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1997 Stamko Development - Development Agreement319682 RECEIVED FOR RECORD RECORDING REQUESTED BY ) AT 8:00 O'CLOCK AND WHEN RECORDED MAIL TO ) AND MAIL TAX STATEMENTS TO: ) SEP - 31997 City of La Quinta ) Receded m o„,ay RaoWs 78-495 Calle Tampico of R"°"'d° `OY"". cal''0i"" z La Quinta, California 92253 ) Recorder Attn: City Clerk ) Fees $ (Space above for Recorder's Use) M DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF LA QUINTA, STAMKO DEVELOPMENT CO. AND JUVONEN LIVING TRUST devagm2 319682 Table of Contents RECITALS 2 DEFINITIONS 4 1.1 Authorizing Ordinance 4 1.2 City 4 1.3 Conditional Use Permit (CUP) ....................................... 4 1.4 Developer ........................................................ 4 1.5 Development ... ; 4 1.6 Development Agreement Statute ...................................... 5 .1.7 Development Approval(s) or Approval(s) ............................... 5 1.8 Effective Date 5 1.9 Existing Rules .................................................... 5 1.10 Final Development Plan ............................................. 5 1.11 General Plan 5 1.12 Owner 5 1.13 Phase 1 5 1.14 Phase 11 5 1.15 Phase 111 5 1.16 Partial Owner 6 1.17 Project .......................................................... 6 1.18 Project Site ....................................................... 6 1.19 Public Improvements 6 2. EXHIBITS 6 3. GENERAL PROVISIONS 6 3.1 Property Subject to the Agreement .................................... 6 3.2 Duration of Agreement ............................................. 7 3.3 Assignment 7 3.3.1 Assignment Without Notice to City .............................. 7 3.3.2 Assignment Upon Notice to City ................................ 8 3.4 Amendment or Cancellation of Agreement .............................. 8 3.5 Implementation Memoranda; Amendment to Developer Lease Agreement ..... 8 3.6 Unforeseen Circumstances 9 3.7 Enforcem-.nt of Agreement ......................................... 10 3.8 Hold Harmless ............................................10 3.9 Binding Effect of Agreement ........................................ 10 3.10 Relationship of Parties ............................................. 11 3.11 Notices .......................II devagm2 319682 4. REGULATION OF DEVELOPMENT 4.1 11 Rules, Regulations, Official policies ("Existing Rules") ................... 11 4.2 Limitations, Reservations and Exceptions ("Reservations of Authority") ...... 12 4.2.1 Application of Subsequently Enacted Rules, Regulations and Official Policies................................................ 12 4.2.2 Application of Subsequently Revised or Adopted Fees and/or Improvement Standards .................................. 12 4.2.3 State and Federal Laws, Regulations and Decisions ................ 12 4.2.4 Public Health and Safety ..................................... 13 4.2.5 Future Discretionary Reviews .................. 13 4.2.6 Full Extent of Law 4.3 .......... ....... .... Assurances to Developer Regarding Exercise of Reservations of Authority .... 14 14 4.3.1 Adoption of General Plan and Preliminary Development Plans; Further Approvals and CEQA Compliance ............................. 14 4.3.2 Administrative Findings and Burden of Proof ..................... ............ 15 4.4 Vested Rights ............................................... 15 4.5 Referenda and Moratorium ......................................... 15 5. DEVELOPMENT OF THE PROPERTY ............................... 16 5.1 ...16 Permitted Uses 5.2 ....................................... ........ • • Phase I, II, and III Buildings 5.3 .................................... Permitted Density, Height and Size of Development ..................... 16 17 5.3.1 Site Development Requirements Which Exceed Standard Development Requirement .............................................. 17 5.4 Phasing of Construction ............................................ 5.4.1 Phasing of Construction 17 ...................................... 5.4.2. Developer.......... 17 .......................................17 5.4.3 City ......................................................18 5.4.4 Completion of Project ....................................... 18 6. PUBLIC IMPROVEMENTS DEVELOPMENT ............................... 18 6.1 Public Improvement Facilities and Services ........................ 18 6.2 Reservation and Dedications of Land .............................. 19 6.3 Focused Traffic Study ........................................... 19 6.4 Payment of Fees ............................... .. ............. 6.4.1 Transportation System Improvement Program (TSIP): 19 [This section reserved] ................................... 19 6.4.2 Fire Protection Facilities: [This section reserved] ....................................... 19 6.4.3 Capital Facilities: [This section reserved] ....................................... 19 6.4.4 Shortfall Fee: [This section reserved] ....................................... 19 devagm2 u 329682 7. TAXES, ASSESSMENTS, ENCUMBRANCES AND LIENS ................... 20 7.1 Taxes, Assessments, Encumbrances, and Liens ......................... 20 8. INSURANCE .................................. . 20 8.1 Insurance ....................... 20 8.1.1 Compensation Insurance ... ............... . 20 8.1.2 Public Liability and Property Damage Insurance ................... 20 8.2 Evidence of Insurance ............................................. 20 9. ANNUAL REVIEW • 9.1 City and Developer Responsibilities • • • • • • • • .. 20 9.2 Information to be Provided B ' ' ' ' ' ' . • • • • • • • • . 20 y Developer .............................. 21 9.3 Findings..........................21 9.4 Failure of Annual Review ....... 21 9.5 Periodic Review/Progress Reports .................................... 21 10. ESTOPPEL CERTIFICATES ............................................. 22 10.1 Estoppel Certificates ............................................. 22 11. ENFORCED DELAY, DEFAULT, REMEDIES AND TERMINATION ........... 22 11.1 General Provisions 22 11.1.1 Option to Institute Legal Proceedings or to Terminate ...... 73 11.1.2 Notice of Termination ...................... . 23 11.1.3 Waiver •.•."•."".•. 23 11.2 Enforced Delay, Extension of Time of Performance . . 23 11.3 Institution of Legal Action .......... • .. • . . . . . . . . . . . . . . . . . 24 11.4 Remedies Available to Developer .. • • . • . • . • • .. 24 11.5 Remedies Available to City ......................................... 25 12. ENCUMBRANCES AND RELEASES ON REAL PROPERTY: ................. 25 12.1 Discretion to Encumber ... 25 12.2 Entitlement to Written Notice of Default .... 25 12.3 Property Subject to Pro Rata Claims .................................. 25 13. MISCELLANEOUS PROVISIONS ..... 25 13.1 Rules of Construction ....................................... . Party Beneficiaries ........ ......' . • • • • ... 26 13.2 No Third 13.3 Third P................................26 Party Fees/Administrative Costs: [This section reserved] ............ 26 13.4 Project is a Private Undertaking .............. . 26 13.5 Incorporation of Recitals ........................ . 26 13.6 Restrictions 26 13.7 Recording.......................................................26 devagm2 iii 13.8 Severability.....................................................26 13.9 Entire Agreement, Waivers and Amendments ............. ............. 27 EXHIBITS Exhibit A Exhibit A-1 Exhibit A-2 Exhibit B Exhibit C Exhibit D Exhibit E Project Site Property Description Developer Lease Agreement Specific Plan Conditional Use Permit devagm2 iv 319682 DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (hereinafter referred to as "Agreement") is made and entered into this /5-'day of u l , 1997, by and between the CITY OF LA QUINTA, a charter city (the "City"), STAMKO EVELOPMENT CO., a California limited partnership ("Developer") and the JUVONEN LIVING TRUST, a California trust ("Partial Owner"). City and Developer are hereinafter sometimes referred to individually as a "Party" and collectively as the "Parties". RECITALS This Agreement is predicated upon the following facts: A. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Government Code Sections 65864 through 65869.5 (the "Development Agreement Statute".) which authorized City to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property and for the purpose of establishing certainty for both the City and the Developer in the development process. B. The City is a charter city located in the County of Riverside, State of California. The City enters into this Agreement pursuant to the authority granted by the Development Agreement Statute and the La Quinta Charter and Municipal Code Sections 9.250.010, et seq. C. The Developer is the owner in fee of certain real property located in the City of La Quinta (the "Project Site") which is designated in Exhibit "A", attached hereto and incorporated herein. The Project Site consists of approximately 87 acres and is located on the southeast comer of Highway I I I and Adams Street. The Legal Description for the property depicted in the Project Site (the "Property") is set out in Exhibit "B" attached hereto and incorporated herein by this reference. Developer warranfs and represents to the City that it has the full power and authority to enter into this Agreement, that all authorizations required to make this Agreement binding upon the Developer have been obtained and that each person executing this Agreement on behalf of Developer has been fully authorized 'to do so by Developer. D. The Parties desire to enter into this Agreement relating to the Property in conformance with the Development Agreement Statute, City Charter and Municipal Code and applicable City rules, regulations and official policies to achieve the development of the Project (as defined in Section 1.15 of this Agreement) as permitted under Section 5 of this Agreement and to provide, improve, construct, dedicate, convey or contribute toward certain public services, facilities, lands and infrastructure improvements pursuant to Section 6 herein (the "Public Improvements"), all in the promotion of the health, safety and general welfare of the City. devagm2 319682 E. Developer wishes to develop the Project and the Public Improvements in exchange for the assurances herein provided from City that Developer will be permitted to implement such development in accordance with the terms and conditions set forth in this Agreement including but not limited to the "Developer -Lease Agreement" which is set out in Exhibit "C" attached hereto and incorporated herein by this reference. F. City wishes to ensure the provision of the Public Improvements and desires to use this Agreement, including the "Developer Leasehold Agreement" (Exhibit "C") and the development rights and entitlements granted herein and pursuant hereto to achieve enhanced and accelerated time frames for construction of said Public Improvements. G. It is the intent of the Parties that on execution of this Agreement Developer shall be obligated to complete the Public Improvements in the manner set forth herein and that Developer will be entitled to proceed with the Project subject to the approved Specific Plan 97-029 and Conditional Use Permit 97-034 attached hereto and incorporated herein as "D" and "E", respectively, in accordance with this Agreement and with City's rules, regulations and official policies governing permitted uses, density, design, improvement and construction standards and specifications in force on the effective date of this Agreement. H. The Parties acknowledge that the Project, which will be built in three (3) phases of several years each, will cause adverse impacts on City's traffic conditions and on levels of public services and facilities within City and that City has imposed mitigation measures pursuant to the Environmental Impact Report approved by City on 7- /5 -`% 7 as a condition to issuing Development Approvals in connection with the development of the Project in order to mitigate such impacts. I. In order for both City and Developer to achieve their respective objectives, it is necessary that each be as certain as possible that Developer will develop and that City will permit Developer to develop the Project and to construct or contribute to the construction of the Public Improvements as set forth in Exhibit "C" and the terns of this Agreement as approved by City within the time frames set forth in this Agreement. J. City and Developer will use their best efforts to assure each other that all applications for and approvals of grading permits, building permits or other Development Approvals necessary for Developer to develop the Project in accordance with this Agreement are sought and processed in a timely manner. K. On July 8, 1997, the Planning Commission of the City of La Quinta (the "Planning Commission"), after giving notice pursuant to Government Code Sections 65854, 65854.5 and 65866 held a public hearing on Developer's application for this Agreement. On July 15, 1997, the City Council of the City of La Quinta ("City Council"), after providing public notice as required by law, similarly held a public hearing to consider Developer's application for this Agreement. devagm2 6 329682 L. The Planning Commission and the City Council have found that the Agreement is consistent with the General Plan and all other applicable plans, rules, regulations and official policies of the City of La Quints. M. In accordance with the requirements of the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., ("CEQA")), appropriate studies, analysis, reports or documents were prepared and considered by the Planning Commission and the City Council. The City Council, after making appropriate findings, certified, by Resolution No. ,76aadopted on -/5-?7 an Environmental Impact Report for the Project in compliance with CEQA. N. On —J-u /y a, /, I M , the City Council adopted Ordinance No. 306, approving this Agreement with Developer. The Ordinance takes effect on DEFINITIONS: In this Agreement, unless the context otherwise requires: 1.1 Authorizing Ordinance: "Authorizing Ordinance" means Ordinance No. 300 approving this Agreement. 1.2 may: "City" means the City of La Quinta, a charter city duly organized and existing under the laws of the State of California. The "City" also means the geographic area within the boundaries of the City. 1.3 Conditional Use Permit (CUP): "Conditional Use Permit" or "CUP" means Conditional Use Permit 97-034 recommended for approval by the Planning Commission at its meeting of July 8, 1997, and approved by the City Council at its meeting on �y (y / 6 QQ7 1.4 Developer: "Developer" means Stamko Development Co., and/or its successors in interest, which shall develop and operate the Project as described in Section 3.1 pursuant to the terms of Section 3.3 of this Agreement. 1.5 Developer: "Development" or "development" means the improvement of the Property for purposes of cogstructing the structures, improvements and facilities comprising the Project and the Public Improvements as set forth in this Agreement, including, without limitation: grading, the construction of infrastructure and public facilities relating to the Project and the Public Improvements whether located within or outside the Property; the construction of any structure; and the installation of any landscaping. 1.6 Development Agmement Statute: "Development Agreement Statute" means California Government Code Sections 65864 through 65869.5 as it exists on the date of the execution of this Agreement. devagm2 7 319682 1.7 Development AFFrovaJU or nproval� ): "Development Approval(s)" or "Approval(s)" means site specific plans, maps, permits and other land use entitlement of every kind and nature approved or granted by City in connection with the development of the Property and consistent with this Agreement, including, but not limited to: site plans, tentative and final subdivision tract maps, vesting tentative maps, parcel maps, conditional use permits, and grading, building and other similar permits, maps, plans, licenses and entitlements. To the extent any such site specific plans, maps, permits and entitlements are amended from time to time, "Development Approvals" or "Approvals" shall include, if the Parties agree in writing, such matters as so amended. If this Development Agreement is required by law to be amended, the "Development Approvals" shall include such amendment only if and to the extent that this Agreement is so amended. 1.8 Effective Date: "Effective Date" means the date the Authorizing Ordinance becomes effective. 1.9 Existing Rules: "Existing Rules" means those rules, regulations and official policies as defined in Section 4.1 of this Agreement. 1.10 Final Development Plan: "Final Development Plan" means a final set of complete working drawings for each building to be constructed on the Property, approved by City through the building plan check phase in City's development approval process. 1.11 General Plan: "General Plan" means the General Plan of City. [1.12 Owner: "Owner means Stamko Development Co., a California limited partnership, and the Juvonen Living Trust, a California trust.] 1.13 Phase I: "Phase I" means Phase I of the Project as defined in Section 5.4.1 of this Agreement. 1.14 Phasej: "Phase II" means Phase II of the Project as defined in Section 5.4.1 of this Agreement. 1.15 Ph=11 : "Phase III" means Phase III of the Project as defined in Section 5.4.1 of this Agreement. 1.16 Partial Owner: "Partial Owner" means the Juvonen Living Trust which is owner of a portion of the Project Site consisting of approximately 4.9 acres in the corner bounded by Highway I I I and Adams Street. It is the understanding of the parties that the Partial Owner shall sell its interest to the Developer prior to construction commencing on Phase I. devagm2 8 319682 1.17 Proiect: "Project" means the development of up to 9 auto dealer pads of up to 275,000 square feet with an alternative for two of the pads to be used as auto related commercial uses and a total of approximately 400,000 square feet of adjacent commercial including retail/entertainment, restaurant and up to a maximum of 100,000 square feet of office uses, containing more than sufficient parking spaces to comply with City parking standards in conformance with the terms and limitations of this Agreement, and as more particularly represented in the Site Plan attached hereto as Exhibit "A", the development of which shall include all mitigation measures (on -site and off -site) imposed as part of the CEQA review process, and as conditions to the issuance of Development Approvals, including, but not limited to the Specific Plan and Conditional Use Permit, consistent with this Agreement. 1.18 eject Site: "Project Site" means the real property on which the Project will be developed consisting of approximately 87 acres as designated in Exhibit "A". 1.19 Public Improvements: "Public Improvements" means those certain lands, facilities and services to be improved, constructed, dedicated, conveyed or provided and amounts to be paid by Developer to the public pursuant to Section 6 and the Developer Lease Agreement (Exhibit "C"). 2. EXHIBITS: The following documents are referred to in this Agreement, and attached hereto and are incorporated herein as though set forth in full: A. Project Site B. Property Description C. Developer Lease Agreement D. Specific Plan E. Conditional Use Permit ATM OilCOCGURN 3.1 Proms Subject to the A m n : The real property which is the subject of this Agreement (the "Property") is approximately 87 acres. It will be developed in three phases as shown on the Project Site (Exhibit "A"). Phase I has approximately 33 acres, Phase II has approximately 15 acres and Phase III has approximately 39 acres. The legal description of the Property is attached hereto as the "Property Description" (Exhibit "B"). devagm2 9 319682 3.2 Duration of AYr m n : The term of this Agreement shall be thirteen (13) years, commencing upon the Effective Date of Ordinance No. . o(O approving this Agreement and authorizing its execution and shall expire on Quc�as� a o , 201 o ' unless otherwise terminated, modified or extended by written mutual agreement pursuant to the terms of this Agreement. Following the expiration of the term of this Agreement, this Agreement shall be deemed to be terminated without the need for further documentation from the Parties. The expiration or termination of this Agreement shall not affect any right conferred or duty imposed by Development Approvals for the Project which were approved prior to, concurrently, with or subsequent to the approval of this Agreement. 3.3 AOiElimgIIt: The rights, interest and obligations of Developer under this Agreement may be transferred or assigned, only in accordance with the terms of Section 3.3.1 or Section 3.3.2 as set forth, herein below. Any such transfer or assignment may be made only together with and as an incident of the transfer, assignment, financing, sale or lease of all or a portion of the Project Site. During the term of this Agreement and as provided in Section 3.10, any transferee or assignee shall be bound by this Agreement and shall observe and perform all of the duties and obligations of Developer and shall have all of the same rights, benefits and interests of Developer contained herein as such duties, obligations, rights, benefits and interests pertain to the portion of the Project Site so transferred or assigned. City shall have no duty or obligation of any kind or nature to maintain a record of such transfers or assignments of all or any portion of the Project Site or the concomitant duties, obligations, rights, benefits or interests relating thereto or to notify or advise prospective or actual transferees or assignees or others of such assignments or the resulting allocations of duties, obligations, rights, benefits or interests under this Agreement with respect to the Project Site or portion thereof. Notwithstanding any ether provision of this Agreement, the Parties agree that the notice and hearing procedures of the Development Agreement Statute shall not apply to the transfer or assignment of all or any portion of this Agreement which is accomplished in conformity with Section 3.3.1 or Section 3.3.2. Any attempt to assign or transfer any right,. interest or obligation in this Agreement except in strict compliance with Section force and effect. 3.3.1 or 3.3.2, shall be null and void and of no 3.3.1 Assignment Wi to City. Notwithstanding the foregoing, Developer shall have no obligation to deliver notice to City or obtain City's prior written consent in connection with any conveyance or transfer to a bank, financial institution or other institutional lender for security purposes, or a trustee(s) under one or more deeds of interest in the Project, the Project Site or an�, of an equitable or legal y portion thereof, whether such conveyance or transfer is accomplished by means of a deed(s) of trust, security agreement(s) and/or other instrument(s). devagm2 10 329682 No additional approval by the City shall be necessary for the proposed transfer from the Juvonen Living Trust to Developer, nor from the transfers from the Developer to the Desert City Dealers pursuant to that certain Option and Purchase Agreement dated November 14, 1996 by and between Stamko Development Co. And Desert City Dealers. Further, concurrently with the transfer of the interest of Juvonen in the Property to Developer, Juvonen will assign to Developer all of its right, title and interest in and to this Agreement. Concurrently with the foregoing assignment, Juvonen will be relieved of any and all obligations under this Agreement, including, but not limited to, all duties and obligations under this Agreement. 3.3.2 Assignment Upgn Notice to City: Developer shall have the right to assign its duties, obligations, rights, benefits and interests under this Agreement pursuant to this Section 3.3.2 by obtaining City's prior written consent. In order to obtain City's consent, Developer shall deliver to City a notice at least thirty (30) days prior to any such proposed assignment or transfer. City may review the financial strength and stability and development capability and experience of the proposed transferee or assignee to determine whether such transferee or assignee provides adequate security to satisfy the duties and obligations under this Agreement as they pertain to the portion of the Project Site proposed to be so transferred or assigned or as otherwise approved by the City. Phase III approval is dependent upon a showing to the satisfaction of the City that a proposed assignee, has the financial strength and development capability to develop commercial/retail pursuant to the Specific Plan. Based upon said review, City shall not unreasonably withhold its consent to the proposed transfer or assignment. Failure by City to deny or consent to a proposed transfer or assignment pursuant to this Section 3.3.2 within thirty (30) days after receiving notice by Developer shall be deemed to constitute denial unless such period is extended by consent of the Developer. Following any transfer or assignment made in strict compliance with the terms of this Section 3.3.2, and upon the express assumption, in writing in form approved by the City Attorney, by such approved assignee of the applicable duties and obligations of Developer under this Agreement, Developer shall be relieved of and from further liability or responsibility for the obligations arising under this Agreement as they directly pertain to the portion of the Project Site so transferred or assigned so long as such obligations do not pertain to other portions of the Project Site; provided, however, that the Developer shall not be relieved of such liability or responsibility in the event the Developer is in default after notice and lapse of any applicable cure period of any of the terms of this Agreement. The original Developer shall only be responsible for defaults, with respect to the portion of the Project transferred, which occur prior to the date of transfer where such transfer has been approved by the City pursuant to this Section 3.3.2 or without the approval of the City in accordance with the provisions of Section 3.3.1. 3.4 Amendment or Cancellation of Ag m n : This Agreement may be amended, or canceled in whole or in part, by the mutual consent of the Parties, or their successors or assigns designated in accordance with Section 3.3, and the adoption of an ordinance in accordance with Government Code Sections 65867, 65867.5 and 65868, and the La Quinta Charter and Municipal Code Section 9.250.030. All amendments to this Agreement must be in writing signed by the appropriate authorities of City and Developer or their authorized successors or assigns, in a form suitable for recording in the Office of the Recorder, County of Riverside. devagm2 11 319682 3.5 Implementation Memoranda amendment to Developer Lease Ag env„+: The Parties acknowledge that from time to time it may be in the mutual interest of the Parties that certain details relative to performance of the Agreement be refined. Therefore, to the extent allowable by law, the Parties retain a certain degree of flexibility with respect to those provisions covered in general under this Agreement which do not relate to the term, permitted uses, density or intensity of use, height or size of buildings, provisions for reservation and dedication of land, conditions, terms, restrictions and requirements relating to subsequent discretionary actions, development of public improvement or monetary contributions by Developer or any conditions or covenants relating to the use of the Property. When and if the Parties find it necessary or appropriate to make changes or adjustments to such provisions, they shall effectuate changes or adjustments through implementation memoranda in recordable form approved by the Parties. in writing which reference this Section 3.5. Upon report to and approval by the City Council, the City Manager or his designee shall have the authority to approve the implementation memoranda pursuant to this Section on behalf of City. No implementation memoranda shall require notice or hearing or shall be deemed to constitute an amendment to this Agreement. Similarly, any amendments to the Developer Lease Agreement (Exhibit "C") which would meet the same criteria as the implementation memoranda set forth in this Section shall additionally not require notice, hearing or be deemed to constitute an amendment to this Agreement. The term "this Agreement" or "Development Agreement" herein shall include any amendment properly approved and executed pursuant to Section 3.4 and any changes or adjustments by implementation memoranda as set forth in this Section 3.5. 3.6 Unforeseen Circumstances: These provisions provide a mechanism for the identification of those circumstances which justify the modification, termination or suspension of this Agreement. If, as a result of facts, events or circumstances presently unknown, unforeseeable and which could not have been known to or foreseen by the Parties to this Agreement, the staff of the City after ten (10) days' written notice to Developer determines that the health and safety of City require the modification, suspension or termination of this Agreement, City shall (a) notify Developer in writing within ten (10) days following City's determination of the reasons therefor and all facts upon which such reasons are based; (b) forward to Developer, a minimum of ten (10) days prior to the hearing before the City Council, all documents relating to such determination and reasons therefor; (c) notify Developer, in writing, at least thirty (30) days prior to the date, the time and place of the hearing; and (d) hold a hearing on the determination at which hearing Developer shall have the right to offer witnesses, reports and oral and written testimony, and further have the right to examine witnesses, City staff or other persons. The hearing may be continued from time to time as may be deemed appropriate by City. City shall have the obligation, based upon clear and convincing evidence, of establishing that: (i) the circumstances were unknown, unforeseeable and could not have been known to or foreseen by City at the time of entry into this Agreement; (ii) the health and safety of the community require the suspension, modification or termination of this Agreement as opposed to any other alternative; and (iii) City, to the extent feasible, has provided Developer with an equitable program to reimburse to Developer unused fees, and provided equitable reimbursement for dedications or improvements not required by the extent of development as of the date of such devagm2 12 *319682 suspension, modification or termination. In the event the City Council shoul fail to make such findings then this Agreement shall not be so terminated, modified or suspended at such time. The unforeseen circumstances which shall cause the operation of this provision shall not be the result of changes in state or federal law. In the event of changes in state or federal law, the provisions of Section 4.2.3 shall govern. 3.7 Enforcement of Ag eme : Subject to revisions, amendments or cancellation as provided in Sections 3.4, 3.5 or 3.6, this Agreement is enforceable by any Party or its successors and assigns designated in accordance with Section 3.3, notwithstanding a change in the General Plan, applicable specific plans, zoning, subdivision or building regulations adopted by City which alter or amend the Existing Rules, except as provided in Section 4.2. This Agreement shall not prevent the City from denying or conditionally approving any subsequent development project application by a third party who is not a successor -in -interest pursuant to Section 3.3 hereto on the basis of such existing or new rules, regulations and policies. 3.8 Hold Harmless: Developer agrees to and shall defend, indemnify and hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury including death and claims for property damage which may arise from the direct or indirect operations of the Developer or those of its contractors, subcontractors, agents, employees or other persons acting on its behalf which relate to the Project. Developer agrees to and shall defend, indemnify and hold harmless City and its officers, agents, employees and representatives from actions and claims for damages caused or alleged to have been caused by reason of Developer's activities on the Property or otherwise in connection with the Project. Notwithstanding the foregoing, indemnity provided herein shall not apply if such damage or claim arises solely from City's intentional acts that are outside the permissible exercise of its police powers and is not caused or contributed to, or participated in by the Developer. Without limitation to the remainder of this Section 3.8, this Section 3.8 applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this Section 3.8, regardless of whether or not City prepared, supplied or. approved plans or specifications, or both, for the Project. The Developer further agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any action by a third party challenging the validity, applicability or interpretation of this Agreement. Notwithstanding the foregoing, City agrees to pay the legal costs for its own legal counsel relating to a defense arising out of an alleged breach of the Settlement Agreement dated February 1990 between the City of Indio, the City of La Quinta and the La Quinta Redevelopment Agency. 3.9 Binding_ Effect of Agreement: The provisions of this Agreement shall constitute covenants which shall run with the land and, subject to the provisions of Section 3.3, the burdens of this Agreement shall bind and the benefits of this Agreement shall inure to the Parties' successors and assigns. Every person who now or hereafter owns or acquires any right, title or interest in or to devagm2 13 3196$z any portion of the Project or the Project Site is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project or the Property. 3.10 Relationchin off: It is understood that the contractual relationship between City and Developer is such that Developer is a independent contractor and not an agent, joint venturer or partner of or with City. 3.11 Notices: All notices, demands and correspondence and other communications required or permitted under this Agreement shall be in writing and shall be personally delivered or sent by registered or certified'mail, postage prepaid, return receipt requested. Any notices sent shall be deemed received upon the earlier of. (a) If personally delivered, the date of delivery to the address of the person receiving such notice; or (b) if mailed, three (3) business days after the date of posting by the United States Post Office, sent to the following: If to the City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 If to Developer and/or Owner: STAMKO Development Co. 10100 Santa Monica Boulevard, Ste. 400 Los Angeles, ICA 90067 Attention: Christine F. Clarke A Party may change its address by giving notice and other writing to the other Party in accordance with the notice provisions of this Section. Thereafter, notices, demands, correspondence and other communications shall be delivered to the new address. 4. REGULATION OF DEVELOPMENT: 4.1 Rules. Regulations Offi ial Rglicies ("Existing Rules"): City rules, regulations, ordinances, laws, the General Plan and applicable specific plans, and official policies governing permitted uses, density, design, improvement, and construction standards and specifications for development of the Property pursuant to this Agreement (herein called the "Existing Rules") shall be those in force and effect as of the Effective Date. Developer shall in conformity with the terms devagm2 14 319682 of this Agreement prepare and obtain approval by the City of the Final Development Plan for each building to be constructed on the Property. Any Development Approvals, including the Final Development Plans and subdivision map(s) for the Project, shall be in conformity with this Agreement and the City shall not impose conditions of approval on such Approvals in conflict with the terms herein. Upon approval by City, the Final Development Plan for each building and other Development Approvals shall constitute and become a part of the Existing Rules. and the Developer shall comply with the Final Development Plans and all future Development Approvals as part of the Project. 4.2 Limitations Reservations and —Exceptions ("Reservations of Au hori ll Notwithstanding anything to the contrary set forth in Section 4.1 herein above, in addition to the Existing Rules, the following rules, regulations and official policies adopted by City hereafter or by the state or federal government as provided in Section 4.3 (collectively referred to herein as "Reservations of Authority") shall apply to and govern the development of the Property: 4.2.1 Application of 4ubseguen ly EaUted Rules Re2wations and Official Policies: City may, hereafter, during the term of this Agreement apply such subsequently enacted or modified rules, regulations, ordinances, laws, general or specific plans, and official policies which are not in conflict with those in effect on the Effective Date, and the application of which would not prevent, delay or make infeasible (specifically due to substantial increases in cost or delays in time) development as contemplated by Section 5. 4.2.2 Application of Subseaun ly Revised or Adopted Fees l"r Improvement Standards: City fees, including without limitation, application fees, processing fees, utility connection fees and inspection fees, or similar type fees, and improvement standards as set forth in City's subdivision regulations and construction standards and specifications that are revised during the term of this Agreement shall apply to the development of the Property pursuant to this Agreement provided that: (1 � such fees, standards and specifications apply to substantially all public works and/or development proposals within City and (2) their application to the Property is prospective only as to applications for building and other development permits or approvals of tentative subdivision maps not yet accepted for processing. Notwithstanding the above, City development impact infrastructure fees shall remain the same as the date of the application for this Agreement, which application date is March 3, 1997. 4.2.3 State and Federal Laws-- Regulations and Decisions: Existing and future state and federal laws, regulations and decisions, together with city laws, regulations, plans, policies, programs and actions, or inaction, specifically mandated and required by changes in state or federal laws, regulations or decisions (subject to any "grandfather" provisions which the City, if it has the discretion to do so, determines are applicable to the Project and this Agreement) are controlling, and shall apply to the development of the Property pursuant to the following provisions: devagm2 15 '{ a 319s$2 a. Notice and Copies: In the event that existing state or federal laws, regulations or decisions or such laws, regulations or decisions enacted or adjudicated after the Effective Date or the action or inaction of any other affected governmental jurisdiction prevent or preclude compliance with any provision of this Agreement or require changes in any Development Approvals or programs or actions of City, each Party with knowledge of the same shall provide the other Party with: (1) written notice of such state or federal restriction; (2) a copy of such law, regulation or decision, and (3) a statement of conflict with the provisions of this Agreement or Approvals, programs or actions and of the proposed course of action of the Party giving the notice to modify or suspend this Agreement, Approvals, programs or action as may be necessary to comply with such state or federal laws, regulations or decisions. b. . Modification Conference: The Parties shall, within thirty (30) days, meet and confer in good faith in a reasonable attempt to modify this Agreement, Approvals, programs or actions if necessary to comply with such federal or state law, regulation or decision. C. Council He * : Regardless of whether the Parties reach an agreement on the effect of such federal or state law regulation or decision upon this Agreement, Approvals, programs or actions, the matter shall be scheduled for hearing before the City Council. Thirty (30) days following written notice of such hearing to the Developer shall be given,.pursuant to Government Code Section 65854.5 and La Quinta Charter and Municipal Code Section 9.250.030C.15. The City Council, at such hearing, shall determine the exact modification or suspension which shall be necessitated by such federal or state law or regulation. Developer, at the hearing, shall have the right to offer oral and written testimony. Any modification or suspension shall be taken by the affirmative vote of not less than a majority of the authorized voting members of the City Council. Any suspension or modification may be subject to judicial review in conformance with Section 11.3 of this Agreement. In the event of such modification or suspension pursuant to Section 4.2.3, only, this Agreement shall remain in full force and effect to the extent that performance of the remaining provisions would not materially and adversely affect the economic feasibility of the Project. In the event that upon such modification or suspension pursuant to Section 4.2.3, only, the performance of the remaining provisions would materially adversely affect the economic feasibility of the Project, this Agreement shall be deemed terminated. 4.2.4 Public Health and afety: Rules, regulations and official policies which are adopted by City, which may be in conflict with the Existing Rules and the application of which to the development of the Property is reasonably necessary in order to protect the public health and safety shall apply to the development of the Property subject to the provisions of Section 3.6. 4.2.5 Future Discretionary Reviews: City shall retain its discretionary powers in reviewing applications for future Development Approvals not yet granted as of the Effective Date, provided that the reviews be applied in a manner that is consistent with this Agreement and the Existing Rules and provided future discretionary approvals or conditions do not conflict with the development of the Project or the land uses, densities or intensities of use, or other matters permitted by this Agreement. Except as provided herein, future discretionary approvals, including, but not devagm2 16 329682 limited to, tentative and parcel map approvals, plot plans and plan development approvals, shall be consistent with the existing rules and the goals identified in applicable plans, City ordinances, resolutions and policies regulating the use of land in effect on the Effective Date. City shall not impose conditions upon future discretionary reviews or approvals which conflict with this Agreement. City may, in accordance with the limitations contained in Public Resources Code Section 21166 and as may be authorized by the Existing Rules, conduct an environmental review of future discretionary approvals in connection with the development of the Project and/or the Public Improvements. The City may, as a result of such review and as may be authorized by law pursuant to such Section 21166 and Sections 21002 and 21081(a), impose additional mitigation measures to mitigate significant adverse environmental effects. The City may exercise its discretion to use other means of avoiding redundancy in the preparation of environmental documents including, but not limited to, the use of an addendum to any pre-existing environmental impact report (CEQA Guideline Section 15162(b)); reliance upon an earlier project environmental impact report (CEQA Guideline Section 15153(a)); and/or use of a tiering process (Public Resources Code Sections 21093(b) and 21068.5). 4.2.6 Full Extent of Law: The Parties acknowledge and agree that City is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to City all of its police power which cannot be so limited. Notwithstanding the foregoing, this Agreement shall be construed, contrary to its stated terms if necessary, to reserve to City WI such power and authority which cannot be restricted by contract. 4.3 Assurances-to-DeveloverRemding 4.3.1 Adoption of General Plan and Prel'mi= DeveloRm nr Plane Further Approvals and CFQA ComF nc e: In preparing and/or adopting the General Plan and this Development Agreement, City considered the health, safety and welfare of the existing and future residents and populations of City and prepared in this regard, the General Plan EIR No. 91122013, dated October 16, 1992, State Clearinghouse No. 91122013, as well as traffic impact reports and other studies. City and Developer agree that EIR which is designated EA No. 97-337 and the obligations of Developer under this Agreement to incorporate mitigation measures as part of the Project constitute full and complete mitigation of any identified adverse environmental impacts generated by the Project. City and Developer acknowledge that further environmental studies, analyses, reports and documents may be required in connection with future Development Approvals as provided in Section. 4.2.5. It is acknowledged that this Agreement provides assurances to Developer with respect to the Existing Rules which will apply to the development of the Property and that prior to and as a condition precedent to construction of any portion of the Project or Public devagm2 17 3�9682 Improvements, all government permits and approvals shall be obtained as required by the Existing Rules and the rules and regulations adopted, in accordance with and as provided in Section 4.2, and all environmental studies, analysis, reports and other documents shall be prepared and completed therefor in full and strict compliance with CEQA and other applicable regulations. WIN a. Citv Findings and Determinations: As a condition precedent to adopting any rule, regulation or official policy or taking any action requiring the action or approval of the City Council which would be applicable to the Project pursuant to the provisions of Section 4.2 and which is in conflict with the Existing Rules, after providing Developer with ten (10) business days notice prior to the hearing and an opportunity to be heard, City shall make specific findings and determinations as to the basis for applying such rules, regulations or official policies to the development of the Property -in accordance with Section 4.2. b. Developer's Burden of Proof: As a condition precedent to any claim by Developer that a proposed rule, regulation or official policy does not comply with the Reservations of Authority and, therefore, cannot be applied to and govern the development of the Property (whether in a judicial proceeding or otherwise), Developer shall, provided that Developer has received notice as provided pursuant to Section 4.3.2(a), raise the claim no later than the time at which application of the proposed rule, regulation or official policy is considered and shall present all information then in its possession upon which it shall rely or present in any judicial proceeding, including, but not limited to, information regarding Developer's reasonable economic expectations with respect to the completion of the Project in accordance with the Existing Rules taking into consideration technical, financing, market and other factors and, in addition, shall provide at such time any further information regarding Developer's economic expectations reasonably requested by City. In the event that the proposed rule, regulation or official policy is of a kind that is not heard by or appealable to the City Council and provided that Developer is given reasonable prior written notice, as a condition precedent to any such claim, Developer shall raise the claim and provide the above information as a protest to the agent or representative of City promulgating or applying the. proposed regulation or official policy.. 4.4 VestedRhzhts: Developer is provided and assured the vested right to develop the Property in accordance with the terms of this Agreement and, subject to the provisions of Section 4.2, to require that the rules, regulations and official policies of City applicable to and governing the development approval process relating to the Project during the term hereof shall be as provided in Section 4.1. - 4.5 Referenda and Moratorium: It is the express intent of City and Developer that as of the date of this Agreement, this Agreement is a legally binding contract which shall, to the extent permitted by law, prevail over the provisions of any subsequently enacted moratorium, statute, ordinance, limitation, or other measure, whether or not enacted by City, or by voter initiative or devagm2 18 319682 referendum, and whether or not such initiative, moratorium, referendum, statute, ordinance, limitation, or other measure relates, in whole or in part, to the rate, timing, sequencing, or phasing of the development or construction of all or part of the Project or the Public Improvements or affecting parcel or subdivision maps, building permits, occupancy certificates, or other entitlements to use the Property which are issued by City, subject only to the Reservations of Authority provided in Section 4.2 and the terms of this Agreement. In the event an initiative measure is enacted subsequent to the effective date of this Development Agreement that would otherwise modify the development rights vested pursuant to this Development Agreement, Developer reserves the right to challenge any such initiative measure in a court of law should it become necessary to protect the development rights vested in the Developer pursuant to the terms and conditions of this Development Agreement. Should an initiative measure or measures be enacted which would preclude construction of all development, or be construed, by a court of competent jurisdiction, to invalidate or prevail over all or any part of this Development Agreement, Developer shall have no recourse against City for any damage Developer might sustain as a result thereof, except City shall provide for an equitable program to reimburse Developer for unused fees and for an equitable reimbursement for Public Improvements or fees theretofore made but not required by the extent of development as of the date of the enactment of such initiative. 5. DEVELOPMENT OF THE PROPERTY: 5.1. PermittedUses: Except as provided herein, the Property shall be used and developed only .for a future auto dealership, commercial/retail, entertainment and restaurant uses, parking and municipal purposes as described in Exhibit "A" (the "Project Site") and more particularly set forth in the Specific Plan () and Conditional Use Permit (Exhibit "E") submitted by Developer which have received review by the appropriate committees and commissions and been approved by the City Council. The Property may also be used and developed as additionally authorized by the Specific Plan, Conditional Use Permit and other Development Approvals governing the development of the Property, including without limitation, tentative/final subdivision maps, permits or ordinances prepared as part of the development approval process as required by the Existing Rules and by. amendments, if any, hereafter entered into in accordance with Section 3.4 relating to the amendment of this Agreement. Phase I Buildings: Phase I consists of up to 5 auto dealership structures of approximately 150,000 square feet. Phase II B it in¢c: Phase11 will consist up to 125,000 square feet utilized in one of the following ways (a) 4 auto dealership structures; or (b) a combination of auto dealer structures and auto related commercial buildings not to exceed two commercial uses. The structures in Phase I and Phase II will total a maximum of 275,000 square feet. devagm2 19 319f82 Phase III Buildings: Phase III consists of structures as shown on Exhibit A-2 totaling approximately 400,000 square feet for the following uses: commercial, retail, office, restaurant, recreation, entertainment and other uses related to all of the foregoing. Office structures shall not exceed 100,000 square feet. 5.3 Permitted Density. Height and Size of Development: The maximum density or level of intensity, height and size of the buildings to be constructed on the Property shall be governed by this Agreement and by Development Approvals or other regulatory devices subject to the limitations set forth in Table 1 herein below. The Phase I, II and III buildings shall be constructed on the Property as designated on the Project Site (Exhibits "A-1 and A-2"). The gross floor area of each of the additional commercial buildings to be constructed on the Property shall be subject to a permitted variation of ten percent (10%). 5.3.1 Site Development Requirements WUch Exceed Standard Develop ment Requirement. Certain requirements for this Project exceed the City 's standard development requirements including but not limited to: The overall Project shall be less dense than the General Plan would allow and shall insure that the visual corridors of Highway I I I will be preserved by lowering the maximum heights of some of the structures. Maximum FAR Phase III .25 Maximum FAR Phase I and II .15 18] In addition, the Project includes full width median improvements to Highway 111. [overall 5.4.1 Phyg of Construction: The Project shall be developed in three (3) phases. Phase I shall consist of up to five (5) auto dealer pads, and Phase II shall consist of up to four (4) auto dealer pads and/or auto related commercial uses. The total square footage in Phase I shall be approximately 150,000 square feet and the total square footage in Phase II shall be approximately 125,000 square feet. Developer shall construct or contribute to the construction of the Public Improvements connected with Phase I and Phase II as set forth in Exhibit "C" and in accordance with the Developer Lease Agreement (Exhibit "C"), Specific Plan () and the terms of this Agreement prior to the occupancy of the first building in Phase I and Phase II, except to the extent that another time for the performance of such condition is explicitly set forth in this Agreement. Failure to comply with such conditions precedent to Phase I and Phase II pursuant hereto prior to the occupancy of the first building on the Project Site shall constitute a default of this Agreement by Developer. devagm2 20 319682 J Phase III of the Project shall consist of commercial/retail/entertainment buildings (including some restaurant use) and associated parking as designated in Exhibit "A-2". Phase III shall have a total of approximately 400,000 square feet of commercial use .building. It is expected that Phase III will be initiated in approximately the year 2000. 5.4.2. Devglonet: Developer agrees to exercise due diligence and submit to City applications for all such necessary permits and approvals in accordance with applicable City procedures and Existing Rules. 5.4.3 may: City hereby agrees that it will accept from Developer for processing and review all applications for Development Approvals for the use of the Property in accordance with this Agreement, providing that said applications are submitted in accordance with this Agreement and the Existing Rules. 