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ORD 395 Centre Pointe - DA 2003-006 Revised - Centre Pointe Development, LLC (2003) ORDINANCE NO. 395 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A REVISED DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CP DEVELOPMENT LA QUINTA, LLC CASE NO.: DEVELOPMENT AGREEMENT 2003-006 APPLICANT: CP DEVELOPMENT LA QUINTA, LLC WHEREAS, California Government Code Section 65864 et seq. (the "Development Agreement Law") authorizes cities to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purpose of strengthening the public planning process, encouraging private participation and comprehensive planning and identifying the economic costs of such development; and WHEREAS, the City Council of the City of La Quinta ("City" or "City Council", as applicable), on the 3rd of June, 2003, held a duly noticed public hearing to consider (i) a disposition and development agreement ("Original DDA") by and between the La Quinta Redevelopment Agency ("Agency") and Center Point Development, LLC, ~ ,, a California limited liability company (the "Original Developer"), pursuant to which the Original Developer agreed to purchase certain real property located within the City (the "Site"); and (ii) a development agreement ("Original Development Agreement") by and between the City and the Original Developer, pertaining to the Site. By adoption of City Council Ordinance No. 385, the City Council approved the Original Development Agreement; and WHEREAS, prior to execution of the Original Developmentl Agreement, the Original Developer requested certain changes thereto, including (i.) changing the developer entity from the Original Developer to CP Development La~ Quinta, LLC, a California limited liability company ("Proposed Developer"), (ii) revising the landscaping obligations of the Proposed Developer to account for the possibility that the City does not obtain certain landscaping grants, and (iii) revising the insurance requirements for the Proposed Developer; and WHEREAS, pursuant to the Original DDA, as revised, the Proposed Developer has an equitable interest in the Site and qualifies to enter into a Development Agreement pursuant to the Development Agreement Law; and WHEREAS, the City Council of the City of La Quinta, California ("City - .. Council"), did on the 2nd of December, 2003, hold a duly noticed public hearing to consider the Revised Development Agreement; and, Ordinance No. 395 Development Agreement 2003-006 CP Development La Quinta, LLC Adopted: December 16, 2003 Page 2 WHEREAS, the Planning Commission of the City of La Quinta, California, did' on the 25th of November, 2003, hold a duly noticed Public Hearing to consider the Revised Development Agreement and the recommendation of the Planning Commission has been received by the City Council; and, WHEREAS, at said City Council 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 justify approving the Revised Development Agreement: 1. The proposed Revised Development Agreement is consistent with the objectives, policies, general land uses and programs of the City of La Quinta General Plan and Specific Plan 2001-005. 2. The property is within the Tourist Commercial, Medium Density Residential, and Park Districts of the 1 992 General Plan Update which permits the proposed use and the proposed use is consistent with the goals, policies and intent of the La Quinta General Plan Land Use Element (Chapter 2). 3. The land uses authorized and regulations prescribed for the ReviSed Development Agreement are compatible with the zoning and its related regulations now applicable to the property. The site is zoned Tourist Commercial, Medium Density Residential and Park which permits' the proposed uses provided conditions are met. 4. The proposed Revised Development Agreement conforms with public convenience and the general welfare by providing for extensive public improvements and conforms to good land use practice by requiring the development of a commercial development. 5. Approval of this Revised 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. 6. Approval of this Revised 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. Ordinance No. 395 Development Agreement 2003-006 CP Development La Quinta, LLC Adopted: December 16, 2003 Page 3 7. Consideration of the Revised 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 governs Development Agreements. WHEREAS, all actions required to be taken by the City precedent to the adoption of this Ordinance have been regularly and duly taken. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California that it does ordain as follows: SECTION 1. APPROVAL. The City Council hereby approves and adopts the Revised Development Agreement in the form presented to the City Council concurrent with the approval and adoption of this Ordinance, and authorizes and directs the Mayor to sign the Revised Development Agreement on behalf of the City, and the City Clerk to record the Revised Development Agreement in the Official Records of Riverside ,... County in accordance with applicable law. SECTION 2 ENVIRONMENTAL. Said Specific Plan complies with the requirements of The Rules to Implement the California Environmental Quality Act of 1970 as amended (Resolution 83-63). The Community Development Department completed Environmental Assessment 2001-436, certifying a Mitigated Negative Declaration of environmental impact as adopted by the City .Council on February 5, 2002 under Resolution 2002-07, for this Specific Plan 2001-005. An Addendum has been prepared for the proposed Specific Plan 2001-005, Amendment #1 and Development Agreement 2003-006. No changed circumstances or conditions are proposed which would trigger the preparation of subsequent environmental review pursuant to Public Resources Code Section 21166. SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 4: POSTING. The City Clerk shall certify to the passage and adoption of this Ordinance, and 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. Ordinance No. 395 Development Agreement 2003-006 CP Development La Quinta, LLC Adopted: December 16, 2003 Page 4 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 16th day of December, 2003, by the following vote to wit: AYES: Council Members Henderson, Osborne,. Perkins, Sniff, Mayor Adolph NOES' None ABSENT: None ABSTAIN' None DO~~AD ~o~H, Mayor City of La Quinta, California ATTEST- JUNE S..GREEK, CMC, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM' M./~/(THERJ~NI~ JENSON, Cit~A~torney City of La Quinta, California Ordinance No. 395 Development Agreement 2003-006 CP Development La Quinta, LLC Adopted: December 16, 2003 Page 5 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, JUNE S. GREEK, 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. 395 which was introduced at a regular meeting held on the 2nd day of December, 2003, and was adopted at a regular meeting held on the 16th day of December, 2003, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in a Resolution of the City Council. CMC, City Clerk City of La Quinta, California PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: JUNE S. GREEK, City Clerk AND WHEN RECORDED MAIL TO: CITY OF LA QUINTA Attn: June Greek P. 0. Box 1504 78-495 Calle Tampico La Quinta, CA 92253 SPA( DOC a 2004-0005256 01/05/2004 08:00A Fee:NC Page 1 of 57 Recorded in Official Records County of Riverside Gary L. Orso Assessor, County Clerk 8 Recorder IIN 1l11111111I 11111 11 N1 11111111 DEVELOPMENT AGREEMENT by and between CITY OF LA QUINTA & CP DEVELOPMENT LA QUINTA, LLC Title of Document THIS AREA FOR RECORDER'S USE ONLY THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) C:\MYDATA\WPDOCS\FORMS\Recorder.wpd S RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103) DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA CP DEVELOPMENT LA QUINTA, LLC 394/015610-0061 390243.13 a] 2/17/03 - l - TABLE OF CONTENTS Page 1.0 GENERAL........................................................................................................................ 3 1.1 Term...................................................................................................................... 3 1.2 Effective Date.......................................................................................................3 1.3 Amendment or Cancellation......................................:..........................................3 1.4 Termination...........................................................................................................3 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT...........................................................................3 2.1 Right to Develop...................................................................................................3 2.2 Additional Applicable Codes and Regulations.....................................................4 2.3 Permitted Density, Height and Use Limitations................................................... 5 3.0 DEVELOPER'S OBLIGATIONS....................................................................................5 3.1 Development of the Project; Planned Development ............................................. 5 3.2 Conditions of Approval.........................................................................................6 3.3 Covenants, Conditions and Restrictions...............................................................6 3.3.1 Recordation of Covenants, Conditions and Restrictions and Establishment of Casitas Development Homeowner Association................................................................................................ 6 3.3.2 Recordation of Covenants, Conditions and Restrictions and Establishment of Sanctuary Villas Development Homeowner Association................................................................................................ 7 3.4 Payments to City by Developer............................................................................7 3.4.1 General......................................................................................................7 3.4.2 Developer's Payments of One -Time Mitigation Fees ..............................7 3.4.3 Casitas Development Annual Mitigation Fee; Termination .....................8 3.4.4 Sanctuary Villas Development Annual Mitigation Fee; Termination............................................................................................... 8 3.4.5 Payment of Casitas Development Public Facilities Fee ........................... 9 3.4.6 Payment of Sanctuary Villas Development Public Facilities Fee ............ 9 3.4.7 Consumer Price Index Adjustments..........................................................9 3.4.8 Termination of Sanctuary Villas Development Fees..............................10 3.4.9 1 Landscape Improvements Payment; Maintenance..................................10 3.4.10 Other F ees and Charges; Assessment Appeals.......................................11 3.5 Park Improvements.............................................................................................11 3.6 Dedications and Improvements...........................................................................11 3.7 Indemnification...................................................................................................12 3.8 Insurance.............................................................................................................12 4.0 CITY'S OBLIGATIONS................................................................................................13 4.1 Scope of Subsequent Review/Confirmation of Compliance Process.................13 4.2 Project Approvals Independent...........................................................................14 4.3 Review for Compliance......................................................................................14 394/015610-0061 390243.13 a12/17/03 -1— Page 5.0 DEFAULT; REMEDIES; DISPUTE RESOLUTION....................................................14 5.1 Notice of Default ..............:.... .... ...... ..... :............................................................. 14 5.2 Cure of Default...................................................................................................15 5.3 City Remedies.....................................................................................................15 5.4 Developer's Exclusive Remedy..........................................................................15 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE.................................16 6.1 Encumbrances on the Project Site......................................................................16 6.2 Mortgage Protection............................................................................................16 6.3 Mortgagee Not Obligated...................................................................................16 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure ............................16 7.0 TRANSFERS OF INTEREST IN SITE OR AGREEMENT.........................................17 7.1 Prohibition...........................................................................................................17 7.2 Transfers Prior to Completion of Project............................................................17 7.3 Assignment and Assumption of Obligations......................................................18 7.4 Successors and Assigns.......................................................................................18 7.5 Assignment by City.............................................................................................18 8.0 MISCELLANEOUS.......................................................................................................18 8.1 Notices................................................................................................................18 8.2 Force Majeure.....................................................................................................19 8.3 Binding Effect.....................................................................................................20 8.4 Independent Entity..............................................................................................20 8.5 Agreement Not to Benefit Third Parties.............................................................20 8.6 Covenants............................................................................................................20 8.7 Nonliability of City Officers and Employees.....................................................20 8.8 Covenant Against Discrimination.......................................................................21 8.9 Amendment of Agreement..................................................................................21 8.10 No Waiver...........................................................................................................21 8.11 Severability.........................................................................................................21 8.12 Cooperation in Carrying Out Agreement............................................................21 8.13 Estoppel Certificate.............................................................................................21 8.14 Construction........................................................................................................22 8.15 Recordation.........................................................................................................22 8.16 Captions and References.....................................................................................22 8.17 Time....................................................................................................................22 8.18 Recitals & Exhibits Incorporated; Entire Agreement.........................................22 8.19 Exhibits...............................................................................................................22 8.20 Counterpart Signature Pages...............................................................................23 8.21 Authority to Execute...........................................................................................23 8.22 City Approvals and Actions................................................................................23 8.23 Governing Law; Litigation Matters....................................................................23 8.24 No Brokers..........................................................................................................23 394/015610-0061 390243.13 a12/17/03 -11- DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of the _La_ day of f]QCg0ng=r,?