SR-410-003 (5)
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S-A
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C;;o- 003
MAy 1 0 1988
Santa Monica, Californla
C/ED:PB:HW
Council Mtg:
May 10, 1988
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TO: Mayor and City Council
FROM: city staff
SUBJECT: Recommendation To Introduce For First Reading Ordinance
To Amend Development Agreement Between The city of
Santa Monica And National Medical Enterprises For
Project Located At 2600 Colorado Boulevard (Contract
No. 3743 (CCS)).
INTRODUCTION
This report
forwards to the Ci ty Council the Planning
Commission's recom~endation to approve the Third Amendment to the
Development Agreement between the City of Santa Monica and
National Medical Enterprises (Contract No. 3743 (eCS)).
The Third Amendment modifies the te~s and conditions under which
the developer is required to provlde a minimum 60-child day care
center I a 1,500 square foot community center, clarifies use of
the community space, and specifies the scope of payment and
intended use of an arts and social service fee required for the
office development located at 2600 Colorado Boulevard. The
modifications to the Agreement and staff analysis are discussed
in more detail in the Planning Commlssion Staff Report (Exhibit
A) .
BACKGR01:ND
On April 6, 1988, the Planning Commission voted to recommend to
the City Council approva~ of the Third Amendment to the
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Development Agreement for 2600 Colorado Boulevard subject to the
following conditions:
1. That the Third Amendment provide a requirement that the Day
Care Operator possess minimum qualifications as established
by Title 22 of the Welfare and Institution Code. The
developer-owner shall verify in writing to the City that the
operator possesses the required credent~als prior to
operator use of the center. The revised agreement addresses
this issue in Paragraph 6 (a) (1) (pages 2 & 3).
2 . That the Third Amendment prey ide a requirement that the
developer-owner furnish outdoor play equipment adequate to
operate a minimum 60-child day care center or pay an
equivalent sum of money to the City to purchase such outdoor
play equipment. Such outdoor play equipment or payment
shall be provided prior to issuance of a Certificate of
Occupancy. The applicant and City staff feel this provision
is adequately addressed in the amendment as proposed to the
Planning Commission.
3. That the Third Amendment provide a requirement that the
developer-owner furn~sh indoor furnishings and equipment
adequate to operate a m~nirnum 60-ch~ld day care center or
pay an equivalent sum of money to the city to purchase such
~ndoor furnishings and equipment. Such furnishings and
equ~pment or payment shall be provided prior to issuance of
a Certiflcate of Occupancy. The applicant and City staff
feel this provision is adequately addressed in the amendment
as proposed to the Planning COIDm1ssion.
4. That the Third Amendment prov~de a requirement that the day
care operator possess the qualifications set forth in the
Accreditation Criteria & Procedures manual of the National
Academy of E~rly Childhood Programs (1984 publication date) .
The developer-owner shall verify in writing to the City that
the operator possesses the required credentials prior to
operator use of the center. The rev~sed agreement calls for
accreditation within 3 years of opening I Paragraph 6 (b)
(3)(c)(v) (page 6).
5. That the Third Amendment provide for a nominal rental rate
(eg $1.00 per year) should the City be required to exercise
its right to place a child care center operator in the
facility. This issue is addressed in Paragraph 6
(b) (3) (c) (vi) (page 7).
6. That the Third Amendment provide a requirement that the Day
Care Center function independently of the community space
and that the Day Care Center shall not prov~de internal
access/openings to t~e Community Space. This issue is
addressed in Paragraph 7 (a) page 12 of the revised
agreement.
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7. That the Third Amendment provide a requirement that the site
plan and interior floor plans for the day care center and
communi ty space be reviewed and approved by the Planning
Commission prior to issuance of building permits and that
final exterior plans for the day care center and community
space be reviewed and approved by the Architectural Review
Board prior to issuance of building permits. The revised
agreement addresses this issue in Paragraph 6 (c) (page 11).
The Architectural Review Board must revie\v the plans by
Ordinance requirement.
8. That the Third Amendment provide a requirement that "Second
Priority" (children of residents of the city) and
"Non-Priority" children (children of nonresidents that are
not affiliated with the developer-owner) shall be enrolled
in the day care center at a cost of not more than sixty per
cent (60%) of the center's market rate or normal charges,
whichever is less. The developer-owner shall implement a
program under which such reduced rate services are available
only to families that demonstrate financial need for such
reduced rate. Such program shall be subject to prior
approval of the City Manager prior to issuance of a
Certificate of Occupancy. The applicant has not agreed to
this specific language. Rather, the agreement has been
revised to state that it is the owner's intent to benefit
all of its employees, regardless of income level, by
providing affordable child care, Paragraph (G) (b) (7), (page
lO) .
