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ORD 504ORDINANCE NO. 504 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AN AMENDMENT TO A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CP DEVELOPMENT LA QUINTA, LLC. CASE: DEVELOPMENT AGREEMENT 2003-006, AMENDMENT NO.4 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 Planning Commission of the City of La Quinta, California did, on the 25' day of September, 2012, hold a duly noticed Public Hearing to consider a recommendation on an amendment to a Development Agreement, and after hearing and considering all testimony and arguments, did adopt Planning Commission Resolution 2012-020, recommending to the City Council approval of Development Agreement 2003-006 Amendment 4; and, WHEREAS, the City Council of the City of La Quinta, California did, on the 16th day of October, 2012, hold a duly noticed Public Hearing to consider an amendment to a Development Agreement by and among the City of La Quinta and CP Development La Quinta, LLC for property located at the southeast corner of Washington Street and Miles Avenue, with said amendment to be executed by La Quinta Residence Limited Partnership, an assignee of CP Development La Quinta, LLC; and WHEREAS, the Planning Department published a public hearing notice in The Desert Sun newspaper on October 5, 2012 as prescribed by the Municipal Code regarding this proposal. Public hearing notices were also mailed to all property owners within 500 feet of the project site; 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 an amendment to the Development Agreement: Ordinance No. 504 Development Agreement 2603-006, Amendment No.4 CP Development La Quints, LLC / La Quinta Residence Limited Partnership Adopted: November 6, 2012 Page 2 1. The proposed Development Agreement Amendment (Exhibit A) is internally consistent with the goals, objectives, and policies of the General Plan and Specific Plan 2001-055, in that it will result in promoting residential development in a controlled and logical manner that is compatible with the neighborhood. 2. The land uses authorized and regulations prescribed for the Development Agreement Amendment are compatible with the zoning and its related regulations applicable to the property. 3. The proposed Development Agreement Amendment conforms with the public convenience and general welfare by providing for extensive public improvements and conforms to good land use practice by encouraging a long-range comprehensive approach to development of the site. 4. Approval of this Development Agreement Amendment will not be detrimental to the health, safety and general welfare since adequate provisions have been made in previous City approvals to provide for necessary and desirable improvements which are incorporated herein. 5. Approval of this Development Agreement Amendment will not adversely affect the orderly development of the subject or surrounding properties nor preservation of area -wide property values, but rather will enhance them by encouraging planned -phased growth. 6. Consideration of this Development Agreement Amendment has been accomplished pursuant to California Government Code Section 65864 at 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, the City Council of the City of La Quinta, California does ordain as follows: SECTION 1. APPROVAL. The City Council hereby approves and adopts the Development Agreement Amendment in the form presented to the City Council concurrent with the approval and adoption of this Ordinance, and authorizes and directs the City Manager to sign the Development Agreement Amendment on Ordinance No. 504 Development Agreement 2003-006, Amendment No.4 CP Development La Quinta, LLC / La Quinta Residence Limited Partnership Adopted: November 6, 2012 Page 3 behalf of the City, and the City Clerk to record the Development Agreement Amendment in the Official Records of Riverside County in accordance with applicable law. SECTION 2. ENVIRONMENTAL. The La Quinta Planning