Loading...
O2430City Council Meeting: July 9, 2013 Santa Monica, California ORDINANCE NUMBER 2.`13' (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROVING THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA MONICA, A MUNICIPAL CORPORATION, AND THE CROSSROADS SCHOOL FOR ARTS AND SCIENCES, A CALIFORNIA NONPROFIT CORPORATION WHEREAS, The Crossroads School for Arts & Sciences ( "School') proposes to construct a new three -story, 41 -foot high, twelve - classroom science learning center at 1731 20th Street, located in the Industrial Conservation land use element designation, that will contain approximately 23,856 square feet of classroom and support space; and WHEREAS, the approval of the proposed three -story, 12- classroom, building is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Section 15314, which exempts minor additions to existing schools within existing school grounds where the addition does not increase school capacity by more than 25% or ten classrooms, whichever is less; and WHEREAS, the development agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan, as described below, and as detailed in the accompanying City Council staff report prepared for this proposed project and the exhibits thereto, including but not limited to: 1 (a) LUCE Policy D27.4, the proposed project continues and expands an existing school. (b) LUCE Policy D27.10, the project utilizes a variety of heights, forms, and materials to create visual interest and avoids uniformly flat roofs or cornices in order to create an interesting skyline. (c) LUCE Circulation Policy T19.2, which calls for the imposition of appropriate TDM requirements for new development, the project requires implementation of a Transportation Demand Management (TDM) plan in order to reduce vehicle trips in the area and reduce associated parking demand. WHEREAS, the project is consistent with LUCE land use policies because it incorporates community benefits including, but not limited to, a bike path easement reserved for the future development of the Michigan Avenue Greenway bike path in furtherance of the City's Bike Action Plan; photovoltaic panels and a photovoltaic panel- ready roof; and, a Pico Neighborhood Outreach Summer Program. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The Development Agreement attached hereto as Exhibit 1 and incorporated herein by reference by and between the City of Santa Monica, a municipal corporation, and The Crossroads School for Arts & Sciences, a California nonprofit corporation, is hereby approved. 2 SECTION 2. Each and every term and condition of the Development Agreement approved in Section 1 of this Ordinance shall be and is made a part of the Santa Monica Municipal Code and any appendices thereto. The City Council of the City of Santa Monica finds that public necessity, public convenience, and general welfare require that any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Development Agreement, to the extent of such inconsistencies and no further, be repealed or modified to that extent necessary to make fully effective the provisions of this Development Agreement. SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the 3 official newspaper within 15 days after its adoption. This Ordinance shall be effective 30 days from its adoption. APPROVED AS TO FORM: Ell Recording Requested By: City of Santa Monica When Recorded Mail To: City of Santa Monica Santa Monica City Attorney's Office 1685 Main Street, Third Floor Santa Monica, CA 90401 Attention: Senior Land Use Attorney Space Above Line For Recorder's Use No Recording Fee Required California Government Code Section 27383 DEVELOPMENT AGREEMENT BETWEEN CITY OF SANTA MONICA AND THE CROSSROADS SCHOOL FOR ARTS AND SCIENCES ,2013 22000/Docs /Crossroads DA 06.14.13 TABLE OF CONTENTS Recitals............................................................................................................ ............................... l Article1 Definitions ................................................................................ ..............................3 Article 2 Description of the Project ....................................................... ............................... 5 2.1 General Description ................................................................. ............................... 5 2.2 Principal Components of the Project ...................................... ............................... 5 2.3 No Obligation to Develop ....................................................... ............................... 5 2.4 Vested Rights ........................................................................... ..............................6 2.5 Permitted Uses ........................................................................ ............................... 8 2.6 Significant Project Features and LUCE Community Benefits .............................. 8 2.7 Parking .................................................................................... .............................15 2.8 Design ..................................................................................... .............................15 Article3 Construction ............................................................................ .............................16 3.1 Construction Mitigation Plan .................................................. .............................16 3.2 Construction Hours ...........................................:..................... .............................16 3.3 Outside Building Permit Issuance Date .................................. .............................17 3.4 Construction Period ................................................................ .............................17 3.5 Damage or Destruction ........................................................... .............................17 3.6 Possession of Property ............................................................ .............................17 3.7 Completed and Final Landmarks Commission Review of Property ................... 18 Article 4 Project Fees, Exactions, and Conditions ................................. .............................18 4.1 Fees, Exactions, and Conditions ............................................. .............................18 4.2 Conditions on Modifications ................................................... .............................18 4.3 Implementation of Conditions of Approval ............................ .............................18 22000/Docs /Crossroads DA 06.14.13 Article 5 Effect of Agreement on City Laws and Regulations .............. .............................18 5.1 Development Standards for the Property; Existing Regulations ......................... 18 5.2 Permitted Subsequent Code Changes ..................................... .............................19 5.3 Common Set of Existing Regulations ................................... ............................... 21 5.4 Conflicting Enactments ........................................................... .............................21 5.5 Timing of Development ........................................................ ............................... 21 Article 6 Architectural Review Board ................................................... .............................22 6.1 Architectural Review Board Approval ................................. ............................... 22 6.2 Concurrent Processing .......................................................... ............................... 22 Article 7 City Technical Permits ............................................................ .............................22 7.1 Definitions ............................................................................... .............................22 7.2 Diligent Action by City ......................................................... ............................... 22 7.3 Conditions for Diligent Action by the City ........................... ............................... 23 7.4 Duration of Technical City Permits ...................................... ............................... 24 7.5 [Reserved] ............................................................................. ............................... 24 Article 8 Amendment and Modification .............................................. ............................... 24 8.1 Amendment and Modification of Development Agreement ............................... 24 Article9 Term ........................................................................................ .............................25 9.1 Effective Date ....................................................................... ............................... 25 9.2 Term ........................................................................................ .............................25 Article 10 Periodic Review of Compliance ........................................... ............................... 25 10.1 City Review .......................................................................... ............................... 25 10.2 Evidence of Good Faith Compliance .................................... ............................... 25 10.3 Information to be Provided to School ................................... ............................... 26 10.4 Notice of Breach; Cure Rights .............................................. ............................... 26 22000/Docs /Crossroads DA 06.14.13 10.5 Failure of Periodic Review ................................................... ............................... 26 10.6 Termination of Development Agreement ............................. ............................... 26 10.7 City Cost Recovery ................................................................. .............................26 ArticleI1 Default ..................................................................................... .............................26 11.1 Notice and Cure .................................................................... ............................... 26 11.2 Remedies for Monetary Default ............................................ ............................... 27 11.3 Remedies for Non - Monetary Default ................................... ............................... 27 11.4 Modification or Termination of Agreement by City ............. ............................... 29 11.5 Cessation of Rights and Obligations ....................................... .............................30 11.6 Completion of Improvements ............................................... ............................... 30 Article12 Mortgagees .............................................................................. .............................31 12.1 Encumbrances on the Property ............................................. ............................... 31 Article 13 Transfers and Assignments ..................................................... .............................33 13.1 Transfers and Assignments ..................................................... .............................33 13.2 Release Upon Transfer .......................................................... ............................... 33 Article 14 Indemnity to City .................................................................... .............................33 14.1 Indemnity .............................................................................. ............................... 33 14.2 City's Right to Defense ......................................................... ............................... 34 Article 15 General Provisions .................................................................. .............................34 15.1 Notices .................................................................................. ............................... 34 15.2 Entire Agreement; Conflicts ................................................. ............................... 35 15.3 Binding Effect ....................................................................... ............................... 35 15.4 Agreement Not for Benefit of Third Parties ......................... ............................... 35 15.5 No Partnership or Joint Venture ........................................... ............................... 36 15.6 Estoppel Certificates ............................................................... .............................36 22000/Docs /Crossroads DA 06.14.13 15.7 Time ........................................................................................ .............................36 15.8 Excusable Delays .................................................................... .............................36 15.9 Governing Law ..................................................................... ............................... 37 15.10 Cooperation in Event of Legal Challenge to Agreement ...... ............................... 37 15.11 Attorneys' Fees ....................................................................... .............................38 15.12 Recordation ............................................................................. .............................38 15.13 No Waiver ............................................................................... .............................38 15.14 Construction of this Agreement ............................................ ............................... 38 15.15 Other Governmental Approvals .............................................. .............................38 15.16 Venue ..................................................................................... .............................39 15.17 Exhibits ................................................................................. ............................... 40 15.18 Counterpart Signatures .......................................................... ............................... 40 15.19 Certificate of Performance ...................................................... .............................40 15.20 Interests of School ................................................................... .............................40 15.21 Operating Memoranda ............................................................ .............................40 15.22 Acknowledgments, Agreements and Assurance on the Part of School ...............41 15.23 Not a Public Dedication ........................................................ ............................... 41 15.24 Other Agreements ................................................................. ............................... 