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O1259 ~ ; ~ . e / CA:~h~:r City Council Meeting 9 -14-82 Santa Monica, California ORDINANCE NUMBER 1259(CC5) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROVING DEVELOPMENT AGREEMENT BETWEEN 2701 OCEAN PARK CORPORATION AND THE CITY OF SANTA MONICA THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. The development agreement attached hereto and incorporated by reference between 2701 Ocean Park Corporation, a California corporation, and the City of Santa Monica, a municipal corporation, is hereby approved. SECTION 2. Each and every term and condition of the development agreement approved in Section 1 of this ordinance shall be and is made a part of the Santa Monica Municipal Code and any appendices thereto. The City Council of the City of Santa Monica finds that the public necessity, public convenience, and general welfare require that any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this development agreement, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to make fully effective the provisions of this development agreement. . e SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to give full force and effect to the provisions of this ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of com- petent jurisdiction, such decision shall not render invalid the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. The ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: ~\W'l.~ ROBERT M. MYERS U City Attorney e e ADOPTED AND APPROVED THIS 14th DAY OF September ~ 1982. Uck ( I HEREBY CERTIFY THAT THE FOREGOING ORDINANCE~ NO. 1259 (CCS)~ WAS DULY AND REGULARLY INTRODUCED AT A MEETING OF THE CITY COUNCIL ON THE 7th DAY OF September 1982; THAT THE SAID ORDINANCE WAS THEREAFTER DULY ADOPTED AT A MEETING OF THE C I TV COUNC I L ON THE 14 th DAY OF September ~ 1982 BY THE FOLLOWING COUNCIL VOTE: " AYES: COUNCILMEMBERS: Conn, Edwards, Press, Zane and Mayor Yannatta Goldway NOES: COUNCILMEMBERS: Reed ABSENT: COUNCILMEMBERS: Kane ABSTAIN: COUNCILMEMBERS: Jennlngs ATTEST: -,/ ~ /) // ,C/.:.L/. //' t/ ,.LA..fr/~'--' /1, // ~-~-rJ // CITY CLERK V e e cONT~~CT ~O. 3841(CC5) Recording Requested By: And When Recorded Mail To: Space above this line for Recorder's use. DEVELOPMENT AGREEMENT by and between the City of Santa Monica, California and 2701 Ocean park Corporation, a California corporation ("Project Owner-) / e e TABLE OF CONTENTS PARAGRAPH PAGE Recitals 1 1. Definitions 2 2. Exhibits 3 3. Description of Real Property 3 4. Interest of Property Owner 3 5. Binding Effect of Agreement 3 6. Relationship of Parties 4 7. Description of Project 4 8. Uses 4 A. Residential Housing 5 B. Community Commercial Uses 5 c. Day-Care Center 8 D. Other Commercial Uses 11 9. Affordable Housing 11 A. Distribution of Units 11 B. Affordability 12 c. Verification of Eligibility 15 D. Leasing Agreement with the City 15 10. Traffic and Emission Abatement 16 11. Effect and Duration of Covenants 17 12. City.s Approval of Project 18 (1) / /j / ~. . e PARAGRAPH PAGE 13. Project Approvals A. City Permits B. Architectural Review Board Approval c. City Approval of Plans, Drawings and Related Documents 14. Time for Construction and Completion of Project A. Beginning of Construction B. Completion of Project 18 18 19 19 20 20 21 15. Certificate of Completion 21 16. Subdivision of Property 22 17. Effect of Agreement on Land Use Regulations 23 18. Periodic Review In Compliance With Agreement 23 19. Amendment Or Cancellation of Agreement 23 20. Enforcement 23 21. Subsequent Acts 24 22. Events of Default 24 23. Procedure Upon Default 2S 24. Notice of Termination 26 25. Enforced Delay; Extension of Times of Performance 26 26. Attorneys' Fees and Costs 27 27. Hold Harmless 28 (ii) // e PARAGRAPH 28. Energy Conservation A. Solar Heating B. Operable Windows C. Other Energy Considerations 29. Insurance 30. Subordination: Attornment 31. Notices 32. Headings 33. Assignment 34. Agreement 35. Governing Law 36. Duration of Agreement 37. Recording of Agreement (iii) e PAGE 29 29 29 30 30 30 31 32 33 33 33 33 34 / - e e DEVELOPMENT AGREEMENT THIS AGREEMENT is entered into this 14th day of September, A~4~? 1982, by and between 2701 OCean Park Corporation, a California corporation (hereinafter referred to as "Property Owner") and the City of Santa Monica, california, a Charter City organized and existing under the laws of the State of California (hereinafter the .City.). RBCIT~T..!=I: This Agreement is predicated upon the following facts: A. Pursuant to the Charter of the City of Santa Monica, the City has the power to enter into binding development agreements for the development of real property and has duly adopted rules and regulations establishing procedures and requirements for consideration of development a9reements~ B. The City intends to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to the City's Charter and the provisions of state law~ " I", / - --. . e C. Property Owner has requested the City to consider entering into a development agreement and proceedings have been undertaken in accordance with the City's rules and regulations; and D. The City Council of the City (hereinafter the nCounciln) has found that this Development Agreement is consistent with the general plan. NOW THEREFORE, the parties agree: 1. Definitions. In this Agreement, unless the context otherwise requires: (i) .City" is the City of Santa Monica, California. (ii) "projectn is the development contemplated by this Agreement. (iii) .Property Owner" means the entity or person having a legal or equitable interest in the real property as described in Paragraph 3 and includes the Property Owner's successors in interest: (iv) "Property" is the real property referred to in Paragraph 3. - 2 - ? e e 2. Exhibits. The fOllowing documents are referred to in this Agreement and are attached hereto and made a part hereof by this reference: Exhibit Desiqnation Description Referred to in Paragraph A Real property 3 B Basic Concept Drawings 7 Scope of Development 7 c D Rental Schedule 9 3. Description of Real Property. The real property which is the subject of this Agreement is described in Exhibit nAn (hereinafter the "Property"). 4. Interest of Property OWner. Property Owner represents that it has a legal interest in the Property and that all other persons holding legal or equitable interest in the Property are to be bound by this Agreement. 