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Development Agreement 2004-0147275 - . .. Oc-t-WUlRJI47L75 i I 100'76 ' FE,13 25. 2004 8::':'5 ;~t1 RECORQING,REQUESTED BY, ,OFFICIAl RECORDS' \ SAN DIEGO COUNTY RECORDER' SOFFICE CITY,cLERK,;CITY OFPOWAY GRffilRYJ.,.SMITH, COUNT,Y:RECORDER I , FEES: 206,00 , , W8EN RECORDED MAIL TO' I I CITY CLERK ,. CITYOFPOWAY , f . ~ . .~_{ ,I'. ',' . - ",' I 1'__ <<,<6 13325 CIVIC CENTER DRIVE , 1111111111111111111111111111111111111111111111111111111111111111111111 , ,POW A Y, CA 92064 '!;~._.._.. ~,.:.2qq4:q.14?275 ,"j J @'A~ THIS SPACE FOR RECORDER'S USE ONLy I J;., v \bdi Recording Fees Exempt Per Government Code Section 27383 DEVELOPMENT AGREEMENT between CITY OF POWAY and COST60 WHOLESALE CORPORATION September 2, 2003 1 jL( -0\5 ~,,~ . . 1007'7 Table of Contents Page ARTICLE I Recitals .2 11 Code Authorization..................,..".....................,..,............."."........,.............."..............,....,..... ..,...,....2 1.2. Interest of Owner c....,.........."."..........,...,............,.............,.....................,.....,.......,...2 1.3. .Intent of Parties ,.......,.,................,.........,..,..........",......,......,..........,..".,.......".............,..3 14.. Entitlements 4 ARTICLE II Definitions ..........................-..5 2.1 "Effective Date" ...........................................5 2.2. "Entitlements" ............".,..,...,..,.............,.."..,............................,...............................6 2.3. '''Exaction'' .,............."..,.......,..",.........",..,....,.6 2.4 "Existing Laws" iO.....'.....................".,..,........."..............,.............,.,...........,......,........,...;"........6 2,5. "Future Exaction" .,.,.....c;;........6 2.6.. "Future Laws" "............,,:.,....6 2.7 ,iF,uture Entitlements" 7 2.8. "General Fees" .0...-0.......7 2.9. "General Plan" .. ..., 2.10. "Project" 7 ARTICLE III General Provisions 7 3.1 Term of Agreement 7 3.2. Assignment .8 3.3. Amendment of Agreement.....................,.....,............................ ........,..................................................9 3.4 Enforcement.....,...,..........,..,..,.............,.............,............,..............,..".,.....,.,...,.,...,.......... ...............,.,1 0 3.5. Hold Harmless 10 3.6. Third Party Challenges........,......................., ............,..................,......,.............. ..........., ....................10 3.7 Notices .......................,.............................................10 3.8. Conflict of State or FedeniIL<iws. ....................................................11 ARTICLE IV Development,ofthe Property ............, ...............................".............................................12 4 1 'Applicable Rules, Regulations, and Po"ficies, 12 4.2. Entitlement tq Develop 12 4.3.. . Generally",..., ...,......., ,....,...,.,................,...,..,.......,...,.,........................,....,...,......,.........,.....". 12 44 Public Safetyigules 13 4.5. Existing.Laws 13 4.6. Future Laws ........,.......... ..................,........................,.........., ,........,........".....................................13 47.. Future'Entitlements 14 48. Building, Permits........... ........,............................................,................".......................,.........,......... 14 4.-9. Parcel Maps:. ........,..................,..........,...................,.........., 15 4 10., l!1odification,ofApprovals 15 411 Pennilted Uses and Density:...........................................................................................................16 412. Permitted Fees. ........................................................................................:..............., 16 4 13. Time for Construction and Completion of tneproject. ;........... ................16 4 14 Moratorium 17 i 7] 825.00136-1368513,2, . . 10078 Table of Contents (continued) Page 4,15.0peratingMemoranda. ...............................................................................................18 416. Term ofMap(s) and Other'Pfbject Approvals 19 4,1 TI)1frastructure Capacity 19 4,18. Termination or Modification............................... ................... c................................ ........... ..... ........ ,. ,19 ARTICLE V Provision of Public Benefits 19 5c 1 Description of Public Benefits .20 5.2. Timing of the Public Improvements 20 ARTICLE VI Construction and Reimbursement of Public Improvements .20 6.1 OwnerHespohsibilites.... ....... ........................ ...... ,....... ..,.... ..c. .,. ....... ....................... .... ............ ..........20 6.2. City Responsibilities .20 ARTICLE VII Annual Review,.. ... '" ... .,.. '.. ,.... ... ,...,.. ... ... ......... ,.... ..." ,.,.... ,.. ...,... .... ... .... .,...... .... ....,....... ... .... .,............ ..,.". ... 21 71 City,Responsibilities. .21 7.2. Owner Responsibilities:, .21 7.3. Opportunity to be Heard ,.,........,.,.."........,..."...............................................,.............................,.21 7 4 Information to be Provided io Owner .........21 7.5. Annual Review Letter .2"2 7.6. Estoppel Certificates ..... .......;........ .....................,...."......,....................................... ............. .... ...c .......22 77 Failure of Annual Review ,............,..........................,........................................................................23 ARTICLE VIII Delay, Default, Remedies,'cmdTermination .23 8.1 Notice and Cure of IDefaulL :...................23 8.2. Option to Institute [.egal'Proceedings'or to Terminate. ,23 8,3. Notice of Termination. .............24 8.4 Waiver .24 8,5. Default by Owner 24 86. Default by City .24 8:7. Enforced Deiay, Extension ofTime of Perl'ormance. .25 8:8. Institutiorl,ofLegal Action. ..........................................,.,...........25 8.9:. FutUre Litigatioh'Expenses.,..,. ..........,..".................,............... :.......,.........,.. ..................,........ .........26 ARTICLE IX Encur1')brance.s and Releases on Property .27 9 1 .IDiscretion.to'Encumber .27 9,2. EntiilementtO.Written Notice of Default .27 93, Additiona'l Mortgagee Protection .28 ARTICLE X Miscellaneous Provisions 28 ii 71825-.00136-1368513.2 . . 10079 TaBle of Contents (continued) Page 10,1 Rules. of, Construction,.".,.................,...,........................,..,..,.........,.............".,..,................."..,.., .,28 10,2, Severability .28 10.3. Entire Agreement .29 10.4 Waivers 29 10,5, Amendments .29 10:6. Recording .29 10.7 Project asa Private Undertakirig ,,30 10,8. Incorporation of Recitals 30 10.9. Captions 30 1 OA O. Consent. ". ",,". .". .".. "............. ."... ."......................" ...". ...... ''', .................... .......... ....... ".""."...... 30 10.11 Covenant of Good Faith,and'Fair Dealing...."""......""".........,............"........................"."..........30 10,12, Coveriant of,Cooperation 30 10,13, Further Actions and Instruments ......"".,..,...................",."",.............31 10,14 Successors.and Assigns 31 10,15. Time.oUhe Essence ................"..".,.....................,.."..,....................,..,..,..,..............".."..,.32 1 0.16, Applicable Laws" :,.,..,.,............,,,.,....,....,......,...........,".............................,,,..,...........32 1 0 17 No Waiver of Existing R'ights or Applicable Laws ,.,."...................,.....,...................,..,.....~ iii 71825.()OIJ6"IJ6851J,2 I . . . 1:0080 Table of Contents (continued) Page LIST OF EXHIBITS A. Description ofProper:tY B. Construction and Reimbur.sementAgreement iv 71825,,00136-1368513.2 . . 1.0081 DEVELOPMENT AGREEMENT This Development Agreement~.("Agreement") is entered into by and between the CITY OF POWAY, a municipai corporation C'City"), and COSTCO WHOLESALE CORPORATION, a Washington Corporation ("Owner"). ARTICLE I Recitals This Agreement is entered into oh the basis ofthe following facts, understanding intentions of the Parties: 1.1. Code Authorization, Government Code Sections 65864 through 65869.5 and Chapter 17.53 of City's Zoning Code (the "Development Agreement Legislation'!) authorize City to enter into binding .development agreements with persons or entities having legal or equitable interests in real property for the purposes of establishing certainty in the development process 'fOr both the City and the property owner, to provide for the financing and reimbursement of necessary public facilities, and to enable specific terms regarding property development to be negotiated and agreed upon. 1,2, Interest of. Owner, Owner is the legaL and/or equitable owner of certain real property totaling approximately 31 49 acres, .Iocated in the City and more specificaliywithinthe South Poway Specific Plan ("SPSP") area identified in the City's General Plan, The Property is described in Exhibit "A" (the "Property"), which is attached and incorporated by this reference. Owner intends to develop the Property with a project that willconsistofa discount club store of approximately 149,000 square feet with a gasoline'service station (the "Club Component") and a home .improvement 2 71?25"OO136-1366513:2 G . . 1'008.2 store with garden center of approximately 134,000 square feet (the "Home Improvement Componerit"), and to construct such other improvements: as are required by the conditions of approval of the Entitlements, Future Entitlements and this ,. Agreement (the "Project"). in order to assure the orderly installation of public improvements necessary for the Project, the Owner will construct necessary 'public facilities that will serve not only the Project but also th~ region, community, and SPSP , area, and will be reimbursed the cost thereof, not to exceed a.sum certain. 1.3, Intent of Parties. By this Agreement, the City and Owner intend to accomplish the following: a. Eliminate uncertainty in the planning and development of the Project by assuring the Owner that it may develop the Property, in accordance with Existing Laws, subjectto the terms.and conditions contained"in this Agreement; b, Assure the orderly installation of necessary improvemerits in the public right-of-way arid provide f9r public services appropriate for the development of the Project; c. Enable the City to obtain substantial public benefits by virtue of the construction.of the Project, including,. without limitation,. the following: (1) Fiscal benefits to City's'General Fund, . " - (2) Both short-term construction employment and long-term permanent. employri}ent within City; 3 71825-00136-1368513.2 . . 10083 (3) Necessary public street andtrafficfc9ntrol improvements that will serve the Project, region, community, and SPSP area, as Identified in that certain Construction and Reimbursment Agreement attached hereto as Exhibit B (the "Public Improvements"), d. p'rovide for the financing of the Public Improvements through reimbursement of design and construction costs by the City as authorized by Government Code Section 65865.2 and as set forth in Exhibit B, The execution of this Agreement by the City and Owner shall constitute conclusive evidence that the duly noticed public hearing before the City Council required by the Development Agreement Legislation has been held, and that the City Council has introduced (first rE;l.?ding) and adopted (seci::rrid reading) an Ordinance approving this Agreement and containing the findings required by the Development Agreement Legislation. The effective date ("Effective Date") of this Agreement shall be the date upon which this Agreement is approved by the Poway City Council. 1.4. Entitlements, The City has also approved or certified various environmental and land use approvals and other. entitlements relating to the development of the Project and the' Property These actions are collectively referred to as the "Existing Entitlements" and include without limitation. the following: a. CEQA. The environmental inipacts bfthe Project and the Property, including all Entitlements and Future Entitlements and this Agreement, have been prop"erly. reviewed 'and assessed by the City pursuant to the California Environmental Quality Act,. ,the "CEQA Guidelines" and the City's local guidelines Rrbmulgated 4 71825-00136-1368513.2 . . 10084 thereunder (hereinafter collectively referred to as "CEQA"), Ata duly noticed public hearing on or about March 4, 2003, the City Council approved a Mitigated Negative Declaration ("MND") in accordance with the requirements of CEQA. In approving this Development Agreement, the City Council has (a) reviewed the MND, (b) considered the information contained therein, and (c) determined that there are no substantial changes to the proposed project or the circumstances under which the Project is undertaken, nor any new information of substantial importance which would require preparation of a subsequent MND or other documentation pursuant to CEQA. A Notice of Determination was duly filed with the County Clerk of the City of San Diego on March 14, 2003 with respect to the Specific Plan Amendment and the Project. b, Specific Plan, On March 4, 2003, following a duly noticed public hearing the City adopted the South Poway Specific Plan Amendment No. 84-01 III (the "Specific Plan Amendment") designating the Property as "South Poway Commercial." c. Development Review Permit. On August 2JL, 2003, the City approved Development Review 03-13, applying the development standards established by the Specific Plan Amendment to the Property NOW, THEREFORE, in consideration of the Recitals and the mutual covenants conditions seUorth herein, the Parties agree as follows: ARTICLE II Definitions 2,1, "Effective Date" refers to the date on which the Adopting Ordinance became effective. 5 71825-00136'1368513.2 . . 1.008'5 2.2. "Entitlernimts" refers to all approvals and permitsmecessary or incidental to the development of the Project or any portion thereof, whether discretionary or ministerial, including but not limited to, those Existing Entitlements listed in Section 1 4 above, project plans, grading perniitS, building perniits, and this Agreement. 2,3. "Exaction" refers to any fee, tax, requirerT)ent, condition, dedication, restriction, or limitation imposed by the City upon the development of the Property at any time in accordance with the Existing Laws. 2,4, "ExistinQ Laws" refers to the ordinances, resolutions, codes, rules, regulations and official polieie's of City governing the development of the Property, including, but not limited to the permitted uses of the Property, the density or intensity of use, the design, improvement and construction standards and specificatiQns for the Project! including the maximum height and size of proposed buildings, and the provisions for reservaiionand dedication of land for public purposes, in effect on the Effective Date 2.5, "Future Exaction" refers to Exactions imposed after the Effective Date, whether by ordinance, initiative, resolution, rule, regulation, policy, order or otherwise, 2.6, "Future Laws" refers to all ordinances; resolutions, codes; rules, regulations,1:ln,.d offleialpolieies implemented by City after the Effective Date, whether by ordinance, initiative, resolution, rule, regulation,policy, order or otherwise, "Future Laws" includes changes to the Existing Laws, 6 71825-00136-1368513.2 . . 