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2007 Crowne Pointe Partners, LLC - DA Deposit 2007-02-13February 13, 2007 Mr. Louis Swart, President Pacific Security Capital 8905 SW Nimbus Avenue, Fourth Floor Beavorton, OR 97008 Re: DEVELOPMENT AGREEMENT DEPOSIT Dear Mr. Swartz: Pacific Security Capital has recently requested the City enter into a Development Agreement for the Eden Rock development project. The City will take the necessary steps, at Pacific Security Capital's sole expense, not including`in-house-City staff time, so that the City will be able to process the Development Agreement. The City is in receipt of your check for the additional $10,000 for a total of $15,000 to reimburse the City for expenses associated with processing the Development Agreement. These funds will cover the costs associated with preparing the Agreement including Rutan & Tucker's time, RSG's time, and any other third -party cost items. This letter serves as a "Deposit Agreement" by and between Pacific Security Capital and the City. The Deposit shall be used to reimburse the City for all costs incurred by the City in the processing of the Development Agreement, with the exception of in-house staff time. It is anticipated that the Agreement will be presented to the City for consideration and potential action in the future. Pacific Security Capital and the City understand that the City is reserving the right to exercise discretion as to all matters over which the City is, by law, entitled or required to exercise discretion. By executing this Deposit Agreement, the City is not committing or agreeing to undertake any activity requiring the subsequent discretion of the City, or any department of the City. The City's execution of this Deposit Agreement is merely an agreement to allow the necessary work to be completed, at Pacific Security Capital's expense, to bring the Development Agreement forward for City consideration. Nothing in this P.O. Box 1504 • LA QUINiA, CALIFORNIA 92247-1504 78-495 CALLF. TAMPICO • LA QUINTA, CALIFORNIA 92253 (760) 777-7000 •PAX (760) 777-7101 Mr. Louis Swart, President Pacific Security Capital February 13, 2007 Page 2 Deposit Agreement shall be deemed to constitute a commitment by the City to approve the Development Agreement, or a prejudgment of the matters required to be considered as part of the decision whether or not to approve the Agreement. Please document Pacific Security Capital's concurrence with these terms and limitations by signing below and returning the originally executed letter to Douglas Evans, Community Development Director. Sincerely, /Xz Thomas P. Genovese City Manager APPRO AS TO F RM BY: M. a herine Jenson City Attorney, City of La Quinta ACCEPTANCE OF DEPOSIT AGREEMENT: PACIFIC SECURITY APITAL By. iit j ours SWh�'T ✓_ a.t.a Date: