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19-0402_C & C DEVELOPMENT CO., LLC_Exclusive Negotiation AgreementTHE CITY OF SAN JUAN CAPISTRANO EXCLUSIVE NEGOTIATION AGREEMENT (The Groves at Williams Ranch) THIS EXCLUSIVE NEGOTIATION AGREEMENT ("Agreement") is dated u, of û9f'f l ? 2019,for reference purposes only, and is entered into by and between the City of San Juan Capistrano, a public body corporate and politic ("City") and C & C Development Co., LLC, a California limited liability company, and The Waterford Group, Inc., a California corporation (collectively, "Developer"), to provide a specified period of time to attempt to negotiate a disposition and development agreement. The City and the Developer are sometimes referred to in this Agreement individually, as a "Part¡/" and, collectively, as the "Parties." This Agreement is entered into by the Parties with reference to the following recited facts (each, a "Recital"): RECITALS A. The City is the owner of that certain real property located at the northeast corner of Camino Capistrano and Junipero Sena Road, San Juan Capistrano (APN 12l-050-21) and more specif,rcally described in Exhibit A ("Property"); and B. The City has unmet goals for low income housing units under its current Housing Element and regional housing needs assessment goals for the 2014-2021planning period. C. Approximately 2 to 2-Y' acres of the approximately 20 acres of the Properly are developable. The City has an interest in developing the developable portion of the Property ("Developable Property") for affordable housing and accepted development proposals from interested developers; and D. The Developer has proposed the redevelopment of the Developable Property with a high quality senior multi-family affordable rental complex of approximately 50-68 units and related improvements, which maximize the available parking that can be accommodated on the triangular parcel and retain the existing parking dedicated to the adjacent assisted living facility, as generally depicted in the conceptual site plan attached to this Agreement as Exhibit "B" and incorporated into this Agreement by this reference ("Project"); and E. The intent of both the City and the Developer in entering into this Agreement is to establish a specific, limited period of time to negotiate regarding a future agreement between them governing the potential acquisition of the Developable Property and development of the Project on the Developable Property, all subject to mutually agreeable terms, conditions, covenants, restrictions and agreements to be negotiated and documented a future disposition and development agreement ("DDA"). NOW, THEREFORE, IN VIEW OF THE GOALS AND OBJECTIVES OF THE CITY RELATING TO THE SALE AND DEVELOPMENT OF THE DEVELOPABLE PROPERTY AND THE PROMISES OF THE CITY AND TITE DEVELOPER SET FORTH IN THIS AGREEMENT, THE CITY AND THE DEVELOPER AGREE, AS FOLLOWS: 1. Incorporation of Recitals. The Recitals of fact set forth above are true and correct and are incorporated into this Agreement, in their entirety, by this reference. 2. Deposits. Concurrent with the Developer's execution of this Agreement, the Developer shall provide to the City a single deposit in the amount of Twenty-Five Thousand Dollars ($25,000) in 1603\0russ3627 .2 imrnediately available funds ("Deposit") to ensure that the Developer will proceed diligently and in good faith to fulfill its obligations under this Agreement during the Negotiation Period (as defined in Section 3(a)), as part of the consideration for the City's agreement not to negotiate with other persons during the Negotiation Period, and to defray some if not all of the legal costs of the City in pursuing the contemplated negotiations with the Developer during the Negotiation Period, pursuant to this Agreement. The City shall charge attorney fees associated with review and implementation of this Agreement or preparation of the DDA) against the Deposit. The City shall provide monthly accountings to the Developer as to the amount of legal fees paid from the Deposit. The Developer will not be required to deposit additional funds beyond the initial Deposit even if the City's total legal fees exceed the amount of the Deposit. At the termination of this Agreement, any remaining funds shall, at the Developer's option, either be applied to the purchase price or returned to the Developer. Developer acknowledges that the Deposit shall be in addition to those fees and expenses required by the City for any permit, other required entitlement or project processing. A portion of the Initial Deposit in an amount equal to One Hundred Dollars ($1OO¡ shall immediately become non-refundable upon Developer's transfer of the Initial Deposit to the City under this Agreement as consideration for the City's agreement not to negotiate with other persons during the Negotiation Period. 