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HomeMy WebLinkAboutC-3432 - Annexation and Development Agreement re: Newport Coast - also refer to C-3382CONTRACT NO. C-3432 AMENDMENT NEVER ENTERED INTO RECORDING REQUESTED AND WHEN RECORDED RETURN TO: City Attorney's Office City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92658 C -3tJ3Z_ P r-1 LA Recorded in Official Records, County of Orange Gary Granville, Clerk- Recorder 111111111111111111111111111111111111111111111 NO FEE 20010800494 01:02pm 11108101 115 15 Al2 N07 47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Space above this line for Recorder's use only. EXEMPT RECORDING REQUEST PER GOVERNMENT CODE 6103 � ANNEXATION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH Um THE IRVINE COMPANY WI, IRVINE COMMUNITY DEVELOPMENT COMPANY CONCERNING THE NEWPORT COAST AND ADJACENT PROPERTIES Page 1 of 23 ANNEXATION AND DEVELOPMENT AGREEMENT This Annexation and Development Agreement (hereinafter "Agreement') is entered into effective as of August 23, 2001, (hereinafter the "Effective Date ") by and among the CITY OF NEWPORT BEACH (hereinafter "CITY "), and THE IRVINE COMPANY and IRVINE COMMUNITY DEVELOPMENT COMPANY (hereinafter collectively "OWNER "). RECITALS A. OWNER collectively owns a substantial portion of the real property ( "Property ") described on Exhibit "A" and depicted on Exhibit "B," consisting of approximately 7799 acres. B. The Property is currently in the unincorporated area of the County of Orange ( "County "). OWNER has obtained development approvals from the County and the California Coastal Commission for the majority of the Property from the County and has commenced subdivision and development of the Property under the jurisdiction of the County. C. The development approvals for the Property have been granted after a lengthy planning process that involved the careful review of numerous environmental documents (Planning and Environmental History is attached as Exhibit C). The development approvals include: 1. The County of Orange Newport Coast Local Coastal Program and Master Coastal Development Permit for that portion of the Property in the Coastal Zone. 2. A Development Agreement with the County (County Agreement). 3. The Newport Ridge Planned Community Plan. 4. Subdivision Maps. D. The Property is also part of the Natural Communities Conservation Plan (NCCP) — a complex agreement that requires OWNER to dedicate portions of the Property upon completion of certain phases of development. OWNER is also required to dedicate large portions of the Property pursuant to the development approvals. Page 2 of 23 0 0 E. OWNER was required, by the development approvals, to make costly infrastructure improvements far in excess of those necessary to mitigate the impacts, or serve the needs, of the development. OWNER was required to make, and has made, these extraordinary improvements prior to development of the Property. F. OWNER has acquired a fully vested right to develop the Property in accordance with the development approvals because of the extraordinary expenditures for public and private improvements made in reliance on the development approvals, the dedications made in reliance on the development approvals and the County Development Agreement. G. CITY and OWNER intend for this Agreement to fully conform to the development approvals and to fully facilitate full implementation of the Project, as conditioned by the County and Coastal Commission. To the maximum extent permitted by law, this Agreement is intended to be the functional equivalent of, or a supplement to, the County Development Agreement in light of the CITY's intention to allow County to retain all municipal land use authority over the Property until such time as the discrete portions of the Project are complete. H. City is desirous of annexing the Property but recognizes that the development approvals for the Property involve complex and interrelated planning documents. CITY does not have sufficient staff to timely process the permits . required for implementation of the Project in compliance with all the development approvals. Moreover, the development approvals and land use plan involve the dedication of valuable habitat and open space within and outside of the boundaries of the Property and City does not have the personnel and expertise to ensure that dedications occur as planned. I. CITY and OWNER have discussed the process and terms and conditions of annexing the Property to CITY, and each has determined that it is in their respective best interests to pursue that annexation pursuant to the terms of this Agreement and the development approvals. In particular CITY desires assurances that OWNER will support eventual annexation of all of the Property to CITY, in order to: (a) Facilitate the timely and orderly integration of the Property into the CITY consistent with the CITY's sphere of influence; (b) Facilitate planning and provision of municipal services to the Property without any adverse fiscal impact on the CITY or the ultimate owners of the property; and (c) Ensure consistency with and implement the CITY's General Plan. At the same time, OWNER desires to obtain assurances from CITY that, Page 3 of 23 i subsequent to annexation: (a) OWNER will be able to develop the Property to the full extent permitted by the development approvals granted by the County and the Coastal Commission subject to conditions of approval imposed by the Coastal Commission and the County as well as consistency with the City's General Plan; (b) Development will be processed by the County in accordance with a uniform set of land use and building rules, regulations and requirements, as established by the development approvals given by the County for the Property prior to its annexation; and (c) Development of the Property will be subject only to costs, fees, processing requirements, conditions or exactions that would have been imposed had the Property not been annexed to CITY. J. In addition to the authority at common law for annexation agreements, Government Code Sections 65864 et seq. ( "Development Agreement Law "), and Chapter 15.45 of the Newport Beach Municipal Code authorize CITY to enter into binding development agreements with persons having a legal or equitable interest in real property. This Agreement is consistent with the public policy that supports development agreements in that it strengthens the public planning process, facilitates implementation of comprehensive planning, provides significant public benefits, and reduces the economic costs of development. K. The City Council has found that this Agreement is in the best public interests of the CITY and its residents, that adopting this Agreement constitutes a present exercise of its police power, and that this Agreement is consistent with the City's General Plan and the Newport Beach Municipal Code and Charter. L. This Agreement is not intended to, and shall not be construed, to impair the rights and obligations of OWNER, or other involved parties under and pursuant to the Newport Coast Local Coastal Program, Second Amendment, and the Litigation Settlement Agreement entered into June 27, 1997, by and among OWNER, the Friends of the Irvine Coast, Laguna Greenbelt, Inc., and Stop Polluting Our Newport. Page 4 of 23 0 0 COVENANTS NOW, THEREFORE, the Parties agree as follows: 1. DEFINITIONS AND EXHIBITS. 1.1 Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter capitalized, or all letters capitalized, when used in the Agreement. The defined terms include the following: 1.1.1 "Agreement' means this Annexation and Development Agreement. 1. 1.2 "Coastal Zone Area" means that portion of the Property that is subject to the provisions of the California Coastal Act, Public Resources Code section 30000 et seq. 1.1.3 "C1TY" means the City of Newport Beach, a California charter city 1.1.4 "County' means the County of Orange, a political subdivision of the State of California. 1.1.5 "Development' whether or not capitalized means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping and park facilities and improvements. For purposes of this Agreement, however, "Development" does not include any remodeling, reconstruction, or other building or grading activity by any person subsequent-to the termination of this Agreement as provided in and pursuant to Section 2.3.3 below. 1.1.6 "Development Approvals" means all permits, licenses, consents, rights and privileges, and other actions subject to approval or issuance by County or CITY in connection with Development of the Property, including but not limited to: (a) General plans and general plan amendments adopted by the County or the CITY; (b) Specific plans and specific plan amendments; (c) Zoning and rezoning adopted by the County or the CITY; (d) Tentative and final subdivision and parcel maps; Page 5 of 23 i ! (e) Variances, conditional use permits, master plans, public use permits and plot plans; and (f) Grading and building permits. 1.1.7 "Development Plan" means the plan for Development of the Property, including the planning and zoning standards, regulations, and criteria for the Development of the Property that are contained in and consistent with the Development Approvals. The components of the Development Plan are more fully described in Exhibit "D." 1.1.8 "Effective Date" means the date this Agreement is approved by the CITY and effective pursuant to the CITY Charter as shown in the first paragraph. 1.1.9 "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies governing Development and use of land applicable to the Property pursuant to this Agreement, including, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing: (a) The conduct of businesses, professions, and occupations; (b) Taxes and assessments except as provided in Section 4.9; (c) The control and abatement of nuisances; (d) The granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; and (e) The exercise of the power of eminent domain 1.1.10 "OWNER" means individually and collectively The Irvine Company and Irvine Community Development Company, and when appropriate in context, their respective successors in interest to all or any part of the Property. 