10086 2.7. "Futu"re, Entitlements" refers to all Entitlements approved or adopted by the City after the EffectiveDate, 2.8. "General i=ees~' refers to all general development fees which City may levy pursuant to the Government Code Sections 66000 at seq, ("the Mitigation Fee .A:ct"), including, but not limited. to. application fees, processing fees, utility connection fees, inspeCtion fee-s, capital facilities fees, development impact fees, traffic impact fees, park fees and such other similar fees as maybe ena_cted from time to time and generally applied ttiroLJghoutthe City 2.9. "GeneraIRlan" refers to the City's General Plan 'in effect on the Effective Date.. 2:'10, "Proiect" shall' mean and refer to all 'improvements described' in the Existing Entitlements, Future Entitlements, and this, Agreement, including iall onsite buildings and all on" and off"sife improvements and appurtenances in connection therewith as described in Article I, 'Section 2 above. ARTICLE. III Ge[ll~ral Prpvisions 3:1, Term of AQreement. The terrnof; ttiis Agreement (the "Term") shall c6mmence.owthe.Effective Date and shali continue until the date of payment in full of all reimbursement to which Owner is entitled under this Agreement and the Construction an.<:l Reimbursement Agreement i:iJtCl<::hed hereto 'and marked Exhibit "B," unless terminated, modified, or extended as permitted by this Agreement; provided, 7 71825~OO13E;.f368513.2 . . 10087 however, 1n no event shall the Term be less than three. (3) years or' be in excess of five (5) years, Following the expiration,'of the Term, this Agreefrlentshall be deemed terminated and of no further forc.eor eftect; provided, however, such termination shall. not affect any right or duty arising from City approvals, including, without limitation, the Entitlements, the Future Entitlements and surviVing from the Construction and Reimbursement Agreement,attached hereto, City shall, upon OWner's .request following expiratipn of the Term, cooperate with Owner in the execution of .any release document necessary to clear the recordation of this Agreem~ntfromOwner;stitle. 3.2, Assiqnment. The rights and obligations of Qwner'under this Agreement may be assigned by Owner as part of an assignment,:of;.all ora portion ofthe Property only with the express, prior'W'ritten consent of City; provided, however, that no such consent shall be required for partial assignment of this Agreement to the owne(of the Rome Improvement CO[Tlpohentas to the rights and obligations under such Home Improvement Component, provided that the assignee is either Lowe's or Rome Depot. No assignment shall be effective unless (1) such assignment is in wriHngand expressly provides thaethe assignment shall be subject to this Development Agreement;- (2) the Assignee assumes'all of'Owner's. rights and obligations with respect to the property or parC8lassighed; and (3) the City has determined', as to any assignment other than .the above-described assignment oftheHome Improvement Component, to Home Depot or Lowe's that the ;assighment will not affect the timely completion or fulfillment of any requirem"ents. in the Entitlements, the Future Entitlements' or this Agreement relating to .8 71825'00136'1368513.2' . . 1ll08:8 the "PUblic Benefits" (a!; herein?fter defined). Owner shall provide thirty (30) days' , advance written hotlce to the, City of' any requested assignment,as to any assignment other than the above-described assigl1ment or the Home Improvement Component, to Home Depot or Lowe's, Iii determining whether an assignment will affect the timely completion or fulfillment of any requirements relating to:the Public Benefits, City agrees , (a) not to unreasonably withhold its determination that tne assignment will not affect the timely completion orfulfillinent 6hequirements relating to the Public Benefits and (b) to approve any assignment where itcan be demonstrated to the reasonable satisfaction of City that the proposed assignee has the finahcial capi3bility to complete in a timely fashion and fulfill any uricompieted requirements relating 'tel the Public Benefits, has a commercial reputation comparable to that of Owner, Home. Depot or Lowe's and cC,3n provide Public Benefits comparable to those provided bY 'Owner Upon the making, of anyas-signment permitted hereunder, the assignee shall be deemed to be a "Party" herel:Jnderand to be the Owner as to the Property, or portion of the PfopertYi:a'cquired by such assignee, Without limitation upon the foregoing, this Agreement may not be amended or modified without the joinder or any s'uch assignee. 3,3, Amendment of ,Aareement. This .Agreement may be amended by the mutual writt,encoD,sent of the Parties in the man her provided by the Development Agreement Legislation. This "Agreement" shall include any amendment properly approved ahcj eX"ecLited Minor modifications in the manner of performance" including, but not limited to changes which relate to the design of the Project shall not constitute an Amendment to this Agreement and may be accomplished through the City Manager's'qffice or the Department of DevelopmentServices 9 71825-00136-1368513,2 , . . 1'0089 3.4. Enforcement. Unless .amended or lerriii6ated as prQvided 'herein, this Agreement is enforceable by either Party or it's successors and assigns, notwithstanding any Future Laws, which alter or.amend thehExisting Laws. 3,5. Hold' Harmless. Owner agrees to protect, defend, indemnify, and hold harmless the City, its officers, agents, and employees<from any and all claims, liabilities, expenses or damages of ',any nature arising out of or in any way connected to any challenge, in litigation or othe'rwise, by Owner or any third party asserting that:all or any part orthis Agreement'is invalid'orlegally inadequate. 3.6, Third PartvChallenQes. In the event the validity, applicability, or implementation of this Agreernent is challenged by means of legal proce-edings by any party other than the City and -Owner, it shall be the option of Owner, in its <sole and absolute discretion and at its sole expense, to defend the validity, applicability, or implementation of this Agreern.ent in the proceeding. City and Owner agree to cooperate in the defense of any such challenges. 3.7. Notices. All notices or communication between the City' and Owner pursuant to this Agreement shall be in writing and shall be given by personal delivery (in'ciuding commercial express delivery services providing acknowledgments of receipt), registered, certified; express mail, facsimile or tEllecopy, or telegram to the addresses set forth below, Receipt'shall be deerned cornplete as follows: a. For personal delivery, upon actual receipt; 10 71825-00136-1368513,2 . . ., 10'090 b. For registered, certified, or expre'ssrflail, upon; the delivery date or attempted deliverydAte,as shown on the return receiptj and c. For facsllllile, upon transmission ,ofthe facsimile or, if transmitted after business hours, then the,next busir:less day Notices shall be addressed as follows: To the City' Jame$ L.,Bovversox CjtyManClger City of Po way 13325 Civic Center Drive Poway, CA 92064 FAX (858) 679A226 To the Owner' Costco;Wholesale Corporation 999'Lake Drive 'lssaquah,.'WA98027.~5367 FAX (425):313~8t05 With copy to. Greenberg,GliJsker, Fields, Claman, Machtlnger.&Kinsella LLP 1900 Avenue oftheStars, Suite.2100 Los Angeles; C,II. 90067 Attn~HenfyD Finkelstein, Esq. The addresses to which notices shall be sent may be,changed by giving ten (10) days' written notice of change of address in the manner set'. forth above. Following any assignment permitted hereunde~, each Party shall also provide notice as aforesaid to each such assignee .in the same manner a~ to each original OWherand to the addresses provided by such assignee to the Parties. 3,8. Conflict of State or Federal Laws. If State or Federal laws or regulations enacted after the Effective Date prevent compliance with any provision of this Agreement or recjuire chal}ges in the Entitlements or any Future Entitlements, the State or Federal law or regulation shall be controlling and theParties shall.make a good 11 .71825-00136'1368513.2 . . t0091 faith and objeCtively reasonable attempt to modify this Agreement to comply. both'with the intent of this Agreement and with the new law.orregulatibn. The' City shall timely assist Owner in securing any permits, including permits from other public agencies, which may be required as ai, result of the modifications, suspensions, or alternatecburse of action. ARTICLE IV Development of the Property . 4:1. Applicable Rules. Reaulations, and Policies, The rules, refflJlations, and policies applicable to the development of the Property-shall be those setforth in the Entitlements. . 4,2, Entitlementto"Develop. Owner shall have:the vested right, to the fullest extent allowed under the Development Agreement Legislation, and except as expressly restricted in this Agreement, to develop the Property in accordance with the Entitlements subject to the Future Entitlements and the Existing Laws, During the Term, the Entitlements, Future Entitlements, Existing Laws and this Agreement shallcohtrol the overall design, development and construction of the Project 4.3, Generally Future Laws shall not apply to the Project except as'expressly provided in this Agreement Owner may give City written notice of its eiection to have any Future Law .applied .to the Property, in which case such Future Law shall be deemed to be an Existing Law 12 71825-00138-1368513,2 . . 1009',2 4:,4, Public:': Safety ,Rules. 'Notwithstanding the 'foregoing,. nothing in this Agreement-shall preclude City from applying changes'occu~ring from tirne to time in the Uniform Building Code, Uniform Electrical 8o'de, Uniform Fire Code, Uniform Mechanical Code, or Uriiform Plumbing Code, provided that such changes (i) are found by City to be necessary to the health or safety of the ,citizens of City, (ii) are generally applicable to all similar types.ofproperty in City, and (iii)do.notprevent or unreasonably delay o(adversely economicafiy impact development'of'the Projectifl accordance with this Agreement. In the. event of'any inconsistency between.the Existing LClWS and this Agreement, the provisionsofthis Agreement shall controL 4.5. ExistinQLaws, Prior to the Effective Date, City and Owner shall use reasonable efforts to iaentify two Identical sets of the Existing Laws, one set for City , ' and one set for Owner, so 'that' if it becomes necessary in the future to refer to any of the Existing Laws, there Will bea 'common set ofthe Existing Laws available.to both parties. 4,6, Future .Laws. The Future Laws, including, without limitation, any change in any applicable general plan or specific plan, zO"ning, subdivision or building regUlation, adopted or .oecomingeffectlve after the Effective Date, inCluding, withou! " limitation., any such change by means of an 9rdinalice, initiative, referendum, resolution, policy,. order or moratorium, initiated or instituted for any reason whatsoever and adopted .bytheCity Councilor any other bOClrd,cbri;1"mission or department of the City, or ariy'officeroremployee ther(3of, or by the electorate; as the case may be, which would, absent this Agreement, otherwise .be applicable to the Property, shall not be applied by the8ity, to any part of the Property Owner may, in its"sole discretion, give 1.3 71825-00136,,1368513,;1 ,- . . 10093 , the City written 'notice of its election to have any Subseq'Uent Rule applied to such portion of the Property as it may own, in which case such Subsequent Rule shall be deemed to be an Applicable Rule insofar as that portion of the Property is concerned. 4.7. Future Entitlements, Provided that Developer's applications for any Future Entitlements are consistent with this Agreement and the Existing Laws, the City shall promptly consider and grant all Future Entitlements which are-a logical evolution of and which will further the goals, objectives, policies and plans contemplated by the Agreement in accordance with the Existing Laws and shall authorize the development of'the Property for the uses and to the density and intensity as described herein. The City shall have the right to impose reasonable conditions in connection with Future Entitlements; provided, however, such conditions shall not be inconsistent with the Existing Laws nor inconsistent with the development of the project as contemplated by this Agreement and provided such conditions do not impose additional dedications, infrastructure or other public improvements which would not be required by the Existing Entitlements, 4,8. Buildina Permits, Because the Project has already been extensively analyzed in the MND, no new CEQA analysis for individuai buildings or phases of the Project shali be required, provided that such building or phases comply with' the terms and conditions of the Existing Laws, any applicable Future Entitlements, and this Agreement 14 71825-00136'1368513.2 . . , 100;94' 4.9. Parcel Maps. Developer intends to prepare one,or mote' Patcel Maps fo~ the Property (collectively; the "Parcel Maps") each of which shall be considered a Future Entitlement under Section 4,8 above, 4,10. Modification of Approvals. Throughout the term of this Agreement, the Developer shall have the right, at its election and without risk to any right that is vested pursuant to this Agreement, ,to apply to the City for minor modifications to the Existing Entitlements and Future Entitlements. The processing, review and approval by the City of, any such modifications shall proceed in accordance with Section 4,8 hereof The approval or conditional approval of any such minor modific?tion shall not require an amendment to this Agreement, provided that, in addition to any other findings that may be required in order to approve or conditionally approve t~.e modification, a firiding is made that the modification is consistent with this Agreement. Without limiting the foregoing, the City acknowledges and agrees that the development standards and guidelines in the Specific Rlanare primarily conceptual in nature arid that modifications and refinements to these standards and guidelines will b~ necessary in the 'normal course of their application to the Rroject. Such modifications and refinements shall be considered to be minor modifications which do riot require .an amendment to this Agreement, provided that such refinements and modifications are consistent herewith. The' Development Services Director shall have the authority to consider requests for such modifications and refinements and shall render his:or hE;r decision within thirty (30) days of receipt of'such request. Any disapproval by the Development Services Director of a request for a modification and refinement may be appealed by the Developer to the City Couricil. 