5.4.4 Completion of Project: Developer agrees to diligently prosecute to completion the construction of the Project and to complete construction of Phase I and Phase II and to commence construction of the last building in Phase III within the term of this Agreement subject to any such extensions as may hereafter become applicable in accordance with the provisions of this Agreement. Improvements scheduling, dates, or times of performance by either Party hereto may be subject to revision from time to time due to factors which cannot be predicted and which are not within the control of the Parties, such as economic market conditions and demand, interest rates and competition. Any such revision must be mutually agreed to by the Parties in writing referencing this Section 5.4.4 and in recordable form. Such revisions are deemed to be within the framework of this Agreement as presently drafted and executed and do not constitute amendments requiring new notice and hearing under local law. 6. PUBLIC IMPROVEMENTS DEVELOPMENT 6.1 Public Improvement -Facilities and ervices: In addition to performing any other obligations imposed as conditions of approval of the Development Approvals, which -obligations are incorporated herein by this reference, as material consideration for the City's entering into this Development Agreement, the Developer and its successors and assigns shall be financially responsible for and shall construct or shall contribute toward the construction of the Public Improvements as set forth in more particularity in the Developer Lease Agreement (Exhibit "C") and the terms of this Agreement and shall pay all fees required in connection with the development of the Project. The parties recognize that much of the Public Improvements to be constructed by the Developer pursuant to this Agreement and the Developer Lease Agreement including improvements to Highway I I I and Adams Street are of significant benefit to the City as a whole and their early completion pursuant to this Project would not be possible without assistance by the City pursuant to the terms of the Developer Lease Agreement ("Exhibit "C"). devagm2 21 319682 The Developer shall provide the Public Improvements and pay all fees and other amounts the payment of which is provided for pursuant to this Agreement in conformity with the timing for development of the Public Improvements set forth in this Agreement, and the Developer Lease Agreement; such performance shall be required so long as this Agreement remains in effect without regard to whether the Developer is timely implementing the development of Project pursuant to this Agreement. Where this Agreement provides for the provision of Public Improvements by the Developer, the Developer may with the consent of the City Director of Public Works, discharge its obligation(s) to provide such Public Improvements by paying to the City an amount determined in good faith by the City Director of Public Works to represent the cost to provide such Public Improvements (including without limitation all construction costs, costs to design such Improvements, and costs for any property necessary for the completion of such Improvements, if applicable). Where this Agreement sets forth a specific time for the provision of Public Improvements or the payment of fees or other amounts, the Developer shall strictly comply with such requirements. Where a Public Improvement fee, or other amount is required pursuant to Existing Rules and the terms of this Agreement to be paid at the time of issuance of building permits and a specific date is not set forth in this Agreement for the provision of such Public Improvements or payment of such fees or amounts, the Public Improvement, fee, or other amount shall be required to be provided at the time building permits are issued for the structure. 6.2 Reservation and Dedications of Laud: Reservations or dedications of portions of the Property may from time to time, be required by the City in accordance with or as a part of subdivision map approvals, traffic and other required studies and/or environmental review. All reservations and dedications shall be without cost to the City and are to be imposed in accordance with this Agreement, the Developer Lease Agreement and the Existing Rules. 6.3 Focused Traffic Sg&: [this section reserved] 6.4 Payment of Fees: Developer agrees to pay all standard City-wide fees established in the Existing Rules and subject to Section 4.2.2, including without limitation, processing fees for building permits, administrative plan check and other similar fees associated with the development of the Project. The fees and other amounts shall be paid to City by Developer or its successors or assigns, at the time required in accordance with this Agreement and Existing Rules. Developer's obligation to pay such fees is separate and distinct from its obligation to construct or contribute toward the construction of the Public Improvements as specified in Exhibit "C"; in no event shall the payment of fees by the Developer pursuant to this Agreement be deemed to reduce or otherwise affect its obligation to finance, design and construct the Public Improvements, or contribute toward the provision thereof, as required by the terms of this Agreement. 6.4.1 Transportation System Improvement Program (TSIP): [This section reserved] 6.4.2 Fire Protection Facilities: [This section reserved] devagm2 22 i :f. 319s82 6.4.3 Capital Facilities: [This section reserved] 6.4.4 Shortfall Fee: [This section reserved] 7. TAXES, ASSESSMENTS, ENCUMBRANCES AND LIENS: 7.1 Taxes. Assessments Encumbrances and Liens: The Developer shall pay when due all real and personal property taxes and assessments assessed and levied on the Property and any improvements thereon. Nothing herein contained shall be deemed to prohibit the Developer from contesting the validity or amounts of any tax, assessment, encumbrance or lien, nor to limit the remedies available to the Developer in respect thereto. 8. INSURANCE 8.1 Imo: Before commencing work pursuant to any City approved permit on the Project, Developer shall obtain the insurance required pursuant to this Section and receive the approval of the City as to form, amount and carrier. Developer shall maintain the insurance at all times during the term of this Agreement. The insurance as provided by the Developer and by each contractor and subcontractor performing work on the Project shall be primary and not contributing with any coverage maintained by City and shall name City and its elective and appointive boards, commissions, officers, agents, employees and representatives as additional insureds. 8.1.1 ComRcnsation Insurance: Developer shall maintain workers' compensation insurance for all.persons employed at the site of the Project. Developer shall require each contractor and subcontractor similarly to provide workers' compensation insurance for their respective employees. Developer's failure to take out and maintain such insurance. 8.1.2 Public Liability and Property Damage Insurance: Developer shall maintain public liability insurance in an amount not less than Two Million Dollars ($2,000,000) for injuries (including death) to any one (1) person and subject to the same limit of any one (1) occurrence. 8.2 Evidence of Insurance: Developer shall furnish City prior to the issuance of the first building permit for the Project satisfactory evidence of the insurance required. Developer shall also provide evidence that the carrier is required to give City at least ten (10) days prior written notice of the cancellation or reduction in coverage of a policy. devagm2 23 31st;n 9. ANNUAL REVIEW: 9.1 City and Developer Responsibilities: City shall, at least every twelve (12) months during the term of this Agreement, review the extent of good faith substantial compliance by Developer with the terms of this Agreement. Pursuant to Government Code Section 65865.1 and La Quinta Municipal Code Section 9.250.030, Developer shall have the duty to demonstrate its good faith compliance with the terms of this Agreement at such annual review. Developer agrees to furnish such evidence of good faith compliance as City in the exercise of its discretion may require and shall notify City in writing that such evidence is being submitted pursuant to the requirements of this Section 9.1. Such evidence shall be submitted to City by Developer not less than forty-five (45) days nor more than sixty (60) days prior to the anniversary of the recordation date of this Agreement. Developer shall pay to City a reasonable processing fee in an amount as the City may from time to time establish (on a citywide or area wide basis) on each occasion that Developer submits evidence for an annual review. Either Party may address any requirements of this Agreement during the annual review. However, ten 0 0) business days' written notice of any requirement to be addressed shall be made by the requesting Party. If attime of review an issue not previously identified in writing is required to be addressed, the review at the request of either Party shall be continued to afford sufficient time for analysis and preparation. 9.2 Information to be Provided By Develo2g;: City shall deliver to Developer, in accordance with the provisions of this Agreement, a copy of staff reports and exhibits thereto concerning contract performance a minimum of ten (10) business days prior to any such review or action upon this Agreement by the Planning Commission or the City Council. 9.3 Findings: Within forty-five (45) days after the submission.of Developer's evidence, the City Council shall determine on the basis of substantial evidence, whether or not Developer has, for the period under review, complied in good faith with the terms and conditions of this Development Agreement. If the City Council finds that Developer has so complied, the review for that period shall be deemed concluded. If the City Council fords and determines, on the basis of substantial evidence, that Developer has not complied in good faith with the terms and conditions of this Development Agreement for the period under review, Developer shall be given at least sixty (60) days to cure such noncompliance and if the actions required to cure such noncompliance take more than sixty (60) days, then City shall give Developer additional time provided that Developer is diligently proceeding to cure such noncompliance and is making reasonable progress towards such end. If during the cure period Developer fails to cure such noncompliance or is not making reasonable process toward such end, then Developer shall, upon written notice from City, be deemed in default and the City Council may, at its discretion, proceed to terminate this Development Agreement (which will be effective immediately or, if the City elects, upon failure of the Developer to satisfy such additional requirements as the City may, at its discretion, impose) or establish a time schedule for compliance. devagm2 24 319682 9.4 Failure of Annual Review: City's failure to review at least annually Developer's compliance with the terms and conditions of this Agreement shall not constitute or be asserted by either Party as a breach by the other Party of this Agreement. 9.5 Periodic Review/ProSresReports: In addition to the annual review set forth in Section 9.1 herein, City Manager of City or the City Council may at any time initiate a review of this Development Agreement and of the progress of construction upon the giving of written notice thereof to Developer. Within sixty (60) days following deliver of such notice in accordance with this Agreement, Developer shall submit a progress report in such detail as City reasonably requests, including evidence to the City Council of Developer's good faith compliance with this Development Agreement. Such periodic review and determination shall proceed in the manner as otherwise provided in Section 9 of this Agreement. 10. ESTOPPEL CERTIFICATES: 10.1 Estoppel Certificates: Either Party may at any time, and from time to time, deliver written notice to the other Party requesting the other Party certify in writing that to the knowledge of the certifying Party: (a) This Agreement is in full force and effect and is a binding obligation of the certifying Party. (b) This Agreement has not been amended or modified and, if so amended, to identify the amendments. (c) No default in the performance of the requesting Party's obligations under this Agreement exist or, if in default, the nature and amount of any default. (d) Upon completion of the Project and the Public Improvements in accordance with the terms of this Agreement and the Developer Lease Agreement, that performance of this Agreement is complete and the obligations hereunder have been satisfied. A Party receiving a request hereunder shall execute and return the certificate within thirty (30) days following receipt thereof provided, however, that the Party shall use its best efforts to execute and return such certificate as soon as possible in the event that the requesting Party indicates that such certificates are required in less than thirty (30) days. The City Manager shall have the right to execute any certificates requested. by Developer on behalf of City. 1 1. ENFORCED DELAY, DEFAULT, REMEDIES AND TERMINATION: 11.1 General Provisions: In the event of default or breach of this Agreement or of any of its terms or conditions, the Party alleging such default or breach shall give the breaching Party not less than thirty (30) days Notice of Default in writing which shall be delivered as provided in this devagm2 25 . , 31ys8z Agreement for giving notice. The time of notice shall be measured from the date notice is given pursuant to this Agreement. 'The Notice of Default shall specify the nature of the alleged default, and, where appropriate, the manner in which said default may be satisfactorily cured. The breaching Party shall be given at least thirty (30) days to cure such default and if the action required to cure such default take more than thirty (30) days, then the Party alleging such default shall give the defaulting party additional time provided that the defaulting Party is diligently proceeding to cure such default and is making reasonable progress towards such end. The times to cure set forth in this Section 11.1 shall not extend such times to cure as may become applicable pursuant to Section 9.3 of this Agreement. During any period of curing wherein the defaulting party is diligently proceeding to cure such default and is making reasonable progress toward such end, the Party charged shall not be considered in default for the purposes of termination or institution of legal proceedings. If the default is cured, then no default shall exist and the noticing Party shall take no further action. 11.1.1 Option to Institute Legal Proceedings or to Te inate: After proper notice and the expiration of said cure period, the noticing Party to this Agreement, at its option, may institute legal proceedings pursuant to Section 11.3 or give Notice of Intent to. Terminate this Agreement pursuant to Government Code Section 65868. Following Notice of Intent to Terminate, the matter shall then be scheduled for consideration and review by the City Council, within thirty (30) days, in the manner set forth in Government Code Sections 65865, 65867 and 65868. 11.1.2 Notice of Termination: Following consideration of the evidence presented before the City Council, either Party alleging a default by the other Party may, at its option, give written Notice of Termination of this Agreement to the other Party in accordance with the notice provisions of this Agreement. Such Notice of Termination shall be effective, unless superseded or overruled by the ruling of a court of competent jurisdiction, upon delivery of the written Notice of Termination of this Agreement in accordance with the provisions of this Agreement, to the defaulting Party; provided that either Party may seek review by a court of competent jurisdiction of any purported termination. 11.1.3 Waiver: Failure or delay in giving Notice of Default pursuant to this Section 11.1.3 shall not constitute a waiver of any default. Except as otherwise expressly provided in this Agreement, any failure or delay by the other Party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies or deprive such Party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 11.2 Enforced Delay Extension of Time of Performance: In addition to specific provisions of this Agreement, performance by either Party hereunder shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, walk -outs, riots, floods, earthquakes,. fires, casualties, acts of God, governmental restrictions imposed or mandated by governmental entitles other than City which conflict with the terms of this Agreement, enactment of conflicting state or federal laws or regulations, new or supplementary environmental regulations or litigation. No extension of time to perform shall be applicable unless and until a party gives devagm2 26 �.319682 written notice to the other party specifying the grounds on which this Section 11.2 is claimed to be applicable and referring to this Section 11.2. If written notice of such delay is given to the other party within thirty (30) days of the commencement of such delay, and such grounds of enforced delay exist, an extension of time for such cause shall be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. Such an extension shall commence to run from the time of commencement of the cause for the delay and/or from the date- notice of delay is given to the other party if the parties are unable to agree upon the date of the commencement of the cause for delay. 11.3 Institution of Legal Action- The legal or equitable actions described in Sections 11.4 and 11.5 must be instituted in the Superior Court of the County of Riverside, State of California, or in the Federal District Court in the Central District of California. The exercise of any one or more of the remedies described in Sections 11.4 and 11.5 shall not constitute a waiver or election with respect to any other available remedy. 11.4 Remedies Available to DeveloCr: It is acknowledged by the Parties that City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the application thereof. a. City Not Liable for Damages. City shall not be liable in damages to Developer, or to any assignee, transferee of Developer or any other person, and Developer covenants not to sue for or claim any damages, for: (i) any breach of, or breach which arises out of, this Agreement; (ii) the taking, impairment or restriction of any right or interest conveyed or provided hereunder or pursuant hereto; or (iii) arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement; provided, however, that the foregoing does not limit the liability of City, if any, for damages which: (1) are not for a breach of this Agreement or which do not arise under this Agreement; (2) are not with respect to any right or interest conveyed or provided hereunder or pursuant hereto; and (3) 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, City's rules, regulations or official policies. devagm2 27 31g6Bz Without limiting the generality of the foregoing items (iii)(1) through (3), and as an example, in the event City refuses to issue building permits under and in accordance with a Vesting Tentative Map issued by City, Developer would be entitled to whatever remedies at law or in equity which are available, including, if available under law, the right to monetary damages. b. Specific Performance Remedy. Due to the size, nature and scope of the Project, it will not be practical or possible to restore the Property to its pre-existing condition once implementation of this Development Agreement has begun. After such implementation, Developer may be foreclosed from other choices it may have had to utilize the Property and provide for other benefits. For this reason, City and Developer agree that if City fails to carry out its obligations under this Development Agreement, Developer shall be entitled to the remedy of specific performance of this Development Agreement. City and Developer acknowledge that if Developer fails to carry out its obligations under this Development Agreement, City shall have the right to refuse to issue any permits or other Development Approvals which Developer would otherwise have been entitled to pursuant to this Development Agreement. 11.5 Remedies Available to City. In addition to City's rights described in Sections 3.6, 4.2.3 and 9, City may pursue any remedy at law or equity available in accordance with the Existing Rules for the breach of this Agreement or of the Development Approvals by Developer. Termination of this Agreement shall in no way affect or modify the conditions of the Development Approvals which shall continue to be enforceable to the fullest extent allowable by law or equity. 12. ENCUMBRANCES AND RELEASES ON REAL PROPERTY: 12.1 Discretion to Encumber: The Parties hereto agree that this Agreement shall not prevent or limit Developer, in any manner, at Developer's sole discretion, from encumbering the Property or any portion of any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. Entering into or a default or breach of this Development Agreement shall not defeat, render invalid, diminish, or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. City acknowledges that the lenders providing such financing may require certain modifications and City agrees, upon request, from time to time, to meet with. Developer and/or representatives of such lenders to negotiate in good faith any such request for modification. City further agrees that it will not unreasonably withhold its consent to any such requested modification so long as the modifications do not materially alter this Agreement. 12.2 Entitlement to Written Notice of Default: The mortgagee of a mortgage or beneficiary of a deed of trust, and their successors and assigns, or any mortgage or deed of trust encumbering the Property, or any part thereof, which mortgagee, beneficiary, successor or assign has requested notice in writing received by City, shall be entitled to receive written notification from City of any notice of default by Developer in the performance of Developer's obligation under this Agreement. devagm2 28 329682 12.3 Prom Subject to Pro Rata CI imc: Any mortgagee, beneficiary or purchaser therefrom who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to any pro rats claims for payments or charges against the Property, or part thereof secured by such mortgage which accrue prior to the time such mortgagee comes into possession of the Property, or part thereof. 13.1 Rules of Construction: The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, and "may" is permissive. Any reference to any Section of this Agreement cited without a decimal includes all sections following the cited section. For example, a reference to Section 6 includes 6.1, 6.2, 6.3, 6.4, 6.4.1, et seq. If there is more than one (1) signer of this Agreement, their obligations are joint and several. 13.2 No Third Party Beneficiarie : This Development Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. Except as provided in Sections 5.4.1 and 7.2, no other person shall have any right to action based upon any provisions in this Development Agreement. 13.3 Third Party Fees/Administrative Costs: ['Phis section reserved] 13.4 PPr ject is a Private Undertaking: It is specifically understood and agreed to by and between the Parties hereto that: (1) the Project is a private development; (2) the City makes no representations or warranties concerning the Project or its feasibility; (3) City has no interest or responsibilities for or duties to third parties concerning any Public Improvements until such time and . only until such time that City accepts the same pursuant to the provisions of this Agreement or in connection with the various Development Approvals pursuant to the Developer Lease. Agreement; (4) Developer shall have fulk power over and exclusive control of the Property subject only to the limitations and obligations of Developer under this Agreement; (5) Developer shall not seek, and shall not be granted, any assistance by the La Quinta Redevelopment Agency; and (6) the contractual relationship between City and Developer is such that Developer is an independent contractor and not an agent of City. 13.5 Incorporation of Recitals: Agreement. The recitals are specifically incorporated into this devagm2 29 319682. 13.6 Restrictions: The Developer shall cause to be placed in any agreements to sell or convey any interest in the Property or any portion thereof, provisions making the terms of this Development Agreement binding on any successors in interest of Developer an express provision for Developer or City, acting separately or jointly, to enforce the provisions of this Development Agreement. 13.7 Recording: The City Clerk shall cause a copy of this Agreement to be recorded with the Office of the County Recorder of Riverside County, California within 10 (ten) days following the Effective Date of this Agreement. 13.8 SeverabilitX. If any provision of this Development Agreement shall be adjudged to be invalid, void, or unenforceable, such provision shall in no way affect, impair, or invalidate any other provision hereof, unless such judgment affects a material part of this Development Agreement. The Parties hereby agree that they would have entered into the remaining portions of this Development Agreement not adjudged to be invalid, void, or illegal. Notwithstanding any other provisions of this Development Agreement, in the event that any material provision of this Development Agreement is found to be unenforceable, void or voidable, Developer or City may terminate this Development Agreement. 13.9 Entire Agreement. Waivers and Amendments: This Agreement constitutes the entire understanding and agreement of the Parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiation or previous agreements between the Parties with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of City or of Developer. IN WITNESS WHEREOF, this Agreement has been executed by the Parties on the day and year first above written, as authorized by Ordinance No. 36G of the City Council. CITY OF LA QUINTA, a charter city Y RON PERKINS, Mayor City of La Quinta, California devagm2 a 319682 APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney City of La Quinta, California STAMKO DEVELOPMENT Trustee devagm2 CO., CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT 319682 No. 5907 State of California County of Riverside On August 13, 1997 before me, Regenia Hensley, Notary Public DATE NAME, TITLE OF OFFICER - E.G., -JANE DOE, NOTARY PUBLIC - personally appeared Ron Perkins, Dawn C. Honeywell & Saundra L. Juhola NAME(S) OF SIGNER(S) ® personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) "/are subscribed to the within instrument and ac- knowledged to me that #alef(s>koe/they executed the same in their authorized capacity(ies), and that by lea/their signature(s) on the instrument the person(s), OFFICIAL SEAL or the entity upon behalf of which the '+ REGENIA HENSLEY G COMM. #1107891 person(s) acted, executed the instrument. Notary Public - California RIVERSIDE COUNTY My Commission Ex ires AUGUST 71 zc�00 WITNESS my hand and official seal. SIGNATURE OF NOTARY miiiiiiiiiiiim OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL City Government Mayor Pro Tam, City Attorney C ty Clerk TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: City of La Quinta SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) City of La Quinta DESCRIPTION OF ATTACHED DOCUMENT Development Agreement TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES July 15, 1997 DATE OF DOCUMENT Stamko Development/Laura Catherine SIGNER(S) OTHER THAN NAMED ABOVE Juvonen 01993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave.; P.O: Box 7184 - Canoga Park, CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT 319GS2 No.59o7 CountyState of of Z-0 On A6XIT /5- �qT before me, k�4, 4-OIWAIA& /r eW DATE f NAME, TITLE OF OFFICER - E.G., "JAN OE, NOTARY LIBLIC" personally appeared K1,4,,�th�T NAME(S) OF SIGNER(S) personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(,p whose name(A)bare subscribed to the within instrument and ac- knowledged to me that h sh hey executed the same in his their authorized capacity(i4), and that by hisolgYtheir signature(* on the instrument the person*, or the entity upon behalf of which the Admmn%LOMN RHEA CHAP" t,;P7;1Z311, # m7,90 person"-- acted, executed the instrument. irNotary Pudfo—Cdbnft kv CowL EVhs DW I& IN WITNESS my hand and official seal. ■ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL CORPORATE OFFICER 4�'��i[7J`� TITLES) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES �n� a /S- 19 5�% DATE OF DOCUMENT i & itl ZA�,�� AZZ)4; C�t� AA. SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave., P.O. Box 7184 - Canoga Park, CA 91309-7184 W,; + ,. � ��, 4 � F_ �{ �r i Cry y� �� C �s� �, �. ... S i�r 329682 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5907 State of County of, On before me, DATE NAME, TITLE OF OFFICER - E.G.., "JAME pIOE, NOTARY PUBLIC" personally appeared c� �P�� iPriH->o� C__4la !7 r- , NAME(S) OF SIGNER(S) ❑ personally known to me - OR - E proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. pL OF p YLIE *0 ///YYYTfff...' Comrrte�dEk •. TRICI.�. ���ii 3 ®® NOTARY 'f -er,u a WITNESS m and official seal. NOTARY Pl - G.+;�CZMJI � Y a - ScD:go1-13 OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER LJ INDIVIDUAL ❑ CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT 21yTRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCU NT Z9 NUMBER OF PAGES % /S ! / .5-/G.4 DATE OF DOCUMENT/ SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 I I I' wn: iil = IFHIHf�H i�-l{IN!Ii�lll'iNl•1'�N' Illil r AMeo M WALL STAMKO DEVELOPMENT Main ero, Sift and A"oc Weker/Ru cowl + Aaoc. Ardiociw* UWWW;.q ArcMeckwo 5 I r LVA" Y WALL EXHIBIT A-1 SITE PLAN PHASE I AND II � r r SPECIFIC PLAN TM C80M AT LA OUMITA Phase I and II 81M 1 W 403 Acre* Okim arm 40.000 8L 35 FL 8102 aV Acres 22.000 81. 35 FL Ws 3 404 AcrN V.e00 sL 35 Ft 8M 4 427 Acres 30.000 81. 36 Ft ones 5= Acres 3MM 81. 35 FL 8M 9 307 Awes A000 81. 35 Ft 8M 7 322 Acres 3A900 81. 35 FL 8M $ 310 Acres nw00 8L 35 Ft 8M 9 121 Acres 30.000 81. 35 FL STAWO DEMLOPWW Mat WO. &FA end Assoc. FUri gMrQrwutnp W9ksr/ftMOU l + Assoc. ArdMscbr* HWWrwffiwWdscn Assoc. Lu droaq ArclM.c*ro 6 GJ it �O m N / ogag •.�sa•wNr � 111111 M�IR0ORp Q m -o CO M n14 i n� r 'fl CD 896tE - EXHIBIT B LEGAL DESCRIPTION PROJECT SITE 319682 PAGE 1 IN THE CITY OF LA QUINTA. COUNTY ORIVERSIDE,ESTATE SOUTHERLY OF STATE THAT PORTION OF THE NORTHWEST HIGHWAY 111 AND THE SOUTHWEST T LOOF WS SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, 5.8.M., DESCRIBED AS FOLCOMMENCING AT THE SOUTHWEST CORNER OF SAID SOUTHWEST ONE -QUARTER OF SECTION 2% THENCE NORTH 000 217 or WEST ALONG THE WESTERLY LINE OF All SOUTHWEST ONE-QUARTER A DISTANCE OF 1087.25 FEET TO E TRUE POINT THENCE CONTINUING ALONG SAID WESTERLY LINE CORNER OF SAID SOUTHWEST ONE - QUARTER OF 1565.71 FEET TO THE NORTHWEST QUARTER OF SECTION 29; THENCE NORTH 00' 2G 08" WEST. ALONG THE WESTERLY UFEE,�NE To THEE BEGINNINGF THE ORTHWE R ONE -QUARTER OR SECTION 29, A DISTANCE O NONTANGENT CURVE. CONCAVE NORTHERLY,POINT SEARS SOUTH 19* 3r 07mWEST, SAID RADIAL LINE PASSING THROUGH SAID PO POINT BEING ON THE SOUTH LINE OF pSTATE GUST 23.1966� INSTRUMENT NO - STATE OF CALIFORNIA BY DEED RECORDED 92039. OFFICIAL RECORDS; THENCE EASTERLY ALONG SAID SOUTHERLY LINE AND ALONG I� NCAg OOF F S 03 CURVE THROUGH A CENTRAL ANGLE OF 11.63 09", AN ARC 0 FEET; THENCE CONTINUING ALONG SAID SOUTHRRA DISTANCE AND FEET TO THE MENTIONED CURVE. To LAST SOUTH a2 21 OZ" EAST 9EGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY. HAVING A RADIUS Of 5055.00 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND EASTERLY ALONG THE ARC OF SAID CURVE. THROUGH A CENTRAL ANGLE G TMROUGH ,SAtC POINT BEARS m ARC DISTANCE OF 534.06 FEET TO A POINT, A RADIAL LINE PASSING SOUTH 010 39 4W WEST, SAID POINT BEING ON THE WESTERLY LINE OF THE EASTERLY 330.00 FEET OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; . % 319682 PAGE 2 PROJECT SITE LEGAL DESCRIPTION CONTINUED THENCE PARALLEL WITH THE EASTERLY UNE OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29 AND NONTANGENT TO LAST MENTIONED CURVE, SOUTH 00' 17 55" EAST A DISTANCE OF 1311.87 FEET TO A POINT ON THE SOUTHERLY LINE OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE NORTH 89' 51' 48" WEST ALONG SAID SOUTHERLY LINE A DISTANCE OF 330.01 FEET TO THE NORTHWEST CORNER OF THE EASTERLY 660.00 FEET OF THE SOUTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE SOUTH 00' IT 55' EAST ALONG SAID WESTERLY LINE A DISTANCE OF 23915 FEET; THENCE NORTH 69' 51' 38" WEST A DISTANCE OF 1987.25 FEET TO THE TRUE POINT OF BEGINNING. SUBJECT TO EXISTING EASEMENTS OF RECORD. COMPRISING $7.72 ACRES, MORE OR LESS. Mae • '�:�• EXHIBIT B TO EXHIBIT "A" PLAT TO ACCOMPANY LEGAL DESCRIPTION OF SITE r c� "lemur , ti O.R. r�soe°re to I � /7g77 I FUTURE R/N T7.ls �n I WN ISt M 2w.00 S.W. t/2�. 20 ~ EXIfrW R/M I EXIST R : si. Rio NMI Its 15. SAPE ZA384M I Pal O.R. 08/74"7 30' PARCEL 8136 �• LLA 95-19e . O.R. 95/251766 I I FUTURE R/N AOANS STREET _+ d N'Lr t.LHE �N E•l�/1 o s o I OF N.E. 1/ Of t OF SEC. 29 .. I EXIST. 30' R/N PER ~ J O.R. 59/32M : 9Z� 1 z loft 36•12s FUTURER/ I Y+ Hrlr SSt DETAIL O.R. st/to7ss N t!'SIOfO•" 330.00 • • si i 6".61 N S9' li t'ts'N ! 300 I N ee• t]'e6'N 0 ao O.R. Id/25f765 � I . N s�s1'�w 1907.2d BASIS OF 9EARINiS IS THE CENNICINF OF AOANS Si. , SOUIN Or Oily AOE. 0EIM N W ZOO N' N PER � tD TR. NAP N0. 2616% NO ?27/77-ft O.A. AFAMMAV.SAUM o SITE EXHIBIT A PORTION OF THE M 1/2 OF SECTION 2% T 5 S. R 7 E. S.B.N. »I ` a1NrM da: sois sN SCALE i' - 900' J.N. 1007 SHEET f OF i S1xT 319682 EXHIBIT "C" RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO ) AND MAIL TAX STATEMENTS TO: City of La Quinta ) 78-495 Calle Tampico ) La Quinta, California 92253 ) Attn: City Clerk ) (Space above for Recorder's Use) DEVELOPER LEASE AGREEMENT THIS DEVELOPER LEASE AGREEMENT ("Agreement") is entered into as of the day of , 1997, by and among the City of La Quinta, a charter city ("City") and Stamko Development Co., a California limited partnership ("Developer") with reference to the following: RECITALS A. WHEREAS, Developer is the fee owner of certain property located in the City ("Project Site"), which Project Site is described on Exhibit "A"attached hereto and depicted on Exhibit "B" attached hereto; and B. WHEREAS, in connection with the development of the Project, Developer intends to dedicate and convey certain real property to the City for public facilities ("Dedicated Property"), which Dedicated Property is described on Exhibit "C" attached hereto and depicted on Exhibit "D" attached hereto; and C. WHEREAS, the City currently owns certain right-of-way adjacent to the Project Site ("Existing Right -of -Way"), which Existing Right -of -Way is described on Exhibit "E" attached hereto; and D. WHEREAS, a portion of the Dedicated Property is intended to be used for future right-of-way adjacent to the Project Site ("Future Right -of -Way"), which Future Right -of -Way is depicted on Exhibit "F" attached hereto; and E. WHEREAS, the City desires, subsequent to acquiring the Future Right -of -Way from Developer, to lease the Future Right -of -Way and the Existing Right -of -Way, as depicted on Exhibit "G" attached ("Public Property"), to Developer, for purposes of having Developer construct thereon certain public facilities ("Public Facilities"), which Public Facilities are described on Exhibit "I" attached hereto; and 319682 F. WHEREAS, Developer has agreed to construct the Public Facilities on the Public Property, and then to sublease the Public Property and Public Facilities to the City pursuant to a sublease ("Public Property Sublease"), for the benefit of the public and in furtherance of public purposes of the City; NOW, THEREFORE, for and in consideration of the mutual covenants and agreement herein contained, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Agreement, have the meanings herein specified. (a) "Agreement" shall mean this Developer Lease Agreement. (b) "Base Rental Payments" shall mean the rental payments payable by the City to Developer pursuant to the Public Property Sublease, as described herein. (c) "City" shall mean the City of La Quinta, California, a charter city of the first receives Sales, and its successors and assigns. (d) "Dedicated Property" shall mean that certain real property as described on Exhibit "C" and depicted on Exhibit "D", which real property shall be conveyed by Developer to the City pursuant to the terms of this Agreement. partnership. (e) "Developer"" shall mean Stamko Development Co., a California limited (f) "Existing Right -of -Way" shall mean the existing right-of-way currently owned by the City, as described in recital paragraph D hereof. (g) "Future Right -of -Way" shall mean that portion of the Dedicated Property to be conveyed by the Developer to the City for future right-of-way, as described in recital paragraph E. hereof. (h) "Interest Component" shall have the meaning set forth in Section 7 hereof. (i) "Lease Commencement Date" shall mean that date upon which the City accepts Developer's dedication of the Future Right -of -Way. 0) "Leasehold Value" shall have the meaning set forth in Section 7 hereof. (k) "Principal Component" shall have the meaning set forth in Section 7 hereof. 2 319682 (1) "Project" shall mean the commercial facility and related improvements described in recital paragraph B- above. (m) "Project Site" shall mean the real property described on Exhibit "A" and depicted on Exhibit "B" attached hereto. (n) "Public Facilities" shall mean the public facilities to be constructed by Developer on the Public Property described on Exhibit "I" attached hereto. (o) "Public Property" shall mean, collectively, the Future Right -of -Way and the Existing Right -of -Way, as described herein. (p) "Public Property Lease" shall mean the portion of this Agreement which constitutes the lease of the Public Property by City, as lessor, to Developer, as lessee (see Section 3 below). (q) "Public Property Sublease" shall mean the portion of this Agreement which constitutes the sublease of the Public Property by Developer, as sublessor, to City, as sublessee (see Section 5 below). (r) "Rental Period" shall have the meaning set forth in Section 7(a)(2) hereof. (s) "Sales and Use Tax" shall mean the 1% sales and use tax imposed and received by the City under authority granted to the City pursuant to Section 7201 of the California Revenue and Taxation Code. (t) "Sales and Use Tax Revenues" shall mean any revenues collected by the City pursuant to Sales and Use Tax as described above. (u) "Sublease Commencement Date" shall mean that date upon which the City. accepts the Public Facilities as being complete. (v) "Term of this Agreement" shall mean that period of time commencing as of the date of this Agreement and terminating as of the date of termination of the Public Property Sublease. Ciection 2. ConManceof . • ' • • . l Developer shall conveyor cause to be conveyed to the City or its designee, and the City or its designee shall accept conveyance of, the Dedicated Property, for public purposes, prior to Developer's seeking building permits for the construction of any portion of the Project. Developer covenants that prior to conveying the Dedicated Property to the City or its designee, and provided that the City performs its obligations as set forth in Section 7 of this Agreement, Developer shall own fee title to all of the Dedicated Property, and that such property shall be conveyed to the City 319s82 or its designee free and clear of all liens and encumbrances, except those approved in writing by the City. Such conveyance of the Dedicated Property from Developer to the City or its designee shall be deemed to be and is a condition precedent to the rights and obligations of the parties under the terms of this Agreement, provided however, that such conveyance shall not be a condition precedent to those obligations of the City under Section 7(b)(2) of this Agreement. Upon the Developer's conveyance of the Dedicated Property to the City or its designee, this Agreement shall be recorded in the Official Records of the City of La Quinta, California. Section 3. Public Prosy Lease. Effective upon the conveyance of the Dedicated Property to the City, or its designee, as described above, the City (or its designee) hereby leases the Public Property (consisting of the Future Right -of -Way and Existing Right -of -Way) to Developer and Developer leases the Public Property from the City, or its -designee, on the terms and conditions set forth in this Agreement. Rent for the entire term of the Public Property Lease shall be an advance payment by Developer to the City of the sum of $1.00. The term of the Public Property Lease shall commence on the date that the City or its designee accepts conveyance of the Dedicated Property and continue until the termination of the Public Property Sublease, as described herein, and, upon termination of the Public Property Sublease, the Public Property Lease shall likewise terminate. Section 4. Construction of Public Facilities. (a) Developer's Obligations. Developer shall finance and construct on the Public Property all of the Public Facilities described on Exhibit "I" attached hereto. As shown on Exhibit "I", the Public Facilities shall be constructed in two phases. The first phase shall be constructed concurrently with the Phase I of the Project as defined in the Development Agreement between the parties dated . The second phase of the public improvements as set out on Exhibit "I" shall be constructed on the earlier of: (1) The issuance of the first grading permit for any part of Phase III; or (2) The issuance of the first building permit for Phase II; or (3) The expiration of three (3) years following the recordation of the Parcel Map 28525 in connection with the Project. Notwithstanding the foregoing, Developer shall have no obligation to commence the second phase of the public improvements as set out on Exhibit "I" unless and until rights of way across necessary properties, other than the Developer's Property, are acquired permitting the public improvements. Developer shall deliver to the City all funds necessary for the acquisition of such rights of way pursuant to any acquisition agreement entered into by City or when required in order to obtain immediate possession under eminent domain. 4 319682 In connection with the Public Facilities, Developer shall do the following: (1) prepare plans and specifications for the Public Facilities in accordance with City standards, and submit such plans and specifications to the appropriate City departments for review and approval; (2) provide the City with twenty (20) days written notice prior to the commencement of construction; (3) secure all necessary licenses, permits, rights of way, and rights of entry as may be reasonably necessary for construction; (4) prior to commencement of construction, Developer shall provide the City with faithful performance and material payment bonds or other security as approved by City, each in the amount of 110% of the estimated cost of construction, as determined by the City; the survey, amount and form of such bonds shall be subject to the approval of City Attorney; and such bonds shall remain in full force and effect until the Public Facilities are accepted by the City, at which time such bonds may be reduced to 10% of the cost of construction for a period of one (1) year to guarantee against any defective work, labor or materials; (5) provide workers' compensation insurance for all Developer employees working on construction, in amounts as required by California law; (6) provide and maintain comprehensive liability insurance which shall name both Developer and the City as insureds, and which shall provide coverage from personal injury claims, including accidental and/or wrongful death, and claims for property damage which may arise directly or indirectly from Developer's construction work, or the performance of Developer's obligations hereunder, whether such construction and performance is done by Developer, or any constructor, subcontractor or other party employed directly or indirectly by any of them; such insurance shall provide for limits of not less than $2,000,000 per occurrence and shall further provide that the issuing company may not cancel, modify or terminate coverage unless it shall have given the City thirty (30) days' prior written notice of such cancellation, termination or modification; Developer shall assure that the insurance required by this section shall remain in full force and effect throughout the construction of the Public Facilities, and Developer's failure to do so shall be deemed a material breach of this Agreement;. and (7) upon completion of construction, convey to the City, in form and substance acceptable to City Attorney, all rights of way and easements deemed necessary by the City Engineer, in its reasonable discretion, for the operation and maintenance of the Public Property and Facilities, including ingress and egress easements as may be reasonably need for storm drain operation and maintenance. 5 319s8z (b) Citv-'s Obliga io c. In connection with Developer's construction of the Public Facilities, the City shall do the following: (1) review and either approve or provide comments for necessary revisions for the plans and specifications for the Public Facilities prepared by Developer in a timely manner prior to the commencement of construction of said Public Facilities; and (2) inspect the construction of the Public Facilities as required; (3) . upon completion and acceptance by the City of the Public Facilities and conveyance of all required rights of way and easements, accept full responsibility for operation and maintenance of the Public Property and Public Facilities. Section• • •. rs Effective upon the completion of the Public Facilities, Developer hereby subleases the Public Property and the Public Facilities construction on Adams Street (Exhibits "F-1 and F-2") to the City and the City hereby subleases the Public Property and the Public Facilities construction on Adams Street (Exhibits F-1 and F-2) from Developer on the terms and conditions set forth in this Agreement. The Public Facilities shall be deemed to be "complete" upon final inspection and acceptance by the City. Concurrently, the Public Property and Public Facilities constructed on Highway I I I (Exhibit "E-3 and E-4") shall be transferred to the State of California. The Public Property Sublease shall begin as of the Commencement Date as defined in Section 1(c) hereof. The Public Property Sublease shall end on the earlier of (1) December 31 st of the calendar year which is thirteen (13) years after the Commencement Date, or (2) when the full amount of the Leasehold Value, as defined in Section 7 below, has been paid to Developer. Q-ection•. .n under Public ProneM Sublease. Under the terms of the Public -Property Sublease, the City shall perform the following obligations: .(a) Base Rental Payments. s. The City agrees to pay to Developer, on a quarterly basis, base rental payments ("Base Rental Payments") for the applicable rental period or portion thereof throughout the term of the Public Property Sublease. All Base Rental Payments shall be allocated as set forth in this Section 7. (1) Amounts of Base Renal Payments. Base Rental Payments shall be calculated as follows: From the Sublease Commencement Date and continuing through the term of the Public Property Sublease, Base Rental Payments shall be fifty percent (50%) of the Sales and Use Tax Revenues generated by businesses or activities located on the Project Site up to a maximum amount of Three Hundred Eighteen Thousand Four Hundred and Eighty-seven Dollars ($318,487) �• .. 329682 in any twelve (12) months of the Sublease. After completion of Phase II of the Public Facilities, the maximum amount payable by the City shall increase an additional One Hundred Twelve Thousand Dollars ($112,000) to a total maximum annual payment amount of Four Hundred Thirty Thousand Dollars ($430,000). (2) Time for Pavm n . The City's obligation to pay Base Rental Payments shall begin on the Sublease -Commencement Date. The City shall make quarterly Base Rental Payments to Developer for each rental period ("Rental Period") or portion thereof, which Rental Periods shall consist of each calendar quarter. Each Base Rental Payment for a Rental Period shall be due to Developer on the later of: (a) One hundred eighty (180) days after the City receives its sales tax payment for the Rental Period from the State of California; or (b) One (1) month after the later of the two following dates: (i) The date the City receives its sales tax payment with respect to the Rental Period; or The date the City receives its quarterly tax reconciliation from the State of California for such Rental Period. Notwithstanding the foregoing, a Base Rental Payment for any Rental Period shall be made to Developer by City no later than two hundred twenty (220) days after the City receives its sales tax payment for such Rental Period from the State of California. (3) Form of Base Rental Payments. Each Base Rental Payment shall be paid in lawful money of the United States of America, by warrant or check drawn against funds of the City, and mailed or delivered. to the address provided for Developer in Section 15 of this Agreement. (4) Records Required. Developer shall provide, or cause each business or activity located on the Project Site to provide, to the City, all of the information required by the "Information Sheet on Sales and Use Tax Reporting and Information Required by the City of La Quinta," a copy of which is attached hereto as Exhibit " T'. It shall be the obligation of Developer to provide the required information to the City in a timely manner and to keep the information accurate during the term of the Public Property Sublease. Failure to supply the required information in a timely manner may, at the discretion of the City, result in a delay of that portion of the- Base Rental payment applicable to any such business or activity which has failed to provide the required information. The City shall maintain sufficient records and accounts to separately identify all Sales and Use Tax Revenues paid to it from businesses and activities located on the Project Site, and shall provide to Developer, at the time of making each base Rental Payment, a written accounting with respect to each Payment. 7 319(;8z (5) Certain Definitions. As used in this Agreement, the following terms will have the indicated meanings: (i) "Principal Component" means the amount of Two Million Nine Hundred and Fifty Five Thousand Six Hundred and Fifty Dollars ($2,955,650) as increased by the "CPI Component" (defined below) when applicable so that if the CPI Component is applicable then any reference to Principal Component includes the CPI Component. If the Public Facilities are constructed in two phases, then the initial Principal Component shall be Two million One Hundred Thirty -One Thousand One Hundred Dollars ($2,13 1, 100). The initial Principal Component shall be increased by Eight Hundred Twenty Four Thousand Five Hundred Fifty Dollars ($824,550) (referred to as the "Second Phase Amount") when the second phase of the Public Facilities is constructed and accepted by the City or other governmental agency. (ii) "Interest Component": Simple interest on the Principal Component which shall accrue at the rate equal to eight and one-half percent (8.59/o) per annum payable as provided in this Agreement until the Principal Component is paid in full. (iii) "CPI Component": If the Public Facilities are constructed in two phases, then the Second Phase Amount will be increased annually on the anniversary date from the date of execution of this agreement by the City to reflect the increase in the Consumer Price Index (all items index) for Riverside/San Bernardino area for a maximum period of five (5) years, commencing on the date of this Agreement, and the increase (both annually and in total) is referred to a the "CPI Component". (iv) "Leasehold Value" means the total of the Principal Component (including, if applicable, the CPI Component) and the Interest Component. (i) Notwithstanding anything to the contrary herein, the aggregate Base Rental Payments payable by the City to Developer during the term of the Public Property Sublease shall not exceed the full amount of the Leasehold Value and are specifically limited to Sales and Use Tax funds as described in Section 8 herein. All Base Rental Payments made by the City to Developer shall be allocated first to the Interest Component accrued and unpaid as of the date of City's payment of the Base Rental Payment. Any amount of a Base Rental Payment in excess of the amount applied to the Interest Component shall be applied to the reduction of the Principal Component. In the event that the Base Rental Payments over the term of this Agreement do not equal the Leasehold Value the Developer agrees that no further payments are due and all obligations of the City are satisfied. (ii) The Interest Component shall commence to accrue on the date of the Sublease Commencement Date and shall accrue until the Principal Component is paid in full or, if the Public Property Sublease is terminated validly before such full payment as provided in this Agreement then the Interest Component shall cease accruing upon the payment by City to Developer of all amounts which become due to Developer as a result of the termination of this Agreement. 