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SR-8-A (118)~-~ FEB 2 2 1994 CA:atty\muni\strpts\subtpkg City Council Meeting 2-22-94 Santa Monica, California STAFF REPORT TO: Mayor and City Council FROM: City Attorney SUBJECT: Ordinance Approving Development Agreement 92-001 to Permit an 11,800 sq. ft., Mixed Use Commercial Development with Two Levels of Subterranean Parking Located at 1602 Ocean Avenue At its meetinq on January 24, 1994, the City Council introduced for first reading an ordinance approving development agreement 92-001 with proposed modifications to permit an 11,800 square foot, mixed use commercial development with two levels of subterranean parking located at 1602 Ocean Avenue. The ordinance is now presented to the City Council for adoption. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be adopted. PREPARED BY: Joseph Lawrence, Acting City Attorney Barry A. Rosenbaum, Deputy City Attorney ~-~22~ ~- R DEVELAPMENT AGREEMENT TABL$ OF CONTENTB PAGE 1. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . 4 1.1 Agreement . . . . . . . . . . . . . . . . . . . . . 5 1.2 Development Fees . . . . . . . . . . . . . . . . . 5 1.3 Effective Date . . . . . . . . . . . . . . . . 5 1.4 Governing Regulations . . . . . . . . . . . . . . . 5 1.5 Incidental Food Use . . . . . . . . . . . . . . . . 6 1.6 Land Use Plan . . . . . . . . . . . . . . . . . . . 7 1.7 Owner . . . . . . . . . . . . . . . . • . 7 1.8 Processing and Permit Fees . . . . . . . . . . . . 8 1. 9 Proj ect . . . . . . . . . . . . . . . . . . . . 8 1.10 Project Site . . . . . . . . . . . . . . . . 8 1.11 Project Site and Architectural Plans ...... . 8 1.12 Snack Shop . . . . . . . . . . . . . . . . . . . 8 1.13 Tandem Parking . . . . . . . . . . . . . . . . . . 8 1.14 Zoning Administrator . . . . . . . . . . . . . . . 8 1.15 Zoning Ordinance . . . . . . . . . . . . . . . . . 9 2. DESCRIPTION OF PROPERTY . . . . . . . . . . . . . . . . 9 3. DESCRIPTION OF PROJECT . . . . . . . . . . . . . . . 9 3.1 Project Site and Architectural Plans ...... . 9 3.2 Maximum Floor Area Ratio (FAR) . . . . . . . . . . 11 3.3 Building Height . . . . . . . . . . . . . . . . . . il 3.4 Minimum Setbacks . . . . . . . . . . . . . . . . . 12 3.5 Landscaping . . . . . . . . . . . . . . . . . . . . 13 3.6 Parking . . . . . . . . . . . . . . . 14 3.7 Demolition of Fish Market Building ....... . 18 3.8 Lobster Building . . . . . . . . . . . . 18 3.9 Administrative and Technical Construction Codes . . 21 3.10 Signage . . . . . . . . . . . . . . . 21 3.11 Construction Mitigation Plan . . . . . . . . . . . 22 3.12 Recycling Plan . . . . . . . . . . . . . . . . . . 24 3.13 Security Plan . . . . . . . . . . . . . . . . . . . 25 4. USES . . . . . . . . . . . . . . . . . . . . . . . . . 25 4.1 Permitted Uses . . . . . . . . . . . . . . 25 4.2 Amount of Floor Area Devoted to Categories of Uses . . . . . . . . . . . . . . . . . . 29 4.3 Sale and Consumption of Alcoholic Beverages ... . 30 4.4 Owner's Support For Pier Activities ....... . 31 5. STANDARD AND SUPPLEMENTAL PROJECT MITIGATZON MEASURES . 32 5.1 Water Demand Mitigation Fee . . . . . . . . . . . . 33 5.2 Sewer Connection Fee . . . . . . . . . . . . . . . 33 5.3 Transportation Impact Fee . . . . . . . . . . . . . 33 5.4 Water Meter Fee . . . . . . . . . . . . . . . 33 5.5 Housing and Parks Impact Mitigation Fee ..... . 33 5.6 Pier Promotional Fund . . . . . . . . . . . . . . . 34 5.7 Street Dedication . . . . . . . . . . . . . . 34 5.8 Pedestrian Connection Bridge . . . . . . . . . . . 35 1 Revised: 2/77/94-4LDAB77.848 5.9 Potential Modification of Colorado Avenue ... .. 36 5.10 Public Access To Designated Areas In Project . .. 37 5.11 Off-Site Improvements . . . . . . . . . . . . 38 5.12 No Additional Mitigations . . . . . . . . . . 38 6. COMMENCEMENT OF CONSTRUCTION . . . . . . . . . . . . . . 38 6.1 Pursuit of Construction . . . . . . . . . . . . . . 38 6.2 Extension For Excusable Delays . . . . . . . . . . 39 6.3 Lack of Financing . . . . . . . . . . . . . . . . . 40 7. MINOR CHANGES TO PROJECT AND PROJECT SITE PLAN ... .. 40 8. ASSIGNMENT; BINDING EFFECT . . . . . . . . . . . . . . . 41 9. RELEASE UPON TRANSFER . . . . . . . . . . . . . . . . . 42 10. EFFECT OF AGREEMENT ON LAND USE REGULATIONS .... .. 43 10.1 Application of Governing Regulations ..... .. 43 10.2 Processing and Permit Fees . . . . . . . . . . . . 44 10.3 Inconsistent Code Provisions . . . . . . . . . . . 44 11. ARCHITECTURAL REVIEW . . . . . . . . . . . . . . . . . . 45 11.1 Purpose . . . . . . . . . . . . . . . . . . . . . . 45 11.2 Authority . . . . . . . . . . . . . . . . . . . . . 45 11.3 Special Concerns . . . . . . . . . . . . . . . . . 46 11.4 Finishing Materials . . . . . . . . . . . . . . . . 47 11.5 Limitations . . . . . . . . . . . . . . . . . . . . 47 12. SPECIAL ASSESSMENTS . . . . . . . . . . . . . . . . . . 47 13. CERTIFICATES OF OCCUPANCY . . . . . . . . . . . . . . . 48 14. PROMPT REVIEW AND ISSUANCE OF NECESSARY PERMITS AND APPROVALS . . . . . . . . . . . . . . . . . . . . . . . 48 15. PERIODIC REVIEW OF COMPLIANCE WITH AGREEMENT ... ... 48 15.1 City Review . . . . . . . . . . . . . . . . . . 48 15.2 Required Findings . . . . . . . . . . . . . . . . . 48 15.3 Public Hearing . . . . . . . . . . . . . . . . . . 49 16. ENFORCEMENT . . . . . . . . . . . . . . . . . . . . . . 51 17. VALIDITY OF AGREEMENT . . . . . . . . . . . . . . . . . 51 18. DEFAULT . . . . . . . . . . . . . . . . . . . . . . 51 18.1 Owner Defaults . . . . . . . . . . . . . . . . . . 51 18.2 City Defaults . . . . . . . . . . . . . . . . . . . 52 19. PROCEDURE UPON DEFAULT . . . . . . . . . . . . . . . . . 53 19.1 Termination by City . . . . . . . . . . . . . . . . 53 19.2 Termination by Owner . . . . . . . . . . . . . . . 53 19.3 Remedies Cumulative . . . . . . . . . . 54 19.4 Cessation of Rights and Obligations ..... ... 54 ii Revised: 2/17/94-4LDAB17.848 20. NOTICE OF TERMINATION . . . . . . . . . . . . . . . . . 55 21. MORTGAGEES . . . . . . . . . . . . . . . . . . . . . . . 55 21.1 Notice to Mortgagee . . . . . . . . . . . . . . . 55 21.2 Cure of Default by Mortgagee . . . . . . . . . . . 56 21.3 Extension of Time to Cure . . . . . . . . . . . . . 57 21.4 Liability of Mortgagee . . . . . . . . . . . . . . 57 21.5 Mortgagee . . . . . . . . . . . . . . . . . . . . . 58 22. DURATION OF AGREEMENT . . . . . . . . . . . . . . . . . 58 23. IMPAIRMENT BY SUBSEQUENT LAWS . . . . . . . . . . . . . 58 24. ESTOPPEL CERTIFICATE . . . . . . . . . . . . . . . . . . 59 25. RECORDING OF AGREEMENT . . . . . . . . . . . . . . . . . 59 26. NOTICES . . . . . . . . . . . . . . . . . . . . . . . . 60 27. HOLD HARMLESS . . . . . . . . . . . . . . . . . . . . . 61 28. ENTIRE AGREEMENT . . . . . . . . . . . . . . . . . . . . 62 29. NO ORAL MODIFICATION . . . . . . . . . . . . . . . . . . 62 30. TABLE OF CONTENTS AND SECTION HEADINGS ..... .... 62 31. NO PARTNERSHIP OR JOINT VENTURE . . . . . . . . . . . . 62 32. ATTORNEYS' FEES . . . . . . . . . . . . . . . . . . . . 63 33. EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . 63 34. CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . . 63 35. GOVERNING LAW . . . . . . . . . . . . . . . . . . . . . 63 36. COUNTERPARTS . . . . . . . . . . . . . . . . . . . . . . 63 37. BINDING EFFECT . . . . . . . . . . . . . . . . . . . . . 64 38. AGREEMENT TO COOPERATE . . . . . . . . . . . . . . . . . 64 39. NO THIRD PARTY BENEFICIARY . . . . . . . . . . . . . . . 64 40. COOPERATION IN PROVIDING ASSURANCES . . . . . . . . . . 64 41. CONTINGENCY . . . . . . . . . . . . . . . . . . . . . . 64 111 Revised: 2/77/94-41DAB77.848 42. PURCHASE AND SALE OF TARGET PROPERTY . . . . . . . . . . 65 42.1 Description of Target Property . . . . . . . . . . 65 42.2 Necessary City Findings . . . . . . . . . . . . . . 65 42.3 Purchase Price . . . . . . . . . . . . . . . . . . 66 42.4 Title Insurance . . . . . . . . . . . . . . . . . . 66 43. CITY VACATION OF UNUSED UTILITY EASEMENTS BENEATH PROPERTY . . . . . . . . . . . . . . . . . . . . . . . . 67 iv Revised: 2/77/94-4LDAB17.848 DEVEIAPMENT AGREEMENT THIS DEVEIAPMENT AGREEMENT ("Agreement"), dated for reference purposes , 1994, between JOHN B. KILBANE & ASSOCIATES, INC., a California Corporation, and MYRON L. NATHAN and IARRAINE NATHAN, (collectively "Owner") on the one hand, and the CITY OF SANTA MONICA, a municipal corporation organized and existing pursuant to the laws of the State of California and the Charter of the City of Santa Monica, ("City") on the other hand, is made with reference to the following facts: R E C I T A L 5: A. Pursuant to California Government Code Sections 65864, et seq. and Santa Monica Municipal Code Sections 9.48.010, et seq., the City is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property. B. Owner owns that certain real property (~~Property") commonly known as 1602 Ocean Avenue and 48 Colorado Avenue, in Santa Monica, California. The Property consists of approximately 14,553 square feet of land, as more particularly described in Exhibit "A'~ attached hereto and incorporated herein by this reference. 1 Revised: 2/17/94-4LDAB17.848 C. Concurrent with the City~s review of this Agreement, City has initiated, or will shortly initiate, procedures to vacate 800 square feet of an alley ("Alley Property") which dead-ends at the Property, as more particularly described in Exhibit "B" attached hereto and incorporated herein by this reference. As provided in Section 41 below, this Agreement is contingent on the City's vacation of the Alley Property, which action City shall have a good faith obligation to initiate and pursue. D. If and when such vacation is completed, title to the northeasterly half of the Alley Property, which half consists of 400 square feet of land, will automatically revert to Owner because Owner holds title to the Property, which is located immediately to the northeast of the Alley Property. The southwesterly half of the Alley Property will automatically revert to City because City owns the small triangular portion of land immediately to the southwest ("Triangular Property") and more particularly described in Exhibit "C" attached hereto and incorporated by this reference herein. The Triangular Property consists of approximately 347 square feet of land. The City's interest in half of the Alley Property, together with the Triangular Property, shall be sold to Owner and Owner shall purchase the same as described in Section 42 of this Agreement. The Alley Property and the Triangular Property shall collectively be referred to in this Agreement as "the Additional Property" and consists of approximately 1,147 square feet. 2 Revised: 2/17/94-4LDA877.848 E. On August 13, 1992, Owner filed with the City an Application for Development Agreement ("Development Agreement Application") pursuant to Santa Monica Municipal Code Sections 9.48.010, et seq. for the development of a one and two-story mixed- use commercial project ("Project") having an approximate floor area ratio of 0.75, and consisting generally of four buildings to be used for restaurants, general retail, and general and specialty office uses, over a subterranean parking garage. The Development Agreement Application, designated as Application No. DA 92-001, was deemed complete by operation of law on September 14, 1992. F. The City Council has determined that a development agreement is appropriate for the proposed development of the Property and Additional Property ("Project Site"). A development agreement is reasonably necessary to facilitate preservation of the existing Lobster Restaurant building ("the Lobster"J, which the City Council believes is of substantial historical value and interest. The Lobster was constructed prior to 1930 and is uniquely located immediately adjacent to the Santa Monica Pier sign and in close proximity to the Santa Monica Pier. Both the Santa Monica Pier sign and the Santa Monica Pier have been designated as landmarks by the City in accordance with Santa Monica Municipal Code Sections 9.36.010, et seq. A development agreement is also reasonably necessary to facilitate certain modifications of the development standards otherwise applicable to the Project Site to insure that the Project Site is developed in a manner which is compatible with its surroundings including the Santa Monica Pier 3 Revised: 2/77/94-4LDAB17.848 sign, the Santa Monica Pier Bridge, and the Santa Monica Pier. The Development Agreement further provides City and the general public with certain public improvements at Owner's cost and expense, to Colorado Avenue and the Santa Monica Pier Bridge as more specifically described below. G. Owner has paid all necessary costs and fees associated with the City's processing of the Development Agreement Application and this Agreement. H. The City has complied with all procedures required by Government Code Sections 65864, et seq. and Santa Monica Municipal Code Sections 9.48.010, et seq., regarding the processing of the Development Agreement Application and this Agreement. I. By entering into this Agreement the City acknowledges that it shall receive substantial benefits conferred as a result of development of the Project Site in accordance with the terms, conditions and obligations of this Agreement. NOW THEREFORE, in consideration for the covenants and conditions hereinafter set forth, the parties hereto do hereby agree as follows: 1. DEFINITIONS. For purposes of this Agreement, the following terms and phrases in this Section 1 shall be interpreted as hereinafter defined, unless the context clearly indicates a 4 Revised: 2/17/94-4LDAB17.848 contrary intent of the parties. Except as defined in this Section 1, or as otherwise defined in this Agreement, all terms used herein shall be construed in accordance with the definition of the term as set forth in the Zoning Ordinance. 1.1 Aqreement: This Development Agreement entered into between the City and Owner as of the Effective Date. 1.2 Development Fees: Any fee required by the City which is authorized by City ordinances, policies and standards in effect at the time the City approves and enters into this Agreement and which is intended to mitigate any impact the Project may have upon any public facility. This includes the Water Meter Fee (if applicable), the Water Demand Mitigation Fee, the Sewer Connection Fee, and the Transportation Impact Fee. 1.3 Effective Date: Thirty (30) days after the date this Development Agreement is adopted by ordinance on second reading by the City Council. 