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HomeMy WebLinkAbout03 - Development Agreement for the Vivante Senior Housing Project Located at 850 and 856 San Clemente DriveQ SEW Pp�T CITY OF z NEWPORT BEACH c<,FORN'P City Council Staff Report September 10, 2019 Agenda Item No. 3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Makana Nova, Associate Planner, mnova@newportbeachca.gov PHONE: 949-644-3249 TITLE: Second Reading and Adoption of Ordinance No. 2019-13 Amending PC -19 (San Joaquin Plaza Planned Community) and Ordinance No. 2019-14 Approving a Development Agreement for the Vivante Senior Housing Project Located at 850 and 856 San Clemente Drive (PA2018-185) ABSTRACT: The second reading and adoption of these two ordinances will be the final City Council action necessary to amend the PC -19 (San Joaquin Planned Community Development Plan) and to approve a development agreement between the City of Newport Beach and Nexus Development Corporation for the Vivante Senior Housing Project located at 850 and 856 San Clemente Drive. RECOMMENDATION: a) Find that the EIR Addendum for the Vivante Senior Housing Project certified by the City Council on August 13, 2019, and Museum House Project Environmental Impact Report (EIR) No. ER2016-002 (SCH No. 2016021023) certified by the City Council on November 29, 2016, by Resolution No. 2016-126 was prepared for the project in compliance with California Environmental Quality Act (CEQA), the State CEQA Guidelines, and City Council Policy K-3; b) Conduct second reading and adopt Ordinance No. 2019-13, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Planned Community Development Plan No. PC2018-001 Amending the San Joaquin Plaza Planned Community (PC -19) Located at 850 and 856 San Clemente Drive (PA2018-185); and c) Conduct second reading and adopt Ordinance No. 2019-14, An Ordinance of the City Council of the City of Newport Beach, California, Approving Development Agreement No. DA2018-005 for the Vivante Senior Housing Project Located at 850 and 856 San Clemente Drive (PA2018-185). 3-1 Ordinance No. 2019-13 Amending PC -19 (San Joaquin Plaza Planned Community) and Ordinance No. 2019-14 Approving a Development Agreement for the Vivante Senior Housing Project Located at 850 and 856 San Clemente Drive (PA2018-185) September 10, 2019 Page 2 FUNDING REQUIREMENTS: There is no budget impact related to this application. The applicant is required to reimburse the City for all costs associated with the review of the application. DISCUSSION: On August 13, 2019, the City Council introduced and passed to a second reading Ordinance No. 2019-13, which changes the San Joaquin Plaza Planned Community (PC -19) land use designation from Civic/Cultural/Professional/Office to Senior Housing/Memory Care for 850 and 856 San Clemente Drive and includes new land use and development standards. The City Council also introduced and passed to second reading Ordinance No. 2019-14, which approves development agreement between the City and Nexus Development Corporation. ENVIRONMENTAL REVIEW: The EIR Addendum and Museum House EIR No. ER2016-002 (SCH No. 2016021023) were prepared in accordance with the implementing guidelines of CEQA, the State CEQA Guidelines, and City Council Policy K-3, which included an analysis of the proposed zoning changes and Agreement. The City Council certified the EIR addendum on August 13, 2019, by Resolution No. 2019-74 and certified the Museum House EIR on November 29, 2016, by Resolution No. 2016-126. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Ordinance No. 2019-13 (PC2018-001) Attachment B — Ordinance No. 2019-14 (DA2018-005) 3-2 Attachment A Ordinance No. 2019-13 (PC2018-001) 3-3 ORDINANCE NO. 2019-13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING PLANNED COMMUNITY DEVELOPMENT PLAN NO. PC2018-001 AMENDING THE SAN JOAQUIN PLAZA PLANNED COMMUNITY (PC -19) LOCATED AT 850 AND 856 SAN CLEMENTE DRIVE (PA2018-185) WHEREAS, an application was filed by Nexus Development Corporation representing Vivante Newport Center, LLC ("Applicant"), with respect to property located at 850 and 856 San Clemente Drive, and legally described as Parcel 2 of Newport Beach Lot Line Adjustment No. 95-3 together with Parcel 2 of Resubdivision No. 501, Assessor's Parcel Nos. 442-261-05 and 442-261-17 ("Property"); WHEREAS, the Applicant proposes the demolition of the existing Orange County Museum of Art ("OCMA") (23,632 square feet) and associated administrative office building (13,935 square feet) to accommodate the development of a 183,983 -square -foot, six -story combination senior housing (90 -unit residential dwelling units) and memory care facility (27 beds) ("Project"). The approximately 2.9 acre site is located on San Clemente Drive opposite the intersection with Santa Maria Road; WHEREAS, in order to implement the Project, the Applicant, requests the following approvals from the City of Newport Beach ("City"): • General Plan Amendment — To amend Anomaly No. 49 to change the land use category from PI (Private Institutions) to MU -H3 (Mixed -Use Horizontal). The proposed amendment also includes 90 additional dwelling units and would reduce the nonresidential floor area from 45,208 square feet to 16,000 square feet in Statistical Area L1. Table LU1 is amended to reflect a total of 540 dwelling units authorized within the MU -H3 land use designation, • Planned Community Development Plan Amendment — To modify the San Joaquin Plaza Planned Community Development Plan (PC -19) to include development and design standards to allow for 90 senior dwelling units and 27 memory care beds. The Applicant also requests an increase in the height limit from 65 feet to 69 feet with 10 feet for appurtenances, • Development Agreement — To provide public benefits should the Project be approved pursuant to Section 15.45.020 (Development Agreement Required) of the Newport Beach Municipal Code ("NBMC") because the requested General Plan Amendment includes 50 or more dwelling units and adds dwelling units within Statistical Area L1, 3-4 Ordinance No. 2019-13 Page 2of9 • Conditional Use Permit — To allow the operation of the proposed senior housing and memory care facility, alcohol service for dining hall and lounge areas in the form of a Type 47 (On Sale General) and Type 57 (Special On Sale General) Alcoholic Beverage Control ("ABC") licenses, and ensure land use compatibility, • Major Site Development Review — To allow the construction of 90 senior dwelling units and a 27 -bed memory care facility and to ensure the Project is developed in accordance with the applicable planned community and zoning code development standards and regulations pursuant to Section 20.52.080 (Site Development Reviews) of the NBMC, • Lot Merger — To merge the two (2) existing parcels into one development site, • Addendum to Environmental Impact Report (SCH#2016021023) — To address reasonably foreseeable environmental impacts resulting from the legislative and project specific discretionary approvals, the City has determined that an addendum to a previously certified Environmental Impact Report ("EIR") is warranted pursuant to the California Environmental Quality Act ("CEQA"); WHEREAS, the Property is designated PI (Private Institutions) by the General Plan Land Use Element and is located within the PC -19 (San Joaquin Plaza Planned Community) Zoning District; WHEREAS, the Property is not located within the coastal zone; therefore, a coastal development permit is not required; WHEREAS, a Planning Commission study session was held on April 18, 2019, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, to introduce the Project to the Planning Commission. No action was taken at the study session; WHEREAS, on July 18, 2019, the Airport Land Use Commission ("ALUC") found the City of Newport Beach Vivante Senior Housing project to be consistent with the Airport Environs Land Use Plan for John Wayne Airport; 3-5 Ordinance No. 2019-13 Page 3 of 9 WHEREAS, the Planning Commission held a public hearing on July 18, 2019 in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 of seq. (the "Ralph M. Brown Act") and Chapters 15.45, 20.56 and 20.62 of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, on July 18, 2019, the Planning Commission adopted Resolution No. PC2019-021 by a unanimous vote of 5 ayes and 0 nays, recommending approval of the Project, and the land use entitlements referenced above, to the City Council; WHEREAS, the City Council held a public hearing on August 13, 2019, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and Chapters 15.45, 20.56 and 20.62 of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, the proposed amendment to the PC -19 (San Joaquin Plaza Planned Community) Zoning District meets the intent and purpose for a Planned Community ("PC") as specified in NBMC Section 20. 56.010 (Planned Community District Procedures, Purpose). The Property is located in the Newport Center area which includes a mixture of shopping, hotels, commercial support uses, professional offices, and residential developments. The Project's development plan and standards are consistent with the surrounding development including the standards and allowed uses of the adjoining North Newport Center Planned Community; WHEREAS, the proposed PC -19 (San Joaquin Plaza Planned Community) amendment and zoning designation are consistent with the proposed General Plan Amendment (GP2018-003) that amends the land use category from Private Institutional (PI) to Mixed -Use Horizontal (MU -H3) with a maximum development limit for Anomaly No. 49 (Table LU2 and associated figures) of 90 units and 16,000 square feet of nonresidential floor area; 3-6 Ordinance No. 2019-13 Page 4 of 9 WHEREAS, the future development of the Property affected by the proposed amendments will be consistent with the goals and policies of the Land Use Element of the General Plan; and will be consistent with the purpose and intent of the proposed San Joaquin Plaza (PC) Zoning District of the NBMC; WHEREAS, the proposed amendment to the PC -19 Zoning District meets the intent and purpose for a PC as specified in Section 20.56.010 (Planned Community District Procedures, Purpose) of the NBMC. The Property is located in the northwest portion of Newport Center, which is a regional center of business and commerce that includes major retail, professional office, entertainment, recreation, and residential development in a master planned mixed-use area. The amended PC -19 Development Plan is complementary to the surrounding development, including the development standards and allowed uses of the adjoining PC -56 (North Newport Center Planned Community) Zoning District; WHEREAS, the proposed amendment to the PC -19 Development Plan would apply appropriate site and Project -specific setbacks, intensity, and height limits to the Project given the site's urban location and all required parking is provided on site. The Property is currently fully developed and does not support any natural resources. All potential environmental impacts associated with the Project are appropriately addressed through standard building permit procedures and the mitigation measures identified in the EIR addendum; WHEREAS, the future development of the Property affected by the proposed amendments will be consistent with the goals and policies of the Land Use Element of the General Plan; and will be consistent with the purpose and intent of the PC -19 Development Plan; and WHEREAS, Section 20.30.060(C)(3) (Height Limits and Exceptions, Required Findings) of the NBMC, requires findings A through D to be made to adopt a Planned Community District with an increase in the height of the structure above the previous base height limit: Finding: A. The Project Applicant is providing additional project amenities beyond those that are otherwise required. Examples of project amenities include, but are not limited to: i. Additional landscaped open space,- ii. pace,ii. Increased setback and open areas; and iii. Enhancement and protection of public views, and 3-7 Ordinance No. 2019-13 Page 5 of 9 Facts in Support of Finding: 1. The building design provides a high level of design with open space, landscape, residential amenities, and building setbacks that are similar or greater than those required on adjoining properties. The Project provides 15,487 square feet of landscaped area on-site and extensive common open space amenities including outdoor seating areas, raised gardens and vegetable planters, bocce ball court, outdoor kitchen, dog park, and putting green. 2. The Project provides setbacks ranging from 36 feet along the northern property nearest to residential uses up to 94 feet at the San Clemente Drive street frontage. 3. The Project does not inhibit designated public view points or coastal view corridors as identified in Figure NR3 of the General Plan. The nearest coastal view road occurs to the southwest along Jamboree Road and views are oriented toward the ocean. The Project will not be visible from this location. Further, the proposed building will fit into the height and architectural context of other office buildings and development in the Newport Center area. Finding: B. The architectural design of the project provides visual interest through the use of light and shadow, recessed planes, vertical elements, and varied roof planes; Facts in Support of Finding: 1. The Project provides high quality architectural materials on the building fagade including smooth -coat plaster walls, natural travertine stone, vinyl windows, metal railings, and window trims. 2. The building is designed in an L -shape with a porte-cochere located at the primary building entrance along San Clemente Drive. This feature enhances the building entry and provides visual interest at the most visible building fagade. 3. Juliet balconies for each unit will provide visual interest and building articulation throughout the building. 4. The building style is complementary to surrounding office buildings in Newport Center and the facade is architecturally modeled after the office building located at 888 San Clemente Drive. Ordinance No. 2019-13 Page 6 of 9 5. The building's roofline provides a roof screen and mechanical wells to adequately screen unsightly equipment and provide architectural variation at the exterior elevations. Finding: C. The increased height will not result in undesirable or abrupt scale changes or relationships being created between the proposed structure(s) and existing adjacent developments or public spaces. Where appropriate, the proposed structure(s) provides a gradual transition to taller or shorter structures on abutting properties; and Facts in Support of Finding: 1. The proposed building height of 68 feet 8 inches is comparable to surrounding building heights of 61 feet 9 inches at 888 San Clemente Drive, 65 feet at the Villas Fashion Island, 80 feet at Pacific Life (700 Newport Center Drive), and 125 feet at 800 Newport Center Drive. Further, these buildings allow an additional 10 feet for architectural appurtenances, consistent with the proposed building height for the Project. 2. The Project height is cohesive with surrounding building heights particularly given the site's grade elevations along San Clemente Drive, which range from 165 feet up to 189 feet. The proposed Project would be measured from the building entrance elevation at 181 feet. Finding: D. The structure will have no more floor area than could have been achieved without the approval of the height increase." Facts in Support of Finding: 1. The existing PC -19 (San Joaquin Plaza Planned Community) text does not establish a floor area limit for the subject properties since it is currently designated for private institutional land uses. The amended PC -19 text will establish a floor area consistent with the proposed building area (approximately 184,000 square feet) . 3-9 Ordinance No. 2019-13 Page 7of9 2. The proposed floor area could be achieved within the current 65 foot height limit if the building footprint was enlarged. The proposed design with additional height affords additional site area to provide code -required parking, circulation, and open space amenities to serve the Project. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and has determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to the Planning Commission for consideration and recommendation. Section 2: The City Council hereby approves Planned Community Development Plan Amendment No. 2018-001 as depicted in Exhibit A, attached hereto and incorporated herein by reference, to change the San Joaquin Plaza PC land use designation from Civic/Cultural/Professional/Office to Senior Housing/Convalescent Facility/Ancillary Uses and revise the development standards to accommodate the proposed residential development. Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the operative part of this ordinance. Section 4: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The Museum House Project Final EIR (SCH No. 2016021023) was prepared for the project in compliance with the California Environmental Quality Act ("CEQA") as set forth in California Code of Regulations, Title 14, Division 6, Chapter 3, and City Council Policy K-3. By Resolution No. 2016-126, the City Council, having final approval authority over the project, adopted and certified as complete and adequate the Museum House Project Final EIR (SCH No. 2016021023) and approved "Mitigation Monitoring and Reporting Program." Resolution No. 2016-126 is hereby incorporated by reference. 3-10 Ordinance No. 2019-13 Page 8of9 Section 6: The Vivante Senior Housing Environmental Impact Report Addendum (EIR Addendum) (SCH No. 2016021023) was prepared for the Project incompliance with CEQA, the State CEQA Guidelines, and City Council Policy K-3. By Resolution No. 2019- 74, the City Council having final approval authority over the Project, adopted and certified as complete and adequate the Vivante Senior Housing Project Final Environmental Impact Report Addendum (SCH No. 2016021023) and adopted "Mitigation Monitoring and Reporting Program." Resolution No. 2019-74 is hereby incorporated by reference. Section 7: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged and shall be in full force and effect 3-11 Ordinance No. 2019-13 Page 9 of 9 Section 8: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 13th day of August, 2019, and adopted on the 10th day of September, 2019, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS DIANE B. DIXON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE R N C. HARP, CITY ATTORNEY Exhibit A: PC -19 (San Joaquin Plaza Planned Community Development Plan) 3-12 Exhibit "A" PC -19 (San Joaquin Plaza Planned Community Development Plan) 3-13 San Joaquin Plaza Planned Community Development Plan (PC 19 Amendment No. 8) Land Uses, Development Standards & Procedures Ordinance No. 1649, Amendment No. 455, December 22, 1975 Ordinance No. 2007-20, PC Resolution No. 1739, Amendment No. PD2007-003 (PA2007-151) Ordinance No. 2019-_, Amendment No. PC2018-001 (PA2018-185), September 10, 2019 1 3-14 San Joaquin Plaza Planned Community Development Plan (PC 19 Amendment No. 8) Land Uses, Development Standards & Procedures Table of Contents I. Introduction A. Introduction, Purpose, and Intent of Development Plan Page 3 B. Relationship to Municipal Code Page 3 C. San Joaquin Plaza Statistical Analysis Page 3 D. Figure 1- San Joaquin Plaza Planned Community Area Location map Page 4 II. Land Uses and Development Regulation a. Permitted Uses Page 5 b. Development Limits Page 6 c. Transfer of Development Rights Page 6 III. Site Development Standards a. Site Setbacks Page 6 b. Senior Housing Open Space Requirements Page 7 c. Parking Page 7 d. Floor Area Ratio Page 8 e. Lot Coverage Page 8 f. Permitted Height of Structures Page 8 g. Rooftop Appurtenances Page 8 h. Architectural Features Page 8 i. Site Walls, Retaining Walls, Garage Walls and Mechanical Screens Page 8 j. Refuse Collection Page 9 k. Landscaping Page 9 I. Lighting Page 9 m. Signs Page 9 n. LEED Certification Page 11 o. Construction and Utility Requirements Page 11 IV. Definitions Page 13 V. Site Development Review Page 15 2 3-15 San Joaquin Plaza PC Development Plan Amendment No. 8 I. Introduction A. Introduction, Purpose, and Intent of this Development Plan The San Joaquin Plaza Planned Community District (PC -19) (the "San Joaquin Plaza PC District') for the City of Newport Beach is part of the Newport Center Development in conformance with the Newport Beach General Plan (the "General Plan"). The General Plan identifies the goal of creating a successful mixed-use district that integrates economic and commercial centers serving the needs of Newport Beach residents and the sub -region, with expanded opportunities for a variety of housing development within Newport Center. As shown on Figure 1, the San Joaquin Plaza PC District is located in the north end of Newport Center where the concentration of building height and mass is greatest. It is generally bounded by Santa Cruz Drive on the east, San Clemente Drive to the south, and Santa Barbara Drive to the west. Surrounding uses include a parking structure to the east, office buildings and a parking structure to the west, residential apartments to the north, and office and residential apartments to the south across San Clemente Drive. The Fashion Island regional mall is approximately % mile to the south. The purpose of the San Joaquin Plaza PC District is to ensure consistency with General Plan policies related to development scale in Newport Center and expectations for high quality development. This San Joaquin Plaza PC Development Plan (as hereby amended, this "Development Plan") provides land use and development standards for the subject properties located at 850 San Clemente Drive and 856 San Clemente Drive. This Development Plan supersedes the existing San Joaquin Plaza PC Development Plan in its entirety, including the land use and development standards therein. The specifications of this Development Plan are intended to provide flexibility in both the land use and development standards for the planned buildings. B. Relationship to the Municipal Code Whenever the development regulations of this Development Plan conflict with the regulations of the City of Newport Beach Municipal Code (the "Municipal Code"), the regulations contained in this Development Plan shall prevail. The development regulations of the Municipal Code shall apply with respect to those regulations not addressed by this Development Plan. All words and phrases used in this Development Plan shall have the same meaning and definition as used in the Municipal Code unless defined differently in Section IV (Definitions) of this Development Plan. C. San Joaquin Plaza Statistical Analysis The San Joaquin Plaza PC District area consists of the following two (2) existing buildings located on the following two (2) adjoining parcels (however, this Development Plan allows for such adjoining parcels to be combined into a single parcel for development purposes): 3-16 Building 1 (850 San Clemente Drive) on Parcel 1 • Existing Use: Orange County Museum of Art Exhibition Space (23,632 Square Feet) • Parcel Size: 1.996 acres Building 2 (856 San Clemente Drive) on Parcel 2 • Existing Use: Orange County Museum of Art Galleries Administrative Offices and Storage (13,935 Square Feet) • Parcel Size: 0.910 acres Total combined Land Parcels consisting of 2.91 acres D. Figure 1 - San Joaquin Plaza Planned Community Area Location Map a Q) 0 Sin Joaquin Hills Rd n ® San Joaquin Planned Community 3-17 II. Land Uses and Development Regulations A. Permitted Uses 1. General The specific uses listed in Section II.A.2 below are permitted under this Development Plan. In addition, uses determined to be either accessory or ancillary to such permitted uses, or Support Uses to such permitted uses, are also permitted under this Development Plan. In addition, the Community Development Director may determine other uses not specifically listed herein, provided they are consistent with the Mixed- Use Horizontal (MU -H3) Land Use designation. 2. San Joaquin Plaza a. Senior Housing (with or without congregate care), which may include a development which is licensed by the State of California as a residential care facility for the elderly ("RCFE"). Such Senior Housing may include independent, assisted -living, and/or memory care units for persons 60 years of age or older. b. Convalescent Facility (with or without congregate care), which may include a development which is licensed by the State of California as a RCFE. Such Convalescent Facility may include assisted -living care and/or memory care units. c. Uses that are accessory or ancillary to the foregoing permitted uses, including Support Uses for Senior Housing, are also permitted. These include, but are not limited to, the following: i. Lobby ii. Club Rooms iii. Bowling alley iv. Fitness Center V. Business Services A Rooftop Lounge vii. Salon/Spa viii. Commercial Kitchen & Dining Hall with ancillary on-site sale alcohol service (Type 47/57 or similar license) ix. Laundry X. Conference Rooms & Admin Offices xi. Pool xii. Putting Green xiii. Bocce Ball Court xiv. Dog Park xv. Raised Herb Gardens xvi. Similar resident serving uses 5 3-18 d. Telecommunications facilities are permitted in accordance with Chapter 20.49 (Wireless Telecommunications Facilities) of the NBMC. e. Land uses that are not listed above are not allowed, except as provided by Chapter 20.12(lnterpretation of Zoning Code Provisions) of the NBMC or as required by State Law. f. Temporary uses maybe allowed only upon approval of a limited term permit pursuant to Section 20.52.040 (Limited Term Permits) of the NBMC. B. Development Limits 1. General The following development limits in this Development Plan are consistent with those established by the General Plan: 2. San Joaquin Plaza Up to 90 Senior Housing units are permitted within the San Joaquin Plaza PC District. Senior Housing units, associated common areas, and ancillary uses are measured on a per unit basis and not by gross floor area. Senior Housing units are comprised of separate or independent living areas for one or more persons, with area or equipment for sleeping, sanitation, and food preparation. Up to 16,000 square feet of Convalescent Facilities or other non-residential uses (excluding Senior Housing units and associated common areas and ancillary uses) are permitted within the San Joaquin Plaza PC District. Convalescent Facilities and other non-residential uses (excluding Senior Housing units and associated common areas and ancillary uses) are measured by gross floor area. C. Transfer of Development Rights Development limits may be modified through the approval of a Transfer of Development Rights. The transfer of development rights among the San Joaquin Plaza PC District and to/from other areas in the Newport Center/Fashion Island District identified in the General Plan is allowed in accordance with Policy LU 6.14.3 of the General Plan and this Development Plan. The transfer of development rights shall be approved, as specified in the General Plan. III. Site Development Standards A. Site Setbacks a. San Clemente Drive 15,0" b. East Property Line (Adjacent to Parking Garage) 510" 0 3-19 c. North Property Line (Adjacent to San Joaquin Apartments) 510" d. West Property Line 510" Note: Carports, site walls, trash or generator enclosures, and parking spaces shall not be subject to any setback requirements. B. Senior Housing Open Space Requirements The following open space standards shall apply to Senior Housing: 1. Common Outdoor Open Space The project shall provide a minimum of 5 percent common outdoor open space based on the lot area (6,330 square feet minimum). The project shall provide common outdoor open space either at grade, podium level, common level within the building or roof level. Qualifying common outdoor open space areas shall have a minimum horizontal dimension of 30 feet and may contain active and/or passive areas and a combination of hardscape and landscape features, but a minimum of 10 percent of the common outdoor open space must be landscaped. All common outdoor space must be accessible to all residents. 2. Common Indoor Open Space The project shall provide at least one community room of at least 500 square feet for use by residents of the project. The area should be located adjacent to, and accessible from, common access point. This area may contain active or passive recreational facilities or meeting space and must be accessible through a common corridor. 3. Private Open Space At least 40 percent of all units shall provide private open space, on a balcony, patio, or roof terrace. Private open space shall be a minimum of 30 square feet and an average horizontal dimension of 6 feet. Balconies should be proportionately distributed throughout the project in relationship to floor levels and sizes of units. C. Parking Off-street parking for Senior Housing units shall be provided at a ratio of not less than 1.2 parking spaces per unit. Ancillary uses, such as lobbies, club rooms, fitness center, business services, amenities and building services shall not require additional parking as they support the primary operations of the Senior Housing community and its residents. Off-street parking for Convalescent Facilities (Memory Care) shall be provided at a ratio of not less than one (1) parking space per three beds. 7 3-20 D. Floor Area Ratio a. Allowable Floor Area Ratio (FAR) b. Lot Area c. Allowable Floor Area E. Lot Coverage Lot Coverage is the percentage of the site area. a. Minimum Lot Area b. Allowable Lot Coverage is 25% c. Minimum Lot Width F. Permitted Height of Structures 1.5:1 FAR 126,600 Square Feet 189,900 Square Feet 39,639 Square Feet 150 Feet The maximum Building Height of all buildings shall be 69 feet as measured from Finished Grade to the top of primary structure (top of ceiling above highest occupiable living space). Finish Grade is defined as the elevation point of the main building entry point at ground floor in relation to mean sea level. G. Rooftop Appurtenances Rooftop Appurtenances are permitted above the primary structure and may exceed the maximum Building Height by up to 10 feet (79 feet maximum). Rooftop Appurtenances must be screened from public view; the height of Rooftop Appurtenances shall not exceed the height of the screening. Supports for window washing equipment are permitted, and are not required to be screened from view. Additional setbacks on the roof are not required. H. Architectural Features Architectural Features are permitted above the primary structure and may exceed the maximum Building Height by up to 10 feet (79 feet maximum). Such features must be an extension of the architectural style of the building in terms of materials, design and color. I. Site Walls, Retaining Walls, Garage Walls and Mechanical Screens a. Site Walls i. Site walls shall not exceed 8'0" from Finish Grade. b. Retaining Walls i. Interior: The height of a retaining wall that faces interior to the project must not exceed 12'0" from Finish Grade to top of wall. A 42 -inch guardrail is allowed above the wall where it is necessary for building and safety. ii. Exterior: Retaining walls that face exterior to adjacent properties and San Clemente Drive at property lines are limited in height to 12'0" from Finish 8 3-21 Grade not including handrail conditions that may be required above these walls. These handrail requirements may be formed by the retaining wall. c. Garage walls that are exposed will be treated as architectural building facade. d. Mechanical screens will be allowed to be of sufficient height to provide coverage of equipment from public view. Required grills, louvers, vents and other functional requirements of building equipment will, to the extent practical, be incorporated into the building architecture. Ground -mounted mechanical screens shall not exceed 12 feet in height. Mechanical equipment shall comply with the noise standards of the City of Newport Beach Municipal Code. J. Refuse Collection The Senior Housing and Convalescent Facility shall provide a minimum of 384 square feet of trash area. The trash area shall provide a dedicated area with three walls, a gate, and a solid roof cover with a drain to the sewer system in accordance with the requirements of Section 20.30.120 (Solid Waste and Recyclable Materials Storage) of the City of Newport Beach Municipal Code. All storage of cartons, containers, and trash shall be shielded from view within a building or within an area enclosed by a wall not less than 6 feet in height. K. Landscaping Refer to the landscape standards within the City of Newport Beach Municipal Code. L. Lighting Refer to the lighting standards within the City of Newport Beach Municipal Code. M. Signs 1. General Sign Standards A comprehensive sign program may be prepared if the applicant wishes to deviate from the sign standards identified herein. Comprehensive sign programs shall be submitted for review and consideration in accordance with the provisions of the City of Newport Beach Municipal Code. 2. Prohibited Sign Types Signs visible from public rights-of-way are prohibited as follows: a. Rotating, flashing, blinking or signing with animation on a permanent basis are prohibited. b. Signs that imitate or resemble official traffic signs or signals are prohibited. C. Wind signs or audible signs are prohibited. 