— , 2003 ("Reference Date"), by and between the CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing under the Constitution of the State of the California (the "City"), and CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company (the "Developer"), with reference to the following: RECITALS: A. Government Code Sections 65864-65869.5 ("Development Agreement Act") authorize the City to enter into a binding development agreement for the development of real property within its jurisdiction with persons having legal or equitable interest in such real property. B. Pursuant to Section 65865 of the Government Code, the City has adopted its Development Agreement Ordinance (La Quinta Municipal Code Section 9.250.030) establishing procedures and requirements for such development agreements ("Development Agreement Ordinance"). C. Prior to or concurrently with the execution of this Agreement, Developer has entered into a Disposition and Development Agreement (the "DDA") with the La Quinta Redevelopment Agency ("Agency"), pursuant to which (1) the Agency, subject to the terms and conditions set forth in the DDA, has agreed to sell to the Developer, in one or more phases, certain real property located within the City southeast of the Miles Avenue and Washington Street intersection which is legally described in Exhibit A-1 attached hereto and shown on the Site Map attached hereto as Exhibit A-2 (the "Site"); and (2) the Developer has agreed to construct on the Site the "Project," which will consist of a mixed use residential and commercial development, and other permitted uses. The Project is more fully described in, and subject to (i) this Agreement, (ii) the Center Point Specific Plan, also known as Specific Plan No. SP2001-055 as amended by City Council R solution No. 2003-035 on June 3, 2003 ("Specific Plan"); (iii) the DDA, (iv) the Mitigated Negative Declaration prepared for the Project, dated December 5, 2001, as amended by the Addendum to Mitigated Negative Declaration, approved by the City Council on June 3, 2003, by City Co cil Resolution No. 2003-035 (collectively, the "Revised Mitigated Negative Declaration"); (v) my future Site Development Permits issued for the Project, including all conditions of approval attached thereto (collectively, the "Project Site Development Permits"); (vi) any future Tract Maps approved for the Project, including all conditions of approval thereto (collectively, the "Project Tract Maps"); and (vii) the conditions of approval associated with each and all. of the foregoing approvals (collectively, the "Conditions of Approval"). The documents described in the foregoing clauses (i)-(vi) are collectively referred to herein as the "Developmen Plan," and are, or when approved or issued shall be, on file with the City Clerk. D. By virtue of the DDA, as of the execution of this Agreement, the Developer has an equitable interest in the Site. By its execution of the consent form attached to this Agreement, the Agency consents to recordation of this Agreement against the Site. 394/015610-0061 390243.13 a] 2/17/03 -1- E. Consistent with Section 9.250.030 of the La Quinta Municipal Code, City and Developer desire to enter into a binding agreement for purposes of (i) identifying the terms, conditions, and regulations for the construction of the Project, certain components of which constitute a Planned Development (as defined in Civil Code Section 1351(k)); (ii) setting forth a payment schedule for the Developer's payment to the City of certain amounts designed to compensate the City in the event that certain components of the Project fail to generate specified levels of transient occupancy tax (as that term is used in La Quinta Municipal Code Chapter 3.24) (hereinafter, "transient occupancy tax" or "TOT"); (iii) setting forth a payment schedule for the Developer's payment to the City of Three Hundred Forty -Six Thousand Eleven Dollars ($346,011), to cover the Developer's contribution towards the cost of certain landscaping improvements the City desires to install within certain portions of the real property adjacent to the Site; (iv) requiring the Developer, at its sole cost, to construct a neighborhood park on certain real property owned in fee by the City; and (v) setting forth the extent to which Developer may construct, develop, use and operate the Project. F. Among other purposes, this Agreement is intended to be, and shall be construed as, a development agreement within the meaning of the Development Agreement Act. This Agreement will eliminate uncertainty in planning for and secure the orderly development of the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and assure attainment of the maximum effective utilization of resources within the City, by achieving the goals and purposes of the Development Agreement Act. In exchange for these benefits to City, Developer desires to receive the assurance that they may proceed with development of the Project in accordance with the terms and conditions of this Agreement and the Development Plan, all as more particularly set forth herein. G. The City Council has determined that the Project and this Agreement are consistent with the City's General Plan and the Specific Plan, including the goals and objectives thereof. H. All actions taken by City have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) ("CEQA"), and all other requirements for notice, public hearings, findings, votes and other procedural matters. Agreement. On June 17, 2003, the City Council adopted its Ordinance No. 385 approving this AGREEMENT. - NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: 394/015610-0061 390243.13 a12/17/03 -2- 1.0 GENERAL 1.1 Term. The term of this Agreement shall commence on the Effective Date hereof and, shall continue for fifty (50) years thereafter, unless said term is otherwise terminated, modified, or extended by circumstances set forth in this Agreement or by mutual consent of the parties hereto after the satisfaction of all applicable public hearing and related procedural requirements. 1.2 Effective Date. This Agreement shall be effective, and the obligations of the parties hereunder shall be effective, as of July 17, 2003, which is the date that Ordinance No. 385 takes effect ("Effective Date"). 1.3 Amendment or Cancellation. Except as expressly stated to the contrary herein, this Agreement may be amended or canceled in whole or in part only by mutual consent of the parties and in the manner provided for in Government Code Section 65867-65868 and the City's Development Agreement Ordinance. 1.4 Termination. Unless terminated earlier, pursuant to the terms hereof, this Agreement shall automatically terminate and be of no further effect upon the expiration of the Term of this Agreement as set forth in Section 1.1. Termination of this Agreement, for any reason, shall not, by itself, affect any right or duty arising from entitlements or approvals set forth under the Development Plan, as defined in Section 2.1, below. Notwithstanding anything herein to the contrary, in the event the "Initial Escrow" or the "Property Escrow" (as those terms are defined in the DDA), as applicable, fail to close within the time set forth in the DDA, as such time may be extended pursuant to the terms of the DDA, this Agreement shall automatically terminate and the Developer and City agree to execute and record such document as the Title Company (defined in the DDA) reasonably requires to remove this Agreement of record. 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT 2.1 Right to Develop. Subject to the terms, conditions, and covenants of this Agreement, Developer's right to develop the Project in accordance with the Development Plan (and subject to the Conditions of Approval which, among other Conditions of Approval associated with future approvals and permits issued by the City, includes but is not limited to the Conditions of Approval set forth in Exhibit `B" attached hereto) shall be deemed vested upon approval of the Development Plan, which vesting shall expire upon the earlier of the following occurrences: (a) termination of this Agreement; (b) termination of the DDA; (c) an uncured material default by Developer of this Agreement or the DDA; (d) as to a particular phase, parcel, or lot comprising a portion of the 394/015610-0061 390243.13 al2/17/03 -3- Site, the earlier of the final approved City inspection of the completed development on such phase, parcel, or lot or the issuance by City of a certificate of occupancy for such phase, parcel, or lot; or (e) as to a particular phase, parcel, lot comprising a portion of the Site, the date set forth in the DDA when Developer was required to have completed the development of all improvements on such phase, parcel, or lot. Except for the expiration set forth in clause (a) of the preceding sentence, the expiration of the vesting right set forth in the preceding sentence shall not terminate the obligations of Developer under this Agreement. Notwithstanding anything in this Agreement to the contrary, the Project shall remain subject to: (i) all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees existing on the Effective Date of this Agreement (collectively, the "Existing Development Regulations"); (ii) all amendments or modifications to Existing Development Regulations after the Effective Date of this Agreement and all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees enacted or adopted after the Effective Date of this Agreement (collectively, "New Laws"), except such New Laws which would prevent or materially impair Developer's ability to develop the Project in accordance with the Development Plan unless such New Laws are (A) adopted by the City on a City-wide basis and applied to the Site in a non-discriminatory manner, (B) required by a non -City entity to be adopted by or applied by the City (or if optional the failure to adopt or apply such non -City law or regulation would cause City to sustain a loss of funds or loss of access to funding or other resources), or (C) New Laws the City reserves the right to apply under this Agreement, including but not limited to Sections 2.2 and 3.4.10; (iii) all subsequent development approvals and the conditions of approval associated therewith, including but not limited to Site Development Permits, Project Tract Maps, and building permits, (iv) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees are due and payable, and (v) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid. 2.2 Additional Applicable Codes and Regulations Notwithstanding any other provision of this Agreement, City also reserves the right to apply the following to the development of the Project: 2.2.1 Building, electrical, mechanical, fire and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, as existing on the Effective Date of this Agreement or as may be enacted or amended thereafter, applied to the Project in a nondiscriminatory manner. 394/015610-0061 390243.13 a]2/17/03 -4- 2.2.2 In the event of fire or other casualty requiring construction of more than fifty (50%) percent of any building previously constructed hereunder, nothing herein shall prevent the City from applying to such reconstruction all requirements of the City's Building, Electrical, Mechanical, and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, solely to the extent applicable to all development projects in the City. 2.2.3 This Agreement shall not prevent the City from establishing any new City fees, including new development impact fees, or increasing any existing City fees, including existing development impact fees, including but not limited to the Community Facility Fees, as discussed in 3.4 below, and to apply such new or increased fees to the Project or applicable portion thereof where such new or increased fees may be charged. 2.3 Permitted Density, Height and Use Limitations. The permitted uses, density and intensity of use, location of uses, maximum height and size of proposed buildings, minimum setbacks, and other standards applicable to the Project shall be those set forth in the Development Plan and this Agreement, whichever is the strictest. 3.0 DEVELOPER'S OBLIGATIONS 3.1 Development of the Project-, Planned Development. Developer shall construct the Project on the Site in accordance with the Development Plan. The Project shall consist of a mixed -use residential and commercial development with the following components: (A) a mid -price suites hotel containing approximately one hundred thirty-four (134) guest rooms ("Suites Hotel") to be constructed on a portion of the Site, as depicted on the Site Map (the "Suites Hotel Parcel"); (B) a resort -style condominium/casitas project containing approximately one hundred thirty-six (136) condominium/casitas units ("Casitas Development") to be constructed on a portion of the Site, as depicted on the Site Map (the "Casitas Development Parcel(s)"); (C) a residential development containing approximately thirteen (13) "courtyard cluster villas" homes ("Villas Residential Development") to be constructed on a portion of the Site, as depicted on the Site Map (the "Villas Residential Development Parcel"); (D) a residential development containing approximately fifty-four (54) homes consisting of approximately twenty-nine (29) "Courtyard Cluster Homes" and approximately twenty-five (25) "Perimeter Homes" (collectively, the "Cluster/Perimeter Residential Development"), to be constructed on a portion of the Site, as depicted on the Site Map ("Cluster/Perimeter Residential Development Parcel"), with (i) fourteen (14) of the homes ("Unrestricted Cluster/Perimeter Component") within the Cluster/Perimeter Residential Development to be sold on a market rate basis; and 394/015610-0061 390243.13 a12/17/03 -5- (ii) forty (40) of the homes ("Affordable Housing Component") within the Cluster/Perimeter Residential Development to be marketed and sold to moderate income buyers at an affordable housing cost (as those terms are defined in Health & Safety Code Section 50093); (E) two (2) restaurants (the "Restaurants"); (F) a medical office/surgical facility ("Medical Office/Surgical Facility") to be constructed on a portion of the Site (the "Medical/Office/Surgical Facility Parcel(s)"); and (G) a development containing approximately twenty-six (26) sanctuary villas ("Sanctuary Villas Development") to be constructed on a portion of the Site, as depicted on the Site Map (the "Sanctuary Villas Parcel(s)"); The Site Map is not a tract map and the parcels depicted there are not legal parcels. Upon Developer's preparation of a tract map that creates legal parcels substantially consistent with the Site Map, Developer shall prepare legal descriptions for each of the Suites Hotel Parcel, the Casitas Development Parcel(s), the Villas Residential Development Parcel, the Cluster/Perimeter Residential Development Parcel, the Medical Office/Surgical Facility Parcel(s), and the Sanctuary Villas Parcel(s), and Agency and Developer shall cooperate to attach such legal descriptions to any document where such legal descriptions are required. The Villas Residential Development, the Cluster/Perimeter Residential Development, the Sanctuary Villas Development, and the Casitas Development shall each constitute a Planned Development, and shall be developed and operated in compliance with Section 1350, et M. of the Civil Code. 3.2 Conditions of Approval. The Conditions of Approval attached hereto as Exhibit `B" include and incorporate the mitigation measures of the Revised Mitigated Negative Declaration so that significant environmental effects will be mitigated or avoided. The Developer shall also comply with the mitigation monitoring program set forth in Exhibit "C" attached hereto (the "Mitigation Monitoring Program"). Developer acknowledges that additional Conditions of Approval beyond those set forth in Exhibit `B" may be applicable to the Project if and as associated with future Project approvals including but not limited to Site Development Permits and Project Tract Maps. 3.3 Covenants, Conditions and Restrictions. 