1.4 Governinq Regulations: Unless otherwise specifically stated in this Agreement, the City's current General Plan and any and all other duly adopted codes, ordinances, rules, regulations and official policies of the City governing or affecting development, density, height, permitted uses, intensity of uses and improvements which are in force and effect in the City of Santa 5 Revised: 2/17/94-4LDA817.848 Monica as of the Effective Date of this Agreement, shall govern the development and use of the Project Site. 1.5 Incidental Food Use: For purposes of this Agreement, the tenn "Incidental Food Use" shall be a use which satisfies all of the following criteria: 1.5(a) An Incidental Food Use shall mean any building, room, space or portion thereof in the Project where food is sold at retail and where less than 250 square feet (including interior and exterior) of floor area is utilized for on-site consumption of any food or beverage, including seating, counter space or other eating arrangement. 1.5(b) The primary use of a premises used as an incidental Food Use shall not be the on-site consumption of ineals. A restaurant, or Snack Shop as defined in Section 4.1(c), shall not be deemed to be an Incidental Food Use. 1.5(c) There must a primary use of the premises to which the on-site food service and consumption are incidental. For example, a bakery, candy store, ice cream or yoghurt shop, or deli may have on-site consumption which is incidental to primary retail sales. 1.5(d) The calculation of seating area for any Incidental Food Use shall include not just the floor area occupied 6 Revised: 2/17/94-4LDAB17.848 by seats and tables, but a reasonable circulation area around the seats and tables, yielding a minimum presumed seating area of 10 square feet per seat. 1.5(e) The maximum permitted seating area shall be physically defined with fences, counters, railing, or other similar physical barriers. In the absence of such defining physical elements, all of the customer area in the premises shall be included when calculating the maximum 250 square feet seating area. 1.5(f) To the extent any outdoor seating is contemplated for the Incidental Food Use, one parking space shall be required for each 300 square feet of outdoor seating area. Fractions of required parking spaces shall be rounded up to the nearest whole number if the fraction equals or exceeds one-half (1/2) space. 1.6 Land Use Plan: The Land IIse Plan, to the extent it has been approved by the California Coastal Commission and adopted by the City in accordance with Public Resources Code Section 30512. 1.7 Owner: John B. Kilbane & Associates, Inc., a California corporation, and Myron L. Nathan and Lorraine Nathan, and any and all successors and assigns thereto. 7 Revised: 2/77/94-4LDAB17.848 1.8 Processina and Permit Fees: Any fee required by the City to reimburse the City for the cost of processing any applications relating to the Project. Processing and Permit Fees do not include Development Fees as defined above at Section 1.2. 1.9 Pro~ect: The proposed development of the Property and Additional Property as set forth in the Project Site and Architectural Plans attached hereto as Exhibit "D" and as more particularly described in Section 3 below. 1.10 Project Site: The Project Site consists of the Property and Additional Property as described in Exhibits A, B and C attached hereto. 1.11 Pro~ect Site and Architectural Plans: The Project Site and Architectural Plans, also referred to herein as the Project Site Plan, are attached hereto as Exhibit "D". 1.12 Snack Shop: As defined below in Section 4.1(c). 1.13 Tandem Parkina: A group of two or more parking spaces arranged one behind the other where one space blocks access to the other space. 1.14 Zonina Administrator: The Director of Land Use and Transportation Management of the City of Santa Monica. 8 Revised: 2/17/94-4LDAB17.848 1.15 Zoninq Ordinance: Chapter 9.04, commencing at Section 9.04.02.020, of the Santa Monica Municipal Code as of the Effective Date of this Agreement. 2. DESCRIPTION OF PROPERTY. The Property and Additional Property are legally described in Exhibits A, B and C to this Agreement. The total land area of the Property and Additional Property is approximately 15,700 square feet. 3. DESCRIPTION OF PROJECT. 3.1 Project Site and Architectural Plans. The Project shall be developed in accordance with the Project Site and Architectural Plans ("Project Site Plan") attached hereto as Exhibit "D", except for any minor changes approved by the Zoning Administrator in accordance with Section 7 below. In the event of a conflict between (i) the Project as depicted on the Project Site Plan attached hereto as Exhibit D and (ii) the Project as explicitly authorized by the terms and conditions of this Agreement, the terms and conditions of this Agreement shall control. The Project shall include four (4) buildings, with second floor linkages between certain buildings as set forth in E~thibit D. These four buildings are: 3.1(a) Buildina A: The building located at the northeast portion of the Project Site as set forth in Exhibit D, 9 Revised: 2/17/94-4LDAB17.848 commonly known as the Lobster. This building consists of approximately 877 square feet of floor area and will remain one- story (17 feet above finished grade) in height. The Lobster shall be preserved in accordance with Paragraph 3.8 below. 3.1(b) Buildina B: The building located at the northwest portion of the Project Site as set forth in Exhibit D, commonly known as the Restaurant Building. This building will contain no more than 5,350 square feet of floor area and will be two-stories, not exceeding 30 feet in height measured from Average Natural Grade (as defined in Section 3.3(a) belowj except for the spire. This building will include the floor area located on the second floor below the spire, which links Buildings B and C. 3.1(c) Buildina C: The building located at the southwest portion of the Project Site as set forth in Exhibit D. This building will contain no more than 3,900 square feet of floor area and will be two-stories, not exceeding 30 feet in height measured from Average Natural Grade. This building will include the floor area located on the second floor above the driveway, linking Buildings C and D. 3.1(d) Buildina D: The building located at the southeast portion of the Project Site as set forth in Exhibit D. This building will contain no more than 1,800 square feet of floor area and will be two-stories, not exceeding 30 feet in height measured from Average Natural Grade. 10 Rev~sed• 2/17/94-4LDAB77.848 3.2 Maximum Floor Area Ratio (FAR). The total floor area of the Project shall not exceed 11,800 square feet, resulting in a maximum FAR of 0.75, based on a Project Site of 15,700 square feet, 3.3 Buildinq Heiqht. 3.3(a) Averave Natural Grade. The Average Natural Grade of the Project Site is 51.14 feet above sea level ("AVerage Natural Grade"). Average Natural Grade for the Project Site has been calculated by averaging the elevation of the Property and Additional Property at the four points shown on the Site Plan (attached in Exhibit D), which were selected as an interpretation of how the definition of "average natural grade" as set forth in Zoning Ordinance Section 9.04.02.030 applies to an irregularly shaped property. City agrees that the selection of the four points shown on the Site Plan is reasonable, and City hereby accepts 51.14 feet above sea level as Average Natural Grade for the Project Site. 3.3(b) Maximum Heiqht. The maximum allowable building height of the Project shall be 30 feet above the Average Natural Grade, except for the spire extending above the second floor linkage between Buildings B and C, which spire may extend to a maximum height of 47 feet above the Average Natural Grade subject to Owner's obtaining an amendment to the Land Use Plan from the California Coastal Commission concerning the permitted building height on the Property as described in Section 3.3(d) below. If 11 Revised: 2/17/94-4LDAB77.848 Owner's application to the California Coastal Commission amending the Land Use Plan is denied with respect to height, then the spire on the Project shall be eliminated. 3.3(c) Stories. The Project shall not contain more than two (2) stories above the parking garage, as shown on the plans in Exhibit D. Pursuant to Zoning Ordinance Section 9.04.10.08.210, the finished floor of the first level of the building or structure above the parking garage may be located up to three feet above the Average Natural Grade. 3.3(d) Amendment of Land Use Plan. City shall authorize Owner to file and pursue with the California Coastal Commission an amendment to City's Land Use Plan to the extent necessary to authorize the Project as contemplated in Sections 3 and 4 of this Agreement. Within thirty (30) days after the Effective Date of this Aqreement, City shall adopt a formal resolution authorizing Owner to file such an application and expressing support for the required amendments. However, Owner may not file that application until Owner has first obtained City approval or conditional approval of the architectural design of the Project pursuant to Section 11 of this Agreement. City shall fully cooperate and reasonably assist at all times with Owner's efforts to obtain Coastal Commission approval for such an amendment. 3.4 Minimum Setbacks. The Project shall comply with the applicable front yard, side yard, and rear yard setbacks as 12 Revised: 2/17/94-4LDA877.848 required by the Zoning Ordinance, except that, as shown in Exhibit D, the Project shall be permitted to intrude into the required setbacks as follows: 3.4(a) Buildina A. The finished location of Building A(i.e., the Lobster) will be at the same location on the Property as it presently stands. At that location, certain corners of the building are and will be approximately four (4) feet from the Property lines along Ocean and Colorado Avenues as shown on the Project Site Plan, notwithstanding Section 9.04.08.12.060(d) and (f) of the Zoning Ordinance, which otherwise requires a minimum 35-foot front yard setback along the west side of Ocean Avenue at this location and a minimum side yard setback of approximately 9.6 feet. 3.4(b) Buildinq D. As shown on the Project Site Plan, portions of Building D will be located up to a point no less than five (5) feet from the Property line along Ocean Avenue, notwithstanding Section 9.04.08.12.060(d) of the Zoning Ordinance, which otherwise requires a minimum 35-foot front yard setback along the west side of Ocean Avenue at this location. 3.5 Landscaping. An unexcavated side yard setback equal to at least four (4) feet in width shall be provided along the entire length of the side property line of the Project Site on the opposite side from Colorado Avenue. The Project shall be fully landscaped in a manner subject to approval of the City~s 13 Revised: 2/17/94-4LDA617.848 Architectural Review Board ("ARB"), provided, however, that the Project shall not be required to provide an unexcavated front yard, nor shall the Project be required to provide an unexcavated side yard along Colorado Avenue, notwithstanding Zoning ordinance Section 9.04.10.02.170 or the interim standards set forth in City Ordinance No. 1675(CCS) or any later City ordinance permanently implementing those standards. 3.6 Parkinq. Parking for the Project shall meet the following conditions: 3.6(a) Quantity. Prior to issuance of a building permit for the Project, the Zoning Administrator shall determine the required minimum number of total parking spaces in the Project in accordance with the following formula: 3.6(a)(i) One parking space for each 300 square feet of office space floor area. 3.6(a)(ii) One parking space for each 300 square feet of retail space floor area. 3.6(a)(iii) One parking space for each 75 square feet of floor area for food service and seating in the restaurants, including both exterior and interior seating areas; one parking space for each 50 square feet of floor area in any portion of the restaurants used as a bar for service of alcohol; 14 Revised: 2/17/94-4LDAB77.848 and one parking space for each 300 square feet of the remaining floor area in the restaurants used to support the service and seating area. 3.6(a)(iv) Bicycle storage racks for at least four (4) bicycles shall be installed where indicated on the Project Site Plans. 3.6(b) Comoact. Notwithstanding Zoning Ordinance Section 9.04.10.08.040, up to fifty-one percent (51$) (with fractions of less than one-half percent rounded down to the nearest whole number) of the minimum number of parking spaces required by Paragraph 3.6(a) may have reduced minimum dimensions of 15 feet in length by 7~ feet in width. All other required parking spaces, except for the handicapped parking spaces required by Section 3.6(f) of this Agreement, shall have minimum dimensions of 18 feet in length by 8; feet in width. 3.6(cj Tandem. Notwithstanding Zoning Ordinance Section 9.04.10.08.050(c), tandem parking shall be permitted as described in this Paragraph 3.6(c). No more than twenty percent (20g) (with fractions of a space less than 0.5 rounded down to the nearest whole number) of the required parking spaces for the Project will be tandem parking. In determining this percentage, the Zoning Administrator will compare (i) the number of required spaces blocked by another space, with (ii) the total number of required spaces for the Project. At least one valet parking 15 Revised: 2/77/94-4LDAB17.848 attendant shall be on duty at the Project during the hours the premises are open for business. 3.6(d) Parkinv Onerations. Prior to issuance of the Certificate of Occupancy for the Project, Owner shall submit a written parking plan to the City Parking and Traffic Engineer for review and approval, which approval shall not be unreasonably withheld. Among its other contents, that parking plan shall provide the following: (1) all valet parking services (including customer embarking and disembarking and valet driven parking routes) shall occur only on the Project Site; and (2) to the extent that surrounding publicly owned and operated parking lots located on the Santa Monica Pier are open after the normal business hours of the permitted commercial offices in the Project, which may include weekends, major holidays and evenings, then: (i) parking spaces in the Project's parking garage shall be available for public use, (ii) the quantity of spaces available for public parking shall be no less than the number of parking spaces required by the office space in the Project according to the formula contained in Section 3.6(a)(i), (iii) during such hours the availability of such public parking shall be conspicuously advertised in appropriate signage on the Property, and (iv) parking fees may be charged to the public for such parking so long as the rates charged do not exceed the rates in effect at the surrounding State beach parking lots. Prior to issuance of the Certificate of Occupancy for the Project, Owner shall also install signage and physical implements 16 Revlsed: 2/77/94-4LDA877.848 (such as a tire spike directional control unit) prohibiting vehicular traffic, including delivery vehicles, from exiting via the Project's delivery driveway onto the Highway Access Road. Said traffic signs and physical impediments shall be subject to approval by the City's Parking and Traffic Engineer prior to installation by Owner, which approval shall not be unreasonably withheld. 