9 3-22 d. Any other sign types identified in the City of Newport Beach Municipal Code as prohibited are also prohibited hereunder. Animated signs visible from public streets are not allowed unless otherwise permitted by the Municipal Code. 3. Sign Standards San Joaquin Plaza Primary building address numbers shall be visible from the street (and/or pedestrian walkways in the case of necessity) and be located on the building so that they are visible from adjacent frontage roads and designated parking areas. Secondary address signs may be located where appropriate for on-site orientation and safety. All address signs shall have a consistent color, design, and material for any given building. A single letter style sign is recommended. Table 2 — Sign Standards for San Joaquin Plaza 10 3-23 Maximum Sign Description Location Maximum Letter/ Type Number/Area Logo Height 36 inches Project entry at (6 -foot Entry columns or San Clemente maximum ground mounted (minimum 5- 4/100 square overall A signs in front of foot setback feet each height clear landscaping. from front of sight - property line) distance areas) 1 Primary/150 On building square feet Primary 48 B Building sign elevation or and 4 inches Secondary/100 Secondary awning square feet 36 inches each 4 (additional address signs 4 inches may be located minimum where as required C Building address On building appropriate for by Fire elevation in -site Department orientation)/50 and 24 square feet inches each or as maximum otherwise 10 3-23 4. Temporary Signs Temporary signs are permitted in accordance with the Newport Beach Municipal Code. N. LEED Certification The project shall be designed to meet the criteria of LEED Certification as based on LEED's prototype points and scorecard rating system. O. Construction and Utility Requirements 1. Archaeological/Paleontological Grading of the site is subject to the provisions of the City Council Policies K-4 & K -S regarding archaeological and paleontological resources and Mitigation Measures as adopted in the EIR addendum Mitigation Monitoring and Reporting Program (MMRP). 2. Building Codes Construction shall comply with applicable provisions of the California Building Code and the various other mechanical, electrical and plumbing codes related thereto as adopted by the Municipal Code. 3. Grading Grading and excavation of the project shall be conducted and undertaken in a manner both consistent with grading manual standards and ordinances of the City of Newport Beach, in accordance with a grading and excavation plan approved by the City of Newport Beach Building Division, and in accordance with Mitigation Measures as adopted in the EIR addendum Mitigation Monitoring and Reporting Program (MMRP). 4. Telephone, Gas and Electrical Service 11 3-24 required by Fire Department As required As appropriate by Fire for safety and Department D Advisory signs Entry to service orientation/25 or Building square feet Code for Safety purposes 4. Temporary Signs Temporary signs are permitted in accordance with the Newport Beach Municipal Code. N. LEED Certification The project shall be designed to meet the criteria of LEED Certification as based on LEED's prototype points and scorecard rating system. O. Construction and Utility Requirements 1. Archaeological/Paleontological Grading of the site is subject to the provisions of the City Council Policies K-4 & K -S regarding archaeological and paleontological resources and Mitigation Measures as adopted in the EIR addendum Mitigation Monitoring and Reporting Program (MMRP). 2. Building Codes Construction shall comply with applicable provisions of the California Building Code and the various other mechanical, electrical and plumbing codes related thereto as adopted by the Municipal Code. 3. Grading Grading and excavation of the project shall be conducted and undertaken in a manner both consistent with grading manual standards and ordinances of the City of Newport Beach, in accordance with a grading and excavation plan approved by the City of Newport Beach Building Division, and in accordance with Mitigation Measures as adopted in the EIR addendum Mitigation Monitoring and Reporting Program (MMRP). 4. Telephone, Gas and Electrical Service 11 3-24 All "on-site" gas lines, electrical lines and telephone lines shall be placed underground. Unless prohibited by the utility company, transformer or terminal equipment shall be visually screened from view from streets and adjacent properties. S. Sewage Service Any new and upgraded on and off-site sewer lines shall be designed in accordance with the Utilities Department Director's approval. 6. Storm Water Management This project shall adhere to the Water Quality Management Plan (WQMP) approved in conjunction with the issuance of building permits. Drainage and water quality assurance measures will be implemented as per the City Public Works and Municipal Separate Storm Sewer System (MS4) requirements. Development of the property will be undertaken in accordance with the flood protection policies of the City. 7. Water Service Water service to the site will be provided by the City of Newport Beach and is subject to applicable regulations, permits and fees as prescribed by the City. The project shall provide the infrastructure for Fire Protection Water Service and Domestic water. 12 3-25 IV. Definitions All words and phrases used in this Development Plan shall have the same meaning and definition as used in the Municipal Code unless defined differently in this section. Advisory Sign: Any sign that contains directional, directory, or safety information, and does not contain advertisements. Architectural Features: Architectural features include, but are not limited to, any extension of the architectural style of the building in terms of materials, design and color that may exceed the building height. Examples include: Roof overhangs, brackets, cornices, eaves, belt courses, ornamental moldings, pilasters, and similar features. Audible Signs: Any sign that uses equipment to communicate a message with sound or music. Building Elevation: The exterior wall surface formed by one (1) side of the building. Building Height: The height of a building as measured from the exterior finished grade to the roof of the highest occupied space. If the building is on a sloping surface, the height measurement is taken from the main building entrance. Convalescent Facility: An age -restricted area or facility (with or without medical professional staffing) designed and intended for persons ages 60 years and older with memory care needs. A Convalescent Facility may be licensed by the State of California as a Residential Care Facility for the Elderly, may include the provision of congregate care, and may offer services and assistance with activities of daily living, such as bathing, dressing, eating, toileting, ambulating, assistance with medications, housekeeping, scheduling of medical and dental appointments, accessing community resources and transferring to outside facilities. Finish Grade: The elevation point of the main building entry point at ground floor in relation to mean sea level. Floor Area, Gross: The gross floor area is the total enclosed area of all floors of a building measured to the outside face of the structural members in exterior walls, including halls, stairways, elevator shafts at each floor level, service and mechanical equipment rooms and basement or attic areas having a height of more than seven feet. Excluded from gross floor area are covered porches, space below building entry or basement, parking, walkways, loading docks, service tunnels, mechanical shafts, and mechanical spaces which are inaccessible to tenants. Monument Sign: Any sign that is supported by its own structure and is not part of or attached to any building. Parking Structure: Structures containing more than one story principally dedicated to parking. Parking structures may contain accessory, ancillary, and resident Support Uses. Podium Level: A superposed terrace conforming to a building's plan, a continuous pedestal; a line of vertical segregation linking separate areas. Rooftop Appurtenance: A rooftop structure, equipment or element servicing or appurtenant to a building, including, but not limited to, mechanical equipment, mechanical equipment screens, 13 3-26 stairwell and elevator shaft housing, antennae, window washing equipment, and wireless communication facilities. Senior Housing: An age -restricted residential development designed and intended for persons ages 60 years and older. Such development may include the provision of congregate care services for independent, assisted -living, or memory care residents. Senior housing units are comprised of separate or independent living facilities for one or more persons, with area or equipment for sleeping, sanitation, and food preparation. Additionally, a Senior Housing development may be licensed by the State of California as a Residential Care Facility for the Elderly. Sign: Any media, including their structure and component parts which are used or intended to be used out-of-doors to communicate the information to the public. Support Uses: Uses within Senior Housing developments and parking structures designed, oriented, and intended to primarily serve building occupants. This includes uses such as dry cleaners, coffee vendors, and sundry shops. Temporary Sign: Any sign, banner, pennant, valance, or advertising display constructed of cloth, canvas, plywood, light fabric, cardboard, wallboard or other light materials, with or without frames, intended to be displayed for a limited period of time. Wind Sign: A series or similar banners or objects of plastic or other light material more than two inches in diameter which are fastened together at intervals by wire, rope, cord, spring or any other means, designed to move and attract attention upon being subjected to pressure by wind or breeze. 14 3-27 V. Site Development Review The purpose of the Site Development Review (SD) process is to ensure that any new development proposal within the Development Plan, Amendment No. 8) is consistent with the goals and policies of the General Plan and the provisions of the PC -Text. Prior to the issuance of building permits for development, a SD application shall be required in accordance with section 20.52.080 {Site Development Reviews) of the Newport Beach Municipal Code. The submitted site plans and elevations shall be part of this application. 15 3-28 Attachment B Ordinance No. 2019-14 (DA2018-005) 3-29 ORDINANCE NO. 2019-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING DEVELPOMENT AGREEMENT NO. DA2018-005 FOR THE VIVANTE SENIOR HOUSING PROJECT LOCATED AT 850 AND 856 SAN CLEMENTE DRIVE (PA2018-185) WHEREAS, an application was filed by Nexus Development Corporation representing Vivante Newport Center, LLC ("Applicant"), with respect to property located at 850 and 856 San Clemente Drive, and legally described as Parcel 2 of Newport Beach Lot Line Adjustment No. 95-3 together with Parcel 2 of Resubdivision No. 501, Assessor's Parcel Nos. 442-261-05 and 442-261-17 ("Property"), WHEREAS, the Applicant proposes the demolition of the existing Orange County Museum of Art ("OCMA") (23,632 square feet) and associated administrative office building (13,935 square feet) to accommodate the development of a 183,983 square foot, six -story combination senior housing (90 -unit residential dwelling units) and memory care facility (27 beds) ("Project"). The approximately 2.9 acre site is located on San Clemente Drive opposite the intersection with Santa Maria Road; WHEREAS, in order to implement the Project, the Applicant, requests the following approvals from the City of Newport Beach ("City"): • General Plan Amendment — To amend Anomaly No. 49 to change the land use category from PI (Private Institutions) to MU -H3 (Mixed -Use Horizontal). The proposed amendment also includes 90 additional dwelling units and would reduce the nonresidential floor area from 45,208 square feet to 16,000 square feet in Statistical Area L1. Table LU1 is amended to reflect a total of 540 dwelling units authorized within the MU -H3 land use designation, • Planned Community Development Plan Amendment — To modify the San Joaquin Plaza Planned Community Development Plan (PC -19) to include development and design standards to allow for 90 senior dwelling units and 27 memory care beds. The Applicant also requests an increase in the height limit from 65 feet to 69 feet with 10 feet for appurtenances, • Development Agreement — To provide public benefits should the Project be approved pursuant to Section 15.45.020 (Development Agreement Required) of the Newport Beach Municipal Code ("NBMC") because the requested General Plan Amendment includes 50 or more dwelling units and adds dwelling units within Statistical Area L1, • Conditional Use Permit — To allow the operation of the proposed senior housing and memory care facility, alcohol service for dining hall and lounge 3-30 Ordinance No. 2019-14 Page 2 of 6 areas in the form of a Type 47 (On Sale General) and Type 57 (Special On Sale General) Alcoholic Beverage Control ("ABC") licenses, and ensure land use compatibility, • Major Site Development Review — To allow the construction of 90 senior dwelling units and a 27 -bed memory care facility and to ensure the Project is developed in accordance with the applicable planned community and zoning code development standards and regulations pursuant to Section 20.52.080 (Site Development Reviews) of the NBMC, • Lot Merger — To merge the two (2) existing parcels into one development site, • Addendum to Environmental Impact Report (SCH#2016021023) — To address reasonably foreseeable environmental impacts resulting from the legislative and project specific discretionary approvals, the City has determined that an addendum to a previously certified Environmental Impact Report ("EIR") is warranted pursuant to the California Environmental Quality Act ("CEQA" ); WHEREAS, the Property is designated PI (Private Institutions) by the City of Newport Beach General Plan ("General Plan") Land Use Element and is located within the PC -19 (San Joaquin Plaza Planned Community) Zoning District; WHEREAS, the Property is not located within the coastal zone; therefore, a coastal development permit is not required; WHEREAS, a Planning Commission study session was held on April 18, 2019, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, to introduce the Project to the Planning Commission. No action was taken at the study session, WHEREAS, on July 18, 2019, the Airport Land Use Commission ("ALUC") found the City of Newport Beach Vivante Senior Housing project to be consistent with the Airport Environs Land Use Plan for John Wayne Airport; 3-31 Ordinance No. 2019-14 Page 3 of 6 WHEREAS, the Planning Commission held a public hearing on July 18, 2019 in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. (the "Ralph M. Brown Act") and Chapters 15.45, 20.56 and 20.62 of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, on July 18, 2019, the Planning Commission adopted Resolution No. PC2019-021 by a unanimous vote of 5 ayes and 0 nays, recommending approval of the Project, and the land use entitlements referenced above, to the City Council; WHEREAS, the City Council held a public hearing on August 13, 2019, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and Chapters 15.45, 20.56 and 20.62 of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing; WHEREAS, a development agreement is requested by the Applicant as the proposed General Plan Amendment includes 50 or more dwelling units and adds dwelling units within Statistical Area L1; WHEREAS, the Project is consistent with the goals and policies of the General Plan. The City Council concurs with the conclusion of the consistency analysis of the Project with these goals and policies provided in the Vivante Senior Housing Project EIR Addendum (SCH No. 2016021023); WHEREAS, the Development Agreement includes all the required elements pursuant to Section 15.45.040 (Contents) of the NBMC, including a 10 -year term and a Development Plan, which is all of the land use entitlements, approvals and permits approved by the City for the Project that establish permitted uses of the property, the density or intensity of use, the maximum height and size of proposed buildings; WHEREAS, in accordance with Section 15.45.060 (Findings) of the NBMC, the Development Agreement requires development of the Property to be consistent with a Development Plan and Development Regulations that are generally the rules, plans, and policies that govern the development of the subject property in force at the time of execution of the agreement. Consistent with Section 15.45.060 of the NBMC, Section 4.3 (Reservations of Authority) of the development agreement provides for the City's ability to undertake subsequent actions and apply them to the development of the Property to the extent they do not prevent development of the Property for the uses and to the density or intensity of development set forth in the agreement; 3-32 Ordinance No. 2019-14 Page 4 of 6 WHEREAS, Section 3 of the Development Agreement includes the provision of public benefits including a fee that is deemed necessary, appropriate and proper by the City Council to further legitimate City interests including the provision of public services to the Development and broader community. The public benefits identified by Section 3 are not inconsistent with the provisions of state law relating to development agreements, nor inconsistent with the ordinances, policies, plans or resolutions of the City of Newport Beach, and WHEREAS, the development agreement includes all the mandatory elements for consideration and public benefits that are appropriate to support conveying the vested development rights consistent with the General Plan, Chapter 15.45 of the NBMC, and Government Code Sections 65864 et. seq. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and has determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to the Planning Commission for consideration and recommendation. Section 2: The City Council of the City of Newport Beach hereby approves Development Agreement No. DA2018-005, as set forth in Exhibit 'A" which is attached hereto and incorporated herein by reference. Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the operative part of this ordinance. Section 4: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 3-33 Ordinance No. 2019-14 Page 5 of 6 Section 5: The Museum House Project Final EIR (SCH No. 2016021023) was prepared in compliance with the California Environmental Quality Act ("CEQA") as set forth in California Code of Regulations, Title 14, Division 6, Chapter 3 ("CEQA Guidelines") and City Council Policy K-3. By Resolution No. 2016-126, the City Council, having final approval authority over the project, adopted and certified as complete and adequate the Museum House Project Final Environmental Impact Report (SCH No. 2016021023) and adopted "Mitigation Monitoring and Reporting Program." Resolution No. 2016-126 is hereby incorporated by reference. Section 6: The Vivante Senior housing Environmental Impact Report Addendum (EIR Addendum) (SCH No. 2016021023) was prepared for the Project in compliance with the CEQA Guidelines and City Council Policy K-3. By Resolution No. 2019-74, the City Council having final approval authority over the Project, adopted and certified as complete and adequate the Vivante Senior Housing Project Final Environmental Impact Report Addendum (SCH No. 2016021023) and adopted "Mitigation Monitoring and Reporting Program." Resolution No. 2019-74 is hereby incorporated by reference. 3-34 Ordinance No. 2019-14 Page 6 of 6 Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 13th day of August 2019, and adopted on the 10th day of September, 2019, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS DIANE B. DIXON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE l HARP, CITY ATTORNEY ent(s): Exhibit A - Development Agreement 3-35 EXHIBIT "A" DEVELOPMENT AGREEMENT 3-36 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: Citv Clerk (Space Above This Line Is for Recorder's Use Only) This Agreement is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and VIVANTE NEWPORT CENTER, LLC concerning VIVANTE SENIOR LIVING 850 AND 856 SAN CLEMENTE DRIVE 3-37 DEVELOPMENT AGREEMENT (Pursuant to Newport Beach Municipal Code Chapter 15.45 and California Government Code Sections 65864-65869.5) This DEVELOPMENT AGREEMENT ("Agreement' or "Development Agreement") is dated for reference purposes as of the _ day of , 2019 ("Agreement Date"), and is being entered into by and between the CITY OF NEWPORT BEACH ("City") a California municipal corporation and charter city, organized and existing under and by virtue of its Charter and the Constitution, and the laws of the State of California, and VIVANTE NEWPORT CENTER, LLC, a Delaware limited liability company ("Developer"). City and Developer are sometimes collectively referred to in this Agreement as the "Parties" and individually as a "Party." RECITALS A. Developer is fee simple owner of that certain real property located in the City of Newport Beach, County of Orange. State of California commonly referred to as 850 and 856 San Clemente Drive. Newport Beach, California (APN #442-261-05 and #442-261-17) ("Property) and therefore is authorized to enter into this Agreement pursuant to Government Code Section 65865 and Newport Beach Municipal Code Chapter 15.45. The Property is more particularly described in the legal description attached hereto as Exhibit A and is depicted on the site map attached hereto as Exhibit B. B. To encourage investment in, and commitment to, comprehensive planning and public facilities financing, strengthen the public planning process and encourage private implementation of the local general plan, provide certainty in the approval of projects to avoid waste of time and resources, and reduce the economic costs of development by providing assurance to property owners that they may proceed with projects consistent with existing land use policies, rules, and regulations, the California Legislature adopted California Government Code Sections 65864-65869.5 ("Development Agreement Statute'') authorizing cities and counties to enter into development agreements with persons or entities having a legal or equitable interest in real property located within their jurisdiction. C. On March 13. 2007, the City Council adopted Ordinance No. 2007-6, entitled "Ordinance Amending Chapter 15.45 of City of Newport Beach Municipal Code Regarding Development Agreements" ("Development Agreement Ordinance"). This Agreement is consistent with the Development Agreement Ordinance. D. As detailed in Section 4 of this Agreement and the Development Plans (as defined herein), and in consideration of the significant benefits outlined in this Agreement. Developer has agreed to pay a total Public Benefit Fee (as defined herein) in the sum of Three Million One Hundred Fifty Thousand Dollars and 00/100 ($3.150.000.00). Developer shall pay the Public Benefit Fee to the City at the time of the City's issuance of the first building permit for the Project (as defined herein). E. This Agreement is consistent with the City of Newport Beach General Plan. including, without limitation, the Property's proposed "MU -H3 (Mixed -Use Horizontal)" General Plan designation that is being adopted and approved by the City Council concurrently 3-38 with its approval of this Agreement to establish appropriate standards to regulate land use and development of the Property consistent with the General Plan. G. In recognition of the significant public benefits that this Agreement provides, the City Council has found that this Agreement: (i) is consistent with the City of Newport Beach General Plan as of the date of this Agreement; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, the City's police power; (iv) is consistent and has been approved consistent with the Project's Addendum to the Environmental Impact Report and final Environmental Impact Report (SCH# 2016021023) ("EIR") that was certified by the City Council on November 29, 2016, for the Museum House project, all of which analyze the environmental effects of the proposed development of the Project on the Property, and all of the findings, conditions of approval and mitigation measures related thereto; and (v) is consistent and has been approved consistent with provisions of California Government Code Section 65867 and City of Newport Beach Municipal Code Chapter 15.45. H. On July 18, 2019, City's Planning Commission held a public hearing on this Agreement, made findings and determinations with respect to this Agreement, and recommended to the City Council that the City Council approve this Agreement. 1. On August 13, 2019, the City Council also held a public hearing on this Agreement and considered the Planning Commission's recommendations and the testimony and information submitted by City staff, Developer, and members of the public. On September 10, 2019 consistent with applicable provisions of the Development Agreement Statute and Development Agreement Ordinance, the City Council adopted Ordinance No. 2019 - ("Adopting Ordinance"), finding this Agreement consistent with the City of Newport Beach General Plan and approving and adopting this Agreement. AGREEMENT NOW, THEREFORE, City and Developer agree as follows: 1. Definitions. In addition to any terms defined elsewhere in this Agreement, the following terms when used in this Agreement shall have the meanings set forth below: "Action" shall have the meaning ascribed in Section 8.10 of this Agreement. "Adopting Ordinance" shall mean City Council Ordinance No. 2019-_ approving and adopting this Agreement. "Agreement" shall mean this Development Agreement, as the same may be amended from time to time. "Agreement Date" shall mean the date first written above, which date is the date the City Council adopted the Adopting Ordinance. 3-39 "CEQA" shall mean the California Environmental Quality Act (California Public Resources Code sections 21000-21177) and the implementing regulations promulgated thereunder by the Secretary for Resources (California Code of Regulations. Title 14, Division 6, Chapter')'. Section 15000 et seq.), as the same may be amended from time to time. "City'" shall mean the City of Newport Beach, a California municipal corporation and charter city, and any successor or assignee of the rights and obligations of the City of Newport Beach hereunder. "City Council" shall mean the governing body of City. "City's Affiliated Parties" shall have the meaning ascribed in Section 10.1 of this Agreement. "Claim" shall have the meaning ascribed in Section 10.1 of this Agreement. "CPI Index" shall mean the Consumer Price Index published from time to time by the United States Department of Labor for all urban consumers (all items) for the smallest geographic area that includes the City or. if such index is discontinued, such other similar index as may be publicly available that is selected by City- in its reasonable discretion. "Cure Period" shall have the meaning ascribed in Section 8.1 of this Agreement. "Default" shall have the meaning ascribed to that term in Section 8.1 of this Agreement. "Develop" or "Development'' shall mean to improve or the improvement of the Property for the purpose 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 all of the private improvements and facilities comprising the Project; the preservation or restoration, as required of natural and man-made or altered open space areas; and the installation of landscaping. The terms "Develop" and "Development," as used herein, do not include the maintenance, repair, reconstruction, replacement, or redevelopment of any structure, improvement, or facility after the initial construction and completion thereof. "'Developer" shall mean Vivante Newport Center. LLC, a Delaware limited liability company, and any successor or assignee to all or any portion of its right, title, and/or interest in and to ownership of all or a portion of the Property and/or the Project. "Development Agreement Ordinance" shall mean Chapter 15.45 of the City of Newport Beach Municipal Code. "Development Agreement Statute" shall mean California Government Code Sections 65864-65869.5, inclusive. "Development Exactions" shall mean any requirement of City in connection with or pursuant to any ordinance. resolution. rule, or official policy for the dedication of land, the construction or installation of any public improvement or facility, or the payment of any fee or 3-40 charge in order to lessen, offset, mitigate, or compensate for the impacts of Development of the Project on the environment or other public interests. "Development Plan" shall mean all of the land use entitlements, approvals and permits approved by the City for the Project on or before the Agreement Date, as the same may be amended from time to time consistent with this Agreement. Such land use entitlements, approvals and permits include, without limitation, the following: (1) the Development rights as provided under this Agreement; (2) General Plan Amendment No. GP2018-003 to amend Anomaly No. 49 of Table LU2 and to change the land use category from PI (Private Institutions) to MU -H3 (Mixed -Use Horizontal); (3) Planned Community Development Plan Amendment No. PC2018-001 to modify the San Joaquin Plaza Planned Community Development Plan (PC -l9) to include development and design standards to allow for 90 senior dwelling units and 27 memory care beds and an increase in the height limit from 65 feet to 69 feet with an additional 10 feet for rooftop appurtenances; (4) Development Agreement No. DA 2018-005 to provide public benefits should the Project be approved; (5) Conditional Use Permit No. UP2018-19 to allow the operation of the proposed senior housing and memory care facility, alcohol service for dining hall and lounge areas in the form of a Type 47 (On Sale General) and Type 57 (Special On Sale General), and ensure land use compatibility; (6) Major Site Development Review No. SD2018- 003 to allow the construction of 90 senior dwelling units and a 27 bed memory care facility; (7) Lot Merger No. LM2018-004 to merge the two existing parcels into one development site; (8) Addendum to Environmental Impact Report No. ER2016-002 (SCH#2016021023); (9) the EIR (State Clearinghouse No. 2016071062); and (10) all conditions of approval and all mitigation measure approved for the Project on or before the Agreement Date. "Development Regulations" shall mean the following regulations as they are in effect as of the Effective Date and to the extent they govern or regulate the development of the Property, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Effective Date that affects the Development of the Property, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Developer in writing: the General Plan; the Development Plan; and, to the extent not expressly superseded by the Development Plan or this Agreement (see Section 4.3 in particular), all other land use and subdivision regulations governing the permitted uses, density and intensity of use, design, and improvement, procedures for obtaining required City permits and approvals for development, and similar matters that may apply to the Development of the Project on the Property during the Term of this Agreement that are set forth in Title 15 of the Municipal Code (buildings and construction), Title 19 of the Municipal Code (subdivisions and inclusionary housing), and Title 20 of the Municipal Code (planning, zoning and density bonus), but specifically excluding all other sections of the Municipal Code, including without limitation Title 5 of the Municipal Code (business licenses and regulations). Notwithstanding the foregoing, the term "Development Regulations," as used herein, does not include any City ordinance. resolution, code, rule, regulation or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations: (ii) taxes and assessments: (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; or (v) the exercise of the power of eminent domain. "Effective Date" shall mean the latest of all of the following occurring: (i) the date that is thirty (30) calendar days after the Agreement Date: (ii) if a referendum concerning the Adopting 4 3-41 Ordinance, the Development Plan, or any of the Development Regulations approved on or before the Agreement Date is timely qualified for the ballot and a referendum election is held concerning the Adopting Ordinance or any of such Development Regulations, the date on which the referendum is certified resulting in upholding and approving the Adopting Ordinance and the Development