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HomeMy WebLinkAboutPlanning Comm Reports/1990/01/17 AGENDA City Planning Commission Chula Vista, California Wednesday, January 17, 1990 - 5:00 p.m. Conference Rooms 2 & 3 1. PUBLIC HEARING: Consideration of Development Agreements for: A) EastLake II - Greens (PCS-88-3) B) EastLake III - General Development Plan for EastLake Trails, Vistas, and Woods (GPA-90-5) 2. Annual Appointment of Planning Commissioner to Growth Management Oversight Committee for 1990 ADJOURNMENT AT p.m. to the Planning Workshop Session immediately following. WORKSHOP ON WATER SPEAKERS: Mark Watton - Otay Water District Gary Butterfield - Sweetwater Authority Bill Robens- Ad-Hoc Water Task Force COMMISSION COMMENTS PUBLIC COMMENTS DIRECTOR'S COMMENTS: Proposed field trip to Bayfront (see attached letter). ADJOURNMENT AT p.m. to the Regular Business Meeting of January 24, 1990, at 7:00 p.m. in the Council Chambers. 7:00 p.m. - Commissioners and guest speakers will be dining at Jake's. City Planning Commission Agenda Item for Meeting of January 17, 1990 Page l~) PUBLIC HEARING: PCS-88-3, Consideration of a Development Agreement for EastLake Greens A. BACKGROUND On June 21, 1989, the Planning Commission recommended approval of the 830 acre EastLake Greens Project (6-0, 1 abstention). On July 11, 1989, the City Council approved EastLake Greens wi th varying voting majorities on various sub items of the project. On July 26, 1989, the Planning Commission approved the EastLake Greens Development Agreement in concept. The City Council decided that they did not want to consider the draft agreement until after the EastLake III and Olympic Training Center General Development Plans were resolved. Because of a number of changes in the agreement since last July, especially with respect to growth management, we are bringing the agreement back to you prior to Council consideration. B. RECOMMENDATION Accept staff version of the Development Agreement. C. DISCUSSION General The benefit to the City in entering the agreement is the required participation by the Developer to finance and construct various public facilities. The developer is required to finance and construct those facilities normally associated with and required to support the development. The public facilities taken into consideration with the agreement are those that are in excess of the normal requirements or where the developer is accelerating the completion of the improvement to the benefit of the City and the community. Removal of the contingencies on the Olympic Training Center site is also a benefit of this agreement and the EastLake III agreement being considered as a companion item. Examples of these public facility benefits to the City are as follows: 1. Advance funding and construction of the Phase II community park improvements including a community center and a gymnasium. 2. Advance funding and construction of Telegraph Canyon Road widening to a full 6 lanes instead of only 4 lanes. 3. Advance funding for construction of a new branch library. 4. Advance funding of downstream drainage improvements to Telegraph Canyon Drainage Channel, in part to mitigate existing deficiencies. 5. The dedication of right-of-way for future SR #125 as a freeway plus interchanges. City Planning Commission Agenda Item for Meeting of January 17, 1990 Page 2 These improvements total about $4.3 million in value. In return for the above benefits, the City would vest the right of the developer to develop and maintain his project for the uses and densities set forth in the EastLake Greens SPA Plan. In addition, where the applicant pioneers certain public facilities he will be credited against future development impact fees and/or subject to reimbursement. Also, in terms of improving certain transportation facilities beyond current need, the City would use its best efforts to reserve capacity for the EastLake Greens Project to the extent feasible as stated in the Agreement. It should be noted that EastLake will be subject to all SPA and Tentative Tract Map conditions as well as all of the environmental requirements and mitigation. Further, EastLake Greens is subject to the City's Thresholds Standards Ordinance, East Chula Vista Transportation Phasing Plan, the City's future Growth Management Program and the Public Facilities and Finance Plan. The City has the right to stop issuing building permits as occurred with EastLake I, if cumulative dwelling unit totals and traffic threshold provisions are exceeded at any particular phase. The format of the development agreement is generally patterned after the City's most current development agreement which is for Rancho Del Rey. The major new sections added since the Commission last discussed the draft Greens agreement in July have to do with growth management and are highlighted below. D. Growth Management The new sections of the agreement on this subject are Sections 4.12 through Section 4.15, p. lO and p. ll, of the Draft Development Agreement. Section 4.12 Application of a Pending General Plan Growth Management Element - This section recognizes that the City is preparing a Growth Management Element text and plan/program and specifies that when adopted it automatically becomes a part of the agreement. Section 4.12.1 Project Timing and Phasing Requirements - The section points out that the project phasing is tied to meeting the thresholds and the provisions of needed public improvements so long as it doesn't effect the developer's minimum project rate assurance discussed subsequently in Section 4.13. Section 4.12.2 Limitation on Further Regulations Aside from the references to the General Plan, Growth Management Element, the Financing Plan, the Draft Transportation Phasing Plan, the Quality of Life Thresholds and the balance of the Agreement, this Section notes that nothing else is intended by the parties to regulate the phasing and timing of development. City Planning Commission Agenda Item for Meeting of January 17, 1990 Page 3 Section 4.13 Minimum Project Development Rate Assurances - The intent of this section is to establish a floor or minimum authorization for the issuance of building permits for the project as long as all of the other provisions of the document are met. This will be discussed in greater depth in the next section of the staff report. Section 4.14 Modifications to the Municipal General Plan - This section acknowledges the ongoing study by the General Plan Task Force, the preliminary action by the Council on Sections 4.0 through 6.3 of the General Plan Policies, November 21, 1989, and the outstanding referral to a further clarification of the cluster policy. The final action on this policy automatically becomes part of the agreement. EastLake however, in any case, is assured of no less than 1,267 dwelling unit in the Greens. (The Greens was proposed for 3,609 units and reduced by the Commission and Council to 2,774 dwelling units. The 1,267 units represent the single family lots within the project which received tentative map approval in July 1989, and these are not affected by the Policy changes.) Section 4.15 "Committed" Development Increment This section embodies the concept that if a particular development increment has fully met all of its public facility infrastructure requirements, the development of that increment can proceed. Amendments to the Growth Management Element/Plan shall not be retroactive to that element but shall pertain to all "uncommitted" development increments. E. MINIMUM PROJECT RATE ASSURANCES 1. Proposals Section 4.13 makes reference to Schedule "A" attached. EastLake, through the 7-year term of the agreement, wants assurance as to a minimum assured number of dwelling units. Staff would ideally prefer to wait until the Growth Management Plan is fully developed to address the issue. However, based predominantly on the uniqueness of the Olympic Training Center Proposal and the need for this agreement to move forward, staff feels that the concept of a "safety net" or minimum development assurance can be implemented at this time. It must be approached through in a very conservative way to the ultimate long-term protection of the City and the public interest. Staff has major disagreement with EastLake, as to both the time frame for a minimum assurance and the number of dwelling units affected. The EastLake Proposal and the alternate staff recommendation are shown in Schedule A attached as Exhibit 1 and 2. EastLake's rationale is discussed in their attached position paper. EastLake would like to vest and assure their ability to develop the 1,645 dwelling units which constitute Phase I of the Greens through December 31, 1990. In subsequent years, they would like assurance to develop at 484 dwelling units per year. They would also like the ability to carry forward any units not developed in any one year to City Planning Commission Agenda Item for Meeting of January 17, 1990 Page 4 subsequent years at the rate of 100 percent not to exceed 200 dwelling units per year. Both EastLake and the staff agree that low and moderate income housing and custom lots should not be counted on in the consideration of any such assurance program. Staff's position is that only 1,250 dwelling units total should be assessed rather than the total buildout of the Greens sought by EastLake (2,774 currently approved, 3,609 desired through subsequent amendment). Staff feels that any assurance should be for only 3 years instead of 7. Finally, the rate of assurance by staff is suggested at 450 units in 1990-91 versus the approximate 800+ units sought by EastLake (1,645 units for 90-91) and 350 units in 1992 versus EastLake's 484 for that year as well as subsequent years of the agreement. 2. Staff Rationale Staff feels that any "safety net" concept has to be looked at in the context of at least six factors. a. Relationship to the Transportation Phasing Plan and the SR #125 threshold. b. Precedent and impact on other developers in the Eastern Territories. c. Historical rate of development for Chula Vista. d. Protection of community character and quality of life. e. Ability of all agencies City, school, water, utility to provide services in a timely fashion and not be overwhelmed in any short period of time by a "record" development pace. f. Ultimate growth management policy/program. With regard to the TPP (Transportation Phasing Plan) and SR #125, it appears that the threshold requirement for #125 will occur well in advance of the seven year life of EastLake's Development A§reement.(which can be extended under certain circumstances to 10 years). This will be a major development constraint for Chula Vista in the future and to go beyond it in terms of any development assurance would be imprudent. Second, it is obvious that there is more development potential being sought cumulatively by the various developers than can be accommodated prior to the need for SR #125. Using information in the TPP, current project approvals and proposals, there appears to be almost twice the demand as available roadway capacity would dictate at acceptable levels of service. This also does not take into account the Otay Ranch potential development. Put another way, Rancho Del Rey, Sunbow and others could probably absorb all City Planning Commission Agenda Item for Meeting of January 17, 1990 Page 5 the capacity without any further EastLake development. Or EastLake Greens/Trails and Rancho Del Rey could develop to the exclusion of everyone else {i.e., about 8,000 dwelling units). So, a balancing act is important to protect the City's development options, phasing and facility impacts, and pending growth management program. Third, the historical rate of development in Chula Vista has been about 1,500-2,000 dwelling units per year. Barring evidence to the contrary, this appears to be an acceptable benchmark. Finally, intertwined with any rate decision are character impacts, quality of life impacts, and service impacts from too rapid development. The rates advanced to staff are felt to be reasonable ones in light of all of the above factors. It should be pointed out that the higher allocation in 90-91 may be appropriate as EastLake and Rancho Del Rey will be the predominant players with product ready to develop with perhaps the additional start-up of Sunbow or Salt Creek I. A1 so, the Otay Water District allocation program will temper development in the short range. As one goes beyond '92, more and more developers will be theoretically vying for a shrinking pie. Also, the fourth "barrel" water pipeline is expected to be completed around this time. The city's growth management plan will be addressing the facility phasing and development phasing issue for the balance of the 90's. In conclusion, allocating EastLake 350-450 permits over a 3-year period or 17% to 23% of the City's historical annual rate of development, is a conservative position. With the water allocation program, the City's other controls and the stage that most other projects are with General Development Plans, SPA Plans and so on the risks to the City can be minimized. Development agreements for other projects should follow adoption of the Growth Management Program. E. DENSITY TRANSFER EASTLAKE HILLS/SHORES TO EASTLAKE VILLAGE CENTER A final issue raised by EastLake is the transfer of 156 units authorized within EastLake I but never used by the various merchant builders. EastLake would like to recoup those units and add them to the 405 dwelling units already approved for the Village Center {see page 6 of EastLake Position Paper Discussion). On September 18, 1989, EastLake requested that the amendment be approved administratively. On October 18, 1989, EastLake was advised that this request was potentially significant and beyond administrative discretion. Staff concluded that environmental review, a SPA Plan amendment application and Precise Plan were in order. We are still of that opinion. The transfer issue should be evaluated on its merits at that time and not be a consideration with this agreement. WPC 7101P EASTLAKE RECOMMENDATION EXHIBIT 1 SCHEDULE A PROJECT DEVELOPMENT RATE ASSURANCES Column A Column B Column C. Minimum Assured Dwelling Authorized Carry Forward Units (DUs) During Time of Assured Permits for Time Period Periods 1/ Dwellinq Units 2/ Through December 1,645 1004 of Assured 31, 1990 Dwelling Units January 1, 1992 484 DUs/Calendar Year 1004 of Assured through expiration Dwelling Units of the Term of the Development Agreement 1/ The Minimum Assured Dwelling Units is in addition to both authorized dwelling units constructed for persons or families of low or moderate income, as defined by California Health and Safety Code Section 50093, or any successor provision, and dwelling units built upon "custom lots." For purposes of this Agreement, custom lots are defined as legal lots sold to individual purchasers who separately contract for the construction of residences thereon. 2/ If residential building permits for any of the Minimum Assured Dwelling Units during the time period specified are not issued, or lapse following their issuance, during the time period specified in Column A, the percentage(s) authorized by this Column C shall be multiplied times the number of such units for which permits have not been issued and/or permits which have lapsed and said product shall increase the Minimum Assured Dwellings as provided in Column B for which building permits will be issued during the next time period or periods specified in Column A, provided, however, that the increase in the yearly Dwelling Units authorized pursuant to Column B may not exceed an additional 200 Dwelling Units per calendar year. 3~/ Notwithstanding the Minimum Assured Dwelling Units, the following improvements shall be committed, if not committed by Sunbow, prior to occupancy of more than 962 dwelling units in EastLake Greens: ° The widening of the north side of Telegraph Canyon Road to provide four (4) westbound travel lanes from the 1-805 northbound on-ramp to a point easterly of Halecrest. ° A feasibility study of the alternatives to improve capacity of the Telegraph Canyon Road at 1-805 northbound ramp/Halecrest intersection by removing the signalization at Halecrest and extending the median across the intersection to prohibit left turns. The alternative will include consideration of a new signal at the shopping center's existing driveway east of Halecrest. ° Improvement of Telegraph Canyon Road from Paseo del Rey to Paseo Ladera to a six-lane prime arterial roadway. STAFF RECOMMENDATION EXHIBIT 2 SCHEDULE A PROJECT DEVELOPMENT RATE ASSURANCES Column A Column B Column C Minimum Assured Dwelling Authorized Carry Forward Units (DUs) During Time of Assured Permits for Time Period Periods 1/ Dwellinq Units 2/ Through December 450 200 31, 1990 Through December 450 200 31, 1991 Through December 350 200 31, 1992 1/ The Minimum Assured Dwelling Units is in addition to both authorized dwelling units constructed for persons or families of low or moderate income, as defined by California Health and Safety Code Section 50093, or any successor provision, and dwelling units built upon "custom lots." For purposes of this Agreement, custom lots are defined as legal lots sold to individual purchasers who separately contract for the construction of residences thereon. 2/ If residential building permits for any of the Minimum Assured Dwelling Units during the time period specified are not issued, or lapse following their issuance, during the time period specified in Column A, then a maximum of 200 dwelling units may be carried over in any one calendar year for 1990, 1991 and 1992. 3~/ Notwithstanding the Minimum Assured Dwelling Units, the following improvements shall be committed, if not committed by Sunbow, prior to occupancy of more than 962 dwelling units in EastLake Greens: ° The widening of the north side of Telegraph Canyon Road to provide four (4) westbound travel lanes from the 1-805 northbound on-ramp to a point easterly of Halecrest. ° A feasibility study of the alternatives to improve capacity of the Telegraph Canyon Road at 1-805 northbound ramp/Halecrest intersection by removing the signalization at Halecrest and extending the median across the intersection to prohibit left turns. The alternative will include consideration of a new signal at the shopping center's existing driveway east of Halecrest. ° Improvement of Telegraph Canyon Road from Paseo del Rey to Paseo Ladera to a six-lane prime arterial roadway. 1 EASTLAKE DEVELOPMENT COMPANY POSITION PAPER BS 1/5/90 EASTLAKE II/III DEVELOPMENT AGREEMENTS "COMPROMISE PLAN" PROVISIONS OVERVIEW In the context of processing of entitlements for EastLake III, members of the City of Chula Vista City Council worked with EastLake Development Company to formulate a "compromise plan" as a basis for a good faith resolution of certain critical issues. The elements of the compromise plan were documented and a copy of the related Staff Report dated 10/17/89 is attached for reference as Exhibit A. It was understood at that time that the compromise plan was a good faith commitment only subject to the city's subsequent formal public review and approval processes. EastLake Development Company has lived up to every commitment made to the city of Chula Vista City Council and Staff in the context of the "compromise plan" discussions and the formalized documentation of those discussions. Nevertheless, EastLake Development Company reluctantly accepted a revision to Item #1 of the ,'Compromise Plan Components" (see Exhibit B) when the City of Chula Vista adopted an EastLake III General Plan Amendment and General Development Plan providing for a reduction of 67 dwelling units and 17 acres of commercial development relative to compromise plan provisions. Further, we have been asked by city Staff, and are still being asked, to make several additional concessions relative to Items #2 and #3 of the Compromise Plan Components. While considerable progress has been made in "bracketing" remaining issues with city Staff, efforts to further bridge the gap have been unsuccessful with the parties agreeing to disagree subject to the city Council's formal decision making process. The purpose of this position paper prepared by EastLake Development Company is to briefly summarize the Company's position on remaining issues and to provide the city Council with a summary of the supportive rationale. COMPROMISE PLAN COMPONENT ITEM #3, SAFE HARBOR PROVISIONS Issue: The document entitled "Compromise Plan Components" (Exhibit B) provides for "city execution of_a development agreement for EastLake Greens (i.e. EastLake IS) with expanded and strengthened provisions for "safe harbor" provisions re: growth management plan, voter-sponsored initiatives, changes in policies, rules, etc." 2 With regards to changes in policies, rules, etc., EastLake Development Company has asked that the project be governed by today's rules, regulations and policies whereas Staff has taken the position that they want the project to be subject to all new rules, regulations and policies as they may be passed in the future, specifically including, but not limited to, changes in the Transportation Phasing Plan and the adoption of a future Growth Management Element. Position: In an attempt to reach a mutually agreeable resolution with city Staff, EastLake Development Company has suggested that we be subject to future rules, regulations and policies but that we be given some minimum development rate assurances to wit that Phase 1 of EastLake Greens, 1,645 dwelling units, be allowed to proceed over the next two years and that we be guaranteed a floor or minimum dwelling unit count of 484 units per year after Phase 1 of EastLake Greens for the term of the development agreements, provided we continue to satisfy the city's Quality of Life Thresholds/Standards. Rationale: EastLake Development Company's rationale for the above position can be broken into two topics as follows: Topic: EastLake Greens Phase 1 (1,645 dus) 1. The economic viability of the EastLake Greens golf course/clubhouse requires installation of all 18 holes of golf plus the clubhouse complex over a one and one-half year period at a total front-end cost of approximately $15 million. Front-end golf course investments cannot be recouped through initial membership sales and must be substantially reduced/recouped through the sale of adjacent homes. With EastLake Development Company's decision to construct the golf course/clubhouse now versus constructing and selling adjacent homes prior to starting golf course construction, economic viability of the golf course operation has been made vulnerable to growth restrictions. A "safe harbor" for EastLake Greens Phase 1 area would effectively reduce this vulnerability. 