3.6(e) Loadinq Zone. City and Owner agree that the loading space for the Project shall be located where it is depicted on the Project Site Plan attached as Exhibit D which complies with Part 9.04.10.10 of the Zoning Ordinance. 3.6(f) Handicapped. One out of every forty parking spaces required under Section 3.6(a) shall be dimensioned and marked for handicapped parking. 3.6(g) Parkinq Siqnaqe. Prior to issuance of the Certificate of Occupancy for the Project, Owner shall install signage on the Property, directing Project visitors and employees to and from the parking garage in the Project. Those Project traffic signs shall be subject to approval by the City's Parking and Traffic Engineer prior to their installation by Owner, which approval shall not be unreasonably withheld. 3.6(h) CalTrans. Prior to issuance of a building permit for the Project, Owner shall seek and obtain all necessary permits or approvals from the California Department of 17 Revised. 2/17/94-4LDA877.848 Transportation ("CalTrans") for any new curb cuts which the Owner proposes to make along the Highway Access Road in order to align the driveway for deliveries into the Project. 3.7 Demolition of Fish Market Buildina. The structure currently on the Property commonly referred to as the Fish Market has not been the subject of any historical or landmark applications, is not listed among the sites identified in the Santa Monica Historical Resources Inventory Final Report (1985-86), and may be demolished without further City permits or approvals, except for a demolition permit to be issued by the City without review by the City's Landmarks Commission, notwithstanding the City's Landmark Ordinance (Santa Monica Municipal Code Sections 9.36.010, et seq). Until such time as demolition of the Fish Market is undertaken, Owner shall keep the structure secure by boarding up all openings, maintaining fencing around the perimeter of the Property, and keeping the Property free of accumulated debris and brush that might otherwise inhibit easy surveillance of the Property to the satisfaction of the City Building and Safety Officer and the City Fire Department. 3.8 Lobster Buildina. Owner shall preserve and restore the existing front facade facing Ocean Avenue and the majority of the side facades of the Lobster Building. Those portions of the facades to be preserved are more particularly described in 18 Revised. 2/17/94-4LDA817.848 Exhibit D. This building shall constitute Building A as described in Section 3.1(a). Prior to construction of the Project, Owner will need to move the Lobster Building from the Property so that, among other things, the parking garage can be excavated beneath its location. Until that time, Owner shall keep the Lobster Building secure by boarding up all openings. Before moving those portions of the Lobster Building to be preserved, Owner shall hire a certified architectural historian with experience in building preservation methods to prepare a Relocation Preservation Plan describing the process for their temporary removal, storage and return. The plan shall fully document the existing Lobster Building prior to relocation with exterior and interior photography and measured drawings completed to Historic American Building Survey (HABS) specifications. The restoration of the Lobster Building shall use the Secretary of Interior's Standards for Rehabilitation of Historic Buildings as a guide. Owner shall submit a written copy of that plan to the Director of Land Use and Transportation Management for prior review and approval before its implementation. Such approval shall not be unreasonably withheld. When the facades are returned to the Property, the Lobster Building shall be reconstructed as shown on Exhibit D in approximately its same Zocation. No temporary or permanent Certificate of Occupancy shall be issued for any portion of the Project until the facades of the Lobster Building have been returned to the Property and the reconstruction of the exterior of the Lobster Building has been 19 Revised: 2/77/94-41DA817.848 completed in accordance with the requirements of this Section 3.8. Before a permanent Certificate of Occupancy is issued for the Project, Owner shall provide the Director of Land Use and Transportation Management with evidence that Owner has made best efforts to obtain an operator to occupy the Lobster Building. Such best efforts shall include, without limitation, listing the premises for rent with a licensed real estate broker or agent, showing the Lobster Building to potential commercial tenants, and posting appropriate signage indicating that the space in the Lobster Building is available for rent or lease. Owner is not required to perform any tenant improvements to the interior of the Lobster Building prior to the issuance of temporary or permanent Certificates of Occupancy for all or any portion of the Project. In the event that, notwithstanding Owner's best efforts, the facades of the Lobster Building are partially or completely damaged or destroyed during their removal, storage or reassembly, then Owner shall be obligated to reconstruct the damaged or destroyed facades of the Lobster Building in a manner replicating the original facades. The Owner shall be entitled to replace the rear facade of the Lobster Building with a new facade which is architecturally compatible with the front and side facades. The Owner shall be entitled to replace the roof of the Lobster Building. The Owner shall be entitled to remodel the interior of the Lobster Building so long as such interior alterations do not materially affect the external appearance of the structure. The Owner shall be entitled to replace the exterior awnings which presently exist on the 20 Revised: 2/17/94-4LDAB17.848 Lobster Building with new awnings of similar size and shape and of one or more colors in shades of red or blue subject to approval by the Architectural Review Board. Any new awnings which replace the existing metal awnings may consist of a fabric material, in the Owner's discretion but subject to approval by the Architectural Review Board. From time to time Owner may wish to make changes to the images painted on the exterior facades of the Lobster Building to identify the then-current user of Building A; in such event, Owner shall reflect the character and imagery of the existing graphics on the exterior facades, subject to approval by the Architectural Review Board, with rights of appeal to the Planning Commission and subject to the provisions of Section 3.10 of this Agreement, including the limits on total sign area for the Project. 3.9 Administrative and Technical Construction Codes. Except as otherwise specifically provided herein, the Project shall be designed and constructed in compliance with the Administrative and Technical Construction Codes of the City (Chapter 8.04 of the Santa Monica Municipal Code) in effect in the City at the time of any application by Developer for issuance by the City of a building permit for construction of any building, structure or other improvement in the Project. 3.10 Signage. Signage at the Project shall comply with Chapter 9.52 of the Zoning Ordinance, except that the existing imagery and graphics on the exterior facades of the Lobster 21 Revised: 2/17/94-4LDA817.848 Building may be maintained and repainted, notwithstanding Zoning Ordinance Section 9.52.210, after those facades are removed, stored offsite and returned to the Project Site. Furthermore, the limitations on total sign area for the Project as set forth in Zoning Ordinance Section 9.52.210 shall not include the Lobster imagery and graphics so long as the same are not modified to depict a new use of the Property. If the graphics of the Lobster Building are modified to depict a new use of the Property, then to the extent they are modified they will be counted towards the limitations on total sign area for the Project. 3.11 Construction Mitiqation Plan. A construction period mitigation plan shall be prepared by Owner for approval by City's Department of General Services prior to issuance of a building permit for the Project. The approved construction mitigation plan shall be posted on the Property for the duration of the period of Project construction, and copies of the plan shall be made available by Owner to the members of the general public, on request and without charge. This construction mitigation plan shall: (a) specify the names, addresses, telephone numbers and business license numbers of all contractors and subcontractors, as well as the Owner of the Property and architect for the Project; (b) describe how demolition of the Fish Market Building and the unpreserved portion of the Lobster Building is to be accomplished; (c) indicate where any cranes are to be located for erection/construction of the Project; (d) describe how much of the public streets, alleyways, or sidewalks is proposed to be used in 22 Revised: 2/17/94-4LDA817.848 conjunction with construction; (e) set forth the extent and nature of any pile-drive operations; (f) describe the length and number of any tie-backs which must extend under the property of other persons; (g) specify the nature and extent of any dewatering and its effect on any adjacent buildings; (h) describe anticipated construction-related truck routes, number of truck trips, hours of hauling and their parking location; (i) specify the nature and extent of any helicopter hauling; (j) state whether any construction activity before 8:00 a.m. or after 6:00 p.m. on Monday through Friday, or before 9:00 a.m. or after 5:00 p.m. on Saturdays, or at any time on Sunday, is proposed; (k) describe any proposed construction noise mitigation measures; (1) describe construction period security measures, including any fencing, lighting and any security personnel; (m) provide a Project Site drainage plan to apply during construction; (n) provide a construction-period parking plan which shall minimize use of public streets for parking; (o) list a designated on-site construction manager; (p) describe how all public street trees located near Project Site shall be protected from damage, death or removal during construction; (q) describe pest control eradication program for implementation during construction, including protection against pest control impacts on neighboring properties; (r) describe limits on the scope and duration of the use of public streets, alleyways and sidewalks for construction activities to ensure that they are kept passable for the general public during construction; (s) describe a program for covering the trailers of all vehicles when they are hauling soil or other construction 23 Revised: 2/77/94-4LDAB17.848 debris from the Project Site to minimize dust emissions; (t) periodically water the Project Site during excavation to control fugitive dust emissions; and (u) contain an agreement to post a sign on the Project Site in a manner consistent with the City's standard public hearing sign requirements and which shall describe the permitted hours of construction and identify the address and telephone number of the Owner for the purpose of responding to questions or complaints during the construction period. Any signage installed to advertise the Project during construction shall be subject to prior review and approval by the City's Architectural Review Board. During all periods of construction after demolition of the Fish Market Building, security fencing of not less than six (6) feet in height shall be erected by Owner around the perimeter of the Project Site. Owner shall keep the Project Site free of accumulated trash and brush. No street trees shall be removed by Owner as a result of the Project without the approval of the Director of the Department of Cultural and Recreational Services, in their sole and absolute discretion. Approval of a construction mitigation plan for the Project shall not relieve the Owner of the duty to obtain any desired construction-related permits or approvals, such as an after-hours construction permit or an encroachment permit if such work is contemplated. 3.12 Recyclinq Plan. To mitigate solid waste impacts, prior to issuance of the Certificate of Occupancy for the Project, Owner shall submit a recycling plan to the Director of the 24 Revised: 2/77/94-4LDAB17.848 Department of General Services for approval, which approval shall not be unreasonably withheld. This recycling plan shall: (1) list all materials such as white paper, computer paper, metal cans, and glass to be recycled at the Project; (2) identify the location of recycling bins in the Project; (3) designate a recycling coordinator for the Project; (4) describe the nature and extent of internal and external collection of recycled materials; (5) establish a recycling collection schedule; and (6) propose a plan for informing Project tenants/occupants of the Project's recycling program. 3.13 Security Plan. Prior to issuance of a temporary or permanent Certificate of Occupancy for any portion of the Project, a security plan shall be submitted to the Chief of Police and the Director of Land Use and Transportation Management for review and approval, which approval shall not be unreasonably withheld. The plan shall address both physical and operational security issues of the Project. 4. USES. 4.1 Permitted Uses. By execution of this Agreement, the City specifically approves, as permitted uses and subject to the maximum floor area limits for each use established in Section 4.2, the following uses of the Project and Project Site: 25 Revised• 2/17/94'4LDA877.848 4.1(a) Subject to California Coastal Commission approval of a Land Use Plan Amendment authorizing such uses, general and specialty offices located in all or any portion of Building C, including the ground floor, notwithstanding the fact that Building C might be deemed to have street frontage for purposes of applying Zoning Ordinance Section 9.04.08.12.040(d), or in all or any portion of Building D above the ground floor, or in both locations. No medical office use shall be allowed in the Project. 