5. Binding Effect Of Agreement. The burdens of this Agreement bind and the benefits of the Agreement inure to the successors in interest to the parties to it. - 3 - / -~ e e 6. Re1ationship Of Parties. It is understood that the contractual relationship between the City and Property Owner is such that the Owner is an independent contractor and not the agent of the City. 7. Description Of Project. Project OWner has prepared and submitted Basic Concept Drawings attached hereto as Exhibit "Bn (the ftBasic Concept Drawings") and a written description attached hereto as Exhibit "en (the "Scope of Development") depicting the elevations, site layout, basic design concepts, including maximum height and maximum size for the project, and locations of ingress and egress to streets. By the adoption of the ordinance authorizing the City to enter into this Agreement, the City has approved the Basic Concept Drawings and Scope of DeveloPment. The Property shall be developed as a logical evolution of the Basic Concept Drawings and Scope of Development except as changes may be mutually agreed upon between the Project Owner and the City. 8. Uses. Project Owner covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Project and any part thereof, that the Property shall be devoted to commercial, office and residential uses as herein set forth, provided, however, that this covenant as to use is merely a covenant to make the Project available for occupancy for these - 4 - / " . e uses, but is not intended to be nor shall it be construed to be a covenant to operate any of the improvements which are to be constructed, or in any way affirmatively obligate Project Owner or any assignee to operate the improvements for the purposes designed or any other purpose. Project Owner shall have the sole right and discretion to establish qualification standards for prospective commercial and office occupants and the terms and conditions for the operating and leasing of the commercial and office portions of the Project, including the selection of tenants. A. Residential Bousing. The northern section of the third floor of the Project, as indicated in the Basic Concept Drawings, consisting of not less than 16,802 gross squar~ feet of adjusted floor area, including balconies and corridors which only service the residential area, shall be used for the provision of 18 units of residential housing as defined in Paragraph 9, below. - B. eom.unity Camaercial Uses. It is the intent of the parties that not less than 16,245 square feet of adjusted floor . area of the Project (the "Community Use Space") shall be leased to qualified commercial users ("Community Use Tenants") who under the terms of their leases shall agree to engage in one or more of the activities described in Section 1, paragraph (e) of City ReSOlution Number 6385, passed by the Council on October 27, 1981 - 5 - - " e e (hereinafter the .Community Uses.), under substantially the same terms and conditions then offered to other commercial tenants in the Project. In furtherance thereof, Property Owner shall make its interest in leasing to commercial users engaged in Community Uses known in the marketing for the commercial portion of the Project~ shall give priority to leases with qualified occupants for the commercial portion of the Project consistent with the terms of this paragraph SB: and shall retain all leasing records pertaining to the commercial portion of the Project and shall make any such records available for inspection by the City for a period of twelve (12) months from the date of such record's preparation. In the event that not less than 5,686 square feet of adjusted floor area the Project are leased, on or before the date that the first certificate of occupancy is issued to the Project pursuant to Paragraph 15 below (the nC of 0 daten), to Community Use Tenants, Project Owner shall attempt to lease the remainder of the Community Use Space to Community Use Tenants for an additional period of three (3) months after the C of 0 date. Any Community Use Space not so leased at the conclusion of such three month period shall be offered for an additional six (6) months by Project Owner for lease to Community Use Tenants at a rental rate - 6 - /. \ e e per square foot (on a triple-net basis) equal to not more than eighty percent (80%) of the average price per square foot provided for in all leases then executed covering any commercial space in the Project. In the event that any Community Use Space is still not leased at the conclusion of such additional six (6) month period, project Owner may offer such space to any potential tenant intending to engage in any use permitted by current C-2 zoning law for a lease of not more than five (5) years. In the event that less than 5,686 square feet of adjusted floor area of the Project are leased to Community Use Tenants on or before the C of 0 date, Project Owner shall attempt to lease the remainder of the Community Use Space to Community Use Tenants, at any rental rate desired by Project Owner, for a period of one (1) year from the C of 0 date. At the conclusion of such one (I) year period, any Community Use Space not so leased may be offered to any potential tenant intending to engage in any use permitted by current C-2 zoning law for a lease of not more than five (5) years. Any Community Use Space rented to other than Community Use Tenants shall be reoffered to potential Community Use Tenants for a period of not more than six (6) months after the expiration of the lease term, except that if such space has been occupied under three (3) or more leases by tenants not engaged in Community - 7 - i_ e e Uses, Project Owner may immediately offer such space to any potential tenant intending to engage in any use permitted by current C-2 zoning law. The square footage figures used above are calculated on the basis of a Project consisting of one hundred twenty-three thousand four hundred eighty-five (123,485) square feet of adjusted floor area; shall the Project actually consist of less adjusted floor area, the figures given above shall be proportionally reduced. c. Day-care Center. A day-care center consisting of approximately 4,000 square feet of indoor space will be contained within the Project and such facility will be made available for lease to those qualified licensed day-care operator{s) selected by Property Owner after consultation with the City, at the rate of one dollar ($l.OO) per year on a triple-net basis. Property Owner shall have the right to terminate the lease upon the failure of the lessee to meet the standards of operation or to pay the expenses specified in the lease. The lessee shall have no right to sublet or assign the day-care center space. Property Owner shall submit its proposed day-care center lease to the City Attorney for approval as to form, required qualifications of prospective operators and rates to be charged. The day-care center shall, consistent with any applicable state and federal requirements, be offered on the following priority basis: 1) to children of residents of or of employees working in the Project: 2) to children of residents of the City; - 8 - e e 3} to children of employees of businesses located in the City: aoo, finally 4) to all other children. Property Owner shall continue to provide space for the above-described day-care center so long as a qualified