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HomeMy WebLinkAbout32 - Annexation & Development Agreement for Newport CoastITEM a? TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager SUBJECT: Amendments to the Annexation and Development Agreement for the Newport Coast RECOMMENDED (1) Conduct Public Hearing; and ACTIONS: (2) Authorize the Mayor to sign the Newport Coast Annexation and Development Agreement as proposed to be amended. BACKGROUND: The Newport Coast community is an approximately 5,615 -acre area south and east of the City limits but within the City's sphere of influence consisting of the Newport Ridge Planned Community and the Newport Coast Local Coastal Program (LCP). When the Newport Coast is built out (by the mid- 2010s), the community will have about 5,200 dwelling units, up to 2,150 visitor - serving units, and two retail centers. About 4,500 people live in the Newport Coast today. One retail center is currently graded and about 300 timeshare units are either in place or under development. On March 19, 2001, the City submitted an application to the Orange County Local Agency Formation Commission ( LAFCO) to annex the Newport Coast. LAFCO currently has the City's application under review and plans to set a public hearing on the matter this summer. The anticipated effective date for the annexation is January 1, 2002. In preparation for the LAFCO hearing, the City has done the following: • Adopted an Agreement between the Irvine Ranch Water District and the City relative to water, wastewater, and reclaimed water services in the area following any annexation (January 24, 2000). • Adopted a Resolution of Application (Resolution 2000 -81) Requesting Initiation of Proceedings to annex the area (September 26, 2000). • Agreed to a series of Terms and Conditions with the residents of the Newport Coast community to be applied following any annexation (September 26, 2000). • Amended the City's General Plan and Pre -zoned the area (October 24, 2000). The Planning Commission approved these same GP amendments and pre - zoning actions on September 21, 2000. • Adopted an Annexation and Development Agreement with The Irvine Company regarding development in the area (October 24, 2000). The Planning Commission approved this Annexation and Development Agreement on September 21, 2000. • Introduced Senate Bill 516 (Johnson, 2001) clarifying the treatment of the existing Newport Coast LCP should the City be successful in its annexation of the Newport Coast (February 22, 2001); • Authorized and directed LAFCO's separation of the three annexation areas that the City initially proposed for annexation all at once, thus allowing the Newport Coast portion of the annexation to proceed in 2001 (May 8, 2001). Actions remaining to be completed by the City include: • Formal adoption with the County of Orange of identical resolutions describing the Master Property Tax Transfer formulas associated with the Newport Coast and Bay Knolls portion of the annexation. • Adoption of a joint powers agreement (JPA) describing the relationship between the County and the City regarding land use authority, LCP administration, and building and grading permits after annexation. This has been sent to the County in draft form. • A determination as to which Councilmanic district the Newport Coast should be added to upon annexation. • Amendments to the City's FY 2001 -02 budget that add service responsibility for the Newport Coast on the effective date of the annexation. City staff and representatives of the Irvine Company believe that the Annexation and Development Agreement between the City and the Irvine Company should be amended to reflect recent actions relating to the annexation, including: • The introduction of SB 516 (Johnson) relating to the Newport Coast LCP (please see Attachment C); and • Recent actions by the California Coastal Commission to require special water quality treatment structures in the Crystal Cove portion of the Newport Coast development. Incorporating these changes also allows the parties to correct minor errors and to improve the technical language within the Development Agreement. The changes proposed for incorporation into the Development Agreement are included here as Attachment A. The Development Agreement itself - in strike- out (language deleted) and underline (language added) form is included as Attachment B. At a June 21, 2001 noticed public hearing, the Newport Beach Planning Commission recommended that the Council approve the amended Development Agreement THIS AGENDA This Agenda Item asks the City Council to approve the proposed amended ITEM: version of Annexation and Development Agreement for the Newport Coast. ATTACHMENTS: Attachment A - Summary of Proposed Changes to the Annexation and Development Agreement Attachment B - Strike -out and underline version of the Annexation and Development Agreement Attachment C - Latest version of Senate Bill 516 (Johnson) 4— M E Cn A� AW+ i Q •F� W^^ M _C A� W M O M x m ^C i Q M U ^O ii Z ^W i A+ G W V O« oa L a Attachment A c n E 2 m E U E c N m ¢o a u m o m UPvm c�c N z z _ m Z5 m ¢ $ wm c cy c m s n £ v R w 0 m q c E ° w 9 ° z c m � s c 12. N N m a w' a m m � > t P m y _m m _n m U O V [S U m m r F.� O u L m x m� w m.. m m ;a c m �1°O mm m�a m E Zc L— E p m a� L W.m wpE m�a m o E ;°mm mw E 3 tS m °d '8m, ° u a m u c o@ a m m a m m wm `m `m a°U U ti z 12 12 c 0 0 z z 2 U � 4m 1 .g 0 — m om $ n .L 3 m m N d E n T U ) m J C L E 0 N 2 w E m 0 5 m E ._ a c Q ° W , 0 m0m ¢m�qO .Q m ° 0 $ E E O � i �mc £ a m m U U °.mE °n c 1m 0. 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RECITALS A. OWNER collectively owns a substantial portion of the real property ( "Property ") described on Exhibit "A" and depicted on Exhibit "GB," consisting of approximatel --L==)5,615 acres. B. The Property is currently in the unincorporated area of the County of Orange ( "County "). OWNER has obtained development approvals from the County and the California Coastal Commission for the majority of the Property from the County; and has commenced subdivision and development of the Property under the jurisdiction of the County. C. The development approvals for the Property have been appreyed as ranted after a lengthy planning process that involved the careful review f numerous environmental documents (Planning and errvkermi-ental Environmental #istery-History is attached as Exhibit 9C). The development approvals include: The County of Orange Newport Coast Local Coastal Program and Master Coastal Development Permit for that portion of the Property in the Coastal Zone. 2. A Development Agreement with the County (County Development Agreement). 3. The Newport Ridge Planned Community Plan. 4. Subdivision Maps. D. The Property is also part of the Natural Communities Conservation Plan (NCCP) — a complex agreement that requires OWNER to dedicate portions of the Property upon completion of certain phases of development. OWNER is also required to dedicate large portions of the Property pursuant to the development approvals. 2 E. OWNER was required, by the development approvals, to make costly infrastructure improvements far in excess of those necessary to mitigate the impacts, or serve the needs, of the development. OWNER was required to make, and has made, these extraordinary improvements prior to development of the Property. F. OWNER has acquired a fully vested right to develop the Property in accordance with the development approvals because of the extraordinary expenditures for public and private improvements made in reliance on the development approvals, the dedications made in reliance on the development approvals and the County Development Agreement. G. CITY and OWNER intend for this Agreement to fully conform to the pment approvals and to fully facilitate full implementation of the Proiect, as conditioned. To the maximum extent permitted by law, this Aqreement is intended to be the functional equivalent of, or supplement, the County Development Agreement in light of the CITY's intention to delegate to the County all municipal land use authority over the Property until such time as the Project is complete. H. The is within rs spherB of City is desirous of annexing the Property but recognizes that the development approvals for the Property involve complex and interrelated planning documents. and -CITY does not have sufficient staff to timely process the permits required for implementation of the Project in compliance with all the development approvalspeFmits. Moreover, the development approvals and land use plan involve the dedication of valuable habitat and open space within and outside of the boundaries of the Property and City does not have the personnel and expertise to ensure that dedications occur as planned. I. CITY and OWNER have discussed the process and terms and conditions of annexing the Property to CITY, and each has determined that it is in their respective best interests to pursue that annexation pursuant to the terms of this Agreement and the development approvals. In particular CITY desires assurances that OWNER will support eventual annexation of all of the Property to in order to: (a) Ffacilitate the timely and orderly integration of the Property into the CITY consistent with the CITY's sphere of influence; (b) Ffacilitate planning and provision of municipal services to the Property without any adverse fiscal impact on the CITY or the ultimate owners of the property; and 3 0 (c) ensure consistency with and implement the CITY's General Plan.; and At the same time, —2q)- -OWNER desires to obtain assurances from CITY that, subsequent to annexation: (a) OWNER will still be able to develop the Property to the full extent permitted by the development approvals granted by the County and the Coastal Commission subject to conditions of approval imposed by the Coastal Commission and the County and and consistent with the City's General Plan; (b) devetepAef#-Development will be processed by the County in accordance with a uniform set of land use and building rules, regulations and requirements, as established by the development approvals given by the County for the Property prior to its annexation; and (c) Ddevelopment of the Property will be subject only to costs, fees, processing requirements, conditions or exactions that would have been imposed had the Property not been annexed to CITY.; J. In addition to the authority at common law for annexation agreements, Government Code Sections 65864 et seq. ( "Development Agreement Law "), and NewpeFt BeaGh MUniGipal Gede Chapter 15.45 of the Newport Beach Municipal Codes authorize CITY to enter into binding development agreements with persons having a legal or equitable interest in real property. This Agreement is consistent with the public policy that supports development agreements in that it the StFen *�irg-strengthens the public planning process, facilitates implementation of comprehensive planning, provides significant public benefits, and eneragintt reduces the economic costs of sueh development. K. The City Council has found that this Agreement is in the best public interest of the CITY and its residents, adopting this Agreement constitutes a present exercise of its police power, and annexation of ±ti„ o., peFty, this Agreement is wall be consistent with the City's General Plan and with-the Newport Beach Municipal Code Chapter 15:45. L. Nothing an this This Agreement is not intended to, and shall not be construed, to impair the rights and obligations of OWNER, or other involved parties under and pursuant to ettrthe Newport Coast Local Coastal Program, Second Amendment, and the Litigation Settlement Agreement entered into June 27, 1997, by and among OWNER, the Friends of the Irvine Coast, Laguna Greenbelt, Inc., and Stop Polluting Our Newport. a] 7 COVENANTS NOW, THEREFORE, the Parties agree as follows: DEFINITIONS AND EXHIBITS. 