42 15.24 Severability and Termination .................................................. .............................42 Exhibit "A" Legal Description of the Property Exhibit `B" Project Plans Exhibit "C" Permitted Fees and Exactions Exhibit "D" Conditions of Approval Exhibit "E" SMMC Article 9 (Planning and Zoning) Exhibit "F" Bike Path Easement Area Exhibit "G" [Reserved] Exhibit "H" Construction Mitigation Plan Exhibit "I" Assignment and Assumption Agreement Exhibit "J" Interim Modules Plan 22000/Docs /Crossroads DA 06.14.13 DEVELOPMENT AGREEMENT This Development Agreement ( "Agreement "), dated 2013 ( "Effective Date "), is entered into by and between THE CROSSROADS SCHOOL FOR ARTS AND SCIENCES, a California nonprofit corporation ( "School "), and the CITY OF SANTA MONICA, a municipal corporation organized and existing pursuant to the laws of the State of California and the Charter of the City of Santa Monica (the "City "), with reference to the following facts: RECITALS A. Pursuant to California Government Code Section 65864 et seq., Chapter 9.48 of the Santa Monica Municipal Code, and Santa Monica Interim Ordinance No. 2356 (collectively, the "Development Agreement Statutes "), the City is authorized to enter into binding development agreements with persons or entities having a legal or equitable interest in real property for the development of such real property. B. School has operated as a nonprofit private school since 1971. School's campus for its upper and middle schools primarily consists of parcels located adjacent to 21st Court between I -10 Freeway and Olympic Boulevard. C. School is the owner of approximately 12,641 square feet of land in the City of Santa Monica, State of California, commonly known as 1731 -1733 Twentieth Street, as more particularly described in Exhibit "A -1" (the "School Property "), and City is the owner of approximately 772 square feet of land in the City of Santa Monica, State of California, as more particularly described in Exhibit "A -2" (the "Remnant Parcel ") (collectively, the "Property "). The conditions of approval to this Agreement provide that no building, grading, or excavation permit may be approved for the Project until School has obtained fee ownership of all of the Property, including the Remnant Parcel. D. The City has included the Property within the Industrial Conservation land use designation under the City's recently adopted Land Use and Circulation Element of its General Plan (the "LUCE "). To aid in the redevelopment of the Property, the City and School desire to enter into this Agreement to allow School to construct a new science facility for the middle and upper schools. E. On October 18, 2012, School filed an application for a Development Agreement, pursuant to Santa Monica Municipal Code ( "SMMC ") Section 9.48.020 (the "Development Application "). The Development Application was designated by the City as Application No. DEV 12 -013. The Development Application is for the development of a science learning center to house specialty classrooms as part of its existing school campus and is more fully described in this Agreement (the "Project "). F. On April 26, 2011, the City Council adopted Interim Ordinance No. 2356 ( "IZO "). The City Council extended and/or modified the IZO on several occasions thereafter. The IZO prohibits the issuance of permits for development projects which would constitute a Tier 2 or Tier 3 project as established pursuant to LUCE Chapter 2.1 22000 /Docs /Crossroads DA 06.14.13 Page I or which would exceed 32 feet in height in the Downtown Core as delineated in the Land Use Designation Map approved by the City Council on July 6, 2010 unless developed pursuant to a development agreement adopted in accordance with SMMC Chapter 9.48. Adoption of this Agreement will allow for the issuance of permits for the Project. G. School has paid all necessary costs and fees associated with the City's processing of the Development Application and this Agreement. H. The primary purpose of the Project is to combine and improve Crossroads' science classrooms from its various upper and middle school buildings into a single science facility. The Parties desire to enter into this Agreement in conformance with the Development Agreement Statutes in order to achieve the development of the Project on the Property. I. The City Council has determined that a development agreement is appropriate for the proposed development of the Property. This Agreement will (1) eliminate uncertainty in planning for the Project and result in the orderly development of the Project, (2) assure installation of necessary improvements on the Property, (3) provide for public infrastructure and services appropriate to development of the Project, (4) preserve substantial City discretion in reviewing subsequent development of the Property, (5) secure for the City improvements that benefit the public, (6) otherwise achieve the goals and purposes for which the Development Agreement Statutes were enacted, and (7) to allow School to proceed with its Tier 2 project prior to the City's new zoning ordinance being adopted. J. This Agreement is consistent with the public health, safety, and welfare needs of the residents of the City and the surrounding region. The City has specifically considered and approved the impact and benefits of the development of the Project on the Property in accordance with this Agreement upon the welfare of the region. The Project will provide a number of significant project features and community benefits, including without limitation the following: a grant of an easement for future development and public use of a portion of the Michigan Avenue Greenway bike path, enhanced educational opportunities for students through development of a science center, a TDM Plan, LEED Certification of at least Silver level (or, alternatively, achieving the equivalency of a Gold level of points regardless of certification), outreach to the Pico Neighborhood and prioritization for the Pico Neighborhood for School's summer program, and photovoltaic panels. K. The City Council has found that the provisions of this Development Agreement are consistent with the relevant provisions of City's General Plan, including the LUCE. L. On October 30, 2012, School filed demolition permit applications for the existing buildings located on the Property (12PC1339 and 12PC1340). On November 12, 2012, the City's Landmarks Commission reviewed the existing buildings located on the Property and took no action to nominate or further evaluate any of the existing buildings. 22000 /Dots /Crossroads DA 06.14.13 Page 2 M. On February 4, 2013, the City's Architectural Review Board conducted a conceptual review of the Project and rendered comments that are reflected in the Project Plans. N. On May 1, 2013, the City's Planning Commission held a duly noticed public hearing on the Development Application and this Agreement. The Commission recommended that the City Council approve the Development Agreement. O. On June 25, 2013, the City Council held a duly noticed public hearing on the Development Application and this Agreement and at such hearing the City made the necessary California Environmental Quality Act ( "CEOA ") findings that the Project qualifies for an exemption from CEQA pursuant to California Code of Regulations, Title 14, Chapter 3, Section 15314 and introduced Ordinance No. for first reading, approving this Agreement. P. On , 2013, the City Council adopted Ordinance No. , approving this Agreement. NOW THEREFORE, in consideration for the covenants and conditions hereinafter set forth, the Parties hereto do hereby agree as follows: ARTICLE 1 DEFINITIONS The terms defined below have the meanings in this Agreement as set forth below unless the context otherwise requires: 1.1 "Agreement" means this Development Agreement entered into between the City and School as of the Effective Date. 1.2 "ARB" means the City's Architectural Review Board. 1.3 "Building" means a tb ee -story structure with an accessible roof as shown on the Project Plans (defined below). 1.4 "City Council' means the City Council of the City of Santa Monica, or its designee. 1.5 "Discretionary Approvals" are actions which require the exercise of judgment or a discretionary decision, and which contemplate and authorize the imposition of revisions or additional conditions, by the City, including any board, commission, or department of the City and any officer or employee of the City. Discretionary Approvals do not include Ministerial Approvals. 1.6 "Effective Date" has the meaning set forth in Section 9.1 below. 22000 /Does /Crossroads DA 06.14.13 Page 3 1.7 "Floor Area" has the meaning as defined in Section 9.04.02.030.315 of the Zoning Ordinance, except that pursuant to Land Use and Circulation Element Policy D27.4 rooftop areas for school activities shall not count in calculation Floor Area Ratio (defined below). 1.8 "Floor Area Ratio" and FAR" means floor area ratio as defined in Section 9.04.02.030.320 of the Zoning Ordinance. 1.9 "General Plan" or "City General Plan" means the General Plan of the City of Santa Monica, and all elements thereof including the LUCE, as of the Effective Date unless otherwise indicated in this Agreement. 1.10 "Including" means "including, but not limited to." 1.11 "Interim Modules Plan" means the plan for the Interim Modules that is attached to this Agreement as Exhibit "J ". 1.12 "LEED a Rating System" means the Leadership in Energy and Environmental Design (LEED®) Green Building Rating System for New Construction & Major Renovations adopted by the U.S. Green Building Council. 1.13 "Legal Action" means any action in law or equity. 1.14 "Maximum Floor Area" means 30,179 square feet of Floor Area. 1.15 "Ministerial Approvals" mean any action which merely requires the City (including any board, commission, or department of the City and any officer or employee of the City), in the process of approving or disapproving a permit or other entitlement, to determine whether there has been compliance with applicable statutes, ordinances, regulations, or conditions of approval. 1.16 "Parties" mean both the City and School and "Party" means either the City or School, as applicable. 1.17 "Pico Neighborhood" means the area in the City of Santa Monica bounded by Santa Monica Boulevard from Lincoln Boulevard to 20th Street and Colorado Boulevard from 20th Street to Centinela Avenue on the north, Pico Boulevard on the south, Centinela Avenue and the City limits on the east and Lincoln Boulevard on the west. 1.18 "Pico Neighborhood Association" means that certain California nonprofit corporation named Pico Neighborhood Association. 1.19 "Planning Director" means the Planning Director of the City of Santa Monica, or his or her designee. 1.20 "Project Plans" mean the plans for the Project that are attached to this Agreement as Exhibit `B." 22000/Docs /Crossroads DA 06.14.13 Page 4 1.21 "Zoning Ordinance" means the City of Santa Monica Comprehensive Land Use and Zoning Ordinance (Chapter 9.04 of the SMMC), and any applicable Interim Zoning Ordinance, as the same are in effect on the Effective Date, is set forth within Exhibit `B" (Planning and Zoning). ARTICLE 2 DESCRIPTION OF THE PROJECT 2.1 General Description. The Project includes all aspects of the proposed development of the Property as more particularly described in this Agreement and on the Project Plans. If there is a conflict or inconsistency between the text of this Agreement and the Project Plans, the Project Plans will prevail; provided, however, that omissions from the Project Plans shall not constitute a conflict or inconsistency with the text of this Agreement. 2.2 Principal Components of the Project. The Project consists of the following principal components, as well as the other components delineated in the Project Plans, all of which are hereby approved by the City subject to the other provisions of this Agreement: (a) Demolition and removal of the two existing school buildings, including five classrooms, and surface parking, (b) installation of interim replacement classroom modules ( "Interim Modules ") consistent with the Interim Modules Plan and the Conditions of Approval specified in Exhibit "D ", and (c) construction of a new three - story structure with an accessible roof, which will contain 12 specialty classrooms and related facilities as shown on the Project Plans. 2.3 No Obligation to Develop. 2.3.1 Except as specifically provided herein: (a) Nothing in this Agreement shall be construed to require School to proceed with the construction of the Project or any portion thereof. (b) The decision to proceed or to forbear or delay in proceeding with construction of the Project or any portion thereof shall be in School's sole discretion. (c) Failure by School to proceed with construction of the Projector any portion thereof shall not give rise to any liability, claim for damages or cause of action against School, except as may arise pursuant to a nuisance abatement proceeding under SMMC Chapter 8.96, or any successor legislation. 2.3.2 Failure by School to proceed with construction of the Project or any portion thereof shall not result in any loss or diminution of development rights, except upon expiration of School's vested rights pursuant to this Agreement, or the termination of this Agreement. 22000/Docs /Crossroads DA 06.14.13 Page 5 2.3.3 Notwithstanding any provision of this Section 2.3 to the contrary, School shall implement all conditions of approval required under this Agreement in accordance with Exhibit "D" as and when reasonably required by the City of Santa Monica for the appropriate stage of the Project. 2.4 Vested Rights. 2.4.1 Approval of Project Plans. The City hereby approves the Project Plans. The City shall maintain a complete copy of the Project Plans, stamped "Approved" by the City, in the Office of the City Clerk, and School shall maintain a complete copy of the Project Plans, stamped "Approved" by the City, in its offices or at the Project site. The Project Plans to be maintained by the City and School shall be in a half -size set. Further detailed plans for the construction of the Building and improvements, including, without limitation, structural plans and working drawings shall be prepared by School subsequent to the Effective Date based upon the Project Plans. 2.4.2 Minor Modifications to Project. School with the approval of the Planning Director, may make minor changes to the Project or Project Plans ( "Minor Modifications ") without amending this Agreement; provided that the Planning Director makes the following specific findings that the Minor Modifications: (i) are consistent with the Project's approvals as approved by the City Council; (ii) are consistent with the provisions, purposes and goals of this Agreement; (iii) are not detrimental to the public health, safety, convenience or general welfare; and (iv) will not significantly and adversely affect the public benefits associated with the Project. The Planning Director shall notify the Planning Commission in writing of any Minor Modifications approved pursuant to this Section 2.4.2. Any proposed change which the Planning Director denies as not qualifying for a Minor Modification based on the above findings must be processed as a Major Modification. 2.4.3 Modifications Requiring Amendment to this Agreement. School shall not make any "Major Modifications" (defined below) to the Project without first amending this Agreement to permit such Major Modifications. A "Major Modification" means the following: (a) Reduction of any setback of the Project, as depicted on the Project Plans, if by such reduction the applicable setback would be less than is permitted in the applicable zoning district under the Zoning Ordinance in effect on the date such modification is applied for; (b) Reduction of any setback of the Interim Modules, as depicted on the Interim Modules Plan, if by such reduction the applicable setback would be less than is permitted in the applicable zoning district under the Zoning Ordinance in effect on the date such modification is applied for; (c) Any change in use not consistent with the permitted uses defined in Section 2.5 below; 22000 /Dots /Crossroads DA 06.14.13 Page 6 (d) Any material change in the number or location of curb cuts shown on the Project Plans; (e) Any variation in the design, massing or building configuration, including but not limited to, Floor Area and building height, that renders such aspects out of substantial compliance with the Project Plans after ARB Approval; and (f) Any change that would substantially reduce or alter the community benefits or significant project features as set forth in Section 2.6. If a proposed modification does not exceed the Major Modification thresholds established above, then the proposed modification may be reviewed in accordance with Section 2.4.2. 2.4.4 City Consent to Modification. The Planning Director shall not unreasonably withhold, condition, or delay its approval of a request for such Minor Modification. The City may impose fees, exactions, and conditions in connection with its approval of a Minor or Major Modification, subject to any applicable law. Notwithstanding anything to the contrary herein or in the Existing Regulations, if the Planning Director approves a Minor Modification or if the City approves a Major Modification (and the corresponding amendment to this Agreement for such Major Modification), as the case may be, School shall not be required to obtain any other Discretionary Approvals for such modification, except for ARB approval, in the case of certain Major Modifications. 2.4.5 Right to Develop. Subject to the provisions of Section 3.3 below, during the Term (as defined in Section 9.2 below) of this Development Agreement, School shall have the vested rights (the "Vested Rights ") to (a) develop and construct the Project in accordance with the following: (i) the Project Plans (as the same may be modified from time to time in accordance with this Agreement); (ii) any Minor Modifications approved in accordance with Section 2.4.2; (iii) any Major Modifications which are approved pursuant to Section 2.5.3; and (iv) the requirements and obligations of School related to the improvements which are specifically set forth in this Agreement, and (b) use and occupy the Project for the permitted uses set forth in Section 2.5. Except for any required approvals from the ARB pursuant to Section 6.1 of this Agreement, the City shall have no further discretion over the elements of the Project which have been delineated in the Project Plans (as the same may be modified from time to time in accordance with this Agreement). 2.5 Permitted Uses. The City approves the following permitted uses for the Project, including on the rooftop: private elementary and secondary school and related uses, including for classrooms, educational laboratories, educational workshops, storage, faculty offices and preparation space. 