2. The EastLake II ~6mmunity Association master budget, as approved by the California Department of Real Estate, necessitates that 1,655 dwelling units be annexed to the Association in order to: (1) allow the Association to own and maintain two of the neighborhood parks within EastLake Greens 3 and (2) reduce the effective homeowner's dues from $49.50/month initially to $36.50/month per unit. Restrictions on the number of dwelling units that could be annexed early-on would result in either significantly higher homeowner's dues or a significant compromise of amenity usage/ aesthetic quality. The annual budget in year one of the Association is approximately $330,000. A "safe harbor" for EastLake Greens Phase 1 would facilitate annexation of the necessary dwelling units to the association in a timely manner to ensure early construction of neighborhood parks, affordable homeowners association dues and a healthy homeowners association. 3. Based upon ongoing negotiations with candidate supermarkets for the EastLake Village Center development, it is now apparent that roughly 1,600 new dwelling units must be occupied in EastLake Greens and adjacent areas prior to the time that a supermarket anchor tenant will formally commit to the EastLake Village Center location. The specter of growth restrictions on EastLake Greens only exacerbates concerns of the supermarket chains and, thereby, makes it impossible for EastLake Development Company to get a level of commitment necessary to allow the much needed/desired support commercial center to be initiated. A "safe harbor" for EastLake Greens Phase 1 would do much to accelerate a supermarket commitment and, therefore, facilitate development of the shopping center. 4. In response to expressed desires of the city and community, EastLake Development Company has taken steps to provide many key community service facilities within the context of the EastLake Greens Phase 1 development program. Under any growth management scenario resulting in a changing of the city's current rules and policies, EastLake Development Company should receive equitable relief for relatively recent commitments for the following community-serving facilities: The construction of a $25 million dollar Telegraph Can~on Road street widening improvement resulting in 6 travel lanes (and an environmental greenbelt flood control channel) whereas only a 4-lane travelway was required. 4 The early construction of EastLake II Community Park at a cost of approximately $2.6 million with the facility targeted to be opened at the time of the first EastLake Greens move-in. The advance grading of a 49 acre EastLake High School site such that school construction can start this coming spring, a year in advance of the first EastLake Greens move-in. It should be noted that the 49 acre site is 14 acres larger than the 35 acre site required in the context of EastLake Development Company's agreement with the Sweetwater Union High School District. EastLake Development Company has already installed a major reclaimed water transmission main from the Otay Water District water reclamation plant to the EastLake Greens project area at a cost of approximately $900,000. The pipeline could have been delayed by as much as two years. EastLake Development Company will be installing extensive slope and streetscape landscaping prior to the first EastLake Greens residential move-in in keeping with our ongoing beautification efforts. · A "safe harbor" for EastLake Greens Phase i would provide equitable relief in acknowledgement of EastLake Development Company's recent commitments to sound facilities-driven growth management principles. Topic: A minimum annual dwelling unit count of 484 units per year after Phase 1 of EastLake Greens. 1. In the context of successful efforts to bring the Olympic Training Center to the city of Chula Vista, EastLake III development intensity/density was compromised with the understanding that inherent economic disadvantages to EastLake Development Company would be partially off-set via reduced risk associated with the remaining EastLake Development program. Certainty regarding a minimum level of building permits to be issued to the project on an annual basis represents a meaningful provision to reduce development program risks. 5 2. As a balanced planned community consistent with City of Chula Vista General Plan policies and state housing laws, EastLake must have the ability to offer a variety of housing types/prices on an annual basis. Merchant homebuilders (and their lenders) generally require one and one-half home sales per week (i.e. 78 home sales per year) to consider a housing product economically viable. A typical "balanced" EastLake product offering would include products for (1) established families (luxury SFD), (2) move-up/growing families (popular priced SFD), (3 and 4) compact families and family move-down housing (small-lot SFD and medium density condominiums), (5) first-time homebuying singles and singles living together (higher density condominiums), and (6) rental housing for both adults and families. Therefore, to insure a balanced housing offering each year, a City assurance of 484 dwelling units per year is reasonable and appropriate. 3. In order to satisfy a City requirement, EastLake Development Company has entered into legal agreements with two school districts leading to the formation of two separate community facilities districts financially guaranteeing the construction of a high school, middle school and four elementary schools. The marketability of related bond sales and, therefore, the school districts' ability to provide schools when needed (including needs beyond EastLake) is a function of the degree of growth control imposed on EastLake. Growth rate uncertainty results in increased risk to investors with potential adverse impacts on community educational needs. Conversely, assurances for a reasonable level of annual growth enhance marketability of bonds and the school districts' ability to provide facilities when needed. 4. EastLake Development Company will commence infrastructure construction on the extension of Telegraph Canyon Road, Hunte Parkway and Orange Avenue (including sewer and water infrastructure) to the Olympic Training Center site utilizing assessment distrigt financing with debt layered against undeveloperd EastLake property. The economic viability of the assessment districts and the economic vulnerability of EastLake Development Company are directly affected by the growth restrictions in place for the balance of the 6 EastLake property. Provision of a certain level of allowed annual growth will allow structuring of the assessment districts accordingly. It should be noted that EastLake Development and City Staff have agreed that, for the purposes of any definition of a floor or minimum dwelling unit count, building permits for low and moderate income housing and custom home lots, if any, would be an addition to whatever floor is ultimately established. COMPROMISE PLAN COMPONENT ITEM #2, DENSITY TRANSFER Issue: Documentation of the Compromise Plan Components provides for "city approval of density transfer (approximately 150 dwelling units) from EastLake Hills/Shores to EastLake Village Center." A total of 156 dwelling units previously approved for EastLake Hills/Shores but unused can be transferred to the EastLake Village Center area of EastLake I in accordance with Planned Community Zoning District Regulations and the EastLake I Development Agreement. EastLake Development Company has formally requested that the transfer be approved administratively prior to annexation of EastLake III to the City. city Staff has taken the position, however, that the transfer should not be approved administratively and indicated the more formal process through the City Council could take months to complete. Since the Compromise Plan contemplated a vesting of all agreements, including this density transfer, prior to or concurrently with annexation of EastLake III, EastLake Development Company cannot accept this delay. Position: It is EastLake Development Company's position that the City of Chula Vista can and should legally guarantee the transfer of previously approved but unused dwelling units within the EastLake Hills/Shores neighborhoods to the EastLake Village Center. We have suggested this transfer can be handled administratively under the current City ordinances and policies. In addition, we have also advanced an alternative solution which could be incorporated into the EastLake Greens Development Agreement. In lieu of the city and developer mutually agreeing to transfer the 156 approved dwelling units from EastLake Hills/Shores to the EastLake Village Center, the City and developer would agree to provide for the incremental units within the EastLake Greens neighborhood, subject only to the currently adopted General Development Plan and environmental clearances. Under this alternative proposal, should the city determine that a transfer of all 156 dwelling units to EastLake Village Center is 7 not appropriate for whatever reason, EastLake Development Company would be assured that the dwelling units would nevertheless be accommodated within the EastLake Greens neighborhood. Rationale: In February, 1985, the City of Chula Vista approved the EastLake I project which provides for, among other things, 2,384 residential dwelling units within the project boundary. The number of authorized dwelling units is consistently applied throughout the zoning document/General Development Plan, SPA and master tentative maps. The certified EIR for EastLake I specifically provides environmental clearances for 2,384 dwelling units and, in fact, required mitigation measures were based upon the assumption that all of the authorized dwelling units would be developed. The adopted Planned Community Zoning Regulations and Section 4.2 of the related EastLake I Development Agreement both specifically provide for the transfer of dwelling units within the confines of the EastLake I boundary. EastLake Development Company is simply requesting at this time that the City of Chula Vista administratively acknowledge that transfer of authorized but unutilized dwelling units from the EastLake Hills/Shores area to the EastLake Village Center area is assured subject only to subsequent administrative revisions to the related SPA documents. The density transfer provisions are part of the essence of the EastLake I Planned Community Zoning Regulations. As planned community zoning, the intent is to encourage flexibility in land use arrangements and product types flexibility that is essential for the long-term economic viability of large scale projects. While overall residential density limitations cannot be exceeded, the density transfer provisions are intended to avoid internal statistical limitations that would otherwise mechanically limit such flexibility. With specific reference to the density transfer requested, the physical accommodation of the dwelling units within the EastLake Village Center area would be subject to a precise plan approval by the city of Chula Vista. Nevertheless, should the City be unwilling/unable to commit to the EastLake I density transfer at this time, EastLaks Development Company feels that allocation of the EastLake Hills/Shores dwelling units to the EastLake Greens project would be appropriate at this time. The recently approved EastLake Greens entitlements specifically provide for vesting of additional dwelling units up to a maximum of 3,609 dwelling units within the EastLake Greens neighborhood. While the current authorization provides for 2,774-dwelling units, CEQA clearances and the related mitigation measures are based upon 3,609 units. We believe that the city of Chula Vista can legally vest the additional 156 dwelling units within the EastLake Greens neighborhood as an element of the EastLake Greens Development Agreement. Such a provision would be a timely honoring of the 8 good faith commitments inherent to the Compromise Plan as originally defined and give EastLake Development Company the guarantee that the units will be accommodated in EastLake Greens if not accomplished in the Village Center through the formal process. · .- -~--~-~.-~- EXHIBIT A CI1Y OF CHULA VISf'A PLANNING DEPARTMENT October 13, 1989 REPORT ON EASTLAKE MEMORANDUM AND CONCEPT PROPOSAL FOR EASTLAKE III/OLYMPZC TRAINING CENTER PLAN Attached for your information is a copy of the staff report' and recommendation on an item scheduled for City Council consideration at the meeting indicated on the report. If you wish to address the Council on this matter, you should ~lan to be present at the meeting which is held in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista. Please note that the meeting held on the first Tuesday of each month is scheduled at 4:00 in the afternoon. Meetings for the other Tuesdays of the month are. scheduled for 6:30 p.m. If you have any questions pertaining to this matter, please call at (619) 691-5101. Director of Planning /je Attachment cc: EastLake Development Company, Attn: Bob Santos, 900 Lane Avenue #100, Chula Vista, CA 92013 Dave. Nielson, San Diego Sports Training Foundation, 1904 Hotel Circle North San Diego, CA 92108 276 FOUF~TH AVENUE CHULAVISTA CALIFORNIA 92010'(6~9~ 691-5101 COUNCIL AGENDA STATEMENT Item Meeting Date 10/17/89 ITEM TITLE: Report on EastLake Memorandum and Concept Proposal for EastLake III/Olympic Training Center Plan SUBMIT-FED BY: Director of Planning~l~ REVIEWED BY: City Manager (4/Sths Vote: Yes No ) On August 29, 1989, the City Council transmitted a two page document prepared by EastLake to staff for evaluation and report, l~e intent of the document is to resolve certain land use issues between the deYe!oper and the City on the overall EastLake Project, including the EastLake III/Olympic Training Center Plan. RECOMMENDATION: That Council accept the report and direct staff to continue to process EastLake III and the Olympic Training Center SPA Plan. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. BACKGROUND: 1. Chronology EastLake I (Hills and Shores) was approved in 1986. EastLake II {Greens and Trails) was approved on July 18, 1989. The annexation of EastLake Greens was approved on August 22, 1989 and reconsidered and re-approved on August 29, 1989. EastLake Development Company now has on file with the City a General Plan Amendment for EastLake III (Woods and Vistas). The amendment, among other things, entails a total of 2008 dwelling units, 31 acres of commercial and 108 acres of light industrial. EastLake has also applied for Planned Community Zoning for the above, including the 154 acre Olympic Training Center Site. The draft EIR for EastLake III was considered by the Planning Commission on September 27, 1989 and continued to October 25, 1989. The final EIR and the project will be considered by the Commission on October 25, 1989. Council action will be scheduled in-November. In addition, a Sectional Planning Area Plan has been filed for the Olympic Training Center Site by the San Diego Sports Foundation. The SPA is tentatively scheduled for Planning Commission action in l~ovember and City Council in December or early January. In the case of EastLake Greens a development agreement has been submitted by the applicant. In the case of EastLake III, one is expected to be submitted shortly. Page 2, Item Meeting Date~ 2. EastLake Concept Proposal 8/29/89 In the attached two page document, EastLake is proposing to commit to a lower density than they originally requested for the EastLake III project, as well as make a major contribution of land and money for the Olympic Training Center. In return, EastLake is seeking additional protection for their project through development agreements. DISCUSSION: The concept proposal contains a number of density considerations. According to the original EastLake Master Plan in the early 1980's, the four Eas%Lake neighborhoods would have contained 11,800 dwelling units. However, under Scenario IV of the recently adopted General Plan, the overall target density for these neighborhoods would allow 8,373 DU's. Per the February, 1989 Statement of Intentions on the Olympic Training Center, EastLake was proposing to increase the amount of density allowed by the General Plan from 8,373 dwelling units to a maximum of 10,369 units, his increase would have been based upon not only contributions of assets to the community, such as the Olympic Training Center, but also good design and open space in compliance with Sections 6.2 and 6.3 of the General Plan. What is now proposed by EastLake, as of August 29, 1989, is that the total number of units be set at 8,905 units, with the additional 530 dwelling units above the General Plan being focused in EastLake III. Further, this increased density would be confined to the area just north of the Olympic Training Center. The remainder of EastLake III would be developed consistent with the General Plan Low Residential (0-3) category and Low-Medium (3-6) category. A possible exception to the 8,905 would be that EastLake would still have the ability to apply for a density above 4,034 in EastLake II in accordance with General Plan policies, but not based upon providing the Olympic Training Center. Further, in EastLake III, EastLake proposes that if they provide low and moderate income housing, consideration of a density bonus would need to be provided. Finally, EastLake wants to recoup approximately 150 units not developed by the various builders in EastLake I and add the units to the high density proposed in the Village Center. In addition to vesting or providing safe harbor in the EastLake development agreement for land use intensity, policies and rules, EastLake would like to protect the development from the growth management element. Regarding the growth management element, the position of EastLake is they have no idea what the element will be since it has not yet been completed. Once the proposal is known and adopted it may not be an issue~ Because of the uncertainty of what the nature of the growth management ele~Fent might be, there is a desire on their part to have the Greens, or some portion thereof, exempted from the growth management element. When the above occur, the EastLake Development Company will remove their contingencies attached to the donation of the 150 acres ($13 million) for the Olympic Training Center, the $3 million in donations and the $8 million in infrastructure for the OTC. Page 3, Item Meeting Date~ CONCLUSIONS: 1. Density Issues In terms of the EastLake density proposals, a number of steps will need to be taken including environmental assessment and various public hearings before the Planning Commission and Council. An amendment to the EastLake I SPA Plan will be needed to review the density transfer request therein. An amendment to the EastLake II General Development Plan and SPA Plan will be required to consider the addition of units back into EastLake Greens if permitted by the revised General Plan Policies [the task force reviewing the General Plan Policies is finished with their draft revisions and a public hearing is s~t with the ~lanni~g Comm~s$io~ for October 25, 1989]. The 1,835 units being proposed for EastLake III will be considered by the Commission/Council in late October, early November, as outlined previously. EastLake IV is pending some future unspecified date. The compromise plan reductions certainly represent a significant and positive change when compared with EastLake's proposal as reflected in the "Statement of Intention on the Olympic Training Center" acknowledged by the Council in February, 1989. It represents a 15 percent reduction overall for EastLake I-IV and a 19 percent reduction for EastLake III. However, EastLake III is still above the adopted General Plan in overall dwelling units and thus the need for the current General Plan Amendment application. In addition to residential uses, EastLake III includes some non-residential proposals which appear to have merit. A conference center, visitor commercial uses and small scale commercial support activities are proposed to complement the Olympic Training Center use and satisfy the support needs of the resident athletes. Some additional off-site residential housing at the medium, medium high or high density range might also be appropriate to serve athletes and visitors. The actual amount, location and total infrastructure and traffic impacts along with other General Plan level issues are yet to be analyzed and clarified. 2. Economic Issues Economic issues relate to the increased density request versus the value of the Olympic Training Center land donation, monetary donation, and infrastructure subsidies to the Olympic Site. We expect a full report by the Kibbey Company, real estate appraisers/consultants under contract to the City, within a couple of weeks to respond to these issues. At a very preliminary stage, their report is not expected to reflect any economic "windfall" to EastLake as a resu~ of its current density proposals compared to the value of its commitments to the OTC. 3. Development Agreement Issues The EastLake Greens Development Agreement will be brought back to Council in conjunction with EastLake III. Any processing schedule for any other Page 4, Item Meeting Date~ agreements will be dependent upon when the draft documents are presented to staff and a reasonable period being provided for their review. At this point, staff would intend to negotiate an EastLake III development agreement taking into full account EastLake's financial commitments to the Olympic Training Center. 4. Growth I4anagement Issues Part 1 of the Growth Management Plan, General Plan Policies, Growth Rate Report and Interim Controls Consideration is now being prepared by a consultant team and City Staff. Staff is very concerned about the potential~ihlplications of allowing any developments within the City to fall outside of the growth management framework. Allowing such to occur would raise equity issues, could significantly alter the intent of the program and could affect its successful implementation. For these reasons, we advocate that all developments be subject to the Growth Management Program (part 1 policies and part 2 program) which will come on line later this year. One middle ground being examined would be the possibility of safeguarding certain development phases against future amendments to the initially adopted program, if all of the infrastructure requirements associated with that phase have been fully satisfied. It goes without saying that the threshold standards would need to be maintained and would remain inviolate. We will continue discussion on these items with the developer as we review the development agreement documents. All other project reviews are diligently being pursued. FISCAL IMPACT: Unknown. WPC 6795P ~ EASTLAKE PLANNED COMMUNITY LAND USE COMPROMISE EASTLAKE STATEMENT SCENARIO IV PLAN POLICY OF AT TARGET AT TARGET NEIGHBORHOODS PLAN INTENTION DENSITY DENSITY EastLake I 2,384 2,384 2,384* EastLake II 4,869 4,034 4,034** EastLake III 2,272 1,303 1,835-** EastLake IV 844 652 652**** TOTALS 11,800 10,369 8,373 8,905 * EastLake I already has a Development Agreement. See Component #2. ** EastLake II Development Agreement to be prepared as per Component #3. EastLake Development Company may still apply for density above 4,034 in accordance with General Plan Policies but not based on providing the Olympic Training Center. *** EastLake III Development Agreement to be prepared as per components 1, 3 and 4. EastLake Development Company may apply for density above 1,835 solely as a density bonus for providing low/moderate income housing. **** EastLake IV will not have a Development Agreement for some time. Page i of 2 COMPROMISE PLAN COMPONENTS 1. City adoption of EastLake III General Plan Amendment and General Development Plan providing for: a. 150 acre Olympic Training Center (OTC) b. 42 acre mixed-use commercial/office/visitor/residential center adjacent to OTC. c. Expanded buildable area. d. Maximum I835 dwelling' units (i.e., new GP "target"). e. No low or moderate income housing without density bonus. 