or termination of this Agreement. A finding by City of good faith compliance by Developer and Landowner with the terms of the Agreement shall conclusively determine said issue up to and including the date of said review. City shall deposit in the mail or fax to Developer and/or Landowner a copy of all staff reports and, to the extent practical, related exhibits concerning contract performance at least seven (7) calendar days prior to such periodic review. Developer or Landowner shall be permitted an opportunity to be heard orally or in writing regarding its performance under this Agreement before the City Council and, if the matter is referred to a City Planning Commission, before said Commission Section 7.11. Prompt Review by the City. City and Developer shall cooperate and use commercially reasonable efforts to timely review and approve the development design review process, building plan review process, improvement plan review process, and if necessary, the entitlement review process for the residential and other developments to be located within the Project. Review of any application provided by this subparagraph shall not be deemed to waive any of the Applicable Law pertaining to review or approval of such application, including, but not limited to, a public hearing, if any, required therefore. In the event the Parties agree to use an expedited process to perform any review pursuant to this subparagraph, Developer authorizes the imposition of City Fees paid to the City sufficient to cover City's estimated costs of utilizing City staff, retaining an outside consultant or any combination thereof in order to expedite the review process. Any such process shall terminate upon the expiration or termination of this Agreement or the issuance of the final certificate of occupancy for development within the Project, whichever occurs first. Section 7.12. Exempting Fees Imposed by Outside Agencies. Except as specified in 7.08, above, City agrees to exclude Developer from any and all collection agreements regarding fees, including, but not limited to, development impact fees which other public agencies or responsible agencies request City to impose at City's discretion on the Project or the Project Site after the Effective Date through the Term of this Agreement, provided, however, that Developer will not be exempted from fees included in the Project Approvals. ARTICLE 8. AMENDMENT This Agreement may be amended from time to time, in whole or in part, by mutual written consent of the parties hereto or their successors in interest, in accordance with the Development Agreement Statute. ARTICLE 9. ASSIGNMENT, TRANSFER AND NOTICE Section 9.01. Assignment of Interests, Riqhts and Obligations. Developer may only transfer or assign all or any portion of its interests, rights or obligations under the Project Approvals to another person or entity acquiring an interest or estate in the Project or any Ordinance No. 2051 Page 22 portion thereof including, without limitation, purchasers or ground lessees of lots, parcels or facilities that accepts all of the then -applicable responsibilities of the Developer. Section 9.02. Limits of Liability. To the extent the Developer's responsibilities are transferred in good faith to another person or entity, Developer shall be free from any and all liabilities accruing on or after the date of any assignment or transfer with respect to those obligations assumed by a transferee pursuant to a Transfer Agreement. No breach or default hereunder by any person succeeding to any portion of Developer's obligations under this Agreement shall be attributed to Developer, nor may Developer's rights hereunder be canceled or diminished in any way by any breach or default by any such person. ARTICLE 10. COOPERATION IN THE EVENT OF LEGAL CHALLENGE Section 10.01. Cooperation. a. In the event of any administrative, legal or equitable action or other proceeding instituted by any person not a party to this Agreement challenging the validity of any provision of the Agreement or any Project Approval, the parties shall cooperate in defending such action or proceeding. The parties shall use best efforts to select mutually agreeable legal counsel to defend such action, and Developer shall pay compensation for such legal counsel; provided, however, that such compensation shall include only compensation paid to counsel not otherwise employed as City staff and shall exclude, without limitation, City Attorney time and overhead costs and other City staff overhead costs and normal day-to-day business expenses incurred by City. In the event City and Developer are unable to select mutually agreeable legal counsel to defend such