3.3.1 Recordation of Covenants, Conditions and Restrictions and Establish- ment of Casitas Development Homeowner Association. Prior to, and as a condition of, the City's issuance of any building permits for the Casitas Development, the Developer shall submit to the City, obtain approval thereof, and record, covenants, conditions and restrictions against the Casitas Development Parcel which, in addition to the obligations set forth in the Conditions of Approval, shall (i) establish a homeowner's association for the Casitas Development (the "Casitas Development HOA"); (ii) provide for the Casitas Development HOA's payment of the fees described in Sections 3.4.3 and 3.4.5; and (iii) provide for the rental of each of the units in the Casitas Development through a national 3941015610-0061 390243.13 a12/17/03 -6- reservation system (unless Developer provides to the reasonable satisfaction of the City a written, final, and binding determination by a governmental authority with jurisdiction, or the written opinion, subject only to reasonable qualifications, of a qualified legal counsel, that requiring the rental of units in the Casitas Development through a national reservation system would mandate registration of the Casitas Development or the sale of such units as a "security" within the meaning of applicable federal or state law or regulation). 3.3.2 Recordation of Covenants Conditions and Restrictions and Establishment of Sanctuary Villas Development Homeowner Association. Prior to, and as a condition of, the City's issuance of any building permits for the Sanctuary Villas Development, the Developer shall submit to the City, obtain approval thereof, and record, covenants, conditions and restrictions against the Sanctuary Villas Parcels which, in addition to the obligations set forth in the Conditions of Approval, shall (i) establish a homeowner's association for the Sanctuary Villas Development (the "Sanctuary Villas Development HOA"); (ii) provide for the Sanctuary Villas Development HOA's payment of the fees described in Sections 3.4.4 and 3.4.6; and (iii) provide for the rental of each of the units in the Sanctuary Villas Development through a national reservation system (unless Developer provides to the reasonable satisfaction of the City a written, final, and binding determination by a governmental authority with jurisdiction, or the written opinion of a qualified legal counsel, subject only to reasonable qualifications, that requiring the rental of units in the Sanctuary Villas Development through a national reservation system would mandate registration of the Sanctuary Villas Development or the sale of such units as a "security" within the meaning of applicable federal or state law or regulation). 3.4 Payments to City by Developer. 3.4.1 General. During the Term of this Agreement, Developer or the applicable HOA, as applicable, shall make the payments to City described in this Section 3.4. The payments under this Section 3.4 are not the exclusive development impact fees for the Project and nothing in this Section 3.4 shall be construed as a limitation on the right of the City to impose, levy, or assess the Site other development fees as permitted by applicable law. 3.4.2 Developer's Payments of One -Time Mitigation Fees. a. Developer shall pay to the City, for each unit in the Casitas Development, with such payment due upon the first close of escrow for each such unit, the sum of One Thousand Five Hundred Dollars ($1,500). b. Developer shall pay to the City, for each unit in the Sanctuary Villas Development, with such payment due upon the first close of escrow for each such unit, the sum of Two Thousand One Hundred Fifty Dollars ($2,150). 394/015610-0061 390243.13 a12/17/03 -7- 3.4.3 Casitas Development Annual Mitigation Fee, Termination. During the term of this Agreement, on each July 1 st following the Effective Date ("Annual Mitigation Payment Date"), the Casitas Development HOA shall pay to the City an annual mitigation fee ("Casitas Development Annual Mitigation Fee") covering the annual period of the prior July 1 through the June 30 occurring immediately preceding the Annual Mitigation Payment Date (the "Operative Year") [provided, however, the first Operative Year shall commence on the Effective Date of this Agreement and end on the next occurring June 30). The Casitas Development Annual Mitigation Fee shall be the collective sum of One Hundred Fifty Dollars ($150) [as the same may increase by the CPI in accordance with Section 3.4.7] for each unit ("Casitas Development Unit Fee") in the Casitas Development that has been sold to a purchaser, as evidenced by the close of escrow for such unit, prior to the applicable Annual Mitigation Payment Date regardless of when or in which Operative Year the unit was sold. Notwithstanding anything herein to the contrary, the Casitas Development Annual Mitigation Fee shall not be required to be paid for any Operative Year in which the City has received transient occupancy taxes derived from, collectively, the Suites Hotel Parcel, the Casitas Development Parcel, and the Sanctuary Villas Parcel, which equals or exceeds Five Hundred Forty -Six Thousand One Hundred Thirty -One Dollars ($546,131.00) [as the same may increase by the CPI in accordance with Section 3.4.7] (the "Minimum Annual TOT Amount") for the applicable Operative Year. Notwithstanding the paragraph above, if the City has received the Minimum Annual TOT Amount in each of three (3) consecutive Operative Years, the Casitas Development HOA's obligation to pay the Casitas Development Annual Mitigation Fee shall be terminated and shall be of no further force or effect. 3.4.4 Sanctuary Villas Development Annual Mitigation Fee,• Termination. During the term of this Agreement, on each Annual Mitigation Payment Date, the Sanctuary Villas Development HOA shall pay to the City an annual mitigation fee ("Sanctuary Villas Development Annual Mitigation Fee") covering the annual period of the prior July 1 through the June 30 occurring immediately preceding the Annual Mitigation Payment Date (the "Operative Year") [provided, however, the first Operative Year shall commence on the Effective Date of this Agreement and end on the next occurring June 30). The Sanctuary Villas Development Annual Mitigation Fee shall be the collective sum of One Hundred Fifty Dollars ($150) ) [as the same may increase by the CPI in accordance with Section 3.4.7] for each unit ("Sanctuary Villas Development Unit Fee") in the Sanctuary Villas Development that has been sold to a purchaser, as evidenced by the close of escrow for such unit, regardless of when or in which Operative Year the unit was sold. Notwithstanding anything herein to the contrary, the Sanctuary Villas Development Annual Mitigation Fee shall not be required to be paid for any Operative Year in which the City has received transient occupancy taxes derived from, collectively, the Suites Hotel Parcel, the Casitas Development Parcel, and the Sanctuary Villas Parcel, which equals or exceeds the Minimum Annual TOT Amount for the applicable Operative Year. Notwithstanding the paragraph above, if the City has received the Minimum Annual TOT Amount in each of three (3) consecutive Operative Years, the Sanctuary Villas Development 394/015610-0061 390243.13 a12/17/03 -8- HOA's obligation to pay the Sanctuary Villas Development Annual Mitigation Fee shall be terminated and shall be of no further force or effect. 3.4.5 Payment of Casitas Development Public Facilities Fee. In addition to the other . payments required to be paid pursuant to this Section 3.4, the Casitas Development HOA shall be required to pay to the City the sum of five percent (5%) of any rental amount charged for occupancy of a unit in the Casitas Development which is rented for a period of more than thirty (30) days (the "Casitas Development Public Facilities Fee"). The Casitas Development Public Facilities Fee shall be due and payable to the City within thirty (30) days after any such occupancy terminates, regardless of whether the rent, or any amount thereof, was collected. If the unit is provided free of charge or at a discount, as consideration for a service provided to the owner of the unit or to the Casitas Development HOA and/or for promotional or marketing purposes, the rent shall be deemed to be the higher of (i) the value of the services received; or (ii) the average rent of all of the units in the Casitas Development during the period the unit was provided. Notwithstanding the foregoing, the requirement to pay the Casitas Development Public Facilities Fee shall not apply in the case where an owner of a Casitas Development unit provides his or her Casitas Development unit to a person who is a relative of the owner, for no consideration, for a period of more than thirty (30) days. 3.4.6 Payment of Sanct3M Villas Development Public Facilities Fee. In addition to the other payments required to be paid pursuant to this Section 3.4, the Sanctuary Villas Development HOA shall be required to pay to the City the sum of five percent (5%) of any rental amount charged for occupancy of a unit in the Sanctuary Villas Development which is rented for a period of more than thirty (30) days (the "Sanctuary Villas Development Public Facilities Fee"). The Sanctuary Villas Development Facilities Fee shall be due and payable to the City within thirty (30) days after any such occupancy terminates, regardless of whether the rent, or any amount thereof, was collected. If the unit is provided free of charge or at a discount, as consideration for a service provided to the owner of the unit or to the Sanctuary Villas Development HOA and/or for promotional or marketing purposes, the rent shall be deemed to be the higher of (i) the value of the services received; or (ii) the average rent of all of the units in the Sanctuary Villas Development during the period the unit was provided. Notwithstanding the foregoing, the requirement to pay the Sanctuary Villas Development Public Facilities Fee shall not apply in the case where an owner of a Sanctuary Villas Development unit provides his or her Sanctuary Villas Development unit to a relative of the owner, for no consideration, for a period of more than thirty (30) days. 3.4.7 Consumer Price Index Adjustments. Each of the Casitas Development Annual Mitigation Fee, the Casitas Development Unit Fee, the Sanctuary Villas Development Annual Mitigation Fee, the Sanctuary Villas Development Unit Fee, and the Minimum Annual TOT Amount shall be adjusted annually, on each May 1" during the term of this Agreement, by the Consumer Price Index for Urban Wage Earners and Clerical Workers, Los Angeles -Riverside -Orange County average, All Items, 1982- 84 = 100, published by the United States Department of Labor, Bureau of Labor Statistics (the "CPI"), by comparing the CPI existing on the immediately prior March 1st to the CPI existing on the March I" of the previous year. No adjustment shall be made in any year in which there has 394/015610-0061 390243.13 a12/17/03 -9- been a decrease in the CPI. If the CPI is no longer published at any point during the Term of this Agreement, a comparable index shall be selected by the parties. 3.4.8 Termination of Sanctuary Villas Development Fees. In the event that, after the Developer constructs the Casitas Development, the escrow pursuant to which the Developer is to acquire the Sanctuary Villas Parcel(s) from the La Quinta Redevelopment Agency is terminated, or the City has otherwise determined that the Developer will not construct the Sanctuary Villas Development, the City and Developer agree to execute and record any document reasonably required by the Riverside County Recorder's Office to terminate the provisions contained in this Development Agreement as they pertain to the Sanctuary Villas Development. From and after such termination the Developer shall have no rights or obligations under this Agreement with respect to the Sanctuary Villas Parcel(s). 3.4.9 Landscape Improvements Payment. Maintenance. The City has applied for various grants (collectively, the "Landscape Grants") to partially fund the cost of certain landscaping improvements (the "Landscaping Improvements") the City desires to make to certain portions of the real property adjacent to the Site (the "Agency and City Landscape Property"). The Landscape Improvements are estimated to cost approximately Nine Hundred Eleven Thousand Two Hundred Forty -Six Dollars ($911,246). The Developer's contribution towards the Landscape Improvements is Three Hundred Forty -Six Thousand Eleven Dollars ($346,011) (the "Developer's Contribution"). In the event the City obtains the Landscape Grants, Developer shall pay to the City the Developer's Contribution, pursuant to the following: (i) Developer shall pay to City One Hundred Fifteen Thousand Three Hundred Thirty -Seven Dollars ($115,337) prior to, and as a condition of, the close of escrow pursuant to which the Developer will purchase the real property on which the Developer will construct the Suites Hotel; (ii) Developer shall pay to City One Hundred Fifteen Thousand Three Hundred Thirty -Seven Dollars ($115,337) prior to, and as a condition of, the close of escrow pursuant to which the Developer will purchase the Sanctuary Villas Parcel(s); and (iii) Developer shall pay to City One Hundred Fifteen Thousand Three Hundred Thirty -Seven Dollars ($115,337) prior to, and as a condition of, the close of escrow pursuant to which the Developer will purchase the first of the Cluster/Perimeter Residential Development Parcel or Villas Residential Parcel. Notwithstanding the payment schedule outlined above, the full amount of the Developer's Contribution shall be due and payable to the City on or before May 20, 2004. Notwithstanding anything in this Agreement to the contrary, if the City does not obtain the Landscape Grants, (i) City shall not be obligated to construct the Landscape Improvements, (ii) Developer shall not be obligated to pay to City the Developer's Contribution, and (iii) Developer shall be obligated to construct on the Agency and City Landscape Property landscape improvements in accordance with the standards set forth in the Landscaping Plan that was 394/015610-0061 -1 O- 390243.13 a12/17/03 approved as part of the various Site Development Permits for the Project, in accordance with Section 312 of the DDA (the "Developer Landscape Improvements"). Developer agrees to maintain, in perpetuity, the Landscape Improvements or the Developer Landscape Improvements, as applicable. City and Developer agree to execute an Easement Agreement, in the form attached to the DDA as Attachment No. 12, for purposes of providing Developer access to the Agency and City Landscape Property in order to perform Developer's obligations pursuant to this Section. 3.4.10 Other Fees and Charges; Assessment Appeals. Nothing set forth in this Agreement is intended or shall be construed to limit or restrict the City's authority to impose its existing, or any new or increased, fees, charges, levies, or assessments for the development of the Site, or to impose or increase, subject to the required procedure, any taxes applicable to the Site including but not limited to transient occupancy taxes, provided nothing set forth herein, subject to the next sentence, is intended or shall be construed to limit or restrict whatever right Developer might otherwise have to challenge any fee, charge, levy, assessment, or tax imposed. Developer agrees that it shall not to take any action, including any assessment appeal, to decrease the assessed value of any of the Site or any portion thereof below the final assessed value at the time the development of the Site or separate parcel thereof is completed; provided, however, the foregoing restriction on challenging or appealing assessments shall not apply to individual homeowners who have purchased units on the Villas Residential Development Parcel or the Cluster/Perimeter Residential Development Parcel. Developer shall timely pay all applicable fees, charges, levies, assessments, and special and general taxes validly imposed in accordance with the Constitution and laws of the State of California, including without limitation school impact fees in accordance with Government Code §§ 65995, et seq. 3.5 Park Improvements. Developer agrees to develop a neighborhood park on that certain City -owned property, which is identified as "Lot 6" in the Site Map (the "City Park Property"), in accordance with the list of park improvements set forth in Exhibit "D" hereto (the "Park Improvements") and all applicable City and State laws and regulations. Prior to Developer's entry onto the City Park Property, Developer shall enter into an Early Entry Agreement with the City substantially in the form of which is attached hereto as Exhibit " E". The Park Improvements shall be completed and accepted by the City prior to, and as a condition of, the City's final inspection of the first unit in the earlier of the Villas Residential Development Parcel or the Cluster/Perimeter Residential Development Parcel. 