1.1.11 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security - device, a lender and their Page 6 of 23 0 0 successors and assigns. 1.1.12 "Project' means the Development of the Property consistent with the Development Plan. 1.1.13 "Property' means the real property described in Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.14 "Subsequent Development Approvals" means all Development Approvals subsequent to the Effective Date in connection with Development of the Property. 1.1.15 "Subsequent Land Use Regulations" means any Land Use Regulations adopted and effective after the Effective Date of this Agreement, other than the Development Plan. 1.1.16 "Term" shall mean the period of time from the Effective Date until the termination of this Agreement as provided in subsection 10.1, or earlier termination as provided in Section 7. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" Legal Description of the Property. Exhibit "B" Map showing Property and its location. Exhibit "C" Planning and Environmental History. Exhibit "D" List of County Development Approvals. Exhibit "E" Mitigation Measures. Exhibit "F" Affordable Housing Implementation Plan. 2. GENERAL PROVISIONS. 2.1 Binding Effect of Agreement. This Agreement shall be binding on the CITY from and following the Effective Date. However, CITY shall have no right or duty with respect to the Property until annexation of the Property to CITY and CITY has fully complied with the conditions to OWNER'S support for annexation. These conditions include the execution of a cooperative agreement that allows the County to retain all municipal land use jurisdiction and all responsibility for Page 7 of 23 0 0 processing Development Approvals. 2.2 Assignment by OWNER. 2.2.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no transfer violates the Subdivision Map Act, Government Code Section 66410, et seq.), and in so doing to assign, at any time during the term of this Agreement and to any person, partnership, joint venture, firm or corporation, its rights and obligations under this Agreement as the same may relate to the portion of the Property being transferred. 2.2.2 Release of Transferring Owner. Upon the sale, transfer or assignment of all or a portion of the Property, the transferring OWNER shall be released of all obligations under this Agreement that relate to the portion of the Property being transferred; provided that the obligations under Sections 4 and 5 of this Agreement that relate to the portion of the Property being transferred are assumed by and enforceable against the transferee. 2.2.3 Termination of Agreement With Respect to Individual Residential Lots On Sale to Public and Completion of Construction. Notwithstanding any other provisions of this Agreement, the obligations of OWNER pursuant to this Agreement shall terminate with respect to any residential lot and such residential lot shall be released and no longer be subject to this Agreement upon satisfaction of both of the following conditions: (a) The residential lot has. been finally subdivided and individually (and not in "bulk ") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and, (b) A certificate of occupancy has been issued or a final building inspection has been conducted and approved for the primary dwelling unit on the residential lot. 2.2.4 Termination of Agreement nth Respect to Non - Residential Parcels. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any non - residential parcel and the non - residential parcel shall be released and no longer be subject to this Agreement at such time as the parcel has been fully improved and occupied consistent with the allowed intensity of development under the Development Plan. Page 8 of 23 • 3. PRE - ANNEXATION OBLIGATIONS AND COMMITMENTS. 3.1 Annexation of Property. Consistent with and subject to the terms and conditions of this Agreement and specifically this Subsection, CITY may, in one annexation proceeding or several annexation proceedings, annex the Property under such conditions as are imposed by or through the Orange County Local Agency Formation Commission and reasonably acceptable to OWNER. Conditions shall be deemed to be reasonably acceptable to OWNER unless the conditions impair or interfere with OWNER's rights to develop or materially increase the cost of development. OWNER's consent to annexation of all or a portion of the Property is contingent on, and OWNER has reasonably relied on, CITY's commitments in Section 3 and 4 of this Agreement. 3.1.1 Annexation Before Project Completion. OWNER will support CITY's annexation of the Property in its entirety before project completion, provided that the Property may be fully developed to the full extent permitted in the Development Plan and as evidenced by satisfaction of each of the following conditions: (a) The Legislature has approved, and the Governor has signed, legislation that clarifies provisions of the Coastal Act such that annexation of the Property (1) will not alter or affect the validity and enforceability of the Newport Coast Local Coastal Program, Second Amendment, including any amendments applicable to the Property and any related coastal development permits; or (ii) deprive the County of authority to issue coastal development permits pursuant to the terms of this Agreement, any ordinance, joint powers agreement, or other mechanism that confers municipal land use authority to the County after annexation and the Newport Coast Local Coastal Program, Second Amendment or any subsequent amendments that are certified by the California Coastal Commission; (b) The City adopts, and maintains during the term of this Agreement, general plan and zoning designations for the Property that are essentially identical to the Newport Coast Local Coastal Program, general plan and zoning designations adopted by the County and in effect as of the Effective Date. (c) The City authorizes County to retain all municipal land use authority (including the issuance of building and grading permits) to the County pursuant to a cooperative agreement Page 9 of 23 0 0 until such time as development is complete with each Planning Area or until OWNER consents, in writing, to an assumption of municipal land use authority over all or a portion of the Property. 3.1.2 Ultimate Annexation. OWNER will fully support CITY annexation of all or a portion of the Property without satisfying the provisions of Section 3.1.1, provided that all lots and /or parcels within the area to be annexed have received building permits for construction of structure(s) consistent with the Development Approvals, a certificate of occupancy has been issued or a final building inspection has been conducted and annexation will not interfere with, affect, or impair the Development Approvals or OWNER's ability to complete the Project. 3.2 Environmental Impacts and Mitigation. The parties acknowledge that Environmental Impact Reports, environmental documents and functional equivalents ( "Environmental Documents - described in Exhibit C) have been prepared and certified for the Project by County and/or approved by the Coastal Commission. CITY has reviewed and evaluated the Environmental Documents to determine if the impacts of the Project, as represented by this Agreement, the Development Plan, and the CITY approvals, were fully analyzed and evaluated. CITY has also reviewed the Environmental Documents and all relevant existing facts and circumstances to determine if any of the events that require preparation of a subsequent or supplemental environmental document have occurred. CITY has determined based on that review that none of the events described in Section 21166 of the Public Resources Code or Sections 15162 or 15163 of the CEQA Guidelines have occurred. CITY has specifically determined that the detachment of the Property from County and the annexation of the Property to CITY do not require preparation of any subsequent or supplemental environmental impact report for the Project because the reorganization will not increase, decrease, or modify any Development or dedication when compared to the entitlement prior to annexation. CITY has also determined that, subject to incorporation of the mitigation measures identified in Exhibit "E" and except as specifically provided in this Agreement, there is no current or anticipated deficiency in any municipal service or facility (including planned community and neighborhood parks, drainage and flood control facilities, circulation system infrastructure, and public safety services) resulting from Development of the Project. The mitigation measures identified in Exhibit "E" are incorporated by reference into the Development Plan. Page 10 of 23 0 0 3.3 Additional Pre - Annexation Understandings. As a further inducement to OWNER to support the annexation of the Property to CITY, CITY agrees that, as of the date of its approval of this Agreement, all County affordable housing requirements associated with development of the Property have been satisfied. CITY also acknowledges that the OWNER has a vested right to proceed with development pursuant to the County Agreement and that no additional affordable housing requirements shall be imposed on development of the Property pursuant to the CITY's General Plan or otherwise. The Affordable Housing Implementation Plans approved by the County, describing the manner in which affordable housing requirements have been satisfied for development of the Property, are attached to this Agreement as Exhibit "F." Fees payable upon issuance of any development permit (e.g., building permit or occupancy permit) will be paid to the issuer of the permit in accordance with County Codes, fee schedules and requirements for original improvements. Following annexation, fees shall continue to be paid to the issuer in accordance with the codes and requirements for additions, remodels and rebuilds of the jurisdiction with land use authority. CITY agrees that the Project is in full compliance with, and shall not be further subject to, CITY's Traffic Phasing Ordinance following annexation of the Property, CITY having determined through this Agreement that: a. Development of the Property will not cause or make worse any unsatisfactory level of service at any primary intersection as defined in the Traffic Phasing Ordinance; Development of the Property has been considered a committed project which has been incorporated into the CITY's traffic model and Circulation Element traffic projections and all resulting levels of service have been accepted in the Circulation Element; and c. There is an overall reduction in peak hour ICU at impacted intersections having unsatisfactory levels of service taking into account the circulation improvements constructed or facilitated by OWNER pursuant to conditions imposed for development of the Project, including construction of Newport Coast Drive, extension of San Joaquin Hills Road, widening of Pacific Coast Highway, and facilitation of construction of the San Joaquin Hills Transportation Corridor. 