2. City approval of density transfer (approximately 150 dwelling units) from EastLake Hills/Shores to EastLake Village Center. 3. City execution of development agreement for EastLake Greens (i.e., EastLake II) with expanded and strengthened provisions for: A. "Safe harbor" provisions for some development increments re: growth management plan, changes in policies, rules, etc. B. Seven (7) year term. 4. City execution of development agreement for EastLake III with vesting of land use/intensity without further "compensation". 5. EastLake Development Company removal of contingencies to donation of 150 acres (valued at over $13 million), $3 million in capital and $8.0 million in infrastructure for Olympic Training Center purposes. 6. EastLake Development Company continue low-key OTC information plan and related efforts with increased role/visibility of the entire City Council. Page ~=of 2 OLYMPIC TRAINING CENTER COST OF CONTRIBUTION Cash Contribution $ 3,000,000 EastLake Development $ 5,400,000 Company Cost of Land Infrastructure : $ 8,000,000 Los Premiums (200 units) $10,000,000 EXHIBIT B COMPROMISE PLAN COMPONENTS 1. City adoption of EastLake III General Plan Amendment and General Development Plan providing for: a. 150 acre Olympic Training Center (OTC) b. 42 acre mixed-use commercial/office/visitor/residential center adjacent to OTC. c. Expanded buildable area. d. Maximum 1835 dwelling' units (i.e., new GP "target"). e. No low or moderate income housing without density bonus. 2. City approval of density transfer (approximately 150 dwelling units) from EastLake Hills/Shores to EastLake Village Center. 3. City execution of development agreement for EastLake Greens (i.e., EastLake II) with expanded and strengthened provisions for: ~ A. "Safe harbor" provisions for some development increments re: growth management plan, changes in policies, rules, etc.' B. Seven (7) year term. 4. City execution of development agreement for EastLake III with vesting of land use/intensity without further "compensation". 5. EastLake Development Company removal of contingencies to donation of 150 acres (valued at over $13 million), $3 million in capital and $8.0 million in infrastructure for Olympic Training Center purposes. 6. EastLake Development Company continue low-key OTC information plan and related efforts with increased role/visibility of the entire City Council. TABLE OF CONTENTS Page 1. Recitals. · . 1 Agreement .................................... 1.2 The Property: Developer's Interest ................... 1 1.3 Benefits to City ...................................... 1 1.4 Intentions of Parties in Entering Into This Agreement ............................................. 3 1.5 Adoption of Ordinance Approving Agreement ............. 3 1.6 Findings of City Council .............................. 3 2. Definitions ................................................. 3 3. Description of Property ..................................... 6 4. Vested Rights ............................................... 6 4.1 Right to Develop ...................................... 6 4.2 Maximum Height and size of Structures ................. 6 4.3 Right to Withhold Permits ............................. 7 4.3.1 Suspension of the Issuance of Permits .......... 7 4.3.2 Notification of Suspension .................. 7 4.3.3 Suspension is Not a Breach ................ 7 4.3.4 Determination of Adeq%lacy ................. 7 4.3.5 Traffic Studies ........................... 4.4 Required Condemnation ............................ 8 4.5 Changes in Development Increments ............. 8 4.6 Capacity .......................... [[~ ............ 8 4.7 Benefit of Earlier Vesting ....................... 9 4.8 Information Regarding Development Increments ......... 9 4.9 Resolution No. 13346 Quality of Life Thresholds ...... 9 4.10 Application of New Rules, Regulations and Policies... 10 4.11 Modifications of Approvals, Standards and Obligations ........................................... 10 4.12 Application of a Pending General Plan Growth Management Element .................................... 10 4.12.1 Project Timing and Phasing Requirements ....... 10 4.12.2 Limitation on Further Regulation .............. 10 4.13 Minimum Project Development Rate Assurances ........... 11 4.14 Modifications to the Municipal General Plan ........... 11 4.15 "Committed" Development Increment ..................... 11 5. Development Processing ...................................... 12 5.1 Processing of Application and Permits ................. 12 5.2 Pre-Final Map Development ............................. 12 5.3 Length of Validity of Tentative Subdivision ........... 12 5.4 Vesting Tentative Map ................................. 12 (i) 5.5 Final Map(s) .......................................... 12 5.5.1 "A" Maps and "B" Maps .......................... 12 5.5.2 Recordation of Final Subdivision Map in Name of Builder or Third Party ................. 13 5.5.3 Recordation of Final Subdivision Map in Developer's Name; Transfer of Obligations Under Subdivision Improvement Agreement(s) ..... 13 6. Urban Infrastructure ............. 14 6.1 Dedications, Re~i~ ~ ~~i ~ Land for Public Purposes .............................. 14 6.2 Pioneering of Facilities ....................... 14 6.2.1 Reimbursement ........................... 14 6.3 Parks ..................... 14 6.4 Insuran~[~[[[[[[[[i[[[i[~ ..................... 15 6.5 Other Developers ............................... 15 6.6 Route 125 ....... ~ .......... ... . .... :... 15 6.7 Assessment Districts or Public Flnanclng...........'''''''''''.. Mechanisms ............................... 15 6.8 Developer's Funding ................................... 16 6.8.1 Branch Library ................................. 16 6.8.2 Telegraph Canyon Drainage Channel .............. 16 6.9 Acceleration of Park Development ...................... 16 7. Development Impact Fees .................................. 16 7.1 Existing Development Impact Fee Program Payments. 16 7.2 Other Developers ................................. ~ 16 7.3 Use of DIF ....................................... '' 17 7.4 Withhold of Per, its ................................ 17 7.5 Consent to Future Development Impact Fees .......... 17 7.6 Developer's Transportation DIF Credit .............. 17 8. Binding Effect; Encumbrance of Property; ~ . 17 8.1 Binding Effect ..................... ~[[[[[[.i[~ 17 8.2 Discretion to Encumber ................................ 17 8.3 Status .. 8.4 Releases.~~~~~ii~ 1817 9. Annual Review; Notice ....................................... 18 9.1 Information to be Provided Developer .................. 18 9.2 Finding by City During Annual Review Period That Developer is in Default ............................... 19 9.3 Delay in Annual Review ................................ 19 10. Default 10.1 Option-- '-- -'---- '-- --'---- -- -----~--~t°'set'Matter'f°r'Hearing'0f'~~ 19 Legal Proceedings ..................................... 19 10.2 Waiver ....... . 19 10.3 Remedies Upon ~i~~~~ii.i~ 20 (ii) 11. Modification; Suspension; Termination ....................... 20 11.1 Emergency Circumstances ............................... 20 11.1.1 Notification of Unforeseen Circumstances ...... 20 11.1.2 Notice of Hearing .... 11.1.3 Hearing ............ [[[[[[[[[iiii[[iii[[[..iiii 2020 11.1.4 Unilateral Suspension ......................... 20 11.2 Change in State of Federal Law or Regulations ......... 21 11.2.1 Notice; Meeting ............................... 21 11.2.2 Hearing on Supersession of Development Agreement ..................................... 21 11.3 Modification by Mutual Consent ........................ 21 11.3.1 Minor Modifications ........................... 21 11.3.2 Notice of Termination ......................... 21 12. General Provisions ....... 22 12.1 Enforced Delay. iiiiiiii!iiiiiiii!.i.~iiiiii..iiiiiiiii 22 12.2 Notices ............. 22 12.3 Joint a~d Several Liability. . 22 12.4 Severabllity ................ [[~[[[[i[[~[[ii[[[~.[iiiii 22 12.5 Recordation of Agreement; Amendments .................. 23 12.6 Applicable Law. .. 23 12.7 Assignment ..... ~ii~~i~ii~iiii~.. 23 12.8 Term of Agreement. 12.10 Covenant of Good Faith and Fair Dealing ............... 23 (iii) DEVELOPMENT AGREEMENT BY AND BETWEEN EASTLAKE DEVELOPMENT COMPANY, Developer and CITY OF CHULA VISTA, City Dated: , 19__ 11/30/89 and 01/04/90 Revisions (as noted) DEVELOPMENT AGREEMENT California Government Code Sections 65864-65869.5 THIS DEVELOPMENT AGREEMENT ("this Agreement") is entered into on , 19__, between EASTLAKE DEVELOPMENT COMPANY, a California general partnership ("Developer"), and the CITY OF CHULA VISTA, a municipal corporation having charter powers ("City"), with reference to the recitals set forth below. 1. Recitals. 1.1 City's Authority to Enter Into Development Aqreement. City, as a charter city, is authorized under Resolution No. 11933, its Charter, and its self-rule powers to enter into binding development agreements with persons having legal or equitable interests in real property for the purposes of assuring, among other things (i) certainty as to permitted land uses in the development of such property, and (ii) construction of adequate public facilities to service such property, and (iii) provide for equitable reimbursement of reconstruction of excessive size or capacity public facilities. 1.2 The Property: Developer's Interest. Developer holds an enforceable right to acquire fee title to the property known as EastLake Greens described in Exhibit "A" ("the Property"). The Property is e subject to this Agreement. Developer is master planning the Property as the second phase of the EastLake Planned Community. Developer represents that it has a legal interest in the Property and that Developer intends that all other persons holding legal or equitable interest in the Property be bound by this Agreement. It is the Developer's intent to build on, sell or lease the Property or portions thereof to various Merchant Builders of residential property or developers of non- residential property (collectively "Builders") who may acquire portions of it and obligations with rights under this Agreement pursuant to the provisions with respect to assignments in accordance with Section 12.6. 1.3 Benefits to City. This Agreement is entered into for the purpose of carrying out the development of the Property in a manner that will ensure certain anticipated benefits to both the City (including, without limitation, the existing and future residents and populations of the City) as follows: (i) To provide and assure to the City the participation of Developer in the Financing Plan and the accelerated, coordinated and more economic construction, funding and dedication to the public of certain vitally needed public facilities and benefits, and to provide for anticipated levels of 11/30/89 service to residents and populations of the Property, the City, and adjacent areas, all as provided for in the General Plan; (ii) To provide and assure that the City receive sales tax revenues, increase in the property tax base, residential housing, sewer, water and street facilities. (iii) To provide and assure that the City and other public entities receive, subject to Developer's rights of reimbursement, public facilities in excess of Project generated impacts and such facilities shall be of supplemental size, number capacity or length, which shall be provided earlier than could be provided either by funds from the City or than would strictly be necessary to mitigate Project related impacts at any development phase; these commitments shall include the following: (a) Advance funding and construction of Phase II Community Park Facilities, as provided for in the EastLake Park Agreement approved by the City Council of the City of Chula Vista pursuant to Resolution No. on , 1989. (b) Advance funding and construction of a 50 mg reservoir on-site in part to mitigate an existing community wide deficit. (c) Advance funding and construction of Telegraph Canyon Road as a 6-lane travelway versus the 4-lanes required. (d) Advance funding for a branch library, as specified herein. (e) Advance funding for downstream drainage improvements to the Telegraph Canyon drainage channel, in part to mitigate an existing deficiency. (f) Provision of a 49-acre high school site and 10-acre elementary school site at no charge or significantly reduced land values. (g) Provision for a reclaimed water distribution system to serve the golf course, parks, schools and major open space areas thus reducing the regional impact of the project on water supplies. (h) Dedication of right-of-way acreage in excess of arterial highway standards for a future freeway plus interchanges (SR 125). 01/04/90 2 (iv) To provide the method of implementation of the City Council's condition, adopted on July 11, 1989 which requires that Developer's Project be subject to a General Plan Growth Management Element which consists of Part I text and Part II Plan/Program to be considered by the City Council and such provisions as the Council may adopt with respect to the authorization of residential densities in excess of a target density pursuant to the consideration by the Council of Sections 4 through 6.3 of the Land Use Element of the General Plan of the Municipal General Plan as adopted, in part, by the City Council on July 11, 1989. 1.4 Intentions of Parties in Enterinq Into This Aqreement. Developer and City intend to enter into this Agreement to: (i) assure Developer's participation in the construction and financing of public facilities pursuant to the Financing Plan, (ii) provide certainty in the land use regulations and policies applicable to the development of the Property, (iii) provide Developer with a vested right to proceed with the development of the Property to the land uses, densities and intensity of uses as provided below, (iv) provide Developer with assurance that a minimum number of residential dwelling units may be constructed during the time periods provided for hereinbelow, notwithstanding any policy modifications or requirements of the City of Chula Vista, (v) provide that the improvements required by the SPA shall be completed when necessary to service the needs created by Developer's project, and (vi) provide Developer with an equitable method of reimbursement and/or a credit for pioneered or excessive capacity facilities. 1.5 Adoption of Ordinance ADDrovinq Aqreement. On , 19__, City Council adopted Ordinance No. approving this Agreement: the Ordinance took effect on , 19__. This Agreement is first introduced on , 1989. 1.6 Findinas of City Council. City Council has found that this Agreement is consistent with City's General Plan, and all applicable mandatory and optional elements thereof, the EastLake Planned Community District Regulations, the EastLake Greens SPA, as well as all other applicable policies and regulations of City. 2. ~. In this Agreement, unless the context otherwise requires: 2.1 "Builder" or "Merchant Builder" means a developer to whom Developer has sold or conveyed property within the SPA for purposes of its improvement for residential, commercial or industrial use. 2.2 "City Council" means the City Council of the City of Chula Vista. 01/04/90 3 2.3 "Commit" shall mean all of the following requirements have been met with respect to any public improvement: (i) All discretionary permits have been obtained for construction of the improvement; (ii) Plans for the construction of the improvement have all the necessary governmental approvals; and (iii) Adequate funds (i.e. letters of credit, cash deposits, or performance bonds) are available such that the city can construct the improvement if either construction has not commenced within 30 days of issuance of a notice to proceed by the Director of Public Works, or construction is not progressing towards completion in a manner considered reasonable to the Director of Public Works. 2.4 "Developer" means EastLake Development Company and the legal persons to which or whom it may assign all or any portion of its rights under this Agreement. 2.5 "Development Increments" mean the increments of development as detailed in Appendix A to the draft Eastern Territories Phasing Plan, which is Appendix A to the Financing Plan (as hereinafter defined). 2.6 "Existing Approvals" shall mean all discretionary approvals and/or standards which have been approved or established in conjunction with or preceding the approval of this Development Agreement, as it relates to both the Project and the public improvements, consisting of, but not limited to: (i) The Municipal General Plan and all elements thereto in existence on the date of the first reading of this Agreement as an Ordinance by the City, incorporated herein by this reference; (ii) The EastLake Greens Planned Community Zoning Regulations, General Development Plan and Text, incorporated herein by this reference; (iii) The EastLake Greens SPA, incorporated herein by this reference; (iv) The EastLake Greens Public Facility Financing Plan, including any exhibits and appendices thereto, incorporated herein by this reference; (v) The Transportation Phasing Plan for the Eastern Territories of City, as ultimately adopted and amended; 11/30/89 4 (vi) The EastLake Greens Master Tentative Subdivision Map, incorporated herein by this reference; and (vii) The Quality of Life Thresholds (as hereinafter defined), incorporated herein by this reference. A list of the Existing Approvals, with the date or other description of the operative versions of such Existing Approvals and conditions thereto which apply to this Agreement are identified, and attached hereto as Exhibit B, and incorporated herein by this reference. 2.7 "Financing Plan" (or "PFFP") means the EastLake Greens Public Facilities Financing Plan, together with any exhibits and appendices thereto, including without limitation the Draft Eastern Territories Transportation Phasing Plan, and any modifications to such Plans agreed upon by the parties to this Agreement in the manner provided for herein. 2.8 "Future Discretionary Reviews and Approvals" means the approval by the City of all future discretionary permits and entitlements (excluding Existing Approvals), including but not limited to: (i) grading permit(s), (ii) site plan review, (iii) design guidelines and review, (iv) precise plan review, (v) resubdivision of areas previously subdivided pursuant to the Master Tentative Map, and (vi) the issuance of conditiona~ use permits, variances, encroachment permits, all other permits, and approvals of any type which may be required from time to time to authorize the construction of on- or off-site facilities required to construct the Public Improvements and/or the Project. 2.9 "Growth Management Element: means an ordinance, policy or program, as initially adopted by the City Council subsequent to the execution of this Agreement and consisting of Part I text and Part II Plan/Program, which is intended to regulate the timing and phasing or rate of growth within the City. 2.10 "Master Tentative Map(s)" or "Tentative Subdivision Map(s)" shall refer to the Tentative Subdivision Maps for the EastLake Greens SPA. The term "Final Subdivision Map(s)" shall refer to any Final Map approved pursuant to such Tentative Subdivision Map(s). 2.11 "Planned Community District Regulations" shall refer to the EastLake I Planned Community District Regulations, Second Amendment, as approved on , 19__. 2.12 "Planning Commission" means the Planning Commission of the City of Chula Vista. 2.13 "Project" means the development of the Property as represented by the SPA (defined below) and the Tentative Maps. 11/30/89 5 2.14 "Property" means the real property described in Exhibit "A". 2.15 "Public Improvements" means those public improvements set forth in the Financing Plan. 2.16 "Resolution No. 13346 Quality of Life Thresholds or Quality of Life Thresholds" mean those certain "Quality of Life" thresholds and/or standards requiring the construction or development of certain facilities to provide desired levels of service to the public, as adopted by Resolution No. 13346. 2.17 "SPA" means the Sectional Planning Area Plan for EastLake Greens approved by City on , 19__, and any modifications thereto agreed upon by the parties to this Agreement. The SPA covers the Property (defined above). The EastLake Greens SPA is by this reference made a part of this Agreement. 2.18 "Substantial Compliance," for the purpose of this Agreement and periodic review hereunder, shall mean that the party charged with the performance of a covenant herein, has sufficiently followed the terms of this Agreement so as to carry out the intent of the parties in entering into this Agreement. 3. Description of PropertY. The Property subject to this Agreement consists of approximately 830 acres in area and is located approximately 7.5 miles east of downtown Chula Vista, approximately 2 miles east of the Rancho Del Rey project. The Property is more particularly described on Exhibit "A". 4. Vested Riqhts. In consideration of Developer's participation in the construction and financing of public facilities and other benefits to the City as set forth hereinabove in Section 1.3, as are more particularly described in the Financing Plan and this Agreement, Developer is vested with the right to develop and maintain the Project to the land uses densities and intensities and at such a rate of development and subject to such standards as are set forth hereinbelow in this Paragraph 4. 4.1 Riaht to Develop. Subject to complying with applicable requirements of the Financing Plan, including the Quality of Life Thresholds and monitoring program described below, the Developer and Merchant Builders shall have the right to develop the Project for the uses and to the densities set forth in the Existing Project Approvals and as regulated herein by Sections 4.1 through 4.13.1. 4.2 Maximum HeiGht and Size of Structures. The maximum height and size of structures to be constructed on the Project will be governed by the Greens S.P.A. 01/04/90 6 4.3 Riaht to Withhold Permits. Developer agrees that city shall have the right to withhold the issuance of building permits for lots in the SPA, if the construction authorized by a Development Increment has been reached, unless and until the Developer or others have satisfied the obligation to Commit the construction of Public Improvements which correspond to the next Development Increment at issue. Except as provided in Subsection 4.3.1 and 4.12 where such Public Improvements have been Committed as required, the City must release to Developer building permits authorized for the next Development Increment. 