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SR-410-003 (7) --./ . f/tJ- 003 . n SEP 2 2 1987 C/ED:CPD:DKW:bz COUNCIL MEETING: September 22, 1987 TO: Mayor and City council Santa Monica, California FROM: City staff SUBJECT: Development Agreement Between the city of Santa Monica and Sopac Properties, Inc. INTRODUCTION This report recommends approval of the proposed Development Agreement for Colorado Place Phase III. This matter has been previously reviewed by the Planning Commission at meetings held on April 6 and August 10 and 24, 1987. Additional information regarding this project was transmitted to the Council several weeks ago in an information item which included the Fina: EIR, Final supplement to the ErR, correspondence, and other materials. The report recommends approval of the proposed Agreerr.ent. Required mitigation would adequately address identified adverse effects on traffic and air quality, and the development has many positive effects of general benefit to the city and its residents. The project is consistent with the basic objectives of the Land Use Element for the Special Office District--objectives which were the result of over three years of intense study and public debate. One of the basic principles of the Land Use Element was to guide growth toward the areas of the city best suited to r-J$ SfP 22 1987 - 1 - 1 ~ . . accommodate it from the standpoint of access, existing infrastructure, and minimization of impacts on adjacent residential neighborhoods. The Land Use Element found that the eastern half of the Olympic Corridor area "is best suited to large-scale office development since it is adjacent to freeway access and the eastern city limit.t1 Southmark's proposed development project was formulated in direct response to the Land Use Element standards adopted by the City only three years ago, and is the first major project in the area to be proposed subsequent to the adoption of the Element. The Agreement also results in settlement of the litigation between the City and the developer, allowing the relocation of the hotel to Phase III from Phase II and resolving the dispute about allowable height, both of which raised significant community concerns; provides many safeguards which will promote a high-quality, well-planned project; will result in accelerated payment of a $3.3 million housing and parks fee; will provide an estimated 3,492 jobs; will create new net City revenues in excess of $1.2 million per year after accounting for such costs as police, fire and other City services; will allow imposition of comprehensive and coordinated public works requirements; would resul t in payment of a $250,000 child care contribution; would include at least $250,000 in pUblic-oriented artwork on site; would result in a lower FAR than allowed by the City's Land Use Element: and would result in approximately 20% lower peak-hour traffic generation than the all-office development envisioned by the Land Use Element. - 2 - /' /~ !' . . SITE LOCATION AND DESCRIPTION The 12.93 acre parcel, currently occupied by light industrial buildings and a school, is located in the Special Office District; current zoning in this area is manufacturing, M2. street frontage on Colorado Avenue is 1,212.9 feet. Surrounding uses consist of light industrial and general commercial office buildings. PROPOSED PROJECT The proposed project is a Development Agreement between the City of Santa Monica and Sopac Properties, Inc. If executed, the developer would have the right to construct a 9-story, 270,000 square foot hotel with at least 250 rooms, public meeting space, restaurant facilities and ancillary retail space: 35,000 s~Jare feet maximum of medical office space, a 60,000 square foot maximum health club, 25,000 square feet maximum of restaurants, a maximum of 10,000 square feet of additional retail space, a maximum of 20,000 square feet for banks and savings and loans, and approximately 620,490 square feet of general commercial office space. Based on this allocation of space with a 300-room hotel, the proposed number of parking spaces would be 2,834. DEVELOPMENT AGREEMENTS Section 9800 of the Santa Monica Municipal Code provides for the execution of development agreements pursuant to Article 11, Section 7 of the California Constitution and pursuant to Government Code Section 65864 et. seq. The expressed intent of - 3 - ~ ~ . . the state law is to provide "assurance to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules and regulations, and subject to conditions of approval." In other words I the purpose is to protect applicants from changes in policies and ordinances after approval but before completion of the project. Development agreements are most often utilized for large projects which will take a number of years to build out. since the local jurisdiction is relinquishing its right to change its policies and ordinances (in relation to the particular project) for a specified period of years, it is not uncorr~on for cities and counties to require developers to provide additional amenities and facilities which would not be required for projects without development agreements. The proposed Phase III Agreement includes such special provisions which are of benefit to the City. Background On October 27, 1981, the Santa Monica City Council approved a Development Agreement with Colorado Place Limited for a IS-acre, two-phase development known as Colorado Place. Colorado Place Phase I, located at 2401-2525 Colorado Avenue, was completed in 1983 and consists of three office buildings, a restaurant complex and other ancillary uses with a combined building area of approximately 450,000 square feet, all served by a subterranean parking garage. - 4 - "":. iJf . . The Development Agreement has been amended three times by adopted City ordinances on July 26, 1983, April 24, 1984, and May 28, 1985, respectively. Southmark purchased Welton Becket Associates' interest in January 1985, with the intention to proceed with the unconstructed Phase II component. However, the developer indicated that the original approved concept for the hotel (designed by Welton Becket Associates and approved by the City) was not economically feasible and that the design was not aesthetically satisfactory. Therefore, Southmark submitted a revised hotel plan that included relocating the active portion of the park required for Phase II to Phase III and developing a third office building in Phase II, with an overall increase in park acreage. City staff felt that the plan was inconsistent with the approved Developmen~ Agreement due to the hotel height and park relocation. Due to perceived City and community opposition, Southmark submitted an alternate hotel design that would preserve the Phase II park. Staff, however, believed that the hotel also exceeded the height limits permitted under the Development Agreement. Southmark initiated litigation with the City regarding the allowable height of the hotel under the approved Development Agreement. From discussions with the City and community, Southmark agreed to relocate the hotel from Phase II to use the adjoining property, the Phase III project site, to resolve the litigation. (See Settlement Agreement previously provided to the Council.) The proposal to amend the existing Development - 5 - / ~ ! . . Agreement for the Colorado Place Phase II development includes moving the 9-story hotel and health club to the Phase III site. At full occupancy, Phase III would generate an estimated 3,492 jobs in the retail, restaurant, office and hotel categories; many of these jobs would be oriented toward low and moderate income residents. Peak employment for construction is estimated at 400-500 jobs. Based on the fiscal analysis in the Environmental Impact Report and staff calculations, the City would realize significant net revenue if the Phase III project is constructed. The proj ect would generate increased property and sales taxes in addition to transient occupancy taxes. Net revenues (after City costs are accounted for) to the City are estimated to be over $1,200,000 per year once the project is completed. One-time payments would include the $3.3 million housing and parks fee, at least $50,000 from the City's Recreation Unit Tax, a $250,000 child care contribution, and $250,000 for art works to be placed in public areas of the project. MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE Municipal Code Chapter 8, section 9800-9819 established the City's procedures for adopting development agreements. In order to recommend approval of a development agreement, the City Council must determine that the proposed development agreement "is consistent with the general plan and any applicable specific plan." (Santa Monica Municipal Code, Section 9814.) - 6 - ~ . . . Development standards (such as permitted uses, density or intensity of use, maximum height, etc.) provided for in a development agreement may vary from those of the zoning district but the project must be in conformity with the General Plan. The proposed project is compatible with the allowable intensity of development, land uses and other development parameters for the Special Office District set forth in the Land Use Element and the proposed Zoning Ordinance. With approval of two pending amendments to the Land Use Element, the proposed project is in conformity with the General Plan. Land Use Element With approval of the General Plan Amendments discussed below, the proposed project complies with the standards of the Land Use Element. Permitted uses in the Special Office District include large scale office and related uses. Specifically, the proposed Development Agreement is consistent with Land Use Element Objective 1. 8 to "provide opportunity for office and advanced technology uses requiring large floor areas" and the following policies: 1.8.1 The eastern portion of the Olympic Corridor should be the priority location for office and advanced technology uses. 1.8.2 Allow retail uses necessary to serve office and advanced technology uses. The proposed project also conforms to Land Use Element Objective 3.1 to tlpreserve Santa Monica's existing solar access, low scale, and cultural resources consistent with the overall goals of the Land Use Element;" Land Use Element Objective 3.3 to "enhance the - 7 - , f . . pedestrian scale and character of streets and public spaces;" and Land Use Element Objective 3.4 to "enhance the image and the unique character of the commercial districts and residential neighborhoods in the City" through the following urban design policies for the Special Office District: 3.3.15 Reduce the visibility of surface parking, by requiring that buildings or landscaping form a specified percentage of the street facade on major arterials. 3.3.16 Encourage five to twenty-foot setbacks from the street front and the Southern Pacific Railroad right-oi-way in order to allow room for landscaping and usable public open space. 3.4.9 Require landscaped open space visible from the street, including landscaped setbacks from the street, in order to create a "garden office" or tlcampus" environment. Encourage usable open space. On August 24, 1987, the Planning Commission recommended approval of a proposed General Plan Amendment for the Land Use Element's Special Office District that pertains to any single parcel of five acres or more for which a site Review Application is required and any office development in excess of 15,000 square feet of new construction or 10,000 square feet of addition to an existing development. The proposal is to amend Land Use Element Policy 1.8.7 by modifying the Special Office District Site review findings to allow the project mitigation program to be satisfied through provision of off-site parks and public open space, and in-lieu fees. Presently, Policy 1.8.7 requires that the majority of open space mandated by the mitigation program be provided on-site for projects which exceed three stories. The proposed Amendment also deletes the language requiring denial of a site review if the proposed development project does not - 8 - "l I . . include an on-site park and it provides for a new site review finding requiring sufficient on-site open space for the project to meet the urban design policy's intent of creating a "campus" environment. In addition, the proposed Amendment modifies the Land Use Element I s Implementation section by eliminating the requirement for on-site parks in the special Office District and states that the project mitigation program objectives must be satisfied by mutual agreement of the city and the developer. A second General Plan Amendment was recommended for approval by the Planning Commission on August 24, 1987. This Amend:::ent specifically relates only to the Southrnark Development Agreement and would implement Southmark's agreement to transfer the hotel use approved for the Colorado Place Phase II site to Colorado Place Phase III. The proposed General Plan Amendment would clarify that this transfer is consistent with the General Plan. Circulation Element The proposed Colorado Place Phase III project conforms to the objectives and policies of the Circulation Element. Objective 4.2 reads, "Protect the environment on local residential streets by minimizing the intrusion of vehicular traffic and parking into residential neighborhoods. " The proposed project conforms to the following policy: 4.2.3 Locate new development and their access points in such a way that traffic is not encouraged to utilize local residential streets and alleys for access to the development and its parking. - 9 - .. , . . Objective 4.3 reads "Provide road and highway facilities to meet anticipated needs for movement of people and goods consistent with the goals of the Land Use Element." The proposed project does not conflict with the following policies: Safe or acceptable levels of service on City streets shall be a criterion for evaluation of new development proposals. Level of Service shall be "c" for collec- tor, feeder, and local streets and "D" for arterials or better where possible. The City Council recently provided confirmation of the City IS 4.3.1 long-standing interpretation of this policy: that it expresses a guideline to be considered in evaluation of development projects. The Council also stated that the Planning Commission may modify or deny projects based on adverse traffic effects, along with consideration of other factors. The September 11, 1987 report from DKS Associates stated that all major intersections immediately around the project "are projected to operate at LOS D or better in the long term with the mitigation measures proposed by Southmark Pacific Corporation and mitigation measures that reay be required of other developments in the vicinity of Colorado Place Phase III." 4.3.3 The City shall work cooperatively with CalTrans to implement freeway ramp improvements at Cloverfield or at 20th Street and at 4th street to accommodate planned growth in the Special Office District and Downtown/ Oceanfront areas respectively. The purpose of the improvements is to improve traffic movement or mitigate existing traffic problems. All such improvements shall be designed to protect existing residential neighbor- hoods. Particular attention should be paid to mitigating the potential problems of traffic intrusions into residential neighborhoods especially along 4th street south of pico Boulevard, in the vicinity of the Cloverfield on and off ramps (or the 20th Street freeway ramps), and in the Downtown/Oceanfront areas. - 10 - .. s 4.3.6 4.3.8 4.3.9 4.3.10 4.3.11 . . On street loading and unloading shall be discouraged. Use of alley access to service residential and commer- cial buildings shall be encouraged. Promote programs to increase ridesharing as measured by average auto occupancy, from 1.2 individuals per vehicle to 1.4, or better. Minimize peak hour trips by encouraging staggered work hours and land uses which do not generate peak hour trips. Maximize the efficiency of the existing roadway syste~ through traffic signal synchronization and other traffic flow improvements, as long as the impact on residential neighborhoods is analyzed and carefully considered. consider measures to facilitate the north-south flow of traffic on 26th, 20th, 17th, 14th and 11th streets con- sistent with safety and the needs of nearby residents. Objective 4.5 reads, "Encourage an improved public transit system capable of accommodating ten percent or more of all trips generated in the city by the year 2000." The proposed project does not conflict with the following policies: 4.5.2 4.5.7 The city should endorse the concept of rail rapid transit, either heavy rail or light rail, serving the city of Santa Monica and shall promote locating a transit station in the Downtown area. The City should select the most appropriate type of transit system and the most appropriate route after public review and consideration of the options available to the city. If feasible, an employee transit shuttle should be implemented to link the Special Office District, Indus- trial conservation District, Santa Monica Business park, and possibly the Airport, to regional transit and peripheral parking facilities. Obj ective 4.6 reads "Protect and encourage non-motorized trans- portation, especially bicycle routes and pedestrian trails, consistent with the goals of the Land Use Element." The proposed project conforms to the following policies: 4.6.2 Encourage new development to provide pedestrian paths through projects. - 11 - .. $ . . 4.6.3 Assist in the implementation of a new Class 1 bicycle route and pedestrian trail along the Southern Pacific Railroad right-of-way corridor when and if the right- of-way is abandoned as a rail line. Objective 4.7 reads "All new development should accommodate project-generated parking consistent with encouraging alternative transportation systems management programs. " The proposed project conforms to the following policies: 4.7.6 ci ty parking standards should be adhered to, except with respect to parking requirements for hotels, resi- dential uses, and mixed use projects which need further study. Encourage priority location of parking for van pools and car pools, to provide an incentive for these trans- portation alternatives. 4.7.1 The concern which has been most frequently expressed in connection with Phase III is the traffic anticipated to be generated by this and other projects. Because staff shares the concern over this issue, it required an extensive traffic study as part of the environmental analysis for the Phase III project. This study was augmented by a supplemental analysis prepared in response to questions raised by the Commission at the April 6 hearing and further analyses of August 20 and September 11, 1987. After review of these materials, along with the current draft of the Development Agreement, staff believes that the Phase III traffic impacts will be satisfactorily mitigated by the measures specified in Exhibit 0 to the Agreement. In considering the traffic issues, staff believes that the Council should keep the following factors in mind: 1. One major goal of the City's Land Use Element was to allow a manageable amount of growth in Santa Monica in order to retain control over mitigation measures and to obtain the employment, - 12 - " 4 . . revitalization, and economic benefits to be derived from development. Another major goal of the Land Use Element was to direct growth to areas best able to accommodate it. The Special Office District was created to channel some of the office demand away from Wilshire Blvd. and other strip commercial streets where it would have a greater impact on residential neighborhoods. The achievement of these two goals, along with a balancing desire to protect the city's quality of life, led to the standard established for the special Office District regarding development intensity. The 2.0 floor area ratio was adopted after detailed land use and circulation studies, environmental analysis, and balancing of a variety of goals. 2. Phase III will generate significantly less peak hour traffic than would result from an office project with a floor area ratio of 2.0 for at least three reasons: the FAR is 1.85: only about 65% of the square footage is anticipated to be office development wi th the remainder consisting of hotel, health club and other ancillary uses which generate substantially fewer peak hour trips than does office space; and because of the mixed-use nature of the project, there will be fewer trips generated than would be true if each individual use stood alone. According to the traffic consultants, the peak-hour traffic which would be generated by Phase III will be equivalent to an all-office project with an FAR of 1.6. 3. By including "long-term" projects, the traffic study went far beyond that needed to analyze the impacts of Phase III traffic. Long-term projects are those over which the City maintains approval and mitigation authority, since such projects may be modified, denied, or may have traffic mitigation requirements imposed on them. When Phase III impacts are considered with the other "short-term" projects, and considering the mitigation measures which Southmark has agreed to perform, impacts are substantially less than when long-term projects that mayor may not be approved or modified or mitigated are considered. The September 11, 1987 letter from the traffic consultant concluded that the intersections for which Southmark will perform mi tigation work will operate at level of service liD" or better when taking into account mitigation measures to be performed by other projects such as the Water Gardens. 4. The DKS traffic study was intentionally prepared on a conservative basis. It did not consider mitigation measures that might be required of other developers by the City, assumed that proposed proj ects not yet approved would be approved at their requested intensity, and would not be downsized, did not reduce traffic impacts by the amount of traffic generated by land uses which currently exist on many of the sites of proposed projects, and did not take into account traffic reductions attributable to Transportation systems Management (TSM) measures or the pending City TSM Plan. - 13 - .. . . 