Department has prepared Environmental Assessment 201 1-617 for this project, in compliance with the requirements of the California Environmental Quality Act (CEQA). The Planning Director has determined that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent and mitigation measures have been incorporated. Therefore, the Planning Director recommended that a Mitigated Negative Declaration of environmental impact and associated Mitigation Monitoring Program be adopted and -the City Council did adopt said Mitigated Negative Declaration and Mitigation Monitoring Program prior to this action; and, 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. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 6th day of November 2012, by the following vote: AYES: Council Members Evans, Franklin, Henderson, Osborne, Mayor Adolph NOES: None ABSENT: None ABSTAIN: None C�U)()Jo-'L DON AD PH, Wayor City of La Quinta, California Ordinance No. 504 Development Agreement 2003-006, Amendment No.4 CP Development La Quints, LLC / La Quints Residence Limited Partnership Adopted: November 6, 2012 Page 4 ATTEST: Susan Maysels, City erk City of La�Quinta, California (City, Seal) \` APPROVED AS 7O=F&M: l M./Kithbrine Jen[�oy(, City A City of La Quint alifornia Ordinance No. 504 Development Agreement 2003-006, Amendment No.4 CP Development La Quinta, LLC / La Quints Residence Limited Partnership Adopted: November 6, 2012 Page 5 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ► CITY OF LA QUINTA ► I, SUSAN MAYSELS, 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. 504 that was introduced at a regular meeting on the 16th day of October, 2012, and was adopted at a regular meeting held on the 6" day of November 2012, 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 City Council Resolution 2006-1 15. SUSAN MAYSELS, CVy Clerk City of La Quinta, California DECLARATION OF POSTING I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on November 8th, 2012, pursuant to City Council Resolution. SUSAN MAYSELS, C Clerk City of La Quinta, California EXHIBIT A RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta P.O. Box 1504 La Quinta, CA 92247 Attn: Citv Clerk (Exempt from Recording Fee per Go 't Code § 27383) AMENDMENT NO.4 TO DEVELOPMENT AGREEMENT This AMENDMENT NO.4 TO DEVELOPMENT AGREEMENT ("Amendment. No. 4") is made and entered into as of , 2012 C Effecti*e 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 California (the "City"), and LA QUINTA RETIREMENT RESIDENCE LIMITED PARTNERSHIP, a Washington limited liability company ('Developer"). RECITALS: A. On or about December 18, 2003, the former La Quinta Redevelopment Agency ("Agency'? and CP Development La Quinta, LLC, a California limited liability company (the "Original Developer"), .entered into that certain Disposition and Development Agreement (the "Original DDA"), pursuant to which the Agency sold to the Original Developer that certain real property located southeast of the Miles Avenue and Washington Street intersection in the City'of La Quinta,. California 92253 (the "Site"), and the Original Developer agreed to construct, complete, and operate thereon a commercial project containing a medical officetsurgical facility, a development containing sanctuary villas, a mid -price suites hotel, a resort -style condominium/casitas development, two (2) sit-down restaurants, and two (2) single-family residential developments, with forty (40) of the single-family homes restricted for sale to income -eligible buyers at restricted sales prices (collectively, the "Original Project'). B. The Original DDA has been amended on six (6) occasions, on or about October 28, 2004, on or about December 7, 2004, on or about November 2, 2005, on or about October 20, 2006, on or about August 23, 2007, and on or about March 19, 2008 (collectively, the "Prior DDA Amendments"). The Original DDA, as amended by the Prior DDA Amendments, is hereinafter referred to as the "DDA," and the Original Project, as amended by