Regulations; or (iii) if a lawsuit is timely filed challenging the validity or legality of the Adopting Ordinance, this Agreement, the Development Plan, and/or any of the Development Regulations approved on or before the Agreement Date, the date on which said challenge is finally resolved in favor of the validity or legality of the Adopting Ordinance, this Agreement, the Development Plan, and/or the applicable Development Regulations, whether such finality is achieved by a final non -appealable judgment, voluntary or involuntary dismissal (and the passage of any time required to appeal an involuntary dismissal), or binding written settlement agreement. Promptly after the Effective Date occurs, the Parties agree to cooperate in causing an appropriate instrument to be executed and recorded against the Property memorializing the Effective Date. "Environmental Laws" means all federal, state, regional, county, municipal, and local laws, statutes, ordinances, rules, and regulations which are in effect as of the Agreement Date, and all federal, state, regional, county, municipal, and local laws, statutes, rules, ordinances, rules, and regulations which may hereafter be enacted and which apply to the Property or any part thereof, pertaining to the use, generation, storage, disposal, release, treatment, or removal of any Hazardous Substances, including without limitation the following: the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601, et seq., as amended ("CERCLA"); the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901, et sec,., as amended ("RCRA"); the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C. Sections 11001 et seq., as amended; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et sec ., as amended; the Clean Air Act, 42 U.S.C. Sections 7401 et seq., as amended; the Clean Water Act, 33 U.S.C. Section 1251, et sec ., as amended; the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et seq., as amended; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Sections 136 et seq., as amended; the Federal Safe Drinking Water Act, 42 U.S.C. Sections 300f et seq., as amended; the Federal Radon and Indoor Air Quality Research Act, 42 U.S.C. Sections 7401 et seq., as amended; the Occupational Safety and Health Act, 29 U.S.C. Sections 651 et seq., as amended: and California Health and Safety Code Section 25100, et M. "General Plan" shall mean City's 2006 General Plan adopted by the City Council on July 25, 2006, by Resolution No. 2006-76, and any amendments to the 2006 General Plan that became effective before the Effective Date. The term "General Plan' shall exclude any amendments that became effective after the Effective Date unless such amendment is expressly authorized by this Agreement, or is specifically agreed to by Developer. The Land Use Plan of the Land Use Element of the General Plan was approved by City voters in a general election on November 7, 2006. "Hazardous Substances" means any toxic substance or waste, pollutant, hazardous substance or waste, contaminant, special waste, industrial substance or waste, petroleum or petroleum -derived substance or waste, or any toxic or hazardous constituent or additive to or breakdown component from any such substance or waste, including without limitation any �1 3-42 substance, waste, or material regulated under or defined as "hazardous" or "toxic" under any Environmental Law. "Mortgage" shall mean a mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Property, or a part or interest in the Property, is pledged as security and contracted for in good faith and for fair value. "Mortgagee" shall mean the holder of a beneficial interest under a Mortgage or any successor or assignee of the Mortgagee. "Notice of Default" shall have the meaning ascribed in Section 8.1 of this Agreement. "lam" or "Parties" shall mean either City or Developer or both, as determined by the context. "Project" shall mean all on-site and off-site improvements, as provided in this Agreement and the Development Regulations, as the same may be modified or amended from time to time consistent with this Agreement and applicable law. "Property" is located at 850 and 856 San Clemente Drive in the City, as described in Exhibit A and depicted on Exhibit B. "Public Benefit Fee" shall have the meaning ascribed in Section 3.1 of this Agreement. "Subsequent Development Approvals" shall mean all discretionary development and building approvals that Developer is required to obtain to Develop the Project on and with respect to the Property after the Agreement Date consistent with the Development Regulations and this Agreement. "Term" shall have the meaning ascribed in Section 2.4 of this Agreement. "Termination Date" shall have the meaning ascribed in Section 2.4 of this Agreement. "Transfer" shall have the meaning ascribed in Section I 1 of this Agreement. 2. General Provisions. 2.1 Plan Consistency, Zoning Implementation. This Agreement is consistent with the General Plan and the San Joaquin Plaza Planned Community District ("PC -19") as amended by the approvals in the Development Plan adopted concurrently herewith (including but not limited to Planned Community Development Plan Amendment No. PC2018-001). 2.2 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out in accordance with the terms of this Agreement. 31 3-43 2.3 Developer Representations and Warranties Regarding Ownership of the Property and Related Matters Pertaining to this Agreement. Developer and each person executing this Agreement on behalf of Developer hereby represents and warrants to City as follows: (i) that Developer is the fee simple owner to the Property; (ii) if Developer or any co-owner comprising Developer is a legal entity that such entity is duly formed and existing and is authorized to do business in the State of California; (iii) if Developer or any co-owner comprising Developer is a natural person that such natural person has the legal right and capacity to execute this Agreement; (iv) that all actions required to be taken by all persons and entities comprising Developer to enter into this Agreement have been taken and that Developer has the legal authority to enter into this Agreement; (v) that Developer's entering into and performing its obligations set forth in this Agreement will not result in a violation of any obligation, contractual or otherwise, that Developer or any person or entity comprising Developer has to any third party; and (vi) that neither Developer nor any co- owner comprising Developer is currently the subject of any voluntary or involuntary bankruptcy or insolvency petition; and (vii) that Developer has no actual knowledge of any pending or threatened claims of any person or entity affecting the validity of any of the representations and warranties set forth in clauses (i) -(vi). inclusive. 2.4 Term. The term of this Agreement ("Term") shall commence on the Effective Date and shall terminate on the "Termination Date." Notwithstanding any other provision set forth in this Agreement to the contrary, if any Party reasonably determines that the Effective Date of this Agreement will not occur because, for example, (i) the Adopting Ordinance or any of the Development Regulations approved on or before the Agreement Date for the Project has/have been disapproved by City's voters at a referendum election or (ii) a final non -appealable judgment is entered in a judicial action challenging the validity or legality of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations for the Project approved on or before the Agreement Date such that this Agreement and/or any of such Development Regulations is/are invalid and unenforceable in whole or in such a substantial part that the judgment substantially impairs such Party's rights or substantially increases its obligations or risks hereunder or thereunder, then such Party, in its sole and absolute discretion, shall have the right to terminate this Agreement upon delivery of a written notice of termination to the other Party, in which event neither Party shall have any further rights or obligations hereunder except that Developer's indemnity obligations set forth in Article 10 shall remain in full force and effect and shall be enforceable, and the Development Regulations applicable to the Project and the Property only (but not those general Development Regulations applicable to other properties in the City) shall be repealed by the City after delivery of said notice of termination except for the Development Regulations that have been disapproved by City's voters at a referendum election and, therefore, never took effect. The Termination Date shall be the earliest of the following dates: (i) the tenth (10th) anniversary of the EtTective Date; (ii) such earlier date that this Agreement may be terminated in accordance with Articles 5, 7, and/or Section 8.3 of this Agreement and/or Sections 65865.1 and/or 65868 of the Development Agreement Statute; or (iii) completion of the Project in accordance with the terms of this Agreement. including Developer's complete satisfaction. 7 3-44 performance, and payment, as applicable, of all Development Exactions, the issuance of all required final occupancy permits, and acceptance by City or applicable public agency(ies) or private entity(ies) of all required offers of dedication. Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 14.11 (as well as any other Developer obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement. 3. Public Benefits. 3.1 Public Benefit Fee. As consideration for City's approval and performance of its obligations set forth in this Agreement, Developer shall pay to City a fee in the amount of three million one hundred twenty - fifty thousand dollars and 00/100 ($3,150,000.00), which shall be in addition to any other fee or charge to which the Property and the Project would otherwise be subject. The Developer shall pay the Public Benefit Fee to the City at the time of City's issuance of the Project's first building permit. Should the Developer fail to pay the Public Benefit Fee at the time of the City's issuance of the Project's first building permit, the Developer shall be in default of the Agreement, as further described in Section 8 of this Agreement. The City has not designated a specific project or purpose for the Public Benefit Fee. Developer acknowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee. that its obligation to pay the Public Benefit Fee is an essential term of this Agreement and is not severable from City's obligations and Developer's vested rights to be acquired hereunder, and that Developer expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of the Public Benefit Fee on any ground whatsoever, including without limitation pursuant to the Fifth and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq.). or otherwise. In addition to any other remedy set forth in this Agreement for Developer's default, if Developer shall fail to timely pay any portion of the Public Benefit Fee when due, City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Project. 3.1.1 Public Benefit Fee Allocation The City Council retains sole and absolute discretion to determine how the Public Benefit Fee shall be allocated and no final decisions have been made as of the Agreement Date. 3.2 Reserved 3.3 Reserved 3-45 4. Development of Proiect. 4.1 Applicable Regulations; Developer's Vested Rights and City's Reservation of Discretion With Respect to Subsequent Development Approvals. Other than as expressly set forth in this Agreement, during the Term of this Agreement, (i) Developer shall have the vested right to Develop the Project on and with respect to the Property in accordance with the terms of the Development Regulations and this Agreement and (ii) City shall not prohibit or prevent development of the Property on grounds inconsistent with the Development Regulations or this Agreement. Notwithstanding the foregoing, nothing herein is intended to limit or restrict the City's discretion with respect to (i) those review and approval requirements contained in the Development Regulations, (ii) the exercise of any discretionary authority City retains under the Development Regulations, (iii) the approval, conditional approval, or denial of any Subsequent Development Approvals that are required for Development of the Project as of the Effective Date, or (iv) any environmental approvals that may be required under CEQA or any other federal or state law or regulation in conjunction with any Subsequent Development Approvals that may be required for the Project, and in this regard, as to future actions in connection with the Subsequent Development Approvals, the City reserves its full discretion to the same extent that it would have such discretion in the absence of this Agreement. In addition, it is understood and agreed that nothing in this Agreement is intended to vest Developer's rights with respect to any laws, regulations, rules, or official policies of any other (Le., non -City) governmental agency or public utility company with jurisdiction over the Property or the Project; or any applicable federal or state laws, regulations, rules, or official policies that may be inconsistent with this Agreement and that override or supersede the provisions set forth in this Agreement, and regardless of whether such overriding or superseding laws, regulations, rules, or official policies are adopted or applied to the Property or the Project prior or subsequent to the Agreement Date. Developer has expended and will continue to expend substantial amounts of time and money planning and preparing for Development of the Project. Developer represents, and City acknowledges, that Developer would not make these expenditures without this Agreement, and that Developer is and will be making these expenditures in reasonable reliance upon its vested rights to Develop the Project as set forth in this Agreement. Developer may apply to City for permits or approvals necessary to modify or amend the Development specified in the Development Regulations, without amending this Agreement, provided that the request does not propose an increase in the maximum density, intensity, height, or size of proposed structures, or a change in use that generates more peak hour traffic or more daily traffic and, in addition, Developer may apply to City for approval of minor amendments to the existing tentative tract map, if any, or associated conditions of approval, consistent with City of Newport Beach Municipal Code Section 19.12.090. This Agreement does not constitute a promise or commitment by City to approve any such permit or approval, or to approve the same with or without any particular requirements or conditions, and City's discretion with respect to such matters shall be the same as it would be in the absence of this Agreement. 4.2 No Conflicting Enactments. 0 3-46 Except to the extent City reserves its discretion as expressly set forth in this Agreement, during the Term of this Agreement City shall not apply to the Project or the Property any ordinance, policy, rule, regulation, or other measure relating to Development of the Project that is enacted or becomes effective after the Effective Date to the extent it conflicts with this Agreement or Developer consents in writing. This Section 4.2 shall not restrict City's ability to enact an ordinance, policy, rule, regulation, or other measure applicable to the Project pursuant to California Government Code Section 65866 consistent with the procedures specified in Section 4.3 of this Agreement. In Pardee Construction Co. v. City of'Camarillo (1984) 37 Cal.3d 465, the California Supreme Court held that a construction company was not exempt from a city's growth control ordinance even though the city and construction company had entered into a consent judgment (tantamount to a contract under California law) establishing the company's vested rights to develop its property consistent with the zoning. The California Supreme Court reached this result because the consent judgment failed to address the timing of development. The Parties intend to avoid the result of the Pardee case by acknowledging and providing in this Agreement that Developer shall have the vested right to Develop the Project on and with respect to the Property at the rate, timing, and sequencing that Developer deems appropriate within the exercise of Developer's sole subjective business judgment, provided that such Development occurs in accordance with this Agreement and the Development Regulations, notwithstanding adoption by City's electorate of an initiative to the contrary after the Effective Date. No City moratorium or other similar limitation relating to the rate, timing, or sequencing of the Development of all or any part of the Project and whether enacted by initiative or another method, affecting subdivision maps, building permits, occupancy certificates, or other entitlement to use, shall apply to the Project to the extent such moratorium or other similar limitation restricts Developer's vested rights in this Agreement or otherwise conflicts with the express provisions of this Agreement. 