3.6 Dedications and Improvements. Developer shall offer dedications to the City or other applicable public agency, or complete those public improvements in connection with the Project, as specified in the Conditions of Approval. 394/015610-0061 390243.13 a] 2/17/03 -11- 3.7 Indemnification. a. The Developer agrees to and shall indemnify, hold harmless, and defend, the City and the Agency and their respective officers, officials, members, agents, employees, and representatives, from liability or claims for death or personal injury and claims for property damage which may arise from the acts, errors, and/or omissions of the Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or this Agreement. The foregoing indemnity applies to all deaths, injuries, and damages, and claims therefor, suffered or alleged to have been suffered by reason of the acts, errors, and/or omissions referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications, or both, and regardless of whether or not the insurance policies referred to in this Agreement are applicable. In the event of litigation, the City agrees, at no cost to the City, to cooperate with the Developer. b. In the event of any court action or proceeding challenging the validity of this Agreement or the Revised Mitigated Negative Declaration, the Developer shall indemnify, hold harmless, pay all costs and provide defense for the City in said action or proceeding with counsel chosen by Developer and reasonably approved by the City. The City shall, at no cost to the City, cooperate with the Developer in any such defense as Developer may reasonably request. In the event the Developer fails or refuses to provide such defense of any challenge to this Agreement or the Revised Mitigated Negative Declaration, City shall have the right not to defend such challenge, and to resolve such challenge in any manner it chooses in its sole discretion, including terminating this Agreement. 3.8 Insurance. Before beginning construction on the Site, the Developer shall cause the insurance required under this paragraph to be issued and thereafter to be maintained until one (1) year following the later of (i) the date City issues the last certificate of occupancy needed for the initial occupancy of the last portion of the Project, or (ii) the date the City signs off on the last final inspection of the last of the Project improvements. Developer shall procure and maintain: a, A policy of commercial general liability insurance written on a per occurrence basis in an amount not less than: (A) for death and bodily injury, either (i) a combined single limit of Three Million Dollars ($3,000,000) or (ii) Three Million Dollars ($3,000,000) per person and Three Million Dollars ($3,000,000) per occurrence, and Three Million Dollars ($3,000,000) in the aggregate, and (B) for property damage, Three Million Dollars ($3,000,000) per occurrence. b. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure, and provide legal defense for both the Developer and City against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Developer in the course of carrying out the work or services contemplated in this Agreement. C. A policy of comprehensive automobile liability insurance written on a per occurrence basis in an amount not less than either (i) bodily injury liability limits of Three 394/015610-0061 390243.13 a12/17/03 -12- Million Dollars ($3,000,000) per person and Three Million Dollars ($3,000,000) per occurrence, and property damage liability limits of Three Million Dollars ($3,000,000) per occurrence and Three Million Dollars ($3,000,000) in the aggregate or (ii) combined single limit liability of Three Million Dollars ($3,000,000). Said policy shall include coverage for owned, non -owned, leased, and hired cars. The following additional requirements shall apply to all of the above policies of insurance: (i) All of the above policies of insurance shall be primary insurance and, except the Worker's Compensation insurance, shall name City, the Agency, and their respective officers, officials, members, employees, agents, and representatives as additional insureds. (ii) The insurer shall waive all rights of subrogation and contribution it may have against City, Agency, and their respective officers, officials, members, employees, agents, and representatives, and their respective insurers. (iii) All of said policies of insurance shall provide that said insurance may not be amended or cancelled without providing thirty (30) days' prior written notice to City and Agency. (iv) The policies of insurance required by this Agreement shall not require Developer to meet a deductible of more than Twenty -Five Thousand Dollars ($25,000) unless approved in writing by the City Manager in his or her sole and absolute discretion. In the event any of said policies of insurance are cancelled, the Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the City Manager. Not later than the Reference Date of this Agreement, Developer shall provide the City Manager with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the City Manager. Developer agrees that the provisions of this Section shall not be construed as limiting in any way Developer's indemnity obligations set forth in Section 3.7 or the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. 4.0 CITY' S OBLIGATIONS 4.1 Scone of Subseauent Review/Confirmation_ of Compliance Process. Nothing set forth herein shall impair or interfere with the right of the City to require the processing of building permits as required by law pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of City's Fire Codes and ordinances, Health and Safety Codes and ordinances, and Building, Electrical, Mechanical, and similar building codes. 394/015610-0061 390243.13 a12/17/03 -13- Prior to each request for a building permit, Developer shall provide City with a Compliance Certificate ("Certificate") in a form created by Developer and approved by the City, which shall describe how all applicable Conditions of Approval have been fully complied with. The Certificate shall be distributed to relevant City departments for checking the representations made by Developer on the Certificate. 4.2 Project Approvals Independent. All approvals required for the Project which may be or have been granted, and all land use entitlements or approvals generally which have been issued or will be issued by the City with respect to the Project, constitute independent actions and approvals by the City. If any provision of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement. terminates for any reason, then such invalidity, unenforceability or termination of this Agreement or any part hereof shall not affect the validity or effectiveness of any such Project approvals or other land use approvals and entitlements. In such cases, such approvals and entitlements will remain in effect pursuant to their own terms, provisions, and the Conditions of Approval. It is understood by the parties to this Agreement that pursuant to existing law, if this Agreement terminates or is held invalid or unenforceable as described above, such approvals and entitlements shall not remain valid for the term of this Agreement, but shall remain valid for the term of such approvals and entitlements. 4.3 Review for Compliance. The City shall review this Agreement at least once during every twelve (12) month period following the Effective Date of this Agreement, in accordance with the City's procedures and standards for such review set forth in the City's Development Agreement Ordinance. During such periodic review by the City, the Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to furnish, evidence of good faith compliance with the terms hereof. The failure of the City to conduct or complete the annual review as provided herein or in accordance with the Development Agreement Act shall not impact the validity of this Agreement. If, at the conclusion of the annual review provided for herein, Developer shall have been found in compliance with this Agreement, City, through the City's Community Development Director, shall, at Developer's written request, issue a Certificate of Compliance to Developer stating that (1) this Agreement remains in full force and effect and (2) Developer is in compliance with this Agreement. The Certificate of Compliance shall be in recordable form, and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer, at its option and sole cost, may record the Certificate of Compliance. 5.0 DEFAULT, REMEDIES: DISPUTE RESOLUTION. 5.1 Notice of Default. In the event of failure by either party hereto substantially to perform any material term or provision of this Agreement, the non -defaulting party shall have those rights and remedies provided herein, provided that such non -defaulting party has first provided to the defaulting party a written notice of default in the manner required by Section 8.1 hereof identifying with 394/015610-0061 390243.13 a12/17/03 -14- specificity the nature of the alleged default and the manner in which said default may satisfactorily be cured. 5.2 Cure of Default. Upon the receipt of the notice of default, the alleged defaulting party shall promptly commence to cure, correct, or remedy the identified default at the earliest reasonable time after receipt of the notice of default and shall complete the cure, correction or remedy of such default not later than five (5) days [or thirty (30) days for non -monetary defaults] after receipt of the notice of default, or, for such defaults that cannot reasonably be cured, corrected or remedied within five (5) days [or thirty (30) days for non -monetary defaults], such party shall commence to cure, correct, or remedy such default within such five (5) day period [or thirty (30) day period for non -monetary defaults], shall and continuously and diligently prosecute such cure, correction or remedy to completion. 5.3 City Remedies. In the event of an uncured default by Developer of the terms of this Agreement, the City, at its option, may institute legal action in law or in equity to cure, correct, or remedy such default, enjoin any threatened or attempted violation, or enforce the terms of this Agreement; provided, however, that (i) City and Developer agree that City's right to pursue damages is limited to the then -outstanding loan balance under that certain Note, executed by Developer, as "Maker," in favor of Agency, as "Holder," pursuant to the DDA, and (ii) in no event shall City be entitled to consequential damages for any Developer default. For purposes of this Agreement the term "consequential damages" shall include, but not be limited to, potential loss of anticipated tax revenues from the Project or any portion thereof. Furthermore, the City, in addition to or as an alternative to exercising the remedies set forth in this Section 5.3, in the event of a material default by Developer, may give notice of its intent to terminate or modify this Agreement pursuant to the City's Development Agreement Ordinance and/or the Development Agreement Act, in which event the matter shall be scheduled for consideration and review by the City Council in the manner set forth in the City's Development Agreement Ordinance or the Development Agreement Act. 5.4 Developer's Exclusive Remedy. The parties acknowledge that the City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or any of the matters referred to herein including but not limited to the Development Plan, Conditions of Approvals, the Existing Development Regulations or any future amendments or enactments thereto, or the Project, except as provided in this Section. Accordingly, Developer covenants on behalf of itself and its successors and assigns, not to sue the City for damages or monetary relief for any breach of this Agreement by City or arising out of or connected with any dispute, controversy, or issue between Developer and City regarding this Agreement or any of the matters referred to herein including but not limited to the application, interpretation, or effect of this Agreement, the Development Plan, the Conditions of Approval, the Existing Development Regulations or nay future amendment or enactments thereto, or any land use permit or approval sought in connection with the development of the Project or any component thereof, or use of a parcel or 394/015610-0061 390243.13 a12/17/03 -15- any portion thereof, the parties agreeing that declaratory and injunctive relief, mandate, and specific performance shall be Developer's sole and exclusive judicial remedies. 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE 6.1 Encumbrances on the Project Site. This Agreement shall not prevent or limit the Developer from encumbering the Site or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Site, or a portion thereof or interest therein, is pledged as security, and contracted for in good faith and fair value (a "Mortgage") securing financing with respect to the construction, development, use or operation of the Project. 6.2 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a holder of a beneficial interest under a Mortgage, or any successor or assignee to said holder (a "Mortgagee") [whether pursuant to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination or otherwise] shall be subject to all of the terms and conditions of this Agreement. 6.3 Mortgagee Not Obligated. No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of the Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that (i) the Mortgagee shall have no right to develop or operate the Site, and (ii) to the extent that any covenant to be performed by the Developer is a condition to the performance of a covenant by the City, the performance thereof shall continue to be a condition precedent to the City's performance hereunder. 6.4 Notice of Default to Mortgagee, Right of Mortgagee to Cure. City shall, upon written request to the City, deliver to each Mortgagee a copy of any notice of default given to Developer under the terms of this Agreement, at the same time of sending such notice of default to Developer. The Mortgagee shall have the right, but not the obligation, within five (5) days [or thirty (30) days for non -monetary defaults] after the receipt of such notice from City, to cure, correct, or remedy the default, or, for such defaults that cannot reasonably be cured, corrected, or remedied within five (5) days [thirty (30) days for non - monetary defaults], to commence to cure, correct, or remedy the default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and to continuously and diligently prosecute such cure to completion. If the default is of a nature which can only be remedied or cured by such Mortgagee upon obtaining possession of the Site, such Mortgagee shall have the right to seek to obtain possession with diligence and continuity through foreclosure, a receiver or otherwise, and shall be permitted thereafter to remedy or cure the default within such time as is reasonably necessary to cure or remedy said default but in no event more than thirty (30) days 394/015610-0061 390243.13 a12/17/03 -16- after obtaining possession. If any such default cannot, with diligence, be remedied or cured within such thirty (30) day period, then such period shall be extended to permit the Mortgagee to effect a cure or remedy so long as Mortgagee commences said cure or remedy during such thirty (30) day period, and thereafter diligently pursues and completes such cure. 7.0 TRANSFERS OF INTEREST IN SITE OR AGREEMENT 7.1 Prohibition. The qualifications and identity of the Developer as the developer of high quality commercial developments are of particular concern to the City. Furthermore, the parties acknowledge that the City has negotiated the terms of this Agreement in contemplation of the development and operation of the Project on the Site and the tax revenues to be generated by the operation of the Project on the Site and other benefits accruing to the City from the Project. Accordingly, until the date the Agency, pursuant to the DDA, issues a Release of Construction Covenants for the final Phase of Development (as defined in the DDA) to be constructed on the Site (the "Completion of Construction Date"), (a) no voluntary or involuntary successor in interest of the Developer shall acquire any rights or powers under this Agreement, (b) nor shall the Developer make any total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Site or the Project thereon (collectively referred to herein as a "Transfer"), except as provided in this Section 7. 