20-0407_JAMBOREE HOUSING CORPORATION_Exclusive Negotiation AgreementTHE CITY OF SAN.IUAN CAPISTRANO
EXCLUSIVE. NEGOTIATION AGREEMENT
(City Hall Site)
nl
THIS EXCLUSIVE NEGOTIATION AGREEMENT ("Agreement") is dated as of
2020, for reference purposes only. and is entered into by and between die City of San Juan Capistrano. a
public body corporate and politic ("Ciry'T and Jamboree Housing Corporation, a California nonprofit
public benefit corporation ("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 "Party' and, collectively, as the "Parties:' This Agreement is entered into
by the Ponies with reference to the fol lowing recited facts (each, a "Recital"):
RECITALS
A. The City is the owner of that certain real property located at 32400 Pasco Adelanto, San
Juan Capistrano, California (APN 668-101-23) and more specifically described in Exhibit A ("Property"):
and
B. The City has an interest in developing the Property and has accepted development
proposals from interested developers; and
C. The Developer has proposed the redevelopment of the Property to create affordable
housing units and a new City Hall, 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
D. 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 ground lease of the Property and development of the Project on the Property, all
subject to mutually agreeable terns, conditions, covenants, restrictions and agreements to be negotiated
and documented in a future disposition and development agreement ("DDA" T
NOW, THEREFORE, IN VIEW OF THE GOALS AND OBJECTIVES OF THE PARTIES
RELATING TO THE PROJECT AND THE COVENANTS AND PROMISES OF THE CITY AND
THE DEVELOPER SET FORTH IN THIS AGREEMENT, AND FOR GOOD AND VALUABLE
CONSIDERATION, THE SUFFICIENCY AND RECEIPT OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE PARTIES. THE CITY AND THE DEVELOPER AGREE, AS
FOLLOWS:
I. Incorporation of Recitals. The Recitals of fact set forth above are true and correct and
are incorporated into this Agreement, in their entirely. by this reference.
2. Deposits.
(a) Concurrent with the Developer's execution of this Agreement, the Developer
shall pay to the City a deposit in the amount of Twenty -Five Thousand Dollars ($25,000) in immediately
available funds ("Initial 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 certain costs of the City in pursuing the contemplated negotiations with
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the Developer during the Negotiation Period, pursuant to this Agreement. The City shall charge all third
party costs (including reasonable consultant fees and attorney fees associated with review and
implementation of this Agreement or preparing the DDA) against the Initial Deposit (and Extension
Deposit pursuant to Section 2(b) below, as applicable). At the termination of this Agreement, any
remaining funds shall, at the Developer's option, either be applied to the ground lease payment or
returned to the Developer. Developer acknowledges that the initial Deposit (and any Extension Deposit,
pursuant to Section 2(b) below) 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 ($100) 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.
(b) Upon each extension of the Negotiation Period occurring pursuant to the
provisions of Section 3(b), if any, the Developer shall provide to the City an additional deposit of Ten
Thousand Dollars ($10,000) in iminediately available funds on the first day of any extension of the
Negotiation Period occurring pursuant to the provisions of Section 3(b) (each, an "Extension Deposit").
Each Extension Deposit is intended to ensure that the Developer will proceed diligently and in good faith
to fulfill its obligations under this Agreement during any extension of the Negotiation Period, as part of
the consideration for the City's agreement not to negotiate with other persons during any such extension
of the Negotiation Period, and to defray certain costs of the City in pursuing the contemplated
negotiations with the Developer during any such extension of the Negotiation Period, pursuant to this
Agreement. At the termination of this Agreement, any remaining funds from an Extension Deposit shall
be refundable to the Developer as provided in Section 2(a), above.
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 Initial Deposit to the City by the Developer,
in accordance with Section 2(a), (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 one hundred eighty
(180) consecutive calendar days immediately following the Effective Date ("Negotiation Period"), subject
to the limitations of Sections 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 one (1) year from the Effective Date.
(c) This Agreement shall automatically expire and be of no further force or effect at
the end of the Negotiation Period (including any extension of the Negotiation Period in accordance with
Section 3(b)), 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 will terminate on the effective date of such DDA.
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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:
(a) A proposed complete conceptual development plan for the Project on the
Property that describes and depicts: (1) the location and placement of proposed buildings and (2) the
architecture and elevations of the proposed buildings;
(b) Any zoning change or General Plan amendment that is necessary to
accommodate the Project on the Property;
(c) A schedule of anticipated lease rates and unit mix for the Property.