4.3 Reservations of Authority. Notwithstanding any other provision set forth in this Agreement to the contrary, the laws, rules, regulations, and official policies set forth in this Section 4.3 shall apply to and govern the Development of the Project on and with respect to the Property. 4.3.1 Procedural Regulations. Unless otherwise specified in this Agreement, procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and any other matter of procedure shall apply to the Property, provided that such procedural regulations are adopted and applied City- wide or to all other properties similarly situated in City. 4.3.2 Processing and Permit Fees. City shall have the right to charge, and Developer shall be required to pay, all applicable processing and permit fees to cover the reasonable cost to City of processing and reviewing applications and plans for any required Subsequent Development Approvals, building permits, excavation and grading permits, encroachment permits, and the like, for performing necessary studies and reports in connection therewith, inspecting the work constructed or installed by or on behalf of Developer, and monitoring compliance with any requirements applicable to Development of the Project, all at the rates in effect at the time fees are due. 10 3-47 4.3.2.1 Vested Development Impact Fees. All City development impact fees shall be fixed at the rates in place on the Agreement Date as shown on attached Exhibit C. Fees and charges levied by any other (i.e.. non -City) governmental agency or public utility company with jurisdiction over the Property or the Project shall not be fixed in place by the Development Agreement. 4.3.3 Consistent Future City Regulations. City ordinances, resolutions, regulations, and official policies governing Development which do not conflict with the Development Regulations, or with respect to such regulations that do conflict, where Developer has consented in writing to the regulations, shall apply to the Property. 4.3.4 Development Exactions Applicable to Property. During the Term of this Agreement, Developer shall be required to satisfy and pay all Development Exactions at the time performance or payment is due to the same extent and in the same amount(s) that would apply to Developer and the Project in the absence of this Agreement; provided except where the extent the timing, value, scope and/or extent of a particular Development Exaction for the Project has been established and fixed by City in this Agreement, the Project's conditions of approval, or the Development Regulations. City shall not alter, increase, or modify said Development Exaction in a manner that is inconsistent with this Agreement. the Project's conditions of approval. or the Development Regulations without Developer's prior written consent or as may be otherwise required pursuant to overriding federal or state laws or regulations (Section 4.3.5 below). In addition, nothing in this Agreement is intended or shall be deemed to vest Developer against the obligation to pay any of the following (which are not included within the definition of "Development Exactions") in the full amount that would apply in the absence of this Agreement: (i) City's normal fees for processing, environmental assessment and review, tentative tract and parcel map review, plan checking, site review and approval, administrative review, building permit, grading permit, inspection, and similar fees imposed to recover City's costs associated with processing, reviewing, and inspecting project applications, plans, and specifications, including CEQA review, (ii) fees and charges levied by any other public agency, utility, district, or joint powers authority, regardless of whether City collects those fees and charges; or (iii) community facility district special taxes or special district assessments or similar assessments, business license fees, bonds or other security required for public improvements, transient occupancy taxes, sales taxes, property taxes, sewer lateral connection fees, water service connection fees, new water meter fees. and the Property Development Tax payable under Section 3.12 of City's Municipal Code. 4.3.5 Overriding Federal and State Laws and Regulations. Federal and state laws and regulations that override Developer's vested rights set forth in this Agreement shall apply to the Property, together with any City ordinances, resolutions. regulations, and official policies that are necessary to enable City to comply with the provisions of any such overriding federal or state laws and regulations. provided that (i) Developer does not waive its right to challenge or contest the validity of any such purportedly overriding federal, state, or City law or regulation; and (ii) upon the discovery of any such overriding federal, state, or City law or regulation that prevents or precludes compliance with any provision of this Agreement, City or Developer shall provide to the other Party a written notice identifying the federal, state. or City law or regulation, together with a copy of the law or regulation and a brief written statement of the conflict(s) between that law or regulation and the provisions of this Agreement. Promptly thereafter. City and Developer shall meet and confer in good faith in a reasonable attempt to 3-48 determine whether a modification or suspension of this Agreement, in whole or in part, is necessary to comply with such overriding federal, state, or City law or regulation. In such negotiations, City and Developer agree to preserve the terms of this Agreement and the rights of Developer as derived from this Agreement to the maximum feasible extent while resolving the conflict. City agrees to cooperate with Developer at no cost to City or Developer in resolving the conflict in a manner which minimizes any financial impact of the conflict upon Developer. City also agrees to process in a prompt manner Developer's proposed changes to the Project and any of the Development Regulations as may be necessary to comply with such overriding federal, state, or City law or regulation; provided, however, that the approval of such changes by City shall be subject to the discretion of City, consistent with this Agreement. 4.3.6 Public Health and Safety. Any City ordinance, resolution, rule, regulation, program, or official policy that is necessary to protect persons on the Property or in the immediate vicinity from conditions dangerous to their health or safety, as reasonably determined by City, shall apply to the Property, even though the application of the ordinance, resolution, rule regulation, program, or official policy would result in the impairment of Developer's vested rights under this Agreement. 4.3.7 Uniform Building Standards. Existing and future building and building - related standards set forth in the uniform codes adopted and amended by City from time -to -time, including building, plumbing, mechanical, electrical, housing, swimming pool, and fire codes, and any modifications and amendments thereof shall all apply to the Project and the Property to the same extent that the same would apply in the absence of this Agreement. 4.3.8 Public Works Improvements. To the extent Developer constructs or installs any public improvements, works, or facilities, the City standards in effect for such public improvements, works, or facilities at the time of City's issuance of a permit, license, or other authorization for construction or installation of same shall apply. 4.3.9 No Guarantee or Reservation of Utility Capacity. Notwithstanding any other provision set forth in this Agreement to the contrary, nothing in this Agreement is intended or shall be interpreted to require City to guarantee or reserve to or for the benefit of Developer or the Property any utility capacity, service, or facilities that may be needed to serve the Project, whether domestic or reclaimed water service, sanitary sewer transmission or wastewater treatment capacity, downstream drainage capacity, or otherwise, and City shall have the right to limit or restrict Development of the Project if and to the extent that City reasonably determines that inadequate utility capacity exists to adequately serve the Project at the time Development is scheduled to commence. Notwithstanding the foregoing, City covenants to provide utility services to the Project on a non-discriminatory basis (i.e., on the same terms and conditions that City undertakes to provide such services to other similarly situated new developments in the City of Newport Beach as and when service connections are provided and service commences). 5. Amendment or Cancellation of Agreement This Agreement may be amended or canceled in whole or in part only by mutual written and executed consent of the Parties in compliance with California Government Code Section 65868 and Newport Beach Municipal Code Section 15.45.070 or by unilateral termination by City in the event of an uncured default of Developer. 12 3-49 6. Enforcement. Unless amended or canceled pursuant to California Government Code Section 65868, Newport Beach Municipal Code Section 15.45.070, or modified or suspended pursuant to Newport Beach Municipal Code Chapter 15.45 or California Government Code Section 65869.5, and except as otherwise provided in subdivision (b) of Section 65865.3, this Agreement shall be enforceable by any Party despite any change in any applicable general or specific plan, zoning, subdivision, or building regulation or other applicable ordinance or regulation adopted by City (including by City's electorate) that purports to apply to any or all of the Property. 7. Annual Review of Developer's Compliance With Agreement. 7.1 General. City shall review this Agreement once during every twelve (12) month period following the Effective Date for compliance with the terms of this Agreement as provided in Government Code section 65865.1. Developer (including any successor to the owner executing this Agreement on or before the date of the Adopting Ordinance) shall pay City a reasonable fee in an amount City may reasonably establish from time -to -time to cover the actual and necessary costs for the annual review. City's failure to timely provide or conduct an annual review shall not constitute a Default hereunder by City. 7.2 Developer Obligation to Demonstrate Good Faith Compliance. During each annual review by City, Developer is required to demonstrate good faith compliance with the terms of the Agreement. Developer agrees to furnish such evidence of good faith compliance as City, in the reasonable exercise of its discretion, may require, thirty (30) calendar days prior to each anniversary of the Effective Date during the Term. 7.3 Procedure. The Zoning Administrator shall conduct a duly noticed hearing and shall determine, on the basis of substantial evidence, whether or not Developer has, for the period under review, complied with the terms of this Agreement. If the Zoning Administrator finds that Developer has so complied, the annual review shall be concluded. If the Zoning Administrator finds, on the basis of substantial evidence, that Developer has not so complied, written notice shall be sent to Developer by first class mail of the Zoning Administrator's finding of non-compliance, and Developer shall be given at least ten (10) calendar days to cure any noncompliance that relates to the payment of money and thirty (30) calendar days to cure any other type of noncompliance. If a cure not relating to the payment of money cannot be completed within thirty (30) calendar days for reasons which are beyond the control of Developer, Developer must commence the cure within such thirty (30) calendar days and diligently pursue such cure to completion. If Developer fails to cure such noncompliance within the time(s) set forth above, such failure shall be considered to be a Default and City shall be entitled to exercise the remedies set forth in Article 8 below. 13 3-50 7.4 Annual Review a Non -Exclusive Means for Determining and Requiring Cure of Developer's Default. The annual review- procedures set forth in this Article 7 shall not be the exclusive means for City to identify a Default by Developer or limit City's rights or remedies for any such Default. 8. Events of Default. 8.1 General Provisions. In the event of any material default, breach, or violation of the terms of this Agreement ("Default"), the Party alleging a Default shall deliver a written notice (each, a "Notice of Default") to the defaulting Party. The Notice of Default shall specify the nature of the alleged Default and a reasonable manner and sufficient period of time (twenty (20) calendar days if the Default relates to the failure to timely make a monetary payment due hereunder and not less than thirty (30) calendar days in the event of non -monetary Defaults) in which the Default must be cured ("Cure Period"). During the Cure Period, the Party charged shall not be considered in Default for the purposes of termination of this Agreement or institution of legal proceedings. If the alleged Default is cured within the Cure Period, then the Default thereafter shall be deemed not to exist. If a non -monetary Default cannot be cured during the Cure Period with the exercise of commercially reasonable diligence, the defaulting Party must promptly commence to cure as quickly as possible, and in no event later than thirty (30) calendar days after it receives the Notice of Default, and thereafter diligently pursue said cure to completion. Notwithstanding the foregoing, the City is not required to give Developer notice of default and may immediately pursue remedies for a Developer Default that result in an immediate threat to public health, safety or welfare. 8.2 Default by Developer. If Developer is alleged to have committed Default and it disputes the claimed Default, it may make a written request for an appeal hearing before the City Council within ten (10) calendar days of receiving the Notice of Default, and a public hearing shall be scheduled at the next available City Council meeting to consider Developer's appeal of the Notice of Default. Failure to appeal a Notice of Default to the City Council within the ten (10) calendar day period shall waive any right to a hearing on the claimed Default. If Developer's appeal of the Notice of Default is timely and in good faith but after a public hearing of Developer's appeal the City Council concludes that Developer is in Default as alleged in the Notice of Default, the accrual date for commencement of the thirty (30) calendar day Cure Period provided in Section 8.1 shall be extended until the City Council's denial of Developer's appeal is communicated to Developer in writing. 8.3 City's Option to Terminate Agreement. In the event of an alleged Developer Default. City may not terminate this Agreement without first delivering a written Notice of Default and providing Developer with the opportunity to cure the Default within the Cure Period, as provided in Section 8.1, and complying with Section 8.2 if Developer timely appeals any Notice of Default. A termination of this Agreement by City shall be valid only if good cause exists and is supported by evidence presented to the 14 3-51 City Council at or in connection with a duly noticed public hearing to establish the existence of a Default. The validity of any termination may be judicially challenged by Developer. Any such judicial challenge must be brought within ninety (90) calendar days of service on Developer, by first class mail, postage prepaid, of written notice of termination by City or a written notice of City's determination of an appeal of the Notice of Default as provided in Section 8.2. 