5. In addition to its required mitigation measures, Phase III will be required to participate in future TSM ordinances and also in any area-wide traffic assessment district. staff anticipates that upon completion of the proposed traffic study, certain specific improvements will be recommended and financed from this type of funding mechanism. Some residents have suggested delaying the approval of Phase III until the pending City-wide traffic study is completed. staff believes that this would be inappropriate and unnecessary due to the developer's agreement to participate in the assessment district. CEQA STATUS An Environmental Impact Report was prepared for this project and finalized after a 45-day public review period on December 3, 1986. A variety of potential environmental impacts including transportation and circulation, air quality, noise and hydro- carbon contamination were examined. In the Transportation and Circulation Section, 29 intersections and two freeway off-ramps were studied. As a result of the Colorado Place Phase III project, there will be a higher volume to capacity ratio in both the morning and evening peak hours. The EIR proposes mitigation measures at seven intersections in an effort to help alleviate this project-generated traffic including widening Colorado Avenue and Cloverfield Boulevard. These mitigation measures listed in the EIR have been incorporated into Section 9(j) of the proposed Development Agreement. Several maj or proposed developments in the Special Office District will contribute to increased traffic - 14 - ... .. . . congestion at most intersections in the project area. However, the traffic analysis does not account for the fact that many of those projects would be required to perform mitigation measures to reduce their traffic impacts. In this respect, the traffic analysis likely overstates adverse traffic impacts. The EIR found that there will be both short- and long-term impacts on local air quality, primarily because existing air quality does not ~eet certain state and Federal standards, rather than as a result of the project impacts. The document proposes various mitigation measures including maintaining equipment engines in proper tune and watering techniques to reduce fugitive dust during construction in order to reduce the short-term impact on the community. The EIR determined that the proposed Phase III development will raise carbon monoxide levels, a condition that cannot be completely mitigated because the project area already exceeds the federal a-hour emission standards. The EIR consultant concluded, however, that the carbon monoxide emissions from Phase III should not otherwise be determined to be significant. The proposed Development Agreement does include measures that would reduce adverse effects on air quality, including a traffic and emission abatement plan. The City Council resolution certifying the EIR contains a statement of overriding consideration for the adverse air quality finding. The Planning Commission recommended certification of the EIR. Phase III construction noise will be a temporary problem but it can be minimized by restricting construction activity in accordance with the City's construction time ordinance (7:00 a.m. - 15 - ... . . to 8: 00 p.m. Monday through Friday, and Saturday, 9: 00 a. m. to 8:00 p.m.). The EIR determined that existing hydrocarbon contamination of the ground surface or near surface soils on a portion of the Phase III site could lead to contamination of deeper soils if water infiltration or continued addition of contaminants was allowed on the site. However, as specified in Section 9(k) (i) of the proposed Development Agreement, the contaminated soil will be removed and disposed of prior to the issuance of a building permit for any building on the Phase III site. Much of the contaminated soil has already been removed. Supplement to EIR Staff prepared a Supplement to the Colorado Place Phase III EIR to respond to the Planning Commission's traffic-related and other questions. A 45-day review period was conducted on the Supplement. A number of comments were made on the Supplement. Most comments focused on policy issues rather than the adequacy of the analysis contained in the Supplement. Policy issues are appropriately addressed by the Planning commission and City Council. Comments on the Supplement, together with City responses are provided in the Final Supplement. The traffic impacts and other data presented in the Supplement does not lead to conclusions about environmental effects which are significantly different from the material presented in the Final EIR. However, subsequent to preparation of the Supplement, the overall requested floor area of the project was reduced by - 16 - ... . . over 80,000 sq. ft., which will reduce adverse traffic and air quality impacts from those previously identified, resulting in a project which is environmentally superior to the project previously considered by the Planning Commission. This reduction was discussed by the consultant in letters dated August 20, 1987 and September 11, 1987, copies of which are attached. Development Agreement Issues The proposed Development Agreement contains several key iterr:.s that need to be evaluated during this review process. 1. Floor Area l(e) The definition in the proposed Development Agreement has some differences from the wording contained in the City's proposed Zoning Ordinance. In response to concerns expressed by the Planning Commission, Southmark changed this section to minimize differences between it and the FAR definition of the proposed Zoning Ordinance. As revised, the principle differences from the proposed Zoning Ordinance are that unenclosed decks, balconies and the like are not counted as floor area even if they are covered by a roof, and that similarly, temporary parking areas and exterior courtyards, arcades and the like are not counted as floor area whether or not they are covered by a roof. These provisions are appropriate, since counting such desirable urban design features for purposes of FAR would tend to discourage their provision. 2. Floor Area Ratio expressed concerns 9(a) of the In response to Planning Commission previously and staff - 17 - ... . . about the size of the proposed project and attendant traffic impacts, Southmark reduced its requested total floor area by incorporating a 1.85 FAR standard instead of the previously-requested 2.0 FAR. This reduces the overall scope of the development by over 80,000 sq. ft.-- a significant reduction. southmark made this change even though the Ci ty' s Land Use Element specifies that development in the Special Office District may attain a 2.0 FAR. The lower FAR, in combination with the mixed-use character of the project (the hotel, retail and health club components will generate fewer peak-hour trips than office use) result in a project which will have peak hour traffic impacts approximately the same as an all-office development built to a 1.6 FAR. 3. Adjustment Procedure 9(h) This section contains procedures for requesting changes to the building volume envelope, setbacks, floor area and permitted uses. Paragraph (i) details the responsibilities of the Zoning Administrator and Paragraph (ii) explains those of the Planning Commission. It should be noted that these paragraphs provide the Zoning Administrator and Planning Commission with discretionary review powers and responsibilities in order to avoid the necessity of a formal amendment for relatively minor changes to the project. In all situations, the Council will have the power to hear appeals on these issues. - l8 - ... . . 4. Access - 9 (i) - This section describes the number of vehicular ingress and egress points for the Colorado Place Phase III project. Under this proposed Development Agreement, there will be three general automobile driveways and two service driveways on Colorado Avenue; two general automobile driveways and one service driveway on Olympic Boulevard; and, one right-turn in and right-turn out only service driveway on 20th street. On Cloverfield Boulevard, the developer is proposing a drop-off zone for the hotel. The main hotel vehicle access would be on the interior of the project. No general automobile access points are proposed for Cloverfield Boulevard. The access limitations represent one benefit of a comprehensive Development Agreement which allows site planning for nearly an entire City block. The number of driveways (which interrupt traffic flow) is less than would occur if the individual parcels were separately developed. The access section also states that no service deliveries will be allowed during the PM peak hours on weekdays, since service vehicles (especially large trucks) can contribute to peak hour congestion. 5. Impacts on Traffic During Construction - 9 (k) (vi) - This section requires a construction staging area on the project site to minimize the impact of construction activities on adj acent streets. It was added to the Agreement at the request of the Planning Commission. - 19 - . . 6. Child Care contribution - 9(k) (vii) - This section requires the project owner to provide a $250,000 child care contribution for child care benefits primarily targeted towards the pico and Mid-cities neighborhoods. All funds must be expended within 5 years from execution of the Agreement, and may be expended sooner. 7. Review of Specific Buildings - 9(1) - This section, added in response to recommendations of the Planning Commission, provides for design review of buildings within the Phase III project prior to issuance of a building permit for such buildings. 8. Affirmative Action and Job Training - 10 - This section states that the property owner will develop an affirmative action program with input from neighborhood organiza- tions to promote job training programs for project tenants and the hotel operator. The job training programs will be designed to address the needs of the residents surrounding the Colorado Place Phase III project. 9. Traffic and Emission Abatement - 11- Under this section, the property owner is required to prepare and submit for City approval a traffic and air quality emissions plan to promote ride sharing , flex-time, special benefi ts for carpools and vanpools, increased use of public transit, and other measures. The project owner would also be required to comply with the provisions of a potential City-wide - 20 - . . Transportation Systems Management plan, which is currently in preparation by the City Planning staff. 10. Mitigation Fee -12 - This section provides for a unique benefit to the City: accelerated payment of the required parks and housing mitigation fee. Two-thirds of the required fee would be paid immediately upon signing of the Development Agreement. The City's Land Use Element only requires 25% of the fee be paid before the Certificate of Occupancy is issued (Which would probably be at least three to five years for the first office building following execution of the Agreement), and allows the balance to be paid over a period of three years following the issuance of the Certificate of occupancy. Given the time value of money, the accelerated payment schedule is a significant benefit which will allow the City'S dollars for parks and housing to go farther and be employed sooner. 11. certain Required Improvements - 13 - This section provides several items of benefit to the city. The section requires a hotel to be developed as part of Phase III. In addition to having less traffic impacts than office development, a hotel has higher fiscal benefits to the City than office development. The section also requires three open plaza spaces to be provided at the corners of Colorado and 20th, Colorado and Cloverfield, and Olympic and Cloverfield. A minimum of 40,000 sq. ft. of plaza areas would be provided, with at least 25,000 sq. ft. to be provided at the Olympic/Cloverfield Gateway: the remaining areas would have - 21 - . . to be at least 3000 sq. ft. Such plaza areas might not be practically provided if the Phase III site were to be developed in a piecemeal fashion--another benefit of a comprehensive Development Agreement. Finally, this section requires the project owner to incorporate at least $250,000 in art works through a pledge to the Arts Foundation. The art to be displayed will be selected by the City's Arts Commission from a group of artists approved by the project owner. Art works must be located in publicly accessible areas of the project. This is another unusual feature of the proposed Agree:rr.ent providing a special benefit to the City. 12. Energy Conservation - 15(a-f) - The proposed Develop~ent Agreement provides for energy conservation techniques, including solar heating, high efficiency lighting and high efficiency roof and wall insulation, in the Phase III buildings. 13. Effects of Agreement on Land Use Regulations - 17 - This section addresses future City-enacted City or area-wide traffic mitigation measures. The project owner would be required to participate in a City-wide traffic assessment district anticipated to be created after completion of the pending traffic study. Under this section, the proposed Colorado Place Phase III proj ect would be considered as existing development should a comprehensive traffic assessment district be created by the City because of the extensive mitigation measures required by the Agreement. - 22 - . . Previously, Southmark had sought credit for its required street improvements against such a future assessment, however in response to Planning Commission and staff comments, Southmark dropped the credit provision, which represents an improvement to the Agreement. 14. Zone Diagram (Exhibit B) The Zone Diagram indicates general building height zones, since the developer wants to maintain some design flexibility to accommodate potential tenants' requirements over the period during which buildout may occur. The Zone Diagram shows: a. Height limits - 96 feet, 9-story hotel on Cloverfield Boulevard 84 feet, 6-story office building(s} on Olympic Blvd. 70 feet, 5-story office building(s} on Colorado Avenue 57 feet, 4-story office building(s} on 20th street. b. street frontage - Colorado Avenue, 1212.9 feet~ Clover- field Boulevard, 562.9 feet~ Olympic Boulevard/railroad easement, 1241.2 feet; and 20th street, 357.1 feet. Staff supports the proposed Zone Diagram layout since it is appropriate to have the greatest height along Cloverfield (9 story hotel) and Olympic Boulevards (6 stories) and lower heights (5 and 4 stories) along Colorado Avenue and 20th street. 15. Parking (Exhibit C) - The Development Agreement proposes the use of a shared parking formula to calculate the number of required parking spaces. "Shared parking" is defined as - 23 - . . parking spaces that can be used to serve two or more individual land uses without conflict or encroachment. The hourly parking demand for each land use is merged to estimate overall shared parking demand for a proposed development. The Colorado Place Phase III project, with a 30Q-room hotel, would provide 2834 shared parking spaces. Shared parking has been successfully utilized in mixed-use developments, such as Colorado Place Phase I, because combining land uses reduces the demand for parking space from that of separate, free standing developments. Staff believes that the shared parking calculation is appropriate for the Phase III project. The proposed Development Agreement contains a provision that if the City Council adopts a new Zoning Ordinance before a building permit is issued for the underground park- ing, the developer will use the new Zoning Ordinance parking space standards for general office and medical office uses in the shared parking formula. 16. General Services Requirements (EXhibit D) - The proposed Development Agreement specifies that the developer would provide various traffic and circulation improvements. The improvements include re-striping 20th street at wilshire Boulevard, widening Colorado Avenue between 20th street and Cloverfield Boulevard, including addition of a right turn lane on Colorado, widening Cloverfield Boulevard between - 24 - . . Colorado Avenue and Olympic Boulevard, adding a right turn lane on 20th street onto Colorado, participating in the cost of mOdernizing varios traffic signals, providing street trees on 20th street, Colorado Avenue, Olympic and Cloverfield Boulevards and installing water lines on Olympic Boulevard and 20th street. The General Services Department indicates that these improvements are satisfactory to mitigate the impacts from the Colorado Place Phase III project and they include and exceed the mitigation measures proposed by the Environmental Impact Report. CITIZEN REVIEW The proposed Colorado Place Phase III project was presented at six community meetings during the past year with members of both Mid-city Neighbors and Pico Neighborhood Association present. The draft Environmental Impact Report for this project was made available for public review in September 1986, and the final document was issued in December 1986. The City and developer have continued to encourage community comments during this public review process. The city conducted a community meeting on the Southmark and water Gardens projects on July 22 1987, which was attended by approximately 130 persons, some of whom were affiliated with the developers. Notices regarding this meeting, the August 10 commission hearing, and the September 22 council hearing were distributed to over 2000 persons. - 25 - . . PLANNING COMMISSION RECOMMENDATIONS On August 24 , 1987 the Planning Commission recoJI'Jnended ce~tification of the environmental documentation and approval of the Phase III Development Agreement with a nt'lmher of modifications. These recommended changes, together with a staff response, are discussed below. 1. The Planning coromission recommended that the floor area defini tion to be used for buildings authorized by the proposed Agreement reflect the adopted City-wide Zoning Ordinance. Response: In response to the comments of the Planning Commission, the applicant has revised the Agreement t s proposed FAR definition to minimize differences between it and the proposed zoning Ordinance definition. As revised, the principle remaining differences have to do with the treatment of covered balconies, walkways, arcades and the like. Under the proposed Zoning Ordinance, such areas would be counted as floor area, which staff believes would discourage their provision, an undesirable outcome. Under the definition in the proposed Agree~ent, these areas would not be counted as floor area unless they were used for commercial or restaurant activity. Staff supports this definition. 2. The Commission recommended that property lines, rather than curb lines, be utilized for purposes of establishing required setbacks. Response: Use of the property line as a basis for measuring setbacks is inconvenient because in some areas of the project the property line is in the public right-Of-way and in others it is not. The applicant has amended the proposed Agreement to delete the "curb line" concept, instead specifying a "setback base line" utilizing the public right-of-way as a base from which setbacks would be measured. This approach is consistent with the draft Zoning Ordinance and staff believes addresses the Colt'.lnission' s concern. 3. The Commission recommended that the Agreement be revised to specify that the project be completed within ten years. - 26 - . . Response: The developer orginally requested a IS-year buildout period. Based on comments from staff and the Commission, however, they agreed to change the Agreement to specify that excavation for the final building of the project must be commenced within ten years. Given the magnitude of the project and the desirability of promoting gradual development of the site, staff recommends that the existing language be retained. 4. The Commission recommended that section 6(c) include a reference to the subsequent review section of the document. Response: The applicant has modified the Agreement to include such language. 5. After extensive discussion and the failure of numerous motions for various FAR levels, the Commission adopted a motion to recommend a 1. 3 FAR 1 imi t for the proj ect. The reasons discussed for this recommendation related primarily to potential traffic impacts. Motions for a 1.0, 1.25 and 1.5 FAR failed. A motion to conduct further traffic impact studies failed. A motion to approve a 1.5 FAR with the proposed hotel, and 1.25 without the hotel also failed. Response: Staff recommends that the 1.85 FAR requested by the applicant be maintained for various reasons. The Cityfs Land Use Element provides for a 2.0 FAR in the Special Office District. The Land Use Element was designed to provide certainty and predictability for residents, developers, staff, and decisionmakers. Further, the developer has proceeded to work with the City for over 18 months to develop a project that meets the land use standards. This process was undertaken pursuant to an agreement between the City and the developer in which the City agreed to process a development agreement for Phase III in exchange for the developerfs agreement to relocate the hotel. In addition, the project generates substantially less peak hour traffic than would a project developed at a 2.0 FAR and adverse traffic impacts will be mitigated. Those effects will be further reduced through the developer'S agreement to implement TSM measures and participate in a traffic assessment district. - 27 - ~ . . 6. In section 9(b) (iv), the Planning Commission recommended that a subsequent review requirement be indicated for the health club component of the project. Response: Such a reference in this section appears unnecessary. As revised, the site review portion of the Agreement requires review of all buildings of the project. Whether located above or below grade, the health club would be reviewed through the site review process when the building it was housed in came before the Planning Commission. 7. The Planning Commission voted to add the proposed Zoning Ordinance definition of lot coverage to section 9 (c) of the Agreement. This definition defines building coverage as "the horizontal area lneasured within the perimeter of the exterior walls of the ground floor or upper floors that overhang the ground floor of all principal and accessory buildings on a parcel. Previously, the applicant had proposed defining coverage according to at-grade building footprints. Response: The applicant has amended the proposed site Coverage section with language consistent with the Commission's action, with the modification that the "at-grade footprint" of the hotel shall be defined by the perpendicular projection to the ground of all portions of that building which are less than thirty-six feet high. This will allow greater design flexibility for the hotel wi thout creating excessive lot coverage. Staff supports this language. 8. In section 9 (f) (ii), the Commission voted to change the reference to the ARB to the Planning Commission, since review of such plans is normally within the purview of the Commission. Response: The applicant has amended the Agreement consistent with the Commission's motion. 9. In section 9(9) (i), the Commission recommended the addition of language to the description of general office floor area - 28 - . . . clarifying that the maximum square footage for this use must reflect the square footage devoted to the hotel. Response: The applicant has added language to this effect. 10. In Section 9 (g) (iii), the Commission adopted a motion to strike this section and require that all CUP's for alcohol outlets come before the Planning Commission through the typical review process, allowing consideration of such factors as operating hours and other conditions. Response: In response to the Commission's concerns about alcohol outlets, the applicant has amended this Section such that a CUP would effectively be approved for the hotel, but all other uses would be required to apply for an alcohol CUP separately. staff supports this language. 11. In section 9(g) (vi), the Commission voted to recommend that the Section be amended to require joint City/project owner selection of occupants of the free space, and in a separate motion recommended that only organizations qualifying for a 501(c) (3) tax exemption be designated for occupancy of the space. Response: In response to the commission's action, the applicant has amended the section to require 501(C) (3) status for organizations qualifying for occupancy, and that City Manager approval of any such organization is required. staff supports this language. 12. In Section 9 (h) (i), the Commission voted to change the percentages specified from 10% to 5% and 3%. Response: The applicant has so amended the Agreement. 13. In Section 9(h) (iii), the Commission requested a reference to the subsequent review section of the Agreement. - 29 - . . Response: The applicant has added such a reference to the Agreement. 14. In Section 9(h) (v) the Commission requested that some language be added to require notification to neighborhood organizations beyond that norma11y required. Response: For consistency with normal City notification procedures, staff reoommends that the Section remain as written. This issue can best be handled in the notification procedures of the Zoning Ordinance. 15. In section 9(j), the Commission requested language be added clarifying that in the event of a sewer moratorium or other sewage treatment capacity problem, the City would not be obligated to provide a building permit for the project, and further, that the Agreement reflect the City's ability to impose on-site sewage holding capacity on the project. Response: The applicant has added such language. 16. ln Section 9 (k) (vii), the Commission asked that the word "expend" be changed to "allocate." Response: The applicant has so amended the Agreement. 