319682 Section 8. Source of Citv_'s Payment Obligations. The obligations of the City to Developer to pay the Base Rental Payments shall be a special and not a general obligation of the City, and shall be payable solely from the Sales and Use Tax Revenues received by the City from businesses and activities conducted on the Project Site. Prior to the time that the full amount of the Leasehold Value under this Agreement is fully paid to Developer as provided herein, the City shall not pledge or encumber the Sales and Use Tax Revenues derived or to be derived from businesses or activities operating on the Project Site so as to impair Developer's rights hereunder. During the term of this Agreement, any subsequent pledge of the Sale and Use Tax Revenues generated from the businesses and activities conducted on the Project Site shall be subject and subordinate to Developer's rights hereunder. Notwithstanding any provision herein to the contrary, in the event that the State of California's allocation of Sales and Use Tax Revenues to the City is changed, revised or otherwise amended after the date of this Agreement, the City and Developer each agree to meet in good faith to revise this Agreement to reflect as closely as possible the original intent of the parties in entering into this Agreement with respect to the allocation of Sales and Use Tax Revenues. Section?. Maintenance. ReAdditions •1 l• Improvements to Public T. (a) Operating and Maintenance Ex2cnse. Throughout the term of the Public Property Sublease, the City shall, at its sole expense, operate, maintain, repair and/or replace as necessary, the Public Facilities (subject to the Sublease related to Adams Street and not including any Public Facilities dedicated to another public entity) and insure that said Public Facilities remain in good order, condition and repair at a level of service consistent with that maintained for similar types of public improvements located elsewhere throughout the City. The parties hereto acknowledge and agree that Developer shall have no obligation to incur any expense of any kind or character in connection with the management, operation, repair, replacement or maintenance of the Public Facilities during the term of the Public Property Sublease. Throughout the term of the Public Property Sublease, the City shall keep the Public Facilities free and clear of all liens, charges, and encumbrances. Notwithstanding any damage to the Public Facilities from whatever source, the City shall, throughout the term of the Public Property Sublease, repair the Public Facilities consistent with this paragraph without any interruption or abatement of its rental obligations as set forth hereunder. (b) Additions and Im=vements to the Public Facilities, The City shall have the right throughout the term of this Agreement, to make any additions or improvements to the Public Facilities, to attach fixtures, structures or signs, and to affix any personal property thereto, provided the use of the Public Facilities for the purposes contemplated in this Agreement is not impaired in any way. Title to all personal property placed in or on any of the Public Facilities shall remain with the City, provided however, that any modifications or improvements which constitute fixtures will automatically become subject to this Agreement. Subject to the foregoing, the title to any personal property, improvements or fixtures which may be placed on the Property by any sublessee or licensee of the City shall be controlled by the -terms of the sublease or license contract entered into by the City with such sublessee or licensee. z 319682 Upon Developer's completion of construction of the Public Facilities and their acceptance by the City, Developer shall have no further obligation of any kind to make any additions, improvements, repairs or other changes to the Public Facilities. In the event that Developer elects to make additions, improvements or other changes to the Public Facilities it shall do so only with the prior written consent of the City. Any such additions, improvements or other changes shall comply with the encroachment permit rules of the City and all other applicable City building requirements. Notwithstanding the foregoing, should Developer make application for additional on site improvements beyond those contemplated by the Project, Developer may, at that time, be conditioned to make further improvements to the Public Facilities as part of the approval for such additional on site developments. Section 10. Indemnification. (a) Indemnification by the City. The City agrees for the term of the Public Property Sublease, it shall indemnify, defend and hold harmless Developer, its officers, agents, employees, directors and representatives from any loss, claim, expense, and/or penalties arising directly or indirectly from the Public Facilities and the City's operation, maintenance and repair thereof, save and except those losses, claims, expenses and/or penalties arising from the gross negligence or willful misconduct of Developer. Such indemnification shall include, without limitation, indemnification for damage or claims for personal injury, including death, and claims for property damage, and including any costs incurred by Developer in defending against same, including without limitation, actual attorneys' fees. The City represents that it is self -insured as a member of a joint powers insurance authority (the "Authority") as to public liability insurance against claims for bodily injury or death or damage to property occurring upon, or about the improvements. In the event that the City elects to purchase liability insurance in the future rather than remaining self -insured with the Authority, such liability insurance shall, during the term of this Public Property Sublease, name Developer as an additional insured to the extent appropriate to comply with the provisions of this Section 10. (b) Indem_nification by Develoose;. The Developer agrees that throughout the term of the Public Property Lease, it shall indemnify, defend and hold harmless the City, its officers, agents, employees and representatives from any loss, claim, expense and/or penalties arising directly or indirectly from Developer's construction of the Public Facilities, committed in connection with Developer's performance of or failure to perform its obligations under the terms of the Public Property Lease. Developer agrees that throughout the term of the Public Property Sublease,. it shall indemnify and hold harmless -the City, its officers, agents, employees and representatives from any loss, claim, expense and/or penalties arising directly or indirectly from Developer's gross negligence or willful misconduct committed in connection with Developer's performance of or failure to perform its obligations under the terms of the Public Property Sublease. Such indemnification, above identified, shall include, without limitation, indemnification for damages or claims for personal injury, including death, and claims for property damage, and including any costs incurred by City in defending against same, including without limitation, actual attorneys' fees. 4 319682 Section 11. Sale Transfer or Assignment. The City shall have the right to permit the nonexclusive use of all or any portion of the Public Facilities by any third party as may be necessary to serve the public purposes of the City, provided however, that no sale, transfer or assignment of all or any portion of the City's rights under the terms of this Agreement shall be construed as relieving the City from any or all of its obligations as set forth in this Agreement. Specifically, it is contemplated that all or portions of those Public Facilities to be constructed adjacent to Highway 111 shall be transferred to the State of California and removed from both the Public Property Lease and the Public Property Sublease and shall no longer be subject to any part of this Agreement relating to such Lease and Sublease after completion, however, such transfer shall not affect the obligation of the City to pay the full Leasehold Value to Developer according to the terms and limitations of this Agreement. Except as otherwise provided in this Agreement, the Developer shall not assign all or any portion of its rights and obligations hereunder to any successors -in -interest to the Project Site or portion thereof, except with the prior written consent of the City, which consent shall not be unreasonably withheld. Any such assignment shall not relieve Developer of its obligations under the terms of this Agreement, except upon express written consent of the City. Notwithstanding anything contained herein to the contrary, the Developer may, without the prior written consent of the City, assign any or all of its rights and obligations hereunder to any Affiliated Entity. For purposes of this Agreement, an "Affiliated Entity" shall mean any corporation, partnership, limited liability company or other form of business entity in which Developer has not less than a fifty percent (50%) ownership interest and not less than fifty percent (50%) management control. Any sale, transfer or assignment of the rights and obligations of either party under the terms of this Agreement shall require thirty (30) days prior written notice to the other party of such assignment, provided however, that no such prior written notice shall be required in connection with any of the following: (1) An assignment by Developer which consists of the conveyance for the purpose of securing loans to be used solely for the financing of the direct and indirect costs of the Public Facilities, including without limitation, financing costs, interest and commissions, planning, design, construction, development and leasing of the Public Facilities to be constructed by Developer, provided that the assignee of any such assignment shall receive only the right to collect Base Rental Payments due under the terms of this Agreement. (2) Transfers resulting from a sale of Developer's interest in the Public Facilities or the Public Property or any portion thereof at foreclosure (or a conveyance thereof in lieu of a foreclosure) pursuant to a foreclosure thereof by a lender. (3) Subject to the terms contained in Section 9(a) of this Agreement, the conveyance or dedications of any portion of the Public Facilities or the Public Property, the Dedicated Property or the Public Facilities, to the City or other appropriate governmental agency, or the granting of easements or permits to facilitate the development of the Project. 11 319682 Section 12. Eminent Domain. If the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall terminate as of the date possession shall be so taken. If less than the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall continue in full force and effect and shall not be terminated by virtue of such taking, and the parties hereto waive the benefit of any law to the contrary, and in such event there shall be a partial abatement of the Base Rental Payments due under the terms of this Agreement. Any award made in eminent domain proceedings for the taking or damaging of the Public Facilities, in whole or in part, shall be paid to Developer to the extent of the then remaining balance of the Principal Component of the Leasehold Value, plus any portion of the Interest Component which is then accrued but not yet paid. The amount of the award which is in excess of the sum needed to pay Developer the then remaining balance of the Principal Component, plus any accrued but then unpaid portion of the Interest Component, shall be paid to the City. Section 13. Lims. The City shall pay or cause to be paid when due, all sums of money that may become due for, or purporting to be for, any tabor, services, materials, supplies or equipment alleged to have been furnished or to be furnished to or for the Public Facilities throughout the term of the Public Property Sublease and which may be secured by any mechanics', materialmen's or other lien against the Public Facilities and/or Developer's interest therein, and the City shall further cause each such lien to be fully discharged and released, provided however, that if the City and/or Developer desires to contest any such lien, that party may do so upon posting security in a form and amount acceptable to the other party sufficient to pay said sums in the event that said liens are reduced to final judgment. Developer shall cooperate with the City in its efforts to discharge and release any liens pursuant to this Section 13 and shall further discharge and release or cause to be discharged and released any liens created directly or indirectly by Developer on or against the Public Facilities. Section 14. Quiet Egiovmen . The parties hereto mutually covenant and agree that the City, by keeping and performing the covenants contained herein, shall at all times during the term of this Agreement peaceably and quietly, have, hold and enjoy the Public Facilities without hindrance or molestation by Developer or anyone whose rights arise through Developer. Section 15. Notices. 3.11 Notices: All notices, demands, offers, and- correspondence and other communications required or permitted under this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid. Any notices sent shall be deemed received upon the earlier of: 12 .e 319682 (a) If personally delivered, the date of delivery to the address of the person receiving such notice; or (b) if mailed, three (3) business days after the date of posting by the United States Post Office, in the form of and at the address set forth below: If to the City: City of La Quinta Attention: City Manager 78-495 Calle Tampico La Quinta, California 92253 If to Developer and/or Owner: STAMKO Development Co. 10100 Santa Monica Boulevard, Ste. 400 Los Angeles, CA 90067 Attention: Christine F. Clarke A Party may change its address by giving notice and other writing to the other Party in accordance with the notice provisions of this Section. Thereafter, notices, demands, correspondence and other communications shall be delivered to the new address. Section 16. Taxes. During the term of this Agreement, the City shall be responsible for and pay when due any ad valorem taxes, or special assessments, if any, levied upon the Public Property and/or the Public Facilities or upon any parties' interest therein. The parties hereto agree to cooperate with each other. in any effort to apply for exemption from any such tax or assessment. Throughout the term of this Agreement, Developer shall pay any gross receipt taxes, income taxes or any other. form of tax whatsoever which may be levied upon Developer's rental income derived from this Agreement. Section 17. Waiver. The waiver by either party of any breach by the other party of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. To be effective, any waiver must be in writing and signed by an authorized representative of the party bound by said waiver. Section 18. Default by the City. If the City fails to pay any Base Rental Payments due hereunder within ten (10) days from the date that such Base Rental Payment is due and payable, or if the City fails to keep any other terms, covenants or conditions herein for a period of thirty (30) days after written notice thereof from 13 329682 Developer to the City, or if the City shall abandon or vacate the Public Facilities, or if the City's interest in this Agreement or any part thereof shall be assigned or transferred in violation of the terms of this Agreement, either voluntarily or by operation of law, then in such event the City shall be deemed to be in default under the terms of this Agreement. If the Developer sends a written notice of default as provided in the preceding paragraph, and the City fails to remedy any default described in the notice then following thirty (30) days, Developer has the right, at its option, and without further notice or demand, to do any one or more of the following (and in connection with obtaining any equitable relief, City hereby acknowledges that Developer may seek such equitable relief): (1) Take any action or legal proceeding to recover Base Rental Payments as they come due pursuant to Section 7 of this Agreement. (2) To terminate this Agreement and all rights of City under this Agreement by giving to City a written notice of termination. Upon termination, Developer may recover the worth at the time of award of any unpaid Base Rental Payments earned at the time of such termination. The "worth at the time of award" is computed by allowing interest from the date of termination until the time of award at the rate of eight and one-half percent (8.5%). The maximum amount recoverable shall be the amount of Base Rental Payments plus interest due at the time of termination. (3) If permitted under applicable law, to continue this Agreement in effect and obtain a judgment and recover the amounts set forth in Subsection (2) above. (4) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to make Base Rental Payments under this Agreement as they become due pursuant to the terms and conditions of this Agreement. (5) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to perform any other terms and conditions of this Agreement. (6) Recover from the City all costs and fees incurred by it (including attorneys' fees and court costs) in enforcing its rights under this Agreement, including, but not .limited to collecting amounts due under this Agreement. Without limiting the generality of the foregoing, Developer shall have the remedy described in California Civil Code Section 1951.4, providing that Developer may elect to continue this Agreement in effect, after the City's breach and abandonment, and recover rent as it becomes due, if the City has the right to sublet or assign, subject only to reasonable limitations. Section 19. Default by Developer. If Developer shall fail to keep any terms, conditions or covenants contained in this Agreement for a period of thirty (30) days after written notice thereof from the City to Developer, or if Developer shall file any petition or institute any proceedings wherein Developer asks or seeks to be adjudicated a bankrupt, or to be discharged from any or all of its debts or obligations, or offers 14 319682 to its creditors to effect a composition or extension of time to pay Developer's debts, or Developer seeks a reorganization'or seeks to effect a plan of reorganization or readjustment of Developer's debts, or if any such petition or proceeding of a same or similar nature shall be filed, or instituted against Developer, and Developer shall fail to have such petition or proceeding dismissed within sixty (60) days of its filing, then and in such event Developer shall be deemed to be in default hereunder. If Developer should, after receiving written notice from the City, fail to remedy any such default within sixty (60) days of delivery of said notice (sixty-five (65) days if the notice is sent by mail), then the City shall have the right, at its option, to terminate this Agreement by delivering written notice .of such intent to terminate to Developer not less than sixty (60) days prior to the effective date of such termination, and after the effective date of such termination, the City shall be relieved of all obligations hereunder, provided however, in the event that the termination occurs after the completion of the Public Facilities construction and their acceptance as complete by the City, the City shall continue to make the Base Rental Payments pursuant to Section 7 hereof for the thirteen -year term that the Agreement would have been in effect if not terminated, to Developer or its successor in interest, as long as the City continues to use the Public Facilities, Section 20. Hazardous Materials. (a) D v lop r„ a 's Representations. Developer hereby represents that, to the best of its knowledge, the Dedicated Property is not in violation of any currently existing federal, state or local hazardous materials laws. Developer further agrees that it shall indemnify, protect, defend and hold harmless the City from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Dedicated Property, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Dedicated Property prior to the Commencement Date of the Public Property Sublease and not otherwise resulting from the City's use or possession of the Dedicated Property- (b) City's Representation. City hereby represents that, to the best of its knowledge, the property constituting the Existing Right -of -Way is not in violation of any currently existing federal, state or local hazardous materials laws. City further agrees that it shall indemnify, protect, defend and hold harmless the Developer from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Existing Right of Way, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Existing Right of Way prior to the commencement date of the Public Property Lease and not otherwise resulting from the Developer's use or possession of the Existing Right of Way. 15 Section 21. Attorneys Fees. 313687.. In any action or arbitration arising directly or indirectly out of the terms of this Agreement, the prevailing party shall be entitled to all costs and expenses, including without limitation, actual attorneys' fees and costs of suit whether in equity or in an action at law, as may be necessary to enforce the terms and conditions of this Agreement. Section 22. Option to P ur h ae. The City at any time during the term of this Agreement, shall have the option to purchase the Public Facilities in the manner provided in this Section. The City may exercise its option to purchase the Public Facilities by giving Developer not less than sixty (60) days' prior written notice of its intent to exercise such option. The City's notice of intent to exercise its option shall specify the date upon which the purchase shall occur ("Purchase Date"), which Purchase Date must coincide with the due date for the City's payment to Developer of a Base Rental Payment as such dates are defined in Section 7 of this Agreement. Upon exercising its option to purchase the Public Facilities, the purchase price ("Purchase Price") to be paid by the City to Developer shall be equal to the outstanding balance, as of the Purchase Date, of the Principal Component of the Leasehold Value attached hereto, plus any portion of the Interest Component which is accrued and unpaid on the Purchase Date. On the Purchase Date, the City shall pay the full amount of the Purchase Price to Developer in immediately available funds, and the City shall also pay at that time, in cash or other immediately available funds, the amount of any Base Rental Payments which have accrued prior to the Purchase Date, but which Base Rental Payments have not yet been paid to Developer. Upon the City's exercise of its option and upon the City's payment to Developer of the Purchase Price and Base Rental Payments as provided under the terms of this Section 22, all right, title and interest of Developer in and to the Public Property and the Public Facilities shall be transferred to the City "as is" and without warranty. Section 23. Recordation and Filing. Upon full execution of this Agreement, Developer shall record this Agreement in the Official Records of the County Recorder for. the County of Riverside, California. Section 24. Entire Agreement. This Agreement contains the entire Agreement of the parties hereto with reference to the subject matter hereof, and supersedes all negotiations or previous agreements between the parties with respect to all or any portion of the subject matter hereof. Section 25. Validity and Severabilit�v. If any one or more of the terms, provisions, promises, covenants or conditions contained in this Agreement shall to any.extent be adjudged invalid; unenforceable, void or voidable for any reason whatsoever by a final decision of a court of competent jurisdiction, then each of the remaining terms, provisions, promises, covenants and conditions contained herein shall remain unaffected thereby and shall be valid and enforceable to the fullest extent permitted by law. 16 a. ; 319682 If for any reason this Agreement shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by Developer or by the City, or if for any reason it is held by such a court that the covenants and conditions of the City or Developer hereunder, including covenants to pay rents as set forth in this Agreement, are unenforceable for the full term hereunder, then and in such event for and in consideration of the right of the City to possess, occupy and use the Public Facilities and the right of Developer to occupy the Project, which rights in such event are hereby granted, this Agreement shall thereupon become and shall thereafter be deemed to be a lease from year to year under which the annual rentals herein specified will be paid by the City and Developer respectively. Section 26. HsAdi=. Any headings contained in this Agreement are solely for the purposes of convenience of reference and shall not constitute a part hereof nor shall they be utilized to interpret any term or condition contained in this Agreement. Section 27. Counteroarts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and all of which when taken together shall be deemed a single original. Section 28. Governing Law. This Agreement shall be construed and governed by the laws of the State of California. Section 29. Time of the Essence. Time is of the essence with respect to this Agreement. Section 30. This Agreement may be amended at any time, and from time to time provided, however, that no amendment of this Agreement shall be effective unless such amendment is in writing and signed by all parties hereto. Section 31. Other Documents. The parties hereto agree that each shall, concurrently herewith or at any time hereafter, upon reasonable demand by the other, execute any other documents or instruments and do or cause to be done any other acts as may be necessary or convenient to carry out the intent and purposes of this Agreement. 17 319682 Section 32. Successors. Subject to the provisions contained herein, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto. Section 33. Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (a) the party is duly organized and existing; (b) they are duly authorized to execute and deliver this Agreement on behalf of said party; (c) by so executing this Agreement, such party is formally bound to the provisions contained herein; (d) the entering into of this Agreement does not violate any provision of any other agreement to which that party is bound; and (e) there is no litigation nor legal proceeding or other legal impediment which would prevent the parties from entering into this Agreement. Section 34. Exhibits and Recitals. The Recitals contained in this Agreement, and each and every one of the Exhibits referenced in this Agreement shall be deemed to be incorporated herein by this reference. The Exhibits attached hereto are as follows: [M. fit -To ff"TT0,111111 "A" Legal Description of Project Site "Be' Depiction of Project Site licit Legal Description of Right of Way Dedication (Highway 111) "D" Depiction of Right of Way Dedication (Highway 111) "Eli Legal Description of Existing Right of Way (Adams) "Fit Depiction of Existing Right of Way (Adams) "G" Legal Description of Right of Way Dedication (Adams) "H" Depiction of Right of Way Dedication (Adams) "I" Public Facilities "J" Standard City Form IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested to by the proper officers for each of the parties and the official seals of the parties to be hereto affixed, all as of the day and year first above written. CITY OF LA QUINTA, a municipal charter city By: 18 RON PERKINS, Mayor 319682 ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN HONEYWELL, City Attorney City of La Quinta, California 19 STAMKO DEVELOPMENT CO., a California limited partnership EXHIBIT "A" LEGAL OESCRIPTION PROJECT SITE 319682 PAGE 1 IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF THE NORTHWEST ONE -QUARTER LYING SOUTHERLY OF STATE HIGHWAY I I I AND THE SOUTHWEST ONE -QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SOUTHWEST ONE -QUARTER OF SECTION 29: THENCE NORTH 00' 20' Or WEST ALONG THE WESTERLY LINE OF SAID SOUTHWEST ONE -QUARTER A DISTANCE OF 1087.25 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WESTERLY LINE NORTH DO- 29 Or WEST A DISTANCE OF 1565.71 FEET TO THE NORTHWEST CORNER OF SAID SOUTHWEST ONE - QUARTER OF SECTION 29; THENCE NORTH 00' 217 Or WEST, ALONG THE WESTERLY LINE OF THE NORTHWEST ONE -QUARTER OF SECTION 29, A DISTANCE OF 318.50 FEET TO THE BEGINNING OF A NONTANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 2555.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT SEARS SOUTH 190 32' 07" WEST, SAID POINT BEING ON THE SOUTH LINE OF THE STATE HIGHWAY CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED AUGUST 23. 1968 AS INSTRUMENT NO. 82038, OFFICIAL RECORDS. THENCE EASTERLY ALONG SAID SOUTHERLY LINE AND ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 11- 53' 09", AN ARC DISTANCE OF 530.03 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND TANGENT TO LAST MENTIONED CURVE. SOUTH 82. 21' 02" EAST A DISTANCE OF 1207.12 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 5055.00 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06' 0712", AN ARC DISTANCE OF 534.00 FEET TO A POINT, A RADIAL LINE PASSING THROUGH SAID POINT SEARS SOUTH 01.35 46" WEST; SAID POINT BEING ON THE WESTERLY LINE OF THE EASTERLY 330.00 FEET OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; 319682 PAGE 2 PROJECT SITE LEGAL DESCRIPTION CONTINUED THENCE PARALLEL WITH THE EASTERLY LINE OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29 AND NONTANGENT TO LAST MENTIONED CURVE, SOUTH 00' 17 55" EAST A DISTANCE OF 1311.8 TME S UOTHINEST ONE -QUARTER OSOUTHERLY F SAID SECTtONTHE NORTHEAST ONE -QUARTER OF 29; THENCE NORTH 89' 51, 4W WEST ALONG SAID SOUTHERLY UNE A DISTANCE OF 330.0,1 FEET TO THE NORTHWE TMCORNERSOUTHWEST ONE -QUARTER, OF SAID SECTION SOUTHEAST ONE -QUARTER OF 29; THENCE SOUTH 00' IT Sr EAST ALONG SAID WESTERLY UNE A DISTANCE OF 239.23 FEET; THENCE NORTH 89' 51' 3V WEST A DISTANCE OF 1987.25 FEET TO THE TRUE POINT OF BEGINNING. SUBJECT TO EXISTING EASEMENTS OF RECORD. COMPRISING $7.72 ACRES, MORE OR LESS. (J�e�a * * M06 4sw A�1!•�•0�- EXHIBIT " B "TO EXHIBIT "A" ►R.2M.00 L-00•03 PLAT TO ACCOMPANY LEGAL DESCRIPTION OF SITE T-M.f17 fit O.R. r0/7t777�R�'!2' • 1 _ .N 1 Tm101C !/1 o 1 mw titR/M _ SEC. 29 EXISI DO RN M — 9' • am.00 l.HLI� INK 20 �• i O.R.TfOt fl ST. RIM Mfr !fi 15. ifAN EAlEla1T NN O.R. QW4"7 ao • PARCEL ' B" • LLA 95-198 . O.R. 95/251766 1 funM FUmow ,T AOAMS s d w•Lr LINE OF E•LY 330a = o I o OF M.E. 114 29 OF S.W. 1i4 !R R I • EXIST. 30• R/N PER u O. R. 52/320W 1 . a W I z = ` 30• N N UO I 1 i1 I I mr tR"' � DETAIL o.R. si/1077e N 0!'S!•16'M i0 0.01 330.00 - --/-- ii0.01 Ht 09'6f•Afi'M i' s00' N OMi7'06'M I R a f►al.!S I O.R. 'S/2517t[S t CD 0 0 N DrSf'3s'M 2227.25 � OD OASIS of WARINGS IS THE CENTH: I E OF ADANS ST.soU OF' 47TH AVE. It PER �7/77-0� TTn.Tn NAP ND. 26IS& O.R mAr=".SWM AM�tss+oc rwmc. SITE EXHIBIT ��� cm , "m ao A PORTION OF THE M i/2 OF SECTION 29. T 5 S. R 7 E. S.B.N. forme auawsum � SCALE Is - 300 J.N. i067 SHEET ! OF i SHEET owar•�n zuc an-t00! --- � - ei�tri to r RELOCATE EMTNQ SKMAL 'A G'MAOOMW WALL WNW,, 6 MASONRV WALL I" - Rnim SaOL all EXHIBIT B to EXHIBIT C PER MY REOURBIEW F(M UUMATE RO.W. 15' MD"T" SITE PLAN (70 K�F-STKEI) _!0' AVERAGE LANCGCMj-= PARKWAY MGM M/MGM CVJ ACCCSS 40 NJfiIH SPECIFIC PLAN THE CB�W AT " OUNTA STAMKO DEVELOPMENT MG"WO. Sn*h WW Assoc. WG*sr/ftMOM1 + Assoc Arddecome Hc""V8MPWc1m Assoc- Len -cape Ardftdtre ci 319682 EXHIBIT "C" TO EXHIBIT-"C" OF THE DEVELOPMENT AGREEMENT LEGAL DESCRIPTION OF RIGHT OF WAY DEDICATION (HIGHWAY 111) LEGAL DESCRIPTION FUTURE HIGHWAY 1I1 STREET DEDICATION IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. THAT PORTION OF THE NORTHWEST ONE -QUARTER LYING SOUTHERLY OF STATE HIGHWAY I I I AND THE SOUTHWEST ONE -QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHWEST ONE- QUARTEKOF SECTION 29; THENCE SOUTH 89' 35' W WEST ALONG THE NORTHERLY LINE OF SAID SOUTHWEST ONE -QUARTER A DISTANCE OF 330.00 FEET TO A POINT ON THE WESTERLY LINE OF THE EASTERLY 330.00 FEET OF THE NORTHEAST ONE - QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE SOUTH 00013' 15" EAST ALONG SAID WESTERLY LINE TO A POINT ON A NON -TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 5055.W FEET, A RADIAL LINE PASSING THROUGH SAID POINT SEARS SOUTH 01" 35' 46' WEST, SAID POINT BEING ON THE SOUTHERLY LINE OF THE STATE HIGHWAY CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED AUGUST 23, 1968 AS INSTRUMENT NO.82038, O.R., SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 01' IS 55" WEST A DISTANCE OF 15.01 FEET TO THE BEGINNING OF A NONTANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF W70.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT SEARS SOUTH 010 3T 2r WEST; THENCE WESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 060 03' 31", AN ARC DISTANCE OF 538.12 FEET; THENCE TANGENT TO LAST MENTIONED CURVE, NORTH 82.21' 02" WEST A DISTANCE OF1287.12 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 2570.00 FEET; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 09. 4V 49", AN ARC DISTANCE OF 437.95 FEET TO A POINT, A RADIAL LINE PASSING THROUGH SAID POINT HEARS NORTH 170 24' 4T' EAST; 31968z FUTURE HIGHWAY I I I STREET DEDICATION CONTINUED THENCE NONTANGENT TO LAST MENTIONED CURVE, SOUTH 53- 32' 19" WEST A DISTANCE OF 37.15 FEET TO A POINT LYING 55.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SOUTHWEST ONE -QUARTER, MEASURED AT RIGHT ANGLES; THENCE NORTH 00.20' OS" WEST PARALLEL WITH SAID WESTERLY LINE A DISTANCE OF 3.33 FEET; THENCE NORTH 51' 31' 44" EAST A DISTANCE OF 50.54 FEET TO THE BEGINNING OF A NONTANGENT CURVE. CONCAVE NORTHERLY, HAVING A RADIUS OF 2555.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 17' 1 T 27 WEST, SAID POINT BEING ON THE SOUTHERLY UNE OF THE STATE HIGHWAY CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED AUGUST 23, 1968 AS INSTRUMENT NO.82038, O.R.; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF OW 3E 31", AN ARC DISTANCE OF 429.98 FEET; THENCE TANGENT TO LAST MENTIONED CURVE, SOUTH W 21' Or EAST A DISTANCE OF 1287.12 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 5065.00 FEET; THENCE EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06. 03' 12", AN ARC DISTANCE OF 534.06 FEET TO THE TRUE POINT OF BEGINNING. SUBJECT TO EXISTING EASEMENTS AND RIGHTS OF WAY OF RECORD. COMPRISING 0.78 ACRES, MORE OR LESS. um4w —v- &V 45', ~ I �70. '� N i/ T•Ziff.! 7.1 200.00 u EXIST-- -- A 254 a-V 39'31' 0-2M.00 ' L• A29.96 T•215.49 4 i1REREET I lifvlf�l i 1�� ./ W/32692 . N•LV LDE Of — S.M. 1/4 arc. 29 R/N EXHIBIT "D" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT C/L �E1MA1.11j O.A. 88/74777 MS'03'12• A-50QA.00 t • L-Sl4.05 �'21 • T-267.29 C V4 29 i `1 EXTSTDU MI —d IN111f 1 i 1 15' SLOPE EA'EWMT. PER O.R. 60/747n PARCEL "B" LLA 95-198 O.R. 95/251766 30 , I f; I FUnM ;1RN ar6'03'316 � �� R•6070.00 i L•535.12 .+ T•26'S.3! � � � Sw 9. r ad N•LV LINE OF E'LV 330,- aF N.E. 1/4 OF S.N. 1/4 OF SEC. 20 ON 61.31, 446E 50.54 ® N 00620.08'N 3.33 ® N or 30,120E 37.10 $o Jill ~ z g � � � I f d Oa p g � 1 z ` 1 l i � 1 N 99'S1'46'N of 890.01 330.00 �•� 660.01 N or 51'460N P1 c o O.R. 95/261765 I 091ICATI011 o I N 09'51'36'N 1907.b I MIS OF 6EARDM IS THE CENTE+RLDE OF ROANS ST. SOUTH OF 47AYE. BETAS N 000 20' 090 It PER I TR. NAP NO.�153. 11 Z27/77-M O.A. .SX m A" ASb1QMISS Mc. EXHIBIT OF FUTURE HWY i I I R/M DEDICATION 19a1d C cm to �i liSlff�19 A PORTION OF THE Y 1/2 OF SECTIONi 29. T 5 S. R 7 F, S _ A. N. 7".LTAR46M CUJM.lifeSMWat p M9� q 1 Hq SME 1' • 300• J.N. 1087 SST 1 OF -1 SMXT, DEPICTION OF RIGHT OF WAY DEDICATION 1ITIP"WAV 1111 DETAIL o.n. amens 1 • . 300' I I N Goo 1310 'N/ N N EXHIBIT "E" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT 319682 LEGAL DESCRIPTION OF EXISTING RIGHT-OF-WAY (ADAMS STREET) LEGAL DESCRIPTION OF EXISTING ADAMS STREET RIGHT OF WAY IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF THE NORTHWEST ONE -QUARTER LYING SOUTHERLY OF STATE HIGHWAY I I I AND THE SOUTHWEST ONE -QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SOUTHWEST ONE- . QUARTER OF SECTION 2% THENCE NORTH 00' 20' W WEST ALONG THE WESTERLY LINE OF SAID SOUTHWEST ONE -QUARTER A DISTANCE OF 1087.25 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WESTERLY LINE NORTH 00' 2V W WEST A DISTANCE OF 1565.71 FEET TO THE NORTHWEST CORNER OF SAID SOUTHWEST ONE -QUARTER OF SECTION 29; THENCE NORTH 00' 20' W WEST, ALONG THE WESTERLY LINE OF THE NORTHWEST ONE -QUARTER OF SECTION 29, A DISTANCE OF 316.50 FEET TO THE BEGINNING OF A NONTANGENT CURVE. CONCAVE NORTHERLY, HAVING A RADIUS OF 2555.00 FEET. A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 19' 32' 07" WEST, SAID POINT BEING ON THE SOUTH LINE OF THE STATE HIGHWAY CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED AUGUST 23,1968 AS INSTRUMENT NO.82038, OFFICIAL RECORDS; THENCE EASTERLY ALONG SAID. SOUTHERLY LINE AND ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF or 14' 3r, AN ARC DISTANCE OF 100.08 FEET TO A POINT, A RADIAL LINE PASSING THROUGH SAID POINT SEARS NORTH 17' 1 T 29' EAST; THENCE NONTANGENT TO LAST MENTIONED CURVE, SOUTH 51.31' 44" WEST A DISTANCE OF 50.54 FEET; THENCE SOUTH OW 20' Or EAST A DISTANCE OF 455.13 FEET; THENCE SOUTH 89. 44' 310 WEST A DISTANCE OF 25.00 FEET; THENCE SOUTH 000 20' Or EAST A DISTANCE OF 1365.99 FEET; THENCE NORTH 89' 51' 38" WEST A DISTANCE OF 30.00 FEET TRUE POINT C LANt� BEGINNING. �- SUBJECT TO EXISTING EASEMENTS AND RIGHTS OF WAY OF RECO COMPRISING 1.60 ACRES, MORE OR LESS. mom N&4m N30 N 51.31'44'E. ■-- 66.54 N 00.20'OA'M 4W.13 I. am LIIE OF —� S.M. 1/4 SEC. ST. R/M w- 25 00 1'E EXIST. 30' " PER O.R. 59/3ZI92 30• S b O Z EXHIBIT "F" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT cn HrsY f11 O.A. S9/74777 i� EXISM0 " J f M11 ! 11 !S' SLOPE EA9001T PER O.R. IW4777 PARCEL 'B' LLA 95-198 O.R. 95/251766 t• 6.00 R� L-100.06 T-W.04 _DETAIL 19 ks 30.00 = c a O O Z BASIS OF GEMUM IS flE CpIMLM OF WM ST. o SWIN OF 4IN AWL SEDIS N 00` :0' w M MR TR. NAP ND. MUM mJfAfffiZ0 N� .5WM ANB A njlmm/am1mmi /A sa■omme .u. Y Y'LY LIME OF E'LY 330'- OF N.E. 1/4 OF S.Y. 1/4 OF SEC. 29 .T.17 w O.R. Si/1077e I O.R. 95/251765 C 1/4— Me. 29 it i xi in i i i (I EXHIBIT OF EXISTING ADANS STREET R/W A PORTION OF THE M 1/2 OF SECTION 2% T 5 S. R 7 E. S.B.M. ELF I' .. ,pp• J.N. 1087 SHEET i OF i 91EET:: ; DEPICTION OF EXISTING RIGHT OF WAY IAINAMC cTRFFTI Exhibit I I TO EXHIBIT "C" OF THE DEV ELOPMENT AGREEMENT DEPICTION OF RIGHT OF WAY DEDICATION L—=Z (ADAMS STREET) o CA •y „1 O.R. 6V747n o• 1 ' • T-n7.29 c 1/4 1 F11TIAiE R/M _ sec. 29 I NIK its r N1, __ _ me LIVE E s W. M Z00.04 114 SV . 29 OUST AOAM a. Iwo EXISTIM I"", Hw 111 ' 15• SLOPE EABEIENT PER O.R. OW4777 N ~1•E25.00 I ao• PARCEL a B' 1 _ Z �• LLA 95-198 I I O.R. 95/251766 t A aintFr M'LY LINE OF E•LY 330' a s OF N.E. t/A of S.M. 1/1 _ OF SEC. 29 y ! pun. 30• &V PERZI � w D.R. es/am JL ao• o = c � i a = g f O.R. 51/20779 N 0•N s3os M.00 W0.01 pp N 69"a1'�6'N i • N o0.12•55'NIPA 2Sl.25 I to 0_B. PROP06E0 GOICATION ( O.R. 95/261765 25.00 1 .25 • SAS= oroJ�»r N�� � N P �) • ti YIIMl�O;BMW Alm ASSiOM"SiNc TURF ADAMS STREET R/W DEDICATION EXHIBI � nemeb/amp/sum ! A PONTION OF THE N 1/2 OF SECTION 29. T 5 S. R 7 E. S.B.M z 17•w1i1. EOYf►� �� •I SIB t• -i 900• J.N..1067 ' SNEET i of ! SHEET 319682 EXHIBIT "G" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT LEGAL DESCRIPTION OF RIGHT OF WAY DEDICATION (ADAMS STREET) LEGAL DESCRIPTION FUTURE ADAMS STREET DEDICATION IN THE CITY OF LA QUINTA, COUNTY OF RI-vQEUAR ER OF ECTION 29,OTOWNSHIP 5 THAT PORTION OF THE SOUTHWEST ONE SOUTH, RANGE 7 EAST, S.H.M., DESCRIBED AS FOLLOWS: ER OF SAID SOUTHWEST ONE -QUARTER OF COMMENCING AT THE SOUTHWEST CORN SECTION 29; THENCE NORTH 000 200 08" WEST ALONG THE o SO LIUTN�S CORNER F SAID SOUTHWEST ONE.QUARTER A DISTANCE OF 1087.25 FEET PARCEL *30 OF LOT LINE ADJUSTMENT 95-198 RECORDTH ED AUGUST 2, 1995 AS INSTRUMENT NO. 251765.O.R.; THENCE SOUTH 52" 51' 3W EAST ALONG THE SOUTHERLY N LINE OF SAID PARCELS" A DISTANCE OF 25.00 FEET TO THE TRUE POINT OF BEGIN THENCE NORTH 00' 2V 08" WEST PARALLEL WITH NT WESTERLY00 IN FEET SOUTH SAID ERLY PARCEL ar A DISTANCE OF 1386.99 FEET TO A PO OF THE NORTHERLY LINE OF SAID SOUTHWEST ONE -QUARTER OF SECTION 29; THENCE NORTH 890 44' 31" EAST PARALLEL WITH SAID NORTHERLY LINE A DISTANCE OF 25.00 FEET; THENCE SOUTH 00' 20' 08" EAST PARALLEL F� 8 � FEET TO APOINT ON THE D WESTERLY LINE OFTHE SOUTHWEST ONE -QUARTER A DISTANCE O SOUTHERLY LINE OF SAID PARCEL "B' OF LOT LINE ADJUSTMENT 95-19&, THENCE NORTH SW 51' 38* WEST ALONG SAID SOUTHERLY LINE A DISTANCE OF 25.00 FEET TO THE TRUE POINT OF BEGINNING; SUBJECT TO EXISTING EASEMENTS OF RECORD. COMPRISING 0.78 ACRES, MORE OR LESS. �� LWP6 NA re S lb M06 460 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 1.20.2 THE PROJECT The Centre at La Quinta is a multi -phased commercial proposal designed around two main activities: an auto sales mall and a large scale retail complex. Exhibit 2 depicts the proposed development. The first phase of development will occur on the northwest portion of the property (Highway 111 and Adams Street) and will contain an integrated auto sales facility for up to 5 dealerships . Included in the first phase will be all on -site streets including La Quinta Centre Drive and Auto Centre Drive/Auto Centre Way, landscaping, lighting, and infrastructure as well as perimeter improvements such as walls and signage. Included in Phase I will be the mass grading of the entire westerly half of the project including La Quinta Centre Drive. Phase II will build out the remaining dealers and possibly auto related commercial. Off -site improvements included with Phase I include the entire frontage of Adams Street (curb/gutter, landscaped median, landscaped parkway and infrastructure extensions), the westerly frontage portion of Highway 111 (curb/gutter, landscaped parkway and necessary infrastructure extensions). The development of Phase II and/or Phase III will initiate the implementation of the remainder of the Highway 111 improvements including the landscaped median. The main site access will be a signalized, landscaped entry from Highway 111 and will be shared with the Phase III commercial portion of the project. A second entry will be provided on the west boundary from Adams Street. The entry will align with Avenue 47 and could be signalized if warrants are met. The auto mall will include coordinated landscape, lighting, signage, and maintenance. A property owners association comprised of the property owners in Phases I and II will handle all landscape and common area maintenance associated with the auto mall portion of the project. All activity will be contained on -site including vehicle unloading. Phase III will focus on the eastern portion of the site and is focused on the development of a multi-user retail center 400,000 s.f. of retail floor area. Probable candidate uses include restaurants, entertainment, big box retail, financial, and offices. The allowable, conditionally allowable, and prohibited uses shall be generally as set forth in the zoning regulations for the CR zone with some exceptions as noted in section 2.50.2.1. Phase III common area improvements will be maintained by a separate property owners association. The site development concept for Phase III is still in the development stage and will be changed but not in a way that increases the density and/or intensity of the site development and/or the maximum heights of the proposed buildings. 4 319682 319682 J/ �J EXHIBIT 1 AERIAL PHOTOGRAPH SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainlero, Smith and Assoc. Planning/B41ee ing Walker/Rancourt + Assoc. ArcHtecture Horton/SheWdson Assoc - Landscape Arctitecture 3 31 82 Exhibit "I" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT PUBLIC FACILITIES PHASE I 1. ADAMS STREET IMPROVEMENTS (Along Centre at La Quinta Frontage) 1= QIIZZ= UNIT UNIT COST TOTAL CQAT 6" Curb and Gutter 2,000 LF $ 15.00 $ 30,000 6' Meandering Sidewalk 16,000 SF 3.50 56,000 Pavement 62,220 SF 2..00 124,440 Westside Pavement Widening 1 LS 9,360.00 91360 Unclassified Excavation/ Removal 1 LS 25,000.00 25,000 Water/Dust Control 1 LS 25,000.00 25,000 Traffic Control 1 LS 7,000.00 7,000 Signing and Striping 1 LS 25,000.00 25,000 Mobilization 1 LS 27,500.00 27,500 Parkway Landscaping 1 LS 70,000.00 70,000 Landscaped Median 1 LF 165,000.00 165,000 Dry Utilities 1 LS 100,000.00 100,000 2. HIGHWAY Ill IMPROVEMENTS (West of Project Entrance Along Centre at La Quints, Frontage) 6" Curb and Gutter 1,300 LF $ 15.00 $ 19,500 8' Meandering Sidewalk 14,800 SF 3.50 51,800 Pavement 52,000 SF 2.00 104,000 Unclassified Excavation/ Removal 1 LS 42,000.00 42,000 31q&SZ Water/Dust Control Traffic Control Signing and Striping Mobilization New Signal - 111 Project Entrance (100%) Signal Modification - Adams and ill (25%) Parkway Landscaping Dry Utilities 18" D.I.P. Water Main Agency and Professional Fees and Contingencies - Adams and Hwy 1 LS 28,000.00 28,000 1 LS 21,000.00 21,000. 1 LS 35,000.00 35,000 1 LS 27,500.00 27,500 1 LS 125,000.00 125,000 1 LS 31,250.00 31,250 1 LS 92,500.00 92,500 1 LS 65,000.00 65,000 2,600 LF 80.00 208,000 1 LS 616,250.00 616,250 PHASE I TOTAL 88TIXATED COST $2,131,100 PHASE II HIGHWAY I I I IMPROVEMENTS (East of Project Entrance Along La Quinta Frontge) UNIT TOTAL IT 'Lli OMMITY MIXT COST COBT 611 Curb and Gutter 1,000 LF $ 15.00 15,000 8' Meandering Sidewalk 12,000 SF 3.50 42,000 Pavement 40,000 SF 2.00 80,000 North Side Pavement Widening 1 LS 53,000.00 53,000 Unclassified Excavation/ Removal 1 LS 40,000.00 40,000 Water/Dust Control 1 LS 20,000.00 20,000 Traffic Control 1 LS 15,000.00 15,000 319682 Signing/Striping 1 LS 30,000.00 30,000 Mobilization 1 LS , 20,000.00 20,000 Landscaped Median 1 LS 332,000.00 332,000 Dry Utilities 1 LS 30,000.00 30 000 Right-of-way Acquisition - North Side 1 LS 40,000.00 40,000 Agency and Professional Fees and Contingencies 1 LS 107 550.00 _ 107.550 PHASE II TOTAL ESTIMATED COST 3 eZa_SRn PHASES I AND II ESTIMATED COSTS $2,955,650 3196B2 Exhibit "J" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT STANDARD CITY FORM Provide a copy of a completed State Board of Equalization Sales Tax Report EXHIBIT "D" SPECIFIC PLAN devclrk.red 329682 SPECIFIC PLAN PREPARED FOR STAMKO DEVELOPMENT CO. and THE CITY OF LA QUINTA June 12, 1997 3M APPROVED BY CITY COUNCIL ON 31A IS g'Am - � ip S-1 - 02,1 4DMAINIERO, SMITH AND ASSOCIATES, INC. In Conjunction With WALKER/RANCOURT + ASSOCIATES and HORTON SHEPARDSON ASSOCIATES 319682 THE CENTRE AT LA QU I NTA SPECIFIC PLAN PREPARED FOR STAMKO DEVELOPMENT CO. r_l0101 THE CITY OF LA QUINTA MAINIERO, SMITH AND ASSOCIATES, INC. IN CONJUNCTION WITH WALKER/RANCOURT + ASSOCIATES HORTON SHEPARDSON ASSOCIATES June 12, 1997 319682 THE CENTRE AT LA QUINTA Table of Contents Section I. Summary 1.10 Purpose ................................................ p.1 1.20 Executive Summary ...................................... p. 2 1.20.1 The Land ................ .................. p.2 1.20.2 The Project .................................. p. 4 1.20.3 The Process .................................. p. 8 1.20.3.1 Relationship to General Plan ............... p. 8 1.20.3.2 Relationship to Zoning and Development ...... p. 8 1.20.3.3 Relationship to Other Agencies ............. p. 11 Section II. Specific Plan 2.10 Project Description .......... p. 12 2.10.1 The Site .................................... p. 12 2.10.2 Site Plan ................................... p. 12 2.10.3 Landscape Plan .............................. p. 12 2.10.4 Utilities ..................................... p. 12 2.10.5 Art in Public Places ........................... p. 13 2.20 Phasing .............................................. p. 14 2.20.1 Phasing Description ........................... p. 14 2.20.2 Infrastructure Phasing ......................... p. 14 2.20.3 Grading .................................... p. 15 2.20.3.1 Grading Plan ........................... p. 15 2.20.3.2 Erosion Control ......................... p. 15 2.20.3.3 SWPPP/NPDES ........................ p. 15 2.30 Drainage/Flood Control ................................... p. 18 2.30.1 Hydrology ................................... p. 18 2.30.2 Flood Control Master Plan ..................... p. 18 2.30.3 On -site Storm Water Retention .................. p. 18 2.30.3 Nuisance Water .............................. p. 19 2.40 . Utilities ................................................ p. 20 2.40.1 Sewer Plan ................................. p. 20 2.40.2 Water Plan .................................. p. 20 2.40.2.1 Well Site .............................. p. 20 2.40.3 Electrical Plan ............................... p. 20 2.40.4 Other Utilities ................................ p. 21 319682 2.50 Land Use ............................................. p.27 2.50.1 Land Use Plan ............................... p. 27 2.50.1.1 Auto Mall ............................. p. 27 2.50.1.2 Mixed Regional Commercial Development .... p. 29 2.50.2 Development Standards ....................... p. 31 2.50.2.1 Permitted/Conditional Uses ................ p. 31 2.50.3 Design Guidelines ............................ p. 32 2.50.3.1 General Architectural Theme .............. p. 32 2.50.3.2 Acceptable Building Materials .............. p. 32 2.50.3.3 Colors ................................ p.32 2.50.3.4 Roofs....................I............. p. 32 2.50.3.5 Equipment Screening .................... p. 32 2.50.3.6 Fencing and Walls ...................... p. 33 2.50.3.7 Site Lighting ........................... p. 33 2.50.4 Project Operations ............................ p. 34 2.50.4.1 Project Operations -Auto Mall .............. p. 34 2.50.4.1.1 Site Plan .............................. p. 34 2.50.4.1.2 Lighting ............................... p. 35 2.50.4.1.3 Noise ................................. p. 35 2.50.4.1.4 Special Events ......................... p. 35 2.60 Circulation. ............................................ p.37 2.60.1 Overview ................................... p.37 2.60.2 Off -site Circulation Plan ........................ p.37 2.60.3 Public Transportation/Transportation Demand Mgmt.. p.37 2.60.4 On -site Circulation Plan ........................ p. 39 2.60.4.1 La Quinta Centre Drive ................... p. 39 2.60.4.2 Auto Centre Drive/Auto Centre Way ......... p. 39 2.60.4.3 Mixed Regional Commerical Center Circulation p. 39 2.70 Landscape ............................................. p. 41 2.70.1 Landscape Concept ........................... p. 41 2.70.2 Landscape Development Standards .............. p. 41 2.70.3 Landscape Palette ............................ p. 42 2.70.4 Landscape Maintenance ....................... p. 43 2.80 Signage............................................... p. 44 2.80.1 Signage Concept ............................. p. 44 2.80.1.1 Signage Concept -Auto Mall ..................... p. 44 2.80.1.2 Signage Concept -Mixed Regional Commercial Center p. 45 319682 Section III Appendices Appendix A- Conditions of Approval Appendix B - General Plan Policies Section IV Environmental Impact Report 319682 TABLE OF EXHIBITS The Centre at La Quinta Exhibit 1 Aerial Photo ............................................. p. 3 Exhibit 2 Overall Site Plan ......................................... p. 5 Exhibit 2-1 Phase I & II Site Plan ..................................... p. 6 Exhibit 2-2 Phase III Site Plan ........................................ p. 7 Exhibit 3 City General Plan ........................................ p. 9 Exhibit 4 City Zoning ............................................ p. 10 Exhibit 5 Grading/Drainage Plan ................................... p. 16 Exhibit 6 Utilities- Sewer ......................................... p. 22 Exhibit 7 Utilities - Telephone ..................................... p. 23 Exhibit 8 Utilities - Natural Gas .................................... p. 24 Exhibit 9 Utilities - Electrical ....................................... P. 25 Exhibit 10 Utilities - Water ......................................... p. 26 Exhibit 11 Street Cross Sections ..................................... p. 38 Exhibit12 Landscape Palette ...................................... p.42 Exhibit 13 Landscape - Highway 111 Cross Section ..................... p. 46 Exhibit 14 Landscape - Highway 111 Concept Plan ..................... p. 47 Exhibit 15 Landscape - Adams Road .................................. p. 48 Exhibit 16 Landscape - Auto Centre Drive ............................. p. 49 Exhibit 17 Signage - Plan .......................................... p. 50 Exhibit 18 Signage - Monument Signs ................................ p. 51 Exhibit 19 Signage - Building ....................................... p. 52 329682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 1.10 PURPOSE The purpose of this Specific Plan is to set forth . the detailed development principles, guidelines, and programs to facilitate the development of an 87 acre site located on the south side of Highway 111 between Adams Street and Dune Palms Road. The project is called The Centre at La Quinta. This Specific Plan is intended to meet the requirements for a Specific Plan as set forth in State law. The State authorizes cities and counties to adopt Specific Plans as appropriate in implementing their General Plans. Such a plan is to include the detailed regulations, conditions, programs, and any proposed legislation that is necessary for the systematic implementation of the General Plan. The Specific Plan provides the linkage between the General Plan (and the general goals and policies of the City) and the detailed implementation of that plan with tools such as zoning ordinances, subdivision ordinances, and the like. The Government Code (Section 65451) sets forth the minimum requirements of a Specific Plan and states: "A Specific Plan shall include a text and diagram or diagrams which specify all of the following in detail: 1). The distribution, location, and extent of the uses of land, including open space, within the area covered by the plan. 2). The proposed distribution, location and extent and intensity of major components of public and private transportation, sewage, water, drainage, solid waste disposal, energy, and other essential facilities proposed to be located within the area covered by the plan and needed to support the land uses described by the plan. 3). Standards and criteria by which development will proceed, and standards for the conservation, development, and utilization of natural resources, where applicable. 4). A program of implementation measures including regulations, programs, public works projects, and financing measures necessary to carry out paragraphs (1), (2), and (3)." The Specific Plan shall include a statement of the relationship of the specific plan to the General Plan. The establishment of specific performance, design, and development standards is set forth to guide the development of the subject property in such a way as to implement the General Plan while maintaining some flexibility to respond to changing conditions which may be a factor in any long term development program. The document -also -acts -tom augment the Citv's .mooning. Ordinance by providing partic7i r design guidelines, a tailoned list of allowable, conditionally atlowab�fe;-a d coh bited¢uses for the site, and unique development standards. 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 1.20 EXECUTIVE SUMMARY 1.20.1 THE LAND The Centre at La Quinta is a proposed mixed commercial development on 87 acres of property located at the southeast corner of Highway 111 and Adams Street in the City of La Quinta. The property is delineated by the City's General Plan as Commercial Park and Mixed/Regional Commercial and is zoned Regional Commercial (CR). This zoning type allows a wide range of commercial activities as outlined in the attached excerpt from the City's recently adopted Zoning Ordinance (Appendix B). The site is vacant and exhibits characteristics of the stabilized sand dune formations found in this part of the Coachella Valley. The site is generally flat (portions had been previously cultivated) but has some dune formations with an elevational difference of up to 25 feet. The site has nearly 2300 feet of frontage on Highway 111 and also abuts Adams Street on the west side of the project. Property to thesouth-is_vac and is zoned for reside;&aL. uses Property to the east is an underdeveloped "c0mm&r6at s e with a single home and a small date grove. Dune Palms Road lies approximately 300 feet to the east of the site. Property to the north, across Highway 111 is vacant. Property directly west is partly vacant and zoned for commercial uses and partly developed residential property (Lake La Quinta). The site is shown on an aerial photograph in Exhibit 1. Commercial use of the subject site was analyzed in the City's General Plan EIR which was approved in 1992. The Environmental Conservation Element of the General Plan identified the subject property as being potential habitat to the Coachella Valley Fringed Toed Lizard and within the approved Habitat Fee area. 2 Elm K- x -2SMU-Sill fir mulululill MM 1111muUmfum ffnummn I m mamn 1 nu n ffu-u� dr dulmul Him innummun 319682 EXHIBIT 2 SITE PLAN Q4 N10911-1 3W 100' SPECIFIC PLAN THE CENTRE AT LA OUINTA, STAMKO DEVELOPMENT Malniero, Smith and Assoc. P1wring/Engheeft Walker/Rancourt + Assoc. ArchRecture Horton/shepardson Assoc. Landscape Archfieckwe 5 319682; ss' r•- 4 r i AY WALL Hk-j, 4 A v FUNRE SGNAL V MASOWY WALL Phase I and Site Area Bl�gd .. Area Mgr, lAc� Site 1 4.03 Acres 40,000 Sf. 35 Ft Site 2 3.10 Acres 22,000 St. 35 Ft Site 3 4.04 Awes 27,600 Sf. 35 Ft. Site 4 427 Acres 30,000 Sf. 35 Ft. Site 5 5.02 Acres 31,600 Sf. 35 Ft Site 6 3.07 Acres 28,000 Sf. 35 Ft Site 7 322 Acres 32,600 St. 35 Ft Site 8 3.93 Acres 32,600 Sf. 35 Ft Site 9 421 Acres 30,000 Sf. 275,OW3Y. 35 Ft 319682 EXHIBIT 2-1 SITE PLAN PHASE I AND II ----------- � SPECIFIC PLAN THE CENTRE AT LA OUNTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Fkwk g/Engneerin9 Walker/Rancourt + Assoc. Architecture Horton/Shepardson Assoc. Landscape Architecture 6 31968z FUTURE SKWAL Pm cfnr REcxFEMEW FOR ULTWWTE ROW. 1 S' DEDICATION (70' HALF -STREET) 50' AVMAG3E LANDSCAPE PARKWAY --RIGHT IN/RIGHT OUT ACCESS i l minmnimn ■uml ------ 1 Phase -Ta Bulking 1 8,000 Sf. 1 26 Bing 2 8,000 SI. 1 25 Buik&ng 3 8,000 St. 1 25' BukkQ 4 8,000 SI. 1 26- Building 5 130,000 8f. 2 40' Buiding 6 78,000 St. 2 40' Wdrig 7 100,000 St 1 40' Building 8 60,000 8I. 1 40' 400,000 9f. EXHIBIT 2-2 SITE PLAN PHASE III SPECIFIC PLAN THE CENTRE AT LA OUIWA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. PwrkQ/Bvh0e ft Walker/Rancourt + Assoc. Architecture Horton/Shepardson Assoc. Landmpe Architecture 7 31968Z SPECIFIC PLAN THE CENTRE AT LA QUINTA 1.20.3 THE PROCESS 1.20.3.1 RELATIONSHIP TO THE GENERAL PLAN Implementation of development within the Centre at La Quinta Specific Plan area is intended to carry out the goals and policies contained in the General Plan of the City of La Quinta in a planned and orderly fashion. All development within the Centre at La Quinta Specific Plan shall be consistent with the provisions of the La Quinta General Plan. The General Plan Land Use for the site is shown in Exhibit 3. Among the important provisions of the General Plan which will be implemented upon the development of The Centre at La Quinta include: • Land Use -The General Plan delineates the Highway 111 corridor as a Mixed/Regional Commercial (M/RC) land use. The proposed project is consistent with the approved land use. The Specific Plan sets forth the maximum Floor Area Ratio (F.A.R) for the project at .18, well under the maximum F.A.R. for M/RC uses (.35). • Circulation -The Circulation Element of the General Plan outlines the design and location of required street improvements to complete the transportation system in the City. The Centre at La Quinta will complete portions of two important links in the City's circulation network: Highway 111 and Adams Street. Included in the improvements will be sidewalks, bicycle links, bus stops, and signal improvements. • Roadway Image Corridors -In addition to roadway improvements, the project will implement special roadway corridor improvements which will evoke the unique identity and character sought by the City of La Quinta. • Water Quantity and Quality -The Specific Plan outlines the use of drought tolerant planting and irrigation techniques and incorporates a grading concept designed to retain stormwater on site to assist in recharge of groundwater supplies. • Infrastructure=The Specific Plan incorporates plans to complete the infrastructure which lies adjacent to the project site. 1.20.3.2 RELATIONSHIP TO ZONING AND DEVELOPMENT PROCESSES The property is already properly planned and zoned for the uses projected for the site. Exhibit 4 depicts the zoning on and surrounding the site. The City of La Quinta requires a Specific Plan to establish an overall master development plan in the circumstance of the CR zoning classification. In addition to the Specific 0 319682 IF i 09 GEM OF &4THE DESERT sr-& ■r-r'% A ■ r%l w lkl kNU U5t IJULIU Y UTALiMAM :SIDENTIAL LAND USES .DR VERY LOW DENSITY RESIDENTIAL (0-2 DU/AC) �� LOW DENSITY RESIDENTIAL (2-e DU/AC) DRI MEDIUM DENSITY RESIDENTIAL (<-a MAC) M MEDIUM HIGH DENSITY RESIDENTIAL (8-12 DwA So HIGH DENSITY RESIDENTIAL (t2-is DWAC) ZI RURAL RESIDENTIAL OVERLAY )MMERCIAL LAND USES MIXED/REGIONAL COMMERCIAL COMMUNITY COMMERCIAL IC -1 NEIGHBORHOOD COMMERCIAL COMMERCIAL PARK ■ OFFICE TOURIST COMMERCIAL C� VILLAGE COMMERCIAL NON-RESIDENTIAL OVERLAY 'HER LAND USES ® URBAN MIX IC I MAJOR COMMUtcry FACILITIES PARK FACILITIES OPEN SPACE GOLF COURSE OPEN SPACE WATERCOURSE/FLOOD CONTROL t``;; r" w nY r�l'7#-i:_ 50 EXHIBIT.3 3 CITY GENERAL PLAN SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planning/EngkverkV Walker/Rancourt + Assoc. Ardtitecture Horton/Shepardson Assoc. Landscape ArcMecture own "*-envi 40 _ • t 1 IILLII Ia .,� �'r_•�'- • Yu til � w �' iw '• � a: �• !