action or proceeding, each party may select its own legal counsel. b. The parties agree that this Section 10.01 shall constitute a separate agreement entered into concurrently, and that if any other provision of this Agreement, or the Agreement as a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the parties agree to be bound by the terms of this section, which shall survive such invalidation, nullification or setting aside. Section 10.02. Waiver of Challenges to Project Approvals. a. As a condition precedent to receiving the benefits of this Agreement, Developer, its successors in interest, transferees, assignees, etc., expressly waive any legal or equitable right to challenge any Project Approvals or other act, entitlement, fee, or approval expressly set forth in this Agreement, including without limitation, all acts of protest pursuant to California Government Code Sections 66008 and 66009 as to any fee against which Developer has vested in accordance with this Agreement. b. The parties agree that this Section 10.03(b) shall constitute a separate agreement entered into concurrently, and that if any other provision of this Agreement, or the Agreement as a whole, is invalidated, rendered null, or set aside by a court of Ordinance No. 2051 Page 23 competent jurisdiction, the parties agree to be bound by the terms of this section, which shall survive such invalidation, nullification or setting aside. ARTICLE 11. DEFAULT; REMEDIES; TERMINATION Section 11.01. Defaults. Any failure by either party to perform any term or provision of this Agreement, which failure continues uncured for a period of thirty (30) days following written notice of such failure from the other party (unless such period is extended by mutual written consent), shall constitute a default under this Agreement ("Default"). Any notice given pursuant to the preceding sentence ("Default Notice") shall specify the nature of the alleged failure and, where appropriate, the manner in which said failure satisfactorily may be cured. If the nature of the alleged failure is such that it cannot reasonably be cured within such 30-day period, then the commencement of the cure within such time period, and the diligent prosecution to completion of the cure thereafter, shall be deemed to be a cure within such 30- day period. Upon the occurrence of a Default under this Agreement, the non -defaulting party may institute legal proceedings to enforce the terms of this Agreement or, in the event of a material Default, terminate this Agreement. If the Default is cured, then no Default shall exist and the noticing party shall take no further action. Section 11.02. Enumerated City Rights and Remedies for Developer Default. City and Developer agree that notwithstanding any provision of this Agreement, in the event of any Default by Developer, the City, in addition and cumulative to all rights and remedies provided in this Agreement, shall have two (2) enumerated rights and remedies, each in an exercise of City's absolute discretion, enumerated in this Section 11.02. First, City may initiate and approve the Project Site's reversion to acreage in conformance with California Government Code, Title 7, Division 2, Chapter 6, Reversions and Exclusions (Sections 66499.11 through 66499.29) and Municipal Code, Title 9, Chapter 9.66 Reversions (Sections 9.66.010 through 9.66.110), unless City waives said Municipal Code provisions. Second, the City may take unilateral action to summarily abate any condition representing a nuisance at the Project Site or any portion thereof. City abatement pursuant to this Section 11.02 shall conform to to the "summary abatement" process reflected in Municipal Code Section 11.72.245, as that provision may be amended from time to time. The scope and nature of any City abatement hereunder shall be restoration of the Project Site, and any part thereof, to a natural and safe condition as determined, in an exercise of absolute discretion, by the City. The costs of the City's abatement shall be recoverable by the City pursuant to Municipal Code Chapter 11.72. Section 11.03. Termination. If City elects to consider terminating this Agreement due to a material Default of Developer, then City shall give a notice of intent to terminate this Agreement. City shall give written notice of termination of this Agreement to Developer by certified mail and this Agreement shall thereby be terminated sixty (60) days thereafter. Section 11.04. Default by City or Developer. In the event that City or Developer defaults under the terms of this Agreement, the City or Developer shall have all rights and remedies provided herein or under law. Ordinance No. 2051 Page 24 Section 