1.1 Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter capitalized, or all letters capitalized, when used in the Agreement. The defined terms include the following: 1.1.1 "Agreement" means this Annexation and Development Agreement. 1. 1.2 "Coastal Zone Area" means that portion of the Property that is subject to the provisions of the California Coastal Act, Public Resources Code section 30000 et seq. 1.1.3 "CITY" means the City of Newport Beach, a California charter city. 1. 1.4 "County' means the County of Orange, a political subdivision of the State of California. 1.1.5 "Development" whether or not capitalized means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping and park facilities and improvements. For purposes of this Agreement, however, "Development" does not include any remodeling, reconstruction, or other building or grading activity by any person subsequent to the termination of this Agreement as provided in and pursuant to Section 2.3.3 below. 1. 1.6 "Development Approvals" means all permits, licenses, consents, rights and privileges, and other actions subject to approval or issuance by County or CITY in connection with Development of the Property, including but not limited to: (a) General plans and general plan amendments adopted by the County or the CITY; (b) Specific plans and specific plan amendments; 5 (c) Zoning and rezoning adopted by the County or the CITY; (d) Tentative and final subdivision and parcel maps; (e) Variances, conditional use permits, master plans, public use permits and plot. plans; and (f) Grading and building permits. 1.1.7 "Development Plan" means the plan for Development of the Property, including without limitation the planning and zoning standards, regulations, and criteria for the Development of the Property, contained in and consistent with the Development Approvals. The components of the Development Plan are more fully described in Exhibit "DG." 1.1.8 "Effective Date" means the date this Agreement is approved by the CITY as shown in the first paragraph.. 1. 1.9 'Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies governing Development and use of land applicable to the Property pursuant to this Agreement, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) except as provided in Section 4.9 below, taxes and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; and (e) the exercise of the power of eminent domain 1.1.10 "OWNER" means individually and collectively The Irvine Company and Irvine Community Development Company, and where appropriate in context their respective successors in interest to all or any part of the Property. M rn 1.1.11 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security- device, a lender and their successors and assigns. 1.1.12 "Project" means the Development of the Property consistent with the Development Plan. 1.1.13 "Property' means the real property described in Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.14 "Reservation of Authority' means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 4.6 of this Agreement. 1.1.15 "Subsequent Development Approvals" means all Development Approvals subsequent to the Effective Date in connection with Development of the Property. 1.1.16 "Subsequent Land Use Regulations" means any Land Use Regulations adopted and effective after the Effective Date of this Agreement, other than the Development Plan. 1.1.17 "Term" shall mean the period of time from the Effective Date until the termination of this Agreement as provided in subsection 10.1, or earlier termination as provided in Section 7. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" Legal Description of the Property. Exhibit "B" Map showing Property and its _ Planning and EnviFonmental Histefy. Exhibit "C" - laeataon. Planning and Environmental History. Exhibit "D" List of County Development Approvals_ Exhibit "E" Mitigation Measures. Exhibit "F" Affordable Housing Implementation Plans. 2 GENERAL PROVISIONS. El 2.1 Binding Effect of Agreement. This Agreement shall be binding on the CITY from and following the Effective Date. However, CITY shall have no right or duty with respect to the Property until annexation of the Property to CITY and CITY intends, through a joint powers agreement, ordinance or other mechanism, eF similaF ^•f^^^emen` to delegate to the County all municipal land use jurisdiction and all responsibility for processing Development Approvals that the City has, or may have, pursuant to State or local law. 2.2 Assignment By OWNER. 2.2.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no dial ransfer sha#A4elateviolates the Subdivision Map Act, Government Code Section 66410, et seg.), and in so doing assign its rights and obligations under this Agreement as the same may relate to the portion of the Property being transferred, to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement. 2.2.2 Release of Transferring Owner. Upon the sale, transfer or assignment of all or a portion of the Property, the transferring OWNER shall be released of all obligations under this Agreement that relate to the portion of the Property being transferred; provided that the obligations under Sections 4 and 5 of this Agreement that relate to the portion of the Property being transferred are assumed by and enforceable against the transferee. 2.2.3 Termination of Agreement With Respect to Individual Residential Lots On Sale to Public and Completion of Construction. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any residential lot and such residential lot shall be released and no longer be subject to this Agreement upon satisfaction of both of the following conditions: (a) The residential lot has been finally subdivided and individually (and not in "bulk ") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and, (b) A certificate of occupancy has been issued or a final building inspection has been conducted and approved for the primary dwelling unit on the residential lot. r� .. n 3 2.2.4 Termination of Agreement nth Respect to Non - Residential Parcels. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any non - residential parcel and sash the non - residential parcel shall be released and no longer be subject to this Agreement at such time as the parcel has been fully improved and occupied consistent with the allowed intensity of development under the Development Plan. PRE - ANNEXATION OBLIGATIONS AND COMMITMENTS. 3.1 Annexation of Property. Consistent with and subject to the terms and conditions of this Agreement and specifically this Subsection, CITY may, in one annexation proceeding or several annexation proceedings, annex the Property under such conditions as are imposed by or through the Orange County Local Agency Formation Commission and reasonably acceptable to OWNER. Conditions shall be deemed to be reasonably acceptable to OWNER unless the conditions impair or interfere with OWNER's rights to develop or materially increase the cost of development. OWNER's consent to annexation of all or a portion of the Property is on, and OWNER has 3. 1.1 Annexation Before Project Completion. OWNER Will aeitheF support CITY's annexation of the Property in its entirety before project completion, provided that the Property may be fully developed to the full extent permitted in the as tonowing conamonsa (a) The Legislature has appro signed, legislation that clarifies such that annexation of the Pr( each of the and the Governor has Will not alter or affect the validity and enforceability of the Newport Coast Local Coastal Program, Second Amendment, including any amendments applicable to the Property and any related coastal development permits, or ii - er-deprive the County of authority to issue coastal development permits pursuant to the terms of this Aqreement, any ordinance, joint powers agreement, or other mechanism that confer: use authority to the County after annexation or any subsequent amendments that are certified by the (b) The CJaAdopts, and maintains during the term of this Agreement, the- appheable- general plan previsieas spesft ginations plans and zoning des for the Property that are essentially as the same have beenidentical to the general plan and zoning designations adopted by the County_, to the Seeend AnTFnent; and in effect as of the Effective Date. (c) The City transfers municipal land use the issuance of buildinq and grading verr pursuant to Mere into a joint powers or similar agreement and /or ordinance until such time as the Project is complete or until OWNER consents, in writing, to an assumption of municipal land use authority over all or a portion of the Pro e t. with the GOURty PF8seFviR9 with the Gaunty all the Rreperty and PFejest unless and • ntil this ^gFeement has 3.1.2 Ultimate Annexation. OWNER will fully support CITY annexation of all or a portion of the Newpert Goa6tProperty without satisfying the provisions of Section 3.1.1, provided that all annexed lots and /or parcels to be annexed have received building permits for construction of structure(s) consistent with the Development Approvals, and a certificate of occupancy has been issued or a final building inspection has been conducted and annexation will not interfere with, affect, or impair the Development Approvals or OWNER's ability to complete the Project. 