4.3.1 Suspension of the Issuance of Permits. Developer agrees that the City may suspend the issuance of building permits, if such a remedy is provided pursuant to the appropriate Quality of Life Threshold and/or the Transportation Phasing Plan, where Developer has Committed the construction of required Public Improvements, if Developer's current construction on the Property has caused or immediately threatens to cause the Project to exceed the Quality of Life Thresholds, as reasonably determined pursuant to the studies referenced in Subsection 4.3.5 or otherwise. 4.3.2 Notification of Suspension. City agrees that where the issuance of building permits to Developer is to be suspended, pursuant to this provision, the City shall immediately first notify Developer of such proposed suspension. If a suspension is approved as provided for in the Quality of Life Thresholds and/or the Transportation Phasing Plan, it shall remain in effect only so long as the construction of Public Improvements which correspond to the relevant Development Increment have not been Committed as required; provided, however, that a suspension of building permit issuance shall occur pursuant to Subsection 4.3.1, only where such suspension is a remedy authorized by the Transportation Phasing Plan, and in such case, only for such period of time as is authorized therein. 4.3.3 Suspension is Not a Breach. In the event the issuance of building permits is suspended pursuant to the provisions herein, such suspension shall not constitute a breach of the terms of this Agreement by Developer, so long as development does not proceed beyond the identified Development Increments at which various public improvements are determined to be necessary. 4.3.4 Determination of Adequacy. Developer may request a written determination from the City regarding (i) the adequacy of any Public Improvement to be developed or funded by Developer with the reference to the Quality of Life Thresholds, and (ii) whether such Public Improvement is adequate for any Development Increment under the Financing Plan or the Transportation Phasing Plan. 01/04/90 7 4.3.5 Traffic Studies. Developer will fund, as requested by the City but no more often than quarterly, the reasonable costs associated with traffic studies to determine compliance with the Quality of Life Thresholds on street segments significantly impacted by building permits granted to Developer. 4.4 Required Condemnation. Should the construction of any facility require construction or installation of off-site improvements on land which neither the Developer nor the City has sufficient title or interest at the time the Threshold becomes applicable, acquire by negotiation or commence proceedings pursuant to Title 7 (commencing with Section 1230.010) of Part 3 of the code of Civil Procedure to acquire an interest in the land which will permit the improvements to be made, including proceedings for immediate possession of the land. In the event the City fails to meet this 120-day time limitation, the construction of the off-site Facility will be conclusively deemed to be waived as a condition to the continued issuance of building permits or occupancy permits.) Should the interest be in land outside the City and the City reasonably believes that it does not have the power to condemn the interest, then the City will use its best efforts to obtain such interest by negotiation or by convincing the jurisdiction in which the land is located to condemn the interest. Where the City is unable to acquire an interest in land necessary for the construction of the Public Improvement which should be commenced according to the Financing Plan, the City may agree to consider the substitution of another Public Improvement in place of the one scheduled so that Developer would not be delayed by the City's inability to acquire a necessary interest. For purposes of the foregoing sentence, the word "substitute" may include a reordering of the scheduled Public Improvements as they appear in the Financing Plan and/or the Transportation Phasing Plan. Nothing in this Agreement shall be deemed to preclude the City from requiring the Developer to pay the cost of acquiring such off-site land. 4.5 Chanaes in Development Increments. The Financing Plan anticipates an annual monitoring program and possible adoption of and revisions to a Regional Transportation Facility Financing Program. Nothing in this Agreement shall be deemed to prevent any such change from being applicable to the property. 4.6 Camacit¥. The city shall use its best efforts to reserve to Developer the capacity of any Public Improvements to the extent any such capacity, as measured by objective indicators such as Average Daily Trips (ADTs), is enhanced by the construction or funding by Developer. The term "reserve" as used in the foregoing sentence shall mean that the City, in calculating the amount and timing of infrastructure improvements to be developed or paid for by any other developer other than Developer, shall for all purposes assume such "reserved" capacity as though it represented capacity 11/30/89 8 actually in use by Developer, or Developer's successors-in-interest or assignees. The reservation of capacity to Developer under this Subsection 4.6 shall be subject to the following conditions: (i) the reservation of capacity for any project of Developer shall be available only for projects for which Developer has an approved General Development Plan and approved or pending Sectional Planning Area Plan for said project; (ii) the City shall not be responsible for claims on capacity reserved to Developer pursuant to this Subsection 4.6 from development outside of the City's jurisdiction or control; (iii) the City shall not be responsible for claims on capacity reserved to Developer pursuant to this Subsection 4.6 redevelopment of areas within the jurisdiction or control of the City where the City does not rezone or otherwise alter the permitted density for the redeveloped area; and (iv) if other developers request to use EastLake's "Capacity," they would have to a) pay fees to EastLake, b) pay fees to the City and the City would build the improvements to enhance capacity to EastLake or reimburse EastLake, or c) build alternate improvements as approved by the City. Notwithstanding the foregoing, nothing in this Agreement shall preclude the Developer from receiving credit for capacity which has been created by Public Improvements constructed or funded, in whole or in part, by Developer prior to the date the Parties sign this Agreement. 4.7 Benefit of Earlier Vestinq. Nothing in this Agreement will be construed as adversely affecting Developer's obtaining a vested right to continue development of the Project, if any, to the development and use of the Property in the manner specified in this Paragraph 4 pursuant to the provisions of California's Constitutional, statutory and decisional law. 4.8 Information Reqardin~ Development Increments. City will, from time to time, within a reasonable time after Developer's request, provide Developer with information regarding the current status of each Development Increment (i.e., the then-existing cumulative number of residential dwelling units, etc. in the Area of Benefit). 4.9 Resolution No. 13346 Oualitv of Life Thresholds. Each proposed Tentative Subdivision Map which comes before the City's Planning Commission and/or City Council for consideration and approval shall be reviewed for compliance with those thresholds and standards set forth in Resolution No. 13346 approved the City Council on November 17, 1987 ("Resolution No. 13346 Thresholds"). Notwithstanding any other provision in this Agreement, the City may disapprove any such Tentative Subdivision Map if it finds that, as of the date of the Tentative Subdivision Map approval hearing, the project covered by the Tentative Subdivision Map would not comply with any of the Resolution No. 13346 Thresholds. 11/30/89 9 4.10 ADDlication of New Rules, Requlations and Policies. The City may during the term of this Agreement, apply to the Project, Public Improvements and/or Property only such new development fees, rules, regulations and policies, ordinances or standards which are generally applicable to all private projects east of 1-805. It is the intent of the parties that the application of said rules, regulations and policies, ordinances or standards will not prevent the development of the Property to the uses, densities or intensities of development specified herein, or as authorized by the Existing Approvals. 4.11 Modifications of Approvals, Standards and Obliqations. It is contemplated by the Parties that City and Developer may mutually agree to modifications to the Existing Project Approvals, Public Infrastructure Requirements, or other modifications on the Project. Upon the approval by City, the written acceptance by Developer, following City's approval, such modification shall supercede any inconsistent Existing Project Approval. 4.12 ADDlication of a Pendinq General Plan Growth Manaqement Element. The parties recognize that the City is currently studying the feasibility and need for a General Plan Growth Management Element text and plan/program in the Eastern Territories of the City. During the term of this Agreement, the City Council may, by its own motion, adopted such a General Plan Growth Management Element text and plan/program which shall be incorporated into this Agreement, upon adoption and without further action by the parties, as though it were Existing Approval. If necessary, City and Developer shall solemnify the incorporation of such a General Plan Growth Management Element text and plan/program by executing an amendment to this Agreement. 4.12.1 Progect Timina and Phasinq Requirements. It is the intention of the Parties to this Agreement that Developer's right to proceed with each Development Increment shall only be conditioned upon the phased provision of on- and off-site Public Improvements designed to (i) through the needs of such Development Increments, or mitigate their impacts, and (ii) meet the Quality of Life Thresholds. The phasing, timing or rate of Project build-out shall also be subject to a Growth Management Element, provided, however, that no Growth Management Element or any provision thereof shall preclude or affect Developer's Minimum Project Development Rate Assurances pursuant to Section 4.13. 4.12.2 Limitation on Further Requlation. Developer's flexibility to respond to market factors in determining what rate to develop the Project, except where limited as set forth in this Agreement, is a material consideration in Developer's willingness to enter into this Agreement. This Agreement and the specific references herein to the General Plan Growth Management Element, the Financing Plan, the draft Transportation Phasing Plan 01/04/90 10 and Quality of Life Threshold, are intended by the Parties to be the only regulation of the Project as to the phasing, timing or rate of build-out directly or indirectly. 4.13 Minimum Project Development Rate Assurances. Notwithstanding any provision of this Agreement to the contrary, including, but not limited to, provisions anticipating minor modifications to the draft Transportation Phasing Plan, Public Facilities Financing Plan or the City's adoption of a Growth Management Plan and Element all as provided without limitation, pursuant to Sections 2.6(v), 4.3, 4.3.1, 4.5, 4.10, 4.12, 4.12.1, 4.12.2 and 4.15, Developer shall be entitled and assured of it's right to the issuance of residential building permits, subject to its satisfaction of the obligations of the Quality of Life Standards, at such time and in such numbers of building permits as specified on Schedule "A" attached hereto and incorporated herein by reference as Exhibit" ." Such assurance of Developer's right to residential building permits shall not be a limitation upon Developer's right to construct additional residential units should City policy and requirements, including those provided for by the existing Transportation Phasing Plan, Quality of Life Standards, Public Facility Financing Plan as well as a City Growth Management Plan and Element, be adopted which would otherwise authorize the construction of additional residential dwelling units. 4.14 Modifications to the Municipal General Plan. City is currently reviewing standards under which the density of a project may be increased, if at all, under Sections 4 through 6.3 of the Land Use Element of the General Plan. This Agreement and Developer's Project shall be subject to the standards adopted by the City for increasing the density of a project under Sections 4 through 6.3 of the Land Use Element of the General Plan and such standards, upon their adoption by the City Council, shall be incorporated into this Agreement, without further action by the parties, as though they were an Existing Approval; provided, however, that such standards shall only apply to Tentative Map unit numbers 9, 10, 11, 15, 16, 18, 20, 22, 23, 24, 25, 26, 27 and 28. Notwithstanding the density adjustments contemplated herein, the total units authorized for construction within the parcels listed above under any modification to Section 4 through 6.3 of the Land Use Element of the General Plan shall not be less than 1,267 dwelling units. 4.15 "Committed" Development Increment. Where the Developer has Committed the construction of the Public Improvements required for the next Development Increment, the phasing, timing, or rate of build-out for the next Development Increment shall be subject to the Growth Management Element, Part I text and Part II Plan/Program. Any amendment to such Growth Management element shall not be applicable to a "committed" development increment. 01/04/90 11 5. Development Processing. 5.1 Processinq of ADmlication and Permits. City will accept the processing and review of all Tentative Maps, Final Maps, development applications and permits or other entitlements with respect to the development and use of the Property in accordance with this Agreement and the SPA. 5.2 Pre-Final MaD Development. If Developer desires to do certain work on the Property (including, without limitation, grading) prior to the recordation of a Final Map for such portion of the Property, it may do so by obtaining a grading or other permit from the Director of Public Works of City. The Director of Public Works will issue such permit to Developer or its contractor upon Developer's application for the same if issuance of the permit would be in compliance with all applicable ordinances and regulations, and provided Developer posts a bond or other reasonably adequate security required by City in an amount to assure the rehabilitation of the land if the applicable Final Maps do not record. 5.3 Lenath of Validity of Tentative Subdivision. It is understood by the Parties to this Agreement that pursuant to existing law, a tentative subdivision map may remain valid for the length of term of this Agreement all as provided in Government Code Section 66452.6(a). The City therefore in accordance with the provisions of this Agreement agrees that the Master Tentative Map shall remain valid for a term coterminous with the length of this Agreement; provided, however, that the term of the Master Tentative Map shall not exceed the maximum allowed by law. No new condition shall be added to any map as a condition of its extension. 5.4 Vestina Tentative MaD. Developer may, at its option, process with City a vesting tentative map covering the Property which shall, upon approval, confer upon Developer a vested right to proceed with development of the Property in substantial compliance with the ordinances, policies, and standards described in California Government Code Section 66747.2. City will accept the processing and review of such a vesting tentative map covering the Property submitted by Developer to City. 5.5 Final Map(s). Prior to conveying any portion of the Property to a Builder, Developer will process with City a Final Subdivision Map(s) prepared substantially in compliance with the Tentative Map for such portion of the Property. Developer may finalize the Tentative Map(s) through as many final maps in such sequence or order as Developer determines is appropriate unless at the time of the City's approval of the Tentative Map(s) the sequencing for any map area was specified by the City. 5.5.1 "A" MaPs and "B" Maps. If Developer so elects, the City shall accept and process a Master Final Map ("A" 11/30/89 12 Map) showing "Super Block', lots, backbone street dedications and other necessary backbone facilities, easements and dedications, as the first phase map of a multi-phase project. "Super Block" lots shall be the subdivision units as shown on the Master Tentative Map(s) and shall not depict single family lots. All "Super Blocks" created shall have access to dedicated public street. The City shall not require improvement plans in order to record a Final Map for any "A" Map "Super Block" lots but the City may require preliminary improvement plans and bonding for the completion of backbone streets and other backbone facilities prior to recording in an amount to be determined by Developer and City. Following the approval by City of any Final Map for an "A" Map "Super Block" lot and its recordation, Developer may sell the "Super Block" lot. The buyer of a "Super Block" lot shall then process final improvement plans and grading plans and a final map ("B" Map) for each "Super Block" lot which the City shall accept and process as subsequent phases of a multi-phase project. The "B" Maps shall substantially conform to the approved Master Tentative Map(s) and "A" Maps. In the instance of the multi-family dwelling unit areas, a separate Tentative Map may be submitted to the City and the "B" Map(s) for these areas may be submitted to the City after the City Planning Commission approves said Tentative Map. 5.5.2 Recordation of Final Subdivision MaD in Name of Builder or Third ~art¥. After the "Super Block" "A" Map has been recorded, developer may, if it so elects with respect to any portion of the Property, convey such portion of the Property to a Builder or third party by a grant deed for any lots shown on the "A" Map to be recorded in the Official Records of San Diego County as one document number preceding that of the Final "B" Map fore portion of the Property so conveyed. In such case, the Builder or third party will (i) sign the Final Subdivision map for the portion of the Property so conveyed as record owner, (ii) enter into a subdivision improvement agreement with City where the improvements are required as a condition of the Final Map and (iii) provide security and insurance satisfactory to City for the completion of the subdivision improvements. 5.5.3 Recordation of Final Subdivision MaD in Developer's Name; Transfer of Obliaations Under Subdivision Improvement Aareement(s). If Developer so elects, it may defer the conveyance of any portion of the Property to a Builder or third party until after the Final "B" Subdivision Map(s) of such portion of the Property is recorded. If Developer elects to proceed in this manner, it will enter into the City's standard Subdivision Improvement Agreement(s) with City for the improvements required as a condition to the recordation of any such map(s). Under provisions of the Subdivision Ordinance, builder or a third party should enter into the Subdivision Improvement Agreement with the City and furnish all the necessary bonds. 11/30/89 13 6. Urban Infrastructure. 6.1 Dedications. Reservations and Improvements of Lan~ for Public Purposes. The portions of the Property to be reserved, dedicated and/or improved for public purposes are designated in the SPA and the Financing Plan and may be further described in the Tentative Subdivision Map(s). Such dedications, reservations and improvements will be imposed in accordance with the provisions of the California Government Code and the Chula Vista Municipal Code. 6.2 Pioneerinq of Facilities. Developer shall have the right, but not the obligation, to complete those off-site Facilities which constitute Regional Facilities within the Financing Plan. To the extent Developer itself constructs (i.e., "Pioneers") any improvements which are subject to a development impact fee program (including the DIF program described in Paragraph 7 below), Developer shall be given a credit against development impact fees otherwise payable, subject to the Public Works Director reasonable determination that such costs are allowable under the applicable development impact fee program. It is specifically intended that Developer be given DIF credit for the actual cost of the DIF program improvements it makes to Telegraph Canyon Road and Otay Lakes Road Facilities, and the fact that such improvements my be financed by an assessment district shall not prevent DIF credit from being given to the extent such district creates liened indebtedness against the Property. 6.3 Rei~bursement. Pursuant to the requirements of Government Code 66486 et seq., where Developer constructs or funds the development of public facilities in excess of those required to mitigate the impacts of Developer's Project, Developer shall be entitled to rei~bursement for the construction or development of such excess public facilities. Reimbursement under this Subsection 6.2.1 shall be the subject of a separate agreement or series of agreements. 6.4 Parks. In consideration of the vesting provisions of this Agreement, Developer agrees to dedicate land, construct or fund facilities in the manner required by the EastLake Parks Agreement approved by the City Council by Resolution No. on , 1989. The City further agrees to accept in conjunction with such agreement the development of 12.9 usable acres of park land for purposes of satisfaction of the requirements of the EastLake Park Agreement, the Public Facilities Financing Plan requirements and this Agreement. The City, in conjunction with said undertakings, will agree to waive the requirement of the payment of any and all Park Land Acquisition and Development Fees (PAD Fees). 6.5 Insurance. Developer shall name City as additional insured for all insurance policies obtained by Developer for this project as it pertains to the Developer's activities and operation 01/04/90 14 on the Project. 