11.05. Force Majeure and Excusable Delay; Extension of Time of Performance. In addition to specific provisions of this Agreement, neither party shall be deemed to be in Default where delays in performance or failures to perform are due to, and a necessary outcome of, war, insurrection, strikes or other labor disturbances, walk- outs, riots, floods, earthquakes, fires, casualties, acts of God, restrictions imposed or mandated by other governmental entities (including new or supplemental environmental regulations), enactment of conflicting state or federal laws or regulations, judicial decisions, or similar basis for excusable performance which is not within the reasonable control of the party to be excused (collectively "Force Majeure"). Litigation attacking the validity of this Agreement or any of the Project Approvals, or any permit, ordinance, entitlement or other action of a governmental agency other than City necessary for the development of the Project pursuant to this Agreement, shall also be deemed to create an excusable delay as to Developer (collectively "Excusable Delay"). The party whose performance is prevented or delayed by such event of Force Majeure or Excusable Delay shall give prompt written notice thereof to the other party and both parties shall have agreed that performance is appropriately excused or delayed pursuant to this Section 11.05 In the event of Force Majeure or Excusable Delay, the parties shall memorialize in writing the extension of time for the performance of any obligation whose performance has been so prevented or delayed. The term of any such extension shall be equal to the period of the Excusable Delay or Force Majeure or such other period as may be mutually agreed upon by both parties. Section 11.06. Legal Action. Either party may, in addition to any other rights or remedies, institute legal action to cure, correct, or remedy any default, enforce any covenant or agreement herein, enjoin any threatened or attempted violation thereof, recover damages for any default, enforce by specific performance the obligations and rights of the parties hereto, or to obtain any remedies consistent with the purpose of this Agreement. Section 11.07. California Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Venue for any action shall be in Riverside County, California. Section 11.08. Resolution of Disputes. With regard to any dispute involving development of the Project, the resolution of which is not provided for by this Agreement or Applicable Law, Developer and City shall, at the request of the party, meet and shall attempt in good faith to resolve any such disputes. Nothing in this Section 11.08 shall in any way be interpreted as requiring that Developer and City and/or City's designee reach an agreement with regard to those matters being addressed, nor shall the outcome of these meetings be binding in any way on City or Developer unless expressly agreed to by the parties to such meetings. Section 11.09. Attorneys' Fees. In any legal action or other proceeding brought by either party to enforce or interpret a provision of this Agreement, each party shall bear its own costs and expenses, including attorneys' fees. Ordinance No. 2051 Page 25 Section 11.10. Hold Harmless. Developer shall, at its sole expense, defend and hold City and its elected and appointed officers, agents, employees, and representatives harmless from all claims, costs, and liabilities for any personal injury, death, or property damage which arises directly or indirectly as a result of the construction of the Project, the Project Site, or of operations performed under this Agreement by Developer or by Developer's contractors, subcontractors, agents or employees, whether such operations were performed by Developer or any of Developer's contractors, subcontractors, agents, or by any one or more persons directly or indirectly employed by or acting as agent for Developer or any of Developer's contractors or subcontractors. Nothing in this section shall be construed to mean that Developer shall hold City harmless from any claims of personal injury, death or property damage arising from, or alleged to arise solely from, any negligent or intentional act, or failure to act, on the part of City, its elected and appointed representatives, officers, agents and employees. This hold harmless agreement applies to all damages or claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this section regardless of whether or not City prepared, supplied or approved plans or specifications, or both, for the Project and/or Project Site. The parties agree that this Section 11.10 shall constitute a separate agreement entered into concurrently, and