15 71825-00136,1368513,2 . . . i 10Qi9:5 .4,11. Permitted. Uses. ,and Density, This! Agr,e,E'iment shall Vest the right to develop the Prope[:tyto the fullest extent allowed uriper the Development Agreement kegislatiohand the Entitlemerits with'tespect to the permitted uses of land, density and intensity of uses, and timing and phasing of development as described in the Entitlements and Future Entitlements. The permitted uses, density, and intensity of use ofthe Project, the maximum height and size of proposed buildings and provisions for reservation or dedication of land for public purposes, shall substantially conform to those specified in the Entitlem-eht and Future Entitlement conditions of approval, Existing Laws anq ,this Agreement. All other aspects ofthe'Project that are not specified in the Entitlement or Future Entitlement conditions of aRproval shall be determined by the Existing Laws, except as'expressly provided herein, To the extent the City retains discretion in the Future Entitlements concerning' future permitted land uses; density, and intensity oJ use(s), City agrees, absent conditions that the City deterll1ines are dangerous to the health or safety'of the residents of the City, not to exercise that discretion in such a way as to alter the timing of development or modify the he@htand design features of the Project as described in the Entitlements, Future Entitlements and this Agreement. 4.12., Permitted Fees, Except as otherwise provided in this Agreement, and specifically excli.Jdingf~es set by eritities not controlied by City that are collected by City, City 'shall ,only charge and impose those General Fees and Exactions, including, withoutlimifation, dedicatiohs and any other'fee.or tax (including excise, construction or any other tax) relating to development or the privilege of developing, Which are in effect on a City-wide basis as of the Effective Date. This paragraph shall not be construed to 16 71825,,00136,,1368513.2 . . 10096 limit the authority of City to charge normal and customary application, processing, and permit fees for land use approvals, building permits'ar;1d other ,similar permits, which fees are designed to reimburse City's expenses aWibutable to such application, processing and permitting and are in force and effecton a City-wide. basis at such time as said approvals and permits are granted by City 4.13. Time for Construction and Completion of the Proiect. Owner cannot predict when or the rate or the order in which the Property or the parcels will be developed, if at all. Such deCisions depend upon numerous factors that are not within the control of the Owne,.r, such as market orientation and demand, interest rates, absorption, completion, and other similar factors, Therefore,' Owner or its assignees shall have the right to develop the Property in phases, in such order, at such rate, and at such times as Owner of its assignees deems appropriate in Owner's business judgment, subject only to.the provisions of this Agreement. Owner or its assignees shall be entitled to apply for and receive approval of permits, building permits, and other Entitlements and Future Entitlements; for use at anY'time and for any or all portions or phases of the Project, provided that application is made in a manner consistent with this Agreenient. 4,.14, Moratorium, No City-imposed moratorium or other limitation (whether relating to tlje rate, 'timing or sequencing of the development or construction of all or any part of the Property, whether imposed by qrdinance, initiative, resolUtion, policy, order or otherwise, and whether enacted by the City Council, an agency of City, the electorate, Of otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative, or final), building permits, ()ccupancy certificates or other entitlements to use 17 71825-00136-1368513.2 . . 100:9:7 or service (including, without limitation, water and sewer) approved, issued or granted within City, or po.rtions of City"shall apply to the Property"to the extent such moratorium or other limitation isin conflict with'this Agreement; provided. however, the provisions of this Section shall notaffec!City's compliance with moratoria or other limitations mandated by other governmental agencies or court-imposed moratoria or other limitations. 4,15. OoeratinaMemoranda, The Parties acknowledge that the provisions of this Agreement require cooperation 'between City and Owner, and that the refinements and further development of the Project hereunder may' demonstrate that changes are appropriate with respect to "the details of performance of the Parties hereunder The Parties desire, therefore, to retain a certain degree of flexibility with respect to those items covered in general terms under this Agreement If and when, from time. to time during the Term, the Parties find that such changes or adjustments are necessary or appropriate; they shall effectuate such changes or adj0stments thr6ugti;'Operating Memoranda" approved by the Parties, which, after execution, shall be attached hereto as addenda and become a part'hereof,and may befurther changed and amended from time to time as necessary with further approval by City and Owner No such Operating Memoranda shall req'uire prior notice or heaiing, or constitute an amendment to this Agreement; and in.the case of City such Operating Memoranda may be acted upon by City's Development Services DireCtpf Failure of the Parties to enter into any such Operating Memoranda shall not -affect or abrogate any of the rights; duties or obligations of the Parties hereunder or the provisions of this'Agreement. .. 18 71825'00136.1368513.2 . .. 1009B 4.16. Term of Map(s} and Other Proiect Approvals. Pursuant to California Government Code Sections 66452.6(a) and 65863:9, the term of the parcel map that is processed on all or any portion of the Property and the term of each of the Entitlements and Future Entitlements shall be extended for a period oftime through the scheduled termination date of.this Agreement as set forth in Section 3.1 above. 4,17, Infrastructure Capacity, Subject to Owner's construction of tile Public Improvements in accordance, with this agreement and Exhibit "B" attached hereto, City hereby acknowledges that as ofthe Effective Date hereof it has sufficient capacity in its infrastructure services and utility systems, including, without limitation, traffic circulation, flood control, sewer collection, sewer treatment, sanitation service and, except for reasons beyond City's control, water supply, treatment, distribution and service, to accommodate the Project. To, the ,extent that City renders such services or provides such utilities, City hereby agrees that it will serve the Project and that there shall be no restriction on hOOKUps or ,service for the Project except for reasons beyond City's control. 4,18, Te'rmination or Modification. City's right to terminate or modify this Agreement may be exercised only after a public hearing and only if City determines that the failure of City to terminate or modify this Agreement would place the residents of City in.a condition dangerous to their health or safety ARTICLE V Provision of Public Benefits 19 71825-00136-1368513.2 , , i ,- . . 10099 5,1. Description of Public Benefits, The parties acknowledge that the following public benefits ("Public Benefits") will result from the construction of the Project in accordance with the terms and conditions of this Agreement: (a) Fulfilling long-term economic goals for City and the community (b) Fiscal benefits, including but not limited to sales and property taxes, will be provided to City's General'Fund, (c) Both short4erm construction emplqyment and long-term permanent employment will be provided within the City, (0) The Public Improvements will be financed and constructed 5,2. Timina of the Public Improvements, The Public Improvements will be constructed by Owner only if Owner proceeds with the Project, but will be completed before final occupancy of any part of the Project. ARTICLE VI Construction and Reimbursement ot'PlIblic Improvements 6,1, Owner Responsibilites, The Public Improvements will be constructed by Owner in accordance with this Agreement and the Construction and Reimbursement Agreement attached hereto as Exhibit "B" 6,2, City Responsibilities. The cost of the Public Improvements shall be reimbursed to Owner by City in accordance with the Construction and Reimbursement Agreemerit attached hereto as Exhibit "B " I I 20' , 71825-00136-1368513.2 , . . I 10100 I ARTICLE VII Annual Review 7,1. City Responsibilities. At least every twelve (12) months during the Term, I City shall review the extent of good faith substantial compliance by Owner with the terms of this Agreement (the "Annual Review"). At the conclusion of the Annual Review, the City's finding of good faith substantial c?mpliance by Owner with the terms of this Agreement shall be conclusive up to the date of such finding for the purposes of future Annual Reviews or legal action between the Parties. 7.2. Owner Responsibilities, At the Annual Review, it shall be the responsibility of Owner to demonstrate, in general fashion, good faith substantial compliance with the major provisions of this Agreement and to provide, to the best extent possible, the status and timing of development of'the, Project and construction of the Public Improvements. If requested by City, Owner shall provide any additional detail or information necessary to demonstrate good faith compliance with any particular provision of this Agreement identified by the City, 7,3, OpportunitY to be Heard, Owner shall be permitted an opportunity to be heard orally and in writing at any noticed public hearing regarding its performance under this .Agreement. Owner shall be heard before each appropriate board agellcy or commission arid the City Council at any required public hearing concerning a review of performance under this Agreement. 7.4, Information to be Provided to Owner, City shall mail to Owner a copy of staff reports and related exhibits concerning Agreement performance, a minimum of 21 71825-00136-1368513,2 . . . 10101 ten (10) calendar days prior to consideration and review'by the City Council as required by the DevelopmentAgreement'Legislation. 7,5. Annual Review Letter. If Owner is found to be in substantial compliance with this Agreement after the Annual Review, City shall issue, upon written request by Owner, a letter to Owner (the "Review Letter") stating that, based upon information known or made known to the City Council, and/or the City Manager, this Agreement remains in effect and Owner is in compliance, Owner may record the Review Letter in the. Official Records of the County of San Diego 7,6, Estoppel Certificates, Any Party may at any time, and from time to.time, deliver written notice to any other Party requesting that the other Party certify in writing that tcithe knowledge of the.certifying Party' a. This Agreement is in full force and effect and is a binding obligation of the Parties, b, This Agreement has not been amendecior modified either orally or in writing or, if so amended, identifying the amendments, c. There exists no material default in the performance of the requesting Party!s obligations under this Agreement. or, if in default, the nature and amount:of'any material default. A Party receiving a request under this Paragraph shall execute and return a certificate within thirty (30) days following receipt of the request. The failure to deliver such certificate within such time shall be conclusive upon the party whicb fails to deliver 22 71825,,00136-1368513,2 . . 1010'2 such certificate that this Agreement is in full force and effect without modification and that there are no uncured defaults in the performance of the requesting party A certificate given pursuant to this Paragraph may be relied upon by assignees and mortgages. 7.7, Failure of Annual Review, City's failure to perform the Annual Review of Owner's substantiai compliance with the terms and conditions of this Agreement shall not constitute or be asserted as a default by Owner or be deemed as a waiver of further Annual Review ARTICLE VIII Delay, Default, Remedies, and Termination 8,1, Notice and Cure of Default. In the event .of a material default, the Party alleging a default shall give the defaulting Party a notice of default in writing. The notice of default shall specify the nature of the alleged material default, and the manner and period of time of not less than thirty (30) days in which the default must be cured (the "Cure Period"), The Cure Period must provide sufficient and reasonable time for the default to be cured During th"e Cure Period, the Party charged shall not be considered in default. If the default is cured within the Cure Period; then no default shall be deemed to exist. 8,2, Option to Institute leqal Proceedinas or to Terminate. If a material default .is not cured within the Cure Period, the noticing Party may institute legal proceedings as 'provided in this Section 8,8 and/or give to the defaulting Party'a notice o(intent to terminate this Agreement. If a notice of intent to terminate this Agreement is 23 71825-00136-1368513,2 . . 10103 given, the City Council, within thirty (30) days after the giving of the Notice, shall hold a public hearing in 'the manner set forth in the Developm~nt Agreement Legislation, as amended, to consider and review the matter 8,3. Notice of Termination. Following consideration of the evidence presented before the City Council and its determination that a default exists, the Party alleging a material default by another Party, at its option, may give written notice of termination of this Agreement to the other Party and this Agreement shall be terminated immediately upon the giving of the Notice, The validity of the basis for such a termination may be challenged pursuant to Section 8.8 by the Party alleged to be in default. 8.4, Waiver, Failure or delay in giving notice of default pursuant to Section 8.1 shall not constitute a waiver of any other material default. Except as otherwise expressly provided in this Agreement, a failure or delay in asserting any rights or remedies as to any defaulUshall not operate as a waiver of any default or of any rights or remedies otherwise available to a Party or deprive a Party of the right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert,or enforce any rights or remedies it may have. 8,5, Default by Owner, An Annual Review may result in amendment or termination of this Agreement provided a material default has been established by substantial evidence and such default has not been cured within the Cure Period, 8.6., Default by City, Upon a material default by City, Owner, without limiting any of its other remedies, shall not be obligated to complete any of its'obligations under 24 71825-00136-1368513.2 . . . 