3. Term of Agreement. (a) The rights and duties of the City and the Developer established by this Agreement shall commence on the first date on which all of the following have occurred (the "Effective Date"): (1) execution of this Agreement by the authorized representative(s) of the Developer and delivery of such executed Agreement to the City, (2) payment of the Deposit to the City by the Developer, in accordance with Section 2, (3) approval of this Agreement by the City governing body and execution of this Agreement by the authorized representative(s) of the City and (4) delivery of such fully executed Agreement to the Developer, the exact date of which shall be mutually agreed to by the Parties promptly after Developer's receipt of the fully executed Agreement from the City as evidenced in writing signed by their respective authorized representatives. The City shall deliver a fully executed counterpart original of this Agreement to the Developer, within ten (10) calendar days following the City governing body's approval of this Agreement, if approved, and the execution of this Agreement by the authorized representative(s) of the City. This Agreement shall continue in effect for the period of two hundred forty (240) consecutive calendar days immediately following the Effective Date ("Negotiation Period"), subject to the limitations of Section 3(b). (b) The Negotiation Period may be extended upon the mutual written agreement of the City's City Manager and the Developer for no more than two (2) additional consecutive ninety (90) calendar day periods. Notwithstanding the immediately preceding sentence or any other part of this Agreement, in no event shall the Negotiation Period exceed four hundred twenty (420) consecutive calendar days from the Effective Date; provided however, that the City Manager may extend the Negotiation Period for any additional time as necessary for the sole purpose of completing any necessary process and review under the California Environmental Quality Act. (c) This Agreement shall automatically expire and be of no further force or effect at the end of the Negotiation Period, unless, prior to that time, both the City and the Developer approve and execute a DDA acceptable to both the City and the Developer, in their respective sole and absolute discretion, in which case this Agreement willterminate on the effective date of such DDA. 4. Obligations of Developer. During the Negotiation Period, and pursuant to the attached Milestone Schedule (Exhibit C), Developer shall proceed diligently and in good faith to develop and present to City staff and, subsequently, to the City governing body, for review, all of the following: 2 1603\01U553627 .2 (a) Developer shall pay for an appraisal to determine the fair market value of the Developable Property by an appraiser mutually acceptable to the Developer and the City; (b) A proposed complete conceptual development plan for the Project on the Developable Property that describes and depicts: (1) the location and placement of proposed buildings and (2) the architecture and elevations ofthe proposed buildings; (c) A proposed time schedule for the development of the Project on the Developable Property; and (d) A proposed financing plan identifzing financing sources and cost estimates for the Project. 5. Obligations of City. During the Negotiation Period, and pursuant to the attached Milestone Schedule (Exhibit C), City shall proceed diligently and in good faith complete all of the following: (a) Deliver to the Developer all records and documents in the City's possession that related to the Property; (b) Prepare fee estimates based on Developer's conceptual development plan for Development Impact Fees, Planning Entitlement Processing Fees, and Building Permit Fees; and (c) Initiate the preparation of a Lot Line Adjustment to create the parcel of the Developable Property for the Project. 6. Negotiation of DDA. (a) During the Negotiation Period, the City and the Developer shall proceed diligently and in good faith to negotiate a DDA between them. The City and the Developer shall generally cooperate with each other and supply such available documents and information as may be reasonably requested by the other to facilitate the conduct of the negotiations. Both the City and the Developer shall exercise commercially reasonable efforts to complete discussions relating to the terms and conditions of a DDA and such other matters, as may be mutually acceptable to both the City and the Developer, in their respective sole discretion. The exact terms and conditions of a DDA, if any, shall be determined during the course of these negotiations. Nothing in this Agreement shall be interpreted or construed to be a representation or agreement by either the City or the Developer that a mutually acceptable DDA will be produced from negotiations under this Agreement. Nothing in this Agreement shall impose any obligation on either Party to agree to a definitive DDA in the future. Nothing in this Agreement shall be interpreted or construed to be a guaranty, warrant¡z or representation that any proposed DDA that may be negotiated by City staff and the Developer will be approved by the City governing body. The Developer acknowledges and agrees that the City's consideration of any DDA is subject to the sole and absolute discretion of the City governing body and all legally required public hearings, public meetings, notices, factual findings and other determinations required by law. (b) Based upon Developer's proposal the Parties have come to a tentative agreement on the following terms, subject to future negotiation during the Negotiation Period: mari<et varue as ¿"t",.ii* ,r,#";ï;ïilili.