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LLQC 2024-0003 Notice, Agrmt, & Covenant DOC # 2024-0083408RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk DOC # 2024-0083408 03/21/2024 02:54 PM Fees: $0.00 Page 1 of 15 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: ELENA #448 Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov. Code §6103 and §27383) NOTICE, AGREEMENT, AND COVENANT AFFECTING REAL PROPERTY (City of La Quinta — Qualified and Certified Large Lot) This AGREEMENT, NOTICE, AND COVENANT AFFECTING REAL PROPERTY (this "Covenant") is entered into as of the 19th day of March, 2024 (the "Effective Date"), by and between the CITY OF LA QUINTA, a California municipal corporation and charier city ("City"), and Alam Khan, ("Property Owner"), with reference to the following: RECITALS A. Chapter 3.25 of the La Quinta Municipal Code (LQMC) regulates short-term vacation rentals (STVRs) in the City, including but is not limited to permitted and prohibited uses, STVR processing and permitting procedures, and other related STVR requirements, violations, and fines. B. Effective May 20, 2021, Section 3.25.055 of the LQMC established a ban on the issuance of new STVR permits for properties located within non- exempt areas of City. C. Effective January 4, 2024, Section 3.25.057 of the LQMC provides that a "Qualified and Certified Large Lot," as defined, may be exempted from the ban on the issuance of new STVR permits if certain criteria are met. D. Property Owner owns fee title to that certain real property located in the City of La Quinta, California and more specifically described on Exhibit "A" which is attached hereto and incorporated herein by this reference (the "Property"). E. Property Owner submitted an application for the City to review, consider, and approve the Property as a Qualified and Certified Large Lot. DOC #2024-0083408 Page 2 of 15 F. On March 19, 2024, the City Council of the City of La Quinta adopted Resolution Number 2024-011 (the "Resolution") approving the Property as a Qualified and Certified Large Lot, subject in part to a requirement that the Property Owner execute this Covenant, which shall be recorded in the Official Records of Riverside County. The Resolution, including any Conditions of Approval associated therewith is attached hereto as Exhibit "B" and incorporated herein by this reference. G. City and Property Owner now desire to execute this Covenant as a condition of City's approval in the Resolution that the Property is a Qualified and Certified Large Lot. AGREEMENT, NOTICE, AND COVENANT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual covenants and agreernents contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the City and Property Owner hereby agree as follows: 1. EFFECTIVE DATE. This Covenant shall be effective and of full force and effect upon complete execution by City and Property Owner, which shall be inserted in the preamble, and shall be perfected as binding against any and all owners of the Property upon recording in the Official Records of Riverside County. 2. QUALIFIED AND CERTIFIED LARGE LOT. 2.1 Approval Conditional. City's approval in the Resolution that the Property is a Qualified and Certified Large Lot is contingent on the Property's compliance with this Covenant, LQMC Section 3.25.057 or successor provisions as the same may be amended, and the Resolution, including the Conditions of Approval, if any, set forth in the Resolution (collectively the "Resolution Conditions"). Property Owner acknowledges that the Property only qualifies as a Qualified and Certified Large Lot when it meets the Resolution Conditions, and covenants to keep the Property in compliance with such Resolution Conditions at all times when the Property is operating as a Qualified and Certified Large Lot. If, at any point, the Property is out of compliance with the Resolution Conditions, it shall imrnediately cease to qualify as a Qualified and Certified Large Lot without any further action of City. 2.2 Single Lot. Property Owner acknowledges, covenants, and agrees that the Property is a single parcel and shall remain a single parcel at all times when the Property is used as a Qualified and Certified Large Lot. In no event shall the Property be subdivided, merged, subject to a lot -line adjustment, or otherwise altered in a manner that would result in the Property no longer being a single lot which complies with the Resolution Conditions. Any subdivision, merger, lot -line adjustment, or other alteration in violation of this Section 2.2 shall be a violation of 2 DOC #2024-0083408 Page 3 of 15 this Covenant and shall result in immediate disqualification of the Property as a Qualified and Certified Large Lot. 2.3 STVR Permits Contingent. Property Owner acknowledges and agrees that any STVR permits granted due to the Property's designation as a Qualified and Certified Large Lot shall immediately lapse and be void if at any time the Property ceases to qualify as a Qualified and Certified Large Lot. Operation of an STVR subject to such a permit shall be a violation of the STVR permit and this Covenant if the Property does not meet the Resolution Conditions. 3. REMEDIES FOR DEFAULT. 3.1 City's Rights. In the event of failure by Property Owner or any successor to the Property (or any portion thereof) to perform any material term or provision of this Covenant, City shall have those rights and remedies provided in this Covenant and any and all rights and remedies available at law or in equity, including but not limited to immediate and permanent injunctive relief. 