7.2 Transfers Prior to Completion of Project. Prior to the Completion of Construction Date, the City may approve or disapprove a proposed Transfer in its sole and absolute discretion; provided that the City agrees to reasonably consider a proposed Transfer to an entity in which the Developer or Richard Oliphant retains a minimum of fifty-one percent (51 %) of the ownership or beneficial interest and retains management and control of the transferee entity. The City may condition its approval of such a proposed Transfer prior to the Completion of Construction Date (other than transfers approved pursuant to the immediately preceding sentence) upon the payment of one-half of the net proceeds of the Transfer. Notwithstanding the foregoing, City approval of a Transfer prior to the Completion of Construction Date shall not be required in connection with any of the following: a. The conveyance or dedication of any portion of the Site to the City or other appropriate governmental agency, or the granting of easements or permits to facilitate construction of the Project (as defined herein). b. Any assignment for financing purposes (subject to such financing being permitted pursuant to, and subject to, the DDA), including the grant of a deed of trust to secure the funds necessary for land acquisition, construction and permanent financing of the Project or of a Phase of Development. C. A transfer of any of the Suites Hotel, the Suites Hotel Parcel, the Casitas Development, or the Casitas Development Parcel(s), to Center Point Hotel Development, LLC, a California limited liability company. 394/015610-0061 390243.13 a12/17/03 -17- d. A transfer of the Villas Residential Development Parcel or Cluster/Perimeter Residential Parcel to (i) Ehline Development Co., a California corporation ("Ehline"), or (ii) a limited liability company or limited partnership to be formed by Ehline, and in which Ehline is the managing member of the liability company or the general partner of the limited partnership. e. A transfer of the Sanctuary Villas Development or Sanctuary Villas Parcel(s) to Center Point Sanctuary, LLC, a California limited liability company. f. A transfer of the Medical Office/Clinic or parcel(s) on which that use is developed to Medical Service Center of La Quinta, LLC, a California limited liability company intended to be formed by Developer. In the event of a Transfer by Developer under subparagraphs (a) through (f) above not requiring the City's prior approval, Developer nevertheless agrees that at least thirty (30) days prior to such Transfer it shall give written notice to City of such assignment and satisfactory evidence that the assignee has assumed in writing through an assignment and assumption agreement of all obligations (or specifically listed and defined obligations with respect to Transfers for a portion of the Site) of Developer of this Agreement. In the event such transfer is under subparagraphs (d), or (f) above (other than a transfer to Ehline), Developer shall, along with the notice required to be given pursuant to the immediately preceding sentence, provide City with evidence that such proposed transferee entity has been duly formed in accordance with the laws of the State of California. 7.3 Assignment and Assumption of Obligations. Developer shall provide to City an assignment and assumption agreement in a form reasonably satisfactory to the City's legal counsel for all proposed Transfers requiring the City's approval. 7.4 Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon the Developer and its permitted successors and assigns. Whenever the term "Developer" is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided. 7.5 Assignment b-City. City may assign or transfer any of its rights or obligations under this Agreement with the approval of the Developer, which approval shall not be unreasonably withheld. 8.0 MISCELLANEOUS 8.1 Notices. All notices permitted or required hereunder must be in writing and shall be effected by (i) personal delivery, (ii) first class mail, registered or certified, postage fully prepaid, or (iii) reputable same -day or overnight delivery service that provides a receipt showing date and time 394/015610-0061 390243.13 a12/17/03 -18- of delivery, addressed to the following parties, or to such other address as any party may from time to time designate in writing in the manner as provided herein: To City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Attn: Community Development Director With a copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92626 Attn: M. Katherine Jenson To Developer: CP Development La Quinta, LLC Attn: Richard Oliphant 77-900 Avenue of the States Palm Desert, CA 92211 Telephone: (760) 776-9900 Facsimile: (760) 776-9971 With a copies to: Genesis Hotel Development, LLC 76890 Sandpiper Drive Indian Wells, CA 92210 Attn: Francis A. Wong Telephone: (760) 360-7886 Facsimile: (760) 345-7175 and Selzer, Ealy, Hemphill & Blasdel, LLP 777 E. Tahquitz Canyon Way, Suite 328 Palm Springs, CA 92262 Attn: Emily Perri Hemphill, Esq. Telephone: (760) 320-5977 Facsimile: (760) 320-9507 Any written notice, demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 8.2 Force Majeure. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or failures to perform are due to war, insurrection, strikes, walk -outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, terrorism, epidemics, quarantine restrictions, freight embargoes, governmental restrictions imposed or mandated by other governmental entities, governmental restrictions or priority, unusually severe weather, inability to secure labor, materials, or tools necessary for the Project, delays of any contractor, subcontractor or supplier; acts of another party, acts or the failure to act of any public or governmental agency or entity (except that acts or the failure to act of the City or the Agency shall not excuse performance by the City) or any 394/015610-0061 390243.13 a12/17/03 -19- other causes beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any such cause shall only be for the period of the enforced delay, which period shall commence to run from the time of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the City and the Developer. Notwithstanding the paragraph above, Developer is not entitled pursuant to this Section 8.2 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable construction or permanent financing for the development of the Site, or because of economic or market conditions. 8.3 Binding Effect. This Agreement, and all of the terms and conditions hereof, shall be binding upon and inure to the benefit of the parties, any subsequent owner of all or any portion of the Project or the Site, and their respective assigns, heirs or successors in interest, 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 Site. 8.4 Independent Entity. The parties acknowledge that, in entering into and performing this Agreement, each of the Developer and the City is acting as an independent entity and not as an agent of the other in any respect. 8.5 Agreement Not to Benefit Third Parties. This Agreement is made for the sole benefit of the parties, and no other person shall be deemed to have any privity of contract under this Agreement nor any right to rely on this Agreement to any extent for any purpose whatsoever, nor have any right of action of any kind on this Agreement nor be deemed to be a third party beneficiary under this Agreement. Notwithstanding the immediately preceding sentence, the Agency shall be an intended third party beneficiary to this Agreement. 8.6 Covenants. The provisions of this Agreement shall constitute mutual covenants which shall run with the land comprising the Site for the benefit thereof, and the burdens and benefits hereof shall bind and inure to the benefit of each of the parties hereto and all successors in interest to the parties hereto for the term of this Agreement. 8.7 Nonliability of City Officers and Employees. No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or connection to this Agreement, or for any act or omission on the part of City. 394/015610-0061 _20_ 390243.13 a12/17/03 8.8 Covenant Against Discrimination. Developer and City covenant and agree, for themselves and their respective successors and assigns, that there shall be no discrimination against, or segregation of, any person or group or persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Agreement. Developer shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, et seq.). 8.9 Amendment of Agreement. This Agreement may be amended from time to time by mutual consent of the original parties or such party to which the Developer assigns all or any portion of its interest in this Agreement, in accordance with the provisions of the City's Development Agreement Ordinance and Government Code Sections 65867 and 65868. 8.10 No Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought and referring expressly to this Section. No delay or omission by either party in exercising any right or power accruing upon non-compliance or failure to perform by the other party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either party of any of the covenants or conditions to be performed by the other party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof. 8.11 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that the invalidity or unenforceability does not impair the application of this Agreement as intended by the parties. 8.12 Cooperation in CgMing Out Agreement. Each party shall take such actions and execute and deliver to the other all such further instruments and documents as may be reasonably necessary to carry out this Agreement in order to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. 8.13 Estoppel Certificate. Any party hereunder may, at any time, deliver written notice to any other party requesting such party to certify in writing that, to the best knowledge of the certifying party, (i) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (iii) the requesting party is not in default in the performance of its obligations 394/015610-0061 390243.13 a12/17/03 -21- under this Agreement, or if in default, describing the nature and amount of any such defaults, and (iv) any other reasonable information requested. A party receiving a request hereunder shall execute and return such certificate within ten (10) days following approval of the proposed estoppel certificate by the City Attorney, which approval shall not be unreasonably withheld or delayed. The City Manager, Assistant City Manager, and Community Development Director are each authorized to sign and deliver an estoppel certificate on behalf of the City. City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees. 8.14 Construction. This terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction that might otherwise apply. As used in this Agreement, and as the context may require, the singular includes the plural and vice versa, and the masculine gender includes the feminine and vice versa. 8.15 Recordation. This Agreement shall be recorded with the County Recorder of Riverside County at Developer's cost, if any, within the period required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation or termination of this Agreement, shall be similarly recorded. 8.16 Captions and References. The captions of the paragraphs and subparagraphs of this Agreement are solely for convenience of reference, and shall be disregarded in the construction and interpretation of this Agreement. Reference herein to a paragraph or exhibit are the paragraphs, subparagraphs and exhibits of this Agreement. 8.17 Time. Time is of the essence in the performance of this Agreement and of each and every term and condition hereof as to which time is an element. 8.18 Recitals & Exhibits Incorporated; Entire Agreement. The Recitals to this Agreement and all of the exhibits and attachments to this Agreement are, by this reference, incorporated into this Agreement and made a part hereof. This Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous negotiations, discussions and agreements between the parties, and no parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. 8.19 Exhibits. Exhibits "A" — " E" to which reference is made in this Agreement are deemed appropriated herein in their entirety. Said exhibits are identified as follows: 394/015610-0061 390243.13 a12/17/03 -22- A-1 Legal Description of Site A-2 Site Map B Conditions of Approval C Mitigation Monitoring Program D Park Improvements E Early Entry Agreement 8.20 Counterpart Signature Pages. For convenience the parties may execute and acknowledge this agreement in counterparts and when the separate signature pages are attached hereto, shall constitute one and the same complete Agreement. 8.21 Authority to Execute. Developer warrants and represents that (i) it is duly organized and existing, (ii) it is duly authorized to execute and deliver this Agreement, (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement, (iv) Developer's entering into and performance of its obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound, and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware which could prevent Developer from entering into or performing its obligations set forth in this Agreement. 8.22 City Approvals and Actions. Whenever a reference is made in this Agreement to an action or approval to be undertaken by the City Manager, his or her authorized designee is authorized to act on behalf of the City unless specifically provided otherwise or the law otherwise requires. 8.23 Governing Law; Litigation Matters. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement without regard to conflicts of law principles. Any action at law or in equity brought by any party hereto for the purpose of enforcing, construing, or interpreting the validity of this Agreement or any provision hereof shall be brought in the Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in said county, and the parties hereto waive all provisions of law providing for the filing, removal, or change of venue to any other court. Service of process on City shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside of California. In the event of any action between the parties hereto seeking enforcement of any of the terms of this Agreement or otherwise arising out of this Agreement, the prevailing party in such litigation shall be awarded, in addition to such relief to which such party is entitled, its reasonable attorney's fees, expert witness fees, and litigation costs and expenses. 8.24 No Brokers. Each of the City and the Developer represents to the other party that it has not engaged the services of any finder or broker and that it is not liable for any real estate commissions, 394/015610-0061 390243.13 a12/17/03 -23- broker's fees, or finder's fees which may accrue by means of this Agreement, and agrees to hold harmless the other party from such commissions or fees as are alleged to be due from the party making such representations. [end — signature page follows] 394/015610-0061 390243.13 a12/17/03 -24- IN WITNESS WHEREOF, the Developer and the City have executed this Agreement as of the Reference Date. "DEVELOPER" CP DEVELOPMENT LA QUINTA, LLC a California limited liability company By: Oliphant Family Trust Its: Member By. Richard R. Oliphant Its: Trustee By: Oliphant Enterprises, Inc. Its: Manager By: _ ��" Q — ( r Richard R. Oliphant Its: President "CITY" CITY OF LA QUINTA, a California municipal corporation City Manager .- -EST: OGr k City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson City Attorney 394/015610-0061 -25- 390243.13 a12/17/03 Dec-17-03 11:38am From-RUTAN a TUCKER LLP 714-546-9035 T-293 P.13/17 F-582 IN WITNESS WHEREOF, the Developer and the City have executed this Agreement as of the Reference Date. "DEVELOPER' CP DEVELOPMENT LA QUINTA, LLC a California limited liability company By: Oliphant Family Trust fts: Member By_ Richard R. Oliphant its: Trustee By: Oliphant Enterprises, Inc. Its: Manager By: :�aQ Q— C Richard R. Oliphant Its: President ..CITY„ CITY OF LA QUINTA, a California municipal - co B Y• City Manager ATTEST: Iunee Greek City Clerk APPROVED AS TO FORM A.Kath & TUCKER, LLP (ne4Jens CityAttorney 3MO15010-wdl -25- 3qu243.13 m2/0/03 STATE OF CALIFORNIA ) \ ss COUNTY OF ,�,i ex -b On J" Cem�nloeet \`06as 3 , before me, .JLA- w e ISI C -' e jelc . , personally appearedca\-_cLyvL personally known to me (or 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 acknowledged 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. Witness my hand and official seal. .ublic GMM 118p*ConmS0wJLA2%M �.