1991-0630_ROMER_Settlement Agreement & Release0 Revised 6/07/91
SETTLEMENT AGREEMENT AND RELEASE
THIS SETTLEMENT AGREEMENT AND RELEASE ("Agreement") is
made and entered into in orange County, California, as of
June 30 , 1991, by and between Francis C. Romer ("Romer"),
Raymundo Becerra ("Becerra"), the City of San Juan Capistrano
("City"), Coastside Financial ("Coastside") and Capistrano
Collection Associates, Ltd., Scott W. Wellman, Jeff Bazyler,
Michael J. Bazyler (collectively, "Capistrano") with
reference to and based upon the following:
R E C I T A L S
A. Romer, the City and Coastside are parties to a
lawsuit entitled Francis Charles Romer v. Richard Hart
Gresham, et al., O.C.S.C. Case No. 626361, Appellate No.
G010404 (the "Romer Action"). The Romer Action is currently
pending in the Court of Appeal for the Fourth Appellate
District, Division Three, pursuant to an appeal taken by
Romer.
B. Capistrano, Romer and Becerra are parties to a
lawsuit entitled Capistrano Collections Associates, LTD. v.
Francis C. Romer, et al., O.C.S.C. Case No. 65 41 26
("Capistrano Action"), which is currently pending in the
Orange County Superior Court before the Honorable Richard O.
Frazee, Sr. The Capistrano Action concerns the enforcement
of a construction encroachment agreement entered into by and
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between Capistrano Collection Associates, Ltd. and Romer
dated February 1, 1991 ("Encroachment Agreement").
C. Certain of the parties herein are also parties to a
lawsuit entitled Scott W. Wellman, et al. v. Francis C.
Romer, et al., O.C.S.C. Case No. 57 18 62 ("Wellman Action")
which is currently pending in the orange County Superior
Court before the Honorable James P. Gray. The Wellman Action
is not being settled by this Agreement.
D. The City has disclosed that it believes that
Coastside's construction of Access Easement as described
below may not have been done consistent with City's
discretionary approval ("Discretionary Approval").
E. Based on the terms of Paragraph 1 hereof and upon
further review of the construction to date as it relates to
compliance with the conditions of approval, the City hereby
represents and warrants to the best of its knowledge that all
construction done to date has been consistent with the
Discretionary Approval and, to the best of the City's
knowledge, there is no claim by the City against Coastside
arising from or relating to Coastside's construction with
respect to its compliance with the Discretionary Approval.
Except as to consistency with the Discretionary Approvals,
nothing herein shall be construed as a waiver or release by
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the City of Coastside's compliance with the Uniform Building
Code.
F. The parties believe that it would be in their best
interest to settle their differences (except the Wellman
Action) on the terms specified in this Agreement.
NOW, THEREFORE, in consideration of the above Recitals
and the conditions and terms contained herein, it is mutually
agreed as follows:
1. Completion of Easements. As a condition of the
City's approval of certain development by Coastside on the
real property described as Assessors Parcel No. 666-241-03
("Coastside Property"), the City required that the Coastside
provide vehicular and pedestrian access easements ("On -Site
Access") to Assessors Parcel Nos. 666-241-02 and 666-241-05
on the Coastside Property. The parties have disagreed as to
whose obligation it is to pay for or cause the construction
of such On -Site Access. However, upon this Agreement
becoming final as set forth in Paragraph 5 below, all
portions of said On -Site Access on the Coastside Property
will be constructed, including all necessary grading and
paving, at no cost to Romer in accordance with the time frame
set forth herein. All such costs shall be borne exclusively
by the City or Coastside. The City and Coastside agree that
the City shall pay the first $20,000.00 of said costs, and
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Coastside shall pay all costs in excess of the first
$20,000,00. The construction of the On -Site Access shall be
commenced concurrently with the date Romer or his successor -
in -interest begins the rough grading necessary for
development of any portion of the Romer Property, provided
that the City and Coastside may elect to commence
construction sooner. The cost of any grading required on the
Romer Property necessary to complete the On-site Access shall
be borne exclusively by Romer or his successor -in -interest.