ïi:liäJH,"ïxl:lîHåîTii rrom the citv ror rair -1 1603\0tuss3627 .2 (ii) The Cify shall prepare and fully process a Lot Line Adjustment to form the parcel for the Developable Properly and the City shall retain approximately 17-Yz fo l8_acres of undevelopable land that is part of the Property. The City shall record the Lot Line Adjustment prior to any closing on the Developable Property with the Developer. (iii) City shall take back a residual receipts loan in the amount of the fair market value of the Developable Property for the purchase of the Developable Properly and shall provide a residual receipts loan in the amount of the impact fees for the Project as well as for development costs for the Project in an amount to be determined by the City and the Developer during the Negotiation Period. 7. Restrictions Against Change in Ownership, Management and Control of Developer and Assignment of Agreement. (a) The qualifications and identity of the Developer and its principals are of particular concern to the City. It is because of these qualifications and identity that the City has entered into this Agreement with the Developer. During the Negotiation Period, no voluntary or involuntary successor-in-interest of the Developer shall acquire any rights or powers under this Agreement, except as provided in Section 7(c). (b) The Developer shall promptly notifu the City in writing of any and all changes whatsoever in the identity of the business entities or individuals either comprising or in Control (as defined in Section 7(d)) of the Developer, as well as any and all changes in the interest or the degree of Control of the Developer by any such person, of which information the Developer or any of its shareholders, partners, members, directors, managers or offtcers are notified or may otherwise have knowledge or information. Upon the occurrence of any significant or material change, whether voluntary or involuntary, in ownership, management or Control of the Developer (other than such changes occasioned by the death or incapacity of any individual) that has not been approved by the City, prior to the time of such change, the City may terminate this Agreement, without liability to the Developer or any other person and refund any remaining Deposit funds provided by the Developer to the pursuant to Section 2, above, by sending written notice of termination to the Developer, referencing this Section 77(b). (c) The Developer may assign its rights under this Agreement to an Affiliate (as defined in Section 7(d)), on the condition that such Affiliate expressly assumes all of the obligations of the Developer under this Agreement in a writing reasonably satisfactory to the City, and further provided that C & C Development Co., LLC, a California limited liability company, and The Waterford Group, Inc., a California corporation (or their Affiliate), together with a nonprofit partner or its Affiliate,, Control any such Affiliate. The City acknowledges that the entity to develop the Property will be in the form of a limited partnership in which an Affiliate of C & C Development Co., LLC, a California limited liability company, and The Waterford Group, Inc., a California corporation, will serve as a general partner and an Affiliate of a nonprofit corporation will serve as the managing general partner (the "Partnership"). The Developer may assign it rights under this Agreement or under the DDA to the Partnership without the consent of the City provided that the Partnership expressly assumes all of the obligations of the Developer under this Agreement in a writing reasonably satisfactory to the City (d) For the purposes of this Agreement, the term "Affiliate" means any person, directly or indirectly, controlling or controlled by or under common control with the Developer, whether by direct or indirect ownership of equity interests, by contract, or otherwise. For the purposes of this agreement, "Control" means possession, directly or indirectly, of the power to direct or cause the 4 1603\01u553627 2 direction of the management and policies of an entity, whether by ownership of equity interests, by contract, or otherwise. 8. Obligations to Review Draft Agreements and Attend Meetings. (a) During the Negotiation Period, each Party shall diligently review and comment on draft versions of a DDA provided by the other Party and, if the terms and conditions of such a DDA are agreed upon between City staff and the Developer, the Developer shall submit the DDA fully executed by the authorized representative(s) of the Developer to the City Manager for submission to the City governing body for review and approval or disapproval. Any future DDA shall consist of terms and conditions acceptable to both the Developer and the City governing body, in their respective sole and absolute discretion. (b) During the Negotiation Period, the Developer shall also keep City staff advised on the progress of the Developer in performing its obligations under this Agreement, on a regular basis or as requested by City staff, including, without limitation, having one or more of the Developer's employees or consultants who are knowledgeable regarding this Agreement, the design and planning of the Project and the progress of negotiation of a DDA, such that such person(s) can meaningfully respond to City and/or City staff questions regarding the progress of the design and planning of the Project or the negotiation of a DDA, attend both: (l) periodic meetings with City staff, as reasonably scheduled and requested by City staff during the Negotiation Period, and (2) meetings of the City governing body, when reasonably requested to do so by City staff. 