ANALYSIS
The modifications to the Development Agreement outlined in the
Planning Conmiss~on staff Report and amendments forwarded to the
City council since the Commission's action will increase benefits
of the day care center, community space and arts and social
services fee.
The 'Third Amendment will not change the
development parameters of the original agreement and will comply
with General Plan requirements for the site.
The Third Amendment will increase the size of the day care
building from 800 sq.ft. to approximately ~,OOO sq.ft., by
requiring a GO-child day care center operated by a licensed and
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credentialed day care provider. It provides for City approval of
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the day care center operator, or in the event of failure by Nl!E
to operate the center one year, to select and install an operator
of the city's choice.
The Amendment will provide the City greater control in use and
operation of the 1,500 sq. ft. community space which will be
vested in the Cultural and Recreation Services Department.
Further, it requires the developer-owner to make payments of
$25,000.00 to the city for the acquisition of off-site artwork
and $25,000.00 to provide services to homeless persons or
families.
The commission's April 6, 1988 recommendation that the day care
operator possess the qualifications in the Accredltation Criteria
& Procedures manual of the National Academy of Early Chlldhood
Programs (19~4 pUblication date) will ensure that day care
recipients are provided a comprehensive and developmentally-
balanced day care program. Commission recommendations to provide
outdoor play equipment and indoor furnishings/equipment adequate
to support the required 60-child day care center will ensure that
physical recreation needs of the day care child and work area
needs of day care enployees are consistent with the scope of the
original DevelopJ:lent Agreement.
The underlying intent of the
original
Development
Agreement
t" ill
remain
intact
while
permitting a greater level of services and benefits to City
residents.
An issue discussed at the Commission hearing, but which did not
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result in a recommended change, related to infant care. The
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Commission inquired about the provision of infant care to which
National r-redical Enterprises responded that such care ~"'ould be
provided.
The revised agreement provides for infant care for
First Priority children so long as it is needed for them. (See
Paragraph 6(b) (4)).
BUDGET/FISCAL IMPACT
The recommendation presented in this report will increase funds
available to the city for arts and social services by $50,000.
RECOHMENDATION
staff recommends that the city council introduce for first
reading an ordinance approving the Third Amendment to the
Development Agreement bebJeen the City of Santa Uonica and
National Medical Enterprises (Contract No. 3743 (CCC)) as shown
in Exhiblt C, including the site plap.
Prepared by: Paul Berlant, Director of Planning
Wanda Williams, Associate Planner
Depar.tment of Community and Economic Development
Attachments: Exhibit A (Planning commission Staff Report)
Exhibit B (Third Amendment to Development Agreement)
Exhibit C (Ordinance approving Third Amendment to
Development Agreement)
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CITY PLANNING DIVISION
Community and Economic Development Department
MEMORANDUM
DATE: April 6, 1988
TO: The Honorable Planning Commission
FROM: Planning staff
SUBJECT: Third Amendment to Development Agreement for proj ect
located at 2600 Colorado Boulevard (Contract No. 3743
CCS).
Address:
Applicant:
2600 Colorado Boulevard
National Medical Enterprises
SUHMARY
Action: Third Amendment to Development Agreement to modify re-
qu1rements to provide a miniMum 60-child day care center, a 1500
square foot community center and payment of an arts and social
service fee in conjunction with an office development located at
2600 Colorado Boulevard.
Recommendation: Recommendation by the Planning Corr~ission of
city Counc1l Approval.
SITE LOCATION AND DESCRIPTION
The subject property consists of a 3.2 acre site located along
Colorado Boulevard between Twenty-Sixth Street and Stewart
street, having a frontage of 933 feet on Colorado Boulevard. The
si te is currently under construction and contains a completed
five (5) story office building on the west end of the site. Sur-
rounding land uses and zoning are characterized by residential
uses (R-2) locatect to the north and office-industrial uses (M-l,
M-2) located south, east and west of the site.
Zoning Districts: Ml (Limited Industrial), M2 (General
Industrial)
Land Use District: Special Office District
Parcel Area: 3.2 acres (933' x 150')
BACKGROVND
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On April 16, 1982, the City Council approved a Development
Agreement with Colorado Associates (Contract No. 3743(CCS)) for
the development of the 3.2 acre site located at 2600 Colorado
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Boulevard. The development agreement provided for the construc-
tion of:
2. A five (5) story, 312,000 square foot office building.
2. Thirty (30) on site low-moderate income residential units,
3. A minimum size 800 square foot day care facility with ade-
quate exterior open space.
4. A 1500 square foot community room.
5. A 12,300 square foot public park-open space area, located
on site petween the 30 residential units and 5 story of-
fice building.
6. A minimum of forty-five (45) surface level or subterranean
parking spaces designated for the 30 residential units and
a subterranean parking garage for the 5 story office
building.
On February 20, 1987, the City Council approved a First Amendment
to the Development Agreement releasing the developer (Campeau
Corporation California, as subsequent owners) from a contractual
obligation to develop the 30 low-moderate income residential
units on site by providing an in-lieu payment for housing of one
million, five hundred thousand dollars ($1,500,000). The Amend-
ment also called for the relocation of the public park site to
the northeast corner of the site and increased the park size to
17,400 square feet. The obligation to provide the park, communi-
ty space and day care center continued.
A Second Development Agreement Amendment approved by the city
council on April 8, 1987 provided for delet~on of an original
condition to provide openable windows throughout the five (5)
story office building proposed for the western half of the site.
PROPOSED PROJECT
The proposed proj ect described in Attachment "A" is the Third
Amendment to the Development Agreement between the City and the
successor owners. (National Medical Enterprises). The Third
Amendment provides for a 60 child {minimum} day care center and
adjacent 1500 square foot community center. six (6) parking
spaces are required by the Development Agreement for use by the
community space. _ (The Development Agreement does not require
parking for the day care center.) The Third Amendment also
clarifies operational aspects of the community center and
clarifies the Arts and Social Service fee.
MUNICIPAL CODE AND GENERAL PLAN CONFOID1ANCE
The proposed project is consistent with the Municipal Code and in
conformi ty with the General Plan. Development Agreements, as
defined under Section 9800 of the Santa Monica l1unicipal Code
provide for comprehensive planning, approved by Council Ordinance
and subj ect to the rules,. regulations and official policies in
force at the time of execution of the agreement. A Development
Agreement must be found to be consistent with the general plan in
effect at the time of the agreement and may be amended in whole
or in part by mutual consent of the parties to the agreement or a
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successor in interest. The Third Agreement Amendment \nll not
change the development parameters of the agreement and will com-
ply with General Plan requirements for the site.
CEQA STATUS
An initial study originally prepared for this project to accompa-
ny the Development Agreement addressed comments and concerns of
surrounding residents, businesses and elected officials. The
document proposed mitigation measures which were deemed adequate
for construction and use of the office, residential units, park
space, day care center, community room and on site parking
facilities. A Negative Declaration approved in accordance with
the California Environmental Quality Act was approved with the
Development Agreement.
PROPOSED AMENDMENTS TO THE DEVELOPMENT AGREEMENT
The Development Agreement required construction of a minirrum 800
square foot day care center with adequate outdoor play area and
equipment for center children and a minimum 1500 square foot com-
munity space. The developer proposes a larger day care center to
be placed on the site in a manner which will not reduce the
square footage of the public park.
The Development Agreement also required the developer to pay an
Arts and Social Service Fee. The proposed amendment would modify
the formula for the fee to permit a one-time payment of $50,000.
Day Care Center Operator Selection
The original Development Agreement provided for City control in
determination of the day care center operator. The Agreement
gave the City primary responsibility for center operation or
designation of a long term (five years minimum) operator. The
developer-owner retained the right to reasonably approve the
opera tor. -
The Third Amendment vests the developer-owner with control in
determining the center operator. The developer will have primary
responsibility for operating or designating a center operator
with the City retaining the right to reasonably approve the
operator within a sixty (60) day period.
Operator Qualifications/Training
The original Development Agreement specified only that the opera-
tor selected by the City be approved by the developer-owner. The
Third Amendment specifies that the Operator possess the
qualifications set forth in the Accreditation criteria & Proce-
dures manual of the National Academy of Early Childhood Programs
(1984 publication date.) Ii The Amendment provides for regular
staff training opportunities and provision of a developmentally
balanced children's program. Thus, in exchange for giving opera-
tional control to the developer-owner, specific qualification
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standards have been set which will benefit users of the day care
center.
size of Day Care Center
The original Development Agreement required a mlnlmum 800 square
foot day care center to be constructed on site. The Agreement
did not require that the building be constructed to accommodate a
minimum number of children.
