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Memorandum of Understanding 1994-0163888Recording Requested-by and When Recorded Mail.to: CITY CLERK CITY OF POWAY P.O. BOX 789 POWAY, CA 92074 -0789 7 2 2 1� 11A *- 1994 °0l03888 AM OFFICIAL RECORDS SAM DIEGO COUNTY RECORDER'S OFFICE GREGORY SMITH, COUNTY RECORDER FEES: 0.00 MEMORANDUM OF UNDERSTANDING F9 (OP [Tech Business Center] This Memorandum of Understanding ("MOU") is entered into as of 1994, by and between TECH BUSINESS CENTER, a California general partnership ( "Developer ") and the City of Poway ( "City ") with reference to the following facts: RECITALS A. Developer is the owner and developer of real property located in the City of Poway, County of San Diego, California, known as the Tech Business Center (Poway Tech Center East) ( "Project "), and more particularly described in Exhibit "A" attached hereto and "incorporated herein by reference. The Project consists of approximately 195.5 acres and is a portion of South Poway Business Park., B. On or about September 26, 1989, the City Council of City ( "City Council ") approved and adopted Resolution No. P -89- 116,, approving, subj'ect`to certain conditions set forth therein, Tentative Tract Map 89 -08 ("TTM 89 -0811) for development of the Project. C. On November:5,, 1990„ pursuant to Fees and Deposits/ Sewer Condition No. 1 set forth in Resolution No. P -89 -116, Developer applied to City for a Letter of Availability of Sewer Service ( "IAA") and posted with City a reservation fee equal to $186,595.20, which amount equals twenty percent (20 %) of the appropriate sewerage connection fee, based upon available capacity. Poway issued LOA No. 233 to Developer on December 17', 1990. Developer paid an additional $95,277.60, which amount equals ten percent (10 %) of such sewerage connection fee, on each of the following dates: _September 26, 1991 and September 26, 1992. Thus,, a total of forty percent (40 %) of such sewerage connection fee has been paid as of the date of this MOU, for a total of $373,190.40, which shall be credited against the final sewerage connection fee for the Project. 0204/94 F\ D. City yrOrdinance No. 83 governs the reservation of sewerage capacity and the payment of connection fees for service. Section 2 of Ordinance No. 83 provides: "Where applicant's project is a tentative tract or parcel map; it shall be subject to ail provisions of this ordinance except the time limitations of Section 1.2. In such case, the City shall represent in the LOA that sewerage availability is assured for applicant's project for a period of time equal to the time of expiration of the tentative map." City represented.in LOA No. 233 that the LOA would expire on September 26, 1991 unless extended pursuant to the provisions of the Ordinance. Section 4.2 of Ordinance No. 83 provides that an applicant for an.extension of an LOA shall-pay an additional reservation fee for. sewerage connection. The City has acknowledged that LOA No. 233 has been extended to September 26, 1993 as a result of the fees paid as described in Recital C above. E. On December 11, 1990, the City adopted Ordinance No. 330 approving the execution of the Tech Business Center Development Agreement ( "Development Agreement") between the City and Developer. Pursuant to Ordinance No. 330, the Development Agreement was to be effective upon the effective date of the Ordinance. Ordinance No. 330 became effective on January 10, 1991. Section 4 of'the'Development Agreement provides that, pursuant to Government Code Section 66452.6(a), the Tentative Tract Map for the Project (TTM 89 -08) shall�be extended so that the Tentative Tract Map shall remain valid for a period equal to the Term of the Development Agreement,, as it may be extended. The Term of the Development Agreement is defined to be ten ('10) years from the date of execution of the Development Agreement (which 10 -year period expires on January 10, 2001), provided that such 10 -year period may be extended as follows:. (1) for up to five (5) additional years in order to complete construction of the Project,. and (2) in addition, for any period development of the Project has been prevented due to