3.2 Environmental Impacts and Mitigation. The parties acknowledge that Environmental Impact Reports, environmental documents and functional equivalents ( "Environmental Documents - described in Exhibit SC) have been prepared and certified for the Project by County and /or approved by the Coastal Commission. CITY has reviewed and evaluated the Environmental Documents to determine if the impacts of the Project, as represented by this Agreement, the Development Plan, and the CITY approvals, were fully analyzed and evaluated. CITY has also reviewed the Environmental Documents and all relevant existing facts and circumstances to determine if any of the events that require preparation of a subsequent or supplemental environmental document have occurred. CITY has determined based on that review that none of the events described in Section 10 !U 21166 of the Public resoUFGeTResources Code or Sections 15162 or 15163 of the CEQA Guidelines have occurred. CITY has specifically determined that the detachment of the Property from County and the annexation of the Property to CITY do not require preparation of any subsequent or supplemental environmental impact report for the Project because the reorganization will not increase, decrease, or modify any development of dedication when compared to the entitlement prior to annexation. CITY has also determined that, subject to incorporation of the mitigation measures identified in Exhibit "DE" and except as specifically provided in this Agreement, there is no current or anticipated deficiency in any municipal service or facility (including without limitation planned community and neighborhood parks, drainage and flood control facilities, circulation system infrastructure, and public safety services) resulting from Development of the Project. The mitigation measures identified in Exhibit "DE" are incorporated by reference into the Development Plan. 3.3 Additional Pre - Annexation Understandings. As a further inducement to OWNER to support the annexation of the Property to CITY, CITY agrees that, as of the date of its approval of this Agreement. CITY acknowledges that all County affordable housing requirements associated with development of the Property have been satisfied. CITY also acknowledges that the OWNER has a vested right to proceed with development pursuant to the County Agreement and that no additional affordable housing requirements shall be imposed on development of the Property pursuant to the CITY's General Plan or otherwise. The Affordable Housing Implementation Plans approved by the County, describing the manner in which affordable housing requirements have been satisfied for development of the Property, are attached to this Agreement as Exhibit " €F." Fees payable upon issuance of any development permit (e.g., building permit or occupancy permit) will be paid to the issuer of the permit in accordance with County Codes, fee schedules and requirements for original improvements. Following annexation, fees shall continue to be paid to the issuer in accordance with the codes and requirements for additions, remodels and rebuilds of the jurisdiction with land use authority. CITY agrees that the Project is in full compliance with, and shall not be further subject to, CITY's Traffic Phasing Ordinance following annexation of the Property, CITY having determined through this Agreement that: a. Development of the Property will not cause or make worse any unsatisfactory level of service at any critical intersection as defined in the Traffic Phasing Ordinance; b. Development of the Property has been considered a committed project which has been incorporated into the CITY's traffic model and Circulation Element traffic projections and all resulting levels of service have been accepted in the Circulation Element; and c. There is an overall reduction in peak hour ICU at impacted intersections 11 having unsatisfactory levels of service taking into account the circulation improvements constructed or facilitated by OWNER pursuant to conditions imposed for development of the Project, including without limitation construction of Newport Coast Drive, extension of San Joaquin Hills Road, widening of Pacific Coast Highway, and facilitation of construction of the San Joaquin Hills Transportation Corridor. 3.4 Cooperation. Subject to and in reliance upon the representations and covenants of the CITY herein, OWNER will support the annexation of the Property by the CITY. 3.5 Termination of Annexation Proceedings. This Agreement may be terminated by OWNER in the event that CITY fails to comply with the requirements of Paragraph 3.1 above with respect to any proposed annexation of Property to CITY, or if conditions imposed by or through the Local Agency Formation Commission on the annexation are determined by either party to conflict materially with its rights and obligations under any provision of this Agreement. 4 DEVELOPMENT OF THE PROPERTY UPON ANNEXATION DEVELOPMENT Following annexation of the Property by CITY, the following provisions shall apply: 4.1 Rights to Develop. Subject to the terms of this Agreement, following annexation of the Property OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. Pending annexation to CITY, OWNER shall have the right to seek approvals from County for the Development of the Property, and to develop the Property, consistent with the Development Plan. CITY expressly agrees to take no action that would or could (a) interfere with or i interfere with or it increase the cost of completi consent; or (d) cause the tran lursuant to State or lo( m the County to the C the Property affected I eve Z's ability to complete the project; (c) materiall project without the OWNER's express writter rf any permitting or development review _law, including Government Code section or any other agency until such time as that the transfer is fully developed pursuant to the 4.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to Development of the Property, shall be those contained in the Development Plar and those Land Use Regulations not inconsistent with the Development Plan. 12 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard durational limits of any appileable permits issued to OWNER pursuant to Development Approvals. 4.4 Changes and Amendments. The parties acknowledge that Development of the Project wM4k*aay require Subsequent Development Approvals. , and that in eenneetian theFewith OWNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to prieFDevelopment Approvals or the Development Plan to effect sate such change, which and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan that are eensistent with the Land Use Element designati9RS fOF the PrepeFty unless the proposed modifications: tent with the Land Use Element designations for the or would raaterial� reduce the amount of open space intended for dedication to the public, or (cb) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (de) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (ed) would materially increase the density and /or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. If aPPF9V9d in a feFm to whish OWNER has eggsented in in r or n or h Gliangain the DQV9I9PFA9Rt AppFayals 9F-Pevelopmsst Plan 13 rz Any change in the Development Approvals or Development Plan made in accordance with the procedures required by the Land Use Regulations and with the written consent of the OWNER shall be conclusively deemed to be consistent with this Agreement, without any further need for any amendment to this Agreement or any of its Exhibits. 4.5 Continuation of Irvine Coast Development Agreement. CITY acknowledges and agrees that the terrine GeastCoun Development Agreement entered into between OWNER and County shall continue to govern the rights and obligations of OWNER and County with respect to the Coastal Zone Area preceding annexation, and following annexation to the maximum extent permitted pursuant to the joint powers agreement or similar arrangement. If for any reason this Agreement is found to be invalid or unenforceable or OWNER's ability to proceed with the Development Plan is impaired or delayed for any reason, then the Coastal Zone Area shall be and remain subject to the terms and protections of the Irvine Coast Development Agreement. 4.6 Monitoring of Project. City shall, si portion of the Property, have the right, pursuant issued by OWNER, to enter the Property for the development of the Property proceeds in substa Development Approvals and all conditions to the the issue of water quality and aesthetics. OWNI Manager to provide CITY with access to all grad specifications at or before submittal to the Coun monitoring activities in a manner that does not u develop the Property in compliance with Develo prepared pursuant to monitoring shall be lodged shall provide OWNER with the opportunity to re prior to submittal to the Citv Manager. The mon quent to annexation of all or a standard riqht of entry permit compliance that are material to nate a Proiect ana DWamg plans CITY shall conduct with the City Manager and iew and comment on the n to Subsection is not intended, and shall not be construed, to create any procedure, right or process on the part of the CITY to review or evaluation the development of the Property. City shall make available to any person, upon request, any report or document lodged with the City Manager that is prepared by any professional retained to conduct the monitoring authorized by this Section. 5 FINANCING OF PUBLIC IMPROVEMENTS AFTER ANNEXATION. 5.1 Formation of Financing Districts. If so requested by OWNER, CITY will cooperate in the formation of any special assessment district, community facilities district or alternate financing mechanism ( "CFD ") to pay for the construction, acquisition, and /or maintenance and operation of public and /or 14 quasi - public infrastructure, lighting, landscape, or any other public facilities required as part of the Development Approvals; provided, however, CITY shall have no obligation to authorize or to cause any such CFD to issue debt or sell bonds prior to the completion of the annexation of the Property to CITY. In the event that such a CFD is formed and sells bonds to pay for the construction or acquisition of public or quasi - public facilities which were provided, in whole or in part, by OWNER, OWNER may be reimbursed from such bonds to the extent that OWNER has spent funds or dedicated land for the establishment of such facilities and creation of the CFD. While it is acknowledged that this Agreement cannot require CITY or the City Council to form any such CFD or to issue and sell bonds, CITY represents that it can, and does hereby, agree that it shall not refuse OWNER's request to form such a CFD and to issue and sell bonds following completion of annexation of the Property to CITY, except for good and reasonable cause. In no event shall CITY have any obligation or duty to refinance, repay, reduce the amount of, or assume any financial relationship to, any bonds or other debt issued by any CFD prior to annexation. 