Romer, or his successor -in -interest, shall, if required by
the City, complete any grading necessary on the Romer
Property in coordination with, and as required for, the
construction of the On -Site Access.
In the event that the City does not require either or
both of the On -Site Access as a condition of development
approval, Romer at his sole discretion may elect to not
utilize either of the On -Site Access not required by the
City. Upon such election City and Coastside shall have no
obligation to construct the On -Site Access not utilized and
Romer shall have no obligation to perform the grading
required on the Romer Property in connection with the On -Site
Access not utilized. In the event that one of the On -Site
Access is not constructed the City's obligation under this
Paragraph 1 shall be reduced to $10,000.
2. Construction of Ortega Highway Access. Upon this
Agreement becoming final as set forth in Paragraph 5 below,
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the City shall construct at no cost to Romer, a right turn in
and right turn out access from Ortega Highway into Assessors
Parcel No. 666-241-02 and a deceleration lane and right turn
lane for the approach thereto in accordance with the time
frame set forth herein ("Ortega Access"). The Ortega Access
shall be at the location and constructed in a manner
consistent with the final approved site plan for the Romer
Property and with Caltrans' encroachment permit. The City
will be the applicant for this work and will apply to
Caltrans for all necessary permits. The City's obtainment of
any necessary permits for the Ortega Access, will be a
condition for this Agreement to become final as set forth in
Paragraph 5 below. The parties acknowledge that the City's
inability to obtain the encroachment permit will not
constitute a breach of this Agreement. The Ortega Access
shall be commenced concurrently with the date Romer or his
successor -in -interest begins the rough grading necessary for
development of any portion of the Romer Property; provided
that the City may elect to commence construction sooner;
provided further that the City's obligation under this
Paragraph shall terminate if the City's obligation to
commence construction has not arisen on or before December
31, 1997.
3. Del Obispo Street Improvements. With regard to
Romer's property at 32101 Del Obispo Street in San Juan
Capistrano, Romer shall irrevocably offer to dedicate an
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easement to the City for the street improvements on Del
Obispo Street. Romer will not have any obligation to fund
said street improvements including any related landscaping
and irrigation within the dedicated right of way. Provided
that nothing herein shall be construed to require City to
install said street improvements at any particular time.
Said offer shall be made no later than 15 business days after
the date this Agreement becomes final, as set forth in
Paragraph 5 below. The irrevocable offer to dedicate shall
be in a form approved by the City, consistent with its
standard dedication form. The legal description of the
easement shall be provided to Romer. At his option, Romer
may make this irrevocable offer to dedicate prior to this
Agreement becoming final as provided in Paragraph 5 below.
If he does so, the rights and obligations of the parties
regarding this paragraph will be effective even if the
Agreement is otherwise terminated.
4. Dismissal of Romer Action. Romer shall dismiss the
appeal in the Romer Action within ten days of this Agreement
becoming final, as set forth in Paragraph 5 below.
5. Finality of Settlement. This Agreement shall become
final if and on the date that all of the following items have
been completed:
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(a) The City has obtained all necessary permits
from Caltrans for the construction of the access from Ortega
Highway into Assessors Parcel No. 666-2241-02 as set forth in
Paragraph 2.
(b) Romer or his successor -in -interest obtains all
necessary discretionary entitlements/permits from the City to
develop Assessors Parcel Nos. 666-241-01, 666-241-02, 666-
241-04 or 666-241-05 in the following manner:
(i) The approved land uses shall be a mixed
use commercial development, including retail and office uses;
(ii) The approved land use intensity for the
entire development site shall permit a net floor area ratio
of at least 55%, provided it conforms to all other applicable
provisions of Comprehensive Development Plan 78-1 (Ortega
Highway Planned Community) and with Title 9 (Land Use) of the
San Juan Capistrano Municipal Code;
(iii) The approvals shall not be conditioned
upon Romer or his successor -in -interest being responsible for
any offsite improvements except for fees, deposits and bonds
pursuant to Sections 9-2.316 and 9-2.317 of Title 9, Chapter
2, Article 3 of the San Juan Capistrano Municipal Code, where
normally applicable City wide.