(d) A proposed time schedule and cost estimates for the development of the Project
on the Property;
(e) A proposed financing plan identifying financing sources for all private and public
improvements proposed for the Project; and
(f) A preliminary financial analysis demonstrating the costs and benefits to the City
regarding all construction, maintenance and operations of all proposed public improvements, the costs of
additional or increased levels of public services and any new public revenues anticipated to be generated
by the Project.
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, warranty 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 on Developer's proposal, the Parties have come to a tentative agreement
on the following terms, subject to future negotiation during the Negotiation Period:
(i) The Developer shal I lease the Property from the City for ninety-nine (99)
years.
61147.00000132768524.9
(ii) The Developer shall pay for Griffin Structures to conduct an independent
review of the San .Tuan Capistrano City Hall component's design and cost.
6. 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 6(c).
(b) The Developer shall promptly notify 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 6(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 officers 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(a), above, by sending written notice of termination to the Developer, referencing this Section 6(b).
(c) Notwithstanding anything in this Agreement to the contrary, the Developer may
assign its rights under this Agreement to an Affiliate (as defined in Section 6(d)), such as a single purpose
LLC, 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 Developer shall,
at all times, control any such Affiliate and be responsible and obligated directly to the City for
performance of the Developer's obligations under this Agreement.
(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
direction of the management and policies of an entity, whether by ownership of equity interests, by
contract, or otherwise.
7. 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
61147 00000\32769524.9
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; (1) periodic meetings with City staff, as reasonably scheduled and
requested by City staff during the Negotiation Period, which may be held telephonically, and (2) meetings
of the City governing body, when reasonably requested to do so by City staff.
8. Developer to Pay All Costs and Expenses. 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
and/or design activities, drawings, specifications or other activity or matter relating to the 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 Property 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 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.
9. -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, lease or
redevelopment of the 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 Property or that person's redevelopment of the
Property, without the Developer's prior written consent. Developer acknowledges that City may
receive and retain unsolicited offers regarding redevelopment of the Property, but shall not
entertain any offer or negotiate with the proponent of any such offer during the Negotiation
Period; provided, however, that the City may notify 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 efforts 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.
10. Acknowledgments and Reservations.
(a) The City and the Developer agree that, if this Agreement expires or is terminated
for any reason, or a fixture 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, lease or other disposition of the Property or the
61147.00000\3276 8524.9
redevelopment of the Project or the 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(a) 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 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
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 Property must conform to all
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 Parties agree and acknowledge that the City will cooperate with
Developer in the development of any plans for the Project by using its best efforts to provide any
information in its possession or control that would customarily be furnished to persons requesting
information from the City concerning their respective goals, matters of a similar nature relating to
development plans or as required by law to be disclosed, upon request or otherwise.
(f) 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
Property 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 lease of the Property and redevelopment of the
Project on the 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.
11. 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.
12. City Breach - Limitation on Damages and Remedies.
(a) THE DEVELOPER AND THE CITY ACKNOWLEDGE THAT IT IS
EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN TI4E AMOUNT OF DAMAGES
THAT WOULD BE SUFFERED BY THE DEVELOPER UPON THE BREACH OF THIS
AGREEMENT BY THE CITY. HAVING 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
61147.00000132766524.9
THAT A REASONABLE ESTIMATE OF THE DEVELOPER'S DAMAGES IN SUCH EVENT IS
TWENTY-FIVE THOUSAND DOLLARS ($25,000.00) (THE "LIQUIDATED DAMAGES
AMOUNT"). THEREFORE. UPON THE BREACH OF THIS AGREEMENT BY THE CITY, THE
CITY SHALL PAY THE LIQUIDATED DAMAGES AMOUNT TO THE DEVELOPER AND THIS
AGREEMENT SHALL TERMINATE. RECEIPT OF THE LIQUIDATED DAMAGES AMOUNT
SHALL BE THE DEVELOPER'S SOLE AND EXCLUSIVE REMEDY ARISING FROM ANY
BREACH OF THIS AGREEMENT BY THE CITY.