9. Developer to Pay All Costs and Bxpenses. All fees or expenses of engineers, architects, financial consultants, legal, planning or other consultants or contractors, retained by the Developer for any study, analysis, evaluation, report, schedule, estimate, environmental review, planning andlor design activities, drawings, specifications or other activity or matter relating to the Developable Property or the Project or negotiation of a DDA that may be undertaken by the Developer during the Negotiation Period, pursuant to or in reliance upon this Agreement or in the Developer's discretion, regarding any matter relating to a DDA, the Developable Properly or the Project, shall be the sole responsibility of and undertaken at the sole cost and expense of the Developer and no such activity or matter shall be deemed to be undertaken for the benefit of, at the expense of or in reliance upon the City. The Developer shall also pay all fees, charges and costs, make all deposits and provide all bonds or other security associated with the submission to and processing by the City and/or the City of any and all applications and other documents and information to be submitted to the City and/or the City by the Developer pursuant to this Agreement or otherwise associated with the Project. The City shall not be obligated to pay or reimburse any expenses, fees, charges or costs incurred by the Developer in pursuit of any study, analysis, evaluation, report, schedule, estimate, environmental review, planning and/or design activities, drawings, specifications or other activity or matter relating to the Developable Property or the Project or negotiation of a DDA that may be undertaken by the Developer during the Negotiation Period, whether or not this Agreement is, eventually, terminated or extended or a DDA is entered into between the City and the Developer, in the future. 10. City Not To Negotiate With Others. During the Negotiation Period, the City and City staff shall not negotiate with any other person regarding the sale or redevelopment of the Developable Property. The term "negotiate," as used in this Agreement, means and refers to engaging in any discussions with a person other than the Developer, regardless of how initiated, with respect to the availability of the Developable Property or that person's redevelopment of the Developable Property, without the Developer's prior written consent. Developer acknowledges that City may receive and retain unsolicited offers regarding redevelopment of the Developable Property, but shall not enteftain any offer or negotiate with the proponent of any such offer during the Negotiation Period; provided, however, that 5 1603\01\2553627 .2 the City may notiff such proponent that it is a party to this Agreement . Developer acknowledges that the City is a public agency and subject to the provisions of the California Public Records Act, Government Code Section 6254, et. seq. (the "Act"). The City shall use its best effofts to inform Developer of any request for information received pursuant to the Act. If Developer believes the information requested is confidential, Developer may pursuant a court order preventing the release of the requested information. 1 1. Acknowledgments and Reservations. (a) The City and the Developer agree that, if this Agreement expires or is teminated for any reason, or a future DDA is not approved and executed by both the City and the Developer, for any reason, neither the City nor the Developer shall be under any obligation, nor have any liability to each other or any other person regarding the sale or other disposition of the Developable Property or the redevelopment of the Project or the Developable Property; provided, however, that in the event this Agreement terminates, the City shall return to the Developer within ten (10) business days of such termination any and all Deposits due to be refunded pursuant to Section 2 of this Agreement. (b) The Developer acknowledges and agrees that no provision of this Agreement shall be deemed to be an offer by the City, nor an acceptance by the City of any offer or proposal from the Developer for the City to convey any estate or interest in the Developable Property to the Developer or for the City to provide any financial or other assistance to the Developer for redevelopment of the Project or the Developable Property. (c) The Developer acknowledges and agrees that the Developer has not acquired, nor will acquire, by virtue of the terms of this Agreement, any legal or equitable interest in real or personal property from the City. (d) Certain development standards and design controls for the Project may be established between the Developer