the Prior DDA Amendments, is hereinafter referred to as the "Project." C. Concurrently with the execution of the Original DDA; the City and the Original Developer entered into that certain Development Agreement dated December 18, 2003, and recorded against the Site on January 5, 2004, as Instrument No. 2004-0005256in the Official Records of the County of Riverside (the "Official Records"), for among other purposes, UVOI5610-0061 31V303.2 a09n1l12 identifying the terms, conditions, and regulations for the construction of the Original Project (the. "Original Development Agreement"). D.. City and the Original Developer have previously amended the Original Development Agreement on three (3) occasions for purposes of modifying the Original Development Agreement consistent with the Prior DDA Amendments, as follows: (i) on or about October 28, 2004, City and the Original Developer entered into that certain Amendment No. 1 to Development Agreement, which was recorded in the Official Records on November 8, 2004, as Instrument No. 2004-0885063, (ii) on or about November 17, 2005, City and the Original Developer entered into that certain Amendment No. 2 to Development Agreement, which was recorded in the Official Records on December 19, 2005, as Instrument No. 2005-1045418, and (iii) on or about May 6, 2008, City and the Original Developer entered into that certain Amendment No. 3 to Development Agreement, which was recorded in the Official Records on June 4, 2008, as Instrument No. 20OM303530 (collectively, the "Prior Development Agreement Amendments'). The Original Development Agreement, as amended by the Prior Development Agreement Amendments, is hereinafter referred to as the "Development Agreement.", E. On or about April 4, 2005, Parcel Map No. 31116, in the City of La Quints, was filed in the Official Records of the County of Riverside in Book 212 of Parcel Maps at pages 60- 66, inclusive (the "Parcel Map'). The Parcel Map created legal parcels within the Site, including but not limited to "Parcel 8," which was originally designated for development of a sixty (60) unit single family residential development, and "Parcel 6" and "Parcel 7," which were originally intended' for development of medical office buildings. Pursuant to Lot Line Adjustment No. 2006-452, processed. through the City by the Original Developer, said "Parcel 6, "Parml 7," and "Parcel 8" were merged into "Parcel A" and "Parcel B." F. On or about July 1, 2011, CP sold and Developer purchased "Parcel B" for the purpose. of Developer's construction thereon of (i) a one hundred thirty-two (132) suite retirement community, (ii) four (4) single story duplex cottages, (iii) a. seventy-two (72) suite assisted living community, and (iv) a thirty-two (32) bed memory can facility (collectively, the "Senior Living Facility"). "Parcel B" is legally described in Exhibit "A', which is attached . hereto and incorporated herein by this reference. G. On June 28, 2011, the Governor signed Assembly Bill 26 -C ABx1 26') and companion bill Assembly Bill 27 ("ABil 27") from the 2011-12 First Extraordinary Session of the California Legislature. ABxl 26 immediately suspended all redevelopment agency activities, except continued performance of "enforceable obligations; and set forth a process to dissolve redevelopment agencies and end redevelopment in California. ABxi 27 provided a "voluntary alternative redevelopment program," which would have allowed redevelopment agencies to remain in existence and continue redevelopment, if remittance payments were made to cover the State of California's budget shortfall for fiscal year 2011-12 and were made in subsequent fiscal years to cover State costs. A lawsuit was filed, challenging the constitutionality of both ABx1 26 and ABxl 27. The California Supreme Court upheld the constitutionality of ABxl 26, revising the effective dates of certain provisions, and struck down as unconstitutional ABxl 27. (Californla Redeevelopment,4ssn: v Matosantos (2011) 53 