The 4000 square foot day care center proposed in the Third Amend-
ment will accommodate the 60 children required as part of the
Amendment. The Third Amendment is more favorable over the pre-
vious Agreement in that the original 800 square foot size build-
ing would have limited use of the day care center to less than 23
children, (under the state Department of Social Services floor
area requirement of 35 sq.ft. per child). The 800 sq.ft. build-
ing would be required to function as a satellite center to a
larger off site center. The Third Amendment day care center will
permit development of an independent center that will provide
greater day care benefits to neighborhood resldents and will not
diminish the requirement to provide the park, community space or
other site requirements.
N~n-Use/Default in operation
The original Development Agreement specified that if after one
(1) year of delivery of the Center space to the city, or for a
continuous perlod of six (6) months any time thereafter, the City
defaulted in operation/subleasing of the center, the center space
would be returned to the developer-owner to employ in a manner
compatible with the site Housing and Building.
The Third Amendment specifies that if for a continuous period of
six months after construction the developer-mmer defaults in
operation/leasing of the center, the City will be given one (1)
year to select a-n Operator. If the City fails to select an
Operator within the one (1) year period, or following discon-
tinued use by an operator, fails to select a new operator during
a given six (6) month period the center space reverts back to the
developer-owner. .The developer owner may then utilize the center
space in a manner which does not increase the intensity of use on
the site.
Center Occupancy
The original Development Agreement indicated the Center would be
ready for occupancy within eighteen (18) months after issuance of
a Certificate of Occupancy for the building.
The Third Amendment indicates the Center shall be ready for occu-
pancy no later than 90 day~ after issuance of the permanent Cer-
tificate of Occupancy.
Community Space Use
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The original Development Agreement specified the developer would
select a use for the co~~unity space based upon three uses
identified in a city conducted survey of the 1/2 nile area
surrounding the building. The developer would select one of the
three compatible uses. If a commercial use were selected the
developer could negotiate with potential operators to conduct the
use on site and could charge rent or similar fees. If the use
were non-commercial, the developer would lease the space to the
City at a long-term triple net lease rate of $1.00 per year. The
City retained the right to sublease the space subject to 50%
payment of sublease profits to the developer.
The Third Amendment indicates the community space shall be used
and operated by the City's Recreation and Parks Department with a
long-term triple net lease ($1.00 per year).
Arts And Social Service Fee
The original Development Agreement provided for the payment of an
Arts and Social Service Fee based upon a formula which factored
in building costs, maintenance costs and other elements. The
Third Amendment addresses the concern that the original language
is ambiguous. The Amendment requires the developer to pay
$25,000.00 to the City for the acquisition of artwork which will
be placed in public places within the city at the discretion of
the Santa Monica Arts Foundation, the Santa Monica Arts
Commission and the City Council. The Amendment also indicates
the developer shall consult with the Arts commission concerning
selection and placement of artwork on the project site. A
separate payment of $25,000.00 shall be made to the City to be
used for services to homeless persons or families, or for the
acquisition, construction, rehabilitation, or operation of a
facility to provide services or temporary shelter for homeless
persons or families. Payment of the fees is to be made no later
than forty-five (45) days following the date of final action by
the City on the o~dinance approving the Third Amendment.
CONCLUSION
The modifications to the Development Agreement improve the
agreement by incr~asing the size of the child care center and
clarifying the operation of the community center and setting the
Arts and Social Services fee(s). The underlying intent of the
original Development Agreement remains intact. Because the City
retains the right to approve or deny final selection of a day
care center operator, will directly operate and maintain the
community space and will assume responsibility for acquiring
specific artwork and social services for public use, the city
will remain an active participant in establishing new services to
benefit City residents. The Third Amendment complies with Zoning
and General Plan requirements for development of the site.
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RECO}~rENDATION
The Planning Staff respectfully recommends that the Planning Com-
mission recommend to the City council that it approve the Third
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Amendment to the Development Agreement between the City of Santa
Monica and National Medical Enterprises.