3.4 Cooperation. Subject to and in reliance upon the representations and covenants of the City, OWNER will support the annexation of the Property by the CITY. Page 11 of 23 0 0 3.5 Termination of Annexation Proceedings. This Agreement may be terminated by OWNER in the event that CITY fails to comply with the requirements of Paragraph 3.1 above with respect to any proposed annexation of the Property to CITY, or if conditions imposed by or through the Local Agency Formation Commission on the annexation are determined by either party to conflict materially with its rights and obligations under any provision of this Agreement. 4. DEVELOPMENT OF THE PROPERTY AFTER ANNEXATION. Following annexation of the Property by CITY, the following provisions shall apply: 4.1 Rights to Develop. Subject to the terms of this Agreement, following annexation of the Property OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. Pending and subsequent to annexation of the Property to CITY, OWNER shall have the right to seek approvals from County for the Development of the Property, and to develop the Property, consistent with the Development Plan. CITY expressly agrees to take no action that would or could (a) interfere with or impair the Development Approvals; (b) interfere with or impair the OWNER's ability to complete the project; (c) materially increase the cost of completing the project without the OWNER's express written consent; or (d) cause the transfer of any permitting or development review authority pursuant to State or local law, including Government Code section 30519, from the County to the City or any other agency until such time as that portion of the Property affected by the transfer is fully developed pursuant to the Development Plan and provided the transfer would not interfere or impair OWNER's ability to develop any other portion of this Property. 4.2 Effect of Agreement on Land Use Regulations. The rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to Development of the Property, shall be those contained in the Development Plan (and those Land Use Regulations not inconsistent with the Development Plan) and that were in full force and effect on or before June 26, 2001 except as may be otherwise provided by this Agreement,. 4.3 Timing of Development. The Parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors that are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, Page 12 of 23 that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard time limits of any permits issued to OWNER pursuant to the Development Approvals. 4.4 Changes and Amendments. The parties acknowledge that Development of the Project may require Subsequent Development Approvals. OWNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to Development Approvals or the Development Plan to effect such change and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan unless the proposed modifications: (a) Would materially reduce the amount of open space intended for dedication to the public, or (b) Would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (c) Would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (d) Would materially increase the density and /or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. Any change in the Development Approvals or Development Plan made in accordance with the procedures required by the Land Use Regulations and with the written consent of the OWNER shall be conclusively deemed to be consistent with this Agreement, without any further need for any amendment to this Agreement or any of its Exhibits. 4.5 Continuation of Irvine Coast Development Agreement. CITY acknowledges and agrees that the County Agreement entered into between OWNER and County shall continue to govern the rights and obligations of OWNER and County with respect to the Coastal Zone Area preceding annexation, and following annexation to the maximum extent permitted by the cooperative agreement and State law. If for any reason this Agreement is found to be invalid Page 13 of 23 0 0 or unenforceable or OWNER's ability to proceed with the Development Plan is impaired or delayed for any reason, then the Coastal Zone Area shall be and remain subject to the terms and protections of the County Agreement. 4.6 Monitoring of Project. City shall, subsequent to annexation of all or a portion of the Property, have the right, pursuant to a standard right of entry permit issued by OWNER, to enter the Property for the limited purpose of ensuring that development of the Property proceeds in substantial compliance with the Development Approvals and all conditions to those approvals that are material to the issue of water quality and aesthetics. OWNER shall designate a Project Manager to provide CITY with access to all grading and building plans and specifications on or before the date they are submitted to the County. CITY shall conduct all monitoring activities in a manner that does not unduly burden OWNER's rights to develop the Property in compliance with the Development Approvals. Any report prepared pursuant to monitoring shall be lodged with the City Manager and CITY shall provide OWNER with the opportunity to review and comment on the report prior to submittal to the City Manager. The monitoring authorized by this Subsection is not intended, and shall not be construed, to create any formal procedure, right or process on the part of the CITY to review or modify the Development of the Property. City shall make available to any person, upon request, any report or document lodged with the City Manager that is prepared by any professional retained by the CITY to conduct the monitoring authorized by this Section. 5. FINANCING OF PUBLIC IMPROVEMENTS AFTER ANNEXATION. 5.1 Formation of Financing Districts. If so requested by OWNER, CITY will cooperate in the formation or modification of any special assessment district, community facilities district or alternate financing mechanism ("CFD") to pay for the construction, acquisition, and /or maintenance and operation of public and /or quasi - public infrastructure, lighting, landscape, or any other public facilities required as part of the Development Approvals. CITY may, pursuant to the cooperative agreement, allow the County to retain the authority to administer, form or modify any new or existing assessment district. However, CITY shall have no obligation to authorize or to cause any such CFD to issue debt or sell bonds prior to the completion of the annexation of the Property to CITY. In the event that such a CFD is formed and sells bonds to pay for the construction or acquisition of public or quasi - public facilities which were provided, in whole or in part, by OWNER, OWNER may be reimbursed from such bonds to the extent that OWNER has spent funds or dedicated land for the establishment of such facilities and creation of the CFD. While it is acknowledged that this Agreement cannot require CITY or the City Council to form any such CFD or to issue and sell bonds, CITY represents that it can do so and agrees that it shall not refuse OWNER's request to form such a CFD and to issue and sell bonds following completion of annexation of the Property to CITY, except for good and reasonable cause. In no Page 14 of 23 event shall CITY have any obligation or duty to refinance, repay, reduce the amount of, or assume any financial relationship to, any bonds or other debt issued by any CFD prior to annexation, but City may assume such obligation pursuant to agreement. 5.2 OWNER's Right to Construct Facilities. Subject to CITY or County review and approval of plans and specifications, as appropriate, the OWNER may elect, and reserves the right, to construct, or cause the construction of, any public or quasi - public facility for which the CITY intends to collect a fee, and to dedicate the completed facility to the CITY, in lieu of payment of the fee. 6. REVIEW FOR COMPLIANCE FOLLOWING ANNEXATION 6.1 Periodic Review. Following annexation of all or any portion of the Property, the City Council shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the good faith compliance by OWNER with the terms of the Agreement. As part of that review, OWNER shall submit an annual monitoring review statement describing its actions in compliance with this Agreement, in a form acceptable to the City Manager, within 30 days after written notice from the City Manager requesting that statement. The statement shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council. 6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time at CITY's sole cost. OWNER shall cooperate with the CITY in the conduct of such special reviews. 