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2023 (11) ABTS Polo Villas, LLC - AMEND 1 to Agr re Insubstantial Modific to DA 7-Lots TR 33085 2023-07-25 RECORDEDRECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of La Quinta Attn: City Clerk La Quinta City Hall 78-495 Calle Tampico La Quinta, CA 92253 b°11-libq DOC # 2023-0215592 07/25/2023 05:00 PM Fees: $0.00 Page 1 of 11 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder **This document was electronically submitted to the County of Riverside for recording** Receipted by: NORMA #248 Space Above This Line For Recorder's Use (Exempt from Recording Fee per Government Code Sections 6103 and 27383) FIRST AMENDMENT TO AGREEMENT REGARDING INSUBSTANTIAL MODIFICATIONS TO DEVELOPMENT AGREEMENT This First Amendment to Agreement Regarding Insubstantial Modifications to Development Agreement ("First .Amendment") is made and entered into as of 3k..L , 2023 by and between the CITY OF LA QUINTA, a California municipal corpo tion (the "City") and Aurs POLO VILLAS, LLC, a Delaware limited liability company ("ABTS-PV"). City and ABTS-PV are periodically referred to herein individually as a "Party" and collectively as the "Parties." RECITALS This First Amendment is made and entered into with regard to the following facts, each of which is acknowledged as true and correct by the City and Developer: A. The City and GTGF, LLC, a Delaware limited liability company ("GTGF"), as the original developer, entered into a development agreement on or about March 15, 2022 (the "Development Agreement"). The Development Agreement was recorded in the Official Records of Riverside County, California on April 18, 2022, as Instrument No. 2022-0182466. The Development Agreement runs with the land and touches and concerns that certain real property in the City of La Quinta, more particularly described in Exhibit A attached to this First Amendment (the "Property"). Capitalized terms used herein and not otherwise defined shall have the meaning set forth in the Development Agreement. B. GTGF, LLC assigned its interest in the Development Agreement to Saluda Grade Short Term Rental Inc., a Maryland corporation ("SGSTR") pursuant to that certain Assignment and Assumption of Development Agreement dated March 16, 2022 recorded in the Official Records of Riverside County, California on March 25, 2022, as Instrument No. 2022-146080. C. SGSTR partially assigned its interest in the Development Agreement to BUILD TO ACTIVE/120879941.9 . DOC #2023-0215592 Page 2 of 11 STAY—POLO VILLAS, LLC ("BTS -PV") pursuant to that certain Partial Assignment and Assumption of Development Agreement and Termination of Prior Assignments dated February 7, 2023, and recorded in the Official Records of Riverside County, California on February 8, 2023, as Instrument No. 2023-0037091, with respect to the portion of the Property acquired by BTS -PV, which is more particularly described in Exhibit B to this Modification (the "7 Lots Property"). Thereafter, BTS -PV and City, pursuant to Section 1.6(a) of the Development Agreement, entered into that certain Agreement Regarding Insubstantial Modifications to Development Agreement dated March 23, 2023, and recorded in the Official Records of Riverside County, California on March 24, 2023, as Instrument No. 2023-0084850 (the "Insubstantial Modifications Agreement"). The Insubstantial Modifications Agreement, among other terms and conditions, modified specified sections relating to Mortgage Protection in Article 7 and the "Schedule of Performance" in the Development Agreement with respect to the 7 Lots Property. D. BTS -PV assigned its interest in the Development Agreement and Insubstantial Modifications Agreement with respect to the 7 Lots Property to ABTS-PV pursuant to that certain Assignment and Assumption of Development Agreement dated April 3, 2023, and recorded in the Official Records of Riverside County, California on April 4, 2023, as Instrument No. 2023- 0095732. E. As a result of the foregoing, as of the date hereof, ABTS-PV is the "Developer" under the Development Agreement with respect to the 7 Lots Property. F. Pursuant to Section 1.6(a) of the Development Agreement, ABTS-PV has proposed to the City certain modifications to the Development Agreement as to the 7 Lots Property, which are set forth in detail in this First Amendment. Based on the representations and warranties from ABTS-PV, which the City materially relies upon, the certain modifications set forth in this First Amendment constitute Insubstantial Modifications that are consistent with the Applicable Rules, as defined in the Development Agreement, and shall promote the goals of the Development Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained and other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties hereto agree as follows: 1. The foregoing recitals are hereby incorporated into this First Amendment by reference. 