Prepared by: Wanda Williams, Associate Planner
Attachments: Attachment A- Location Map and Surrounding zoning
Attachment B- Proposed Amendment to Development
AgreeMent
Attachment C- Original Development Agreement
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THIRD AMENDMENT TO DEVELOPMENT AGREEMENT
Between
THE CITY OF SANTA MONICA, CALIFORNIA and
NATIONAL MEDICAL ENTERPRISES
(2600 Colorado Avenue)
That certain Development Agreement entered into as of April
16, 1982, between Colorado Place Associates, a California qeneral
partnership (the "First Prior owner"), and the City of Santa
Monica, a charter city organized and existing under the laws of
the State of California, and its various agencies (collectively,
the "ci ty" ) and governing the development of the real property
located in the City and described in Exhibit "An attached hereto
(the "Property"), as recorded on April 21, 1982, as Instrument
No. 82-413680 in the office of the County Recorder of Los Angeles
County, California, as amended by the Covenant and Agreement
thereto dated August
30,
1984,
between the
city
and
Campeau/Sedgwick Properties, a general partnership organized
under the laws of the State of California, and Campeau
Corporation California, a California corporation, and Grant
Sedgwick, an individual, as further amended by the First
Amendment thereto dated February 20, 1987, between the City and
2600 Colorado Associates, a California limited partnership and
Campeau Corporation of California, a California corporation, the
successors-in-interest of the First Prior Owner (collectively,
the "Second Prior Owners"), as recorded on February 26, 1987, as
Instrument No. 87-287297 in the office of the County Recorder of
said County, as further amended by a Second Amendment thereto
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dated April 8, 1987, between the city and National Medical
Enterprises, Inc., a Nevada corporation (the "Successor Ownerslt),
as successor-in-interest of the First Prior OWner and the Second
Prior OWners to the Property and with respect to and under such
Development Agreement, 8S so amended, as recorded on April 16,
1987, as Instrument No. 87-592069, is hereby amended in the
following particulars by the city and the Successor Owner:
1. Deletion of Earlier Provisions.
Paragraphs 6, 7 and 9 of the Development Agreement and
Paragraph 2(e) of the First Amendment are hereby deleted and the
provisions of this Amendment are substituted in their place.
2. Definitions.
Capitalized terms that are used in this Amendment that are
defined in this Amendment shall be defined as set forth in this
Amendment. Capitalized terms that are used but not defined in
this Amendment shall be defined in the same manner as they are
defined in the Development Agreement, the Covenant and Agreement
thereto, the First Amendment thereto, or the Second Amendment (as
the case may be), except wherever the context of this Amendment
indicates otherwise.
3. Paragraph 6 shall read as follows:
6. Day Care Center.
(a) Preparation o~ Center Space.
(1) In connection with the space
used as the Day Care Center (the "Center"), the
Successor Owner agrees to provide such improvements,
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interior and exterior, as may be required under all
state, federal, and local laws, rules and regulations
applicable to space utilized for day care centers,
including, but not limited to, the following:
(A) Finished perimeter walls
including windows and doors.
(B) Finished interior
partition walls adequate to enclose the spaces
required by California State Standards for day care
centers (toilet rooms, office, staff rest area).
(C) Toilet room fixtures and
plumbing.
(D) Carpeting, vinyl floor
tile and wall base, acoustic tile ceiling and stubbing
for natural gas cooking equipment.
(E) Heating and ventilating
system, electrical system, including fluorescent
lighting, and fire sprinklers meeting Fire Department
regulations, if required.
(2) For purposes of this Section,
"finished wallsn shall mean qypsum board, taped,
spackled, and painted.
(3) The Successor OWner shall
provide outdoor play equipment valued at no less than
$3,000.00, or shall provide the sum of $3,000.00 to
the city to purchase such outdoor play equipment.
(4) The Successor Owner shall
provide necessary furnishings and equipment for the
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indoor area valued at no less than $2,000.00, or shall
provide the sum of $2,000 to the City to purchase
such furnishings and equipment for the indoor area.
(5) The Center shall be provided
and ready for occupancy no later than ninety (90) days
after the issuance of the permanent Certificate of
Occupancy for the Building.
(6) The space and related
facilities for the Center shall, under current
California licensing standards, be sufficient to
enable the Center to be currently licensed by the
state of California as a day care center for a minimum
of sixty (60) children.
(7) The improvements comprising the
Center shall not diminish the size of the portion of
the Property to be developed as the Park.
(S) Except as otherwise provided in
subparagraph (b) below, the space for the Center shall
be provided for the life of the Building.
(b) Use and Operation of Day Care Center.
(1) The space and improvements
dedicated and intended for use as the Center (the
"Center Space") shall be used and operated as a day
care center in accordance with the prOVisions of this
subparagraph (b) as long as it is required to be used
and operated as such under this subparagraph (b).