2.6 Siynificant Project Features and LUCE Community Benefits. This Agreement provides assurances that the significant project features and LUCE 22000 /Does /Crossroads DA 06.14.13 Page 7 community benefits identified below in this Section 2.6 will be achieved and developed in accordance with the terms of this Agreement. 2.6.1 Significant Project Features. Set forth in this Section 2.6.1 are the project features that will be provided to the City, including without limitation: (a) construction j obs; (b) provision of on -site public art, cultural facilities or payment of a cultural arts development contribution pursuant to SMMC Section 9.04.10.20; (c) installation of standard water and wastewater reduction fixtures within the Project as legally applicable; and (d) various standard public improvements and fees. 2.6.2 LUCE Community Benefits. Set forth below in this Section 2.6.2 are the additional community benefits that will be provided by the Project. (a) Educational Facility. The Project is an educational facility that will provide enhanced educational opportunities for students which is identified as one of the community benefit priorities of the LUCE (LUCE p. 3.2 -3). (b) Bicycle Path. As its principal community benefit for the Project, School agrees to execute an easement agreement (`Bike Path Easement Agreement ") granting to the City a ten (10) foot wide surface easement across the southerly portion of the Property as depicted on Exhibit "F" ( "Bike Path Easement Area ") for purposes of establishing a public bike path ( "Public Bike Path ") in furtherance of the City's Bike Action Plan, contingent on the following: The Bike Path Easement Agreement would expressly be subject to any preexisting easements over and across this same 10 foot wide strip of land (collectively the "Utility Easements "). ii. City shall have sole responsibility for designing, constructing and maintaining the Public Bike Path on all or any part of the Bike Path Easement Agreement area, including the relocation of any utility poles or placement underground of any utility lines. iii. The City's designated staff shall meet with School representatives or administrators to share information regarding the City's preliminary design of, timing for and future construction of the Public Bike Path. Such meeting shall be in addition to any publicly noticed meeting about the design of the Public Bike Path. Notwithstanding this Section 2.6.2(b)(iii), City shall retain its full discretionary authority in designing, constructing and maintaining the Public Bike Path and the Bike Path Easement Agreement area. iv. City acknowledges that School desires to construct a new perimeter fence or wall that extends from the eastern edge of the Science Building on School's Property across 20th Court alley. School acknowledges that to obtain the required approvals to construct a fence or wall on a public street, the City must first go through a street vacation process. Pursuant to this subsection iv, School may, and if it chooses to do so, shall be responsible for constructing and maintaining a perimeter fence or wall from the eastern edge of the 22000/Does /Crossroads DA 06.14.13 Page 8 Science Building on the School Property to the eastern edge of the School Property, outside the Bike Path Easement Area, at its own cost. City agrees that such perimeter fence or wall shall be allowed to be 8 feet in height. The Planning Director or his or her designee shall approve the precise location of this fence or wall, the approval of which shall not be unreasonably withheld. Except with respect to the height of the fence or wall, City's Architectural Review Board shall retain its customary review authority, if any, over the design of the fence or wall. The authority to construct a new perimeter fence provided by this subsection is limited to the southern perimeter of the School Property as set forth above, and does not authorize any construction by School across 201h Court alley. V. Notwithstanding anything to the contrary in this Development Agreement, the Bike Path Easement Agreement shall provide that, commencing upon passage of the 60°i day after the School's receipt of the City's Notice of Intent to Proceed, the City shall defend, indemnify and hold harmless the School, its board and individual board members, officers, agents, employees, volunteers and other representatives (collectively "School Indemnified Parties ") from and against any and all losses, liabilities, damages, costs, expenses, claims, demands, suits, attorney's fees and judgments (collectively referred to as "Damages "), including but not limited to claims for damage for personal injury (including death) and claims for property damage arising from the following: (1) the willful misconduct or active negligence of the City or its City Council, boards and commissions, officers, agents, employees, contractors, subcontractors, volunteers or other persons acting on its behalf (collectively referred to as the "City Parties ") which occurs after the 60`h day after the School's receipt of the City's Notice of Intent to Proceed and during the term of the Bike Path Easement Agreement relating directly to the Public Bike Path or the City's Bike Path Easement; and (2) the condition of the Public Bike Path or the Bike Path Easement; except to the extent any such Damages are caused by the active negligence or willful misconduct of any School Indemnified Parties and/or any students of the School. For purposes of enforcing any rights under this subsection (v), the term "condition" shall include the design, use, and operation of the Public Bike Path. vi. The Bike Path Easement Agreement shall provide that the City shall thereafter assume full responsibility for evaluating and addressing any impacts of the City's improvements to the Public Bike Path upon the existing drainage culvert located on the alley and Interstate 10 Freeway side of the Bike Path Easement Area. vii. The School shall have the right to use the Public Bike Path for emergency pedestrian access, if reasonably necessary to ensure public safety of the School's students, teachers, administration and staff. viii. If the City has failed to complete its construction of that portion of the Public Bike Path located within the Bike Path Easement Area by December 31, 2033, 22000/Docs /Crossroads DA 06.14.13 Page 9 then the Bike Path Easement Agreement shall automatically expire and be of no further force or effect, and the City shall promptly execute all documents reasonably necessary to confirm that School, or its successor in interest, is no longer bound by the Bike Path Easement Agreement. ix. In order to protect the southerly side of School's Science Building and perimeter fence or wall from graffiti and vandalism, School shall be allowed to plant pocket vines up to six inches into the Bike Path Easement Agreement area from School's Science Building and the barrier fence or wall. The City's Architectural Review Board shall retain its normal review authority over such landscaping. Until the City provides written notice to the School that the City is ready to proceed with the commencement of construction of the proposed bike path ( "Notice of Intent to Proceed "), the School shall retain and have the exclusive control and sole responsibility for maintenance of the Bike Path Easement Area, excluding 20`x' Court Alley, (subject to the existing Utility Easements) as part of its campus. In the event that the School installs any fixtures and improvements within the Bike Path Easement Area after obtaining any required approvals, including the establishment of a perimeter fence at or near the southernmost edge of the Bike Path Easement Area, the School shall have the duty, at the School's cost and expense, to remove such fixtures and improvements and restore the surface of the Bike Path Easement Area to its condition immediately before the installation of such fixtures and improvements no later than 60 days after the School's receipt of the City's Notice of Intent to Proceed. (c) Photovoltaic Panels. Photovoltaic panels shall be installed in accordance with the Project Plans. (d) Photovoltaic Panel-Ready Roo The western portion of the roof, as shown on the Project Plans, shall be designed and constructed to accommodate the School's potential future installation of photovoltaic panels at that location, if and to the extent that the School may at some point in the future elect to proceed to install such photovoltaic panels. This obligation includes anticipating the capacity for such installation and installing the conduit that would service any future photovoltaic panels at that location. (e) Pico Neighborhood Outreach and Prioritization for Summer Program. Commencing in the Spring of 2014 and continuing on an annual basis thereafter, School shall perform the following targeted community outreach for school aged children and their parents residing within the Pico Neighborhood: (1) School shall include residents of the Pico Neighborhood in an annual admissions night which shall be held prior to fall applications (for regular school year admissions) being accepted. School shall provide outreach and notification of the event to the then current chair of the Pico Neighborhood Association and the Pico Boulevard Branch Public Library at Virginia Avenue Park. At this event, School's admissions staff shall explain School's application process, supply information 22000 /Does /Crossroads DA 06.14.13 Page 10 regarding the process for applying for financial aid for the School's tuition, and be available to answer questions. (2) Annually prior to commencement of enrollment for the School's annual Summer at Crossroads program, School shall (i) continue to host an event about School's Summer at Crossroads program and (ii) shall provide outreach and notification of the event, the summer programs being offered, and the availability of financial aid to the then current chair of the Pico Neighborhood Association and the Pico Boulevard Branch Public Library at Virginia Avenue Park. (3) For School's summer program, School shall prioritize residents of the Pico Neighborhood along with School's existing students for both enrollment and financial aid. (f) LEEDO Requirement. School has retained the services of a LEED Accredited Professional to consult with School regarding incorporation of sustainable design features for the Project and shall refine the Project's design with the good faith goal of attaining the number of points that would be commensurate with achieving LEEDO credits equivalent to a "Gold" certification under the LEEDO Rating System. If the Project achieves the number of points that would be commensurate with achieving LEEDO Gold certification, School shall not be required to submit the project to the Green Building Certification Institute to achieve LEEDO certification. If despite School's good faith effort, the Project does not achieve the number of points that would be commensurate with achieving LEEDO credits equivalent to a "Gold" certification under the LEEDO Rating System, School shall alternatively be required to obtain LEEDO Silver certification for the Project. School shall confirm to the City that the design for the Project has achieved either (i) number of points that would be commensurate with achieving LEEDO Gold certification or (ii) LEEDO Silver certification (either of which shall be deemed to constitute the " LEEDO Requirement ") in accordance with the following requirements of this Section 2.6.2(6. (1) ' Consistent with Article 6 of this Agreement, School has submitted a preliminary checklist of anticipated LEEDO credits (that was be prepared by the LEEDO accredited professional) for review by the City of Santa Monica Green Building Program Advisor ( "Advisor'). (2) As part of School's set of plans and documents submitted to the City with School's plan check application for the Project's building permit, School shall also submit the LEEDO credits identified in clause (1) above (prepared by the LEEDO accredited professional) for review by the Advisor to demonstrate that the Project is likely to achieve the LEEDO Requirement. (3) If, in order to meet the LEEDO Requirement, School elects to pursue achievement of the number of points that would be commensurate with achieving LEEDO Gold certification instead of pursuing LEEDO Silver certification (or a higher level of LEEDO certification), the following provisions shall apply: 22000 /Dots /Crossroads DA 06.14.13 Page 11 a) Prior to issuance of a final Certificate of Occupancy for the Project, the City's Green Building Program Advisor shall verify and approve (which approval shall not be unreasonably withheld, conditioned or delayed) that the LEEDS credits identified in clause (1) above (prepared by the LEEDS accredited professional) demonstrate that the Project is likely to achieve the LEEDS Requirement. School shall meet with the Advisor at least 30 days prior to submitting the final LEEDS credits for the Advisor's approval, and during such meeting School shall review the LEEDS progress with the Advisor. b) Notwithstanding the foregoing, if the Advisor has not yet approved the LEEDS credits that demonstrate that the constructed Project has achieved the LEEDS Requirement, the City shall nonetheless issue a temporary Certificate of Occupancy for the Project (assuming that the Project is otherwise entitled to receive a temporary Certificate of Occupancy). The temporary Certificate of Occupancy shall be converted to a final Certificate of Occupancy once the Advisor determines that the LEEDS credits for the Project demonstrate that the constructed Project has achieved the LEEDS Requirement. (4) If School elects to pursue LEEDS Silver certification (or a higher level of LEEDS certification) to meet the LEEDS Requirement, but the Project is denied certification for LEEDS Silver certification by the Green Building Certification Institute and School is unwilling or unable to appeal the denial of certification, then the School shall ensure that the Project achieves certification to at least the Silver level under the LEED Existing Buildings Operations & Maintenance (LEED EBOM) rating system that is current at the time that the Certificate of Occupancy was issued for the Project. School shall ensure that the Project achieves the Silver level (or a higher level) LEED EBOM certification by no later than the third annual Periodic Review (as defined in Section 10.1) after issuance of the Certificate of Occupancy for the Project. The process provided in this Section provides a vehicle for assuring the LEEDS Requirement is satisfied without delaying issuance of the final Certificate of Occupancy for this Project. (g) TDM. School shall maintain and implement the following Transportation Demand Management Plan ( "TDM Plan "): (1) Maintain Employee Transportation Coordinator: An Employee Transportation Coordinator ( "Coordinator ") shall continue to be designated as required by the City of Santa Monica's Transportation Management Division in accordance with SMMC Section 9.16. The Coordinator shall continue to manage all aspects of this Transportation Demand Management TDM Plan. (2) Compliance with SMMC Section 9.16, Performance Targets and Monitoring. School shall comply with the SMMC Section 9.16. School shall prepare and file Employee Trip Reduction Plans for its sites (or a multi -site plan), that meet or exceed City requirements. School shall continue to implement the strategies outlined in the Employee Trip Reduction Plan filed by School for the year July 1, 2012 to June 30, 2013 except to the extent the City's Transportation Demand Program Manager 22000/Docs /Crossroads DA 06.14.13 Page 12 approves modifications to such strategies in School's future Employee Trip Reduction Plans. (3) School shall achieve an average vehicle ridership ( "AVR ") goal of (a) 1.6 for both a.m. and p.m. peak periods until the second year after opening of the Exposition light rail stations at Olympic Boulevard /26th Street and Colorado Avenue /17th Street and (b) 1.75 for both a.m. and p.m. peak periods by the third year after opening of the light rail stations at Olympic Boulevard/26th Street and Colorado Avenue /17t Street. For proposes of determining AVR, the survey shall be conducted in accordance with SMMC 9.16.070(d)(2)(I) except that notwithstanding Section 9.16.070(d)(4)(G), zero emission automobiles shall be included in the calculation of vehicles arriving at the worksite. The AVR goal applies to employees only. Failure to achieve the performance target herein shall not constitute a Default as defined in this Agreement. Should School not