2. The terms of this First Amendment run with the 7 Lots Property and are binding on the City, ABTS-PV and its permitted successors and assigns. 3. The Parties agree that the text of Exhibit D of the Development Agreement, as modified by the Insubstantial Modifications Agreement, is hereby deleted in its entirety as to the 7 Lots Property and that the Performance Schedule attached hereto as Schedule 1 is substituted to be Exhibit D in effect as of the date hereof as to the 7 Lots Property. 2 ACTIVE/120879941,9 DOC #2023-0215592 Page 3 of 11 4. The persons executing this First Amendment on behalf of each Party each warrant and represent that he or she has the authority to execute this First Amendment on behalf of that Party, as applicable. 5. The laws of the State of California shall govern this First Amendment and all matters relating to it, without regard to conflict of law principles, and the venue of any action brought relating to this First Amendment shall be in a state court in the County of Riverside, California. 6. The "Effective Date" for this First Amendment shall be the date this has been fully executed and notarized by the respective Parties hereto. 7. Except as expressly modified by this First Amendment, the Development Agreement and Insubstantial Modifications Agreement remain in full force and effect. 8. This First Amendment may be executed in several counterparts, each of which shall constitute one and the same instrument and shall be binding upon the Parties. (Signatures on next page) ACTIVE/120879941.9 DOC #2023-0215592 Page 4 of 11 WITNESS WHEREOF, ABTS-PV and the City have executed this First Amendment as of the date first above written. ABTS POLO VILLAS, LLC, a Delaware limited liability company ("ABTS-PV") Signed In Counterpart By: Its: CITY OF LA QUINTA, a California municipal corporation ("City") ATTEST: Monika Radeva, C APPROVED AS TO FORM RUTTAN & TUCKER, LLP WLlIIarn H. Ihrke, City Attorney 4 ACTIVE/120879941.9 DOC #2023-0215592 Page 5 of 11 WITNESS WHEREOF, ABTS-PV and the City have executed this First Amendment as of the date first above written. ABTS POLO VILLAS, LLC, a Delaware limited liability company ("ABTS-PV") Its: fr1A-r-)P•-0-6(._ , Jerry Mem et CITY OF LA QUINTA, a California municipal corporation ("City") By: ATTEST: Signed In Counterpart Monika Radeva, City C erk APPROVED AS TO FORM RUTTAN & TUCKER, LLP Signed In Counterpart William H. Ihrke, City Attorney 4 ACTIVE/120879941.9 Signed In Counterpart cen, City Manager DOC #2023-0215592 Page 6 of 11 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Riverside ) ) On July 19, 2023 before me, MONIKA RADEVA, Notary Public, personally appeared JON McMILLEN (as City Manager for the City of La Quinta) who proved to me on the basis of satisfactory evidence to be the personks) whose name(s-) is/ace 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 signatureks) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: DOCUMENT: Motary PubikCalifornia Riverside County Commission # 2334260 Comm , Expires Oct 22, 2024 (notary seal) Polo Villas — First Amendment to Agreement Regarding Insubstantial Modification to Development Agreement by and between City of La Quinta and ABTS Polo Villas, LLC. March 24, 2023; DOC # 2023-0084850 — Agreement Regarding Insubstantial Modifications to Development Agreement by and between City of La Quinta and Build To Stay — Polo Villas, LLC March 15, 2022; DOC # 2022-0182466 — Development Agreement by and between City of La Quinta and GTGF, LLC 7 -lot undeveloped Tract 33085 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document 1).