� tfFllilltNI�t ..■Ml ErK- M i� p yfln 1/atl7tn111 „_�-b■tf�371 � � ■ -`=�s�• �! ItI�Ut'u. gitt It r■ m . an . ■ 'S ■ ~- ♦ a J : i• iP • • C __ _._ .._ _.....■ now; ' 1 � Lfl fi -41 Cot Ji 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA Plan, the processing for entitlements proposes the inclusion of a Development Agreement, a Tract or Parcel Map, and a Conditional Use Permit for the automobile dealerships. Individual applications will be under normal City requirements at the time of the application for Site Development Permits (architecture, landscape architecture, signage, final grading, etc.). Those uses which may require Conditional Use Permits as set forth in the Zoning Ordinance of the City of La Quinta, shall submit such an application unless otherwise specified within this Specific Plan. Such conditional uses could include mixed use commercial and residential, wholesaling, vocational schools, bars and taverns, and health clubs among others. 1.20.3.3 RELATIONSHIP TO OTHER AGENCIES In addition to City approvals, permits will be required by Caltrans for the work along Highway 111, and by the Coachella Valley Water District (CVWD) for moderate extensions to water and sewer lines. Other infrastructure extensions will be required by the Imperial Irrigation District for electrical power, General Telephone Company (GTE) for telephone service and Colony Cablevision for cable TV service. 11 31968,2 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.10 PROJECT DESCRIPTION 2.10.1 THE SITE The site is an 87 acre parcel located on the southeast corner of Highway 111 and Adams'Street in the City of La Quinta. The site is currently vacant although the northern half of the property served at one time in an agriculture production capacity. The Centre at La Quinta is a multiple use regional commercial project designed around two main uses. The westerly half of the 87 acre site will be devoted to automobile sales and auto related commercial in an integrated auto mall; the easterly portion is expected to be developed as a mixed regional commercial center with a series of freestanding and attached buildings comprising 400,000 square feet of floor space. 2.10.2 SITE PLAN The site plan will feature required, extensive, coordinated landscape buffers to both Highway 111 and Adams Street which will implement the City's Highway 111 streetscape planning efforts (ongoing during the project's planning phase); significant building setbacks to both adjacent public streets; controlled, signalized vehicular access from both streets (upon warrants); and integrated architecture, landscape architecture and signage concepts established through the Specific Plan and controlled through private CC&Rs as well as City processes. 2.10.3 LANDSCAPE PLAN The landscape concept follows a "desert oasis" theme emphasizing water efficient materials exhibiting color and form with a deemphasis on the use of turf areas. Parking areas in the mixed regional center will feature the concept of a high canopy tree form to reduce the conflict between landscape elements and project graphics. The auto mall will use tree forms sparingly and concentrate landscape form and color along the street frontage of each site. Turf areas will be integrated into the landscape in front of each dealership. Most landscape areas throughout the project will be used for storm water retention. 2.10.4 UTILITIES Utility extensions will be moderate with most utilities existing at the perimeter of the site. Some upgrades will be required by the individual utility companies providing service to the property. (Exhibits 6 to 10 depict the utility improvements planned in conjunction with the project). A well site will be provided to the CVWD at the southwest corner of the property, fronting on Adams Street. Street widening implementing the General Plan will be installed concurrently with Phase. I and Phase II or Phase III. The timing of Highway 111 12 SPECIFIC PLAN THE CENTRE AT LA QUINTA319682 improvements will be at the discretion of Caltrans working with the City Public Works Department. 2.10.5 ART IN PUBLIC PLACES The requirement for Art in Public Places will be fulfilled in an integrated fashion with the concept embedded in the overall plan from the onset. The prime location for such an installation is expected to be the generous landscape setback along Highway 111. The average distance from the curb to the project in this area will be 62 feet which will include a sidewalk/bikepath and possibly a bus stop. Due to the probable differential in timing between Phases I, II and III, and with the different scale and type of development between the west and east sides of the project, it may be appropriate to tailor the Art in Public Places concept individually for each half. 13 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.20 PHASING 2.20.1 PHASING DESCRIPTION As currently scheduled, the project will be phased with Phases I and II comprising the auto mall which can be expected to be completed in year 2000 and Phase III comprising the mixed regional commercial center which can be expected to be completed in year 2005. See Exhibit 2 for phasing. Phase I will comprise five parcels for auto dealerships with Phase II adding four parcels for additional dealerships and/or auto related commercial. No more than two of the parcels in Phase II may be developed with uses other than auto dealers. The uses expected to be developed if dealerships are not secured are outlined in Section 2.50.2.1. Phase III is the easterly half of the property and is planned to accommodate a mixed regional commercial center. Phase III is expected to begin in year 2000 and be completed in year 2005. The intensity and scope of Phase III will be less than the approved General Plan and existing zoning for the site. As such, the General 'Plan sets forth the development potential as a retail commercial development with a maximum floor area ratio (FAR) of up to .35. This would translate to a development up to 580,000 square feet. This Specific Plan sets the development intensity of Phase III at 400,000 square feet of floor area. Phase III will be broken down into four additional subphases. For purposes of this Specific Plan, the FAR will be calculated on the basis of the gross site area. This shall not be construed to allow a higher density than allowed by the General Plan. 2.20.2 INFRASTRUCTURE PHASING The first phase of infrastructure development will coincide with Phase I and will include the westerly frontage portion of Highway 111 (curb/gutter, landscaped parkway, and necessary infrastructure extensions) and the entire frontage of Adams Street (curb/gutter, landscaped median, landscaped parkway, and infrastructure extensions). La Quinta Centre Drive as well as Auto Centre Drive and Auto Centre Way, will be completed with the Phase I along with the on -site infrastructure located within the street right-of-way. Utilities will be extended to the site as necessary. The second phase of infrastructure will coincide with either the issuance of the first grading permit for Phase III, the issuance of the first building permit for Phase II, or the expiration of three (3) years following the recordation of the parcel map in connection with the project. The improvements will consist of the completion of Highway 111 improvements including the landscaped median along with utility extensions as necessary across the remainder of the project's 14 319682 S SPECIFIC PLAN THE CENTRE AT LA QUINTA frontage. Exhibits 6 through 10 depict the location and scope of infrastructure improvements. 2.20.3 GRADING 2.20.3.1 GRADING PLAN The auto mall portion of the site (Phases I and II) and the internal road system will be mass graded as part of the initial site preparation. The rough pads will be established for the individual dealership and/or auto related commercial sites. It is estimated that the grading operation will move approximately 125,000 yards of dirt and there will be a net balance on the site. The mixed regional commercial center (Phase III), is also designed to be mass graded to establish rough pads for the various end users at the onset of the development of that phase. The grading for this phase is estimated to require a similar 125,000 yards and result in balanced grading for the project. Exhibit 5 depicts the rough grading and drainage concept for the property. 2.20.3.2 EROSION CONTROL The grading operations shall include adequate provisions for wind and water erosion control both during as well as after grading operations have ceased. This will include treatment of the Phase II sites which may remain undeveloped for several years. The details of erosion control shall be included in the project's Storm Water Pollution Prevention Plan (SWPPP) and PM 10 Plan. Prewatering--The site shall be prewatered to a depth of three feet prior to the onset of grading operations. During Grading --Once grading has commenced, and until grading has been completed, watering of the site and/or other treatment(s) determined to be appropriate shall be ongoing. Post Grading --All disturbed areas shall be treated to prevent erosion for the term that the area will remain undeveloped. Wherever feasible, final landscape and irrigation shall be installed. 2.20.3.3 SWPPP/NPDES/PM 10 Since the Coachella Valley experiences periods of moderate to heavy wind conditions, wind-blown dust and sand is a concern with mass grading operations, especially those in excess of five acres in size. Because of health concerns, the Environmental Protection Agency has instituted a plan in the valley to curb excess PM 10 (small particle dust). The City also participates in the National Pollutant Discharge Elimination System program. The grading concept for the project will involve two phases of mass grading, each being approximately half of 15 ,r—T�P75QQ) 31968.2 SKWAL --6'MASONRY WALL TP ...... FUTURE L W AVE LANDSCAPE PARKWAY RIGFff KIRIGFU —W T AC' ESS ow PAD I - - - -- -1 - 77777777 PAD ! 71.0 171.0 i t A-] Ft:R TP (62.5) I 69.0 I Llj -HP FLAZ TP TP-HP 7 .0 0 )-AC XASS TO ,o4DAW STREET - , �l; 0 O� f TP 66.0 PAD 'oo"t0000PAD 0000p 69.0 ul. ........... ........... ......... SE7BACK wi PAD 62.0 PAD ► r / j 63.0 TP 57.0 0 ;.r in COMMON TP 59. RETENTION AREA PAD .7 PAD 62.0 61.0 CvwD WELL FM CnY FEOUFE4AEW FOR ULIVAATE R.O.W. r 330.01 EXHIBIT 5 GRADING/ DRAINAGE PLAN Q0 NOM asw =w 3W 4w SPECIFIC PLAN THE CENTRE AT LA OUINTA DRAINAGE CONCEPT - MAJORITY OF oNsrTE FLOWS DRAWN TO LANDSCAPE EASEMENTS ON PERIMETER OF LOTS. 0 HIGHWAY ttl AND ADAMS STREET DRAIN TO LANDSCAPE EASEMENTS ALONG RIGHT OF WAY. 30 SMALL OUANTITIES OF STORM WATER OVERFLOWS TO SMALL COMMON RETENTION AREA AT SOUTH END OF LA OUINTA CENTRE DRIVE. STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planring/Engbeering Walker/Rancourt + Assoc. Architecture 6 MASONFf'(W," L Horton/Shepardson Assoc. 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA the 87 acre site or about 43.5 acres in size. The City of La Quinta requires SWPPP, NPDES and PM 10 plans to control the wind and water born erosion associated with such grading operations. The project will comply with the City's requirements relative to these programs. 17 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.30 DRAINAGE/FLOOD CONTROL 2.30.1 HYDROLOGY The Centre at La Quinta lies in a Zone C flood zone as determined by FEMA. Zone C includes areas that are not considered to be subject to flooding in a 500 year event. There are no tributary flows that have to be accommodated in the development of the site. On site flows must be managed including the City's requirement for on -site retention of all storm water from a 100 year storm. 2.30.2 FLOOD CONTROL MASTER PLAN The stormwater drainage system in the City of La Quinta is administered by the CVWD. Generally speaking, the system consists of improvements to the natural drainage channels that run through the City. There is no planned collection system to drain individual sites into these channels as there is a capacity limitation. The development of property must include provisions to insure that no additional storm water is conducted into these channels. No drainage fees are required by the City or CVWD. 2.30.3 ON -SITE STORM WATER RETENTION The City of La Quinta in conjunction with the CVWD requires each development to include provisions for the retention of all storm water attributed to the site. The design storm which creates the worst case scenario is a 100 year, 24 hour event. The Centre at La Quinta proposes to use the project's landscape areas for this retention. Each site within the auto mall will capture its storm water with retention being accomplished primarily in the landscape setback area along the internal, public streets. The total retention area will be approximately 7 acre-feet. The mixed regional commercial center in addition to retaining the storm waters attributed to it, will also retain the storm water attributed to the public, on -site street system. It will also use its landscape areas for this purpose. The mixed regional commercial center retention requirement will be approximately 8 acre- feet. Water falling on the perimeter public streets will be conveyed into the adjacent landscape setbacks for retention. The volume of this retention will be approximately .5 acre-feet. The overall grading .and drainage plan is shown in Exhibit 5. 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.30.3 NUISANCE WATER Nuisance water attributed to the project will be collected and directed to areas within the landscape. A series of dry wells will be installed to percolate this water. The amount of nuisance water is expected to be reduced due to the use of water efficient landscape and irrigation materials. 19 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.40 UTILITIES The Centre at La Quinta is well served by utilities and is situated in a corridor planned for a relatively intense scope of commercial development. No major utility extensions are anticipated in conjunction with the project. 2.40.1 SEWER PLAN Sanitary sewer facilities for La Quinta are provided by CVWD. The nearest sewer main is located on the west side of the site in Adams Street. The project will gravity flow to the main in Adams Street. No upsizing of facilities will be required. Exhibit 6 shows the schematic design for sewer facilities. 2.40.2 WATER PLAN Water facilities for La Quinta are provided by CVWD. A 12" main exists in Highway 111 and there is an 18" main in Adams Street. CVWD will require an 18" main that connects the Adams Street main to the Highway 111 main through the subject site. In addition, an 18" main will be constructed in Highway 111 from the main project entry to the easterly property line. Exhibit 10 shows the schematic design for water service. 2.40.2.1 CVWD WELL SITE A 0.55 acre well site located at the southwest corner of the project is proposed to be dedicated to the CVWD. CVWD will develop the property. The location of the well site is shown on the Site Plan, Exhibit 2. 2.40.3 ELECTRICAL PLAN Electric facilities in La Quinta are provided by the Imperial Irrigation District. The nearest substation is located at Adams Street and the Whitewater River Channel. The District indicates that the design of the electrical service will depend on final load calculations for the overall project. The District will require the installation of underground facilities through the auto mall to join with future projects either to the east or to the south of the auto mall. The District will temporarily serve the project with an overhead connection to existing facilities on Adams Street. Exhibit 9 shows the schematic design for electrical facilities. 20 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.40.4 OTHER UTILITIES Natural gas is provided by the Southern California Gas Company. The nearest facility is a 6" line located in Highway 111 along the northerly frontage of the site. The conceptual plan for natural gas service is shown in Exhibit 8. Television cable service is provided by Continental Cable Vision with the nearest facilities located in Highway 111 abutting the site. Service will be extended to the site from this point of connection. Telephone service will be provided by GTE. Fiber-optic cable will be available at the corner of 48th Avenue and Adams Street. GTE expects to serve the project from this location. Exhibit 7 shows the proposed connection for the telephone system. Waste disposal service is provided by Palm Desert Waste Management. Plans for incorporating recycling facilities shall be considered with each phase of development. Facilities shall be reviewed for compliance with all City ordinances by Community Development Staff upon submission of Site Development Plans. 21 - 319GS2 .--- OC�T�EYJST NGSnNAL / 6' AIRY WALL -. , �y� �R CITY PeouwwEl��I A�,,/•��a/� AVE ♦GC PCR Ul-n- •l JE R.nnIY .' . PARKWAY , OIiT ACCESS Dealer p u iDealer pad 2 4 {}3 ACRES j �� ' it If J -� - { ! 3.10 ACRES De$lei p81c i 3 ��f � ! ! 4.0Y ACRES XISTING 18" SEWER - PLAZA j Lb J \ ` a I CCESS TO ADAM STREET `'- " PROPOSE[ 8" SEWER ''' Dealer ad 5 a Q p Dealer pad 4 �. eC i 4.27 ACRES PROPOSED 8" SEWER { - {I i y Nli VIALL 4ZI i. Dealer pad f � 3.07 ACIRES, �I PROPOSED 8" SEWER u j 7 + Dealer pad, Auto ReiaLd CortTw s! d Deer padjAi o Reis.::d CGrar dwaJ 3.8'? ACRES r-------� r----- —� G 3.�33 ACRES c� . , WELL. I-- - � - 6' MASON9Y WALL 3�4.ot ybt $:G EXHIBIT 6 UTILITIES SEINER SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planning/Engineering Walker/Rancourt + Assoc. ArcNtecture Horton/Shepardson Assoc. Landec" Arctitecture n •. 319682 ~,f CELOQ61EExsSiiNG 6 MASONRY WALL SKXAL - 1C-ik�AY` ---___ FUTURE Sr-44A _ Dealer pad 1 Dealer pad 2 , 3:10 ACRES Dealer pad 3 -PROPOSED TELEPHONE 40,; ACRES i ,---PLAZA � pDAI;,tS � C �• _._. ad 4 a Dealer ad I Dealer p Ijl! D � 3 I 5.02 ACRES ; , ! 4.27 ACRES GTE PROVIDED �-�----FIBER—OPTICITJ i , CABLE CO t3i � :............�................ • S �`TBACK I.�.� Dealer dad 9 { :. L 6'MASONRY S" WALL JL�I 4211 AC? ES � �f Deal-r peal 6 ACRES I f PROPOSED TELEPHONE �. i FEouFeAFNT FpR t)t_IWTE R.O.W. _____► -� jD 5' AVE. LA105GAFE PARKWAY i r— RIC,HT IN/RIC-4T _- _Qk ACCESS DoaW padlkt.#o Pwlafed corT (, Uesies' pad/Auto fieiatOc! Gom'r,wcW 3.82 ACRES 3_93 ACFF_S _. w : , cvkND Q �F EXHIBIT 7 UTILITIES TELEPHONE SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planning/Engneering Walker/Rancourt + Assoc. Arctitecture Horton/Shepardson Assoc• LandwApe Arditecture 6' MASONRY WALL 23 319682 --F •e_oC�,TE EXSnNG 6* MASONRY WALL S MAIN EXISTING 6" GA 50' AVS AINDSCAPE ENT FUTURE SAL PERC" PEOUFEk L FOR ULTIMATE A-O.W. PARKWAY PJGHT 1N,/fVG.HT 6ACCESS 6"1 G Dealer pad 1 Dealer pad 2 4.03 ACRES 3.-* ACRES Dealer pad 3 PROPOSED GAS MAIN OA 4. ACRES PLAZA E- ACCESSTO ADAM STREET �T i 0 deal pad 5 COD eae Dealer pad 4 /Z 5 02 ACRES 4.27 ACRES tu LLJ ..................... Dealer pad 9 67 MASO�Mff Lu (!;),, 4-';q ACf:r=S VIALL j. Dealer Pad lui 42 11 AC' Rd" < 3,07 ACRES -eefrp .E W� I. . , k , -�a "eE� E-WA--,(ir1CFir� ----7--777777 7 PROPOSED GAS MAIN De �-er Piaui A-0 --a— I pad/Aut.o Baiat�d Corwrarcial 3.82 ACRES 3-->3 ACRES C ci M. cvwD 1 WELL L ------------ <i —6 MASONRY WALL EXHIBIT 8 UTILITIES NATURAL GAS 0 NORTH mw 3W 4w SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Meiniero, Smith and Assoc. Planning/Engineering WWker/Rancourt + Assoc. Arc Htedure Horton/Shepardson Assoc. Landscape Aratecture J17bO,G 319682 �' 'LpC-IFE EXlSTNVG 6• MASONRY WALL. LANDSCAPE Y'1=. FUitIRE SIGNALpER CITY F.wG't11�'� 50' A t,lL71MA O.W.PARKWAY (66, %Ar'CE C+UT rn I . Dealer pad 1 Dealer pad 2 if- _ - 4.03 ACRES Dealer pad 3 � � f I � ; 330 ACRES`— -- �` -__-- PROPOSED ELECTRICAL 4.04 ACRES E _ \-ACCESS TO ADAM'SSTREET ',� 3�Q I I d 4 �! i ,a 7 lam. R Dealer pad j 5.02 ACRES 4.27 ACRES '+P EXISTING IID OVERHEAD 1j,�. -- - ----- TRANSMISSION �I1 LINES 4 I� sEr>3AC: Dealer pad WALL j 4 21 A CFES 1 1 I! Dealer pad 6 rl I i tom; 3.07 ACRES 1 PROPOSED ELECTRICAL � 1 �'_PTO-£E�'iTtE��(�c�-sr�-~'t+•� 1 . u Ii • u; '7 � D"er pad%Alo Reiaf*d CpT-WrO..r. W Da= Padf�Oto Be%ted CCf' ', - 3.82 ACi�S - I 3.33 ACRESj CVWD ,alEL -- ----- ----- 6' MASONIM WA'. h N .Y.o, EXHIBIT 9 UTILITIES ELECTRICAL SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planning/Engineen9 Walker/Rancourt + Assoc• Ardtiteaure Horton/ShepardsOn Assoc. Landscape Ard tecture 25 319682 1 ' • -;, RELOCATE EXISTING EXISTING 12" WATER 1� �-6 MASONRY WALL `12" W y L AFE . . -- - _ - FOR ULTIMATE R. I PARKWAY - _ 1 RiC�-ri �� ( Dealer pad 1 f _ Dealer pad 2 } - 4.03 ACRES 3.10 ACRES Dealer pad L_1 _: EXISTING 18" WATER 4.04 ACRES i -trrJ �i -PROPOSED 18" WATER PROPOSED i oa ___�- ---__ <Y\ t� ".d 18" WATER ' cd 10 A' -'LESS TO ADASTREET JvI,a f I ` 4 r pad ; i Q � Deo1.,. } ' 1 Deal;�r pad � - � Ir 5.02 ACRES � � 4.2' ACRES • ' . I sETaAc�c ....... , .. i Dealer pad 9 `4 , VMASOWY QI WALL j i l'. 4Z. ACRES r I 1 i pSd3 R 41 3.07 ACRES ' PROPOSED _.. _ _ .• 12" WATER o w I 7 R I i djAuqo Nsse, pad, FWo Re _--� �---- . �+ I 3.Q2 AVFES 3.93 ACRES y dS VV N j 1 wVWD -r� a m EXHIBIT 10 UTILITIES WATER SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planning/Eng'neerbV Walker/Rancourt + Assoc. Arctitecture Horton/Shepardson Assoc. Landscape ArcWtecture 6 MAS tom' WP 26 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.50 LAND USE 2.50.1 LAND USE PLAN The proposed plan indicates two distinct land use programs. The westerly half (43.5 acres) of the project is devoted to automobile sales and delineates sites for nine dealerships and/or auto related commercial on no more than two of the parcels in Phase II. These sites range from 3 acres to nearly 6 acres. These parcels will take access internally, via a public road system. The easterly portion of the site (43.5 acres) will share a signalized access at Highway 111 with the auto mall. A site development alternative which appears feasible includes multiple 'large box" pads, restaurants and entertainment and office uses as depicted in Exhibit 2. The Specific Plan establishes development standards for the entire site including an integrated design for the Highway 111 and Adams Street frontages. These standards will include considerations for building siting, architecture, lighting, landscape, public art, and storm water retention. These guidelines are intended to be consistent with the La Quinta General Plan goals, policies, and objectives. The key General Plan provisions are reiterated in Appendix B. 2.50.1.1 Auto Mall The development of the auto mall portion of the project will be done via a series of freestanding dealerships and/or auto related commercial structures. A limited number of common area improvements are planned including an upgraded street design, limited common customer parking, and a vertical accent feature located in the center of a circulation roundabout. The parcelization of the auto mall anticipates nine lots which are programmed as follows: Parcel 1 Lot Size: 4.01 acres Facilities: Showroom/Offices: 7,000 s.f. Parts: 6,000 s.f. Service (48 stalls) 27.000 s.f Total 40,000 s.f. Anticipated personnel 80 Parcel 2 Lot Size: 3.08 acres Facilities: Showroom/Offices: 7,000 s.f. Parts: 4,000 s.f. Service (20 stalls) 11.400 s.f. Total 22,000 s.f. Anticipated Personnel 50 27 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA Parcel 3 Lot Size: 4.00 acres Facilities: Showroom/Offices: 8,000 s.f. Parts: 4,000 s.f. Service (20 stalls) 15,600 s.f. Total 27.600 s.f. Anticipated Personnel 80 Parcel 4 Lot Size: 4.27 acres Facilities: Showroom/Offices: 10,000 s.f. Parts: 6,000 s..f. Service (20 stalls) 14,000 s.f. Total 30,000 s.f. Anticipated Personnel 60 Parcel 5 Lot Size: 5.01 acres Facilities: Showroom/Offices: 8,000 s.f. Parts: 5,000 s.f. Service ,20 stalls) 18,100 s.f. Total 31,100 s.f. Anticipated Personnel 80 Parcel 6 Lot Size: 3.07 acres Facilities: Showroom/Offices: 8,000 s.f. Parts: 4,000 s.f. Service (20 stalls) 16,000 s.f. Total 28,000 s.f. Anticipated Personnel 80 Parcel 7 Lot Size: 3.76 acres Facilities: Showroom/Offices: 8,500 s.f. Parts: 4,800 s.f. Service (18 stalls) 18,300 s.f. Total 32,600 s.f. Anticipated Personnel 100 28 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA Parcel 8 Lot Size: 3.76 acres Facilities: Showroom/Offices: 8,500 s.f. Parts: 4,800 s.f. Service (18 stalls) 18,300 s.f. Total 32,600 s.f. Anticipated Personnel 100 Parcel 9 Lot Size: 4.25 acres Facilities: Showroom/Offices: 8,800 s.f. Parts: 5,600 s.f. Service (20 stalls) 15,600 s.f. Total 30,000 s.f. Anticipated Personnel 80 Thus the total development anticipated in the auto mall involves approximately 43.5 acres (gross), contains 275,000 square feet of facilities (FAR = .15) and employs approximately 710 people. The maximum development for Phases I and II without further review shall be 275,000 s.f. or an FAR of .15. While it is expected that all of the sites will be developed with auto sales and related uses, the sites in Phases One and Two may develop pursuant to the allowance for uses as set forth in the Zoning Ordinance except as further delineated in Section 2.50.2.1. 2.50.1.2 MIXED REGIONAL COMMERCIAL DEVELOPMENT The 43.5 acre eastern portion of the site, if developed to the full potential set forth in the City's General Plan (FAR of .35), could generate up to 580,000 square feet of commercial floor space which by City standards would require 2300 parking spaces. A development of this intensity would probably entail either a mid -rise development, multi -level parking structures, significant shared parking such as suggested under ULI guidelines, or a combination of these techniques. However, this Specific Plan limits the maximum square footage of commercial floor space to 400,000 square feet with an FAR of .25 which is far below that allowed by the General Plan. Taking City of La Quinta requirements into account, including parking standards and dimensions, setbacks, open space, and storm water retention, and current commercial development patterns, this development will rely on surface parking with primarily one story and a limited amount of two story construction. Such a plan would yield over 2000 parking spaces and would support 400,000 square feet of development (FAR .25). M 319GS2 SPECIFIC PLAN THE CENTRE AT LA QUINTA Considered together with the auto mall, the total development for the entire project reaches 675,000 square feet which is an FAR of .18; only 51 % of the allowable intensity set forth in the General Plan. In order to maintain views to the nearby mountain vistas, the building massing proposed in Phase III will limit the building height along Highway 111 to 35 feet and will establish minimum openings between buildings of 25 feet. C 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.50.2 DEVELOPMENT STANDARDS The CR zoning development standards contained in the City of La Quinta Zoning ordinance shall be followed except where specifically modified by this Specific Plan. 2.50.2.1 PERM ITTED/CONDITIONAUPROHIBITED USES The City's Zoning Ordinance delineates the range of allowed, conditionally allowable and prohibited uses for each zoning classification. A limited number of deviations from these standards are proposed within this Specific Plan. Also, due to the nature of the auto mall concept being proposed in phases one and two, a master Conditional Use Permit may be approved to cover all of the dealership sites. In addition, this Specific Plan modifies the Zoning Ordinance list of allowable and conditionally allowable uses in Phases I and II as follows: The following uses may be approved by the Planning Commission under Conditional Use Permit procedures: 1. Car Rental Agencies 2. Car Insurance Agencies 3. Car Wash (Full Service or Self Service) 5. Body Shop including Painting 4. Accessories, Retail and Installation 5. Glass Installation 6. Detailing 7. Upholstery 8. Public Auto/Recreation Vehicle Storage The following addition to the CR zone list of "Principle Uses" which would be permitted in Phase III of the Centre at La Quinta: 1. Retail stores, over 50,000 sq/ft floor area The reason for this addition is that this use fits particularly well into the concept of a mixed regional commercial center and would be controlled internally through the property management entity. The municipal concerns over such use could be controlled through the approval of the Specific Plan and additional discretionary approvals would be an unnecessary duplication of effort. 31 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.50.3 DESIGN GUIDELINES 2.50.3.1 GENERAL ARCHITECTURAL THEME The desired architectural style of the project is contemporary desert based on early California Mission, Spanish, southwest and similar themes found in La Quinta. 2.50.3.2 ACCEPTABLE BUILDING MATERIALS A. Stucco (hand smoothed or vertical -raked textures preferred). B. Masonry: flagstone, adobe, Spanish style brick, split faced block, or fluted, split faced block. C. Wood: Exposed, heavy timber, rough sawn beams, glu-laminated beams and peeler poles with stain finish (transparent or opaque). D. Glass Block. E. Weathering Metals: Copper, iron, bronze used as accents and detail areas. 2.50.3.3 COLORS The general color scheme shall be a range from off-white to medium earth tones. Wood shall be stained using medium to dark earth tones and complementary southwest colors (aqua, teal, terra cotta, whitewash). 2.50.3.4 ROOFS Hip, gable and shed roof designs or combinations thereof consistent with the general architectural theme are acceptable and encouraged for main building masses. Acceptable roofing materials for pitched roofs include clay tile, and weathering metals. Where clay tile materials are used, a multi -hued mixture of earth tones (terra cotta, buff, olive, and the like) shall be used. Although the use of clay the and weathering metal roofs is recommended throughout, it is not specifically required for secondary or service building roofs provided other roof designs are not incompatible with the general architectural theme. 2.50.3.5 EQUIPMENT SCREENING Roof mounted mechanical equipment, ductwork and vents shall be screened from view by an architectural device consistent with the building design. 32. 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.50.3.6 FENCING AND WALLS Automobile service areas and service shops, shall be effectively screened from view by masonry walls of the same or complementary materials as the main building walls. 2.50.3.7 SITE LIGHTING On site lighting source for display or parking lot lighting shall be metal halide fixtures mounted on square tubular steel poles, 24 ft. in height above finish grade. Front line or perimeter poles shall be 5" x 5" square tubular steel with two 1000 watt metal halide fixtures. Interior poles shall be 5" x 5" square tubular steel with three or four 1000 watt metal halide fixtures. Security lighting shall be similar to display lighting except that fixtures may be reduced to 400 watts. General: All lighting shall be designed and located so as to confine direct light within the project boundaries (including landscape buffer areas located along Highway 111 and Adams Street). The lighting systems shall be designed and installed so fixtures are mounted perfectly horizontal with no tilt to the mounting. Fixtures shall be equal to "LSI " Citation Series. Pole shall be mounted to bases with anchor bolts and shall have sheet metal bolt covers. No direct burial poles shall be used. 33 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.50.4 PROJECT OPERATIONS 2.50.4.1 PROJECT OPERATIONS -AUTO MALL The auto mall operations are set forth to insure that they are fully understood to be a part of the Specific Plan. While there will be a Conditional Use Permit in place, it is the intent to delineate the elements which will comprise the operational characteristics of the auto mall to facilitate long term management of the Specific Plan and the ongoing land use of this part of the overall project 2.50.4.1.1 SITE PLAN One of the main functions of the site plans for the dealerships within the auto mall is to accommodate a great deal of vehicle storage. The design of the facilities may treat these storage areas separate from the requirements of the City dealing with automobile parking standards, including but not limited to elimination of striping, curbs, shading, and access. Vehicle storage and display may be accommodated on roofs as well as in surface facilities. Customer parking areas shall comply with the requirements of the Zoning Ordinance relative to off-street parking. One City standard that does not directly apply to the auto dealerships in this project is that of an individual loading zone for each business. Due to the unique characteristics of this land use, the overall site plan has been developed to allow off-loading of vehicles within the right-of-way cross section of the internal streets (Auto Centre Drive and Auto Centre Way). The design of the cross section includes a striped, center lane that will double as a left turn lane as well as the unloading area for vehicles. The fifty foot landscape setback area along Highway 111 may incorporate vehicle displays subject to Planning Commission review and approval. Vehicle storage areas will be screened from public view by means of a solid masonry wall up to 6 feet in height and/or landscape materials including mounding. In particular, the storage areas abutting Highway 111 and Adams Street will require particular attention. The required landscape easements (50 feet and 20 feet respectively) shall be designed to enhance the screening of vehicle storage as well as service and work areas. 34 319GS2 SPECIFIC PLAN THE CENTRE AT LA 0UINTA 2.50.4.1.2 LIGHTING A key tool in marketing and selling vehicles is adequate night lighting of display areas. Control of the lighting is proposed by selecting lighting fixtures that will direct light away from the perimeter property lines and toward the vehicle display areas. Fixtures will be "shoe box" type lights mounted on 24 foot high poles. Typically, two to four 1000 watt, metal halide lights are mounted on each pole. In front line display areas along Auto Centre Drive, Auto Centre Way, and La Quinta Centre Drive, the poles will be spaced approximately on 40' centers. In secondary areas, the poles will be approximately 60' on center with three to four fixtures per pole. In rear storage areas, the poles will be spaced approximately 80' to 100' on center. Since the City of La Quinta has generally maintained low lighting levels, this lighting for this project shall be consistent with lower lighting levels wherever practical. All lighting will comply with the City's "Dark Sky" ordinance. 2.50.4.1.3 NOISE The operation of auto dealerships will include repair and service of vehicles. Service departments typically operate between the hours of 7:00 a.m. and 6:00 p.m., five or six days per week. It is the intent of this Specific Plan that the layout and design of the vehicle service department will be a side entrance facility. This design requirement will contain much of the noise generated by this type of activity. The, layout of individual dealerships shall orient the service department openings of the perimeter sites away from the residential area to the south and west. A second design requirement will be the prohibition of a general usage public address system. There are a variety of communication systems available that can replace p.a. type devices for most applications. These alternatives include pagers, and personal telecommunication systems. During the life of this project, other improvements in communications should also be expected. 2.50.4.1.4 SPECIAL EVENTS The auto mall operation will include regularly scheduled special events designed to increase the flow of traffic into the center. These special events shall be limited to no more than 40 total days per year for the auto mall with no single event lasting more than 10 days. Concurrent or jointly sponsored events held on the same day shall count as a single day regardless of how many dealers participate. These special events may not utilize searchlights. However, laser displays and other similar technologies or techniques may be used upon 35 SPECIFIC PLAN THE CENTRE AT LA QUINTA 3196gz approval by the City during those special events. In no case shall any such lighting activity continue after 10:00 p.m. or after business hours. All special events under this entitlement shall be individually approved by the Community Development Director with the Temporary Use Permit process. 36 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.60 CIRCULATION 2.60.1 OVERVIEW The Centre at La Quinta proposes to develop the adjacent street system in a manner consistent with the City of La Quinta General Plan Circulation Plan and also in accord with Caltrans requirements. The property is located on Highway 111, a State highway designated by the City's General Plan as a Major Arterial requiring a half street of 70 feet. The site also abuts Adams Street designated as a Primary Arterial for which the General Plan calls for a half street of 55 feet. Additional right-of-way dedication and street improvements for both streets will be required as a condition of approval of the project. The timing and design of improvements for Highway 111 will be coordinated with Caltrans. 2.60.2 OFF -SITE CIRCULATION SYSTEM The existing conditions around the site include partial improvements on both abutting public streets. The General Plan standards for improvements which will be required in conjunction with this project are consistent with other recent road improvements for both Highway 111 and Adams Street. The construction of the required improvements will continue the process of implementing the adopted General Plan Circulation Plan. In addition to pavement, curb, gutter, median and sidewalk/bikepath improvements, traffic signals are planned at the project's main access points to both Highway 111 and Adams Street (at 47th Avenue) if warrants are met and would be installed at such time as warrants are met. In addition, the existing traffic signal at Adams and Highway 111 will be upgraded. Exhibit 11 shows the proposed cross sections for the streets affecting the project. 2.60.3 PUBLIC TRANSPORATION/TRANSPORTATION DEMAND MANAGEMENT Bus turnouts and shelters shall be provided as a part of the project's public street improvements pursuant to requirements of Sunline Transit, the Public Works Director and Caltrans. Prior to issuance of building permits for individual Site Development Permits, applicants shall submit a Transportation Demand Management (TDM) Plan to the Public Works and Community Development Departments. The plans shall 37 R/MI 0' P.U.E. R/W 10' P.U.E. LA QUIN IA GtN I Kt UKIVG (pUDIIC) Painted Median (no parking) NOT TO SCALE AU I U (;tN I Kt WAT kpUDIIC) kwn:n parKing) AUTO CENTRE DRIVE (public) (with parking) NOT TO SCALE 319682 RnM - 0' P.U.E. 10P.U.E. -- 12' - R/W P.U.E. c1x:e �o-� SECTION C—C AGATE BASE LA QUINTA CENTRE DRIVE (public) Raised or Painted Median (no parking) NOT TO SCALE s Au Cu AUAMJ J I fCCC l NOT TO SCALE CA R/W 70' 12' SIDEW BARRIER CURB--- A.C. ANOARo-/ SECTION E—E sr STATE HIGHWAY 111 CURB s GUTTER NOT TO SCALE AGGREGATE BAS CURB R/W 0' P.U.E. R/W R/W CURB & CURER BASE W o - EXHIBIT 11 STREET CROSS SECTIONS SPECIFIC PLAN THE CENTRE AT LA GIUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. my in9/Enghowty Walker/Rancourt + Assoc. Architecture Horton/Shepardson Assoc. Landscape Architecture 38 SPECIFIC PLAN THE CENTRE AT LA QUINTA 31968z address capital improvement and operational standards as set forth in the City's TDM Ordinance. Any transit related improvements required by the Sunline Transit Agency as a condition to development will not constitute compliance with the plan submittal requirements. 2.60.4 ON -SITE CIRCULATION SYSTEM The 87 acre site is generally bisected by a main north/south drive (La Quinta Centre Drive) that separates the auto mall from the mixed regional commercial site. The auto mall is further served by Auto Centre Drive and Auto Centre Way which also provides direct access from 47th Avenue. The mixed regional commercial center will develop its own internal circulation system which will be designed to interconnect with the road system established in Phases I and II with the auto mall. 2.60.4.1 LA QUINTA CENTRE DRIVE La Quinta Centre Drive will be a roadway which starts at the landscaped entry from Highway 111 with two lanes in each direction and a total right-of-way of 88 feet. A landscaped median will divide the main drive at Highway 111. From that point to the intersection with Auto Centre Drive, there will be a painted median that will also serve as the center left turn lane. Southerly of the intersection, the road reduces to one lane in each direction with a painted center median and a total right-of-way of 60 feet. There will be no on -street parking allowed. La Quinta Centre Drive will be a dedicated public road. No individual site access will be allowed north of Auto Centre Drive with full access allowable southerly of that intersection. 2.60.4.2 AUTO CENTRE DRIVE/AUTO CENTRE WAY The internal access for the individual dealer and/or auto related commercial sites will be provided by dedicated public roads (Auto Centre Drive/Auto Centre Way) each with a right-of-way of 74 feet. This section, consistent with the General Plan collector street, will accommodate two travel lanes, parking on both curbs and a center left turn lane that will also be used for vehicle unloading. Auto Centre Drive also provides a direct connect to Adams Street which aligns with 47th Avenue. 2.60.4.3 MIXED REGIONAL COMMERCIAL CENTER CIRCULATION The mixed regional commercial center circulation plan is depicted on the overall site plan. However, the final circulation design will depend on the ultimate users and the configuration of buildings. The circulation design should take the loop road into consideration and access to the mixed regional commercial center 39 SPECIFIC PLAN 319682THE CENTRE AT LA QUINTA should align with the loop road if practical. The interior circulation system should include an identifiable "collector" road which could be either private or public depending on final design. The interior roadway design should take proper engineering principles into account including but not limited to adequate distance between intersecting drives and eliminating conflicts between backing vehicles and travel lanes. A right-in/right-out drive to Highway 111 is proposed toward the easterly property line to allow east -bound vehicles to egress the project without having to return to La Quinta Centre Drive. This drive will also provide a second point of access from Highway 111 for those motorists who miss La Quinta Centre Drive. 40 SPECIFIC PLAN 319682 THE CENTRE AT LA U/NTA 2.70 LANDSCAPE 2.70.1 LANDSCAPE CONCEPT The landscape concept follows a "desert oasis" theme emphasizing water efficient materials exhibiting color and form. Parking areas in the mixed regional commercial center will feature the concept of a high canopy tree form to reduce the conflict between landscape elements and project graphics. The auto mall will use tree forms . sparingly and concentrate form and color along the street frontage of each dealership and/or auto related commercial use. Most landscape areas throughout the project will be used for storm water retention. The project will feature extensive streetscapes along both Highway 111 and Adams Street. The concept of the westerly (auto mall) portion of the site will be to enclose the dealerships with a six foot walled enclosure and incorporating a graphic identification system into the required 50 foot landscape setback area. The easterly (mixed regional commercial center) plan will incorporate the landscape buffer into the overall plan. No wall will be required east of the main entry with the exception of the overall entry treatment including possible project signage. The City of La Quinta is developing a streetscape program for Highway 111. It is the intent of this Specific Plan to complement that effort by incorporating design principles into the guidelines for the project. One area that the Specific Plan will have to deviate from the streetscape program will be the tree palette. The Highway 111 streetscape concept uses mostly flowering trees which are not appropriate in the circumstance of auto dealerships. Trees of similar shape and size will be used; however, flowering trees will not be required along the auto mall portion of the Highway 111 frontage. 2.70.2 LANDSCAPE DEVELOPMENT STANDARDS The Centre at La Quinta will meet the minimum standards for landscape as set forth in the Zoning Ordinance. 41 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.70.3 LANDSCAPE PALLETTE Landscape materials selected for detailed landscape plans shall be chosen from the following materials: MASTER PLANT LIST- Exhibit 12 TREES ACACIA SMALII SWEET ACACIA ACACIA STENOPHYLLA SHOESTRING ACACIA CERCIDIUM FLORIDUM BLUE PALO VERDE CERDIDIUM PRAECOX SONORAN PALO VERDE GEIJERA PARVIFOLIA AUSTRALIA WILLOW LYSILOMA THORNBERI FEATHER BUSH SOPHORA SECUNDIFLORA TEXAS MOUNTAIN LAUREL PALMS CHAMAEROPS HUMILIS MEDITERRANEAN FAN PALM WASHINGTONIA FILIFERA CALIFORNIA FAN PALM WASHINGTONIA ROBUSTA MEXICAN FAN PALM SHRUBS CAESALPINIA PULCHERRIMA RED BIRD OF PARADISE CASSIA SPECIES CASSIA ENCELIA FARINOSA BRITTLE BUSH JUSTICIA SPICIGERA MEXICAN HONEYSUCKLE LEUCOPHYLLUM C. SPECIES TEXAS RANGER NERIUM OLEANDER'PETITE PINK' DWARF OLEANDER NOLINA PARRYI DWARF MEXICAN GRASS TREE RAPHIOLEPIS (.'SPECIES' INDIA HAWTHORN SALVIA G. 'SIERRA LINDA' SAGE SIMMONDSIA CHINENSIS JOJOBA THEVETIA PERUVIANA YELLOW OLEANDER XYLOSMA CONGESTUM 'COMPACTA DWARF XYLOSMA GROUNDCOVER ANNUAL COLOR SEASONAL FLOWERS ACACIA R. 'DESERT CARPET TRAILING ACACIA BACCHARIS CENTENNIAL BACCHARIS DALEA GREGGII PROSTRATE INDIGO BUSH LANTANA MONTEVEDENSIS PURPLE PROSTRATE LANTANA LANTANA M. 'GOLD SPOT' YELLOW PROSTRATE LANTANA OENOTHERA BERLANDIERI MEXICAN PRIMROSE ROSMARINUS O. 'LOCKWOOD FOREST' DWARF ROSEMARY SANTOLINA VIRENS GREEN SANTOLINA 42 31968Z SPECIFIC PLAN THE CENTRE AT LA QU►NTA VERBENA RIGIDA VERBENA PALM SPRINGS'GOLD' GRAVEL TAILINGS WILDFLOWERS DESERT WILDFLOWER MIXTURE CALIFORNIA POPPIES, VERBENA, ETC. 2.70.4 LANDSCAPE MAINTENANCE A landscape maintenance handbook shall be established to develop standard maintenance practices for the overall project. Of particular concern, is to allow tree forms to fully develop in the parking lot areas in order to achieve the required percentage of shading as set forth in the Zoning Ordinance. Landscaping maintenance for the auto mall portion of the project shall be under a single maintenance contract managed by the Property Owners Association. Similarly, the landscape for the mixed regional commercial center shall also be under a single maintenance contract managed by the center or by the Property Owners Association in the event that multiple ownership exists. 43 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.80 SIGNAGE 2.80.1 SIGNAGE CONCEPT Comprehensive sign plans shall be in place for each Phase of development prior to the issuance of building permits for that phase. The main principle of the comprehensive sign plan shall be compliance with the Sign Ordinance portion of the La Quinta Zoning Ordinance. Monument signs shall conform to the City of La Quinta standard of 8 feet maximum height except for the primary project monuments which may be 12 feet high as shown in Exhibit 18. 2.80.1.1 SIGNAGE CONCEPT -AUTO MALL Due to its unique retailing and land use concept, the auto mall has turned inward, away from Highway 111 to equalize the location factor across the site. Although only three of the dealerships have technical "frontage" on Highway 111, each dealer will be afforded one graphic identification sign in the landscape setback area along Highway 111. In addition, overall center identification signs will be utilized along Highway 111; one monument sign west of the main entry and one near the corner of Adams Street and Highway 111. At the entrance on Adams Street an identification sign may be allowed providing identification to both the auto mall as well as the mixed regional commercial center. Exhibit 18 shows the conceptual monument signs proposed for Highway 111 and Adams Street. Once inside the auto mall, each of the dealers will be allowed the following signage: 1. One ground mounted "Dealership Identification" sign per franchise not to exceed 40 sq. ft. per face. This sign is primarily for manufacturer's identification. 2. One wall mounted "Dealership Identification" sign with 24" maximum height letters. Letters shall be channel can, plex-faced, internally illuminated. 3. One secondary wall or fascia mounted sign for each department (used cars, service, parts, and body shop). Sign shall be of appropriate size to be seen from the internal loop street and shall be sized to it the architectural element on which it is located. 4. Directional signs as necessary as approved by the Director of Community Development. Exhibit 19 depicts the sign locations and design concept for the interior identification signs for the auto dealers. 44 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA 2.80.1.2 SIGNAGE -MIXED REGIONAL COMMERCIAL CENTER The appropriate signage for the ultimate user(s) of this portion of the project will only be determined upon development of a detailed site and use plan for the site. The signage concept shall include a single -sign allowance per main building entrance. Alternative locations may be considered based on the most effective use of graphic identification. Multi -tenant buildings shall integrate a concept for graphics into the architectural scheme which shall become the basis for the comprehensive sign plan for the complex. Freestanding signs may identify the building only; not individual tenants. Single user, freestanding buildings may use freestanding, monument signage. The mixed regional commercial center shall be allowed two complex identification signs; one east of the main entry on Highway 111 and a second sign near the easterly access point. The center may utilize signage at major access points off La Quinta Centre Drive. Major tenants (GLA over 50,000 s.f) may be identified on the complex signs. Exhibits 17 and 18 depict the sign locations and design concept for the identification signs for the retail center portion. 45 319682 SECTION - HIGHWAY 11 7 PARKWAY 1 /8"='1'—O" 0 . Lit"s HORTON SHEPARDSON ASSOCIATES LANMCAN AP006CFW EXHIBIT 13 31 LANDSCAPE HWY 111 X-SECT SPECIFIC PLAN THE CENTRE AT LA QUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planing/Eng'meering Walker/Rancourt + Assoc. Arctitecture Horton/Shepardson Assoc. Landscape Arcttitecture -•,f 46 aasssz - WAI-I- wl GAP GDWMN� @ la? 0.0- 10001p,- wlrJf�- �ipvwAt K- G�f�C-,Te, MOWPPND AUTO OEALERS LAWO HIGHWAY I I PLAN - HIGHWAY I I I PARKWAY 1 !l=203=033 r;7I x 10CI WALLA, �MATZ%�� �At,� �IC�NAGI✓ �_rVP�TIoNl:�7 PF NA p'll HORTON SHEPARDSON ASSOCIATES L&4b,W„mC.,C,m EXHIBIT 14 LANDSCAPE HWY 111 CONCEPT SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smyth and Assoc. Planning/En4mering Walker/Rancourt + Assoc. ArchRechre Horton/Shepardson Assoc. Landscape Architecture 47 319682 319682 EXHIBIT 15 19682 S PARKWAY d PLAN ADAM /\►)/ - ��� "I 4�TRr—,E�—T �l %k vj m ,AUTO HORTON SHEPARDSON ASSOCIATES LANDSCAPE ADAMS STREET SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planning/EnOtwirJ Walker/Rancourt + Assoc. Architecture Horton/Shepardson Assoc. Landscape Architecture 48 f* - SECTION—ADAMS PARKWAY-1/4"=V-055 .31y68� _ . c �`► LAwr1 .. i • c - i I �u�tar P�-nr� TO CENTRE ®R1�/'E PLAN —'AUTO u�c s 7 "= .0'-0" FAK101PIM HORTON SHEPARDSON ASSOCIATES v, W.AA MwiscAM EXHIBIT 16 3 9ss2 LANDSCAPE AUTO CENTRE SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. - Planring/Engheering Walker/Rancourt + Assoc. Arcmecture Horton/Shepardson Assoc• Landscape Arctitecture 49 SECTION - AUTO CENTRE DRIVE-1/4"=1'-o" 319682 6 MASONRY WALL SKWAL FLqURE SK3NAL �WA Y Qj Dealer pad 1 Dealer pad 2 4.03 ACRES WO ACRES Dealer pad 3 4,^ A y'yArintz PLAZA try -4- �-ACCESS TO ADAMS STREET 010 Dealer pad 5 Dealer pad 4 5.02 ACRES i i4271 ACFC-S rk- ........... ........ 1.3D... Lb SEMACK Dealer pad 9 6' MASONnyl lam; WALL 4.21 ACRES Dealer pad 65 3.07 ACRES V. 7 DesW paw - y Aliat7E)eater pad/Araary Ado U444 r--.. 3B2 ACRES 323 ACRES WELL Scr=- 61 MASMRY WALL FER CV REOUFOEW W AVE. "NDSCAPE FM ULIV,%Tc- R.O.W. PARKWAY I)EDICAMN R10-ff W/RK*ff ouTkCCESS ------------- PARKMI PARK',NG PARKW-% i1:11.0 I EXHIBIT 17 SIGNAGE PLAN SPECIFIC PLAN THE CENTRE AT LA OUINTA SIGN PROGRAM OAUTO CENTER MONUMENT REGIONAL CENTER MONUMEN I '� - COMBINED AUTO/REGIONAL '*A MONUMENT UP — DEALER ID MONUMENT STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Pjanring/Engheerhg Walker/Rancourt + Assoc. Ar&Aecture Horton/Shepardson Assoc. Landscape Architecture 50 O.Lud?Jz 319682 ENTRY MONUMENT 47 TH �AVE 3/s"°�'-o" ,r�RT'lFl C/LAl- F,0C-K pleo3oar l po�S DEALER SIGNAGE 3 /8"=1'-®" ENTRY MONUMENT HWY 1 '1 1 3/83'-1 5-o"s ,I� HORTON SHEPARDSON ASSOCIATES uwukK wOmaw EXHIBIT 18 SIGNAGE ONUMENT SIGN SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planning/Eng'neering Walker/Rancourt + Assoc. Ardtitectu'e Horton/SheWdson Assoc. Landscape Arddecture 51 r 319682 ii SOUTH ELEVATION BUILDING IDENTIFICATION MONUMENT IDENTIFICATION EXHIBIT 19 SIGNAGE BUILDING SPECIFIC PLAN THE CENTRE AT LA OUINTA STAMKO DEVELOPMENT Mainiero, Smith and Assoc. Planting/Erxjneeft Walker/Rancourt + Assoc. Ar&Aecture Horton/Shepardson Assoc. Lw)dec" Ard tecture 52 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA APPENDIX A CONDITIONS OF APPROVAL (To be Added) 319682 SPECIFIC PLAN THE CENTRE AT LA QUINTA APPENDIX B APPLICABLE GENERAL PLAN POLICIES 319682 APPLICABLE GENERAL PLAN POLICIES The General Plan of the City of La Quinta was adopted in 1992 and included the Goals, Objectives and Policies that were deemed necessary to properly implement the plan. The key policies which come into play with the development of the subject property are as follows: 2.0 LAND USE ELEMENT 2-2.1.1 "The General Plan shall utilize the building floor area to site area ratio (F.A.R.) as the appropriate standard for commercial land use intensity. F.A.R. shall be defined as the gross floor area of a building divided by the net area of the commercial parcel of land. Net area is the total area of a site minus the area dedicated as public street right-of-way." Table LU-4 further defines the F.A.R. in the M/RC category as a maximum of 0.35 with a building height of four stories. Such use is limited to the Highway 111 corridor. 2-3.1.1 "The M/RC category shall provide areas for businesses serving the entire region with a trade area typically exceeding 100,000 people. Businesses allowed to locate the M/RC areas shall include major retail commercial tenants associated with a regional mall, off -price retail outlet and/or 'power center.' Other businesses permitted in the M/RC category include regional service centers, research and development facilities, major community facilities and/or major medical -related facilities. overnight commercial lodging uses, entertainment uses, as well as automobile uses of a regional nature, may also be included." 2-3.1.9 "A specific plan must be approved prior to any land division or other development approval action of projects in the M/RC areas." 2-3.1.10 "Project approvals and redevelopment agreements for projects in M/RC areas shall stipulate phasing of construction and. responsibility for public facility improvements." 