Cal.0 231 ("CRA Case"). ABxl 26 is chapter 5, Statutes 2011, First Extraordinary Session, which added Part 1.8 (suspension provisions) and Part 1.85 (dissolution provisions) of Division 24 of the Health and Safety Code. zursmz azp03.2x sr .owrrnz -2- Under the CRA Case, all redevelopment agencies dissolved February 1, 2012. Pursuant to Health and Safety Code section 341710), added by Part 1.85 of Division 24, and City Council Resolution No. 2012-002, the City is the "successor agency" to the former Agency. H. On June 27, 2012, the Governor signed Assembly Bill 1484 from the 2011-2012 Regular Session of the California Legislature ("AB 1484"), which established that successor agencies are separate legal entities from the entities that provide for their governance. As a result of AB 1484, the successor agency to the former Agency is now formally the "City as Successor Agency to the La Quinta Redevelopment Agency" (the "Successor Agency"). I. Concurrently herewith, Developer has submitted and the City has processed, an amendment to the Center Point Specific Plan, also known as Specific Plan No. SP2001-055, as previously amended (the "Specific Plan'), to modify the uses permitted on certain portions of the Site (the "2011 Specific Plan Amendment"), and (ii) the Developer has submitted to the Successor Agency, for approval, that certain Amendment No. 7 to Disposition and Development Agreement ("Amendment No. 7 to DDA") to modify the residential component of the Project to provide for the development of the Senior Living Facility. J. The City and Developer now desire to amend the Development Agreement to modify the description of the Project and certain obligations of the Developer set forth therein. The parties contemplate that, concurrently with the City Council's consideration of this Amendment No. 4, (i) the City Council will consider the 2011 Specific Plan Amendment, and (ii) the Successor Agency will consider Amendment No. 7 to DDA. K. The City Council has determined that this Amendment No. 4 is consistent with the City's General Plan and the Specific Plan, as amended by the 2011 Specific Plan Amendment, including the goals and objectives thereof. L. 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. M. On 2012, the City Council adopted its Ordinance No. approving this Amendment No. 4. Unless otherwise specified herein, all capitalized terms in this Amendment No. 4 shall have the meaning ascribed in the Development Agreement. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and for valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. The Development Agreement is hereby amended as follows: 1.1 To replace Section 3.1(C) with the following:.. 81=15616OD61 3127303.2 &"21112 _ -3- . (C) a retirement living facility ("Senior Living Facility'), to be constructed on Parcel B of Lot Lime Adjustment No. 2006-452 in the City of La. Quints; with (i) a 132-suite retirement community; and (ii) four single -story duplex cottages; and (iii) a 72-suite assisted living community; and (iv) a 32-bed memory care facility; 2. This Amendment No. 4 shall .not be effective unless and until C) the Successor Agency has approved Amendment No. 7 to DDA, and the Successor Agency and Developer have executed Amendment No. 7 to DDA, and (ii) Developer and the Original Developer have executed an assignment and assumption agreement, in a form approved by the City Attorney, pursuant to which the Original Developer assigns to the Developer and the Developer assumes from the Original Developer all of the Original Developer's rights and obligations under the DA with respect to Parcel B and the Senior Living Facility. 3. Except as otherwise expressly provided in this Amendment No. 4, all of the terms and conditions of the Development Agreement shall remain in full force and effect. 4. In the event of any action between City and Developer seeking enforcement of any of the terms and conditions to this Amendment No. 4, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. 