3.2 City's Rights in the Event of Unlawful STVR Operation. Without limitation to Section 3.1, in the event that Property Owner operates an STVR on the Property in violation of this Covenant, City's remedies shall include (i) revocation of the Property's eligibility to operate as a Qualified and Certified Large Lot, (ii) revocation or termination of any STVR permit granted on the condition that the Property qualify as a Qualified and Certified Large Lot, and/or (iii) any other remedy available at law or in equity including under LQMC Chapter 3.25. 4. GENERAL PROVISIONS. 4.1 Notice of Covenant. By executing this Covenant, Property Owner covenants that it has taken notice of all matters contained herein. 4.2 Amendment and Cancellation. Except as expressly allowed herein, this Covenant shall not be amended or canceled in whole or in part without the prior written consent of City. 4.3 Covenant Runs with the Land. This Covenant shall be construed as a covenant running with the land to the burden of the Property and in favor of City and its successors in interest. This Covenant shall be binding on Property Owner and its successors in interest, and any grant, transfer, or conveyance of interest in the Property shall be and hereby is conditioned on the assumption of this Covenant in its entirety by the successor in interest. 4.4 Recording. Upon complete execution and notarizing of this Covenant, City shall cause the Covenant to be recorded in the Official Records of Riverside County. This Covenant shall have priority over and shall not be made subordinate to any mortgage, deed of trust, or other encumbrance recorded against the Property without the expressed written consent of the City. If this Covenant becomes subordinate to any mortgage, deed of trust, or other 3 DOC #2024-0083408 Page 4 of 15 encumbrance recorded against the Property without the written approval of the City, and the Property is sold, transferred, or otherwise conveyed by foreclosure or deed in lieu of foreclosure, the City reserves the right to require the subsequent owner to re -apply to the City pursuant to Section 3.25.057 (or successor provisions) for the review and consideration of the Property as a Qualified and Certified Large Lot. 4,.5 Notices. Any approval, disapproval, demand, document or other notice ("Notice") which either party may desire to give to the other party under this Covenant must be in writing and shall be sufficiently given if (i) delivered by hand, (ii) delivered by reputable same-day or overnight messenger service that provides a receipt showing date and tirne of delivery, or (iii) dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of City and Property Owner at the addresses specified below, or at any other address as that party may later designate by Notice: To City: With a copy to: To Property Owner: With a copy to: City of La Quinta City Clerk's Office 78495 Calle Tampico La Quinta, California 92253 Attn: City Manager Rutan & Tucker, LLP 18575 Jamboree Rd, 9th Floor Irvine, California 92612 Attn: William H. Ihrke Alam Khan 43910 El Lucero Place Temecula, CA 92592 Robert Conrad PO Box 841 Palm Desert, CA 92261 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. 4.6 Non -liability of City Officers and Employees. No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall 4 DOC #2024-0083408 Page 5 of 15 be personally liable for any loss, costs, damage, claim, liability, or judgment, arising out of or connection to this Covenant, or for any act or omission on the part of City. 4.7 Covenant Against Discrimination. 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 Covenant. Property Owner shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, et seq.). 4.8 Attorney's Fees and Costs for Prevailing Party. If there is an action against one party by reason of the default of any term or condition in this Covenant, or otherwise arising out of this Covenant, the unsuccessful party shall pay to the prevailing party its attorney's fees and costs, which shall be payable whether or not such action is prosecuted to judgment, and shall include fees and costs of appeal, if any. The term "prevailing party" shall include, without limitation, a party who obtains substantially the relief sought whether by compromise, settlement or judgment. 4.9 Severability. If any term or condition of this Covenant is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Covenant shall continue in full force and effect. 4.10 Time. Time is of the essence in the performance of this Covenant and of each term and condition hereof as to which time is an element. 4.11 Recitals & Exhibits Incorporated. The Recitals to this Covenant and all of the Exhibits to this Covenant are, by this reference, incorporated into this Covenant and made a part hereof. 4.12 Authority to Execute; Representations and Warranties. The Property Owner warrants and represents that (i) Property Owner is duly authorized to execute and deliver this Covenant, (ii) by executing this Covenant, Property Owner is formally bound to the provisions of this Covenant, (iii) Property Owner's entering into and performance of the obligations set forth in this Covenant do not violate any provision of any other agreement to which Property Owner is bound, and (iv) there is no existing or threatened litigation or legal proceeding of which the Property Owner is aware which could prevent Property Owner from entering into or performing its obligations set forth in this Covenant. 