4.1(b) Restaurant uses, including the right to sell and dispense alcoholic beverages for on-site consumption in Buildings A and B in accordance with the terms and conditions set forth in Section 4.3 herein. There shall be no more than three (3) separate restaurant establishments, including any snack shop in the Lobster Building, operating within the Project at any one time; provided, however, that the sewer lines for all restaurants on the Project shall be connected to a grease intercepter housing a minimum static holding capacity of 1,000 gallons for all the restaurants cumulatively, in order to pretreat sewered grease. 4.1(c) The Lobster Building shall be used as a "snack shop.~' That term shall be defined for purposes of this Agreement to mean the following: A restaurant intended for casual dining primarily on-site, with no more than fifty (50) indoor and outdoor seats. The service and sale of beer and wine shall be allowed in this snack shop in accordance with Section 4.3, but not 26 Revised: 2/17/94-4LDAB17.848 the service or sale of any distilled spirits. This snack shop may have take-out service, which shall not exceed fifty percent (50~) of its customer sales. There shall be no drive-thru operations, and no delivery service shall be permitted from the snack shop. Any such snack shop located in the Lobster Building shall be deemed to be a restaurant for purposes of calculating the square footage of restaurant uses in the Project under Section 4.2 and for purposes of calculating parking requirements under Section 3.6. Notwithstanding the provisions of this Subsection 4.1(c), the Lobster Building may alternatively be used as a bona fide restaurant not deemed to be a snack shop, or for any other visitor- serving retail use approved by the Zoning Administrator and not prohibited by Zoning Ordinance Section 9.04.08.12.020 or the Land Use Plan. 4.1(d) General retail and specialized retail uses, including any "Incidental Food Use" as defined in Section 1.5. An Incidental Food Use in the Project shall not be authorized by this Agreement to sell or dispense alcoholic beverages. 4.1(e) Any other uses permitted as a matter of right by Zoning Ordinance Section 9.04.08.12.020 and the Land Use Plan. 4.1(f) Accessory uses which are determined by the Zoning Administrator to be necessary and customarily associated 27 Revised: 2/17/94-4LDA817.846 with, and are appropriate, incidental, and subordinate to, the uses permitted above. Except as otherwise provided in this Agreement, only Administrative Approvals from the Zoning Administrator are required to use the Property or Project for the uses permitted by this Section 4.1, and none of the following additional permits or approvals are required for those uses: a Use Permit, Conditional Use Permit, Performance Standards Permit, 2one Change, Variance Application, or any other permit or approval, whether ministerial or discretionary. The Zoning Administrator shall issue an Administrative Approval for any use of the Property or Project, if such use is authorized by this Agreement, including the requirement that parking for the Project must continue to satisfy the parking requirement of Section 3.6(a). Nothing in this Section 4.1 is intended, nor should be construed, to obviate any requirements under codes, ordinances, rules, regulations or official policies of the City to obtain licenses and permits in conjunction with, and as a condition of, the operation of businesses within the City. If the California Coastal Commission does not approve the City's application to amend the Land Use Plan as necessary to authorize commercial office use in the Project in accordance with Section 3.3(d) of this Agreement, then City and Owner shall meet and confer regarding whether to amend this Agreement. If City and Owner are unable to agree on amending this Agreement under those circumstances, or if the City Council denies such an amendment, then Owner may elect whether to proceed with this Project by using 28 Revised: 2/17/94-4LDA817.848 Buildings C and D only for the uses described in Sections 4.1(d), 4.1(e) and 4.1(f). As provided in Section 6, if Owner does not obtain a building permit for the Project within two (2) years after the Effective Date of this Agreement, then this Agreement shall automatically terminate. 4.2 Amount of Floor Area Devoted to Cateaories of Uses. The floor area for the following uses shall satisfy the limits set forth below: 4.2(a) Restaurants -- No more than 6,200 square feet of floor area, including all outdoor patios, decks, balconies, terraces or other outdoor areas, to the extent they are used for restaurant activity, including outdoor dining; provided that the total floor area in the Project must not exceed 11,800 square feet in accordance with Section 3.2 of this Agreement, and provided further that at least 2,000 square feet of floor area in the Project must be for retail use. 4.2(b) Office uses -- No more than 4,500 square feet of floor area, subject to California Coastal Commission approval of an amendment to the Land Use Plan authorizing such uses; provided that the total f2oor area in the Project must not exceed 11,800 square feet in accordance with Section 3.2 of this Agreement, and provided further that at least 2,000 square feet of floor area in the Project must be for retail use. 29 Revised: 2/77/96-4LDA617.848 4.2(c) Retail -- At least 2,000 square feet of floor area. There shall be no more than 25 seats for Incidental Food Use in the entire Project. 4.2(d) This Section 4.2 does not authorize the Project to exceed 11,800 square feet of total floor area, and the Project must contain at least 2,000 square feet of retail uses; therefore, the Project cannot simultaneously contain the maximum floor area of both the office and restaurant uses. 4.3 Sale and Consumntion of Alcoholic BeveraQes. 4.3(a) The City hereby agrees that on-site sale and consumption of alcoholic beverages, including distilled spirits, shall be a conditionally permitted use in all restaurants located in Building B in the Project. Additionally, the service of only beer and wine (and no distilled spirits) shall be a conditionally permitted use in any restaurants located in the Lobster Building (Building A), including any snack shop meeting the definition contained in Section 4.1(c) of this Agreement. The City hereby agrees to expeditiously review applications for any conditional use permit(s) authorizing such uses in the Project upon the filing by the Owner, or the operator or proposed operator of a restaurant in the Project, of an application for such permit(s). Such review by the City shall be based upon the rules and procedures for processing conditional use permit applications for alcohol outlets then uniformly in effect in the City. The parties agree that the 30 Revised: 2/17/94-4LD11877 848 sale and consumption of alcoholic beverages, including distilled spirits, for on-site consumption is an appropriate use for restaurants in Building B and that the sale and consumption of beer and wine in a restaurant or snack shop in the Lobster Building is an appropriate use. The sole purpose in requiring a conditional use permit for the specified alcohol outlets in this Project is to determine reasonable conditions as to operations which should be followed in connection with such uses. However, if after the development of the Project, a conditional use permit for on-site sale and consumption of alcohol is lawfully revoked for violations of any condition(s) in the conditional use permit(s) or standards or regulations of the State Alcoholic Beverage Control Board, then Owner and the restaurant operator shall thereafter be subject to all applicable rules, standards, and regulations relating to the renewal of said conditional use permit(s) and the foregoing statement by City in this Section 4.3(a) that on-site sale and consumption of alcohol is an appropriate use at the Project shall not impact the applicable rules, standards and regulations for the renewal application(s). 4.3(b) Except as expressly provided in Section 4.3(a) above, any other sale of alcoholic beverages in the Project is prohibited. The sale of distilled spirits sha1Z not be allowed in the Lobster Building. 4.4 Owner's Sunnort For Pier Activities. Owner hereby acknowledges his support for the current and on-going efforts to 31 Revtsed: 2/17/94-4LDAB17.848 redevelop the Santa Monica Pier. Owner is aware that these efforts include development of a"Fun Zone" on the Pier. Owner further understands that a roller coaster ride, as well as other amusement rides and carnival games, have been approved for this Fun Zone. Prior to execution of lease agreements with prospective tenants in the Project, or, in the absence of such a written lease, before a prospective tenant occupies a premise in the Project, Owner agrees to notify his prospective tenants in writing of the current and on-going efforts to redevelop the Santa Monica Pier. Owner's written notice to prospective tenants about the Santa Monica Pier shall be in the form of a written disclosure statement. The disclosure statement shall explain the nature of the current and planned activities and operations on the Santa Monica Pier. Prior to Owner's dissemination of the disclosure statement, Owner shall submit the contents of that document for review and approval in advance by the City, who shall act in consultation with the Pier Restoration Corporation when reviewing the contents of the disclosure. 5. STANDARD AND SUPPLEMENTAL PROJECT MITIGATION MEASURES. To comply with applicable provisions of the General Plan and the Santa Monica Municipal Code for mitigation of commercial projects of this size and type, Owner agrees to provide the project mitigation measures and Development Fees set forth below in this Section 5. 32 Revised: 2/17/94-4LDA817.848 5.1 Water Demand Mitiaation Fee: As reqtlired by City ordinances and policies in effect at the time Owner obtains a building permit for the Project. 5.2 Sewer Connection Fee: As required by City ordinances and policies in effect at the time Owner obtains a building permit for the Project. 5.3 Transnortation Impact Fee: As required by City ordinances and resolutions in effect at the time Owner obtains a building permit for the Project. If this fee is not required to be paid at that time because a resolution setting the amount of the fee has not been adopted by the City Council by that time, then this fee shall be paid by Owner in accordance with any such resolution adopted prior to issuance of a certificate of occupancy for the Project. 5.4 Water Meter Fee: As required by City oYdinances and policies in effect at the time Owner obtains a building permit for the Project, if applicable. 5.5 Housinq and Parks Impact Mitiaation Fee. City and Owner agree that the Project is exempt from the Housing and Parks impact Mitigation Fee set forth in the LUCE and Santa Monica Ordinance No. 1367 (CCS) because the Project consists of less than 15,000 square feet of commercial office space. 33 Revised: 2/77/94-4LDAB17.848 5.6 Pier Promotional Fund. Commencing upon the issuance of a Certificate of Occupancy for the Project, Owner shall pay an annual contribution to a fund for promotional activities on the Santa Monica Pier if and when such a fund is established by the Pier Restoration Corporation, or its successor, for all commercial tenants located on the Santa Monica Pier. Owner's obligation for this annual contribution shall be calculated at one-half of the assessment rate applicable to commercial tenants located on the Santa Monica Pier. In no event shall Owner's obligations under this Section 5.7 be assessed at a rate above $1.00 per square foot of leasable space in the Project, which maximum rate shall be adjusted annually by the percentage increase, if any, from the effective date of this Agreement, in the Consumer Price Index of the Bureau of Labor Statistics of the United States Department of Labor for Urban Wage Earners and Clerical Workers, Los Angeles- Long-Beach-Anaheim, California (1982/84 base) "All Items." The initial contribution due under Section 5.7 shall be prorated for the number of days remaining in the calendar year from the date of issuance of a Certificate of Occupancy for any leasable space in the Project and shall only be charged for the leasable space in the Project for which a Certificate of Occupancy has been issued. 5.7 Street Dedication. Prior to obtaining a building permit for the Project, Owner shall execute such documents as ordinarily required by City to obtain an easement for street purposes ("Street Dedication"). That Street Dedication shall be granted over the surface of approximately sixteen (16) square feet 34 Revised: 2/17/94-4LDAB17.848 of area located on the Property where it is adjacent to the intersection of Ocean and Colorado Avenues. The location of the Street Dedication is more particularly described in Exhibit "E" attached hereto and incorporated by reference herein. 5.8 Pedestrian Connection Bridve. Owner supports in concept construction of a pedestrian connection bridge ("Pedestrian Connection Bridge") over Colorado Avenue linking the sidewalk on the Santa Monica Pier Bridge to either the first floor of Building B or some portion of the deck around the second floor of Building B. Owner, working in consultation with the City's Director of General Services, shall provide reasonable structural support in Building B for the Pedestrian Connection Bridge. In the event the City determines it is in the public interest to construct the Pedestrian Connection Bridge, then the City shall prepare plans depicting the proposed location and design of the Pedestrian Connection Bridge. The City shall submit those proposed plans to Owner for review and approval. Owner may not unreasonably withhold approval of those plans. If the Pedestrian Connection Bridge is pursued by the City in accordance with this Section 5.8, then the City shall be entitled to construct the Pedestrian Connection Bridge and connect it to the first floor of Building B or the deck which encircles the second floor of Building B, in accordance with plans reasonably approved by Owner. If built, the Pedestrian Connection Bridge shall be constructed in a manner which does not unreasonably 35 Revised: 2/77/94-4LDA817.848 interfere with Owner's construction or authorized use of the Project. Prior to construction of the Pedestrian Connection Bridge, City and Owner shall execute an easement agreement in recordable form creating an easement incorporating the following terms and conditions: (a) Owner shall remain the fee owner of the Property and Project and will be responsible for its maintenance at Owner's sole cost; (b) the City shall be entitled to construct, repair, replace and maintain the Pedestrian Connection Bridge and join it to the Project; (c) the general public shall have the right to traverse the Pedestrian Connection Bridge and cross the Property to and from Ocean Avenue on foot at all times. 