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(iv) The parking requirements imposed on the
project shall not exceed those imposed as of the date the
Agreement is executed in the City's Zoning Code.
(v) At his option, Romer may waive any of the
requirements set forth in subparagraphs (i) -(iv) above, in
which case said requirement will not be a prerequisite to
this Agreement becoming final.
6. Processing of Application/Mutual Cooperation. The
parties agree to cooperate with each other in good faith and
to use all reasonable diligence in undertaking the acts
necessary to finalize this Agreement. Within two business
days of the execution of this Agreement, the City agrees to
commence the necessary steps to obtain the Caltrans
encroachment permit required pursuant to Paragraph 1 herein.
Thereafter, the City shall use all reasonable diligence to
pursue the permit until obtained. once Caltrans issues a
conceptual approval of the permit or issues the permit itself
(if no conceptual approval is issued), Romer, or his
successor -in -interest, shall submit his entitlement
applications and supporting documentation within 180 days.
The City agrees to process Romer's (or his successor -in -
interest's) application for development in good faith and
within all applicable statutory time periods. The parties
acknowledge that the City retains its legislative discretion
regarding the application for development of the Romer
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Property and has not waived that discretion by entering into
this Agreement, and is not in breach hereof if it disapproves
any of the approvals required in Paragraph 5 hereof. The
parties further acknowledge that the terms hereof apply only
to the properties described herein and the City retains the
right to condition approvals of development of any other
property owned by Romer and/or Coastside within the City in
accordance with the laws and not this Settlement Agreement.
7. Assignment. The parties hereby agree that the
rights, benefits and obligations set forth in the Agreement
and each of its terms shall be assignable and shall inure to
the benefit of and be binding on the heirs, personal
representatives, successors -in -interest and assigns of the
parties, and each of them.
8. Interim Handling of Appeal/Termination of Agreement.
Until and unless this Agreement becomes final, the parties
agree that the appeal referred to in Paragraph 4 will be
handled as follows:
(a) Upon execution of the Agreement, the parties
will request that the appeal be held in abeyance pending the
processing of Romer's development application.
(b) If this Agreement does not become final as set
forth above in Paragraph 5 by December 1, 1992, all parties
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agree that the appeal shall be revived and shall be processed
as provided by law unless the parties to this Agreement agree
in writing that it shall remain inactive. If the appeal is
reactivated under the provision of this paragraph, the
Agreement shall be deemed to be terminated and shall have no
further force and effect except as provided in subparagraph
(d) below.
(c) Upon the happening of any event prior to
December 1, 1992, that demonstrates that the conditions
contained in Paragraph 5 will not be met (e.g., Caltrans
refuses to issue the necessary permits for access), Romer may
apply to the Court of Appeals to reinstate the appeal without
waiting until the expiration of the one year period referred
to in Paragraph 8(b). If such application is granted, this
Agreement will be deemed terminated and shall have no further
force and effect.
(d) Effect of Termination of Agreement. If this
Agreement is terminated, it shall have no effect on the
parties' respective rights and obligations, if any, except:
(1) Any statute of limitations applicable to the enforcement
of any right or obligation within the scope of this Agreement
shall be tolled from the date this Agreement is executed to
the date it is terminated; and (2) If Romer has made the
irrevocable offer of dedication described in Paragraph 3, the
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parties' rights and obligations under that paragraph shall
remain in effect.
9. Mutual Release. Upon this Agreement becoming final
as provided in Paragraph 5, the parties, on behalf of
themselves, their successors, agents, attorneys, employees
and assigns mutually release and forever discharge each
other, their agents, employees, attorneys, officers,
officials, boards, and contractors of and from any and all
claims, demands, actions or causes of action, obligations,
liabilities, indebtedness, costs or expenses, arising from
the facts set forth in this Agreement, including, but not
limited to, those claims set forth in the Romer Action and
the Capistrano Action. Included in such release are any and
all claims that Romer and Capistrano Collection Associates,
Ltd. may have which relate to the Encroachment Agreement.