10104 this Agreement. ,Upon a.City default, any resulting delaysiin Owner's performance shall not be construed as a defi:lUlt. Such default shall berefered to a referee for a report, finding ,and judgmentlthereol1 and issuance of all legal and equita61e relief appropriate under the circumstances of the controversy before such referee, If Own~r and City are unable to agree on a referee within ten days ofa written request to do so by either party material clefault by Owner nor'constitute grounds for.termination or cancellation of this Agreementby Cityand,the,Term shall be extended for the period of any such' delay 8:7. Enforced Oelav; 'Extension of Time of Rerformance. Neither Party shall be deemed to be in default' where delays or d efalJ Its are due to war, terrorism, bioterrdrism, insurrection"strikes, walkouts, riots, floods, .earthquakes, fires, casualties, acts of nature, unavailability of materials, governmental restrictions impQsed or mandated by other applicable governmental entities; suspension of rights in accordance with the existence of unforeseen circumstances, litigation (other than litigation arising between or among the Parties):qrsimilar bases fb.r excUsed performance, If written notice of such delay is given to the other Party following the commencement of such delay, an extension of time for performance shall be granted ili writing fqr the periodoDhedelay, or longer as n'lay' be mutually agreed upon. An extension shall commence to run from time of commencement of the cause of delay . .. I 8,8~ Institution of LeQal Action, In addition to any other rights or 'remedies, ,. any Party r'riay institute legal action to cure, correct, or remedy any default, to enforce any provision of this Agreement, to'enjoin :anythreatened or attempted violation of this Agreement, to recover damages for any default; or to 'obtain any'remedies consistent with the purpose of this Agreement. No such aCtion shall Qe, commenced withou(first 25' 71825-00136,;'368513,2 . . 1 OJ 0 5 seeking mediation of the dispute through the Superior Court of 'the County of San Diego, Legal actions shall be instituted in the Superior Court of the County of San Diego, State of California. Pursuant to Code of Civil Procedure Section 638, et seq" all legal actions shall be heard bya referee who shall be a retired judge from either the San Diego County Superior Court or the California Court of Appeal, provided that the selected referee shall have experience .in resolving land use and real property disputes. Owner and City shall agree upon a single referee who shall.then try all issues; hereto, either party may seek to have one appointed pursuant to Code of Civil Procedure Section 640 The cost of such proceeding shall initially 'be borne equally by the parties. Any referee selected pursuantto this Section 8.8 shall be considered a temporaiyjudge appoiritedpursuant to Article 6, Section 21 of the California Constitution, Notwithstanding the provisions of . this Section 8.8, either party shall be entitled to seek declaratory and injunctive relief in any'court of competent jurisdiction to enforce the terms of this Agreement, or to enjoin ,. the other party from an asserted breach thereof, pending the selection of a referee as provided in this Section 8.8, on a showing that the moving party would otherwise suffer irreparable harm. 8,9, Future LitiQation Expenses, (a) Payment to prevailing party, If City or Owner brings an action or proceeding (including, without limitation, any motion, order to show cause, , cross-complaint, counterciaim, or third-party claim) by reason of defaults, breaches, tortious acts, or otherwise arising out of this Agreement, tbe prevailing party in such 26 71825,,00136-1368513.2 . . " 1.0106 . action or proceeding' shall be entitled to itscosts@dexpensesof sUilinduding, but not limited to, reasonableiatlorneys' fees and expert witness fees, , (b) Scope of fees, Attorneys' fees under this Section shall include attorneys' fees on any appeal and, in addition, a party entitled to attorneys' fees, shall be entitled to all other reasonable costs and expenses, incurred in c6nnecti()n with, such action, In addition to the 'foregoing award of attorneys' fees to the prevailing party, the prevailing party in any lawsuit shall be entitled to its attorneys' fees incurred in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment . on this.Agreement. ARTICLE IX Encumbrances and Releases on Property 9,1, Discretion to Encumber. This Agre~m'eht shall not prevent or limit Owner, in any manner, from'ehcumbering the Property or any portion of the Property or any improvement on the Property by any mortgage, City acknowledges that lenders providing financing may reQuire modifications to this AgrElement and City agrees, upon request, from time to time, to meet with Owner and/or rewesentatives of lenders to negotiate ihgood faith any lender request for rriodificatiOrt City agrees that it will not unreasonably withhold its consent to any tender requested modification to this Agreement. 9,2, Entitlement to Written Notice of Default. Any mortgagee and its successors and assigns, upon writtehrequestto City, shall be entitled to receive from 27 71825-00136'1368513.2 ~ . . 10107 City written notice of any Owner default at the same time'Owner is provided with such notice pursuarit to.Section,8 1 above. 9,3, Additional Mortaaaee Protection, Any mortgagee of a mortgage or a beneficiary of a deed of trust of the Property (or a portion thereof) shall be entitled to the following rights and privileges: a, Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any mortgage or deed of trust on the Property-made in good faith and for valu,e. b, Any mortgagee receiving the notice referred to in Section 8.2 above shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agre~ment. ARTICLE X Miscellaneous Provisions 10.1, Rules of Construction. The singular includes the plural; the masculine gender includes'the'feminine, "shall" is mandatory; "may" is permissive, 10.2,Severabilitv. If any non-material provision of this Agreement shall be adjudged by a court.of competent jurisdiction to be invalid, void, or illegal, it shall in no wayaffed, impair, or invalidate any other provision of this Agreement. If any material . part of .this Agreement is adjudged by a court of competent jurisdiction to be invalid, void, or illegal, the Parties shall take all steps necessary to modify this Agreement to implement the original intent ofthe. Parties in a valid and binding manner These steps 28 71825-00136-1368513.2 C,;,ij . . i 10108 may include the waiver by either of the Parties of their right under the unenforceable provision, If, however, this Agreement objectively cannot be mo.dified to implemeht the 'original intent of the Parties and the Party substantially benefited by the material provision does not waive its rights under the unenforceable provision, the entire Agreement shall become void. 10.3, Entire Aqreement. ,Except as this Agreement expressly refers to and/or incorporates other agreements between the City and Owner, this Agreement constitutes the entire understanding and agreement of the Parties with respect to the subject matter of this Agreement This Agreement supersedes all other negotiations and previous agreements between the Parties with respect to that subject matter 10A, Waivers. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate agents of City or of Owner 10.5. Amendments, All. amendments to this Agreement must be in writing signed by the appropriate agents of City and Owner, in a formsuita~le for recording in the Official Records of San Diego County, California. 10.6. Recordinq, The City Clerk shall cause a copy of this Agreement to be recorded,with the'Office of-the County Recorder of San Diego County, Califomia within ten (10) days following the Effective Date, Upon the completion of performance of this Agreement or its revocation or termination, a statement evidencing completion, revocation, or termination signed by the appropriate agents of Owner and City shall be recorded in the.Officlal Records of San Diego County, California, 29 71825-00136-1368513,2 [;i . . l01,(J 9 10.7, Proiect! asa Private UndertakinCl. It is speCifici'!lIyunderstood .by the Parties, tlia! tne Project is 'a private development anq 'that OWner shall have the full power and exclusive control anhe Propertysubjectto 'the provisions of this Agreemeht. 10,8, Incorporation of 'Recitals, The Recitals set forth in Article I of this Agreement are part of this Agreement. 10,9. Captions. The captions of this Agreement-are for convenience and reference only and shall not' define, explain, modify;. cori'strue, limit, amplify or aid in the interpretation, construction or meaning of any of the provisions of thisAgreement. 10.10" Consent. Where the consent or approval of 'a Party is required: or necessary under this Agreemeht, the consent or approval shall hot be withheld unreasonably 10;11, Covenant of Good Faith and Fair DealihQ. 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 renderjts performance under this Agreement impossible. Each Par\y,shall do everything which this Agreement contemplates that such Party shall do to accomplish'the:objectives and purposes.oNhis Agreement. ; 10.1'2'..Covenant of Cooperation. The Parties shall cooperate'with and assist each other in theperf()rmance of the provisions of this Agreement, including assistance in obtaining p-ermitsfor the development of the Property which maybe required from public agencies ,other' than City The covenant of cooperation shall include, to the 30 '71825-00136.,1368513,2 . . 10.110 maximuni extent permitted by law, that CityshalJ !:l~f3 its best efforts. to prevent any ordinance, measure, moratorium or other limitation:. from. invalidating or prevailing over any provision of this Agreement, and City shall cooperate with Owner to keep this Agreement in full forceahci effect Owner reseivesthe right to challe'ngeany such ordinance, measure" moratorium, or other limitation in, a court of law if it becomes necessary to protect the development rights vested in the Property pursuant to this Agreement: 10.13, Further Actions and Instruments, Each of the Parties shalj cooperate with and provide reasonable ,assistance to the other in the performance of all obligations under this Agr~,ement and the satisfaction of the c;onditions of this Agreement including the8xecution and perf6rmimce of the Construction and Reimbursement Agreement attach.ed as Exhibit "8.." Upon the request of either Party, the other Party shall promptlY- execute, with acknowl~dgh1erit or affidavit if reasonably required, and file or record such required instruments'and writings and take any actiohs as may be reasonably neces(lary under the terms 'of this Agreement to carry out the intent and to fulfill the'provisions of this Agreement m to evidence or consummate the transactions contemplated by 'this Agreement. The Mayor of the City shall sign this Agreemehton'orbefore!the Effective Date. 10;1~, Successors and Assians,Subjectto Section.3.2 above, the burdens of this Agreement shall be binding upon, and the benefits of this Agreement inure to, all successors"in-interest and a~signs of the Parties. 31 71825,,061"36' 1368513:2 ,': . . 10111 10.15. Time of the' Essence. Time is of the essence of this Agreement and of each and every t13rm an<,l condition hereof 10,16. Applicable Laws. This Agreement shall be construed and enforced in accordance with the laws of the State of California. All statutory references are to California statutes, 10,17, No Waiver of Existlna Riahts or Applicable Laws, This Agreement shall not constitute a waiver of any of Owner's existiri'g rights or applicable laws nor shall it limit or expand Owner's right to challenge any General Fee as being contrary to applicable law or to challenge any existing or future Exaction as being in excess of Exactions permitted by applicable law This Agreement has been executed by the Parties as of the dates set forth below' CITY By' Dated CJ-2-"$/{J') Its: '" CITY OF POWAY By: Dated q .c1.3 .tJ -3. Lori Apnl:) peoples Its: City Clerk C~ST~ CORPORATION Dated I / ~jII1 ~s: RICtlARO I nllH . ~~ffll~~ssistant Secreta" APPROVED AS TO . CONTENT 32 71825-00136-1368513.2. ..-: . . 10112 By' Dated q;a3-o~ . Its: By. Dated 1/70 ItJf ~ltS: 33 71825-00136-1366513,2 . . 10113 CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT No. 5907 State of County of 0~D On DATE personally appeared , NAMEis) OF SlGNEA(S) ~rSOnallY known to me - OR - D proved to me on the ;Gf satisfactory ~e~ to be the person whose name isl e subscribed to the within instrument and ac- knowledged to me that he/$.ll67tm(y executed the same in his/i).ef/~r au~ed capacity~, and that by hisl r/tp.efr signature, on the instrument the person(~ or the entity upon behalf of which the person~cted, executed the instrument )- - - - ~~~-J ie NolaryPubllc-C'''' .oIw I San DIego CounIv - j _ _ _ ~~:.~_~2~~f. OPTIONAL -<'.. '- ., Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT D INDIVIDUAL D CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(S} D PARTNER(S) D LIMITED D GENERAL D ATTORNEY-IN-FACT NUMBER OF PAGES D TRUSTEE(S) D GUARDIAN/CONSERVATOR D OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) . SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION. 8236 Remmel Ave., P.O. Box 7184. Canoga Park, CA 91309-7184 ., . . 10114 CALIFORNIA ALL.PURPOSE,ACKNOWLEDGMENT No.S9D7 \ State of On before me, S DA E I;llQ; Y D \rJNAT LE OFOFFICER EG, JANE DOE NOTARY PU LI personally appeared . VYle.... U)v t1. \;l, , ~ NAME(SiOF.SIGNER(SI personally known to me - OR - 0 proved to me on the basis of satisfactory evidence to be the personj-sYwhose namej2{is/~ subscribed to the within instrument and ac- knowledged to me that,PEifshe/!J:l.eS' executed the same inj).i-S/her/tl;J.ei1 authorized capacity~ and that by ~er/t~ signatureM on the instrument he personW' or the entity upon behalf of which the '~&- -~cOwNs- - J personjP')aeted; executed the instrument. -. CommIsaliln #.1446353 WITNESS my h" rid and o~icial seal. i.; NoIaJy I'IlblIc - call1oinla f . Sari DIego~- j _ _ _ ~~:.fJ.o.~"'_~2~2~jf OPTIONAL Though the data below is not required by law...itmay prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form, CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT o INDIVIDUAL o CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(S) o PARTNER(S) o LIMITED o GENERAL o ATTORNEY.IN-FACT NUMBER OF PAGES o TRUSTEE(S) o GUA8Di~N/CONSERVATOR o OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE @1993NATIONALNOTARY ASSOCIATION. 8236 Remmet Ave., P.O. Box 7184. Canoga Park. CA 91309-7184 . . 