5.9 Potential Modification of Colorado Avenue. In the event the City vacates, condemns or otherwise modifies the current use of Colorado Avenue between the Property and the Santa Monica Pier Bridge in a fashion which eliminates vehicular access from the Highway Access Road to Ocean Avenue, then Owner shall be obligated to negotiate in good faith with City for the purpose of providing an easement through the Project for vehicles driven by tenants or guests of the existing City-owned apartment building located at 1616 Ocean Avenue. Such an easement shall provide those tenants and their guests with reasonable vehicular access from the delivery entrance off of the Highway Access Road through the parking garage to the exit onto Ocean Avenue from the Project driveway. Such an easement shall be limited in scope to ensure that its use is consistent with the reasonable security and safety needs of the 36 Revised: 2/77/94-4LDAB77.848 Project. The terms of any such easement shall be specified in a mutually executed document recorded as a deed restriction against the Property at the time the City vacates, condemns or otherwise modifies the use of Colorado Avenue at this location. This easement would immediately and automatically terminate upon demolition of the existing apartment building located at 1616 Ocean Avenue, Santa Monica. In consideration for any such easement, the City shall agree to improve a portion of Colorado Avenue at this location in a manner which enhances its pedestrian features and character. The minimum portion of Colorado Avenue to be improved in this manner shall be located immediately west of Ocean Avenue and shall have dimensions of at least 25 feet in width and the length shall extend between the southeastern corner of the Pier Bridge and the northeastern corner of the Project Site. In no event shall the use or physical characteristics of Colorado Avenue be improved or modified in a manner incompatible with the Project. 5.10 Public Access To Desianated Areas In Pro~ect. Owner hereby covenants and agrees to make those areas designated on the Project Site Plan as "Public Areas" open and available to the general public beginning at 9:00 a.m. and concluding at 9:00 p.m. seven days a week £or the limited purposes of walking, strolling, reading, eating, sitting, conversing in small groups and for no other purpose. 37 Revised: 2/77/94-4LDAB17.848 5.11 Off-Site Imnrovements. Items 1 through 12 as listed on Exhibit "F" attached hereto and incorporated herein by this reference shall be completed by Owner prior to issuance of a certificate of occupancy for the Project. If the Project Site Plans are refined or modified by Owner in a manner consistent with this Agreement but which, under standard practice by City's Department of General Services would give rise to additional off- site improvements, then City shall have the right under this Agreement to require such additional off-site improvements to be completed by Owner prior to issuance of a certificate of occupancy for the Project provided that they have a lawful nexus to the Project. 5.12 No Additional Mitiqations. Except as set forth in Section 5 or otherwise provided in this Agreement, the City shall not impose any mitigation measures or fees in lieu thereof on the Project for impacts caused by development of the Project, nor shall the City increase the amount of any mitigation fees except as specifically allowed by Section 5. This Section 5 shall not preclude application of any fee or measure to Owner which complies with the Subsequent Code Changes provision in Section 10.1 below. 6. COMMENCEMENT OF CONSTRUCTION. 6.1 Pursuit of Construction. This Agreement shall automatically terminate (a) if Owner has not obtained a building permit for the Project from the City within two (2) years after the 38 Revised. 2/17/94-4LDAB77.848 Effective Date of this Agreement, or (b) if, at any time more than two (2) years after the Effective Date of this Agreement, the building permit for the Project lapses before Owner obtains a certificate of occupancy for the Project. Beginning two (2) years after the Effective Date of this Agreement, Owner shall have an obligation to diligently pursue construction of this Project to completion; provided, however, that in accordance with Section 303(d) of the Uniform Building Code, Owner shall have the right to timely seek from City's Chief Building Officer a 180-day extension of the building permit for the Project even if Owner has not commenced construction of the Project within the first 180 days after its issuance. 6.2 Extension For Excusable Delays. On written application from Owner, the Zoning Administrator shall grant a six (6) month extension of the time for Owner to obtain a building permit for the Project, or to pursue the Project diligently during construction, if the Zoning Administrator finds that Owner has been prevented from satisfying Owner's obligations under Section 6.1 because of any of the following: 6.2(a) War, insurrection, strikes, walk-outs, riots, floods, earthquakes, fires, casualties, acts of God, or similar grounds for excused performances which are not within the reasonable control of the party to be excused. 39 Revised: 2/17/94-4LDA817.848 6.2(b) Governmental restrictions or moratoria imposed by the City against property development or building construction, if applicable despite the vested rights conferred by this Agreement. 6.2(c) Restrictions or moratoria imposed by judicial decisions or by litigation contesting the validity, or seeking the enforcement or clarification of, this Agreement whether instituted by the Owner, the City or any other person or entity. 6.2(d) The institution of a referendum pursuant to Government Code Section 65867.5 or a similar public action seeking to in any way invalidate, alter, modify or amend the ordinance adopted by the City Council approving and implementing this Agreement. 6.2(e) The City's £ailure to satisfy Section 14 of this Agreement. 6.3 Lack of Financinq. Under no circumstances shall the inability of the Owner to secure financing be an excusable delay to the obligations of the Owner, except as to the 180-day extension of the time to commence exercising the Project building permit as authorized by Uniform Building Code Section 303(d). 7. MINOR CHANGES TO PROJECT AND PROJECT SITE PLAN. Without amending this Agreement, the Owner may make minor changes to the 40 Revised. 2/17/94-4LDA877.848 Project or Project Site Plan upon approval of the Zoning Administrator within the following limits: The maximum height of the Project cannot be increased by the Zoning Administrator; the list of permitted uses contained in Section 4.1 cannot be changed by the Zoning Administrator, although the Zoning Administrator can determine what are "accessory uses" pursuant to Section 4.1(f) of this Agreement; the Zoning Administrator cannot decrease the minimum setback requirements for the Project; the Zoning Administrator cannot increase the maximum floor area or maximum FAR of the Project; and the 2oning Administrator cannot increase the maximum floor area limitations for restaurants and office uses permitted in the Agreement. Minor modification as authorized by this Section 7 shall be reviewed by the Zoning Administrator in accordance with the Zoning Administrator's typical practice of reviewing minor modification requests for projects, together with specific findings by the Zoning Administrator that the proposed changes are consistent with the provisions, purposes and goals of this Agreement, are not detrimental to the public health, safety, convenience or general welfare, and will not significantly and adversely affect the architectural integrity of the Project or the public benefits associated with the Project. 8. ASSIGNMENT: BINDING EFFECT. This Agreement shall not be severable from Owner's interest in the Project Site and the Project. Any transfer of any portion of the Project Site or Project shall automatically operate to transfer the benefits and burdens of this Agreement with respect to said portions. Owner may 41 ReVised: 2/77/94-4LDAB17.848 freely sell, transfer, exchange, hypothecate, encumber or otherwise dispose of its interest in the Project Site and Project, or any portion thereof, without the consent of the City. Owner shall, however, give notice to City of any transfer hereunder, disclosing therein the identity of the transferee and such transferee's address, in accordance with Section 26 herein. 9. RELEASE UPON TRANSFER. Upon the sale, transfer, exchange or hypothecation of Owner's rights and interests to the Project Site, or any portion thereof, Owner shall be released from its obligations under this Agreement with respect to the Project Site and Project, or any portion thereof so transferred if: Owner has provided notice of such transfer to City, the transferee executes and delivers to City a written agreement in which the transferee e~cpressly and unconditionally assumes all of the obligations of Owner under this Agreement with respect to the Project Site and Project, or portion thereof so transferred, and City consents to such release, which consent shall not be unreasonably withheld based upon the status of completion of the Project and the ability of the transferee to comply with this Agreement. Failure to deliver a written Assumption Agreement hereunder shall not affect the transfer of the benefits and burdens as provided in Section 8 above. 42 Revised: 2/77/94-4LDAB17.848 10. EFFECT OF AGREEMENT ON LAND USE REGULATIONS. 10.1 Apnlication of Governina Reaulations, Except as provided in Section 3.9 or otherwise in this Agreement, development of the Project Site and the Project, including without limitation, density, permitted uses, intensity of use, design and improvement shall be governed by the Governing Regulations. Development of the Project Site and the Project shall not be governed by any amendments, revisions, additions or deletions to the Governing Regulations or new laws or regulations of the City governing or affecting development adopted subsequent to the Effective Date of this Agreement unless any one of the following occurs: 10.1(a) The City and the Owner mutually agree in writing. 10.1(b) The Subsequent Code Changes are required by changes in state or federal laws or regulations as provided in Government Code Section 65869.5. 10.1(c) The Subsequent Code Changes satisfy each of the following conditions: 10.1(c)(i) The Subsequent Code Changes do not impair the rights of the Owner to develop the Project Site as contemplated in this Agreement. 43 Rev~sed. 2/17/94-4LDAB77.848 10.1(c)(iij If Subsequent Code Changes distinguish between "existing" development and "new" or "proposed" development, the Project is considered as "existing" development. 10.1(c)(iii) The Subsequent Code Changes are uniformly applicable to all businesses, uses, buildings and structures which are similar to the businesses, uses, buildings and structures permitted in the Project throughout a reasonably defined geographical area of the City. The term "Subsequent Code Changes" as used in this Section 10.1 is intended to include, among other things, any amendments, revisions or additions to the Governing Regulations imposing or requiring payment of a fee, special assessment or tax. 10.2 Processinq and Permit Fees. Owner shall be subject to all City-imposed Processing and Permit fees and charges, including utility connection fees, with respect to applications for development and construction within the Project Site which are in effect on the date on which each application is filed. 10.3 Inconsistent Code Provisions. As applied to this Agreement and the Project, any provisions of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Agreement, to the extent of such inconsistencies and not further, are hereby modified to that extent necessary to effect the provisions of this Agreement. 44 Revised: 2/77/94-4LDA817.848 11. ARCHITECTURAL REVIEW. il.i Purpose. Because this Project Site is in a very sensitive location given its close proximity to the Santa Monica Pier Bridge, the Santa Monica Pier Sign and the Santa Monica Pier, the City's Planning Commission shall ensure that the Project is constructed with high quality materials, that it is visually interesting and expressive of good taste, and that its overall design and attention to details are given careful attention. It is Owner's and City's mutual goal to ensure that this Project shall be a"First Class" or "Class A" multi-use retail/restaurant/office building which shall complement and enhance the Santa Monica Pier area. 11.2 Authority. The Planning Commission shall review all building textures, colors and materials, the building design and building ornamentation, the Project's contextual relationships to the surrounding area and historical compatibility, the continuity and integrity of its design, its architectural style and theme, the roof forms, all fenestration and articulation, the surface treatments of sidewalks and plazas, all new signage, all awnings, canopies and other window treatments, the trash enclosures and screening, and the landscaping, liqhting, irrigation and drainage plans for the Project in accordance with design review procedures in effect under the Governing Regulations. Decisions of the Planning Commission under this Section 11 shall not be appealable. The Planning Commission's review of the Project under this Section 45 Revised: 2/77/94-4LDA817.848 11 shall be exercised in accordance with the standards, guidelines, rules and practices of the Architectural Review Board pursuant to Chapter 9.32 of the Zoning Ordinance. For purposes of this Project, the Planning Commission shall have the same powers and limitations as the Architectural Review Board would in reviewing any development project pursuant to Chapter 9.32 of the Zoning Ordinance. The Planning Commission shall conduct its hearing within 60 days and render its decision within 90 days on the architectural review of this Project after submittal of a completed application for architectural review from Owner. 