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07-1113_MAMMOTH EQUITIES, LLC_Tolling Agreement• TOLLING AGREEMENT This Tolling Agreement ("Agreement') is made this 13`h day of November, 2007 (the "Effective Date"), by and between Mammoth Equities LLC and its affiliated entities, including without limitation Mammoth Equities, LC, Mammoth San Juan Capistrano, LLC, Mammoth Equities Construction Group, Mammoth Equities Property Management Group, Mammoth Equities Capital Group, Mammoth Realty Exchange, and each of their respective affiliates and subsidiaries, (collectively, "Mammoth"), and the City of San Juan Capistrano (the "City"). RECITALS A. Certain disputes and disagreements have arisen between Mammoth and the City (together, the "Parties") concerning signage for the Mammoth Professional Park and Resolution No. 07-08-21-04, entitled "A Resolution of the City Council of San Juan Capistrano, California Upholding the Appeal and Reversing Approval of a Sign Permit for Signs for the Mammoth Professional Buildings on Rancho Viejo Road (APN 650-011-32) (Mammoth Equities)," adopted on August 21, 2007 (hereinafter, the "Disputes"); B. Mammoth has determined that it may wish to assert certain causes of action or claims against the City in connection with the Disputes. The City denies that any such causes of action or claims exist or will exist, and also denies that Mammoth has been damaged in any sum or at all. Further, the parties agree that the statute of limitation established by California Civil Code ("C.C.P.") section 1094.6 will expire as of November 20, 2007; C. The Parties are presently engaged in useful discussions concerning the Disputes. Accordingly, to permit further such discussions and avoid the necessity of immediately instituting legal proceedings, the Parties desire to toll and suspend, against the other, all applicable statutes of limitations and other defenses to which the passage of time is relevant. AGREEMENT In consideration of the mutual promises stated in this Agreement, the Parties agree as follows: 1. The Parties agree that the statute of limitations period applicable to the matter described herein shall be extended to and including January 18, 2008. 2. Except as specifically provided herein, this Agreement shall not be deemed to constitute a waiver of any claim, right or defense of any party hereto as against any other party. 3. Nothing contained in this Agreement shall be deemed or construed as evidence of any liability, an admission of any wrongdoing, or any representation or warranty whatsoever on the part of any party hereto. 4. The Parties to this Agreement, and their respective legal counsel agree to keep it confidential and shall not disclose its existence or the contents thereof, and this Agreement shall LA1689613.3 207914-10014 0 0 not be offered or received into evidence nor shall it be admissible in any trial or civil proceeding, except as may be required in connection with its enforcement. 5. This Agreement comprises the entire agreement of the Parties with respect to the tolling of all applicable statutes of limitation and other defenses to which the passage of time is relevant. 6. This Agreement may be extended, modified, amended, or supplemented only by a written instrument signed by all of the Parties. 7. This Agreement may be executed in counterparts, which taken together shall constitute one agreement. Facsimile signatures shall be effective upon transmission and the received facsimile copy shall be treated as though it were an original bearing original signatures. 8. This Agreement shall be construed under and according to the laws of the State of California. 9. All parties have contributed to the selection of the words used in this Agreement, and none of its language may be interpreted against any party as the cause of any uncertainty. 10. This Agreement shall be binding upon any successor -in -interest or assign of a party. Nothing in this paragraph shall create any rights enforceable by any person not a party to this Agreement, except for the rights of the successors in -interest and assigns of each party to this Agreement. 