6.3 Procedure. Each party shall have, at any periodic or special review, a reasonable opportunity to assert matters which it believes have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on such matters. If either Party concludes, on the basis of any review, that the other Party has not complied in good faith with the terms of the Agreement, then such Party may issue a written "Notice of Non - Compliance" specifying the grounds and all facts demonstrating such non - compliance. The Party receiving a Notice of Non - Compliance shall have thirty (30) days to respond in writing to the Notice. If the response to the Notice of Non - Compliance has not been received in the offices of the party alleging the default within the prescribed time period, the Notice of Non - Compliance shall be conclusively presumed to be valid. If a Notice of Non - Compliance is contested, the Parties shall have up to sixty (60) days to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event that the Parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the sixty (60) day period, the Party Page 15 of 23 0 0 alleging the non - compliance may pursue the remedies provided in Section 7. 6.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance ( "Certificate ") to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and CITY Council that (1) this Agreement remains in effect and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. Additionally, OWNER may at any time request from the CITY a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Property, or any lot or parcel within the Property. 7. DEFAULT AND REMEDIES. 7.1 Specific Performance Available. The parties acknowledge that money damages and remedies at law generally are inadequate and specific performance is a particularly appropriate remedy for the enforcement of this Agreement and should be available to OWNER and CITY because due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER and /or CITY may be foreclosed from other choices it may have had to utilize or condition the Property or portions hereof. OWNER and CITY have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, such that it would be extremely difficult to determine the sum of money which would adequately compensate OWNER and /or CITY for such efforts. Except as provided in Section 7.2 below, neither OWNER nor CITY shall be entitled to any money damages, including attorney fees, from the other party by reason of any default under this Agreement. 7.2 Restitution of Improper Development Fees. In the event any Development fees or taxes are imposed on Development of the Property other than those authorized pursuant to this Agreement, OWNER shall be entitled to recover from CITY restitution of all such improperly assessed fees or taxes, together with interest thereon at the maximum allowable non - usurious rate from the date such sums were paid to CITY to the date of restitution. Page 16 of 23 0 0 7.3 Termination of Agreement. 7.3.1 Termination of Agreement for Default of OWNER. CITY in its discretion may terminate this Agreement as to any non - annexed portions of the Property for any failure of OWNER to perform any material duty or obligation of OWNER hereunder or to comply in good faith with the terms of this Agreement related to its annexation (hereinafter referred to as "default'); provided, however, CITY may terminate this Agreement pursuant to this Section only after following the procedure set forth in Section 6.3 and thereafter providing written notice to OWNER of the default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.2 Termination of Agreement. for Default of CITY. OWNER in its discretion may terminate this Agreement by written notice to CITY after the default by CITY in the performance of a material term of this Agreement and only after following the procedure set forth in Section 6.3 and thereafter providing written notice by OWNER thereof to CITY and, where the default can be cured, the failure of CITY to cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.3 Rights and Duties Following Termination. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to (i) any obligations to have been performed prior to said termination, (ii) any default in the performance of the provisions of this Agreement which has occurred prior to said termination, or (iii) obligations that have vested through the annexation of the Property, or any annexed portion thereof. 7.4 OWNER's Right To Terminate Upon Specified Events. Notwithstanding any other provisions of this Agreement to the contrary, OWNER retains the right to terminate this Agreement (but not the provisions of Section 3) upon thirty (30) days written notice to CITY in the event that OWNER reasonably determines that continued Development of the Project consistent with the Development Plan has become economically infeasible due to changed market conditions, increased Development costs, burdens imposed as conditions to future discretionary approvals of the Project consistent with this Agreement, or Page 17 of 23 r� l� similar factors. 8. THIRD PARTY LITIGATION. CITY shall promptly notify OWNER of any claim, action or proceeding filed and served against CITY to challenge, set aside, void, annul, limit or restrict the approval and continued implementation and enforcement of this Agreement. CITY and OWNER agree to cooperate in the defense of such action(s). 9. MORTGAGEE PROTECTION. The parties agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. Subject to compliance with applicable laws, CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER's obligations under this Agreement. (c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part Page 18 of 23 thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; except that (i) to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and (ii) in the event any Mortgagee seeks to develop or use any portion of the Property acquired by such Mortgagee by foreclosure, deed of trust, or deed in lieu of foreclosure, such Mortgagee shall strictly comply with all of the terms, conditions and requirements of this Agreement and the Development Plan applicable to the Property or such part thereof so acquired by the Mortgagee. 10. MISCELLANEOUS PROVISIONS. 10.1 Term of Agreement. Following completion of the annexation of the Property, or any portion thereof, to the CITY within the preceding time periods, this Agreement shall continue in full force and effect with respect to such annexed land for a period of fifteen (15) years from the effective date of that annexation. 10.2 Recordation of Agreement. This Agreement shall be recorded with the County Recorder by the City Clerk upon annexation of the Property to CITY within the period required by Section 65868.5 of the Government Code. Similarly, amendments approved by the parties, and any cancellation, shall also be recorded. 10.3 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 10.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, then this Agreement shall terminate in its entirety, unless the parties otherwise agree in writing, which agreement shall not be unreasonably withheld. Page 19 of 23 • 0 10.5 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party or in favor of CITY shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 10.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 10.7 Singular and Plural. As used herein, the singular of any word includes the plural. 10.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 10.9 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 10.10 Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement; provided, however, that the fee owners of any non - residential parcels in the annexation area may elect to be covered by this Agreement. 10.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the party's employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party's control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years. Page 20 of 23 0 9 10.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 10.13 Counterparts. This Agreement maybe executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 10.14 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 10.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the Development of the Project is a private Development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the Development of private property and the owner of such property. 10.16 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions. of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. Subject to Section 3 above, OWNER will cooperate with the CITY in the processing of the annexation of the Project through the Local Agency Formation Commission including advocating the application of the existing AB 8 Master Property Tax Transfer Agreement. OWNER acknowledges the importance of maintaining the fiscal benefits of the Project assuming that the current method of allocating sales tax revenues (i.e., point of sale) is utilized. OWNER will consult with the CITY regarding legislative proposals to adjust this procedure with the goal of supporting CITY efforts to maintain the fiscal benefits of the Project through the legislative process. Page 21 of 23 0 0 10.17 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. 10.18 Amendments in Writing /Cooperation. This Agreement maybe amended only by written consent of both parties specifically approving the amendment and in accordance with the Government Code provisions for the amendment of Development Agreements. The parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement, and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters. 10.19 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he/they have the authority to execute this Agreement on behalf of his/their corporation, partnership or business entity and warrants and represents that he /they has /have the authority to bind OWNER to the performance of its obligations hereunder. 10.20 Notice. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows: All notices, demands, requests or approvals to CITY shall be addressed to CITY at: City of Newport Beach City Manager's Office 3300 Newport Boulevard PO Box 1768 Newport Beach, California 92658 -8915 All notices, demands, requests or approvals to OWNER shall be addressed to OWNER at: Vice President of Entitlements The Irvine Company 550 Newport Center Drive Newport Beach, California 92660 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above. Page 22 of 23 CITY: CITY OF NEWPORT BEACH By -- TOD RIDGEW Mayor Pro em ATTEST: By,, 1 U B-� ° 0 . / V f,,1t X L, LaVonne Harkless, City Clerk APPROV D AS TO FORM: By obert Burnham, City Attorney OWNER: THE IRVINE CO PANY By Title Joseph D. Davis, Executive Vice President By Title Tim Paone, Vice President Entitlement OWNER: IRVINE COMMUNITY DEVELOPMENT COMPANY By Title D. Davis, President and CEO �W� --,.r� Title Daniel C. Hedigan, 4sistan\ Secretary Page 23 of 23 0 CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California !J I County of ss. lJ On • V before me Date personally appeared\ �c iit� cer (e.g., "J a Doe, Noary Pubti personally known to me ❑ proved to me on the basis of satisfactory evidence 2i .2 M +� to be the perso s) whose namE is/ rr CAW itt7� subscribed to the within instr ent and no ON _ acknowledged to me that hels hey xecuted �npetJwl�Y the sam in his /he hei author MrGsrfn ltift•�= capacity ie and that y his /her h signature s) n the instrument the perso (s the entity upon behalf of which the person ss acted, executed the instrument. ESS my hand and fficial seal. Place Notary Seal Above Sigfoat& M No ry Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: AMJ -6r,a a ^ a Document Date: O ' 0 Number of Pages: 3 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: • Individual • Corporate Officer— Title(s): ■ r Partner — ❑ Limited ❑ General Attorney in Fact Trustee • Guardian or Conservator • Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER 01999 Na1iw Ndary Abaoclaton •8350 Do We Ave., P.O. Box 2M2 • ChatlwoM, CA 91313�242 • w nallomi mtaryorg P". N9, 5907 RemEer. Cell Td6Frea 1.6 76.6827 \,i- 0 0 State of California) )8S. County of Orange ) On November 8, 2001 before me, W. S. Bettini , Notary Public, personally appeared Joseph D. Davis and Daniel C. Hedigan , personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. my hand and official seal. �r'A� • • State of California) ) SS. County of Orange ) On November 8, 2001 before me, W. S. Bettini . Notary Public, personally appeared Joseph D. Davis and Tim Paone , personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WUNESS my hand and official seal. NotcryPubk-ft-Ma *9 s.Rj ormw CDMv r /� EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH BLOCKS: 5151, 5152, 5251 5252, 5253, 5351 5352 MODULES: VARIOUS BEING THOSE PORTIONS OF BLOCKS 91, 95 -98, 128 -134, 161 -164 OF IRVINE'S SUBDIVISION AS SHOWN ON A MAP THEREOF FILED IN BOOK 1, PAGE 88 OF MISCELLANEOUS RECORD MAPS AND PARCEL 2 AND A PORTION OF PARCEL 1 PER CORPORATION GRANT DEED BOOK 13439, PAGE 94 -132, RECORDED DECEMBER 19, 1979, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT AN ANGLE POINT IN THE EXISTING.CITY OF NEWPORT BEACH BOUNDARY AS ESTABLISHED BY REORGANIZATION NO. R097 -35, "BONITA CANYON. ANNEXATION TO THE CITY OF NEWPORT BEACH AND DETACHMENT OF, THE -SAME TERRITORY FROM THE CITY OF IRVINE", SAID ANGLE POINT BEING THE SOUTHEASTERLY TEFMINUS OF THAT CERTAIN COURSE DESCRIBED AS "SOUTH 11058'31" EAST 11.29 FEET" IN SAID REORGANIZATION NO. R097 -35, SAID POINT ALSO BEING DISTANT NORTH '26242'33" EAST 3071.87 FEET FROM ORANGE COUNTY SU3VEYOR,S HORIZONTAL CONTROL.STATION GPS NO. 6247, HAVING A COORDINATE V__LUE (U.S. SURVEY FOOT) OF NORTH 2173287.386 AND EAST 6074018.521, BASED UPON THE CALIFORNIA COORDINATE SYSTEM (CCS83), ZONE VI. 1983 NAD (1991.35 EPOCH O.C.S. GPS ADJUSTMENT) AS SAID GPS POINT IS SHOWN ON TRACT MAP NO. 15945, RECORDED IN BOOK 805, PAGES 18 -25 INCLUSIVE', OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, BEING COITION ^O " H_RBOR VIEWS ,:7 -,:7 - PHASE 3" ANNEXATION TO THE CITY OF NEWPORT BEACH; THENCE CONTINUING ALONG THE EXISTING CI ^_Y BOUNDARY OF THE CI ^1Y OF NEWPORT BEACH PER "HARBOR VIEW HILLS -PHASE 3" ANNEXATION, THE "r__FBOR VIEW HILLS SECTOR 4" ANNEXATION, THE "HARBOR RIDGE ANNEXATION NO. 89 ", THE "HARBOR RIDGE ANNEXATION NO. 82, THE "HARBOR VIEW HILLS -PHASE 3" ANNEXATION, THE "HARBOR VIEW HILLS -PHASE 4" ANNEXATION, THE " ANNEXATION NO. 57 (CENTERVIEW ANNEXATION) ", THE "HARBOR VIEW" ANNEXATION, ANNEXATION 'NO. 8, CITY BOUNDARY 1928 (COURT CASE NO. 23686) INCORPORATED SEPTEMBER 1, 1906; THE "CORONA HIGHLANDS" ANNEXATION, THE "SEAWARD 17" ANNEXATION, THE "CAMEO HIGHLANDS" ANNEXATION, THE "ANNEXATION NO. 84 ", THE "CAMEO HIGHLANDS" ANNEXATION, THE "ANNEXATION NO. 64 ", THE "CAMEO CLIFFS" ANNEXATION" THE "SHORE CLIFFS -. CAMEO SHORES TIDELANDS ANNEXATION" THROUGH THEIR VARIOUS COURSES IN A GENERAL SOUTHEASTERLY, SOUTHWESTERLY, SOUTHEASTERLY, SOUTHERLY, WESTERLY, SOUTHERLY, EASTERLY, SOUTHERLY, WESTERLY, SOUTHERLY, LEGV1311- LGL1(R).0 (06/19/01) SE PAGE 1 • EXHIBIT 'A' NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH SOUTHEASTERLY, SOUTHERLY, SOUTHWESTERLY, WESTERLY, NORTHWESTERLY, SOUTHWESTERLY, WESTERLY, SOUTHWESTERLY, SOUTHERLY, NORTHWESTERLY, SOUTHWESTERLY; WESTERLY, SOUTHEASTERLY, NORTHEASTERLY, SOUTHERLY, SOUTHWESTERLY, NORTHWESTERLY AND SOUTHWESTERLY DIRECTION TO AN ANGLE POINT ON THE BOUNDARY OF THE CITY OF NEWPORT BEACH AS ESTABLISHED BY "SHORE CLIFFS - CAMEO SHORE TIDELANDS ANNEXATION "; THENCE LEAVING SAID CITY BOUNDARY IN A DIRECT LINE NORTHEASTERLY 3 MILES MORE OR LESS TO A POINT ON THE MEAN HIGH TIDE OF THE PACIFIC OCEAN; SAID POINT BEARING SOUTH 37 039'50" WEST 600 FEET MORE OR LESS FROM THE NORTHWEST CORNER OF PARCEL 3 OF "PARK PROPERTY" AS DESCRIBED IN CORPORATION GRANT DEED TO THE STATE OF CALIFORNIA ON FILE DECEMBER 19, 1979, IN BOOK 13439, PAGE 94 -132 IN THE OFFICE OF THE COUNTY RECORDER, SAID POINT BEING THE SOUTHWESTERLY PROLONGATION OF THAT .CERTAIN .COURSE DESCRIBED AS "NORTH 37 039'50" EAST 104.98 FEET" IN SAID DEED IN THE WESTERLY BOUNDARY OF PARCEL 3 OF SAID "PARK PROPERTY "; THENCE ALONG SAID SOUTHWESTERLY PROLONGATION 'NORTH 37 039'50" EAST 600 FEET MORE OR LESS TO THE SOUTHWESTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED` AS "NORTH 37 039'50" EAST 104.98 FEET" IN THE NORTHWESTERLY BOUNDARY OF SAID PARCEL.3, SAID TERMINUS ALSO BEING ON THE NORTHEASTERLY RIGHT OF WAY LINE OF THE PACIFIC COAST HIGHWAY BEING A HIGHWAY OF VARIABLE WIDTH, AND FURTHER DESCRIBED IN BOOK 487, PAGE 11 OF DEEDS I14 THE OFFICE OF THE COUNTY RECORDER; I - THENCE LEAVING SAID NORTHEASTERLY RIGHT OF ?:AY LINE ALONG THE NORTHWESTERLY BOUNDARY LINE OF PARCEL 3 OF SAID "PARK PROPERTY ".; THENCE .NORTH 37 039'50" EAST 104.98 FEET TO THE BEGINNING OF A TANGENT 950.00 FOOT RADIUS CURVE CONCAVE TO THE SOUTHEAST; THENCE ALONG THE ARC OF SAID CURVE; NORTHEASTERLY, 219.65 FEET THROUGH A CENTRAL ANGLE OF 13 014'50 "; THENCE NORTH 50 054'40" EAST 1645.45 FEET TO THE BEGINNING OF A TANGENT 1300.00 FOOT RADIUS CURVE CONCAVE TO THE WEST; THENCE ALONG THE ARC OF SAID CURVE NORTHEASTERLY, 1590.29 FEET THROUGH A CENTRAL ANGLE OF 70 005'24 "; LEC \1311 -L LlM DOC (06 115I011 sc PAGE 2 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH THENCE NORTH 19010'44" WEST 387.88 FEET; THENCE SOUTH 84042'47" EAST 288.52 FEET; THENCE NORTH 58039'02" EAST 1018.72 FEET; THENCE NORTH 74008'04" EAST 197.52 FEET; THENCE NORTH 60027'40" EAST 137.93 FEET; THENCE SOUTH 68054'28" EAST 150.05 FEET; THENCE NORTH. 66048'05" EAST 167.55 FEET; THENCE NORTH 04038'08" EAST 74.24 FEET; THENCE SOUTH 87003'52" EAST 84.20 FEET; THENCE NORTH 23021'06" WEST 232.34 FEET; THENCE NORTH 51008'19" EAST .3.10.79 FEET; THENCE NORTH 31050'33" EAST 223.66 FEET; THENCE NORTH 11055'46" WEST 290.27 FEET; THENCE NORTH 30002'00" EAST 147.85 FEET; THENCE NORTH 35052'56" WEST 232.03 FEET; THENCE NORTH 10.031'40" EAST 229.87 FEET; THENCE NORTH 46028'08" EAST 55.17 FEET; THENCE NORTH 67053'26" EAST 138.16 FEET; THENCE NORTH 38031'49" EAST 138.06 FEET; THENCE NORTH 24035'24" EAST 129.77 FEET; THENCE NORTH 03052'43" EAST 118.27 FEET; LEG \1331- LGL11R1.0 106119/01) se PAGE 3 • EXHIBIT `A' s NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH THENCE NORTH 19050'41" EAST 141.40 FEET; THENCE NORTH 49001'42" EAST 150.97 FEET; THENCE NORTH 73052'21" EAST 172.80 FEET; THENCE NORTH 60049'09" EAST 176.38 FEET; THENCE NORTH 11048'47" EAST 312.62 FEET; THENCE NORTH 03021'59" WEST 272.47 FEET TO THE SOUTHEASTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED AS "SOUTH 28 °44'47" EAST 328.52 FEET" IN THE EXISTING WESTERLY BOUNDARY OF "PARK PROPERTY" AS DESCRIBED IN CORPORATION GRANT DEED TO THE STATE OF CALIFORNIA RECORDED NOVEMBER 17, 1981 ON FILE IN BOOK 14292, PAGE 953 -965 IN THE OFFICE OF THE COUNTY RECORDER; THENCE THENCE THENCE THENCE THENCE THENCE THENCE ALONG NORTH NORTH NORTH NORTH NORTH NORTH SAID WEST 11021'29" 08021'57" 29047'31" 80008'45" 30018'40" 79056'51" ERLY ; EAST WEST EAST EAST EAST EAST 3OUNDARY NORTH 28044'47" WEST 328.52 FEET; 467.15 FEET; 68.73 FEET; 301.90 FEET.; 383.72 FEET; 301.17 FEET; 446.86 FEET; THENCE NORTH 49 046'51" EAST 390.27 FEET; THENCE NORTH 75036'00" EAST 152.80 FEET; THENCE NORTH 88017'55" EAST 404.18 FEET; THENCE NORTH 02027'46" EAST 186.17 FEET; THENCE NORTH 25 047'27" EAST 330.97 FEET; THENCE NORTH 89015'21" EAST 308.03 FEET; UCNlU1- aecliai.e (06/19101) 9e PAGE 4 EXHIBIT `A' 0 NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH THENCE NORTH 11034'59" EAST 2549.93 FEET; THENCE NORTH 11006'16" WEST 1038.44 FEET; THENCE NORTH 10047'04" EAST 235.15 FEET; THENCE NORTH THENCE NORTH THENCE NORTH THENCE NORTH THENCE NORTH THENCE NORTH THENCE NORTH THENCE NORTH THENCE NORTH THENCE SOUTH ^HENCE NORTH THENCE SOUTH THENCE SOUTH 35006'10" 16038'20" 18054'59" 16025'40" 29010'03" 14024'00" 52016'30" 80017'00" 37027'15" 33000'20" 70038'36" 02059'35" 22006'00" EAST EAST WEST EAST EAST EAST EAST EAST EAST EAST EAST WEST EAST 551.26 FEET; 181.60 FEET; 188.16 