11.3 Soecial Concerns. In its review of this Project, the Planning Commission shall take into consideration the Project's unique location. The Planning Commission shall pay particular attention to the following features of the Project: (a) the proposed landscaping along the exposed garage levels on the west side of the Project facing the Pacific Ocean, to reduce the perceived massing of the Project; (b) the proposed landscaping on the south side of the Project in the unexcavated side yard described in Section 3.5; (c) the fenestration and articulation of the northern facade of Building B as it relates to the Pier Bridge; (d) the design of the northern facade of Building B to ensure that it is designed to receive the Pedestrian Connection Bridge as discussed in Section 5.8; (e) the compatibility of the Project with the Lobster Building, the Santa Monica Pier, the Pier Sign and the Pier Bridge in terms of textures, colors, materials and design features; (f) the quality of materials and overall design to ensure 46 Revised: 2/17/94-4LDR877 848 the Project shall be a"First Class" or "Class A" buildinq; and (g) the roof lines, fenestration, awnings and paving materials for their pedestrian orientation and compatibility with the Santa Monica Pier, the Pier Sign, the Pier Bridge and the Lobster Building. 11.4 Finishina Materials. Attached hereto as Exhibit "G" and incorporated herein by this reference is a list of finishing materials for the Project. Although Owner shall not be bound by this Agreement to use the precise materials specified therein, Owner shall be obligated to use materials of a comparable quality as may be approved by the Planning Commission. The intent of Exhibit G is not to restrict either the Planning Commission or the Owner to the precise materials for the Project as specified in Exhibit G, but rather to reflect the overall quality of finishing materials to be used in the Project. 11.5 Limitations. The Planning Commission shall have no authority to disapprove or conditionally approve any features or matters which have been specifically approved by this Agreement or in the Project Site Plan. 12. SPECIAL ASSESSMENTS. Notwithstanding anything to the contrary in this Agreement, the Owner shall be subject to special assessments of general application in the City or in the City's beach region, including but not limited to, any special assessments 47 Revised: 2/17/94-4LDA817.848 for beach related improvements, which are lawfully imposed upon the Owner. 13. CERTIFICATES OF OCCUPANCY. Upon completion of any portion of the Project for which a separate building permit has been issued in compliance with such building permit, the Governing Regulations, this Agreement and other applicable agreements between City and Owner, and subject to the restoration obligations described in Section 3.8, the City shall promptly issue a Temporary or Final Certificate of Occupancy therefor to Owner. 14. PROMPT REVIEW AND ISSUANCE OF NECESSARY PERMITS AND APPROVAIS. City shall promptly commence and diligently proceed to complete all applicable City procedures and processes then uniformly in effect to grant or issue any approvals, consents, or permits which are necessary or reasonably desired by the Owner for the development by the Owner of the Project and the Project Site in accordance with the Project Site Plan and this Agreement. 15. PERIODIC REVIEW OF COMPLIANCE WITH AGREEMENT. 15.1 City Review. The City shall review this Aqreement at least once every twelve (12) month period from the Effective Date. 15.2 Required Findinqs. During each periodic review by the City, Owner shall be required to demonstrate good faith 48 Reviseci: 2/17/94-4LDAB77.848 compliance with the terms of this Agreement. In connection therewith, on or before July ist of each calendar year during the term of this Agreement, beginning with July 1, 1994, the Owner shall provide a written report to the City in which an officer of the Owner provides factual evidence of good faith compliance by the Owner with the terms of this Agreement during the prior calendar year, except for those areas of non-compliance which are specifically set forth in the written report together with the reasons advanced by the Owner for non-compliance. If, as a result of such periodic review, the City Council finds and determines, on the basis of substantial evidence, that the Owner has not complied in good faith with the terms or conditions of this Agreement, the City Council shall commence proceedings to enforce, modify or terminate this Agreement. 15.3 Public Hearinq. If the City should determine on the basis of substantial evidence that the Owner has not complied in good faith with the terms and conditions of this Agreement, and further determines to proceed with modification or termination of this Agreement in accordance with Section 15.2, the City shall provide written notice to the Owner of its intention to modify or terminate this Agreement unless the Owner cures or corrects the acts or omissions that constitute the basis of such determinations by the City. The notice shall be delivered by the City to the Owner in accordance with Section 26 and shall contain all of the following: 49 Rev~sed: 2/17/94'4LDAB17.848 15.3(a) The time and place of a public hearing to be held by the City Council, no less than ten (10) days after delivery of the notice to Owner, on the determination of the City to proceed with modification or termination of this Agreement. 15.3(b) A statement as to whether the City proposes to modify or terminate this Agreement. 15.3(c) Any proposed modifications to this Agreement. If, following the conclusion of the public hearing, the City Council determines that the Owner has not been in good faith compliance with this Agreement and further determines any one of the following three items: (i) the acts or omissions constituting the basis of that determination are permanently incapable of being cured, or (ii) the Owner has not cured the acts or omissions that constitute the basis of this determination, or (iii) if those acts or omissions could not be reasonably remedied prior to the public hearing, that Owner has not in good faith commenced to cure or correct such acts or omissions prior to the public hearing or is not diligently and continuously proceeding therewith to completion, then the City Council may take such action as it deems necessary to protect the interests of the City pursuant to this Agreement, including the right to terminate this Agreement. Nothing herein shall preclude Owner from exercising its right to seek a judicial 50 Revised: 2/17/94'4LDA817.848 determination, judgment or award, on the grounds that the City is not proceeding lawfully or in accordance with this Agreement. 16. ENFORCEMENT. Except as provided in Government Code Section 65869.5, this Agreement is enforceable by any party to it notwithstanding a subsequent change in any applicable general or specific plan, land use, zoning, subdivision or building regulations adopted by the City which alters or amends the Governing Regulations. 17. VALIDITY OF AGREEMENT. In any litigation concerning this Agreement, neither party hereto shall assert as a claim or defense the invalidity of this Agreement. 18. DEFAULT. The City or the Owner shall be in default under this Agreement upon the happening of one or more of the following events or conditions (nEvent of Defauit°j: 18.1 Owner Defaults. Owner shall be in default under this Agreement ("Owner Defaults") if Owner fails to satisfy any of its obligations under this Agreement, including, but not limited to, the following: 18.1(a) The Owner fails to pay the City any amount due under this Agreement as and when due, and such failure to pay continues for a period of ten (10) days after written notice from City. 51 Revised. 2/17/94-4LDA877.848 18.1(b) The Owner fails to perform or comply in good faith with any of the other agreements, terms, covenants or condi- tions of this Agreement on Owner's part to be performed or complied with, and any of the following is true: (i) the act or omission of nonperformance or noncompliance can no longer be performed or corrected, or (ii) such nonperformance or noncompliance continues without change for a period of thirty (30) days after written notice from City, or (iii) if such performance cannot reasonably be completed within such thirty (30) day period, Owner has not in good faith commenced such performance within such thirty (30) day period or has not diligently and continuously proceeded therewith to completion; provided, however, that in no event shall such cure period be extended beyond one hundred twenty (120) days from the date of such notice. 18.1(c) A finding and determination by the City Council is made upon the basis of substantial evidence following a periodic review under Section 15 that Owner has not complied in good faith with the terms or conditions of this Agreement and has not cured or corrected the act(s) or omission(s) which were the basis for such determination. 18.2 City Defaults. The City shall be in default under this Agreement ("City Defaults") if the City fails to satisfy any of its obligations under this Agreement, including the following: 52 Revised: 2/17/94-4LDA817.848 18.2(aj The City fails to comply in good faith with the requirements of any of the agreements, terms, covenants or conditions of this Agreement on the City's part to be performed or with which the City must comply and any of the following is true: (i) the act or omission of nonperformance or noncompliance can no longer be performed or corrected by City, or (ii) such failure continues without change for a period of thirty (30) days after written notice from the Owner, or (iii) if such failure cannot reasonably be remedied by City within such thirty (30) day period, City has not in good faith commenced to cure such failure within such thirty (30) day period or has not diligently and continuously proceeded therewith to completion (provided, however, that in no event shall such cure period be extended beyond one hundred twenty [120] days from the date of such notice). 19. PROCEDURE UPON DEFAULT. 19.1 Termination by City. Subject to Section 19.3 below, upon the occurrence of an Owner Default, the City may terminate this Agreement upon written notice to Owner. 19.2 Termination by Owner. Upon the occurrence of a City Default for failure by the City to comply in good faith with the requirements of this Agreement regarding the permitted use and development of the Project Site, including without limitation, the obligations of the City under this Agreement to review and issue permits and approvals applied for by Owner in connection with the 53 Revised: 2/17/94-4LDAB17.848 development of the Project or use of the Project Site, Owner may terminate this Agreement upon written notice to the City. 19.3 Remedies Cumulative. Any right or remedy of the parties under this Agreement and any other right or remedy that either party may have at law or equity, including specific performance, upon the breach of any covenant, agreement, term, provision or condition in this Agreement by the defaulting party shall be distinct, separate and cumulative rights or remedies and no one of them, whether exercised by the non-defaulting party or not, shall be deemed to be in exclusion of any other. The non-defaulting party may, in its discretion, exercise any and all of its rights and remedies, at once or in succession, at such time or times as the non-defaulting party considers appropriate. 19.4 Cessation of Riqhts and Obliqations. If this Agreement is terminated on account of an Event of Default, except as otherwise provided in this Agreement, the rights, duties and obligations of the parties hereunder shall cease as of the date of such termination. If the City is the terminating party, then any and all benefits, including money received by the City, shall be retained by City. If this Agreement is duly terminated before a certificate of occupancy has been issued for the Project, then all buildings and uses in the Project must satisfy the City's ordinances, standards and policies as they then exist. If this Agreement is duly terminated after a certificate of occupancy has been issued for the Project, then all uses in the Project must 54 Revised: 2/17/94-4LDA877.848 satisfy the City's ordinances, standards and policies as they then exist, including any obligations to obtain conditional use permits for operations of the restaurants and offices in the Project. 20. NOTICE OF TERMINATION. Upon termination of this Agreement as to the Project Site and the Project, or any portion thereof, the parties hereto shall execute an appropriate notice of termination suitable for recording in the official records of Los Angeles County. 21. MORTGAGEES. 21.1 Notice to Mortqaqee. A Mortgagee may give notice to the City, specifying the name and address of such Mortgagee and attaching thereto a true and complete copy of the Mortgage held by such Mortgagee and specifically requesting City to notify them of any future notices of Owner Default. If such notice has been requested, the City shall thereafter send to such Mortgaqee a copy of each notice of default by the Owner which relates to, affects, or potentially may adversely affect, the interest of the Owner in the Project Site or portion thereof which serves as security for the Mortgage at the same time as and whenever any such notice of default shall be given by the City to the ~wner, addressed to such Mortgagee at its address last furnished to the City, and the period within which a Mortgagee may cure a particular default hereunder, as set out in Section 21.2 below, shall not begin to run until the City has sent to the Mortgagee such copy of a notice of such 55 Revised: 2/17/94-4LDAB77.848 default. City has no such obligation to notify the Mortgagee of any Owner Defaults if that Mortgaqee has not exercised its right under this Section to receive notification of Owner Defaults. Any failure by City to provide notice of an Owner Default to a Mortgagee entitled to such notice under this Section shall not extend the time for Owner to cure under Section i8 so long as Owner received proper notice of that Owner Default as specified in this Agreement. 21.2 Cure of Default by Mortqaqee. Such Mortgagee, after the period for the Owner to cure has passed, shall thereupon have an additional period of ten (10) days in the case of any default in the payment of money, and an additional thirty (30) days in the case of any other default, for remedying the default or causing the same to be remedied. If the Owner shall be in default hereunder, such Mortgagee shall have the right to remedy such default, or cause the same to be remedied within the period and otherwise as herein provided. The City shall accept performance by any such Mortgagee of any covenant, condition, or agreement on the Owner's part to be performed hereunder with the same force and effect as though performed by the Owner. City shall have no right to modify or terminate this Agreement based on an Owner Default, so long as such Mortgagee shall, in good faith, have commenced promptly to rectify the same and shall thereafter prosecute the same to completion with diligence and continuity; provided, however, that in no event shall such period to cure extend beyond one hundred 56 Revised: 2/77/94-4LDA817.848 fifty (150) days after the date Mortgagee receives City's notification of Owner's Default. 