5.2 OWNER's Right to Construct Facilities. It is understood and agreed that, subject to CITY or County review and approval of plans and specifications, as appropriate, the OWNER may elect, and reserves the right, to construct, or cause the construction of, any public or quasi - public facility for which the CITY intends to collect a fee, and to dedicate the completed facility to the CITY, in lieu of payment of the fee. 6 REVIEW FOR COMPLIANCE FOLLOWING ANNEXATION. 6.1 Periodic Review. Following annexation of all or any portion of the Property, the City Council shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the good faith compliance by OWNER with the terms of the Agreement. As part of that review, OWNER shall submit an annual monitoring review statement describing its actions in compliance with this Agreement, in a form acceptable to the City Manager, within 30 days after written notice from the City Manager requesting that statement. The statement shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council. 6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time at CITY's sole cost. OWNER shall cooperate with the CITY in the conduct of such special reviews. 6.3 Procedure. In connection with any periodic or special review, each party shall have a reasonable opportunity to assert matters which it believes have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on 15 --t such matters. If on the basis of the parties' review of any terms of the Agreement, either party concludes that the other party has not complied in good faith with the terms of the Agreement, then such party may issue a written "Notice of Non - Compliance" specifying the grounds therefor and all facts demonstrating such non - compliance. The party receiving a Notice of Non - Compliance shall have thirty (30) days to respond in writing to said Notice. If the response to the Notice of Non - Compliance has not been received in the offices of the party alleging the default within the prescribed time period, the Notice of Non - Compliance shall be conclusively presumed to be valid. If a Notice of Non - Compliance is contested, the parties shall have up to sixty (60) days to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event that the parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the sixty (60) day period, the party alleging the non - compliance may thereupon pursue the remedies provided in Section 7. 6.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance ( "Certificate ") to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and CITY Council that (1) this Agreement remains in effect and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. Additionally, OWNER may at any time request from the CITY a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Property, or any lot or parcel within the Property. 7 DEFAULT AND REMEDIES. 7.1 Specific Performance Available. The parties acknowledge that Money damages and remedies at law generally are inadequate and specific performance is a particularly appropriate remedy for the enforcement of this Agreement and should be available to OWNER and CITY because due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER and /or CITY may be foreclosed from other choices it may have had to utilize or condition the Property or portions hereof. OWNER and CITY have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, such that it would be extremely difficult to determine the sum of 16 I :'1 money which would adequately compensate OWNER and /or CITY for such efforts. Except as provided in the Section 7.2 below, neither OWNER nor CITY shall be entitled to any money damages, including attorney fees, from the other party by reason of any default under this Agreement. 7.2 Restitution of Improper Development Fees. In the event any Development fees or taxes are imposed on Development of the Property other than those authorized pursuant to this Agreement, OWNER shall be entitled to recover from CITY restitution of all such improperly assessed fees or taxes, together with interest thereon at the maximum allowable non - usurious rate from the date such sums were paid to CITY to the date of restitution_ 7.3 Termination of Agreement 7.3.1 Termination of Agreement for Default of OWNER. CITY in its discretion may terminate this Agreement as to any non - annexed portions of the Property for any failure of OWNER to perform any material duty or obligation of OWNER hereunder or to comply in good faith with the terms of this Agreement related to its annexation (hereinafter referred to as "default'); provided, however, CITY may terminate this Agreement pursuant to this Section only after following the procedure set forth in Section 6.3 and thereafter providing written notice to OWNER of the default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.2 Termination of Agreement for Default of CITY. OWNER in its discretion may terminate this Agreement by written notice to CITY after the default by CITY in the performance of a material term of this Agreement and only after following the procedure set forth in Section 6.3 and thereafter providing written notice by OWNER thereof to CITY and, where the default can be cured, the failure of CITY to cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.3 Rights and Duties Following Termination. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to (i) any obligations to have been performed prior to said termination, (ii) any default in the performance of the provisions of this Agreement which has occurred prior to said 17 termination, or (iii) obligations that have vested through the annexation of the Property, or any annexed portion thereof. 7.4 OWNER's Right To Terminate Upon Specified Events. Notwithstanding any other provisions of this Agreement to the contrary, OWNER retains the right to terminate this Agreement (but not the provisions of Section 3) upon thirty (30) days written notice to CITY in the event that OWNER reasonably determines that continued Development of the Project consistent with the Development Plan has become economically infeasible due to changed market conditions, increased Development costs, burdens imposed as conditions to future discretionary approvals of the Project consistent with this Agreement, or similar factors. 8 THIRD PARTY LITIGATION. CITY shall promptly notify OWNER of any claim, action or proceeding filed and served against CITY to challenge, set aside, void, annul, limit or restrict the approval and continued implementation and enforcement of this Agreement. CITY and OWNER agree to cooperate in the defense of such action(s). 9 MORTGAGEE PROTECTION. The parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. Subject to compliance with applicable laws, CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER's obligations under this Agreement. M. (c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; except that (i) to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and (ii) in the event any Mortgagee seeks to develop or use any portion of the Property acquired by such Mortgagee by foreclosure, deed of trust, or deed in lieu of foreclosure, such Mortgagee shall strictly comply with all of the terms, conditions and requirements of this Agreement and the Development Plan applicable to the Property or such part thereof so acquired by the Mortgagee. 10 MISCELLANEOUS PROVISIONS. 10.1 Term of Agreement. Following completion of the annexation of the Property, or any portion thereof, to the CITY within the preceding time periods, this Agreement shall continue in full force and effect with respect to such annexed land for a period of fifteen (15) years from the effective date of that annexation. 10.2 Recordation of Agreement. This Agreement shall be recorded with the County Recorder by the City Clerk upon annexation of the Property to CITY within the period required by Section 65868.5 of the Government Code. Similarly, amendments approved by the parties, and any cancellation, shall also be recorded. 10.3 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 19 10.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, then this Agreement shall terminate in its entirety, unless the parties otherwise agree in writing, which agreement shall not be unreasonably withheld. 10.5 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party or in favor of CITY shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 10.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 10.7 Singular and Plural. As used herein, the singular of any word includes the plural. 10.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 10.9 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 10.10 Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement; provided, however, that the fee owners of any non - residential parcels in the annexation area may elect to be covered by this Agreement. 10.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the party's employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party s control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years. 20 10.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 10.13 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 10.14 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 10.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the Development of the Project is a private Development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the Development of private property and the owner of such property. 10.16 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. Subject to Section 3 above, OWNER will cooperate with the CITY in the processing of the annexation of the Project through the Local Agency Formation Commission including advocating the application of the existing AB 8 Master Property Tax Transfer Agreement. OWNER acknowledges the importance of maintaining the fiscal benefits of the Project assuming that the current method of allocating sales tax revenues (i.e., point of sale) is utilized. OWNER will consult with the CITY regarding legislative proposals to adjust this procedure with the goal of supporting CITY efforts to maintain the fiscal benefits of the Project through the legislative process. 21 10.17 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. 10.18 Amendments in Writing /Cooperation. This Agreement may be amended only by written consent of both parties specifically approving the amendment and in accordance with the Government Code provisions for the amendment of Development Agreements. The parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement, and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters. 10.19 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he /they have the authority to execute this Agreement on behalf of his /their corporation, partnership or business entity and warrants and represents that he /they has /have the authority to bind OWNER to the performance of its obligations hereunder. 