achieve the target AVR in any year, School shall revise its TDM strategies for the upcoming School year subject to the approval of the Planning Director, to achieve the performance target herein while not substantially increasing the cost of the TDM Program. Such revisions to the TDM Plan shall constitute Minor Modifications pursuant to DA Section 2.4.2 and shall not require an amendment to this Agreement. If the City adopts a new or revised ordinance that establishes an AVR goal that is higher than the AVR goals set forth in this Section and which applies to private schools with a comparable number of employees, such higher AVR goal shall apply to School. (4) Charge for Parking: School shall charge its employees that drive to work in a single- occupancy vehicle on a regular basis for parking on School's campus. Such charge for parking shall be no less than the monthly parking rate in the City- operated beach parking lots. (5) Financial Incentives for Arriving to School through means other than Single- Occupancy Vehicle: School shall provide financial incentives to its employees that walk, bike, take public transportation, carpool (with increased incentives for more persons in the carpool) or otherwise arrive at School through means other than a single- occupancy vehicle. (6) Maintain Transportation Information Center: School shall maintain on -site, in a conspicuous location or locations, information for its employees and students about local public transit services (including bus lines, bus fare programs, light rail lines, ride share programs and shuttles) and bicycle facilities (including routes, rental and sales locations, and on -site bike racks). School shall also continue to provide walking and biking maps for its employees and students. (7) School shall promote ridesharing through newsletters or other communications to School's employees, parents, students and visitors. (8) Public Transit Subsidy In Lieu of Parking: 22000/Docs /Crossroads DA 06.14.13 Page 13 a) School shall offer all its newly -hired employees who do not purchase monthly automobile parking a free public transit pass valid every day for at least the first month of their employment. b) School shall also offer all its employees that utilize public transit to commute to and from School, at least 50% reimbursement for the cost of purchasing a public transit pass used for commuting to and from School. (9) Maintain Guaranteed Return Trip: School shall continue to provide van pool, car pool, and transit reliant employees with a return trip (or to the point of commute origin), when a Personal Emergency Situation, or unplanned business - related activity requires it, for a maximum of four trips per year per employee. (10) Programs Aimed at Upper and Middle School Students and Parents: a) The Transportation Coordinator shall be designated to assist students and parents with planning alternative means of transportation to school, including ridesbaring, bicycling, walking or taking transit. b) "Safe routes to school" bicycle and pedestrian training programs conducted annually for students and parents, in accordance with the SRTS Guide at www.saferoutesinfo.org, including: • Development or adaptation of SRTS curricula for middle and upper school students to address basic pedestrian and bike safety skills, • Identifying pedestrian and bike routes to /from School's campus and student homes, • Safety programs, • Education and encouragement programs, • Events, and • Bike, bus, and walk "buddies" matching. c) Celebrate "bike to school" day /week and other events to encourage ridesharing. d) Transit and walking /biking information in registration packets. e) Promote cat-pooling, biking, walking, and transit use via newsletters and at parent meetings. I) Alert visitors to transit, biking, etc. options whenever parking information is provided in event flyers, advertisements, etc. 22000 /Does /Crossroads DA 06.14.13 Page 14 g) Provide information about bus service and rideshare opportunities in the school bulletin and special announcements; feature the benefits of walking and bicycling in publications. h) Encourage and support carpooling to events, school, and services, by providing on -line and/or personalized matching services. i) Offer personalized trip planning assistance for students during registration process and as requested. j) The School shall establish a method of collecting baseline /current data about how middle and upper school students generally travel to and from School (i.e. by single- occupancy vehicle, carpool, walking, biking, public transit, or other mode of transportation), shall collect such data, and shall report such data to the City annually. (11) Student Parking: School shall charge students that drive to School in a single- occupancy vehicle on a regular basis for parking on School's campus. (12) Bicycle Parking: School shall provide a minimum of 50 bicycle parking spaces for employees, students, and visitors. School shall increase bicycle parking spaces on an as needed basis to meet peak bicycle parking demand for employees, students, and visitors. (13) Carpool Parking: School shall provide preferential parking for employees who commute to work in employer registered carpools. Such parking shall be either free or at a reduced rate compared with the parking charge for employees that commute to and from School in a single- occupancy vehicle. An employee who drives to work with at least one other employee at least four (4) days per week may register as a carpool entitled preferential parking. (14) Transportation Management Association: School shall be required to participate in the formation of a geographic -based Transportation Demand Management Association that may be defined by the City. If the City adopts a requirement that a Transportation Management Association be formed for this geographic area, School shall participate in organizational meetings and provide traffic demand data to the City and to the Transportation Management Association. (15) Changes to TDM Program. Subject to approval by the City's Planning Director, School may modify this TDM program, including a reduction of the number of required bicycle racks (provided such racks are not needed to accommodate School's demonstrated actual peak bicycle parking demand), provided the TDM program, as modified, can be demonstrated as equal or superior in its effectiveness in trip reduction for this Project. Any such modifications shall be considered Minor Modifications pursuant to Section 2.4.2 of this Agreement. 22000 /Docs /Crossroads DA 06.14.13 Page 15 2.7 Parking. (a) Prior to development of this Project, School has been required to provide 229 parking spaces pursuant to Administrative Approval No. 97 -056. City and School agree that upon completion of this Project, 235 parking spaces shall be required. (b) On at least an annual basis, School shall notify all its employees, students and parents in writing not to park on the residential streets in the vicinity of School. School shall provide a copy of such notice to City as and when distributed. All new employees will be provided the same admonition during their orientation. 2.8 Design. (a) Setbacks. School shall maintain the setbacks for the Project as shown on the Project Plans. In the event that any inconsistencies exist between the Zoning Ordinance and the setbacks established by this Agreement, then the setbacks required by this Agreement shall prevail. (b) Building Height. The maximum height of the building shall be as set forth on the Project Plans. In the event that any inconsistencies exist between the Zoning Ordinance and the building height allowed by this Agreement, then the building height allowed by this Agreement shall prevail. (c) Stepbacks. School shall maintain the stepbacks for the Project, if any, set forth on the Project Plans. In the event that any inconsistencies exist between the Zoning Ordinance and the stepbacks required by this Agreement, then the stepbacks established by this Agreement shall prevail. (d) Permitted Projections. Projections shall be permitted as reflected on the Project Plans. In the event that any inconsistencies exist between the Zoning Ordinance and the projections permitted by this Agreement, then the projections permitted by this Agreement shall prevail. Notwithstanding the foregoing, if School elects to satisfy its Private Developer Cultural Art Requirement (SMMC part 9.04.10.20) through on -site installation of art, School shall have the right to propose on -site installation of art on the roof of the Building, provided that the maximum height of any such art may not exceed 45 feet above the Property's average natural grade unless (and only to the extent that), prior to that time, the City has adopted a new Zoning Ordinance and any such new Zoning Ordinance allows the height of on -site art to be treated as a permitted projection above 45 feet. Nothing in this Agreement, including this Section 2.8(d), shall prevent School from requesting and City from allowing additional height for art on the roof of the Building. (e) Signage. The location, size, materials, and color of any signage shall be reviewed by the ARB (or the Planning Commission on appeal) in accordance with the procedures set forth in Section 6.1 of this Agreement. All signs on the Property shall be subject to Chapter 9.52 of the SMMC (Santa Monica Sign Code) in effect as of the Effective Date, a copy of which is set forth in its entirety in Exhibit "E". Directional 22000/Docs /Crossroads DA 06.14.13 Page 16 signs for vehicles shall be located at approaches to driveways as required by the City's Strategic Transportation Planning Division. ARTICLE 3 CONSTRUCTION 3.1 Construction Mitigation Plan. During the construction phase of the Project, School shall comply with the Construction Mitigation Plan attached as Exhibit "H" hereto. 3.2 Construction Hours. School shall be permitted to perform construction between the hours of 8:00 a.m. to 6:00 p.m. Monday through Friday, and 9:00 a.m. to 5:00 p.m. Saturday; provided that interior construction work which does not generate noise of more than thirty (30) decibels beyond the Property line may also be performed between the hours of 7:00 a.m. to 8:00 a.m. and 6:00 p.m. to 7:00 p.m. Monday through Friday, and 8:00 a.m. to 9:00 a.m. and 5:00 p.m. to 6:00 p.m. Saturday. Notwithstanding the foregoing, pursuant to SMMC Section 4.12.110(e), School has the right to seek a permit from the City authorizing construction activity during the times otherwise prohibited by this Section. The Parties acknowledge and agree that, among other things, afterhours construction permits can be granted for excavation, shoring, and concrete pours. 3.3 Outside Building Permit Issuance Date. If School has not been issued a building permit for the Project by the "Outside Building Permit Issuance Date" (defined below), then on the day after the Outside Building Permit Issuance Date, without any further action by either Party, this Agreement shall automatically terminate and be of no further force or effect. For purposes of clarity, if School has not been issued a building permit for the Project by the Outside Building Permit Issuance Date, the City shall not be required to pursue its remedies under Section 11.4 of this Agreement, and this Agreement shall, instead, automatically terminate. "Outside Building Permit Issuance Date" means the date that is the last day of the seventy- second (72nd) fall calendar month after the Effective Date; provided that the Outside Building Permit Issuance Date may be extended by applicable Excusable Delays and otherwise in accordance with the remainder of this paragraph. If the approval by the ARB of the Project design does not occur within four (4) months of the submittal by School to the ARB of the Project design, then the Outside Building Permit Issuance Date shall be extended one month for each additional month greater than four that the final ARB approval is delayed. At any time before the last day of the seventy- second (72nd) full calendar month after the Effective Date (the "Extension Notice Date "), School may deliver written notice to the Planning Director, requesting an extension of the Outside Building Permit Issuance Date for an additional twelve (12) months. The Outside Building Permit Issuance Date may be administratively extended not more than three (3) times for an additional twelve (12) months per extension. The Planning Director may grant such extension if School can demonstrate substantial progress has been made towards obtaining a building permit and show reasonable cause why School will not be able to obtain the building permit for the Project by the initial Outside Building Permit Issuance Date and can demonstrate that: 22000/Docs /Crossroads DA 06.14.13 Page 17 (a) the condition of the Property will not adversely affect public health or safety and (b) the continued delay will not create any unreasonable visual or physical detriment to the neighborhood. 3.4 Construction Period. Construction of the Project shall be subject to the provisions of SMMC Section 8.08.070. 3.5 Damage or Destruction. If the Project, or any part thereof, is damaged or destroyed during the term of this Agreement, School shall be entitled to reconstruct the Project in accordance with this Agreement if. (a) School obtains a building permit for this reconstruction prior to the expiration of this Agreement and (b) the Project is found to be consistent with the City's General Plan in effect at the time of obtaining the building permit. 3.6 Possession of Property. No building permit, grading permit, or excavation permit may be approved until the School has demonstrated to the satisfaction of the City Attorney's Office that School has obtained fee ownership and possession of all of the Property required for development of the Project. 3.7 Completed and Final Landmarks Commission Review of Property. Demolition of the existing buildings located on the Property shall be exempt from any fruther Landmarks Commission review up through the Outside Building Permit Issuance Date. ARTICLE 4 PROTECT FEES, EXACTIONS, AND CONDITIONS 4.1 Fees, Exactions, and Conditions. Except as expressly set forth in Section 2.6.2 (relating to Community Benefits), Section 4.2 (relating to modifications), and Section 5.2 (relating to Subsequent Code Changes) below, the City shall charge and impose only those fees, exactions, conditions, and standards of construction set forth in this Agreement, including Exhibits "C ", "D" and "I" attached hereto, and no others. 4.2 Conditions on Modifications. The City may impose fees, exactions, and conditions in connection with its approval of Minor or Major Modifications, provided that all fees, exactions, and conditions shall be in accordance with any applicable law. 4.3 Implementation of Conditions of Approval. 4.3.1 Compliance with Conditions of Approval. School shall be responsible to adhere to the conditions of approval set forth in Exhibit "D" in accordance with the timelines established in Exhibit "D ". 4.3.2 Survival of Conditions of Approval. If School proceeds with the construction of the Project, except as otherwise expressly limited in this Agreement, the obligations and requirements imposed by the conditions of approval set forth in the 22000/Docs /Crossroads DA 06.14.13 Page 18 attached Exhibit "D" shall survive the expiration of the Term of this Agreement and shall remain binding on School, its successors and assigns, and shall continue in effect for the life of the Project. ARTICLE 5 EFFECT OF AGREEMENT ON CITY LAWS AND REGULATIONS 5.1 Development Standards for the Property; Existing Regulations. The following development standards and restrictions set forth in this Section 5.1 govern the use and development of the Project and shall constitute the Existing Regulations, except as otherwise expressly required by this Agreement. 