Item 8 - TTM 86-01RA H.G. Investment Corp. REVISED
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CITY OF POW A Y
REVISED MATERIAL
TO: Honorable Mayor and Members~ City Council
FROM: James L. Bowersox, City Man
INITIATED BY: John D. Fitch, Assistant City Manager ~~
Reba Wright-Quastler, Director of Plann~ervices
Stephen A. Streeter, Principal Planner
DATE: July 11, 1995
SUBJECT: Tentatfve Tract MaD 86-01CRA). H. G. Investment CorD..
ADDlicant: A request to amend the resolution of approval for
Huntington Gate, Phase 2, Lots 33-70, to eliminate grading
restrictions within building setback areas on residential
lots to preserve coastal sage scrub habitat. The 41 acre :t
site is located south of Del Poniente Road, east and west
sides of Huntington Gate Drive, west of Fiddletown Road
within the RR-C zone. Off-site purchase of 6.5 acres of
comparable habitat or payment into an in-lieu fund is
proposed.
APN: 321-410-01 through 38
BACKGROUND
The City has incurred costs over the past several years for Phases 1 and 2 of the
Hunt ington Gate Subdi vi s ion. The Phase 1 costs for remaining subdivision
improvements and monumentation are $34,000. The Phase 2 costs of approximately
$338,000 include a delinquent deposit account with the City, Budwin Lane and
schoo 1 slope drainage, water bills and remaining subdivision improvements
(Engineering fees/Inspection fees for remaining work, securities, posting of any
bonds, etc.).
The attached fee agreement between the City and the current majority property
owner of Phase 2 is to set up a repayment schedule for the outstanding fees owed
to the City. This fee agreement is a condition in the revised resolution. The
draft agreement has been reviewed by the City Attorney, and the Director of
Engineering Services along with Engineering Services and Planning Services staff.
It is expected that the agreement will be signed on or before July II, 1995.
The revised resolution pages reflect changes discussed between the applicant,
Engineering and Planning staff with amendments by the City Attorney. The
ACTION:
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1 of 9 JUL 11 1995 ITEM 8 i
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Agenda Report
July 11, 1995
Page 2
revision to condition 4 on top of page 3 is to correctly show that the numbers
are for parcel numbers rather than lot numbers. The lot numbers are shown in
parentheses. Additional time is provided in condition 6 for the applicant to
acquire all or a portion of the required 6.5 acres of habitat or to pay all or
part of the difference. The revised condition 2 under General Requirements
provides a two year maximum time to accomplish all the listed conditions within
the resolution with remedies if all conditions are not met. Condition 3 on page
4 has been revised to address the fee agreement.
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Attachments:
A. Draft Fee Agreement
B. Revised Resolution Pages
e:\c;ty\planning\report\tt08601...gn
JUL 11 1995 ITEM 8
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- HUNTINGTON GATE TiM 86-01
FEE AGREEMENT
This Agreement is entered into this day of July,
1995 between the City of poway ("City") and HG Investment Corp., a
California oorporation ("HG") .
WHEREAS, the previous owner of the lots at Huntington Gate,
Huntington Gate L. P., incurred certain obligations to the City
including but not limited to inspection fees, erosion control work,
and water usage and LMD 86-1 ("fees") ; and
WHEREAS, HG is legally obligated to reimburse the City for
those obligations incurred by Huntington Gate L.P. , the parties
agree as follows:
1. The Engineering Services Developer Deposit Fees incurred
at Huntington Gate as of July 1, 1995 total $101,553.00. The
delinquent water usage bills incurred at Huntington Gate as of May
16, 1995 total of $11,926.96. The nuisance abatement bill incurred
at Huntington Gate totals $54,225.00.
The Conditions of Approval on the Tentative Subdivision Map
for the development of Huntington Gate included certain grading
constraints within the Building Setback areas for the protection of
coastal sage scrub; habitat for the California Gnat Catcher. The
Developer desires to eliminate this restriction replacing the
restricted areas in Huntington Gate Phase II with an in lieu fee
paid to the City for acquisition of habitat. The developer will
pay the City approximately $10,000.00 per acre for a total of 6.5
acres. This payment is due within 2 years of this agreement.