that if any other provision of this Agreement, or the Agreement as a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the parties agree to be bound by the terms of this section, which shall survive such invalidation, nullification or setting aside. ARTICLE 12. NO AGENCY, JOINT VENTURE OR PARTNERSHIP It is specifically understood and agreed to by and between the parties hereto that: (i) the subject development is a private development; (ii) City has no interest or responsibilities for, or duty to, third parties concerning any improvements until such time, and only until such time, that City accepts the same pursuant to the provisions of this Agreement or in connection with the various Project Approvals; (iii) Developer shall have full power over and exclusive control of the Project herein described, subject only to the limitations and obligations of Developer under this Agreement, the Project Approvals and Applicable Law; and (iv) City and Developer hereby renounce the existence of any form of agency relationship, joint venture or partnership between City and Developer and agree that nothing contained herein or in any document executed in connection herewith shall be construed as creating any such relationship between City and Developer. ARTICLE 13. MISCELLANEOUS Section 13.01. Enforceability. City and Developer agree that unless this Agreement is amended or terminated pursuant to the provisions of this Agreement, this Agreement shall be enforceable by any party hereto, notwithstanding any change hereafter enacted or adopted (whether by ordinance, resolution, initiative, or any other means) in any Ordinance No. 2051 Page 26 applicable general plan, specific plan, zoning ordinance, subdivision ordinance, or any other land use ordinance or building ordinance, resolution or other rule, regulation or policy adopted by City that changes, alters or amends the rules, regulations and policies applicable to the development of the Project Site at the time of the approval of this Agreement as provided by California Government Code Section 65866. Section 13.02. Severability. If any term or provision of this Agreement, or the application of any term or provision of this Agreement to a particular situation, is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining terms and provisions of this Agreement, or the application of this Agreement to other situations, shall continue in full force and effect unless amended or modified by mutual consent of the parties. Notwithstanding the foregoing, if any material provision of this Agreement, or the application of such provision to a particular situation, is held to be invalid, void or unenforceable, either City or Developer may (in their sole and absolute discretion) terminate this Agreement by providing written notice of such termination to the other party. Section 13.03. Other Necessary Acts. Each party shall execute and deliver to the other all such other further instruments and documents as may be reasonably necessary to carry out the Project Approvals and to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. Section 13.04. Construction. Each reference in this Agreement to this Agreement or any of the Project Approvals shall be deemed to refer to the Agreement or the Project Approvals as they may be amended from time to time, whether or not the particular reference refers to such possible amendment. This Agreement has been reviewed and revised by legal counsel for both City and Developer, and no presumption or rule that ambiguities shall be construed against the drafting party shall apply to the interpretation or enforcement of this Agreement. Section 13.05. Other Miscellaneous Terms. The singular shall include the plural; the masculine gender shall include the feminine; "shall" is mandatory; "may" is permissive. If there is more than one signer of this Agreement, the signer obligations are joint and several. Section 13.06. Covenants Running with the Land. All of the provisions contained in this Agreement shall constitute covenants or servitudes which shall run with the land comprising the Project Site and the burdens and benefits hereof shall be binding upon and inure to the benefit of the parties and their respective heirs, successors in interest, transferees and assignees, representatives, lessees, and all other persons acquiring all or a portion of the Project or the Project Site, or any interest therein, whether by operation of law or in any manner whatsoever. All of the provisions contained in this Agreement shall be enforceable as equitable servitudes and shall constitute covenants running with the land pursuant to California law including, without limitation, Civil