5.1.1 Defined Ternis. The following ternis shall have the meanings set forth below: (a) "Existing Regulations" collectively means all of the following which are in force and effect as of the Effective Date: (i) the General Plan (including, without limitation, the LUCE); (ii) the Zoning Ordinance except as modified herein; (iii) the IZO; (iv) any and all ordinances, rules, regulations, standards, specifications and official policies of the City governing, regulating or affecting the demolition, grading, design, development, building, construction, occupancy or use of buildings and improvements or any exactions therefore, except as amended by this Agreement; and (v) the development standards and procedures in Article 2 of this Agreement. (b) "Subsequent Code Changes" collectively means all of the following which are adopted or approved subsequent to the Effective Date, whether such adoption or approval is by the City Council, any department, division, office, board, commission or other agency of the City, by the people of the City through charter amendment, referendum, initiative or other ballot measure, or by any other method or procedure: (i) any amendments, revisions, additions or deletions to the Existing Regulations; or (ii) new codes, ordinances, rules, regulations standards, specifications and official policies of the City governing or affecting the grading, design, development, construction, occupancy or use of buildings or improvements or any exactions therefor. "Subsequent Code Changes" includes, without limitation, any amendments, revisions or additions to the Existing Regulations imposing or requiring the payment of any fee, special assessment or tax. 5.1.2 Existing Regulations Govern the Project. Except as provided in Section 5.2, development of the Building and improvements that will comprise the Project, including without limitation, the development standards for the demolition, grading, design, development, construction, occupancy or use of such Building and improvements, and any exactions therefor, shall be governed by the Existing Regulations. The City agrees that this Agreement is consistent with the General Plan, including the LUCE, as more fully described in the Recitals. Any provisions of the Existing 22000/Docs /Crossroads DA 06.14.13 Page 19 Regulations inconsistent with the provisions of this Agreement, to the extent of such inconsistencies and not further, are hereby deemed modified to that extent necessary to effectuate the provisions of this Agreement. The Project shall be exempt from: (a) all Discretionary Approvals or review by the City or any agency or body thereof, other than the matters of architectural review by the ARB as specified in Section 6.1 and review of modifications to the Project as expressly set forth in Sections 2.4.2 and 2.4.3; (b) the application of any subsequent local development or building moratoria, development or building rationing systems or other restrictions on development which would adversely affect the rate, timing, or phasing of construction of the Project, and (c) Subsequent Code Changes which are inconsistent with this Agreement. 5.2 Permitted Subsequent Code Changes. 5.2.1 Applicable Subsequent Code Changes. Notwithstanding the terms of Section 5.1, this Agreement shall not prevent the City from applying to the Project the following Subsequent Code Changes set forth below in this Section 5.2.1. (a) Processing fees and charges imposed by the City to cover the estimated actual costs to City of processing applications for development approvals including: (i) all application, permit, and processing fees incurred for the processing of this Agreement, any administrative approval of a Minor Modification, or any amendment of this Agreement in connection with a Major Modification; (ii) all building plan check and building inspection fees for work on the Property in effect at the time an application for a grading permit or building permit is applied for; and (iii) the public works plan check fee and public works inspection fee for public improvements constructed and installed by School and (iv) fees for monitoring compliance with any development approvals; provided that such fees and charges are uniformly imposed by the City at similar stages of project development on all similar applications and for all similar monitoring. (b) General or special taxes, including, but not limited to, property taxes, sales taxes, parcel taxes, transient occupancy taxes, business taxes, which may be applied to the Property or to businesses occupying the Property; provided that (i) the tax is of general applicability City- wide and does not burden the Property disproportionately to other similar developments within the City; and (ii) the tax is not a levy, assessment, fee or tax imposed for the purpose of funding public or private improvements on other property located within the Industrial Conservation District (as defined in the City's General Plan as of the Effective Date). (c) Procedural regulations relating to hearing bodies, petitions, applications, notices, documentation of findings, records, manner in which hearings are conducted, reports, recommendations, initiation of appeals, and any other matters of procedure; provided such regulations are uniformly imposed by the City on all matters, do not result in any unreasonable decision - making delays and do not affect the substantive findings by the City in approving this Agreement or as otherwise established in this Agreement. 22000 /Docs /Crossroads DA 06.14.13 Page 20 (d) Regulations governing construction standards and specifications which are of general application that establish standards for the construction and installation of structures and associated improvements, including, without limitation, the City's Building Code, Plumbing Code, Mechanical Code, Electrical Code and Fire Code; provided that such construction standards and specifications are applied on a City -wide basis and do not otherwise limit or impair the Project approvals granted in this Agreement unless adopted to meet health and safety concerns. (e) Any City regulations to which School has consented in writing. (f) Collection of such fees or exactions as are imposed and set by governmental entities not controlled by City but which are required to be collected by City. (g) Regulations which do not impair the rights and approvals granted to School under this Agreement. For the purposes of this Section 5.2.1(g), regulations which impair School's rights or approvals include, but are not limited to, regulations which (i) materially increase the cost of the Project (except as provided in Section 5.2.1(a), (b), and (d) above), or (ii) which would materially delay development of the Project or that would cause a material change in the uses of the Project as provided in this Agreement. 5.2.2 New Rules and Regulations. This Agreement shall not be construed to prevent the City from applying new rules, regulations and policies in those circumstances specified in Government Code Section 65866. 5.2.3 State or Federal Laws. In the event that state or federal laws or regulations, enacted after the Effective Date, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such state or ' federal. laws or regulations; provided that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such rerriahring provisions impractical to enforce. 5.3 Common Set of Existing Regulations. Prior to the Effective Date, the City and School shall use reasonable efforts to identify, assemble and copy three identical sets of the Existing Regulations, to be retained by the City and School, so that if it becomes necessary in the future to refer to any of the Existing Regulations, there will be a common set of the Existing Regulations available to all Parties. 5.4 Conflicting Enactments. Except as provided in Section 5.2 above, any Subsequent Code Change which would conflict in any way with or be more restrictive than the Existing Regulations shall not be applied by the City to any part of the Property. School may, in its sole discretion, give the City written notice of its election to have any Subsequent Code Change applied to such portion of the Property as it may have an 22000 /Docs /Crossroads DA 06.14.13 Page 21 interest in, in which case such Subsequent Code Change shall be deemed to be an Existing Regulation insofar as that portion of the Property is concerned. If there is any conflict or inconsistency between the terms and conditions of this Agreement and the Existing Regulations, the terms and conditions of this Agreement shall control. 5.5 Timing of Development. The California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Ca1.3d 465 (1984), that failure of the parties in that case to provide for the riming of development resulted in a later adopted initiative restricting the timing of development to prevail over the parties' agreement. It is the intent of School and the City to cure that deficiency by expressly acknowledging and providing that any Subsequent Code Change that purports to limit over time the rate or timing of development or to alter the sequencing of development phases (whether adopted or imposed by the City Council or through the initiative or referendum process) shall not apply to the Property or the Project and shall not prevail over this Agreement. In particular, but without limiting any of the foregoing, no numerical restriction shall be placed by the City on the amount of total square feet or the number of buildings, structures, residential units that can be built each year on the Property except as expressly provided in this Agreement. ARTICLE 6 ARCHITECTURAL REVIEW BOARD 6.1 Architectural Review Board Approval. The Project shall be subject to review and approval or conditional approval by the ARB in accordance with design review procedures in effect under the Existing Regulations. Consistent with Existing Regulations, the ARB cannot require modifications to the building design which negates the fundamental development standards established by this Agreement. For example, the ARB cannot require reduction in the overall height of the buildings, reduction in the number of stories in the buildings, reduction in density, or reduction in Floor Area either by floor or in aggregate from the building. Decisions of the ARB are appealable to the Planning Commission in accordance with the Existing Regulations. 6.2 Concurrent Processing. School may concurrently process plan check (SMMC § 8.08.060) with ARB design review (SMMC ch. 9.32); provided, however, that School hereby agrees to accept the risk of plan check revisions if necessitated by the outcome of the ARB design review. ARTICLE 7 CITY TECHNICAL PERMITS 7.1 Definitions. For purposes of this Agreement, the following terns shall have the meanings set forth below: 7.1.1 "Technical City Permits" means any Ministerial Approvals, consents or permits from the City or any office, board, commission, department, division 22000/Does /Crossroads DA 06.14.13 Page 22 or agency of the City, which are necessary for the actual construction of the Project or any portion thereof in accordance with the Project Site Plan and this Agreement. Technical City Permits include, without limitation (a) building permits, (b) related mechanical, electrical, plumbing and other technical permits, (c) demolition, excavation and grading permits, (d) encroachment permits, (e) tiebacks and shoring permits, and (f) temporary and final certificates of occupancy. 7.1.2 "Technical Permit Applications" means any applications required to be filed by School for any Technical City Permits. 7.2 Diligent Action by City. 7.2.1 Upon satisfaction of the conditions set forth in Section 7.3, the City shall accept the Technical Permit Applications filed by School with the City and shall diligently proceed to process such Technical Permit Applications to completion. 7.2.2 Upon satisfaction of the conditions set forth in Section 7.3, the City shall diligently issue the Technical City Permits which are the subject of the Technical Permit Applications. 7.3 Conditions for Diligent Action by the City. 7.3.1. Acceptance and Processing of Technical Permit Applications. The obligation of the City to accept and diligently process the Technical Permit Applications which are filed by School, and then issue the Technical City Permits, is subject to the satisfaction of the following conditions: (a) School shall have completed and filed all Technical Permit Applications which are required under the administrative procedures and policies of the City which are in effect on the date when the Technical Permit Application is filed; provided that such procedures and policies are uniformly in force and effect throughout the City; (b) School shall have paid all processing and permit fees established by the City in connection with the filing and processing of any Technical Permit Application which are in effect on the date when the Technical Permit Application is filed; provided that such fees are uniformly in force and effect throughout the City; and (c) If required for the particular Technical Permit Application, School shall have obtained the approval of the ARB referred to in Section 6.1.1 above. 7.3.2 Issuance of a Technical City Permit. The obligation of the City to issue a Technical City Permit which is the subject of a Technical Permit Application filed by School is subject to the satisfaction of the following conditions (and only such conditions and no others): 22000 /Does /Crossroads DA 06.14.13 Page 23 (a) School shall have complied with all of its obligations under this Agreement which are required to be performed prior to or concurrent with the issuance of the Technical City Permits for the proposed Building; (b) School shall have received any permits or approvals from other governmental agencies which are required by law to be issued prior to or concurrent with the issuance of the Technical City Permits for the proposed Building; (c) The proposed Building conforms to the development standards for such Building established in this Agreement. In the event that a proposed Building is not in conformance with the development standards, School shall have the right to seek any relief from such standards under the procedures then available in the City; and (d) The proposed Building conforms to the Administrative and Technical Construction Codes of the City (Article VIII, Chapter I of the Santa Monica Municipal Code) (the "Technical Codes ") in effect on the date that the Technical Permit Application is filed. 7.3.3 New Technical Requirements. From time to time, the City's Technical Codes are amended to meet new technical requirements related to techniques of building and construction. If the sole means of achieving compliance for the Project with such revisions to the Technical Codes made after the Effective Date ( "New Technical Requirements ") would require an increase from the allowable Building Height established in this Agreement for the Project, then the Planning Director is hereby authorized to grant School limited relief from the allowable Building Height without amending this Agreement if the requested relief is in compliance with the City's General Plan. Any such approval shall be granted only after the Planning Director's receipt of a written request for such relief from School. School is required to supply the Planning Director with written documentation of the fact that compliance with the New Technical Requirements cannot be achieved by some other method. Any such relief shall only be granted to the extent necessary in the Planning Director's determination for School to comply with the New Technical Requirements. 7.4 Duration of Technical City Permits. The duration of Technical City Permits issued by the City, and any extensions of the time period during which such Technical City Permits remain valid, shall be established in accordance with the Technical Codes in effect at the time that the Technical City Permits are issued. Subject to the terms of the next sentence, the lapse or expiration of a Technical City Permit shall not preclude or impair School from subsequently filing another Technical Permit Application for the same matter during the Term of this Agreement, which shall be processed by the City in accordance with the provisions of this ARTICLE 7. Notwithstanding anything to the contrary in this Agreement, if School obtains building permits for the Project and, at any time after the Outside Construction Start Date, such building permits expire or are revoked pursuant to the applicable terms of the SMMC (as the same may be amended from time to time), then School may not subsequently apply for new building permits for the Project without first obtaining the prior written consent 22000 /Docs /Crossroads DA 06.14.13 Page 24 of the Planning Director, which may be granted or withheld in the Planning Director's sole discretion. 7.5 [Reserved] ARTICLE 8 AMENDMENT AND MODIFICATION 8.1 Amendment and Modification of Development Agreement. Subject to the notice and hearing requirements of the applicable Development Agreement Statutes, this Agreement may be modified or amended from time to time only with the written consent of School and the City or their successors and assigns in accordance with the provisions of the SMMC and Section 65868 of the California Government Code. ARTICLE 9 TERM 9.1 Effective Date. This Agreement shall be dated, and the obligations of the Parties hereunder shall be effective as of the date upon which the ordinance approving this Agreement becomes effective (the "Effective Date "). The Parties shall execute this Agreement within ten (10) working days of the Effective Date. 9.2 Term. 9.2.1 Term of Agreement. The term of this Agreement shall commence on the Effective Date and shall continue for twenty (20) years thereafter (the "Term "), unless the Term is otherwise terminated pursuant to Section 11.4, after the satisfaction of all applicable public hearing and related procedural requirements or pursuant to Section 3.3. 