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1997-0617_FLUIDMASTER, INC._Deferral of Development Taxes and Fees Agr DEFERRAL OF DEVELOPMENT TAXES AND FEES AGREEMENT THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as "City," and FLUIDMASTER, INC., a California corporation, hereinafter referred to as "Developer". WITNESSETH: WHEREAS, Developer proposes to construct its corporate headquarters and a manufacturing facility, hereinafter referred to as "Project," on certain real property legally known as Parcel 2 of Parcel Map 83-861, commonly referred to as 30800 Rancho Viejo Road, in the City of San Juan Capistrano, California; and, WHEREAS, Developer has requested that City defer certain taxes and fees to accommodate the Project construction; and, WHEREAS, Developer has requested that deferment of said taxes and fees be extended to one year after issuance of Certificate of Occupancy for the Project; and WHEREAS, Developer will provide guarantee for payment of said taxes and fees as set forth herein. NOW, THEREFORE, in consideration of the premises and promises hereinafter contained, City and Developer agree as follows: 1. Developer's Payment Obligations. Developer shall pay the following development fees and taxes for the Project by not later than 365 days from the date that a formal Certificate of Occupancy has been issued by City to Developer: Sewer Capacity $158,250 CIP Water Fees $203,046 Construction Tax (.05 sq. ft.) $ 9,152 Agricultural Preservation ($1,000 per acre) $ 9,300 Drainage Area Fees ($860 per acre) $ 7,998 System Development Tax (1% Building Value) $ 85,531 $473,277 These fees and taxes are subject to change in the event that Developer amends its development application upon which the above-stated fees and taxes have been calculated. c:\wpwin60\wpdocs\fldmstr\deferral.agr 1 07/24/97 • h . 2. Security to Guarantee Developer's Tax and Fee Obligations. Developer may choose from among the following security devices to guarantee performance of the Developer's tax and fee obligation under Section 1 of this Agreement. (a) Security Options: (i) Letter of Credit with a major bank organized under the laws of the State of California. The letter of credit form shall be provided to Developer and approved by the City Attorney; (ii) Cash bank deposit filed with a major bank authorized to do business in California. It shall be filed in the name of the City of San Juan Capistrano in a manner to allow immediate cash withdrawal by City should Developer fail to perform its one-year obligation under this Agreement. (iii) A corporate Surety Bond drawn on a corporate surety acceptable to the City Attorney. The bond form shall be furnished and approved by the City Attorney. (iv) A Certificate of Deposit approved by the City Attorney. (b) Amount and Timing of Security: (i) The amount of the security, regardless of which of the above-stated options is utilized, shall be $473,277, subject to the provisions of paragraph 1. (ii) The security shall be posted at the time the building permits are obtained from the City Building Department. (c) City's Right to Call the Security: City shall have the right to immediately call the cash security (in the case of the letter of credit or bank deposit or other negotiable paper), or make demand on the corporate security, upon Developer's failure to pay the deferred taxes and fees as specified in Section 1 of this Agreement. 3. Term of Agreement. This Agreement shall remain in full force and effect until mutually rescinded by the parties. c:Awpwin60\wpdocs9ldmstr\deferral.agr 2 07/24/97 4. Attorney's Fees. Developer agrees to pay City such sum as the court may adjudge as reasonable for the legal services of an attorney representing City in an action brought to enforce this Agreement, and such sum shall be made a part of any judgment in such action against Developer if such action is determined in favor of City. 5. Authorized Signatures. The parties to this Agreement hereby acknowledge and represent that the persons signing this Agreement have full legal authority to sign on behalf of each party. IN WITNESS WHEREOF, the parties have executed this Agreement as of June 17, 1997, at San Juan Capistrano, California. FLUIDMASTER, INC. CITY OF SAN JUAN CAPISTRANO By: Robert Anderson choepe :y: eor &Sca orough Senior Vice President / ity Manag r ATTEST: By: Cheryl Johnson City Clerk APPROVED S TO FORM: By: J•hn Sha City Attorney c:\wpwin60\wpdocs\fldmstr\deferral.agr 3 07/24/97