2-3.1.11 Design of projects in M/RC areas shall include appropriate standards to establish adequate buffers and land use compatibility between commercial and residential uses both within and the mixed -use project and with surrounding property." 2.3.12 "The City shall require the development and integration of 'Employment Support Services' in the M/RC Category including such uses as childcare, occupational health, fitness facilities, etc." 319682 3.0 CIRCULATION ELEMENT 3-2.1.7 "Development projects along Highway 111 shall dedicate right-of-way as specified by Caltrans (California Department of Transportation) to provide a maximum right-of-way of 172 feet, or as needed by Caltrans. The City will coordinate with Caltrans and the Coachella Valley Association of Governments (CVAG) to identify regional options for relieving the growth of future traffic demands in the Highway 111 Corridor." 3-3.1.1 "Access to all major and primary arterials shall be restricted to intersection locations and other approved points of ingress and egress." 3-3.1.3 "The City shall institute street access guidelines consistent with the functional roadway classifications. These shall be applied, where feasible, to all new developments. The following guidelines shall be sued to define appropriate access: a). The City shall restrict individual driveway access to Major and Primary Arterials wherever possible. - b). Access to Major and Primary Arterials shall be limited through the use of medians and access controls to maintain street capacity. c). When permitted, access along arterial and collector streets shall be located a minimum of 250 feet from the ends of the curb returns." 3-3.1.4 "In order to enhance and protect the capacity and safety of the circulation system and reduce potential traffic conflicts, the City shall require the consolidation of driveway access points along roadways classified as collector and arterial." 3-4.1.1 Special roadway image corridors and City gateways which evoke a unique identity and character throughout the City shall be designated on Figure CIR-5, Streetscape Image Policy Diagram." 3-4.1.2 "Primary image corridors shall be defined as streets in the roadway network which are the major urban design statements of the City. Primary image corridors shall consist of boulevard streets with raised, landscaped medians and heavily landscaped areas within and contiguous to the street right-of-way. Primary image corridors shall include landscape themes which are reminiscent of La Quinta's agricultural past and desert environment. Primary image corridors may include vertical elements such as palm trees complemented with a shade -producing understory of canopy trees, such as indigenous, drought tolerant desert species. More water intensive understory canopy trees, such as various citrus species, 319682 should be used sparingly in does at key locations as highlights and reminders of past agricultural activities. Ground plane landscape materials should evoke a lush image through the use of drought tolerant, low maintenance plant species. Turf should be used in a manner consistent with citrus trees --sparingly and in high visibility locations. Primary image corridors shall include street traffic signals, street lighting systems, street furniture, bus shelters, street name signs, and noise berms/barriers which are designed in a coordinated and consistent theme unique to La Quinta. At key intersections, primary image corridors shall include treatments which may include special roadway paving, hardscape/screen wall arrangements and displays of public art." 3-4.1.3 "Primary image corridors shall include the following roadways: Highway 111." 3-4.1.4 "Secondary image corridors shall be defined as streets in the roadway network which are the secondary urban design statements of the City. Secondary image corridors shall consist of streets with raised, landscaped medians and landscaped areas within and contiguous to the street right-of-way. Secondary image corridors shall be consistent with primary image corridors relative to similar landscape materials, street traffic signals, street lighting systems, street furniture, bus shelters and street name signs. However, secondary image corridors shall emphasize the use of lower profile indigenous canopy trees, accentuated with the use of citrus trees in various nodes. The use of taller, vertical landscape elements shall be de-emphasized and shall occur in nodes, primarily at street intersections." 3-4.1.5 "Secondary image corridors shall include the following roadways: Adams Street (south of the Coachella Valley Stormwater Channel)" 3-4.1.10 "Along primary, secondary, and agrarian image corridors the City shall establish appropriate building height limits to ensure a low density character and appearance." 3-4.1.11 "Landscaped setbacks are necessary to ensure a high quality and attractive appearance on major streets. Setbacks for walls, buildings and parking areas may vary, if properly designed, but shall generally be as follows: • Highway 111 - 50 feet • Other Major Arterials - 20 feet Landscaping within these setback areas shall be consistent with the appropriate image corridor designation, if applicable." 319682 3-4.1.17 "The City's streetscape quality shall be improved by undergrounding of utilities wherever possible." 3-4.1.18 "Prevention of visual blight shall be enhanced by the administration of a comprehensive sign ordinance." 3-5.1.5 "The City shall coordinate with Sunline Transit to establish transit stops adjacent to medical facilities, senior citizen facilities, major areas of employment, shopping centers and parks." ENVIRONMENTAL CONSERVATION ELEMENT 6-1.1.2 "The City shall utilize street corridors to provide scenic vistas of the Coral Reef and Santa Rosa Mountains. Landscaped setbacks along streets shall be required pursuant to Policy 3-4.1.11 in the Circulation Element of the General Plan. The setbacks are as follows: Highway 111 - 50 feet; Other Major Arterials - 20 feet. AIR QUALITY ELEMENT 9-2.1.1 "In accordance with the California Environmental Quality Act (CEQA), the City shall require all proposed developments to evaluate the air quality impacts of the proposed use. The applicant shall submit an air quality analysis if the project meets one of the following threshold criteria of significance for air quality or threshold levels for land uses identified in the most recent version of the South Coast Air Quality Management District's Air Quality Handbook for preparing Environmental Impact Reports. Air quality analyses for new development shall locate sensitive receptors near the project and assess probable exposure to the project's emissions. If the project will have a significant impact on air quality, the analysis must propose suitable mitigation measures as identified in the South Coast Air Quality Management District's Air Quality Handbook for preparing Environmental Impact Reports." 9-8.2.5 'The City shall administer the provisions of the existing Outdoor Illumination Ordinance (Dark Sky Ordinance) to help limit night time energy consumption from lighting." 319682 EXHIBIT "E" CONDITIONAL USE PERMIT devclrk.red 319682 RESOLUTION NO.97.65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA (5UINTA, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT TO ALLOW AUTOMOBILE SALES AND SERVICE CASE NO.: CONDITIONAL USE PERMIT 97-034 APPLICANT: STAMKO DEVELOPMENT CO. WHEREAS, the Planning Commission of the City of La Quinta, California, did on the 80' day of July, 1997, hold a duly noticed Public Hearing to consider Stamko Development Co. to allow automobile sales and services at the southeast comer of Adams Street and Highway 111. WHEREAS, the City Council of the City of La Quinta, California did on the 1 r day of July, 1997, hold a duly noticed Public Hearing to consider Stamko Development Co. to allow automobile sales and service at the southeast comer of Adams Street and Highway 111. WHEREAS, said Conditional Use Permit request has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended by Resolution 83-68, in that a Environmental Impact Report under Environmental Assessment 97-337 has been recommended with mitigation measures for certification; and, WHEREAS, upon hearing and considering all testimony and arguments, if any of all interested persons desiring to be heard, said City Council did find the following facts, findings, and reasons to justify a recommendation for approval of said Conditional Use Permit: The Conditional Use Permit is deemed consistent with the City's General Plan in that the site is designated mixed/regional commercial and proposed for automobile sales/service retail use. The automobile sales/services use is consistent with the goals and policies and intent of the General Plan Land Use Element (Chapter 2) provided conditions are met. 2. The approval of this Conditional Use Permit is consistent with the Zoning Code and Specific Plan in that construction of the automobile sales/services will conform to development standards outlined in the La Quinta Centre Specific Plan namely parking, lighting, building height and setbacks, signs and landscaping. P:\CD\res=c cupP-3I 319682 Resolution 97-65 I An Environmental Impact Report has been prepared in accordance with CEQA. 4. The automobile sales/services use will not create conditions materially detrimental to the public health, safety and general welfare or injurious to, or incompatible with, other land uses in that an EIR has been prepared with recommended mitigation measures reducing potentially negative impacts to a level of insignificance such as noise and lighting. Specifically, walls will enclose the auto sales and service uses, a public address system will not be allowed, and the service department will be a side entrance facility, opening away from the residential area and lighting will be directed downward and NOT allowed to spillover the property lines. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: 1. That the above recitations are true and constitute the findings of the City Council in this case; 2. That the City Council does hereby approve Conditional Use Permit 97-034 to allow automobile sales and service subject to the Conditions of Approval, attached hereto and made a part of as Exhibit "A". PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council, held on this 151 day of July, 1997, by the following vote, to wit: AYES: Council Members Adolph, Henderson, Sniff, Mayor Pro Tern Perkins NOES: None ABSENT: Mayor Holt ABSTAIN: None RON PERKINS, Mayor Pro Tern City of La Quinta, California A SAUNDRA L. JUHOCA, City Clerk City of La Quinta, California P:\CD\matt cup97.34 2 319682 Resolution 97-65 APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attomey City of La Quinta, Califomia P!\CD\msm cup97-34 319682 Resolution 97-65 RESOLUTION 97-65 CONDITIONS OF APPROVAL - FINAL CONDITIONAL USE PERMIT 97-034 JULY 15, 1997 The development shall comply with Specific Plan 97-034, and all applicable Conditions of Approval. 2. The approval of the Conditional Use Permit shall run concurrently with Specific Plan 97-034. 3. All service departments shall operate between the hours of 7:00 a.m. and 6:00 p.m., six days per week. 4. The light fixtures along the west perimeter wall (Parcels 5, 6, and 7) adjacent to Adams Street shall be adequately shielded to eliminate light glare and/or spillage within the Lake La Quinta residential development. 5. If the landscape and lighting design permits, trees shall be clustered around the light poles along the west perimeter wall, adjacent to Adams Street (Parcels 5, 6, and 7). 6. In the event of a conflict between the conditions listed herein and the provisions of the Development Agreement between the applicant and the City, the provisions of the Development Agreement shall prevail unless such action or interpretation would result in violation of any applicable local, state, or federal law. P:\CD%ra= cuW-34 4 ORDINANCE NO. 306 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF LA QUINTA AND STAMKO DEVELOPMENT CO. CASE NO.: DEVELOPMENT AGREEMENT 97-002 APPLICANT: STAMKO DEVELOPMENT CO. WHEREAS, the City Council of the City of La Quinta, California, did on the 15th day of July, 1997, hold a duly noticed Public Hearing for a Development Agreement; and, WHEREAS, the Planning Commission of the City of La Quinta, California, did on the 8th day of July, 1997, hold a duly noticed Public Hearing for a Development Agreement; and, WHEREAS, at said Public Hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons wanting to be heard, said City Council did make the following Mandatory Findings to approve said Development Agreement: The proposed Development Agreement is consistent with the objectives, policies, general land uses and programs of the City of La Quinta General Plan and Specific Plan 97-029. The property is within the Mixed/Regional Commercial (M/RC) District per the provisions of the 1992 General Plan Update which permits the proposed use and is consistent with the goals, policies and intent of the La Quinta General Plan Land Use Element (Chapter 2) provided conditions are met. 2. The land uses authorized and regulations prescribed for the Development Agreement are compatible with the zoning and its related regulations now applicable to the property. The site is zoned Regional Commercial (CR) which permits the proposed uses provided conditions are met. 3. The proposed Development Agreement conforms with public convenience and the general welfare by providing for extensive public improvements and conforms to good land use practice by encouraging a long-range, comprehensive approach to the development of a major automobile sales/services and mixed commercial complex. C:BJS\ORDDRFTSTAMKODEVAG Ordinance No. 306 The Agreement provides for development requirements that are in excess of City standards, such as the development density, intensity and potential adverse environmental impacts that are significantly more restrictive than those currently permitted under the applicable General Plan and Zoning Code provisions. In addition, entire landscape medians will be constructed on both Highway 111 and Adams Street. 4. Approval of this Development Agreement will not be detrimental to the health, safety and general welfare since adequate provision has been made in previous City approvals to provide for necessary and desirable improvements and since these approvals are incorporated herein. 5. Approval of this Development Agreement will not adversely affect the orderly development of the subject or surrounding property nor the preservation of area - wide property values, but rather will enhance them by encouraging planned, phased growth. 6. Approval of the Development Agreement will provide a positive fiscal impact on the City by providing new revenue to the general fund for services. 7. Consideration of the Development Agreement has been accomplished pursuant to California Government Code Section 65864 et seq. and the City of La Quinta Municipal Code Section 9.250.030, which govern Development Agreements. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California that it does ordain as follows: SECTION 1. ENVIRONMENTAL. Said Development Agreement has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-63). The Community Development Department prepared as Environmental Impact Report (State Clearinghouse No. 97011055) under Environmental Assessment 97-337 for Specific Plan 97-029, Conditional Use Permit 97- 034, Parcel Map 28525 and Site Development Permit 97-603. Therefore, the Final Environmental Impact Report will adequately address the project. SECTION 2. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days after its adoption. C:BJS\ORDDRFTSTAMKODEVAG 2 Ordinance No. 306 SECTION 3: POSTING. The City Clerk shall certify to the passage and adoption of this Ordinance, -End shall cause the same to be posted in at least three public places designated by resolution of the City Council, and shall cause this Ordinance and its certification, together with proof of posting, to be entered into the Book of Ordinances of this City. The foregoing Ordinance was approved and adopted at a special meeting of the City Council held on this 21s' day of July, 1997, by the following vote: AYES: Council Members Adolph, Henderson, Sniff, Mayor Pro Tem Perkins NOES: None ABSENT: Mayor Holt ABSTAIN: None RON PERKINS, Mayor Pro Tern City of La Quinta, California n SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: (�2 L�Z� DAWN C. HONEYWEL , City Attorney City of La Quinta, California C:BJS\ORDDRFTSTAMKODEVAG STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, SAUNDRA L. JUHOLA, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true and correct copy of Ordinance No. 306 which was introduced on the 15T" day of July, 1997 and was adopted at a regular meeting held on the 21 st day of July, 1997 not being less than 5 days after date of introduction thereof. I f her certify that the foregoing ordinance was posted in three (3) places within the Ci y f La Quinta as specified in a resolution of the City Council. AUNDRA L. JUHOLA, City Clerk City of La Quinta, California DECLARATION OF POSTING I, SAUNDRA L. JUHOLA, City Clerk of the City of La Quinta, California, do hereby cert,dy that the foregoing ordinance was posted on July 24, 1997 pursuant to City Co n it Resolution. AUNDRA L. JUH A, City Clerk City of La Quinta, California City Council Minutes 20 July 15, 1997 5. ZONING ORDINANCE AMENDMENT 97-056 TO PROHIBIT INDEPENDENT USED VEHICLE SALES, EXCLUDING NEW VEHICLE SALES WITH ASSOCIATED USED VEHICLE SALES IN THE REGIONAL COMMERCIAL DISTRICT. MOTION - It was moved by Council Members Sniff/Henderson to continue Zoning Ordinance Amendment 97-056 to August 5, 1997. Motion carried unanimously. MINUTE ORDER NO. 97-124. 2. THE CENTRE AT LA QUINTA - FINAL ENVIRONMENTAL IMPACT REPORT UNDER ENVIRONMENTAL ASSESSMENT 97-337, TENTATIVE PARCEL MAP 28525, SPECIFIC PLAN 97-029, TENTATIVE PARCEL MAP 28525, CONDITIONAL USE PERMIT 97-034, SITE DEVELOPMENT PERMIT 97-603, DEVELOPMENT AGREEMENT 97-002. APPLICANT: STAMKO'DEVELOPMENT. 1. APPROVAL AND CERTIFICATION OF THE FINAL ENVIRONMENTAL IMPACT REPORT FOR TENTATIVE PARCEL MAP 28525, SPECIFIC PLAN 97-029, CONDITIONAL USE PERMIT 97-034, SITE DEVELOPMENT PERMIT 97-603 AND DEVELOPMENT AGREEMENT 97-002. 2. APPROVAL OF TENTATIVE PARCEL MAP 28525 CREATING A 10-LOT SUBDIVISION. 3. APPROVAL OF SPECIFIC PLAN 97-029 (CENTRE AT LA QUINTA) CREATING DEVELOPMENT GUIDELINES AND STANDARDS FOR A MULTI - PHASED MIXED REGIONAL COMMERCIAL COMPLEX. 4. APPROVAL OF CONDITIONAL USE PERMIT 97-034 ALLOWING AUTOMOBILE SALES AND SERVICES. 5. APPROVAL OF SITE DEVELOPMENT PERMIT 97-603 ALLOWING THE CONSTRUCTION OF FIVE AUTO DEALERSHIPS INCLUDING BUILDING ELEVATIONS, SITE PLAN, LANDSCAPING, LIGHTING AND SIGN PLANS. 6. APPROVAL OF DEVELOPMENT AGREEMENT 97-002. Mayor Holt advised that she would abstain from participating in this as she has consistently done in the past and left the dais. The Mayor Pro Tern declared the PUBLIC HEARING OPEN. Ms. di lorio, Planning Manager, presented staff report giving an overview of the proposed project which is located on the south side Highway 111 between City Council Minutes 19 July 15, 1997 r. Herman, Community Development Director, advised that the proposed o inance would replace Urgency Ordinance No. 289 which expi es on Sep ber 30, 1997, and would limit one-story units in Areas A, B, , and D as spec 'ed in the staff report. He then explained the new zoning d ignations as recom nded by the Planning Commission and as outline in the staff report. In response to Couhqil Member Adolph, Mr. Herman advi ed that he was not aware of any addition areas that might be required to all within this type of ordinance. Peter Rodholm, 50-640 Calle Pa ma, strongly ur ed approval of the ordinance. Dennis Moreno, of Import Capital, askad tha the issue be tabled until they have submitted their specific plan to Council. There being no one else wishing speak ,he Mayor declared the PUBLIC HEARING CLOSED. \ MOTION - It was moved by C ncil Members Sniff/A olph to take up Ordinance No. 305 by title and numb only and waive further ading. Motion carried unanimously. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY O LA QUINTA, CALIFORNIA, PROVING CHANGE OF ZONE 97-082 FOR AREA IDENTIFIED AS AREA A,,AREA B, AREA C, AND AREA D. It was mgtied by Council Members Sniff/Henderson to introduce Ordinal a No. 305 aq/on first reading. Motion carried by the following vote: ASS: Council Members Adolph, Henderson, Perkins, Sniff, Mayor olt OES: None ABSTAIN: None ABSENT: None City Council Minutes 21 July 15, 1997 Adams Street and Dune Palms Road and reviewed the requests that are before the Council at this time as follows: Specific Plan - Creates the development guidelines and standards for an 87-acre, three -phased development consisting of auto sales/services and retail complex. Tentative Parcel Mao - Creates ten commercial and three landscaped lots. Conditional Use Permit - Allows automobile sales and services. Site Development Permit - includes the development plans for the five auto dealerships. Develooment Agreement - Is a binding agreement between both parties for the purpose of establishing certainty that the development will progress in a timely manner. Environmental Impact Report - The request is for certification of the Environmental Impact Report. The proposal is for 275,000 square feet of auto sales/service on the western half of the property and 400,000 square feet of mixed commercial complex on the eastern half of the property for a maximum 35 foroor M/RCusees!oof .18 Each dealerrein ship the General Plan specifies a maximum of will have a monument sign on Highway 111 for a total of nine signs. A six-foot high block wall is proposed along the dealership portion of Highway 111 and the south property and along all of Adams Street. Landscaping along Highway 111 is consistent with the Highway 111 Design Guidelines. Special design considerations are recommended such as shielded lighting, service bays being oriented away from the residences, requirement for a minimum building set -back of 100 feet for parcels adjacent to Adams Street and prohibiting paging systems to mitigate any negative impacts to the adjacent residences. On July 8", the Planning Commission recommended certification of the Environmental Impact Report and project entitlements subject to conditions. Ms. di lorio then reviewed the elevations and site plan advising that there are three phases and what is being reviewed at this time is the first phase consisting of Parcel 1-5. Parcels 6, 7, 8 & 9 represent the second phase of development. In Phase 2, there is the potential for two service related auto uses rather than having all four auto dealerships. There is a requirement for all the buildings to maintain a minium of 100' set -back from the property line adjacent to Adams Street. She noted that Parcel 5 has parking on the roof. City Council Minutes 24 July 15, 1997 closures of Coachella Valley landfills, the Valley's trash is going to have to be channeled to Edom Hill or more distant landfills. The County of Riverside is responsible for solid waste disposal. They evaluated the Regional Integrated Solid Waste Management Plan, and at this time, their own estimates indicate that the landfill capacity could be exhausted as early as the year 2008. Based on the regional analysis, this project would contribute to that cumulative impact. The EIR conservatively determined that until other landfills or waste disposal facilities are approved and programed, we presumed that this could contribute to a significant cumulative impact on solid waste disposal. The EIR and mitigation monitoring program have a comprehensive set of mitigation measures for both air quality impacts as well as solid waste impacts so that the project level impacts are reduced to the extent feasible. The fact that the EIR has determined that there are two areas of unavoidable significant impacts, means that the Council is required to adopt a Statement of Overriding Consideration if they should choose to approve the project. He also pointed out that between last week's Planning Commission meeting and tonight, the Council was provided with some language typing the mitigation monitoring program with respect to the biology mitigation measures and the aesthetic mitigation measures to make sure the language conformed to what was in the Final EIR response to comments and to reflect the action of the Planning Commission to require that the buildings sited along Highway 1 1 1 in the northeastern quadrant are to have staggered set -backs and lowered building heights to reduce the view obstruction of the distant mountains. In conclusion, Mr. Nichols stated that it's their opinion that the EIR has been prepared in accordance with the procedural documentation requirements specified in the State of California Environmental Quality Act. Council Member Adolph questioned that since we're dealing with existing dealerships why would there be a concern with an increase in solid waste material. Mr. Nichols advised that the EIR evaluated the project as a whole - as the entire development concept, not just the first phase. Mayor Pro Tern Perkins referred to a letter received from the City of Indio in which they were concerned and felt that the City of La Quinta had already made up their minds on this particular project and had pre -determined the outcome. One of the reasons we have a public hearing is to get input from the public and he assured the public that this Council has not pre -determined the outcome of this project until all of the information and facts are in. City Council Minutes 25 July 15, 1997 Chris Clarke, General Partner with Stamko Development, advised that they have owned this property for the past 20 years and in a more recent decade, this property was under some entitlement process called the La Quinta Canyon Center which was on about 130 acres and was an approximately two million square foot mall and power center which the General Plan allows. At that particular time, they were in the entitlement process and in the process of preparing an environmental impact report. In some of the correspondence received, there has been reference made to the EIR for that project, but she pointed out that the EIR was only preliminary and was never released or circulated and was for only two million square feet. Since that time, two years ago, she sold the back 50 acres to the City of La Quinta for low-income housing. Over a year ago, she was approached by some dealers from a neighboring city, whom after having exhausted almost a decade of looking for an auto mall site were quite frustrated. The dealers and she decided at that time, under the circumstances that were before them, that they would commence this project in what they considered to be an environmentally responsible capacity with a full EIR. She met with surrounding property owners, particularly within Lake La Quinta and Rancho La Quinta, and with Joe Hammer to the east her. A good portion of the concerns from Lake La Quinta and Wilma (the developers) have been addressed by requiring, on the west side of the properties, Parcel 6 & 7 be setback at least 100', and by raising the parapet from 4' to 5'/2' on Parcel 5 and by requiring that the lights be mounted below the parapet, and by agreeing to a 2' berm along Adams. She added that the berming is an issue she wished to discuss with the Council, because a condition of approval requires berming all along Highway 111 to the south of the property and she had only intended to berm from Avenue 47 southerly. Some of their other concerns dealing with loading and unloading of vehicles have been taken care of in the Specific Plan, Exhibit 11. There will be no parking allowed on Adams. The streets are being built on the interior to allow for the loading and unloading. They have also added a condition stating that there are no signs on the buildings. Noise was also one of their concerns and they were happy to learn that there will be no paging system. Regarding lights, they will be shielded on the west sides of the property specifically so that the lights will not spill over into the Lake La Quinta area. They were also concerned about auto body repairs and paint shops and she pointed out that the service bays are directed on the west side of the property north and south and on the south side they are directed east and west. Some of the issues that need to be addressed includes: 1) the berming; 2) name of the street - cannot use La Quinta Center Drive, so they are asking that it be changed to La Quinta Drive; 3) in the Specific Plan on Exhibit 2 and 2-1, there is a strip of property that CalTrans gave to them which needs to be incorporated into the project; 4) she objected to the requirement of conforming to the City's City Council Minutes 26 July 15, 1997 Landscape Guidelines since those guidelines have not been approved by the Council; therefore, she wished to have the landscaping as submitted be approved, because if the guidelines change, then she will have to change, too, and she didn't feel that is fair; 5) on Page 44, Item 2 of the Specific Plan, she wished to have read "dealership and/or franchise" and to add the verbiage that architectural forms may require signage to be split on more than one face of the building and splitting would be subject to Planning Commission approval; 6) re: Condition No. 12 of the Specific Plan -- she felt that it's important to make sure that the condition requiring a distance of 60' between buildings be maintained in the conditions to retain the view of the Santa Rosa Mtns.; 7) re: bus stops, she learned that SunLine provides bus stop shelters, but, also just learned that contained in the Highway 1 1 1 Guidelines is a requirement for a more enhanced bus stop, but since these guidelines have not yet been adopted, she had a problem having that condition imposed. She noted that Indian Wells installed their enhanced bus stops with a grant. She stated that her concern is that these bus stops are not in her budget and not knowing what guidelines will ultimately be adopted, she didn't know what to agree to. In response to Council Member Adolph, Ms. Clarke advised that the Lake La Quinta Homeowners wanted an 8' wall on a 3' berm and her proposal was a 6' wall on a 2' berm and she has heard nothing back regarding her proposal. Regarding the lighting, she advised that they will be metal halide fixtures and on the western side of the property, the lights will be shielded. Ms. Clarke referred to Condition No. 36 on Page 50 concerning the term "shall" and not knowing what the City is actually planning. She reiterrated her concern with Condition No. 60 on Page 54 regarding the bus stops. Council Member Adolph advised that the City has been discussing a figure of $25,000 for the bus stops. In response to Council Member Sniff, Ms. di lorio advised that the Highway 1 1 1 Guidelines have been approved by the Planning Commission and are scheduled to be before the Council on August 5m Council Member Henderson agreed that we cannot commit Ms. Clarke to an unknown and suggested that verbiage be added to require the enhanced bus shelters, not to exceed $25,000 which could be a part of the Development Agreement. Council Member Sniff felt that the condition as currently stated in the Specific Plan should remain as is. City Council Minutes 27 July 15, 1997 Robert Pippin, 73-550 Alessandro, -Palm Desert, Attorney for Granite Construction Company, advised that he was present to speak in opposition to the Environmental Impact Report, further advising that he submitted a letter to the Council which he urged them to read. In addition to that letter, his comments deal with the consultant's comments that in most of the issues, no significant environmental impact was found, which he stated did not surprise him due to the parochial nature of their study. He felt that the study of potential impacts was limited to the City of La Quinta and ignored impacts on neighboring cities and impacts from neighboring cities. Roger Wilner, representing the City of Indio Attorney's Office, advised that he submitted a letter to the Council and offered to read it into the record. Mayor Pro Tern Perkins advised that he was welcome to do that if he wished. Council Member Sniff advised that his letter will be entered into the record. Richard Zilinga, Special Environmental Counsel for the City of La Quinta, retained to address this project, advised that he sympathized with the Council in trying to read the letters submitted here tonight, as he's been trying to digest the recent submissions. He referred to two historical letters (copies on file in the City Clerk's Office) as follows: 1. To the Mayor of the City of Indio from Richard Gattis of the law offices Gattis & Kuncz dated October 30, 1995. 2. To Mr. Richard Gattis from David J. Erwin, City Attorney for the City of Indio, dated November 13, 1995. Mr. Zilinga stated that they indicate that the City of Indio had pre -determined two years prior to the environmental process beginning on this project, that they would sue based on CEQA regardless of action taken should the Indio auto dealers decide to move out of the City of Indio. Mr. Zilinga also referred to Mr. Pippin's letter and referred to a Desert Sun article dated July 12, 1997 (copy on file in the City Clerk's Office) regarding an Indian burial site being found where Eagle Hardware is grading. That article elaborates on the procedures that La Quinta follows and how they respond to such discoveries and how it effectively mitigates them. In light of the comments received from the City of Indio, both tonight and in their May 8, 1997 letter, he suggested that the Council consider an amendment to the statement overriding considerations regarding the benefits of this project City Council Minutes 28 July 15, 1997 outweighing any potentially adverse environmental impacts identified by the City of Indio and Granite Construction Company. Francisco Urbina, 45-848 Paradise Palm Lane, Indio, submitted a letter to the City Council. Council Member Sniff requested that all letters received be entered into and made a part of the record. Mayor Pro Tern Perkins called for a brief recess. When Council resumed the meeting, the Mayor Pro Tern Perkins advised that the Council has received several items of correspondence and called for a short time of quiet to provide all Council Members to read the letters which were submitted this evening. Chris Clarke, referred to the comments made during the public hearing and in the letters submitted and stated that she was approached by five auto dealers last July. Mr. Pippin seems to think that this Country was not founded on free enterprise, and that these dealers have been working with the City of Indio for ten years (and with La Quinta) to build a new auto mall. She spoke on behalf of the dealers because they have a right to go where they want to and conduct their business the way they want to just as a company like Stamko has a right to go into something that is compatible with the City's General Plan. So she wished to set the record straight that these dealers have made these decisions and she didn't feel that it's fair for Indio to hold their businesses hostage because this Country was founded on free enterprise. Mr. Zilinga, Special Legal Counsel for the City of La Quinta asked Mr. Urbina, a member of the audience who was video-taping parts of the procedings, if he would be willing to make a copy of his tape available to the City to be a part of the administrative record should it be requested of him, and he responded in the affirmative. There being no one else wishing to speak, the Mayor Pro Tern declared the PUBLIC HEARING CLOSED. Council Member Sniff followed up on Ms. Clarke's comments, stating that the City of La Quinta has not made any effort, whatsoever, to solicit dealers from any other city including Indio. The dealers are leaving Indio on their own initiative rather than being solicited by La Quinta. City Council Minutes 29 July 15, 1997 In response to Council Member Henderson, request to display vehicles on Highway 1 1 1 approval. Mr, Herman advised that each will require Planning Commission Council Member Henderson wished to see that condition changed to allow the Community Development Director to make such approval. Regarding the size of the trees, Ms. di lorio advised that the tree size is required to be 2 %2" - 3" and a 36" box. Council concurred on leaving the diameter size in the condition, but deleting the reference to the box size since that isn't always indicative of the tree size. Council Member Adolph advised that he had no problems with Parcel 1, but Parcel 2 needs to have the rear elevation enhanced because it will face the street. He also had a problem with the design of the Chevy dealership and with the streetscape along Adams is not the best. He said that it's nothing he's going to be insistent on, but suggested that these two elevations be looked at. Ms. Clarke advised that there is a roof breaking up Parcel 2 and it is smaller than Parcel 1, so you'll see far less of that building. Regarding the bus stops, Council Member Henderson suggested requiring the condition to commit them to $15,000 with the City participating. Council Member Sniff stated that this issue has consumed a great deal of his time over the weekend (literally hours). He felt that all of the documents, including the EIR are excellent documents. He had some problems with the effect this project may have on the area, but the EIR satisfied any concerns he had. He felt that the City has done its due diligence all the way around and he and no one else has made a pre -determined decision. RESOLUTION NO. 97-62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA CERTIFYING THE ENVIRONMENTAL IMPACT REPORT PREPARED BY SPECIFIC PLAN 97-029; DEVELOPMENT AGREEMENT 97-002; CONDITIONAL USE PERMIT 97-034; SITE DEVELOPMENT PERMIT 97-603 AND TENTATIVE PARCEL MAP 28525, AS BEING ADEQUATE AND COMPLETE; RECOGNIZING THE OVERRIDING CONSIDERATIONS TO CERTAIN ADVERSE ENVIRONMENTAL IMPACTS; AND RECOGNIZING THE SIGNIFICANT ADVERSE ENVIRONMENTAL IMPACTS WHICH CANNOT BE AVOIDED, BUT WHICH CAN BE REASONABLY MITIGATED, IF THE PROPOSED PROJECT IS IMPLEMENTED. SPECIFIC PLAN 97-029; DEVELOPMENT AGREEMENT 97- 002; CONDITIONAL USE PERMIT 97-034; SITE DEVELOPMENT PERMIT 97- 603 AND TENTATIVE PARCEL MAP 28525 - STAMKO DEVELOPMENT CO. City Council Minutes 30 July 15, 1997 It was moved by Council Members Sniff/Adolph to adopt Resolution No. 97-62 as submitted with inclusion of the following language to the Statement of Overriding Considerations --- "The La Quinta City Council has reviewed the comments and objections filed by the City of Indio and Granite Construction Company and finds that they are devoid of substantial merit. The City Council expressly finds and declares that even if those comments and criticisms had merit, and one or more of the environmental impacts identified were not mitigated to a level of insignificance, nevertheless, the benefits of the proposed project outlined in this Statement of Overriding Considerations outweigh any potentially adverse environmental impacts identified by the City of Indio and Granite Construction Company, and are, therefore, deemed to be acceptable by the La Quinta City Council. Motion carried unanimously with Mayor Holt ABSENT. RESOLUTION NO. 97-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA APPROVING TENTATIVE PARCEL MAP 28525 TO ALLOW A 10- LOT COMMERCIAL SUBDIVISION AND LETTERED LOTS "A", "B", AND "C" ON APPROXIMATELY 87 ACRES. CASE NO.: TENTATIVE PARCEL MAP 28525; APPLICANT: STAMKO DEVELOPMENT CO. It was moved by Council Members Sniff/Adolph that Resolution No. 97-63 be adopted with amended conditions. Motion carried unanimously with Mayor Holt ABSENT. RESOLUTION NO. 97-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING SPECIFIC PLAN 97-029. CASE NO.: SPECIFIC PLAN 97-029; APPLICANT: STAMKO DEVELOPMENT CO. It was moved by Council Members Sniff/Henderson that Resolution No. 97-64 be adopted including amended conditions and including additional Condition No. 24 to read "Bus turnouts shall be provided as a part of the project's public street improvements." Additionally, the project developer shall provide a bus stop shelter that complies with the City's pending transit shelter plan for Highway 1 1 1 not to exceed a cost of $15,000 and to be compatible with all other language in the Development Agreement and wherever else it's necessary, including in Condition No. 1 changing La Quinta Center Drive to La Quinta Drive; changing Condition No. 18 to add a second sentence to #2 to read "Architectural forms or designs may require signs to be split on more than one building face or element, subject to Planning Commission's approval; Condition a City Council Minutes 31 July 15, 1997 No. 20, delete the sentence stating "Specify that the sign can be split on one or more building faces;" add Condition No. 24 stating that the shoebox lighting fixtures shall have flesh lenses; Condition No. 25 change from Planning Commission to Community Development Director and changing Condition No. 12 to read from 60 feet to 65 feet; and add Condition No. 26 regarding the revised right of way for Highway 1 1 1. Motion carried unanimously with Mayor Holt ABSENT. RESOLUTION NO. 97-65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT TO ALLOW AUTOMOBILE SALES AND SERVICE. CASE NO.: CONDITIONAL USE PERMIT 97-034, APPLICANT: STAMKO DEVELOPMENT CO. It was moved by Council Members Sniff/Adolph to adopt Resolution No. 97-65 as submitted. Motion carried unanimously with Mayor Holt ABSENT. RESOLUTION NO. 97-66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING SITE DEVELOPMENT PERMIT 97-603 FOR THE DEVELOPMENT PLANS FOR FIVE AUTOMOBILE DEALERSHIPS. CASE NO.: SITE DEVELOPMENT PERMIT 97-603, APPLICANT: STAMKO DEVELOPMENT CO. It was moved by Council Members Sniff/Adolph to adopt Resolution No. 97-66 as submitted. Motion carried unanimously with Mayor Holt ABSENT. MOTION - It was moved by Council Members Sniff/Adolph to take up Ordinance No. 306 by title and number only and waive further reading. Motion carried unanimously with Mayor Holt ABSENT. ORDINANCE NO. 306 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF LA QUINTA AND STAMKO DEVELOPMENT CO. CASE NO. DEVELOPMENT AGREEMENT 97-002, APPLICANT: STAMKO DEVELOPMENT CO. It was moved by Council Members Sniff/Adolph to introduce Ordinance No. 306 on first reading. Motion carried on the following vote: City Council Minutes 32 July 15, 1997 AYES: Council Members Adolph, Henderson, Sniff, Mayor Pro Tern Perkins NOES: None ABSTAIN: None ABSENT: Mayor Holt Chris Clarke thanked the Council for their actions on behalf of Stamko Development and the dealers. She asked that the Council call a special meeting for next week to have the second reading of the ordinance as it does have some effects which can be discussed with the Council by their attorney. Ms. Honeywell, City Attorney, advised that a special meeting can be called on 24-hours notice and didn't see a need to take that action at this time. No action on the request was taken. Council adjourned to Closed Session as delineated on Page 7. Council reconvened with no decision being made which requires reporting pursuant to Section 54957.1 of the Government Code (Brown Act). There being no further business, the meeting was adjourned. JUN ectfully submitted, DRA L. JUHOLA, City Clerk City of La Quinta, California RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO AND MAIL TAX STATEMENTS TO: City of La Quinta P. O. Box 1504 78-495 Calle Tampico La Quinta, California 92253 Attn: City Clerk HOC a less-454163 10/14/1999 08:00A Fee:NC Page 1 of 38 Recorded in Official Records County of Riverside Gary L. Orso Assessor, County Clerk & Recorder ) II III II III III IIII III III III II III ) III I IIII III II M $ U PAGE SIZE DA PCOR NOCOR SMF MISC. A R L COPY I LONG REFUND NCHG EXAM RESTATED AND AMENDED DEVELOPER LEASE AGREEMENT THIS DEVELOPER LEASE AGREEMENT ("Agreement") is entered into as of the 1st day of December, 1998, by and among the City of La Quinta, a charter city ("City") and Stamko Development Co., a California limited partnership ("Developer") with reference to the following: RECITALS A. WHEREAS, Developer is the fee owner of certain property located in the City ("Project Site"), which Project Site is legally described on Exhibit "A" attached hereto and as finther described in the Specific Plan for the three development scenarios which include three car dealerships in Planning Area 1; and B. WHEREAS, in connection with the development of the Project, Developer intends to dedicate and convey certain real property adjacent to Adams Street to the City and certain property adjacent to Highway 111 to the State for public facilities ("Dedicated Property"), which Dedicated Property is described on Exhibits `B-1" and `B-2" attached hereto and depicted on Exhibits "C-1" and "C-2" attached hereto; and C. WHEREAS, the City and State currently own certain rights -of -way adjacent to the Project Site along Adams Street and Highway 111 ("Existing Rights -of -Way"), which Existing Rights -of -Way are described on Exhibit "D-1" and "D-2" attached hereto and depicted on Exhibits "E-1 " and "E-2"; and D. WHEREAS, the City desires, subsequent to acquiring the Dedicated Property from Developer, to lease the Dedicated Property and the Existing Right -of -Way, to Developer, for purposes of having Developer construct thereon certain public facilities ("Public Facilities"), which Public Facilities are described on Exhibit "F" attached hereto; and E. WHEREAS, Developer has agreed to construct the Public Facilities on the Dedicated and Existing Right -of -Way Property, and then to sublease the Public Facilities to the City pursuant to this Agreement for the benefit of the public and in furtherance of public purposes of the City; and CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd F. WHEREAS, Developer and City first approved a form of this Agreement on July 21, 1997; and G. WHEREAS, due to economic conditions beyond the control of Developer, the original form of this Agreement has become impractical and infeasible to perform; and H. WHEREAS, the City believes that a revision to the original terms of the form of this Agreement is in the best interest of the City and its general health, safety and welfare; NOW, THEREFORE, for and in consideration of the mutual covenants and agreement herein contained, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Agreement, have the meanings herein specified. (a) "Agreement" shall mean this Developer Lease Agreement. (b) "Base Rental Payments" shall mean the rental payments payable by the City to Developer pursuant to the Sublease, as described herein. (c) "City" shall mean the City of La Quinta, California, a charter city duly organized and existing under the laws of the State of California, and its successors and assigns. (d) "Dedicated Property" shall mean that certain real property as described on Exhibits "B-l" and "B-2" and depicted on Exhibits "C-l" and "C-2", which real property shall be conveyed by Developer to the City and to the State pursuant to the terms of this Agreement. m M (e) "Developer" shall mean Stamko Development Co., a California limited c M O m � N partnership. m � (f) "Existing Right -of -Way" shall mean the existing right-of-way currently owned by the City, as described in recital paragraph C hereof. (g) "Interest Component" shall have the meaning set forth in Section 7 hereof. �. (h) "Lease" shall mean the portion of this Agreement which constitutes the lease of the Dedicated Property and the Existing Right -of -Way by City, as lessor, to Developer, as lessee (see Section 3 below). C (i) "Lease Commencement Date" shall mean that date upon which the City Q accepts Developer's dedication of the Dedicated Property. (j) "Leasehold Value" shall have the meaning set forth in Section 7 hereof. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 2 (k) "Principal Components" shall have the meaning set forth in Section 7 hereof. (1) "Project" shall mean the commercial facility, including three car dealerships, and related improvements described in recital paragraph A above. (m) "Project Site" shall mean the real property described on Exhibit "A". (n) "Public Facilities" shall mean the public facilities to be constructed on the Dedicated Property and the Existing Right -of -Way by Developer described on Exhibit "F" attached hereto. (o) "Rental Period" shall have the meaning set forth in Section 7(b)(3) hereof. (p) "Sales and Use Tax" shall mean the 1 % sales and use tax imposed and received by the City under authority granted to the City pursuant to Section 7201 of the California Revenue and Taxation Code. (q) "Sales and Use Tax Revenues" shall mean any revenues collected by the City pursuant to Sales and Use Tax as described above as a result of commercial activity generated by this Project on this Project Site. (r) "Specific Plan" shall mean the Specific Plan approved by the City Council on December 1, 1998. (s) "Sublease" shall mean the portion of this Agreement which constitutes the sublease of the Dedicated Property and the Existing Right -of -Way by Developer, as sublessor, to City, as sublessee (see Section 5 below). (t) "Sublease Commencement Date" shall mean that date upon which the City CO CO a)accepts the Public Facilities as being complete. �o m�� (u) "Term of this Agreement" shall mean that period of time commencing as of the date of the transfer of the property in the Planning Area I to the three car dealership owners for purposes of developing a minimum of three new car dealerships and terminating as of the date of termination of the Sublease. Section 2. Conveyance of Dedicated Property. Developer shall convey or cause to be conveyed to the City or its designee, and the City or its designee shall accept conveyance of, the Dedicated Property, for public purposes, prior to Developer's seeking building permits for the construction of any portion of the Project. Developer covenants that prior to conveying the Dedicated Property to the City or its designee, and provided that the City performs its obligations as set forth in Section 7 of this Agreement, Developer shall own fee title to all of the Dedicated Property, and that such Property shall be conveyed to the City or its designee free and clear of all liens and encumbrances, except those approved in writing by the City. Such conveyance of the Dedicated Property from Developer to the City or its designee shall be deemed to be and is a condition precedent to the rights and obligations of the parties under the CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 3 terms of this Agreement, provided however, that such conveyance shall not be a condition precedent to those obligations of the City under Section 7(b)(2) of this Agreement. Upon the Developer's conveyance of the Dedicated Property to the City or its designee, this Agreement shall be recorded in the Official Records of the County of Riverside, California. Section 3. Lease Terms. Effective upon the conveyance of the Dedicated Property to the City, or its designee, as described above, the City (or its designee) hereby leases the Dedicated Property and Existing Right - of -Way to Developer and Developer leases the Dedicated Property and Existing Right -of -Way from the City, or its designee, on the terms and conditions set forth in this Agreement. Rent for the entire term of the Lease shall be an advance payment by Developer to the City of the sum of $1.00. The term of the Lease shall commence on the date that the City or its designee accepts conveyance of the Dedicated Property and continue until the termination of the Sublease, as described in Section 5 herein, and, upon termination of the Sublease, the Lease shall likewise terminate. Section 4. Construction of Public Facilities. (a) Developer's Obligations. Developer shall finance and construct all of the Public Facilities described on Exhibit "F" attached hereto. In general, the Public Facilities shall consist of: Highway III from Adams Street to La Quinta Drive; Adams Street/Highway 111 intersection; Adams Street from Highway I I I to 47' Street, including center median; La Quinta Drive/Highway 111 intersection. The Public Facilities shall be constructed concurrently with the Planning Area I of the Project which includes a minimum of three auto dealerships. In connection with the Public Facilities, Developer shall do the following: (1) prepare plans and specifications for the Public Facilities in accordance with City and/or State standards, and submit such plans and specifications to the appropriate City and/or State departments for review and approval; (2) provide the City with twenty (20) days written notice prior to the commencement of construction; (3) secure all necessary licenses, permits, rights of way, and rights of entry as may be reasonably necessary for construction; (4) prior to commencement of construction, Developer shall provide the City with faithful performance and material payment bonds or other security as approved by City, each in the amount of 110% of the estimated cost of construction, as determined by the City; the II�IIINUI�I�I1111�IrIIII111111Yllllll �� �=:'-• CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 4 survey, amount and form of such bonds shall be subject to the approval of City Attorney; and such bonds shall remain in full force and effect until the Public Facilities are accepted by the City, at which time such bonds may be reduced to 10% of the cost of construction for a period of one (1) year to guarantee against any defective work, labor or materials; (5) provide workers' compensation insurance for all Developer employees working on construction, in amounts as required by California law; (6) provide and maintain comprehensive liability insurance which shall name both Developer and the City as insureds, and which shall provide coverage from personal injury claims, including accidental and/or wrongful death, and claims for property damage which may arise directly or indirectly from Developer's construction work, or the performance of Developer's obligations hereunder, whether such construction and performance is done by Developer, or any constructor, subcontractor or other party employed directly or indirectly by any of them; such insurance shall provide for limits of not less than $2,000,000 per occurrence and shall further provide that the issuing company may not cancel, modify or terminate coverage unless it shall have given the City thirty (30) days' prior written notice of such cancellation, termination or modification; Developer shall assure that the insurance required by this section shall remain in full force and effect throughout the construction of the Public Facilities, and Developer's failure to do so shall be deemed a material breach of this Agreement; and (7) upon completion of construction, convey to the City, in form and substance acceptable to City Attorney, all rights of way and easements deemed necessary by the City Engineer, in its reasonable discretion, for the operation and maintenance of the Public Facilities, including ingress and egress easements as may be reasonably need for storm drain operation and maintenance. (b) City s Obligations. In connection with Developer's construction of the Public Facilities, the City shall do the following: S m m C 00cl CO (1) review and either approve or provide comments for necessary revisions 0 ° for the plans and specifications for the Public Facilities prepared by Developer in a timely manner �to prior to the commencement of construction of said Public Facilities; Q (2) inspect the construction of the Public Facilities as required; and (3) upon completion and acceptance by the City of the Public Facilities and conveyance of all required rights of way and easements, accept full responsibility for operation and maintenance of the Public Facilities, except as to parkway maintenance responsibilities adjacent to Highway 111 and Adams Street as outlined within the Specific Plan and Covenants, Conditions and Restrictions which shall remain the responsibility of the Developer or its successors and assigns EMM (i.e., Property Owner Association). Section 5. Sublease. Effective upon the completion of the Public Facilities, Developer hereby subleases the Public Facilities constructed on Adams Street (Exhibits `B-1" and "C-1") to the City and the City hereby subleases the Public Facilities construction on Adams Street (Exhibits "134" and "E-l") from CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 5 Developer on the terms and conditions set forth in this Agreement. The Public Facilities shall be deemed to be "complete" upon final inspection and acceptance by the City. Concurrently, the Public Facilities constructed on Highway III (Exhibit `B-2", "C-2" and "D-2" and "E-2") shall be transferred to the State of California. Section 6. Term of the Sublease. The Sublease shall begin as of the Sublease Commencement Date as defined in Section 1(t) hereof. The Sublease shall end on the earlier of (1) December 31, 2011; (2) the time at which the prepayment option is exercised under Section 7(a)(4); or (3) in the event of termination pursuant to Section 20. Section 7. Ci1y's Obligation under Sublease. Under the terms of the Sublease, the City shall perform the following obligations: (a) Prepayment of Certain Sublease Payments. (1) Initial Prepayment. Agency shall receive notification of intent to close escrow two weeks in advance. Within 24 hours of confirmation of close of escrow of the transfer of property to the three auto dealers in Planning Area 1 of the Project, the City shall provide a prepayment of a portion of the Sublease rent, to Wells Fargo Bank as a third party administrator ("Administrator"), in an amount equal to One Million Dollars ($1,000,000)(the "Prepayment Amount"). Within twenty-four (24) hours of City providing the Prepayment Amount to Administrator, Developer shall provide an amount equal to Eight Hundred Thousand Dollars ($800,000) to the Administrator. The combined amount of $1.8 million shall be used to reimburse Developer for the cost of constructing the Public Facilities specified on Exhibit "F". Reimbursement 6 draws shall be provided in accordance with Section 7(a)(3). Reimbursed amounts shall be funded o in accordance with Section 7(a)(3) below. Any amounts not necessary for the construction of the a- :z - Public Facilities shall be refunded back to City and Developer on a pro rata basis. In the event that the $1.8 million is not sufficient to complete the Public Facilities, the Developer shall be solely responsible for any additional amounts. (i) As used in this Agreement, the term "Professional Services" means civil engineering and construction staking (and all of their components) but does not include landscaping. Developer shall bid the project (except Professional Services) to three to five qualified firms to render services in the geographic area of the City. Developer hopes to solicit bids from at least five firms. However, if five (5) qualified firms who render services in the geographic area of the City cannot be found, then a less number, but not less than three (3) shall be sent bids. Professional Services shall be bid to a minimum of three (3) qualified firms who render services in the geographic area of the City. (ii) The bid forms and. specifications shall be prepared by Developer and reviewed by the City for its approval. City shall review the draft bid forms and specifications within twenty (20) business days following delivery of the draft forms and specifications to the City by Developer and shall review the final bid forms and specifications within five (5) business days following delivery of the final forms and specifications to the City by CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 6 Developer. Developer and City shall work closely to develop final bid forms and specifications. The bid forms and specifications shall separate public and private improvements. The City and Developer shall jointly review all bids received. Developer shall select the bid winners, subject to the reasonable approval of the City. In the event of any disagreement between Developer and the City the parties shall meet and confer regarding resolution of the issue. Both parties shall negotiate reasonably and in good faith. (iii) The development and construction of the project may be bid as a unit but it is contemplated that the individual work components of the project may bid separately if elected by Developer. It is the intent of the City and the Develop that the Developer will obtain the best quality for the best price in all aspects of the project. (2) When the bids are received, Developer may or may not negotiate with individual bid respondents to improve the price and/or quality of the bid response. In the event that bid that is selected by the Developer contains aggregate costs for either the Professional Services (including, in this instance, landscaping) or the "hard costs" of the project which exceed 50% of the aggregate amount of each category of costs estimated on attached Exhibit F, then Developer and the City shall meet and confer regarding the overages. The 50% measure referred to the preceding sentence shall include amounts which Developer has expended and for which Developer will receive reimbursement. In the event that Developer and the City, negotiating reasonably and in good faith, are unable to arrive at a compromise regarding the excess, then either party shall have the right to terminate this Lease in written notice to the other. During the course of construction, the City shall have the right to approve of any change orders for any contract which exceed $25,000 as an increase in cost. City will review any change order request within five (5) business days following the submission of the request to the City. If Developer and City disagree on the change order, then Developer and the City shall meet and confer regarding the change order and shall negotiate reasonably and in good faith. (3) Reimbursement Procedure. Reimbursement draws shall be made upon proof of actual expenses as provided in this Subsection (3) and shall be verified by the City and a consultant ("Consultant") retained by the City. The expenses of the Consultant, which shall be no more than five percent (5%) of the hard costs of construction of the Public Facilities, shall be a part of the costs of the Public Facilities as specified on attached Exhibit "F" and shall be disbursed to the Consultant upon the joint invoice approval of City and Developer. Developer shall have ten (10) business days to review the invoice of Consultant following submission of the request to Developer. (i) An initial disbursement shall be made to the Developer for previously incurred pre -development costs and fees upon verification of such costs and fees by the City and Consultant in accordance with the provisions of this Subsection (3). (ii) Prior to each and every disbursement under this Agreement, the conditions specified in Subsection (iii) though (v) shall be satisfied. (iii) At least ten (10) business days prior to a requested disbursement, Developer shall deliver to Consultant and City a request ("Request") for the amount of the Disbursement. The Developer shall certify in the Request that it is accurate and complete. 