lessee operates the center under the terms of the approved lease. If the space is not operated as a day-care center for more than two (2) consecutive months then the City shall enter into a lease to operate the day-care center, which lease shall be Property Owner's day-care center lease as approved in accordance with this Paragraph 8C. If the space is not operated as a d~y-care center for more than six (6) consecutive months for the sole reason that no qualified operator seeks to operate it then Property Owner may re-lease the space for other purposes. The time periods specified in this Paragraph 8e shall co~~ence and run only upon written notice by Property Owner to the City of such commencement. Notwithstanding the foregoing, for a period ending January 1, 1983, the Council shall have the sole and exclusive option to request Property Owner to agree to modify the obligation of Property Owner described abovel by eliminating the requirement to provide a day-care center in the Project: provided, that Property Owner agrees to remodel and refurbish the City fire station located in Clover Park (hereinafter the "Fire Station"), including providing the fallowing improvements: finished lavatories meeting state standards for day-care centers: finished inside walls, taped, spackled and painted: vinyl tile floor and - 9 - e e wall base: acoustic tile ceiling; fluorescent lighting: storefront and entrance door; primary distribution of HVAC to the space: primary distribution of electric service to the space; primary and secondary distribution of sprinklers as required by fire department regulations for unoccupied space; building standard window blinds: reasonable outdoor play equipment: plus an amount of not more than five thousand dollars ($5,000.00) for necessary furnishings and equipment for the indoor area. Such remodelling and refurbishing shall be completed concurrently with the completion of residential housing in the Project, as described in Paragraph 15 B. In addition to the foregoing, for a period ending six (6) months after Property Owner's receipt of the first certificate of occupancy pursuant to Paragraph 15 below, Property Owner shall have the sole and exclusive optionl upon written notice to the City, to reduce the square footage in the Project required under this Paragraph 8C to be used as a day-care center by 1,000 square feet for each $20,000 that Property Owner shall provide to the City, which sums the City agrees to use in connection with such community and/or social services project(s) as the City shall designate. Said payment by Project OWner shall be in the form of a promissory note having an original principal amount calculated in the manner described above, payable to the City and executed by Project Owner, with a term of six (6} years, providing for - 10 - e e equal annual payments, commencing on the date of the notice described above and payable in advance on each anniversary date thereafter, and otherwise in a form reasonably satisfactory to Project Owner. D. Other Commercial Uses. All other leasable portions of the Project shall be devoted to office uses and commercial uses permitted in a C-2 Neighborhood Commercial District (sometimes referred to herein as "commercial uses.). 9. Affordable Housing. A. Distribution of Units. Project Owner shall use its best efforts to apply the following priorities when considering prospective lessees of the residential housing in the Project: (i) Workers employed by commercial owners or commercial tenants occupying space in the Project: and then, (ii) Senior citizens and families with children. The housing in the Project shall consist of not less than eighteen (18) units, but may, at Project Owner's discretion, consist of more units. Distribution shall be not less than six (6) two-bedroom units, ten (10) one-bedroom units, and two (2) studio units. A laundry facility will be provided for residents. - 11 - ./ e e B. ~~~ordabili~y. In light of the City's current shortage of housing that is affordable to persons of low and moderate incomes, and as a means of addressing any increase in the demand for such housing ~ssociated with the development of the project, Property Owner agrees to make the residential portion of the Project available to a mix of persons and families of very low, low, median and moderate incomes as follows: (i) Six (6) of the units shall be affordable and rented to persons and families with annual incomes of less than 50% of median income adjusted for family size. The rental formula for these units shall be as follows: Median Income as of date of initial Rental Agreement, without adjustment for famill size x 50% x Bedroom Adiustment ~ 25%. 12 (ii) Five (5) of the units shall be affordable and rented to persons and families with annual incomes of between 51% and 100% of median income, adjusted for family size. The monthly rental formula for these units shall be as follows: - 12 - .~ e e Median Income as of date of initial Rental Agreementl without adjustment for family size x 100% x Bedroom Adjustment x 25% 12 (iii) The remainder of the units shall be affordable and rented to persons and families with annual incomes of between 100% and 120% of median income, adjusted for family size. The monthly rental formula for these units shall be as follows: Median Income as of date of initial Rental Agreement, without adjustment for family size x 120% x Bedroom Adjustment x 25% 12 "Median income" for purposes of this Agreement is defined as the median household income for the County of Los Angeles as determined from time to time by the United States Department of Housing and Urban Development or any successor U.S. federal agency ("aUD") for the Standard Metropolitan Statistical Area in which Santa Monica is located, without adjustment for family size. As of the date of this Agreement, the City represents to Project OWner that median income is $ 27,400. The rental rates for existing tenants shall be adjusted annually by a percentage to reflect the percentage annual increase in median income. Attached hereto - 13 - /' --- e e and incorporated herein by reference as Exhibit "D" is a rental schedule for the affordable housing as of the date of this Agreement, which schedule indicates the current results of the formulas described above, based upon information furnished by the City. For purposes of this Agreement, "Bedroom Adjustmentft shall be defined to equal the following figures, dependent on the size of the unit in question: studio: .65~ 1 bedroom: .75~ 2 bedrooms: .9. After initial occupancy, Property OWner is not in breach of this condition if the income of a person or family increases during the period of occupancy. In addition, the rent for any unit may be set by Project Owner at the prevailing Section 8 Existing Fair Market Rent (as that or any successor formula is defined by HOD) for any tenant who is participating in said program