4.13 City Approvals and Actions. The City Manager or authorized designee shall have the authority to implement this Covenant, including the authority to negotiate and sign on behalf of the City implementing agreements and other documents, so long as the substantive provisions of this Covenant are maintained. All other City approvals and actions shall require at least a majority vote of the City Council of the City of La Quinta. Nothing in this paragraph prevents or shall be construed as preventing the City Manager from taking any review, DOC #2024-0083408 Page 6 of 15 approval request, or other action relating to this Covenant to the City Council of City for its review and action. 4„14 Governing Law. The internal laws of the State of California shall govern the interpretation and enforcement of this Covenant without regard to conflicts of law principles. Any action at law or in equity brought by City or Property Owner for the purpose of enforcing, construing, or interpreting the validity of this Covenant 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. 4.15 Counterpart. For convenience, City and Property Owner may execute and acknowledge this Covenant in counterparts which shall constitute one and the same complete Covenant. [end — signature page follows] DOC #2024-0083408 Page 7 of 15 IN WITNESS WHEREOF, City and Property Owner have executed this Covenant as of the date first indicated in the preamble. CITY PROPERTY OWNER CITY OF LA QUINTA, a California municipal corporation and charter city JO c. ILLEN, City Manager MONIKA RADEVA, City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP WILLIAM H. IHRKE, City Attorney ao 7 Date: 2 2. . DOC #2024-0083408 Page 8 of 15 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 February 21, 2024, before me, LORI FRANCIS LORETT, Notary Public, personally appeared ALAM KHAN who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/aro subscribed to the within instrument, and acknowledged to me that he/chc/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signaturefs) 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: m. rihnamdill"46 LORI FRANCIS LORETT �= Notary Public - California Riverside County Commission # 2396191 impiapmrse .•a My Comm, Expires Mar 8, 2026 (notary seal) Notice, Agreement, and Covenant Affecting Real Property (City of La Quinta — Qualified and Certified Large Lot) — 51555 Madison Street DOC #2024-0083408 Page 9 of 15 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 3 OF TRACT NO. 6682, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 88, PAGES 42, AND 43 OF MAPS, IN THE IN THE OFFICE OF THE COUNTY OF RIVERSIDE RECORDER OF SAID COUNTY. ASSESSOR'S PARCEL NUMBER: 777-030-006 EXHIBIT "A" DOC #2024-0083408 Page 10 of 15 EXHIBIT "B" COUNCIL RESOLUTIION AND CONDITIONS OF APPROVAL Council Resolution No. 2024-011, adopted on March 19, 2024 — enclosed Conditions of Approval — None EXHIBIT "B" DOC #2024-0083408 Page 11 of 15 EXHIBIT B RESOLUTION NO. 2024-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE PROPERTY LOCATED AT 51555 MADISON STREET, LA QUINTA, CALIFORNIA, IDENTIFIED AS ASSESSOR PARCEL NUMBER 777-030-006, AS A "QUALIFIED AND CERTIFIED LARGE LOT" PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE CASE NUMBER: LARGE LOT QUALIFIED AND CERTIFIED 2024-0003 APPLICANT: ROBERT CONRAD OWNER: ALAM KHAN / DALIA K PROPERTIES & HOLDINGS, LLC WHEREAS, the City has the authority to regulate residential uses, including STVR uses, operating within the City; and WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (LQMC) regulates short-term vacation rentals (STVRs) in the City, including but not limited to STVR permitted uses, STVR processing and permitting procedures, and other related STVR requirements, violations, and fines; and WHEREAS, effective May 20, 2021, Section 3.25.055 of the LQMC established a ban on the issuance of new STVR permits for properties located within non-exempt areas in La Quinta; and WHEREAS, effective January 4, 2024, Section 3.25.057 of the LQMC provides that properties may apply for and be approved as a "Qualified and Certified Large Lot," as defined, and shall be exempted from the ban on the issuance of new STVR permits in non-exempt areas as set forth in Section 3.25.055 of the LQMC, if certain criteria are met; and WHEREAS, the City Council of the City of La Quinta, California, did, on March 19, 2024, hold a duly noticed Public Hearing to consider a request for approval of the property located in mid La Quinta at 51555 Madison Street, La Quinta, California (the "Property"), as a "Qualified and Certified Large Lot," as defined, in accordance with LQMC Section 3.25.057; and WHEREAS, the City published a public hearing notice in The Desert Sun newspaper on March 8, 2024, as prescribed by the LQMC and State Planning and Zoning Law (Gov. Code Section 65000 et seq.); public hearing notices were also mailed to all property owners within 500 feet of the Property; and DOC #2024-0083408 Page 12 of 15 Resolution No. 2024 — 011 Qualified and Certified Large Lot — 51555 Madison Street Adopted: March 19, 2024 Page 2 of 4 WHEREAS, upon hearing and considering all testimony and arguments, the City Council approves the Property as a Qualified and Certified Large Lot for the following reasons: 1) The Property has a "Lot Area," as defined, comprised of a single parcel of 9.25 acres, or 402,930 square