11. All notices given or permitted to be given under this Agreement shall be addressed as follows: If to the Citv Office of the City Attorney City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Facsimile: (949) 493-1053 If to Mammoth: Linda A. Bernhardt Managing Director Land Use and Regulatory Affairs Loeb & Loeb LLP 10100 Santa Monica Blvd., Suite 2200 Los Angeles, CA 90067 Facsimile: (310) 282-2200 12. The recitals are made part of this Agreement LA1689613.3 207914-10014 13. The persons executing this Agreement represent and warrant that each has the express authority, right and power to execute this Agreement and to bind the party on whose behalf each signs. Appr*vea'foo John City LA1689613.3 207914-10014 CITY OF SAN JUAN CAPISTRANO am llevato, Mayor Attest: v L-� M ga t R. Monahan, City Clerk MAMMOTH EQUITIES, LLC, MAMMOTH EQUITIES, LC, MAMMOTH SAN JUAN CAPISTRANO, LLC, MAMMOTH EQUITIES CONSTRUCTION GROUP, MAMMOTH EQUITIES PROPERTY MANAGEMENT GROUP, MAMMOTH EQUITIES CAPITAL GROUP, MAMMOTH REALTY EXCHANGE dt !I , By: MICHAEL SITAR Their: Executive Vice President 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949)493-1053 FAX www.sanjuancapistrano. org TRANSMITTAL Nice]; Loeb & Loeb 10100 Santa Monica Blvd, Ste 2200 Los Angeles, CA 90067 Attention: Anne M. Moreno �j IIOIIIIIRI ' Esumn9 � I961 1776 FROM: Meg Monahan, MMC — City Clerk (949) 443-6308 RE: Tolling agreement — Mammoth Equities LLC Enclosed: MEMBERS OF THE CITY COUNCIL SAMALLEVATO THOMAS W. HRIBAR MARK NEILSON JOE SOTO DR. LONDRES USO Certified copy of the Tolling agreement as approved by the City Council on November 6, 2007 — for your records. If you have questions regarding the agreement, please contact John Shaw, City Attorney, (949)443-6312 CC: John Shaw, City Attorney/Omar Sandoval, Deputy City Attorney San Juan Capistrano: Preserving the Past to Enhance the Future " PnMetl on 100% recycled paper 11 TOLLING AGREEMENT • CERTIFIED COPY This Tolling Agreement ("Agreement') is made this 13'h day of November, 2007 (the "Effective Date"), by and between Mammoth Equities LLC and its affiliated entities, including without limitation Mammoth Equities, LC, Mammoth San Juan Capistrano, LLC, Mammoth Equities Construction Group, Mammoth Equities Property Management Group, Mammoth Equities Capital Group, Mammoth Realty Exchange, and each of their respective affiliates and subsidiaries, (collectively, "Mammoth'), and the City of San Juan Capistrano (the "City"). RECITALS A. Certain disputes and disagreements have arisen between Mammoth and the City (together, the "Parties") concerning signage for the Mammoth Professional Park and Resolution No. 07-08-21-04, entitled "A Resolution of the City Council of San Juan Capistrano, California Upholding the Appeal and Reversing Approval of a Sign Permit for Signs for the Mammoth Professional Buildings on Rancho Viejo Road (APN 650-011-32) (Mammoth Equities)," adopted on August 21, 2007 (hereinafter, the "Disputes"); B. Mammoth has determined that it may wish to assert certain causes of action or claims against the City in connection with the Disputes. The City denies that any such causes of action or claims exist or will exist, and also denies that Mammoth has been damaged in any sum or at all. Further, the parties agree that the statute of limitation established by California Civil Code ("C.C.P.") section 1094.6 will expire as of November 20, 2007; C. The Parties are presently engaged in useful discussions concerning the Disputes. Accordingly, to permit further such discussions and avoid the necessity of immediately instituting legal proceedings, the Parties desire to toll and suspend, against the other, all applicable statutes of limitations and other defenses to which the passage of time is relevant. AGREEMENT In consideration of the mutual promises stated in this Agreement, the Parties agree as follows: 1. The Parties agree that the statute of limitations period applicable to the matter described herein shall be extended to and including January 18, 2008. 2. Except as specifically provided herein, this Agreement shall not be deemed to constitute a waiver of any claim, right or defense of any party hereto as against any other party. 3. Nothing contained in this Agreement shall be deemed or construed as evidence of any liability, an admission of any wrongdoing, or any representation or warranty whatsoever on the part of any party hereto. 4. The Parties to this Agreement, and their respective legal counsel agree to keep it confidential and shall not disclose its existence or the contents thereof, and this Agreement shall LA 1689613.3 207914-10014 0 0 not be offered or received into evidence nor shall it be admissible in any trial or civil proceeding, except as may be required in connection with its enforcement. 5. This Agreement comprises the entire agreement of the Parties with respect to the tolling of all applicable statutes of limitation and other defenses to which the passage of time is relevant. 6. This Agreement may be extended, modified, amended, or supplemented only by a written instrument signed by all of the Parties. 7. This Agreement may be executed in counterparts, which taken together shall constitute one agreement. Facsimile signatures shall be effective upon transmission and the received facsimile copy shall be treated as though it were an original bearing original signatures. 8. This Agreement shall be construed under and according to the laws of the State of California. 