10115 CALIFORNIA ALL.PURPOSE.ACKNOWLEDGMENT No. 5907 State of County of ~ On \~c DATE . P. NAME JTl personally appeared. .. t I.. , ~ NAMEISI OF SIG ERISI personally known to me- OR " D proved to me on the basis of satisfactory evidence to be the personwwhose nam$ris/~ subscribed to the within instrument and ac- knowledged to me that he/~tReY executed the same in his/Mr/tt).eir aU=:fr capacity(i)7s"), and that by his/ r/th;(,' signatur~ on the instrument the person , or the ~ity upon behalf of which the person acted, executed the instrument ~ ~~ - - -HUtYcOums - .. f WITNESS my hand and official seal. _. Commllsllln # 1446353 . ~. Notary PublIc - CaIIfooJlia f ~t~a. tl"Nv,) San DIego County - j _ _ _ ~~ _EMjl~"'_o.:2~ 2~7f OPTIONAL - I NATURE OF NOTARY Though the data below is not ",quiredby law, it may prove valuable to persons relying. on the document and could prevent fraudulent reattachment of thisform. CAPACITY CLAIMED BY'SIGNER DESCRIPTION OF ATTACHED DOCUMENT D INDIVIDUAL D CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE{S) D PARTNER(S) D LIMITED D GENERAL D ATTORNEY-IN-FACt NUMBER OF PAGES D TRUSTEE(S) . D GuiIRPIANlCONSE"RVATOR D OTHEFt . .. '. DATE OF DOCUMENT SIGNER IS REPRESENTING. NAME OF PEASON(S) OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE @1993NATIONALNOTARY ASSOCIATION. 8236 Remmel Ave., P.O, Box 7184. Canoga Park, CA 91309.7184 . . lO'11-6 STATE,0FWASI:IINGToN ,) ) ss. COUNTYOE KmG ) On January 20; 2004,.bef6te hie, Tricia A. L. Wiiblir,irNotary Public in and forsai'ci State, persohally,aRpeated Richard J "Glin, pe"fsonally knownitome to beJhe person whose name is subscribe_d to"the"attached..docum~ntanc! acknowledged to me:thathe.exeCljled. the sameiih his authoriz,eii' capacity,!and that by his signature.on the instrumen't the person acted, or the entity upon behalf:ofwhich the'person'.acted, .executed the instrument. WITNESS my hand and official seal. TRICIAAL WILBUR tJJ~ NQT~RY PUBLIC STATE OF WASHINGTON Tricia A. L. Wi . ur . COMMISSION'EXPIRES Notary Public in and for,the OCTOBER'9' ,2007 ~ State of Washington Residing at: Covington My commission expires: 10/9/07 ....--- . . 10117 EXHIBIT A ;Le2alDescriptiim of tile Propertv Thelandrefe[fed,to hereinis~situated in the State,of California, Collhty of San Diego, and is ref~rred to as follows: All of Parcel 2 ofPai'cel Map No, .17607, filed' in the Office'oftheCounty Recorder, OctoiJer20, 1995, as.FileN6'1995-0473968 of Official Records;that,portion ofLof4 of Section 19, Township 14 South, Range 1. West, San Bem'JIclil1oMeridjan and that portiori ofthe Southeast:Quarter of the Southeast Quarter of SectionJ24, T~ownship"l4 South;.Range 2 West, San Bernardino Meridian, in the QityofPoway, County of San' Diego, State ofCa:Iifornia,.inore particularly-described' as follows: Beginning attheSouth\vesterlycorner of said. Section W; .thence along the most Southerlyline.ofsaid Pafcel'2,]\[ortI1' 87.62 I '18" West, 6.01 feet; thence North'OQ~28'46"West, 32:55feetto a poirit on the.Northerly right-of-way line of Kir)d1am Way-as ded,.icated p(':r said Patcef'MapNo. 17607, thence Westerly along said right~of;'Y,!y.lin,e, North 87021' 18" West, 653.83feet; thence North 02038'42~"East, 385 00 feet; thence N<irth87021 '.18" West 688.64 feet to a point onthe Easterly rigllt'Of'wayline of,Tech Center Drive.as dedicated pel' Deed recorded Ma.rch 22,1993; as Doc.,N(), 1993,.0174230 of Official Recofdsif,thence.NortherIY'along said rigl1t~oFway line, North 00008"03" West (record North 00007'57" West per said Deed) '792,99 feet to the begriming a'tangent 34,50 foot radius curve concave.Southeasterly;thence Northeasterly. along the arc ofsaid curve through a centra.langl~of86037' 17" (record 86038 '18" per said.Deed) a distance 'of 57.16 feet (record 52.17' per said Deed) toa point on the Southerly right-of-way line of Scripps p'O\vayPafkway as dedicated pef Deed recorded August 25, 1993, as D()c, No, 1993-0554187 Of OffiCial Records; thence Easterly along said right-of~way line and tangent to said curve, North 86'29'.14" East 8433 feet (record'8436' per said Deep) to the beginning of atangent299,50 foot radius curve concave Southerly; thence Easterly. along the arc of said curve through a central angle of 05051' 45" a distance of 30 .t:j4 feet (record 30.65 'per Deed); thence tangent to said curve and continuing along said right-of-way line, South 87039'01" East; to the Northea.st comer of Parcel 2 of said Patcei'MapNo. 17607, thence leav~ngsaid right-of~wayJine N6rth'00028' 46" East to the Southerly line of City ofPoway Tract 87'13 Unit 1, accofdihg'to Map thereof No. 12556, thence along said Southerlyline South 87039'01" East to a point on tlieEastIine of said Section 24, thence South 88019' 17" East 833 feet;theI!ce lt~aying said Southerlyh~eSouth.00028'46';East to.a.point on the Southerly line of said SeCtion 19, distant thereonSouth'88015 '43" East 6:00 feet from the Southwest comer thereof; then~eNorth 88015'43"West6 00 feet to the point of beginning. . APN 3.17-280-67'00 Exhibit "A" 71825-00136,,1374907.1 . . 1011'8 EXHIBIT B CONSTRUCTI0N AND REIMBURSEMENT AGREEMENT THIS. CONSTRUCTI0NAND REIMBURSEMENT AGREEMENT ("Agreement") is made as of September 16, '2003, by and between theCrry OF POWAY, a general law city ("City"), and COSTCO WHOLESALEC0RPORATI0N, a Washington corporation CDeveloper"). I RE~ITALS The following r~citals are a substantive part of this.Agr~ement: A Developer has. entered into a Purchase .Agreement dated February 14, 2003, to acquire from Applied Micro Circuitry C.orporati()n certain real property consisting of approJSi.!nate.!y 31 49 acres, located at the 'southeast corner of the intersection of Scripps Poway Parkway and Tech Center Drive in the City of Poway, referred to herein as the "Property" B DeVeloper has appiied for and on August 28., 2003, obtained approval. from the City for DevelopmentReview No 03-13 (the "Development Review") tordevelop a portion of the Property with a Costco Warehouse and a portion of the Property with a home improvement store (the "Development"). Various' conditions of ClPproval of the D.evelopment Review require the Developer to construct'certain st~eet and traffic control. improvements foi-the benefit of the Development (the "Public Improvements') C, The City's ,South poway Specific Plan requires for the benefit of'the entire South PQwaySpecifbPlan area the same Public Improverjlents required aston'ditions of approval of the Development Review 03-13 to Scripps Poway Parkway and Tech Center Drive in the vicinity of, but offsite from, the Property. The Public Improvements . . .,' are referenced. in the South. PowaySpecific Plan and described in detail in Exhibit "A-1" attacl1~5ther~J.o. An engir]eer'sestimate of the.cost<ofsuch Public Improvements in the sum of $560,922.00 is attached hereto as Exhibi!,"A-2." D The City and the DevelClper have executed? Development Agree[T1ent for the development of the Property, dated 'as of September' 16, 2003 (the "Gevelopment Agreement"), pursuant to Government Code Section 658.65 ei. seq. By the tennsof the Development Agreement the parties have. agreed pursuant to Government Code S 958.69.2,,'~hat the peveloper-sh'all construct and finance the Public Improvements, and the City shall reimburse the Developer the cost of those Public Improvements. E. The City and the Dei/eloper agree that the Public Improvements and certain other on-site improlielller;Jts which are the Developer's responsibility must be .. . coordinated, and all must be completed before the DevelQper takes occupancy of the 1 .- . . 10119 Costco store :portion of the Development and op~i1sfor husiness. The Developer desires to proceed promptly with construction of the Development. The City is not prepared to cOl'1struclthe I;'LJblic Illlprovements asa public work at this time. The Developer:aesire.s ~ti:l ce6h~tN9t .the Public Improvements as a condition of approval of the Developmeht ReView in 'accordance with the Development Agreement, and be reimbursed therefore on specified ferms and conditions, F The City has determined that public safety would best be served if the Developer and its contractor(s) constructed the Public Improvements, subject to reimbursement of the cost thereof by the City pursuant hereto. The Public Improvements which City desir,Elli peveloper to construclare the Public Improvements sometimes ..hereafter called tbe-"ReifDbursablelmprovements." G. The peyeloPt3[ cl~stres this Agreement govern its construction of the Public Improvernents'aha the City's reimbursement to the Developer of the cosUhereof pursuahtlo this Agreement. NOW, THEREFORE,:.the eityandthe Developer agree asfollow.s: . 1. Construction, of Public Improvements. The Developer shall c.allse tile Public Improvements to be constructed in their en(ir.ety within. 18.0 days after the comme[1cementof construction ,thereof, .subjec;l lQ delays beyond the, reasonable control of the Developer Tb.i:l Developer fully assumes all obligations, requirements and c6nditiciilS,undefthe I?~veiopment Agreement with respect to the completion of the Pilblic Improvements, and the Developer agrees:to construct:the Public 11T1P~oveJ'nents in accordance with the "Approved Plans" (as defined in-iSection 5'below). 2. Reimbursement. Subject to the terms.of this Agreement, the City sba)1 reimburse the' Developer the actual direct and indirec;t c.c~~t_sattril5utable to the -Pilblic Improvements, including theact!Jal. costs of design, plan check, and inspection, constructiol] ?ndoltwrout-6f"Jigcket costs for the design and construction of the Pl:lblic .Improv_elTlef.lts. LJPOI;J colllpletion .of the Public Improvements, the Developer shall submit the final accol.ihtfng required by'Section 15..hereof for the review and apprQyal of the City The amount of the actual costs approved. by ttle,'Cityshall be the,ApproVed Reimbursable Amount. Upon approvaJ of the TIDal a,ccQunting and issuance of a certificateofoccupancY'f6r theC6stco . store , the City shail, within thirty (30) days pay to the Deveioper an -'amount" equai to the lesser of. the Approved Reimbursement Amount or Four.Hundred EightyThousand Dollars ($48.0,000). Upon issu_anceofthe,ceitificate of occupancyJorthe home. improvement~tore portion of th~Developlllent; the balance of the ApprciveQ,ReimbU"rsei1Je~t Ambunt,if any,/shali be p~id to Developer within thirty (30) days; prqvlded h<?,Never, the totai reimbursemeritpaid by the Cityto thelDeveloper for"lhe cost of the, Public Improvements shell I not,. in' any event, exceed Eight Hundred Thol:lsand .Dbllars($8.dO,OOO) (the "Maximum.~eimbursableAmount"). 3. Costof0ther fmprovements. Except for the reimbursement provided for in Section 2 above~, Developer shall bear all costs'of any and all improvements required of the Development under 'the Development Review. Notwithstanding any other provision of :ttlis .Agreement to the contrary, the City shall contribute, and the 2 71825'i)0136-1368517.2 . . 10120 Developer insists that the City contribute, DO more money, or the equivalent of money, to the public improvements' or to the overall project (the Development) than is required to perform the public improvement work, and shall, without demand, be entitled to repayment from Developer of any overpayment therefore. 4. Engineering and Construction Management CosJs. Subject to reimbursement by the City pyrsuant hereto, Developer shall engage and pay for a licensed third party civil engineer to prepare the construction drawings and detailed plans and specifications for the Public Improvements as required by the City 5; Approval of Plans. The Developer shali submitto the City for-its review and approval all plans, specifications, and drawings required by the City for construction of the Public Improvements, which, once approved, .shall constitute the '!Approved Plans." 6. Bidding and Award. The Developer may enter into a so-called "negotiated bid" with an ihdepenaent third party general contractor; provided that any such negotiated charg~s which are .not based on_ subcontracts shall not exceed customaf;y amounts in the, building industry and provided the general contractor shall solicit not fewer than three bids for each subcontracted portion of the Public Improvements exceeding ten percent (10%) of the total cost ("Major Subcontracts"), and shall selectthe 10westTesponsible bidder for each such Major Subcontract portion ofthe Public Improvements. Such general contactor is hereiha.fter referred to as the "Contractor" Upon the ~~quest of the City, the Developer shall submit to the City copies of all bid solicitations, bids, 'andconstruction contracts within ten (10) days of the City's request. 7. Stop. Notices. The Dev?loper shall include in each construction contract a provision authorizing the withholding of payments otherwise due to such Confractors for work on the Public Improve,ments in the event that stop notices are filed with the City. In the event that a stop_notice, which is valid on its fac~,. is timely filed with the City, the City will prompJly notify the Developer. In the event that any apparently valid stop notices are on file with the City when the Developer renders its final account to,the City in accordance with,SectiOl'115 herein, the City shall withhold from the amount 01iVed to the Developer under this Agreement a sum equal to 125% of the amount claimed in each stop notice until the Developer provides the City proof of payment and unconditiijnal release,; conditional release and payment" expiration by operation of law, Or disposition pursuant to cOllI! order of such stop notice. 8. Bonds. The Developer shailobtain and maintain, or require each Contractor or subcontractor to obtain and maintain, faithful performance and labor and material bonds in'a forlll approved by the City, each with an admitted corporate surety business. within the State of California and a Best's rating of at least AN or better, in amounts equal to 100% of the estimated cost to construct the Contractor's or subcontrClctor's portion of the Public Improvements for the faithful performance bond and 100% of the estimated cost to construct the Contractor's or subcontractor's portion of the Public Improvements for the labor and material bond. In the absence of 3 71825-00136.1368517.2 . . 10121 unresolved claims, the f.~itbful performance bond, shall be released l1inel9 (90) days after .the Deyel6peror Contractor records a notice ,of completion, and tbe: labor and mCjteriC!1 p0T19 ,S.hall 'be, released ninety (90) days after tbe Deyeloper or Contractor records. a notice of completion pursuant to Civil Code'Section 3093. 9. Insurance. The Developer shall no! permit designer(s), engineer(s), or C6ritractor(s) to commence work until each hasobtl:iined the.insurance required herein issued by companies.with aBest's rating of AN or better and such insurance has been approved by the City as to. form and amount. The Developer shall requir~ each designer, engineer, and Contractor to obtain and maintain, during the tElr;,.m .of this Agreement, Workers' Compensation Insurance; and, if a[1Y work is sybcontracted, the Developer shall requite alJsubcontractors to pJ;oyide Workers'Compensation Insurance. The Wbr!