� r STATE OF CALIFORNIA ) ) ss COUNTY OF -4 e.X' s On..]/e.cur.��r ��, a�3 , before me, .�+.we_. 5• ���� personally appeared —1_tim v%a_S DE "ems v e—se-- personally known to me (or 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 acknowledged 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. Witness my hand and official seal. ublic DUNE S. GREEK Conrnt$ton # 12rA 0 [SEAL] Haksy PW tc - Ccoamb MrCaT.n.e�t.wii�0�t 394/015610-0061 -26- 390243.13 a12/17/03 EXHIBIT "A-1" LEGAL DESCRIPTION OF SITE IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF THE SOUTH HALF OF SECTION 19, TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTER ONE -QUARTER CORNER OF SAID SECTION 19, ALSO BEING AND ANGLE POINT IN THE CENTERLINE OF MILES AVENUE AS SHOWN ON TRACT NO. 23971-1, ON FILE IN BOOK 213 AT PAGES 25 THROUGH 30, INCLUSIVE, OF MAPS, RIVERSIDE COUNTY RECORDS; THENCE SOUTH 00027'38" EAST, A DISTANCE OF 75.00 FEET TO A LINE PARALLEL WITH AND 75.00 FEET SOUTHERLY OF SAID CENTERLINE OF MILES AVENUE AND THE TRUE POINT OF BEGINNING; THENCE NORTH 89033'22" EAST ALONG SAID PARALLEL LINE, A DISTANCE OF 960.27 FEET; THENCE NORTH 00026'40" WEST, A DISTANCE OF 20.00 FEET TO A LINE PARALLEL WITH AND 55.00 FEET SOUTHERLY OF SAID CENTERLINE OF MILES AVENUE; THENCE NORTH 89033'22" EAST ALONG LAST SAID PARALLEL LINE, A DISTANCE OF 80.00 FEET; THENCE SOUTH 0002640" EAST, A DISTANCE OF 112.88 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE WESTERLY AND HAVING A RADIUS OF 440.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 41 °42'33", AN ARC DISTANCE OF 320.30 FEET; THENCE NON -TANGENT TO SAID CURVE SOUTH 44044'32" EAST, A DISTANCE OF 90.06 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 80.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 45027'41 ", AN ARC DISTANCE OF 63.48 FEET; THENCE TANGENT TO SAID CURVE NORTH 89047'47" EAST, A DISTANCE OF 239.56 FEET TO A POINT ON THE EASTERLY LINE OF PARCEL "C" AS DESCRIBED IN DEED TO STAMKO DEVELOPMENT CO. RECORDED MAY 16, 1994 AS INSTRUMENT NO. 108979, O.R. THENCE SOUTH 00012'13" EAST ALONG SAID EASTERLY LINE, A DISTANCE OF 790.73 FEET TO AN ANGLE POINT THEREIN; 394/015610-0061 390243.13 a12/17/03 -1- x, THENCE SOUTH 43056'42 WEST ALONG THE SOUTHEASTERLY LINE OF SAID PARCEL "C", A DISTANCE OF 510.61 FEET TO A POINT ON A NON -TANGENT CURVE, CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 4565.17 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 42059'27" EAST; THENCE NORTHWESTERLY ALONG SAID CURVE AND THE SOUTHWESTERLY LINE OF SAID PARCEL "C" THROUGH A CENTRAL ANGLE OF 02057'46", AN ARC DISTANCE OF 236.07 FEET; THENCE NON -TANGENT TO SAID CURVE SOUTH 00017'57" EAST ALONG AN EASTERLY LINE OF SAID PARCEL "C" A DISTANCE OF 11.03 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT A, BEING ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF THE COACHELLA VALLEY WATER DISTRICT FLOOD CHANNEL AS SHOWN ON C.V.W.D. RIGHT-OF-WAY STATUS MAP DATED APRIL 4, 1968, DRAWING NO. 1758-10; THENCE CONTINUING SOUTH 00017'57" EAST ALONG LAST SAID EASTERLY LINE OF PARCEL "C", A DISTANCE OF 386.46 FEET; THENCE NORTH 48009'56" WEST ALONG THE SOUTHWESTERLY LINE OF SAID PARCEL "C", A DISTANCE OF 22.00 FEET TO AN ANGLE POINT THEREIN; THENCE CONTINUING ALONG THE SOUTHWESTERLY LINE OF SAID PARCEL "C" AND ITS NORTHWESTERLY PROLONGATION NORTH 64021'03" WEST, A DISTANCE OF 444.84 FEET TO AN ANGLE POINT IN THE SOUTHWESTERLY LINE OF PARCEL 2 AS DESCRIBED IN DEED TO THE LA QUINTA REDEVELOPMENT AGENCY RECORDED AUGUST 4, 1995 AS INSTRUMENT NO.255528, O.R. THENCE NORTH 58014'00" WEST ALONG SAID SOUTHWESTERLY LINE OF PARCEL 2, A DISTANCE OF 320.54 FEET TO A POINT ON A NON -TANGENT CURVE, CONCAVE WESTERLY AND HAVING A RADIUS OF 2072.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 86011'26" EAST; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 11 005'41 ", AN ARC DISTANCE OF 401.22 FEET; THENCE NON -TANGENT TO SAID CURVE NORTH 75033'02" EAST, A DISTANCE OF 4.22 FEET TO A POINT ON AFOREMENTIONED NORTHEASTERLY RIGHT-OF-WAY LINE OF THE COACHELLA VALLEY WATER DISTRICT FLOOD CHANNEL, SAID LINE BEING A NON -TANGENT CURVE, CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 2500.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 17033'23" EAST; THENCE SOUTHEASTERLY ALONG LAST SAID CURVE THROUGH A CENTRAL ANGLE OF 00032'28", AN ARC DISTANCE OF 23.61 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT B, SAID POINT ALSO BEING ON A NON -TANGENT CURVE, CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 2092.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 75053'46" EAST; 394/015610-0061 390243.13 a12/17/03 -2- THENCE NORTHWESTERLY ALONG LAST SAID CURVE THROUGH A CENTRAL ANGLE OF 07041'06", AN ARC DISTANCE OF 280.60 FEET; THENCE NON -TANGENT TO SAID CURVE SOUTH 67006-56" WEST, A DISTANCE OF 20.00 FEET TO A POINT ON A NON -TANGENT CURVE, CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 2072.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 68013' 18" EAST; THENCE NORTHWESTERLY ALONG LAST SAID CURVE THROUGH A CENTRAL ANGLE OF 02012'44", AN ARC DISTANCE OF 80.00 FEET; THENCE NON -TANGENT TO SAID CURVE NORTH 67006'56" EAST, A DISTANCE OF 20.00 FEET TO A POINT ON A NON -TANGENT CURVE, CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 2092.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 66001'12" EAST; THENCE NORTHWESTERLY ALONG LAST SAID CURVE THROUGH A CENTRAL ANGLE OF 19058'08", AN ARC DISTANCE OF 729.11 FEET; THENCE NON -TANGENT TO SAID CURVE NORTH 00028'37" WEST, A DISTANCE OF 153.41 FEET TO A POINT ON A LINE PARALLEL WITH AND 75.00 FEET SOUTHERLY OF THE AFOREMENTIONED CENTERLINE OF MILES AVENUE; THENCE NORTH 89031'23" EAST ALONG SAID PARALLEL LINE, A DISTANCE OF 487.01 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION LYING SOUTHWESTERLY OF SAID NORTHEASTERLY RIGHT-OF-WAY LINE OF THE COACHELLA VALLEY WATER DISTRICT FLOOD CHANNEL, SAID LINE BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT AFOREMENTIONED POINT A IN SAID NORTHEASTERLY RIGHT-OF- WAY LINE, SAID POINT BEING ON A NON -TANGENT CURVE, CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 2500.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 36057'27" EAST; THENCE NORTHWESTERLY ALONG SAID CURVE AND SAID NORTHEASTERLY RIGHT-OF-WAY LINE THROUGH A CENTRAL ANGLE OF 18051'35", AN ARC DISTANCE OF 822.91 FEET TO AFOREMENTIONED POINT B. SUBJECT TO ALL RIGHTS -OF -WAY AND EASEMENTS OF RECORD. COMPRISING 42.47 ACRES (1,850,000 SQUARE FEET), MORE OR LESS. 394/015610-0061 390243.13 a12/17/03 -3- P.O.C. CTR. 1 /4 COR. SEC. 19 S 00 `E MILES AVENUE 75.00' - 5.00 N 89.31' 3" E 487.01' N 89'3' N 00'28'37 W 153.41' 'n T.P.O.B. !y9 sy S 0V26'40" E 112.88' S 44'44.32" E %�j 90,06, C 0 r 2 N 89'4T47" E SITE 239.56' to N s6'(R'1 " AREA-42.47 AC. " L4 PORTION OF THE S. 1 /2 OF 1 " n SEC. 19, T.5S., R.7E., S.B.M. (R) n L5 N 75'53'46" E r R vPR\ES L3 PT. B 1 "=300' kw�R/W 1 �T33'3" C�0 N 866E , C, R F c4 R LINE DATA '03, NUMBER 'DIRECTION DISTANCE L1 S 00'18 01 E 397.49 L2 N 48.09'56" W 22.00' L3 N 75.33'02" E 4.22' L4 N 67'06'56" E 20.00' L5 S 6706 56" W 20:o0' L6 N 00'2W_4 ,W 20.00' L7 I N 89'33.22" E . 8.0.00' II EXCEPTION ro PARCEL PT. A N 36'57.27" E N (R) CURVE DATA 1 NUMBER DELTA RADIUS JARC LENGTH TANGENT C1 41'42'33" 440.00 320.30 167.62 02 45.27'41 " 80.00 63.48 33.52 C3 0757'46" 4565.17 236.07 118.06 C4 19'24'03" . 2500.00 846.52 427.35 C5 11'05'.41" 2072.00 401.22 201.24 C6 19*58'08" 2092.00 729.11 368.29 C7 0712'44" .2072.00, 80.00 140.01 G8 07.41'06" 2092.00 280.60 140.51 C9 00'32'28" 2500.00 23.61 111.81 C l o 18'5`I'35" 2600.00 822.91 1415.21 ' w L2 CIOeti Fqr� Z J.N. 1612 394/015610-0061 390243.13 a12/17/03 _4_ EXHIBIT "A-2" SITE MAP The Site Map is not a tract map and the parcels depicted there are not legal parcels. Upon Developer's preparation of a tract map that creates legal parcels substantially consistent with the Site Map, Developer shall prepare legal descriptions for each of the Suites Hotel Parcel, the Casitas Development Parcel(s), the Villas Residential Development Parcel, the Cluster/Perimeter Residential Development Parcel, the Medical Office/Surgical Facility Parcel(s), and the Sanctuary Villas Parcel(s), and Agency and Developer shall cooperate to attach such legal descriptions to any document where such legal descriptions are required. LOTS LANDUSE *LOT LOT t -RESTAURANT - °•34 LOT 2 - RESORT CASITAS *LOT •D• 149M s.l. 0.34 x LOT 3 - RESORT CASITAS LOT 1 ISO V. LOT 4 - RESORT CASITAS 0.99 °C' LOT 5. - RESIDENTIAL *LOT 8 - PARK LOT 7 RESIDENTIAL *LOT'C• 14n7 Ff. LOT 8 THE SANCTUARY 0.W «• 4 LOT 9 - THE SANCTUARY LOT10 ' MEDICAL OFFICE BUILDINGS LOT 11 MEDICAL OFFICE BUILDINGS LOT 12 " MEDICAL OFFICE. BUILDINGS LOT 13-- RESTAURANT LOT 14 " -HOTEL * LOT 'E 54ee V 0.13 «. COMMON LL,QTS LAND USE LOT 'A - - - - - MEDICAL OFFICE PARKING / LANDSCAPE LOT 'B - - - - - - - SEELEY. DRIVE *LOT .'C- - - - - - - 20' PARKWAY.(WASHNOTON STREET) * LOT '1 - - - " - CITY LANDSCAPE ENTRY *LOT •E- - - - 20' PARKWAY (WASHINGTON STREET) LOT •F -. - - - WELLSITE * LOT •G -- " " WELLSITE (N.A.P.) * LOT •H - - - 20' PARKWAY (MILES AVENUE) *LOT 'r - - - - - - 20' PARKWAY (MILES AVENUE) * sm af. MILES AVENUE 0.12 «. LOT 3 1 O 72 ..f. LOT 4 11991 Of. LOT 14 LOT 2 145994 ..f. OOL34 J 3.35 «. 1.27 «. LOT 13 40013 J. 1.12 «. LOT 'A• zeroes .J. LOT 12 0.47 «. 3157O35 f. CL LOT 10 315e5 .f, LOT 11 0.73 «. sxuof. LOT 'A• OT 'F' ZQ 66441 f. LOT 9 «f. * Thm pwc& are not being conveyed by the 1A Quint& Redeveloputent Agency' They we depicted on this Site Map for convenience of reference only. r V LOT •G• z00.51. LOT p a. 2 O *LOT 8 2.68 au 5: ld U tl C 7 s 0 LOT 7 3Oaf. e.99.w «. U \ U IM � LOTS 1W122 a/. Q# 1111� 3.74 x 4'ORe N.T.S. NOVEMBER 21, 2003 394/015610-0061 390243.13 a12/17/03 - 1 - EXHIBIT "B" CONDITIONS OF APPROVAL CITY COUNCIL RESOLUTION NO.2003-035 CONDITIONS OF APPROVAL - FINAL SPECIFIC PLAN 2001-055, AMENDMENT #1 ADOPTED: JUNE 3, 2003 The Specific Plan document shall be modified to include the following: The developer shall submit five final documents to the Community Development Department prior to issuance of any permits. 1. The Developer agrees to defend, indemnify and hold harmless the City of La Quinta (City), its agents, officers and employees from any claim, action or proceeding to attack, set aside, void, or annul the approval of this Specific Plan, or any other application pertaining thereto. The City shall have sole discretion in selecting its defense counsel. 2. Add to the Development Standards for Tourist Commercial, page 6, and Office Commercial, Page 8, that the first 150 feet along Washington Street is limited to structure heights of 22 feet. 3. Change, on Page 5 of the Specific Plan, Land Use Area I- 19.51 acre to 19.12- acre. 4. Change, on page 6 of the Specific Plan, Land Use Area II- 11.32 acre to 11.10- acre. 5. Add to Page 6 of the Specific Plan, Tourist Commercial Development Standards - "Minimum perimeter building/landscape setback (in feet) from Cluster Villas at the corner of Miles Avenue and Seeley Drive-18/10." 6. Add the following footnote to Page 6 of the Specific Plan, Tourist Commercial Development Standards- Resort Casitas Maximum building height (ft.) 33*; *within the first 60' along Miles Avenue, measured from the south side of the 20' landscape setback parcel, the Maximum height of the Resort Casitas units is 22'; within the next 60' to 150' along Miles Avenue, the Maximum height of the Resort Casitas units is 26'; the height may be 33' outside the 150' setback. 7. Change, on Page 7 of the Specific Plan, Medium Density Residential (RM) Development standards- Attached Dwelling Units to Two-story Courtyard Single Family Homes. 8. Eliminate on Page 7, Two-story Courtyard single family homes standard for the minimum perimeter building/landscape setback from Tourist Commercial (casita units) 5 feet. 394/015610-0061 390243.13 a12/17/03 -1- 9. Add on, Page 7, Two-story Courtyard single-family homes standard, Interior street building/landscape setback 20 feet. 10. Add on, Page 7, Two-story Courtyard single-family homes standard, minimum front yard setback 20 feet. 11. Change, on Page 7A of the Specific Plan, Medium Density Residential (RM) Development standards- Single Family Cluster Courtyard to One- and Two -Story Single Cluster Courtyard Villas. 12. Page 7A. Single Family Cluster Courtyard Dwelling Units Standards. Add an Interior street building/landscape setback of 20 feet. 13. Page 7A. Single Family Cluster Courtyard Units. Change the setback from Tourist Commercial (casita units) from 5 feet to 10 feet. 14. Page 7A. Single Family Cluster Courtyard Dwelling Units Standards. Change the minimum perimeter building/landscape setback from Tourist Commercial District from 5 feet to 10 feet. 15. Add the following footnote to Page 7A of the Specific Plan, Medium Density Residential (RM) Development standards- One- and Two -Story Single Cluster Courtyard Villas Building Height 28 ft*; *within the first 60' along Miles Avenue, measured from the south side of the 20' landscape setback parcel, the Maximum height of the One- and Two -Story Single Cluster Courtyard Villas units is 22'; within the next 60' to 150' along Miles Avenue, the Maximum height of the One- and Two -Story Single Cluster Courtyard Villas units is 26'; the height may be 28' outside the 150' setback.. 16. Page 16. On -Site Improvements. Move the last bullet point, The Public Works Department shall consider the option to install a left turn pocket for Seeley Drive southbound, north of Miles Avenue to the off -site improvement section. 17. Exhibit B and F is for illustrative purposes and is subject to modification based upon the development standards in this Specific Plan and applicable Zoning Development Standards. 18. Page 8. Land Use Area IV. Add C. Prohibited Uses: 1. Helicopter Landing Areas; and, 2. Emergency Center. 19. Change, on Page 8 of the Specific Plan, Land Use Area III- 3.02-acre to 2.68- acre. 20. Change, on page 8 of the Specific Plan, Land Use Area IV- 9.73-acre to 9.22- acre. 21. Comply with the Coachella Valley Water District Letter dated January 30, 2002, Attachment A, unless modified by the District. 394/015610-0061 390243.13 a12/17/03 -2- 22. Streets shall be 28 feet wide with 12 foot setbacks with no parking on one side of the street for the One and Two Story Courtyard Villas located north of Seeley Drive and west of the Park. 23. The grading plan shall be approved with the site development permit by the Planning Commission. 24. The HOA shall maintain all common area landscaping in perpetuity. 25. The landscaping shall comply with the Water Efficiency Ordinance. 26. The boundary between the residential development and the park may be designed with compatible uses. 27. Eliminate the last paragraph on Page 22 under Circulation Element. 28. Add Exhibits B-1 (Concept Plan- Development Parceling), B-2 (Concept Plan - Medical & Surgical Center), and B-3 (Concept Plan- Boutique Hotel) to the Specific Plan 394/015610-0061 390243.13 a12/17/03 -3- Addendum for Environmental Assessment 2001-436 Planning Commission Resolution 2002-017 City Council Resolution 2002-07 I.a)&c) The proposed project occurs at a high topographic point in the city, and is bordered on the east and north by single family residential development. In order to assess the potential impacts to the viewshed of these single family residential units, a visual impact simulation was conducted.' The simulations were conducted for views from the east and south to the west, and from the north and east to the south and west. The analysis clearly demonstrates that the scale of the proposed project will not eliminate the views of existing or future residential units to the surrounding mountains. The impacts of structures on the project site will be less than significant. III. a) & d) Air quality in the Coachella Valley and the City is primarily affected by vehicular emissions. The development of this project could generate up to 6,170 average daily trips. Based on this trip generation, the project at buildout will generate the following ~%l L itante Running Exhaust Emissions ounds/da PM10 PM10 PM10 CO ROC NOx Exhaust Brakes Tires 50 mph 223.1 8.58 45.76 -- 0..95 0.95 Daily Threshold* 550 75 100 150 Based on 6,170 trips/day and average trip length of 7 miles, using EMFAC7G Model provided by California Air Resources Board. Assumes catalytic light autos at 75°F. * Operational thresholds provided by SCAQMD for assistance in determining the significance of a project and the need for an EIR. As demonstrated above, the operational impacts associated with air quality on the project site are expected to be less than significant. III.c) The Coachella Valley is a non -attainment area for PM10 (particulate matter of 10 microns or smaller). The construction of the proposed project has the potential to generate dust, which could contribute to the PM 10 problem in the area. In order to control PM10, the City has imposed standards and requirements on development to control dust. The applicant will be required to submit such a plan prior to initiation of any 1 Visual Impact Simulations, The Keith Companies, December 2001. 