(2) As long as the Center Space is
operated as a day care center:
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(A) It shall be licensed as
such and shall be operated by a qualified licensed
operator selected in the manner provided in this
subparagraph (b) ("Operator").
(B) The Priority Children as
hereinafter defined in subparagraph (6) shall have
priority over all other children to be admitted and to
attend the Center.
(3) The Successor owner shall have
the right to lease the Center Space to an Operator
selected by the Successor OWner, which may be owned
(directly or indirectly) by or otherwise affiliated
with the Successor Owner. However, such Operator is
subject to approval by the City in accordance with the
following:
(A) Successor Owner shall
notify the City in writing of the identity,
qualifications, experience, and references of the
Operator selected by Successor Owner. The City shall
have a period of sixty (60) days from receipt of said
notice to advise Successor owner in wri tinq of any
reasonable objections the City may have to the
Operator selected by Successor Owner.
(B) The failure of the city
to object in writing to the Operator selected by
Successor owner within the prescribed sixty (60) day
period shall be deemed to constitute the City's
approval thereof.
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(C) Notwithstanding the
foregoing, it shall not be reasonable for the City to
object to an Operator selected by Successor Owner if
all of the following conditions exist:
(i) The staff employed
by the Operator possess the qualifications set forth
in the Accreditation criteria & Procedures manual of
the National Academy of Early Childhood Programs (the
"Criteria") published in 1984.
(ii) The Operator has
agreed to provide regular training opportunities for
staff to improve skills in working with children and
families and plans to provide such opportunities to
staff at the Center.
(iii) The program
offered and administered by the Operator meets the
group size and staff-child ratio in each age group set
forth in the Criteria.
(Iv) The program
offered and administered by the Operator is
developmentally appropriate in all areas: social,
emotional, cognitive, physical, and language.
(v) Within three (3)
years of the date the Center Space is ready for
occupancy, the program offered by the Operator shall
be accredited by the National Academy of Early
Childhood Programs.
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(vi) The Center Space
is provided to the Operator at an annual cost of not
to exceed One Dollar ($1.00).
(D) Within forty-five (45)
days of the date of the expiration of each three (3)
year period during which the Center is operated by an
Operator selected by Successor OWner, Successor Owner
shall verify in writing to the city that the
operations of the Center are in compliance with the
provisions of subparagraphs (3) (c) (i), (ii), (iii),
and (iv) above. In addition, upon reasonable notice
to Successor Owner, ci ty shall have the right to
inspect books and records kept by Operator or
Successor Owner related to operation of the Center to
ensure compliance with the criteria and with this
Agreement.
(4) So long as reasonably required
by First Priority Children, the program offered by
Operator shall include infant care.
(5) If, after construction of the
Center is completed and the Center is licensed and
occupied, the Center is at any time not operated by
the Successor Owner or a qualified licensed Operator
selected by the Successor OWner for a continuous
period of six (6) months, or Successor Owner elects
not to operate the Center, Successor OWner shall
immediately notify the city in writing. within one
year of the date of such notification by Successor
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Owner, the City shall have the right to select an
Operator to whom the Successor Owner has no reasonable
objection. It shall not be reasonable for Successor
Owner to object to an Operator selected by City if the
conditions set forth in subparagraphs 6(b)(3) (C)ei) -
(iv) exist. The Successor OWner shall be obligated to
lease the Center Space to the Operator selected by the
city within sixty (60) days after the date upon which
the ci ty provides the Successor Owner with written
notice of the name, address, and description of the
experience and financial qualifications of the
proposed Operator and such other information on the
proposed operator as the Successor OWner may
reasonably request. The failure of the Successor
Owner to object in writing to the Operator selected by
city within said sixty (60) day period shall be deemed
to constitute the Successor OWnerts approval thereof.
The Successor Owner shall be obligated to lease the
Center Space to the Operator selected by the city at a
rental rate specified by the City, which may be as low
as $1.00 per year, with the Operator being obligated
to pay all maintenance and repair costs, insurance
premiums and taxes and for a rental term to be
determined by the City. If the rental term exceeds
five (5) years under an option or other agreement,
Successor OWnerts approval must be obtained. If the
rental rate specified by the City exceeds $1. 00 per
year, such excess shall be paid to and divided equally
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between the City and the Successor Owner. Otherwise,
such lease shall be on such reasonable other terms and
conditions as may be appropriate.