FEET; 424.32 FEET; 196.98 FEET; 152.80 FEET; 67.01 FEET; 148.12 FEET; 274.61 FEET; 789.39 FEET; 784.31 FEET; 306.42 FEET; 356.17 FEET; THENCE SOUTH 35018'58" EAST 2345.66 FEET TO WESTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED AS "SOUTH 44 031'21" EAST 678.84 'FEET" IN THE EXISTING NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132; THENCE LEAVING THE BOUNDARY OF SAID BOOK 14292, PAGE 953 -965 AND ALONG THE NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132; THENCE SOUTH 44031'21" EAST 678.84 FEET; THENCE SOUTH 71026'28" EAST 584.39 FEET; L=%1331- LGLI(RI.D 106/19/011 se PAGE 5 EXHIBIT 'A' NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH THENCE SOUTH 85006'26" EAST 515.88 FEET; THENCE SOUTH 74032'30" EAST 420.20 FEET; THENCE SOUTH 66047'38" EAST 548.66 FEET TO A POINT ON THE SOUTHEASTERLY LINE OF BLOCK 161 OF SAID IRVINE'S SUBDIVISION; THENCE LEAVING THE NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132 AND ALONG THE SOUTHEASTERLY LINE OF SAID BLOCK 161 NORTH 40033'59 EAST 188.12 FEET TO A POINT ON THAT CERTAIN COURSE BEARING "NORTH 34 056'51" WEST 457.86 FEET" IN THE EXISTING BOUNDARY OF "THE PROPERTY" DESCRIBED IN GRANT DEED TO THE CITY OF LAGUNA BEACH RECORDED JUNE 27, 1991 AS DOCUMENT NO. 91- 330557 IN THE OFFICE OF THE COUNTY RECORDER; THENCE ALONG SAID COURSE AND THE SOUTHWESTERLY BOUNDARY OF "THE PROPERTY" OF SAID GRANT DEED NORTH 34055'56" WEST 53.88 FEET; THENCE NORTH THENCE NORTH THENCE SOUTH THENCE NORTH THENCE NORTH THENCE NORTH 68021'18" 60007'54" 83028'56" 66044'01" 39006'41" 54032'38" WEST WEST WEST WEST WEST WEST 560.20 FEET; 785.39 FEET; 326.82 FEET; 658.40 FEET; 465.65 FEET; 526.14 FEET; THENCE NORTH 34026'23" WEST 410.92 FEET; THENCE NORTH 12044'59" EAST 337.73 FEET; THENCE NORTH 24022'24" WEST 331.27 FEET; THENCE NORTH 38033'34" WEST 489.32 FEET; THENCE NORTH 22014'13" WEST 315.36 FEET; THENCE NORTH 41041'22" WEST 538.97 FEET; THENCE NORTH 46030'42" WEST 848.19 FEET; LEG \1]J1 -LGL11R1.➢0C 106/19/011 S8 PAGE 6 0 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH THENCE NORTH 71006'53" WEST 244.14 FEET; THENCE SOUTH 89008104" WEST 252.22 FEET TO THE SOUTHWESTERLY PROLONGATION OF THE COURSE DESCRIBED AS "NORTH 40 000'00" EAST 660.00 FEET" IN ANNEXATION NO. 1 (FRASIER ANNEXATION) TO THE CITY OF IRVINE; THENCE ALONG SAID PROLONGATION NORTH 40 033'37" EAST 221.97 FEET TO A POINT IN THE SOUTHEASTERLY BOUNDARY OF THE CITY OF IRVINE AS ESTABLISHED BY "REORGANIZATION NO. R097 -04" DISTANT THEREON SOUTH 64016'17" EAST 1340.14 FEET FROM THE NORTHWESTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED AS "NORTH 64016'17" WEST 4468.85 FEET" IN THE CENTERLINE OF TR -73 (SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR) AS DESCRIBED IN PARCEL 1 OF SAID REORGANIZATION NO. R097 -04; THENCE ALONG SAID EXISTING CITY BOUNDARY AND THE CENTERLINE OF TR -73 PER SAID "REORGANIZATION NO. R097 -04" THROUGH THEIR VARIOUS COURSES IN A GENERAL NORTHWESTERLY DIRECTION TO AN ANGLE POINT IN THE EXISTING CITY OF NEWPORT BEACH BOUNDARY AS ESTABLISHED. BY "REORGANIZATION NO. R097 -35 ", SAID POINT BEING THE SOUTHEASTERLY TERMINUS OF TE -kT COURSE DESCRIBED AS "NORTH 690 24'23" WEST 2092.48 FEET"; THENCE ALONG SAID EXISTING CITY BOUNDARY PER SAID "REORGANIZATION NO. R097 -35" THROUGH ITS VARIOUS COURSES IN A ZNERAT NORTHWESTERLY, SOUTHERLY, SOUTHEASTERLY AND NORTHWESTERLY D= RECTIC`d TO THE TRUE POINT OF BEGINNING. CONTAINS 7,799 ACRES, MORE OR LESS. ATTACHED HERETO AND MADE A PART HEREOF, IS A MAP DESIGNATED AS EXHIBIT ..B„ TO OBTAIN THE GRID DISTANCE AT GPS PT. N0, 6247, MULTIPLY THE GROUND DISTANCE BY 0.99996664. THIS LEGAL DESCRIPTION WAS PREPARED BY ME, OR UNDER; MY SUPERVISION FROM RECORD I_iFORIAIpN ONLY. NO FIELD SURVEY HAS BEEN CONDUCT�O VERIFY ANY REX S. PLUMMER, PLS 6641 DATE EXPIRATION DATE 12/31/03 Na 6691 =\1131- DGL11E1.DOC (061191011 6E PAGE 7 0 i EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA01 -06 TO THE CITY OF NEWPORT BEACH THIS PROPOSAL DOES MEET THE APPROVAL OF THE ORANGE COUNTY SURVEYOR'S OFFICE. DATED TIMS 72---1 DAY OF —Z-Ou- c_ , 2001. 0 RW .AW. DATE 09/30/01 LM \1131- WLl(E1.00C (061191011 SE PAGE 8 BLOCKS 5151, 5152, 5251. 5152 5253. 5151. 5J52 ANNEXATION NO. 1 MODULES, VARIOUS �(FRASIER ANNEXATION) 4 BONITA /I CANYON ROAD I CITY of I RVIN i I � NEW FORD / ,.,;. ROAD / CE SAN UOAQUIN HILLS TRtNSPORTATION Y I CORRIDOR WPOR - el, - - - - ---- - - -�.. CITY Of I is LH NBE WAYCOAST w 0 ou INDEX MAP Nor m SCALE ®2 INDICATE5 SHEET NUMBER ualuvLUmv LEGEND SHEET I OF 5 FXISRNC CITY NEWPORT BEACH BOUNDARY PER REORGANIZ IZA RON N0. 97 -J5. EXISTING CITY OF NEWPORT BEACH BOUNDARY PER VARIOUS ANNEXA BONS. " FXISVMC CITY OF TRVME 8CUNOARY PER REORGANIZATION N0. 97 -04. ° EXISTING CRYSTAL COVE STATE PARK BOUNDARY. . BOUNDARY OF DEED GRANTED TO THE CITY OF LAGUNA BEACH RECORDED ✓UNE 27, 1991 AS DOC. N0. 91- JJ0557 G I ® INDICATES SHEET NUMBER \ P.O.D. INDICATES POINT OF BEGINNING I D fNDfCATE5 HORIZONTAL CONTROL STATION AS NOTED NOTE THIS ADTJ5IMENT CONTAINS 7,799 ACRES MORE OR LESS I PREPARED BY ME OR UNDER MY DIRECT SUPERWS1CN FROM RF f A77ON ONLY NO FIELD SURVEY HAS BEEN C C 7FY ANY RECORD INFORMATION. 40 LRff CRYSTAL L I REX S PLUMMER LS 6641 •"�,.,'` S PC OS'fr \rr� STATE I REGISTRATION EXPIRES 12131103 •. o \p PARK C I E%➢I rj, s NO. 664 I F THIS PROPOSAL DOES MEET THE APPROVAL OF THE f CAI. +FU ORANGE COUNTr�Y R�URVEYORS OFFICE OA 157"1••DAY 2001 4- �Gfv l O p }Q 1 N CANAS, COUNTY SURVEYOR, L.S. 4408 LICENSE EXPIRES 9130101 k EXHIBIT 118" Project Design. Cons- Wtants (NEWPORT COAST' ANNEXA77ON io�iR. SIrce1,=3vt9RT o. Son R1TM3o.NCa sna CAOI -os TO THE CITY OF NEWPORT REACH) 315296'6171 sax z34 0319 EXHIBIT EXHIBIT C - PLANNING AND ENVIRONMENTAL HISTORY Date Document Action /Approval Relationship to Proposed Project. 1976.79 Irvine Coastal Community Approved by the Established a maximum residential build out for Irvine Coast of General Plan Amendment County; denied by the 12,000 DUs. Acted as County General Plan and proposed as first Final EIR No. 134. California Coastal coastal LCP to Coastal Commission. Commission (as LCP document) 1982/ Irvine Coast Local Coastal Approved by the Established as first LCP for Irvine Coast. Maximum residential build 1983 Program 80- 4/Land Use County; certified by out of 2,000 units, provided other land uses, development policies, Element Amendment 80-4; the California Coastal and regulations. Determined Coastal Act Consistency. For PA 3 Supplemental EIR No. 237,• Commission (similar area to proposed project area) established maximum of 85 LCP Implementation Action SF DUs. PA14: 250 overnight accommodations and 25,000 square; Plan. feet of related commercial uses. 1987/ First Amendment to the Approved by the Established a maximum residential build out of 2,600 units, land 1988 Irvine Coast Local Coastal County, and certified uses, intensity of use, development policies, and regulations. Program Land Use Plan by the California Determined Coastal Act consistency. Similar land use designations and Implementing Coastal Commission and build out within proposed project area as was approved in the Ordinance for the Irvine 1982 LCP. Coast Planning. Unit. - 1988/ FEIR No. 486, Irvine Coast Certified by the Serves as an implementing mechanism far the Irvine Coast LCP. 1996 Planned Community County of Orange Addressed impacts based on build out of project pursuant to the Development Agreement. 1988 LCP and Development Agreement. Addendum for Development Agreement First Amendment. 1988 FEIR No. 485, Irvine Coast Certified by the Addressed environmental impact of backbone infrastructure, Planned Community County of Orange roadways, and subdivision of 2,813 acres, evaluating 23 of 44 Master Coastal Master CDP land use planning areas. EIR analysis included PAs Development Permit MCDP 3A, 3B and 14; addressed construction of Sand Canyon Avenue 88 -11P and Vesting A" through PAs 3A and 3B; partial widening of PCH along The Irvine Tentative Tract Map No. Company property; construction of backbone' drainage system as 13337. recommended in the RMDRMP; construction and/or relocation of master utilities and construction of backbone domestic water storage and distribution system and backbone wastewater collection system. FEIR 485 did not address specific development proposals for residential, tourist commercial, or golf course development. Subsequent EIRS, in conjunction with subdivision "6" maps and project Coastal Development Permits, have addressed area specific proposals. 1989 Final EIR No. 511, Irvine Certified by the Evaluated construction level impacts for 11 individual projects Coast Planned Community, County of Orange (residential and golf course uses) in addition to the realignment of Phase 1. Lower Loop Road (now named Pelican Hill Road). Included PAs 3A, 36, 14. Proposed development in PAs 3A,.3B, and 14, as addressed in FEIR 511, was low density (estate/oustom lot) residential units. FEIR 511 addressed the First Amendment to the MCDP and the Second revised Vesting "A" Tentative Tract map 13337. As part of the First Amendment to the MCDP, planning area boundaries, including those of 3A, 38, and 14, were adjusted from boundaries established in the original MCDP and LCP documents; and development densities in PAs 3A and 3B were changed from 0- 2 du /ac as stated in the certified LCP, to 0.3 du /ac in the MCDP First Amendment. 