9.2.2 Termination Certificate. Upon termination of this Agreement, the Parties hereto shall execute an appropriate certificate of termination in recordable form (a "Termination Certificate "), which shall be recorded in the official records of Los Angeles County. 9.2.3 Effect of Termination. Except as expressly provided herein (e.g., Section 4.3.2), none of the parties' respective rights and obligations under this Agreement shall survive the Term. ARTICLE 10 PERIODIC REVIEW OF COMPLIANCE 10.1 City Review. The City shall review compliance with this Development Agreement once each year, on or before each anniversary of the Effective Date (each, a 22000 /Dots /Crossroads DA 06.14.13 Page 25 "Periodic Review "), in accordance with this Article 10 in order to determine whether or not School is out -of- compliance with any specific term or provision of this Agreement. 10.2 Evidence of Good Faith Compliance. At least sixty (60) days prior to the applicable anniversary date, School shall deliver to the City a written report demonstrating that School has been in good faith compliance with this Agreement during the twelve (12) month period prior to the anniversary of the Effective Date. The written report shall be provided in the form established by the City. For purposes of this Agreement, the phrase "good faith compliance" shall mean the following: (a) compliance by School with the requirements of the Existing Regulations, except as otherwise modified by this Agreement; and (b) compliance by School with the terms and conditions of this Agreement, subject to the existence of any specified Excusable Delays (as defined in Section 15.8 below) which prevented or delayed the timely performance by School of any of its obligations under this Agreement. 10.3 Information to be Provided to School. Prior to any public hearing concerning the Periodic Review of this Agreement, the City shall deliver to School a copy of all staff reports prepared in connection with a Periodic Review, written comments from the public and, to the extent practical, all related exhibits concerning such Periodic Review. If the City delivers to School a Notice of Breach pursuant to Section 11.1 below, the City shall concurrently deliver to School a copy of all staff reports prepared in connection with such Notice of Breach, all written comments from the public and all related exhibits concerning such Notice of Breach. 10.4 Notice of Breach; Cure Rights. If during any Periodic Review, the City reasonably concludes on the basis of substantial evidence that School has not demonstrated that it is in good faith compliance with this Agreement, then the City may issue and deliver to School a written Notice of Breach pursuant to Section 11.1 below, and School shall have the opportunity to cure the default identified in the Notice of Breach during the cure periods and in the manner provided by Section 11.2 and Section 11.3, as applicable. 10.5 Failure of Periodic Review. The City's failure to review at least annually compliance by School with the terms and conditions of this Agreement shall not constitute or be asserted by any Party as a breach by any other Party of this Agreement. 10.6 Termination of Development Agreement. If School fails to timely cure any item(s) of non - compliance set forth in a Notice of Default, then the City shall have the right but not the obligation to initiate proceedings for the purpose of terminating this Agreement pursuant to Section 11.4 below. 10.7 City Cost Recovery. Following completion of each Periodic Review, School shall reimburse the City for its actual and reasonable costs incurred in connection with such review. 22000/Docs /Crossroads DA 06.14.13 Page 26 ARTICLE 11 DEFAULT 11.1 Notice and Cure. 11.1.1 Breach. If either Party fails to substantially to perform any term, covenant or condition of this Agreement which is required on its part to be performed (a "Breach "), the non - defaulting Party shall have those rights and remedies provided in this Agreement; provided that such non - defaulting Party has first sent a written notice of Breach (a "Notice of Breach "), in the manner required by Section 15. 1, specifying the precise nature of the alleged Breach (including references to pertinent Sections of this Agreement and the Existing Regulations or Subsequent Code Changes alleged to have been breached), and the manner in which the alleged Breach may satisfactorily be cured. If the City alleges a Breach by School, the City shall also deliver a copy of the Notice of Breach to any Secured Lender of School which has delivered a Request for Notice to the City in accordance with Article 12. 11.1.2 Monetary Breach. In the case of a monetary Breach by School, School shall promptly commence to cure the identified Breach and shall complete the cure of such Breach within thirty (30) business days after receipt by School of the Notice of Breach; provided that if such monetary Breach is the result of an Excusable Delay or the cure of the same is delayed as a result of an Excusable Delay, School shall deliver to the City reasonable evidence of the Excusable Delay. 11.1.3 Non - Monetary Breach. In the case of a non - monetary Breach by either Party, the alleged defaulting Party shall promptly commence to cure the identified Breach and shall diligently prosecute such cure to completion; provided that the defaulting Party shall complete such cure within thirty (30) days after receipt of the Notice of Breach or provide evidence of Excusable Delay that prevents or delays the completion of such cure. The thirty (3 0) day cure period for a non - monetary Breach shall be extended as is reasonably necessary to remedy such Breach; provided that the alleged defaulting Party commences such cure promptly after receiving the Notice of Breach and continuously and diligently pursues such remedy at all times until such Breach is cured. 11.1.4 Excusable Delay. Notwithstanding anything to the contrary contained in this Agreement, the City's exercise of any of its rights or remedies under this Article 11 shall be subject to the provisions regarding Excusable Delay in Section 15.8 below. 11.2 Remedies for Monetary Default. If there is a Breach by School in the performance of any of its monetary obligations under this Agreement which remains uncured (a) thirty (30) business days after receipt by School of a Notice of Breach from the City and (b) after expiration of Secured Lender's Cure Period under Section 12.1 (if a Secured Lender of School has delivered a Request for Notice to the City in accordance with Section 12. 1), then an "Event of Monetary Default" shall have occurred by School and the City shall have available any right or remedy provided in this Agreement, at law 22000/Docs /Crossroads DA 06.14.13 Page 27 or in equity. All of said remedies shall be cumulative and not exclusive of one another, and the exercise of any one or more of said remedies shall not constitute a waiver or election in respect to any other available remedy. 11.3 Remedies for Non - Monetary Default. 11.3.1 Remedies of Parties. If any Party receives a Notice of Breach from the other Party regarding a non - monetary Breach, and the non - monetary Breach remains uncured: (a) after expiration of all applicable notice and cure periods, and (b) in the case of a Breach by School, after the expiration of Secured Lender's Cure Period under Section 12.1 (if a Secured Lender of School has delivered a Request for Notice to the City in accordance with Section 12. 1), then an "Event of Non - Monetary Default" shall have occurred and the non - defaulting Party shall have available any right or remedy provided in this Agreement, or provided at law or in equity except as prohibited by this Agreement. All of said remedies shall be cumulative and not exclusive of one another, and the exercise of any one or more of said remedies shall not constitute a waiver or election in respect to any other available remedy. 11.3.2 Specific Performance. The City and School acknowledge that monetary damages and remedies at law generally are inadequate and that specific performance is an appropriate remedy for the enforcement of this Agreement. Therefore, unless otherwise expressly provided herein, the remedy of specific performance shall be available to the non- defaulting party if the other Party causes an Event of Non - Monetary Default to occur. 11.3.3 Writ of Mandate. The City and School hereby stipulate that School shall be entitled to obtain relief in the form of a writ of mandate in accordance with Code of Civil Procedure Section 1085 or Section 1094.5, as appropriate, to remedy any Event of Non - Monetary Default by the City of its obligations and duties under this Agreement. Nothing in this Section 11.3.3, however, is intended to alter the evidentiary standard or the standard of review applicable to any action of, or approval by, the City pursuant to this Agreement or with respect to the Project. 11.3.4 No Damages Relief Against City. _It is acknowledged by School that the City would not have entered into this Agreement if the City were to be liable in damages under or with respect to this Agreement or the application thereof. Consequently, and except for the payment of attorneys' fees and court costs, the City shall not be liable in damages to School and School covenants on behalf of itself and its successors in interest not to sue for or claim any damages: (a) for any default under this Agreement; (b) for the regulatory taking, impairment or restriction of any right or interest conveyed or provided hereunder or pursuant hereto; or (c) arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement. 22000/Does /Crossroads DA 06.14.13 Page 28 The City and School agree that the provisions of this Section 11.3.4 do not apply for damages which: (a) do not arise under this Agreement; (b) are not with respect to any right or interest conveyed or provided under this Agreement or pursuant to this Agreement;.or (c) do not arise out of or which are not connected to any dispute, controversy, or issue regarding the application, interpretation, or effect of the provisions of this Agreement or the application of any City rules, regulations, or official policies. 11.3.5 Enforcement by the City. The City, at its discretion, shall be entitled to apply the remedies set forth in Chapters 1.09 and 1.10 of the SMMC as the same may be amended from time to time and shall follow the notice procedures of Chapter 1.09 and 1.10 respectively in lieu of Section 11.1 of this Agreement if these remedies are applied. 11.3.6 No Damages Against School. It is acknowledged by the City that School would not have entered into this Agreement if School were to be liable in damages in connection with any non - monetary default hereunder. Consequently, and except for the payment of attorneys' fees and court costs, School shall not be liable in damages to the City for any nonmonetary default and the City covenants on behalf of itself not to sue for or claim any damages: (a) for any non - monetary default hereunder or; (b) arising out of or connected with any dispute, controversy or issue regarding; (c) the application or interpretation or effect of the provisions of this Agreement. The City and School agree that the provisions of this Section 11.3.6 do not apply for damages which: (a) are for a monetary default; or (b) do not arise out of or which are not connected with any dispute, controversy or issue regarding the application, interpretation, or effect of the provisions of this Agreement to or the application of, any City rules, regulations, or official policies. 11.3.7 No Other Limitations. Except as expressly set forth in this Section 11.3, the provisions of this Section 11.3 shall not otherwise limit any other rights, remedies, or causes of action that either the City or School may have at law or equity after the occurrence of any Event of Non - Monetary Default. 22000/Docs /Crossroads DA 06.14.13 Page 29 11.4 Modification or Termination of Agreement by City. 11.4.1 Default by School. If School causes either an Event of Monetary Default or an Event of Non - Monetary Default, then the City may commence proceedings to modify or terminate this Agreement pursuant to this Section 11.4. 11.4.2 Procedure for Modification or Termination. The procedures for modification or termination of this Agreement by the City for the grounds set forth in Section 11.4.1 are as follows: (a) The City shall provide a written notice to School (and to any Secured Lender of School which has delivered a Request for Notice to the City in accordance of Section 12.1) of its intention to modify or terminate this Agreement unless School (or the Secured Lender) cures or corrects the acts or omissions that constitute the basis of such determinations by the City (a "Hearing Notice "). The Hearing Notice shall be delivered by the City to School in accordance with Section 15.1 and shall contain the time and place of a public hearing to be held by the City Council on the determination of the City to proceed with modification or termination of this Agreement. The public hearing shall not be held earlier than: (i) thirty -one (31) days after delivery of the Hearing Notice to School or (ii) if a Secured Lender has delivered a Request for Notice in accordance with Section 12. 1, the day following the expiration of the "Secured Lender Cure Period" (as defined in Section 12.1). (b) If, following the conclusion of the public hearing, the City Council: (i) determines that an Event of Non - Monetary Default has occurred or the School has not been in good faith compliance with this Agreement pursuant to Section 10. 1, as applicable and (ii) further determines that School (or the Secured Lender, if applicable) has not cured (within the applicable cure periods) the acts or omissions that constitute the basis of the determination under clause (i) above or if those acts or omissions could not be reasonably remedied prior to the public hearing that School (or the Secured Lender) has not in good faith commenced to cure or correct such acts or omissions prior to, the public hearing or is not diligently and continuously proceeding, therewith to completion, then upon making such conclusions, the City Council may modify or terminate this Agreement. The City cannot unilaterally modify the provisions of this Agreement pursuant to this Section 11.4. Any such modification requires the written consent of School. If the City Council does not terminate this Agreement, but proposes a modification to this Agreement as a result of the public hearing and School does not (within five (5) days of receipt) execute and deliver to the City the form of modification of this Agreement submitted to School by the City, then the City Council may elect to terminate this Agreement at any time after the sixth day after School's receipt of such proposed modification. 22000 /Does /Crossroads DA 06.14.13 Page 30 11.5 Cessation of Rights and Obligations. If this Agreement is terminated by the City pursuant to and in accordance with Section 11.4, the rights, duties and obligations of the Parties under this Agreement shall cease as of the date of such termination, except only for those rights and obligations that expressly survive the termination of this Agreement. In such event, any and all benefits, including money received by the City prior to the date of termination, shall be retained by the City. 11.6 Completion of Improvements. Notwithstanding the provisions of Sections 11.2, 11.3, 11.4, and 11.5, if prior to termination of this Agreement, School has performed substantial work and incurred substantial liabilities in good faith reliance upon a building permit issued by the City, then School shall have acquired a vested right to complete construction of the Building in accordance with the terns of the building permit and occupy or use each such Building upon completion for the uses permitted for that Building as provided in this Agreement. Any Building completed or occupied pursuant to this Section 11.6 shall be considered legal non - conforming subject to all City ordinances standards and policies as they then exist governing legal non - conforming buildings and uses unless the Building otherwise complies with the property development standards for the district in which it is located and the use is otherwise permitted or conditionally permitted in the district. ARTICLE 12 MORTGAGEES 12.1 Encumbrances on the Property. This Agreement shall not prevent or limit School (in its sole discretion), from encumbering the Property (in any manner) or any portion thereof or any improvement thereon by any mortgage, deed of trust, assignment of rents or other security device securing financing with respect to the Property (a "Mortgage "). Each mortgagee of a mortgage or a beneficiary of a deed of trust (each, a "Secured Lender ") on the Property shall be entitled to the rights and privileges set forth in this ARTICLE 12. Any Secured Lender may require from the City certain interpretations of this.Agreement. The City shall from time to time, upon request made by School, meet with School and representatives of each of its Secured Lenders to negotiate in good faith any Secured Lender's request for interpretation of any part of this Agreement. The City will not unreasonably withhold, condition or delay the delivery to a Secured Lender of the City's written response to any such requested interpretation. 