During any period that the Center is
not being operated, Successor Owner may use the Center
for its own limited purposes (e. g., storage or any
similar activity that does not intensify the use of
the site). During any such period of use, Successor
OWner shall make no structural changes to the Center
nor shall it place any encumbrances on the Center that
would prevent Successor Owner from vacating the Center
upon thirty (30) days' written notice.
(6) If the City's right to select
an Operator arises under the preceding subparagraph
(4) and the City fails to select an Operator to whom
the Successor owner has no reasonable objection within
the prescribed one year period, above, or the City
fails to operate the Center for any continuous six
month period, the Successor Owner shall be released
from all obligations under this Paragraph 3 and all of
the Center Space shall automatically revert to the
Successor OWner. If such reversion occurs, Successor
Owner may use the site for any activity which does not
materially increase the intensity of use of the site
or require additional on-site parking. Such use may
include storage or use as an ancillary facility by
then-existing occupants of the Building.
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(7) As used in this Amendment, the
term "First Priority Children" means children of
individuals employed in the Building, tenants of the
Building, or employees of the Successor OWner or any
of its subsidiaries or affiliates whose offices are
located in the City of Santa Monica or who live within
the City of Santa Monica or any future owner of the
Property or employees of a future owner of any
subsidiary or affiliate of a future owner of the
Property whose offices are located on the Property.
It is Successor Owner's intent to benefit all of its
employees, regardless of income level, by providing
affordable childcare services to First Priority
Children. As used in this Amendment, the term "Second
Priority Children" means children of residents of the
ci ty. The parent or guardian of a Second Priori ty
child shall be required to show a driver's license or
identification card and a recent utility bill in order
to establish residency within the city. If at any
time vacancies exceed nine (9) spaces, Successor Owner
shall notify the city in writing within thirty (30)
days and shall conduct a reasonable outreach effort
among residents in the city of Santa Monica to fill
such vacancies.
(8) When and if the Center has
enrollment capacity in excess of the First Priority
Children enrolled in the Center, such excess shall be
offered for use by children who are Second Priority
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Children, followed by non-priority children. The
enrollment fees and tuition for the Second Priority
and non-priority children shall be equal to or less
than the fees charged to Priority Children and/or the
equivalent value of such fees as an employee benefit.
Once a Second Priority or non-priority child has been
accepted for enrollment at the Center, such child
shall not be displaced for a higher priority child who
subsequently applies for enrollment.
(0) Site Review. Site and interior floor
plans shall be subject to review and approval by the
Planning Commission. Such review and approval shall
take place within sixty (60) days of submission of
plans by Successor Owner.
4. Paragraph 7 shall read as follows:
7. Community Space.
(a) preparation of community Space. The
Community Space shall be provided and ready for use
within eighteen (18) months after a certificate of
occupancy is issued for the Building, and shall be
provided for the life of the Building, except as
provided under subparagraph (c) below. The Successor
Owner shall provide the following: finished perimeter
walls including doors and windows, vinyl floor tile
and wall base, acoustic tile ceiling, fluorescent
light fixtures, roughed-in plumbing for toilet rooms,
primary electrical service to the space, an allowance
of up to $4,000 for the heating and ventilating
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system, and fire sprinklers if required to meet Fire
Department regulations. Although the community Space
may be located contiguous to the Center Space, the
Community Space shall have its own separate entrance
and shall share no common facilities with the Center
Space.
(b) Use an4 operation of community Space.
The Successor OWner shall lease the Community Space to
the city on a long-term triple net lease at the rate
of $1.00 per year. The community Space shall be used
and operated by the city's Recreation and Parks
Department for public meetings and other public
recreational and civic activities. The use of the
Community Space shall not unduly interfere with the
operation of the Center and shall be compatible with
the operation of the Center.
(e) Release of community Space. If at
any time after completion of the Community Space the
City fails to use the Community Space on a continuous
basis for a one (1) year period, the community Space
shall be released from all conditions herein and shall
revert to Successor Owner for any use selected by
Successor owner that is compatible with the Building
and the Center.
ed} site Review. Site and interior floor
plans shall be subject to review and approval by the
Planning Commission. Such review and approval shall
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take place within sixty e60} days of submission of
plans by Successor Owner.