2 "La Quinta Gateway Traffic Impact Analysis," prepared by Urban Crossroads, December 2001. 394/015610-0061 390243.13 a] 2/17/03 -1- earth moving activity at the site. In addition, the potential impacts associated with PM10 can be mitigated by the mitigation measures below. Construction equipment shall be properly maintained and serviced to minimize exhaust emissions. 2. Existing power sources should be utilized where feasible via temporary power poles to avoid on -site power generation. 3. Construction personnel shall be informed of ride sharing and transit opportunities. 4. Cut and fill quantities will be balanced on site. 5. Any portion of the site to be graded shall be pre -watered to a depth of three feet prior to the onset of grading activities. 6. Watering of the site or other soil stabilization method shall be employed on an on- going basis after the initiation of any grading activity on the site. Portions of the site that are actively being graded shall be watered regularly to ensure that a crust is formed on the ground surface, and shall be watered at the end of each work day. 7. All disturbed areas shall be treated to prevent erosion until the site is constructed upon. Pad sites which are to remain undeveloped shall be seeded with either a desert wildflower mix or grass seed, or chemical stabilizer. 8. Landscaped areas shall be installed as soon as possible to reduce the potential for wind erosion. Perimeter landscaping on Avenue 52 and Jefferson Street, and the retention basin landscaping shall be completed with the first phase of development. 9. SCAQMD Rule 403 shall be adhered to, insuring the clean up of construction - related dirt on approach routes to the site. 10. All grading activities shall be suspended during first and second stage ozone episodes or when winds exceed 25 miles per hour. 11 All buildings on the project site shall conform to energy use guidelines in Title 24 of the California Administrative Code. With the implementation of these mitigation measures, the impacts to air quality from buildout will not be significant. IV. a) The proposed project is within the mitigation fee area for the Coachella Valley Fringe - toed Lizard Habitat Conservation Plan, and will be required to pay fees to mitigate the potential impact on this species. The payment of the fees serves to mitigate the impacts to a less than significant level. 394/015610-0061 390243.13 a12/17/03 -2- V.b)&d) Several cultural resource studies were completed for the subject property.3 The surveys included extensive testing and the excavation of a cremation site. The work done on the site to date has been comprehensive, but additional resources may be buried within the project area. As a result, to ensure that the potential impacts to cultural resources are mitigated, the following mitigation measure shall be implemented: 1. During any and all earth moving activities on any portion of the project site, a qualified archaeological monitor shall be present. The monitor shall be empowered to stop or redirect activities on the site should a resource be identified. A final report shall be filed with the Community Development Department prior to issuance of a certificate of occupancy for any building on the project site. VI. a) ii) A geotechnical investigation was completed for the project site a The site occurs in a seismic Zone IV. The site, as with the balance of the City, will be subject to strong ground shaking during a seismic event. The City has implemented standards in the Uniform Building Code to ensure the highest construction standards are applied to protect against seismic hazard. These standards are expected to ensure that impacts associated with seismic ground shaking are reduced to a less than significant level. IX. b) The proposed General Plan Amendment and Change of Zone will change the land uses on the project site from High Density Residential and Park to Tourist Commercial, Medium Density Residential, and Park. The surrounding land use designations include Park, Low Density Residential and Watercourse. The change in land use represents a natural extension of the land use plan, insofar as it places more intense land use (Tourist Commercial) at the intersection of Miles and Washington, and steps down the land use intensity as it proceeds easterly. The Medium Density Residential will be an effective buffer to the existing and future low density development to the east and south. The existing High Density Residential designation is a relatively intense land use, which would not have been buffered from the Low Density development to the east. The proposed General Plan and Change of Zone will therefore represent a less than significant impact on the land use pattern in the City. 3 "Archaeological Monitoring Report, Miles Avenue Borrow Site," prepared by CRM Tech, July 2001; "Final Report Archaeological Mitigation of Project Effects to a Native American Cremation Found on Parcel Map No. 26860," prepared by CRM Tech, February 2001; "Final Report Archaeological Testing and Site Evaluation on Parcel Map No. 26860," prepared by CRM Tech, June 2000; "Phase I Archaeological Assessment of 54.65 Acres at the Southeast Corner of Washington Street and Miles Avenue," prepared by Archaeological Advisory Group, June 1999. 4 "Geotechnical Engineering Report," prepared by Earth Systems Southwest, November 2001. 394/015610-0061 390243.13 a12/17/03 -3- XI. a) A noise study was completed for the proposed project.5 The project site is currently subject to high noise levels, and will continue to be impacted by noise as the project build out. The noise levels will not be reduced to City standards without mitigation. In order to achieve acceptable noise levels for the hotels and townhomes on the subject property, the noise study proposes several setback areas for the construction of sound walls, depending on the site design. These mitigation measures include sound walls and/or berms ranging from 0 to 10 feet in height, and are variable depending on the finish grade of the individual sites within the project. With the implementation of the mitigation measures included in the noise study, however, noise levels on the site at buildout can be reduced to an acceptable level. Since no Site Development Permit is proposed at this time for any portion of the site, and specific mitigation cannot therefore be evaluated, the following mitigation measures shall be implemented: 1. Any site development permit submitted for any portion of the site shall either: a) Demonstrate conformance with the mitigation measures provided in the "Revised Preliminary Acoustical Analysis" prepared by Gordon Bricken & Associates on December 6, 2001; or b) Submit a noise study specifically prepared for that site development permit which demonstrates that the noise levels can be reduced on the site to the noise standards in effect at the time of submittal of the application. XIII. a) The proposed development will have a less than significant impact on public services. All areas of the proposed Specific Plan will be served by the County Sheriff and Fire Department, acting under City contract. Site development will generate property tax, transient occupancy tax and sales taxes which will offset the costs of added police and fire services. The project will be required to pay the mandated school fees as development occurs. These fees mitigate the students generated, and offset the impacts to schools. The collection of property tax, and the generation of sales tax will generate revenues to the City to offset the added costs associated with the provision of municipal services. The project will be required to participate in the City's Impact Fee Program, which helps to offset roadway improvement costs. XV. a) A traffic study was conducted for the proposed project. 6 The study found that buildout of the proposed project would generate up to 6,170 average daily trips, of which 310 would 5 "Revised Preliminary Acoustical Analysis," prepared by Gordon Bricken & Associates, December 2001. 6 "La Quinta Gateway Traffic Impact Analysis," prepared by Urban Crossroads, December 2001. 394/015610-0061 390243.13 a12/17/03 -4- occur during the AM peak, and 465 during the PM peak hour. The volume generated by the proposed project, combined with the growth in traffic volumes on City streets from other project in the area resulted in recommended mitigation measures in the study in order to maintain City level of service standards. These mitigation measures are enumerated below: 1. Miles Avenue and Washington Street shall be constructed to their full half -width right-of-way with development of the first phase of the project. 2. A traffic signal shall be installed at the intersection of Seeley Drive and Miles Avenue in conjunction, as warranted. 3. Access to the project from Washington Street shall be limited to right -in, right -out only. 4. Left turn pocket on Seeley Drive, accessing westbound Miles Avenue, shall be a minimum of 100 feet in length. Left turn pocket on westbound Miles Avenue, accessing southbound Seeley Drive, shall be a minimum of 150 feet in length. With the implementation of these mitigation measures, impacts of the project on the City's circulation system shall be less than significant. XVI. a)-f) The buildout of the site will require service from utility providers. The overall impacts on these services is not expected to be significant, insofar as these suppliers will charge the businesses and residents for their services, and provide improvements to these services as needed. In addition, connection fees will be required at construction of any project. These fees and charges will mitigate the potential impacts to a less than significant level. 394/015610-0061 390243.13 a12/17/03 -5- EXHIBIT "C" MITIGATION MONITORING PROGRAM PROJECT MONITORING CHECKLIST (CEQA Mitigation Measures) CITY OF LA QUINTA MONITORING PROGRAM FOR CEQA COMPLIANCE DATE: December 5, 2001 ASSESSORS PARCEL NO.: CASE NO.: GPA 2001-083, ZC 2001-105, PROJECT LOCATION: SP 2001-055 EA/EIR NO: 2001-436 APPROVAL DATE: APPLICANT: City of La Quinta Southeast corner of Washington Street and Miles Avenue In Process THE FOLLOWING REPRESENTS THE CITY=S MITIGATION MONITORING PROGRAM IN CONNECTION WITH THE MITIGATED NEGATIVE DECLARATION FOR THE ABOVE CASE NUMBER SUMMARY RESPONSIBLE FOR TIMING CRITERIA COMPLIANCE DATE MITIGATION MONITORING CHECKED BY MEASURES ITT ATT? (NTAT.TTV Maintain construction Contractor. Project Construction. SCAQMD standards. equipment. Utilize temporary power. City Engineer. Prior to issuance of IID standards. grading permits. Balance cut and fill on site. City Engineer. Project Construction. Municipal Code. Pre -water and stabilize Building Department. Prior to issuance of PM10 Management soils. building ermits. Plan. Provide alternative Community Prior to the issuance of TDM ordinance. transportation. Development grading permits. Department. V_ CULTURAL RESOURCES MEASURE• Archaeological monitor to Community During earth moving. City standards for be on site during earth Development and cultural resource moving. Public Works analysis. Departments. 394/015610-0061 390243.13 a12/17/03 SUMMARY RESPONSIBLE FOR TIMING CRITERIA COMPLIANCE DATE MITIGATION MONITORING CHECKED BY MEASURES v1 ivnie'v Conform to December 6, Community Site Development Project review, 2001 Gordon Bricken & Development Permit review Plan inspection. Associates noise Department, Building check. mitigation measures. Department. Alternatively, submit Community Site Development Project review. revised noise analysis, Development Permit review. conforming to City Department. standards. VV TDA1111r AN71r1Dr11i.AT1nN Construct Miles & City Engineer. Project Construction. Inspection. Washington to ultimate right-of-ways. Install traffic signal at City Engineer. Construction or Plan check. Seeley and Miles. warrants. Limit access on City Engineer. Plan Check. City standards for Washington to right -in, access. right -out. Left turn pockets to be 100 City Engineer. Plan Check. City standards for foot minimum on Seeley to roadway Miles and 150 foot improvements. minimum on Miles to Seeley. 394/015610-0061 390243.13 a12/17/03 -2- EXHIBIT "D" PARK IMPROVEMENTS The Park Improvements shall include all of the following: Appropriate irrigation, turf, landscaping and walkways. All hardscape shall be handicap accessible. 2. A 20,000 square foot dog park which contains: (1) A six foot high wrought iron fence around the entire park perimeter, with the wrought iron fencing 2 inches on center 2 feet from the bottom, and 4 inches on center 4 feet from the lower section to the top, and which contains a top rail. The fence shall be centered on a 4-inch mow curb. (2) The park area is to be divided, by fencing that meets the specifications listed in (1) above, into two sections, with one section containing approximately 12,000 square feet, and the other section containing approximately 8,000 square feet. (3) A double -entry gate system leading to both sections that is handicap accessible. (4) A 6-foot wide maintenance gate into each section. (5) *Two drinking fountains, to be acquired from Most Dependable Fountains (1- 800-831-3606; Model #400SM), with one fountain to be installed in each section of the dog park. (6) *Two benches, to be acquired from Playworld Systems (1-800-669-2585; Model #ZZXX 1410), with one bench to be installed in each section of the dog park. (7) *Two shade structures to be installed over the benches described in (6) above, to be acquired from Shade Structures (1-800-50 SHADE) (must contain dimensions of10'X10'). (8) *Two trash containers, to be acquired from Playworld Systems (Model #ZZXX 1414, ZZXX 1415, ZZXX 1418, or ZZXX8060), with one trash container to be installed in each section of the dog park. 3. A 5,000 square foot playground, which contains: (1) A handicap accessible entry into the play area. (2) *One playground structure designed for ages 2-12 years, to be acquired from Playworld Systems (Model #500-0103). (3) *One arch swing with two bays, to be acquired from Playworld Systems (Model #SWING ARCH 500, #SWING ARCH 500-ADD). (4) One wood product, to be acquired from Sof Fall Engineered Wood Fiber with felt layer and swing/slide mats to be installed to meet industry standards for safety. (5) One spring animal, to be acquired from Playworld Systems (Model #ZZXX0585 Speedy Racer). (6) *One play panel, to be acquired from Playworld Systems (Model #ZZPD-SHOP). (7) *One drinking fountain, to be acquired from Most Dependable Fountains (Model #440SM (Hi Lo)), to be installed near the playground structure. 394/015610-0061 390243.13 a]2/17/03 (8) *Two benches, to be acquired from Playworld Systems (Model #ZZXX1410), to be installed facing the playground structure. (9) *Two shade structures to be installed over the benches, to be acquired from Shade Structures (must contain dimensions of 10' X 10'). (10) *One trash container, to be acquired from Playworld Systems (Model #ZZXX1414, ZZXX1415, ZZXX1418, or ZZXX8060), to be installed near the playground structure. *Colors to be determined by City staff at time of order. 