for the duration of such participation. Residential tenants shall be responsible for payment of all utility costs. Project Owner may establish from time to time rules and regulations for the residential portion of the Project. - 14 - e e C. Verification of El1Sibility. property Owner shall maintain records demonstrating eligibility for housing pro- vided hereunder. The records shall be open for inspection and copying by the City during normal business hours of Property Owner. It is agreed by the parties that Project Owner shall be entitled to rely upon information submitted to it by actual or potential tenants. D. Leasing Agreement with the City. Prior to or concurrent with the issuance of the Certificate of Completion in accordance with Paragraph 14, below, the Project Owner may elect to enter into a master lease for the affordable housing units with the City, its housing authority or other agency acceptable to the City and Project Owner, pursuant to which the City shall lease as master lessor for a term up to forty (40) years the rental residential units at rental rates determined in accordance with subparagraph A, above, subject to adjustment as provided below. The master lease shall provide that Project Owner shall be responsible for normally expected maintenance of the residential units. Damage caused by any negligent or intentional act or omission of a sublessee or in excess of reasonable wear and tear shall be the obligation of the master lessee. Said master lease shall further provide that each sublessee of the City shall be bound by the rules and regulations established from time to - 15 - ~ '-- e e time by mutual agreement of the City and Project Owner, and in addition shall provide for adjustment of the rental rate by a percentage to reflect the percentage increase in median household income as determined by HUD for the Standard Metropolitan Statistical Area in which Santa Monica is located, without adjustment for family size. 10. Traffic and Baission Abatement. The Project shall include the following traffic and emission abatement measures: (1) Reduced parking rates for car-pools and van- pools. (2) Free bus tokens, purchased by Project Owner or its office tenants from the Santa Monica Municipal Bus Line ("S.M. Line.) and provided to all employees of such office tenants who li~e in the S.M. Line service area and who desire such tokens (.Office Bus Commuters"), to enable the Office Bus Commuters to travel between their residences and the Project on S.M. Line buses. Notwithstanding the foregoing, the aggregate cost of providing such tokens to all Office Bus Commuters shall not exceed Two Thousand Dollars ($2,000) per year, which aggregate cost may at the request of the City be increased at the end of each year by the lesser of the - 16 - e e percentage equal to the percentage that the average ride fare has been increased by the S.M. Line in the calendar year then concluded, or eight percent (8%). As used in this paragraph, the phrase ftaverage ride fare- shall be the average fare paid by riders of the S.M. Line, as calculated by the S.M. Line and disclosed to the public. (3) Readily available bicycle parking areas. (4) Such other measures as Property Owner determines will reduce the traffic impact of the Project. These traffic abatement measures will be initiated no later than upon occupancy of one-half (1/2) of the total gross square footage of the Project. 11. Bffect And Duration Of Covenants. The covenants provided for in this Agreement shall be binding on the party bound by their terms, and any successor in interest to that party, for the benefit and in favor of the other party and shall remain in effect until forty (40) years following the date of the issuance of the Certificate of Completion, except that the covenants contained in Paragraph 9 shall remain in effect for the - 17 - .E" ~-~ ....... e e longer of forty (40) years following the date of the issuance of the Certificate of Completion, or the life of the Project. 12. City's Approval of Project. By the adoption of the ordinance authorizing the City to enter into this Agreement, the City has approved the Basic Concept Drawings and Scope of Development and the commercial, office and residential uses for the Project as herein provided. Any provisions of the Santa Monica Municipal Code or any other rule or regulation adopted pursuant thereto, including but not limited to the City's zoning ordinances, which is inconsistent with the ,Project and/or its uses or is otherwise inconsistent with the provisions of this Agreement, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to permit development of the Project and furtherance of the pro- visions of this Agreement. 13. Project Approvals. Project Owner shall obtain and shall be required to obtain only the following City approvals before commencement of construction of the Project: A. City Permits. Before commencement of construction or development of any building, structure, or other work of improvement upon the Property, the Project Owner shall at its own expense, secure or cause to be secured the permits and approvals provided for in subparagraphs Band C, below. The - 18 - , y --- e e City shall provide all proper assistance to the Project Owner in securing these permits, including the issuance or waiver of such variances or permits as may be required to effectuate the Basic Concept Drawings, the Scope of Development and Site Map and to permit the uses specified by this Agreement. B. Architectural Review Board Approval. The Project Owner shall prepare and submit to the Architectural Review Board ("ARB") of the City of Santa Monica such drawings and specifications as are required by the rules and regulations of the ARB detailing the exterior architectural treatment of the Project. The approval of the ARB of the exterior archi- tectural treatment of the Project shall be required as a condition of any further approvals required by the City for the construction of the Project and shall be granted if such exterior architectural treatment is consistent with the Basic Concept Drawings. C. City Approval of Plans, Drawinqs and Related Documents. Following architectural approval by the ARB, the Project Owner shall prepare and submit construction drawings and related documents to the building department of the City. Approval of these construction drawings will be promptly granted by the building department if developed as a logical evolution of the Basic Concept Drawings and Scope of Development. Any item previously approved shall not be - 19 - /, e e subject to subsequent approval. Project Owner may apply and if so shall receive necessary permits incrementally, if each such permit covers activities which are a logical evolution of the Basic Concept Drawings and Scope of Development. If revisions or corrections may be required by the City or any other official, agency, department or bureau of the City having jurisdiction, the Project Owner and the City shall cooperate in efforts to obtain the waiver of such requirements or to develop a mutually acceptable alternative, but no revision or correction shall be" required if it would result in a material change, modification, revision or alter- ation of the Project. For the purposes of this Agreement a material change, modification, revision or alteration is one which does not constitute a logical evolution of the Basic Concept Drawings and Scope of Development. 