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2023 (12) ABTS Polo Villas, LLC - AMEND 2 to Agr re Insubstantial Mod do DA 7-lots; TR 33085 RECORDED DOC # 2023-0383565RECORDING 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 DOC # 2023-0383565 12/28/2023 10:09 AM Fees: $0.00 Page 1 of 9 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: MARIA VICTORIA #411 Space Above This Line For Recorder's Use (Exempt from Recording Fee per Government Code Sections 6103 and 27383) SECOND AMENDMENT TO AGREEMENT REGARDING INSUBSTANTIAL MODIFICATIONS TO DEVELOPMENT AGREEMENT This Second Amendment to Agreement Regarding Insubstantial Modifications to Development Agreement ("Second Amendment") is made and entered into as of December 20, 2023 by and between the CITY OF LA QUINTA, a California municipal corporation (the "City") and ABTS 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 Agreement 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 "Original Agreement"). The Original Agreement was recorded in the Official Records of Riverside County, California on April 18, 2022, as Instrument No. 2022-0182466. The Original 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 Agreement (the "Property"). Capitalized terns used herein and not otherwise defined shall have the meaning set forth in the Original Agreement. B. GTGF, LLC assigned its interest in the Original 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 Original Agreement to BUILD TO 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, ACTIVE DOC #2023-0383565 Page 2 of 9 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"). D. The Original Agreement, solely with respect to the 7 Lots Property, was modified by that certain Agreement Regarding Insubstantial Modifications to Development Agreement between BTS -PV and the City dated March 23, 2023, and recorded in the Official Records of Riverside County. California on March 24. 2023. as Instrument No. 2023-0084850 (the "DA Insubstantial Modification Agreement"). The Original Agreement as modified by the DA Insubstantial Modification Agreement shall hereinafter be referred to as the "Development Agreement." E. BTS -PV assigned its interest in the Development 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. F. The Development Agreement, solely with respect to the 7 Lots Property, was further modified by that certain First Amendment to Agreement Regarding Insubstantial Modifications to Development Agreement between ABTS-PV and the City dated July 19, 2023, and recorded in the Official Records of Riverside County, California on July 25, 2023, as Instrument No. 2023-0215592. G. 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. H. 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 Agreement. Based on the representations and warranties from ABTS- PV, which the City materially relies upon, the certain modifications set forth in this Agreement 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 Agreement by reference. 2. The terms of this Agreement run with the 7 Lots Property and are binding on the City, ABTS-PV and its permitted successors and assigns. 3. Notwithstanding anything to contrary set forth in the Short -Term Vacation Rental Regulations set forth in Chapter 3.25 (or successor provisions) of the La Quinta ACTIVE DOC #2023-0383565 Page 3 of 9 Municipal Code, Developer shall be issued, prior to the issuance of a certificate of occupancy, short-term vacation rental permits by the City with respect to any of the residential properties located within the 7 Lots Property, to market, advertise and/or list for short-term rental, and to enter into a short-term rental agreement with respect to, any of residential properties located within the 7 Lots Property; provided, however, that no short-term rental use or occupancy of a residential property within the 7 Lots Property shall occur prior to the issuance of a certificate of occupancy by the City for such residential property. 4. The persons executing this Agreement on behalf of each Party each warrant and represent that he or she has the authority to execute this Agreement on behalf of that Party, as applicable. 5. The laws of the State of California shall govern this Agreement and all matters relating to it, without regard to conflict of law principles, and the venue of any action brought relating to this Agreement shall be in a state court in the County of Riverside, California. 6. The "Effective Date- for this Agreement shall be the date this has been fully executed and notarized by the respective Parties hereto. 7. This Agreement 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 DOC #2023-0383565 Page 4 of 9 WITNESS WHEREOF, BTS -PV and the City have executed this Agreement as of the date first above written. ATTEST: Monika Radeva, City Clerk APPROVED AS TO FORM RUTTAN & TUCKER, LLP William H. Ihrke, City Attorney ACTIVE -4- ABTS POLO VILLAS, LLC, a Delaware limited liability company ("ABTS-PV") SIGNED IN COUNTERPART By: Its: CITY OF LA QUINTA, a Ca ornia municipal corporation ("City") By: illen, City Manager DOC #2023-0383565 Page 5 of 9 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 December 20, 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 person(s) 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 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. WITNESS my hand and official seal. 1 Signature: % VI DOCUMENT: MONIKA RADEVA Notary Public - California Riverside County J Commission f 2334260 - My Comm. Expires Oct 22, 2024 (notary seal) Polo Villas — Second Amendment to Agreement Regarding Insubstantial Modifications to Development Agreement — Tract 33085; 7 -lots DOC #2023-0383565 Page 6 of 9 WITNESS WHEREOF, BTS -PV and the City have executed this Agreement as of the date first above written. ATTEST: SIGNED IN COUNTERPART Monika Radeva, City Clerk APPROVED AS TO FORM RUTTAN & TUCKER, LLP SIGNED IN COUNTERPART William H. Ihrke, City Attorney -4 ACM VE ABTS POLO VILLAS, LLC. a Delaware limited liability company ("ABTS-PV'') By: +. Its: CITY OF LA QUINTA, a California municipal corporation ("City") SIGNED IN COUNTERPART By: Jon McMillen. City Manager DOC #2023-0383565 Page 7 of 9 Notary Public or other otticer completing this ,:ertificate verifies onlv thc identity of the individual h0 sizine(1 the document, to ‘vhicli this certificate is at tuella, .,Ind not the truthfulness, accuracy. or validitv of that document NOT ACKNOWLEDGMENI: STATE OF OltoArt ) COUNTY OF Ont 2-b ?=3, before me, 1-7(*--xt‘o, Gr -'71-41E - ryl , Notary _ Public, personally appeared C3r 0,,naor, S , ho pro\.ed to me on the basis of satisfactory evidence to be th p—e-rst;ntiwhose name(s) iS/are suberibed to the within instrument and acknowledged to me that he:she/they executed the same in his her their authorized eapacity(ies), and that by his/her/their signature(s) on the instrument the personN), or the entity upon behalf of which the persor() acted, executed the instrument 1 certify under PENALTY of RJURY under the laws oldie State of California that the foregoing paragraph is true and correct. (Seal) ACTIVE WITNES y hand and official seal_ DOC #2023-0383565 Page 8 of 9 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 THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP FILED ON MAY 27, 2015 IN BOOK 445 OF MAPS, PAGES 62 AND 63. IN TH EOFFICE OF THE COUNTY RECORDER OF SAID COUNTY. For conveyancing pruposes only: APNs 777-500-001 (Affects Lot 1) 777-500-002 (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 (Affect Lot 8) 777-500-009 (Affects Lot 9) 777-500-010 (Affects Lot 10) and LOTS 1 THROUGH 7 AND LETTERRED 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, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. For conveyancing purposes only: APNs 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/120879941.9 DOC #2023-0383565 Page 9 of 9 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/120879941.9