6.6 Oth~ers. Notwithstanding the provisions of Section 6.1 to the contrary, Developer hereby agrees to dedicate adequate rights-of-way for other developers to Pioneer Public Improvements; provided, however, as follows: (1) areas of dedication pursuant to this Section 6.5 shall be off-site to the Property as it is shown on the EastLake Greens Tentative Map; (ii) dedications pursuant to this Section 6.5 shall be restricted to those reasonably necessary for the construction of Hunte Parkway, Palomar Road and/or Otay Lakes Road; (iii) any dedications pursuant to this Section may require a widening of the circulation elements specified in (ii) but shall not require any greater building set-backs from such circulation elements than those specified in the SPA; (iv) the City shall use its best efforts to obtain agreements similar to this Section 6.5 from other developers in the Eastern Territories of City; and (v) the provisions of this Section 6.5 shall expire on the later of (a) three years from the date of the first execution of this Agreement, or (b) upon approval of a Specific Plan Area plan encompassing the circulation elements specified in (ii). 6.7 Route 125. Developer shall irrevocably offer to dedicate rights-of-way within the boundaries of the Exhibit A Property for the future SR 125 or any other interim facility within rights-of-way and per the existing approved tentative map. 6.8 Assessment D~stricts or Public Financing Mechanisms. This Agreement and the Financing Plan recognize that assessment districts, Mello Roos Community Facility Districts, or other public financing mechanisms may be necessary by Developer and City to be used to finance the costs of public improvement borne by this project. If Developer, pursuant to the Financing Plan, is required to install Public Improvements where the Financing Plan authorizes the use of assessment districts, Mello Roos Districts, or other public financing mechanism, the City may select the acceptable method of public financing, initiate and conclude appropriate proceeds for the formation of such financing district or funding mechanism, under the applicable laws or ordinances. Developer shall also have the right to request that City utilize, and City shall conduct (but shall not be required to approve) appropriate proceedings for any other financing methods which may become available under City or state laws or ordinances. All costs associated with the consideration and formation of such financing districts or funding mechanisms shall be advanced by Developer, subject to reimbursement as may be legally authorized out of the proceeds of any financing district or funding mechanism. 6.9 Developer's Fundinq. In consideration of the vesting provisions of this Agreement and City's performance of its duties and obligations under this Agreement, Developer agrees to provide funding for the following: 11/30/89 15 6.9.1 Branch Library. Developer shall provide funding for the construction of a portion of a branch library ("Library") which shall represent an advance payment of Development Impact Fees (DIF) from Developer to City. Developer shall release to city One Million Three Hundred Forty-Five Thousand Four Hundred Eighty-Eight Dollars ($1,345,488.00) within sixty (60) days of City's written request therefor and this sum shall represent Developer's complete obligation regarding the Library. 6.9.2 Telegraph Canyon Drainage Channel. Developer agrees to pay a fee for drainage within the Telegraph Canyon Drainage Channel, for the area described in Exhibit " " This fee shall not exceed $6,000.00 per gross acre within EastL~el with the total not to exceed $3 million. This fee shall be paid by the Developer, or his successors-in-interest, upon the City's issuance of building permits, to the Developer, or his successors- in-interest, for those properties that have not obtained building permits at the time of adoption of the drainage fee for Telegraph Canyon Channel. For those EastLake I and II properties within the Telegraph Canyon Drainage Basin boundaries that have already obtained building permits, reimbursement due EastLake for construction of drainage improvements will be reduced by the amount of developed acreage. EastLake waives any provision in the City of Chula Vista Code or State Law that forgives properties of drainage fee that have Tentative Maps approved. 6.10 Acceleration of Park Development. In further consideration of the vesting provisions of this Agreement and City's performance of its duties and obligations under this Agreement, Developer shall construct the first and second phases of the Community Park (as defined except for the required maintenance period in that certain Park Development Agreement between Developer and City) as a single phase of development by August 1991. 7. Development Impact Fee~. The following development impact fee program is hereby established for the Property. 7.1 Existing Development ImDact Fee Proqram Payments. Developer shall pay or cause to be paid to City all Development Impact Fees ("DIF"), or construct improvements in lieu of, for improvements covered by a building permit at the time of application for the building permit. The DIF will be in the amount established by City at the time of application for the building permit. 7.2 Other DeveloDeFs. The City will use its best efforts to impose and collect, or cause the imposition and collection of, the same DIF program on all the undeveloped real property located in the Area of Benefit described on Table of Chapter__ of the Financing Plan. 7.3 Use of DIF. Any DIF established by the City, and 11/30/89 16 fees paid thereunder with respect to any Area of Benefit shall be regulated by the Provisions of California Government Code Section 66000-66009a. The City shall expend such funds only for the projects described in the DIF. The City will use its best efforts to cause such projects to be completed as soon as practicable; provided, however, the City shall not be obligated to use its general funds for such projects. Nothing herein stated shall, however, prevent the City from using its general funds for such purposes. 7.4 Withhold of Permits. Developer agrees that City shall have the right to withhold issuance of any building permit for construction within the area of the Property unless and until the appropriate DIF is paid. 7.5 Consent to Future Deve%oDment Impact Fees. Notwithstanding the provisions hereinabove in this Section 7, no new DIF or amendment to any existing DIF shall be applied retroactively to require the payment of any additional fee with respect to projects for which permits have already been issued. 7.6 Developer's Transportation DIF Credit. Upon the completion of any transportation Public Improvement within the DIF, the City shall immediately credit Developer with the appropriate number of Equivalent Dwelling Unit credits (EDUs) as determined by Developer and City. Developer shall be entitled to apply any and all credits accrued pursuant to this Subsection 7.6 towards the required payment of future transportation DIF fees for any phase, stage or increment of development for any of Developer's projects within the Eastern Territories of City. The EDUs credited to Developer pursuant to this Subsection 7.6 shall be deemed to be pre-paid and freely applicable against future DIF obligations on an EDU basis. 8. Bindina Effect; Encumbrance of Property; Status. 8.1 ind' ect. The provisions of this Agreement will be binding upon and inure to the benefit of the parties successors-in-interest. 8.2 Discretion to Encumber. Nothing in this Agreement will prevent or limit Developer, in any manner, at Developer's sole discretion, from encumbering all or any portion of the Property or improvement thereon by any deed of trust or other security device. 8.3 Status. Each party will, within fifteen (15) days prior to written request, given written notice to the other party of whether the party giving the notice knows of any breach of this Agreement and its current understanding of status of performance under this Agreement. A copy of any such notice which is sent to Developer shall also be sent to the holder of any institutional first trust deed encumbering the Project if such holder has made 11/30/89 17 written request for notice and provided the City with the holder's address for notice purposes. 8.4 Releases. Once the required Public Improvements are installed the City may release portions of the Property from this Agreement. All areas of the Property designated for residential custom home lot construction shall be released from this Agreement by the City upon the request of any individual purchaser. 9. Annual Review; Notice. City will, once every twelve (12) months during the term of this Agreement, pursuant to California Government Code Section 65865.1, undertake a periodic review of the parties, compliance with the terms of this Agreement pursuant to the procedures set forth below. Developer shall present information with respect to Developer's good-faith compliance with Paragraph 9.1. In addition to the information provided by Developer in accord with Paragraph 9.1, City may request Developer address additional issues with respect to Developer's good-faith compliance with the terms of this Agreement. city shall deliver no less than thirty (30) days, written notice to Developer prior to any hearing of any requirement City desires to be addressed, and applicable staff reports, in a manner sufficient for Developer to respond. Either party may address any requirement of this Agreement during the review period. If at any time of review, an issue no previously identified in writing pursuant to Paragraph 9 is required to be addressed by City, the review at the request of either party may be continued to afford sufficient time for analysis and preparation. Such review by the City may be conducted by the City Manager. 9.1 Information to be Provided Developer. Pursuant to Government Code Section 65865.1, Developer shall have the duty to demonstrate its good-faith compliance with the terms of this Agreement at each periodic review. Developer's duty to demonstrate may be satisfied (except for additional issues raised by City pursuant to Paragraph 9) by the presentation to the City of: (i) a written report identifying Developer's performance or the reasons for its nonperformance or excused performance of the requirements of this Agreement, or (ii) oral or written evidence submitted at the time of review. 9.1.1 The parties recognize that this Agreement and the documents incorporated herein could be deemed to contain thousand of requirements (i.e., construction standards, landscaping standards, et al.), and that evidence of each and every requirement would be wasteful exercise of the parties, resources. Accordingly, Developer shall be deemed to have satisfied its duty of demonstration when it presents evidence of its good faith and substantial compliance with any issues requested to be addressed by City in accordance with Paragraph 9, and substantial compliance with the major provisions of the Financing Plan, SPA, and compliance with the restrictions on the uses, number, type, lots 11/30/89 18 and sizes of structures completed, and any required reservations and dedications to the City. Generalized evidence or statements shall be accepted in the absence of any evidence that such evidence is untrue. 9.2 Findinq by City Durinq Annual Review Period That Developer is in Default. If, during any annual review period, City, on the basis of substantial evidence, finds Developer has not in good faith complied with this Agreement, it will give Developer thirty (30) days, notice of default pursuant to Paragraph 10. 9.3 Delay in Annual Review. The City's failure to review annually the Developer's compliance with the terms and conditions of the Agreement shall not constitute or be asserted by City as a breach by Developer of any terms of the Agreement. 10. Default. If either party defaults under this Agreement, the party alleging such default will give the breaching party no less than thirty (30) days, notice of default in writing. The notice of default will specify the nature of the alleged default and, where appropriate, the manner and period of time in which said default and, where appropriate, the manner and period of time in which said default may be satisfactorily cured. During any period of cure, the party charged will not be considered in default for the purposes of termination or institution of legal proceedings. If the default is cured, then no default will exist and the noticing party will take no further action. 10.1 Option to Set Matter for Hearinq of Institute Leqa] Proceedinqs. After proper notice and the expiration of the cure period, the noticing party to this Agreement, at its option, may (i) institute legal proceedings, or (ii) request hearings before the Planning Commission and the City Council for a determination as to whether this Agreement should be modified, suspended or terminated as a result of each default. 10.2 Waive~. Nothing in this Agreement shall be deemed to be a waiver by Developer of any right or privilege held by Developer pursuant to federal or state law, except as specifically provided herein. Any failure or delay by a party in asserting any of its rights or remedies as to any default by the other party will not operate as a waiver of any default or of any such rights or remedies or deprive such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 10.3 Remedies UPon Default. In the event of a default by either party to this Agreement, the parties shall have the remedies of specific performance, mandamus, injunction and other equitable remedies. Neither party shall have the remedy of monetary damages against the other; provided, however, that the aware of costs of litigation and attorneys, fees shall not constitute damages based 11/30/89 19 upon a breach of this Agreement where such an aware is limited to (i) the costs of litigation incurred by the City, and (ii) the "fee" equivalent of the City's costs for the services attributable to litigation and representation by the City Attorney, including assistants and staff. 11. Modification; Suspension; Termination. 11.1 Emerqenc¥ Circumstances. If, as a result of specific facts, events or circumstances, City finds, following the procedures outlined in this Section 11 and based upon the preponderance of all evidence presented by the parties, that a severe and immediate emergency threat to the health and safety of the citizens of City requires the modification or suspension of this Agreement, City will: 11.1.1 Notification of Unforeseen Circumstances. Notify Developer of (i) the initiation of City's determination process, and (ii) the reasons for City's determination and all facts upon which such reasons are based; 11.1.2 Notice of Hearina. Notify Developer in writing at least fourteen (14) days prior to the date, of the date, time and place of the hearing and forward to Developer, a minimum of ten (10) days prior to the hearing described in Paragraph 11.1.3, all documents related to such determination and reasons therefor; and 11.1.3 Hearinq. Hold a hearing on the determination at which hearing Developer will have the right to address the City Council. At the conclusion of said hearing, City Council may take action to suspend this Agreement. City Council may suspend this Agreement if, at the conclusion of said hearing, based upon the evidence presented by the parties, the City finds that the suspension of this Agreement is required to avoid an immediate and sever threat to the health, safety and general welfare of the City; 11.1.4 Unilateral Susmension. Where the citizens of City face a severe and immediate threat to their health and safety, City may unilaterally suspend the effectiveness of the Agreement for a period not to exceed the time reasonably required for notice and a public hearing. 11.2 Chanae in State of Federal Law or Regulations. If any state or federal law or regulation enacted during the term of this Agreement or the action or inaction of any other affected governmental jurisdiction precludes compliance with one or more provisions of this Agreement, or requires changes in plans, maps or permits approved by City, the parties will act pursuant to Paragraphs 11.2.1 and 11.2.2. 11/30/89 20 11.2.1 Notice' Meeting. The party first becoming aware of such enactment or action or inaction will provide the other party with written notice of such state or federal law or regulation and provide a copy of such law or regulation and a statement regarding its conflict with the provisions of this Agreement. The parties will promptly meet and confer in a good- faith and reasonable attempt to modify or suspend this Agreement to comply with such federal or state law or regulation. A copy of any such notice which is sent to Developer shall also be sent to the holder of any institutional first trust deed encumbering the Project if such holder has made written request for notice and provided the City with the holder's address for notice purposes. 11.2.2 Hearinq on SuDersession of DeveloDment AGreement. Thereafter, regardless of whether the parties reach agreement on the effect of such federal or state law or regulation, the matter will be scheduled for hearing before the City Council no sooner than ten (10) days following written notice of such hearing to Developer. City Council, at such hearings, will determine the exact modification, suspension or termination which is required by the federal and state law or regulation, if any. Developer, at the hearing, will have the right to offer oral and written testimony regarding any proposed action by City. Any modifications, suspension or termination are subject to judicial review. 11.3 Modification by Mutual Consent. This Agreement may be modified from time to time, by the mutual consent of this parties only in the same manner as its adoption by an ordinance as set forth in California Government Code Sections 65867, 65867.5 and 65868, and Resolution 11933 of the City of Chula Vista. The term "this Agreement" as used in this Agreement will include any such modification properly approved and executed. 11.3.1 Minor Modifications. The parties to this Agreement contemplate the periodic review and minor modification of the SPA and provisions of the Financing Plan. Such mutually agreed-upon minor modifications by the parties hereto are anticipated and shall not constitute an amendment to this Agreement or a modification pursuant to this Section 11.3.1. 11.3.2 Notice of Termination. In the event that this Agreement is terminated pursuant to any of the methods authorized herein this Article 11, the City shall prepare and record a Notice of Termination, containing a reference to this Agreement and the effective date of any such termination in a form suitable for recordation with the County of San Diego. 12. General Provis%ons. 12.1 Enforce~. Failure to perform or a delay in performing the requirements of this Agreement by either party will not constitute a default for purposes of this Agreement where such 11/30/89 21 delay or failure to perform is directly caused by litigation by the City against Developer, or a City-imposed moratorium on residential development. 12.2 Notices. All notices required by or provided for under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid, return receipt required, to the principal offices of the City and Developer. Notice shall be effective on the date delivered in person or the date when the postal authorities indicate that the mailing was delivered to the address of the receiving party indicated below: Robert L. Santos Craig K. Beam President, Chief Operating Officer Luce, Forward, Hamilton EastLake Development Company & Scripps 900 Lane Avenue, Suite 100 110 West A Street, #1700 Chula Vista, CA 92013 San Diego, CA 92101 Notice to City: City Manager City Attorney The City of Chula Vista The City of Chula Vista 276 Fourth Avenue 276 Fourth Avenue Chula Vista, CA 92010 Chula Vista, CA 92010 Such written notices may be sent in the same manner to such other persons and addresses as either party may from time to time designate by mail. 12.3 Joint and Several Liability. If either party consists of more than one legal person, the obligations are joint and several. 12.4 Severabilit¥. If any material provision of this Agreement is held invalid, this Agreement will be automatically terminated unless within fifteen (15) days after such provision is held invalid the party holding rights under the invalidated provision affirms the balance of this Agreement in writing. This provision will not affect the right of the parties to modify or suspend this Agreement by mutual consent pursuant to Paragraph 11.3.1. 12.5 Recordation of Aareement; Amendments. All amendments hereto must be in writing signed by the appropriate agents of City and Developer, in a form suitable for recording in the Office of the Recorder, County of San Diego. Within ten (10) days of the date of this Agreement, a copy will be recorded in the Official Records of San Diego County, California. Upon Completion of performance of this Agreement or its earlier termination, a statement evidencing said completion or termination, signed by the appropriate agents or Developer and City will be recorded in the Official Records of San Diego County, California. 11/30/89 22 12.6 ~e Law. This Agreement will be construed and enforced in accordance with the laws of the State of California. 12.7 Assianment. Developer may transfer its rights and obligations under this Agreement if such transfer or assignment is made as part of a transfer, assignment, sale or lease of all or a portion of the Property and the City consents to said transfer. Said consent shall not be unreasonably withheld. 12.8 Term of Aqreement. This Agreement shall expire seven (7) years after the date it is entered into except that the term of this Agreement shall be extended by three (3) years upon any action by City which mandates any phase of development or partial development of EastLake Trails (as defined in the General Development Plan) as a condition precedent to the build-out of the Project. 