14. ~iae por Construction And COmpletion of Project. A. Beginnin9 of Construction. Subject to extension pursuant to Paragraph 24 below, Property Owner agrees to begin construction of the Project within 18 months after the issuance of the building permit~ and further agrees not to demolish any existing improvements unless Project Owner is prepared to begin construction of the Project within 90 days - 20 - / ......... : e e thereafter. In the event Property Owner fails to begin construction within the period herein provided, and unless such failure is caused by the occurrence of one or more of the events described in Paragraph 24 below, this Agreement shall be automatically terminated and a hearing on the matter shall not be required; provided, however, that the City and Project Owner may agree to extend the Agreement by mutual written consent. B. Completion of Project. Property Owner agrees to diligently prosecute to completion the construction of the commercial portions of the Project and to complete such con- struction within two (2) years after the actual day con- struction begins, subject to extension pursuant to Paragraph 24 below. Project Owner shall apply for a certificate of occupancy for the residential housing described above not later than eighteen (18) months after the date of issuance of the Certificate of Occupancy for the commercial portions of the Project. 15. Certificate of co.pletion. The Project may be completed in two (2) phases: one consisting of the commercial portions of the Project (including the Community Uses) and the other con- sisting of the residential housing. Promptly after completion of each phase, the City shall provide the Property OWner with an - 21 - '- e e instrument certifying the completion of that phase. The entire Project shall be deemed complete within the meaning of this Agreement at such time as all areas within the Project are available for occupancy. The certification for both phases shall constitute a conclusive determination that the obligations of the Property Owner under this Agreement have been met: any failure to receive certification or defect thereof shall not be evidence that Property Owner has failed to meet its obligations here- under. Each certification shall be in such form as will enable it to be recorded in the Official Records of the Las Angeles County Recorder. The City further agrees that upon substantial completion of each phase of the Project, it shall cause a Certificate of Occupancy for the Project, or any phase thereof then completed, to be issued upon Property OWner's request, not- withstanding that leasehold improvements are still to be done as of the time of such request. 16. Subdivision Of Property. The City agrees to approve a parcel map or subdivision map for the Project, as may be appro- priate in accordance with applicable law, to divide the Project into various parcels as determined by project Owner. Project Owner shall prepare the necessary survey and tentative and final map through its engineer at Project Owner's expense. - 22 - c e tit 17. Effect Of Agreement On Land Use Regulations. The rules regulations and official policies governing permitted uses of the Property, the density of the Property, the design, improvement and construction standards and specifications applicable to development of the Property are and shall remain those rules, regulations and official policies in force as of September 7, 1982, except as otherwise provided herein. 18. Per iod ic Rev iew In Compliance Wi th Agreeaent. The Ci ty shall review this Agreement at least once every 12 month period from the date this Agreement is executed. During each periodic review by the City, the Property Owner may be required to demon- strate good faith compliance with the terms of the Agreement. 19. Amendment Or Cancellation Of Agreement. This Agreement, and any covenants contained herein, may be amended or cancelled in whole or in part only by mutual consent of the parties and any subsequently adopted ordinance, rule or regulation or any action by the City inconsistent with the provisions of this Agreementl to the extent of such inconsistency and no further, shall not be binding and is null and void upon the Property, the Project or Property Owner. 20. Enforcement. Unless amended or cancelled as provided for in Paragraph 18, this Agreement is enforceable by any party - 23 - e e to it notwithstanding a change in the applicable general or specific plan, zoning, subdivision or building regulations adopted by the City which alter or amend the rules, regulations or policies governing permitted uses of the land, density, design, improvement and construction standards_ and specifi- cations. In any litigation concerning this Agreement neither party hereto shall assert as a claim or defense the invalidity of this Agreement. 21. Subsequent Acts. This Agreement does not prevent the City in subsequent actions applicable to the Property from applying those new rules, regulations and policies the applica- bility of which to the Property is set forth in this Agreement. This Agreement does not prevent the City from denying or condi- tionally approving any subsequent development project application on the basis of existing or new rules, regulations and policies. 22. Events Of Default. Property Owner is in default under this Agreement upon the happening of one or more of the fOllowing events or conditions: (i) If the City determines upon the basis of sub- stantial evidence, and at a hearing at which Property Owner has the opportunity, upon adequate notice, to participate, that a warranty, representation or state- ment made or furnished by Property Owner to the City and - 24 - " / e e contained herein is false in any material respect or proves to have been false in any material respect when it was made; or (ii) If the City determines upon the basis of sub- stantial evidence, and at a hearing at which Property Owner has the opportunity, upon adequate notice, to participate, that the property Owner has not complied in good faith with one or more of the terms or conditions of this Agreement. 