Enforced Delays (as defined in the Development Agreement). F. Developer has requested written acknowledgement of extension of TTM 89 -08 and LOA No. 233 for the duration of the Term of the Development Agreement. A dispute arose between the City and Developer concerning whether Developer is required to proceed through the public hearing process before the City Council in order to obtain extension of TTM 89 -08 and LOA No. 233., and whether Developer need pay the additional SPHSD\EBS \0056496.04 02/04194 -2- • • 724 reservation fees for sewerage connection required by Ordinance No. 83 when an LOA is extended. G. It is the intent of the City and Developer, by entering into this MOU,, to settle and resolve amicably this dispute._ Developer and City now desire to memorialize their understanding with respect to extension of TTM 89 -08 and LOA No. 233 and payment of additional reservation fees for sewerage connection for the Project. NOW, THEREFORE, in consideration of the recitals set forth above, the provisions of the Development Agreement, and the mutual covenants set forth herein, the parties agree as follows: 1. City hereby acknowledges that the duration of TTM 89 -08 and LOA No. 233 shall continue for the Term of the Development Agreement, which shall expire on January'10, 2001 unless extended as described in Recital E above, plus the automatic two -year extension provided, for under Government Code Section 66452.11 (Senate Bill No. 428, 1993 Stats. Chap. 407). 2. Developer shall pay an additional ten percent (10 %) of the sewerage connection fee, or $95,277.60, on or before September 26, 1995, which amount shall be credited toward the final sewerage connection fee for the Project. 3. City hereby acknowledges that receipt of the fees described in Section 2 of this MOU constitutes full satisfaction by Developer of any obligation which may exist pursuant to this MOU, Resolution No. P -89 -116, LOA No. 233 and /or Ordinance No. 83 pertaining to payment of reservation fees for sewerage capacity or sewerage connection fees prior to recordation of a final map for TTM 89 -08. 4. Within fifteen (15) calendar days after receipt of payment in full of the additional fees required to be paid pursuant to Section 2 o this MOU, City shall execute and cause to be recorded an Acknowledgement of Payment In Full and Satisfaction of All Obligations in the form set forth on Exhibit "B" attached hereto and incorporated herein by reference. 5. Developer and City understand and agree that this MOU settles a dispute,,between the parties and clarifies the rights and responsibilities of the parties. It does not constitute either an amendment to the Development Agreement or an amendment to TTM 89 -08,, and the Development Agreement and TTM 89 -08 shall remain in full force and effect. 6. Any notice or instrument required to be given or delivered to either party to this MOU may be given and delivered BPHSD \EBS \0056496.04 02/04/94 -3- 0 by depositing`the. same in the United States Mail, registered or certified, postage prepaid, addressed to: City: City of Poway P.O. Box 789 Poway, California 92074 -0789 Attn: James L. Bowersox, City Manager Developer: Tech Business Center 3575 Kenyon Street San Diego, CA 92110 Attn: Paul K. Tchang With a Copy To: Ellen B. Spellman, Esq. Brobeck, Phleger & Harrison 550 West C Street, Suite 1300 San Diego, CA 92101 7. If either party commences legal proceedings for any relief against the other party arising out of this MOU, the losing party shall pay the prevailing party's court costs and reasonable attorney's fees. 8. Developer shall have the right to assign its rights and obligations hereunder, in writing, to a successor owner of the Project, provided written notice of such assignment is delivered by Developer to City. In the event of such an assignment, Developer shall be relieved of all further obligations hereunder. IN WITNESS WHEREOF, City and Developer have executed this Memorandum of Understanding as of the date first written above. CITY: CITY OF POWAY By Don Higginson, _ or of the City of Poway [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] BPHSD\EBS \0056496.04 02/04/94 -4- 725 C 0 726 [SIGNATURE PAGE