17. The Commission requested a new Section 9(1) regarding future review of specific buildings. The Commission was responding to specific language developed by the applicant and adopted it with changes. Most of the changes proposed by the Co:m.mission have been made by the applicant: the discussion below describes areas where the Commission's version and the applicant's revised version are inconsistent. A. Section 9(1)(i). As adopted by the Commission, the reference to "schematic drawings" in this paragraph included - 30 - . . a statement that such drawings were to include floor plans by use, elevations, and that the parking plans were to have been reviewed by the Parking and Traffic Engineer. Response: The nature of schematic drawings is established in clauses (ii) and (iii), and as defined therein, such drawings appear consistent with the Commission's intent. Those sections do not contain a reference to approval of parking plans by the Parking and Traffic Engineer; however review by the Engineer occurs as a matter of course prior to project review by the Planning Commission. B. section 9 (l) (v) . The Planning Commission recommended the deletion of this paragraph as originally proposed by the applicant, since the Commission felt it inappropriately restricted the city's responsibilities under cEQA. Response: In response to the commission's action, the applicant modified, rather than deleted the paragraph, adding a statement at the end of the paragraph to the effect that the City may require additional environmental review if it determines that the discretionary action may result in a significant environmental impact. Since this is the normal test for preparation of an EIR, which would therefore not limit the City's CEQA responsibilities, staff recorr~ends that the language as proposed by the applicant be retained. c. section 9(1) (vi). The Commission wished to add a reference to notification of neighborhood groups and other parties to this section. Response: Staff recommends that the Section remain as drafted by the applicant so that notification procedures for this project will be consistent with notice provided for other projects. This issue is best addressed in the notification procedures of the City's Zoning Ordinance. D. Section 9(1) (viii). The Commission recommended several additional findings for this section, including that the rights of way can accommodate autos and pedestrians, that the open space location and design is consistent with the - 31 - . . . requirements of the Agreement, that the provisions of Exhibit D to the Agreement are complied with, and that utilities and police and fire service are sufficient to accommodate the new development. Response: The applicant added the open space finding as requested by the Commission. Findings regarding Exhibit D do not appear necessary, since the City has the power under Section 6 of the Agreement to determine phasing of required public improvements for the project. The other findings recommended by the Commission would fundamentally alter the scope of the Commission's future review, going beyond design considerations, and effectively requiring the preparation of detailed traffic and utility studies. The additional findings raise a question as to whether the development parameters established by the Agreement after extensive environmental review are meaningful, since future Planning Commissions, on the basis of the additional findings, might require maj or alterations or deny future elements of the project. Such a result would be fundamentally inconsistent with the concept of a Development Agreement. 18. The Planning Commission requested revision of Section 10 of the Agreement regarding affirmative action. The Commission requested that language be added to the effect that prior to a building permit being issued for each of the buildings in the project, that an affirmative action program be submitted to include, during the construction phase, the utilization of minority-owned businesses, women-owned businesses, and that the composition of the construotion labor force reflect to some extent the proportion of minorities and women in the general lahor force. Response: The applicant has revised this section in response to the Planning Commission's general concerns and staff supports the language as revised. 19. The Planning Commission requested that Section 11 regarding the Traffic and Emission Abatement plan be modified in several - 32 - . . respects. The Commission asked that the section be amended to require a plan for each phase of the project, and further asked that a 10% vehicle trip reduction goal be established, and requested the deletion of language pertaining to the Environmental Impact Report. Response: The applicant has revised the Section consistent with the Commission's action. 20. The Planning Commission voted to add language in Section 12 (Mitigation Fee) to the effect that any fees collected for park space be used only for acquisiton and development of new parks or expansion of existing parks, rather than for maintenance or capital improvements to existing parks. Response: Such language has been added to the Agreement by the applicant. 21. Under section 13 (b) (Open Space), the Commission voted to increase the amount of space which would be allocated to plaza areas from 30,000 sq. ft. to 50,000 sq. ft., and to add language promoting a "park-like" design for the plazas. Response: The applicant has modified the Agreement to specify an aggregate plaza area of at least 40,000 sq. ft., has added language specifying that the plazas shall be landscaped in a pedestrian-oriented manner, and has specified that the main plaza at cloverfield and Olympic shall have a minimum area of 25,000 sq. ft. staff supports these changes. 22. In section 14, the Commission requested clarification that in the event of subdivision of the property, the terms of the Agreement would still apply. Response: The applicant has added language to this effect. - 33 - .. . . 23. The Commission asked for additional language in Section 17(b) specifying that this clause only relates to the project. The Commission also voted to delete a reference to a specific number of acres in Section 17(e). Response: The applicant has added language in section 17(b) to this effect. BUDGET/FINANCIAL IMPACT If approved, the proposed Colorado Place Phase III project would provide substantial economic benefits to the City of Santa Monica. Based on the Project Mitigation Program (Ordinance 1367) 1 for 620,490 square feet of office space, 35,000 square feet of medical office space and 20,000 square feet of banks and savings and loans space, Southmark would pay a housing/parks in-lieu fee of $3,336,200 (15,000 square feet x $2.25 + 660,490 square feet x $5.00 = $3,336,200). Further, through the Recreation Unit Tax of $200 per new ho~el room, the city would receive at least $50,000 in revenue for new City parks (250 rooms x $200 = $50,000). The Santa Monica-Malibu Unified School District would also realize fee income from this proj ect under its Developer Fee program which was recently enacted. The District would receive fee revenues in excess of $250,000 from the project from its $0.25/sq. ft. charge on commercial or industrial development. - 34 - . . RECOMMENDATION staff respectfully recommends that the City Council: 1) adopt the resolution certifying the Colorado Place Phase III EIR and Final Supplement to the EIR, and 2) introduce for first reading the attached ordinance for approval of the Development Agreement between the City of Santa Monica and Sopac properties, Inc. with the following findings: Findings 1. with approval of separate pending amendments to the Land use Element regarding provision of on-site open space in the Special Office District and transfer of the hotel use froM Phase II to Phase III, the proposed Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan. The project is consistent with the city's adopted General Plan; no specific plans are applicable to the project area. A. LAND USE ELEMENT The proposed Colorado Place Phase III project complies with the standards of the Land Use Element. Permitted uses in the Special Office District include large scale office and related uses. Specifically, the proposed Development Agreement is consistent with Land Use Element Objective 1.8 and its related policies to "provide opportunity for office and advanced technology uses requiring large floor areas. II The hotel use is being transferred from Colorado Place Phase II where it had been previously approved. The proposed project also conforms to Land Use Element Objectives 3.1, 3.3 and 3.4, and Policies 3.3.15, 3.3.16 and 3.4.9 by providing a "building volume envelope" for solar access, 28-foot setbacks from the curbline and three corner plaza areas. B. CIRCULATION ELEMENT The proposed project conforms to the objectives and policies of the Circulation Element. In particular, the development is consistent with Objective 4.2 and Policy 4.2.3 by providing ingress and egress points away from residential neighborhoods and Objective 4.3 and Policy 4.3.1 by widen- ing Colorado Avenue between 20th street and Cloverfield Boulevard, widening Cloverfield Boulevard between Colorado - 35 - . . Avenue and Olympic Boulevard, re-striping 20th street at Wilshire Boulevard and other such improvements, facilitating traffic flow to a greater extent than would otherwise occur without such improvements. The proposed Development Agree- ment contains a traffic and vehicle emission abatement plan which is consistent with Objectives 4.5, 4.6 and 4.7. The proposed Development Agreement is also consistent with Land Use Element Policy 4.6.3 because the Southern Pacific Railroad right-of-way will be maintained as a linear park. Further, by using a shared parking calculation, the proposed project complies with Land Use Element Policy 4.7.1 which allows for a reduction in parking requirements for new mixed-use developments. C. HOUSING ELEMENT Although the proposed development is not a residential project, it is consistent with the goals and policies of the City's Housing Element to "maintain and increase the supply of housing affordable to low- and moderate-income persons.1I This will be accomplished through a Housing and Parks Mitigation Program (Ordinance 1367) in-lieu fee payment in excess of $3.7 million. D. OPEN SPACE ELEMENT The proposed Development Agreement is consistent with the City's 1973 Open Space Element. The proposal includes an in-lieu housing and parks fee required by the Project Mitigation Program (Ordinance 1367), Recreation Unit Tax fees of $200 per hotel room, 28-foot setbacks from the curbline and three open space plazas. E. CONSERVATION ELEMENT The proposed Colorado Place Phase III project is in conform- ity with the policies of the 1975 Conservation Element including the use of energy efficient insulation and lighting, solar heating, water conservation techniques and planting street trees. F. NOISE ELEMENT The proposed proj ect is in agreement with the goals and objectives of the Noise Element to identify and control noise levels in the City. The proposed Development Agree- ment specifies that the property owner will sufficiently insulate the hotel rooms to protect patrons from street traffic and construction activities. G. SCENIC CORRIDORS ELEMENT The proposed Colorado Place Phase III project is consistent with the 1975 Scenic Corridors Element's goal to protect and enhance the scenic resources of the City. Al though the - 36 - . . proposed development is not located on or near the seven identified scenic corridors in the City, the proposed Development Agreement does provide for street tree planting along 20th street, Colorado Avenue and cloverfield and Olympic Boulevards. G. SEISMIC SAFETY ELEMENT The proposed project is consistent with the principles of the City's Seismic Safety Element. The mixed-use development is not located along any known earthquake fault lines, and it will incorporate seismic design standards in accordance with the Uniform Building Code. H. PUBLIC SAFETY ELEMENT The proposed Colorado Place Phase III project is consistent with the policies and programs of the City's Public Safety Element to lower the risk factors of fire and geologic hazard to a safe level. The proposed development WJ.II comply with the City's fire and building codes in order to provide for the community's physical safety. 2. The proposed Development Agreement is compatible with the uses authorized in the M2 district in which the real property is located. with the exception of the hotel use, the proposed project uses are among those generally permitted in the M2 zone. The list of uses permitted was designed to include those which were mutually compatible in physical and use characteristics. It is important to note that the current M2 zoning of the site is planned to be changed to C5, Special Office District, in the proposed Zoning Ordinance. The uses allowed in the Special Office District are compatible uses of the proposed project, including the hotel use, which will be complementary to other uses in the project, and to the office uses expected to predominate in the area under the new C5 zoning. The project proposal is also compatible with uses authorized under the Special Office District development standards of the Land Use Element. 3. The proposed Development Agreement is in conformity with the publ ic necess i ty , publ ic convenience, general wel fare and good land use practices. The proposed project will create an estimated 3,492 jobs in the retail, restaurant, office and hotel categories and would produce significant net revenues to the City, benefiting the general welfare. The proposed Development Agreement is in conformance with good land use practices. The project concept is consistent with the land use standards for the Special Office District. The specific design features of the project also conform to the Special Office District standards. The height of the hotel component was approved as part of the pre-existing Development Agreement for Colorado Place Phase II. - 37 - . . 4. The proposed Development Agreement will not be significantly detrimental to the health, safety and general welfare. Like any development proj ect, this proposal will produce both adverse and positive effects on health, safety and the general welfare, as shown in the EIR. The project will resul t in an increase in traffic volumes and will have an adverse impact on local air quality, but mitigation measures will adequately address those impacts. On balance, the beneficial aspects of the project, including employment opportunities, open space areas and visual improvements to the site, outweigh the incrementally adverse effects. 5. The proposed Development Agreement will not adversely affect the orderly development of the property. Redevelopment of the site as proposed is a logical and orderly use of the site and an improvement from the current use, which consists primarily of vacant industrial buildings. The basic project concept is consistent with the overall direction of the City'S land use policies and would also meet objectives of the applicant. s. The proposed Development Agreement will have a positive fiscal impact on the city; staff calculation indicates annual net revenues in excess of $1,200,000. Attachments: A - B - EIR Certification Resolution Ordinance for First Reading Approving Proposed Development Agreement Communications c - Prepared By: D. Renyon Webster, Senior Planner DKW:klc copcc3 09/17/87 - 38 - . . RESOLUTION NO. (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT AND THE FINAL SUPPLEMENT TO THE EIR ON THE PROPOSED DEVELOPMENT AGREEMENT BETWEEN SOPAC PROPERTIES INC. AND THE CITY OF SANTA MONICA WHEREAS, a Notice of Preparation of an Environmental Impact Report was issued in August 1986; and WHEREAS, Notice of Completion of a Draft Environmental Impact Report was published in September 1986, in compliance with the California Environmental Quality Act and the City of Santa Monica CEQA Guidelines~ and WHEREAS, in December 1986, the completion of the Final Environmental Impact Report on the proposed project, consisting of the Draft Environmental Impact Report, comments on the document, and responses to comments was certified; and WHEREAS, in May 1987, Notice of Completion of a Supplement to the Environmental Impact Report was published; and WHEREAS, in August 1987, the completion of the Final Supplement to the Environmental Impact Report, consisting of the - 1 - . . Draft Supplement to the Environmental Impact Report, comments on the document, and responses to comments was certifiedi and WHEREAS, in August 1987, the City Planning Commission reviewed the Final Environmental Impact Report and the Final Supplement to the Environmental Impact Report and recommended their certification to the City Council; and WHEREAS, on September 22, 1987, the City council, as Lead City Agency, reviewed the Final Environmental Impact Report and Final Supplement to the Environmental Impact Report, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The city council has reviewed and considered the Final Environmental Impact Report and the Final Supplement to the Environmental Impact Report on the proposed Develop~ent Agreement between SOPAC Properties, Inc. and the City of Santa Monica prior to acting on the project. SECTION 2. The City Council finds that the Final Environmental Impact Report and the Final Supplement to the Environmental Impact Report adequately review and analyze potential environmental effects of the proposed project. SECTION 3. Consistent with Article VI, Section 12 of the City CEQA Guidelines and section 15091 of the state CEQA Guidelines, the City Council finds that there are no reasonable and available alternatives to the project that would significantly and SUbstantially reduce the impact on the - 2 - . . environment which would accomplish the project objectives and would be consistent with the land use goals of the City as set forth in the standards of the Land Use Element of the City IS General Plan for the Special Office District of the city, within which the proj ect is located. Obj ecti ve 1.8 of the Land Use Element establishes a goal of promoting large-floor office uses in the Special Office District i the proj ect is consistent with this goal. Policy 1.8.7 of the Land Use Element allows development to occur within the Special Office District at a Floor Area Ratio of 2.0. In response to potential adverse effects, the project would be developed with a Floor Area Ratio of less than 2.0; however, significant further Floor Area reductions would jeopardize the fundamental goals of the city in its Land Use Element, and the goal of the project applicant to develop a project consistent with the policies of the Land Use Element. Further, as specified in sections 4 and 5 of this Resolution, requirements have been incorporated into the project which will mitigate the significant environmental effects identified in the environmental analysis. SECTION 4. The city council hereby makes a statement of Overriding Considerations, pursuant to Article VI, section 13 of the City CEQA Guidelines and Sections 15091 and 15093 of the State CEQA Guidelines, and finds that while the Final Environmental Impact Report indicates that there may be significant effects on circulation during peak hour traffic due to the proj ect and the cumulative developments in the proj ect area, the Development Agreement includes the following specific - 3 - . . requirements which will substantially lessen the significant effects identified in the environmental analysis: (a) design and implement a Traffic Systems Management Program: (b) comply with any future transportation systems management ordinance adopted by the city: (c) remain subject to any future traffic assessment district created by the city: (d) perform the substantial circulation improvements identified in Exhibi t D to the Development Agreement to mitigate the traffic impacts of the project: (e) restrict service deliveries to the project during the PM peak traffic period~ and (f) maintain an on-site staging area for construction vehicles during the construction of the project. The City Council finds that therefore, as substantially mitigated by the specified requirements, the potential impact on circulation is acceptable. SECTION 5. The City Council hereby makes a Statement of Overriding Considerations, pursuant to Article VI, Section 13 of the City CEQA Guidelines and Sections 15091 and 15093 of the state CEQA Guidelines, and finds that while the Final Environmental Impact Report indicates that there may be significant effects on air quality, the proposed project incorporates the following specific mitigation measures which will reduce, although not eliminate, air quality effects: (a) keep construction equipment in proper tune, and such equipment shall not be operated during first or second stage smog alerts, and the developer shall use reasonable watering techniques to reduce dust during construction; (b) design and implement a Traffic Systems Management and Emissions Abatement program; (c) - 4 - . . remain subject to any future City transportation systems management ordinance; (d) perform the circulation improvements specified in Exhibit D to the Development Agreement, which will facilitate traffic flow, thereby reducing air quality impacts which would otherwise occur; and (e) comply with the energy conservation features specified in section 15 of the Development Agreement, which will reduce energy consumption from that which would otherwise occur, thereby reducing emissions associated with energy generation. Therefore, the City council finds that the potential impact on air quality will be mitigated to a level which is acceptable and which cannot be reasonably avoided since the project area already currently exceeds the 8-hour federal and state standards for carbon monoxide concentrations. SECTION 6. The City Council certifies that the environmental review for the project was conducted in full compliance with state and City cEQA Guidelines, that there was adequate PUblic review of the Draft Environmental Impact Report and the Draft Supplement to the Environmental Impact Report, that the City Council has considered all comments on the Draft Environmental Impact Report and the Supplement to the Environmental Impact Report, and responses to comments, that the Final Environmental Impact Report and the Final Supplement to the Environmental Impact Report adequately discuss all significant environmental issues and that the City council has considered the contents of the Final Environmental Impact Report and Final Supplement to the Environmental Impact Report in its decisionmaking process. - 5 - . . SECTION 7. The city Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter, the same shall be in full force and effect. APPROVED AS TO FORM: ~ ~ ~~- ROBERT M. MYERS city Attorney copreso 09/16/87 - 6 - . . C/ED:CPD:DKW:se COUNCIL MEETING: 9/22/87 Santa Monica, California ORDINANCE NUMBER (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROVING DEVELOPMENT AGREEMENT BETWEEN SOPAC PROPERTIES, INC., A DELAWARE CORPORATION AND THE CITY OF SANTA MONICA THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. The Development Agreement attached hereto and incorporated by reference between SOPAC Properties, Inc., a Delaware corporation, and the City of Santa Monica, a municipal corporation, is he~eby approved. SECTION 2. Each and every term and condition of the Development Agreement approved in Section 1 of this ordinance shall be and is made a part of the Santa Monica Municipal Code and any appendices thereto. The City Council of the City of Santa Monica finds that the public necessity, public convenience, and general welfare require that any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this development agreement, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to make fully effective the provisions of this development agreement. - 1 - . . SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to give full force and effect to the provisions of this ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of corrpetent jurisdiction, such decision shall not render invalid the remaining portions of the ordinance. The City Council hereby declares that it would have passes this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to \o:hether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the sa~e to be published once in the official newspaper within 15 days after its adoption. effective 30 days from its adoption. The ordinance shall beccrr.e APPROVED AS TO FORM: ~~.~ ROBER'I M. MYERS 0 city Attorney w/coplord2 09/01/87 - 2 - . . ~ . . DKS Associates 411 VVesT FdTt~ Sr.pe,;:,: Si..rte 500 Los koge;es, C4 9Se'] (213) 627 0479 September 11. 1987 Kenyon Webster City of Santa Monica Community and Economlc Development Department 1685 Main Street Santa Monica. CA 90401 RE: Colorado Place Phase III P87186xO Dear Kenyon: Per your request. this letter provides a follow up to OKS Associates. letter of August 20 regarding proJected impacts of Colorado Pl ace Phase III. As you recall. that 1 etter documented are-anal ysi s of Colorado Pl ace Phase I I I impacts incl uding charges to several ass umpt ions used 1 n the preVlOUS analysis. This letter describes the project related i~~acts outlined in that letter with the addition of mltigation measures proposed by Southmark Pacific Corporation. Exhibit D of the Proposed Development Agreement dated August 4. 1987 includes intersection improvements to be made by the developer at the following locations: 20th Street/Wilshire Boulevard - Restripe northbound approach on 20th Street to provide two through 1 anes instead of one right-turn-onl y lane and one through lane. Colorado Avenue - Widen ten feet on southern slde to create two through lanes in each direction and a continuous left-turn lane. Colorado Avenue/Cloverfleld Boulevard - Establ1sh an addltional rlght- turn lane at eastbound approach to Colorado Avenue. '. . . Kenyon Webster September 11. 1987 Page 2 C1overf1e1d Boulevard - W1den western side of C1overfie1d to create three full lanes for southbound traffic. 20th Street - Widen to create right-turn lane onto eastbound Colorado. A total of four intersections are to be mitigated by Southmark. includ1ng 20th Street/Wil shi re Soul evard. 20th Street/Colorado Avenue. C1 overfle1 d Soul evard/Col orado Avenue and Olympic Boul evard/C1 overfle1 d Soul evard. The August 20 letter showed the proJected level of service (without mltiga- tlon) at those intersections to be: Intersection Short Term LOS with Colorado Pl. Phase I II Revised Long Term LOS 20th St./Wi1sh1re Blvd. 20th St./Co1orado Ave. C10verfleld Blvd./Colorado Ave. C10verfleld Blvd./Olympic Blvd. E C D F F C F F The followlng table dlsplays projected LOS at the same locations with the additlon of mltigation measures sponsored by the developer. Intersectlon Short Term LOS with Colorado Pl. Phase I II with mltlgation Revised Long Tem LOS wlth mit1gatlon 20th St./Wllshire Blvd. 20th St./Colorado Ave. C10verfield Blvd./Colorado Ave. C10verfield B1vd./Olymplc Blvd. o B C E o C E F Thus. in the short term. project related mitigatlon measures are projected to improve the level of service to D or better at three of the four inter- sections. Only Cloverfield Boulevard and Olympic Boulevard would remalli worse than LOS O. In the long term. Cloverfleld Boulevard/Olympic Boulevard and Cloverfield Boulevard/Colorado Avenue are proJected to operate at LOS F and E respectively. That intersection would be improved to LOS D condi- tions by mitigation measures provided by other nearby projects. As shown in the EIR. all four intersections are projected to operate at LOS D or better 1n the long term with the mitigatlon measures proposed by Southmark Pacific Corporatlon and mitlgatlon measures that may be requlred of other developments in the vicinity of Colorado Place Phase III. ,4 . . Kenyon Webster September 11. 1987 Page 3 I hope this information is helpful. Please contact me if you have any further Questions. Sincerely. OKS ASSOCIATES ~y pg cc: Tom Larmore Lillick. McHose & Charles 7203.p186kw.ltr . . DKS Associates 4;7 ~"'l-'est ,:"'-i-t~ SirecJ St..;'re see Los Angf.;es CA 9JCU '2i3J 627 O~i9 August 20. 1987 Kenyon Webster City of Santa Monica Community and Economic Development Department 1685 Main Street Santa Monica. CA 90401 RE: Analysis of Long Term Colorado Place Phase III Impacts P87109xl Dear Kenyon: In response to our conversation earl ier this week. DKS Associates has prepared a brief re-analysis of the impacts of Colorado Place Phase III which incl udes changes to several assumptlons used in previous analysi s. The new assumptions are as follows: 1) General Offi ce component of Colorado Pl ace Phase I I lis 620. DO:; square feet as 1 i sted in development agreement rather than the previously analyzed 705.000 square feet. The proJect descrlpt10n in the development agreement represents a project Wi th a 1. 85 FAR as opposed to the 2.0 previously analyzed. This represer.ts a decrease in PM peak hour trlps generated of approximately 210. or about 10 percent. The number of PM peak hour trips generated by all Colorado Pl ace Phase III 1 and uses in thi s scenano is approximately 1870. The same nu~ber of PM peak hour trips would be generated by an office-only project with an FAR equal to 1.6. 2) Actual roadway improvements made by the City at the intersec- tions of Wilshire Boulevard/26th Street and Colorado Avenue/20th Street have been included in the analysis of future lmpacts. 3) PM peak hour trips generated by the proposed Water Garden project are assumed to be proportionately equal to Colorado Place Phase III per 1000 square feet of lot size. Colorado Place is expected to generate about 2.8 PM peak hour trips per 1000 square feet of lot size. At the same rate of 2.8 PM peak hour trips per 1000 square feet of lot Slze. the Water Garden would generate approx- imately 2050 PM peak hour trips. Thus. it is assumed in thi S analysis that the proposed Water Garden proJect will generate 2050 PM peak hour tnps rather than the 2500 triPS previously assumed to be generated by the Water Garden. . . Kenyon Webster August 20. 1987 Page 2 4) A ten percent reduction in PM peak hour trips generated by Colo- rado Place Phase III. The Water Garden and Colorado Place Phase I I has been assumed due to TransportatlOn System Management techniques such as ridesharing. flexible work hours and use of alternative transportat1on modes. The preV10US analysls included a ten percent reduction only for Colorado Place Phase III. The attachment to this letter displ ays the level of service for each of the 31 intersections that have been analyzed. The table illustrates existing conditions. projected short and long-term future conditions from the previous analysis of Colorado Place Phase III (as shown in the EIR). and proJected long-term future conditions based upon the revised assumptio~s descrlbed above. The table lllustrates that one lntersection (23rd Street and Ocean Park Boulevard) currently experiences level of service F in the PM peak hour. The two intersections at the Cloverfield/I-IO interchange were previcusly analyzed independently. but should actually be considered as a system. When analyzed together. the level of serVlce is lower and more reflectlVe of actual field obsevations. This is due to theH close proximlty. He queues of cars extending between the two intersections. and the high turnlng movement vol urnes that are experienced. Our calculations sholtl that the interchange as a system operates at LOS C currently with the recent restriplng of the off-ramp. and will operate at C with short-term project and Colorado Place Phase III and at LOS D in the long term. With the revised project assumptions listed above. the long term impacts at three lntersections (26th Street/Wil shire Boul evard. 26th Street/Santa Man 1 ca Boul ev a rd and Cent 1 nel a Avenue/Ol ympi c Soul eva rd) fall from a previously proJected level F to level L At 20th Street anj ColoradJ Boulevard. the projected level of service changes from E to C. Projected impacts at other intersections change sllghtly but the level of service does not Change at any other locations. Exhib i t 0 of the Proposed Development Agreement dated August 4. 1987 includes intersection improvements to be made by the developer at the following locations: 20th Street/Wilshire Boulevard - Restripe northbound approach on 20th Street to provide two through lanes instead of one right-turn-only lane and one through lane (mitlgated in short term to LOS DIE. vIe 0.90 per fIR traffic analysis). Colorado Avenue - Widen ten feet on southern side to create two through lanes in each directlon and a contlnuous left-turn lane. Colorado Avenue/Cloverfield Boulevard - Establish an addltlonal rlght- . . Kenyon Webster August 20. 1987 Page 3 turn lane at eastbound approach to Colorado Avenue (mitigated to LOS D in short term per EIR traffic analysis). Cloverfield Bouelvard - Widen western side of Cloverfield to create three full lanes for southbound traffic. 20th Street - Widen to create right-turn lane onto eastbound Colorado. Previous analysis has shown that other off-site long-term impacts waul d require mitigation by future projects. incl uding the Water Garden and other smaller projects at the followlng locations: 20th Street/Wllshlre Boulevard 26th Street/Wllshire Boulevard 20th Street/Santa Monica Boulevard 26th Street/Santa Monlca Boulevard Cloverfield Boulevard/Colorado Avenue Centlnela Avenue/Colorado Avenue Cloverfleld Boulevard/Olymplc Boulevard Cent1nela Avenue/Olymp1c Boulevard 23rd Street/Pico Boulevard 20th Street/Olympic Boulevard Cloverfleld Boulevard/Pica Boulevard In sUll1mary. thi s rev i sed anal ys 1 S sho'....s that the projected LOS at four intersections is lower than shown in the EIR due to recent street improve- ments and revised proJect descriptions. The analysls results also show. however. that the mltigation measures proposed in the develop~ent agreer.e~t are still app1 i cabl e and that the long-term mit 1 gat lOn meas ures proposed in the EIR are also still applicable. OKS Associates 1S pleased to have been of assistance. Please do not heSi- tate to call me if you should have any questions. Sincerely. DKS Associates &!~#4 Transportation Planner Attachment cc: Thomas Larmore. Llll1Ck. McHose & Charles 3833.pI09rev.ltr I- Z W :;: :I: U ex: ~ 0:::( V> ...... V> >- ....J c:( Z c:c C LU Vl ...... ::>- LU 0:: o 0:::;2: =>c:( Oc:::: :r::...... ::..!L..l.J <:;: Wo 0..0:: :;:L.L.. o..Vl wZ 0::0 =>i= I-U =>1.l.J L.L..Vl 00::: ZLU ex:~ C)...... Z>- ......0 I-=> Vll- ~Vl LUI- e:( I.LJ U ...... ::>- e::: LU Vl L1- o ....J LU ::>- LU ....J . E "0 ~ OJ OJ Vll- .... > 0> OJC 0::0 ....J .-. Vl OJ ... >u ...... OJ .jJ.,...., 10 0 ..-- L. ::I c.. E ::I ..-- u..... 5 E '- ~ m C o ....J .-. In OJ ... >u .... CIJ .jJ.1"") 100 ..-- t.. ::I c.. E ::I..... U ..-- c:( - ...... ...... ...... . .c ..-- +' c.. ..... E t.. 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C1J U CJ 'r- ~ U ~ +-> r- V) r- c.. ..._ a .,..... a... V') C1J C +->Q) '+- '+- '+- s- ...... S-CcK:lI-cK:l'-~'-~<<l f'tI..... QJ QJ Q) ..c 3:+-'..1::>-0 >-0 >..1:;..1:; +-' Q) (l.J1::+-'as- os-a.......... +J +-' QJO.....M.....M....COO 3 0 f.I'"IUNUNUNUNN 1< Z . RECORDING REQUESTED BY AND WHEN RECORDED MA I L TO: Robbie E. Monsma, Esq. Southmark Pacific Corp. 2 No. Lake Avenue, Suite 800 Pasadena, California 91101 DEVELOPMENT AGREEMENT between SOPAC PROPERTIES, INC. AND . THE CITY OF SANTA MONICA, CALIFORNIA ... Section 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. . . TABLE OF CONTENTS Recitals.... . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . II . . . . . . . . . . . . . . . . . . . _ . . . . . . . II 1. 2. 3. 4. 5. 6. 7. 8. 9. Definitions................... E xh 1 bit s .. . . . . . . . . .. . " . . . . . . . . . Interest of Property Owner............ Assignment: Binding Effect. Relationship of Parties.... Time for Construction and Completion of Project. Hold Harmless..........,............................ II .. 4: '" II 111 tI . . . . . . . . . . . . . . . . . . II . . .. . . ......... . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . I ns u ran c e. . . . . . . . . . .. . . . . . . . . . .. " . . . . .. . . . . . . . . . Specific Restrictions on Development and Use of the Real Property......................... Non-discrimination, Affirmative Action and Job Training................. Traffic and Emisslon Abatement... Mitigation Certain Required Improvements.. (a) (b) (c) (d) (e) (O (g) (h) (i) (J ) (k) (a) ( b) (e) Floor Area.......,.....".......... '" . Zone Diagram; Building Heights........... Maximum Site Coverage.................. Minimum Setbacks................... Building Volume Envelope. parking............... Us es . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . ..... .. . . . . . . ...... Adjustment Procedure.. . . . . . .. . . . . . .. . . .. . Access. .. . .. . . . .. . . .. .. .. .. .. .. . . . . .. .. . . . . .. General Services Requirements.. Other Mitigation Measures...... .. .. . . . . . . . . . . . . . Fee. . .. . .. .. .. . . . . . . . . . .. . . . . . . . . . .. . . . . . Hotel...... Open Spac e. . . . .. . .. .. .. .. . . . .. . . . . .. . Art.. " ,. .. .. .. . .. . .. .. .. .. ... . . . " . .. .. ,. .. .. .. . . . .. . . . . .. .. .. . . .. . .. . . .. .. .. . . . . . . . . . . . . . . .. .. . - . .. . . .. . . .. . ....... . . ........ . . . .. . . Subdivision Approval............ Energy Conservation................ Accessibility................... Effects of Agreement on Land Use Regulations.... Periodic Review of Compliance wIth Agreement. Amendment of Agreement.......................... Enforcement. .. . .. .. . . . .. . .. .. . . . . .. .. .. .. . . .. . . . .. . . . .. .. . . . ... . . ... .. . . .. . . . . . . . .. . . ........ . . . .. . . . . .. . .. ....... .. . .. . ....... . . . . It . . . . . . . .. . .. . . . . . . . . . . . . . . Paqe 1 . . . 2 5 5 6 6 7 8 9 . . . 9 9 9 10 10 10 10 11 13 15 17 17 22 23 25 25 26 26 .26 26 27 28 28 30 30 30 to 2l. 22. 23. 24. 25. 26. 27. 28. 29. 30. . . De f au 1 t . . .. . .. .. . . . . . .. . . . . . . . . . . . . .. . . . . . . Procedure Upon Default....... Attorneys' Fees and Costs.... Not ices. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . .. . .. . . . . . . .. . .. . Rules of Construction and Miscellaneous Terms... ..... Durat ion of Agreement.................................. Record i ng . . . . . . . .. . .. . . 'II .. . .. . .. . . . .. . . .. .. .. .. . .. . . . . . . . . . .. . .. .. . . . Mo r t gag e e s . . . . . .. . . . .. .. . . . .. . .. .. .. . . . . . .. .. . . . . . . .. . .. . . . .. . .. . . .. . Supersedure by Subsequent Laws......................... Es t oppe 1 Ce r t i fie ate. . . . . . . . . . . . . . . .. . . . .. . . . . .. .. . . .. . . . .. . . Exhibits: A. B. C. D. Legal Description Zone Diagram Mixed Use Parking Demand General Services Requirements 058:AGMT022TOC - 2 - 30 31 33 33 33 33 34 34 35 35 . . . DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT, is entered into as of the day of , 1987, by and between SOPAC PROPERTIES, INC., a Delaware corporation (ftproperty Owner"), and THE CITY OF SANTA MONICA, a Charter City organized and existing under the laws of the State of California (the "City"). RECITALS This Agreement is predicated upon the folloving facts: 1. Pursuant to the provisions of Sections 65864 et seq. of the California Government Code, the City has adopted Sections 9800 et seq. of its Municipal Code relating to devel- opment agreements between the City and persons having legal or equitable interests in real property for the development of such property. 2. Property Owner has requested the City to enter into this Agreement relating to certain real property located in the City and more particularly described in Exhibit A attached hereto (the "Real Property"). 3. On October 27, 1981, the City entered into a Develop- ment Agreement with Colorado Place Limited, a California Lim- ited Partnership ("CPL"), relating to the development of cer- tain real property in the City of Santa Monica commonly referred to as "Colorado Place Phases I and II." Such Develop- ment Agreement has been previously amended on three occasions (as amended, the "CPL Development Agreement"). 4. AS a portion of the CPL Development Agreement, the City approved the construction of a hotel having an average height not to exceed 96 feet for Phase II of Colorado Place to face on Broadway between 26th Street and Cloverfield Boulevard. This approval was given prior to the adoption in 1984 by the City of the revised Land Use and Circulation Elements of its General Plan (as amended, the "LUCE") and, therefore, was con- sidered by the City to be a part of the LUeE. At the request of residents of the residential neighborhood surrounding Colorado Place Phases I and II, Property Owner and the City have agreed that the Real Property constitutes a preferable location for the hotel and, therefore, Property Owner and the City desire to provide for this relocation as a part of this Development Agreement in furtherance of the policies of the LueE. Accordingly Sopac Development Co., a California & . . corporation ("Sopac DevelopmentW), and an affiliate of Property Owner, as the successor in interest to CPL as to the CPL Devel- opment Agreement as it affects Colorado Place Phase II, has requested the City to further amend the CPL Development Agree- ment in order, among other things, to provide for the reloca- tion of such hotel, all as set forth in Amendment No.4 to Development Agreement of even date herewith ("Amendment No.4"). 5. Proceedings have been undertaken in accordance with the City's ordinances, rules and regulations relating to the requests of Property Owner and SoPac Development to approve this Development Agreement and Amendment No.4. The City Coun- cil of the City has found that the provisions of this Agree- ment, when considered together with those of Amendment No.4, are consistent with the City's general plan, as set forth in the LUCE. On , 1987, the City council of the City adopted Ordinance No. approving this Agreement, and Ordinance No. approving Amendment No.4. NOW THEREFORE, the parties agree as follows: 1. Definitions. In this Agreement, the following terms shall have the following meanings: (a) wBuilding Height" shall mean the vertical dis- tance of a building measured from the existing average natural grade elevation of that portion of the Real Property covered by the building to the highest point of the roof. In determining the Building Height of any building, any elemenc of such build- ing permitted by City zoning laws in effect at the time of such determination to exceed the height limit on buildings in the zone in which the Real Property is located shall not be included. (b) "Building Volume Envelope" shall be determlned as follows: (i) Hotel. For the hotel building to be con- structed on the Real Property, the Building Volume Envelope shall consist of the following setbacks from a theoretical ver- tical plane rising from each Curb Line: {x) 37 to 45 feet: 37 foot average setback (y) 46 to 56 feet: 46 foot average setback (z) 57 feet and above: 55 foot average setback - 2 - . . In addition, at least 50% of that portion of the facade of the hotel above 36 feet shall have a minimum setback of 48 feet from such theoretical vertical plane. (ii) Other Buildinqs. For buildings other than the hotel, the Building Volume Envelope shall consist of the following setbacks from a theoretical vertical plane rising from each Curb Line: (x) 31 to 45 feet: 37 foot average setback (y) 46 to 56 feet: 46 foot average setback; at least 50% of the face to have a 38 foot minimum set- back (z) 57 feet and above: 55 foot average set- back~ at least 50% of the face to have a 43 foot minimum setback (el Reity" means the City of Santa Monica. (d) RFloor Area" shall mean the total gross horizon- tal areas of all floors of a bUIlding, including usable base- ments and cellars, below the roof and measured from the inte- rior face of exterior walls, or a wall separating two buildings excluding: (i) Stairways and stairwells. (ii) Elevators and elevator shafts.8ftO-e%evater eq~ipffieftt-reems~ (iii) Ramps to a subterranean or semi- subterranean parking structure or ramps between floors of a parking structure providing the ramp does not accomodate parking or storage above or below the ramp. (iv) Unenclosed decks, balconies, and platforms whether or not covered by a roof so long as they are not used for commercial or restau- rant activity. (v) Exterior courtyards, arcades, atria, paseos, walkways, and exte~~e~ corridors whether or not covered by a roof and so ieft~-8s-they-e~e not used for commercial or restaurant actlvity. - 3 - . . . (vi) The volume above interior courtyards, atria, paseos, walkways, and corridors whether covered or not. (vii) Subterranean and semi-subterranean areas used exclusively for parklng. (viiit--A~-gr8de,-eff-s~ree~,-~em~er8rY-~8rki"~ arees,-whether-or-not-eevered-by-e-b~~id- iftg,-str~et~re,-or-roef. (ix) At grade parking not covered by a building, structure or roof. (x) Loading docks covered by a roof or canopy. (Kit--Mee"BRieel-eqtlipment-reems,-eiee~rie8i rooms,-6fla-teiep"ene-roems,-end-sim~i8r spaee. Floor area shall include those areas occupied by the following: (A) Restrooms, lounges, lobbies, kitchens, storage areas, and interior hallways and corridors. (B) The floor area of interior courtyards, atria, paseos, walkways, and corridors covered by a roof or skylight. (e) At grade parking covered by a building or structure except for temporary parking. CD) Above grade parking. Floor area devoted to at-grade parking covered by a building or structure or above grade parking shall be counted at two thirds of the actual area if: (1) The floor devoted to parking does not exceed 10 feet in height. (2) There is at least one level of subterranean or semi-subterranean parking provided on the parcel. (3) The at-grade and above grade parking levels are screened from view. - 4 - ~ . . (4) There is no parking on the ground floor within 40 to 50 feet of the front property line. (5) The design of the parking levels is compatible with the design of the building as determined by the Architec- tural Review Board. Floor area devoted to the roof top parking shall be counted as 50 percent of the actual area. If at any time prior to completion of the Project, the City enacts or amends an ordinance defining "floor area ratio" or other substantially similar term in a manner different from the definition set forth in this Section led), Property Owner may, by written notice to the city.s Director of Planning, elect to have such new definition apply to the Project. (e) "Floor Area Ratio". The Floor Area of all buildings on the Real Property divided by the area of the Real Property. (f) "FASF" shall mean square feet of Floor Area. (9) "Open Space" shall have the meaning set forth In Section 13(b) below. (h) "Project" means the improvements, open space and landscaping to be developed by Property Owner on the Real Prop- erty pursuant to the provisions of this Development Agreement. (i) "Property Owner" means Sopac Properties, Inc., a Delaware corporation, and its successors in interest. (j) "Real Property" means that certain real property located in the City of Santa Monica, State of California, con- sisting of 562,427 square feet, more particularly described in Exhibit A. (k) n€~rh "Setback Base Line" shall mean the interior boundary of the sidewalk adjoining etir~-ii"e-ef a pub- lic vehicular right-of-way (including the right-hand turn lanes referred to in paragraphs 3 and 7 of Exhibit D attached hereto) without regard to any indentations in-the-e~rh-ii"e resulting from (i) the right-turn pockets referred to in paragraph 8 of Exhibit D attached hereto, (ii) drop-off spaces, (iii) the median in Cloverfield Boulevard referred to in paragraph 4 of Exhibit D attached hereto, or (iv) similar indentations. (1) "Zone Diagram" means the Zone Diagram attached hereto as Exhibit B, as it may be adjusted from time to time in accordance with this Agreement. - 5 - ,. . . 2. ~xhibits. The following documents referred to in this Agreement are attached and made a part by this reference: Exhibit Desiqnation Description A B C D Real Property Zone Diagram Parking Requirements Requirements of the General Services Department 3. Interest of Property Owner. Property Owner repre- sents that it has legal and equitable interests in the Real Property. Parcels 1 through 5 are owned in fee by Property Owner and Parcel 6 is held under that certain Commercial Lease dated March 12, 1979 between Southern Pacific Transportation Company and Property Owner, as successor in interest to Parker Manufacturing Company. Notwithstanding any other provisions of this Agreement, unless Property Owner acquires the fee interest in Parcel 6, this Agreement shall not affect such fee interest nor shall the fee holder thereof be subject to any of Property Owner's obligations hereunder. City has advised Property Owner that the property described in Parcel 6 may, at some future date, be utilized for a light-rail transit line if the City takes the necessary steps to obtain the right to so use Parcel 6, which rights it does not now have. If such develop- ment occurs, Property Owner agrees (a) that the City shall not be responsible for the cost of additional insulation, if any, necessary for any building on the Real Property as a result of noise generated from a light-rail transit line, and (b) to hold the City, its officers, agents, employees and other repre- sentatives harmless from liability for damage or claims for damage alleged to have been suffered by any tenant or hotel operator on the Real Property as a result of noise generated from a light-rail transit line. 4. ~ssiqnment; Bindinq Effect. (a) Riqht to Assiqn. This Agreement shall not be severable from Property Owner's interest in the Real Property and the Project. Any transfer of any portion of the Real Property or the project shall automatically operate to transfer the benefits and burdens of this Agreement with respect to said portions. Property Owner may freely sell, transfer, exchange or otherwise dispose of its interest in the Real Property and the Project, or any portion thereof, without the consent of the City. Property Owner shall, however, give notice to City of any transfer hereunder, disclosing therein the identity of the transferee and such transferee's address. - 6 - . . (b) Release Upon Transfer. Upon the sale, transfer or assignment of Property Owner's rights and interests to the Real Property, or any portion thereof, Property Owner shall be released from its obligations under this Agreement with respect to the Real Property and the Project, or portion thereof so transferred, arising subsequent to the effective date of such transfer if (i) Property Owner has provided notice of such transfer to City, (ii) the transferee executes and delivers to City a written agreement in which the transferee expressly and unconditionally assumes all of the obligations of Property Owner under this Agreement with respect to the Real Property and the project, or portion thereof so transferred, and (iii) City consents to such release, which consent shall be not unreasonably withheld based upon the status of completion of the Project and the ability of the transferee to comply wlth this Agreement. Failure to deliver a written assumption agree- ment hereunder shall not affect the transfer of the benefits and burdens of this Agreement as provided in Section 4(a) above. 