9. All parties have contributed to the selection of the words used in this Agreement, and none of its language may be interpreted against any party as the cause of any uncertainty. 10. This Agreement shall be binding upon any successor -in -interest or assign of a party. Nothing in this paragraph shall create any rights enforceable by any person not a party to this Agreement, except for the rights of the successors in -interest and assigns of each party to this Agreement. 11. All notices given or permitted to be given under this Agreement shall be addressed as follows: If to the City: Office of the City Attorney City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Facsimile: (949) 493-1053 If to Mammoth: Linda A. Bernhardt Managing Director Land Use and Regulatory Affairs Loeb & Loeb LLP 10100 Santa Monica Blvd., Suite 2200 Los Angeles, CA 90067 Facsimile: (310) 282-2200 12. The recitals are made part of this Agreement. LA1689613.3 207914-10014 L 1-1 �1 ►�J 13. The persons executing this Agreement represent and warrant that each has the express authority, right and power to execute this Agreement and to bind the party on whose behalf each signs. Appr ve a, fm John S , City ttorney LA1689613.3 207914-10014 CITY OF • 4am• -Allevato, Mayor Attest: ^ v M ga t R. Monahan, City Clerk MAMMOTH EQUITIES, LLC, MAMMOTH EQUITIES, LC, MAMMOTH SAN JUAN CAPISTRANO, LLC, MAMMOTH EQUITIES CONSTRUCTION GROUP, MAMMOTH EQUITIES PROPERTY MANAGEMENT GROUP, MAMMOTH EQUITIES CAPITAL GROUP, MAMMOTH REALTY EXCHANGE By: NffCHAEL SITAR Their: Executive Vice President The foregoing inshwoonis a carni of the aipnd oaf0o in oris office. Attest• 20 /=`)-'-L�— City Clerk of the City of San Je C ' of OMIX ..._.._.,rte., 0 0 11/6/2007 AGENDA REPORT TO: Dave Adams, City Manager ID FROM: John R Shaw, City Attorney SUBJECT: Consideration of Approval of Tolling Agreement RECOMMENDATION By motion, approve the attached tolling agreement with Mammoth Equities LLC. BACKGROUND AND FACTUAL SITUATION Mammoth Equities has requested that the City enter into the attached tolling agreement with it for the purpose of staying the running of a ninety day statute of limitations period with respect to the City Council's prior denial of Mammoth's previous sign application. On August 21, 2007, the City Council adopted Resolution # 07-08-21-04 formally denying Mammoth's previous application for 6 separate sign permits. Under state law, Mammoth has ninety days,to file a legal action to contest the validity of the City Council's denial action. The 90 day statute of limitations period runs out on November 19, 2007, unless the City Council and Mammoth agree to the staying of the running of the 90 day statutory period for an additional period of time. Mammoth proposes that in light of Mammoth's newly submitted sign application, recently acted upon by the Planning Commission, the statute of limitations period be extended to February 18, 2008. Appeals have now been filed with respect to the Planning Commission conditional approval of the new Mammoth sign application, and those appeals have been set by the City Clerk to be heard by the City Council on November 20, 2007. Therefore, the factual situation can be summarized as follows: 0 0 (1) To date, Mammoth has not elected to file a lawsuit to challenge the City Council's 8/21/2007 denial of Mammoth's requested sign permits. The statute of limitations period to do so runs out on November 19. (2) Mammoth, as an alternative to filing litigation, has filed a new sign application which was conditionally approved by the Planning Commission on October 9, 2007. Appeals were filed on that conditional approval and those appeals will be heard by the City Council on November 20. (3) The effect of entering into the tolling agreement would be to extend the statute of limitations for the first denial of the Mammoth sign application into February 2008. [See section 1 of Agreement] The benefit of the extension to the parties will be that no litigation activity need occur in the near term at least until after the City Council makes a final land use decision on the second sign application. This will save some time and monetary resources for the City in the near term. Based upon the above factual situation, it is recommended that the tolling agreement be approved at this time. RECOMMENDATION By motion, approve the attached tolling agreement with Mammoth Equities LLC. s c lly Submitted, J R. haw, i Attorney Attachment: Agreement 0 0 TOLLING AGREEMENT This Tolling Agreement ("Agreement") is made this 6`h day of November, 2007 (the "Effective Date"), by and between Mammoth Equities LLC and its affiliated entities, including without limitation Mammoth Equities, LC, Mammoth San Juan Capistrano, LLC, Mammoth Equities Construction