394/015610-0061 2 390243.13 a12/17/03 EXHIBIT "E" FORM OF EARLY ENTRY AGREEMENT This Early Entry Agreement ("Agreement") is entered into as of , 2003, by and among the CITY OF LA QUINTA, a municipal corporation and a charter city organized and existing under the Constitution of the State of California ("City"), and CP DEVELOPMENT LA QUINTA, LLC., a California limited liability company ("Developer"), with reference to the following facts: RECITALS: A. City is the present owner of that certain property located in La Quinta, California, identified as "Lot 6" on the site map attached hereto and incorporated herein as Exhibit "A" (the "Property") B. City and Developer have executed and entered into that certain Development Agreement, with a Reference Date of 2003, ("Development Agreement") pursuant to which Developer agrees, among other obligations, to enter upon the Property and construct and install the "Park Improvements" as described in Exhibit E to the Development Agreement. C. Pursuant to its obligation under the Development Agreement to construct and install the Park Improvements on the Property, Developer has now requested the right to enter onto and about the Property to perform the Park Improvements (hereinafter, the "Permitted Work") and City is willing to allow such entry on the terms and conditions hereinafter specified. AGREEMENT: NOW, THEREFORE, in consideration of the covenants and agreements contained herein and other valuable consideration, the sufficiency and receipt of which are hereby acknowledged by the parties hereto, the parties covenant and agree as follows: 1. Grant of License. City hereby grants to Developer and its employees, agents, consultants, and contractors ("Related Parties") a license for the term set forth in Paragraph 3 ("License") to enter upon the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, for the purposes of the Permitted Work. Notwithstanding the above, at least forty-eight (48) hours prior to any of the Related Parties' first entry onto the Property to commence the Permitted Work, Developer shall notify City of its intention of the same, and shall thereafter provide such notice before again entering the Property if there is an interruption of such initial entry for a period of even (7) consecutive days (excluding interruptions for events of enforced delay as defined in Section 8.2 of the Development Agreement). Said notice shall be provided by facsimile, addressed to the person listed in Section 8.8 hereof at the number provided therein. City may reject any proposed entry by providing telephonic notification to Developer to the person listed in Section 8.8 hereof, at the number provided therein, at any time prior to the time of the proposed entry. City has full right, title and authority to grant Developer the License for the Permitted Work, and no third party permission or consent is needed in connection therewith. Such License 394/015610-0061 3 390243.13 a12/17/03 shall be non -revocable for the Term defined in Paragraph 3 below, except as otherwise set forth herein. City specifically agrees that Developer shall have access to and be entitled to perform the Permitted Work on all portions of the Property, provided, however, that neither Developer nor any of the Related Parties shall interfere with any other real or personal property, or enter upon any other real property, without first obtaining the written consent of the owner(s) of such other real or personal property. 2. City's Authority to Revoke. City may revoke this License upon two (2) days written notice to Developer delivered in accordance with Subparagraph 8.8 below in the event: (i) in the reasonable judgment of City, such revocation is necessary to protect the public health, safety, or welfare pursuant to the exercise of City's police powers; or (ii) Developer is in violation of the terms of this Agreement or any applicable law, statute, ordinance, rule, or regulation pertaining to the Permitted Work or Developer's or the Related Parties' entry upon the Property pursuant to this Agreement, and Developer has failed to cure such violation within two (2) days following Developer's receipt of notice of such violation from City. 3. Term. Unless earlier revoked or terminated pursuant to the provisions of this Agreement, the term of the License shall commence on full execution hereof and shall terminate on the earlier of (i) City's final inspection of and approval of the Permitted Work, or (ii) one hundred twenty (120) days from the date hereof. 4. Repair and Restoration of Property. Developer shall repair any damage it causes to the Property in the course of performing the Permitted Work pursuant hereto and shall, except for the actual Permitted Work allowed hereby, restore the Property to the condition existing prior to Developer's or Related Parties' entry onto the Property, unless this requirement is waived by the City Manager or the Community Development Director in his or her sole and absolute discretion. 5 Compliance with Laws. Developer shall obtain, at is sole cost and expense, all governmental permits and authorizations required by any governmental agencies for the Permitted Work. Developer shall comply with, and shall cause all of its Related Parties to comply with, all applicable governmental laws, rules, regulations and requirements governing the Permitted Work. Prior to Developer's or any of the Related Parties' entry onto the Property to perform any of the Permitted Work, Developer shall have prepared, obtained approval from the City thereof, and implemented, a dust control program. 6. Indemnity. Developer shall protect, defend, indemnify and hold harmless City and the La Quinta Redevelopment Agency ("Agency") and their respective officers, officials, members, employees, agents, and representatives (any of the foregoing shall be known individually as "Indemnitee" and collectively as "Indemnitees"), and each of them, jointly and severally, against and from any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity, of every kind or nature whatsoever, including attorneys' fees and expert witness fees (hereinafter "Claims"), brought in connection with any death or personal injury to any person or persons or damage or destruction of any property arising out of or in any manner directly or indirectly connected with the entry upon the Property by Developer or any of its Related Parties or the activities on the Property (including but not limited to the Permitted Work) by Developer or any of its Related Parties, but excluding from the foregoing any Claims resulting from environmental contamination of the Property or other 394/015610-0061 4 390243.13 a12/17/03 defects on the Property existing prior to Developer's entry thereon and not otherwise caused by Developer or any of the Related Parties. The foregoing indemnification shall also cover: (a) any mechanics' or materialmen's liens, claims, demands, actions or suits arising (directly or indirectly) from (i) any work performed or materials supplied to or for Developer, or (ii) any activities of any of its Related Parties on or relating to the Property (including, without limitation, any claims by any of such Related Parties); and (b) any costs of removing Developer or its Related Parties from the Property after the expiration of the term hereof unless Developer is otherwise entitled to be on the Property at such time under this Agreement. 7. Insurance. (a) Before entering the Property for any purpose, Developer shall cause the insurance required under this paragraph to be issued and thereafter to be maintained until one (1) year following the end of the Term. Developer shall procure and maintain: (1) A policy of commercial general liability insurance written on a per occurrence basis in an amount not less than: (i) for death and bodily injury, either (A) a combined single limit of Three Million Dollars ($3,000,000) or (B) Three Million Dollars ($3,000,000) per person and Three Million Dollars ($3,000,000) per occurrence, and Three Million Dollars ($3,000,000) in the aggregate, and (ii) for property damage, Three Million Dollars ($3,000,000) per occurrence. (2) A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure, and provide legal defense for both the Developer and City against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Developer in the course of carrying out the work or services contemplated in this Agreement. (3) A policy of comprehensive automobile liability insurance written on a per occurrence basis in an amount not less than either (i) bodily injury liability limits of Three Million Dollars ($3,000,000) per person and Three Million Dollars ($3,000,000) per occurrence, and property damage liability limits of Three Million Dollars ($3,000,000) per occurrence and Three Million Dollars ($3,000,000) in the aggregate or (ii) combined single limit liability of Three Million Dollars ($3,000,000). Said policy shall include coverage for owned, non -owned, leased, and hired cars. (b) The following additional requirements shall apply to all of the above policies of insurance: (1) All of the above policies of insurance shall be primary insurance and, except the Worker's Compensation insurance, shall name City, the Agency, and their respective officers, officials, members, employees, agents, and representatives as additional insureds. 394/015610-0061 5 390243.13 a12/17/03 (2) The insurer shall waive all rights of subrogation and contribution it may have against City, Agency, and their respective officers, officials, members, employees, agents, and representatives, and their respective insurers. (3) All of said policies of insurance shall provide that said insurance may not be amended or cancelled without providing thirty (30) days' prior written notice to City and Agency. (4) The policies of insurance required by this Agreement shall not require Developer to meet a deductible of more than Twenty -Five Thousand Dollars ($25,000) unless approved in writing by the City Manager, or his or her designee, in his or her sole and absolute discretion. (c) In the event any of said policies of insurance are cancelled, the Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the City Manager, or his or her designee. (d) Not later than the date of this Agreement, Developer shall provide the City Manager with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the City Manager, or his or her designee. (e) Developer agrees that the provisions of this Section shall not be construed as limiting in any way Developer's indemnity obligations set forth in Section 6 or the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. 8. Miscellaneous. 8.1 Authorily. Each signatory hereto warrants to the other party that it has authority to sign on behalf of the party for whom it purports to sign. 8.2 Attorney's Fees. In the event any party hereto brings suit to enforce the terms of this Agreement or on account of breach hereof, the party not prevailing in such suit shall pay all reasonable costs and expenses incurred by the other party in such suit, including, without limitation, court costs, attorneys' fees, and expert witness fees. 8.3 Entire Agreement. This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, understandings or agreements relating thereto. 8.4 Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. 8.5 Litigation Matters. The Municipal and Superior Courts of the State of California in the County of Riverside shall have the exclusive jurisdiction of any litigation 394/015610-0061 6 390243.13 a12/17/03 between the parties arising out of this Agreement. This Agreement shall be governed by, and construed under, the laws of the State of California. Service of process on City shall be made in the manner required by law for service on a public entity. Service of process on Developer shall be made in any manner permitted by law and shall be effective whether served within or outside of California. 8.6 Non -liability of City Officers and Employees. No officer, official, member, employee, agent, or representative of City shall be personally liable to Developer, or any successor or assign of same, in the event of any default or breach by City, or for any amount which may become due to Developer, or any successor or assign of same, or for breach of any obligation of the terms of this Agreement. 8.7 Covenant Against Discrimination. Developer covenants for itself, its heirs, executors, assigns, and all persons claiming under or through it, that there shall be no discrimination against any person on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the performance of this Agreement. 8.8 Notices. Unless other sections of this Agreement allow certain specific notices to be given by other means, all notices required to be delivered under this Agreement or under applicable law shall be delivered by one of the following means: (a) personal delivery; (b) delivery by United States mail, prepaid, certified, return receipt requested; (c) delivery by reputable document delivery service that provides a receipt showing date and time of delivery; or (d) delivery by facsimile provided the sender receives confirmation the fax was received. Notices personally delivered or delivered by a document delivery service shall be effective upon receipt. Notices delivered by mail shall be effective at 5:00 p.m. on the second business day following dispatch. Notices delivered by facsimile shall be effective upon receipt provided that any faxed notices which are transmitted at any time other than 8:00 a.m. to 4:30 pm Monday through Friday (excluding legal holidays) shall be deemed transmitted as of the next business day. Notices shall be delivered to the following addresses: To City: City of La Quinta Attn: Community Development Director 78-495 Calle Tampico La Quinta, CA 92253 Telephone: (760) 777-7000 Facsimile: (760) 777-1233 With a copy to: Rutan & Tucker, LLP Attn: M. Katherine Jenson, Esq. 611 Anton Boulevard, 14th Floor Costa Mesa, CA 92626-1998 Telephone: (714) 641-5100 Facsimile: (714) 546-9035 394/015610-0061 390243.13 a12/17103 To Developer: CP Development La Quinta, LLC Attn: Richard Oliphant 44-139 Monterey Avenue, Suite 201 Palm Desert, CA 92260 Telephone: (760) 776-9900 Facsimile: (760) 776-9971 With a copies to: Genesis Hotel Development, LLC 76890 Sandpiper Drive Indian Wells, CA 92210 Attn: Francis A. Wong Telephone: (760) 360-7886 Facsimile: (760) 345-7175 and Selzer, Ealy, Hemphill & Blasdel, LLP 777 E. Tahquitz Canyon Way, Suite 328 Palm Springs, CA 92262 Attn: Emily Perri Hemphill, Esq. Telephone: (760) 320-5977 Facsimile: (760) 320-9507 Changes in the address to be used for receipt of notices shall be effected in accordance with this Paragraph 8.7. Agreement. 8.8 Time of Essence. Time is of the essence in the performance of the [end — signature page follows) 394/015610-0061 8 390243.13 a12/17/03 IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first above -written. "DEVELOPER" CP DEVELOPMENT LA QUINTA, LLC a California limited liability company By: Oliphant Family Trust Its: Member By: Richard R. Oliphant Its: Trustee By: Oliphant Enterprises, Inc. Its: Manager Lin Richard R. Oliphant Its: President "CITY" CITY OF LA QUINTA By: City Manager 394/015610-0061 9 390243.13 a12/17/03 EXHIBIT "A" TO EARLY ENTRY AGREEMENT SITE MAP The Site Map is not a tract map and the parcels depicted there are not legal parcels. Upon Developer's preparation of a tract map that creates legal parcels substantially consistent with the Site Map, Developer shall prepare legal descriptions for each of the Suites Hotel Parcel, the Casitas Development Parcel(s), the Villas Residential Development Parcel, the Cluster/Perimeter Residential Development Parcel, the Medical Office/Surgical Facility Parcel(s), and the Sanctuary Villas Parcel(s), and Agency and Developer shall cooperate to attach such legal descriptions to any document where such legal descriptions are required. M LAND USE LOT I RESTAURANT LOT 2 - RESORT CASITAS *LOT 0.34 LOT 3 - RESORT CASITAS LOT - RESORT CASITAS LOT b - RESIDENTIAL *LOT 8 - PARK LOT 7 RESIDENTIAL LOT 8_- THE SANCTUARY LOTS THE SANCTUARY LOT 10MEDICAL OFFICE BUILDINGS LOT 11 MEDICAL OFFICE BUILDINGS LOT 12 ' MEDICAL OFFICE BUILDINGS LOT 13 RESTAURANT LOT 14 ' HOTEL COMMON LOTS LOT 'A - - - - - - - - LAND USE MEDICAL OFFICE PARKING / LANDSCAPE LOT 'B' - - - - - - - SEELEY DRIVE * LOT 'C- - -- - - - 20' PARKWAY.(WASHINGTON STREET) * LOT '0' - - - - - - - CITY LANDSCAPE ENTRY *LOT 'E - - " - - - - 20' PARKWAY (WASHINGTON STREET) LOT 'F' - - - - - - - WELLSITE * LOT 'G- - - - - " - - WELLSITE (N.A.P) * LOT 'H' - - - " " - " 20' PARKWAY (MILES AVENUE) * LOT 'I' - - - - " - - 20' PARKWAY (MILES AVENUE) *LOT 'H 234e3 al 0.34 �. * These patceis are not being conveyed by the La Quints Redevelopment Agency. They = depicted on this Site Map for convenience of refeence Wy. N.T.S. NOVEMBER 21. 2003 AGENCY CONSENT TO RECORDATION THE LA QUINTA REDEVELOPMENT AGENCY HEREBY CONSENTS TO THE RECORDATION OF THE FOREGOING DEVELOPMENT AGREEMENT AGAINST THE REAL PROPERTY DESCRIBED IN EXHIBIT "A" TO SAID DEVELOPMENT AGREEMENT. LA QUINTA REDEVELOPMENT AGENCY Its: STATE OF CALIFORNIA ) ) ss COUNTY OF On , before me, personally appeared personally known to me (or 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 acknowledged 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. Witness my hand and official seal. Notary Public [SEAL] 394/015610-0061 390243.13 a12/17/03