5. This Amendment No..4 shall be construed according to its fair meaning and as if prepared by both parties hereto. 6. This Amendment No. 4 shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this. Amendment No. 4. 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 California. 7. Time is of the essence of this Amendment No. 4 and of each and every term and provision hereof. 8. A waiver of a provision hereof; or modification of say provision herein contained; shall be effective only if said waiver or modification is in writing, and signed by both City and Developer. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 9. Signatures of the parties transmitted by facsimile shall be deemed binding. However, each party agrees to submit their original signature to the other parry within five (5) business days after execution hereof, sevolwla.00sl 31273032 &MI/12 4- .. _ .......... 10. This Amendment No. 4 may be executed in counterparts, each of which, when this Amendment No. 4 has been signed by all the parties hereto, shall be deemed an original, and i such counterparts shall constitute one and the same instrument. 11. The Person(s) executing this Amendment No. 4. on behalf of each of the parties hereto represent and warrant that (i) such party is duty organized and existing„ (u) they are duly authorized to execute and deliver this Amendment No. 4 on behalf of said party, (iii) by so executing this Amendment No. 4 such party is formally bound to the provisions of.this Amendment No' 4, and (iv). the entering into this Amendment No. 4 does not violate any provision of any other agreement to which such party is bound. [Signatures on next page] 887/015610-0061 31273032aOMI/12 -5- IN WITNESS WHEREOF, City and Developer each hereby represents that it has read this Amendment No. 4, understands it, and hereby executes this Amendment No. 4 to be effective as of the day and year first written above. "Developer" LA QUINTA RETIREMENT RESIDENCE LUMTED PARTNERSHIP, a Washington limited partnership By: La Quinta GP LLC, a Washington limited liability company Its: General Partner By: Hawthorn Management Services Corp., a Washington ration Its: Manager/& Date: O Est- 2012 By: Barton G. Colson Its: President Katy„ CITY OF LA QUINTA, a California municipal corporation and charter city . organized and existing under the Constitution of the State of California Date: 2012 By: Frank J. Spevacek, City Manager ATTEST: Susan Maysels, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP By: M. Katherine Jenson, City Attorney 31273032.osmn2 -6- �� State of ) County of+av me VRR k ) OnAb4ki /0 j beforeme, Win R. EiO'wS Notary Public, personally appeared &4M cz, <IDsat w w and We of the officer)who proved to me on the basis of satisfactory evidence to be the personal whose nameA is/ere subscribed to the within -instrument and acknowledged to me that helshekhey executed the same in hisAwxAkeir authorized capacity(ies), and that by hisilierkheir signaturox on the instrument the persof}W,, or the entity upon behalf of which the personXCted, 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 Si afore N � gn State of California County of Riverside On before me, NOTARY PUBLIC STATE OF WASHINGTON ROBIN R. GOINS COIItlD"00 26.2015- (insert woe and Me of the officer) Notary Public, personally appeared who 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 hatshe/they executed the same in his/her/their authorized eapacity(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. Signature 633/D15610.0061 3137303.1s09/71/12 - - -7- (Seal) LEGAL DESCRIPTION OF PARCEL B Reai prape ty in the City of La Qum, County of Rhmrside, Slate of Callbnla, described as . rdlows: PARCEL B AS SHOWN ON LOT LINE ADJUSTMENT NO.2006-452 AS EVIDENCED BY D MENT RECORDED APRIL 19, 2006 AS INSTRUMENT NO.2006.02OD726 OF OFFICIAL RECORt$S, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: IN THE CITY OF LA QU TTA, COUNTY OF RIVMSIDE, STATE OF CALTFORNIA, PARCEL 8 TOGETHER WITH THAT PORTION OF PARCEL 7 OF PARCEL MAP NO.3111.6, AS SHOWN BY MAP ON FILE IN BOOK 212, AT PAGES 60 THROUGH 66, INCLUSIVE, OF PARCEL MAPS, RIVERSIDE COUNTY RECORDS, BEING IN THE SOU H HALF OF SECTION 191 TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., MORE PARTICULARLY DESCRIBED AS .FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID PARCEL. 