5. Relationship of Parties. It is understood that the contractual relationship created hereunder between the City and Property Owner is such that Property Owner is an independent contractor and is not an agent of the City. None of the terms or provisions of this Agreement shall be deemed to create a partnership or joint venture between Property Owner and City or to provide third party beneficiary rights to any person or entity. 6. Time for Construction and Completion of Prolect. (a) Beqinninq Excavation. Property Owner agrees to commence excavation for the inltial bUllding of the ProJect wlthin twelve (12) months following the date hereof, provlded that all necessary permits, approvals and financing are obtained for such building. So long as Property Owner is dill- gently seeking said permits, approvals and financing, lts inability to commence excavation within sald period shall not be a default hereunder. (b) Completion of Proiect. Property Owner agrees to diligently prosecute to completion the construction of the Project and to commence excavation for the final building of the Project within ten (10) years after the date of execution of this Development Agreement. (c) pro;ect Phasinq. The parties acknowledge that Property Owner cannot at this time predict when, or the order in which, individual buildings in the Project will be developed. Such decislons with respect to phasing of the - 7 - II' . . Project will depend upon a number of circumstances not wIthin the control of Property Owner, including, without lImitation, market orientation and demand for the use or uses within the Project, the condition of capital markets and availability of appropriate financing for the development of the Project (such as construction or interim and permanent loans, and/or equity capital) and other similar factors. Property Owner shall therefore have the right to develop the Project in phases in such order and at such times as Property Owner deems appropri- ate within the exercise of its subjective business analysis of those factors determining, in Property Owner's judgment, the appropriate course of development of the Project. However, in connection with each phase, Property Owner shall (i) comply with the provisions of Section 9(1) below, (ii) provide suffi- cient parking for the anticipated uses in such phase, as deter- mined pursuant to Section 9(f) below and Exhibit C hereto, and fii+ (iii) complete that portion of the improvements specifIed in Exhibit D hereto as may be appropriate for such phase, as may be reasonably determined by the CIty'S Department of Gen- eral Services. In making such determination, such Department shall consider (w) Property Owner's and City's objective to complete such improvements in an economically efficient manner, (x) the anticipated environmental impacts from each phase and the appropriate mitigation measures therefor, as set forth in the City's Final Environmental Impact Report for the Project, (y) the location of the ExhIbit D improvements to be required for each phase relative to that phase and to the location of future phases and sdher Exhibit D improvements to be made, and (z) Property Owner's schedule for commencement of constructIon of the remaining phases of the Project and the schedule for completion of other improvements around the Real Property to be made by the City or by adjacent property owners. (d) Demolition and Excavation PermIts. During the term of this Agreement, Property Owner shall be entitled to obtain one or more demolitIon permits or excavation permits for the Project without the necessity for applying for or receIvIng any building permit to replace the structure to be demolIshed; provided, however, that Property Owner shall be in compliance with Section 9123 of the Santa Monica Municipal Code and shall comply with any property maintenance plan promulgated thereunder. (e) Certificates of Occupancy. Promptly after com- pletion of any portion of the project in compliance with the terms of Sections 9 and 12 of this Agreement and all applicable building and safety regulations, the City shall provide Prop- erty Owner with a Certificate of Occupancy therefor. - 8 - ~ . . (f) Procedure for Future Approvals. If at any time during the term of this Agreement, an act of Property Owner relating to the Project requires an administrative approval, variance, conditional use permit or other City approval, other than an adjustment covered by Section 9(b) below, Property Owner shall apply to City in accordance with the applicable procedures then specified therefor and the procedure then gen- erally in effect for such administrative approval, variance, conditional use permit or other City approval shall be fol- lowed. The procedures for amendment of development agreements shall not be applicable unless a specific amendment to this Agreement is requested by Property Owner or unless the adminis- trative approval, variance, conditional use permit or other City approval sought by Property Owner is inconsistent with this Agreement. 7. Hold Harmless. (a) Property 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 dam- age, which may arise from the direct or indirect operatlons of Property Owner or those of its contractor, subcontractor, agent, employee or other person acting on its behalf which relate to the Project. Property Owner agrees to and shall defend the City and its officers, agents, employees and repre- sentatives from actions for damages described above caused or alleged to have been caused by reason of Property Owner1s activlties in connection with the Project. (b) This hold harmless agreement applies to all dam- ages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this sec- tion, regardless of whether or not the City prepared, supplied, or approved plans or specifications or both for the ProJect. B. Insurance. Property Owner shall, commencing no later than the commencement of excavation for the Initial building of the Project and continuing for the remaining term of this Agreement, maintain, or cause to be maintained, public lIabil- ity insurance in amounts reasonably calculated by Property Owner to be sufficient from time to time as work on the Project continues. Such insurance shall extend to the City, its elec- tive and appointive boards, commissions, officers, agents, employees and representatives and Property Owner and each con- tractor and subcontractor performing work on the Project. Property Owner shall furnish to the City prior to the commence- ment of excavation for the initial building of the Project sat- isfactory evidence that such insurance is in force. The - 9 - .,. . . insurance shall provide coverage for claims and damage arIsing out of the operations referred to in Section 7 of this Agree- ment. 9. Specific Restrictions on Development and Use of the Real Property. The following specific restrictions shall gov- ern the development and use of the Real Property: (a) Floor Area. The Floor Area Ratio ef-t~e-P~o;eet shall not exceed 1.85 (i.e., the aggregate FASF of-the-Prejeet may be up to, but not in excess of, 1,040,490). (b) Zone Diaqram; Buildinq Heiqhts. (i) The Zone Diagram attached as Exhibit B des- ignates four zones on the Real Property within which buildings may be located (subject to all other require- ments of this Agreement) and sets forth, for each zone, maximum Building Heights for the building or bUIldIngs to be constructed in that zone. Each zone may contain one or more building(s). Any building constructed in two or more zones shall be deemed to be in compliance with the maximum Building Height limitations of this Agreement if the Building Height of that portion of such buildIng SItuated in any zone does not exceed the Building Height permItted In that zone. (ii) The City hereby specifically approves for the Project, as shown on the Zone Diagram, (x) a hotel having an aggregate FASF not to exceed 270,000 and having not more than two wings, each wing with a BUIlding Height not to exceed ninety-six (96) feet, and (y) additional buildings with Building Heights not to exceed eighty-four (84) feet, seventy (70) feet, and fifty-seven (57) feet, as applicable. (iii) No building other than the hotel may have a Building Height in excess of eighty-four (84) feet. (iv) The Zone Diagram does not show the location of a proposed health club anticipated to be built below grade. Such a health club, not to exceed 60,000 FASF, may be located at any point below grade at the discretion of Property Owner subject to applicable building code and fire safety restrictions. Property Owner may elect to place the health club above grade in its sole discretion. (c) Maximum Site Coveraqe. The aggregate square footage of the at-grade footprints of all buildings in the Project shall not exceed 50 percent of the total square footage - 10 - . . of the Real Property (i.e., shall not exceed 281,214 square feet). For purposes of this Section g(c), (i) the "at-9rade footprint" of the hotel shall be defined by the perpendIcular projection to the ground of all portions of the hotel which are less than 36 feet high and (ii) the "at-grade footprint" of any other building shall be defined by the perpendicular projection to the ground of all portions of such building. (d) Minimum Setbacks. All buildings in the Project shall be set back at least twenty-e~gh~-f~B+ (20) feet from the Setback Base €~rb Line. No side-yard or rear-yard setbacks shall be required other than those required by applicable fire safety codes. No sidewalk shall be required to exceed 8 feet in width. (e) Buildinq Volume Envelope. No building shall project beyond the Building Volume Envelope except that this restriction shall not apply to (i) any building other than the hotel with a Building Height over 57 feet which is set back at least 40 feet from the Curb Line along its entire frontage, or (ii) any building with a Building Height not over 57 feet which is set back at least 37 feet from the Curb Line along its entire frontage. (f) Parkinq. (i) The required number of parking spaces to be provided in connection with the Project shall be deter- mined in accordance with ExhIbit C attached hereto and incorporated herein. (ii) The relevant portion of the Project parking garage and internal circulation plan shall be revlewed and approved by the City Traffic Engineer prior to Property Owner's submission of said plan to the Planning Commission under Section 9(1) below. Areft~teettlr81-RevieY-Bo8re. (iii) The City specifically agrees that (x) park- ing bay depths of sixty (60) feet shall be sufficient width for 90-degree double bay parking, as previously approved by the City for COlorado Place Phases I and 11, and (y) up to forty percent (40%) of the required spaces may be sized for compact cars. (9) Uses. (i) The Real Property is hereby approved for the following uses: - II - ~ . . Use FASF Not to Exceed . Hotel Building 270,000 (no fewer than 250 rooms with public meeting space, restaurants and ancillary retail) . Restaurants, including fast 25,000 food outlets (other than hotel restaurants and restaurants, such as cafeterias and dining rooms, designed to primarily serve the employees of a single tenant and not open to the general public) . Retail (other than retail space located in the hotel) to serve primarily employees of, or visitors to businesses located on the Property, or guests of the hotel . Health Club . Medical Office . Banks and savings and loans General Commercial Office (including restaurants, such as cafeterias and dining rooms designed to primarily serve the employees of a single tenant and not open to the general public) and any similar use or any other uses that the Zoning Administrator deems acceptable for the zone except that theatre use shall not be permitted 10,000 60,000 35,000 20,000 The maxim~~ FASF permltted for the Project less 270,000 and less the FASF utilized for other uses. (ii) Property Owner shall be entitled to deter- mine the actual mix of uses on the Real Property from time to time subject only to the restrictions set forth in this Agreement. In the event less than 35,000 floor area - 12 - .. . . square feet will be leased for medical uses, the parklng requirements shall be adjusted according to the method set forth in Section 9(f) and Exhibit C so long as the Prop- erty Owner gives written notice to the City of the total floor area square footage to be leased for medical office use prior to the issuance of the last building permit issued in connection with this Agreement. The total floor area square footage, not to exceed 35,000 usable square feet, set forth in such written notice shall thereafter constitute the maximum usable square footage permitted under this Agreement for medical office use in the proj- ect. Upon the execution of each lease of space for medi- cal office use, Property Owner agrees to advise City in writing of (i) the total floor area square footage leased for medical office use in such lease and (ii) the aggre- gate floor area square footage, including such newly leased space, of the Real Property under lease for medical office use. (iii) The City hereby approves the issuance of conditional use permits for "on-sale" liquor licenses for the hotel, including all lounges and restaurants therein. Conditional use permits shall be applied for under normal City procedures for any other "on-sale" licenses desired in the Project. kea%th-e%~h7-Bfte-8ii-regta~rB"ts-~"-t"e Projeet7 No "off-sale" licenses shall be permitted with- out a conditional use permit. (iv) No building shall be constructed on Parcel 6. Parcel 6 may be used for landscaped buffer and limited public recreational uses such as a par course. The City specifically finds that such uses are permissible within Section 9121 (M-2 Zone) of the Santa Monica MuniCi- pal Code in effect on the date of this Agreement. (v) Nothing in this Agreement shall prevent Property Owner from utilizing any buildings existing on the date hereof located on the Real Property for any use permitted under this Development Agreement or in the CS or M1 zones under zoning laws in effect at the time of such use, including provisions applicable to non-conforming uses. (vi) Property Owner agrees to make at least 14,000 FASF of space in the existing buildings on the Real Property available from the date of execution of thlS Agreement until September 1, 1988 without the payment of rent other than a pro rata share of utility costs, prop- erty taxes and maintenance expenses to non-profit commu- nity service organizations qualified for tax-exempt status - l3 - .. . . under Section SOl(c)(3) of the Internal Revenue Code selected by Property Owner and approved by the City Man- ager, which approval shall not be unreasonably withheld. If the City Manager has not disapproved of an organization within five days, approval shall be deemed to have been given. Property Owner agrees to construct basic parti- tioning of such space but each service organization utilizing such space shall be responsible for all other tenant costs, including such telephone and utility instal- lation as may be required for its particular use of the space. (h) Ad;ustment Procedure. If Property Owner desires to increase the Building Height in any zone above that allowed by Section 9(b) above, decrease the setback in any zone required by Section 9(d) above, decrease the setbacks for any floor in any building required by the Building Volume Envelope provisions of Section 9(e) above, increase the FASF for any use permitted by Section 9(g), or expand the size of any zone, the following procedures shall be applicable: (i) Upon the approval of the Zoning Administra- tor, Property Owner shall be entitled to (x) decrease the setbacks required by the BUllding Volume Envelope restrlc- tions for any portion of any building above 30 feet (36 feet for the hotel) by an amount up to 5% ie%, and (y) increase the FASF of any use permitted by Section 9(g){i) below by up to 3% le% (subject to the gen- eral limitation in Section 9(a) above concerning the maXi- mum Floor Area Ratio of the Project}. (ii) Upon the approval of the Planning Commis- sion, and subject to the general limitation on Floor Area Ratio in Section 9(a) above, Property Owner may decrease the setbacks required by the Building Volume Envelope restrictions for any portion of any building above 30 feet (36 feet for the hotel) or increase the FASF of any use permitted by Section 9{g}(i), by amounts exceeding the amounts set forth in Section 9(h}(i) above or decrease the setback in any zone required by Section 9{d} above, expand any zone, or increase the Building Height of any building in any zone, except that none of these procedures shall permit an increase in the Buildlng Height of the hotel above ninety-six (96) feet or the Building Height of any other building above eighty-four (84) feet without an amendment to this Development Agreement. (iii) Property Owner shall file an application on a form approved by the Zoning Administrator which shall require Property Owner to (x) state the specific - l4 - .. . . adjustment being requested, 8"a (y) attach a revised Zone Diagram or Buildlng Volume Envelope description indicating the requested changes from the Zone Diagram or the Build- ing Volume Envelope then in effect hereunder, and (z) include other materials relevant to the adjustment being requested but not in excess of those described in Section 9(1) of this Agreement. (iv) The fee for any such application shall be equal to the fee then established by ordinance for devel- opment agreement amendments. (v) A public hearing on the application shall be scheduled for the earliest reasonable regularly sched- uled meeting of the Zoning Administrator or Planning Com- mission, as applicable, after the application is complete and the fee has been paid. Notice of the public hearlng shall be given prior to the date thereof in accordance with the City's general procedures in effect at the time for notice of public hearings on Site ReVIew applications and the public hearing shall be conducted in accordance with the then applicable procedural rules of the body holding the meeting. (vi) Following the public hearing, the Zoning A~~inistrator, Planning Commission (on appeal or other- wise), or City Council (on appeal), as applicable, shall approve or conditionally approve the application if it finds that the adjustment or adjustments applied for will not, when compared to the Zone DIagram, Building Volume Envelope or FASF of permitted uses, as applicable, in effect prior to the adjustment, adversely affect the com- patibility of the Project to the surrounding neighborhood. (vii) A statement of official action shall be issued by the Zoning Administrator, Planning Commission or City Council, as applicable, promptly following its deci- sion stating (x) its findings as described by Section 9(h)(vi) above, (y) the decision to approve, con- ditionally approve or deny the application, and (z) the reasons for such conclusion. A copy of such statement shall be mailed to all parties to the proceeding at the addresses provided by such parties to the Zoning Adminis- trator. {viii} Any decision of the Zoning Administrator may be appealed in writing to the Planning Commission and any decision of the Planning Commission, whether initially or on appeal from the Zoning AdmInistrator, may be appealed in writing to the City Council, in each case by any person pursuant to the following procedures: - l5 - ~ . . (w) Appeals shall be addressed to the appellate body on a form prescribed by the Zoning Administrator and the appellant shall state the spe- cific reasons for the basis of the appeal. An appeal shall be filed within l4 consecutive calendar days following the date of the action from which the appeal is being taken. Filings shall be made with the City Planning Division in the case of an appeal from a Zoning Administrator action and with both the City Planning Division and the City Clerk in the case of an appeal from a Planning Commission action. (x) Appeals shall be accompanied by the filing fee then established by the City for appeals from Site Review applications pursuant to the City's Zoning Code except that no member of the Plan- ning Commission or Clty Council shall be required to pay a fee. (y) Public notice of an appeal hear- ing shall conform to the manner ln which notlce of the original hearing was given. (z) Hearings on appeals shall be held at the earliest reasonable regularly scheduled meet- ing of the Planning commission or City Council, as applicable, and shall be conducted in accordance with the then applicable procedural rules of the body holding the meeting. (i) Access. Points of vehicular ingress and egress to and from the interior of the Project ("Access Points") may be located at any points on the Real Property, subJect to the following restrictions: (i) On Colorado Avenue (x) there shall be no more than five Access Points, three for general automobile access and two for service deliveries, (y) no Access Point shall be closer than 200 feet to Cloverfield Boulevard (250 feet if left turns from westbound Colorado traffic are to be permitted into such Access Point), or closer than 200 feet to 20th Street, and (z) all Access points shall be at least 165 feet apart, center line to center line. (ii) There shall be no Access Points on Clo- verfield Boulevard but there may be a drop-off zone for the hotel located on Cloverfield Boulevard subject to the requirements of paragraph 4 of Exhibit D attached hereto. Such drop-off shall not constitute the primary access for the hotel. - l6 - . . (iii) On Olympic Boulevard (x) there shall be no more than three Access Points, two for general automobile access and one for service, (y) no Access Point shall be closer than 200 feet to Cloverfleld Boulevard, and (z) all Access Points shall be at least 100 feet apart. The City asserts that it "owns" the access rights along Olympic Boulevard by reason of the Grant Deed from Associated Telephone Company, Ltd., a California corporation, to the State of California, Division of Highways, executed December 21, 1943 and recorded on January 18, 1944 in Book 20548 at Page 152, Official Records. Property Owner con- tests that the City now owns any access rights along Olym- pic Boulevard by reason of these or any other documents. If Property Owner desires access to the Real Property from Olympic Boulevard and if, and only to the extent, such access rights are owned by the City, Property Owner shall acquire such rights from the City at a price equal to the fair market value. The fair market value thereof shall be determined by appraisal by an independent MAr appralser selected by the City through appropriate competition pro- cess so long as such appraiser is satisfactory to Property Owner. The cost of such appraisal shall be borne equally by the parties. (iv) On 20th Street, there shall be no general automobile Access Points but there may be one Access Point for services only which shall be right-turn in and right- turn out only. (v) No service deliveries will be allowed between the hours of 4:00 p.m. to 6:00 p.m. on any day other than a Saturday, Sunday or holiday. (j) General Services Requirement. Property Owner shall comply with the requirements of the Clty'S Department of General Services which requirements are set forth on Exhiblt D attached hereto. Prior to the date on which construction of the Project is to be completed pursuant to the terms of the Agreement, Property Owner shall not be subject to any addi- tional requirements of such Department other than those