10.20 Notice. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows: All notices, demands, requests or approvals to CITY shall be addressed to CITY at: City of Newport Beach City Manager's Office 3300 Newport Boulevard PO Box 1768 Newport Beach, California 92658 -8915 All notices, demands, requests or approvals to OWNER shall be addressed to OWNER at: Vice President of Entitlements The Irvine Company 550 Newport Center Drive Newport Beach, Califomia 92660 22 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above. ATTEST: By LaVonne Harkless, City Clerk APPROVED AS TO FORM: CITY: CITY OF NEWPORT BEACH By Robert Burnham, City Attorney (SEAL) GAROLD B. ADAMS, Mayor OWNER: THE IRVINE COMPANY By _ Title By_ Title 23 OWNER: IRVINE COMMUNITY DEVELOPMENT COMPANY By _ Title By _ Title [ALL SIGNATURES SHALL BE NOTARIZED. EXECUTION ON BEHALF OF ANY CORPORATION SHALL BE BY TWO CORPORATE OFFICERS.] 24 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH BLOCKS: 5151, 5152, 5251 5252, 5253, 5351 5352 MODULES: VARIOUS BEING THOSE PORTIONS OF BLOCKS 91, 95 -98, 128 -134, 161 -164 OF IRVINE'S SUBDIVISION AS SHOWN ON A MAP THEREOF FILED IN BOOK 1, PAGE 88 OF MISCELLANEOUS RECORD MAPS AND PARCEL 2 AND A PORTION OF PARCEL 1 PER CORPORATION GRANT DEED BOOK 13439, PAGE 94 -132, RECORDED DECEMBER 19, 1979, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT AN ANGLE POINT IN THE EXISTING CITY BOUNDARY AS ESTABLISHED BY REORGANIZATION NO. R097 -35, "BONITA CANYON ANNEXATION TO THE CITY OF NEWPORT BEACH AND DETACHMENT OF THE SAME TERRITORY FROM THE CITY OF IRVINE ", SAID ANGLE POINT BEING THE SOUTHEASTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED AS "SOUTH 11 058'31" EAST 11.29 FEET" IN SAID REORGANIZATION NO. R097 -35, AND BEING COMMON TO "HARBOR VIEWS HILLS - PHASE 3" ANNEXATION TO THE CITY OF NEWPORT BEACH; THENCE CONTINUING ALONG THE EXISTING CITY BOUNDARY OF THE CITY OF NEWPORT BEACH PER "HARBOR VIEW HILLS -PHASE 3" ANNEXATION, THE "HARBOR VIEW HILLS SECTOR 4" ANNEXATION, THE "HARBOR RIDGE ANNEXATION NO. 89 ", THE "HARBOR RIDGE ANNEXATION NO. 82, THE "HARBOR VIEW HILLS -PHASE 3" ANNEXATION, THE "HARBOR VIEW HILLS -PHASE 4" ANNEXATION, THE "ANNEXATION NO. 57 (CENTERVIEW ANNEXATION) ", TO THE WESTERLY TERMINUS OF A LINE BEARING NORTH 89002153" WEST A DISTANCE OF 1,050.00 FEET, SAID WESTERLY TERMINUS BEARS NORTH 37 005'00" WEST 2,050.93 FEET FROM HORIZONTAL CONTROL STATION "BUCK" HAVING A GRID COORDINATE VALUE OF NORTHING 525199.56 U.S. SURVEY FOOT AND EASTING 1513406.22 U.S. SURVEY FOOT, BASED UPON THE CALIFORNIA STATE PLANE COORDINATE SYSTEM OF 1983, ZONE VI, NORTH AMERICAN DATUM OF 1983 PER RECORD OF SURVEY NO. 88 -1069, FILED IN BOOK 120, PAGE 37, RECORDS OF SAID COUNTY; THENCE CONTINUING ALONG (CENTERVIEW ANNEXATION) THE "HARBOR VIEW" ANNEXATION, ANNEXATION NO. 8, CITY BOUNDARY 1928 (COURT CASE N0. 23686) INCORPORATED SEPTEMBER 1, 1906; THE "CORONA HIGHLANDS" ANNEXATION, THE "SEAWARD 17" ANNEXATION, THE "CAMEO HIGHLANDS" ANNEXATION, THE ANNEXATION NO. 82 RECORDED AS "ANNEXATION NO. 84 ", THE "CAMEO HIGHLANDS" ANNEXATION, THE "ANNEXATION N0. 64 ", THE "CAMEO CLIFFS" ANNEXATION" THE "SHORE CLIFFS - CAMEO SHORES TIDELANDS ANNEXATION" THROUGH THEIR VARIOUS COURSES IN A GENERAL SOUTHEASTERLY, SOUTHWESTERLY, SOUTHEASTERLY, SOUTHERLY, WESTERLY, LEG \1331- LGL1.D0C (04123/W SE PAGE 1 OF 9 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH SOUTHERLY, EASTERLY, SOUTHERLY, WESTERLY, SOUTHERLY, SOUTHERLY, SOUTHWESTERLY, WESTERLY, NORTHWESTERLY, WESTERLY, SOUTHWESTERLY, SOUTHERLY, NORTHWESTERLY, WESTERLY, SOUTHEASTERLY, NORTHEASTERLY, SOUTHERLY, NORTHWESTERLY AND SOUTHWESTERLY DIRECTION TO AN ANGLE BOUNDARY OF THE CITY OF NEWPORT BEACH AS ESTABLISHED BY CAMEO SHORE TIDELANDS ANNEXATION "; SOUTHEASTERLY, SOUTHWESTERLY, SOUTHWESTERLY; SOUTHWESTERLY, POINT ON THE "SHORE CLIFFS - THENCE LEAVING SAID CITY BOUNDARY IN A DIRECT LINE NORTHEASTERLY ±3 MILES TO A POINT ON THE MEAN HIGH TIDE OF THE PACIFIC OCEAN; SAID POINT BEARING SOUTH 37 039'50" WEST ±600 FEET FROM THE NORTHWEST CORNER OF PARCEL 3 OF "PARK PROPERTY" AS DESCRIBED IN CORPORATION GRANT DEED TO THE STATE OF CALIFORNIA ON FILE DECEMBER 19, 1979, IN BOOK 13439, PAGE 94 -132 IN THE OFFICE OF THE COUNTY RECORDER, SAID POINT BEING THE SOUTHWESTERLY PROLONGATION OF THAT CERTAIN COURSE "NORTH 37 039'50" EAST 104.98 FEET" AS DESCRIBED IN SAID DEED IN THE WESTERLY BOUNDARY OF PARCEL 3 OF SAID "PARK PROPERTY "; THENCE ALONG SAID SOUTHWESTERLY PROLONGATION "NORTH 37 039150" EAST TO THE SOUTHWESTERLY TERMINUS OF THAT CERTAIN COURSE "NORTH 37 039'50" EAST 104.98 FEET" IN THE NORTHWESTERLY BOUNDARY OF SAID PARCEL 3, SAID TERMINUS ALSO BEING ON THE NORTHEASTERLY RIGHT OF WAY LINE OF THE PACIFIC COAST HIGHWAY BEING A HIGHWAY OF VARIABLE WIDTH, AND FURTHER DESCRIBED IN BOOK 487, PAGE 1 OF DEEDS IN THE OFFICE OF THE COUNTY RECORDER; THENCE LEAVING SAID NORTHEASTERLY RIGHT OF WAY LINE ALONG THE NORTHWESTERLY BOUNDARY LINE OF PARCEL 3 OF SAID "PARK PROPERTY ", NORTH FEET; THENCE NORTH 37 039'50" EAST 104.98 FEET TO THE BEGINNING OF A TANGENT 950.00 FOOT RADIUS CURVE CONCAVE TO THE SOUTHEAST; THENCE ALONG THE ARC OF SAID CURVE NORTHEASTERLY, 219.65 FEET THROUGH A CENTRAL ANGLE OF 13 019'50 "; THENCE I.EG \1331- LGLI.W 104/23/011 GE PAGE 2 OF 9 -7/) EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CAOO -XX TO THE CITY OF NEWPORT BEACH NORTH 50 059'90" EAST 1645.45 FEET TO THE BEGINNING OF A TANGENT 1300.00 FOOT RADIUS CURVE CONCAVE TO THE WEST; THENCE ALONG THE ARC OF SAID CURVE NORTHEASTERLY, 1590.29 FEET THROUGH A CENTRAL ANGLE OF 70005124 "; THENCE NORTH 19 010'99" WEST 387.88 FEET; THENCE SOUTH 84042'97" EAST 288.52 FEET; THENCE NORTH 58 039'02" EAST 1018.72 FEET; THENCE NORTH 74008'09" EAST 197.52 FEET; THENCE NORTH 60 027'90" EAST 137.93 FEET; THENCE SOUTH 68 059'28" EAST 150.05 FEET; THENCE NORTH 66 098'05" EAST 167.55 FEET; THENCE NORTH 04038'08" EAST 74.24 FEET; THENCE SOUTH 87 003'52" EAST 84.20 FEET; THENCE NORTH 2321'06" WEST 232.34 FEET; THENCE NORTH 51 008'19" EAST 310.79 FEET; THENCE NORTH 31050'33" EAST 223.66 FEET; THENCE NORTH 11055'46" WEST 290.27 FEET; THENCE NORTH 30 002'00" EAST 147.85 FEET; THENCE NORTH 35 052'56" WEST 232.03 FEET; THENCE NORTH 10 031'90" EAST 229.87 FEET; THENCE NORTH 46 028'08" EAST 55.17 FEET; THENCE LEG \1331- LGLI.O (04/23/01) SE PAGE 3 OF 9 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH NORTH 67 053'26" EAST NORTH 38 031'99" EAST NORTH 24035'29" EAST NORTH 03 052'93" EAST NORTH 19 050'91" EAST NORTH 49 001'92" EAST NORTH 73 052'21" EAST NORTH 60 099'09" EAST NORTH 11 098'97" EAST 138.16 FEET; THENCE 138.06 FEET; THENCE 129.77 FEET; THENCE 118.27 FEET; THENCE 141.40 FEET; THENCE 150.97 FEET; THENCE 172.80 FEET; THENCE 176.38 FEET; THENCE 312.62 FEET; THENCE NORTH 03 021'59" WEST 272.47 FEET TO THE SOUTHEASTERLY TERMINUS OF THAT CERTAIN COURSE "SOUTH 28 099'97" EAST 328.52 FEET" IN THE EXISTING WESTERLY BOUNDARY OF "PARK PROPERTY" AS DESCRIBED IN CORPORATION GRANT DEED TO THE STATE OF CALIFORNIA RECORDED NOVEMBER 17, 1981 ON FILE IN BOOK 14292, PAGE 953 -965 IN THE OFFICE OF THE COUNTY RECORDER; THENCE ALONG SAID WESTERLY BOUNDARY NORTH 28 099'97" WEST NORTH 11 021'29" EAST NORTH 08 021'57" WEST NORTH 29 097'31" EAST NORTH 80 008'95" EAST 328.52 FEET; THENCE 467.15 FEET; THENCE 68.73 FEET; THENCE 301.90 FEET; THENCE 383.72 FEET; THENCE NORTH 30 018'90" EAST 301.17 FEET; THENCE 1.EG \1331- 1.G1.1.0 104/23/01) SE PAGE 4 OF 9 )' 1 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH NORTH 79 056'51" EAST NORTH 49 096'51" EAST NORTH 75 036'00" EAST NORTH 88 017'55" EAST NORTH 02 027196" EAST NORTH 25 097'27" EAST NORTH 89 015'21" EAST NORTH 11 039'59" EAST NORTH 11 006'16" WEST NORTH 10 097'09" EAST NORTH 35 006'10" EAST NORTH 16 038'20" EAST NORTH 18 059'59" WEST NORTH 16 025'90" EAST NORTH 29 010'03" EAST NORTH 19 029'00" EAST NORTH 52 016'30" EAST NORTH 80 017'00" EAST NORTH 37 027'15" EAST SOUTH 33 000'20" EAST NORTH 70 038'36" EAST 996.86 FEET; 390.27 FEET; 152.80 FEET; 404.18 FEET; 186.17 FEET; 330.97 FEET; 308.03 FEET; 2549.93 FEET; 1038.99 FEET; 235.15 FEET; 551.26 FEET; 181.60 FEET; 188.16 FEET; 424.32 FEET; 196.98 FEET; 152.80 FEET; 67.01 FEET; 148.12 FEET; 274.61 FEET; 789.39 FEET; 784.31 FEET; THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE THENCE LEGU331-MLI.o m4i23i01) SE PAGE 5 OF 9 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH SOUTH 02 059'35" WEST 306.42 FEET; THENCE SOUTH 22 006'00" EAST 356.17 FEET; THENCE SOUTH 35 018'58" EAST 2345.66 FEET; TO WESTERLY TERMINUS OF THAT CERTAIN COURSE "SOUTH 99 031'21" EAST 678.84 FEET" IN THE EXISTING NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132; THENCE LEAVING THE BOUNDARY OF SAID BOOK 14292, PAGE 953 -956 AND ALONG THE NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132 SOUTH 99 031'21" EAST 678.84 FEET; THENCE SOUTH 71 026'28" EAST 584.39 FEET; THENCE SOUTH 85 006'26" EAST 515.88 FEET; THENCE SOUTH 79 032'30" EAST 420.20 FEET; THENCE SOUTH 66 097'38" EAST 548.66 FEET; TO A POINT ON THE SOUTHEASTERLY LINE OF BLOCK 161 OF SAID IRVINE'S SUBDIVISION; THENCE LEAVING THE NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132 AND ALONG THE SOUTHEASTERLY LINE OF SAID BLOCK 161 �G\133] -wx3.o (04 /23 /01) SE PAGE 6 OF 9 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH NORTH 40 033'59" EAST 262.79 FEET; TO A POINT ON THAT CERTAIN COURSE BEARING "NORTH 68 022'13" WEST 560.20 FEET" IN THE EXISTING BOUNDARY OF "THE PROPERTY" DESCRIBED IN GRANT DEED TO THE CITY OF LAGUNA BEACH RECORDED JUNE 27, 1991 AS DOCUMENT NO. 91- 330557 IN THE OFFICE OF THE COUNTY RECORDER; THENCE ALONG SAID COURSE AND THE SOUTHWESTERLY BOUNDARY OF "THE PROPERTY" OF SAID GRANT DEED NORTH 68 021'18" WEST 321.71 FEET; THENCE NORTH 60 007'59" WEST 785.39 FEET; THENCE SOUTH 83 028'56" WEST 326.82 FEET; THENCE NORTH 66 099'01" WEST 658.40 FEET; THENCE NORTH 39 006'91" WEST 465.65 FEET; THENCE NORTH 59 032'38" WEST 526.14 FEET; THENCE NORTH 39 026'23" WEST 410.92 FEET; THENCE NORTH 12 099'59" EAST 337.73 FEET; THENCE NORTH 29 022'29" WEST 331.27 FEET; THENCE NORTH 38 033'39" WEST 489.32 FEET; THENCE NORTH 22 019'13" WEST 315.36 FEET; THENCE NORTH 41 091'22" WEST 538.97 FEET; THENCE NORTH 46 030'92" WEST 848.19 FEET; THENCE NORTH 71 006'53" WEST 299.14 FEET; THENCE LEG \1331- LGLI.D 104 /23/01) GE PAGE 7 OF 9 ?G EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH SOUTH 89 008'09" WEST 252.22 FEET; TO THE SOUTHWESTERLY PROLONGATION OF THE COURSE DESCRIBED AS "NORTH 40 °00'00" EAST 660.00 FEET" IN ANNEXATION NO. 1 (FRAZIER ANNEXATION) TO THE CITY OF IRVINE; THENCE ALONG SAID PROLONGATION NORTH 40 033'37" EAST 221.32 FEET TO A POINT IN THE SOUTHEASTERLY