<ers'Compensation .Insurance sha!lprovide that the 'insurance may not be cancelled until thirty (30) days:after written notice of, such cancellation is provided to City The Developer shall obt?in and maintain, or require.each designer, engineer, and Contractor to obtain and Illaintairi, during the life of this Agreement the following insurance coverage: GommerCiC!1 C3,eliera( Liability and Automobile Liability with limits not less than one million dollars ($1.,000,000) combined single limit, and per occurrence for each design and engineering firm and three million dollars ($3,000;000) for each Contractor Errors andoniissionscoverage with limits not less than one million dollars ($1,000,000) for each design and engineering firm. An endorsement ,shall be obtained for the Commercial General Liability policies providing the above insurance naming the City, its officers, agents and employees as additionalinsmed's and providihgl for thirty (30) days advance notice of cancellatioh, The Developer sl1a~ provide,to the City proof satisfactory to the City showibg the above insurance coverage prior 'to permitting ~uch desigl1er; engineer, or Contractor to begin work .under this Agreement. Any certificate of insurance must be in a form and contentapproved by the Gity. 10, :Hold Harmless,. The Developer agrees to protect, defend, :indemnify and hold -harmle~s the City and its elective and appointive boards, officers, agents .arid empl6yee~trom any and all claims, liabilities,. expenses or damages of ~nynature, includingatlorneyfees, forinjiJry to or de?tti'ot' ftny person, and for injury to any property, including consequential dam?ges of' any n'ature resuiting there from, arising out of'or in any'way connecte9 foith~ design.. engineering, or construction of the Public Improvements, by or on tiehalfof DeVeloper, .inCluding damages resulting, or allegediy resulting from violC!l.ion ofaQyStatute, regUlatfonorotherlegal requirement concernil1g'a safe platelfo.r employmentofworkers, except to the extent of damages resulti.!m from the sols 'negligence of the City Nothing contained in this Section, however, shall be 4 71825'DOI36.136851'i"i' . . 10122 deemed to! be a warranty against construction def.ects, the only such warranty being c.ohtair]ed in Section 1"1 below The Developer shall comply with and shall req1J.ire designers, engineers, and Contractors' to comply with all. of the provisions of the Workers' Compensation Insurance and Safety in Employment Laws of the State of Califomia, including the applicable provisions of Divisions 4 and 5 of the, California Labor Code anqall similar state, federal orjlocal laws, i3pplicable, and shall indemnity and hold harmless City from and against all claims, liabilities., expenses, damages, suits, actions, proceedings and judgments of every nature and description', including reasonable attorney's fees, presented; brought or recovered against the City or its 'officers , employees, and agents, for or on account of any liability under any of said laws which may be incurred by reason of any work performed wider this Agreement by the Developer or on behalf of the Developer The Developer agrees to protect, defend, indemnity, and hold harmless th,e City and its officers, agents, and employees from any and all claims, liabilities, expenses or damages resulting or allegedly resulting from any legCiI action or other assertion by the Developer or any third party challenging the validity or legal ade.quacy of this Agreement or any provision hereof The City does not, and shall not, waive'any rights against the Developer which it may have by reason of the aforesaid hold harmless agreements because of the acceptance by the City or the geposit with the City by the Developer of any insurance policies orcertificates'ofinsurance purporting to indeninityforthe aforesaid losses. The aforesaid hold harmless agreements shall apply to all liabilities, claims, expenses, and damages of every kind including but not limited to attorney 'fees, suffered or alleged to have been suffered, by ~eason ofthe aforesaid contractual agreements qr op,erations of the Developer or any contractor or others performing on behalf of the Developer, regardless of whether or not such insurance policies are applicable. 11. Contract(s) Warranty. The Developer shall. include in its agreement with Contractor(s) the following provision: Contractor(s) warrants to Developer and to the Qjty <:>f Poway that all materials used in the work and all labor perfonned shall be in conformity with the plans and specifications. Contractor(s) shall, at their own expense, make any and all repairs and replacements that shall become necessary as. the result of any .failure of the work to conforr]l to the aforementioned plans, specifications; provided, however, that Contractor shall be obligated under this provision only to the extent of those failures or defects of which it is given notice within a period of twelve (12) months from the date that the Notice.. of Completion is recorded -- 12. Administration of Contract and Schedule of Performance. The Developer shall administer and supervise the performance of the Contract(s). The Developer shall use reasonable ,efforts to complete the Public Improvements as provided in Section 1 Any material changes in the scope of the work to be performed by Contractor(s) or other change orders under the Construction Contract relating to the 5 71825-00136-1368517.2 . . 101"23 PUblic Impr6~ertJE,!nt~ sliall be reviewed and ~PRroveg by City in writing prior to . -. , . - , ContrCjctor's c.brpnjengement of such work. ,13. Compli~nce:L"bcirCode. With res.pect'totheworkqomprisingthe fubjic Improvements, .th~ Develof:>~r shall De responsible for Contractors' compliance 'with the prevailing wage requirements pursuant to Labor Code Section 1720; et seq., the keeping .of all records' required pursuant to Labor Code Seclion1776 and the maximum hours requirements of Labor Code Sections 18.10 through 18.15 Developer shall certify to the Qityat the time that it i>ubmitsithe final accounting ar:1d requesUoNeilllbursement that it IS in cofnpliapce,witti1h:e,(equirements ofthis'Seetion 13. Prevailing wClges shall be paid for all w()rl<. performed 9h the Public Improvements. The parties acknowledge and agree that Public Improvements are a requiremenlofthe;regulatory approval of the Developer's project, that .no more money or the equivalentofmoney has been (or shall be) ,contributed to Developer's Project than is required to perform ~he Public Improvements, and that the City has no proprietary in~erest in the Development. Accordingly, pursu?ritlo LCl~6r!C6de 9 1720(c)(2) only'the Public Improvements work is required to be subjecfto.such prevailing wage requirements. 14. Ihspection. Construction inspection of the. Public. Improvements shall be performed by City inspectors. The City's usual. plan check and inspection fees as applicable for the Public Improvements shall be payableby'the Developer and shall be reimbursable in accordance with the procedures set forth in Section 2 of this Agreement. 15. Final Accoulltin9., Following completisin of .construc:;tion of the Public Improvements and foilowingfull payment of all third party invoices for materials.. supplies and contractors for the completion of the Public Improvements, the Developer shall submit to the City a final accounting to determine the amount of reimbursement due the Developer. The Developer shall submit at the same time to the City all supporting inforination reasohablynecessary todpcumentfthe,l::>eveloper's costs for the Public Illlprovemeiits, ihcludingspecific details on the costs 'and workattribLitable to the Public Improvements, in~c1LJdi'ngll)voic:;es, third-partyinvbices,hillings, and re.ceiptsfor construction surveying, soil te"sting, blueprinting, actual cor'istructiohcostsand similar expenses. The City acknowledges that Developer'does not receive and retain copies of caDcell~.cl chec..ks and that copies of cancelled chec:;ksshall not be required.- The City shall review, modify if necessary to conform to the eligible costs l)e,reuQ,der and: tl)e documentation thereof, 'andapprove the reilllburserhent due to the Developer (the "Approved Reimbursement Amount"). In the event of any proposed modification, the qtY'~han first c:;onfer and seek to agree with the Developer upon the Approved Reimbursement AmOl.lpt. ~u~jec! to tl)~ lilllitation 9f the Maximulll Reimoursable Amount, ,reimbursementstiall" be made to the Dei/eloper based upon the Approved Reimbursemeht,Amount. 16. Default. Failure or delay by either partyheretq to perform any term or provision ofthis Agreement shall, constitute a default under this Agreement. The party who so fails or delays' must, upon' written notice to do :so, immediately commence to cure, correct; or remedy such failure or delay, and shall complete such. cure, correction 6 71825.00136'1368517.2 . . 10124 or remedy with diligence. In the event of a default,. the ihjure'd partY shall give written notice of default ,to the party in default, specifying the. default complained of by the injured party Except as required to protect against further damages, th!'l injured party may not institute proceedings against the party- in default until thirty (30) days after giving such notice, provided however, that no proceedings shall be instituted if'the defaulting party shall commence and proceed to cure such default in a diligent manner and the nature of the default is such that it cannot l?e cured within thirty (30) days. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. In addition, no litigation shall be commenced by one party against the other without first seeking formal mediation of the dispute through the auspices of the Superior Court of the County of San Diego. 17,. Notices. Any notice, request, demand, consent, approval or other communication required to be given shall be addressed as follows: To City: City of Po way 13325 Civic Center Drive Poway, California 92064 Attention: Niall Fritz, DireCtor of Development Services To Developer: Costco Wholesale Corporation 999 Lake Drive Issaquah,WA 98.027-5367 Attention. V Anthony Unan With a copy to: Henry D Finkelstein Greenberg, Glusker, Fields, Claman, Machtinger & Kinsella, LLP 1900 Avenue of the Stars 21st Floor Los Angeles, CA 90067 18. Non-Discrimination. In the performance of this Agreement, Developer shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, sex, or age. 19. . Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of San Diego, State of Califernia. 20. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provisions of this Agreement shall be made except by a written agreement executed by the Developer and the City 21. Independent Contractor. The Developer shall act as an independent contractor under this Agreement, and not as an agent, partner or employee of the City '. 7 71825-00136-1368517,2 . . 1-0,125 . .22. Developer Assignment. In no event shall the Developer as~ign or transfer any portion of this Agreelllent without the prior, express written (:onsent of. City, which consent may DE:l ,givElIl 6rwithheld in City's sole' ,~iscr~li.o[; provided, however, Developer shall be permitted to. .absolutely or collateI?1ly 1fssignits right to receive payments t\er.eu~der to any person or entity who acquJres allor any partof.the Property or who h'1?kes'a loan secured by;all or any part of the Property. . 23. Entire Agreement. This Agreemen~ toge.Jher with all attachments hereto and, the Qevelopment Agreement arid all attachments thereto constitute, the entire u'nderstanding and agreement of the parties with respect to the subject matter of this transaction. 11:1is Agreement .integrates all of the terms' :and conditions mentioned herein or .incidental thereto, and supersedes all prior negotiations, discussions and previous agre~ments between the. City'and the Develop.er cOllcerning all or .any part of the subject Illatter'of this. Agreement. This Agreem~nrsha" not supersede all or any - . . - . portion of the Development Agreement, but shall be. construed ;as implementing the parties' responsibilities to finance and construct the Public Improvements. 24. Attorneys' Fees and Costs. In the event that any action is instituted under this Agreement,. the P?rties Ii,ereto agree that the prevailing party shall be e[ltitted to recover its reasonable attorneys fees and costsincurred"ir]. enforcing this Agreement. IN WITNESS WHEREOF, .the parties hereto have executed this Construction and Reimbursement Agreementas of the date set forth above. CITY: City of Po way By' N i .. s L. 'Bowersox, City Manager DEVELOPER: Costco, Wholesale Corporation By::, fP' Ie ARDJ. OWl Vice PresrdentlAssisfantSecreta,ry 8 7l~25'()0136.1J685l7.2 II . . 10126 Table of Contents Page 1 Construction of Public Improvements ... .... ... ..... ...2 2. Reimbursement ......... ........... ............ .... ...... ... .2 3 Cosl'of Other Improvements....... ... ....... ...... .... ..:2 4 Engineering and Construction Management Costs... ....... .. .....3 5 Approval of Plans.. ... ... .... .... .., 3 6. Bidding and Award.. ....... ...... ... ..... ... .... 3 7 Stop Notices ... ....... ... ............ ....... ....... ...... .....3 8. Bonds .... .... ... ......... ... .. ... .. .......3 9 Insurance...... ..... .......... ....... ......... .... ............... 4 10 Hold Harmless ........ .......... ....... o. ., ... ... ...... 4 11. Contracf(s) Warranty ....... ........... ......; ..... ... .. ..... .....5 12. Administration of Contract and Schedule of Performance ..........5 13. Compliance Labor Code ........ ..... ... ......... .... ... 6 14 Inspection ...c... ... ... .. .... .... .....6 15 Final Accounting .. ..... ...... .... ....... ..... ....6 16. Default ..... ........ .... .. .... .... ... .. .......... .... ........6. 17 Notices..... .. o. ..... ...... ... ..... ....... ..7 18. Non-Discrimination ... .......... ., ............. .... ........ ............ 7 19 Governing Law .... .. ... . .... ., ..... .... 7 20 Amelldment of Agreement ......... ........ ....... 7 21 Indeperi.dent Contractor ........ ..... 0.. ,. .... 7 22. Developer Assignment.. ... ... ..... ......... ....8. 23. Entire'Agreement.. .... . ... ... . .... ...... 8. 24 Attorneys' Fees and Costs.... .... .. ... .... 8. i 71825-00136-1368517,2 . . 10127 EXHIBIT A-1 and A-2 , PUBLIC IMPROVEMENTS and COSTS 71825-00136-1368517.2 . . 