12.9 Conflict. The provisions stated in this Agreement shall prevail, should there be any conflict between this Agreement and the Financing Plan. 12.10 Covenant of Good Faith and Fair Dealinq. Neither party shall do anything which shall have the effect of harming or injuring the right of the other party to receive the benefits of this Agreement; each party shall refrain from doing anything which would render its performance under this Agreement impossible; and each party shall do everything which this Agreement contemplates 11/30/89 23 that such party shall do in order to accomplish the objectives and purposes of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. "City" CITY OF CHULA VISTA, a municipal corporation By: Gregory Cox, Mayor EASTLAKE DEVELOPMENT COMPANY, a California general partnership comprised of corporations By: Daniel V, INC. a California corporation, General Partner Daniel D. Lane, President By: DAVID V, INC. a California corporation, General Partner By: David B. Kuhn, Jr., President 01/04/89 24 City Version (redlined) CllY OF CHULA VISI'A PLANNING DEPARTMENT October 18, 1989 Kent Aden Vice President Community Development EastLake Development Company 900 Lane Avenue, Suite 100 Chula Vista, CA 92013 SUBJECT: Density Transfer EastLake I SPA Dear Mr. Aden: Thank you for your letter of September 28, 1989 concerning the transfer within EastLake I SPA of 156 units from various parcels to the Village Center. Having reviewed the proposal, we are unable to concur in your assessment that the request is a minor one which should be handled administratively without additional environmental review. The redesignation of 7.5 acres of open space to residential and the resultant shift of 156 units into the Village Center is a major change requiring additional review in the form of a SPA Plan Amendment and submittal of a precise plan for the Village Center. According to the EastLake I conditions of approval, any proposed transfers should substantially improve the spatial or functional relationships of land uses. The appropriateness of this 156 unit transfer must be evaluated in the context of a precise plan looking at the design and planning criteria. This would also require some level of environmental review. Once you have prepared more specific development proposals, please contact Doug Reid to determine what environmental documentation would be most appropriate. We would be more than happy to continue working with you to accelerate the review process and action considerations. Our decision to consider this a major change is in no way a negative reflection on the proposal or the eventual outcome. Sincerely, George Krempl Planning Director GK:je 276 FOURTH AVENUE/CHULA VISTA. CALIFORNIA 92010/(619) 691-5101 September 28, 1989 Mr. George Krempl City of Chula Vista OCT 5 1989 276 Fourth Avenue Chula Vista, CA 92010 RE: Density Transfer EastLake I SPA Plan Dear George: As you know, one component of the "compromise plan" for the overall development of the EastLake Planned Community is the transfer of density approved but not achieved in EastLake Hills/Shores to the EastLake I Village Center. The purpose of this letter is to initiate the process to effect that ~ transfer. The approved/as-built statistics for the residential parcels within EastLake Hills and EastLake Shores are attached as Exhibit "A". The units approved at the SPA Plan level but not built ~ST~KE for various reasons total 156. Our proposal is to D~V~[O~EN! transfer these 156 units to the EastLake I Village CO~N¥ Center, increasing the residential component of that area from 405 dwelling units to 561 dwelling units. All units would fall into the RH General Plan category. The land use effect of this change will be the conversion of 7.5 acres within the EastLake Village Center from open space to residential use. Comparative land use statistics are attached in Exhibit "B". The approved EastLake I SPA Plan permits the transfer of density from one residential area to another (see #h, Conditions of Approval EastLake I SPA Plan). The provisions of the SPA Plan also allow for minor changes to be accomplished through an administrative procedure rather than a formal SPA Plan Amendment (see Section 1.10 EastLake I SPA Plan). Because of the small amount of land involved, the flexibility permitted by the SPA Plan, and the requirement that a Precise Plan be prepared for the EastLake I Village Center prior to development, we feel the required adjustments could be made as an administrative action without compromising the adopted SPA Plan or the City's ability to fully evaluate future development permitted by this density transfer. Ea~La~ Busine~ Center 900 ~ne Av~ue Sui~ 1OO Chula Vi~a, CA 92013 (619) 421-O127 FAX (619) 421-1830 Mr. George Krempl September 28, 1989 Page Two We also feel that given the nature of these changes, no additional environmental review is required for the transfer because no additional development intensity is involved. A listing of the individual text changes which would comprise the density transfer action is provided on Exhibit "C" attached. I would appreciate your prompt review of our request and notification as to any additional information, application, or fee deposit required to commence the process. We would like to complete the process as soon as possible in order to proceed with plans for the EastLake Village Center and other areas within our project. Should you have any questions or require additional information in this regard, please feel free to contact me at any time. Sincerely, ~AS~L~F~ DEVELOPMENT COMPANY Vice President, Community Development KA: bh EXHIBIT A DWELLING UNIT YIELD EASTLAKE HILLS/SHORES PARCEL ORIGINAL SPA ACTUAL BUILT VARIANCE R-1 73 73 --- R-2 31 31 --- R-3 57 57 --- R-4 130 130 --- R-5 78 80 2 R-6 85 85 --- R-7A 132 134 2 R-7B 104 93 11) R-SA 143 100 43) R-SB 54 54 R-9 114 112 (2) R-10 101 60 41) R-11 201 160 41) R-12 426 422 (4) R-13 250 232 (18) 1,979 1,823 156 EXHIBIT B EASTLAKE I VILLAGE CENTER STATISTICS Adopted Proposed Land Use AC DU AC DU Commercial 22.2 -- 22.2 -- Residential 18.0 405 25.5 561 Open Space 19.6 -- 12.1 -- TOTALS 59.8 405 59.8 561 Adopted Proposed Target Densities A__qC D__qU A__C D~U 20 du/ac 15.0 300 22.0 441 35 du/ac 3.0 105 3.5 120 TOTALS 18.0 405 25.5 561 EXHIBIT C DENSITY TRANSFER TEXT CHANGES EASTLAKE I SPA PLAN Page 1-10 Exhibit 4 - General Development Plan - modify statistics/land use designations to reflect as- built conditions. 1-11 Exhibit 5 - SPA Plan EastLake Hills and EastLake Shores - modify statistics to reflect as-built conditions. 1-12 Exhibit 6 - SPA Plan EastLake Village Center and EastLake Business Center - modify statistics to reflect transfer of density. II-3 Table 2 - modify table to reflect conversion of some open space area to residential uses within EastLake I Village Center. EASTLAKE I PC DISTRICT REGULATIONS Exhibit A Land Use Districts - modify to reflect official district changes which have occurred with map approvals for some parcels. Exhibit B General Development Plan - (see above) City Planning Commission Agenda Item for Meeting of January 17, 1990 Page 1 1. (B) PUBLIC HEARING: GPA 90-5 Consideration of a Development Agreement for EastLake III A. BACKGROUND On November 2, 1989, the Planning Commission recommended approval of the EastLake III General Development Plan {6-0, 1 abstention) subject to various conditions. The City Council approved the project on December 5, 1989. A Development Agreement Draft was not yet available at the time those hearings were conducted. B. RECOMMENDATION Accept the Development Agreement subject to the following conditions: 1. Delete Section 4.4.1, the exclusion on Low or Moderate Income Housing provisions. 2. Add a third provision to Section 4.9.1 which states that project timing and phasing is subject to the City's transportation phasing plan as finally adopted, in addition to the Threshold Standards and the Growth Management Plan. 3. Change Section 12.8, the term of the agreement, from 10 years to 7 years. C. DISCUSSION The EastLake III Agreement generally follows the same format as the EastLake Greens Agreement. It is, however, at a more general level of detail and entitlement. For example, those sections in the EastLake Greens Agreement relating to final maps and building permits have been deleted from the EastLake III agreement since EastLake III has not yet gone through a SPA Plan or Tentative Map process. Likewise, while the EastLake Greens Agreement addressed the rate of development, the EastLake III Agreement only addresses land use density and intensity. The benefits to the City in entering the agreement are as follows: 1. EastLake will remove all contingencies on the Olympic Training Center site including its obligation to donate the 154 acre site, provide $3 million in capital contributions and $8 million in infrastructure improvements to the San Diego National Sports Foundation or the USOC (see Section 7, p. 12). 2. EastLake will advance $3,657,000 in PAD fees or provide park improvements of equivalent value (see Section 6.1.1 Parks on pages 9 and lO). City Planning Commission Agenda Items for Meeting of January 17, 1990 Page 2 These monies will allow EastLake or the City to construct needed improvements such as a gymnasium and other community serving public park facilities early in the development process. What EastLake is trying to achieve with the agreement includes the following assurances: 1. A vested right to proceed with the development of the property to the land use densities and intensities as approved by the General Development Plan; and 2. A right to have future discretionary reviews and approvals of the property to become for purposes of the agreement, existing project approvals. As with EastLake Greens, EastLake III shall be subject to all environmental requirements and mitigation of the General Development Plan approval. EastLake III, as conditioned, will be is subject to the City's Thresholds Standards ordinance, East Chula Vista Transportation Phasing Plan, General Plan and pending Growth Management Element and Program. Future SPA and Tentative Map consideration will stipulate that the City has the right to stop issuing building permits if cumulative dwelling unit totals and traffic threshold provisions are exceeded at any particular phase. The provision of Low and Moderate Income Housing will be dealt with in the context of the overall EastLake Planned Community and should not be excluded from consideration of EastLake III which is a part of the overall community. Possible amendment requests on EastLake Greens as well as SPA Plan and Tentative Map Applications for EastLake III and eventually EastLake IV will supplement the requirements made in EastLake I to provide a complete package addressing the City's housing needs. The term of the agreement should remain at 7 years limiting the amount of time the City is committed and similar to the term of other development agreements. In summary, EastLake III will fully comply with the City's Growth Management Program and the items enumerated above. We believe the benefits to the City are significant and warrant entering into the agreement. WPC 7103P DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND EASTLAKE DEVELOPMENT COMPANY FOR EASTLAKE III TABLE OF CONTENTS Page 1. Recitals .................................................... 1 1.1 City's Authority to Enter into Development Agreement ................................ 1 1.2 The Property; Developer's Interest ................... 1 1.3 Benefits to City ..................................... 1 1.4 Intentions of Parties in Entering into This Agreement ....................................... 2 1.5 Adoption of Ordinance Approving Agreement ............ 3 1.6 Findings of City Council ............................. 3 2. Definitions ................................................. 3 2.1 "Builder" or "Merchant Builder" ...................... 3 2.2 "City Council" ....................................... 3 2.3 "Developer" .......................................... 3 2.4 "Developers Donations to the Olympic Training Center" or "Developer's Donations" .............................. 4 2.5 "Effective Date" ..................................... 4 2.6 "Existing Approvals" or "Existing Project Approval" 2.6.1 The "General Development Plans and Text" ..... 4 2.6.2 The "Municipal Code" ......................... 4 2.6.3 The "Municipal General Plan" or the "General Plan" ............................... 4 2.7 "Financing Plan(s)" or "PFFP" ........................ 5 2.8 "Future Discretionary Reviews and Approvals" ......... 5 2.9 "General Development Plans and Text" ................. 5 2.10 "General Plan Growth Management Element" or "Growth Management Element" .......................... 5 2.11 "Municipal Code" ..................................... 5 (i) 2.12 "Municipal General Plan" or "General Plan" ........... 5 2.13 "Olympic Training Center', ............................ 5 2.14 "PAD Fees" ........................................... 6 2.15 "Planned Community Dist. Regulations" ................ 6 2.16 "Planning Commission" ................................ 6 2.17 "Project" ............................................ 6 2.18 "Property" ........................................... 6 2.19 "Public Improvements" ................................ 6 2.20 "Resolution No. 13346 Quality of Life Thresholds" or "Quality of Life Thresholds" ...................... 6 2.21 "SPAs" ............................................... 6 2.22 "Substantial Compliance" ............................. 6 2.23 "Tentative Map(s)" or "Tentative Subdivision Map(s)" ...................... 7 3. Description of Property .................................. 7 4. Vested Right ............................................ 7 4.1 Right to Develop ................................. 7 4.2 Maximum Height and Size of Structures ............ 7 4.3 Permitted Uses ................................... 7 4.4 Permitted Density and Intensity of Development .... 8 4.4.1 Low or Moderate Income Housing ............ 8 4.5 Application of New Rules, Regulations and Policies ......................................... 8 4.6 Modification of Approvals, Standards ~?~ Obligations ....................................... 9 4.7 Benefit of Earlier Vesting ........................... 9 (ii) 4.8 Application of a Pending General Plan Growth Management Element ................................... 9 4.8.1 Project Timing and Phasing Requirements ..... 10 5. Development Program and Processing ......................... 10 5.1 Processing of Applications and Permits .............. 10 5.1.1 Early Development of EastLake Trails ...................................... 10 5.2 Length of Validity of Tentative Subdivision Map(s) .................................. 11 5.3 Vesting Tentative Map ............................... 12 5.4 Parcel Map .......................................... 13 6. Urban Infrastructure ....................................... 13 6.1 Dedications and Reservations of Land for Public Purposes ..................................... 13 6.1.1 Parks ....................................... 14 6.2 Public Facilities; Financing Plan, Requirements ........................................ 13 6.3 Assessment Districts or Public Financing Mechanisms .......................................... 16 6.4 Schools ............................................. 16 (iii) 6.5 Water ............................................... 16 6.6 Hold Harmless ....................................... 16 6.6.1 Indemnification ............................. 17 6.7 Insurance ........................................... 17 7. EastLake San Diego National Sports Training Foundation/United States Olympic Committee Commitments ................................................ 17 8. Binding Effect; Encumbrance of Property; Releases .......... 18 8.1 Binding Effect ...................................... 18 8.2 Lender Notification ................................. 18 8.3 Discretion to Encumber .............................. 18 8.4 Status 14 8.5 Releases ............................................ 18 9. Annual Review; Notice ...................................... 18 9.1 Information to be Provided Developer ................ 19 9.1.1 Substantial Compliance ...................... 19 9.2 Finding by City During Annual Review Period that Developer is in Default ........................ 19 9.3 Delay in Annual Review .............................. 19 10. Default .................................................... 20 10.1 Option to Set Matter for Hearing or Institute Legal Proceedings ...................... 20 10.2 Waiver ......................................... 20 10.3 Remedies Upon Default .......................... 20 11. Modification; Suspension; Termination ................. 20 11.1 Modification by Mutual Consent ................. 20 11.1.1 Minor Modifications .................... 21 11.2 Emergency Circumstances .......................... 21 11.2.1 Notification of Unforeseen Circumstances ............................... 21 11.2.2 Notice of Hearing ........................... 21 11.2.3 Hearing ..................................... 21 11.2.4 Unilateral Suspension ....................... 21 (iv) 11.2.5 Notice; Meeting ............................. 22 11.2.6 Hearing on Supersession of Development Agreement ....................... 22 11.3 Notice of Termination ............................... 22 12. General Provisions ......................................... 22 12.1 Enforced Delay ...................................... 22 12.2 Notices ............................................. 23 12.3 Joint and Several Liability ......................... 23 12.4 Severability ........................................ 23 12.5 Recordation of Agreement; Amendments ................ 23 12.6 Applicable Law ...................................... 24 12.7 Assignment .......................................... 24 12.8 Term of Agreement ................................... 24 12.9 Conflict ............................................ 24 12.10 Covenant of Good Faith and Fair Dealing ............. 24 (v) DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND EastLake DEVELOPMENT COMPANY FOR EastLake III This Development Agreement ("this Agreement") is entered into on , 19 , between EastLake DEVELOPMENT COMPANY, a California general partnership compromised of corporations ("Developer"), and the CITY OF CHULA VISTA, a municipal corporation having charter powers ("City"), with reference to the recitals set forth herein below which are incorporated herein by reference as if set forth fully. 1. Recitals. 1.1 City's Authority to Enter into DeveloDment Aqreement. City, as a charter city, is authorized under Resolution No. 11933, its Charter, and its self-rule powers to enter into binding development agreements with persons having legal or equitable interests in real property for the purposes of assuring, among other things, (i) certainty as to permitted land uses in the development of such property, (ii) the construction of adequate public facilities to service such property, and (iii) the provision of equitable reimbursement for the construction of public facilities of excessive size or capacity. 1.2 The Property; Developer's Interest. Developer holds an enforceable right to acquire the Property known as EastLake III described in Exhibit "A" attached hereto and incorporated herein (the "Property"). The development of the Property, which consists of Projects commonly known as the EastLake Trails, EastLake Woods, EastLake Vistas, an expansion of the EastLake Business Center, and the Olympic Training Center, is the subject of this Agreement. Developer is master-planning the Property as the third phase of the EastLake Planned Community. Developer represents that it has a legal interest in the Property and that all other persons holding any legal or equitable interest in the Property will be bound by this Agreement. 1.3 Benefits to City. As facilitated by this Agreement, the construction of the EastLake III General Development Plans Area pursuant to the General Development Plans and Municipal General Plan of the City, as well as the anticipated public facilities required by the Public Facility Financing Plan, will result in the design, financing and construction of millions of dollars of public facilities and amenities in conjunction with the development of residential, commercial, recreational and open space uses. Specifically, by virtue of the development of EastLake III, City will derive the following benefits: (i) The funding or construction of park facilities meeting the City's current requirements;(ii)The funding or construction of streets designed to provide adequate and safe (Draft Date: 01/08/90) 1 [Released prior to review by client] transportation to its residents; (iii) EastLake Development Company's removal of contingencies to its obligation to donate approximately One Hundred Fifty (150) acres with a market value in excess of Thirteen Million Dollars ($13,000,000.00) as a site for the Olympic Training Center; (iv) Three Million Dollars ($3,000,000.00) in capital contributions and Eight Million Dollars ($8,000,000.00) in public infrastructure to the San Diego National Sports Foundation or the U.S. Olympic Committee towards the provision of the Olympic Training Center , and the extension of municipal services necessary for the site's operation; (v) Advance funding of a total of Three Million Six Hundred Fifty Seven Thousand Dollars ($3,657,000.00) in PAD Fees or, as more fully provided in Section 6.1.1, park improvements of equivalent value; (vi) Sewer, water, sales tax and property tax revenues; and (vii) Developer's ontribution towards the provision of facilities of regional significance both within and outside the boundaries of the Property. 1.4 Intentions of Parties in Enterinq into This Aqreement. Developer and City intend to enter into this Agreement for the following purposes: (i) To assure Developer's participation in the construction and financing of public facilities pursuant to one or more Financing Plans which shall be formulated prior to the commencement of any private or public construction activities on the Property; (ii) To provide Developer with certainty that the land use regulations and policies applicble to the development of the Property; (iii) To assure Developer or its vested right to proceed with the development of the Property to the land uses, densities and intensity of uses as provided below; and (iv) To assure Developer that Future Discretionary Reviews and Approvals, when granted by the City, shall become, for purposes of this Agreement, Existing Project Approvals; and (vi) To provide assurances to the City that Developer will remove or be deemed to have approved or waived all of its conditions precedent to the donation of One Hundred Fifty (150) acres of land, Three Million Dollars ($3,000,000.00) in capital and Eight Million Dollars ($8,000,000.00) in public infrastructure to (Draft Date: 01/08/90) 2 [Released prior to review by client] the benefit of the San Diego National Sports Foundation and/or the U.S. Olympic Committee, in return for the City's acceptance of the commitment to such donation and the other covenants contained herein as the total consideration for the vesting of Developer's rights herein including the vesting of Existing Project Approvals or future discretionary project approvals upon their granting by the City, without the need for further consideration or compensation to the City in return for such vesting. 1.5 Adoption of Ordinance ADDrovina Aqreement. On 19__, City Council adopted Ordinance No. approving this Agreement: the Ordinance took effect on , 19__. This Agreement is first introduced on , 1989. 1.6 Findinqs of City Council. City Council has found that this Agreement is consistent with City's General Plan and all applicable mandatory and optional elements thereof, the General Development Plans and Text for the Property, as well as all other applicable policies and regulations of City. 2. Definitions. In this Agreement, unless the context otherwise requires: 2.1 "Builder" or "Merchant Builder" means a developer to whom Developer has sold, leased or conveyed property within the Property for the purpose of its improvement for residential, commercial or industrial use. 2.2 "City Council" means the City Council of the City of Chula Vista. 2.3 "Developer" means EastLake Development Company and the legal persons to which or whom it may assign all or any portion of its rights under this Agreement. 