5. Paragraph 9 shall read as follows:
9. Arts and Social Services Fee.
(a) Off-site Art. Successor OWner shall
pay to the Santa Monica Arts Foundation (the
"Foundation") Twenty-Five Thousand Dollars
($25,000.00) for the acquisition of artwork which will
be placed in public places within the City at the
discretion of the Foundation, the Santa Monica Arts
Commission (the "Arts Commissionlt), and the city
Council. Such sum shall be paid not later than 45
days following the date of final action by the City on
the Ordinance approving the Third Amendment to the
Development Agreement. Successor Owner shall have no
ownership interest in any artworks acquired by the
Foundation with such donated funds.
(b) On-Si te Art. Successor Owner shall
consult with the Arts Commission concerning the
selection and placement of artworks within the
proj ect. Final selection and placement of artworks
within the Project shall ~e in the sole discretion of
Property owner. Neither the Arts Commission nor the
Foundation shall have any ownership interest in any
artworks within the Project.
(c) Homeless services. Successor Owner
shall pay to the City not later than forty-five (45)
days following the date of final action by the City on
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the ordinance approving the Third Amendment to the
Development Agreement, the sum of Twenty-Five Thousand
Dollars ($25,000.00), which sum shall be used by the
city only for services to homeless persons or
families, or for the acquisition, construction,
rehabilitation, or operation of a facility to provide
services or temporary shelter for homeless persons or
families.
6. Status of Development Agreement.
Except as amended by this Amendment, the Development
Agreement, as amended by the First Amendment and Second
Amendment, shall remain in full force and effect in accordance
with its terms and conditions. Notwithstanding the foregoing, in
the event of any inconsistency between this Amendment and the
Development Agreement, as amended by the First and Second
Amendments thereto, the applicable provisions of this Amendment
shall govern.
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Signed at Los Angeles County, california, as of
, 1988.
CITY OF SANTA MONICA,
a municipal corporation
By
JOHN JALILI
City Manaqer
APPROVED AS TO FORM:
ROBERT M. MYERS
city Attorney
NATIONAL MEDICAL ENTERPRISES, INC.
a Nevada corporation
By
RICHARD K. EAMER
Chief Executive Officer and
Chairman of the Board of
Directors
By
Its:
Ild310jhpc
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STATE OF CALIFORNIA
ss.
COUNTY OF LOS ANGELES
On , 1988, before me, the
undersigned, a Notary Public in and for said state, personally
appeared John Jalili, known to me to be the City Manager of the
City of Santa Monica, a charter city, organized and existing
under the laws of the State of California, known to me to be the
City that executed the within Instrument, known to me to be the
person who executed the within Instrument on behalf of the City
therein named, and acknowledged to me that such City executed the
wi thin Instrument pursuant to its Charter or ordinance of its
City Council.
WITNESS MY HAND AND OFFICIAL SEAL.
Notary Public
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STATE OF CALIFORNIA
)
)
)
ss.
COUNTY OF LOS ANGELES
On , 1988, before me, the
undersigned, a Notary Public in and for said state, personally
appeared , personally known to me or proved to
me on the basis of satisfactory evidence to be the person who
executed the within instrument at
of the partners of the partnership that executed the within
instrument, and acknowledged to me that such partnership executed
the same.
WITNESS MY HAND AND OFFICIAL SEAL.
Notary Public
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CA:RMM:lld320/hpc
City Council Meeting 5-10-88
Santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA APPROVING THE THIRD
AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF SANTA MONICA AND NATIONAL
MEDICAL ENTERPRISES, INC.
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1.
The Third Amendment to Development Agreement
attached hereto and incorporated by reference between the City of
Santa Monica, a municipal corporation, and National Medical
Enterprises, Inc., a Nevada corporation, is hereby approved.
SECTION 2. Each and every term and condition of the Third
Amendment to the Development Agreement approved in section 1 of
this ordinance shall be and is made a part of the Santa Monica
Municipal Code and any appendices thereto. The City council of
the city of Santa Monica finds that the public necessity, public
convenience, and general welfare require that any provision of
the
Santa Monica Municipal
Code
or
appendices
thereto
inconsistent with the provisions of this Second Amendment to
Development Agreement, to the extent of such inconsistencies and
no further, is hereby repealed or modified to that extent
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necessary to make fully effective the provisions of this Second
Amendment to Development Agreement.
SECTION 3. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this ordinance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of 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 the Ordinance would be subsequently declared
invalid or unconstitutional.
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f/()/tJo3
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 after 30 days from its adoption.
APPROVED AS TO FORM:
(4~-t ~ ~--,__
ROBERT M. MYERS ()
City Attorney
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