and the City, but it is understood and agreed between the City and the Developer that the Project and the redevelopment of the Developable Property must conform to all City, City and other applicable governmental development, land use and architectural regulations and standards. Drawings, plans and specifications for the Project shall be subject to the approval of the City through the standard development application process for projects of this nature. Nothing in this Agreement shall be considered approval of any plans or specifications for the Project or of the Project itself by the City. (e) The City reserves the right to reasonably obtain further available information and data to ascertain the ability and capacity of the Developer to acquire or lease, develop and operate the Developable Properfy and/or the Project. The Developer acknowledges that it may be requested to make certain financial disclosures to the City, its staff, legal counsel or other consultants, as part of the financial due diligence investigations of the City relating to the potential sale of the Developable Property and redevelopment of the Project on the Developable Property by the Developer and that any such disclosures may become public records. The City shall maintain the confidentiality of financial information of the Developer to the extent allowed by law, as determined by the City Attorney. 12. Nondiscrimination. The Developer shall not discriminate against nor segregate any person, or group of persons on account of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry in undertaking its obligations under this Agreement. 6 1603\01u553627 .2 13. Limit¡tion on Dlmagcs and Rcmedies. (a) Tt{E DEVELOPER AND THE CITY AcKNowLEDcE ïHAT IT IS EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN TT{E AMOUNT OF DAMAGES THAT WOULD BE SUFFERED BY THE DEVELOPER UPON THE BREACH OF THIS ACREEMENT BY THE CITY. HAVTNG MADE DILIGENT BUT UNSUCCESSFUL ATTEMPTS TO ASCERTAIN THE ACTUAL DAMAGES THE DEVELOPER WOULD SUFFER UPON THE BREACH OF THIS AGREEMENT BY THE CITY, THE DEVELOPER AND THE CITY AGREE THAT A REASONABLE ESTIMATE OF THE DËVELOPER'S DAMAGES TN SUCH EVENT IS TWENTY-FIVE THOUSAND DOLLARS ($25,000) o'HE "LIQUIDATED DAMAGES AMOUNT'} THEREFORE, UPO\ THE BREACH OF THIS AGREEMENT BY THE CITY, THE CITY SHALL PAY THE LIQUTDATED DAMAGES AMOTJNT TO THE DEVELOPER AND THIS AGREEMENT SHALL TERMINATE. RECEIPT OF THE LIQUIDATED DAMAGES AMOIJNT SHALL BE THE DEVELOPER'S SOLE AND EXCLUSIVE RËMEDY ARÍSING FROM ANY BREACH OF THIS AGREEMENT BY THE CITY. çr,l Tc- lnitials of Representative of Developer (b) THE CITY AND THE DEVELOPER EACH ACKNOWLEDGE AND AGREE THAT THE CITY WOULD NOT HAVE ËNTERED TNTO TþIIS AGREEMENT, IF IT WERE TO BE LIABLE TO THE DEVELOPER FOR AI.¡Y MONETARY DAMAGES, MONETARY RECOVERY OR ANY REMEDY OTHËR T}IAN TERMINATION OF THIS AGREEMENT AND PAYTvIENT OF THE LTQUIDATED DAMACES AMOIJNT. ACCORDTNGLY, THE CITY AND THE DEVELOPER AGREE THAT THE DEVELOPER'S SOLE AND EXCLUSIVE zuGHT AND REMEDY UPON THE BREACH OF TH¡S AGREEMENT BY THE CITY IS TO TERMINATE TT{IS AGREEMENT AND RECEIVE THE LIQUIDATED DAMAGES AMOUNT. (c) THE DEVELOPER ACKNOWLEDGES THAT IT IS AWARE OF THE MEANING AND LEGAL EFFECT OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CRED¡TOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TTME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLÊMENT WITH THE DEBTOR. (d) CALTFORNTA CIV¡L CODE SECTTON rs42 NOTIVITHSTANDING, IT IS THE TNTENTION OF THE DEVELOPER TO BE BOIJND BY THE LIMITAT¡ON ON DAMAGES, RËCOVERY AND REMEDIES SET FORTH IN THIS SECTION 13, AND THE DEVELOPER HEREBY RELEASES A}.IY AND ALL CLAIMS AcAINST THE CITY FOR MONET.ARY DAMAGËS, MONETARY RECOVERY OR OTHER LEOAL OR EQUITABLE RELIEF RËLATEÐ TO ANY BREACH OF THIS AGREEMENT, EXCEPT RECEIPT OF THE LIQUIDATED DAMAGES AMOUNT, WHETHER OR NOT ANY SUCH RELËASED CLAIMS WERE KNOWN OR TJNKNOWN TO T}IE DEVELOPER AS OF THE EFFECTIVE DATE OF THIS AGREEMENT. THE DEVELOPER SPECIFICALLY \ryAIVES THE BENEFITS OF CALIFORNIA CIVIL CODE SECTION 1542 AND ALL OTHER STATUTES AND ruDICIAL DECISIONS (WHETHER STATE OR FEDERÂL) OF SIMILAR EFFECT WITH REGARD TO THE LIMITATIONS ON DAMAGËS AND Initlãls óf Authorized Rcpresentative of City 7 t 603\01u553627,2 REMEDIES AND WAIVERS OF ANY SUCH DAMAGES AND REMEDIES CONTAINED IN THIS SECT¡ON 13. lnit]zra-aË oiÀuúo¡ze¿ Rcpresentative of City fL-fu, [n./ Initials of Äuthorízdd Representative of Developer Vt, 14. Defaull (a) Failure or delay by either Parly to perform any material term or provision of this Agreement shall constitute a default under this Agreement. If thc Party who is receives notice of a default from the other Party curcs, corects or remedies the alleged default within fifrecn (15) calendar days afrer receipt of written notice by the other Party speci$ing such default, such Party shall not be in default under this Agreement. Thc noticc and cure period providcd in the immediately preceding sentence shall not, under any circumstances, extend thc Negotiation Period. If there are less than fifteen (15) days remaining in the Negotiation Period, the cure period allowed pußuant to this Section l4(a) shall be automatically reduccd to the number of days remaining in the Negotiation Period. (b) The