uni- formly applicable to all developments, such as side-walk rental and utility hook-up fees. Nothin9 in this Agreement shall require the City to issue a buildlng permit for any building on the Real Property during any valid, €ity-wide building morato- rium resulting from the lack of capacity to handle additional sewage. Property Owner's time to complete the project under Section 6 shall be extended by the period of delay as a result of any such moratorium. In planning for the need for addi- tional sewage treatment capacity, the City shall take into account the additional development covered by this Agreemnet. - 17 - . . . Any action by the City under this Section 9(j) shall take into account anyon-site sewage treatment facility which may be included in the project by Property Owner. Nothing in this Section 9(j) shall require Property Owner to acquiesce to any moratorium or impair any rights Property Owner may have as a result thereof. (k) Other Mitiqation Measures. In addition to the requirements of Section 9(j) above, Property Owner shall comply with the following mitigation measures: (i) Hydrocarbon Contamination. Contaminated soil on Parcel 1 shall be removed and disposed of in accordance with all applicable laws, ordinances and regu- lations of City and the State of California prior to issu- ance of a building permit for any building to be built on Parcel l. (ii) Air Quality Durinq Construction. Equipment engines will be kept in proper tune to reduce exhaust emissions. Such equipment shall not be operated during first or second stage smog alerts. Property Owner shall use reasonable and typical watering techniques to reduce fugitive dust during construction. (iii) Noise. As a part of building plan-check procedures, Property Owner shall demonstrate that hotel rooms are sufficiently insulated to provide any reasonably necessary noise protection from street traffic and from construction activities. (iv) Security SerVices. Property Owner shall operate, contract for, or otherwise provlde private secu- rity services for the Project, including the parking garage. (v) Water Conservation. (x) Automatic sprinklers shall be set to water landscaping during evening and early morning hours only to reduce excessive water requirements due to water loss by evaporation. (y) Property owner shall be permitted to incorporate water features into the Project so long as Property Owner demonstrates to the satisfaction of the General Services Department that the water loss from any such feature is not excessive. - l8 - . . (vi) Impacts on Traffic Durinq Construction. To the extent feasible, Property Owner shall maintain a staging area on the Real property for use by construction vehicles and will design traffic patterns for construction vehicles, both on-and-off-site, in order to minimize the impact of construction activities on adjacent streets. Property Owner will cooperate with the City's Department of General Services in order to develop other mutually acceptable means for minimizing impact. (vii) Child Care Contribution. Following the execution of this Agreement, a committee shall be formed consisting of one representative of Property Owner selected by Property Owner, two neighborhood repre- sentatives, one each chosen by Mld-City Neighbors and Pico Neighborhood Association, and two City representatives, one each chosen by the Cityfs Chlld Care Task Force and the City Manager (the "Child Care Committee"). Property Owner agrees to spend Two Hundred Flfty Thousand Dollars ($250,000) for child care benefits primarily targeted for the benefit of the residents of the Pico Neighborhood Association and the Mid-City Neighbors in accordance with a plan to be developed by the Chlld Care Committee (the "Plan"). Such Plan may contain requirements for acquisi- tion and/or construction of facilities, funding of pro- grams, direct subsidy of users or providers, or a combina- tion of the foregoing in any reasonable way, and the timing of all funding, except that no facilities or pro- grams may be required on the Real Property. The primary emphasis of such Plan shall be to make child care serVlces affordable to the targeted users. The Plan shall require Southmark to allocate expe"o no less than Fifty Thousand Dollars ($50,OOO) per year until the fund is exhausted. In the event that the Child Care Committee fails to develop a Plan within one year of the date of the execu- tion of this Agreement, Southmark shall, in its sole dis- cretion and judgment, allocate ~~efld not less than Fifty Thousand Dollars ($50,000) from the fund for child care purposes. All funds must be allocated ex~eftdea in accor- dance with the Plan within five (5) years of the date of the execution of this Agreement. Until expended in accor- dance with the Plan, all funds will be held by Property Owner. (1) Review of Specific Buildings. (i) AS of the date of this Agreement, Property Owner has not designed any of the buildings which will ultimately constitute the Project due to Property Owner's desire to respond to market forces over the term within - 19 - . . which the Project may be constructed. For this reason, City and Property Owner have established certain develop- ment restrictions, set forth in this Agreement, to which the Project must adhere. However, City desires that prop- erty Owner submit to the Planning Commission for review certain limited design information described in clauses (ii) and (iii) below for each building prior to, and as a condition for, the issuance of any building per- mit for that building. Upon the execution of this Agree- ment, Property Owner has obtained a vested right to pro- ceed with the Project as described in, and limited by, the provisions of this Agreement. Therefore, the review to be conducted by the Planning Commission is to be limited in its scope to the matters described below and is not for the purpose of allowing the City to alter any provision of this Agreement. (ii) Property Owner shall submit an application to the City Planning Department for review of the particu- lar building on a form approved by the Zoning Administra- tor which application shall set forth (v) the Building Height of such building, (w) for the last building sub- mitted for approval (A) the aggregate FASF for all bUIld- ings previously approved under thIS Section 9(1) and the building then being submitted for review, and (8) the aggregate square footage of the at-grade footprints of all buildings previously approved under this Section 9(1) and the building then being submitted for review, (x) calcula- tions showing compliance with the Building Volume Envelope restrictions for such building, (y) the FASF of each anticipated use in such building being submitted for review and the aggregate FASF for all uses in all build- ings previously approved under this Section 9(1), and (z) the aggregate number of parking spaces which will exist on the Real Property following the completion of the build- ings being submitted for review. (iii) Such application shall be accompanied by (x) a Zone Diagram modified to show (A) the location and footprint of each building previously approved under this Section 9(1) and the building or buildings being submitted for review, (B) all Access Points then existing or identi- fied and (e) the internal circulation and parking plan, and (y) one or more dimensioned schematic drawings for each typical floor of each building then being submitted for review, indicating the location and FASF for each gen- eral type of use, as described in Section 9(g)(i) above, on each floor, and dimensioned schematic exterior building elevations indicating grade for each facade of each such building which faces any public right-of-way. - 20 - . . (iv) The application shall be deemed complete when all materials and information required by clauses (ii) and (iii) above have been submitted along with the fee required by clause (vi) below. Property Owner shall not be required to submit building interior drawings (other than those described in clause (iii) above), land- scape plans, irrigation plans, architect's renderings, models, or other architectural details in addition to those specified in clauses (ii) and (iii) above and no decision of the Planning Commission may be withheld or delayed due to the absence of any materials not required to be submitted as a part of the application as set forth in clauses (ii) and (iii) above. Property Owner may, how- ever, at its sole option, submit such additional materials as a part of the application as it may desire. (v) City agrees that in view of the development parameters established in this Agreement, the substantial environmental studies which have already been performed on the Project, the formal and informal public hearings which have taken place, and the nature of the review contem- plated by this Section 9(1), no environmental impact report, supplemental environmental impact report or other environmental work shall be required as a condition to the approval required hereunder unless the City reasonably concludes that the issues over which the Planning Commis- sion is expressly given discretion under this Section 9{1) might have a significant impact on the environment. (vi) The fee, public hearing procedures and appeal procedures for the review covered by this Section 9(l) shall be the same as then in effect for a Site Plan Review Permit under the City's Municipal Code, except as otherwise specified in this Section 9(1). (vii) The Planning Commission shall expeditiously and in good faith review each application under this Section 9(1) and, in any event, shall take action thereon within sixty (60) days following the date upon which the application is deemed complete. A failure to do so shall result in the application being deemed approved by the Planning Commission. Any appeal to the City Council shall be considered expeditiously and in good faith and, in any event, shall be heard by the City Council at the earliest practicable date. (vi i i) cil on appeal, out conditions can be made in The Planning Commission, or the City Coun- shall approve the application with or with- or modifications if the following findings an affirmative manner based upon all - 21 - . . materials submitted as a part of the application: (s) the placement of each proposed building on the Real Property and the location of the proposed uses within each such building are compatible with, and relate harmoniously to, surrounding sites and neighborhoods, (t) the Access Points and internal circulation plan are adequate to accommodate anticipated automobile and pedestrian traffic for each proposed building, (u) the Building Height of each pro- posed building does not exceed that permitted by Section 9(b), (v) the setback requirements of section 9(d) are complied with for each proposed building and the placement of each proposed building is compatible with and relates harmoniously to, the open space required by Section 13(b), (w) each proposed bUllding will comply with the Building Volume Envelope restrictions of Section 9{e), (x) the number of parking spaces required by Section 9(f) and Exhibit C are being provided, (y) the aggregate FASF for each use on the Real property in all buildings previ- ously approved under this Section 9(1), and then being proposed, is in compliance with Section 9(g), and (z) with respect to the last building to be submitted for reVIew, the provisions of Sections 9{a) and g(c) will be complied with following completion of such building. (ix) No action of the Planning Commission, or the City Council on appeal, under this Section 9(1) shall, directly or indirectly, (x) impair the rights of Property Owner under this Agreement with respect to the building or buildings then submitted for review or any existing or future development on the Real Property, (y) deny, condI- tion or modify any approval applied for under this Section 9(1) either (A) by imposing any development restriction inconsistent with those set forth in this Agreement, or (B) for any reason not specified in this Section 9(1), or (z) require Property Owner to build a different number of buildings in any zone than the number applied for. Nothing in this Section 9(1) is intended to, or shall be construed to, permit the Planning Commlssion, or the City Council on appeal, to deny, condition or mod- ify any approval applied for under this Section 9(1) if such denial, condition or modification would effectively operate to prevent Property Owner from developing the Real Property to an aggregate FASF of 1,040,490 square feet. (x) Nothing in this Section 9(1) shall be applicable to (x) any portion of the health club so long as it is constructed below grade, or (y) the issuance of any demolition or excavation permit. - 22 - . . . 10. Non-Discrimination, Affirmative Action and Job Training. (a) Property Owner shall not discriminate against any employee or applicant for employment on the basis of race, religion or creed, sex, marital status, national origin, sexual orientation or physical handicap and shall cause a similar pro- vision to be inserted in any contract for work entered into by Property Owner relating to the Project other than purchase orders for standard commercial supplies, materials or other goods. (b) Subject to the provIsIons of section IO(a) above, Property Owner will develop and submit to the City for approval prior to the commencement of construction of the Proj- ect a suitable affirmative action program for the hiring of labor and the obtaining of materials during construction relating to employment, upgrading, demotion or transfer, recruitment or recruitment advertising, lay-off or termination, rates of payor other forms of compensation and selection for training, including apprenticeship. Any such plan shall recog- nize the necessity of compliance with standard union hiring practices and shall not establish quotas of any kind. (c) Prior to the completion of the hotel, Property Owner will designate a representative whose responisibility it will be to identify and target those areas suitable for affir- mative action and to develop and submit to the City for approval a program designated to effectively address problem areas. Property Owner's representative will, in consultation with appropriate neighborhood organizations, design and actively promote amnong the tenants of the Project and the hotel operator job training programs that address the needs of the neighborhoods surrounding the Project. (d) Property Owner will, in all solicitations or advertisements for employees placed by or on ~ehalf of Property Owner, state that all qualified applicants will receive consId- eration for employment without regard to race, religion or creed, sex, marital status, national origin, sexual orientation or physical handicap. -----ie~--Affirma~ive-Aetien-and-aeb-!r8iniR~.--Preperty-eWfter yill-desi~nB~e-8-represent8tive-wftege-respens~bility-it-w~ll-be te-idefttifY-8nd-t8rget-tfteSe-are8s-s~it8ble-fer-affirmetive eetioft-8ftd-to-develep-end-s~bmit-~o-tfie-€ity-for-epprevel-pr~er te-tfie-eempletien-ef-tfie-ftotel-e-progreffi-desigRBted-te-effee- tively-eadress-preblem-ereas.--Preperty-ewRerLg-repregentetive viil,-iR-eOnStiltetion-vith-apprep~~ete-nei9nbornoed-ergani~8- t~ens,-design-end-Betively-proffiete-8ffieng-tfie-teR8nts-of-~ne - 23 - . . P~e;eet-eftd-the-hete%-o~e~ater-;e~-t~Biftiflg-pre~raffl3-thet addre33-the-~eeds-of-the-fle~gh5erheed3-5~rre~ndift9-the-prejeet. 11. Traffic and Emission Abatement. Property Owner will designate a representative whose responsibility it will be to prepare and submit to the City for approval by the City Manager prior to issuance of a temporary certificate of occupancy for the first office building in the Project the-eempietiofl-ef-the prejeet a program designed to actively encourage and promote among the tenants of the Project and the hotel operator the following traffic and emission abatement measures: (a) Staggered hours or "flex-time" amongst different tenants and/or within divisions or departments of larger tenants. (b) Compilation and distribution of rIde-share lists and computer scheduling of car-pools and van- pools for all employees of all tenants. (c) Reduced parking rates for car-pools and van- pools. (d) Use of public transit facilities, including (1) actively working with the Santa Monlca Municipal Bus Line or its designee to Improve service to and from the Project, (ii) imple- menting public transit incentives such as bus tokens for employees and (iii) actively coordinating with existing companies providirg van or bus service to Los Angeles International Airport to include the ProJect as a regular stop along their route in Santa Monica. (e) Readily available bicycle parking areas. (f) Such other measures that Property Owner deter- mines will reduce traffic impact of the Project. ----------~fie5e-t~aff~e-ae6teffleflt-meB5~res-wiii-ee-iflitiatee-fto %Bte~-tflaft-~peft-oee~~afley-of-the-fir5t-5e%-of-the-flofl-hotel-BRe Roft-~estetirant-FA5F-ef-tfie-Pro;eet. ----------No-9reeter-ievel-ef-detaii-shail-5e-re~tiirea-by-~he €ity-for-the-review-er-e~prevBl-of-stieh-~~o~rem.--Fti~ther,-the €itY-fiftds-tfi6t-the-Eftvireftffiefttei-fmpaet-Re~er~-prepered-ifl eeftfieetieft-vith-t"is-A~reemeftt-previde5-e-s~ffieieftt-~8sis-to determifte-the-enV1renmentei-impeet-e{-any-sneh-pro9r6ffi-so-that "o-f~rtfier-eftviroftmeftta%-review-shel~-be-reqtiired-ift-eeftfteet~eft w~th-aftY-5~eh-6pp%ieatieft. Such program may contain a goal of - 24 - . . reducing vehicle trips to the Project by an amount deemed achievable by City and Property Owner based upon all appropri- ate factors, including the amount of office development in the vicinity of the Project, but not to exceed 10%. Property Owner shall, in good faith, comply with the program and attempt to achieve the established performance goal. The City recognizes that the ability to meet any established goal may depend upon factors outside the control of Property Owner. Therefore, Property Owner shall not be in default hereunder for failure to achieve any goal so long as Property Owner is, in good faith, attempting to comply with the approved program. Nothing in this Agreement shall exempt any tenant, hotel operator or other employer in the Project from complying with any reasonable traffic system management ordinance so long as such ordinance is uniformly applicable to all similar uses throughout a rea- sonably defined geographical area of the City which fairly and equitably treats all uses on the Project in comparison to other commercial uses. A "traffic system management ordinance" shall be an ordinance which adopts measures intended to reduce the number of vehicle trips at peak traffic hours through the encouragement of ride-sharing, van pools, use of publiC trans- portation, shuttle serVices, and other similar means but shall not include any ordinance imposing fees or assessments, or mandating specific work, in order to make physlcal improvements to the City's circulation system. Nothlng in this Section 11 shall limit the obligation of Property Owner under Section l7(e) below. 12. Mitiqation Fee. For each building permit issued for the Project, Property Owner will pay to the City a hOUSing and parks mitigation fee in an amount computed by adding (a) $2.25 multiplied by the first lS,OOO square feet of net rentable floor area utilized for medical or co~~ercial office space, plus (b) $5.00 multiplied by the amount of net rentable floor area for such office space above 15,OOO (except that the fee computed at the rate of $2.25 per square foot shall apply only to the first lS,OOO square feet of medical or commerCial office space in the Project). Any unpaid or uncredited dollar amounts shall be adjusted from the date of the execution of thlS Agree- ment to the time of payment by the intervening changes in the Consumer Price Index for all consumer products for the Los Angeles/Long Beach Metropolitan Area. The amount of the mlti- gat ion fee due for any building of the Project shall be based upon the amount of net rentable floor area included within the approved building permit for the building. On the date of exe- cution of this Agreement, Property Owner shall pay $2,200,000 to the City constituting an initial, advance payment of the mitigation fee due hereunder which shall constitute full pay- ment of the mitigation fee due on the first 448,250 square feet of net rentable floor area for use as medical or commercial - 25 - . . office space. Upon the issuance of each building permit, Prop- erty Owner shall be credited with payment of the mitigation fee, including the adjustments for the increase in the Consumer Price Index, that would be due on the net rentable floor area for use as medical or commercial office space included within such building permit. When the aggregate total of all such credits amounts to 448,250 square feet of net rentable floor area for medical or commercial office use, Property Owner shall be entitled to no more credit hereunder. Upon the issuance of each building permit, Property Owner shall promptly pay the unpaid or uncredited mitigation fee due thereon, wlth the unpaid or uncredited portion increased by the increase in the Consumer Price Index as set forth herein. Provided, however, that nothing in this Section 12 shall require payment of a mit- igation fee as a condition for the issuance of a bUllding per- mit for the restoration of any bUilding on the Real Property pursuant to Section 9(g)(vi) hereof. Fees paid under this Development Agreement shall be allocated by the City in accor- dance with, and in full satisfaction of, Ordinance Number 1367 (CCS), as it may be amended from time to time, except that to the extent the fee payable hereunder is allocated for park space, it shall be utilized solely for the acquisition and development of land for new parks or expansion of existing parks, including expenses related thereto, and shall not be used for capital improvements, maintenance or other purposes. 