BOUNDARY OF THE CITY OF IRVINE AS ESTABLISHED BY "REORGANIZATION NO. RO97 -09" DISTANT THEREON SOUTH 69 016'17" EAST 1339.16 FEET FROM THE NORTHWESTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED AS "NORTH 69 016'17" WEST 9968.85 FEET" IN THE CENTERLINE OF TR -73 (SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR) AS DESCRIBED IN PARCEL 1 OF SAID REORGANIZATION NO. RO97 -09; THENCE ALONG SAID EXISTING CITY BOUNDARY AND THE CENTERLINE OF TR -73 PER SAID "REORGANIZATION NO. RO97 -09" THROUGH THEIR VARIOUS COURSES IN A GENERAL NORTHWESTERLY DIRECTION TO AN ANGLE POINT IN THE EXISTING CITY OF NEWPORT BEACH BOUNDARY AS ESTABLISHED BY "REORGANIZATION NO. RO97 -35 ", SAID POINT BEING THE SOUTHEASTERLY TERMINUS OF THAT COURSE DESCRIBED AS "NORTH 690 29'23" WEST 2092.48 FEET "; THENCE ALONG SAID EXISTING CITY BOUNDARY PER SAID "REORGANIZATION NO. RO97 -35" THROUGH ITS VARIOUS COURSES IN A GENERAL NORTHWESTERLY, SOUTHERLY, SOUTHEASTERLY AND NORTHWESTERLY DIRECTION TO THE TRUE POINT OF BEGINNING. CONTAINS 5,615 ACRES, MORE OR LESS. ATTACHED HERETO AND MADE A PART HEREOF, IS A MAP DESIGNATED AS EXHIBIT B.. THIS LEGAL DESCRIPTION WAS PREPARED BY ME, OR UNDER MY SUPERVISION ON July 12, 2000. REX S. PLUMMER DATE LS 6641 EXPIRATION DATE 12/31/03 LEG \1331- LGLI.D (04/23/01) SE PAGE 8 OF 9 7;� EXHIBIT 'A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH THIS PROPOSAL DOES MEET THE APPROVAL OF THE ORANGE COUNTY SURVEYOR'S OFFICE. DATED THIS DAY OF , 2001. BY: JOHN CANANS, COUNTY SURVEYOR LEG \1331 -LGLI. DOG (01/23/01) SE PAGE 9 OF 9 MI {] c. s I I /I I I I I z °olg all awl =o I o l, - - -- — all - - -a ;IE O O z"I� I I O o I z I I fQ I I t � - - -;I; —— all — ,I I I O °I' ' o I N Iz lz I „ O o �� SOU T Ima zo I °_ UA U al Z, EXHIBIT .INNING AND ENVIRONMENTAL HISTORY • Date Document Action/Approval Relationship to Proposed Project 1976 -79 Irvine Coastal Community Approved by the County: denied Established a maximum residential build out for General Plan Amendment by the California Coastal Irvine Coast of 12.000 DUs. Acted as County Final EIR No. 134. Commission (as LCP document) General Plan and proposed as first coastal LCP to Coastal Commission. 19821 Irvine Coast Local Coastal Approved by the County: certified Established as first LCP for Irvine Coast 1983 Program 80- 41Land Use by the Califomia Coastal Maximum residential build out of 2,000 units. Element Amendment 80.4. Commission provided other land uses. development policies. Supplemental EIR No. 237, and regulations. Determined Coastal Act LCP Implementation Action Consistency. For PA 3 (similar area to proposed Plan. project area) established maximum of 85 SF DUs. PA14: 250 ovemight accommodations and 25.000 square feet of related commercial uses. 19871 First Amendment to the Irvine Approved by the County. and Established a maximum residential build out of 1988 Coast Local Coastal Program certified by the California Coastal 2.600 units. land uses, intensity of use. Land Use Plan and Commission development policies. and regulations. Implementing Ordinance tor Me Determined Coastal Act consistency. Similar land Irvine Coast Planning Unit use designations and build out within proposed project area as was approved in the 1982 LCP. 1988/ FEIR No. 486. Irvine Coast Certified by the County of Serves as an implementing mechanism for the 1996 Planned Community Orange Irvine Coast LCP. Addressed impacts based on Development Agreement build out of project pursuant to the 1988 LCP and Addendum for Development Development Agreement Agreement First Amendment 88 FEIR No. 485. Irvine Coast Certified by the County of Addressed environmental impact of backbone Planned Community Master Orange infrastructure. roadways. and subdivision of 2.813 Coastal Development Permit acres. evaluating 23 of 44 Master CDP land use MCOP 88-11P and Vesting A' planning areas. EIR analysis included PAs 3A. 38 Tentative Tract Map No. 13337 and 14: addressed construction of Sand Canyon Avenue through PAs 3A and 38: partial widening of PCH along The Irvine Company property; construction of backbone drainage system as recommended in the RMDRMP: construction and/or relocation of master utilities and construction of backbone domestic water storage and distribution system and backbone wastewater collection system. FEIR 485 did not address specific development proposals for residential. tourist commercial. or golf course development Subsequent EIRs. in conjunction with subdivision 'B' maps and project Coastal Development Permits. have addressed area s proposals. 1989 Final EIR No. 511. Irvine Coast Certified by the County of _c Evaluated construction level impacts for 11 Planned Community, Phase L Orange individual projects (residential and golf course uses) in addition to the realignment of Lower Loop Road (now named Pelican Hill Road). Included PAs 3A, 38. 14. Proposed development in PAs 3A. 38. and 14. as addressed in FEIR 511. was low density (estate/custom lot) residential units. FEIR 511 addressed the First Amendment to the MCDP and the Second revised Vesting 'A' Tentative Tract map 13337. As part of the First Amendment to the MCDP. planning area boundaries. including those of 3A. 38. and 14. were adjusted from boundaries established in the Date Document Action/Approval Relationshi to Proposed Project original MCDP and LCP documents: and development densities in PAS 3A and 38 were changed from 0-2 du/ac as stated in the certified LCP. to 0.3 du/ac in the MCDP First Amendment 1989 Refined Master Drainage and Approved by the County of Recommended backbone drainage improvement Runoff Management Plan Orange system for the NCPC. Drainage and sedimentation control measures are included as part of each subsequent development project within the MCDP/NCPC. The RMDRMP addressed facilities to mitigate increased peak runoff volumes and rates due to planned development The RMDRMP is the master improvement plan from which subsequent site specific storm runoff management plans for NCPC development areas are derived. Each development project must engage a runoff management system that will maintain post- project flow rates to within ten percent of the pre - developed condition. in accordance with the certified LCP. 1994 Addendum to FEIR No. 511 -PA Certified by the County of Site Development Permit to allow mass grading in 940113 Site Development Orange PA 3A and for a borrow site (in PA 38) in an area Perm&Wfshbone Hill Grading previously analyzed for development 1995 Mitigated Negative Declaration Approved by the County of Negative Declaration addressed potential No. IP- 95.100, Transportation Orange environmental effects of deleting segments of Element Amendment 95.1 Sand Canyon Avenue and San Joaquin Hills Road from the County Master Plan of Arterial Highways (MPAH). Most relevant to the proposed project. NC Phase IV -2. the approval of the MPAH amendments removed the master planned ID segment of San Canyon Avenue from its existing terminus just north of PCH to the San Joaquin Hills Transportation Corridor (SJHTC). and deleted the then planned interchange of San Canyon Avenue at the SJHTC. The removal of this planned segment was the result of changes in future land uses in the City of Irvine (PA 22) that would result in more open space/less development and in unincorporated Orange County property/Newport Coast/Newport Ridge areas. Therefore, San Canyon Avenue north of PCH has been changed in name (application in review at County) to Crystal Cove Drive. and will serve as a community accesslentry street rather than a County arterial. The LCP Second Amendment further modffle6W 1996 Second Amendment to the Approved by the County of Newport Coast Local Coastal Orange. and certified by the LCP by adjusting planning area boundaries and Program Land Use Plan and California Coastal Commission open space boundaries adjacent to Crystal Cove implementing Ordinance for the State Park to improve habitat connectivity: the Newport Coast Planning Unit Second Amendment increased the maximum number of dwelling units allowed in undeveloped planning areas to match the low end of density ranges established by the land use categories while maintaining the maximum allowed 2.600 total dwelling units in the NCPC: technical revisions were made to the LCP including name changes to roads and planned communities. 1996 Natural Community Certified by the County of Addressed NCCPIHCP for CentraVCoastal Orange Conservation Plan and Habitat Orange. California Department of County. Plan includes 37,000 acre reserve Conservation Plan Joint Fish and Game. and U.S. Fish system, authorizes incidental take of coastal sage Programmatic FEIR No. and Wildlife Service scrub, and provides regulatory coverage for 39 553/FE /S 96-26 individual species. The proposed project site is not within the NCCP Reserve since the site was master planned for development Mitigation measures prescribed in FEIR 511 and FEIR 553IFEIS 96 -26 (NCCP) pertain to project impacts 553rFEIS 96-26 individual soecies. The proposed oroiect site is not : I Date Document Action/Approval Relationship to -Proposed Project 1996 Addendum to Final EIR No. Adopted by the County of Addressed proposed amendments to the Central 553 for the County of Orange Orange and Coastal NCCPIHCP to reflect relevant Central and Coastal Subregion provisions of the Second Amendment to the Natural Community Newport Coast Local Coastal Program (LCP). The Conservation Plan and Habitat amendments to the NCCPIHCP included a) Conservation Plan revisions to the Coastal Subarea Reserve to reflect new development and open space configurations provided for in the LCP Second Amendment; b) corresponding elimination of certain Special Linkage Areas, and c) provisions for infrastructure to be located in areas proposed to be added to the Coastal Subarea Reserve. The amendments to the Reserve System boundaries represent an overall increase in total acreage of the Coastal Subarea Reserve, and significant improvements in wildlife connectivity within the Reserve System. 1997 1 Addendum PA 970046 to E/R Certified by the County of . Addressed a modified development plan for one - No. 511 Orange half of Planning Area 3A, known as Development Area (DA) 3A -1. The proposed project site is not within DA 3A -1. 