feet, which is greater than the Lot Area requirement of no less than 25,000 square feet pursuant to Section 3.25.057(A)(1) of the LQMC; and 2) The Property has an existing main dwelling and two (2) accessory dwelling units, with a combined total of 5,553 square feet, between all three units, of living area available for use; and 3) The total number of approved bedrooms shall be established at the issuance of an STVR permit, and shall be verified at least annually during the STVR permit renewal. Riverside County Assessor records show there are two (2) bedrooms in the main dwelling for this Property; and five (5) additional bedrooms between the two (2) accessory dwelling units on the parcel, which are presently under review to verify compliance with current building code regulation and permitting, and if confirmed, would increase the total number of bedrooms to seven (7) amongst all existing dwellings on the parcel; and 4) The Property shall be subject to the allowed daytime and overnight occupancy limits established pursuant to Section 3.25.070(B) of the LQMC based on the approved number of bedrooms; and 5) The Property is located in mid La Quinta, and is not within a residential project governed by a homeowners' association (HOA), and there are no applicable HOA conditions, covenants, and restrictions (CC&Rs) or any other applicable governing documents that may restrict the use of the Property as an STVR unit; and 6) The use of the Property as an STVR unit is not prohibited or otherwise inconsistent with any recorded instruments governing the use of the Property; and 7) On-site inspection of the Property was conducted on March 6, 2024, by the City's Municipal Code Compliance Office to verify: a. The locations of outdoor gathering/living spaces and entertainment areas, including but not limited to any pool(s), spa(s), BBQ areas, courtyard(s), and recreational activities (such as games — putting green, corn hole, ping-pong table, croquet, basketball hoop, etc.) are as shown in enclosed "Exhibit A — Site and Parking Plan," incorporated herewith by this DOC #2024-0083408 Page 13 of 15 Resolution No. 2024 — 011 Qualified and Certified Large Lot — 51555 Madison Street Adopted: March 19, 2024 Page 3 of 4 reference; and the physical distance and their proximity to neighboring properties is unlikely to cause a disturbance; and b. There is adequate on-site parking for use of the Property as an STVR unit, in accordance with Section 3.25.050(F) of the LQMC, as shown in enclosed "Exhibit A — Site and Parking Plan," incorporated herein by this reference. The Property does not have a garage and street parking is not available, however, it is located behind a private gate, and can accommodate three (3) cars in the driveway from the gate to the main dwelling, and has a large parking area at the bottom of the property; and 8) The single parcel is not, nor will the single parcel ever be for the duration of the Property's approval as a Qualified and Certified Large Lot, subject to a subdivision, lot -line adjustment, lot merger, or any other alteration of the single parcel under the Subdivision Map Act in Division 2 (commencing with Section 64410) of Title 7 of the California Government Code or under Title 13 of the LQMC, which would result in the single parcel no longer being in compliance with the original approval by the City under Section 3.25.057 of the LQMC pursuant to this Resolution; and 9) The City Council does hereby authorize the City Manager, or designee(s), to execute a land use covenant (the "Notice, Agreement, and Covenant Affecting Real Property"), in a form approved by the City Attorney and executed by the owner of the Property, memorializing the terms and conditions applicable to the Property, for the duration of the Property's approval as a Qualified and Certified Large Lot for use as an STVR unit, with said land use covenant to include this Resolution, along with all Exhibits, and Conditions of Approval, if any, imposed by the City Council at the public hearing. The executed land use covenant shall be recorded against the Property in the Riverside County Recorder's Office no later than sixty (60) days after the adoption of this Resolution, or such later date as may be mutually agreed upon by the owner of the Property and the City Manager. 10) There are a total of 6 active STVR permits within a 500 -foot radius from the Property as of this writing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The foregoing recitals are true and correct, and constitute the findings of the City Council in this case, and are incorporated herein by this reference. SECTION 2. The City Council does hereby approve the Property as a Qualified and Certified Large Lot pursuant to Section 3.25.057 of the LQMC. DOC #2024-0083408 Page 14 of 15 Resolution No. 2024 — 011 Qualified and Certified Large Lot — 51555 Madison Street Adopted: March 19, 2024 Page 4of4 SECTION 3. This Resolution shall go into effect upon adoption and the City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 19th day of March, 2024, by the following vote: AYES: Councilmembers McGarrey, Pena, Sanchez, and Mayor Evans NOES: Councilmember Fitzpatrick ABSENT: None ABSTAIN: None ATTEST: MONIKA RAD' VA, erty Clerk City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California C LIND EVANS, Mayor City of La Quinta, California DOC #2024-0083408 Page 15 of 15 Large Parking Area Main Dwelling Outdoor Living Areas Driveway Parking Large Parking Area 1