Code Section 1468. Section 13.07. Notices. Any notice or communication required hereunder between City or Developer must be in writing, and may be given either personally, by facsimile (with original forwarded by regular U.S. Mail) by registered or certified mail (return receipt Ordinance No. 2051 Page 27 requested), or by Federal Express or other similar courier promising overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. If given by facsimile transmission, a notice or communication shall be deemed to have been given and received upon actual physical receipt of the entire document by the receiving party's facsimile machine. Notices transmitted by facsimile after 5:00 p.m. on a normal business day or on a Saturday, Sunday or holiday shall be deemed to have been given and received on the next normal business day. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any party hereto may at any time, by giving ten (10) days written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below: If to the City, to: Justin Clifton City Manager 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Fax: (760) 322-8362 Justin.Clifton@palmsprings-ca.gov With Copies to: Jeffrey Ballinger City Attorney 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Fax: (760) 323-8299 Jeff. Ballinger@bbklaw.com If to Developer, to: Eric Taylor Somis Investments 300 E. Esplanade, Suite 1785 Oxnard, CA 93036 Tel: 805-633-1037 Fax: 805-633-4523 etaylor@somisinvestments.com With Copies to: Mark C. Allen, III The Claremont Land Group Attorneys 5861 Pine Avenue, Suite A-1 Chino Hills, CA 91709-6540 Tel: (909) 398-44041 Fax: (909) 398-1883 (909) 333-5254 - Direct Mark@mcallen3.com Ordinance No. 2051 Page 28 Section 13.08. Entire Agreement, Counterparts and Exhibits. This Agreement is executed in duplicate, each of which is deemed to be an original. This Agreement consists of 21 pages and four exhibits which constitute in full, the final and exclusive understanding and agreement of the parties and supersedes all negotiations or previous agreements of the parties with respect to all or any part of the subject matter hereof. Section 13.09. Waiver. Any waivers of the provisions of this Agreement or any breach of covenants or conditions contained in this Agreement shall be effective only if in writing and signed by the appropriate authorities of City and Developer. A waiver of one provision or breach shall not be considered as a continuing waiver, shall not constitute a waiver of any other conditions or covenants and shall not operate to bar or prevent the other party from declaring a forfeiture or exercising its rights for any succeeding breach of either the same or other condition or covenant. Section 13.10. Recordation of Development Agreement. No later than ten (10) days after City enters into this Agreement, the City Clerk shall record an executed copy of this Agreement in the Official Records of the County of Riverside. Section 13.11. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than City and Developer, any rights, remedies, obligations or liabilities under or by reason of this Agreement. Section 13.12. Titles of Parts and Sections. Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of this Agreement's provisions. Section 13.13. Discretion of City. City's execution of this Agreement in no way limits the discretion of City in the permit or approval process in connection with any site plan approvals, subsequent entitlements, land use decisions, construction or improvements which are within City's jurisdiction, except to the extent expressly and unequivocally stated herein. Section 13.14. Representations of Authority. As to each person signing this Agreement on behalf of an entity, all necessary legal prerequisites to that party's execution of this Agreement have been satisfied and he or she has been authorized to sign this Agreement and bind the party on whose behalf he or she signs. [SIGNATURES ON NEXT PAGE] Ordinance No. 2051 Page 29 IN WITNESS WHEREOF, the City of Palm Springs California, a California Charter City and municipal corporation, has authorized the execution of this Development Agreement in duplicate by its City Manager and attestation by its City Clerk, and approved by the Council of the City on the 14t" day of October, 2021, and amended by City Council Ordinance No. [2051], and Developer has caused this Agreement to be executed by its authorized representative. Date: APPROVED AS TO FORM: as Jeffrey S. Ballinger City Attorney APPROVED BY CITY COUNCIL: Date: Agreement No. "CITY" City of Palm Springs By: Justin Clifton City Manager ATTEST By: Anthony J. Mejia, MMC City Clerk Corporations require two notarized signatures. One