2.4 "Developer's Donations to the Olympic Traininq Center" or "Developer's Donations" shall mean the donation of (i) 150 acres of property, (ii) Three Million Dollars ($3,000,000.00) in working capital, and (iii) Eight Million Dollars ($8,000,000.00) worth of infrastructure improvements, or other such donations of land, working capital and public infrastructure for the provision of the Olympic Training Center, as EastLake and the U.S. Olympic Committee and/or the San Diego National Sports Foundation may agree to from time-to-time in their sole discretion. 2.5 "Effective Date" shall be the date upon which the Ordinance approving this Agreement will first take effect pursuant to the laws of the State of California, as described in Section 1.5 hereinabove. 2.6 "Existina ADDrovals" or "Existinq Project Approvals" shall mean all discretionary approvals and/or standards which have (Draft Date: 01/08/90) 3 [Released prior to review by client] been approved in conjunction with or preceding the approval of this Agreement, as they relate to both the Project and the public improvements, consisting of, but not limited to: 2.6.1 The "General Development Plans and Text", consisting of two General Development Plans and Text adopted for the Property; 2.6.2 The "Municipal Code"; and 2.6.3 The "Municipal General Plan" or the "General Plan", including the EastLake III General Plan Amendment. In addition, the Existing Project Approvals shall include, as though they were in existence at the time of approval of this Agreement, (i) upon the adoption thereof by the City as more fully provided in Section 4.9, the "General Plan Growth Manaqement Element" and (ii) upon their approval by the City and their written acceptance by Developer, all "Future Discretionary Reviews and Approvals." A list of the currently Existing Approvals, with the date or other description of the operative versions of such Existing Approvals and conditions thereto which apply to this Agreement are identified, and attached hereto as Exhibit "B", and incorporated herein by this reference. The parties agree to update the list set forth in that Exhibit to reflect the granting of any Future Discretionary Reviews and Approvals. 2.7 "Financinq Plans" or "PFFP" mean one or more Public Facility Financing Plans, to be adopted by the City of Chula Vista, which (i) set forth a list of various public facilities which Developer must build or fund in part and the phases, time frame or cumulative levels of project development at which specified public facilities must be assured prior to the construction of the next phase of the Project, and (ii) provide for the attainment of the Quality of Life Thresholds. 2.8 "Future Discretionary Reviews and Approvals" means the approval by the City of all future discretionary permits and entitlements (excluding then Existing Approvals), including but not limited to (i) SPA Plan, (ii) master tentative subdivision map (iii) grading permit(s), (iv) site plan review, (v) design guidelines and review, (vi) precise plan review, (vii) resubdivision of areas previously subdivided pursuant to the Master Tentative Map, (viii) the planned community district regulations, and (ix) the issuance of conditional use permits, variances, and encroachment permits, all other permits, and approvals of any type which may be required from time to time to authorize the construction of on- or off-site facilities required to construct the Public Improvements and/or the Project. 2.9 "General Development Plans and Text" means the General Development Plans and Text adopted by the City of Chula Vista pursuant to Resolution No. dated and (Draft Date: 01/08/90) 4 [Released prior to review by client] Resolution No. dated , 1989, regulating the development of the Property and authorizing various land uses. 2.10 "General Plan Growth Manaqement Element" or "Growth ManaGement Element" mean an ordinance, policy or program, as initially adopted by the C~ty. Council subsequent to the execution of this Agreement and consisting of Part I text and Part II Plan/Program, which is intended to regulate the timing and phasing or rate of growth within the City. 2.11 "MuniciDal Code" means the provisions of the Chula Vista Municipal Code in existence and in effect on the date of the first reading of this Agreement as an Ordinance by the City. 2.12 "Municipal General Plan" or "General Plan" mean all mandatory and optional General Plan elements pursuant to Government Code Section 65302, et seq., in existence on the date of the first reading of this Agreement as an Ordinance by the City (subject to the provisions of Sections 2.6 and 4.9), including, without limitation, the EastLake III General Plan Amendment. 2.13 "OlYmPic Training Center" means the U.S. Olympic Training Facility Center which is to be constructed on property donated by Developer located adjacent to the west of lower Otay Lakes. 2.14 "PAD Fees" mean any Parkland Acquisition and Development Fees which apply to the Project or which would apply to the Project absent the provisions of this Agreement. 2.15 "Planned Community District Requlations" means the regulations adopted to implement any SPA pursuant to Chapter __ Sections __ of the Chula Vista Municipal Code. 2.16 "Plannina Commission" means the Planning Commission of the City of Chula Vista. 2.17 "Pro~ect" means the physical development of the Property as set forth in the General Development Plans and Text and the General Plan for the area. 2.18 "Property" means the real property lying within the EastLake II and EastLake III developments which includes the neighborhoods and projects commonly known as EastLake Trails, EastLake Woods, EastLake Vistas, the EastLake Business Center Expansion and the Olympic Training Center. Such real property is more specifically depicted in Exhibit "A-i" and described in Exhibit "A-2", both of which are attached hereto and incorporated herein by this reference. 2.19 "Public Improvements" means those public facilities or improvements required by City to be completed or funded by Developer pursuant to the Municipal General Plan, the General (Draft Date: 01/08/90) 5 [Released prior to review by client] Development Plans and Text, any Financing Plan, Tentative Map or other applicable approval, permit, plan, ordinance or regulation. 2.20 "Resolution No. 13346 Oualit¥ of Life Thresholds" or "Quality of Life Thresholds,, means those certain "Quality of Life" thresholds and/or standards requiring the construction or development of certain facilities to provide desired levels of service to the public, as adopted by Resolution No. 13346, as they may be amended upon the agreement of Developer thereto. 2.21 "SPAs" means the Sectional Planning Area Plan or Plans to be prepared and approved by the City for the purpose of implementing the General Development Plans and Text for the Property in accordance with Chapter Sections of the Chula Vista Municipal Code. 2.22 "Substantial Compliance", for the purposes of this Agreement and periodic review hereunder, shall mean that the party of whom some particular performance is required has sufficiently followed the terms of this Agreement so as to carry out the intent of the parties in entering into this Agreement. 2.23 "Tentative Map(s)" or "Tentative Subdivision Map(s)" shall refer to any Tentative Subdivision Map(s) for the Property. The term "Final Subdivision Map(s)" shall refer to any Final Map(s) approved pursuant to such Tentative Subdivision Map(s). 3. Description of Property. The Property consists of approximately (__) acres in area and is located approximately 7.5 miles east of downtown Chula Vista and 7 miles north of the United States/Mexican border. 4. Vested Riaht. In consideration of both (i) Developer's pledge to participate in the construction and financing of public facilities in accordance with the Financing Plan(s) to be developed jointly by City and Developer, all as more particularly described in Paragraph 6, and (ii) Developer's commitment to the removal of the conditions precedent to Developer's Donation to the Olympic Training Center, Developer, by this Agreement, is vested with the right to develop and maintain the Property pursuant to the provisions set forth in this Paragraph 4. Such right to develop, use and maintain the Property shall not be abridged or modified during the term of this Agreement except as specifically provided for herein. 4.1 Right to Deve%op. Developer and Merchant Builders shall have the right to develop the Project for the uses and to the densities and intensities of use set forth in the then Existing Project Approvals. 4.2 Maximum Height and Size of Structures. The maximum (Draft Date: 01/08/90) 6 [Released prior to review by client] height and size of structures to be constructed within the Project will be governed by any adopted SPA for the area in question. 4.3 Permitted Uses. The Property will be developed as a part of a planned community consisting of residential neighborhoods, commercial development, industrial/business park(s), recreational facilities, school sites, park sites and open space uses, as are more particularly described and authorized by the General Development Plans and Text and the existing Municipal General Plan for the Property and other Existing Approvals, as they may from time to time be expanded by City; as well as such other existing land uses as may be mutually agreed upon by the parties. 4.4 Permitted Density and Intensity of Development. The City hereby authorizes the Property to be developed to the maximum density or intensity of development specified in the General Development Plans and Text, Municipal General Plan and the Existing Approvals as they may, from time to time, be expanded, during the term of the Agreement, subject to any limitations contained therein; provided, however, that the Project shall be authorized to the development of no less than Three Thousand Twenty-Seven (3,027) dwelling units throughout the Property. 4.4.1 Low or Moderate Income Housing. Developer shall not be required to provide housing units for individuals or families of low or moderate income, regardless of whether such income level is defined by City ordinance or policy, or state or federal law, including without limitation the provisions of California Health and Safety Code Section 50093 et seq., as it may be amended. 4.5 Application of New Rules. Reaulations and Policies. The City may, during the term of this Agreement, apply to the Project, Public Improvements and/or Property only such new development fees, rules, regulations and policies, ordinances or standards which are generally applicable to all private projects east of 1-805. It is the intent of the parties that the application of said rules, regulations and policies, ordinances or standards will not prevent the development of the Property to the uses, densities or intensities of development specified herein, or as authorized by the Existing Approvals. 4.6 Modifications of APProvals. Standards and Obliqations. It is contemplated by the parties that City and Developer may mutually agree to modifications to the Existing Project Approvals, public infrastructure requirements, or other modifications to the Project. Upon approval by City and written acceptance by Developer following City's approval, such modification(s) shall supersede any inconsistent Existing Project Approval(s). 4.7 Benefit of Earlier Vestinq. Nothing in this Agreement will be construed as adversely affecting Developer's obtaining a vested right to continue development and/or use of the (Draft Date: 01/08/90) 7 [Released prior to review by client] Property, if any, in the manner specified in this Paragraph 4, pursuant to the provisions of California's Constitutional, statutory, and/or decisional law. 4.8 ADDlication of a Pendin~ General Plan Growth Manaqement Element. The parties recognize that the City is currently studying the feasibility and need for a General Plan Growth Management Element text and plan/program in the Eastern Territories of the City. During the term of this Agreement, the City Council may, by its own motion, adopt such a General Plan Growth Management Element text and plan/program which shall be incorporated into this Agreement, upon adoption and without further action by the parties, as though it were an Existing Approval. If necessary, City and Developer shall solemnify the incorporation of such a General Plan Growth Management Element text and plan/program by executing an amendment to this Agreement. 4.8.1 Pro~ect Timin~ and Phasinq Requirements. It is the intent of the parties to this Agreement that Developer's right to proceed with each Development Increment shall only be conditioned upon the phased provision of on and off-site Public Improvements designed to (i) serve the needs of such Development Increments, or mitigate their impacts, and (ii) meet the Quality of Life Thresholds. The phasing, timing or rate of Project build-out shall also be subject to a Growth Management Element, as provided in Section 4.9. 5. Development Pro~ram and Processing. 5.1 Processin~ of Applications and Permit~. The City agrees to accept for processing, consideration and approval, denial or conditional approval all Developer's applications for Future Discretionary Reviews and approvals for the Property. 5.1.1 Early Develomment of EastLake Trails. If the City requires the development of the EastLake Trails Area, prior to the buildout of the EastLake Greens area it shall: (i) accept for processing and consideration, approval, denial or conditional approval, review all development applications and permits or other entitlements with respect to the use and development of the Trails area, in accordance with the attached ExhiBit "C", which sets forth timeframes for the consideration and City action upon the SPA(s), Tentative Map(s), Planned Community Zoning Regulations and related applications, entitlements, plans and all other permits necessary to build residences, and (ii) Provide Developer with assurances of a minimum annual rate of residential development, in a form and assuming an annual number of residential dwelling units as the parties shall agree. 5.2 Length of Validity of Tentative Subdivision MaD(s). It is understood by the parties to this Agreement that (Draft Date: 01/08/90) 8 [Released prior to review by client] pursuant to existing law, a tentative subdivision map may remain valid for the length of term of this Agreement, all as provided in Government Code Section 66452.6(a). The City therefore, in accordance with the provisions of this Agreement, agrees that the Master Tentative Map shall remain valid for a term equal to the longer of the term of the Master Tentative Map as it is determined and may be extended by the provisins of Government Code Section 66452.6 or the length of this Agreement; provided, however, that the term of the Master Tentative Map shall not exceed the maximum allowed by law. No new condition shall be added to any map as a condition of its extension. 5.3 Vestinq Tentative Map. Developer may, at its option, process with City a vesting tentative map covering the Property which shall, upon approval, confer upon Developer a vested right to proceed with development of the Property in substantial compliance with the ordinances, policies, and standards described in California Government Code Section 66747.2. City will accept the processing and review of such a vesting tentative map covering the Property submitted by Developer to City. 5.4 Parcel MaD. The City shall accept for processing, and take action upon, a parcel map for the Property, within the timeframes set forth in the state Subdivision Map Act, in order to assist Developer's acquisition of the Property. Developer acknowledges that approval of such map shall not limit City's right in the future, upon the Property's resubdivision, from imposing conditions to its further subdivision. 6. Urban Infrastructure. 6.1 Dedications and Reservations of Land for Public Purposes. The portions of the Property to be reserved or dedicated for public purposes shall be: (i) those portions which are required to be dedicated pursuant to any Tentative Subdivision Map and (ii) those portions which are required for the construction of all major road, sewer, drainage or other public rights of way in accordance with the standards in existence for subdivisions adopted by the City of Chula Vista at the time of the approval of any Tentative Subdivision Map(s) for the Property and such further and additional areas of public reservation or dedication which may be required for the construction of public facilities to mitigate the impacts of the development of the Property pursuant to any Financing Plan adopted in conjunction with any SPA and/or Tentative Map for the Property. 6.1.1 Parks. In consideration for the vesting of the Existing Project Approvals or the Future Project Approvals upon their granting by the City, Developer agrees to dedicate lands, pay PAD Fees and/or construct park facilities as follows: (i) Developer shall dedicate seventeen (17) usable acres within Property for use as a community park; (Draft Date: 01/08/90) 9 [Released prior to review by client] (ii) Developer shall construct one or more private parks within the Property, with unfenced play areas totalling at least two and one-half (2.5) acres; and (iii) Pursuant to the terms and conditions of a separate agreement between Developer and City, the "EastLake Parks Agreement" which was adopted by the City Council on pursuant to its Resolution No. , Developer shall dedicate an additional five (5) acres of improved park area which may be either, at City's election, a separate neighborhood park or an extension of the community park referenced in Subparagraph (i) above. In either case, the improved park area will be limited to open play fields. (iv) Within sixty (60) days following City's written request therefor, which request may be made upon City's initial approval of the first Tentative Map within the EastLake Trails neighborhood, Developer shall provide, in advance of the time that such fees would normally be payable, PAD Fees in the sum of One Million Five Hundred Twenty-Two Thousand Dollars ($1,522,000.00); (v) Within sixty (60) days following City's written request therefor, which request may be made upon City's initial approval of the first Tentative Map within the EastLake III development, except for the Olympic Training Center, Developer shall provide, in advance of the time that such fees would normally be payable, PAD Fees in the sum of Two Million One Hundred Thirty- Five Thousand Dollars ($2,135,000.00) or, at City's election, shall construct park facilities of equivalent value. The obligations in this Section 6.13 and Section 1.3, together with the obligations contained within the EastLake Greens Development Agreement, shall constitute EastLake Development Company's and the EastLake Planned Community's total park obligations for the areas encompassed within this Agreement, notwithstanding any future modifications to the requirements or standards of the City with respect to parkland dedications or the payment of in lieu fees. In consideration of the covenants herein, the City agrees to waive any and all further PAD Fees otherwise applicable to the Project. The funds advanced pursuant to this Section shall be used by the City solely for Park land acquisition and development purposes to mitigate Project impacts and the Park needs of Project residents. 6.2 P~blic Facilities; Financina Plan. Requirements. City and Developer shall prepare one or more Financing Plan(s) to be adopted in accordance with the schedule referenced in Section 5.1 herein. Said Financing Plan(s) shall set forth (i) a description of public facilities and improvement projects needed to serve Property, including facilities necessary to serve the Project and neighboring developments, (ii) the sequence and staging for build out of the Property and other development projects which impact on standards for the development of the various public facilities and improvement projects, and (iii) the authorized (Draft Date: 01/08/90) 10 [Released prior to review by client] methods of financing and the allocation of financial responsibility for the construction of the needed public facilities and improvement projects. Said Financing Plan(s) shall employ the Quality of Life Thresholds as the standard for determining the dimensions and timing of the development of public facilities and improvement projects necessary to serve the Property, including facilities necessary to mitigate the incremental impacts of the Project and neighboring development projects. 6.3 Assessment Districts or Public Financing Mechanisms. This Agreement and any Financing Plan(s) recognize that assessment districts, Mello Roos Community Facility Districts, or other public financing mechanisms may be necessary to finance the costs of Public Improvements borne by the Project. If Developer, pursuant to any Financing Plan, is required to install Public Improvements where such Financing Plan authorizes the use of assessment districts, Mello Roos Districts, or other public financing mechanism, City may select the acceptable method of public financing, initiate and conclude appropriate proceedings for the formation of such financing district or funding mechanism, under the applicable laws or ordinances. Developer shall also have the right to request that City utilize, and City shall conduct (but shall not be required to approve) appropriate proceedings for any other financing methods which may become available under City or state laws or ordinances. All costs associated with the consideration and formation of such financing districts or funding mechanisms shall be advanced by Developer, subject to reimbursement as may be legally authorized out of the proceeds of any financing district or funding mechanism. 6.4 Schools. Developer has satisfied all of the City's requirements with respect to the provision of school facilities pursuant to an agreement entered into between Developer and the Sweetwater Union High School District dated and an agreement entered into between Developer and the Chula Vista City School District dated (collectively, the "School Agreements"). The City shall not further condition the development of the Property through the imposition of any further school fees or exactions of any nature whatsoever, and the School Agreements shall be conclusively deemed to mitigate any and all impact upon school facilities from development of the Project and/or the Property. 6.5 Water. Water to the Property shall be provided by the Otay Water District. Developer and City acknowledge and agree to consider the construction of a water reclamation project on the Property. This Agreement will not preclude City ownership and operation of such a facility. 