1999-454163 C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 7 The Request shall specifically identify the nature of each expense, including, but not limited to, by reference to the line items set forth in attached Exhibit F, and shall specify the status of completion of the construction. (iv) City shall review the . Request and the accompanying documentation and determine that the work is within the scope of Public Facilities. This review shall occur within ten (10) business days of receipt of Developer's request. For all items approved, payment shall be authorized within fifteen (15) days of the receipt of the request. The City shall advise the Developer of any issues with respect to the amounts requested by the Developer within twenty (20) days of the receipt of the request from Developer. (v) The City shall have received appropriate waivers of mechanics' and materialmen's lien rights and stop notice rights executed by all contractors and other persons rendering service or delivering materials covered by the Request. (vi) Developer shall deliver to City within five (5) business days following the first day of each month: a monthly report which shall set forth the following for the prior calendar month; any force mageure delay; an update of the construction schedule; and any other material matters relating to the completion of the Public Facilities. (vii) Checks shall be issued by Wells Fargo Bank to Developer upon the written request jointly signed by Developer and City. (viii) In the event there is a dispute between the City and Developer regarding any Request, then within five (5) business days following the twenty (20) days specified in Subsection (iv) above, the City, Consultant, and Developer shall meet and confer regarding the disputed amount. If the disputed amount is in excess of $50,000 or when the total of all unresolved disputed amounts equals $50,000, or more, or when construction of the Public Facilities has been completed without regard to the unresolved amount in dispute, then either Developer or the City may request alternative dispute resolution ("ADR") before a retired judge appointed by JAMS, or similar organization. The ADR hearing: 1. Shall be before a judge with experience in construction cost cases; 2. Shall be heard within forty-five (45) days following the date of the request for the ADR; 3. The City and Developer shall divide initially the cost of the ADR, but the judge shall have the right to apportion the costs between the parties in a manner deemed reasonable by the judge and consistent with the decision of the judge in ADR. (4) Subsequent Prepayme The City has the right but not the obligation to prepay either the Base Rental Payments or the Supplemental Rental Payments. In the event of a determination to prepay, the schedule attached hereto as "Exhibit G" and incorporated by this reference shall be used to determine prepayment amounts. In the event that the City elects to prepay the entire payment, the Sublease would be terminated. 111111111111111111111111111111111111111111111111 �•10"s:�.'� CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 8 (b) Rental Payments. The City agrees to pay to Developer, on a quarterly basis, rental payments ("Rental Payments") for the applicable rental period or portion thereof throughout the term of the Sublease. All Rental Payments shall be allocated as set forth in this Section 7. Rental Payments shall potentially include Base Rental Payments and Supplemental Rental Payments. (1) Amount of Base Rental Payments. Base Rental Payments shall be calculated as follows: From the Sublease Commencement Date and continuing through the term of the Sublease, Base Rental Payments shall be thirty-three percent (33%) of the Sales and Use Tax Revenues generated by businesses or activities located on the Project Site up to a maximum amount of One Hundred Twenty -Two Thousand Two Hundred and Fifty Dollars ($122,250) in any twelve (12) month period of the Sublease. In any twelve (12) month period where the Base Rental Payment is less than $122,250, the amount which is the difference between the amount paid and the $122,250 shall be forgiven and shall be deducted from the First Principal Component, as if paid in full. (2) Amount of Supplemental Rental Payments. Supplemental Rental Payments shall be contingent upon a minimum annual Sales and Use Tax Revenue payment to the City of Five Hundred Thirty Thousand Dollars ($530,000), adjusted annually by the CPI index for Riverside and San Bernardino counties for that year. If the threshold is met, a payment of Seventy - Six Thousand Four Hundred Eleven Dollars ($76,411) shall be made for that year. There shall be ten (10) annual payments of Supplemental Rental Payments. Each Payment shall be due no earlier than: 1) forty-five (45) days after the receipt of the revenue reconciliation report; and 2) the first anniversary date of the first twelve (12) months following the first full calendar quarter in which Sales and Use Tax Revenues are generated by businesses or activities located on the Project Site. If in any year (the same four calendar quarters used to calculate the first annual payment) the minimum annual sales and use tax fails to meet $530,000 this payment including interest shall be forgiven. (3) Time for Payme . The City's obligation to pay Base Rental Payments shall begin on the Sublease Commencement Date. The City shall make quarterly Base Rental Payments to Developer for each rental period ("Rental Period") or portion thereof, which Rental Period shall consist of each calendar quarter. Each Base Rental Payment for a Rental Period shall be due to Developer Forty -Five (45) days after the City receives its Sales and Use Tax Revenue Reconciliation Report for the Rental Period. (4) Form of Rental Payments. Each Base Rental Payment and/or Supplemental Rental Payment shall be paid in lawful money of the United States of America, by warrant or check drawn against funds of the City, and mailed or delivered to the address provided for Developer in Section 17 of this Agreement.. (5) Records Required. If requested by the City, Developer shall provide, or cause each business or activity located on the Project Site to provide, to the City, all Sales and Use Tax information. Generally, the City shall rely on the Sales and Use Tax information supplied by the State and the City's accountant consultants. I III II � 1999 _ IIIIIIIIIIIII 45 IIIIIIIIIIIIIIIIIIIIIIII 1011411999 IIII� IIII IIII a 999 09.06R of 38 CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 9 The City shall maintain sufficient records and accounts to separately identify all Sales and Use Tax Revenues paid to it from businesses and activities located on the Project Site, and shall provide to Developer, at the time of making each Rental Payment, a written accounting with respect to each Payment. (6) Certain Definitions. As used in this Agreement, the following will have the indicated meanings: (i) "First Principal Component" means the amount of $800,000. (ii) "Second Principal Component" means the amount of 500,000. (iii) "Principal Components" means the total of both First Principal Component and Second Principal Component. (iv) "Interest Component": Simple interest on the Principal Components which shall accrue at the rate equal to eight and one-half percent (8.5%) per annum payable as provided in this "Agreement until the Principal Components are paid or forgiven in full. (v) "Leasehold Value" means the total of the Principal Components and the Interest Component. Section 8. Limit on Total Payments. Notwithstanding anything to the contrary herein, the Rental Payments payable by the City to Developer during the term of the Sublease shall not exceed the full amount of the Leasehold Value and are specifically limited to Sales and Use Tax Revenues as described in Section 8 herein. In the event that the Rental Payments over the term of this Agreement do not equal the Leasehold Value due to the fact that certain amounts have been forgiven as set out in "B(1)" and "B(2)", the Developer agrees that no further payments are due and all obligations of the City are satisfied. CO mC o The Interest Component shall commence to accrue on the date of the Sublease 05 m%m Commencement Date and shall accrue until the Principal Components are paid or forgiven in full or, if the Sublease is terminated validly before such payment as provided in the Agreement then the " Interest Component shall cease accruing upon the payment by City to Developer of all amounts which become due to Developer as a result of the termination of this Agreement. Section 9. Source of Ci y s Payment Obligations. The obligation of the City to Developer to pay the Base Rental Payments and/or the Q Supplemental Rental Payments shall be a special and not a general obligation of the City, and shall be payable solely from the Sales and Use Tax Revenues received by the City from businesses and activities conducted on the Project Site. Prior to the time that the full amount of the Leasehold Value under this Agreement is fully paid to Developer as provided herein, the City shall not pledge or encumber the Sales and Use Tax Revenues derived or to be derived from businesses or activities operating on the Project Site so as to impair Developer's rights hereunder. During the term of this Agreement, any subsequent pledge of the Sale and Use Tax Revenues generated from the businesses CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 10 and activities conducted on the Project Site shall be subject and subordinate to Developer's rights hereunder. Notwithstanding any provision herein to the contrary, in the event that the State of California's allocation of Sales and Use Tax Revenues to the City is changed, revised or otherwise amended after the date of this Agreement, the City and Developer each agree to meet in good faith to revise this Agreement to reflect as closely as possible the original intent of the parties in entering into this Agreement with respect to the allocation of Sales and Use Tax Revenues. Section 10. Right of First Refusal. As additional consideration, the City shall have a right of first refusal to purchase lots 4 and 5 in Planning Area II (as such lots are shown in Exhibit 2 to the Specific Plan) for $5.57 per square foot plus 8.5% annual interest until July 1, 2000 and lots 6, 7, 8, and 9 in Planning Area II (as such lots are shown in Exhibit 2 to the Specific Plan) for $4.75 per square foot plus 8.5% interest until December 31, 1999. Section 11. Maintenance, Repair. Additions and Improvements to Public Facilities. (a) Operating and Maintenance Expense. Throughout the term of the Sublease, the City shall, at its sole expense, operate, maintain, repair and/or replace as necessary, the Public Facilities except as to parkway maintenance responsibilities adjacent to Highway 111 and Adams Street which shall remain the responsibility of the Developer or its successors and assigns and not including any Public Facilities dedicated to another public entity) and insure that said Public Facilities remain in good order, condition and repair at a level of service consistent with that maintained for similar types of public improvements located elsewhere throughout the City. The parties hereto acknowledge and agree that Developer shall have no obligation to incur any expense of any kind or character in connection with the management, operation, repair, replacement or maintenance of the Public Facilities during the term of the Sublease. Throughout the term of the Sublease, the City shall keep the Public Facilities free and clear of all liens, charges, and encumbrances. Notwithstanding any damage to the Public Facilities from whatever source, the City shall, throughout the term of the Sublease, repair the Public Facilities consistent with this Section ED � CO without any interruption or abatement of its rental obligations as set forth hereunder. inMQ (b) Additions and Improvements to the Public Facilities. The City shall have the m m right throughout the term of this Agreement, to make any additions or improvements to the Public Facilities, to attach fixtures, structures or signs, and to affix any personal property thereto, provided Q the use of the Public Facilities for the purposes contemplated in this Agreement is not impaired in any way. Title to all personal property placed in or on any of the Public Facilities shall remain with the City, provided however, that any modifications or improvements which constitute fixtures will automatically become subject to this Agreement. Subject to the foregoing, the title to any personal property, improvements or fixtures which may be placed on the Property by any sublessee or licensee of the City shall be controlled by the terms of the sublease or license contract entered into by the City with such sublessee or licensee. Upon Developer's completion of construction of the Public Facilities and their acceptance by the City, Developer shall have no further obligation of any kind to make any additions, improvements, repairs or other changes to the Public Facilities. In the event that Developer elects to make additions, improvements or other changes to the Public Facilities it shall do so only with the CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd I I prior written consent of the City. Any such additions, improvements or other changes shall comply with the encroachment permit rules of the City and all other applicable City building requirements. Notwithstanding the foregoing, should Developer make application for additional on site improvements beyond those contemplated by the Project, Developer may, at that time, be conditioned to make further improvements to the Public Facilities as part of the approval for such additional on site developments. Section 12. Indemnification. (a) Indemnification by the City. The City agrees for the term of the Sublease, it shall indemnify, defend and hold harmless Developer, its officers, agents, employees, directors and representatives from any loss, claim, expense, and/or penalties arising directly or indirectly from the Public Facilities and the City's operation, maintenance and repair thereof, save and except those losses, claims, expenses and/or penalties arising from the gross negligence or willful misconduct of Developer. Such indemnification shall include, without limitation, indemnification for damage or claims for personal injury, including death, and claims for property damage, and including any costs incurred by Developer in defending against same, including without limitation, actual attorneys' fees. The City represents that it is self -insured as a member of a joint powers insurance authority (the "Authority") as to public liability insurance against claims for bodily injury or death or damage to property occurring upon, or about the improvements. In the event that the City elects to purchase liability insurance in the future rather than remaining self -insured with the Authority, such liability insurance shall, during the term of this Sublease, name Developer as an additional insured to the extent appropriate to comply with the provisions of this Section 12. (b) Indemnification by Developer. The Developer agrees that throughout the term of the Lease, it shall indemnify, defend and hold harmless the City, its officers, agents, employees and representatives from any loss, claim, expense and/or penalties arising directly or indirectly from Developer's construction of the Public Facilities, committed in connection with Developer's 0 00 performance of or failure to perform its obligations under the terms of the Lease. Developer agrees CO COM ,� M o that throughout the term of the Sublease, it shall indemnify and. hold harmless the City, its officers, magents, employees and representatives from any loss, claim, expense and/or penalties arising directly @ or indirectly from Developer's gross negligence or willful misconduct committed in connection with 0 Developer's performance of or failure to perform its obligations under the terms of the Sublease. Such indemnification, above identified, shall include, without limitation, indemnification for damages or claims for personal injury, including death, and claims for property damage, and including any costs incurred by City in defending against same, including without limitation, actual attorneys' fees. Section 13. Sale. Transfer or Assignment. The City shall have the right to permit the nonexclusive use of all or any portion of the Public Facilities by any third party as may be necessary to serve the public purposes of the City, provided however, that no sale, transfer or assignment of all or any portion of the City's rights under the terms of this Agreement shall be construed as C relieving the City from any or all of its obligations as set forth in this Agreement. Specifically, it is contemplated that all or portions of those Public Facilities to be constructed adjacent to Highway I I I shall be transferred to the State of California and removed from both the Lease and the Sublease and shall no longer be subject to any part of this Agreement relating to such Lease and Sublease after CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 12 completion, however, such transfer shall not affect the obligation of the City to pay the full Leasehold Value to Developer according to the terms and limitations of this Agreement. Except as otherwise provided in this Agreement, the Developer shall not assign all or any portion of its rights and obligations hereunder to any successors -in -interest to the Project Site or portion thereof, except with the prior written consent of the City, which consent shall not be unreasonably withheld. Any such assignment shall not relieve Developer of its obligations under the terms of this Agreement, except upon express written consent of the City. Notwithstanding anything contained herein to the contrary, the Developer may, without the prior written consent of the City, assign any or all of its rights and obligations hereunder to any Affiliated Entity. For purposes of this Agreement, an "Affiliated Entity" shall mean any corporation, partnership, limited liability company or other form of business entity in which Developer has not less than a fifty percent (50%) ownership interest and not less than fifty percent (50%) management control. Any sale, transfer or assignment of the rights and obligations of either party under the terms of this Agreement shall require thirty (30) days prior written notice to the other party of such assignment, provided however, that no such prior written notice shall be required in connection with any of the following: (1) An assignment by Developer which consists of the conveyance for the purpose of securing loans to be used solely for the financing of the direct and indirect costs of the Public Facilities, including without limitation, financing costs, interest and commissions, planning, design, construction, development and leasing of the Public Facilities to be constructed by Developer, provided that the assignee of any such assignment shall receive only the right to collect Base Rental Payments due under the terms of this Agreement. (2) Transfers resulting from a sale of Developer's interest in the Public Facilities, or the Dedicated Property, or Existing Right of Way, or any portion thereof at foreclosure (or a conveyance thereof in lieu of a foreclosure) pursuant to a foreclosure thereof by a lender. (3) Subject to the terms contained in Section 11(a) of this Agreement, the CO C'O COconveyance or dedications of any portion of the Public Facilities, or the Dedicated Property, or the m o Existing Right of Way, to the City or other appropriate governmental agency, or the granting of Cr) m easements or permits to facilitate the development of the Project. Section 14. Eminent Domain. If the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall terminate as of the date possession shall be so taken. If less than the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall continue in full force and effect and shall not be terminated by virtue of such taking, and the parties C hereto waive the benefit of any law to the contrary, and in such event there shall be a partial abatement of the Base Rental Payments due under the terms of this Agreement. Any award made in eminent domain proceedings for the taking or damaging of the Public Facilities, in whole or in part, shall be paid to Developer to the extent of the then remaining balance of the Principal Component of the Leasehold Value, plus any portion of the Interest Component CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 13 which is then accrued but not yet paid. The amount of the award which is in excess of the sum needed to pay Developer the then remaining balance of the Principal Component, plus any accrued but then unpaid portion of the Interest Component, shall be paid to the City. Section 15. Liens. The City shall pay or cause to be paid when due, all sums of money that may become due for, or purporting to be for, any labor, services, materials, supplies or equipment alleged to have been furnished or to be furnished to or for the Public Facilities throughout the term of the Sublease and which may be secured by any mechanics', materialmen's or other lien against the Public Facilities and/or Developer's interest therein, and the City shall further cause each such lien to be fully discharged and released, provided however, that if the City and/or Developer desires to contest any such lien, that party may do so upon posting security in a form and amount acceptable to the other party sufficient to pay said sums in the event that said liens are reduced to final judgment. Developer shall cooperate with the City in its efforts to discharge and release any liens pursuant to this Section 15 and shall further discharge and release or cause to be discharged and released any liens created directly or indirectly by Developer on or against the Public Facilities. Section 16. Quiet Enjoyment. The parties hereto mutually covenant and agree that the City, by keeping and performing the covenants contained herein, shall at all times during the term of this Agreement peaceably and quietly, have, hold and enjoy the Public Facilities without hindrance or molestation by Developer or anyone whose rights arise through Developer. Section 17. Notices. All notices, demands, offers, and correspondence and other communications required or permitted under this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid. Any notices sent shall be deemed received upon the earlier of. (a) If personally delivered, the date of delivery to the address of the person receiving such notice; or (b) If mailed, three (3) business days after the date of posting by the United States Post Office, in the form of and at the address set forth below: If to the City: City of La Quinta Attention: City Manager P. O. Box 1504 78-495 Calle Tampico La Quinta, California 92253 IIEIIINIIIIII81111111111111111111191111 0/�'n-,:� CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 14 If to Developer and/or Owner: Stamko Development Co. 2205 Poinsettia Manhatten Beach, California 90266 Attention: Christine F. Clarke A Party may change its address by giving notice and other writing to the other Party in accordance with the notice provisions of this Section. Thereafter, notices, demands, correspondence and other communications shall be delivered to the new address. Section 18. Taxes. During the term of this Agreement, the City shall be responsible for and pay when due any ad valorem taxes, or special assessments, if any, levied upon the Dedicated Property, and/or Existing Right of Way, and/or the Public Facilities or upon any parties' interest therein. The parties hereto agree to cooperate with each other in any effort to apply for exemption from any such tax or assessment. Throughout the term of this Agreement, Developer shall pay any gross receipt taxes, income taxes or any other form of tax whatsoever which may be levied upon Developer's rental income derived from this Agreement. Section 19. Waiver. The waiver by either party of any breach by the other parry of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. To be effective, any waiver must be in writing and signed by an authorized representative of the party bound by said waiver. Section 20. Default by the City. If the City fails to pay any Base Rental Payments and/or Supplemental Rental Payments due hereunder within ten (10) days from the date that such Base Rental Payment and/or Supplemental Rental Payments is due and payable, or if the City fails to keep any other terms, covenants or conditions herein for a period of thirty (30) days after written notice thereof from Developer to the City, or if the City shall abandon or vacate the Public Facilities, or if the City's interest in this Agreement or any part thereof shall be assigned or transferred in violation of the terms of this Agreement, either voluntarily or by operation of law, then in such event the City shall be deemed to be in default under the terms of this Agreement. If the City fails to deposit the Prepayment Amount within 24 hours as provided in Section 7(a)(1), then Developer shall have the right to make a written demand to the City to comply. If the City fails to comply with the demand for deposit within 24 hours following written notice by Developer then Developer has the right, at its option, and without further notice or demand, to take the actions provided for in the succeeding paragraph of this Section, including, but not limited to, seeking equitable relief. 111111YIMnYINYIYINNNYIIIIhYIVIYI �'°s;:�.- C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 15 If the Developer sends a written notice of default as provided in the preceding paragraph, and the City fails to remedy any default described in the notice then following thirty (30) days, Developer has the right, at its option, and without further notice or demand, to do any one or more of the following (and in connection with obtaining any equitable relief, City hereby acknowledges that Developer may seek such equitable relief): (1) Take any action or legal proceeding to recover Base Rental Payments and/or Supplemental Rental Payments as they come due pursuant to Section 7 of this Agreement. (2) To terminate this Agreement and all rights of City under this Agreement by giving to City a written notice of termination. Upon termination, Developer may recover the worth at the time of award of any unpaid Base Rental Payments and/or Supplemental Rental Payments earned at the time of such termination. The "worth at the time of award" is computed by allowing interest from the date of termination until the time of award at the rate of eight and one-half percent (8.5%). The maximum amount recoverable shall be the amount of Base Rental Payments and/or Supplemental Rental Payments plus interest due at the time of termination. (3) If permitted under applicable law, to continue this Agreement in effect and obtain a judgment and recover the amounts set forth in Subsection (2) above. (4) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to make Base Rental Payments and/or Supplemental Rental Payments under this Agreement as they become due pursuant to the terms and conditions of this Agreement. (5) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to perform any other terms and conditions of this Agreement. (6) Recover from the City all costs and fees incurred by it (including attorneys' fees and 40 co M court costs) in enforcing its rights under this Agreement, including, but not limited to collecting 9) o amounts due under this Agreement. 11�� co Without limiting the generality of the foregoing, Developer shall have the remedy described in California Civil Code Section 1951.4, providing that Developer may elect to continue this Agreement in effect, after the City's breach and abandonment, and recover rent as it becomes due, if the City has the right to sublet or assign, subject only to reasonable limitations. Section 21. Default by Developer. Q If Developer shall fail to keep any terms, conditions or covenants contained in this Agreement for a period of thirty (30) days after written notice thereof from the City to Developer, or if Developer shall file any petition or institute any proceedings wherein Developer asks or seeks to be adjudicated a bankrupt, or to be discharged from any or all of its debts or obligations, or offers to its creditors to effect a composition or extension of time to pay Developer's debts, or Developer seeks a reorganization or seeks to effect a plan of reorganization or readjustment of Developer's debts, or if any such petition or proceeding of a same or similar nature shall be filed, or instituted against Developer, and Developer shall fail to have such petition or proceeding dismissed within sixty (60) days of its filing, then and in such event Developer shall be deemed to be in default hereunder. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-ftnal.wpd 16 If Developer should, after receiving written notice from the City, fail to remedy any such default within sixty (60) days of delivery of said notice (sixty-five (65) days if the notice is sent by mail), then the City shall have the right, at its option, to terminate this Agreement by delivering written notice of such intent to terminate to Developer not less than sixty (60) days prior to the effective date of such termination, and after the effective date of such termination, the City shall be relieved of all obligations hereunder, provided however, in the event that the termination occurs after the completion of the Public Facilities construction and their acceptance as complete by the City, the City shall continue to make the Base Rental Payments and Supplemental Rental Payments pursuant to Section 7 hereof for the thirteen -year term that the Agreement would have been in effect if not terminated, to Developer or its successor in interest, as long as the City continues to use the Public Facilities, Section 22. Hazardous Materials. (a) Developer's Representations. Developer hereby represents that, to the best of its knowledge, the Dedicated Property is not in violation of any currently existing federal, state or local hazardous materials laws. Developer further agrees that it shall indemnify, protect, defend and hold harmless the City from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Dedicated Property, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Dedicated Property prior to the Commencement Date of the Sublease and not otherwise resulting from the City's use or possession of the Dedicated Property. (b) City's Representation. City hereby represents that, to the best of its knowledge, the property constituting the Existing Right -of -Way is not in violation of any currently existing federal, state or local hazardous materials laws. City further agrees that it shall indemnify, protect, defend and hold harmless the Developer from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Existing Right -of -Way, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Existing Right -of -Way prior to the commencement date of the Lease and not otherwise resulting from the Developer's use or possession of the Existing Right -of -Way. Section 23. Attorneys' Fees. In any action or arbitration arising directly or indirectly out of the terms of this Agreement, the prevailing party shall be entitled to all costs and expenses, including without limitation, actual attorneys' fees and costs of suit whether in equity or in an action at law, as may be necessary to enforce the terms and conditions of this Agreement. 1111111111111111111111111111111111111111111111111111111 .',�'���a CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 17 Section 24. Option to Purchase. The City at any time during the term of this Agreement, shall have the option to purchase the Public Facilities in the manner provided in this Section. The City may exercise its option to purchase the Public Facilities by giving Developer not less than sixty (60) days' prior written notice of its intent to exercise such option. The City's notice of intent to exercise its option shall specify the date upon which the purchase shall occur ("Purchase Date"), which Purchase Date must coincide with the due date for the City's payment to Developer of a Base Rental Payment as such dates are defined in Section 7 of this Agreement. Upon exercising its option to purchase the Public Facilities, the purchase price ("Purchase Price") to be paid by the City to Developer shall be equal to the outstanding balance, as of the Purchase Date, of the Principal Components of the Leasehold Value attached hereto, plus any portion of the Interest Component which is accrued and unpaid on the Purchase Date. On the Purchase Date, the City shall pay the full amount of the Purchase Price to Developer in immediately available funds, and the City shall also pay at that time, in cash or other immediately available funds, the amount of any Base Rental Payments which have accrued prior to the Purchase Date, but which Base Rental Payments have not yet been paid to Developer. Upon the City's exercise of its option and upon the City's payment to Developer of the Purchase Price and Base Rental Payments as provided under the terms of this Section 24, all right, title and interest of Developer in and to the Dedicated Property, Existing Right of Way, and the Public Facilities shall be transferred to the City "as is" and without warranty. This option to purchase shall not effect the payments, if any, due under the Supplemental Rental Payments Section 7(b)(2). Section 25. Recordation and Filing. Upon full execution of this Agreement, Developer shall record this Agreement in the Official Records of the County Recorder for the County of Riverside, California. Section 26. Entire Agreement. This Agreement contains the entire Agreement of the parties hereto with reference to the subject matter hereof, and supersedes all negotiations or previous agreements between the parties with respect to all or any portion of the subject matter hereof. Section 27. Validity and Severability. If any one or more of the terms, provisions, promises, covenants or conditions contained in this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a final decision of a court of competent jurisdiction, then each of the remaining terms, provisions, promises, covenants and conditions contained herein shall remain unaffected thereby and shall be valid and enforceable to the fullest extent permitted by law. If for any reason this Agreement shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by Developer or by the City, or if for any reason it is held by such a court that the covenants and conditions of the City or Developer hereunder, including covenants to pay rents as set forth in this Agreement, are unenforceable for the full term hereunder, then and in such 111111111111111111111111111111111111111111111111111111111111 a,:ffi.:618 of 3.. C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 18 event for and in consideration of the right of the City to possess, occupy and use the Public Facilities and the right of Developer to occupy the Project, which rights in such event are hereby granted, this Agreement shall thereupon become and shall thereafter be deemed to be a lease from year to year under which the annual rentals herein specified will be paid by the City and Developer respectively. Section 28. Headinis. Any headings contained in this Agreement are solely for the purposes of convenience of reference and shall not constitute a part hereof nor shall they be utilized to interpret any term or condition contained in this Agreement. Section 29. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and all of which when taken together shall be deemed a single original. Section 30. Governing Law. This Agreement shall be construed and governed by the laws of the State of California. Section 31. Time of the Essence. Time is of the essence with respect to this Agreement. Section 32. Amendments. This Agreement may be amended at any time, and from time to time provided, however, that no amendment of this Agreement shall be effective unless such amendment is in writing and signed by all parties hereto. Section 33. Other Documents. The parties hereto agree that each shall, concurrently herewith or at any time hereafter, upon reasonable demand by the other, execute any other documents or instruments and do or cause to be done any other acts as may be necessary or convenient to carry out the intent and purposes of this Agreement. Section 34. Successors. Subject to the provisions contained herein, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto. 111111111ll� a'�;�m�:� CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 19 Section 35. Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (a) the party is duly organized and existing; (b) they are duly authorized to execute and deliver this Agreement on behalf of said party; (c) by so executing this Agreement, such party is formally bound to the provisions contained herein; (d) the entering into of this Agreement does not violate any provision of any other agreement to which that parry is bound; and (e) there is no litigation nor legal proceeding or other legal impediment which would prevent the parties from entering into this Agreement. Section 36. Exhibits and Recitals. The Recitals contained in this Agreement, and each and every one of the Exhibits referenced in this Agreement shall be deemed to be incorporated herein by this reference. The Exhibits attached hereto are as follows: Exhibit Description "A" Legal Description of Project Site "B-1" Legal Description of Right -of -Way Dedication (Adams) "B-2" Legal Description of Right -of -Way Dedication (Highway 111) "C-1 " Depiction of Right -of -Way Dedication (Adams) 64C-2" Depiction of Right -of -Way Dedication (Highway 111) 66D-1" Legal Description of Existing Right -of -Way (Adams) 44D-2" Legal Description of Existing Highway 111 Right -of -Way 44E-1" Depiction of Existing Right -of -Way (Adams) "E-2" Depiction of Existing Highway 111 Right-of-way "F" Public Facilities "G" Prepayment Schedules IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested to by the proper officers for each of the parties and the official seals of the parties to be hereto affixed, all as of the day and year first above written. CITY OF LA QUINTA, a municipal chartet ci Date: ��%'% 7 B Y THOMAS P. GENOVESE, City Manager AT ST: NIA HENSLEY, De ty City Clerk City of La Quinta, California ' 111111111111111111111111111111111111111111111111111111 ��°-�a�� CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 20 APPROVED AS TO FORM: C�ccM DAWN HONEYWELL, eity Attorney City of La Quinta, California Date: By: Y Its: 111111111111111111111111111 ,a�:�,;=�v� CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 21 State of California County of Riverside On cl/2" A 9 before me, Phyllis Manley, Notary Public, personally appeared Thomas P. Genovese and Dawn C. Honeywell, personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. (Seal) 190M POW 01:0�oc"6.02 l *r� 1111111111111111111111111111111111111111111111111111111 ��'�a��— CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of G County of On Date personally appeared Public") Names) of Signer(s) ' ❑ personally known to me — OR proved to me on the basis of atisfactory evidence to be the personN whose name I subscribed to within instrument and acknowle ed to me that 4w/ executed the same in tiisl e heir authorized capaclty(�, and that by tettity r signature on the instrument the person(, 7_S ""' or upon behalf of which the erson BETTY S. KID.. P (�) acted, rr Comm ! I t executed the instrument. N NOTARY PUBLIC • 8 CALIFORNIAlw� �! LMonbnY County WITNESS my hand and official seal. My Comm, Ex ra Mo t, �002 SiTatu of N ry Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Lim Individual Corporate Officer Title(s): Partner — ❑ Limited ❑ General Attomey-in-Fact Trustee Guardian or Conservator Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER thumbTop of here Signer's Name: c Number of Pages: Individual Corporate Officer Title(s): Partner — ❑ Limited ❑ General Attorney -in -Fact Trustee Guardian or Conservator Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER -. - "1 weuunm 1 v dry rssociauon - dzib Hammel Ave., P.O. Box 7184 - Canoga Park, CA 91309-71 a4 Prod. No. 5907 Reorder: Call Toll -Free 1-800-876-6827 111111111111111111111111111111111111111111111111111111 .'.�,�"aP.W EXHIBIT "A" LEGAL DESCRIPTION OF PROJECT SITE PROJECT SITE IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION 11 THE NORTHTHE SOUTHWEST ONE -QUARTER OF SEC ION 29, TOWNSHIP 5 ST ONE -QUARTER LYING SOUTHERLY OF STATE HIGHWAY 111 AND_ SOUTH, RANGE 7 EAST, S.B.M., DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SOUTHWEST ONE -QUARTER OF SECTION 29; THENCE NORTH 00 20'28" WEST ALONG THE WESTERLY LINE OF SAID SOUTHWEST ONE -QUARTER A DISTANCE OF 1087.25 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WESTERLY LINE NORTH 00 20'08" WEST A DISTANCE OF 1565.71 FEET TO THE NORTHWEST CORNER OF SAID SOUTHWEST ONE - QUARTER OF SECTION 29; THENCE NORTH 00 20'08" WEST, ALONG THE WESTERLY LINE OF THE NORTHWEST ONE -QUARTER OF SECTION 29, A DISTANCE OF 318.50 FEET TO THE BEGINNING OF A NONTANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 2555.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 19 32'07" WEST, SAID POINT BEING ON THE SOUTH LINE OF THE STATE HIGHWAY CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED AUGUST 23, 1968 AS INSTRUMENT NO. 82038, OFFICIAL RECORDS; THENCE EASTERLY ALONG SAID SOUTHERLY LINE AND ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 1153 09 , AN ARC DISTANCE OF 530.03 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND TANGENT TO LAST MENTIONED CURVE, SOUTH 82 21'02" EAST A DISTANCE OF 1287.12 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 5055.00 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06 03' 12", AN ARC DISTANCE OF 534.06 FEET TO A POINT, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 01 35 46 WEST, SAID POINT BEING ON THE ONE -QUARTE R OF THE SOUTHWEST Y LINE OF THE EASTERLY 330.00 FEET OF THE NORTHEAST ONE -QUARTER OF SAID SECTION 29; CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 1111111111111111111111111111111111111111111111111111111 .'�:-ma.— PROJECT SITE LEGAL DESCRIPTION CONTINUED THENCE PARALLEL WITH THE EASTERLY LINE OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29 AND NONTANGENT TO LAST MENTIONED CURVE, SOUTH 00 13'55" EAST A DISTANCE OF 1311.87 FEET TO A POINT ON THE SOUTHERLY LINE OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE NORTH 89 51'46" WEST ALONG SAID SOUTHERLY LINE A DISTANCE OF 330.01 FEET TO THE NORTHWEST CORNER OF THE EASTERLY 660.00 FEET OF THE SOUTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE SOUTH 00 13' 55" EAST ALONG SAID WESTERLY LINE A DISTANCE OF 239.25 FEET; THENCE NORTH 89 51' 38" WEST A DISTANCE OF 1987.25 FEET TO THE TRUE POINT OF BEGINNING. SUBJECT TO EXISTING EASEMENTS OF RECORD. COMPRISING 87.72 ACRES, MORE OR LESS. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 1999-454163 EXHIBIT `B-1" LEGAL DESCRIPTION RIGHT OF WAY DEDICATION - ADAM STREET A PORTION OF THE EASTERLY 25.00 FEET OF THE WESTERLY 55.00 FEET OF THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020'08" WEST A DISTANCE OF 1087.25 FEET; THENCE ALONG THE WESTERLY PROLONGATION OF THE SOUTHERLY LINE OF THAT PARCEL OF LAND DESCRIBED IN DEED RECORDED AUGUST 2, 1995 AS INSTRUMENT NO. 251766, RECORDS OF SAID RIVERSIDE COUNTY, SOUTH 89051'43" EAST A DISTANCE OF 30.00 FEET; THENCE NORTHERLY ALONG A LINE PARALLEL WITH AND 30.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29 NORTH 001120'08" WEST A DISTANCE OF 1110.16 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID PARALLEL LINE NORTH 00020'08" WEST A DISTANCE OF 225.79 FEET; THENCE NORTH 89039'52" EAST A DISTANCE OF 25.00 FEET TO A POINT ON A LINE PARALLEL WITH AND 55.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29; THENCE SOUTHERLY ALONG SAID LINE SOUTH 00020'08" EAST A DISTANCE OF 225.79 FEET; THENCE NORTH 89039'52" WEST A DISTANCE OF 25.00 FEET TO THE POINT OF BEGINNING. SAID PORTION CONTAINS 5,645 SQUARE FEET, MORE OR LESS. rrN LAND S THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHEDEt�e EXHIBIT "C-1" AND HEREBY BEING MADE APART HEREOF.6687 Exp. 06/30/00 P ARED N E SUPERVISION OF LEH DATE 0:W0382%SURVEY%MAPWWADAMS.doc KEITH 1 TERNATIONAL. - PALM DESERT KII 0 40382.000 760-346-MW 760a46-9W8 IIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 0 14� 1129 68 of800A Wa-MIT "B-2" LEGAL DESCRIPTION RIGHT OF WAY DEDICATION - HIGHWAY 111 A PORTION OF THE NORTHWEST ONE QUARTER AND THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29; THENCE NORTH 89039'42" EAST A DISTANCE OF 55.00 FEET; THENCE ALONG A LINE PARALLEL AND 55.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 251.83 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 00020' 18" WEST A DISTANCE OF 3.29 FEET TO A POINT ON THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111; THENCE NORTH 51031'44" EAST A DISTANCE OF 50.59 FEET TO A POINT ON A CURVE HAVING A RADIAL BEARING OF NORTH 17024'49" EAST; THENCE ALONG THE ARC OF SAID CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2555.00 FEET THROUGH A CENTRAL ANGLE OF 09038'32" A DISTANCE OF 429.98 FEET; THENCE CONTINUING ALONG THE SOUTHERLY RIGHT OF WAY LINE OF SAID HIGHWAY I II SOUTH 82021'04" EAST A DISTANCE OF 992.56 FEET; THENCE SOUTH 07038'56" WEST A DISTANCE OF 15.00 FEET TO A POINT ON A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111; THENCE ALONG A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY I I I NORTH 82021'04" WEST A DISTANCE OF 992.56 FEET TO A POINT OF CURVATURE; THENCE CONTINUING ALONG A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY I I I ALONG THE ARC OF A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2570.00 FEET THROUGH A CENTRAL ANGLE OF 09045'53" A DISTANCE OF 438.00 FEET; THENCE SOUTH 53032' 16" WEST A DISTANCE OF 37.16 FEET TO THE TRUE POINT OF BEGINNING. SAID PORTION CONTAINS 33,991 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED EXHIBIT "C_2" AND HEREBY BEING MADE A PART HEREOF. 1999-454163 0:440382\.SURVEYWIAP\RW-111.doc KII # 40382.000 KEC! S 3v o No. 6687 Exp. 06/30/00 P PAR DIFE DSUPERVISION OF '0/ Po oe DALE5HXLERER 93M Sell— DATE KEITH INTERNATIONAL. - PALM DESERT 760-348-9844 760-346-9368 m mco CD CO M mw �m0 m co Cb a) ` N 0 EXHIBIT "C-1" it T.P.O.B. h— W g W � Ct: :9 F— N ; t/) Q I N Q � I N OI N N �D N 3 O N I I I P.O.B. W 1/4 COR SEC 29 T5S, RM SEMI NBT39'5f E 25.00' 0 N 91 N8739'5Y E 25.00' PARCEL OF LAND ;o SHOWN IN DEED c RECORDED AUGUST 2, 1995 AS INST. 251766. N89'51'45'W 1987.24' AVENUE 48 _ SW CDR SEC 29 SCALE 1" =300' T5S, RX, SBM 0 •150 300 600 9( RIGHT OF WAY DEDICATION - ADAMS STREET -Planning PREPARED UNDER THE SUPERVISION OF: eED LAND S� KEITH -civil Engineering -Archilscluu INTERNATIONAL °� INC.rw -construction PALM DESERT DIVISION Monogement 41-M__ Mk%WAIX • SURE •101 • PALM DESERT, CA • 92211 DALE K LEHER (760) 30-9W • FA1t-(760) 3+6-9M LS 66 EXP. 6-30-00 or eKE(jFy �f I No.6687 Exp. 06/30/00 e=OW38'3f R-2555.00' L-429.98' T=215.49' lk EXHIBIT "C— 2" HIGHWAY > > W ;2'f2I,04 z 1.0 w —� 6 N = -4 p-09'45'5Y 6' c R-2570.00' 'W 992.56' a vWi 4�- T1 L-438.00' NW 1 /4 SEC 29 — — — — — — — — - - SW 1 44 jr 29 SEE DETAIL BELOW W LAJ LINE TABLE Cr LINE BEARING LENGTH N T1 N8739'42'E 55•00' 72 NW20'1g'w 251.83' (n LO T3 N00'20'18•W 3.29' Q T4 N51'31'44'E 50.59' p T5 NOT38'W E 15.00' Q T6 N5S32' 1 G" E 37.16' W ILiJ HI�HwAY 111 �IAI724`9' T3 55' g � 1 Q m�� G.1 a 3 t�Ji p T.P.O.B. p Q O NWy� U) N < CL Cr LLJ Z� p SCALE 1" =400' 66?T%66661!!! 0 200 400 800 1200 DETAIL SCALE 1" =100' 66e!l 66"!!!!l 0 50 100 200 300 RIGHT OF WAY DEDICATION — HIGHWAY 111 -Panning PREPARED UNDER THE SUPERVISION OF: 0 LAND SGR —ng �� KEc KEITH E c"*''ur -Archilectun INTERNATIONAL -Landsc fthi eecl�ure No. 6687 INC. -Land ur Surveying a / 4� Exp. 06/30/00 -Constructionl3L* I� PMM DESERT DIVISION Monagernent DALE KE EHER DATE: 41-0 80AI10WALK • S1AIE 101 • PALM MIX. C4 - 92211 OF CALF (760) 346-9644 • FAx�760) 346-9368 LS 668 EXP. 6-30-00 EXHIBIT "D-1" EXISTING RIGHT OF WAY ADAMS STREET A PORTION OF THE NORTHWEST ONE QUARTER AND THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 255.12 FEET; THENCE NORTH 89°39'42" EAST A DISTANCE OF 55.00 FEET; THENCE SOUTH 00020' 18" EAST A DISTANCE OF 255.12 FEET; THENCE SOUTH 00°20'08" EAST A DISTANCE OF 200.00 FEET; THENCE SOUTH 89°39'52" WEST A DISTANCE OF 25.00 FEET; THENCE SOUTH 00°20'08" EAST A DISTANCE OF 255.79 FEET; THENCE SOUTH 89039'52" WEST A DISTANCE OF 30.00 FEET; THENCE NORTH 00020'08" WEST A DISTANCE OF 455.75 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 32,703 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED EXHIBIT "E-1" AND HEREBY BEING MADE A PART HEREOF. 0:\40382\SURVEY\MAP\RWADAMEX.doc W I # 40382.000 r EAN4 S KEC(E No. 6687 Exp. 06/30/00 PR RED U R SUPERVISION OF D L DATE KEITH I ERNATIONAL. - PALM DESERT 760.346-9844 760-346-9368 11111111Nl�l�l�l30 -°��":°�° EXHIBIT "D-2" EXISTING RIGHT OF WAY HIGHWAY I I I A PORTION OF THE NORTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE A�CITY OF LA DTSFOLLOWS:UF RIVERSIDE, STATE F CALIFORNIA, MORE PARTI�ARLY DESCRIBED A BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 255.12 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG THE SAID WESTERLY LINE NORTH 00020' 18" WEST A DISTANCE OF 121.99 FEET TO A POINT ON THE CENTERLINE OF HIGHWAY 111, SAID POINT BEING ON A NON —TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIAL BEARING OF NORTH 19°59'33" EAST; THENCE ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 2500.00 FEET THROUGH A CENTRAL ANGLE OF 12020'36" A DISTANCE OF 538.59 FEET; THENCE SOUTH 82021'04" EAST A DISTANCE OF 992.56; THENCE SOUTH 07038'56" WEST A DISTANCE OF 55.00 FEET; THENCE NORTH 82021'04" WEST A DISTANCE OF 992.56 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF SAID CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 2555.00 FEET THROUGH A CENTRAL ANGLE OF 09038'32" A DISTANCE OF 429.98 FEET; THENCE SOUTH 51031'44" WEST A DISTANCE OF 50.59 FEET; THENCE SOUTH 89039'42" WEST A DISTANCE OF 55.00 FEET TO THE TRUE POINT OF BEGINNING. SAID PARCEL CONTAINS 87,812 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED LAND EXHIBIT "E-2" AND HEREBY BEING MADE A PART HEREOF. �y�o ►c E c tf v �P No. 6687 Exp. 06/30/00 �q jE MCA E� PR ARED LJNDE HE SUPERVISION OF AL LE DATE O:W03821SURVEYWIAPWW-111Ekdoc KEITH INTERNATIONAL. - PALM DESERT KII N 40382.000 760-346-9844 760-346-9368 1999-454163 EXHIBIT "E-1" N89'3 55.00E' i-l/G 3 � HwAY m o• W 1/4 (MR SEC 29 75S, RX, SBMI wl. W � H � (/') �I QI i i 39 1s 0 N 2 J N89'39'57'E 25.00' iz R N8739'5Y E 30.00' PARCEL OF LAND SHOWN iN DEED RECORDED AUGUST 2. 