Initials of Authorized Initi&sulllorind
Representative of City Representative of Developer
(b) THE CITY AND THE DEVELOPER EACH ACKNOWLEDGE AND AGREE
THAT THE CITY WOULD NOT HAVE ENTERED INTO THIS AGREEMENT, 1F IT WERE TO BE
LIABLE TO THE DEVELOPER FOR ANY ADDITIONAL MONETARY DAMAGES, MONETARY
RECOVERY OR ANY REMEDY OTHER THAN TERMINATION OF THIS AGREEMENT AND
PAYMENT OF THE LIQUIDATED DAMAGES AMOUNT. ACCORDINGLY, THE CITY AND THE
DEVELOPER AGREE THAT THE DEVELOPER'S SOLE AND EXCLUSIVE RIGHT AND
REMEDY UPON THE BREACH OF THIS AGREEMENT BY THE CITY IS TO TERMINATE THIS
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 THAT
THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER,
WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY,
(d) CALIFORNIA CIVIL CODE SECTION 1542 NOTWITHSTANDING, IT IS
THE INTENTION OF THE DEVELOPER TO BE BOUND BY THE LIMITATION ON DAMAGES,
RECOVERY AND REMEDIES SET FORTH IN THIS SECTION 12, AND THE DEVELOPER
HEREBY RELEASES ANY AND ALL CLAIMS AGAINST THE CITY FOR ADDITIONAL
MONETARY DAMAGES, MONETARY RECOVERY OR OTHER LEGAL OR EQUITABLE
RELIEF RELATED TO ANY BREACH OF THIS AGREEMENT, EXCEPT RECEIPT OF THE
LIQUIDATED DAMAGES AMOUNT, WHETHER OR NOT ANY SUCH RELEASED CLAIMS
WERE KNOWN OR UNKNOWN TO THE DEVELOPER AS OF THE EFFECTIVE DATE OF THIS
AGREEMENT. THE DEVELOPER SPECIFICALLY WAIVES THE BENEFITS OF CALIFORNIA
CIVIL CODE SECTION 1542 AND ALL OTHER STATUTES AND JUDICIAL DECISIONS
(WHETHER STATE, OR FEDERAL) OF SIMILAR EFFECT WITH REGARD TO THE
LIMITATIONS ON DAMAGES AND REMEDIES AND WAIVERS OF ANY SUCH DAMAGES
AND REMEDIES CONTAINED 1N THIS SECTION 12,
61147.00000\327655240
Initials oTAuthorized Initis of A orized
Representative of City Rcpre rve of Developer
13. Developer Breach — Limitation on Damages and Remedies.
(a) THE DEVELOPER AND THE CITY ACKNOWLEDGE THAT IT 1S
EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN THE AMOUNT OF
DAMAGES THAT WOULD BE SUFFERED BY THE CITY UPON THE BREACH OF THIS
AGREEMENT BY THE DEVELOPER. HAVING MADE DILIGENT BUT
UNSUCCESSFUL ATTEMPTS TO ASCERTAIN THE ACTUAL DAMAGES THE CITY
WOULD SUFFER UPON THE BREACH OF THIS AGREEMENT BY THE DEVELOPER,
THE DEVELOPER AND THE CITY AGREE THAT A REASONABLE ESTIMATE OF THE
CITY'S DAMAGES IN SUCH EVENT IS TWENTY-FIVE THOUSAND DOLLARS
($25,000.00) (THE "LIQUIDATED DAMAGES AMOUNT"). THEREFORE, UPON THE
BREACH OF THIS AGREEMENT BY THE DEVELOPER, THE DEVELOPER SHALL PAY
THE LIQUIDATED DAMAGES AMOUNT TO THE CITY AND THIS AGREEMENT
SHALL TERMINATE. RECEIPT OF THE LIQUIDATED DAMAGES AMOUNT SHALL BE
THE CITY'S SOLE AND EXCLUSIVE REMEDY ARISING 1 fO ANY BREACH OF THIS
AGREEMENT BY THE DEVELOPER. r ,
Initials of Authorized Initials di"gUthorized
Representative of City Representative of Developer
(b) THE CITY AND THE DEVELOPER EACH ACKNOWLEDGE AND AGREE
THAT THE DEVELOPER WOULD NOT HAVE ENTERED INTO THIS AGREEMENT, IF IT WERE
TO BE LIABLE TO THE CITY FOR ANY ADDITIONAL MONETARY DAMAGES, MONETARY
RECOVERY OR ANY REMEDY OTHER THAN TERMINATION OF THIS AGREEMENT AND
PAYMENT OF THE LIQUIDATED DAMAGES AMOUNT. ACCORDINGLY, THE CITY AND THE
DEVELOPER AGREE THAT THE CITY'S SOLE AND EXCLUSIVE RIGHT AND REMEDY UPON
THE BREACH OF THIS AGREEMENT BY THE DEVELOPER IS TO TERMINATE THIS
AGREEMENT AND RECEIVE THE LIQUIDATED DAMAGES AMOUNT.