1997 Settlement Agreement between Agreement has been executed. Establishes maximum dwelling units by planning The Irvine Company, Friends of area and various other restrictions on the Irvine Coast, Laguna development, which are reflected in the proposed Greenbelt, Inc., and Stop project. Polluting OurNewport • fts kalM� Vw*portwnrDCxC • r' 0 EXHIBIT D SUMMARY OF COUNTY DEVELOPMENT APPROVALS The Components of the Development Plan include: A. Newport Coast Local Coastal Program Second Amendment. Approved by the California Coastal Commission on October 10, 1996; Certified by the County of Orange Board of Supervisors on December 3, 1996 (Resolution No. 96-861 and Ordinance No. 096 - 3974); and Certified by the California Coastal Commission on January 21, 1997; B. Newport Ridge Planned Community Program: Approved by the County of Orange Board of Supervisors on March 17, 1998 (Resolution Nos. 98 -87 and 98 -88; Ordinance No. 98 -3); C. Newport Coast Master Coastal Development Permit Seventh Amendment (PA 970152): Approved by the County of Orange Planning Commission on July 21, 1998; D. First Amendment to the Irvine Coast Development Agreement: Recorded April 2, 1997 (No. 19970149745); and ® E. Related secondary implementing approvals, permits and actions pursuant to and consistent with the foregoing (e.g., subdivision maps, individual coastal development pests, grading plan approvals and permits, etc.). EXHIBIT E MITIGATION MEASURES We term Mitigation Measures includes, but is not limited to, the mitigation measures approved in conjunction with the certification or approval of the following environmental and planning documents. This Exhibit is for information only and does not constitute any modification or amendment or any mitigation measure or condition adopted with reference to the Project. The environmental documents listed in this Exhibit are on file in the Planning Department of the City of Newport Beach. Irvine Coastal Community General Plan Amendment Final EIR No. 134; 2. Irvine Coast Local Coastal Program 80- 4/Land Use Element Amendment 80-4, Supplemental EIR No. 237; LCP Implementation Action Plan; 3. FEIR No. 486, Irvine Coast Planned Community Development Agreement. Addendum for Development Agreement First Amendment 4. FEIR No. 485, Irvine Coast Planned Community Master Coastal Development Permit MCDP 88 -11P and Vesting °A° Tentative Tract Map No. 13337 5. Final EIR No. 511, Irvine Coast Planned Community, Phase I 6. Refined Master Drainage and Runoff Management Plan 0. Addendum to FEIR No. 511 -PA 940113 Site Development PermitlWishbone Hill Grading 8. Mitigated Negative Declaration No. IP -95 -100, Transportation Element Amendment 95-1 9. Natural Community Conservation Plan and Habitat Conservation Plan Joint Programmatic FEIR No. 553IFEIS 96 -26 10. Second Amendment to the Newport Coast Local Coastal Program Land Use Plan and Implementing Ordinance for the Newport Coast Planning Unit 11. Addendum to Final EIR No. 553 for the County of Orange Central and Coastal Subregion Natural Community Conservation Plan and Habitat Conservation Plan 12. Addendum PA 970046 to EIR No. 511 C1 `J EXHIBIT F • AFFORDABLE HOUSING IMPLEMENTATION PLANS The term Affordable Housing Implementation Plans refers to two plans prepared for the Environmental Management Agency of the County of Orange. The plan for that portion of the Property within the Coastal Zone - identified as the "Affordable Housing Implementation Plan - Irvine Coast Planned Community" - was prepared by Affordable Housing Consultants and was approved by the County on October 29, 1991. The plan for the Newport Ridge - identified as the "Affordable Housing Implementation Plan —The San Joaquin Hills Planned Community" -was prepared by FORMA and was approved by the County on November 2, 1995. These Affordable Housing Implementation Plans are available for public inspection in the Planning Department of the City of Newport Beach during normal business hours. • L�li.l AMENDED IN SENATE MAY 2, 2001 AMENDED IN SENATE APRIL 17, 2001 AMENDED IN SENATE MARCH 27, 2001 SENATE BILL No. 516 Introduced by Senator Johnson (Coauthor: Assembly Member John Campbell) February 22, 2001 An act to add Section 30519.2 to the Public Resources Code, relating to coastal planning, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 516, as amended, Johnson. Local coastal programs. (1) The California Coastal Act of 1976 requires that, after a local coastal program is certified and all implementing actions within the area affected become effective, the California Coastal Commission ceases to exercise any development review authority over any new development proposed within the area affected and delegates that authority to the local goverment that is implementing the local coastal program. This bill would require the County of Orange to exercise all development review authority pursuant to the certified local coastal program over those parcels and areas within the county, generally known as the "Annexed Area," upon the effective date of any reorganization or annexation by the City of Newport Beach that includes all or part of the Annexed Area. The bill would authorize the City of Newport Beach, at any time after the effeetive Elate of the bill that annexation, if it elects to assume 96 FEN Attachment C L SB 516 —2 —. coastal management responsibility for the Annexed Area, to begin preparation of a local coastal program for that area, and to adopt provisions of the County of Orange's certified local coastal program that would apply to the Annexed Area. The bill would require that specified statutes and regulations governing procedures for the preparation, approval, and certification of a local coastal program by the California Coastal Commission be applicable to the eity's adoption preparation, approval, and certification of a local coastal program for the Annexed Area. The bill would require the City of Newport Beach, if it deeidesto apply obtains certification of a local coastal program for the Annexed Area pursuant to those provisions, upon the effective date of that certification, to exercise all of the authority under the act granted to a local government with a certified local coastal program, and would provide that the aforementioned provisions requiring the County of Orange to exercise all development review authority pursuant to the certified local coastal program over those parcels and areas within the county defined as the Annexed Area shall become inoperative. The bill would require the City of Newport Beach to submit to the commission for approval and certification on or before June 30, 2003, or 24 months after the effective date of the annexation of the Annexed Area, the city's local coastal program for all of the of all er paft of the Anne)Eed:Offea geographic area within the coastal zone and the city's corporate boundaries as of June 30, 2000. By requiring the City of Newport Beach to provide fef submit a eefti€ied local coastal program for specified territory that lies inside the city limits within a specified time period, the bill would impose a state - mandated local program. The bill would require the City of Newport Beach to submit a late fee of $1,000 per month to the commission, to be deposited into an account created by the bill, until the city commences implementation of an effectively certified local program, as specified. (2) The bill would state the findings and declarations of the Legislature that, due to unique circumstances applicable to the County of Orange, a statute of general applicability cannot be made applicable. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. 96 IV -3— SB 516 This bill would provide that no reimbursement is required by this act for a specified reason. (4) This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State - mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 30519.2 is added to the Public 2 Resources Code, to read: 3 30519.2. (a) (1) This seetien subdivision shall only apply to 4 territory leeated within the Gounty of 5 described in paragraph (2) and defined as the y "Annexed Area." 6 (2) For purposes of this section, "Annexed Area" means the 7 territory consisting of approximately 5,450 acres in the County of 8 Orange bounded to the north by the inland boundary of the coastal 9 zone, to the east by the western boundary of Crystal Cove State 10 Park, to the south by the state's outer limit of jurisdiction over the 11 Pacific Ocean, and to the west by the city limits of the City of 12 Newport Beach. 13 0))- 14 (3) This seetion shall take °" ° °' subdivision shall be operative 15 upon the effective date of the annexation of all or part of the 16 Annexed Area by the City of Newport Beach. 17 (e)- 18 (4) Upon the recordation of a certificate of completion of any 19 reorganization or change of organization that results in the 20 annexation of all or part of the Annexed Area by the City of 21 Newport Beach, both of the following shall occur: 22 (�} 23 (A) The local coastal program applicable to any part of the 24 Annexed Area shall continue to be the certified local coastal 25 program for the County of Orange. 26 (2-)- 27 (B) The County of Orange shall continue to exercise all 28 development review authority described in Section 30519, as 29 delegated to it by the commission pursuant to consistent with the 30 certified local coastal program €ef of the County of Orange for the 31 Annexed Area. 96 i ; SB 516 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —4— (d) (1) (5) If, at any time after the duiing the 2001 peiiieft of the 2001 02 Regular Session, recordation of the certificate of completion of the annexation of the Annexed Area, the City of Newport Beach elects to assume coastal management responsibility for the Annexed Area, the city may begin preparation of a local coastal program for that area. The City of Newport Beach may adopt provisions of the County of Orange's certified local coastal program that shall apply to the Annexed Area. All of the procedures for the preparation, approval, and certification of a local coastal program set forth in this ehapteF division, and any applicable regulations adopted by the commission, shall apply to the eity's adeptien preparation, approval, and certification of a local coastal program for the Annexed Area. (2) if the City of Newpeft Beaeh deeides to apply-40F punuati, to pafagFaph (1), tipen the effeeti-e-- date of that effeetive date of the anit-exatieft E)f all of paA of the Amn-exed Area. (6) If the City of Newport Beach obtains certification of a local coastal program for the Annexed Area, the city shall, upon the effective date of that certification, exercise all of the authority granted to a local government with a certified local coastal program, and the provisions of paragraph (4) shall become inoperative. (b) On or before June 30, 2003, or 24 months after the annexation of the Annexed Area, whichever event occurs firs4 the City of Newport Beach shall submit to the commission for approval and certification the city's local coastal program for all of the geographic area within the coastal zone and the city's corporate boundaries as of June 30, 2000. The submittal may include a local coastal program segment for the Annexed Area that will implement 09 qv -5— SB 516 1 the local coastal program for the County of Orange as described 2 in paragraph (4) of subdivision (a). 