23. Procedure Upon Default. (i) Upon the occurrence of an event of default, the City may declare Property Owner to be in default and may enforce or terminate this Agreement in accordance with applicable procedures. Prior to any declaration of default, written notice must be given to Property Owner of the nature of such default and Property Owner shall have ninety (90) days to cure said default; provided that, if Property Owner can not cure within such period, then Property OWner shall not be deemed in default if it commences to cure within such ninety (90) day period and thereafter diligently completes the same. Opon the occurrence of an event of default on the part of the City, and prior to Property Owner insti- tuting any action to enforce the Agreement, Property - 25 - 1/ - "'-..- e e Owner shall give written notice to City of the nature of such default and City shall have ninety (90) days to cure said default. (ii) An express repudiation, refusal or renun- ciation of this Agreement, if the same is in writing and signed by the Property Owner, shall at the sole dis- cretion of the City be sufficient to terminate the Agreement and a hearing on the matter shall not be required. (iii) All other remedies at law or in equity which are not otherwise provided for in the Agreement or in the City.s regulations governing development agreements are available to the parties to pursue in the event there is a breach. 24. Notice Of Teraination. Upon any termination of this Agreement, the parties hereto shall execute an appropriate notice of termination suitable for recording in the official records of Los Angeles County. 25. Enforced De1ay; Bxtension Of "riaes of Performance. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war~ insurrections; strikes; lock- outs; riots; floods: earthquakes; fires; casualties; acts of God: - 26 - '- e e acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restric- tions or priority (other than that governmental restrictions or priorities of the City shall not excuse the City); unusually severe weather; inability to secure necessary labor, materials and tools; delays of any contractor, subcontractor or supplier; acts of the other party; acts or failure to act of the City or any other public or governmental entity (other than that acts or failure to act of the City shall not excuse the City) or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any such caUSe shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by mutual agreement of City and the Project Owner. 26. Attorneys' Pees And Costs. If legal action by either party is brought because of breach of this Agreement or to enforce a provision of this Agreement, the prevailing party is entitled to reasonable attorneys' fees and court costs. Such fees and costs shall be payable regardless of whether said action is prosecuted to final judgment. - 27 - '--- e e 27. Bold Barmless. Property Owner agrees to and shall hold the City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury including death and claims for property damage which may arise from the direct or indirect operation of the Property Owner or those of its contractor, subcontractor, agent, employee or other person acting on its behalf which relate to the Project, except that this sentence shall not apply 1) where such liability or c~aim shall arise in connection with the residential housing, if the City shall be the master lessee thereof, or 2) where such liability or claim shall arise in connection with the actual or alleged negligence of the City, its officers, agents, employees or representatives. Property Owner agrees to and shall defend the City, and its officers, agents, employees and repre- sentatives from actions for damages caused or alleged to have been caused by reason of Property Owner's activities in con- nection with the Project, as limited above. This hold harmless agreement applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this paragraph, regard- less of whether or not the City prepared, supplied, or approved plans or specifications or both for the Project. - 28 - /> : '"-- e e The City agrees to provide a defense for Property Owner in any action challenging the legality of this development agree- ment. In the event any such action shall successfully challenge the legality of this Agreement, the City agrees to indemnify, hold harmless, and pay all costs, including reasonable attorneyfs fees, of the Project Owner incurred in connection with any such action, and to enter into a new development agreement or other official approval of the Project by the City with Project Owner immediately after such challenge, incorporating the terms and provisions of this Development Agreement, with those modifications required by such successful challenge. The City agrees to and shall hold harmless and defend Property Owner from and against any and all liability from claims arising out of the negligence of the City, 1tS officers, agents, employees or representatives. 28. Energy Conservation. The Project will comply with all provisions of California Title 24 Energy Regulations, and will include as a minimum the following features: A. Solar Heatin9. Solar panels, roof mounted, will provide domestic water heating. B. Operable Windows. Operable windows will be provided in office and residential areas. - 29 - ~< ,- , e e c. Other Enerqy Considerations. As an affirmative method of conserving energy, all energy used by each residential occupancy unit shall be separately metered to and paid for by the user of any such unit. 29. Insurance. Property Owner shall maintain public liability insurance throughout the term of this Agreement in amounts reasonably calculated by Property Owner to be sufficient for the size of the Project: however, during the course of con- struction such public liability insurance may be supplied by Project Owner's contractor or other agent. The insurance shall extend to the City, its elective and appointive boards, commissions, officers, agents, employees and representatives and - to Property Owner and each contractor and subcontractor per- forming work on the Project. Property Owner shall furnish to the City prior to the commencement of construction of the Project satisfactory evidence that such insurance is in force. The insurance shall provide coverage for claims and damage arising out of the operations referred to in Paragraph 26 of this Agreement. 30. Subordination; Attornaent. The City agrees that the breach of any of the covenants or restrictions contained in this Agreement shall not defeat nor render invalid the lien of any mortgage or deed of trust which is a lien upon the Property, or any portion thereof, to which lien(s) the City agrees to sub- - 30 - /-:: /f - e e ordinate its interest. In addition, the City agrees that it shall execute, acknowledge and deliver, if requested so to do by a responsible financial or lending institution, confirmations and instruments of further assurance and attornment should such responsible financial or lending institution request the City to do so as a condition to the granting of any mortgage or deed of trust financing of the Property for construction of the Project improvements or permanent financing of the Project. In the event that the City does not so act within ten (10) days after a re- quest to act by such responsible financial or lending institu- tion, the City irrevocably appoints Project Owner as the City's special attorney-in-fact to execute such documents and deliver the same in the City's name, place and stead. 