Upon this Agreement becoming final as provided in
Paragraph 5, Romer acknowledges that Capistrano Collection
Associates, Ltd. has fully complied with all obligations
arising under the Encroachment Agreement including, but not
limited to, any obligation of Capistrano Collection
Associates, Ltd. to restore Romer's Property to the condition
it was in prior to the encroachment. By this release, the
parties intend upon its effectiveness, to release and forever
discharge claims both known and unknown as provided, and the
parties expressly waive any right under California Code
Section 1542, which provides:
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A General Release does not extend to
claims which the creditor does not know
or suspect to exist in his favor at the
time of executing the release which if
known by him must have materially
affected his settlement with the debtor.
This release does not apply to any parties' rights relating
to the Wellman Action which is not settled by this lawsuit.
10. Dismissal of Capistrano Action. Within ten (10)
days of the execution of this Agreement, Capistrano agrees to
file a Request for Dismissal of the Capistrano Action,
dismissing the entire action without prejudice. If this
Agreement does not become final as provided in Paragraph 5,
the Capistrano Action may be refiled without prejudice to any
parties' rights and obligations.
11. Execution Not an Admission. By entering into this
Agreement, no party hereto admits that the claims of the
other were or are valid or meritorious. Each party hereto
has in the past denied and continues to deny the claims,
assertions, allegations and contentions of the others and
this Agreement and the underlying settlement are strictly for
the purposes of compromising a dispute.
12. Advice of Counsel. The undersigned and each of
them hereby declare and represent that in effecting this
Agreement, each has received full legal advice as to their
respective legal rights and each hereby certifies that he or
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it has read all of this Agreement and fully understands the
same. This Agreement has been fully negotiated amongst the
parties hereto and shall be construed as if drafted by all
parties to it.
13. Additional Documents and Instruments. Each of the
parties hereto agrees to execute and deliver to each of the
other parties hereto all additional documents, instruments
and agreements required and to take such additional actions
as are required to implement the terms and conditions of this
Agreement, including the recordation of the documents
described above.
14. Integration. This instrument, incorporating the
Exhibit thereto, contains the entire agreement and
understanding concerning the subject matter herein and
supersedes and replaces any prior negotiations and agreements
between the parties hereto, or any of them, whether written
or oral, except as expressly provided herein. Each of the
parties acknowledges that no party or agent or attorney of
any other party has made any promise, representation, or
warranty, express or implied, not contained in this
Agreement, to induce the other party to execute this
instrument.
15. Severability. If any provision of this Agreement
is held to be invalid, void or unenforceable, the remaining
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provisions shall nevertheless remain in full force and effect
and shall not be affected, impaired, or invalidated.
16. Attorney Fees. Each party shall be responsible for
his or its own costs and fees incurred in connection with
each of the Romer Action and the Capistrano Action, suits and
disagreements, including attorney fees, expert fees, and all
other litigation costs.
17. Counterparts. This Agreement may be executed in
one or more counterparts, each of which shall be deemed to be
an original instrument.
IN WITNESS WHEREOF, the parties have executed this
Agreement.
CITY OF SAN JUAN C<APIS�TrRANO
By: Z' /
/'Mayor Kenneth Friess
APPROVED AS TO FORM:
STRADLING YOCCA, CARLSON & RAUTH
By: /
T om s P. Clark, Jr.,
Acting City Attorney,
City of San Juan Capistrano
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L�
COAST,,SIDE FINANCIAL
By: .._Ak- . L� —
Scott W. Wellman
Its: U l C-1= - 1'( liSl
CAPISTRANO..COLLECTION
ASSOCI�, LTD.