(c) THE CITY 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 THAT
THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR
SUSPECT TO EXIST 1N HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER,
WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.
6114 7- 00000\32768524.9
(d) CALIFORNIA CIVIL CODE SECTION 1542 NO'T'WITHSTANDING, IT IS
THE INTENTION OF THE CITY TO BE BOUND BY THE LIMITATION ON DAMAGES,
RECOVERY AND REMEDIES SET FORTH 1N THIS SECTION 12, AND THE CITY HEREBY
RELEASES ANY AND ALL CLAIMS AGAINST THE DEVELOPER FOR ADDITIONAL
MONETARY DAMAGES, MONETARY RECOVERY OR OTHER LEGAL OR EQUITABLE
RELIEF RELATED TO ANY BREACH OF THIS AGREEMENT, EXCEPT RECEIPT OF THE
LIQUIDATED DAMAGES AMOUNT, WHETHER OR NOT ANY SUCH RELEASED CLAIMS
WERE KNOWN OR UNKNOWN TO THE CITY AS OF THE EFFECTIVE DATE OF THIS
AGREEMENT. THE CITY SPECIFICALLY WAIVES THE BENEFITS OF CALIFORNIA CIVIL
CODE SECTION 1542 AND ALL OTHER STATUTES AND JUDICIAL DECISIONS (WHETHER
STATE OR FEDERAL) OF SIMILAR EFFECT WITH REGARD TO THE LIMITATIONS ON
DAMAGES AND REMEDIES AND WAIVERS OFZSUfAMAGES AND REMEDIES
CONTAINED IN THIS SECTION 12,
Initialsof Authorized zed
Representative of City Representative of Developer
14. Default.
(a) Failure or delay by either Party to perform any material term or provision of this
Agreement shall constitute a default under this Agreement. If the Party who is receives notice of a default
from the other Party sures, corrects or remedies the alleged default ",!thin fifteen (15) calendar days after
receipt of written notice by the other Party specifying such default. such Patty shall not be in default
under this Agreement. The notice and cure period provided in the immediately preceding sentence shall
not, under any circumstances, extend the Negotiation Period. If there are less than fifteen (15) days
remaining in the Negotiation Period, the cure period allowed pursuant to this Section 14(a) shall be
automatically reduced to the number of days remaining in the Negotiation Period. Nothing in this
subparagraph (a) prohibits the parties fi-om extending the Negotiation Period by mutual
agreement in accordance with subparagraph 3(b) above.
(b) The Party claiming that a default has occurred shall give written notice of default
to the Party claimed to be in default, specifying the alleged default. Delay in giving such notice shall not
constitute a waiver of any default nor shall it change the time of default. However, the injured Party shall
have no right to exercise any remedy for a default under this Agreement, without first delivering written
notice of the default and allowing the applicable period to cure any such default as set forth in Section
14(a).
(c) Any failure or delay by a Party in asserting any of its rights or remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
(d) If a default of either Party remains uncured for more than fifteen (15) calendar
days following receipt of written notice of such default, a "breach" of this Agreement by the defaulting
Party shall be deemed to have occurred. In the event of a breach of this Agreement, the sole and
exclusive remedy of the Party who is not in default shall be to terminate this Agreement 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 entitled to receive the Liquidated Damages Amount.
61147 00000\32768524 9
l 5. Compliance with Law. The Developer acknowledges that any future DDA, if approved
by the governing body of the City, will require the 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, environmental laws, safety laws and federal and state labor and wage laws.
16. Press Releases. The Developer agrees to obtain the approval of the City Manager or his
or her designee or successor in function of any press releases Developer may propose relating to the lease
or redevelopment of the Property or negotiation of a DDA with the City, prior to publication. The rights
and obligations in this provision shall not apply to leasing and marketing brochures and/or information
distributed by email or placed online on a brokerage website or real estate website such as LoopNet.com.