3 (c) If the City of Newport Beach fails to submit a local coastal 4 program to the commission for approval and certification 5 pursuant to subdivision (b) or does not have an effectively certified 6 local coastal program within six months after the commission's 7 approval of the local coastal program, the City of Newport Beach 8 shall submit a monthly late fee of one thousand dollars ($1,000) 9 to the commission, to be deposited into the Newport Beach Local 10 Coastal Program Forfeiture Account, which is hereby created in 11 the General Fund. Moneys in the account may be expended, on 12 appropriation by the Legislature, for purposes of coastal 13 preservation and protection. The City of Newport Beach shall pay 14 the monthly late fee until the time that the city commences 15 implementation of an effectively certified local coastal program. 16 The city may not recover the cost of the late fee from any owner or 17 lessee of property in the coastal zone. 18 SEC. 2. The Legislature finds and declares that, due to the 19 unique circumstances applicable to the territory generally known 20 as the Annexed Area within the County of Orange relating to the 21 certified local coastal program for the county, a statute of general 22 applicability cannot be made applicable within the meaning of 23 subdivision (b) of Section 16 of Article IV of the California 24 Constitution. 25 SEC. 3. No reimbursement is required by this act pursuant to 26 Section 6 of Article XM B of the California Constitution because 27 a local agency or school district has the authority to levy service 28 charges, fees, or assessments sufficient to pay for the program or 29 level of service mandated by this act, within the meaning of 30 Section 17556 of the Government Code. 31 SEC. 4. This act is an urgency statute necessary for the 32 immediate preservation of the public peace, health, or safety 33 within the meaning of Article IV of the Constitution and shall go 34 into immediate effect. The facts constituting the necessity are: Irt 35 In deciding to annex territory in the coastal zone, as defined in 36 Section 30103 of the Public Resources Code, generally known as 37 the "Annexed AFea", Area, " the City of Newport Beach seeks to 38 preserve the open -space dedications and entitlements protected by 39 an existing certified local coastal program. At the same time, in 40 order to effectively fund police and fire protection services among 96 SB 516 —6— 1 municipal services to the area, the city needs the property tax 2 revenues from the Annexed Area to be allocated to the city for the 3 2002 -03 fiscal year. U 96 I' ITEM 32 NEWPORT BEACH CITY COUNCIL June 26, 2001 Regular Meeting TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager SUBJECT: Amendments to the Annexation and Development Agreement for the Newport Coast --ADDENDUM At the Planning Commission's June 21, 2001 hearing on this matter, the Commission approved a motion to recommend that the Council approve the proposed amendments to the Development Agreement. The Commission also accepted staff's suggestion to make additional non - substantive amendments to the Development Agreement. These include: / A correction and update of development approvals under Exhibit D to the Development Agreement (please insert into your packet). / Corrections to Sections 4.4 (a) and (b). These corrections are provided to the Council in corrected form on a new Page 13 for the Development Agreement and are summarized on a new Attachment A to the Staff Report - please insert both the new Page 13 and the updated Attachment A into your packet. u • EXHIBIT D Summary of County Development Approvals The components of the Development Plan include: A. Newport Coast Local Coastal Program 2nd Amendment and all further amendments adopted before the City assumes permit issuing authority for the property as provided for within this Agreement. The Newport Coast Local Coastal Program, 2nd Amendment was approved by the California Coastal Commission on October 10, 1996; certified by the County of Orange Board of Supervisors on December 3,1996 (Resolution No. 96 -861 and Ordinance No. 096- 3974); and Certified by the California Coastal Commission on January 21,1997; B. Newport Ridge Planned Community Program: Approved by the County of Orange Board of Supervisors on March 17, 1998 (Resolution Nos. 98087 and 98 -88; Ordinance No. 98 -3); C. Newport Coast Master Coastal Development Permit 711, Amendment (PA 970152); Approved by the County of Orange Planning Commission on July 21, 1998; D. First Amendment to the Irvine Coast Development Agreement: Recorded April 2, 1997 (No. 19970149745); and E. Related secondary implementing approvals, permits, and actions pursuant to and consistent with the foregoing (e.g. subdivision maps, individual coastal development permits, grading plan approvals and permits, etc.). CJ 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard durational limits of any applisahle permits issued to OWNER pursuant to Development Approvals. 4.4 Changes and Amendments. The parties acknowledge that Development of the Project w44 "Tay require Subsequent Development Approvals. , OWNER may determine that changes Rd desiFabme in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to p4e+-Development Approvals or the Development Plan to effect uate such change, - eh and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan that a:e sensistent with the band Use ElerneRt designatiens fOF the PrePeFt,y unless the proposed modifications: !a -would materially- reduce the amount of open space intended for dedication to the public, or (b) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (c) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (d) would materially increase the density and /or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. 13 7 m E 1 1 }1 A� W L a T CL 0 �1 AX W C a 0 V 0 CL I ez v/ ca ^� y i V V/ m y as 0 . a 9 u 0 a x 0 0 n a a LL L �y N E C N m 8 N C L m e N q0 U E m 0 N y d O 3 d c_ E v c E Ea N d SS oa owl yJ y N C «oa v o > O � � E O y N a— U $ q 3 0 0 N y- C b m a y 0 � 3 U a c E a N 0 a > Q� V 0 c L m' q C -� `o 'u d j E m m o Em mO N m c C m O y �aL) Z N m �ry U a JL J N m B; C c 8 q Zy i 2'. U O) m N C La m O Of T U U �A _Q C 8 a C 0 a` T N w m O 6 y 5 � d � m c S L d 0 ° a m x 5 En m o ° 5 i mbd U � � c g m 0 C m o a m as m m _ E °m 7 � m b O yqc a N E E a m c d m y e rym d S jC S �p O E2 W c U m ^ c N 0 V E 3 E e c w ry b2 d m j N �EU �f � J 3 u ; _ � U > d e« L) O o m P ; C C E 0 Q O i m U H d m O 0 m U a K 0 n° m m g LNm � U m 5 rp o �4 m L s N d V � _ q US c « J y N N C J > y Q 6 m m � C N E U $D > p Nm m y Z 5 = "' yU vi a > L p N m Q X LO LC m6 a qtJ oG n N yy y 0 a m a JOLW� N N E Q C m I E pp' ° V N _T O U N V 8�d mpp 8N � C d Z .9 Z D �0 E E N AW L a A� W a Mali O x c c a N O It O Q C z N ^c a i V E A, IE W V Ow C L- a. 2 n• C � d 2 On 6 m _ d m t m " N q y29 Y O 2 � t ng w � D U � ° � � c c g O _Z G O d G Q m Q m C C O O N N 6 E 'E m C WE U O o 55 d D o n 5 = cc q� ' N yy YY11 d A m m m d E d d m U U U U U U U U U U U A r 'pQp U d U U O O O O O Z Z f Z Z Z Z U U Z$ Z Z 2 Z Z Z 3 m d Cm > 6 2 2 2 U F a d m nT c N 3 d m N E C LCq CO rm p p y$ muu` L N U Om C C C O y > N a y z G Ly _ F yi m E E o c❑ o E a� 8 S 8 c y E E ° U a L) w L) . F ❑ U❑ U¢ ❑ U❑> a y❑ a O R d G N a g � 8 N O � E° G a E F; a cY y K F F a H tfc a m U❑ w LL lz rv, m 6 A rv, M m O1 � N N ,G m IG 10 y U a 2 N rJ c�Rm 4 z O13a having unsatisfactory levels of service taking into account the circulation improvements constructed or facilitated by OWNER pursuant to conditions imposed for development of the Project, including construction of Newport Coast Drive, extension of San Joaquin Hills Road, widening of Pacific Coast Highway, and facilitation of construction of the San Joaquin Hills Transportation Corridor. 3.4 Cooperation. Subject to and in reliance upon the representations and covenants of the CITY herein, OWNER will support the annexation of the Property by the CITY. 3.5 Termination of Annexation Proceedings. This Agreement may be terminated by OWNER in the event that CITY fails to comply with the requirements of Paragraph 3.1 above with respect to any proposed annexation of Property to CITY, or if conditions imposed by or through the Local Agency Formation Commission on the annexation are determined by either party to conflict materially with its rights and obligations under any provision of this Agreement. 4 4 DEVELOPMENT OF THE PROPERTY UPON ANNEXATION AND ADOPTION OF THE DEVELOPMENT PLAN. Following annexation of the Property by CITY, the following provisions shall apply: 4.1 Rights to Develop. Subject to the terms of this Agreement, following annexation of the Property OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. Pending annexation to CITY, OWNER shall have the right to seek approvals from County for the Development of the Property, and to develop the Property, consistent with the Development Plan. CITY expressly agrees to take no action that would or could (a) interfere with or impair the Development Approvals: (b) interfere with or impair the OWNER's ability to complete the project: (c) materially increase the cost of completing the proact without the OWNER's express written consent: or (d) cause the transfer of any permitting or development review authority pursuant to State or local law. including Government Code section 30519, from the County to the City or any other agency until such time as that 4.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable 12 to Development of the Property, shall be those contained in the Development Plan and those Land Use Regulations not inconsistent with the Development Plan an that were'in fuU force and effect aF of June 26i'2001': 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard durational limits of any applicable permits issued to OWNER pursuant to Development Approvals. K 4.4 Changes and Amendments. The parties acknowledge that Development of the Project w4l4kelymay require Subsequent Development Approvals._, WNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to pfief-Development Approvals or the Development Plan to effect sate such change7wh#sl4 and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan that are ,.,,. siGteRt With thA i AMIJ 1 lse rmle -F eAt degi. Rata, fGF the PF9P9.+., unless the proposed modifications; (a) -would materially- reduce the amount of open space intended for dedication to the public, or (b) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (c) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (d) would materially increase the density and /or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. 13