Party claiming that a default has occuned shall give wrinen not¡ce of dcfault to the Party claimed to be in dcfault, speci$ing the allegcd dcfault. Delay in giving such notice shall not constitute a waivcr of any default nor shall it change the tíme of default. However, the injured Party shall have no right to exercise any remedy for a default under this Agreement, without fint delivering written notice of the default and allowing the applicable period to cure any such default as set forth in Section l4(a). (c) Any failurc or dcloy by a Party in asserting any of its rights or remedies as to any default shsll not operate as a waiver of any default or of any rights or remedies æsociated with a default. (d) If a default of either Party remains uncured for more than fifteen (15) calendar days following rcceipt of written notice of such default, a "breach" of this Agreement by the defaulting Party shall be deemed to have occurred. In the event ol a breach of this Agrecment, the sole and exclusive remedy of the Party who is not in default shall be to terminate this Agrcement by serving written notice of termination on the Party in breach and, in the case of a breach by the City, the Developer shall also be entítled to receive the Liquidated Damages Amount. 15. Compliance with L¡w. Thc Dcvelopcr acknowledges that any future DDA, if approved by the governing body of the City, will requirc thc Developer (among other things) to carry out the development of the Project in conformity with all applicable laws, including all applicable building, planning and zoning laws, environmenkl laws, safety laws and federal and state labor and wage laws. 16. Press Releascs. The Dcvelopcr agrcÊs to obtain the approval of the City Manager or his or her designee or successor in function of any press releæes Devclopcr may propose relating to thc lease or redevclopment of the Developable Propefy or negotiation of a DDA with the Ciry, prior to publication. The rights and obligations in this provision shall not apply to leasing and marketing brochures and/or informatíon distributed by email or placed online on a brokerage website or real estate websile such as LoopNet.com. 17. NotÍce. All notices required under this Agreement shall be presented in perron, by nationally rccognized overnight delivery service or by facsimile rnd confirmed by first class ccrtîfied or registered United Søtes Mail, with retum receipt requested, to the address for the Party set forth in this Section 17. Notice shall be deemed confirmed by United States Mail effective the third (3rd) business tó03\0tu553ó27 2 I 5v day after deposit with the United States Postal Service. Notice by personal service or nationally recognized overnight delivery service shall be effective upon delivery. Either Party may change its address for receipt of notices by notifl,ing the other Party in writing. Delivery of notices to courtesy copy recipients shall not be required for valid notice to a Party. TO DEVELOPER:C & C Development Co., LLC 14211 Yorba Street. Suite 200 Tustin. California 92780 Attn: Todd R. Cottle AND The Waterford Group PO Box 10175 Newport Beach. CA 92658 Attn: Sean Rawson COPY TO Goldfarb & Lipman LLP 1300 Clav Street. 1lth Floor Oakland.CA94612 Attn: L)¡nn Hutchins TO CITY Citv of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano. CA 92675 Attn: Citv Manager 18. Warranty Against Payment of Consideration for Agreement. The Developer warrants that it has not paid or given, and will not pay or give, any third pafi any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section 8, shall not include persons to whom fees are paid for professional services, if rendered by attorneys, financial consultants, accountants, engineers, architects, brokers and other consultants, when such fees are considered necessary by the Developer. 19. Acceptance of Agreement by Developer. The Developer shall acknowledge its acceptance of this Agreement by delivering to the City three (3) original counterpart executed copies of this Agreement signed by the authorized representative(s) of the Developer. 20. Counterpart Originals. This Agreement may be executed by the City and the Developer in multiple counterpart originals, all of which together shall constitute a single agreement. 2I. No Third-Party Beneficiaries. Nothing in this Agreement is intended to benefit any person or entity other than the City or the Developer. 22. Governing Law. The City and the Developer acknowledge and agree that this Agreement was negotiated, entered into and is to be fully performed in the City of San Juan Capistrano, California. The City and the Developer agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California, without application of such laws' conflicts of laws principles. 9 t603\01u553627 .2 23. Waivers. No waiver of any breach of any term or condition contained in this Agreement shall be deemed a waiver of any preceding or succeeding breach of such term or condition, or of any other term or condition contained in this Agreement. No extension of the time for performance of any obligation or act, no waiver of any term or condition of this Agreement, nor any modifieation of this Agreement shall be enforceable against the City or the Developer, unless made in writing and executed by both the City and the Developer. 