13. Certain Required Improvements. Property Owner agrees to provide the following improvements, facilitles and services: (a) Hotel. Unless Property Owner is unable to secure commercially reasonable financing, Property Owner shall include in the Project a hotel of not less than two hundred and flfty (250) guest rooms. (b) Open Space. The areas designated on the Zone Diagram as "Colorado/Twentieth Plaza," "Colorado/Cloverfield Plaza" and "Olympic/Cloverfield Gateway" shall be developed and used for public viewshed purposes (the "Open Space"). The Open Space shall consist of an aggregate at least 40,000 3S,SeS square feet with each area to have at least 3,000 square feet and the area designated as the "Olym- pic/Cloverfield Gateway" on the Zone Diagram shall be land- scaped in a pedestrian-oriented manner and contain to-Rave at least 25,000 i5,eee square feet. The Olympic/Cloverfield Gate- way shall provide a view into the interior of the Real Prop- erty, a portion of which may be underneath an overhang of the hotel which is at least l5 feet above the grade level under- neath the overhang. The Olympic/Cloverfield Gateway may include a par course for public use. The Olympic/Cloverfield Gateway and the Colorado/Cloverfield Plaza shall be completed - 26 - . . no later than 90 days after issuance of a Certificate of Occu- pancy for the hotel. The COlorado/Twentieth Plaza shall be completed no later than 90 days after issuance of a Certificate of Occupancy for the last building to be built in the Twentieth Street Zone, as shown on the Zone Diagram. The Open Space shall at all times remain the property of Property Owner and shall be maintained by Property Owner at its sole cost and expense. (c) Art. Property Owner shall pledge at least $250,000 to the Santa Monica Arts Foundation (the "Foun- dation") for the acquisition of artwork to be placed in the public areas of the Project. Following execution of this Agreement, a committee (the "Art Selection Committee") will be formed consisting of representatives of Property Owner, the Santa Monlca Arts Commission (the "Commission") and the Founda- tion. Within one year followlng the date of this Agreement, the Art Selection Committee, with the approval of Property Owner, will establish a plan consisting of general guidelines for the type, size, cost and location for various artworks around the Project. The Art Selection Committee shall estab- lish procedures for competition among artists for production of the desired pleces and up to $25,000 of Property Owner's pledge may be expended for administrative curatorial and promotional costs related to the competition. For each piece, Property Owner shall be entitled to select a group of artists who will submit proposals to make the final competition and the Art Selection Committee shall make the final selection of the art- ist to produce the particular piece of artwork. l4. Subdivision Approval. Upon execution of this Agree- ment the Real Property shall be subject to the terms of this Agreement. This shall not impair the right of Property Owner Pre~erty-eyfter-shell-have-the-ri9ht to subdivlde the Real Property and the Project. The City agrees to promptly consider in good faith one or more tract maps and other appli- cations necessary or appropriate to accomplish such subdlvlsion or relating thereto. Any approval of such an appllcation may include reasonable conditions which are no more burdensome or extensive than those imposed on similar requests from other applicants. Property Owner shall be entitled to post a bond or letter of credit as security for satisfaction of any condition that may be satisfied by the payment of money. l5. ~nerqy Conservation. The Project will comply with all provisions of California Title 24 Energy Regulations, and will include as a minimum the fOllowing features: (a) Enerqy Manaqement System. All air condi- tioning and other mechanical equlpment and motors will be started and stopped from the system console and water and air - 27 - . . temperatures can be remotely reset. The foregoing, in conjunc- tlon wIth remote sensing of outslde and inside conditions, will permit system operation refinements resulting in energy optimization, and will prevent unnecessary energy consumptlon during business and non-business hours. This system wlll also be used to control the use of lighting. (b) Air Conditioninq. An economizer or "free cooling" cycle will be used which will enable the use of outdoor air rather than mechanically refrigerated air whenever outside temperature permits. variable volume air distribution systems will allow air supply quantities to be reduced as cool- ing loads decrease resulting in reduced fan power consumption at reduced loads. Air supply to periodically unoccupied areas, such as conference rooms, can be minimized. Low pressure air distribution systems will be utilized to minimize fan horse- power. Cold plenum temperature at air conditioning unlts will be reset automatically to a higher temperature (when alr condi- tions warrant) with resultant energy savings. (c) Liqhtinq. High efficiency fluorescent lamp/ballast systems will minimize energy consumption. Maximum provisions for local light switching will be provlded to permit use of lighting only when space is occupied. Photo cell con- trol of lighting in areas where natural illumination could suf- fice WIll be provided. Exterior and certain operational lighting will be controlled from the energy management system to optimize operation and minimize energy consumption. Where decor or functlon dictate the use of incandescent or tungsten halide lighting, extensive contol equipment will be prOVIded to optimize operation and increase lamp life. (d) Solar Heatinq. Solar panels, roof mounted, will prOVIde domestic water heating except in the hotel. (e) Other Enerqy Considerations. High effI- CIency roof and wall insulation as well as heat absorbing glass will be utilized to reduce cooling and heating loads. All air supply ducts will be insulated to reduce energy losses to non- conditioned spaces. Hot water piping and storage tanks will be fully insulated. Water-saving flush valves wlll be provided for toilet fixtures. Sun shading of windows will be incorpo- rated where appropriate to further reduce alr conditioning requirements. (f) Adiustments for Substitute Technoloqy. (i) Property Owner shall be entitled to substitute other energy management measures in the Project for those described above upon submission of an - 28 - . . application to the City Building and Safety Division demonstrating to the Department's reasonable satisfaction that said substitution is at least as energy effIcient as the measure it is proposed to replace. (ii) Property Owner's application shall state the specific substitution being proposed and attach such plans, specifications and supporting materials as may be reasonably required by the City Building and Safety Division to demonstrate the appropriateness of the substi- tution. l6. Accessibility. The Project, including all open space, shall be accessible to handicapped persons. 17. Effects of Aqreement on Land Use RequlatIons. (a) The rules, regulations and official policIes applicable to the development and use of the Real Property shall be those rules, regulations and official polIcIes gov- ernIng permitted uses, densIty of development, design, improve- ment and construction standards and specifications generally applicable to the development of real property in the Special Office District, as defined in LUCE, in force at the time of the execution of this Agreement, except as modified herein and except as provided in Exhibit C with respect to parking requirements. The City shall not, in subsequent actions appli- cable to the Real Property, apply new rules, regulatIons and policies which conflict with those rules, regulations and pOlIcies applicable to the Real Property as set forth in this Agreement. (b) 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 no further, are hereby repealed or modified to the extent necessary to effect the pro- Visions of this Agreement. (c) Property Owner shall be required to obtain Architectural Review Board approval for any buildIng constituting a portion of the Project prior to the issuance of any building permit therefor. Architectural Review Board review shall be limited to the scope of review allowed in the City Municipal Code and shall be subject to the development rights granted to Property Owner under this Agreement. Prop- erty Owner shall be entitled to obtain approval for an individ- ual building and its ancillary landscaping and signage without the necessity for Property Owner to submit for City or Archl- tectural Review Board review plans for the remainder of the project. - 29 - . . (d) The City and Property Owner acknowledge that the provisions of this Section l7 and of Sections 6(f) and 20 are intended to implement the intent of the parties that Property Owner have the right to develop the Project pursuant to speCl- tied and known criteria and rules and that the City receive the benefits which will be conferred as a result of such develop- ment without interdicting the right of the City to act in accordance with its powers, duties and obligations. (e) City shall not be entitled to impose any mitiga- tion measures or fees in lieu thereof for impacts caused by development of the Project other than as set forth in this Agreement except that City may impose upon the Real property a fee for traffic improvements so long as such fee is determined pursuant to an ordinance which (i) is adopted by City In accor- dance with applicable State and City laws, (ii) creates a reasonebie traffic assessment district of reasonable size but at least eo~~einiR~-8~-ieest-------aeres-8ne including wIthin its boundaries, the area within the Special Office District, as defIned in the LUCE, and the area within the Hospital Area Spe- cific Plan, as approved by the City's Planning Commission on March 9, 1987, (iii) imposes fees on a fair share basis upon all owners of commercially-zoned real property in such dis- trict, and (iv) if a distinction is made between "existing" and "new" development, the Real Property shall be considered as "existing" development. If such an ordinance is adopted and a fee would be imposed thereunder against the Real Property, such fee shall be reduced by a classification of all portions of the Project as existing development rather than new development irrespective of the extent to which the Project has actually been constructed or building permits or other entitlements for construction or use have been applied for or issued. 18. periodic Review of Compliance with Aqree~ent. (a) The City shall review this Agreement at least once during every l2-month period from the date this Agreement is executed. (b) During each periodic review by the City, Prop- erty Owner may be required to demonstrate good faith compliance with the terms of this Agreement. 19. Amendment of Aqreement. This Agreement may be amended in whole or in part only by mutual consent of the par- ties and in the manner provided for by law. 20. Enforcement. Unless amended or cancelled as provided herein, this Agreement is enforceable by any party to it not- withstanding a change in the applicable general or specific - 30 - . . plan, zoning, subdivision or building regulatIons adopted by the City WhICh alters or amends the rules, regulations or policies governing permitted uses of the Real Property, den- sity, design, improvement and construction standards and speci- fications. In any litigation concerning this Agreement neither party hereto shall assert as a claim or defense the invalidlty of this Agreement. 21. Default. (a) Property Owner shall be in default under this Agreement upon the happening of one or more of the following events or conditions: (i) If a material warranty, representation or statement made or furnished by Property Owner to the City IS false or proves to have been false in any material respect ~hen it was made; (ii) A finding and determination by the City Council of the City made following a periodic review under Section l8 above that upon the basis of substantial eVldence, Property Owner has not complied in good faith with a material requirement of this Agreement: or (iii) An express repudiation, refusal or renunci- ation of this Agreement, if the same is in writing and signed by the Property Owner. (b) The City shall be in default under this Agree- ment if it shall (i) fail to comply in good faith with the requirements hereof regarding the permitted development stan- dards and uses specified herein, or (ii) expressly repudiate, refuse or renounce this Agreement in writing. (c) Non-performance by Property Owner shall be excused when it is reasonably prevented or delayed by reason of any act, event or condition reasonably beyond the control of Property Owner for any of the following reasons: (i) War, insurrection, civil commotion, riot, flood, severe weather, earthquake, fire, casualty, acts of public enemy, acts of God, governmental restriction, liti- gation (including, without Ilmitation, litigatlon con- testing the validity, or seeking the enforcement or clari- fication of, this Agreement whether instituted by Property Owner, the City or any other person or entity), acts or failures to act of any governmental agency or entity: - 31 - . . (ii) Inability to secure necessary labor, mate- rials or tools, strikes, lockouts, other labor dlsputes, or delays of any contractor, subcontractor or suppller; or (iii) Inability to obtain and consummate neces- sary financing, or delays of any lender or third party relating thereto provided, however, that the total delay based upon this clause (iii) shall not be excused beyond an aggregate of one year. Each time Property Owner deter- mines that it intends to rely on this clause (iii), it shall give City written notice of such intention setting forth the date on which such period of reliance began and the basis for such reliance. Property Owner shall give City written notice of the end of each period of such reliance. Property Owner may give such notice to City at any time within two (2) years from the date of commence- ment of such period of reliance and shall not be deemed to have waived its right to rely upon this clause (iii) by any failure to give notice at any earlier time. 22. Procedure Upon Default. (a) Upon the occurrence of a default by Property Owner, as described in Sections 21(a)(i) or 2l(a)(ii) above, the City may give written notice to Property Owner specifying the nature of such default. If the default relates to a por- tion of the Real Property transferred by Property Owner under Sectlon 4(a) above and Property Owner has not been released from liability under Section 4(b) above, such written notlce shall be given to both Property Owner and such transferee. If such default has not been cured withIn ninety (90) days of such notice, an Event of Default by Property Owner shall be deemed to have occurred. The occurrence of a default by Property Owner under Section 21(a)(iii) above shall, at the electIon of the City Council of the City, and upon written notice to Prop- erty Owner, immediately constitute an Event of Default by Prop- erty Owner. (b) Upon the occurrence of a default by the City, as described in Section 21(b)(i) above, Property Owner may give written notice to the City specifying the nature of such default. If the City has not cured such default within ninety (90) days of such notice, an Event of Default by the City shall be deemed to have occurred. The occurrence of a default by the City under Section 21(b){ii) above shall, at the option of Property Owner, and upon written notice to the City, immedi- ately constitute an Event of Default by the City. (c) Upon an Event of Default by Property Owner, the City may terminate this Agreement upon written notice to - 32 - . . Property Owner. If portions of the Real Property are held in separate ownership at the time such Event of Default occurs and such Event of Default relates to only one of such portions, City may terminate this Agreement as to such portion and no such termination shall impair the continuing applicability of this Agreement to the remainder of the Real Property. (d) Upon an Event of Default by the City, Property Owner may terminate this Agreement upon written notice to the City. (e) All remedies at law or in equity, including spe- cific performance, which are not otherwise provided for in this Agreement or in the City's regulations governing development agreements, are available to the parties to pursue if an Event of Default occurs hereunder; provided however, that if the City or Property Owner elects to terminate this Agreement pursuant to Section 22(c) above, such termination shall consti- tute such party's sole and exclusive remedy. (f) If this Agreement is terminated on account of an Event of Default, such termination shall not affect any right or duty emanating from City entltlements or approvals with respect to the Project approved concurrently or subsequently to the approval of this Agreement, but the rights, duties and obligations of the parties hereunder shall otherWlse cease as of the date of such termination. If City is the terminating party, then any and all benefits, including money recelved by the City, shall be retained by City; but if Property Owner 1S the terminating party, then Property Owner shall be entitled to all of the benefits arising out of, or entitlements on account of, any amounts paid, given or dedicated to. or received by, City under this Agreement. Notwithstanding the foregoing pro- VIsions, no termination of this Agreement shall prevent Prop- erty Owner from completing and occupying bUlld1ngs or other improvements authorized pursuant to building permlts previously approved by City and under construction at the time of termina- tion. As used herein, ~constructionP shall mean work under a building permit, and "completing" shall mean completion for beneficial occupancy for Property Owner's use, or if a portion of the Project is intended for use by a lessee or tenant, then for such portion "completing" shall mean completion except for interior improvements, such as partitions, duct and electrical runouts, floor coverings, wall coverings, lighting, furniture, trade fixtures, finished ceilings, and other improvements typi- cally constructed by or for tenants of similar buildings. 23. ~ttorneys' Fees and Costs. If legal action by either party is brought to enforce or interpret this Agreement, or any provision hereof, the prevailing party is entitled to reasonable attorneys' fees and court costs. - 33 - . . 24. Notices. All notices required or provided for under this Agreement shall be in writing and delivered In person or sent by certified mail, postage prepaid. Notice shall be deemed to have been given upon receipt. Notices required to be given to the City shall be addressed or delivered as follows: City Attorney City of Santa Monica 1685 Main Street Santa Monica, California 90401 Notices required to be given to Property Owner shall be addressed or delivered as follows: SOPac Properties, Inc. 2 North Lake Avenue, Suite 800 Pasadena, California 9ll0l Attention: President A party may change the address by glv1ng notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address. 25. Rules of Construction and Miscellaneous Terms. (a) The singular includes the plural~ "shall" 1S mandatory, "may" is permissive. (b) If a part of this Agreement is held to be invalid, the remainder of the Agreement IS not affected. 26. Duration of Aqreement. This Agreement shall expire on January l, 2042. After expiration or full satisfaction, the parties shall execute an appropriate certificate of terminatlon which shall be recorded in the official records of Los Angeles County. 27. Recordinq. The parties hereto shall cause this Agreement and any subsequent amendment to be recorded in the Official Records of the County of Los Angeles. 28. Mortqaqees. In the event the City receives written notice from any institutional lender or pension trust (a "Mortgagee") that it has obtained a deed of trust or mort- gage on all or any portion of the Real Property (a "Mortgage"), together with a copy thereof, the City agrees as follows: (a) The City shall mall, first-class, postage pre- paid, to each Mortgagee a copy of any notice (the "First Notice") gIven to Property Owner under Section 22(a) - 34 - . . concurrently with the glvlng of such notice to Property Owner. If the default specified in the First Notlce is one described in either Section 21(a)(i) or Section 21(a)(ii), and if Prop- erty Owner fails to cure such default within the period allowed in Section 22(a), the City shall give written notice (the "Second Notice") to each Mortgagee of such failure. (b) The City shall not terminate or cancel this Agreement, irrespective of the provisions of Section 22(c), unless (i) the City has given to each Mortgagee the notice or notices required by Section 28(a), (ii) no Mortgagee has, within 30 days following the giving of the First Notice (if the default specified therein is one described in Section 2l{a)(iii)), or within 30 days following the giving of the Second Notice (if the default specified in the First Notice is one descrlbed in Section 2l(a)(i) or Section 2l(a)(ii)) (x) cured any default arising solely from the failure to pay amounts due and owing to the City hereunder, and (y) co~~enced the exerClse of remedies available under the Mortgage or obtained a deed-in-lieu thereof, and (iii) no Mortgagee, pur- chaser at a foreclosure sale held under the Mortgage; or pur- chaser from Mortgagee (a "Purchaser") has, with1n 30 days fol- lowing the obtaining of title to the Real Property, or portion thereof originally covered by the Mortgage (x) cured all defaults which are, by their nature, curable Within such period, and (y) commenced, in good faith, to cure all other defaults which, by their nature are not curable within such period, and diligently proceeded to cure all such defaults within a reasonable time. A default under Section 2l(a)(iii) shall be deemed cured by the giving of a wrltten agreement by any such Mortgagee or Purchaser to continue to be bound by the terms of this Agreement. (c) The City shall accept the performance of any such Mortgagee or Purchaser as if such performance were ren- dered by Property Owner. Each Mortgagee and each such Pur- chaser shall have the right, but not the obligation, to remedy any defaults of Property Owner within the time specifIed herein. No Mortgagee or Purchaser shall have any liability under this Agreement except for acts or events which occur while such Mortgagee or Purchaser holds title to the Real Property or portion thereof. (d) The provisions of this Section 28 are solely for the benefit of Mortgagees and Purchasers and shall not other- wise impair any rights of the City against the Property Owner. (e) Property Owner of any deed of Project or any No default or Event of Default hereunder by shall defeat, impair or render invalid the lien trust made in good faIth and for value as to the portion thereof. - 35 - . . (f) The City, by resolution of the City Council, may modify or add to the provisions of this Section 28 at the request of any institutional lender or pension trust providing financing so long as such requested modifications or additions pertain only to the rights of a Mortgagee hereunder and are not otherwise inconsistent with the terms of th1S Agreement. 29. Supersedure by Subsequent Laws. If any agency other than the City passes any law or regulation ("Law") after the date of this Agreement which prevents or precludes compll- ance with one or more 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 prov1sions of this Agreement to comply with such new Law based on the effect such modification or suspension would have on the pur- poses and intent of this Agreement. In addition, Property Owner shall have the right to challenge the new Law preventing compliance with the terms of this Agreement, and, in the event such challenge is successful, this Agreement shall remaln unmodified and in full force and effect. 30. Estoppel Certificate. Either party may, at a~y time, and from time to time, deliver written notice to the other party requesting such party to certify in writing that, to the knowledge of the certifY1ng party, (1) this Agree~ent is in full force and effect and a binding obligation of the par- ties, (ii) this Agreement has not been amended or modified either orally or in writing, or, if so amended, identifying the amendments, and (iii) the requesting party is not in default ln the performance of its obligations under this Agreement, or if in default, to describe therein the nature and amount of any such defaults. A party receiving a request hereunder shall execute and return such certificate within ten (10) days fol- lowing the receipt thereof. The Planning Director of City shall have the right to execute any certificate requested by Property Owner hereunder. City acknowledges that a certlficate hereunder may be relied upon by transferees, Mortgagees or other parties. IN WITNESS WHEREOF this Agreement has been executed by the parties as of the day and year first above written. Approved as to form: CITY OF SANTA MONICA By: City Attorney - 36 - . - 37 - . Attest: SOPAC PROPERTIES, INC. By: Its: . . LEG~L DESCRIPTIONS PARCEL 1: THAT PORTION OF LOT2, OF TRACT 9774, IN THE CITY OF 5~NTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 140 PAGES 64 THROUGH 66 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNT~ RECORDER OF SAID COUNTY, OESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF SAID LOT: THENCE SOUTH 44 DE- GREES 06 MINUTES 00 SECONDS EAST ALONG THE NORTHEASTERLY LINE OF SAID LOT, A DISTANCE OF 545.67 FEET, MORE OR LESS TO A POINT; THENCE SOUTH 9 DEGREES 54 MINUTES 09 SECONDS WEST 23.51 FEET, TO THE BEGINNING OF A CURVE, CONCAVE SOUTHERLY HAVING A RADIUS OF 11,778.48 FEET; THE~CE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 0 DEGREES 33 MINUTES 17 SECONDS, AN ARC DISTANCE OF 114.02 FEET TO THE BEGINNING OF A COMPOUND CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 905.00 FEET; THENCE SOUTHERLY ALONG THE LAST MENTIONED CURVE, AN ARC DISTA~CE OF 293.80 FEET; THENCE NORTH 44 DEGREES 45 MINUTES 25 SECO~DS ~EST 483,68 FEET TO THE NORTHWESTERLY LINE OF SAID LOT: THENCE NORTHEASTERLY ALONG SAID NORTHWESTERLY LINE 417.40 FEET TO THE POINT OF BEGINNING. EXCEPT THEREFROM f THAT PORTION OF SAID LOT 2, DESCRIBED AS FOLLO\o;S: BEGINNING AT THE NORTHERLY CORNER OF SAID LOTr THENCE SOUTH 44 DEGREES 06 MINUTES 00 SECO~DS EAST, ALONG THE NORTHEASTERLY LI~E OF SAID LOT, A DISTANCE OF 545.67 FEET; MORE OR LESS, TO A POINT DISTANT THEREO~ 20 FEET NORTrl\\ESTERLY FROM THE PRODUCED NORTHWESTERLY LINE OF OLYM?IC BOULEVARD, 110 FEED WIDE; THENCE SOUTH 9 DEGREES 54 MINUTES 09 SECOS~S ~EST 23.51 FEET TO A POINT ON SAID NORTH~ESTERLY LNE DISTANT THEREO~ 20 FEET SOUTHWESTERLY FROM THE PRODUCED SAID NORTHEASTERLY LINE, SAID NORTH~ESTERLY LINE BEING A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 11,778.48 FEET, THEl'oiCE SOUTriWESTERLY ALONG SAID NORTHi-iESTERLY LINE, THROUGH A CENTRAL ANGLE OF 0 DEGREES 06 MINUTES 33 SECOKDS, A~ ARC DISTANCE OF 22.44 FEET TO THE BEGINNING OF A TANGENT CURVE COKCAVE WESTERLY HAVING A RADIUS OF 24.70 FEET, THE~CE NORTHERLY ALONG THE LAST MENTIO~ED CURVE AN ARC DISTA~CE OF 46.50 FEET TO A POI~T OF TA~GEKCY O~ A LINE PARALLEL WITH AND DISTANT 8 FEET SOUTHWESTERLY, MEASURED AT RIGHT ANGLES, FROM SAID NORTHEASTERLY LINE; THENCE NORTH~ESTERLY ALO~G SAID PARALLEL LINE A DISTANCE OF 5l9.10 FEET TO THE BEGINNING OF A TANGENT CUR.VE CONCAVE SOUTHERLY HAVING .A RADIUS OF 10 FEET, THE~CE WESTERLY ALONG THE LAST MENTIONED CURVE AN ARC DISTANCE OF 15.71 FEET, MOR.E OR LESS, TO A POINT IN THE NORTH~ESTERLY tINE OF SAID LOT, DISTA~T THEREON 18 FEET SOUTHWESTERLY FROM SAID NORTHERLY CORNER; THENCE NORTHEASTERLY ALONG SAID NORTHWESTERLY LINE OF SAID LOT TO THE POINT OF BEGINNING. EXHIBIT A Pa.ge 1 of 4 . . . PARCEL 2: BEGINNING AT THE MOST WESTERLY CORNER OF LOT 2 OF TRACT 9774, AS PER MAP RECORDED IN BOOK 140 PAGES 64 TO 66 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, THENCE NORTH 45 DEGREES 14 MINUTES 35 SECONDS EAST, ALONG THE NORTHWESTERLY LINE OF SAID LOT 2, BEING ALSO THE SOUTHEASTERLY LINE OF COLORADO AVENUE (SO FEET WIDE), A DISTANCE OF 600.00 FEET TO A POINT, THENCE SOUTH 44 DEGREES 45 MINUTES 2S SECONDS EAST 483.68 FEET TO A POINT IN THE NORTHWESTERLY LINE OF THAT CERTAIN TRIANGULARLY SHAPED PARCEL OF LAND DESCRIBED AS PARCEL 3 IN THE FINAL ORDER OF CONDEMNATION NO. 496651, FILED JULY 23, 1945 AN~ ENTERED JULY 24, 1945 IN JUDGEMENT BOOK 1553 PAGE 27, SUPERIOR COURT, RECORDS OF STATE OF CALIFORNIAr LAST MENTIONED POINT BEING ON A CURVE, CONCAVE SOUTriEASTERLY HAVING A RADIUS OF 905.00 FEET r THENCE SOUTH~ESTERLY ALONG SAID NORTHWESTERLY LINE OF PARCEL 3 (CHORD OF SAID CURVE BE~RS SOUTH 41 DEGREES 20 MINUTES 05 SECONDS WEST 9l.94 FEET) AN ARC DISTANCE OF 91.98 FEET TO A POINT IN THE NORTH~ESTERLY LINE OF THE SOUTHERN PACIFIC RAILROAD COMPANY'S RIGHT OF WAY (100 FEET WIDE), AS RECORDED IN BOOK 40 PAGE 282 OF DEEDS, IN THE OFFICE OF THE COU~T'i RECORDER OF SAID COUNTY, THENCE SOUTHWESTERLY ALONG SAID NORTHKESTERLY LINE OF THE RIGHT OF WAY (100 FEET WIDE) BEING ON A CURVE COr-;CAVE SOUTHEASTERLY, HAVING A RADIUS OF 11,703.40 FEET (CHORD OF SAI~ CURVE BEARS SOUTH 59 DEGREES 29 MINUTES 21 SECONDS KEST 524.40 FEET), A~ ARC DISTANCE OF 524.