Scott W. Wellman
By: V-
Jef B Yldf n
By:
Michael
SCOTT/W. WELLMAN
i
By:—
Scott W. Wellman
JEFF BAZYLER
By:
MICHAEL J: BAZYLER
By:
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ex
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APPROVED AS TO FORM:
RUTAN & TUPER
Leonard A. m `
9/119/014112-0001/030
FRANCIS CHARLES ROMER
By:
F ancis C a es Rome
RAYMUNDO BECERRA
By:
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April 24, 1995
TO: ed Simon, City Engineer
FRO Brian Perry, Senior Civil Engineer
SUBJECT: 'Romer Property" 32101 Del Obispo Street
AP No. 673-111-15
I
I understand that the lender has foreclosed on the above subject project on the corner of Del Obispo
Street and Calle Aspero and that the property is in the process of being sold.
The property is referenced in the June 30, 1991 Settlement Agreement and Release (attached). In
particular, Section 3, page 5 references the Irrevocable Offer of right-of-way for Del Obispo Street
widening.
Due to my connection with the widening project, I have been asked by one potential buyer of the
property, the City's position for acquiring the additional street right-of-way for the widening project.
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Please identify the obligation, if any, of the new ro a owner to dedicate the proposed right-of-
way under this agreement. The additional right-of-wav needed is undefined at this time. dial --;u4*ls�
BP:ssg sp 40,
attachment -�/ M / ' , 4"
brian\4-20romr.mem 00 .
• FRANCIS C. ROMER •
P.O. Box 520
San Juan Capistrano, CA 92675
Phone: (714) 493-4328
Fax: (714) 2404)351
The Honorable Mayor
and Members of the City Council
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
I==1 n _ _ • M : Il MN r: SI SIL=. • ..oil .cr
Dear Honorable Mayor and Members of the City Council:
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Please accept this letter as our intent to defer submittal of the development application for our properties
along Rancho Viejo Road, until more favorable economic conditions exist.
At the request of the City, we agreed to submit a devsk pment application for our properties; 180 days from
Caltran's conceptually approving the Ortega access Into and out of our propedles. We received notification
of approval February 21, 1992. The 180 day period expires August 19, 1992.
While we are pleased with the City's cooperative attitude to date, the current economic climate does not
permit us to proceed as anticipated. Please be assured that our interest continues to be the development
of a project that Is not speculative in nature, but rather one that proves to be financially rewarding to all
concerned as well as being an asset to our community.
In the Interim, we will continue our search for the appropriate tenants, and work with your staff in finding a
solution to the desired main entry from Rancho Viejo Road.
Thank you for your
Sincerely
F . Romer
9/1 a19 a
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M.
Tom 'j J
8tL?- u•
C hTy ATTY.
%WCO MANAGEMENT COMPANY•
C,0 31738 RANCHO VIEJO HOPP, SUITE P
SAN JUAN CAPISTRANO, CA 92675
May 7, 1992
Raymundo Becerra
RBA
31881 Los Rios Street
San Juan Capistrano, Ca 92675
Re: Main entry design from Rancho Viejo Road
Dear Ray;
In response to your letter dated March 21, 1992 relating to Mr.
Carlos Romer's master plan, after careful consideration of the
Situation, Newco Management is not in a position to take any action
regarding Mr. Romer's plan. You will have to proceed as you deem
appropriate without any involvement of Ortega Properties.
Sincerely,
Mar aret Cogdell
Property Manager
TELEPHONE (714) 248-2900 TELECOPIER (714) 248-0227
March 21, 1992
Margaret Cogdell
Ortega Properties
31738 Rancho Viejo
Suite B
RBA San Juan Capistrano, CA 92675
RE: Main Entry design from Rancho Viejo Road
Planning
Dear Margaret:
Urban Design Thank you for taking the time from your busy schedule to discuss the proposed main
entry design from Rancho Viejo Road.
As I mentioned, I have been retained by Mr. Carlos Romer to master plan the
development of his property. The land is contiguous to yours and consists of three
acres with access from Rancho Viejo Road and Ortega Highway.
In the process of preparing various site planning studies it has become apparent that
a joint main entry would be mutually beneficial. The most favorable location would be
to align the project entry drive from Rancho Viejo Road with that of the existing
entrance for the Ortega Business Center.