signature must be from Chairman of Board, President, or any Vice President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer. "DEVELOPER" Palm Springs Country Club, LLC, a California limited liability company By By Signature (Notarized) Signature (Notarized) Printed NamelTitle Printed Name/Title Ordinance No. 2051 Page 30 EXHIBIT A REAL PROPERTY DESCRIPTION All that certain real property conveyed from Palm Springs Country Club Investors, LLC, a California limited liability company and Jeffrey G. Gomberg, a single man, to PS Country Club, LLC, a California limited liability company, by Grant Deed recorded March 6, 2013, as Document No. 2013-0111566, as further described herein: All that certain real property situated In the County of Riverside, State of California, described as follows: Parcel 1: (501-190-002, and a portion of 501-190-011) The Northeast quarter of Section 1, Township 4 South, Range 4 East, San Bernardino Meridian, in the City of Palm Springs, County of Riverside, State of California, according to the official plat thereof. Except any portion lying within the following subdivisions: A. Desert Park Estates No. 10, as per map recorded in Book 33 Page 20 of Maps, in the office of the County Recorder of said County. B. Ranch Country Club Estates No. 1, as per map recorded In Book 36, Page 64 of Maps, in the office of the County Recorder of said County. C. Tract No. 4362, as per Map recorded in Book 70, Pages 89 and 90 of Maps, in the office of the County Recorder of said County. D. Tract No. 4362-1, as per Map recorded in Book 81, Pages 29 and 30 of Maps, in the office of the County Recorder of said County. E. Tract 9317, as per Map recorded in Book 91, Pages 44 and 45 of Maps, in the office of the County Recorder of said County. F. Tract 14029, as per Map recorded In Book 112, Pages 61and 62 of Maps, in the office of the County Recorder of said County. Parcel 2: (a portion of 501-190-011) Lot 1 of Ranch Country Estates No.1, in the City of Palm Springs, County of Riverside, State of California, as per map recorded in Book 36, Page 64, of Maps, in the office of the County Recorder of said County. Exhibit "A" Ordinance No. 2051 Page 31 Parcel3: (669-480-027) Parcel 1 of that Lot Line Adjustment No. 02-12 recorded February 26, 2004 as Instrument No.2004-134481 of Official Records, described as follows: A parcel of land, situated in the City of Palm Springs, County of Riverside, State of California, lying over a portion of the Southwest Quarter of Section 36, Township 3 South, Range 4 East, San Bernardino Base and Meridian, being more particularly described as follows.. Beginning at the South Quarter corner of said Section 36; Thence, along the North -South centerline of said Section 36, North 0°12'43" East 420.46 feet; Thence, leaving said North -South centerline North 89059'13" West 88.65 feet, Thence North 38024'39" West 476.26 feet; Thence North 47046'07" West 450.07 feet; Thence North 61 °23'04" West 329.68 feet; Thence North 28'04'13" West 200.02 feet; Thence South 80057'45" West 440.06 feet; Thence South 75005'43" West 318.05 feet; Thence South 58°00'55" West 386.18 feet; Thence South 5°14'30" East 769.65 feet to the Intersection of a line parallel to, and 554.00 feet Easterly, when measured at right angles, to the West line of said Section 36, with a line parallel to, and 300.00 feet Northerly, when measured at right angles, to the South line of said Section 36; Thence, along said line parallel to the West line of said Section 36, South 00015'30" West 300.00 feet, to the South line of said Section 36; Thence, along said South line of Section 36, South 89045'52" East 2100.33 feet to the point of beginning. Excepting therefrom that portion of said parcel of land being more particularly described as follows: Commencing at the Southwest corner of said Section 36; Thence, along the South line of said Section 36, South 89045'52" East 814.00 feet; Thence, leaving said South line, parallel to the West line of said Section 36, North 0°15'30" East 300.00 feet to a line parallel to, and 300.00 feet Northerly of, said South line of Section 36 and the True Point of Beginning; Thence, along said line parallel to the South line of Section 36, South 89°45'52" East 718.85 feet; Thence, leaving said parallel line, South 89035'48" East 417.44 feet; Thence South 88'10'53" East 316.61 feet; Thence North 49027'44" East 107.85 feet; Thence North 45027'43" West 330.33 feet; Thence North 82°49028" West 18.54 feet; Thence North 53'11'47" West 872.71 feet; Thence South 74057" 3" West 528.72 feet; Exhibit "A" Ordinance No. 2051 Page 32 Thence South 0008'38" West 30.73 feet; Thence South 72041'33" West 113.63 feet; Thence