In addition to the above referenced fees and costs, HG agrees
to pay the City the reimbursement of costs incurred by the City for
Landscape Maintenance District 86-1 Huntington Gate, which total
$20,000.00.
In addition to the payment by Huntington Gate to the City as
previously referenced herein, Huntington Gate will assign an
additional $20,000.00 per lot sale/escrow closing to the City in
the same manner as described above for additional lots for a total
of up to $120,000.00. The purpose of this payment is to replace
the existing Letter of Credit supplied by Westport Savings Bank to
the City to secure the work which remains to be completed by
Huntington Gate referenced in Item #9 below. In the event
Huntington Gate completes and receives Final Inspection from the
City for the improvements prior to the closing of the referenced
escrows then this requirement will be deemed to have been met by
Huntington Gate. ITEM 1f
3 of 9 ATrACHMENT A JUL 11 1995
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Page 2
July_, 1995
2. HG will pay the fees, bills and securities to the City
through the closing of escrow on the lots sold by HG in the
Huntington Gate Subdivision for a total of $372,704.96, of which
$120,000.00 is security for the completion of items referred to in
paragraph #9 below.
3 . The sale of each lot will be closed through an escrow at
Fidelity Title Insurance Company. Concurrent with the execution of
this Agreement, HG will execute an Authorization to Disburse Escrow
Funds and Irrevocable Assignment of Escrow Proceeds directing
Fidelity Title Insurance Company to pay $20,000.00 from each escrow
at closing to the City. The form of the Irrevocable Assignment of
Escrow Proceeds is attached hereto as Exhibit B.
4. In consideration of the payment program as described in
this Agreement, the City will not require any of these Fees to be
paid by existing owners of any lots in Phase II of the Huntington
Gate subdivision other than those lots listed on Exhibit A.
5 . Upon payment of the entire amount of the Fees, the City
will execute any and all necessary documents required by Fidelity
Title Insurance to cancel the Authorization to Disburse Escrow Fees
and Irrevocable Assignment of Escrow Proceeds.
6. The parties executing this Agreement are duly authorized
to act on behalf of the persons and entities obligated by the terms
hereof, and their execution of this Agreement binds the parties on
whose behalf they have executed the Agreement.
7. This Agreement may be signed in counterparts, and
photocopies or facsimile copies of this Agreement may be used as
originals.
8. The parties declare and represent that no promise,
inducement. or agreement not herein expressed has been made to any
of their representatives, and this Agreement contains the entire
agreement between the parties. The terms of this Agreement are
contractual in nature and not mere recitals.
9 . Developer agrees to complete all Grading and Public
Improvements for Huntington Gate Phases 1 & 2 in accordance with
the approved Grading Plans and Improvement Plans for Huntington
Gate Phases 1 & 2 approved by the City on April 1, 1987, April I,
I 1987 and May 2, 1989 and June 22, 1989 respectively. Such
completion work includes, but not limited to drainage improvements,
trails, repairs to punch and list items.
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Page 3
July . 1995
The City will inspect the work as completed and will plan check any
changes or amendment to the existing Grading and Improvement Plans.
H G will payor reimburse the City for all costs incurred by the
City in connection with the completion of the referenced items.
10. The City has caused to be recorded in the Recorders
office of the County of San Diego a "NOTICE OF INTENT TO LIEN".
The City hereby agrees to release such NOTICE OF INTENT TO LIEN on
a lot by lot basis as needed to close escrows for the sale of the
individual lots.
11. Upon execution of this agreement by the parties herein
the City agrees to process all Building and Grading Plans and issue
Building Permits and Grading Permits for all lots remaining in
._ Huntington Gate Phase II in the normal course of business.
CITY OF POWAY
by
Roberts,
I
5 of 9 JUL 11 1995 ITEM 8
HUNTINGTON GATE TM 86-01
EXHIBIT A
LOTS: 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 47, 48, 49, 50, 51,
52, 53, 54, 55, 56, 57, 58, 59, 61, 66, 67, 69, 70.