17, Notice. All notices required under this Agreement shall be presented in person, by
nationally recognized overnight delivery service or by facsimile and confirmed by first class certified or
registered United States Mail, with return receipt requested, to the address and/or fax number for the Party
set forth in this Section 17. Notice shall be deemed confirmed by United States Mail effective the third
(3rd) business 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 notifying the other Party in writing. Delivery of notices to
courtesy copy recipients shall not be required for valid notice to a Party
TO DEVELOPER: Jamboree Housing Corporation
17701 Cowan Ave., Suite 200
Irvine, CA 92614
Attn: Roger Kinoshita
Email: rkil>oshita 2djambo+reehousin1 coin
TO CITY: Benjamin Siegel, City Manager
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Ernail: Bsiegel@sanjuancapistrano.org
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 party any money or other
consideration for obtaining this Agreement. Third parties, for the purposes of this Section 18, 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.
21. No Third -Party Beneficiaries. Nothing in this Agreement is intended to benefit any
person or entity other than the City or the Developer.
61147.00000\32768524.9
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.
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 modification 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' Fees. 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. For the 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.
25. Enforced Delay. No Party shall be deemed in default of its obligations under this
Agreement where a delay or default is due to an act of God, natural disaster, accident, breakage or failure
of equipment, enactment of conflicting federal or state laws or regulations, third -party litigation,
administrative action or any related statute, strikes, lockouts or other labor disturbances or disputes of any
character, interruption of services by suppliers thereof, unavailability of materials or labor, unforeseeable
and severe economic conditions, rationing or restrictions on the use of utilities or public transportation
whether due to energy shortages or other causes, war, civil disobedience, riot, or by any other severe and
unforeseeable occurrence that is beyond the control of that party (collectively, "Enforced Delay").
Performance by a party of its obligations shall be excused during, and extended for a period of time equal
to, the period (on a day -for -day basis) for which the cause of such Enforced Delay is in effect.
[Signatures on following page]
61147 00000\32768524.9
Tut, curt' OF SAN .MAN CAPISTRANO
EXCLUSIVE NEGOTIATION AGREEMENT
(City Hail Site)
IN WITNESS WHEREOF, the City and the Developer have executed this Agreement on the
dates indicated next to each of the signatures of their authorized representatives, as appear below.
Dated:
I )alvd: 1 7-0
ATTEST:
13y:Wr
_f�.Ci erk
APPROVED AS TO FORM:
BEST BEST & KRIEGER, LLP
By: __ -
City Attorney
61147 00000\32768524 9
DEVELOPER:
JAMBOREE HOUSING CORPORATION,
a California nonpr>iit )uhlic benefit corporation
By:
Name:_�� ..5 t—_1�1A.0_ —_
CITY:
THE CITY OF SAN .ItJ CAPISTRANO
Its:
EXHIBIT "A"
TO
EXCLUSIVE NEGOTIATION AGREEMENT
Property Legal Description
2,5 Acre Portion of Assessor's Parcel Number 668-101-23 Described as N TR 103 BLK LOT 60
EXHIBIT A
61147 00000\32768524.9
EXHIBIT "B"
TO
EXCLUSIVE NEGOTIATION AGREEMENT
Project Description
[To Be Attached Behind This Cover Page}
61147,00000132768524.9
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EXHIBIT "C"
TO
EXCLUSIVE NEGOTIATION AGREEMENT
Milestone Schedule
Within 60 Days of Effective Date ( ) of ENA
Initial Pro Forma Submit initial pro forma for the proposed development.
Project Development Submit projected construction schedule for the proposed development.
Schedule
Due Diligence Provide written determination of property's physical suitability for development,
taking into account relevant regulatory and environmental conditions.
Full Project Submittal Submit site plans and elevations. Submit all relevant applications and fees.
Plan Review J Staff reviews plans for compliance with applicable codes and regulations; letter
prepared by Project Manager summarizing staff comments is sent to developer,
Within 120 Days of Effective Date of ENA
Revised Site Plans and Submit revised site plans and elevations
Elevations
2"d Plan Review Staff reviews plans for compliance with applicable codes and regulations; letter
prepared by Project Manager summarizing staff comments is sent to developer,
Revised Proforma andSubmit refined proforma and development schedule based on revised site plans
Development Schedule I and elevations.
Market Study Submit a market study containing a forecast of regional and local real estate
market conditions and anticipated performance of proposed product types.
Development Partners Submit letter identifying investment partners. I
and Structure J _
Submit letter identifying potential lenders and a plan for Developer to obtain financing
Funding Partners and
Structure
Draft DDA
Final Revisions
;City Council Hearing
61 147 00000132768524 9
Complete negotiations and draft Disposition and Development Agreement.
F'inallze revisions to development proposal and all relevant meteffals
Present development proposal and DDA to City Council for final
review and approval.