12.1.1 Mortgage Not Rendered Invalid. Except as provided in Section 12.1.2, neither entering into this Agreement nor a Breach of this Agreement, nor any Event of Monetary Default nor any Event of Non - Monetary Default shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. 12.1.2 Priority of Agreement. This Agreement shall be superior and senior to the lien of any Mortgage. Any acquisition or acceptance of title or any right or interest in or with respect to the Property or any portion thereof by a Secured Lender or its successor in interest (whether pursuant to foreclosure, trustee's sale, deed in lieu of 22000 /Docs /Crossroads DA 06.14.13 Page 31 foreclosure, lease termination or otherwise) shall be subject to all of the terms and conditions of this Agreement. 12.1.3 Right of Secured Lender to Cure Default. (a) A Secured Lender may give notice to the City, specifying the name and address of such Secured Lender and attaching thereto a true and complete copy of the Mortgage held by such Secured Lender, specifying the portion of the Property that is encumbered by the Secured Lender's lien (a "Request for Notice "). If the Request for Notice has been given, at the same time the City sends to School any Notice of Breach or Hearing Notice under this Agreement, then if such Notice of Breach or Hearing Notice affects the portion of the Property encumbered by the Secured Lender's lien, the City shall send to such Secured Lender a copy of each such Notice of Breach and each such Hearing Notice from the City to School. The copy of the Notice of Breach or the Hearing Notice sent to the Secured Lender pursuant to this Section 12.1.3(a) shall be addressed to such Secured Lender at its address last furnished to the City. The period within which a Secured Lender may cure a particular Event of Monetary Default or Event of Non - Monetary Default shall not commence until the City has sent to the Secured Lender such copy of the applicable Notice of Breach or Hearing Notice. (b) After a Secured Lender has received a copy of such Notice of Default or Hearing Notice, such Secured Lender shall thereafter have a period of time (in addition to any notice and /or cure period afforded to School under this Agreement) equal to: (a) ten (10) business days in the case of any Event of Monetary Default and (b) thirty (30) days in the case of any Event of Non - Monetary Default, during which period the Secured Lender may provide a remedy or cure of the applicable Event of Monetary Default or may provide a remedy or cure of the applicable Event of Non - Monetary Default; provided that if the cure of the Event of Non - Monetary Default cannot reasonably be completed within thirty days, Secured Lender may, within such 30 -day period, commence to cure the same and thereafter diligently prosecute such cure to completion (a "Secured Lender's Cure Period "). I£ School has caused an Event of Monetary Default or an Event of Non - Monetary Default, then each Secured Lender shall have the right to remedy such Event of Monetary Default or an Event of Non - Monetary Default, as applicable, or to cause the same to be remedied prior to the conclusion of the Secured Lender's Cure Period and otherwise as herein provided. The City shall accept performance by any Secured Lender of any covenant, condition, or agreement on School's part to be performed hereunder with the same force and effect as though performed by School. (c) The period of time given to the Secured Lender to cure any Event of Monetary Default or an Event of Non - Monetary Default by School which reasonably requires that said Secured Lender be in possession of the Property to do so, shall be deemed extended to include the period of time reasonably required by said Secured Lender to obtain such possession (by foreclosure, the appointment of a receiver or otherwise) promptly and with due diligence; provided that during such period all other 22000/Docs /Crossroads DA 06.14.13 Page 32 obligations of school under this Agreement, including, without limitation, payment of all amounts due, are being duly and promptly performed. 12.1.4 Secured Lender Not Obligated Under this Agreement. (a) No Secured Lender shall have any obligation or duty under this Agreement to perform the obligations of School's or the affirmative covenants of School's hereunder or to guarantee such performance unless and until such time as a Secured Lender takes possession or becomes the owner of the estate covered by its Mortgage. If the Secured Lender takes possession or becomes the owner of any portion of the Property, then from and after that date, the Secured Lender shall be obligated to comply with all provisions of this Agreement; provided that the Secured Lender shall not be responsible to the City for any unpaid monetary obligations of School that accrued prior to the date the Secured Lender became the fee owner of the Property. (b) Nothing in Section 12.1.4(a) is intended, nor should be construed or applied, to limit or restrict in any way the City's authority to terminate this Agreement, as against any Secured Lender as well as against School if any curable Event of Monetary Default or an Event of Non - Monetary Default is not completely cured within the Secured Lender's Cure Period. ARTICLE 13 TRANSFERS AND ASSIGNMENTS 13.1 Transfers and Assignments. 13.1.1 Not Severable from Ownership Interest in Property. This Agreement shall not be severable from School's interest in the Property and any transfer of the Property or any portion thereof shall automatically operate to transfer the benefits and burdens of this Agreement with respect to the transferred Property or transferred portions, as applicable. 13.1.2 Transfer Rights. School may freely sell, transfer, exchange, hypothecate, encumber or otherwise dispose of its interest in the Property, without the consent of the City. School shall, however, give written notice to the City, in accordance with Section 15. 1, of any transfer of the Property, disclosing in such notice (a) the identity of the transferee of the Property (the "Property Transferee ") and (b) the address of the Property Transferee as applicable. 13.2 Release Upon Transfer. Upon the sale, transfer, exchange or hypothecation of the rights and interests of School to the Property, School shall be released from its obligations under this Agreement to the extent of such sale, transfer or exchange with respect to the Property if : (a) School has provided written notice of such transfer to City; and (b) the Property Transferee executes and delivers to City a written agreement in which the Property Transferee expressly and unconditionally assumes all of the obligations of School under this Agreement with respect to the Property in the form of Exhibit "I" attached hereto (the "Assumption Agreement "). Upon such transfer of 22000 /Dots /Crossroads DA 06.14.13, Page 33 the Property and the express assumption of School's obligations under this Agreement by the transferee, the City agrees to look solely to the transferee for compliance with the provisions of this Agreement. Any such transferee shall be entitled to the benefits of this Agreement as "School" hereunder and shall be subject to the obligations of this Agreement. Failure to deliver a written Assumption Agreement hereunder shall not affect the transfer of the benefits and burdens as provided in Section 13. 1, provided that the transferor shall not be released from its obligations hereunder unless and until the executed Assumption Agreement is delivered to the City. ARTICLE 14 INDEMNITY TO CITY 14.1 Indemnity. School agrees to and shall defend, indemnify and hold harmless the City, its City Council, boards and commissions, officers, agents, employees, volunteers and other representatives (collectively referred to as "City Indemnified Parties ") from and against any and all loss, liability, damages, cost, expense, claims, demands, suits, attorney's fees and judgments (collectively referred to as "Damages "), including but not limited to claims for damage for personal injury (including death) and claims for property damage arising directly or indirectly from the following: (1) for any act or omission of School or those of its officers, board members, agents, employees, volunteers, contractors, subcontractors or other persons acting on its behalf (collectively referred to as the "School Parties ") which occurs during the Term and relates to this Agreement; (2) for any act or omission related to the operations of School Parties, including but not limited to the maintenance and operation of areas on the Property accessible to the public. School's obligation to defend, indemnify and hold harmless applies to all actions and omissions of School Parties as described above caused or alleged to have been caused in connection with the Project or Agreement, except to the extent any Damages are caused by the active negligence or willful misconduct of any City Indemnified Parties. This Section 14.1 applies to all Damages suffered or alleged to have been suffered by the City Indemnified Parties regardless of whether or not the City prepared, supplied or approved plans or specifications or both for the Project. 14.2 City's Right to Defense. The City shall have the right to approve legal counsel retained by School to defend any claim, action or proceeding which School is obligated to defend pursuant to Section 14. 1, which approval shall not be unreasonably withheld, conditioned or delayed. If any conflict of interest results during the mutual representation of the City and School in defense of any such action, or if the City is reasonably dissatisfied with legal counsel retained by School, the City shall have the right (a) at School's costs and expense, to have the City Attorney undertake and continue the City's defense, or (b) with School's approval, which shall not be reasonably withheld or delayed, to select separate outside legal counsel to undertake and continue the City's defense. 22000/Does /Crossroads DA 06.14.13 Page 34 ARTICLE 15 GENERAL PROVISIONS 15.1 Notices. Formal notices, demands and communications between the Parties shall be deemed sufficiently given if delivered to the principal offices of the City or School, as applicable, by (i) personal service, or (ii) express mail, Federal Express, or other similar overnight mail or courier service, regularly providing proof of delivery, or (iii) registered or certified mail, postage prepaid, return receipt requested, or (iv) facsimile (provided that any notice delivered by facsimile is followed by a separate notice sent within twenty -four (24) hours after the transmission by facsimile delivered in one of the other manners specified above). Such notice shall be addressed as follows: To City: City of Santa Monica 1685 Main Street, Room 204 Santa Monica, CA 90401 Attention: City Manager Fax: (310) 917 -6640 With a Copy to: City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attn: Planning and Community Development Director Fax: (310) 458 -3380 To School: Crossroads School for Arts and Sciences 1714 21s` Street Santa Monica, CA. 90404 Attn: Director of Finance and Operations Fax: 310.828.5636 With a Copes: Harding, Larmore, Kutcher & Kozal 1250 Sixth Street, Suite 200 Santa Monica, California 90401 Attn: Christopher M. Harding Fax: (310) 392 -3537 Notice given in any other manner shall be effective when received by the addressee. Any Party may change the addresses for delivery of notices to such Party by delivering notice to the other Parry in accordance with this provision. 15.2 Entire Agreement; Conflicts. This Agreement represents the entire agreement of the Parties. This Agreement integrates all of the terms and conditions 22000/Docs /Crossroads DA 06.14.13 Page 35 mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the Parties or their predecessors in interest with respect to all or any part of the subject matter hereof. Should any or all of the provisions of this Agreement be found to be in conflict with any other provision or provisions found in the Existing Regulations, then the provisions of this Agreement shall prevail. 15.3 Binding Effect. The Parties intend that the provisions of this Agreement shall constitute covenants which shall run with the land comprising the Property during the Term for the benefit thereof and that the burdens and benefits thereof shall bind and inure to the benefit of all successors -in- interest to the Parties hereto. Every Party who now or hereafter owns or acquires any right, title, or interest in or to any portion of the Project during the Term is and shall be conclusively deemed to have consented and agreed to every provision contained herein, to the extent relevant to said right, title or interest, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project. 15.4 Agreement Not for Benefit of Third Parties. This Agreement is made and entered into for the sole protection and benefit of School and the City and their respective successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 15.5 No Partnership or Joint Venture. Nothing in this Agreement shall be deemed to create a partnership or joint venture between the City and School or to render either Party liable in any manner for the debts or obligations of the other. 15.6 Estoppel Certificates. Either Party may, at any time, and from time to time, deliver written notice to the other Party requesting such Party to certify in writing (each, an "Estoppel Certificate "): (a) that this Agreement is in full force and effect, (b) that this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (c) whether or not, to the knowledge of the responding Party, the requesting Party is in Breach or claimed Breach in the performance of its obligations under this Agreement, and, if so, describing the nature and amount of any such Breach or claimed Breach, and (d) whether or not, to the knowledge of the responding Party, any event has occurred or failed to occur which, with the passage of ; time or the giving of notice, or both, would constitute an Event of Monetary Default or an Event of Non - Monetary Default and, if so, specifying each such event. A Party receiving a request for an Estoppel Certificate shall execute and return such Certificate within thirty (30) days following the receipt of the request therefor. If the party receiving the request hereunder does not execute and return the certificate in such 30 -day period and if circumstances are such that the Party requesting the notice requires such notice as a matter of reasonable business necessity, the Party requesting the notice may seek a second request which conspicuously states "FAILURE TO EXECUTE THE REQUESTED ESTOPPEL CERTIFICATE WITHIN FIFTEEN (15) DAYS SHALL BE DEEMED WAIVER PURSUANT TO SECTIONS 15.6 AND 15.13 OF THE DEVELOPMENT AGREEMENT' and which sets forth the business necessity for a timely response to the estoppel request. If the Party receiving the second request fails to execute the Estoppel Certificate within such 15 -day period, it shall be conclusively 22000/Docs /Crossroads DA 06.14.13 Page 36 deemed that the Agreement is in full force and effect and has not been amended or modified orally or in writing, and that there are no uncured defaults under this Agreement or any events which, with passage of time of giving of notice, of both, would constitute a default under the Agreement. The City Manager shall have the right to execute any Estoppel Certificate requested by School under this Agreement. The City acknowledges that an Estoppel Certificate may be relied upon by any Property Transferee, Secured Lender or other party. 15.7 Time. Time is of the essence for each provision of this Agreement of which time is an element. 15.8 Excusable Delays. 