1995 AS MIST. 251766. I SCALE 1" =300' 1. 0 150 300 600 9 EXISTING RIGHT OF WAY — ADAMS STREET PREPARED UNDER THE SUPERVISION OF: AND -Pbnninq �c,P� LKEQ KEITH Enge nginNrinq � p -Mcl►"eture INTERNATIONAL — � No. 668' LWW JINC. —gin < < 8 �/�/� PALM DESERT DIVISION � �^N^t 4AKHER DATE: slq �1-E65 BOARNAUc + sull 10� li 3m G 92211 LS 6687 EXP. 6-30-00 OF CP,0i (760) 306 9W -FAQ( 601 EXHIBIT E- 2" /�h R=2500.00' L=538.59' T=270.34' ' T.P.0.8. HIGHWAY 111 0 "27 ~ R=2555.00' 2 1'04*W 992.56' _ L=429.98' NW 1/4 SEC 29 —T=�i'ST9— SW 1 - SEC 29 — — — — — — — —T N 1:NH N Q Q LINE TABLE LINE BEARING LENGTH T1 NW20'18'W 255.12' T2 NW20'19*W 121.99' T3 N0738'56'E 55.00' T4 N51'31'44'E 50.59' T5 N8739'4YE 55•00' O N W I N U) M N Q ZLj W ° Z �v SCALE 1" =400' 0 200 400 800 120( EXISTING RIGHT OF WAY - HIGHWAY ill F%nr inq PREPARED UNDER THE SUPERVISION OF: 5�� LAND StN KEITH �KE(,�y`F` -ArrtwllN:tun INTERNATIONAL -„rctt°ur. No. 6687 4 INC. �`°"° -co .cr n tu. I (! / Z ¢V Exp. 06/30/00 PALM DESERT DIVISION w°noq.m.nt 41-M B ARDIM • StA1E 101 . PxM DESERT. CA 1 92211 DALE KE EHER DATE: srgT � (760) 30-9W 6 FAX-(760) 346-9M LS 6687 EXP. 6-30-00 f °F cA` �E EXHIBIT "F" PUBLIC FACILITIES FOR PLANNING AREA I 1. ADAMS STREET IMPROVEMENTS (From Highway 111 to 47th Avenue) UNIT UNIT COST TOTAL C08T ITEM ii1ATY 1 LS $ 4,013.00 $ 4,013 Rough Grading Existing Pavement Saw Cut 1,570 LF 0.40 628 Existing Pavement Removal 400 SF 0.60 240 Existing Curb Removal 120 LF 4.00 480 Pavement (including Westside Pavement 22,150 SF 1.92 42,528 Widening) 6" Type 'D' Curb 650 LF 8.00 5,200 Type A-6 Curb 455 LF 10.00 4,550 10' Wide Cross Cutter 1,830 SF 3.50 6,405 Access Ramps/Corner 2' 750.00 1,500 Cutbacks 6' Sidewalk 2,710 SF 2.50 6,775 Redwood Header 360 LF 2.00 720 Unclassified Excavation/ 1 LS 15,000.00 15,000 Removal 1 LS 8,000.00 8,000 Water/Dust Control 1 LS 8,000.00 8,000 Traffic Control 1 LS 10,000.00 101000 Signing and Striping 1 LS 10,000.00 10,000 Mobilization Parkway Landscaping 1 LS 22,740.00 22,740 1999-454163 OF 10/14/348of � IIIIIIIIIII II 111IIIIII 131111111131111IIII 38 Exhibit F Public Facilities Page Two Landscaped Median 1 LS 32,700.00 32,700 Dry Utilities 4,950 LF 286,548.00 286,�48 ADAMS STREET IMPROVEMENT ESTIMATED HARD COSTS $ 466,027 2. HIGHWAY 111 IMPROVEMENTS (West of La Quints Drive To Adams Street) UNIT TOTAL STEM nnA�-- IT—Y UNIT COST COST 1 LS $ 4,013.00 $ 4,013 Rough Grading Existing Pavement Removal To Subgrade Pavement 8' Meandering Sidewalk loll Wide Cross Gutter Type Al-8 Curb and Gutter Access Two Ramps/Corner Cutbacks Unclassified Excavation/ Removal Water/Dust Control Traffic Control Signing and Striping Mobilization Signal Modification - Adams and 111 New Signal - 111 Project Entrance 14,050 SF $ 0.60 $ 8,430 32,400 SF 2.26 73,224 9,037 SF 2.50 22,593 3,330 SF 3.50 11,655 1,160 LF 11.00 12,760 5 EA 750.00 3,750 1 LS 15,000.00 15,000 1 LS 8,000.00 8,000 1 LS 10,000.00 10,000 1 LS 10,000.00 10,000 1 LS 10,000.00 10,000 1 LS 50,000.00 50,000 1 LS 100,000.00 100,000 1999-454163 Exhibit F Public Facilities Page Three Parkway Landscaping 1 LS 156,070.00 156,070 Dry Utilities 120 LF 26,508.00 26,508 1811 D.I.P. Water Main 2,804 LF 68.72 192.695 HIGHWAY ill IMPROVEMENT ESTIMATED HARD COSTS $ 714,6-98 3. FEES FOR ADAMS STREET AND HIGHWAY 111 IMPROVEMENTS UNIT TOTAL ITEM QUANTITY TWIT COST COST City 5% Agency Fee 1 LS 49,402.00 49,402 CVWD 54 Agency Fee 1 LS 9,265.00 9,635 Civil Engineering 10% 1 LS Fee Construction Staking 1 LS 7% Fee Landscape Architect 1 LS City Consultant 5% Fee 1 LS ESTIMATED FEES FOR ADAMS STREET AND HIGHWAY 111 IMPROVEMENT 4. CONTINGENCY ITEM Contingency 15% ESTIMATED CONTINGENCY 118,073.00 118,073 82,651.00 82,651 30,000.00 30,000 59,036.00 59.036 UNIT TOTAL QUANTITY UNIT COST COST 1 LS 229,429.00 229-429 S 229.429 PLANNING AREA I TOTAL ESTIMATED COSTS FOR ADAMS STREET AND HIGHWAY ill IMPROVEMENTS 1111� ,.,,�,;o,,.w $1,758,951 II�I�I���I�MwV�I�IYI�NIWINI ..19.�;p,::n� HYPOTHETICAL RENTAL PAYMENT SCHEDULE STAMKO DEVELOPMENT CO. RESTATED AND AMENDED DEVELOPER LEASE AGREEMENT A BASE RENTAL PAYMENT CALCULATION: Initial Prepayment Actual Infrastructure Casts Amount to be Repaid by City Amount of Bass Rental Payments 4 Quarter (A) (B) (C) Period Annual 33% of Amount Ending Sales Sales Available Tax Tax for Rent (Assumed) Cot B (up tc $122,250) 12/31/99 - - - 1 12/31/00 400,000 132,000 122,250 2 12/31 /01 550 ,000 181,500 122,250 3 12/31/02 4c-0,000 148,500 122.250 4 12/31/03 350,000 115,500 115,500 5 12/31/04 325.000 107.250 107,250 6 12/31/05 4sa,000 148,500 122,250 7 12/31/o6 Ssx:,000 181,500 122.250 8 12/31/07 6C0,000 198.000 122.250 9 12/31/08 650,000 214.500 122.250 10 12WA39 700,000 231,000 122,250 Note: Any Payr-+ent Shortall, including princi SCENARIO 1 (Infrastructure Improvements LESS Than $1.8 Million) Total City Developer $1,11W.000 $1.000.000 $800.000 100% 56% 44% $1500,000 933,333 666,667 100% 66% 411% SCENARIO 2 (Infrastructure Improvements EQUAL $1.8 Million) Total City Developer $1,800,000 $7,000,000 5800,000 100% 66% 14% $1,600,000 1,000,000 800.000 100% 69% 41 % SCENARIO 3 (Infrastructure Improvements MORE Than $1.8 Million) Total City Developer $1,800,000 $1,000,000 $800.W0 100% 56% 44% $2,000.000 1,000.000 1.000 ,000 100% 60% 60% (D) (E) (F) Rental Principal Interest (G) Payment (H) Ending I (D) - (E) Rental Principal (F) Interest (G) (M (D) (E) Payment Ending Rental Principal (F) Interest (G) (M Payment Ending Payment Paid Paid at Shortfall Balance Payment Paid Paid at Shortfall Balance Payment Paid Paid at Shortfall Balance 8.50% (Forgiven) 8.50% (Forgiven 8.50% (Forgiven) Principal Due: 666,66 Principal Ow 300,000 Principal Due:j 800,000 W 122.250 65,583 56.667 601,083 122.250 54.250 68,000 - 45, 686,889 122,250 122,250 54,250 58,861 68,000 63.389 4 686,889 122.250 71,158 51,092 - 529,925 452,719 122,250 122,250 58,861 63.864 63.389 - 58.386 - 623,024 122.250 63,864 58,386 623.024 122,250 115,500 77206 77,019 45,044 38,481 6,750 368,950 115,500 62.543 52.957 6,750 553.731 115,500 62.543 52.957 6,750 553,731 478,549 107,250 75,889 31,361 15,000 278,061 107,250 60,183 47.067 15,000 478,549 107.250 60,183 47,067 15.000 40,677 - 396,975 122,250 98,615 23.635 - 179.446 122.250 81,573 40,677 - 33,743 396,975 308,468 122.250 122,250 81,573 88,507 33,743 308,468 122,250 106.997 15,253 72,449 122,250 122.250 88.507 96,030 26,220 212,438 122,250 96,030 26,220 212.438 78.607 72,449 6,158 122,250 1117.446 104,193 18,057 - 108,215 122.250 104.193 18.057 108,2150 - 108,245 9,201 - 0 117.446 108.245 9.201 pal and/or interest due in each payment year, is forgiven and (with principal deducted from outstanding balance) 9 Amount Available for Rent Is less than $122,250 HYPOTHE-ICAL RENTAL PAYMENT SCHEDULE STAMKO DEVELOPMENT CO. RESTATED AND AMENDED DEVELOPER LEASE AGREEMENT B SUPPLEMENTAL RENTAL PAYMENT CALCULATION 4 Quarter (A) (B) (C) (D) (E) (F) (G) (H) (I) Period Annual Annual Annual Scheduled Annual Principal Interest Payment Ending Ending Sales CPI Sales Tax Payment Rental Paid Paid at Waived Balance Tax (Assumed) Threshhold (Prin.& Payment 8.50% (Prin.& (Principal) (Assumed) (Adjusted Interest) Interest) by CPI) Principal Due: r 500,000 12/31/99 1 12/31/00 400.000 n/a 530,000 76,204 - - - 76,204 466,296 m.� 2 12/31/01 550,000 2.00% 540,600 76,204 76,204 36,569 39,635 - 429,727 A o 3 12/31/02 450.000 2.35% 553,304 76,204 - - 76,204 390,050 W 0,�o 4 12/31 /03 350, 000 2. 50% 567,137 76,204 _ - - 76,204 76,204 347,001 300,292 5 12/31/04 325,000 3.50% 586,986 76,204 - - = 76,204 249,613 wODcoo w 6 12/31/05 450,000 1.50% 595,791 76,204 - - 76,204 194,626 0 7 12/31/06 550,000 2.00% 607,707 76,204 - - 76,204 134,966 8 12/31/07 9 12/31/08 600,000 650.000 2.50% 3.50% 622.900 644.701 76,204 76,204 - - 76,204 64,732 11,472 - 70,234 10 12/31/09 700,000 4.00% 670,489 76,204 76,204 70,234 5,970 - (0) PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO'. C, ITy OF 4fq 01�i�A WAio Gzw RECEIVED FOR RECORD AT 8:00 AM MAR 111999 f�w, ' h am" MOoid� of mvmw Owl, CdbmM F1eO"* Fees $. SPACE ABOVE FOR RECORDERS USE ONLY Title of Document 651- r4-rvl fTO 0 tv, C�vu,Lop in. I I F 0i THUSS AIR R�l[��4e��L�'n4.uD -'� kla' U3'7� 0 AY L. A. THIS PAGE ADDED TO PROVIDE ADEQUATE Recording FOAp RECORDING INFORMATION ($3.00 Add STC-SCSD 996a (Rev 8/97) 98812 y FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement ("Amended Agreement") is made and entered into this 1 st day of December, 1998, by and between the CITY OF LA QUINTA, a charter city ("City"), STAMKO DEVELOPMENT COMPANY, a California limited partnership ("Developer") and THE TRUSTEE OF THE JUVONEN LIVING TRUST, a California Trust ("Partial Owner"). The City and Developer are hereinafter sometimes referred to individually as a "Party" and collectively as the "Parties". RECITALS This Amended Agreement is predicated upon the following facts: A. The City, Developer and Partial Owner originally entered into that certain Development Agreement dated July 15, 1997 ("Original Augustg20�1997, and recordedent") authorized yon1ty Council September Ordinance No. 306 dated July 21, 1997, and effective 3, 1997. B. Due to certain economic restraints beyond the control of any party to the Original Agreement, the Developer is unable to perform according to the original unamended Specific Plan and Developer Lease conditions and, therefore, has requested certain modifications to the site planning conditions, the Development Agreement, and the Developer Lease to allow the Project to proceed. C. The City believes that all of the findings made in the Original Agreement remain true, that the requested modifications by the Developer as set out in this Amended Agreement with attachments are consistent with the General Plan , and all other applicable plans, rules, regulations and official policies of the City of La Quinta and the approval of this Amended Agreement shall promote the health, safety and general welfare of the City. D. It is the intent of the Parties that on execution of this Amended Agreement, Developer shall be obligated to complete the Public Improvements in the manner set forth herein and that Developer will be entitled to proceed with the Project subject to the Amended Specific Plan 97-029, and Conditional Use Permit 97-034 attached hereto and incorporated herein as Exhibits "D" and "E" respectively, in accordance with this Agreement. and with City's rules, regulations and official policies governing permitted uses, density, design, improvement and construction standards and specifications in force on the date of this Amended Agreement. E. Regarding Recital "H" to the Original Agreement: the Project will encompass three planning areas ("Planning Areas"). F. On November 10, 1998, the Planning Commission of the City of La Quinta (the "Planning Commission"), after giving -notice pursuant to Government Code Sections 65854, 65854.5 and 65866, held a public hearing on Developer's application for this Amended Agreement. On C:\My Documents\WPDOCS\DARestAgmt.wpd I 98812 November 17, 1998, the City Council of the City of La Quinta ("City Council"), after providing public notice as required by law, similarly held a public hearing to consider Developer's application for this Agreement. G. The Planning Commission and the City Council have found that the Amended Agreement is consistent with the General Plan and all other applicable plans, rules, regulations and official policies of the City. H. In accordance with the requirements of the California Environmental Quality Act "(Public Resources Code Sections 21000, et seq., ("CEQA")) , appropriate studies, analysis, reports or documents were prepared and considered by the Planning Commission and the City Council. The City Council, after making appropriate findings, certified, by Resolution 98-135, adopted on November 17, 1998, a Supplemental Environmental Impact Report for the Project in compliance with CEQA. 1. On December 1, 1998, the City Council adopted Ordinance No. 328 approving this Amended Agreement with Developer. The Ordinance takes effect on January 14, 1999. The parties hereto agree to amend the Original Agreement according to the following specified revisions: 1. Definitions: In this Amended Agreement, the defined terms will have the same meaning as in the Original Agreement except as may be otherwise noted in this Amended Agreement: 1.1. Authorizing, Ordinance: "'Authorizing Ordinance" means Ordinance No. 328 approving this Amended Agreement. 1.2 Effective Date: (Defined in Section 1.8 of the Original Agreement) . "Effective Date" means the date that the Authorizing Ordinance as defined in this Amended Agreement becomes effective. 1.3 Project: (Defined in Section 1.17 of the Original Agreement) "'Project" means a regional commercial project designed around two main uses: an auto mall and/or a mixed regional commercial development. The Project has three Planning Areas. Planning Area I will contain three (3) new car dealerships or a mixed regional commercial development. Planning Area II will contain either two (2) or six (6) new car dealerships and/or auto related commercial pads and/or a mixed regional commercial development. Planning Area III will be a mixed commercial center. The three Planning Areas are delineated in Exhibits "2" through "2-2" to Amendment No. I to the Specific Plan. The development of the Project shall include all mitigation measures (on -site and off -site) imposed as part of the CEQA review process, and as conditions to the issuance of Development Approvals, including, but not limited to, the Specific Plan, and Conditional Use Permit consistent with this Amended Agreement. 1.4 Specific Plan: The Specific Plan approved by the City Council on July 15, 1997 as amended by Amendment No. 1 approved by the City Council on November 17, 1998. A reference to "Amendment to Specific Plan refers only to Amendment No. 1 to Specific Plan. CAMy Documents\WPDOCSiDARestAgmt.wpd 2 98812 2. Change to Section 3.1.: The second and third sentences of Section 3.1 are changed to read as follows: "Developer will endeavor to develop the Property in accordance with the three Planning Areas specified on the Project Site (Exhibits "A-1, "A-2" and "A-3" ). Planning Area I has approximately 13.2 acres; Planning Area I has approximately 28.14 acres; and Planning Area III has approximately 36.73 acres. Developer will endeavor to develop the three Planning Areas in accordance with the four scenarios set out in the Amended Specific Plan." 3. Change to Section 3.2: The first sentence of Section 3.2 is amended to read in full as follows: "The term of this Amended Agreement shall be approximately twelve (12) years, commencing upon the Effective Date of Ordinance No. 328 approving this Agreement and authorizing its execution and shall expire on January 14, 2011, unless otherwise terminated, modified or extended by written mutual agreement pursuant to the terms of this Agreement." 4. Section 3.3: Add the words, "...or Section 3.3.3" after "Section 3.3.2" in: (a) The first sentence of the first paragraph. (b) The first and second sentences of the second paragraph. 5. Section 3.3.3: The following assignments of the rights of the assignor under this Amended Agreement shall be made without the consent of City, but upon giving notice to the City concurrently with any transfer of any part of the Property; (a) From Developer to any member of Desert City Dealers, or to any other auto dealer purchasing Property from Developer. (b) From Developer to any person or entity using a portion of Planning Area II for auto related uses. (c) From Desert City Dealers to any member of Desert City Dealers. (d) From Desert City Dealers to Developer pursuant to Developer's exercise of its right to purchase any portion of the Property pursuant to the Option and Purchase Agreement as amended between Developer and Desert City Dealers. (e) From a member of Desert City Dealers who acquires title to a portion of the Property to Developer pursuant to Developer's exercise of its right to purchase any portion of the Property pursuant to the Option and Purchase Agreement as amended between Developer and Desert City Dealers. (f) In connection with the transfer of any portion of the Property located in Planning Area 111. CAMy Documents\WPDOCS\DARestAgmt.wpd 3 6. Section 4.3.1.: The first sentence is amended to read in full as follows: "City and Developer agree that the EIR which is designated EA No. 97-337 as supplement by the Supplemental EIR designated EA 97-337 and the obligations of Developer under this Agreement to incorporate mitigation measures as part of the Project constitute full and complete mitigation of any identified adverse environmental impacts generated by the Project." 7. Section 5.2: Is amended to read as follows: "5_2 Planning Areas: Planning Area 1: Planning Area I will contain three (3) new car dealerships. Planning Area II: Planning Area II will contain up to six (6) new car dealerships and/or auto related commercial pads and/or a mixed regional commercial development containing structures of up to 306,000 square feet. Planning Area III: Planning Area III will be a mixed commercial center containing structures of up to 400,000 square feet." 8. Section 5.3: The second sentence of Section 5.3 is amended to read in full as follows. "The buildings in Planning Areas I, 11 and III shall be constructed on the Property as specified in the Development Scenarios described in the Amendment to Specific Plan." 9. Section 5.3. 1.: The maximum F.A.R. for all Planning Areas under all Development Scenarios is .25. 10. Section 5.4: Is amended to read in full as follows: "5.4 Phasing of Construction: Scenarios as follows: 5.4.1. Phasing of Construction: The Project shall be developed in four (a) . Development Scenario # 1: (1) Three (3)new car dealership pads; (ii) Six (6) new car dealerships and/or auto -related commercial pads; and (iii) 400,000 square feet of mixed regional commercial. CAMy Documents\WPDOCs\DARestAgmt.wpd 4 (b) Development Scenario #2: (i) Three (3) new car dealership pads; (ii) Two (2) new car dealerships and/or auto -related commercial pads; and (iii) 610,000 square feet of mixed regional commercial. (c) Development Scenario #3: (i) Three new car dealership pads; and (ii) 695,000 square feet of mixed regional commercial (d) Development Scenario #4: (i) 850,000 square feet of mixed regional commercial development. Developer shall construct or contribute to the construction of the Public Improvements connected with Planning Area I, Planning Area II and Planning Area III as set forth in the Developer Lease Agreement (Exhibit "C"), Specific Plan (Exhibit "D") and the terms of this Amended Agreement." "5.4.2. Develo"er: Developer agrees to exercise due diligence and submit to City applications for all such necessary permits and approvals in accordance with applicable City procedures and Existing Rules." "5.4.3. City: City hereby agrees that it will accept from Developer for processing and review all applications for Development Approvals for the use of the Property in accordance with this Amended Agreement, providing that said applications are submitted in accordance with this Agreement and the Existing Rules." "5.4.4 Completion of Project: Developer agrees to diligently prosecute to completion the construction of the Project and to complete construction of Planning Area I within the term of this Amended Agreement subject to any such extensions as may hereafter become applicable in accordance with the provisions of this Amended Agreement. Improvements, scheduling, dates, or times of performance by either Party hereto may be subject to revision from time to time due to factors which cannot be predicted and which are within the control of the Parties, such as economic market conditions and demand interest rates and competition. Any such revision must be mutually agreed to by the Parties in writing referencing this Section 5.4.4 and in recordable form. Such revisions are deemed to be within the framework of this Amended Agreement as presently drafted and executed and do not constitute amendments requiring new notice and hearing under local law." 11. Section 6.1. The second paragraph of Section 6.1 is amended to read in full as follows: "The Developer shall provide the Public Improvements and pay all fees and other amounts the payment of which is provided for pursuant to this Amended Agreement in conformity with the timing of the development of the Public improvements set forth in this Amended Agreement, and the Developer Lease Agreement; such performance shall be required so long as this Amended Agreement remains in effect without regard to whether the Developer is CAMy Documents\WPDOC$\DARestAgmt.wpd 5 98812 timely implementing the development of Project pursuant to this Amended Agreement. Where this Amended Agreement sets forth a specific time for the provision of Public Improvements or the payment of fees or other amounts, the Developer shall strictly comply with such requirements. Where a Public Improvement fee, or other amount is required pursuant to Existing Rules and the terms of this Amended Agreement to be paid at the time of issuance of building permits and a specific date is not set forth in this Amended Agreement for the provision of such Public Improvements or payment of such fees or amounts, the Public Improvement, fee, or other amount shall be required to be provided at the time building permits are issued for the structure." 12. Amendment of Exhibits. The Site Plans, the Developer Lease Agreement and Specific Plan, which were Exhibits "A", "C", and "D" to the Original Agreement shall be completely restated and amended in the forms attached hereto and/or supplemented as indicated in this Amended Agreement or the attached Exhibits. 13. Section 13.3: Section 13.3 is amended to read in full as follows: "The Developer shall provide funds for payment of all expenses associated with the Project entitlement review including the environmental review by legal counsel and preparation by consultant as well as the drafting of all documents for the project prepared by the City's legal counsel. A Sixty -Eight Thousand Five Hundred Dollar ($68,500) advance deposit towards this payment has to be provided to the City. In addition to the foregoing all application fees shall be paid by Developer at the time of submittal for the revised specific plan and any other required planning submittals." 14. No Other Chance: All sections of the original Agreement which have not been specifically amended by this Amended Agreement shall remain intact and enforceable in their entirety. IN WITNESS WHEREOF, this Amended Agreement has been executed by the Parties and Partial Owner on the day and year first above written, as authorized by Ordinance No. 328 of the City Council of the City of La Quinta. CITY OF LA QUINTA, a charter city By: TERRY rDERSON, Mayor Pro Tern A' �AUNDRA L.-JUHOLA, City Clerk City of La Quinta, California CAMy Documents\WPDOCS\DARestAgmt.wpd 6 98812 APPROVED AS TO FORM: DAWN C. HONEYW�Cityy,rney City of La Quinta, California STAMKO DEVELOPMENT COMPANY, A Californiakimited Partnership By: Its: The Juvonen Living Trust ("All -Purpose" Acknowledgment) STEWART TITLE STATE OF CA=IA �7 COUNTY OF c Q 4/y d ,Srmatrry of Conr anO/ 7 q 7/ before e, M/ `f' "'L� I(here insert name and title of the o cer), personally appea W personally known to me (or proved to me on the basis of satisfactoryzv(� 14¢/✓3 4- 'ga ✓ONE cc LU evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed _ A* the same in his/her/their authorized ca aci p ty(ies), and that by s his/her/their signature(s) on the instrument the person(s), or the entity L'NDA t�.MUI NDY 1 CaOm, �� 703, i upon behalf of which the person(s) acted, executed the instrument. ` 1 id0 . 3 CTc Ynia , s CC—' WITNESS my nd cial seal. Signature (Seaq C:\My Documents\WPDOCS\DARestAgmt.wpd 7 98812 State of California County of Riverside On March 10, 1999 before me, Regenia Hensley, Notary Public, personally appeared, TERRY HENDERSON, Mayor Pro Tem, SAUNDRA L. JUHOLA, City Clerk and DAWN C. HONEYWELL, City Attorney, personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the person or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. R NIA HENSLEY Notary Public (Seal) OFFICIAL SEAL REGENIA HENSLEY P COMM. #1107891 Notary Public - California RIVERSIDE COUNTY My Commission Expires AUGUST 7 2000 OPTIONAL INFORMATION Document Description: First Amendment to Development Agreement by and between the CITY OF LA QUINTA and STAMKO DEVELOPMENT COMPANY, a California limited partnership and THE TRUSTEE OF THE JUVONEN LIVING TRUST, a California Trust Date Original Agreement entered into: July 15, 1997 Aulthorized by City Council Ordinance No. 306 dated July 21, 1997 Effective August 20, 1997 Recorded September 3, 1997 t 98812 STATE OF CALIFORNIA ) ss. COUNTY OF ) On — a�o --GJ9 , 199_, before me, a Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledge to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. [SEAL] Signature \—��� MILLIE ARNOLD Comm, # 1060303 • NOTARY PUBLIC CALFORN A >� Ri6omde Cony My Comm Expires May 28,1999 f 98 812 EXHIBIT C RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO ) AND MAIL TAX STATEMENTS TO: ) City of La Quinta ) 78-495 Calle Tampico ) La Quinta, California 92253 ) Attn: City Clerk (Space above for Recorder's Use) RESTATED AND AMENDED DEVELOPER LEASE AGREEMENT THIS DEVELOPER LEASE AGREEMENT ("Agreement") is entered into as of the 1 st day of December, 1998, by and among the City of La Quinta, a charter city . ("City") and Stamko Development Co., a California limited partnership ("Developer") with reference to the following: RECITALS A. WHEREAS, Developer is the fee owner of certain property located in the City ("Project Site"), which Project Site is legally described on Exhibit "A" attached hereto and as further described in the Specific Plan for the three development scenarios which include three car dealerships in Planning Area 1; and B. WHEREAS, in connection with the development of the Project, Developer intends to dedicate and convey certain real property adjacent to Adams Street to the City and certain property adjacent to Highway 111 to the State for public facilities ("Dedicated Property"), which Dedicated Property is described on Exhibits "B-1" and `B-2" attached hereto and depicted on Exhibits "C-1" and "C-2" attached hereto; and C. WHEREAS, the City and State currently own certain rights -of -way adjacent to the Project Site along Adams Street and Highway 111 ("Existing Rights -of -Way"), which Existing Rights -of -Way are described on Exhibit "D-1" and "D-2" attached hereto and depicted on Exhibits 66E-1 " and "E-2"; and D. WHEREAS, the City desires, subsequent to acquiring the Dedicated Property from Developer, to lease the Dedicated Property and the Existing Right -of -Way, to Developer, for purposes of having Developer construct thereon certain public facilities ("Public Facilities"), which Public Facilities are described on Exhibit "F" attached hereto; and E. WHEREAS, Developer has agreed to construct the Public Facilities on the Dedicated and Existing Right -of -Way Property, and then to sublease the Public Facilities to the City pursuant to this Agreement for the benefit of the public and in furtherance of public purposes of the City; and CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 98812 F. WHEREAS, Developer and City first approved a form of this Agreement on July 21, 1997; and G. WHEREAS, due to economic conditions beyond the control of Developer, the original form of this Agreement has become impractical and infeasible to perform; and H. WHEREAS, the City believes that a revision to the original terms of the form of this Agreement is in the best interest of the City and its general health, safety and welfare; NOW, THEREFORE, for and in consideration of the mutual covenants and agreement herein contained, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Agreement, have the meanings herein specified. (a) "Agreement' shall mean this Developer Lease Agreement. (b) "Base Rental Payments" shall mean the rental payments payable by the City to Developer pursuant to the Sublease, as described herein. (c) "City" shall mean the City of La Quinta, California, a charter city duly organized and existing under the laws of the State of California, and its successors and assigns. (d) "Dedicated Property" shall mean that certain real property as described on Exhibits `B-1" and `B-2" and depicted on Exhibits "C-1" and "C-2", which real property shall be conveyed by Developer to the City and to the State pursuant to the terms of this Agreement. partnership. (e) "Developer" shall mean Stamko Development Co., a California limited M "Existing Right -of -Way" shall mean the existing right-of-way currently owned by the City, as described in recital paragraph C hereof. (g) "Interest Component' shall have the meaning set forth in Section 7 hereof. (h) "Lease" shall mean the portion of this Agreement which constitutes the lease of the Dedicated Property and the Existing Right -of -Way by City, as lessor, to Developer, as lessee (see Section 3 below). (i) "Lease Commencement Date" shall mean that date upon which the City accepts Developer's dedication of the Dedicated Property. 0) "Leasehold Value" shall have the meaning set forth in Section 7 hereof. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 2 98812 (k) "Principal Components" shall have the meaning set forth in Section 7 hereof. (1) "Project" shall mean the commercial facility, including three car dealerships, and related improvements described in recital paragraph A above. (m) "Project Site" shall mean the real property described on Exhibit "A". (n) "Public Facilities" shall mean the public facilities to be constructed on the Dedicated Property and the Existing Right -of -Way by Developer described on Exhibit "F" attached hereto. (o) "Rental Period" shall have the meaning set forth in Section 7(b)(3) hereof. (p) "Sales and Use Tax" shall mean the 1 % sales and use tax imposed and received by the City under authority granted to the City pursuant to Section 7201 of the California Revenue and Taxation Code. (q) "Sales and Use Tax Revenues" shall mean any revenues collected by the City pursuant to Sales and Use Tax as described above as a result of commercial activity generated by this Project on this Project Site. (r) "Specific Plan" shall mean the Specific Plan approved by the City Council on December 1, 1998. (s) "Sublease" shall mean the portion of this Agreement which constitutes the sublease of the Dedicated Property and the Existing Right -of -Way by Developer, as sublessor, to City, as sublessee (see Section 5 below). (t) "Sublease Commencement Date" shall mean that date upon which the City accepts the Public Facilities as being complete. (u) "Term of this Agreement" shall mean that period of time commencing as of the date of the transfer of the property in the Planning Area I to the three car dealership owners for purposes of developing a minimum of three new car dealerships and terminating as of the date of termination of the Sublease. Section 2. Conveyance of Dedicated Property. Developer shall convey or cause to be conveyed to the City or its designee, and the City or its designee shall accept conveyance of, the Dedicated Property, for public purposes, prior to Developer's seeking building permits for the construction of any portion of the Project. Developer covenants that prior to conveying the Dedicated Property to the City or its designee, and provided that the City performs its obligations as set forth in Section 7 of this Agreement, Developer shall own fee title to all of the Dedicated Property, and that such Property shall be conveyed to the City or its designee free and clear of all liens and encumbrances, except those approved in writing by the City. Such conveyance of the Dedicated Property from Developer to the City or its designee shall C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd be deemed to be and is a condition precedent to the rights and obligations of the parties under the terms of this Agreement, provided however, that such conveyance shall not be a condition precedent to those obligations of the City under Section 7(b)(2) of this Agreement. Upon the Developer's conveyance of the Dedicated Property to the City or its designee, this Agreement shall be recorded in the Official Records of the County of Riverside, California. Section 3. Lease Terms. Effective upon the conveyance of the Dedicated Property to the City, or its designee, as described above, the City (or its designee) hereby leases the Dedicated Property and Existing Right - of -Way to Developer and Developer leases the Dedicated Property and Existing Right -of -Way from the City, or its designee, on the terms and conditions set forth in this Agreement. Rent for the entire term of the Lease shall be an advance payment by Developer to the City of the sum of $1.00. The term of the Lease shall commence on the date that the City or its designee accepts conveyance of the Dedicated Property and continue until the termination of the Sublease, as described in Section 5 herein, and, upon termination of the Sublease, the Lease shall likewise terminate. Section 4. Construction of Public Facilities. (a) Developer's Obligations. Developer shall finance and construct all of the Public Facilities described on Exhibit ' F" attached hereto. In general, the Public Facilities shall consist of: Highway III from Adams Street to La Quinta Drive; Adams Street/Highway III intersection; Adams Street from Highway I I I to 4r Street, including center median; La Quinta Drive/Highway I I I intersection. The Public Facilities shall be constructed concurrently with the Planning Area I of the Project which includes a minimum of three auto dealerships. In connection with the Public Facilities, Developer shall do the following: (1) prepare plans and specifications for the Public Facilities in accordance with City and/or State standards, and submit such plans and specifications to the appropriate City and/or State departments for review and approval; (2) provide the City with twenty (20) days written notice prior to the commencement of construction; (3) secure all necessary licenses, permits, rights of way, and rights of entry as may be reasonably necessary for construction; (4) prior to commencement of construction, Developer shall provide the City with faithful performance and material payment bonds or other security as approved by City, each in the amount of 110% of the estimated cost of construction, as determined by the City; the CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 4 98812 survey, amount and form of such bonds shall be subject to the approval of City Attorney; and such bonds shall remain in full force and effect until the Public Facilities are accepted by the City, at which time such bonds may be reduced to 10% of the cost of construction for a period of one (1) year to guarantee against any defective work, labor or materials; (5) provide workers' compensation insurance for all Developer employees working on construction, in amounts as required by California law; (6) provide and maintain comprehensive liability insurance which shall name both Developer and the City as insureds, and which shall provide coverage from personal injury claims, including accidental and/or wrongful death, and claims for property damage which may arise directly or indirectly from Developer's construction work, or the performance of Developer's obligations hereunder, whether such construction and performance is done by Developer, or any constructor, subcontractor or other party employed directly or indirectly by any of them; such insurance shall provide for limits of not less than $2,000,000 per occurrence and shall further provide that the issuing company may not cancel, modify or terminate coverage unless it shall have given the City thirty (30) days' prior written notice of such cancellation, termination or modification; Developer shall assure that the insurance required by this section shall remain in full force and effect throughout the construction of the Public Facilities, and Developer's failure to do so shall be deemed a material breach of this Agreement; and (7) upon completion of construction, convey to the City, in form and substance acceptable to City Attorney, all rights of way and easements deemed necessary by the City Engineer, in its reasonable discretion, for the operation and maintenance of the Public Facilities, including ingress and egress easements as may be reasonably need for storm drain operation and maintenance. (b) City's Obligations. In connection with Developer's construction of the Public Facilities, the City shall do the following: (1) review and either approve or provide comments for necessary revisions for the plans and specifications for the Public Facilities prepared by Developer in a timely manner prior to the commencement of construction of said Public Facilities; (2) inspect the construction of the Public Facilities as required; and (3) upon completion and acceptance by the City of the Public Facilities and conveyance of all required rights of way and easements, accept full responsibility for operation and maintenance of the Public Facilities, except as to parkway maintenance responsibilities adjacent to Highway I I I and Adams Street as outlined within the Specific Plan and Covenants, Conditions and Restrictions which shall remain the responsibility of the Developer or its successors and assigns (i.e., Property Owner Association). Section 5. Sublease. Effective upon the completion of the Public Facilities, Developer hereby subleases the Public Facilities constructed on Adams Street (Exhibits "B-1" and "C-1") to the City and the City hereby CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 5 98812 subleases the Public Facilities construction on Adams Street (Exhibits "D-1" and "E-1") from Developer on the terms and conditions set forth in this Agreement. The Public Facilities shall be deemed to be "complete" upon final inspection and acceptance by the City. Concurrently, the Public Facilities constructed on Highway II I (Exhibit `B-2", "C-2" and "D-2" and "E-2") shall be transferred to the State of California. Section 6. Term of the Sublease. The Sublease shall begin as of the Sublease Commencement Date as defined in Section 1(t) hereof. The Sublease shall end on the earlier of (1) December 31, 2011; (2) the time at which the prepayment option is exercised under Section 7(a)(4); or (3) in the event of termination pursuant to Section 20. Section 7. Citv's Obligation under Sublease. Under the terms of the Sublease, the City shall perform the following obligations: (a) Prepayment of Certain Sublease Payments. (1) Initial Prepayment. Agency shall receive notification of intent to close escrow two weeks in advance. Within 24 hours of confirmation of close of escrow of the transfer of property to the three auto dealers in Planning Area 1 of the Project, the City shall provide a prepayment of a portion of the Sublease rent, to Wells Fargo Bank as a third parry administrator ("Administrator"), in an amount equal to One Million Dollars ($1,000,000)(the "Prepayment Amount"). Within twenty-four (24) hours of City providing the Prepayment Amount to Administrator, Developer shall provide an amount equal to Eight Hundred Thousand Dollars ($800,000) to the Administrator. The combined amount of $1.8 million shall be used to reimburse Developer for the cost of constructing the Public Facilities specified on Exhibit "F". Reimbursement draws shall be provided in accordance with Section 7(a)(3). Reimbursed amounts shall be funded in accordance with Section 7(a)(3) below. Any amounts not necessary for the construction of the Public Facilities shall be refunded back to City and Developer on a pro rata basis. In the event that the $1.8 million is not sufficient to complete the Public Facilities, the Developer shall be solely responsible for any additional amounts. (i) As used in this Agreement, the term "Professional Services" means civil engineering and construction staking (and all of their components) but does not include landscaping. Developer shall bid the project (except Professional Services) to three to five qualified firms to render services in the geographic area of the City. Developer hopes to solicit bids from at least five firms. However, if five (5) qualified firms who render services in the geographic area of the City cannot be found, then a less number, but not less than three (3) shall be sent bids. Professional Services shall be bid to a minimum of three (3) qualified firms who render services in the geographic area of the City. (ii) The bid forms and specifications shall be prepared by Developer and reviewed by the City for its approval. City shall review the draft bid forms and CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 6 98 812 specifications within twenty (20) business days following delivery of the draft forms and specifications to the City by Developer and shall review the final bid forms and specifications within five (5) business days following delivery of the final forms and specifications to the City by Developer. Developer and City shall work closely to develop final bid forms and specifications. The bid forms and specifications shall separate public and private improvements. The City and Developer shall jointly review all bids received. Developer shall select the bid winners, subject to the reasonable approval of the City. In the event of any disagreement between Developer and the City the parties shall meet and confer regarding resolution of the issue. Both parties shall negotiate reasonably and in good faith. (iii) The development and construction of the project may be bid as a unit but it is contemplated that the individual work components of the project may bid separately if elected by Developer. It is the intent of the City and the Develop that the Developer will obtain the best quality for the best price in all aspects of the project. (2) When the bids are received, Developer may or may not negotiate with individual bid respondents to improve the price and/or quality of the bid response. In the event that bid that is selected by the Developer contains aggregate costs for either the Professional Services (including, in this instance, landscaping) or the "hard costs" of the project which exceed 50% of the aggregate amount of each category of costs estimated on attached Exhibit F, then Developer and the City shall meet and confer regarding the overages. The 50% measure referred to the preceding sentence shall include amounts which Developer has expended and for which Developer will receive reimbursement. In the event that Developer and the City, negotiating reasonably and in good faith, are unable to arrive at a compromise regarding the excess, then either parry shall have the right to terminate this Lease in written notice to the other. During the course of construction, the City shall have the right to approve of any change orders for any contract which exceed $25,000 as an increase in cost. City will review any change order request within five (5) business days following the submission of the request to the City. If Developer and City disagree on the change order, then Developer and the City shall meet and confer regarding the change order and shall negotiate reasonably and in good faith. (3) Reimbursement Procedure. Reimbursement draws shall be made upon proof of actual expenses as provided in this Subsection (3) and shall be verified by the City and a consultant ("Consultant") retained by the City. The expenses of the Consultant, which shall be no more than five percent (5%) of the hard costs of construction of the Public Facilities, shall be a part of the costs of the Public Facilities as specified on attached Exhibit "F" and shall be disbursed to the Consultant upon the joint invoice approval of City and Developer. Developer shall have ten (10) business days to review the invoice of Consultant following submission of the request to Developer. (i) An initial disbursement shall be made to the Developer for previously incurred pre -development costs and fees upon verification of such costs and fees by the City and Consultant in accordance with the provisions of this Subsection (3). (ii) Prior to each and every disbursement under this Agreement, the conditions specified in Subsection (iii) though (v) shall be satisfied. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 7 98812 (iii) At least ten (10) business days prior to a requested disbursement, Developer shall deliver to Consultant and City a request ("Request") for the amount of the Disbursement. The Developer shall certify in the Request that it is accurate and complete. The Request shall specifically identify the nature of each expense, including, but not limited to, by reference to the line items set forth in attached Exhibit F, and shall specify the status of completion of the construction. (iv) City shall review the Request and the accompanying documentation and determine that the work is within the scope of Public Facilities. This review shall occur within ten (10) business days of receipt of Developer's request. For all items approved, payment shall be authorized within fifteen (15) days of the receipt of the request. The City shall advise the Developer of any issues with respect to the amounts requested by the Developer within twenty (20) days of the receipt of the request from Developer. (v) The City shall have received appropriate waivers of mechanics' and materialmen's lien rights and stop notice rights executed by all contractors and other persons rendering service or delivering materials covered by the Request. (vi) Developer shall deliver to City within five (5) business days following the first day of each month: a monthly report which shall set forth the following for the prior calendar month; any force mageure delay; an update of the construction schedule; and any other material matters relating to the completion of the Public Facilities. (vii) Checks shall be issued by Wells Fargo Bank to Developer upon the written request jointly signed by Developer and City. (viii) In the event there is a dispute between the City and Developer regarding any Request, then within five (5) business days following the twenty (20) days specified in Subsection (iv) above, the City, Consultant, and Developer shall meet and confer regarding the disputed amount. If the disputed amount is in excess of $50,000 or when the total of all unresolved disputed amounts equals $50,000, or more, or when construction of the Public Facilities has been completed without regard to the unresolved amount in dispute, then either Developer or the City may request alternative dispute resolution ("ADR") before a retired judge appointed by JAMS, or similar organization. The ADR hearing: 1. Shall be before a judge with experience in construction cost cases; 2. Shall be heard within forty-five (45) days following the date of the request for the ADR; 3. The City and Developer shall divide initially the cost of the ADR, but the judge shall have the right to apportion the costs between the parties in a manner deemed reasonable by the judge and consistent with the decision of the judge in ADR. (4) Subsequent Prepayment. The City has the right but not the obligation to prepay either the Base Rental Payments or the Supplemental Rental Payments. In the event of a determination to prepay, the schedule attached hereto as "Exhibit G" and incorporated by this reference shall be used to determine prepayment amounts. In the event that the City elects to prepay the entire payment, the Sublease would be terminated. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 8 98 812 (b) Rental Payments. The City agrees to pay to Developer, on a quarterly basis, rental payments ("Rental Payments") for the applicable rental period or portion thereof throughout the term of the Sublease. All Rental Payments shall be allocated as set forth in this Section 7. Rental Payments shall potentially include Base Rental Payments and Supplemental Rental Payments. (1) Amount of Base Rental Payments. Base Rental Payments shall be calculated as follows: From the Sublease Commencement Date and continuing through the term of the Sublease, Base Rental Payments shall be thirty-three percent (33%) of the Sales and Use Tax Revenues generated by businesses or activities located on the Project Site up to a maximum amount of One Hundred Twenty -Two Thousand Two Hundred and Fifty Dollars ($122,250) in any twelve (12) month period of the Sublease. In any twelve (12) month period where the Base Rental Payment is less than $122,250, the amount which is the difference between the amount paid and the $122,250 shall be forgiven and shall be deducted from the First Principal Component, as if paid in full. (2) Amount of Supplemental Rental Payments. Supplemental Rental Payments shall be contingent upon a minimum annual Sales and Use Tax Revenue payment to the City of Five Hundred Thirty Thousand Dollars ($530,000), adjusted annually by the CPI index for Riverside and San Bernardino counties for that year. If the threshold is met, a payment of Seventy - Six Thousand Four Hundred Eleven Dollars ($76,411) shall be made for that year. There shall be ten (10) annual payments of Supplemental Rental Payments. Each Payment shall be due no earlier than: 1) forty-five (45) days after the receipt of the revenue reconciliation report; and 2) the first anniversary date of the first twelve (12) months following the first full calendar quarter in which Sales and Use Tax Revenues are generated by businesses or activities located on the Project Site. If in any year (the same four calendar quarters used to calculate the first annual payment) the minimum annual sales and use tax fails to meet $530,000 this payment including interest shall be forgiven. (3) Time for Payment. The City's obligation to pay Base Rental Payments shall begin on the Sublease Commencement Date. The City shall make quarterly Base Rental Payments to Developer for each rental period ("Rental Period") or portion thereof, which Rental Period shall consist of each calendar quarter. Each Base Rental Payment for a Rental Period shall be due to Developer Forty -Five (45) days after the City receives its Sales and Use Tax Revenue Reconciliation Report for the Rental Period. (4) Form of Rental Payments. Each Base Rental Payment and/or Supplemental Rental Payment shall be paid in lawful money of the United States of America, by warrant or check drawn against funds of the City, and mailed or delivered to the address provided for Developer in Section 17 of this Agreement. (5) Records Required. If requested by the City, Developer shall provide, or cause each business or activity located on the Project Site to provide, to the City, all Sales and Use Tax information. Generally, the City shall rely on the Sales and Use Tax information supplied by the State and the City's accountant consultants. The City shall maintain sufficient records and accounts to separately identify all Sales and Use Tax Revenues paid to it from businesses and activities located on the Project Site, and shall provide to Developer, at the time of making each Rental Payment, a written accounting CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 9 98812 with respect to each Payment. (6) Certain Definitions. As used in this Agreement, the following will have the indicated meanings: (i) "First Principal Component" means the amount of $800,000. (ii) "Second Principal Component" means the amount of 500,000. (iii) "Principal Components" means the total of both First Principal Component and Second Principal Component. (iv) "Interest Component": Simple interest on the Principal Components which shall accrue at the rate equal to eight and one-half percent (8.5%) per annum payable as provided in this "Agreement until the Principal Components are paid or forgiven in full. (v) "Leasehold Value" means the total of the Principal Components and the Interest Component. Section 8. Limit on Total Payments. Notwithstanding anything to the contrary herein, the Rental Payments payable by the City to Developer during the term of the Sublease shall not exceed the full amount of the Leasehold Value and are specifically limited to Sales and Use Tax Revenues as described in Section 8 herein. In the event that the Rental Payments over the term of this Agreement do not equal the Leasehold Value due to the fact that certain amounts have been forgiven as set out in "B(1)" and `B(2)", the Developer agrees that no further payments are due and all obligations of the City are satisfied. The Interest Component shall commence to accrue on the date of the Sublease Commencement Date and shall accrue until the Principal Components are paid or forgiven in full or, if the Sublease is terminated validly before such payment as provided in the Agreement then the Interest Component shall cease accruing upon the payment by City to Developer of all amounts which become due to Developer as a result of the termination of this Agreement. Section 9. Source of City's Payment Obligations. The obligation of the City to Developer to pay the Base Rental Payments and/or the Supplemental Rental Payments shall be a special and not a general obligation of the City, and shall be payable solely from the Sales and Use Tax Revenues received by the City from businesses and activities conducted on the Project Site. Prior to the time that the full amount of the Leasehold Value under this Agreement is fully paid to Developer as provided herein, the City shall not pledge or encumber the Sales and Use Tax Revenues derived or to be derived from businesses or activities operating on the Project Site so as to impair Developer's rights hereunder. During the term of this Agreement, any subsequent pledge of the Sale and Use Tax Revenues generated from the businesses and activities conducted on the Project Site shall be subject and subordinate to Developer's rights hereunder. Notwithstanding any provision herein to the contrary, in the event that the State of California's allocation of Sales and Use Tax Revenues to the City is changed, revised or otherwise amended after the date of this Agreement, the City and Developer each agree to meet in good faith CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 10 988JL2 to revise this Agreement to reflect as closely as possible the original intent of the parties in entering into this Agreement with respect to the allocation of Sales and Use Tax Revenues. Section 10. Right of First Refusal. As additional consideration, the City shall have a right of first refusal to purchase lots 4 and 5 in Planning Area II (as such lots are shown in Exhibit 2 to the Specific Plan) for $5.57 per square foot plus 8.5% annual interest until July 1, 2000 and lots 6, 7, 8, and 9 in Planning Area II (as such lots are shown in Exhibit 2 to the Specific Plan) for $4.75 per square foot plus 8.5% interest until December 31, 1999. Section 11. Maintenance Repair. Additions and Improvements to Public Facilities. (a) Operating and Maintenance Expense. Throughout the term of the Sublease, the City shall, at its sole expense, operate, maintain, repair and/or replace as necessary, the Public Facilities (subject to the Sublease related to Adams Street and not including any Public Facilities dedicated to another public entity) and insure that said Public Facilities remain in good order, condition and repair at a level of service consistent with that maintained for similar types of public improvements located elsewhere throughout the City. The parties hereto acknowledge and agree that Developer shall have no obligation to incur any expense of any kind or character in connection with the management, operation, repair, replacement or maintenance of the Public Facilities during the term of the Sublease. Throughout the term of the Sublease, the City shall keep the Public Facilities free and clear of all liens, charges, and encumbrances. Notwithstanding any damage to the Public Facilities from whatever source, the City shall, throughout the term of the Sublease, repair the Public Facilities consistent with this Section without any interruption or abatement of its rental obligations as set forth hereunder. (b) Additions and Improvements to the Public Facilities. The City shall have the right throughout the term of this Agreement, to make any additions or improvements to the Public Facilities, to attach fixtures, structures or signs, and to affix any personal property thereto, provided the use of the Public Facilities for the purposes contemplated in this Agreement is not impaired in any way. Title to all personal property placed in or on any of the Public Facilities shall remain with the City, provided however, that any modifications or improvements which constitute fixtures will automatically become subject to this Agreement. Subject to the foregoing, the title to any personal property, improvements or fixtures which may be placed on the Property by any sublessee or licensee of the City shall be controlled by the terms of the sublease or license contract entered into by the City with such sublessee or licensee. Upon Developer's completion of construction of the Public Facilities and their acceptance by the City, Developer shall have no further obligation of any kind to make any additions, improvements, repairs or other changes to the Public Facilities. In the event that Developer elects to make additions, improvements or other changes to the Public Facilities it shall do so only with the prior written consent of the City. Any such additions, improvements or other changes shall comply with the encroachment permit rules of the City and all other applicable City building requirements. Notwithstanding the foregoing, should Developer make application for additional on site improvements beyond those contemplated by the Project, Developer may, at that time, be conditioned to make further improvements to the Public Facilities as part of the approval for such additional on site developments. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd I 1 98812 Section 12. Indemnification. (a) Indemnification by the City. The City agrees for the term of the Sublease, it shall indemnify, defend and hold harmless Developer, its officers, agents, employees, directors and representatives from any loss, claim, expense, and/or penalties arising directly or indirectly from the Public Facilities and the City's operation, maintenance and repair thereof, save and except those losses, claims, expenses and/or penalties arising from the gross negligence or willful misconduct of Developer. Such indemnification shall include, without limitation, indemnification for damage or claims for personal injury, including death, and claims for property damage, and including any costs incurred by Developer in defending against same, including without limitation, actual attorneys' fees. The City represents that it is self -insured as a member of a joint powers insurance authority (the "Authority") as to public liability insurance against claims for bodily injury or death or damage to property occurring upon, or about the improvements. In the event that the City elects to purchase liability insurance in the future rather than remaining self -insured with the Authority, such liability insurance shall, during the term of this Sublease, name Developer as an additional insured to the extent appropriate to comply with the provisions of this Section 12. (b) Indemnification by Developer. The Developer agrees that throughout the term of the Lease, it shall indemnify, defend and hold harmless the City, its officers, agents, employees and representatives from any loss, claim, expense and/or penalties arising directly or indirectly from Developer's construction of the Public Facilities, committed in connection with Developer's performance of or failure to perform its obligations under the terms of the Lease. Developer agrees that throughout the term of the Sublease, it shall indemnify and hold harmless the City, its officers, agents, employees and representatives from any loss, claim, expense and/or penalties arising directly or indirectly from Developer's gross negligence or willful misconduct committed in connection with Developer's performance of or failure to perform its obligations under the terms of the Sublease. Such indemnification, above identified, shall include, without limitation, indemnification for damages or claims for personal injury, including death, and claims for property damage, and including any costs incurred by City in defending against same, including without limitation, actual attorneys' fees. Section 13. Sale, Transfer or Assignment. The City shall have the right to permit the nonexclusive use of all or any portion of the Public Facilities by any third parry as may be necessary to serve the public purposes of the City, provided however, that no sale, transfer or assignment of all or any portion of the City's rights under the terms of this Agreement shall be construed as relieving the City from any or all of its obligations as set forth in this Agreement. Specifically, it is contemplated that all or portions of those Public Facilities to be constructed adjacent to Highway I I I shall be transferred to the State of California and removed from both the Lease and the Sublease and shall no longer be subject to any part of this Agreement relating to such Lease and Sublease after completion, however, such transfer shall not affect the obligation of the City to pay the full Leasehold Value to Developer according to the terms and limitations of this Agreement. Except as otherwise provided in this Agreement, the Developer shall not assign all or any portion of its rights and obligations hereunder to any successors -in -interest to the Project Site or portion thereof, except with the prior written consent of the City, which consent shall not be unreasonably withheld. Any C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 12 98812 such assignment shall not relieve Developer of its obligations under the terms of this Agreement, except upon express written consent of the City. Notwithstanding anything contained herein to the contrary, the Developer may, without the prior written consent of the City, assign any or all of its rights and obligations hereunder to any Affiliated Entity. For purposes of this Agreement, an "Affiliated Entity" shall mean any corporation, partnership, limited liability company or other form of business entity in which Developer has not less than a fifty percent (50%) ownership interest and not less than fifty percent (50%) management control. Any sale, transfer or assignment of the rights and obligations of either party under the terms of this Agreement shall require thirty (30) days prior written notice to the other party of such assignment, provided however, that no such prior written notice shall be required in connection with any of the following: (1) An assignment by Developer which consists of the conveyance for the purpose of securing loans to be used solely for the financing of the direct and indirect costs of the Public Facilities, including without limitation, financing costs, interest and commissions, planning, design, construction, development and leasing of the Public Facilities to be constructed by Developer, provided that the assignee of any such assignment shall receive only the right to collect Base Rental Payments due under the terms of this Agreement. (2) Transfers resulting from a sale of Developer's interest in the Public Facilities, or the Dedicated Property, or Existing Right of Way, or any portion thereof at foreclosure (or a conveyance thereof in lieu of a foreclosure) pursuant to a foreclosure thereof by a lender. (3) Subject to the terms contained in Section 11(a) of this Agreement, the conveyance or dedications of any portion of the Public Facilities, or the Dedicated Property, or the Existing Right of Way, to the City or other appropriate governmental agency, or the granting of easements or permits to facilitate the development of the Project. Section 14. Eminent Domain. If the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall terminate as of the date possession shall be so taken. If less than the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall continue in full force and effect and shall not be terminated by virtue of such taking, and the parties hereto waive the benefit of any law to the contrary, and in such event there shall be a partial abatement of the Base Rental Payments due under the terms of this Agreement. Any award made in eminent domain proceedings for the taking or damaging of the Public Facilities, in whole or in part, shall be paid to Developer to the extent of the then remaining balance of the Principal Component of the Leasehold Value, plus any portion of the Interest Component which is then accrued but not yet paid. The amount of the award which is in excess of the sum needed to pay Developer the then remaining balance of the Principal Component, plus any accrued but then unpaid portion of the Interest Component, shall be paid to the City. Section 15. Liens. The City shall pay or cause to be paid when due, all sums of money that may become due for, CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 13 98812 or purporting to be for, any labor, services, materials, supplies or equipment alleged to have been furnished or to be furnished to or for the Public Facilities throughout the term of the Sublease and which may be secured by any mechanics', materialmen's or other lien against the Public Facilities and/or Developer's interest therein, and the City shall further cause each such lien to be fully discharged and released, provided however, that if the City and/or Developer desires to contest any such lien, that party may do so upon posting security in a form and amount acceptable to the other party sufficient to pay said sums in the event that said liens are reduced to final judgment. Developer shall cooperate with the City in its efforts to discharge and release any liens pursuant to this Section 15 and shall further discharge and release or cause to be discharged and released any liens created directly or indirectly by Developer on or against the Public Facilities. Section 16. Quiet Enjoyment. The parties hereto mutually covenant and agree that the City, by keeping and performing the covenants contained herein, shall at all times during the term of this Agreement peaceably and quietly, have, hold and enjoy the Public Facilities without hindrance or molestation by Developer or anyone whose rights arise through Developer. Section 17. Notices. All notices, demands, offers, and correspondence and other communications required or permitted under this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid. Any notices sent shall be deemed received upon the earlier of: (a) If personally delivered, the date of delivery to the address of the person receiving such notice; or (b) If mailed, three (3) business days after the date of posting by the United States Post Office, in the form of and at the address set forth below: If to the City: City of La Quinta Attention: City Manager 78-495 Calle Tampico La Quinta, California 92253 If to Developer and/or Owner: Stamko Development Co. 10100 Santa Monica Boulevard, Suite 400 Los Angeles, California 90067 Attention: Christine F. Clarke CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 14 98812 A Party may change its address by giving notice and other writing to the other Party in accordance with the notice provisions of this Section. Thereafter, notices, demands, correspondence and other communications shall be delivered to the new address. Section 18. Taxes. During the term of this Agreement, the City shall be responsible for and pay when due any ad valorem taxes, or special assessments, if any, levied upon the Dedicated Property, and/or Existing Right of Way, and/or the Public Facilities or upon any parties' interest therein. The parties hereto agree to cooperate with each other in any effort to apply for exemption from any such tax or assessment. Throughout the term of this Agreement, Developer shall pay any gross receipt taxes, income taxes or any other form of tax whatsoever which may be levied upon Developer's rental income derived from this Agreement. Section 19. Waiver. The waiver by either parry of any breach by the other party of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. To be effective, any waiver must be in writing and signed by an authorized representative of the party bound by said waiver. Section 20. Default by the Citv. If the City fails to pay any Base Rental Payments and/or Supplemental Rental Payments due hereunder within ten (10) days from the date that such.Base Rental Payment and/or Supplemental Rental Payments is due and payable, or if the City fails to keep any other terms, covenants or conditions herein for a period of thirty (30) days after written notice thereof from Developer to the City, or if the City shall abandon or vacate the Public Facilities, or if the City's interest in this Agreement or. any part thereof shall be assigned or transferred in violation of the terms of this Agreement, either voluntarily or by operation of law, then in such event the City shall be deemed to be in default under the terms of this Agreement. If the City fails to deposit the Prepayment Amount within 24 hours as provided in Section 7(a)(1), then Developer shall have the right to make a written demand to the City to comply. If the City fails to comply with the demand for deposit within 24 hours following written notice by Developer then Developer has the right, at its option, and without further notice or demand, to take the actions provided for in the succeeding paragraph of this Section, including, but not limited to, seeking equitable relief. If the Developer sends a written notice of default as provided in the preceding paragraph, and the City fails to remedy any default described in the notice then following thirty (30) days, Developer has the right, at its option, and without further notice or demand, to do any one or more of the following (and in connection with obtaining any equitable relief, City hereby acknowledges that Developer may seek such equitable relied: (1) Take any action or legal proceeding to recover Base Rental Payments and/or Supplemental Rental Payments as they come due pursuant to Section 7 of this Agreement. C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 15 (2) To terminate this Agreement and all rights of City under this Agreement by giving to City a written notice of termination. Upon termination, Developer may recover the worth at the time of award of any unpaid Base Rental Payments and/or Supplemental Rental Payments earned at the time of such termination. The "worth at the time of award" is computed by allowing interest from the date of termination until the time of award at the rate of eight and one-half percent (8.5%). The maximum amount recoverable shall be the amount of Base Rental Payments and/or Supplemental Rental Payments plus interest due at the time of termination. (3) If permitted under applicable law, to continue this Agreement in effect and obtain a judgment and recover the amounts set forth in Subsection (2) above. (4) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to make Base Rental Payments and/or Supplemental Rental Payments under this Agreement as they become due pursuant to the terms and conditions of this Agreement. (5) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to perform any other terms and conditions of this Agreement. (6) Recover from the City all costs and fees incurred by it (including attorneys' fees and court costs) in enforcing its rights under this Agreement, including, but not limited to collecting amounts due under this Agreement. Without limiting the generality of the foregoing, Developer shall have the remedy described in California Civil Code Section 1951.4, providing that Developer may elect to continue this Agreement in effect, after the City's breach and abandonment, and recover rent as it becomes due, if the City has the right to sublet or assign, subject only to reasonable limitations. Section 21. Default by Developer. If Developer shall fail to keep any terms, conditions or covenants contained in this Agreement for a period of thirty (30) days after written notice thereof from the City to Developer, or if Developer shall file any petition or institute any proceedings wherein Developer asks or seeks to be adjudicated a bankrupt, or to be discharged from any or all of its debts or obligations, or offers to its creditors to effect a composition or extension of time to pay Developer's debts, or Developer seeks a reorganization or seeks to effect a plan of reorganization or readjustment of Developer's debts, or if any such petition or proceeding of a same or similar nature shall be filed, or instituted against Developer, and Developer shall fail to have such petition or proceeding dismissed within sixty (60) days of its filing, then and in such event Developer shall be deemed to be in default hereunder. If Developer should, after receiving written notice from the City, fail to remedy any such default within sixty (60) days of delivery of said notice (sixty-five (65) days if the notice is sent by mail), then the City shall have the right, at its option, to terminate this Agreement by delivering written notice of such intent to terminate to Developer not less than sixty (60) days prior to the effective date of such termination, and after the effective date of such termination, the City shall be relieved of all obligations hereunder, provided however, in the event that the termination occurs after the completion of the Public Facilities construction and their acceptance as complete by the City, the City shall continue to make the Base Rental Payments and Supplemental Rental Payments C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 16 98 812 pursuant to Section 7 hereof for the thirteen -year term that the Agreement would have been in effect if not terminated, to Developer or its successor in interest, as long as the City continues to use the Public Facilities, Section 22. Hazardous Materials. (a) Developer's Representations. Developer hereby represents that, to the best of its knowledge, the Dedicated Property is not in violation of any currently existing federal, state or local hazardous materials laws. Developer further agrees that it shall indemnify, protect, defend and hold harmless the City from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Dedicated Property, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Dedicated Property prior to the Commencement Date of the Sublease and not otherwise resulting from the City's use or possession of the Dedicated Property. (b) City's Representation. City hereby represents that, to the best of its knowledge, the property constituting the Existing Right -of -Way is not in violation of any currently existing federal, state or local hazardous materials laws. City further agrees that it shall indemnify, protect, defend and hold harmless the Developer from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Existing Right -of -Way, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Existing Right -of -Way prior to the commencement date of the Lease and not otherwise resulting from the Developer's use or possession of the Existing Right -of -Way. Section 23. Attorneys' Fees. In any action or arbitration arising directly or indirectly out of the terms of this Agreement, the prevailing party shall be entitled to all costs and expenses, including without limitation, actual attorneys' fees and costs of suit whether in equity or in an action at law, as may be necessary to enforce the terms and conditions of this Agreement. Section 24. Oration to Purchase. The City at any time during the term of this Agreement, shall have the option to purchase the Public Facilities in the manner provided in this Section. The City may exercise its option to purchase the Public Facilities by giving Developer not less than sixty (60) days' prior written notice of its intent to exercise such option. The City's notice of intent to exercise its option shall specify the date upon which the purchase shall occur ("Purchase Date"), which Purchase Date must coincide with the due date for the City's payment to Developer of a Base Rental Payment as such dates are defined in Section 7 of this Agreement. Upon exercising its option to purchase the Public Facilities, the purchase price ("Purchase Price") to be paid by the City to Developer shall be equal to the outstanding balance, as of the Purchase Date, of the Principal Components of the Leasehold Value attached hereto, plus any portion of the Interest Component which is accrued and unpaid on the CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 17 9S812 Purchase Date. On the Purchase Date, the City shall pay the full amount of the Purchase Price to Developer in immediately available funds, and the City shall also pay at that time, in cash or other immediately available funds, the amount of any Base Rental Payments which have accrued prior to the Purchase Date, but which Base Rental Payments have not yet been paid to Developer. Upon the City's exercise of its option and upon the City's payment to Developer of the Purchase Price and Base Rental Payments as provided under the terms of this Section 24, all right, title and interest of Developer in and to the Dedicated Property, Existing Right of Way, and the Public Facilities shall be transferred to the City "as is" and without warranty. This option to purchase shall not effect the payments, if any, due under the Supplemental Rental Payments Section 7(b)(2). Section 25. Recordation and Filins. Upon full execution of this Agreement, Developer shall record this Agreement in the Official Records of the County Recorder for the County of Riverside, California. Section 26. Entire Agreement. This Agreement contains the entire Agreement of the parties hereto with reference to the subject matter hereof, and supersedes all negotiations or previous agreements between the parties with respect to all or any portion of the subject matter hereof. Section 27. Validity and Severabili1y. If any one or more of the terms, provisions, promises, covenants or conditions contained in this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a final decision of a court of competent jurisdiction, then each of the remaining terms, provisions, promises, covenants and conditions contained herein shall remain unaffected thereby and shall be valid and enforceable to the fullest extent permitted by law. If for any reason this Agreement shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by Developer or by the City, or if for any reason it is held by such a court that the covenants and conditions of the City or Developer hereunder, including covenants to pay rents as set forth in this Agreement, are unenforceable for the full term hereunder, then and in such event for and in consideration of the right of the City to possess, occupy and use the Public Facilities and the right of Developer to occupy the Project, which rights in such event are hereby granted, this Agreement shall thereupon become and shall thereafter be deemed to be a lease from year to year under which the annual rentals herein specified will be paid by the City and Developer respectively. Section 28. Headings. Any headings contained in this Agreement are solely for the purposes of convenience of reference and shall not constitute a part hereof nor shall they be utilized to interpret any term or condition contained in this Agreement. Section 29. Counterparts. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 18 98812 This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and all of which when taken together shall be deemed a single original. Section 30. Governini; Law. This Agreement shall be construed and governed by the laws of the State of California. Section 31. Time of the Essence. Time is of the essence with respect to this Agreement. Section 32. Amendments. This Agreement may be amended at any time, and from time to time provided, however, that no amendment of this Agreement shall be effective unless such amendment is in writing and signed by all parties hereto. Section 33. Other Documents. The parties hereto agree that each shall, concurrently herewith or at any time hereafter, upon reasonable demand by the other, execute any other documents or instruments and do or cause to be done any other acts as may be necessary or convenient to carry out the intent and purposes of this Agreement. Section 34. Successors. Subject to the provisions contained herein, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto. Section 35. Authorily. The persons executing this Agreement on behalf of the parties hereto warrant that (a) the party is duly organized and existing; (b) they are duly authorized to execute and deliver this Agreement on behalf of said party; (c) by so executing this Agreement, such parry is formally bound to the provisions contained herein; (d) the entering into of this Agreement does not violate any provision of any other agreement to which that parry is bound; and (e) there is no litigation nor legal proceeding or other legal impediment which would prevent the parties from entering into this Agreement. Section 36. Exhibits and Recitals. The Recitals contained in this Agreement, and each and every one of the Exhibits referenced in this Agreement shall be deemed to be incorporated herein by this reference. The Exhibits attached hereto are as follows: CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 19 88812 Exhibit Description "A" Legal Description of Project Site "13-1" Legal Description of Right -of -Way Dedication (Adams) 4413-2" Legal Description of Right -of -Way Dedication (Highway 111) "C-1" Depiction of Right -of -Way Dedication (Adams) "C-2" Depiction of Right -of -Way Dedication (Highway 111) "D-l" Legal Description of Existing Right -of -Way (Adams) 46D-2" Legal Description of Existing Highway I I I Right -of -Way "E-1" Depiction of Existing Right -of -Way (Adams) 64E-2" Depiction of Existing Highway 111 Right-of-way "F" Public Facilities "G" Prepayment Schedules IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested to by the proper officers for each of the parties and the official seals of the parties to be hereto affixed, all as of the day and year first above written. CITY OF LA QUINTA, a municipal charter city Date: THOMAS P. GENOVESE, City Manager ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN HONEYWELL, City Attorney City of La Quinta, California STAMKO DEVELOPMENT CO., a California limited partnership Date: By: Its: THE JUVONEN LIVING TRUST Date: By Its: CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 20 98812 EXHIBIT "A" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT LEGAL DESCRIPTION OF PROJECT SITE PROJECT SITE IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF THE NORTHWEST ONE -QUARTER LYING SOUTHERLY OF STATE HIGHWAY 111 AND THE SOUTHWEST ONE -QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SOUTHWEST ONE -QUARTER OF SECTION 29; THENCE NORTH 00 20'28" WEST ALONG THE WESTERLY LINE OF SAID SOUTHWEST ONE -QUARTER A DISTANCE OF 1087.25 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WESTERLY LINE NORTH 00 20'08" WEST A DISTANCE OF 1565.71 FEET TO THE NORTHWEST CORNER OF SAID SOUTHWEST ONE - QUARTER OF SECTION 29; THENCE NORTH 00 20'08" WEST, ALONG THE WESTERLY LINE OF THE NORTHWEST ONE -QUARTER OF SECTION 29, A DISTANCE OF 318.50 FEET TO THE BEGINNING OF A NONTANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 2555.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 19 32'07" WEST, SAID POINT BEING ON THE SOUTH LINE OF THE STATE HIGHWAY CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED AUGUST 23, 1968 AS INSTRUMENT NO. 82038, OFFICIAL RECORDS; THENCE EASTERLY ALONG SAID SOUTHERLY LINE AND ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 11 53'09", AN ARC DISTANCE OF 530.03 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND TANGENT TO LAST MENTIONED CURVE, SOUTH 82 21'02" EAST A DISTANCE OF 1287.12 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 5055.00 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06 03' 12", AN ARC DISTANCE OF 534.06 FEET TO A POINT, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 01 35' 46" WEST, SAID POINT BEING ON THE WESTERLY LINE OF THE EASTERLY 330.00 FEET OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 98812 PROJECT SITE LEGAL DESCRIPTION CONTINUED THENCE PARALLEL WITH THE EASTERLY LINE OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29 AND NONTANGENT TO LAST MENTIONED CURVE, SOUTH 00 13'55" EAST A DISTANCE OF 1311.87 FEET TO A POINT ON THE SOUTHERLY LINE OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE NORTH 89 51'46" WEST ALONG SAID SOUTHERLY LINE A DISTANCE OF 330.01 FEET TO THE NORTHWEST CORNER OF THE EASTERLY 660.00 FEET OF THE SOUTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE SOUTH 00 13' 55" EAST ALONG SAID WESTERLY LINE A DISTANCE OF 239.25 FEET; THENCE NORTH 89 51' 38" WEST A DISTANCE OF 1987.25 FEET TO THE TRUE POINT OF BEGINNING. SUBJECT TO EXISTING EASEMENTS OF RECORD. COMPRISING 87.72 ACRES, MORE OR LESS. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 98812 EXHIBIT `B-1" OF EXHIBIT "C" LEGAL DESCRIPTION RIGHT OF WAY DEDICATION — ADAM STREET A PORTION OF THE EASTERLY 25.00 FEET OF THE WESTERLY 55.00 FEET OF THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020'08" WEST A DISTANCE OF 1087.25 FEET; THENCE ALONG THE WESTERLY PROLONGATION OF THE SOUTHERLY LINE OF THAT PARCEL OF LAND DESCRIBED IN DEED RECORDED AUGUST 2, 1995 AS INSTRUMENT NO. 251766, RECORDS OF SAID RIVERSIDE COUNTY, SOUTH 89051'43" EAST A DISTANCE OF 30.00 FEET; THENCE NORTHERLY ALONG A LINE PARALLEL WITH AND 30.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020'08" WEST A DISTANCE OF 1110.16 FEET TO THE TRUE POINT OF BEGINNING, THENCE CONTINUING ALONG SAID PARALLEL LINE NORTH 00020'08" WEST A DISTANCE OF 225.79 FEET; THENCE NORTH 89039'52" EAST A DISTANCE OF 25.00 FEET TO A POINT ON ALINE PARALLEL WITH AND 55.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29; THENCE SOUTHERLY ALONG SAID LINE SOUTH 00020'08" EAST A DISTANCE OF 225.79 FEET; THENCE NORTH 89039'52" WEST A DISTANCE OF 25.00 FEET TO THE POINT OF BEGINNING. SAID PORTION CONTAINS 5,645 SQUARE FEET, MORE OR LESS. S�Q LAND S THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED �``�P�� KEc�F EXHIBIT "C-1" AND HEREBY BEING MADE APART HEREOF. v o No. 6687 O:WM82\SU RVEY\MAP\RWADAMS.doc KII # 40382.000 Exp. 06/30/00 P ARED N E SUPERVISION OF ber 12. 1998 LEH DATE KEITH I TERNATIONAL. - PALM DESERT 760-346-9844 760-346-9368 98812 EXHIBIT `B-2" OF EXHIBIT "C" LEGAL DESCRIPTION RIGHT OF WAY DEDICATION - HIGHWAY 111 A PORTION OF THE NORTHWEST ONE QUARTER AND THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29; THENCE NORTH 89039'42" EAST A DISTANCE OF 55.00 FEET; THENCE ALONG A LINE PARALLEL AND 55.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 251.83 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 00020' 18" WEST A DISTANCE OF 3.29 FEET TO A POINT ON THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111; THENCE NORTH 51031'44" EAST A DISTANCE OF 50.59 FEET TO A POINT ON A CURVE HAVING A RADIAL BEARING OF NORTH 17024'49" EAST; THENCE ALONG THE ARC OF SAID CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2555.00 FEET THROUGH A CENTRAL ANGLE OF 09038'32" A DISTANCE OF 429.98 FEET; THENCE CONTINUING ALONG THE SOUTHERLY RIGHT OF WAY LINE OF SAID HIGHWAY 111 SOUTH 82021'04" EAST A DISTANCE OF 992.56 FEET; THENCE SOUTH 07038'56" WEST A DISTANCE OF 15.00 FEET TO A POINT ON ALINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY I11; THENCE ALONG A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111 NORTH 82021'04" WEST A DISTANCE OF 992.56 FEET TO A POINT OF CURVATURE; THENCE CONTINUING ALONG A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111 ALONG THE ARC OF A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2570.00 FEET THROUGH A CENTRAL ANGLE OF 09045'53" A DISTANCE OF 438.00 FEET; THENCE SOUTH 53032' 16" WEST A DISTANCE OF 37.16 FEET TO THE TRUE POINT OF BEGINNING. SAID PORTION CONTAINS 33,991 SQUARE FEET, MORE OR LESS. ��� LAND S THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED EXIIIBIT \``�P�E "C-2" AND HEREBY BEING MADE A PART HEREOF. v No. 6687 0:M0382\SURVEY\MAP\RW-111.doc KII 0 40382.000 Exp. 06/30/00 P PAR D U 00, p E SUPERVISION OF iember 12. 1998 DALE LE ER DATE KEITH INTERNATIONAL. - PALM DESERT 760-346-9844 760-346-9368 98812 EXHIBIT "C-1" OF EXHIBIT "C" T.P.O.B. -I-,-PI F— Ld g LLJ F— V) 3 V) 'bS Q o p to < Iz W 1/4 CDR SEC 29 T5S, R7E, SBM N89'39'5YE 25.00' 3 io 0 0 EA NW39'5Y E 25.00' PARCEL OF LAND SHOWN IN DEED RECORDED AUGUST 2. 1995 AS INST. 251766. N8751'43"W 1987.24' _ AVENUE 48 _ P�SW COR SEC 29 SCALE 1" =300' T5S, R7E, SBM 0 150 300 600 900 RIGHT OF WAY DEDICATION — ADAMS STREET —Civil—Planning PREPARED UNDER THE SUPERVISION OF: �I-AND KEITH EngineeringKEZFy —Architecture INTERNATIONAL Archi ecture No. 6687 -� INC.—Conyru�getion l� Exp. 06/30/00 PALM DESERT DIVISION Management DALE K LEHER ATE: (760) 30 9W v F 7( 60) 30-933M G 92211 LS 66 EXP. 6-30-00 q OF cAQF` 98812 EXHIBIT "C-2" OF EXHIBIT "C" A=09'38'32' R=2555.00' L=429.98' T=215.49' 0 b' _ HIGHWAY 111 A=09'45'53' '�- o4•W �— R=2570.00' N8221992.56' L-438.00' NW 1 /4 SEC 29 _ _ _ — —T--fl n - SW 1 %4 SEC 29 T5 SEE DETAIL BELOW W W LINE TABLE F- LINE BEARING LENGTH V) Tt N8739'42 E 55.00' T2 NW20'18"W 251.83' N V T3 N00'20'18"W 3.29' Q T4 N51'31'44"E 50.59' Q T5 N07'38'56* E 15.00' T6 N5S32' 16' E 37.16' W W V) v CZ) HIGHW7Q!-'- \24 49QR2_ T3 ," N 55' T.P.O.B. DETAIL SCALE 1" =400' 0 200 400 800 1200 SCALE 1" =100' 66?!%6666"!!!l 0 50 100 200 300 RIGHT OF WAY DEDICATION - HIGHWAY 111 1 —Planning PREPARED UNDER THE SUPERVISION OF: io LAND S��G Cw KEITH Engineering vC,� OP�F Ce��C� —Architecture INTERNATIONAL —Arch° ec°ure No. 6687 —Land INC. 5urv*ying• �� 1 Exp.06/30/00 —Construction PALM DESERT DIVISION Management A4" 41-865 OWMAIX • SIAiE 101 . PALM DESERT, CA 92211 DALE KE EHER DATE: sT9T (760) 346-9844 • FAX (760) 346-930 LS 668 EXP. 6-30-00 E cA� �F 98812 EXHIBIT "D-1" OF EXHIBIT "C" EXISTING RIGHT OF WAY ADAMS STREET A PORTION OF THE NORTHWEST ONE QUARTER AND THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 255.12 FEET; THENCE NORTH 89039'42" EAST A DISTANCE OF 55.00 FEET; THENCE SOUTH 00020' 18" EAST A DISTANCE OF 255.12 FEET; THENCE SOUTH 00020'08" EAST A DISTANCE OF 200.00 FEET; THENCE SOUTH 89039'52" WEST A DISTANCE OF 25.00 FEET; THENCE SOUTH 00020'08" EAST A DISTANCE OF 255.79 FEET; THENCE SOUTH 89039'52" WEST A DISTANCE OF 30.00 FEET; THENCE NORTH 00020'08" WEST A DISTANCE OF 455.75 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 32,703 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED EXHIBIT "E-1" AND HEREBY BEING MADE A PART HEREOF. 0:M0382\SU RVEY\MAP\RWADAMEX.doc KII # 40382.000 LAND SG KE(4F� o No. 6687 Exp. 06/30/00 PR RED UZO SUPERVISION OF O;" DXWrlWl DATE KEITH NTERNATIONAI PALM DESERT 760-346-9844 760-346-9368 98812 EXHIBIT "D-2" OF EXHIBIT "C" EXISTING RIGHT OF WAY HIGHWAY I I I A PORTION OF THE NORTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 255.12 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG THE SAID WESTERLY LINE NORTH 00020' 18" WEST A DISTANCE OF 121.99 FEET TO A POINT ON THE CENTERLINE OF HIGHWAY 111, SAID POINT BEING ON A NON -TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIAL BEARING OF NORTH 19°59'33" EAST; THENCE ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 2500.00 FEET THROUGH A CENTRAL ANGLE OF 12020'36" A DISTANCE OF 538.59 FEET; THENCE SOUTH 82021'04" EAST A DISTANCE OF 992.56; THENCE SOUTH 07038'56" WEST A DISTANCE OF 55.00 FEET; THENCE NORTH 82021'04" WEST A DISTANCE OF 992.56 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF SAID CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 2555.00 FEET THROUGH A CENTRAL ANGLE OF 09038'32" A DISTANCE OF 429.98 FEET; THENCE SOUTH 51031'44" WEST A DISTANCE OF 50.59 FEET; THENCE SOUTH 89039'42" WEST A DISTANCE OF 55.00 FEET TO THE TRUE POINT OF BEGINNING. SAID PARCEL CONTAINS 87,812 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED EXHIBIT "E-2" AND HEREBY BEING MADE A PART HEREOF. O:\40382\SURVEY\MAP\RW-111 EX.doc KII # 40382.000 LAND SL KE((Fh No. 6687 Exp. 06/30/00 PR ARED DER HE SUPERVISION OF Novemher 12. 1998 AL LE DATE KEITH INTERNATIONAL. - PALM DESERT 760-346-9844 760-346-9388 EXHIBIT "E-1" OF EXHIBIT "C" N8739'4Y E 55.00' HI GH Wn v — N W 1/4 COR SEC 29 T5S, R7E, SBM v wI LLAj LL L) N �I Q 0 Q� i J 1v N8739'52"E k i 25.00' ui N N N89'39'5YE 30.00' PARCEL OF LAND SHOWN IN DEED RECORDED AUGUST 2, 1995 AS INST. 251766. SCALE 1" =300' 0 150 300 600 900 EXISTING RIGHT OF WAY - ADAMS STREET —Planning PREPARED UNDER THE SUPERVISION OF: p LAND S I ITH —Engineering ��� KE((F'Q� INTERNATIONAL —Architecture tuure No. 6687 Arc`s h INC. —Land $YNeying —Construction / 9 Exp.06/30/00 PALM DESERT DIVISION Management DALE K EHER DATE: sry B114RDW • SUITE 101 $ MM DESERT, CA • 92211 41-865 OF cA�\E�� (760) 346-9644 s FAX (760) 346-9368 LS 6687 EXP. 6-30-00 98812 EXHIBIT "E-2" OF EXHIBIT IV M 4 A-1720'36 \ R-250 � L=538.5959' T.P.O.B. HIGHWAY T4 1 1TU—` A=09'8'03Y— N82'21' 4• W 99 2.5R=255590' 6' 9 L=429.8' NW 1/4 SEC 2— — —1— m� �5�SC2---- -T=99 SW 1%4 h C; W W LINE TABLE LINE BEARING LENGTH O T1 N00'20'18 W 255.12' T2 N00'20' 18 W 121.99' T3 N0738'5G'E 55.00' T4 N51'31'44"E 50.59' Q T5 N8739'4YE 55.00' 0 O N � I W H _ 3m Q y V1 ZLa LJJ I= Z i 330' SCALE 1" =400' 0 200 400 800 1200 I EXISTING RIGHT OF WAY - HIGHWAY 111 I —Planning KEITH neering Engineering INTERNATIONAL —Architecture —„; e LIN INC. Land Surveying PALM DESERT DIVISION —Construction monagement 41-865 80AROMIALK + SMITE 101 a PALM DESERT, G • 92211 (760) 346-9544 • FAX (760) 346-9368 PREPARED UNDER THE SUPERVISION OF le u z �� DALE KE EHER DATE: LS 6687 EXP. 6-30-00 �p LAND S KE4�� v 4 N0. 6687 Exp. 06/30/00 EXHIBIT "F" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT PUBLIC FACILITIES FOR PLANNING AREA I 1. ADAMS STREET IMPROVEMENTS (From Highway 111 to 47th Avenue) QUANTITY UNIT UNIT COST TOTAL COST ITEM Rough Grading 1 LS $ 4,013.00 $ 4,013 Existing Pavement Saw Cut 1,570 LF 0.40 628 Existing Pavement Removal 400 SF 0.60 240 Existing Curb Removal 120 LF 4.00 480 Pavement (including Westside Pavement Widening) 22,150 SF 1.92 42,528 6" Type -DO Curb 650 LF 8.00 5,200 Type A-6 Curb 455 LF 10.00 4,550 10' Wide Cross Cutter 1,830 SF 3.50 6,405 Access Ramps/Corner 2 EA 750.00 1,500 Cutbacks 6' Sidewalk 2,710 SF 2.50 6,775 Redwood Header 360 LF 2.00 720 Unclassified Excavation/ 1 LS 15,000.00 15,000 Removal Water/Dust Control 1 LS 8,000.00 8,000 Traffic Control 1 LS 8,000.00 8,000 Signing and Striping 1 LS 10,000.00 10,000 Mobilization 1 LS 10,000.00 10,000 Parkway Landscaping 1 LS 22,740.00 22,740 98812 Exhibit F To Exhibit C Public Facilities Page Two Landscaped Median 1 LS 32,700.00 32,700 Dry Utilities 4,950 LF 286,548.00 286,548 ADAMS STREET IMPROVEMENT ESTIMATED HARD COSTS $ 466,027 2. HIGHWAY 111 IMPROVEMENTS (West of La Quints Drive To Adams Street) UNIT TOTAL QUANTITY UNIT COST COST h G din 1 LS $ 4,013.00 $ 4,013 Roug ra g Existing Pavement Removal To Subgrade Pavement 8' Meandering Sidewalk loll Wide Cross Gutter Type Al-8 Curb and Gutter Access Two Ramps/Corner Cutbacks Unclassified Excavation/ Removal Water/Dust Control Traffic Control Signing and Striping Mobilization Signal Modification - Adams and 111 New Signal - ill Project Entrance 14,050 SF $ 0.60 $ 8,430 32,400 SF 2.26 73,224 9,037 SF 2.50 22,593 3,330 SF 3.50 11,655 1,160 LF 11.00 12,760 5 EA 750.00 3,750 1 LS 15,000.00 15,000 1 LS 8,000.00 8,000 1 LS 10,000.00 10,000 1 LS 10,000.00 10,000 1 LS 10,000.00 10,000 1 LS 50,000.00 50,000 1 LS 100,000.00 100,000 98812 Exhibit F To Exhibit C Public Facilities Page Three Parkway Landscaping 1 LS 156,070.00 156,070 Dry Utilities 120 LF 26,508.00 26,508 18" D.I.P. Water Main 2,804 LF 68.72 192,69 HIGHWAY ill IMPROVEMENT ESTIMATED HARD COSTS $ 714,698 3. FEES FOR ADAMS STREET AND HIGHWAY 111 IMPROVEMENTS UNIT TOTAL IT K QUANTITY UNIT COST COST City 5% Agency Fee 1 LS 49,402.00 49,402 CVWD 5% Agency Fee 1 LS 9,265.00 9,635 Civil Engineering 10% 1 LS Fee Construction Staking 7% Fee 1 LS Landscape Architect 1 LS City Consultant 5% Fee 1 LS ESTIMATED FEES FOR ADAMS STREET AND HIGHWAY Ill IMPROVEMENT 4. CONTINGENCY 118,073.00 118,073 82,651.00 82,651 30,000.00 30,000 59,036.00 59,036 UNIT TOTAL ouANTITY UNIT COST COST Contingency 15% 1 LS 229,429.00 222,42 ESTIMATED CONTINGENCY 9 229,429 PLANNING AREA I TOTAL ESTIMATED COSTS FOR ADAMS STREET AND HIGHWAY Ill IMPROVEMENTS $1,1758,951 HYPOTHETICAL RENTAL PAYMENT SCHEDULE STAMKO DEVELOPMENT CO. RESTATED AND AMENDED DEVELOPER LEASE AGREEMENT A BASE RENTAL PAYMENT CALCULATION: Initial Prepayment Actual Infrastructure Costs Amount to be Repaid by City Amount of Base Rental Payments 4 Quarter (A) (B) (C) Period Annual 33% of Amount Ending Sales Sales Available Tax Tax for Rent (Assumed) Col B (up ti $122,250) 12/31/99 - - 1 12/31/00 400,000 132.000 122,250 2 12/31/01 550,000 '181,500 122,250 3 12/31/02 450.000 148.500 122,250 4 12/31/03 350,000 115.500 115,500 5 12/31/04 325,0D0 107,250 107,250 6 12/31/05 450.000 148,500 122,250 7 12/31= 550,000 181,500 122,250 8 12/31/07 600,D00 198,000 122,250 9 12/31/08 650,000 214,500 122,250 10 12/31/09 700,000 231,000 122,250 Note: Any Payment Shotall, Including princi SCENARIO 1 (Infrastructure Improvements LESS Than $1.8 Million) Total City Developer $1,800,000 S1,D00,000 $800,000 100% 66% 44% $1,500,000 833,333 666.667 100% 66% 44% SCENARIO 2 (Infrastructure Improvements EQUAL $1.8 Million) Total City Developer $1.800,000 $1,0D0,000 $800,000 100% 66% 44% $1,800,000 1,000,000 800,000 100% 56% 44% SCENARIO 3 (Infrastructure Improvements MORE Than $1.8 Million) Total City Deve4oper $1,800,000 $1,000,000 $800,000 100% 66% 44% $2.000,000 1,000,000 1,000,000 100% 60% 60% (D) (E) (F) (G) (� (D) - (E) (F) (G) (H (D) (E) (F) (G) (H) Rental Principal Interest Payment Ending Rental Principal Interest Payment Ending Rental Principal Interest Payment Ending alance all Payment Paid Paid at Shortfall BPayment Paid Paid at ShortfBalance Payment Paid Paid at Shortfall Balance 8.60% (Forgiven) 1 8.50% (Forgiven) 1 8.60% (Forgiven) Principal Due: 666,66 Principal Due: 800,D00 Principal Due:1 800,000 122,250 65,583 56,667 - 601,083 122,250 54,250 68,000 745.750 122,250 54,250 68,0D0 4 , 0 122,250 71,158 51,092 529,926 122,250 68,861 63,389 686,889 122,250 58,861 63,389 686.889 122,250 77,206 46,044 462,719 122,250 63,864 58,386 623.024 122,250 63,864 58,386 - 623,024 115,500 77,019 38,481 6,750 368,950 115,500 62.543 52,957 6,750 553,731 115,5D0 62,543 62.957 6,750 563,731 107,250 75,989 31.361 15,000 278,D61 107.250 60,183 47,067 15,D00 478,549 107,250 60,183 47.067 15,000 478,549 122,250 98,615 23,635 - 179,446 122,250 81,573 40,677 396,975 122,250 81,573 40,677 396,975 122,250 106.997 15,253 72,449 122,250 88,507 33.743 308,468 122.250 88,507 33,743 308,468 78.607 72,449 6,158 - 122,250 96,030 26,220 212.438 122,250 96,030 26,220 212,438 - - - - - 122,250 104.193 18,057 108,245 122,250 1D4,193 18,057 108,245 - 117,446 108,245 9,201 0 117.446 108.245 9,201 0 )al and/or interest due in each payment year, is forgiven and (with principal deducted from outstanding balance) if Amount Available for Rent is less than $122,250 CZ W N HYPOTHETICAL RENTAL PAYMENT SCHEDULE STAMKO DEVELOPMENT CO. RESTATED AND AMENDED DEVELOPER LEASE AGREEMENT B SUPPLEMENTAL RENTAL PAYMENT CALCULATION 4 Quarter (A) (B) (C) (D) (E) (F) (G) (H) (I) Period Ending Annual Sales Annual Annual Scheduled Annual Principal Interest Payment Ending CPI Sales Tax Payment Rental Paid Paid at Waived Balance Tax (Assumed) Threshhold (Prin. & Payment 8.50% (Prin. & (Principal) (Assumed) (Adjusted Interest) Interest ) by CPI) 1 12/31/99 12/31/00 Principal Due: 500,000 400,000 n/a 530,000 76,204 - - - 76,204 466,296 2 12/31/01 550,000 2.00% 540,600 76,204 76,204 36,569 39,635 - 429,727 3 12/31/02 450,000 2.35% 553,304 76,204 - - - 76,204 390,050 4 12/31/03 350,000 2.50% 567,137 76,204 - - - 76,204 347,001 5 12/31/04 325,000 3.50% 586,986 76,204 - - - 76,204 300,292 6 12/31/05 450,000 1.50% 595,791 76,204 - - - 76,204 249,613 7 12/31/06 550,000 2.00% 607,707 76,204 - - - 76,204 194,626 8 12/31/07 600,000 2.50% 622,900 76,204 - - - 76,204 134,966 9 12/31/08 650,000 3.50% 644,701 76,204 76,204 64,732 11,472 - 70,234 10 12/31/09 700,000 4.00% 670,489 76,204 76,204 70,234 5,970 - (0) CJ X GO N �e : cD PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: AND WHEN RECORDED MA IL TO: , % �AA • OX I J 0 9 253 DOC a 2000-283639 07/25/2000 08:00A Fee:NC Page 1 of B Recorded in Official Records County of Riverside Gary L. Orso Assessor, County Clerk 8 Recorder M S U PAGE SIZE DA PCOR NOCOR SMF MISC. k-� A R L COPY LONG I REFUND NCHG EXAM Title of Document THIS AR�EA F/0" 7-9 R�E,XjOR�DE J W z� 17 ONL--Y� USE THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) L• STC-SCSD 996a (Rev 8/97) SECOND AMENDMENT TO DEVELOPMENT AGREEMENT This Second Amendment to Development Agreement ("Amended Agreement") is made and entered into this,:!ffday of o/ , 2000, by and between the CITY OF LA QUINTA, a charter city ("City"), and ST MKO DEVELOPMENT COMPANY, a California limited partnership ("Developer"). The City and Developer are hereinafter sometimes referred to individually as a "Party". RECITALS This Amended Agreement is predicated upon the following facts: A. The City and Developer originally entered into that certain Development Agreement dated July 15, 1997 ("Original Agreement") authorized by City Council Ordinance No. 306 dated July 21, 1997, and effective August 20, 1997, and recorded on September 3, 1997. B. The City and Developer processed an Amendment to the Development Agreement which was approved on November 17, 1998, by Ordinance No. 328 dated December 1, 1998, and effective January 14, 1999, and recorded on March 11, 1999. C. Due to requested modifications to the Amended Specific Plan, the developer has requested certain modifications to the site planning conditions, the Development Agreement, and the Developer Lease to allow the Project to proceed. D. The City believes that all of the findings made in the Original Agreement and First Amendment remain true, that the requested modifications by the Developer as set out in this Second Amendment Agreement with attachments are consistent with the General Plan , and all other applicable plans, rules, regulations and official policies of the City of La Quinta and the approval of this Amended Agreement shall promote the health, safety and general welfare of the City. E. It is the intent of the Parties that on execution of this Second Amendment to the Agreement, the Developer shall be obligated to complete the Public Improvements in the manner set forth in the original Development Agreement, the First Amendment and the Amendment Specific Plan 97-027 and Conditional Use Permit 97- 034 as contained there in those documents, and with City's rules, regulations and official policies governing permitted uses, density, design, improvement and construction standards and specifications in force on the date of this Amended Agreement. IIIIII IIIIII III IIIIIII IIII IIIIII IIIIII III IIIII IIII IIII e7 z000 SE es eeR SACity Clerk\Ordinances\DA#2Restkgmt.wpd 1 F. On May 9, 2000, the Planning Commission of the City of La Quinta (the "Planning Commission"), after giving -notice pursuant to Government Code Sections 65854, 65854.5 and 65866, held a public hearing on Developer's application for this Second Amended Agreement. On May 16, 2000, and June 6, 2000, the City Council of the City of La Quinta ("City Council"), after providing public notice as required by law, similarly held public hearings to consider Developer's application for this Agreement. G. The Planning Commission and the City Council have found that the Second Amended Agreement is consistent with the General Plan and all other applicable plans, rules, regulations and official policies of the City. H. In accordance with the requirements of the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., ("CEQA"), the Community Development Department completed an Environmental Impact Report, State Clearinghouse No. 9701 1055, certified by the City Council in 1997, for this Specific Plan 97-029 and Development Agreement 97-002. A supplemental EIR has been prepared for the proposed Specific Plan 97-029 Amendment #1 and Development Agreement 97-001 Amendment #1 which was certified in 1998. No changed circumstances or conditions are proposed which would trigger the preparation of subsequent environmental review pursuant to Public Resources Code Section 21 166; I. On December 1, 1998, the City Council adopted Ordinance No. 328 approving this Amended Agreement with Developer. The Ordinance takes effect on January 14, 1999. The parties hereto agree to amend the Second Amended Agreement according to the following specified revisions: co m 0I 1. Definitions: In this Second Amended Agreement, the defined terms will have the @N same meaning as in the Original Agreement except as may be otherwise noted in this CU N Second Amended Agreement: 0 m 1.1. Authorizing Ordinance: "'Authorizing Ordinance" means Ordinance No. 344 approving this Second Amended Agreement. •� 1.4 Specific Plan: The Specific Plan approved by the City Council on July 15, 1997 as amended by Amendment No. 1 approved by the City Council on November 17, 1998, and Amendment No. 2, approved by the City Council on May 16, 2000. C A reference to "Amendment to Specific Plan" refers to Amendment #1 or #2 to the Specific Plan and/or any future amendments not affecting the implementation of the Development Agreement. 2. No Other Change: All sections of the original Agreement, or the First Amendment which have not been specifically amended by this Second Amended Agreement shall remain intact and enforceable in their entirety, or as may be amended in the future. SACity Clerk\Ordinances\DA#2RestAgmt.wpd 2 IN WITNESS WHEREOF, this Second Amended Agreement has been executed by the Parties on the day and year first above written, as authorized by Ordinance No. 328 of the City Council of the City of La Quinta. ATTEST: J N GREEK, CMC/AAE, i y Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: L <ATH _ INE JENSON, i City of La Quinta, Califo is CITY OF LA QUINTA, a Charter City By: J . PENA, yor City of La Quinta, California Attorney STAMKO DEVELOPMENT COMPANY, A CaliforniV�/imited Partne,�40ip By: Its: IN . �mm'=G- SACity Clerk\Ordinances\DA#2RestAgmt.wpd 3 State of California County of Riverside On July 11, 2000 before me, Regenia Hensley Notary Public, personally appeared JOHN J. PENA personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. (Seal) _ REGENIA HENSLEY �:C�tgnluior� 1kl tQ7F Z Z (0MvCMvMEvkmAU97.2M0j Ntan► _ �t�Vverside Document Description: Second Amendment to Development Agreement Sfamko) Number of Pages: Four 4) including Notary Page Date of Document: July 5, 2000 u�wu�min�uiw�i�imi� .,_��=oIIIIII r,M State of California County of Riverside On July 13. 2000 before me, Regenia Hensley Notary Public, personally appeared CHRISTINE F. CLARKE personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. (Seal) REGENIA HENSLEY Coffiffaan #110M MYBfSid@ iuly Corrvn. Expi+� A�9 7, �D00 Document Description: Second Amendment to Development Agreement ( mko) Number of Pages: Four (4) in in N_o Page Date of Document: July 5. 2000 IN �m ��,� 1SLOVAK BARON & EMPEY la 003 1/ 21i2at12 10:27 FAX .766 325 a86a ESTOPPEL CEP%TIFICATE Valley Independent 13ank Suite 100 39700 Itob Hope Dry Rancho Mirage, California 92270 fie; Development Ageernent dated July 15, 1997, bet xeen City of La Quinta (the t 1md Juvonen Living Trust, as Stamko Development Co. (`Develop o, Dc:velo meat ,Agreement dated amended by that certain First �nendme t t End The Trustee of the Juvonen December 1,1998, between the City, the De per eeinent L1v1Y1 Trust, and by that certain 5ecopd Amendyneit to DevelopmOnt Age meat dated July 51 2000, between the City Fund the .developer (the thereto,Deveis referred to Agreement, as amended by the first and ,second am€ndments herein as the -Development Agreement ) Ladies) Gentlemen: din that you aing le intending to disburse lo; to proceeds under a loan of It is our understan g evelo er. It is our further understanding that as a coed ,lion precedent toe unde:rs� gnu, made t� the D p certifications by the undersigned. Accordingly, the load you require the following ollows: as f hereby eertifi.eS to you, your successors and assigns A Bement is in full force and effe ct and is a binding obl1gati�n on 1, The Development!�' the unc lersigned. referred to above, the 1� �velopmerit Agreement has not 2. Fxcept for the amendmer�►ts been a i,ended or modified. 3. To the best k-nowledg a of the undersigned, no default in the performance of the i atiox�s under the I)eVelopment Agreement exists as of the date hereof- Develc per s obl g Ex edited at La Quinta, California on the th day ofNovelnber, 2002. CITY OF A QUINTA, a cli arter ity Y. ' Name: Title: City Man.a er G:1v�k5;'AMV GONSTWOPPELCEPMCKrEMOC ESTOPPEL CERTIFICATE Valley Independent Bank 74-199 El Paseo, Suite 102 Palm Desert, California 92260 Re: Development Agreement dated July 15, 1997, between City of La Quinta (the "City"), Stamko Development Co. ("Developer") and Juvonen Living Trust, as amended by that certain First Amendment to Development Agreement dated December 1, 1998, between the City, the Developer and The Trustee of the Juvonen Living Trust, and by that certain Second Amendment to Development Agreement dated July 5, 2000, between the City and the Developer (the Development Agreement, as amended by the first and second amendments thereto, is referred to herein as the "Development Agreement"). Ladies/Gentlemen: It is our understanding that you are intending to disburse loan proceeds under a loan being made to the Developer. It is our further understanding that as a condition precedent to the making of the loan you require the following certifications by the undersigned. Accordingly, the undersigned, hereby certifies to you, your successors and assigns as follows: 1 The Development Agreement is in full force and effect and is a binding obligation on the undersigned. 2. Except for the amendments referred to above, the Development Agreement has not been amended or modified. 3. To the best knowledge of the undersigned, no default in the performance of the Developer's obligations under the Development Agreement exists as of the date hereof. Executed at La Quinta, California on the _th day of October, 2003. CITY F L QUINTA, a ch er i r r By; ��--L Name: THOMA.S P. GENOVESE Title: CITY MANAGER GALEE ROBERTSCLARK&STAMMESTOPPEL CERTIFICATE -LA QUINTA.DOC ESTOPPEL CERTFICATE Via Federal Express and Telecopier JC Penney c/o Christine F. Clarke Stamko Development Co. 2025 Poinsettia Manhattan Beach, CA 90266 Re: Development Agreement dated July 15, 1997, between City of La Quinta (The "City"), Stamko Development Co. ("Developer") and Juvonen Living Trust, as amended by that certain First Amendment to Development Agreement dated December 1, 1998 between the City, the Developer and The Trustee of the Juvonen Living Trust, and by that certain Second Amendment to Development Agreement dated July 5, 2000, between the City and the Developer (the Development Agreement; as amended by the first and second amendments thereto, is referred to herein as the "Development Agreement"). Ladies/Gentlemen: It is our understanding that JC Penney has requested the City issue an Estoppel Certificate regarding the, status of the above -referenced Development Agreement. Accordingly, the undersigned hereby certifies to you, your successors and assigns as follows: 1. The Development Agreement is in full force and effect and is a binding obligation on the undersigned. 2. Except for the amendments referred to above, the Development Agreement has not been amended or modified. 3. To the best knowledge of the undersigned, no default in the performance of the Developer's obligations under the Development Agreement exists as of the date hereof. Executed at La Quinta, California on the 28 day of November, 2007. CITY OF LA QUINTA, ajCharter City of La Quinta By: Thomas P. Genovese, City Manager