8.4 Default by City. If Developer alleges a City Default and alleges that the City has not cured the Default within the Cure Period, Developer may pursue any legal or equitable remedy available to it, including, without limitation, an action for a writ of mandamus, injunctive relief, or specific performance of City's obligations set forth in this Agreement. Upon a City Default, any resulting delays in Developer's performance hereunder shall neither be a Developer Default nor constitute grounds for termination or cancellation of this Agreement by City and shall, at Developer's option (and provided Developer delivers written notice to City within thirty (30) calendar days of the commencement of the alleged City Default), extend the Term for a period equal to the length of the delay. 8.5 Waiver. Failure or delay by any Party in delivering a Notice of Default shall not waive that Party's right to deliver a future Notice of Default of the same or any other Default. 8.6 Specific Performance Remedy. Due to the size, nature, and scope of the Project, it will not be practical or possible to restore the Property to its pre-existing condition once implementation of this Agreement has begun. After such implementation. both Developer and City may be foreclosed from other choices they may have had to plan for the development of the Property, to utilize the Property or provide for other benefits and alternatives. Developer 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. It is not possible to determine the sum of money which would adequately compensate Developer or City for such efforts. For the above reasons, except as set forth in Section 8.7, City and Developer agree that damages would not be an adequate remedy if either City or Developer fails to carry out its obligations under this Agreement. Therefore, except as set forth in Section 8.7, specific performance of this Agreement is necessary to compensate Developer if City fails to carry out its obligations under this Agreement or to compensate City if Developer falls to carry out its obligations under this Agreement. 8.7 Monetary Damages. The Parties agree that monetary damages shall not be an available remedy for any Party for a Default hereunder by the other Party; provided, however, that (i) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict City's right to recover the Public Benefit Fees due from Developer as set forth herein; and (ii) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict Developer's indemnity obligations set forth in Article 10 or the right of the prevailing Party in any Action to recover its litigation expenses, as set forth in 15 3-52 Section 8.10. In no event shall damages be awarded against the City upon an event of default or upon termination of this Agreement. Developer expressly agrees that the City, any City agencies and their respective elected and appointed councils, boards, commissions, officers, agents, employees, volunteers and representatives (collectively, for purposes of this Section 8.7, "City") shall not be liable for any monetary damage for a Default by the City or any claims against City arising out of this Agreement. Developer hereby expressly waives any such monetary damages against the City. The sole and exclusive judicial remedy for Developer in the event of a Default by the City shall be an action in mandamus, specific performance, or other injunctive or declaratory relief. 8.8 Additional City Remedy for Developer's Default. In the event of any Default by Developer, in addition to any other remedies which may be available to City, whether legal or equitable, City shall be entitled to receive and retain any Development Exactions applicable to the Project or the Property, including any fees, grants, dedications, or improvements to public property which it may have received prior to Developer's Default without recourse from Developer or its successors or assigns. 8.9 No Personal Liability of City Officials, Employees. or Agents. No City official, employee, or agent shall have any personal liability hereunder for a Default by City of any of its obligations set forth in this Agreement. 8.10 No Recovery Legal by Prevailing Party in Any Action. In any judicial proceeding, arbitration, or mediation (collectively, an "Action") between the Parties that seeks to enforce the provisions of this Agreement or arises out of this Agreement, the prevailing Party shall not recover any of its costs and expenses, regardless of whether they would be recoverable under California Code of Civil Procedure section 1033.5 or California Civil Code section 1717 in the absence of this Agreement. These costs and expenses include, but are not limited to, court costs, expert witness fees, attorneys' fees, City staff costs (including overhead), and costs of investigation and preparation before initiation of the Action. 9. Force Majeure. No Party shall be deemed to be in Default where failure or delay in performance of any of its obligations under this Agreement is caused, through no fault of the Party whose performance is prevented or delayed, by floods, earthquakes, other acts of God, fires, wars, riots or similar hostilities, strikes or other labor difficulties, state or federal regulations, or court actions. Except as specified above, nonperformance shall not be excused because of the act or omission of a third person. In no event shall the occurrence of an event of force majeure operate to extend the Term of this Agreement. In addition, in no event shall the time for performance of a monetary obligation, including without limitation Developer's obligation to pay Public Benefit Fees, be extended pursuant to this Section. 10. Indemnity Obligations of Developer. 10.1 Indemnity Arising From Acts or Omissions of Developer. 16 3-53 Except to the extent caused by the intentional misconduct or gross negligent acts, errors or omissions of City or one (1) or more of City's officials, employees, agents, attorneys, and contractors (collectively, the "City's Affiliated Parties"), Developer shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against all suits, claims, liabilities, losses, damages, penalties, obligations, and expenses (including but not limited to reasonable attorneys' fees and costs) (collectively, a "Claim") that may arise, directly or indirectly, from the acts, omissions, or operations of Developer or Developer's agents, contractors, subcontractors, agents, or employees in the course of Development of the Project or any other activities of Developer relating to the Property or Project, or pursuant to this Agreement. City shall be entitled to retain separate counsel to represent City against the Claim and the City's reasonable defense costs for its separate counsel shall be included in Developer's indemnity obligation, provided that such counsel shall reasonably cooperate with Developer in an effort to minimize the total litigation expenses incurred by Developer. In the event either City or Developer recovers any attorney's fees, expert witness fees, costs, interest, or other amounts from the party or parties asserting the Claim, Developer shall be entitled to retain the same (provided it has fully performed its indemnity obligations hereunder). The indemnity provisions in this Section 10.1 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.2 Third Party Litigation. In addition to its indemnity obligations set forth in Section 10.1, Developer shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any Claim against City or City's Affiliated Parties seeking to attack, set aside, void, or annul the approval of this Agreement, the Adopting Ordinance, any of the Development Plan approvals for the Project (including without limitation any actions taken pursuant to CEQA with respect thereto), any Subsequent Development Approval, or the approval of any permit granted pursuant to this Agreement. Said indemnity obligation shall include payment of reasonable attorney's fees, expert witness fees, City staff costs (including overhead), and court costs. City shall promptly notify Developer of any such Claim and City shall cooperate with Developer in the defense of such Claim. Developer shall not be responsible to indemnify, defend, and hold City harmless from such Claim until Developer is so notified and if City fails to cooperate in the defense of a Claim Developer shall not be responsible to defend, indemnify, and hold harmless City during the period that City so fails to cooperate or for any losses attributable thereto. City shall be entitled to retain separate counsel to represent City against the Claim and the City's reasonable defense costs for its separate counsel shall be included in Developer's indemnity obligation, provided that such counsel shall reasonably cooperate with Developer in an effort to minimize the total litigation expenses incurred by Developer. In the event either City or Developer recovers any attorney's fees, expert witness fees, costs, interest, or other amounts from the party or parties asserting the Claim, Developer shall be entitled to retain the same (provided it has fully performed its indemnity obligations hereunder). No settlement of any Claim against City or City's Affiliated Parties shall be executed without the written consent of both the City and Developer. The indemnity provisions in this Section 10.2 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.3 EnvironmentalIndemnity. 17 3-54 In addition to its indemnity obligations set forth in Section 10.1, from and after the Effective Date Developer shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any and all Claims for personal injury or death, property damage, economic loss, statutory penalties or fines, and damages of any kind or nature whatsoever, including without limitation reasonable attorney's fees, expert witness fees, and costs, based upon or arising from any of the following: (i) the actual or alleged presence of any Hazardous Substance on or under any of the Property in violation of any applicable Environmental Law; (ii) the actual or alleged migration of any Hazardous Substance from the Property through the soils or groundwater to a location or locations off of the Property; and (iii) the storage, handling, transport, or disposal of any Hazardous Substance on, to, or from the Property and any other area disturbed, graded, or developed by Developer in connection with Developer's Development of the Project. The indemnity provisions in this Section 10.3 shall commence on the Effective Date occurs, and shall survive the Termination Date. 11. Assignment. Developer shall have the right to sell, transfer, or assign (hereinafter, collectively, a "Transfer") Developer's interest in or fee title to the Property, in whole or in part, to a "Permitted Transferee" (which successor, as of the effective date of the Transfer, shall become the "Developer" under this Agreement) at any time from the Agreement Date until the Termination Date; provided, however, that no such Transfer shall violate the provisions of the Subdivision Map Act (Government Code Section 66410 et seq.) or City's local subdivision ordinance and any such transfer shall include the assignment and assumption of Developer's rights, duties, and obligations set forth in or arising under this Agreement as to the Property or the portion thereof so Transferred and shall be made in strict compliance with the following conditions precedent: (i) no transfer or assignment of any of Developer's rights or interest under this Agreement shall be made unless made together with the Transfer of all or a part of Developer's interest in the Property; and (ii) prior to the effective date of any proposed Transfer, Developer (as transferor) shall notify City, in writing, of such proposed Transfer and deliver to City a written assignment and assumption, executed in recordable form by the transferring and successor Developer and in a form subject to the reasonable approval of the City Attorney of City (or designee), pursuant to which the transferring Developer assigns to the successor Developer and the successor Developer assumes from the transferring Developer all of the rights and obligations of the transferring Developer with respect to the Property and this Agreement, or interest in the Property, or portion thereof to be so Transferred, including in the case of a partial Transfer the obligation to perform such obligations that must be performed outside of the Property so Transferred that are a condition precedent to the successor Developer's right to develop the portion of the Property so Transferred. Any Permitted Transferee shall have all of the same rights, benefits, duties, obligations, and liabilities of Developer under this Agreement with respect to the portion of, or interest in, the Property sold, transferred, and assigned to such Permitted Transferee; provided, however, that in the event of a Transfer of less than all of the Property, or interest in the Property, no such Permitted Transferee shall have the right to enter into an amendment of this Agreement that jeopardizes or impairs the rights or increases the obligations of the Developer with respect to the balance of the Property, without Developer's written consent. Notwithstanding any Transfer, the transferring Developer shall continue to be jointly and severally liable to City, together with the successor Developer, to perform all of the transferred 18 3-55 obligations set forth in or arising under this Agreement unless there is full satisfaction of all of the following conditions, in which event the transferring Developer shall be automatically released from any and all obligations with respect to the portion of the Property so Transferred: (i) the transferring Developer no longer has a legal or equitable interest in the portion of the Property so Transferred other than as a beneficiary under a deed of trust; (ii) the transferring Developer is not then in Default under this Agreement and no condition exists that with the passage of time or the giving of notice, or both. would constitute a Default hereunder; (iii) the transferring Developer has provided City with the notice and the fully executed written and recordable assignment and assumption agreement required as set forth in the first paragraph of this Section 11; and (iv) the successor Developer either (A) provides City with substitute security equivalent to any security previously provided by the transferring Developer to City to secure performance of the successor Developer's obligations hereunder with respect to the Property, or interest in the Property, or the portion of the Property so Transferred, as determined in the City's sole discretion, or (B) if the transferred obligation in question is not a secured obligation, the successor Developer either provides security reasonably satisfactory to City or otherwise demonstrates to City's reasonable satisfaction, as determined in the City's sole discretion, that the successor Developer has the financial resources or commitments available to perform the transferred obligation at the time and in the manner required under this Agreement and the Development Regulations for the Project. Any determination by the City in regards to the second paragraph of Section 11, subpart (iv) (A). (B), shall be documented in writing. 12. Mortgagee Rights. 12.1 Encumbrances on Property. The Parties agree that this Agreement shall not prevent or limit Developer in any manner from encumbering the Property, any part of the Property, or any improvements on the Property with any Mortgage securing financing with respect to the construction, development. use, or operation of the Project. 12.2 Mortgagee Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Nevertheless, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. Any acquisition or acceptance of title or any right or interest in the Property or part of the Property by a Mortgagee (whether due to foreclosure, trustee"s sale, deed in lieu of foreclosure, lease termination. or otherwise) shall be subject to all of the terms and conditions of this Agreement. Any Mortgagee who takes title to the Property or any part of the Property shall be entitled to the benefits arising under this Agreement. 12.3 Mortgagee Not Obligated. Notwithstanding the provisions of this Section 12.3, a Mortgagee will not have any obligation or duty under the terms of this Agreement to perform the obligations of Developer or other affirmative covenants of Developer, or to guarantee this performance except that: (i) the Mortgagee shall have no right to develop the Project under the Development Regulations without fully complying with the terms of this Agreement: and (ii) to the extent that any covenant to be 19 3-56 performed by Developer is a condition to the performance of a covenant by City, that performance shall continue to be a condition precedent to City's performance. 