31. Notices. All written notices and demands of any kind which either party may be required or may desire to serve on the other in connection with the Agreement may be served as an alter- native to personal service by registered or certified mail. Any such notices or demands so served by registered or certified mail shall be deposited in the United States Mail, with postage there- on fully prepaid, addressed to the party so to be served and delivered to the party so to be served and delivered to the party if not by personal service, as follows: - 31 - e To Project Owner: With a copy to: To City: With a copy to: e 2701 Ocean Park Corporation c/o Juniper Properties 80S West Duarte Road Suite 108 Arcadia, California 91006 Morgan, Lewis & Bockius 611 West Sixth Street Twenty-third Floor Los Angeles, California 90017 Attn: C. Richard Allen, Esq. City Manager City of Santa Monica 1685 Main Street Santa Monica, California 90401 City Attorney City of Santa Monica 1685 Main Street Santa Monica, California 90401 Service of any such notice or demand so made by mail shall be deemed complete on the date of actual delivery as shown by the addressee's registery or certification receipt or at the expiration of the fifth day after the date of mailing, whichever is earlier in time. Any party hereto may, from time to time by notice in writing served upon the other parties as aforesaid, designate a different mailing address or a different person to whom all such notices or demands are thereafter to be addressed. 32. Beadings. The titles and headings of the various paragraphs hereof are intended solely for convenience of reference and are not intended for any purpose whatsoever to explain, modify or place any construction upon any of the provisions of this Agreement. - 32 - .~ e e 33. Assignment. This Agreement shall not be severable from Property Owner's interest in the Project. Any transfer of the Project shall automatically operate to transfer the benefits and burdens of this Agreement. Property OWner may freely sell, transfer, exchange or otherwise dispose of its interest in the Project without the consent of the City. 34. Agreement. This Agreement constitutes the entire Agreement between the parties hereto with respect to the subject matter hereof and may not be modified, amended or otherwise changed in any manner except by mutual consent of the parties in accordance with the procedures for adoption of a development agreement. If a part of this Agreement is held to be invalid, the remainder of the Agreement is not modified or rendered invalid. 35. Governing Lav. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 36. Duration of Agreement. This Agreement shall expire on September 7, 2022. After expiration or full satisfaction the parties shall execute an appropriate certificate of termination which shall be recorded in the official records of LOS Angeles County. - 33 - , / e e 37. Recording of Agreement. The parties hereto shall cause this Agreement to be recorded in the official records of the County of Los Angeles. IN WITNESS w~REOP, this Agreement has been executed by the parties as of the day and year first above written. CITY OF SANTA MONICA Approved as to form: By: n-/~-{/~i t- ',,,,,,...~_ CITY ATTORNEY FOR:THE CITY OF SANTA MON~ By: e. /fduJ r4~ ATT~~Y FOR PROJECT OWNER FOr! N.07.JaJ</ LeJ.o?;~ t 5~;"- 'i 2701 _OCEAN PARK CORPORATION, a California corporation / II / / / /.......... By: (_ -!';<,// / ,...__,r~_r"~ ............. 01 ... Gene Koon Secretary - 34 - / e e EXHIBIT' -A- Description of Real Property Tract No. 4 of the allotment of Andres Jose Antonio Rafael and Cristobal in Assessor's records 386.955 ACS. - 35 - // I -- - -~ - - ~- .. -..~ --. I EXHIBIT lIBII I . I I . I . I\, i I ! ! I I i I ; I I '. 2 a t III lII,. 2 a ~ < > ~ .. . a :1 'z o j:. < ). .. .J ill . ,..' i2~ '0' Ill: ' l".i - 35a - - N....ao .Q~. 1ll11tO:J =- ~... EJNIC'lnll i . I . i I , ~ . I aOI....o 1 N I I I I ! I i ! I B i I ) [ B . . . i , I , ~ ;1. i I .~ Iii r 3 I; 9 'K. ~ iD~ ;~~ l~Jn~ - [i~d IE:L~a t. (,tiKlB . -j.;j;"hd . 'cthi ~;:; ~~~ ~~N~tl. Cd~~~ ~~ O~rl _ ."' > ( 1:::' ~ . ';r;1;f ~D 3lnlU:::~" ~V:--.l .-5A"V 3.-U :jLJ SH ,~-V'_ lJ'\! I , --------- .;,. i - 1"- .. ""...- ~~ I ... . .... DNla"1ln. .cl....a -1- "11 N_ rr ~ . . i I i I . I -;.,or ....,.--- .. . I i I I " ......i-l I ~'"~ I I I ';1-'. . I I I I I . I I ,{"~" 1 . . ,..~:: ~ S d I I r i rJ - . t ~ I - -I::!ll . , , -- fWl rT! I 11 . ~ 'I g I" I I I ~ ~ fitl I I ,"~ . I I ;~ I 1 I I . s I .1 I I I LLJ I I " i ~ ~ . lL ""~ l . :'~jJ. D , . !a. II. I y -. lt~ ' L..J ,15 -:;.-' ,- ......" I-~ , - 35b - "J.' ~- - , U"g~~ ~a fCt"~1 :; t;D"t;CG 1;-;;;;,:;o,j'H;~r -"RF - W:J-INOW ,.,.J.N"W9 . ... J:nnCll ::ndWA,a cc~ al:.-HlH:m,; 1d iiHHlEJKJ\;::"tb'"VJ,; ~~UB ~VJ~ 5..l:J3.lJH:Jt:I"tt' I A>fZL3t:1C^CJ "S Nn.1."tt'W .. .....- . . ~ -I II t : ~I . ~ II o ! }! I 11~ ~ '. ~ ~I l2 "*1 ,., ..". ...... ~. I - 35c - "" o IfJ ,.. I- N ;2 :2' oJ Ii ( C t: oJ Z II III III C Y iii IL ~I~ -- _________ __ '- I J_..._____ 'IIf' Ii It D U ~ 0: C( a. Z ( III U o "\ I t...a-~;;;iIla;;l 'I . ~c;..;:;a V i:W::l, < ",hi ~..... .LN1II.' CId"W\3'1flI[]B1 ::J'IIa .ICI~ :;..,Th'-r".I.... "\-'"l ~ I - I, -:....1 't:.< ~~ f ~~~r' ..,. f- C"'.1::.} Ls......I::'HV -::JO =:Ill11uS:.....1 ~~-....:::::Y-..v::::p.... ~1::J fIH ~'L"'-^':J:!'J ~3.LIH::Jt:lV'~ZJ.3l::::iCJ\Cl ":9 !'In..L'tllU .... ;1 EB IJ . ' -~ - Iml ~ ~~ I ~, ".'!o- I ~, i ----" . tl ~ 8 I ~ II: C[ CI 2 C[ ~ II Z ~ II: - ! ~ m . :J . ~ I ~ I m ~ ? --+ :~I ~ '" ' - - lQJ - 35d - - I .