1989 Refined Master Drainage Approved by the Recommended backbone drainage improvement system for the and Runoff Management County of Orange NCPC. Drainage and sedimentation control measures are included Plan as part of each subsequent development project within the . MCDP /NCPC. The RMDRMP addressed facilities to mitigate increased peak runoff volumes and rates due to planned development. The RMDRMP is the master improvement plan from which subsequent site specific storm runoff management plans for NCPC development areas are derived. Each development project must engage a runoff management system that will maintain post - project flow rates to within ten percent of the pre - developed condition, in accordance with the certified LCP. EXHIBIT _ C Date Document n /Approval RelationstW Proposed Project 1991 Final EIR 517 Approved Certified San Joaquin Hills PC Addendum 1, Addendum SJHPC Initial Study 1, Addendum PA21 No. PA9501191PA950120, Addendum IP98-070 1994 Addendum to FEIR No. Certified by the Site Development Permit to allow mass grading in PA 3A and for a 511 -PA 940113 Site County of Orange borrow site (in PA 36) in an area previously analyzed for Development development. Permit/Wishbone Hill Grading 1995 Mitigated Negative Approved by the Negative Declaration addressed potential environmental effects.of Declaration No. /P- 95 -10Q County of Orange deleting segments of Sand Canyon Avenue and San Joaquin Hills Transportation Element Road from the County Master Plan of Arterial Highways (MPAH). Amendment 95 -1 Most relevant to the proposed project, NC Phase IV -2, the approval of the MPAH amendments removed the master planned segment of San Canyon Avenue from its existing terminus just north of PCH to the San Joaquin Hills Transportation Corridor ( SJHTC), and deleted the then planned interchange of San Canyon Avenue at the SJHTC. The removal of this planned segment was the result of changes in future land uses in the City of Irvine (PA 22) that would result in more open spacelless development and in unincorporated Orange County property /Newport Coast/Newport Ridge areas. Therefore, San Canyon Avenue north of PCH has been changed in name (application. in review at County) to Crystal Cove Drive, and will serve as a community'access/entry street rather than a County arterial. 1995 Ord. #3931 & Reso #95- Approved by County PA22, Newport Ridge PC 180. of Orange 1996 Second Amendment to the Approved by the The LCP Second Amendment further modified the LCP by adjusting Newport Coast Local County of Orange, planning area boundaries and open space boundaries adjacent to Coastal Program Land Use and certified by the Crystal Cove State Park to improve habitat connectivity; the Second Plan and Implementing California Coastal Amendment increased the maximum number of dwelling units Ordinance for the Newport Commission allowed in undeveloped planning areas to match the low end of Coast Planning Unit density ranges established by the land use categories while maintaining the maximum allowed 2,600 total dwelling units in the NCPC; technical revisions were made to the LCP including name changes to roads and planned communities. 1996. Natural Community Certified by the Addressed NCCP /HCP for Central/Coastal Orange County. Plan Conservation Plan and County of Orange, includes 37,000 acre reserve system, authorizes incidental take of Habitat Conservation Plan California Department coastal sage scrub, and provides regulatory coverage for 39 Joint Programmatic FEIR of. Fish and Game, individual species. The proposed project site is not within the NCCP No. 553IFEIS 96-26 and U.S. Fish and Reserve since the site was master planned for development. Wildlife Service Mitigation measures prescribed in FEIR 511 and FEIR 553/FEIS 96- 26 (NCCP) pertain to project impacts to coastal sage scrub and are applied in this EIR. 1996 Addendum to Final EIR No. Adopted by the Addressed proposed amendments to the Central and Coastal 553 for the County of County of Orange NCCP /HCP to reflect relevant provisions of the Second. Amendment Orange Central and to the Newport Coast Local Coastal Program (LCP). The Coastal Sub region Natural amendments to the NCCP /HCP included a) revisions to the Coastal Community Conservation Subarea Reserve to reflect new development and open space Plan and Habitat configurations provided for in the LCP Second Amendment; b) Conservation Plan corresponding elimination of certain Special Linkage Areas, and c) provisions for infrastructure to be located in areas proposed to be added to the Coastal Subarea Reserve. The amendments to the Reserve System boundaries represent an overall increase in total acreage of the Coastal Subarea Reserve, and significant improvements in wildlife connectivity within the Reserve System: 1997 Addendum PA 970046 to Certified by the Addressed a modified development plan for one -half of Planning EIR No. 511 County of Orange Area 3A; known as Development Area (DA) 3A -1. The proposed project site is not within DA 3A-1. IBIT L Date Document n /Approval RelaflonsFW Proposed Project 1997- FEIR 568, Phase 111-2 of Certified by the Evaluated constriction level impacts for PA 3A -2, 3B, 12B and 14, 1998 the Newport Coast Planned County of Orange including: shifting of development area boundaries; extending Community, Newport Coast development into lower Los Trancos Canyon; providing for Planning Areas 3A -2, 3B, neighborhood commercial uses near PCH, and increasing flexibility 14, MCDP Sixth for tourist commercial uses in PA14: The project establishes Amendment and Coastal infrastructure and mass pads to facilitate future residential Development Permit, TTMs development and commercial projects in PA 3A -2, 3B, recreation In 15444 and 15446. PA 12B and tourist/visitor uses in PA14. TTMs 15444 and 15446 subdivide the project for financing and conveyance purposes. 1998 FEIR 569, Phases IV -3 and Certified by County of Evaluated construction level impacts for PAs 4A, 4B, 5, 6, 12C, 12E 1V-4 of the Newport Coast Orange and 12G. Uses proposed include residential and recreation. Planned Community, Included: MCDP Seventh Amendment - Program analysis of 335 Newport Coast Planning residential units in Phase IV -3, 24 gross acre private recreation Areas 4A, 4B, 5, 6, 12C, facility in 12E, 300 residential units in Phase IV -4, shifting of 12E, and 12G and MCDP planning area boundaries; shifting of development from PA1213; Seventh Amendment; TTM increase the maximum number of residential units allowed in 15447 underdeveloped planning areas, adjustmenUexpansion at the types of recreation; subdivision of PA into development components, deletion of appealable areas; relocation of 66KU transmission of an emergency access /utility road in county open space. TTM 15447 - mass grading and infrastructure, including construction of major circulation improvements, drainage structures and utility improvements; State Parks Public Works Plan - amendments to allow for improvement and maintenance within Crystal Cove State Park. 199.8 Addendum covering: Land Approved by County SJHPC PA 22 Re -named Newport Ridge PC Use Element LU98 -1 of Orange Community Profile Amendment CPA98 -1; Zone Change 3C -98 -1 (Reso 98-87) ; Site Development Permit 98 -0117; Local Parks Implementation Plan PM 92 -01; TTM 15333; PA21 P.C. Reso 95 -20, TTM 15717, TTM 15134, 15135, VTTM 15585; PA22 TTM'15934, 16037, PA 99-015 for Site Development Permit.00- 0029 SDP; TTM 15935 1999 Addendum No. PA980117 Approved by County San Joaquin Hills PC; PA 21 of Orange 2000- Coastal Commission Approved by Seventh Amendment for NCPC. Proposed project includes mass 2001 Appeal No. A5- /RC -99- California Coastal grading, back lane infrastructure for future residential and 301A Commission recreational development in PA 4A, 4B, 5, (northeaster 2C), 6, 12C, offer to dedicate open space in 12E and 12G and approval of TTM 15447. Also includes 1.6 acres of Needlegrass restoration and riparian mitigation totaling approximately 3 acres to mitigate .0529 acres of wetland impact and approximately seven miles of "non- wetland" waters of the U.S. • DRAFP August 29, 2001 Page 16 of 16 Exhibit D List of County Development Approvals The components of the Development Plan. as shown by various Development Approvals include: A. Newport Coast Local Coastal Program 2n0 Amendment and all further amendments adopted before the City assumes permit issuing authority for the property as provided for within this Agreement. The Newport Coast Local Coastal Program, 2nd Amendment was approved by the California Coastal Commission on October 10, 1996; certified by the County of Orange Board of Supervisors on December 3, 1996 (Resolution No. 96 -861 and Ordinance No. 096- 3974); and Certified by the California Coastal Commission on January 21, 1997; B. Newport Ridge Planned Community Program: Approved by the County of Orange Board of Supervisors on March 17, 1998 (Resolution Nos. 98087 and 98 -88; Ordinance No. 98 -3); C. Newport Coast Master Coastal Development Permit 7th Amendment (PA 970152); Approved by the County of Orange Planning Commission on July 21, 1998; D. First Amendment to the Irvine Coast Development Agreement: Recorded April 2, 1997 (No. 19970149745); and E. Related secondary implementing approvals, permits, and actions pursuant to and consistent with the foregoing (e.g. subdivision maps, individual coastal development permits, grading plan approvals and permits, etcetera). F. An Annexation and Development Agreement between the City of Newport Beach, The Irvine Company, and Irvine Community Development Company; approved by the Newport Beach City Council on July 24, 2001. 