10128 POWAY PROJECT SITE PRELlMIN)l;RY OPINION OF COST OFFSITE IMPROVEMENTS Tech Center Scripps Pkwy Total Improvements Quantity Quantity Quantity Unit Mobilization 0,5 0:25 0.75 LS Traffic Control 0.45, 0.45 0,9 LS Roadwav'.Excavation 585 0 585 CY Sawcut Existing Pavement 1680 0 1680 LF Demo. Existing Curb and Gutter 880 0 880 LF Demo Existing'AC Pavement 2400 0 2400 SF Demo Existing'Sidewalk 0 0 0 SY Relocate,Fire Hvdrant 1 0 1 Ea Demo Storm.lnletwl Pipe 1 0 1 Ea Relocate"Water Meter 2 0 2 Ea Relocate;Misc. Risers 2 0 2 Ea RelocateExisting Street Light 2 0 2 Ea Tvoe G Curb and Gutter 880 0 880 LF Median Construction 400 O. 400 LF AC Pavement 325 0 325 Ton PCC Cross Gutter at Entrance 133 0 133 SY Aggregate Base 700 0 700 Ton Preparation of Subgrade 15800 0 15800 SF Pedestrian Ramo 6 1 7 Ea Concrete Sidewalk 793 720 1513 SY Irrigation Service 1 0 1 Ea Streetlight incl conduit and,service 2 3 5 'Ea New Signal w Poles /l; APPurtenances 1 0 1 LS Signal Modification 0 1 1 LS Sionallnterconnect 0,5 0,5 1 LS Signing and Strioing 0,5 0:25 0,75 LS Erosion Control 0,5 0.25 0.75 LS Landscaping (Repair) 0,5 0.25 0.75 LS Subtotal: I 20% ,Contingency: Soft Costs'for Design of Off-Sites . i Civil Engineerino i Traffic Engineering - striping and signals I Subtotal: , i Grand Total; I '. ~ . 1,0.1,2:9 Prepared' By M.'wolfe, PE . Fuscoe:Englneerlng,San Diego UPDATED 8/20/2003 Tech Center Scripps Pkwy Total Unit Cost Amount , Amount Amount $55,200'00. $27,600.00 .$,13;800,00 $41,400 $22,500100 $10;125,00 .$10;,125,00 $20,250 $12.00 . $7;020.00 $0,00 $7,020 $2.00 $3,360.00 $0:00 $3,360 $3,50 $3,080.00 $0.00 $3,080 $1,00 $2,400,00 ,$0:00 $2,400 $2,50 $0:00 $0,00 $0 $4,500,00 $4,500,00 $0.00 $4,500 $2,000:00 . $2,000,00' $0,00 $2;000 1$)',000.00 $2,000,00 $0:00 $2,000 .$1,000,00 . .' $2,000.00 $0,00 $2,000 '$2:000 :00 $4,000:00 $0.00 $4,000 $12.00 $10,560,00 $0,00 $10;560 $28.00 $11,200,00 $0.00 $11,200 $48.00 $15,600.00 $0.00 $15,600 $35,00 $4,655:00 $0:00 $4,655 $15,00 . $10,500:00 $0.00 $10,500 '$OAO $6,320:00. '$0:00 $6,320 $600.00 $3,600,00 $600,00 $4,200 $21:00 $16;653:00 $15,120.00 $31,773, $1,200:00 $1,200:00 $0,00 $1,200 $4,200.00 $8,400'00 ' . $12,600,00 $21,000 $160,000,00 $160;000:00 $0:00 $160,000 $30,000:00 $0,00 $30,000.00 $30,000' $10;000:00 $5,000:00 $5,000,00 $10,000 $10,000,00 $5,000:00. $2,500,00, $7 ;500 $4,000:00 $2;000:00 $1,000,00 $3,000 $5,000,00 $2,500,00 $1,250:00 $3,750 i I $331,273 $91,995 $423;268 . I I i I $84,654 ! ! . , I $30;000:00 I I $23;000cOO I $53;000:00 $53,000 I I I , $S6(),922 . . 10130 CONSTRUCTION AND REIMBURSEMEN:r AGREEMENJ between CITY OF POWAY and COSTCO WHOLESALE CORPORATION September 16, 2003 i 71825'{)OI36-1368517,2 . . 1013;1 Table of Contents Page 1.. Construcfion of Public ImprovementS .... ........ ,. .2 2. Reimbursement .. .... .......... ............. .... .. .2 3 Cost of Other Improvements... ... ....... .... .... .2 4 Engineering'and Construction Management Costs.. 3 5. Approval of Plans... ..... .... ..... .... 3 6 Bidding and Award. .. ., ... .... 3 7. Stop Notices ....... . .... ..... .... ., ..... 3 8.. Bonds .............. .. ..... .... .... ..3 9 Insurance ...... ..... .. .... .... ..... 4 10 Hold Harmless .... ..... ............. ... .. .... ............ 4 H. Contr,act(s)Warranty, ..... .... 5 12. Administration of COlltract and Schedul~ ofPerfbrmance .... 5 --, -, 13 Compliance Labor Code .... ,. .... 6 14. Inspection ., ...... .... 6 15, Final Accounting .. ....... .. 6 16. Default, .. .. .. ... .... .... ...6 17 Notices.. -.... ....... ... 7 - 18. Non-Discrimijiati6n .. 7 19. Governing Law .... .. .. .... .. 7 20 Amendment of Agreement. " .... ..... 7 21 Independent Contractor 7 22. Deyeloper Assignment. .... .... ......... 8. 23 Entire.AgreElmer:lt .. 8. 24 Attorneys' Fees and Costs.. .... 8. i 71825-00136-1368517.1 . . 10132 . CONSTRUCTION AND REIMBURSEMENT AGREEMENT THIS CONSTRUCTION AND REIMBURSEMENT' AGREEMENT ("Agreement") is made as of September 16, 2003, by and between the CITY OF POWAY,a general law city ("City"), and COSTCO WHOLESALE CORPORATION, a Washington corporation ("Developer') RECITALS TheJollowing recitals are a substantive part of this Agreement: A. Developer has entered into a Purchase Agreement dated February 14, 2003, to acquire from Applied Micro Circuitry Corporation certain real property consisting of approximately 31 49 acres, located at the southeast corner of the intersection of Scripps Pbway Parkway and Tech Center Drive in the City of Poway, referred to herein as the "Property" B. Developer has applied for and on August 28., 2003, obtained approval from the City for Development Review NO.03-13 (the "Development Review") to develop a portion of the Property with a Costco Warehouse and a portion of the Prqperty with a home improvement store (thei'Development"). Various conditions of approval of ,the Development Review require the Developer to construct certain street and traffic control improvements for the benefit of the Development (the "Public.lmprovements"). C The City's South Poway Specific Plan requires for the benefit of the entire South Poway Specific Plan area the same Public Improyements required as conditions of approval of the Development Review 03-13 to Scripps Poway Parkway and Tech Center Drive in the vicinity of, butoffsite from, the Property The Public Improvements are referenced in the South Poway Specific Plan and described in detail in Exhibit "A-1" attached hereto An engineer's estimate of the cost of such Public Improvements in the sum of $560,922.00 is attached hereto as Exhibit "A-2." D The City and the Developer have executed a Development Agreement for the de\ielORment of the Property, dated as of Septelllber 16, 2003 (the "Development Agreement"), pursuant to Government Code Section 658.65 et. seq. By the tenns ofthe Development Agreement the parties have agreed pursuant to Government Code S 658.65:2 that the Developer,shall construct and finance the Public Improvements, and the City shall reimburse the Developer the cost of those Public Improvements. E. The City and the Developer agree that the Public Improvements and certain other on-site improvements which are the Developer's responsibility must be coordinated, and all must be completed before the Developer takes occupancy of the I . I . 101 33, Costco, store portion of the Develppinent and ()p'~nsfcjf. business~ The Develql?er desires to proceed' promptly with construction of the Development. The City. is not prepared to construct, the Public Improvements ~s'a public work at this time. The ii>eveloper--desires tp con~truct the Public Improvements as a condition of appr.oval of the De'velopment' Review in accordance with the Development Agreement, and be reimbursed therefore on specified terms and conditions. F The City has determined that public safety would best be served if the Developer and its contractor(s) constructed the Public Improvements, subject to . , reimbursement of the cost thereof by the City pUrSl1Cint hereto. The Public Improvements'which City dE:l~irE~s Developer to construCt are the Public Improvements sometimes hereafter 'Called th~ "Reimbursable Improvements." G.. The Dev'elbf:ier c!l:lsires this Agreement govern its construction of the , Public Illll?rovementsand the City's reimbursement to the -Developer of the cost thereof pursuant to this Agreement. NOW, THEREFORE, the City and the Developeragreeias follows: 1. Construction of Public Improvements. The Developer shall caus!:) the Public Improvements to be constructed in their entirety witbin 18.0 days after the , commencement of construction thereof, subject to delays' beyond the reasonable control of the Develop!:)r The .Developer fully assullles all obligations,req'uirements and c6ngitions under'the Development Agreement with .respecl,to the completion of the Public Improvements, and 'the' Developer agrees to construct the I?ubliclmprovements in accordance with the "Approved Plans" (as defined in Section 5,oelow). 2. Reimbursement. Subject to the terms of this Agreemen!, the City. s.hall reimburse the Developer the actual direct and indirect costs attributable to the Public Improvements, including tb~ actual costs of desigll, plan check, and inspection, construction and other out~of,pocket costs for the design and construction .of'the Public . ' . - Improvements. Upon completion of the Public Improvements, the Developer shall submit the final accounting required by Section 15 hereoffor the Teview and approval of the City The amount of the actual costs approved by the ,City shall be the Approved Reimbursable Amount Ugon approval of the final 'a(;coUriting and issuance of a certificate, of occupancy for the Costco'store, the City shall, Within thirty (30) days pay to the Developer an amount equal to the lesser of the Approved Reimbursemeni,Amount or Four Hundred.~Eighty Thousand Dollars ($48.0;000)c l:)Ron ,issuance of the certificate of occupancy for the home irriprovenient store portion <Wthe Development, the balance of the APproved R!:)imbursement Amount; if any, s'fiall be paid to Developer within 'thirty r ,a'l-"<.,, ..' (30) days; provided however, the total reimbursement paid by the City to the Developer for the cost' of the Public Improvements shall not, in any event, exceed Eight Hundred Thousand Dollars ($8'00,000) (the "Maximum Reimbursable Amount"). 3. Cost ,of Other Improvements. Except for the reimbursement' provided for in Section 2 above, Developer shilll bear all costs of .any and all ,improvem!:)nts required of the Development unger the Development Revie~ Notwithstanding any other provision of this Agreement to tbe contrary, the City shall 'contribute, anCl the 2 71825.00136.1368517.2 , . . f 10134 Developer .insists ,thal'the City contribute, no more,'money:orthe equi~alen! of money, to the public improvements or. to the overall project (th~.De",elopfi1eDt) than is required to perform the public. improvement work, and sh?I!,wjt~oQt gemand, be entitled to repaymehtfrom Developefof (inyoverpayment therefore. 4. Engineering and Construction ~.:magemer't Costs. :Subject to feilllbursement by the City P,ur~uant hereto, Developer' shalj engage and-pay for a. 'Iic:;ensed third party Civil' engirieer to prepare the construction drawings and detailed plans a'nd specifications forthe Public Improvements.as required by the City , 5. ApproVal of Plans. The Developer shall submitto the City for its review and approval all plans, specifications, and drawings required by the City for construction of the Public Improvements, which, once approved, shall constitute the "Approved Plans." 6. Biddingal'!d Aw,!rd, The DeveloP13r r'Jlay. enter into a so-called "negotiated bid" with ariiDgependent third party general contractor; provided that any such negotiated charges which are not .based on subcontracts shall not exceed customary amounts in the building industry and provided. the, general contractor shall solicit not fewer than three, bids for each subcontracted. portion of the, Public Improvements exceeding ten',percent (10%) of the total cost ("M.ajor Subcontra<ets"),and shall select the lowest respQnsible bidder for each sucn Majo'i' SUbcbntracfp6rtion of the Public Improvements. i~Uc;h general contactor is hereinafter referred to as the "Contractor" Upon the request6fihe City, the Developer shall submit to the City'copies of all bid solicitations, bids, and construction contracts withih ten (10) days of .the City's request. 7. Stop Notices. The Developer shall include in each construction contract a provision authorizing the withholding of payment?: otherwise due to such, CbritraCtors for work on the Public Impr'ovem~nts in the evenfthcitstop notices are filed with the City In the event th1;lt Cl stqp notice, which is valid on its face, is timely filed with the City, the City will prolllptlynotify the Developer In the-event that any apparently valid stop notices are on file ,with the City when the Developenenders its final account to the City.in accordance with Section 15 herein, the City shall withl1pl,d from the amount owed to,the [)eveloper under this,A;9reement a sum equal to 125% of the amount claimed in each stop notice until the Developer provides the City proof of payment and unconditional release, conditional release and payment, expiration by operation of law, or disposition pursuant to court order of suchistopnotice. .8; Bonds; The Developer shall obtain and maintain, or requir,e each Contra,c!Qr orsubcontrac:;.lor to obtain and riii'lil)taih,fa,itliful performance and I~bor and materi~1 bon~ds i~a form approved by the City, each with an adlllitted corporate. surety business. within: the State of Californiaano a Best's rating of at leas!' AN or better, in amounts eql;Jal to 100% of the estimated cost' to construct the Contractor's or subcontractor's portion of the Public I~provements for the faithful performance bond and 100% ,of the estimated cost t(). construct the Contractor's or subcontractor's' portion of the Public Illlprovements for the labor and material bona. In the absence of . 3 71825,00136"1368517.2 . . . 1001135 unresolved clilims,thefclithful performance bond'shall be Ireleased' ninety (90) days after tt:l~\bev"elqperor Cbhit~ctor records a notice ofcolllpletion, and the labor and materiaJ'bond shall :bereleased ninety (90) days after 'the' Developer or Contractor records a notice of completion pursuant to Civil Code SeCtion 3093. 9. In$urance. The, Developer shall not permit designer(s), engineer(s)" or Contractor(s) to commence work until each has 'obtained the ,insurance required herein issued by companies with, a Elest's rating of AN or better and such insurance has been approved by the City as. to form and amount. The Developer shall. require each designElr, ehgineer, and Contr~ct9[ to ,obtain and mai"tain, during the term of this Agreement" Workers' Compensation Insurance; and, if any work is ,sulitontracted, the Developer shall. :require all subcontractors to , . provide Workers' Compensation, Insurance~ The Workers' 'Compensation Insurance shall provide that the insurance may not be cancelled until thirty.(30) days after written notice. of such cancellation is provided toCity The Developer shall obtain and maintain, orJequireeach designer, engineer, and Contractor to obtain and maintain, during the life of this Agreement the following insurance coverage: Commercial G~ner,1:!1 ~ii:lbilityand Automobile Liabili!y with limits not less than one million dollars ($1,060,000) combined single limit land ,per occurrence for each design and engineering firm and three million dollars ($3,000,000) for each Contractor. Errors and Omissions' coverage with limits not less than one million dollars ($1,000,000) for each design and engineering firm. An endorsement shall be obtained for the Commerci.al. GeReral .Liability policies providing the above insurance naming the City, its officers, agents and employees. as additional insured's and prQviaing for thirty (30) days a,dvance notice of cancellation. The Developer shall provide to the City proof satisfCjctory to the City showing the above insurance ci?verageprior to permitting such designer, engineer, or Contractor to begin work under'this Agreement. Any certificate of inSurance Illust be in a form and content approved. by the City. 1,0. Hold Harmless. The Developer agrees to protect,defend, indemnity and hold.. ha.r:.mle;:>s thEl City and its elective ?nd a~poif1tiVe boards, officers,agellts and employees .from any and "III claims, liabilities, ,expenses or damages of any nature, including attorney' fees, for' 'injury to or death of any person, and for injury to any property; including consequential damages of any nature resulting there from,arising out of of'in any wa,y' conneCted to the design, engineering, or construction onhe Publ\c Improvel11~nts by or on behalf of D~veloper, including damage!:! resulting, or allegedly r~sulting frqrn'viola!ion of anystatute".regulation'or other legi'l.1 re9uirement concerning a safe place fo~ ~mploYlllent qfwork~r!