24. Construction. Headings at the beginning of each section and sub-section of this Agreement are solely for the convenience of reference of the City and the Developer and are not a part of this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be construed as if it had been prepared by one or the other of the City or the Developer, but rather as if both the City and the Developer prepared this Agreement. Unless otherwise indicated, all references to sections are to this Agreement. All exhibits referred to in this Agreement are attached to this Agreement and incorporated into this Agreement by this reference. If the date on which the City or the Developer is required to take any action pursuant to the terms of this Agreement is not a business day of the City, the action shall be taken on the next succeeding business day of the City. 24. Attorneys' X'ees. If either Party hereto files any action or brings any action or proceeding against the other arising out of this Agreement, then the prevailing Party shall be entitled to recover as an element of its costs of suit, and not as damages, its reasonable attorneys' fees as fixed by the court, in such action or proceeding or in a separate action or proceeding brought to recover such attorneys'fees. Forthe purposes hereof the words "reasonable attorneys'fees" mean and include, in the case of either Party, salaries and expenses of the lawyers working for or employed by such Party (allocated on an hourly basis) to the extent they provide legal services to such Party in connection with the representation of that Party in any such matter. [Signatures on following pagel 1603\01u553627 .2 10 THE CITY OF SAN.IUAN CAPISTRANO EXCLUSIVE NEGOTIATION AGREEMENT (The Groves at Williams Ranch) IN WITNESS WHEREOF, the City and the Developer have executed this Negotiation Agreement on the dates indicated next to each of the signatures of their authorized representatives, as appear below. DEVELOPER: C & C Development Co., LLC, a California limited oated: 3/ 24 / 17 Todd R. Cottle, Trustee of the2007 Todd R. Cottle and Jennifer N. Cottle Revocable Trust By Dated: ?/7K/11 nu6¿. 3 - 2å-l-1 By n nan! R. Ktúe,Trustee of The Cottle Family Trust Dated 3/8/1987 THE WATERFORD GROUP, INC., a California By son,President CITY THE CITY OF SAN I By Dated ATTEST: By: APPROVED AS TO FORM: BEST BEST & KRIEGER, LLP By:O.,/n;1 c.a,^-, City ntúrneyt / t603\o1u553627 ,2 '-'¿f 11 EXHIBIT "A" TO NEGOTIATION AGREEMENT Propertv Legal Description Exhibit A Page I 1603\0tu5s3627 .2 Order Number: 05A-3616201 (18) Page Number: B LEGAL DESCRIPTION Real propefi in the City of San Juan Capistrano, County of Orange, State of California, described as follows: THAT PORTON OF SECnON 36, TOWNSHIP 7 SOUTH, RANGE B WESI SAN BERNARDINO MERIDIAN, IN THE CITY OF SAN JUAN CAPISTRANO, ACCORDING TO THE OFFICIAL PLAT FILED IN THE DISTRICT I-AND OFFICE, DESCRÏBED AS FOLLOWS: BEGINNING AT A POINT IN THE EAST LINE OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 36, TOWNSHIP 7 SOUTH, RANGE B WESI SAN BERNARDINO BASE AND MERIDIAN, DISTANT SOUTH OO 44' WEST 630.73 FEET FROM THE NORTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 36; THENCE FROM SAID POINT OF BEGINNING, NORTH BBo 43' 40' WEST 1648.31 FEETTO A POINT IN THE CENTER LINE OF THE CALIFORNIA STATE HIGHWAY, AS DESCRIBED IN THE DEED RECORDED MARCH22,19T6 IN BOOK 281 PAGE 245 OF DEEDS, SAID POINT BEING NORTH 260 40'EAST 93.28 FROM THE SOUTHWESTERLY END OF A COURSE IN SAID LAND, RECORDED MARCH 22, L9t6IN BOOK 281 PAGE 245 OF DEEDS, WHICH BEARS NORTH 260 40' EAST 641.11 FEET; THENCE NORTH 26o 40'EASTALONG THE CENTER LINE, AS DESCRIBED IN SAID DEED RECORDED MARCH22, L9L6 IN BOOK 281 PAGE 245 OF DEEDS, AND ALONG THE CENTER LINE, AS DESCRIBED IN THE DEED TO THE STATE OF CALIFORNIA, RECORDED JANUARY 24, L925 IN BOOK 557 PAGE 305 OF DEEDS, 447.59 FEET TO THE BEGINNING OF A CURVE TANGENT, CONCAVE WESTERLY AND HAVING A RADIUS OF 7OO FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 360 57I A DISTANCE OF 451,43 FEET TO A LINE TANGENT; THENCE NORTH 10o 17' WEST ALONG SAID TANGENT LINE, 116.81 FEETTO A POINT; THENCE SOUTH 67o 33'50" WEST 306.88 FEETTO A POINT; THENCE NORTH 29" 48'00' WEST 360.24 FEETTO A POINT; THENCE NORTH 19o 19' 00" WEST L99.L2 FEETTO A POINT; THENCE SOUTH 75o 15'40'WEST 180,19 FEETTO A POINT; THENCE NORTH 34o 28'00" WEST 165.62 FEETTO A POINT; THENCE NORTH B4o 10' 20' WEST t40.43 FEET TO A POINT; THENCE SOUTH 73" 5L' 20" WEST 208.66 FEET TO A POINT; THENCE SOUTH 160 11'50" EAST 1089.10 FEETTO A POINT; THENCE SOUTH 44o 5L' 40' WEST 109.08 FEET TO A POINT; THENCE SOUTH 19o 50' 40' WEST 140.56 FEET TO A POINT; THENCE SOUTH L7o 54'20" EAST 503.86 FEETTO A POINT; THENCE SOUTH 37" 36' 40'WEST 25B.BO FEETTO A POINT IN THE NORTHEASTERLY RIGHT OF WAY LINE OF THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY'S 6O-FOOT RIGHT OF WAY, AS coNVEyED TO THE CAUFORNIA CENTRAL RAILWAY COMPANY, BY DEED RECORDED IN BOOK 504 PAGE 305 OF DEEDS, RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, SAID POINT BEING ON A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 5699.65 FEET, THE CENTRAL POINT OF WHICH BEARS NORTH 7I" 53' 50" EAST; THENCE