15.8.1 In addition to any specific provisions of this Agreement, non- performance by School of its obligations under this Agreement shall be excused when it has been prevented or delayed in such performance by reason of any act, event or condition beyond the reasonable control of School (collectively, "Excusable Delays ") for any of the following reasons: (a) War, insurrection, walk -outs, riots, acts of terrorism, floods, earthquakes, fires, casualties, acts of God, or similar grounds for excused performances; (b) Governmental restrictions or moratoria imposed by the City or by other governmental entities or the enactment of conflicting State or Federal laws or regulations; (c) The imposition of restrictions or moratoria by judicial decisions or by litigation, contesting the validity, or seeking the enforcement or clarification of, this Agreement whether instituted by School, the City or any other person or entity, or the filing of a lawsuit by any Party arising out of this Agreement or any permit or approval School deems necessary or desirable for the implementation of the Project; (d) The institution of a referendum pursuant to Govetxrment Code Section 65867.5 or a similar public action seeking to in any way invalidate, alter, modify or amend the ordinance adopted by the City Council approving and implementing this Agreement; (e) Inability to secure necessary labor, materials or tools, due to strikes, lockouts, or similar labor disputes; and (f) Failure of the City to timely perform its obligations hereunder, including its obligations under Section 7.2 above 15.8.2 Under no circumstances shall the inability of School to secure financing be an Excusable Delay to the obligations of School. 22000/Docs /Crossroads DA 06.14.13 Page 37 15.8.3 In order for an extension of time to be granted for any Excusable Delay, School must deliver to the City written notice of the commencement of the Excusable Delay within sixty (60) days after the date on which School becomes aware of the existence of the Excusable Delay. The extension of time for an Excusable Delay shall be for the actual period of the delay. 15.8.4 Nothing contained in this Section 15.8 is intended to modify the terms of either Section 5.1.2 or Section 5.5 of this Agreement. 15.9 Governing Law. This Agreement shall be governed exclusively by the provisions hereof and by the laws of the State of California. 15.10 Cooperation in Event of Legal Challenge to Agreement. If there is any court action or other proceeding commenced that includes any challenge to the validity, enforceability or any term or provision of this Agreement, then School shall indemnify, hold harmless, pay all costs actually incurred, and provide defense in said action or proceeding, with counsel reasonably satisfactory to both the City and School. The City shall cooperate with School in any such defense as School may reasonably request. 15.11 Attorneys' Fees. If any Party commences any action for the interpretation, enforcement, termination, cancellation or rescission of this Agreement or for specific performance for the Breach of this Agreement, the prevailing Party shall be entitled to its reasonable attorneys' fees, litigation expenses and costs. Attorneys' fees shall include attorneys' fees on any appeal as well as any attorneys' fees incurred in any post judgment proceedings to collect or enforce the judgment. Such attorneys' fees shall be paid whether or not such action is prosecuted to judgment. In any case where this Agreement provides that the City or School is entitled to recover attorneys' fees from the other, the Party so entitled to recover shall be entitled to an amount equal to the fair market value of services provided by attorneys employed by it as well as any attorneys' fees actually paid by it to third Parties. The fair market value of the legal services for public attorneys shall be determined by utilizing the prevailing billing rates of comparable private attorneys. 15.12 Recordation. The Parties shall cause this Agreement to be recorded against title to the Property in the Official Records of the County of Los Angeles. The cost, if any, of recording this Agreement shall be borne by School. 15.13 No Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought and referring expressly to this Section 15.13. No delay or omission by either Party in exercising any right or power accruing upon non - compliance or failure to perform by the other Party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either Party of any of the covenants or conditions to be performed by the other Party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof of this Agreement. 22000/Does /Crossroads DA 06.14.13 Page 38 15.14 Construction of this Agreement. The Parties agree that each Party and its legal counsel have reviewed and revised this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. 15.15 Other Governmental Approvals. School may apply for such other permits and approvals as may be required for development of the Project in accordance with this Agreement from other governmental or quasi - governmental agencies having jurisdiction over the Property. The City shall reasonably cooperate with School in its endeavors to obtain such permits and approvals. 15.15.1 Further Assurances; Covenant to Sign Documents. Each Party shall take all actions and do all things, and execute, with ackrrowledgment or affidavit, if required, any and all documents and writings, which may be necessary or proper to achieve the purposes and objectives of this Agreement. 15.15.2 Processing. Upon satisfactory completion by School of all required preliminary actions and payments of appropriate processing fees, if any, the City shall, subject to all legal requirements, promptly initiate, diligently process, and complete at the earliest possible time all required steps, and expeditiously act upon any approvals and permits necessary for the development by School of the Project in accordance with this Agreement, including, but not limited to, the following: (a) the processing of applications for and issuing of all Discretionary Approvals requiring the exercise of judgment and deliberation by City; (b) the holding of any required public hearings; and (c) the processing of applications for and issuing of all City Technical Permits requiring the determination of conformance with the Existing Regulations. 15.15.3 No Revocation. The City shall not revoke or subsequently disapprove any approval or future approval for the development of the Project or the Property once issued by the Cityprovided that the development of the Project or the Property is in accordance with such approval. Any disapproval by the City shall state in writing the reasons for such disapproval and the suggested actions to be taken in order for approval to be granted. 15.15.4 Processing During Third Party Litigation. If any third party lawsuit is filed against the City or School relating to this Agreement or to other development issues affecting the Property, the City shall not delay or stop the development, processing or construction of the Property, or issuance of the City Technical Permits, unless the third party obtains a court order preventing the activity. The City shall not stipulate to or fail to oppose the issuance of any such order. Notwithstanding the foregoing and without prejudice to the provisions of Section 15.8(c), after service on the City or School of the initial petition or complaint challenging this Agreement or the Project, the School may apply to the Planning Director for a tolling of 22000 /Does /Crossroads DA 06.14.13 Page 39 the applicable deadlines for School to otherwise comply with this Agreement. Within 40 days after receiving such an application, the Planning Director shall either toll the time period for up to five years during the pendency of the litigation or deny the requested tolling. 15.15.5 State, Federal or Case Law. Where any state, federal or case law allows the City to exercise any discretion or take any act with respect to that law, the City shall, in an expeditious and timely manner, at the earliest possible time, (i) exercise its discretion in such a way as to be consistent with, and carry out the terms of, this Agreement and (ii) take such other actions as may be necessary to carry out in good faith the terms of this Agreement. 15.16 Venue. Any legal action or proceeding among the Parties arising out of this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, in any other appropriate court in that County, or in the Federal District Court in the Central District of California. 15.17 Exhibits. The following exhibits which are part of this Agreement are attached hereto and each of which is incorporated herein by this reference as though set forth in full: Exhibit "A" Legal Description of the Property Exhibit `B" Project Plans Exhibit "C" Permitted Fees and Exactions Exhibit "D" Conditions of Approval Exhibit "E" SMMC Article 9 (Planning and Zoning) Exhibit "F" Bike Path Easement Area Exhibit "G" [Reserved] Exhibit "H" Construction Mitigation Plan Exhibit "I" Assignment and Assumption Agreement Exhibit Ili" Interim Modules Plan Except as to the Project Plans (attached hereto as Exhibit B) which shall be treated in accordance with Section 2.1 above, the text of this Agreement shall prevail in the event that any inconsistencies exist between the Exhibits and the text of this Agreement. 15.18 Counterpart Signatures. The Parties may execute this Agreement on separate signature pages which, when attached hereto, shall constitute one complete Agreement. 15.19 Certificate of Performance. Upon the completion of the Project, or any phase thereof, or upon performance of this Agreement or its earlier revocation and termination, the City shall provide School, upon School's request, with a statement 22000/Docs /Crossroads DA 06.14.13 Page 40 ( "Certificate of Performance ") evidencing said completion, termination or revocation and the release of School from further obligations hereunder, except for any further obligations which survive such completion, termination or revocation. The Certificate of Performance shall be signed by the appropriate agents of School and the City and shall be recorded against title to the Property in the official records of Los Angeles County, California. Such Certificate of Performance is not a notice of completion as referred to in California Civil Code Section 3093. 15.20 Interests of School. School represents to the City that, as of the Effective Date, it has a legal or equitable interest in the Property, subject to encumbrances, easements, covenants, conditions, restrictions, and other matters of record. 15.21 Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between the City and School. During the Term of this Agreement, clarifications to this Agreement and the Existing Regulations may be appropriate with respect to the details of performance of the City and School. If and when, from time to time, during the term of this Agreement, the City and School agree that such clarifications are necessary or appropriate, they shall effectuate such clarification through operating memoranda approved in writing by the City and School, which, after execution, shall be attached hereto and become part of this Agreement and the same may be further clarified from time to time as necessary with future written approval by the City and School. Operating memoranda are not intended to and cannot constitute an amendment to this Agreement but mere ministerial clarifications, therefore public notices and hearings shall not be required for any operating memorandum. The City Attorney shall be authorized, upon consultation with, and approval of, School, to determine whether a requested clarification may be effectuated pursuant to the execution and delivery of an operating memorandum or whether the requested clarification is of such character to constitute an amendment of this Agreement which requires compliance with the provisions of Section 8.1 above. The authority to enter into such operating memoranda is hereby delegated to the City Manager and the City Manager is hereby authorized to execute any operating memoranda hereunder without further action by the City Council. 15.22 Acknowledgments, Agreements and Assurance on the Part of School. 15.22.1 School's Faithful Performance. The Parties acknowledge and agree that School's faithful performance in developing the Project on the Property and in constructing and installing certain public improvements pursuant to this Agreement and complying with the Existing Regulations will fulfill substantial public needs. The City acknowledges and agrees that there is good and valuable consideration to the City resulting from School's assurances and faithful performance thereof and that same is in balance with the benefits conferred by the City on the Project. The Parties further acknowledge and agree that the exchanged consideration hereunder is fair, just and reasonable. School acknowledges that the consideration is reasonably related to the type and extent of the impacts of the Project on the community and the Property, and further acknowledges that the consideration is necessary to mitigate the direct and indirect impacts caused by School on the Property. 22000/Does /Crossroads DA 06.14.13 Page 41 15.22.2 Obligations to be Non - Recourse. As a material element.of this Agreement, and in partial consideration for School's execution of this Agreement, the Parties each understand and agree that the City's remedies for breach of the obligations of School under this Agreement shall be limited as described in Sections 11.2 through 11.4 above. 15.23 Not a Public Dedication. Nothing in this Agreement shall be deemed to be a gift or dedication of the Property, or of the Project, or any portion thereof, to the general public, for the general public, or for any public use or purpose whatsoever, it being the intention and understanding of the Parties that this Agreement be strictly limited to and for the purposes herein expressed for the development of the Project as private property. School shall have the right to prevent or prohibit the use of the Property, or the Project, or any portion thereof, including common areas and buildings and improvements located thereon, by any person for any purpose inimical to the development of the Project, including without limitation to prevent any person or entity from obtaining or accruing any prescriptive or other right to use the Property or the Project. Any portion of the Property to be conveyed to the City by School as provided in this Agreement, shall be held and used by the City only for the purposes contemplated herein or otherwise provided in such conveyance, and the City shall not take or permit to be taken (if within the power or authority of the City) any action or activity with respect to such portion of the Property that would deprive School of the material benefits of this Agreement or would materially and unreasonably interfere with the development of the Project as contemplated by this Agreement. 15.24 Other Agreements. The City acknowledges that certain additional agreements may be necessary to effectuate the intent of this Agreement and facilitate development of the Project. The City Manager or his /her designee is hereby authorized to prepare, execute, and record those additional agreements. 15.25 Severability and Termination. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, or if any provision of this Agreement is superseded or rendered unenforceable according to any law which becomes effective after the Effective Date, the remainder of this Agreement shall be effective to the extent the remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. This Agreement is executed by the Parties on the date first set forth above and is made effective on and as of the Effective Date. SCHOOL: THE CROSSROADS SCHOOL FOR ARTS AND SCIENCES, a California nonprofit corporation By: DRAFT Name: 22000/Does /Crossroads DA 06.14.13 Page 42 Title 3J Y 11'1 CITY OF SANTA MONICA, a municipal corporation By: DRAFT Name: Title: /ArWIDIb11 By: DRAFT Name: City Clerk APPROVED AS TO FORM: By: DRAFT Name: City Attorney 22000/Docs /Crossroads DA 06.14.13 Page 43 Approved and adopted this 9th day of July, 2013. Pam O'Connor, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2430 (CCS) had its introduction on June 25, 2013, and was adopted at the Santa Monica City Council meeting held on July 9, 2013, by the following vote: Ayes: Councilmembers: Vazquez, Winterer Mayor Pro Tern O'Day, Mayor O'Connor Noes: Councilmembers: None Absent: Councilmembers: Davis, Holbrook, McKeown, A summary of Ordinance No. 2430 (CCS) was duly published pursuant to California Government Code Section 40806. ATTEST: Sarah P. Gorman, City Clerk