>, except to the extli:lnf.of damages resulting from the sole negligehce of the City Nothing contained in this Section" however, sh,all be 4 71825~OI 36,136851702 . . ", 1 Ol 36 deemed to be a warranty against construction defects, the only such warranty being contained in Section 11 below The DE1velop,er shall cOlT]ply with and shall require designers, engineers, and Contractors ,to comply iNjth all of the proVisions of the Workers' Compensation Insurance and Safety in EmploYf"!1ent Laws 9f the St~te. qf California, including the applicable provisions of DivisionS 4 and 5 of the Cali.forr:1ia LilborCode and all similar state, federal or local laws applicable; and shall indelllnifyiand hold harmless City from and against all claims, liabilities, expenses, damages, suits, actions, proceedings land judgments of every nature and description, includ'ing reasonable attorney's fees, presented, brought or ~ecoveredagainst the City.orits officers, employees, and agents, fororon account of any liablljtY"uncjer any of said laws whic,h may be incurred"by reason of any work performed under this Agreelllent by the Deiveloper or ori behalf of the Developer The Developer agrees to protect, defend, indemnify, and hold hannless the City and its officers, agents, and employees from any and all claims, liabilities, experises or damages resulting or allegedlyresulting from any legal action or other assertion by the Developer or any third partY, challenging the validity or legal adequacyofthis Agreement or any provision hereof . The City does not, ilpd sh!'lll not, waive any rights against the Developercwhich it may have by reason of the aforesaid hold harrnll;!ssagre.elllents beca'u~e of the acceptance by the City or the deposit with the City by the Developer of any insurance policies or certificates of insurance purporting to indemnify for the aforesaid losses. The aforesaid hold harmless agre~mentsshall apply to all' liabilities, claims, expenses, and I damages of every kihd inc;:lu~f19 but not ,limited to attOrney 'fees, suffered or alleged to have been suffered, by reason of the aforesaid contractualagreemerits or operatiOns of the Developer or any contractor or others performing on behalf of the Developer, regardless of whether or not such insurance policies .are applicable. 11. Contract(s) Warranty. The Developer shallfnclude in its agreement with Contractor(s) the following:provision: Contractor(s) warr<:ints to Developer and to the City of PO\r{ay that all materials used in the work and all l1:lbor performed shall, bl3 in ,conformity with the plans and specifications. Contractor(s) shall, at their ownexpeiise~.. make"any and all repairs and replacements that shall become necessary. as the result of any failure of the work to conform,tb,the,'af2r~mentioned plans, specifications; pro,vided, however, that Contractor shall be 'obligated. under this provision only to theex!entofthose failures or defects of which it is given notice within a period of twelve (12) months from the date that the Notice of Completion is recorded. . 12. Administration of Contract andScheauJe of Performance; The Developer shall administer and supervise the performance of the Corl,trCjct(s). The Developer shall use reasonable, efforts to complete the Public Improvelllents as provided in Sectiojl 1 Any'material ~changes in the scope of the work to be performed by Contract()r(s) or other changeordersunder'the Construction Contract relating to the 5 71825.Q0136.1368517.2 . . 101.37 Public Improvements shall be reviewed and approved .by City in writing prior to Contractor's,commencement of such work. 13. Compliance LliborCode. With re~pectto,thework comprising the Public . Impfovem,ents,the Qeveloper'sh~1I be responsible for. Contractors' compliance with :the prevailing wage requir$rneiits :pursuant to LabOr Code Section 1720, et seq., the. keepingofalT records reQtllre,Cj:PLJfSuant to Labor y6de l3ection 1 F6 and the maximum hours.requirements of Labor Code Sections 18.10 through 18.15. DElveloper'shall certify tothe,eity at thetime.that itsLibmits the final accounting and request forreimburselllent that it is'in compliancewiththe,requirements of this"Section 1,3. Prevailing wages shall be, paid for"all work 'performed on the Public Improvements. The parties acknowledge and agree th?lt Public'lmRroVElments are a requirement oHhe,regulatory approval ofthe Developer:s project,that'no Illore money or the equi\ial~n,Jofmoney has been (or shall be) contributed to Developer's Project than isreq~ife9 to perfonn the Public Improyements, and that the City has no proprietary' interest in the Development. Accordingly, pursuarit to Labor code 9 1720(c)(2) onlyithe'Public rmprovements work is required to be subjectto.such Prevailing wage requirements. 14. Inspec!ion. 'Construction inspection of the :Public Improvements shall be performed by City inspect6~s. The City's usual plan' ,check and' inspection fees ,as applicable for the Public Impi"Q\iElrllents shall ,be payabl~t5y me Developer and shall be reimbursable inaccordClnce With" the procedures set forth in Section 2 of this Agreement. 15. Final Accounting.. Following completion of' construction of the Public Improvements and following full payment of all third party invoices for materials, " siJpplies,and contractors fofth.e completion of the Public Improvements, the Developer shall submit to the City a final a9couriting to determine 'the' amount of reimbursement due the, Developer. The Dei/eloper shall submit a! t~esa!'T1e time to the City all supporting information reasonably'necessary to.doculllent me Developer's costs'for the Public Improvements, including specific details on the costs and work attributable to the Public Improvements,inciuding :inyoices, third-party invoices, billings, and receipts for construction surveying, soil testing,. blueprinting, actual construction costs and similar expenses. The City acknowledge~ithat Developer does nofreceive and retain copies of cancelled checks and that copies of cancelled checks shall riot be required TheCity shall r~vie\'y, mo~jjfy if n!3cessary to conform to the: eligible, costs hereunder and the doculllentation ,ther~of'<:lnd approve the reimbursement due to the Developer (the "Approv,ed Reimbursement Amount"). In the eyeii!of ?"ny PIoposed modification, the City shall first confer and seek to agree with, the Developer upon the Approved Rejmpursement, Amount Subject to the limitation of the Maximum Reimbursable Amount;. reirDbufseiTIentshall be made to the Beveloper based upon the Approved Reimbursement Am6Lint. 16. DefaLJlt FailLir~ 9J delay by eitherparty hereto to perform any term or provision of this.Agreement shajlcQrlstiWte a default under-this: Agreement. The party who so fails or delays must, upon written. notice to d,9~0; i,m[llEldiately commence to cure,correct, ior,remedy such failure or delay, and shallcorrfjJlete such cure, correction 6 71825.00136.1'3685172 . . 1n~1,3:8 or remedy with diligence, In the event of a default, the injured party shall give written notice of ,default to .thepartyin default, specifying the defaulfcomplained of by the injured party, Exc~pt; as.required to protect against .further Qamages;, the injured party may not institute proceedings ,against the party, in: default until thirty (30) days after giving such notice, provided however, that no proceedings shall be instituted' if the defaulting par:ty shall commer1ce,and proceed to cure such default in a diligeI)trnanner and 'the 'natLire of the default is ,such that it cannot 'be, cured within thirty (30) days: , . .~ _. t ~" _ _ '. ' . - . ,- .~.. - -.-< - . . . Failure or delay in giving such notice shall not constitute a \'oJaiver of any default, nor shall it change the time of default. In addition, no litigation shall be commenced by'one partyagaihst the other without first seeking formal mediation of the dispute through the a~spicesof the Superior Court of the County of San Diego. 17. 'Notices. Any notice, request, demand, consent, approval or other communication required to birgiven shall be addressed as follows: To City' City qf Poway 13325'Civic Center Drive Poway; California 92064 Attention: Niall Fritz, Director of Development Services To Developer' Costco Wholesale Corporation 999 Lake Drive Issaquah,WA 98.027-5367 ~ttention: V Anthony Unan With a copy to. Henly D, Finkelstein Greenberg, Glusker, Fields, Claman, ,'--.- . - .' - Machtinger & Kinsella,LLP 1900 Avenue of the Stars 21 st'Floor Los.Angeles, CA 90067 18. Non-Discril]1jn'ation. Ih the performance of this Agreement" Developer shall not discriminate on the grounds of race, religious creed,color, national origin, ancestry" sex, or age, 19, Governing Law. This Agreement shall be'governed by the laws ofthe State of California: Any legal action .brought underthis,Agreementmust be instituted in the,SuperiorCourt'oflhe (;t;lurity of San Diego, State,of'c;alifornia. 20. Amenclment of Agreement. No modification, rescission, waiver, release or amendment of any provisions of this 'Agreement Sfi~lIhe made except, by a written agreement execu'ted by the Developer and the City 21. Independent Contractor; The Developef sl1~il act as ah indepe-ndeht contractor under this Agreement, and not as an agent, partneror'employee of the City 7 71325-001 36.1 3_68~17 2 . . 101 319 22. DeV~loper Assignment. In no event shall the !Developer assign ,or transfer any PQrtionoffhis Agreement without the prior express written consent of. CJty; which consent may be given or withheld in City:s sole discretion; Rfoxided, howeVer, Developer shall. be 'permitted to absolutely or cc:>IIatera.lly aS$ig" its right to receive payments hereunder to any person or eritity who acqLJires all or any part of the Property or who makes aJoan secu~edby all or any part of the Property 23, Entire Agreem'ent. This Agreement together with all attachments hereto and the Development Agr,eel)1ent and all attachments thereto constitute the entire understanding and agreement of the parties with Jespecttothesubject matter of this transaction. This Agreement integrates all of the terms and coriditions mentiofled herein or incidental thereto, and supersedes. all prior negotiations, discusSions and previous agreements.between.the City arid the Developercbncerningall or any part of the subject matter of this Agre~Elri1ent. This Agreement. shall. not supersede all or any portion of the DevEllbpmElnt Agreement, but shall be construed as implementing the parties' responsibilities to finance and construct the Public Improvements. 24. Attorneys' Fees and Costs. In the even! that' any action is iflstituted under this Agreement, the parties. hereto agree that the prevailing party shallqe entitled to recover its reasonable attorneys fees and costs incurred.in enforcing this Agreement. IN WITNESS WHEREOF; the, parties hereto haVe executed this Construction and Reimbursement Agreement as of the date seUorth above. CITY: City of Poway By' s L. BoWersox, City Manager . . DEVELOPER: Costco Wholesale Corporation By fP Ie ARD J. OLIN Vice PresldenVAssislant Secretary 8 71825-001;36'1368517,2 . . I 1014,0 EXHIBiT A-1and A-2 PUBLIC IMPROVEMENtS'arid COSTS 71 825-00 I 36.1368517,2 , . . 10'1'41 POWA Y F!RoJEGT SIl:E PREL:IMINARYOPINION'OF COST OFFSITE IMPROVEMENJS, Tech Center Scripps Pkwy Total Impro1(ements Quantity Qua'ritity Quantity .Unit Mobilization 0,5 0,25 0.75 ~S Traffic..Control _ 0.45 --{j 45 '-o:S- -'I::s Road~ ExcaVation. 585' 0------585--' :"_CY _ SawcutExistirig PilVeme.~t 1680 :_-..J!. 1680 LF Demo Existing Curb and Gutter 880 _____2 880 LF Demo Existing AC:pavement 2400. 0 . 2400 SF Demo Existing Sidewalk 0 .~O---- 0 SY Relocate Fire Hvdrant .------ 1 0 1 Ea Dem()Stormlnletw/pipe - -: 1.. O~_~__ _..5_~_ RelcicateWater'Metei 2 ___._~_.~ _.~ Reiocate Mise, Risers 2 0 2 Ea Relocate Existing StreerLight _. 2 ---"--'--"0 2 Ea !lP-e G Curb and Gutter~'--~---= _____.880.1-_ ~___~ 0 ----880--' LF- Median Construction 400 0 400 LF AC Pavement. 3250 325 Toh PCC.CrossGutter at Entrance 133 ---:--0 133SY Aggregate Base - 700' -----0 _-1:22___. Ton_ Preparation of Subgrade _ ___ __._ 15800 0 ..--1..~.9.9SF Pedestrian Ramp 6 1 7 Ea Concrete Sidewalk 793 720 ~5.13____ __S~_ Irrigation Service '. 1 ___~"___.Q __J....__ ~_ Streetlight incl conduitarid service 2 3 5 Ea New Signalw Poles & Appurtenances _ _ _____-1 =-_--::.=- 0 ~~~=-l-=-~. LS = Signal Moaification 01' 1 .LS Skmallnterconnect 0,5 --..----.0,5 1 LS ~9ning and Striping 0.5 - 0:25 _ 0:75 .LS -- Erosion Control ____ _~ 0:25 _ 0 75 LS Landscaping (Repair) 0,5 0.25 0.75 LS -" --. ---- - . - Subtotal: I _ i I I I i 20% Contingency-: I I I :-- I 1 SoftC6stsJ6rDesigri of'Off'Sites I r I - i Civil Engineering _ L I II TrafficEngineering "striping and signals I i I I Subtotal: I ! I Grand Total: - 1'-' ---1--------+-- I . . 10',14':2 Prepared'By M. Wolfe, PE' FuscoeEngineering;San'Diego UPDATED 8/20/200~ Tech Center Scripps PkWy Total' .UnitCost Amount Amount Amount $55,2.0.0..0.0 :$27:6.0.0..0.0 $13;8.0.0.0.0 $41;4.0.0 $22,5.0.0:.0.0 $1.0,125..0.0 $1.0;125'.0.0 ~O)5D-' . -=$DcDD'-'-'" ..- ,$12,.0.0 $7,.02.0:.0.0 ' ,$7,.02.0 - $2..0.0 $3,36.0,.0.0 $0..0.0 - $3,36.0 -- - .- -- ,$3,5.0 $3,.08.0,.0.0 .$.0..0.0 $3;.08.0 '$1,.0.0 $2;4.0.0:.0.0 $.0.02-.__ $2,4.0.0 ,$2,5.0 $.0,.0.0 $.0,.0.0 $.0 . $4;5.0.0..0.0 $4,5.0.0..0.0 _~ . $.0,.0.0 . $4,5.0.0 ...-- $2,.0.0.0,.0.0 $2,.0.0.0,.0.0 $.0..0.0 . _~2:DDD_ $1,.0.0.0..0.0 $2,.0.0.0:.0.0 - $.0,.0.0 $2,.0.0.0 . $1,.0.0.0,.0.0 $2;.0.0.0,.00- - $.0,.0.0 ~gOD~~ - $2,DDD,DQ._ $4,.0.0.0,.0.0 $.0,.0.0 __n _$4,.0.0.0 $12,.0.0 $1.0,56.0..0.0 $.0,.0.0 $1.0,56.0 - .. ... $28, .0.0 $11,2.0.0,.0.0 $.0,.0.0 $11.2.0.0 $48,.0.0 $15;6.0.0,.0.0 $.0..0.0 $15,6.0.0 $35..0.0 $4,655,.0.0 $.0,.0.0 - $4,655 $15:.0.0 $1.0;5.0.0,.0.0 $.0,.0.0 $1.0,5.0.0 $DAD $6;32.0..0.0 $.0,.0.0 $6,32.0 $6.0.0..0.0 $3,6.0.0,.0.0 $6.0.0..0.0 -- $4,2.0.0 . $21..0.0 $16;653..0.0 $15;12.0..0.0 $31,773 $1,2.0.0,.0.0 $1,2.0.0,.0.0 $.0,.0.0 $1,2.0.0 $4,2.0.0,.0.0 $8,4.0.0,.0.0 $12,6.0.0..0.0 $21,.0.0.0 $16.0,.0.0.0:.0.0 $16.0,.0.0.0,.0.0 $.0..0.0 $16.0;.0.00-- $3.0;.0.0.0,.0.0 $.0,.0.0 $3.0,.0.0.0..0.0 $3.0,.0.0.0 ... $1.0,.0.0.0:.0.0 $5,.0.0.0..0.0 $5,.0.0.0..0.0 -. $1.0,.0.0.0 ~1D,DDD.DD $5,.0.0.0 ,.0.0 $2;5.0.0,.0.0 $7,5.0.0 $4,.0.0.0:.0.0 $2,.0.0.0..0.0 _~1,DDD,DD__= $3,.0.0.0 $5,.0.0.0..0.0 $2,5.0.0 ..0.0 -.- __$1,25.0,.0.0 $3,75.0 - I i .$331 ;273 I $91,995 $423,268 i i I I i t "- $84,654 I l I - ~ I I $3.0, .0.0.0. .0.0 L i-- '"I $23,DDD:DQ....=.! .. -I $53,000:00 .. I $53,000 l=== I L $560,922 /J