6.6 Hold Harmless. It is understood and agreed that City, as indemnitee, or any officer or employee thereof, shall not be liable for any injury to person(s) or property occasioned by reason of the acts or omissions of Developer (including any assignee of Developer, but only to the extent of specific (Draft Date: 01/08/90) 11 [Released prior to review by client] improvements, acts or omissions of said assignee), its agents or employees, related to this Agreement. Developer further agrees to protect and hold harmless City, its officers and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of or arising out of acts or omissions of Developer, (including any assignee of Developer, but only to the extent of specific improvements, acts or omissions of said assignee), its agents or employees, related to this Agreement. Said indemnification and agreement to hold harmless shall extend to damages or taking of property resulting from the construction of the Project and the public improvements as provided herein, to adjacent property owners as a consequence of the diversion of waters in the construction and maintenance of drainage systems, and shall not constitute the assumption by City of any responsibility for such damages or taking, nor shall City by its approval of construction plans for the Project or the public improvements as provided herein, be an insurer or surety for the construction of the Project pursuant to said approved plans. The provisions of this Section shall become effective upon the execution of this Agreement and shall remain in full force and effect for three years following the acceptance by City of each public improvement installed by Developer; such acceptance by City shall not be unreasonably withheld. This Section is not intended, nor shall it be construed, to require Developer or City to indemnify or hold the other harmless from their own negligent acts or omissions. 6.6.1 Indemnification. Developer shall indemnify and defend City in any lawsuit or claim which challenges City's approval of the Project, City's approval of this Agreement or the participation by City in this Agreement. 6.7 Insurance. Developer shall name City as an additional insured for all insurance policies obtained by Developer for the Project pertaining to Developer's activities and operation on the Project. 7. EastLake San DieGo National Sports TraSninq Foundation/ United States Olympic Committee Commitments. Developer, as consideration for City's commitment to the land uses and intensities of development for the Property specified in Article 4 (hereinafter "City's Commitment"), shall (i) convey, or cause to be conveyed, a 150 acre site located generally in the southern portion of Otay Lakes to the San Diego National Sports Foundation or the United States Olympic Committee, at no cost to either party, and (ii) contribute or cause to be contributed Three Million Dollars ($3,000,000.00) in working capital and Eight Million Dollars ($8,000,000.00) in infrastructure improvements to the San Diego National Sports Training Foundation or the United States Olympic Committee (collectively, items (i) and (ii) are hereinafter referred to as "Developer's Donations"). Developer shall execute agreements effecting Developer's Donations and such agreements shall be deposited into an escrow account which shall release such agreements upon the expiration of the thirty (30) day notice period following the second reading of this Agreement as an Ordinance. (Draft Date: 01/08/90) 12 [Released prior to review by client] Developer's Donations are hereby declared to constitute sufficient consideration for City's Commitment and no further consideration from Developer shall be required for Developer to obtain the land uses and intensities of development for the Property specified in Article 4, whether through this Agreement, amendments to this Agreement, or agreements separate from this Agreement. 8. Binding Effect; Encumbrance of Property; Release~. 8.1 ~fect. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties' successors-in-interest. 8.2 Lender Notification. Any lender will receive written notification from City of any default by Developer under this Agreement which is not cured within thirty (30) days if such lender requests such notification from City in writing; provided, however, that failure of City to provide such notification shall not limit City's rights under this Agreement. 8.3 Discretion to Encumber. Nothing in this Agreement will prevent or limit Developer, in any manner, at Developer's sole discretion, from encumbering all or any portion of the Property or any improvements thereon by any deed of trust or other security device. 8.4 Status. Each party will, upon fifteen (15) days prior written request, give written notice to the other party stating whether the party giving the notice knows of any breach of this Agreement and setting forth the notifying party's current understanding of the status of the parties' performance under this Agreement. A copy of any such notice which is sent to Developer shall also be sent to the holder of any institutional first trust deed encumbering the Project if such holder has made written request for notice and provided City with the holder's address for notice purposes. 8.5 Releases. Once the required Public Improvements are installed City may release portion(s) of the Property from this Agreement. All areas of the Property designated for residential custom home lot construction shall be released from this Agreement by the City upon the request of any individual purchaser without any further consideration. 9. Annual Review; Notice. City will, once every twelve (12) months during the term of this Agreement, pursuant to California Government Code Section 65865.1, undertake a periodic review of the parties' compliance with the terms of this Agreement pursuant to the procedures set forth below. Developer shall present information with respect to Developer's good-faith compliance with Section 9.1. In addition to the information provided by Developer in accord with Section 9.1, City may request that Developer address (Draft Date: 01/08/90) 13 [Released prior to review by client] additional issues with respect to Developer's good-faith compliance with the terms of this Agreement. City shall deliver no less than thirty (30) days' written notice to Developer prior to any hearing of any requirement City desires to be addressed, together with any applicable staff reports, in a manner sufficient for Developer to respond. Either party may address any requirement of this Agreement during the review period. If, at any time of review, any issue not previously identified in writing pursuant to this Paragraph 9 is required to be addressed by City, at the request of either party, the review may be continued to afford sufficient time for analysis and preparation. Such review by City may be conducted by the City Manager. 9.1 Information to be Provided Developer. Pursuant to Government Code Section 65865.1, Developer shall have the duty to demonstrate its good-faith compliance with the terms of this Agreement at each periodic review. Developer's duty to demonstrate may be satisfied (except for additional issues raised by City pursuant to Section 9) by the presentation to the City of: (i) a written report identifying Developer's performance or the reasons for its nonperformance or excused performance of the requirements of this Agreement, or (ii) oral or written evidence submitted at the time of review. 9.1.1 Substantial Compliance. The parties recognize that this Agreement and the documents incorporated herein could be deemed to contain thousands of requirements (i.e., construction standards, landscaping standards, et al.), and that evidence of each and every requirement would be a wasteful exercise of the parties' resources. Accordingly, Developer shall be deemed to have satisfied its duty of demonstration when it presents evidence of its good faith and substantial compliance with any issues requested to be addressed by City in accordance with Article 9; substantial compliance with the major provisions of the Financing Plan(s) and SPAs, and strict compliance with the restrictions on the uses, number, type, lots and sizes of structures completed, and any required reservations and dedications to City. Generalized evidence or statements shall be accepted in the absence of any evidence that such evidence or statements are untrue. 9.2 Findina by City Durina Annual Review Period that Developer is in Default. If, during any annual review period, City, on the basis of substantial evidence, finds Developer has not, in good faith, complied with this Agreement, it will give Developer thirty (30) days' notice of default pursuant to Article 10. 9.3 Delay in Annual Review. The City's failure to review annually the Developer's compliance with the terms and conditions of the Agreement shall not constitute or be asserted by City as a breach by Developer of any terms of the Agreement. (Draft Date: 01/08/90) 14 [Released prior to review by client] 10. Default. If either party defaults under this Agreement, the party alleging such default will give the breaching party not less than thirty (30) days' Notice of Default in writing. The Notice of Default will specify the nature of the alleged default, and, where appropriate, the manner and period of time in which said default may be satisfactorily cured. During any period of cure, the party charged will not be considered in default for the purposes of termination or institution of legal proceedings. If the default is cured, then no default will exist and the noticing party will take no further action. 10.1 OPtion to Set Matter for Hearinq or Institute Leqa] Proceedings. After proper notice and the expiration of the cure period, the noticing party to this Agreement, at its option, may (i) institute legal proceedings pursuant to Section 10.3 or (ii) schedule hearings before the Planning Commission and the City Council for a determination as to whether this Agreement should be modified, suspended, or terminated as a result of such default. 10.2 Waiver. Except as otherwise expressly provided in this Agreement, any failure or delay by a party in asserting any of its rights or remedies as to any default by the other party will not operate as a waiver of any default or of any such rights or remedies or deprive such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert, or enforce any such rights or remedies. 10.3 Remedies Upon Default. In the event of a default by either party to this Agreement, the parties shall have the remedies of specific performance, mandamus, injunction and other equitable remedies. Neither party shall have the remedy of monetary damages against the other; provided, however, that the award of costs of litigation and attorneys' fees shall not constitute damages based upon a breach of this Agreement where such an award is limited to (i) the costs of litigation incurred by City, and (ii) the "fee" equivalent of City's costs for the services attributable to litigation and representation by the City Attorney, including assistants and staff. 11. Modification; Suspension; Termination. 11.1 Modification by Mutual Consent. This Agreement may be modified, from time to time, by the mutual consent of the parties only in the same manner as its adoption by an ordinance as set forth in California Government Code Sections 65867, 65867.5 and 65868, and Resolution 11933 of the City of Chula Vista. The term "this Agreement" as used in this Agreement will include any such modification properly approved and executed. (Draft Date: 01/08/90) 15 [Released prior to review by client] 11.1.1 Minor Modifications. The parties to this Agreement contemplate the periodic review and modification of the SPA(s), the provisions of the Financing Plan(s) and the terms and conditions of the Future Discretionary Reviews and Approvals. Such agreed upon modifications by the parties hereto are anticipated and shall not constitute an amendment to this Agreement or a modification pursuant to this Section 11.1 but shall automatically be incorporated herein. In no event shall City require further consideration or compensation for the processing of any amendments which may be required to solemnify such modifications. 11.2 Emerqencv Circumstances. If, as a result of specific facts, events or circumstances, city finds, following the procedures outlined in this Section 11.2 and based upon the preponderance of all evidence presented by the parties, that a severe and immediate emergency threat to the health and safety of the citizens of City requires the modification or suspension of this Agreement, City will: 11.2.1 Notification of Unforeseen Circumstances. Notify Developer of (i) the initiation of City's determination process, and (ii) the reasons for City's determination and all facts upon which such reasons are based; 11.2.2 Notice of Hearina. Notify Developer in writing at least fourteen (14) days prior to the date, of the date, time and place of the hearing and forward to Developer, a minimum of ten (10) days prior to the hearing described in Section 11.2.3, all documents related to such determination and reasons therefor, and 11.2.3 Hearina. Hold a hearing on the determination at which hearing Developer will have the right to address the City Council. At the conclusion of said hearing, City Council may take action to suspend this Agreement. City Council may suspend this Agreement if, at the conclusion of said hearing, based upon the evidence presented by the parties, the City finds that the suspension of this Agreement is required to avoid an immediate and severe threat to the health, safety and general welfare of the City; 11.2.4 Unilateral Suspension. Where the citizens of City face a severe and immediate threat to their health and safety, City may unilaterally suspend the effectiveness of the Agreement for a period not to exceed the time reasonably required for notice and a public hearing. 11.3 Chanae in State or Federal Law or Requlations. If any State or Federal law or regulation enacted during the term of this Agreement or the action or inaction of any other affected governmental jurisdiction precludes compliance with one or more provisions of this Agreement, or requires changes in plans, maps, or permits approved by City, the parties will act pursuant to Subsections 11.3.1 and 11.3.2. (Draft Date: 01/08/90) 16 [Released prior to review by client] 11.3.1 Noti~. The party first becoming aware of such enactment or action or inaction will provide the other party with written notice of such state or federal law or regulation and provide a copy of such law or regulation and a statement regarding its conflict with the provisions of this Agreement. The parties will promptly meet and confer in a good- faith and reasonably attempt to modify or suspend this Agreement to comply with such federal or state law or regulation. A copy of any such notice which is sent to Developer shall also be sent to the holder of any institutional first deed of trust encumbering the Project if such holder has made written request for notice and provided City with the holder's address for notice purposes. 11.3.2 Hearina on SuDersession of Development ~. Thereafter, regardless of whether the parties reach agreement on the effect of such federal or state law or regulation, the matter will be scheduled for hearing before the City Council no sooner than ten (10) days following written notice of such hearing to Developer. The City Council, at such hearing, will determine the exact modification, suspension or termination which is required by such federal or state law or regulation, if any. Developer, at the hearing, will have the right to offer oral and written testimony regarding any proposed action by City. Any modification, suspension or termination of this Agreement is subject to judicial review. 11.4 Notice of Termination. In the event that this Agreement is terminated pursuant to any of the methods authorized herein this Article 11, City shall prepare and record a Notice of Termination containing a reference to this Agreement and the effective date of any such termination in a form suitable for recordation with the County of San Diego. 12. General Provisions. 12.1 Enforced Dela . Without modifying either party's right to allege a default under this Agreement, the failure to perform or a delay in performing the requirements of this Agreement by either party shall not constitute a default for purposes of this Agreement where such delay or failure to perform is directly caused by litigation by the City against Developer or by a City-imposed moratorium on residential commercial or industrial development. 12.2 Notices. All notices required by or provided for under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid, return receipt required, to the principal offices of City and Developer. Notice shall be effective on the date delivered in person or the date when the postal authorities indicate that the mailing was delivered to the address of the receiving party indicated below: (Draft Date: 01/08/90) 17 [Released prior to review by client] Notice to Developer: With Copy to: Robert L. Santos Craig Beam President, Chief Operating Officer Luce, Forward, Hamilton EastLake Development Company & Scripps 900 Lane Avenue, Suite 100 110 West A Street, # 1700 Chula Vista, CA 92013 San Diego, CA 92101 Notice to City: City Manager City Attorney The City of Chula Vista The City of Chula Vista 276 Fourth Avenue 276 Fourth Avenue Chula Vista, CA 92010 Chula Vista, CA 92010 Such written notices may be sent in the same manner to such other persons and addresses as either party may from time to time designate by mail. 12.3 Joint and Several Liability. If either party consists of more than one legal person, the obligations are joint and several. 12.4 Severability. If any material provision of this Agreement is held invalid, this Agreement will be automatically terminated unless, within fifteen (15) days after such provision is held invalid, the party holding rights under the invalidated provision affirms the balance of this Agreement in writing. This provision will not affect the right of the parties to modify or suspend this Agreement by mutual consent pursuant to Section 11.1. 12.5 Recordation of AGreement; Amendments. All amendments hereto must be in a writing signed by the appropriate agents of City and Developer, in a form suitable for recording in the Office of the Recorder, County of San Diego. Within ten (10) days of the effective date of this Agreement, a copy will be recorded in the Official Records of San Diego County, California. Upon Completion of performance of this Agreement or its earlier termination, a statement evidencing said completion or termination, signed by the appropriate agents of Developer and City will be recorded in the Official Records of San Diego County, California. 12.6 A 'cable w. This Agreement will be construed and enforced in accordance with the laws of the State of California. 12.7 AssiGnment. Developer may transfer its rights and obligations under this Agreement if such transfer or assignment is made as part of a transfer, assignment, sale or lease of all or a portion of the Property and the City consents to said transfer. Said consent shall not be unreasonably withheld. 12.8 Term of AGreement. This Agreement shall expire ten (10) years after the date it is entered into. (Draft Date: 01/08/90) 18 [Released prior to review by client] 12.9 Conflic__~t. The provisions stated in this Agreement shall prevail should there be any conflict between this Agreement and the Financing Plan. 12.10 Covenant of Good Faith and Fair Dealinq. Neither party shall do anything which shall have the effect of harming or injuring the right of the other party to receive the benefits of this Agreement; each party shall refrain from doing anything which would render its performance under this Agreement impossible; and each party shall do everything which this Agreement contemplates / / / / / / / / / / / / / / / / / / / / / / / / / (Draft Date: 01/08/90) 19 [Released prior to review by client] that such party shall do in order to accomplish the objectives and purposes of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. CITY DEVELOPER CITY OF CHULA VISTA EASTLAKE DEVELOPMENT COMPANY, a municipal corporation a California general partnership compromised of corporations By: By: Daniel V., Inc. Gregory Cox a California Corporation, Its: Mayor General Partner By: Robert L. Santos, Vice President By: David IV, Inc., a California corporation General Partner By: David B. Kuhn, Jr., President I hereby approve the form and legality of the foregoing Agreement this __ day of __, 1989 Thomas Harron, City Attorney \v~AG097CKBr\arg (Draft Date: 01/08/90) 20 [Released prior to review by client] STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) On this day of , in the year 19 before me, of the City of Chula Vista, personally appeared Gregory Cox, known to me to be the person who executed this instrument as Mayor of the City of Chula Vista, a political subdivision of the State of California, and acknowledged to me that the City of Chula Vista executed it. WITNESS my hand and official seal. STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On this __ day of , in the year 19 before me, the u~dersigned, a Notary Public in and for said State, personally appeared Daniel D. Lane, personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the President of the corporation that executed the within instrument on behalf of EastLake Development Company, the partnership that executed the within instrument, and acknowledged to me that such corporation executed the same as such partner and that such partnership executed the same. WITNESS my hand and official seal. (Draft Date: 01/08/90) 21 [Released prior to review by client] STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On this __ day of , in the year 19 before me, undersigned, a Notary Public in and for said State, personally appeared David B. Kuhn, Jr., personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the President of the corporation that executed the within instrument on behalf of EastLake and executed the within instrument, and acknowledged to me that such corporation executed the same as such partner and that such partnership executed the same. WITNESS my hand and official seal. (Draft Date: 01/08/90) 22 [Released prior to review by client] Chula Vista Investors December 20, 1989 Chula Vista Planning Commission c/o Mr. Robert Leiter, Planning Director City of Chula Vista 276 Fourth Avenue Chula Vista, California 92010 Dear Mr. Leiter and Planning Commissioners: I would like to extend an invitation to the Planning Commission for a presentation and tour of our proposed bayfront community. May I suggest Saturday, February 17, 1990, at 9:00 a.m. We would meet at the Chula Vista Nature Interpretive Center for a slide presentation by Carl Worthington of the the Jerde Partnership and Pat Caughey of Wimmer Yamada Associates. The presentation will be followed by an on-site tour in 4-wheel drive vehicles. The entire program should last approximately one and one-half hours. Please confirm with Susan Gossling of our office. Susan will work out the logistics of transportation, etc. I look forward to the opportunity to meet and talk with you. Sincerely, William J. Barkett WJB:cl 610 West Ash Street, Suite 1200, San Diego, Calilbrnia 92101 · (6191696-9906 · (619) 235 6700 FAX