8; THENCE ALONG THE SOUTHEASTERLY, EASTERLY AND NORTHERLY BOUNDARY LINES OF SAID PARCEL 8 THROUGH THE FOLLOWING FIVE (5) COURSES: (1) NORTH 43° 56' 44" EAST, A DISTANCE OF M65 FEET; (2) THENCE NORTH 00012' 13" WEST, A DISTANCE OF 790.73 FEET; (3) THENCE SOUTH 8r 47' 47" WEST, A DISTANCE OF 239.56 FEET TO THE BEGINNING OF A TANGENT CARVE, CONCAVE NORTHEASTERLY, HAVING.A RADIUS OF 80.00 FEET; (4) THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A -CENTRAL ANGLE OF 450 27 41; AN ARC DISTANCE OF 63.48 FEET, (5) THENCE TANGENT TO SAID CURVE NORTH 440 44' 32" WEST, A DISTANCE OF 91.61 MET TO THE BEGINNING OF A NON -TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 440.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 490 W 37" EAST; THENCE SOUMWESTERLY ALONG THE ARC OF SAID. CURVE AND CONTINUING ALONG SAID NORTHERLY LINE OF PARCEL 8 AND ALONG THE NORTHERLY LINE OF SAID PARCEL 7, THROUGH A CENTRAL ANGLE OF 236 S4' 45", AN ARC DISTANCE OF 183.63 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE NORTHWEST' ny, HAVING A RADR S OF 840.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 2911` 52" EAST, THENCE SOUIFRNESTERLY ALONG THE ARC OF SAID CURVE AND CONTDNUiNG ALONG SAID NORTHERLY LINE OF PARCEL 7, THROUGH A CENTRAL ANGLE OF 040 02' 08", AN ARC DISTANCE OF 59.16 FEET TRH THE MOST NORTHERLY NORTHWEST CORNER OF SAID PARCEL 71 8MIS610aa1 312M12AM1112 THENCE ALONG THE WESTERLY LINES OF SAID PARCEL 7 THROUGH THE FOLLOWING THREE (3) COURSES- . (1) SOUTH 160 37 14" EAST AND NON -TANGENT TO LAST SAID CURVE, AS DISTANCE OF 55.87 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 250.00 FIST, (2) THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 20° 4P 2201 AN ARC DISTANCE OF 90.27 FEET; (3) THENCE TANGENT TO SAID CURVE SOUTH 040 02' 06' WEST, A DISTANCE OF 333.46 FEET TO THE NORTHWESTERLY PROLONGATION OF THE SOUTHWESTERLY LINE OF SAID PARCEL 8; THENCE LEAVING SAID WESTERLY LINES OF PARCEL 7 AND ALONG SAID PROLONGATION AND SAID SOUTHWESTERLY LINE OF PARCEL 8, SOUTH Sp ICY 13" EAST, A DISTANCE Of 592.88 FEETT+O THE POINT OF BEGINNING. EXCEPTING THEREFROM AGENCY EXCEPTS AND RESERVES FROM THE CONVEYANCE, HEREIN DESCRIBED ALL INTEREST OF THE AGENCY IN OIL GAS,. HYDROCARBON SUBSTANCES AND MINERALS OF EVERY KIND AND CHARACTER LYING MORE THAN FIVE HUNDRED (500) FEET BELOW THE SURFACE, TOG£IHER WITH THE RIGHT TO DRILL INTO, THROUGH, AND TO USE AND OCCUPY ALL PARTS OFTHE PROPERTY LYING MORE THAN FIVE HUNDRED (500) FEET BELOW THE. SURFACE THEROF FOR ANY AND ALL PURPOSES INCIDENTAL TO THE EXPLORATION FOR AND PRODUCTION OF OIL, GAS, HYDROCARBON SUBSTANCES OR MINERALS FROM SAID PROPERTY OR OTHER LANDS, BUT WITHOUT, HOWEVER, ANY RIGHT TO USE EITHER THE SURFACE OF THE PROPERTY OR ANY PORTION THtROF WITHIN FIVE HUNDRED (500) FEET OF THE SURFACE FOR ANY. PURPOSE OR PURPOSES WHA7SOEYER, OR TO USE THE PROPERTY IN SUCH A MANNER AS TO CREATE A DISTURBANCE 70 THE USE OR ENJOYMENT OF THE PROPERTY, AS RESERVED IN THE DEED FROM LA QUINTA REDEVELOPMENT AGENCY, RECORDED DEC EMBER 09, 2004 AS INSTRUMENT NO.04.979137 . OF OFFICIAL RECORDS. APN: 604-630.027-6 31273 3.2.M1 II37307.i a09R1/I2 -2- PARCEL ON PARCEL 'A' M515 AC. PARCH. i PARCEL C B2 Qk4= uo — 0 M= Eu To BE PARCEL TO 9,481 AC. PARCEL 0 LOY .. . Q Lm UNE To OE LOT of OW � .d. PARCEL 8 SEE DETAIL •A• AT UPPER LEFT SCALE: 1" = 2W' H�ftoft y UNE 94 t IVMSA CoNsuma4 }, ING LEG 19 iMmfSWM h AS0W Esume wr LNE To K oozea ■ CAmwep ■ LWBUWMg� 3MRMibexLintrRMcm=■eASri90 E7pSeRiC LOT LWE TO REAWN NEWAWUMM LOT JAW TW WMM (M 720pL r FAx szr.TMr sNTEr i OF 2 J.N. 1612 RLy7RICTED ACCESS .. ii/i/ii/. roe pm 21 60-" enroese:oaMI 3:27303aaovnI112 -3-