South 3°29'01" East 610.32 feet to the True Point of Beginning. Parcel 4: (669-590-066) That portion of the South half of the Southeast quarter of Section 36, Township 3 South, Range 4 East, San Bernardino Meridian, in the City of Palm Springs, County of Riverside, State of California, according to the official plat thereof, described as follows: Beginning at the Southwest corner of said South half of the Southeast quarter; Thence South 89°52'00" East, along the South line of said South half of the Southeast quarter, a distance of 240.00 feet; Thence North 70000'00" West,105.00 feet; Thence South 75'12'28" West, 59.03 feet; Thence North 31 °00'00" West, a distance of 163.00 feet, to a point on the West line of said South half of the Southeast quarter; Thence South 0006'30" West, along said West line, a distance of 160.00 feet to the Point of Beginning. Exhibit "A" Ordinance No. 2051 Page 33 EXHIBIT B ORDINANCE NO. 1931 FOLLOWS THIS PAGE Exhibit "B" Ordinance No. 2051 Page 34 EXHIBIT C PUBLIC PARK The Developer is obligated to provide a park, accessible to the public, and maintained by the Homeowners' Association with responsibility over the Project. The specific Conditions of Approvals relative to the public park are listed below: PLN 20. Park. A park shall be provided in accordance with the approved site plan, and shall be properly maintained by the HOA and accessible to the general public. The development agreement shall set forth the minimum maintenance obligations, the recreational amenities and improvements provided by the applicant, and the construction/completion schedule for the park. PLN 24. Public Benefit. In accordance with adopted City Council policy, the following items shall be considered as public benefits: e. Provision of a park, maintained by the HOA, and accessible to the general public, - The public park has two areas "West" and "East" separated by the public "Spine Road". The West area will include the following recreational amenities and improvements: • Two (2) tennis courts; • Shade grove of trees; • Bicycle rack; • 10 parking spaces; • Meandering trail and landscaping extending to Verona Road. The East area will include the following recreational amenities and improvements: • Turf play area with tree shade, two play structures, 3' wrought iron fencing, shade canopies, poured in place rubber surfacing, drinking fountain, bench seating, trash cans, and associated amenities; • A restroom building providing two unisex ADA accessible restrooms; • Bicycle parking; • Eight parking spaces; • A separate fenced dog park for large dogs with turf, shade structure, bench seating, trash cans, drinking fountain, dog wash/sprinkler, and associated amenities; • A practice golf range with simulated turf; • A separate fenced dog park for small dogs with turf, shade structure, bench seating, trash cans, drinking fountain, dog wash/sprinkler, and associated amenities; • A large open play area with turf and shade trees; • A decomposed granite pedestrian walking/hiking trail; • A demonstration garden. The conceptual plan for the public park is shown on the next page. The full scope and requirements for the public park will be further identified in the Final Development Plans for Planned Development District 366 (PDD-366) approved by the City and shall be constructed as part of the first phase of development. Exhibit "C" Ordinance No. 2051 Page 35 193� 194 )9S r96 197 192 Ip1#� 10 1439 .., 188 F� Ga.wwllorar� CYip � � y1 J,}7.10?O�7lFly� MOO ilk M'..+y�re4. wa.nr.. a„r, x#IVftkYrYIOn � �� - 17_ham\ •w �nrlT.s uaffi t+,l.aa.lm 9 74 vaw R++m'+ No Ar, C�sas T+� fnLr Llv Cvm (�(. ] rwp�av Mn'aw �� r LswemviYsMq StYIRie L—*, - -A rrnp umra 9eeabu, Weal xRP nvRPMl:l.i-HgnINWi) a �+MOPmt��la nn'ntµ �nva IP M"Mm cola 173 1 s' 172 ®1�•1lLMS — � 171 170 160. 63 164 1b5 166 SERENA PARK Tract No. 36691 Conceptual Landv-*pe Plan • Public Park f.. Ordinance No. 2051 Page 36 EXHIBIT D PERFORMANCE SCHEDULE DATE ACTIVITY NOTE July 19, 2017 DA First Hearing Sept 2017 DA Second Hearing November 2018 Final Execution DA Effective Date March 2019 Financing Phase 1 April 2019 Start Engineering March 2022 Improvement Plan Approval/ Record Phase 1 Map March 2022 Record Phase 2 Map March 2022 Infrastructure Construction Phase I Park will be built during this phase April 2023 Infrastructure Construction Phase 2 - December 2022 Close Phase 1 First House February 2024 Infrastructure Construction Phase 3 February 2024 Close Phase 2 First House January 2024 Record Phase 3 Map January 2024 Record Phase 4 Map March 2025 Close Phase 3 First House February 2024 Infrastructure Construction Phase 4 March 2025 Close First House Phase 4 Exhibit "D"