12.4 Notice of Default to Mortpapee; Right of Mortgagee to Cure. Each Mortgagee shall, upon written request to City, be entitled to receive written notice from City of. (i) the results of the periodic review of compliance specified in Article 7 of this Agreement, and (ii) any default by Developer of its obligations set forth in this Agreement. Each Mortgagee shall have a further right, but not an obligation, to cure the Default within thirty (30) calendar days after receiving a Notice of Default with respect to a monetary Default and within sixty (60) calendar days after receiving a Notice of Default with respect to a non -monetary Default. If the Mortgagee can only remedy or cure a non -monetary Default by obtaining possession of the Property, then the Mortgagee shall have the right to seek to obtain possession with diligence and continuity through a receiver or otherwise, and to remedy or cure the non -monetary Default within sixty (60) calendar days after obtaining possession and, except in case of emergency or to protect the public health or safety, City may not exercise any of its judicial remedies set forth in this Agreement to terminate or substantially alter the rights of the Mortgagee until expiration of the sixty (60) calendar day period. In the case of a non -monetary Default that cannot with diligence be remedied or cured within sixty (60) calendar days, the Mortgagee shall have additional time as is reasonably necessary to remedy or cure the Default, provided the Mortgagee promptly commences to cure the non -monetary Default within sixty (60) calendar days and diligently prosecutes the cure to completion. 13. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy. 14. Miscellaneous Terms. 14.1 Reserved 14.2 Notices. Any notice or demand that shall be required or permitted by law or any provision of this Agreement shall be in writing. If the notice or demand will be served upon a Party, it either shall be personally delivered to the Party; deposited in the United States mail, certified, return receipt requested, and postage prepaid; or delivered by a reliable courier service that provides a receipt showing date and time of delivery with courier charges prepaid. The notice or demand shall be addressed as follows: TO CITY: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Manager With a copy to: City Attorney City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 20 3-57 TO DEVELOPER: Robert Eres Vivante Newport Center, LLC 1 MacArthur Place, Suite 300 Santa Ana, CA 92707 With a copy to: Sean Matsler, Esq. Cox. Castle & Nicholson LLP 3121 Michelson Drive, Ste. 200 Irvine. CA 92612 Any Party may change the address stated in this Section 14.2 by delivering notice to the other Parties in the manner provided in this Section 14.2, and thereafter notices to such Party or Parties shall be addressed and submitted to the new address. Notices delivered in accordance with this Agreement shall be deemed to be delivered upon the earlier of: (i) the date received, or (ii) three business days after deposit in the mail as provided above. 14.3 Project as Private Undertaking The Development of the Project is a private undertaking. Neither the Developer nor the City is acting as the agent of the other in any respect, and each is an independent contracting entity with respect to the terms, covenants, and conditions set forth in this Agreement. This Agreement forms no partnership, joint venture, or other association of any kind. The only relationship between the Parties is that of a government entity regulating the Development of private property by the owner of the property. 14.4 Cooperation. Each Party shall cooperate with and provide reasonable assistance to the other Party to the extent consistent with and necessary to implement this Agreement. Upon the request of a Party at any time, the other Party shall promptly execute, with acknowledgement or affidavit if reasonably required, and file or record the required instruments and writings and take any actions as may be reasonably necessary to implement this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 14.5 Estoppel Certificates. At any time, any Party may deliver written notice to the other Party requesting that that Party certify in writing that, to the best of its knowledge: (i) this Agreement is in full force and effect and is binding on the Party: (ii) this Agreement has not been amended or modified either orally or in writing or, if this Agreement has been amended. the Party providing the certification shall identify the amendments or modifications: and (iii) the requesting Party is not in Default in the performance of its obligations under this Agreement and no event or situation has occurred that with the passage of time or the giving of Notice or both would constitute a Default or. ifs such is not the case. then the other Party shall describe the nature and amount of the actual or prospective Default. The Party requested to furnish an estoppel certificate shall execute and return the certificate within thirty (30) calendar days following receipt. 21 9:3 14.6 Rules of Construction. The singular includes the plural; the masculine and neuter include the feminine; "shall" is mandatory; and "may" is permissive. 14.7 Time Is of the Essence. Time is of the essence regarding each provision of this Agreement as to which time is an element. 14.8 Waiver. The failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, and failure by a Party to exercise its rights upon a Default by the other Party, shall not constitute a waiver of that Party's right to demand strict compliance by the other Party in the future. 14.9 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be identical and may be introduced in evidence or used for any other purpose without any other counterpart, but all of which shall together constitute one (1) and the same agreement. 14.10 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter addressed in this Agreement. 14.11 Severability. The Parties intend that each and every obligation of the Parties is interdependent and interrelated with the other, and if any provision of this Agreement or the application of the provision to any Party or circumstances shall be held invalid or unenforceable to any extent, it is the intention of the Parties that the remainder of this Agreement or the application of the provision to persons or circumstances shall be rendered invalid or unenforceable. The Parties intend that no Party shall receive any of the benefits of the Agreement without the full performance by such Party of all of its obligations provided for under this Agreement. Without limiting the generality of the foregoing, the Parties intend that Developer shall not receive any of the benefits of this Agreement if any of Developer's obligations are rendered void or unenforceable as the result of any third party litigation, and City shall be free to exercise its legislative discretion to amend or repeal the Development Regulations applicable to the Property and Developer shall cooperate as required, despite this Agreement, should third party litigation result in the nonperformance of Developer's obligations under this Agreement. The provisions of this Section 14.11 shall apply regardless of whether the Effective Date occurs and after the Termination Date. 14.12 Construction. 2-2 3-59 This Agreement has been drafted after extensive negotiation and revision. Both City and Developer are sophisticated parties who were represented by independent counsel throughout the negotiations or City and Developer had the opportunity to be so represented and voluntarily chose to not be so represented. City and Developer each agree and acknowledge that the terms of this Agreement are fair and reasonable, taking into account their respective purposes, terms, and conditions. This Agreement shall therefore be construed as a whole consistent with its fair meaning, and no principle or presumption of contract construction or interpretation shall be used to construe the whole or any part of this Agreement in favor of or against any Party. 14.13 Successors and Assigns: Constructive Notice and Acceptance. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. Except for those provisions relating to indemnity in Section 10, all other provisions of this Agreement shall, from and after the Effective Date hereof, be enforceable as equitable servitudes and constitute covenants running with the land. Subject to occurrence of the Effective Date, each covenant to do or refrain from doing some act hereunder with regard to Development of the Property: (i) is for the benefit of and is a burden upon every portion of the Property, (ii) runs with the Property and each portion thereof, and (iii) is binding upon each Party and each successor in interest during its ownership of the Property or any portion thereof. Every person or entity who now or later owns or acquires any right, title, or interest in any part of the Project or the Property is and shall be conclusively deemed to have consented and agreed to every provision of this Agreement. This Section 14.13 applies regardless of whether the instrument by which such person or entity acquires the interest refers to or acknowledges this Agreement and regardless of whether such person or entity has expressly entered into an assignment and assumption agreement as provided for in Section 11. 14.14 No Third Party Beneficiaries. The only Parties to this Agreement are City and Developer. This Agreement does not involve any third party beneficiaries, and it is not intended and shall not be construed to benefit or be enforceable by any other person or entity. 14.15 Applicable Law and Venue. This Agreement shall be construed and enforced consistent with the laws of the State of California, without regard to conflicts of law principles. Any action at law or in equity arising under this Agreement or brought by any Party for the purpose of enforcing, construing, or determining the validity of any provision of this Agreement shall be tiled and tried in the Superior Court of the County of Orange, State of California. or the United States District Court for the Central District of California. The Parties waive all provisions of law providing for the removal or change of venue to any other court. 14.16 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect construction or interpretation of this Agreement. 14.17 Incorporation of Recitals and Exhibits. �3 3-60 All of the Recitals are incorporated into this Agreement by this reference. 14.18 Recordation. The City Clerk of City shall record this Agreement and any amendment, modification, or cancellation of this Agreement in the Office of the County Recorder of the County of Orange within the period required by California Government Code section 65868.5 and City of Newport Beach Municipal Code section 15.45.090. The date of recordation of this Agreement shall not modify or amend the Effective Date or the Termination Date. [SIGNATURE PAGE FOLLOWS] 24 3-61 SIGNATURE PAGE TO DEVELOPMENT AGREEMENT ATTEST: Leilani I. Brown, City Clerk APPROVED AS TO FORM: Aaronarp, City Attorney Sean Matsler, Attorney for Developer "DEVELOPER" VIVANTE NEWPORT CENTER, LLC, a Delaware limited liability company By: _ Name: Title: "CITY" 25 CITY OF NEWPORT BEACH, a municipal corporation and charter city Diane B. Dixon, Mayor 3-62 DRAFT ACKNOWLEDGEMENTS A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On , before me, (here insert name and title of the officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On ,before me, (here insert name and title of the officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) -26- 3-63 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCEL A: PARCEL 2, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP FILED IN BOOK 81, PAGES 8 AND 9 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM ALL OIL, OIL RIGHTS, GAS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND, AND THE RIGHT TO GRANT AND TRANSFER THE SAME, TOGETHER WITH ALL NECESSARY AND CONVENIENT RIGHTS TO EXPLORE FOR, DEVELOP, PRODUCE AND EXTRACT AND TAKE THE SAME, SUBJECT TO THE EXPRESS LIMITATION THAT ANY AND ALL OPERATIONS FOR THE EXPLORATION, DEVELOPMENT, PRODUCTION, EXTRACTION AND TAKING OF ANY OF SAID SUBSTANCES SHALL BE CARRIED ON AT LEVELS BELOW THE DEPTH OF FIVE HUNDRED (500) FEET FROM THE SURFACE OF SAID LAND BY MEANS OF WELLS, DERRICK AND/OR OTHER EQUIPMENT FROM SURFACE LOCATIONS ON ADJOINING OR NEIGHBORING LAND, AND SUBJECT FURTHER TO THE EXPRESS LIMITATION THAT THE FOREGOING RESERVATION SHALL IN NO WAY BE INTERPRETED TO INCLUDE ANY RIGHT OF ENTRY IN AND UPON THE SURFACE OF SAID LAND, AS RESERVED BY THE IRVINE COMPANY, A CORPORATION ORGANIZED UNDER THE LAWS OF THE STATE OF WEST VIRGINIA IN A DEED RECORDED FEBRUARY 28, 1977 AS INSTRUMENT NO. 35908 IN BOOK 12085, PAGE 1561 OF OFFICIAL RECORDS. APN: 442-261-05 PARCEL B: PARCEL 2 AS SHOWN ON EXHIBIT'B' OF NEWPORT BEACH LOT LINE ADJUSTMENT NO. 95-3 3-64 RECORDED OCTOBER 31, 1995 AS INSTRUMENT NO. 19950483821 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA. EXCEPTING THEREFROM ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM, AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE LAND, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR, AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES, WITHOUT, HOWEVER, THE RIGHT TO DRILL, MINE, STORE, EXPLORE AND OPERATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND, AS RESERVED BY THE IRVINE COMPANY, A MICHIGAN CORPORATION IN A DEED RECORDED NOVEMBER 22, 1995 AS INSTRUMENT NO. 19950519960 OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM ANY AND ALL WATER, WATER RIGHTS OR INTERESTS THEREIN APPURTENANT OR RELATING TO THE LAND OR OWNED OR USED BY THE IRVINE COMPANY IN CONNECTION WITH OR WITH RESPECT TO THE LAND (NO MATTER HOW ACQUIRED BY THE IRVINE COMPANY), WHETHER SUCH WATER RIGHTS SHALL BE RIPARIAN, OVERLYING, APPROPRIATIVE, LITTORAL, PERCOLATING, PRESCRIPTIVE, ADJUDICATED, STATUTORY OR CONTRACTUAL, TOGETHER WITH THE RIGHT AND POWER TO EXPLORE, DRILL, REDRILL, 3-65 REMOVE AND STORE THE SAME FROM OR IN THE LAND OR TO DIVERT OR OTHERWISE UTILIZE SUCH WATER, RIGHTS OR INTERESTS ON ANY OTHER PROPERTY OWNED OR LEASED BY THE IRVINE COMPANY; BUT WITHOUT, HOWEVER, ANY RIGHT TO ENTER UPON THE SURFACE OF THE LAND IN THE EXERCISE OF SUCH RIGHTS, AS RESERVED BY THE IRVINE COMPANY, A MICHIGAN CORPORATION IN A DEED RECORDED NOVEMBER 22, 1995 AS INSTRUMENT NO. 19950519960 OF OFFICIAL RECORDS. APN: 442-261-17 PARCEL B 1: AN APPURTENANT NON-EXCLUSIVE JOINT ACCESS EASEMENT FOR ACCESS, INGRESS AND EGRESS OVER THAT PORTION OF PARCEL 1 AS SHOWN ON EXHIBIT "B" OF NEWPORT BEACH LOT LINE ADJUSTMENT NO. 95-3 RECORDED OCTOBER 31, 1995 AS INSTRUMENT NO. 19950483821 OF OFFICIAL RECORDS, AS MORE FULLY DESCRIBED IN THE DECLARATION OF EASEMENTS RECORDED OCTOBER 31, 1995 AS INSTRUMENT NO. 19950484848 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY SOUTHEASTERLY CORNER OF SAID PARCEL 1; THENCE NORTHERLY ALONG THE EASTERLY PARCEL LINE OF SAID PARCEL 1 NORTH 070 03'0 1 " WEST 55.00 FEET; THENCE SOUTH 82° 56'59" WEST 65.00 FEET, THENCE SOUTH 07° 03'0 1 EAST 55.00 FEET TO A POINT ON THE MOST SOUTHERLY LINE OF SAID PARCEL 1, SAID POINT BEING ALSO ON THE MOST NORTHERLY RIGHT OF WAY LINE OF SAN CLEMENTE DRIVE; THENCE EASTERLY ALONG SAID SOUTHERLY LINE AND SAID RIGHT OF WAY LINE NORTH 820 56'59" EAST 65.00 FEET TO THE POINT OF BEGINNING. 3-66 EXHIBIT B SITE MAP 3-67 �° -.- °- rfopfl un l i' jr a IwII1721 �❑ 400 or MWINITLOM r- ruen7.ITLi�Li�� �. .� .,. r !•L _ usu Mips ° ovf000f MEWIT u K C, mu-Iluo MMUTLM --- - - BLDG. FOOTRPRINTt — ' � •� :-�. _ --- .rorer.rw � Y✓1M 7M111T �'-___.-- Em ISIAQ ;, - I 11 f17LHT1AT. - ' -� I......r I_.db I � q;lT t I ` fb '. T 71 ---------------- �/ a 1 �I7 f w"•flaroa I 71 I I I I + + + jE \\ t 1 _ + IR°RItiY Ii1G 01 SITE PLAN PLANNING HI<S �I� fMOt w711 � fNO11Yff o�oneWMe�Le N°t�«fl11 O Z Z FLU t' H J W 1 0 m Ul UJ H a to �rn3 a Lu Z Yl22i ...n ooaena ENTITLEMENT NES�U?M TAL 3 SITE PLAN A2.O 3-68 EXHIBIT C VESTED DEVELOPMENT IMPACT FEES Impact Fee Estimate: ■ Fair Share Fees $895 per dwelling unit (elderly residential) x 90 DU =580,550 Credit applied for existing nonresidential floor area ■ San Joaquin Transportation Corridor Fees -Zone B $2,595/DU x 0.5 x 99DU = $128,452.50 (in accordance with interpretation 87- 1, fees for congregate care are charged at the multi -family rate times one half of the total number of dwelling units) No credit applied for existing floor area since property is currently tax exempt 3-69