~ ..",_a ~~ IDNIO,ln. .01....0 C") .... ff I L llJ~ --~ ll'f.f:~' "1 1 I . . ~ e e EXHIBIT .C. Scope of Development I. General Description. The site is comprised of that certain real property located on Ocean Park Boulevard, immediately southwest of 28th Street in Santa Monica, California and which is legally described in Exhibit "An. The site contains approximately 65,000 square feet and is zoned C-2. The site shall be designed and developed according to the fOllowing development standards: A. Heiqht. The Project will consist of two wings, each approximately thirty-four feet above average natural grade on the north side and thirty-seven feet above average natural grade on the south side. Such height shall not include solar panel installation, elevator or access stair and is measured to the top of the roof. B. Gross Area. Total gross building interior area will be approximately 124,000 square feet, which shall not include garage, ramps or loading areas. c. Desiqn. The architectural design shall be consistent with the Basic Concept Drawings, and incorporates a landscaped open - 36 - e e atrium for each wing of the Project. The Project's interior design blends commercial and residential uses, particularly by means of a common lobby, while maintaining separation for the purpose of attempting to ensure security and appro- priately differing ambiences. The residential units will have balconies, operable windows and vented skylights to maximize an open-air atmosphere. The corridor servicing the residental units also shall be open-air. Landscaping will be integrated in the design. D. Energy. Effort will be made to design and construct the Project for energy efficiency. Hot water will be provided from solar panels. Electricity will be sub- metered to promote self-discipline to conserve energy. Air conditioning will be optional, at the discretion of the individual tenant and at his expense. The use of operable windows and doors to terraces may preclude any major use of mechanical air conditioning. Vented skylights will be provided in the bathrooms and kitchens of the residential units. E. Parcel Coverage. Not more than seventy percent (70%) of the site shall be occupied by buildings and structures, excluding, however, from this calculation garage, ramps and loading areas. - 37 - e e F. Building Setbacks. BUilding setbacks shall be in conformance with the City's Municipal Code and any variance as may be granted by the City. G. Building Construction. Building shall be constructed in conformance with the City's Municipal Code~ Type 5 construction standards will prevail. B. Signs. A sign program in keeping with the architectural style of the Project shall be developed in accordance with Architectural Review Board guidelines. I. Landscaping. Landscaping and an irrigation system shall be provided within the site subject to Architectural Review Board approvals, and shall include, wherever possible, landscaping visible at the exterior of each floor in the front and back of the Project. Landscaping will permit direct pedestrian access to the Community Uses shops. J. Vehicular Access. Vehicular driveways shall be coordinated with the Traffic Department and shall be located in a manner consistent with the Basic Concept Drawings. K. Loadinq and Unloadinq. Loading areas shall be provided as required by the City in a manner consistent with the Basic Concept Drawings. - 38 - / e e L. Parking. On-site parking for the Project shall include spaces for not less than 375 cars on three subterranean levels and shall include tandem as well as single spaces. Each residential unit will have one assigned parking space in the Project, provided without cost to the residential tenant. M. Access for Disabled Persons. Each area of the Project shall be accessible to disabled persons as required by the City's Municipal Code and applicable Cali;ornia law. N. Security. Security personnel retained by the Project shall be instructed to patrol the exterior of the Project, as well as the interior. The current wall immediately to the north of the Project shall be increased to approximately six (6) feet in height, upon permission of the applicable property owners, and restrictive landscaping shall be provided immediately to the south of such wall. O. Public Works. Property Owner shall cause the fOllowing actions to be taken prior to the issuance of the final certificate of occupancy issued in connection with the Project, each action to be taken in accordance with the reasonable specifications and requirements of the General Service Department of the City: - 39 - e e (1) All wires for electrical and telephone service currently above ground on the north side of Ocean Park Boulevard shall be routed underground for the entire Ocean Park Boulevard street frontage of the Project~ (2) One (1) fire hydrant shall be provided in the area between Ocean Park Boulevard and the project~ (3) There shall be three (3) underground serviced street lights between Ocean Park Boulevard and the Project, equally spaced along that street frontage of the Project~ (4) All standard water and sewage connection fees shall be paid; and (5) Property Owner shall pay to the City the amount of $10,000, which funds the City covenants it will use within sixty (60) days of their receipt for installation or improvement of traffic signals on Ocean Park Boulevard between 20th Street and 30th Street, with the aim of further mitigating the impact of the vehicular traffic generated by the Project; provided, that Property Owner's total cost hereunder shall not exceed $110,000. In addition, Property Owner agrees that upon the request of City made at any time during a one-year period commencing with the issuance of the final certificate of occupancy issued in connection with the Project, Property Owner shall - 40 - e e cause the median barrier on Ocean Park Boulevard to be altered in the area immediately opposite one of the vehicular exits from the Project, to permit vehicular traffic exiting from the Project to travel north-easterly on Ocean Park Boulevard. Such alteration shall be accomplished pursuant to normal City requirements and standards. Notwithstanding the foregoing, in no event shall Property Owner's total costs in connection with this paragraph exceed $10,000. P. Prevailing Rates. Workers employed on the Project shall be paid at not less than the prevailing rates of wages and employee benefit costs for work of a similar character in Los Angeles County. The prevailing rates shall be deemed to be those rates paid"under construction industry collective bargaining agreements generally applicable to comparable projects. Notwithstanding the foregoing, the requirements of this section shall be satisfied if the work on the Project is performed subject to a collective bargaining agreement and if the workers are paid in accordance with the terms of that agreement. - 41 - /, e e EXBIBI"l' wn- RENTAL SU::usDOLB AS OP APRIL If' 1982 A. Six very low units: Two Studios $ 185.52/each y Three 1 Bedrooms $ 214.06/each One 2 Bedrooms $ 256.88/each B. Five median units: Four 1 Bedrooms $ 428.13/each One 2 Bedrooms $ 5l3.75jeach C. Seven moderate units: Three 1 Bedrooms $ 513. 75jeach Four 2 Bedrooms $ 616.50jeach Security Deposits: project Owner shall be entitled to require each tenant to deposit with Project Owner a security deposit not in excess of one monthJs rent. Said security deposits shall be placed in an interest bearing account at an institution whose accounts are insured by the Federal Savings and Loan Insurance Corporation until such time as the security deposit and any interest thereon is returned to the tenant or entitled to be used by Project Owner in accordance with Civil Code S 50.5. .!/ All residential tenants shall be directly responsible for the payment of utility costs. The rent shown is Wnetn to the Project Owner. - 42 - j/