~5 FEET, MORE OR LESS, TO THE SO~THERLY COR~ER OF SAID LOT 2: THENCE NORTH 44 DEGREES 45 MI~UTES 25 SECONDS WEST, ALO~G SOUTHWESTERLY LINE OF SAID LOT 2, A DISTANCE OF 360.90 FEET TO TEE POINT OF BEGIN~ING. EXHIBIT A 2 of 4 . . PARCEL 3: THE NORTHWESTERLY 115 FEET OF LOT 1 IN BLOCK wAw OF THE TILDEN TRACT, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFOR~IA AS PER MAP RECORDED IN BOOK 2, PAGE 93 OF ~~PS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THE NORTHEASTERLY S2 FEET THEREOF. EXCEPT THEREFROM: THE SOUTHWESTERLY EIGHT (8) FEET OF THE NORTHWESTERLY 175 FEET OF LOT 1, BLOCK A, OF TILDEN TRACT, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2, PAGE 93 OF MAPS IN THE OFFICE OF THE RECORDER OF SAID COUNTY AND THAT PORTION OF SAID LOT 1 BEGINNING AT A POINT IN THE NORTH~ESTERLY LINE OF SAID LOT BEING DISTANT 13 FEET NORTHEASTERLY, ALONG SAID NORTH~ESTERLY LINE, FROM THE MOST WESTERLY CORNER OF SAID LOT: THENCE SOUTH~ESTERLY ~LO~G SAID NORTHWESTERLY LINE 5 FEET: THENCE SOUTHEASTERLY PARALLEL WITH 7HE SOUTHWESTERLY LINE OF SAID LOT A DISTANCE OF 5 FEET; THENCE IN A DIRECT LINE TO THE POINT OF BEGII'NING, CONTAINING 1400.00 SQUARE FEET. AS CONDEM~ED TO THE CITY OF SANTA MO~ICA IN JUDGEMENT FILED ~AY 19, 1963 IN CASE NO. ~~C-6553, SUPERIOR COURT. PARCEL 4: LOT 1 IN BLOCK A OF THE TILDEN TRACT, IN THE CITY OF SA.~'TA H:)~ICA, COUNTY OF LOS ANGELES, STATE OF CALIFOR~IA, AS PER MAP RECORDED I~ BOJK 2 PAGE 93 OF MAPS, IN THE OFFICE OF TrlE COUNTY RECORDER OF SAID COG~TY. EXCEPT THE NORTHWEST 175 FEET THEREOF. ALSO EXCEPT THE SOUTHWESTERLY 8 FEET THEREOF. AN EASEMENT, WITH RIGHT OF ENTRY, FOR THE PURPOSE OF LAYING A~D MAINTAINING PUBLIC UTILITY SERVICES, OVER THE NORTrlEASTERLY 8 FEET OF THE NORTHWESTERLY l75 FEET OF LOT 1 IN BLOCK A OF THE TILDE~ TRA:T, IN THE CITY OF SANTA MONICA, IN THE COUNTY OF LOS ASGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2 PAGE 93 OF ~~PS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 5: THE NORTHEASTERLY 52 FEET OF THE NORTHWESTERLY 175 FEET OF LOT 1 IN BLOCK -An OF THE TILDEN TRACT, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2 PAGE 93 OF HAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXHIBIT A 3 of 4 . . PARCEL 6: ~HE LESSEEfS INTEREST ONLY IN LEASE OF THE REAL PROPERTY BELOW, DATED MARCH 12, 1979 BETWEEN SOUTHERN PACIFIC TRANSPORTATION COMPA~Y AS LESSOR AND PARKER MANUFACTURING COMPANY AS LESSEE (INSTRUMENT tW. 86-184890), HELD BY SOPAC PROPERTIES, INC., (FORMERLY KNOWN AS ANAHEIM HILLS DEVELOPMENT CORP.) FOLLOWING FEBRUARY 11, 1986 ASSIGNME~T BY PARKER MANUFACTURING COMPANY TO ANAHEIM HILLS DEVELOPMENT CORP. (INSTRUMENT NO. 86-184890). THAT PORTION OF THE RIGHT-OF-WAY, 100.00 FEET WIDE OF THE SOUTHERN PACIFIC RAILROAD COMPANY IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS RECORDED IN BOOK 40 PAGE 282 OF DEEDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSEC~ION OF THE CURVED NORTHWESTERLY LINE OF SAID RIGHT-OF-WAY, 100.00 FEET WIDE WITH THE CURVED NORTH'''';ESTERLY LIKE OF THE LAND DESCRIBED IN PARCEL 3 OF THE FINAL ORDER OF CONDE~SATIO~ NO. 496651, FILED JULY 23, 1945 AND ENTERED JULY 24, 1945, IN JUDGE~EST BOOK 1553 PAGE 21, SUPERIOR COURT, RECORDS OF SAID STATE; SAID LAST MENTIONED CURVE BEING CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 905.00 FEET; A RADIAL LINE OF SAID CURVE TO SAID INTERSECTIO:-; BEARS NORTH 5l DEGREES 34 MINUTES 36 SECONDS WEST THENCE SOUTHWESTERLY AKD CONTINUING ALONG SAID CURVE 94.25 FEET THROUGH A CENTRAL ANGLE OF 5 DEGREES 58 MINUTES 02 SECONDS TO A POINT IN A CURVED LINE BEING CONCENTRIC WITH AND DISTANT SOUTHEASTERLY 40.00 FEET MEASURED RA)IALLY FROM, SAID NORTH~ESTERLY LINE OF SAID RIGHT-OF-WAY, lOO.OO FEET KIDE; SAID LAST DESCRIBED CURVE BEING CONCAVE SOt1THEa.STERLY AND HAVI~G A RADIUS OF 11,663.40 FEET, A RADIAL LINE OF SAID CURVE TO SAID POIKT BEARS NORTH 29 DEGREES 38 MINUTES 43 SECONDS WEST; THENCE SOUTH~ESTERLY 636.65 FEET ALONG SAID CONCENTRIC CURVE THROUGH A CENTRAL ANGLE OF 3 DEGREES 01 MINUTES 39 SECONDS, TO THE NORTHEASTERLY LINE OF T~ESTIETH STREET, 70.00 FEET WIDE AS SHOWN ON THE MAP OF TRACT NO. 9774 IN SAID CITY AND RECORDED IN BOOK 140 PAGES 64 AND 65 OF ~~PS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALO~G SAID LAST DESCRIBED NORTHEASTERLY LINE NORTH 44 DEGREES 45 MI~UTES 25 SECONDS ~EST, 40.88 FEET TO ITS INTERSECTION WITH SAID CURVED ~ORTH~ESTERLY LINE OF SAI~ RIGHT-OF-WAY, lOO.OO FEET WIDE; SAID LAST MENTIONED CURVE BEING CO~CAVE SOUTHEASTERLY AND HAVING A RADIUS OF 11,703.40 FEET, A RADIAL LIKE OF SAID CURVE TO SAID INTERSECTION BEARS NORTH 32 DEGREES 48 MI~UTES 53 SECONDS ~LST, THENCE NORTHEASTERLY 732.79 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 3 DEGREES 35 MINUTES 15 SECONDS TO THE POI~T OF BEGINNING. EXHIBIT A 4 of 4 . .......------~ .~. ----- - ---.:..... - ~.- --~. 9 IU ii: a: IU > o ....I Co) g c a:C ON C:c C)~ : l- I!! ~ ~ ... ... o Cl C l;~ Cl -' III i ~ ~)o Uc I E~ ... 21U 1= )0 I- :: ~~ U ) .' / --r -------------,~A~~~...::'''1I3-^O'?-rt'-----T ----~/7~- ! ~. ' / )~\' 1/ / :1 . I I . IU :! ~ . 1 t; Z...a;;. ~. ,I.' "' O~:o; .....i~;- T.I: 1 , .,J ~". I!!g~2i ! i i:iH ! i ! I! I; II r---i= i , , 1 i=~m , z~g , ~UJ _ .. i tI(~~ ! . :rLUJ: I t(WX . I a: w / 'W" i ,(.)<~ <....... I I -IZa: . 1 D.W" I , O~~ I I OCl..O , <0 I I Q:...J~ ; I g~o I ; OWN , 00 I J I I I f f f ! i " . t J f =;. 'i :i~ ~ . ~ . o:c ;'11:,. ","d ~: i I 1:\ /i I, ! . ~ If :S '; } lil ,f ,} 21" I\~ \/ , ' y 'I'A f /' "\.' i / \/ " I f II j' ;' , I J : /'1 I -=---I fi / I ,I / Il/ I W ,/ .OQ~ , '" I I I ~ "1 .a--7' , I --i.-------liJlITI NnIINiM,C'ttn/-- I I I:: i I I i ii! .f f I>6f , I I I I ,~-- '.c-t,ot v i I I ~! ..Ij !. g~~ > "j c, , o' , D c. II: 0, 0: 1,)) I ! z IU . > . C . : o : =. Cl i ~ ; : o IU~ e as! ;; U....._ . Cl a: c > III 5 o CD Co) it :Ew )-Z .,JO ON .. o . , tJ' % . .. .. : ~ . e , I ... , I I r , ... III III a: ... .. CD I ; ~ . :: Iii · u ~ I.: ffi~~g! ~O~;D ............. .tOt 'C'" .. = . i . .. i .. . ~ iiiii~~~ :a ~ E~E~~~i~ i ..11I..... C ... Z ~ :a .. o ... .. > .. o o ... ... <) z ... II: ... .. .. II' . . Exhibit C COLORADO PLACE PHASE III MIXED USE PARKING DEMAND A. parkinq Requirement Calculations. The actual number of parking spaces required for the actual mix of uses on the Real Property shall be the largest of (l) parking demand at lO:OO A.M. weekdays, (2) parking demand at 1:00 P.M. weekdays, or (3) parking demand at 7:00 P.M. week- days, with those demands be1ng computed in accordance w1th the following formulae: Parking demand at lO:OO A.M. weekdays = OB/300 + 0.6HR + HD/300 + HM/l43 + RC/l200 + O.32C + HC/50a + R/250 + FF/1875 + MO/278 Parking demand at 1:00 P.M. weekdays = OB/326 + 0.5HR + HD/150 + HM/l25 + RC/600 + 0.6e + HC/267 + R/lS7 + FF/375 + MO/278 Parking demand at 7:00 P.M. weekdays = OB/3000 + l.OHR + HD/150 + HM/IOO + RC/625 + 2.0C + He/BO + R/75 + FF/375 Where: OB = Area of Office Buildings, Banks and Savings & Loans 1n square feet HR = Number of Hotel Rooms HD = Area of Hotel Dinlng Rooms, Restaurants, and Kitchens in square feet HM = Area of Hotel Meeting Rooms in square feet Re = Area of Retail Commercial Use in square feet C = Number of Racquet Ball Courts HC = Area of Health Club in square feet R = Area of Restaurants in square feet (other than Fast Food Outlets) FF =Area of Fast Food Outlets in square feet MO = Area of Medical Offices in square feet However, if the parking requirements for general office and medical office uses imposed by the City pursuant to the proposed Zoning Code currently under review by the City Council require more parking than 1 space per 300 square feet . . for general office and 1 space per 250 square feet for medical office, the Zoning Code requirements shall be utilized so lo~g as they do not exceed 1 space per 250 square feet for general office and 1 space per 200 square feet for medical office. Once the Zoning Code currently under consideration is adopted by the City, the basic requirements for parking for general office use and medical office use shall be established for pur- poses of this Agreement and shall not be affected by later changes in the Zoning Code to such parking requirements. If the proposed Zoning Code is not adopted by the time Property Owner applies for a building permit to construct the under- ground parking structure, the parking requirements for general office use and medical office use shall be 1 space per 300 square feet and 1 space per 250 square feet, respectively. B. Backqround. The formulae set forth above were developed utiliZIng the basic requirements set forth in the following tables and adjusting those reqUIrements for the mixed-use nature of the ProJect. - 2 - . . . Mixed Use Formulae: 10 A.M. PEAK PERIOD (OFFICE PEAK) % of Basic % Arriving Peak Resulting Use Requirement by Auto Demand Ratio Office, Banks and Savings & Loans 1 space/300 FASF 100% lOO% 1/300 Hotel Rooms 1 space/room 100% 60% 0.6/room Hotel Dining 1 space/75 FASF 50% 50% l/300 Hotel Meeting Rooms 1 space/100 FASF 100% 70% l/143 Retail I space/300 FASF 50% 50% 1/1200 Health Club 1 space/aO FASF 80% 20% 1/500 2/court 80% 20% O.32/court Restaurants I space/75 FASF 60% 50% l/250 Fast Food Outlets 1 space/75 FASF 20% 20% 1/1875 Medical Office I space/250 FASF 90% lOO% 1/278 - 3 - ~ . . 1 P.M. PEAK PERIOD (RESTAURANT, RETAIL PEAK) % of Basic % Arriving Peak Resulting Use Requirement by Auto Demand Ratio Office, Banks and Savings & Loans 1 space/300 FASF 100% 92% 1/326 Hotel Rooms 1 space/room 100% 50% 0.5/room Hotel Dining 1 space/75 FASF 50% lOO% 1/l50 Hotel Meeting Rooms 1 space/1OO FASF 100% 80% l/125 Retail 1 space/300 FASF 50% 100% 1/600 Health Club 1 space/BO FASF 60% 50% 1/267 2/court 60% 50% 0.6/court Restaurants I space/75 FASF 40% lOOt 1/187 Fast Food Outlets I space/75 FASF 20% 100% 1/375 Medical Office 1 space/250 FASF 90% 100% l/278 - 4 - 'C . . 7 P.M. PEAK PERIOD (RESTAURANT, HOTEL, HEALTH CLUB PEA-1\. ) % of Basic % Arriving Peak Resulting Use Requirement by Auto Demand Ratio Office, Banks and Savings & Loans 1 space/300 FASF lOO% 10% l/3000 Hotel Rooms 1 space/room 100% 100% l/room Hotel Dining 1 space/75 FASF 50% 100% 1/l50 Hotel Meeting Rooms 1 space/lOO FASF lOO% lOO% 1/100 Retail 1 space/300 FASF 80% 60% 1/625 Health Club 1 space/BO FASF IOO% 100% l/8D 2/court lOO% 100% 2/court Restaurants 1 space/75 FASF lOO% 100% 1/75 Fast Food Outlets 1 space/75 FASF 20% 100% 1/375 Medical Office 1 space/250 FASF 0% 0% 0 - 5 - . C. Example. . . One lowing table. is based upon application of the formulae is shown in the fol- The breakdown of uses in the following example the square footages reflected. PARKING DE?-'..AND USE Office, Banks and Savings & Loans Hotel Rooms Hotel Dining Hotel Meeting Rooms Retail Health Club - Courts Health Club Restaurants Fast Food Outlets Medical Office AREA lO A.M. 1 P.M. 1,965 138 133 120 l7 2 142 80 27 l26 2,822 7 P.M. 214 275 133 150 16 B 710 200 27 o 1,733 The required number of spaces under this example would, there- fore, be 2,822. (Of course, other variations of square footage for the multiple uses would produce different results.) 058:AGMT022EXC 640,500 FASF 275 rooms 20,000 FASF lS,OOO FASF lO,OOO FASF 2,135 l65 67 105 9 4 courts 56,800 FASF l5,000 FASF lO,OOO FASF 35,000 FASF 1 ll4 60 6 126 2,788 - 6 - ~ . . EXHIBIT D REQUIREMENTS OF THE GENERAL SERVICES DEPARTMENT The following improvements are derived from the n€OiO~8do-p}6ee-Pftase-iii-~renspertation-imp8et-An8iysisn_p~e- ~ered-~y-BKS-Asseeiates-for-Miefiaei-B~enamen-Asseeietes-as-pa~t of-the Environmental Impact Report for Colorado Place Phase III prepared by Michael Brandman Associates and additional improve- ments requested by the City of Santa Monica General Services Department: l. Re-stripe the northbound approach on 20th Street at Wilshire Boulevard to provide two through lanes instead of one right-turn only lane and one through lane. Upgrade the traffic signal controller at this intersection to a solid state controller. 2. Widen Colorado Avenue by 10 feet on the south- erly side to create two through traffic lanes eastbound and westbound on Colorado Avenue between 20th Street and C10- verfield Boulevard and one continuous left-turn lane in the middle of the street. Construction shall include (a) new curb and gutter, (b) all new 8-foot wide sidewalks, (c) eight inches of concrete pavement in the street-widened portion, (d) 20-foot radius curb returns at the 20th and Cloverfield intersection, (e) relocation of existing traffic signals and utilities, (f) handicapped ramps, (g) corner cut-off easements for a four-foot clearance at the rear of each ramp, and (h) 1f left turns are prohibited by westbound traffic on Colorado into the east- ernmost Access Point on Colorado, a median In the continuous left-turn lane sufficiently long in City's judgment to discour- age such turns. If such median is required, Property Owner may, at its own expense and with the prior approval of the City's Department of General Services, place one or more d1rec- tional signs on the median to assist traffic. Such Sign or signs shall be subject to approval by the City'S Department of General Services as to the number, location and design and shall comply with all applicable City ordinances. Construction will also include reconstruction of a portion of the eastbound fast lane with II inches of A.C. pavement and A.C. overlay of the street by heat-remix method to the center line, reconstruc- tion of existing storm drain laterals and re-striping of the street. Property Owner shall grant any easement WhlCh may be necessary relating to the widened street and the sidewalk. 3. Establish an additional right-turn lane at the eastbound approach to the Colorado Avenue and Cloverfield intersection. This lane shall be at least 200 feet in length measured from the point where the 20 foot radius curb return ~ ~ . . begins on Colorado to the point where such right-turn lane begins and will be added to the lane referred to in Item No.2. Property Owner shall grant any necessary easement for this additional lane and the related a-foot wide sidewalk. 4. Create three full lanes for southbound traffic on Cloverfield Boulevard between Colorado Avenue and Olympic Boulevard by widening Cloverfield Boulevard 9-l/2 feet on the westerly side. Construction is to include (a) all new a-foot wide sidewalks, curb and gutter, (b) an a-inch thick P.C.C. widened section and slurry seal of Cloverfield Boulevard for the remaining width, (c) construction of a 20-foot radius at Cloverfield and Olympic with new handicapped ramp, and (d) relocating existing traffic signals and utilities at the inter- sections. If Property Owner desires to place a drop-off zone for the hotel on Cloverfield, Property Owner shall (i) widen Cloverfield to the extent necessary to provide an additlonal 2 feet for one-half of the width of a median to be placed in the center of Cloverfield for the length necessary to restrain, among other things, left-turns into the drop-off zone, (ii) pay one-half of the cost of constructing such median, and (iii) construct such drop-off zone utilizing a-inch thick F.C.C. Any such drop-off zone shall taper to and from a wldth of l2 feet. If such median is required, Property Owner may, at its own expense and with the prior approval of the City's Department of General Services, place one or more directional signs on the median to assist traffic. Such s1gn or signs shall be subject to approval by the City's Department of General Services as to the number, location and design and shall comply with all applicable City ordinonces. Property Owner shall grant any necessary easements relating to the widened street, any drop- off zone, and the sidewalk. If requested by the City at any time prior to ten (lO) years after the execution of this Agree- ment, Property Owner shall construct a bus shelter on the Real Property at the intersection of Olympic Boulevard and Clo- verfield Boulevard, and another bus shelter at a site to be designated by Property Owner, subject to the approval of the City's Department of General Services, on 20th Street between Olympic Boulevard and Colorado Avenue. Bus shelter design shall be subject to the approval of the Architectural Review Board. 5. Participate in modernizing the trafflc signal standards, conduits, signal heads and controllers for the intersections of C10verfield with Colorado and Olympic. Prop- erty Owner shall be responsible for only one half of the cost. 6. On Olympic Boulevard, construct a conventional curb and an eighteen-inch wide P.C.C. gutter from the intersec- tion of Cloverfield and Olympic to a point 210 feet westerly - 2 - 4 c . . from such intersection and a conventional curb and 3D-inch wide P.C.C. gutter from a point 210 feet westerly of the intersec- tion of Olympic and Cloverfield to a point in the easterly boundary of the railroad right-of-way described in Parcel 6 where it intersects Olympic. Provide a sidewalk easement at the bus stop area to allow for a lO-foot parkway and sidewalk area from the curb face. Construct a new sidewalk at the rail- road on Olympic crossing over Parcel 6. 7. Widen 20th Street as required to create a right-hand turn lane onto eastbound Colorado Avenue. Such lane shall be at least 200 feet in length measured from the point where it begins to the point where the curb return begins at the intersection of 20th Street and Colorado Avenue. Widened street to be in 8 inches of P.C. concrete. All eXisting side- walks on 20th Street from Colorado to the southern boundary of Parcel 6 to be replaced with new 8-foot sidewalks and the street re-surfaced to the center line with one and one-half inch A.C. Property Owner shall grant any necessary easement relating to the widened street and new sidewalk. Participate in modernizing the traffic signal standards, conduit, signal heads and controller for the intersection of 20th Street and Colorado Avenue. Property Owner shall be responsible for one-quarter of the cost for such modernizations. 8. Provide new street sections (a-inch P.C.C.> for right-turn pockets (150 feet in length) at each major driveway to the Project with all necessary sidewalk easements. 9. Furnish a hydrology study for the site and adja- cent streets in accordance with Department guidelines. Any work to be performed as a result of this study will be limited to that directly related to impacts of the Project on drainage in the area. lO. Civil engineering plans shall be prepared to City standards for all off-site improvements and submitted to the Office of the City Engineer for reVIew and approval. 11. Design and construct high pressure sodium street lighting on the south side of Colorado Avenue from 20th to Clo- verfield, on the west side of Cloverfield from Colorado to Olympic, and on the north side of Olympic from Cloverfield to the east side of the railroad right-of-way described in parcel 6, and on the easterly side of 20th Street from the northerly boundary of Parcel 6 to the intersection of 20th Street and Colorado. Lighting design to be consistent with Colorado Place Phase I and Phase II under Agreement for Street Lighting Installation and Maintenance between Colorado Place Limlted and the City of Santa Monica dated May 3l, 1983. - 3 - . ~ - . . 12. Furnish and install street trees on (a) 20th Street from the northerly boundary of the railroad right-of-way described in Parcel 6 to Colorado, (b) Colorado from 20th Street to Cloverfield, (c) Cloverfield from Colorado to Olym- pic, and (d) Olympic from Cloverfield to the easterly boundary of the railroad right-of-way described in Parcel 6. Type, spacing and planting specifications will be part of the project landscaping plans to be approved by the Architectural Review Board and subject to the satisfaction of the Director of Recre- ation and Parks. 13. Shoring plans, where shoring may be required, will be submitted to the engineering division for reView and approval. The fee for tiebacks in the public right-of-way will be $150 per tieback or soldier beam encroaching in the street right-of-way. 14. In lieu of the water connection fees for both domestic and fire protection services, Property Owner will install a 14 inch water line from 19th Street to Cloverf1eld on Olympic and a l2 inch water llne on 20th Street between Colorado and Olympic. These water lines will provide the required fire service for the Project. Installation will include fire hydrants as required by the Fire Department, a 12 x 12 tee on Colorado at 20th Street and a l4 x l2 cross on Clo- verfield at Olympic with a tie-in of the existing lines on Olympic to the new lines. Work to be done in accordance with Santa Manica standards. Because the new water lines to be installed pursuant to this paragraph will benefit properties other than the Real Property, the City w1ll reimburse Property Owner for a pro rata portion of the cost of such installation, which reimbursement shall not be requlred untll City collects appropriate fees from subsequent developments on real property benefitting from such installation. 15. Install a sewage regulating tank, if reasonably deemed necessary by the General Services Department based upon available sewage capacity and other improvements, of sufficient size for the Project. The General Services Department and Property Owner may agree upon substitute improvements for any of the forego1ng which are designed to improve traffic, utility or drainage con- ditions related to the Project so long as the total cost of such substitute improvements does not exceed the total esti- mated cost of the deleted requirements, computed on the date upon which a contract is entered into for the substitute improvements. - 4 - ltI' .... . . STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On this day of , in the year 1987, before me, the undersigned Notary Public in and for said County and State, personally appeared and respec- tively of the City of Santa Monica and known to me to be the persons who executed the within instrument on behalf of said political subdivision, and acknowledged to me that such politl- cal subdivision executed the same. Notary Public in and for said County and State STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On this day of , in the year 1987, before me, the undersigned Notary Public in and for said County and State, personally appeared , known to me, or proved to me on the basis of satisfactory evidence, to be the of SoPac Properties, Inc., the corporation that exe- cuted the within instrument, and acknowledged to me that such corporation executed the same pursuant to lts by-laws or a res- olution of its Board of Directors. Notary Public in and for sald County and State OSB:AGMT022EXD