As we discussed, before we finalize our development plans, we have been requested
by the city to solicit your participation. The attached letter from Tom Tomlinson, the
City's Director of Planning, outlines possible solutions in implementing the main entry.
31881 Los Rios St. One alternative not discussed in the letter, which I propose, is the idea of Mr. Romer
San Juan Capistrano
California 92675 constructing the main entry in exchange for the land north of the centerline of the
714-240-3646 entry (see attached exhibit). This option would eliminate, for you, costs associated
with the preparation of lot line adjustments, engineering and construction costs.
Margaret, the proposed main entry offers an opportunity to enhance the development
potential of both properties. It would consolidate you and Mr Romer's existing
driveways, thus permitting left turn movements. It also offers an opportunity to
secure access to your parcel from the city through Via Espada. And, as you can see,
its implementation could be achieved in a number of ways acceptable to both parties.
Please review the proposal and let me know what your thoughts are.
Sincerely,
"a
Raymundo Becerra
RB/Is
MEMBERS OF THE CITY COUNCIL
o •I��� JERRY HARRIS
KENNETH E FRIESS
DIIIUGUSE - GARY L HAUSOORFER
GIL JONES
IS
V.n76Ibit 1961
R6 I Jcvr vnsouez
CITY MANAGER
•`- \ • STEf HEN B JULIAN
January 22, 1992
Raymoundo Becerra
RBA Planning & Urban Design
31881 Los Rios Street
San Juan Capistrano, CA. 92675
RE: Main Entry Design From Rancho Viejo Road (Romer)
Dear Raymundo:
As a follow-up to our discussion this past week, it is our mutual
desire to align the main project entry drive from Rancho Viejo Road
with that of the existing entrance for the Ortega Business Center.
In order to accomplish this objective there are several options
which are available to satisfy this request. The first and easiest
arrangement would be to execute a lot line adjustment between Mr.
Romer's and the Ortega Properties parcel. There is an obvious
advantage in that it squares the property boundaries creating an
opportunity for a superior site design solution.
A second alternative could involve a partial purchase of property
from Ortega Properties in conjunction with a minor lot line
adjustment necessary to transfer ownership. A third alternative
is to use the Redevelopment Agency as eminent domain powers to
obtain the necessary right-of-way. This latter option is the least
desirable and would involve reimbursement from Mr. Romer for all
costs incurred to complete that procedure.
As we discussed, it appears the property is being offered for sale
by Ortega Properties, either options 1 or 2 would be very
advantageous in increasing the value of their property. Either
yourself or Mr. Romer may want to approach the property owner on
the merits of either opportunity and solicit their participation.
Ray, I hope the above clarifies my objective to the entry issue.
Please let me know if I can be of further assistance.
Sincerely,
Thomas G. Tomlinson
Director of Planning
TGT:mjm
32400 PASEO ADELANTO. SAN JUAN CAPISIRANO. CALIFORNIA 92675 • (714) 493-1171
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(iv) The parking requirements imposed on the
project shall not exceed those imposed as of the date the
Agreement is executed in the City's Zoning Code.
(v) At his option, Romer may waive any of the
requirements set forth in subparagraphs (i) -(iv) above, in
which case said requirement will not be a prerequisite to
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this Agreement becoming final.
6. Processing of-Application/Mutual Cooperation. The
parties agree to cooperate with each other in good faith and
to use all reasonable diligence in undertaking the acts
necessary to finalize this Agreement. Within two business
days of the execution of this Agreement, the City agrees to
commence the necessary steps to obtain the Caltrans
encroachment permit required pursuant to Paragraph 1 herein.
Thereafter, the City shall use all reasonable diligence to
pursue the permit until obtained Once Caltrans issues a
conceptual approval of the permit or issues the permit itself
(if no conceptual approval is issued), Romer, or -bis
successor -in -interest, shall submit his entitlement
applications and supporting documentation within 180 des.
The City agrees to process Romer's (or his successor -in -
interest's) application for development in good faith and
within all applicable statutory time periods. The parties
acknowledge that the City retains its legislative discretion
regarding the application for development of the Romer
COM