Group, Mammoth Equities Property Management Group, Mammoth Equities Capital Group, Mammoth Realty Exchange, and each of their respective affiliates and subsidiaries, (collectively, "Mammoth"), and the City of San Juan Capistrano (the "City"). RECITALS A. Certain disputes and disagreements have arisen between Mammoth and the City (together, the "Parties") concerning signage for the Mammoth Professional Park and Resolution No. 07-08-21-04, entitled "A Resolution of the City Council of San Juan Capistrano, California Upholding the Appeal and Reversing Approval of a Sign Permit for Signs for the Mammoth Professional Buildings on Rancho Viejo Road (APN 650-011-32) (Mammoth Equities)," adopted on August 21, 2007 (hereinafter, the "Disputes"); B. Mammoth has determined that it may wish to assert certain causes of action or claims against the City in connection with the Disputes. The City denies that any such causes of action or claims exist or will exist, and also denies that Mammoth has been damaged in any sum or at all. Further, the parties agree that the statute of limitation established by California Civil Code ("C.C.P.") section 1094.6 will expire as of November 20, 2007; C. The Parties are presently engaged in useful discussions concerning the Disputes. Accordingly, to permit further such discussions and avoid the necessity of immediately instituting legal proceedings, the Parties desire to toll and suspend, against the other, all applicable statutes of limitations and other defenses to which the passage of time is relevant. AGREEMENT In consideration of the mutual promises stated in this Agreement, the Parties agree as follows: 1. The Parties agree that the statute of limitations period applicable to the matter described herein shall be extended to and including February 18, 2008. 2. Except as specifically provided herein, this Agreement shall not be deemed to constitute a waiver of any claim, right or defense of any party hereto as against any other party. 3. Nothing contained in this Agreement shall be deemed or construed as evidence of any liability, an admission of any wrongdoing, or any representation or warranty whatsoever on the part of any party hereto. 4. The Parties to this Agreement, and their respective legal counsel agree to keep it confidential and shall not disclose its existence or the contents thereof, and this Agreement shall LA 1689613.2 207914-10014 not be offered or received into evidence nor shall it be admissible in any trial or civil proceeding, except as may be required in connection with its enforcement. 5. This Agreement comprises the entire agreement of the Parties with respect to the tolling of all applicable statutes of limitation and other defenses to which the passage of time is relevant. 6. This Agreement may be extended, modified, amended, or supplemented only by a written instrument signed by all of the Parties. 7. This Agreement may be executed in counterparts, which taken together shall constitute one agreement. Facsimile signatures shall be effective upon transmission and the received facsimile copy shall be treated as though it were an original bearing original signatures. 8. This Agreement shall be construed under and according to the laws of the State of California. 9. All parties have contributed to the selection of the words used in this Agreement, and none of its language may be interpreted against any party as the cause of any uncertainty. 10. This Agreement shall be binding upon any successor -in -interest or assign of a party. Nothing in this paragraph shall create any rights enforceable by any person not a party to this Agreement, except for the rights of the successors in -interest and assigns of each party to this Agreement. 11. All notices given or permitted to be given under this Agreement shall be addressed as follows: If to the City Office of the City Attorney City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Facsimile: (949) 493-1053 If to Mammoth: Linda A. Bernhardt Managing Director Land Use and Regulatory Affairs Loeb & Loeb LLP 10100 Santa Monica Blvd., Suite 2200 Los Angeles, CA 90067 Facsimile: (310) 282-2200 12. The recitals are made part of this Agreement LA1689613.2 207914-10014 0 13. The persons executing this Agreement represent and warrant that each has the express authority, right and power to execute this Agreement and to bind the party on whose behalf each signs. CITY OF SAN JUAN CAPISTRANO Sam Allevato, Mayor Approved as form: John Shaw, City Attorney MAMMOTH EQUITIES, LLC, MAMMOTH EQUITIES, LC, MAMMOTH SAN JUAN CAPISTRANO, LLC, MAMMOTH EQUITIES CONSTRUCTION GROUP, MAMMOTH EQUITIES PROPERTY MANAGEMENT GROUP, MAMMOTH EQUITIES CAPITAL GROUP, MAMMOTH REALTY EXCHANGE By: MICHAEL SITZER Their: Executive Vice President LA 1689613.2 207914-10014