(07 STATE OF COUNTY OF) On 7, 02 , before me Public, personally appeared proved to me on the basis of satis tory e dence 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. I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. DOC #2023-0215592 Page 7 of 11 (Seal) ACTIVE/120879941.9 KEITH L. DEAN Notary Public - State of Arizona MARICOPA COUNTY Commission 4 640216 Expires January 14, 2027 DOC #2023-0215592 Page 8 of 11 {SIGNATURE PAGE OF "ABTS-PV"TO FIRST AMENDMENT TO AGREEMENT REGARDING INSUBSTANTIAL MODIFICATIONS TODEVELOPMENT AGREEMENT] ABTS Polo Villas, LLC, a Delaware Iimfted liability company By: ATLANTIC BTSTAY JV HOLDINGS LLC, a Delaware limited liability company, its Manager By: ATLANTIC BTSTAY HOLDINGS, LLC, Delaware limited liability company Its: Manager By: BTS Promote — Atlantic 1. LLC, a Delaware limited Iiability company Its: Manager By: Build to Stay, LLC, an Arizona limited liability company Its: Manager By: Jer Cobenman, Chief ExecuUve{}ffioar A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document STATE OF ',92 ) COUNTY OF On ,c,2 (../ . G.2., 3 , before me, ,rce-/-70 / l',7e,'et--7 , Notary Public, personally appea d who proved to me on the basis of satisfacto y e).-/eraRCe CPAT4Ter(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), o r the entity upon behalf of which the person(s) acted, executed the instrument. | certify underPEmALTYofpEmJURYunue,the|awvofthvStatenwCaWa*4,tha*,eforeWoingparagraphis true and correct. A°ZZ-ON«A WITNESS my hand and a cial-sea KEITH L. DEAN DOC #2023-0215592 Page 9 of 11 EXHIBIT A Legal Description of Property Under Development Agreement The Land referred to herein below is situated in the City of La Quinta, County of Riverside. State of California, and is described as follows: LOTS 1 THROUGH 11 OF TRACT MAP NO. 36279, IN '1.14E. CITY OF LA ()UINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER FILED ON MAY 27, 2015 IN BOOK 445 OF MAPS, PAGES 62 AND 63, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. For conveyancing purposes only: APNs 777-500-001 (Affects Lot I) 777-540-002 (Affects Lot 2) 777-500-003 (Affects Lot 3) 777-500-004 (Affects Lot 4) 777-500-005 (Affects Lot 5) 777-500-006 (Affects Lot 6) 777-500-007 (Affects Lot 7) 777-500-008 (Affects Lot 8) 777-500-009 (Affects Lot 9) 777-500-010 (Affects Lot 10) and LOTS I THROUGH 7 AND LETTERED LOTS B THROUGH E OF TRACT MAP NO. 33085, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 460, PAGES 25 AND 26, OF MAPS, IN TI -EE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. For conveyancing purposes only: APN 777-500-016 (Affects: Lot 1) APN 777-500-017 (AtTects: Lot 2) APN 777-500-01S (Affects: Lot 3) APN 777-500-019 (Affects: Lot 4) APN 777-500-020 (Affects: Lot 5) APN 777-500-021 (Affects: Lot 6) APN 777-500-022 (Affects: Lot 7) APN 777- 500-023 (Affects: Lot 13) APN 777-500-024 (Affects: Lots C and D) APN 777-500-025 (Affects: Lot E) ACTIVE/I 20879941.9 DOC #2023-0215592 Page 10 of 11 EXHIBIT B Legal Description of 7 Lots Property Real property in the City of La Quinta, County of Riverside, State of California, described as follows: LOTS 1 THROUGH 7 AND LETTERED LOTS B THROUGH E OF TRACT MAP NO. 33085, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 460, PAGES 25 AND 26, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 777-500-016 (AFFECTS: LOT 1); 777-500-017 (AFFECTS: LOT 2); 777-500-018 (AFFECTS: LOT 3); 777-500-019 (AFFECTS: LOT 4); 777-500-020 (AFFECTS: LOT 5); 777- 500-021 (AFFECTS: LOT 6); 777-500-022 (AFFECTS: LOT 7); 777-500-023 (AFFECTS: LOT B); 777-500-024 (AFFECTS: LOTS C AND D); 777-500-025 (AFFECTS: LOT E). ACTIVE/12087994 t .9 DOC #2023-0215592 Page 11 of 11 SCHEDULE 1 SUBSTITUTE EXHIBIT D AS TO 7 LOTS PROPERTY PERFORMANCE SCHEDULE FOR 7 LOTS PROPERTY Item of Performance Start Completion TR (Tract Map) 33085 (Vacant Lots'1 Permitting Grading and Engineering Permits January 2023 Complete Building Permits January 2023 Complete Construction of Project Components Con t uct off-site improvements N/A Complete Construct all on-site improvements (rough grade, walls, street, storm drain, water, sewer, dry utilities, and landscaping) March 2023 November 2023 Place monuments October 2023 'November 2023 Begin construction of 7 res dentia units June 2023 Complete Completion of construction of 7 residential units February 2024 April 2024 Obtain Certificate of Occupancy for 7 residential units February 2024 May 2024 ACTIVE/120879941.9