SOUTHEASTERLY ALONG SAID CURVE AND ALONG THE NORTHEASTERLY LINE OF THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY'S 60-FOOT RIGHT OF WAY, THROUGH A CENTRAL ANGLE OF 1o 20' 10" A DISTANCE OF 132.91 FEETTO A LINE TANGENTTHENCE SOUTH LgO 26'20" EASTALONG SAID TANGENT LINE AND ALONG THE NORTHEASTERLY LINE OF THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY'S 6O-FOOT RIGHT OF WAY, 782,65 FEEÏTO A POINT IN THE SOUTHERLY LINE OF THE LAND DESCRIBED IN THE DEED FROM ETIENNE OYHARZABAL AND WIFE, TO R. y. WILLIAMS AND W. B. WILLIAMS, RECORDED NOVEMBER 18, 1916 IN BOOK 289 PAGE 46 OF DEEDS; THENCE NORTH 70o 33'40" EASTALONG SAID SOUTHERLY LINE,30.07 FEET, MORE OR LESS TO A POINT IN THE CENTER LINE OF THE STATE HIGHWAY, AS DESCRIBED IN THE DEED TO THE STATE OF CALIFORNIA, RECORDED MARCH 22, 1916 IN BOOK 281 PAGE 245 OF DEEDS, SAID POINT BEING THE BEGINNING OF A CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 4OO FEET, THE CENTRAL POINT OF WHICH BEARS First American 77tle Order Number: 05A-3616201 (18) Page Number: 9 NORTH 70o 33'40" EAST; THENCE NORTHERLY ALONG SAID CURVE; (FOLLOWING SAID CENTER LINE AS DESCRIBED IN DEED RECORDED MARCH 22, L916 IN BOOK 281 PAGE 245 OF DEEDS), THROUGH A CENTRAL ANGLE OF 44" 19' 20" A DISTANCE OF 309.43 FEETTO A LINE TANGENT; THENCE NORTH 24o 53' EAST ALONG SAID TANGENT LINE, 333.25 FEETTO THE BEGINNING OF A CURVE TANGENT CONCAVE WESTERLY AND HAVING A RADIUS OF 5OO FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF lOO 34'25" A DISTANCE OF 92.27 FEET TO A POINT IN THE EAST AND WEST HALF OF SECTION LINE OF SAID SECTION 36; THENCE LEAVING THE CENTER LINE, AS DESCRIBED IN SAID DEED RECORDED MARCH 22, T916 IN BOOK 281 PAGE 245OF DEEDS, SOUTH B9O 46'EASTALONG THE SAID EAST AND WEST HALF SECÏON LINE, 1839.37 FEET ÏO THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE NORTHEASÏ QUARTER OF SAID SECTION 36; THENCE NORTH OO 44' EAST ALONG THE EAST LINE OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECnON 36, 689.75 FEETTO THE POINT OF BEGINNING. EXCEPTNG THEREFROM THAT PORTION LYING EASTERLY OF THE CENTER LINE OF THE STAÏE HIGHWAY, AS DESCRIBED IN DEED TO THE STATE OF CALIFORNIA, MARCH 22, L9L6IN BOOK 281 PAGE 245 OF DEEDS, RECORDS OF ORANGE COUNTY, CALIFORNIA. ALSO EXCEPTING THEREFROM THAT PORTON DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE WESTERLY BOUNDARY LINE OF LAND DESCRIBED IN PARCEL V OF A DECREE OF DISTRIBUTION, A CERTIFIED COPY BEING RECORDED AUGUST 24, 1956 IN BOOK 3623 PAGE 542OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, SAID POINT BEING SOUTH 160 11' 50" EAST 275.50 FEET FROM THE MOST WESTERLY CORNER OF SAID PARCEL V; THENCE SOUTH 16o 11' 50" EAST 25.00 FEET; THENCE NORTH 73" 48' 10" EAST 25.00 FEET; THENCE SOUTH 73o 48' 10' WEST 25.00 FEET TO THE POINT OF BEGINNING. ALSO EXCEPTNG THEREFROM THAT PORTON DESCRIBED IN DEED TO ORANGE COUNTY FLOOD CONTROL DISTRICT RECORDED JULY 1, 1971 IN BOOK 9702 PAGE 466 OF SAID OFFICIAL RECORDS. ALSO EXCEPTNG THEREFROM THAT PORTON LYING SOUTHERLY OF THE QUARTER LINE OF THE NORTHWEST QUARTER OF SAID SECilON 36, TOWNSHIP 7 SOUTH, RANGE B WEST, SAN BERNARDINO MERIDIAN. APN:121-050-21 First Amerban Title EXHIBIT "B" TO NEGOTIATION AGREEMENT Pro_iect Site Plan [To Be Attached Behind This Cover Page] Exhibit B Page I 1603\01uss3627 .2 FRTJECT SUMMARY Pt{Iry S¡ç¡ltc uq}@*ftÞ s p@4s'^*$ r6w# €!ár1;e***: . â ¡sas¡s¡. ?gtw l¡rsrgfat{r l? t¡æô **S Stß- SW¡$ l-:;J ! æë i. .. ........1 ? ã{ã lDËÂrc Exhibit B Page2 1603\01u553627 .2 ftfio",**** EXHIBIT C MILESTONE SCHEDI]LE Exclusive Negotiating Agreement Timeline Exhibit C Page 1 Within 30 Days of Effective Date (_) of ENA lnitial Pro Forma Submit initial pro forma for the proposed project Project Development Schedule Submit projected development schedule for the proposed project. Due Diligence City to provide all documents and records it has related to the Property Within 60 Days of Effective Date of ENA Conceptual Development Plan Submittal Developer submits complete conceptual development plan for the Project on the Developable Property that describes and depicts: (1) the location and placement of proposed buildings and (2) the architecture and elevations of the proposed buildings Within 90 Days of Effective Date of ENA Fee Estimates City to prepare fee estimates based on Developer's conceptual development plan for Development lmpact Fees, Planning Entitlement Processing Fees, and Building Permit Fees based on conceptual development plan Appraisal Developer to contract for and submit appraisal of fair market value of Developable Property. Within _120 Days of Effective Date of ENA Revised Proforma and Development Schedule Submit refined proforma and development schedule based on City's estimated fees Lot Line Adjustment City to initiate processing for the Lot Line Adjustment. Within 210 Days of Effective Date of ENA Draft DDA Complete negotiations and draft Disposition and Development Agreement. Final Revisions Finalize revisions to development proposal and all relevant materials Within 240 Days of Effective Date of ENA 3ity Council Hearing Present development proposal and DDA to City Council for final review and approval. M¡LESTONE DESCRIPTION 1603\01us53627 .2 Exhibir C Page2 t603\01uss3627 .2