21.3 Extension of Time to Cure. The period of time given to the Mortgagee to cure any default by the Owner which reasonably requires that said Mortgagee be in possession of the Project Site to do so, shall be deemed extended to include the period of time reasonably required by said Mortgagee to obtain such possession (by foreclosure, the appointment of a receiver or otherwise) promptly and with due diligence; provided, however, that during such period all other obligations of the Owner under this Agreement, including, without limitation, payment of all amounts due, are being duly and promptly performed. 21.4 Liabilitv of Mortaaaee. No Mortgagee shall become liable under the provisions of this Agreement unless and until such time as it takes possession or becomes the owner of the estate covered by its Mortgage, and then only for obligations arising or accruing during or with respect to the time it is in possession or is the owner under such estate; but the preceding portion of this sentence shall not limit or restrict in any way the City's authority to terminate this Agreement, as against any Mortgagee as well as against the Owner if any curable default hereunder (including, without limitation, any default in the payment of any amount due) is not completely cured within the time period allowed hereunder for such cure. 57 Rev~sed: 2/17/94-4LDAB17.848 21.5 Mortqaqee. For purposes of this Section 21, a Mortgagee shall include any holder of a Deed of Trust, Mortgage, or other security interest in or on all or any portion of the Project Site including without limitation an individual, limited or general partnership, corporation, institutional lender or pension trust. 22. DURATION OF AGREEMENT. This Agreement shall expire fifty-five (55) years from the Execution Date, or earlier upon mutual written agreement of Owner and City. After expiration or full satisfaction of this Agreement, the parties shall execute an appropriate certificate of termination which shall be recorded in the official records of Los Angeles County. 23. IMPAIRMENT BY SUBSEQUENT LAWS. If any agency other than the City passes any law or regulation after the date of this Agreement or takes or refuses to take any action which prevents, precludes or impairs compliance with one or more of the provisions of this Agreement, then the parties shall meet and confer in good faith to determine the feasibility of modifying or suspending one or more provisions of this Agreement to comply with such new law or regulation or to address the action or refusal to act based upon the effect such modification or suspension would have on the purposes and intent of this Agreement. In such event, the City shall specifically and in good faith process any necessary amendments to this Agreement in accordance with Government Code Section 65868. In addition, the Owner shall have the right to challenge the new law or regulation or the action or refusal to act 58 Revised: 2/17/94-4LDA817.8G8 which prevents compliance with the terms of this Agreement, and, in the event such challenge is successful, this Agreement shall remain unmodified and in full force and effect. During any pending challenges, the City may enforce its right under this Agreement unless there is an interim court order to the contrary. 24. ESTOPPEL CERTIFICATE. Either party may, at any time, and from time to time, deliver written notice to the other party requesting such party to certify in writing that this Agreement is in full force and effect, that this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments whether or not, to the knowledge of such party, the requesting party is in default or claimed default in the performance of its obligations under this Agreement, and, if so, describing the nature and amount of any such default or claimed default, and whether or not, to the knowledge of such party, any event has occurred or failed to occur which, with the passage of time or the giving of notice, or both, would constitute a default and, if so, specifying each such event. A party receiving a request hereunder shall execute and return such certificate within thirty (30) days following the receipt thereof. The City Manager shall have the right to execute any certificate requested by the Owner hereunder. The City acknowledges that a certificate hereunder may be relied upon by transferee, Mortgagees or other parties. 25. RECORDING OF AGREEMENT. The parties hereto shall cause this Agreement to be recorded in the Official Records of the County 59 Revised: 2/17/94-4LDR817.848 of Los Angeles. The cost, if any, of recording this Agreement shall be borne by the Owner. 26. NOTICES. Any notice, demand, request, consent, approval or communication which either party is required to or may give to the other hereunder shall be in writing and shall be delivered or addressed to the other at the address below set forth or to such other address as either party may from time to time direct by written notice given in the manner herein prescribed, and such notice or communication shall be deemed to have been given or made when communicated by personal delivery or by independent courier service or by facsimile or if by mail on the third business day after the deposit thereof in the United States Mail in Los Anqeles County, California, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, consents, approvals or communications from the Owner to the City shall be addressed to the City at: City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: Director of Planning With copies to: City Attorney City of Santa Monica 1685 Main Street Santa Monica, California 90401 60 Revised: 2/77/94-4LDAB17.848 All notices, demands, requests, consents, approvals or communications from the City to the Owner shall be addressed to the Owner at: John B. Kilbane & Associates Inc. 2716 Ocean Park Blvd., Suite 3082 Santa Monica, California 90405 Attention: John B. Kilbane With copies to: Lawrence & Harding, P.C. 1250 Sixth Street, Suite 300 Santa Monica, CA 90401 Attention: Christopher M. Harding, Esq. 27. AOLD HARMLESS. The Owner agrees to and shall hold the City, its officers, agents, employees and other 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 operations of the Owner or those of its contractor, subcontractor, agent, employee or other person acting on its behalf which relate to the Project, including the maintenance and operation of public invited activities. Owner agrees to and shall defend the City and its officers, agents, employees and representatives from actions for damages as described above caused or alleged to have been caused by reason of the Owner's activities in connection with the Project. This Section 27 applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to herein, regardless of whether or not the City prepared, supplied or approved plans or specifications or both for the Project. 61 Revised: 2/77/94-4LDAB77.848 28. ENTIRE AGREEMENT. This Agreement sets forth all of the agreements, conditions and understandings between the City and the Owner relative to the Project Site and the Project and there are no promises, agreements, conditions or understandings, oral or written, expressed or implied, between them other than as set forth or as referred to herein. 29. NO ORAL MODIFICATION. No statement, action or agreement hereafter made shall be effective to change, amend, waive, modify, discharge, terminate or effect an abandonment of this Agreement in whole or in part unless such statement, action or agreement is in writing, is adopted by mutual written agreement of the parties, and is processed in accordance with Government Code Section 65868 to the extent required. 30. TABLE OF CONTENTS AND SECTION HEADINGS. The table of contents and section headings are inserted herein only for convenience and are in no way to be construed as part of this Agreement, or an indication of the meaning of the provisions of this Agreement or the intention of the parties, or as a limitation in the scope of the particular sections to which they refer. 31. NO PARTNERSHIP OR JOINT VENTURE. Nothing in this Agreement shall be deemed to create a partnership or joint venture between the City and the Owner or to render either party liable in any manner for the debts or obligations of the other. 62 Revtsed: 2/17/94-4LDA817 848 32. ATTORNEYS' FEES. In the event any of the parties to this Agreement is required to bring any action at law or in equity to collect the payment of any consideration due hereunder or to enforce any of the terms or conditions of this Agreement, the prevailing party shall be reimbursed by the non-prevailing party for such costs as may be incurred in the bringing of such action, including reasonable attorneys' fees. 33. EXHIBITS. All exhibits attached hereto or referred to in this Agreement, or both, are incorporated herein as though set forth in full. 34. CONSTRUCTION. The parties agree that each party and its counsel have reviewed and revised this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. 35. GOVERNING LAW. This Agreement shall be governed exclusively by the provisions hereof and by the laws of the State of California. 36. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be deemed an original, and such counterparts shall constitute but one and the same instrumeht. 63 Revised: 2/17/94-4LDA817.848 37. BINDING EFFECT. It is intended and determined that the provisions of this Agreement shall constitute covenants which shall run with the land comprising the Project Site for the benefit thereof and that the burdens and benefits thereof shall bind and enure to the benefit of all successors-in-interest to the parties hereto. 38. AGREEMENT TO COOPERATE. Zn the event of any legal action instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement, the parties hereby agree to cooperate in defending said action. 39. NO THIRD PARTY BENEFICIARY. Nothing in this Agreement shall create any rights, as a third party beneficiary or otherwise, in any person or entity not a party to this Agreement. 40. COOPERATION IN PROVIDING ASSURANCES. Upon request by Owner, City shall cooperate in good faith to provide reasonable assurances to prospective financing sources or purchasers regarding the effect of this Agreement. 41. CONTINGENCY. As noted in Recitals C and D, City is in the process of vacating 800 square feet of alley adjacent to the Property. City has a good faith obligation to Owner to process the aforementioned vacation. If, notwithstanding City's good faith efforts, this portion of the alley is not vacated within six (6) 64 Revised: 2/77/94•4LDpB77.848 months after the Effective Date, then this Agreement shall automatically be terminated and shall have no further force or effect. This Agreement shall not prejudice the City's power to deny the alley vacation described in Recitals C and D if City cannot make the necessary findings required by law to authorize such an alley vacation. 42. PURCHASE AND SALE OF TARGET PROPERTY. 42.1 Description of Tarqet Property. So long as the contingency specified in Section 41 is satisfied, City shall agree to sell to Owner and Owner shall agree to purchase from City the Triangular Property together with City's interest in the southwesterly half of the Alley Property. This property to be conveyed in accordance with this Section 42 ("Target Property") consists of 747 square feet and is more particularly described in Exhibit "H" attached hereto and incorporated by this reference herein. 42.2 Necessary Citv Findinqs. The City hereby declares that the Target Property is no longer needed for any public purpose and that it may be sold pursuant to Santa Monica Municipal Code Section 2.24.110. Concurrently with the adoption of this Agreement, the City Council has duly resolved that it would be of no avail and would cause unnecessary expense and delay to advertise the Target Property for public sale due to its small size and particular location and has further resolved that the sale of the 65 Revised: 2/77/94-4LDAB77.848 Target Property to Owner without a public bid is in the best interests of the City. 42.3 Purchase Price. Owner shall be required to pay, and City shall be required to accept, a purchase price ("PUrchase Price") for the Target Property equal to $60,000. 42.4 Title insurance. Concurrently with the sale of the Target Property to Owner, City shall provide Owner at City's cost and expense with a CLTA Owner's Standard Policy of Title Insurance issued by Chicago Title Company in the amount of the Purchase Price, showing title vested in Owner free of any liens, encumbrances, easements, restrictions, covenants or conditions. 42.5 Easement for Citv Maintenance Vehicle. In addition to paying City the Purchase Price for the Target Property, Owner shall grant City an easement onto the Property for purposes of permitting reasonable access by City's employees or agents to temporarily park a maintenance vehicle within the Project from time to time while working on the City-owned apartment building located at 1616 Ocean Avenue. This easement will immediately and automatically terminate upon demolition of the existing apartment building at that location. A written agreement granting this easement will be recorded against the Property after approval and execution by City and Owner. Owner shall not unreasonably withhold approval of the form and content of the instrument granting this easement. 66 Revtsed• 2/17/94'4LDAB17.848 43. C~TY VACATION OF UNUSED UTILITY EASEMENTS BENEATH P~OPERTY. City agrees to execute all documents reasonably necessary to vacate the unused easements located under a portion of the Property for utility easements as recorded in Book 6779, Page 20 of Deeds and in Book 6786, Page 33 of Deeds in the Office of the County Recorder of Los Angeles County. The parties agree that these easements were originally executed in approximately 1918 and are not now in use. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written. CITY: CITY OF SANTA MONICA By: John Jalili, City Manager ATTEST: CLARICE E. DYKHOUSE, City Clerk OWNER: JOHN B. KILBANE & ASSOCIATES, INC. a California corporation By: John B. Kilbane, President MYRON L. NATHAN LORRAINE NATHAN 67 Revised: 2/17/94-4LDA677.848 APPROVED AS TO FORM: JOSEPH LAWRENCE, Acting City Attorney LAWRENCE & HARDING a Professional Corporation By: Christopher M. Harding Attorneys for Owner Ju:4LDA617.848 68 Rev~sed: 2/17/94-4LDAB77.848 EXHIBIT A EXHIBIT "A" "Lots 1, A& B of the Moss Tract, in the City of Santa Monica, County of Los Angeles, State of California, as per map recorded in Book 36 Pages 64 and 65 of Mags, in the Office of the County Recorder of said County; EXCEPT THEREFROM that portion of said Lot B granted to the State of California in the deed recorded as Document No. 740 on December 21, 1940 in Book 18040 Page 249 of Official Records." EXHIBIT B LEGAL DESCRIPTION THAT PORTTON OF A 20 FOOT WIDS ALLEY OF THE MOSS TRACT, IN THE CITY OF SANTA MONICA, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 36 PAGES 64 AND 65 OF MAPS, IN THE OFFICE OF 2HE COUNTY RECORDER OF SAID= COUNTY DESCRIBED AS FOLLOWS: COMMENCING AT THE MOST WESTERLY CORNER OF IAT B OF SAID MOSS TRACT; THENCE NORTfi 45 DEGREES 40 MINUTES 20 SECONDS EAST AIANG THE NORTHWESTERLY LINE OF SAZD IAT 35.01 FEET~ THENCE SOUTHERLY ALONG A CURVE CONCAVE EASTERLY HAVING A _ RADIUS OF 31 FEET AND TANGENT TO SAID NORTHWESTERLY LINE~ THROUGH A CENTRAL ANGLE OF 100 DEGREES 37 MINUTES 43 SECONDS AN ARC DISTANCE OF 54.45 FEET TO A POINT OF COMPOUND CURVE~ A RADIAL LINE TO SAID POINT BEARS SOUTH 35 DEGREES 02 MINUTES 37 SECONDS WEST~ THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 337 FEET, THROUGH A CENTRAL ANGLE OF 6 DEGREES 42 MItdUTES 41 SECOI~IDS AN ARC DISTANCE OF 39.47 FEET TQ A POINT IN THE SOUTHEASTERLY LINE QF SATD LOT B, DISTANT THEREON NORTA 45 DEGREES 40 MINUTES 20 SECOiIDS EAST 66.83 FEET FROM TFIE MOST SOUTHERLY CORNER OF SAID IAT~ TIiECICE NORTH 45 AEGREES 40 MI2iUTES 20 SECONDS EAST AIAISG THE SOUTHEASTERLY LINE OF IAT S, 15.88 FEET TO THE MOST WESTERLY CORNER OF SAIB 20 FOOT WIDE ALLEY BEING TAE TRUE POINT OF BEGIi3N ING ~ • THENCE NORTH 45 DEGREES 40 MINUTES 20 SECONDS EAST AND CONTINUING ALOi3G THE SOUTHEASTERLY LINE OF IAT B, 20.00 FEET TO TIiE MOST NORTHERLY CORNER OF THE 20 FOOT WIDE ALLEY; THENCE SOUTH k4 DEGREES 16 MINUTES 40 SECONDS EAST ALONG THE SOIITHWESTERLY LINE OF IAT 1 OF SAID MOSS TRACT, 40.00 FEET TO THE MOST SOUTHERLY CORNER OF SAID LOT 1; THENCE SDUTH 95 DEGREES 40 MINUTES 20 SECONDS WEST AIANG THE SOUTHWESTERLY PROLONGATION OF THE SOUTHEASTERLY LINE OF LOT 1, 20.00 FEET TO THE NORTHEASTERLY LINE OF LOT 18 OF SAID __ MOSS TRACT; THENCE NORTH 44 DEGREES 16 MINUTES 40 SECONDS WEST ALONG THE NORTHEASTERLY LINE OF IATS 18 AND 19 OF SAIA MOSS TRACT, 40.00 FEET TO THE TRIIE POINT OF BEGINNING. CONTAINS: 800 SQUARE FEET. EXHIBIT "S" ~.~°~.y;•, +T SF'Q IFN~ S~f'%~~ . `V4.~ PQ,V D. P~.r~~l~ 3 ~ ~y~~`,!_ ~ i .{~ =Y~~~~o p+c F ~l9 \\°,I: .lF ~F~PC~< EXHIBIT C LEGAL -ESCRIPTION ~T PORTION OF LOTS 18 AND 19 OF THE MOSS TRliCT, IN THE C2TY OF SANTA M~fIICA~ IN THE COUNTY OF LOS ANGEL~Sr STATE OF CALIP'ORNTA~ AS PER MAP RECORDED IN BOOK 36 PAGES 64 AND 65 OF MAPS~ IN ~ OPFICE OF THE COUNTY RECORDSR OF SAID COL'NTX DESCRIBEB AS FOT,LOWS: COM~NCING AT TIifi MOST WESTERLY CORNER OR IAT B OF SAID M03S R'R1~CT; THENCB NORTH 45 DEGREES 40 MINUTES 20 SECONpS EAST ALONG THE N~RTXWESTERLY Z~SNS OF SAID IAT 35.01 FEEP; THENCE SOUTHERLY AT,ONG A CIIRVE CONCAVE EASTERLY fiAVING A RADIVS OF 31 FEBT AND TANGENT TO SAID NORTHWESTERLY LINE, THROUGH A CENTRAL ANGLE OF L00 DEGREES 37 MINUI'GB 43 SECONDS AN ARC DTS~`ANCE OF 54.45 FEET TO A POINT OF COM~OUNA CIIRVE, A RADIAL LINE TO SAID POIh'T BEARS SOUTH 35 DEGREES 02 I:INUTES 37 SECONDS WESTp ~ THENCS SOU•rttEASTERLY ALONC A CURVE CONCAVE N022THEA3T£RTJY HA.VI27G A RADIUS OF 337 FEET, xHROUGH A CENTRAL ANGLE OF 6 DEGREES 42 Mltvu'1'ES 41 SECONDS A?i ARC DISTANCE OF ~9.47 FEET TO A P~INT IIS THE SOUTHEAST£RLX LINE QF SAIQ LOT B~ DISTANT THEREON NORTH 45 U$GREES AO MINUTES 20 5&CONDS EAST 66.83 FEET fi220M THE MOST SOUTHERLY CORNfiR OF SATb LOT, AI,SO BEING k POINT ON TliE NORTHWESTELRY LZNE OF LOT i9, B$ING TFiE TRIIE POII3T OF BEGINNING j THENCE CONTINIIING ALONG 6AID CURVE THROUGH A CEN`xRAL ANGLE OF 7 DEGRESS 17 MINIITES 19 SECONDS, AN ARC LENGTFI OF 42.87 FEET TO TIiFs $OU'1'ttWES'i'~icLY PROLANGATION OF THE $OUTHEA.STERLY LINB OF LOT I OF 6AZD MOSS TRACT, A RADIAI, LINE TO $AID POINT BEBRS SOUTH 21 DBGREES D2 N.~NUTES 37 SECONDS WSST; THENCE N012TH 45 DEGREES 40 MINUTES 20 SECONDS EAST AYANG SAiD PROLONGATiON Q.SO FEET To THE NORTHEASTERLY LSNS OF IAT 18; THENCE NORTH 44 DEGREES 16 MINUTES 40 SECONDS WE6T NANG THE _ NORTHEASTERLY LZNE OF LOT6 18 AftD 19~ 40.00 FSET TO THE MQST NORTHERLY CORNER OF IAT i9; THENCE SOUTH 45 DEGREES 4D MINUTES 2Q SECUNDS WEST~ ALONG ' THE NORTFiWESTERLY LINE OF IAT 19, 15.88 FEET TO THE TRUE POINT OF SEGIYSNING. CONTAZNS: 347 SQVARE FEET. ~S~,o~PS~,~~~E \v' ~$g'Y vR'~ ~} ~,~' k EXHIBIT "C" • ~~g r ~ t~?o~j 1 1~ s ~ . ra~` ~F CIS+Oi.~.= 5'2 '~JIA3A2GY'1J05zld3d 60:91 Fb. 80 ~3Q EXHIBIT D ' , '- ' '.-~3 ~-_v„}.; ' ' ".'+-e.e"f~h~.5~:'+±es-..y=:.c~T ` __ _ - -- ' ~-.~^-Y^.: :" ~~' '.~S">iwa.:vr'#+"~i ~~h'~ ~ " ." ar ._ _ " a -"j ' .~.M'.._ -^ i f'~ . _ EXHIBIT °D° . [THIS EXHIBIT WILL CONSIST OF THE PROJECT SITE AND ARCHITECTURAL PLANS] EXHIBIT E EXHIBIT °E" LEGAL DESCRIPTION FOR STREET DEDICATION An easement for street purposes over a portion of the northerly corner of Lot A of Moss Tract in the City of Santa Monica, County of Los Angeles, State of California, as per maps recorded in Book 36, Pages 64 and 65, of Maps, in the County Recorder of said County; described as follows: A trianqular parcel approximately sixteen (16) square feet in area bounded by straight tangent lines as follows: Beginning at a point in the northeasterly line of said Lot A located 4.00 feet southeasterly of the most northerly corner of said Lot A, continuing northwesterly along said northeasterly line to the most northerly corner of said Lot A; thence southwesterly along the northwesterly line of said Lot A for a distance of 8.00 feet; thence northeasterly in a straight line to the, point of beginning. EXAIBIT F CITY OF SANTA MONICA GENERAL SERVICES OFF-SITE IMPROVEMENT REQUIREMENTS FOR 1602 OCEAN AVENUE APPROX. ITEM ~ QUANTI7Y UNIT ITEM DESCRIPTION 1 I 1200 S.F. Remove and repiace i00% of sidewaik with 4" thick P.C.C, on Ocean Avenue ` , ~ along entire front of Project Site. , 2 ~ ' EA. Furnish and install 12' high pffim Vee in ~ pubhc planter in front of Project Site on ~ Ocean Avenue. 3 2A00 ~ S.F Grind and pave to 20' from existing P.C C. ~ pavement (double yellow line) on Ocean Avenue 1-1 /2" thick and replace traffic signal detector loops. ~ ~ 4 ~ EA. i Remove and replace curb ramp and , sidewalk at Ocean and Colorado, and construct such other intersecGon improvements on the southwest corner as reasonably dtrected by the City Engineer and City Parking & Traffic Engineer to II i l enhance vehicle movements Vavelling i , eastbound from the Highway Access Road ' and to enhance pedestrian movements across the intersection. 5 120 LF. Remove and replace P.G.C. cura and gutter on Ocean Avenue alongside Pro~ect ~, Sde 6 70 ~ LF. Remove and replace 4' wide sidewalk and ~, ' curb with 4" thick P.C.C, sidewalkand ~ type "A" curb on Hwy. 187 alongside = ' Project Sde. 7 2 EA Des~gn and instali wall mounted walkway = lights on Colorado Avenue walkway alongside Project S~te. 8 2 EA I improve existing street lights on median of ~ ~ Hwy, t87 adjacent to Project Site by I ~nstalfing double mast arm street lights Exhibit "F" , -.- APPROX ITEM QUANTITY UNIT ITEM DESCRIPTION 9 450 LF. l.andscape the Hwy. 187 median and install automatic irrigation system for same adjacent to Project Site. 10 1 LS. Pay $10,000 contribution to widen Santa Monica Pier Bridge sidewalk by 2 feet. 1 t 1 EA. Relocate bus stop on the westem side of the 1600 block of Ocean Avenue further to the south to a location approved by the City's Parlang and TrafBc Engineer, which approvaf sha!{ not be unreasonabfy withheld, in order to accommodate the dnveway entrance to the Project from Qcean Avenue. 12 1 EA Shift the location of the existing Vaffic signal and street light on the southwest corner of the intersection of Colorado and Ocean Avenues to a point which accommodates the improvements to the puBlic right-of-way at this interseetion. City's Director of General Services and Parkmg and Traffic Engineer shall direct Owner where to install the traffic signaf equipment and street light at this location. ~w:3LDAI20.848 Exhibit "F" EXHIBIT G . - --- --^' +o~ev tta~~ ~~ naux+~ t~ FlSS7G1R7tsi 7D = i ASg1959 P.61 • ' ~ ' PROPOSED FXRISNES FOR ' iHE NEU L095iER OEVELOPHENi It is the intent of the architectural desian ~nd the desire cf the ArchitectlDeveloPer to~construct a PioSect of the l~,fqhest qualitY, to be comnensurate aith i.ts very speciel locdtion, to become a - sS,gnature bnilding, and a landmark in £ts oun right., The roof materials to be ut#lized consists of a rad c1aY tile in combxnation with patinated coppar on Yhe main domed roof and vaulted dormers. 7he exterior waxx sw'faees a[?~ con~ist of a smooth plaster to,be painted ahite for compatS.bzlity ufth the Lobster. and aill include ceramic ti].ed ornamental applications. The handrax7,s. adSoinf~g the first and second level terraees. a~ll consist of round painted al.uafnum to wtthstand the ocean's Near. They wSli 6e painted fn accent calar for added aRpeal. ~ 7he exierior afndows e~7.1, cansist ai arch-tapped a~ndoqs on the second level and divSded light aindous on the first flaar. These uindows will be a~t!~+;oun, painted in an accent color co~atible with the handrails. Ca~vas awninss uill be fnstalled ebove fSrst floor aindows to provade sun protection and an additS.on splash of visual stimulation in an attractive accent color. This feature will aJ.so create a relationship, between the ¢xisti.ng Labster buildin9 and the neu building. 7he exterior terrace materials Will censist of a high qualitr paver stYle, either xn stane, ti].e, or decorative concrete.' It Ss intended that the~ walking surfaees wzl), greatly enhance the central courtYard and terraces along wfth the proPOSed landscaping, which ut11 be contafned in planters Wxf.h buf~lt-in seat£ng features. 7he landscapzn9 wi,il consisL of eatare trees and veyetation. and a].ong uith the spaces in the courtYard dt[d terraces. and the dramatic views, will provide an exciting vutdoor envT~ronment to be enjoYed by the eniire community. All exterior J.f,ghting and signage uill be consfistent in sLyle ead co2or. and be coQpatible a~th the architectural theme. The Lobster Nill be comp~ete7.Y renovated. It will Mave a new raof. new exterior stucco,~new aindows and aanings, and freshlr pd5~nted ^Lobster• graphics Without variation froa tha or~g£na~. Ali a6ave grade parkin9 areas will be soreened uith louvers to prgvent v~sita~ bccess_ - 7he imerior finishes uill be completed br future tenants, but they will 6s reyui.red to be competible aith the exterior desisn. EXHIBIT "G" EXHIBIT H LEGAL DSSCRIYTION THAT P~RTION QF LOT& 18~ 19 Af1Q THE SOUTHWESTERLY ONE FiALE ~F A 20 ~002' F1ID~ ALI~EY OF THE MOSS TRACT~ IN THE CITY OF SANT.A MOI~7zCA, IN ~IIE COtINTY oF LOS ANGELES ~ STATE OF CA7+IFORIZIA, AS PER MAP RECORDED IN SQOK 36 PAGES 64 AND 65 OF bIAPS, IN THE OFFICB OF THE CpUNTY RECORDER OF SAID C~UNTY DESCRIBED AS POL7AWS: COMMENCING AR THE MOST iPESTERLY CORNxK OF IAT 8 OF SAIA MDSS TRACT~ THENCE NORTH 45 DBGREES 40 MINU2'ES 20 SECONDS EABT AIANG THE NORTHW85TELRY LINS QF SAID IAT 35.01 FEET; THENCE SOU~I•n~xLY ALONG A CffRVE CONCAVE EASTERLY HAVING A RADIUS OF 31 FEET AND TANGENT TO SAZD NORTFIWES't•txLY LINE THROUGH A CENTRAL ANGLE OF 100 DEGI2EES 37 MIN[STES 43 6ECONDS AN ARC DISTANCE OF 54.45 FEET TO A POSNT OF CdMPOUND CURVE, A RADIAL LINE TO SAID POINT HEARS SOUTH 35 DEGREES 02 MI23UTE5 37 SECONDS WEST; THENCE SOUTHEASTERLY AIANG A CU'RVE CONCAVE NORTHEASTERLX FiAVING A RADIUS OF 337 FEET, 'Z`F?ROUGH A CENTRAL ANGLE OF b DEGREES 42 MINUTES 41 SECONDS AN ARC DISTANCE OF 39.47 PEET TO A POINT IN TAE SOUTHEASTERLY LINE OF SAID LOT B~ ~ISTANT THEREON NORTH 45 DfiGREES 40 MINUSSS 20 SECONDS EAST 66.83 FEET k'FtOM THE MOST SOUTHERT,Y CORNER OF SAID iAT~ BEING THE TRUE POINT OF BEGINNING; TFtENCE COI3TINUING ALONG SAID CURVE TE~20UGH A CENTRP.L ANGLE OF 7 DEGREES 17 MINUl'ES i9 SECONDS, AN ARC LENGTH OF 42.87 FEET Tp THE SOUTHSVESTERLY PROIANGATION 6F TFiB SOUTHSASTBRLY LINE OF SAID TAT 1, A RADIAL LINE TO SAID POTNT SSAEtS SOIITH 21 DEGREES 02 MINu'tES 37 SECOIvDS WEST; THENCE NORTB 45 DEGREES 40 N',INUTES 20 SECONDS EAST ALONG SAID PROLONGATION 30.50 FEET TO THB CENTERLINE OF' SAID 20 FOOT WIDE ALLEY~ THENCE NORTH 44 DEGREES i6 MINUTES 40 SECONDS {9EST A7A1VG THE ~ CENTERLINE OF SAXD ALLEY, 40.00 fiEET TO THE SOUTHEASTERLY LINE QF LOT 8; THENCE SOUTH 45 DEGREES 40 MINUTES 20 SECOIIDS WEST AIANG THE -_ SOUTHEASTELY LINE OF SAID LOT B, 25.88 FEET TO THE TRUE POINT OF BEGINNING. -' ~"v ~~~U '~F CONTAINS: 747 SQUARE FEET. ~r~~ y~~'Zrp`FpOP~ a s ~ =7Y ~q~3 E/ P ~9~ UF CA4~E~~~' EXAIBIT "H" E d -9NI13h2C15-NOS~`'J3d Bd:9i E5, 80 ~3Q CA:BAR:atty\muni\laws\kilbane.ord City Council Meeting 2-22-94 Santa Monica, California ORDINANCE NUMBER 1~z8 (City Council series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROVING THE DEVELOPMENT AGREEMENT BETWEEN JOHN B. RILBANE 6c ASSOCIATES~ INC. AND MYRON L. NATHAN AND LORRAINE NATHAN AND THE CITY OF SANTA MONICA TI-IE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. The Development Agreement attached hereto as Exhibit "A" and incorporated herein by reference between John B. Kilbane & Associates, Inc. and Myron L. Nathan and Lorraine Nathan, (collectively, "Owner") on the one hand, and the City of Santa Monica, a municipal corporation, on the other hand, 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 public necessity, public convenience, and 1 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, be repealed or modified to that extent necessary to make fully effective trie provisions of this Development Agreement. SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provision 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 provision 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 competent jurisdiction, such decision shall not render invalid the remaining portions of this 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 this Ordinance would be subsequently declared invalid or unconstitutional. 2 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. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: ~~~ J SEPH WRENCE A tinq City Attorney 3 Adopted and approved tlus 22nd day of February. 1994 ~l ,,~/~ M~ I hereby cerufy that the foregomg Ordmance No 1728 (CCS) was duly and regulazly introduced and adopted at a meenng of the Ciry Council on the 22nd day of February, 1994 by the followmg Council vote Ayes. Councilmembers: Abdo, Greenberg, Holbrook, Rosenstein, Vazquez Noes: Councilmembers• Genser, Olsen Abstam Councilmembers None Absent Councilmembers: None ATTEST. '"~ i ' ~' /~%~ /~/~ %~i7/nv ~ ;~/8, ~i~-B;s-a^ v .~.i .i - ~ - City Clerk For Contract Review See Contract # 7270 (CCS) ~~ 3~j ~ ~ ~~~