TOTAL 28 lots
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HUNTINGTON GATE TM 86-01
EXHIBIT B
AUTHORIZATION TO DISBURSE ESCROW FUNDS AND
IRREVOCABLE ASSIGNMENT OF ESCROW PROCEEDS
HG Investment Corp. hereby irrevocably authorizes Fidelity Title
Insurance Company to pay $20,000.00 from each escrow closing from
each lot in Phase II of the Huntington Gate subdivision as
described in Exhibit A hereto to the City of Poway.
This authorization and assignment of escrow proceeds shall remain
in effect until the total balance of #372,704.96 has been paid
through escrow proceeds to the City of poway or until the City of
poway has given written notification to Fidelity Title that it has
received a total of $372,704.96.
This authorization of payment and assignment of escrow proceeds is
pursuant to the agreement between HG Investment Corp. and the City
of poway which is attached hereto.
HG Investment Corp.
by: J. Brian O'Donnell
Secretary
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JUL 11 1995 ITEM 8
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Resolution No.
Page 3
4. Condition B. BrlfW,i<:,~) Resources, 2. of Resoluii:qn'"'~;m~",e~~-;'Y~~P.~t~~
applicable for.AI1<:~1!$(i~ 3-5, 8, 9, 12, 14-17 I:ijjj~~t.!ltaiji$!{fi,!jjji>f
li~I~~ of Phase 1mth^it-border a recreational trall-easement' or open'space
easement. The subsection states: "In regard to the designated open space
easements, the developer shall also be required to:
e. Require future homeowners with lots fronting an open space area to
maintain said areas in their natural state.
5. Approval of this request shall not waive compliance with all sections of
the Zoning Ordinance and all other applicable City Ordinances fn effect at
the time of building permit issuance.
6. Off-sitejpurchase of 6.5 acres of comparable habitat is required within 99
~ l~!,~~!~~ or payment into an in-lieu fund administered by the City of
PowaYls requi red on a pro rata bas i s as the 28 lots owned by the
applicant are sold or building permits pulled after minor development
review approval. In the event the total amount is not paid within two
years, the applicant shall pay an additional amount as determined by the
City Council.
RECREATION
1. The developer shall improve the remaining recreational trail system in the
subdivision prior to pulling any more than seven building permits of the
28 lots under their ownership. Trail construction shall be in accordance
with the adopted standards and to the satisfaction of the Directors of
Public and Planning Services.
2. An open space easement shall be granted to the City over, upon, across,
and under the area defined on the final maps as a recreational trail and
no building, structures or other things shall be constructed, erected,
placed or maintained on subject easements except for the construction and
maintenance of said trail and structures appurtenant to the trail.
3. Dedicate the Master planned recreational trails to the satisfaction of the
Directors of Public and Planning Services in accordance with the Master
Plan of Trails Element.
GENERAL REQUIREMENTS AND APPROVALS
1. All provisions of the Subdivision Ordinance of the Poway Municipal Code
shall be met as they relate to the division of land.
2. Prier te fiAil map appreval, all ~edieatiaAS shall he made aAd easemeRts
graRted as reqijired.
2. The ItlJi1il teRtative map revision ~9naf$ion!@Bl! approval for Phase 2 shall
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ays prlor to eXplratlon ln accordance with the Clty'S Subdlvlsion
Ordinance.
- JUL 11 1995 ITEM 8
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Resolution No.
Page 4
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graiRage fees paiEl wheR graEliR!l permit is isslleEl, selier aREI water fees
paiEl at hllilEliR!l permit, the l"emaiRiR!l fees paiEl at eeellpaRey.
4. Inclusionary housing fees shall be paid in accordance with fee schedule in
effect at the time of building permit issuance.
APPROVED and ADOPTED by the City Council of the City of Poway, State of
Californfa, this 11th day of July, 1995.
Don Higginson, Mayor
ATTEST:
Marjorie K. Wahlsten, City Clerk
STATE OF CALIFORNIA )
- ) SS.
COUNTY OF SAN DIEGO )
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby
certify, under the penalty of perjury, that the foregoing Resolution, No.
, was duly adopted by the City Council at a meeting of safd City Council
held on the day of , 1995, and that it was so adopted
by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, City Clerk
City of Poway
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