TO MEMORANDUM OF UNDERSTANDING [ -TECH BUSINESS CENTER]] ATTEST: dYl -� -luaL., Maror a C. Wahlsten, City Clerk TO FORM AND SUBSTANCE: St n M. Eckis, Ci Attorney 6PHS0\EB5 \0056496.04 02,94/94 -5- STATE'OF CALIFORNIA ) COUNTY OE). On undersicined, a Notary 0 15W /Fel ,. before me,, the n and Mr said State, Iperspn� personally known thyme to be the person whose name'ib subscribed to the within instrument and,acknowledged to me that hefshr, he executed the same in his / e r authorized capacity es , and that-by �thei -r slgnatu"re�s on the instrument the person( (O, or the entity upon behalf.of which the person'fg acted, executed, the instrument. WITNESS.my hand and official seal. l OFFICIAL SEAL M,ARIELOFION Notary Public in and for Said State Notary Public Cai6mlo W ®< f ,e SAN, DIEGO COUNTY VICommlS lon:EYplibs April 26; 1994 BPHSD\EBS \0056496.04 02/04/94 —6— DEVELOPER: .TECH BUSINESS CENTER; a,California general partnership By: Techbilt Construction Corp., a California cx oration, General Partner �. By: Paul ,chang, President By: Bothwell International, Ltd., a California 1 -mited partnership, General Pa ,neer By: �z Neville Bothwell, General Partner BPHSD\ESS \0056498.04 02/04/94 -7- 728 • 0 729 STATE OF CALIFORNIA ), `COUNTY OF San, Diego ) on j undersigned, a before 'ime, the State, personally personally known to me sa:sez -sates sf- aetor}•- evi-denG to be the person W whose name (,,V) is /_ar-e- subscrib.ed to the within instrument and acknowledged to me that hie /"� °y executed the same in his /__.�'r authorized capacity(.e ), and that by his /hetV -t /zh - signature {06 on the instrument the person()io), or the entity upon, behalf of which the person(jk) acted, executed the instrument. WITNESS my hand and official seal. MY -SMI'JUAHY 18, 19�'S STATE OF CALI O IIA ) COUNTY OF San Diego' On March "3, 1994 undersigned, a Notary Pub appeared Neville F. personally known to me ( caitiof + e'yide pl to sub scribed Yto the ,within he /shkefthey. executed the capacity(ies-),, and that. b instrument the person(, person (S) acted, executed BPHSD \EBS \0056496.04 02/04/94 No ry Public n and for Said State before me, the lic in and for said :State, personally Bothwell o eyed' tome' en the mssts � fir. me 'en be the person(,,40 whose name(, is /arre, instrument and acknowledged to me that same in his /her-/t -he- r ,authorized y his /ham/ - their signature(() on the or the entity upon behalf of which the the instrument. WITNESS my hand and official seal. 1 &, 1995 Nota' yy Puublici' and' for Said State ME 730 EXHIBIT "A" LEGAL DESORIPTION OF PROJECT, PARCEL 1: THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 24, TOWNSHIP 14 SOUTH,, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO OFFICIAL PLAT THEREOF. PARCEL 2: LOT 4 - IN,SECTION'19, TOWNSHIP 14 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO OFFICIAL PLAT THEREOF. PARCEL 3: LOTS I AND 2 OF SECTION 30, TOWNSHIP 14 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN;'IN THE CITY OF POWAY,, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO OFFICIAL PLAT THEREOF. EXCEPTING THEREFROM THE EASTERLY 300.00 FEET. ALSO EXCEPTING THEREFROM THOSE PORTIONS CONDEMNED IN AN ACTION IN THE DISTRICT COURT OF THE UNITED STATES IN AND FOR THE SOUTHERN DISTRICT OF CALIFORNIA, SOUTHERN DIVISION, CASE NO. 162, CIVIL, ENTITLED "UNITED STATES OF AMERICA, VS. JOSEPHINE SCRIPPS, ET AL," A CERTIFIED COPY OF THE DECREE OF DECLARATION OF TAKING HAVING BEEN RECORDED :APRIL 16, 1942 IN ,BOOK 1342, PAGE 14 OF OFFICIAL RECORDS OF SAN DIEGO' COUNTY BPHSD\EBS \0056498.04 02/D4R4 NMI .731 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS'SITUATED IN'THE STATE OF CALIFORNIA, COUNTY OF SAN.DIEGO, AND IS DESCRIBED AS FOLLOWS': PARCELS 1 THROUGH 4 OF PARCEL MAP NO. 5750,, FILED IN THE OFFICE OF THE COUNTY RECORDER, MARCH 31, 1977 AS FILE!NO. 77- 118268 OF OFFICIAL RECORDS,, BEING A PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 19 AND THZ NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 30, TOWNSHIP 14,SOUTH, RANGE 1 WEST,, SAN BERNARDINO'BASE AND MERIDIAN;, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO;OFFICIAL PLAT THEREOF. BPHSD \E85 \0056496.04 02/04/94 A -2