0 EXHIBIT E • MITIGATION MEASURES fhe term Mitigation Measures includes, but is not limited to, the mitigation measures approved in conjunction with the certification or approval of the following environmental and planning documents. This Exhibit is for information only and does not constitute any modification or amendment or any mitigation measure or condition adopted with reference to the Project. The environmental documents listed in this Exhibit are on file in the Planning Department of the City of Newport Beach, Irvine Coastal Community General Plan Amendment, Final EIR No. 134; 2. Irvine Coast Local Coastal Program 80 -4 1Land Use Element Amendment 80 -4; Supplemental EIR No. 237, LCP Implementation Action Plan; 3. FOR No. 486, Irvine Coast Planned Community Development Agreement. Addendum for Development Agreement First Amendment 4. FE1R No. 485, Irvine Coast Planned Community Master Coastal Development Permit MCDP 88 -11P and Vesting "A" Tentative Tract Map No. 13337 5. Final EIR No. 511, Irvine Coast Planned Community, Phase 1 6. Refined Master Drainage and Runoff Management Plan 7. Addendum to FE1R No, 511 -PA 940113 Site Development PermitAMshbone Hill Grading 8, Mitigated Negative Declaration No. 1P -95 -100, Transportation Element Amendment 95-1 9. Natural Community Conservation Plan and Habitat Conservation Plan Joint Programmatic FE1R No. 553IFEIS 96 -26 10. Second Amendment to the Newport Coast Local Coastal Program Land Use Plan and Implementing Ordinance for the Newport Coast Planning Unit 11. Addendum to Final EIR No. 553 for the County of Orange Central and Coastal Subregion Natural Community Conservation Plan and Habitat Conservation Plan 12. Addendum PA 970046 to EIR No. 511 0 6 EXHIBIT F AFFORDABLE HOUSING IMPLEMENTATION PLANS The term Affordable Housing Implementation Plans refers to two plans prepared for the Environmental Management Agency of the County of Orange. The plan for that portion of the Property within the Coastal Zone - identified as the "Affordable Housing Implementation Plan - Irvine Coast Planned Community" -was prepared by Affordable Housing Consultants and was approved by the County on October 29, 1991. The plan for the Newport Ridge - identified as the "Affordable Housing Implementation Plan — The San Joaquin Hills Planned Community" - was prepared by FORMA and was approved by the County on November 2, 1995. These Affordable Housing Implementation Plans are available for public inspection in the Planning Department of the City of Newport Beach during normal business hours. ORDINANCE 2001- 13 , AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE IRVINE COMPANY [DEVELOPMENT AGREEMENT NO. 14] The City Council of the City of Newport Beach DOES HEREBY ORDAIN as follows: SECTION 1. The City Council finds and declares that: ' a. The State Legislature and the City Council have determined that the lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer, and discourage investment in and commitment to the comprehensive planning which would make maximum efficient utilization of resources at the least economic cost to the public; and b. Assurance that an applicant may proceed with a project in accordance with existing policies, rules and regulations, and subject to conditions of approval, will strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs of development; and C. California government Code Section 65864 et seq. authorizes cities to enter into development agreements with any person having a legal or equitable interest in property for the development of the property; and d. Chapter 15.45 of the Newport Beach Municipal code provides requirements and procedures for the amendment of development agreements; and e. The Development Agreement has been prepared in compliance with state law and the Newport Beach Municipal Code; and f. On September 21, 2000, the Planning Commission of the City of Newport Beach held a duly - noticed public hearing regarding the proposed Development Agreement and; and g. The Planning Commission found that the Development Agreement is in conformance with the Newport Beach General Plan, as proposed by accompanying General Plan Amendment No. 99 -3 (C), and forwarded the Development Agreement N to the City Council with a recommendation of adoption, subject to certain ` amendments; and h. On October 10, 2000 and June 26, 2001, the City Council of the City of Newport Beach held duly - noticed public hearings regarding the proposed Development Agreement, and testimony was presented to and considered by the City Council; and i. Pursuant to the California Environmental Quality Act (CEQA), the City has completed an Initial Study, determined that the impacts of the subject Development Agreement have been fully evaluated in previously certified Environmental Impact Reports, that the conditions to the preparation of a Subsequent or Supplemental EIR do not exist, and that a Negative Declaration is appropriate; and j. The Development Agreement will preserve the benefits of years of land use planning and open space - habitat preservation efforts, while establishing ultimate City control of the area. SECTION 2. Development Agreement No. 14, attached hereto as Exhibit A, is hereby adopted. SECTION 3. The Mayor shall sign and the City Council shall attest to the passage of this Ordinance. This Ordinance shall be published once in the official newspaper of the City, and the same shall become effective thirty (30) days after the date of its adoption. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on July 10, 2001, and adopted on July 24, 2001 by the following vote, to wit: 0 0 AYES, COUNCIL MEMBERS Heffernan, O'Neil , Glover, Bromberg, Proctor, Mayor Adams NOES, COUNCIL MEMBERS None ABSENT COUNCIL MEMBERS None dsuuw . %. MAYOR ATTEST: 02. 41M, CITY CLERK 0 0 STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance No. 2001 -13 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 24th day of July 2001, and that the same was so passed and adopted by the following vote, to wit: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 25th day of July 2001. (Seal) STATE OF CALIFORNIA City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2001 -13 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a daily newspaper of general circulation on the following date, to wit: July 28, 2001. In witness whereof, I have hereunto subscribed my name this day of 2001. City Clerk City of Newport Beach, California E E ANNEXATION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH .L. THE IRVINE COMPANY /_1; I b IRVINE COMMUNITY DEVELOPMENT COMPANY CONCERNING THE NEWPORT COAST AND ADJACENT PROPERTIES 0 0 ANNEXATION AND DEVELOPMENT AGREEMENT This Annexation and Development Agreement (hereinafter "Agreement') is entered into effective as of July _ 2001, (hereinafter the "Effective Date ") by and among the CITY OF NEWPORT BEACH (hereinafter "CITY "), and THE IRVINE COMPANY and IRVINE COMMUNITY DEVELOPMENT COMPANY (hereinafter collectively "OWNER "). RECITALS A. OWNER collectively owns a substantial portion of the real property ( "Property ") described on Exhibit "A" and depicted on Exhibit "B," consisting of approximately 5,615 acres. B. The Property is currently in the unincorporated area of the County of Orange ( "County "). OWNER has obtained development approvals from the County and the California Coastal Commission for the majority of the Property from the County and has commenced subdivision and development. of the Property under the jurisdiction of the County. C. The development approvals for the Property have been granted after a lengthy planning process that involved the careful review of numerous environmental documents (Planning and Environmental History is attached as Exhibit C). The development approvals include: The County of Orange Newport Coast Local Coastal Program and Master Coastal Development Permit for that portion of the Property in the Coastal Zone. 2. A Development Agreement with the County (County Development ' Agreement). 3. The Newport Ridge Planned Community Plan. 4. Subdivision Maps. D. The Property is also part of the Natural Communities Conservation Plan (NCCP) — a complex agreement that requires OWNER to dedicate portions of the Property upon completion of certain phases of development. OWNER is also required to dedicate large portions of the Property pursuant to the development approvals. Page 2 of 23 0 0 E. OWNER was required, by the development approvals, to make costly infrastructure improvements far in excess of those necessary to mitigate the impacts, or serve the needs, of the development. OWNER was required to make, and has made, these extraordinary improvements prior to development of the Property. F. OWNER has acquired a fully vested right to develop the Property in accordance with the development approvals because of the extraordinary expenditures for public and private improvements made in reliance on the development approvals, the dedications made in reliance on the development approvals and the County Development Agreement. G. CITY and OWNER intend for this Agreement to fully conform to the development approvals and to fully facilitate full implementation of the Project, as conditioned. To the maximum extent permitted by law, this Agreement is intended to be the functional equivalent of, or supplement, the County Development Agreement in light of the CITY's intention to delegate to the County all municipal land use authority over the Property until such time as the Project is complete. H. City is desirous of annexing the Property but recognizes that the development approvals for the Property involve complex and interrelated planning documents. CITY does not have sufficient staff to timely process the permits required for implementation of the Project in compliance with all the development approvals. Moreover, the development approvals and land use plan involve the dedication of valuable habitat and open space within and outside of the boundaries of the Property and City does not have the personnel and expertise to ensure that dedications occur as planned. I. CITY and OWNER have discussed the process and terms and conditions of annexing the Property to CITY, and each has determined that it is in their respective best interests to pursue that annexation pursuant to the terms of this Agreement and the development approvals. In particular CITY desires assurances that OWNER will support eventual annexation of all of the Property to CITY, in order to: (a) Facilitate the timely and orderly integration of the Property into the CITY consistent with the CITY's sphere of influence; (b) Facilitate planning and provision of municipal services to the Property without any adverse fiscal impact on the CITY or the ultimate owners of the property; and (c) ensure consistency with and implement the CITY's General Plan. At the same time, OWNER desires to obtain assurances from CITY that, subsequent to annexation: . Page 3 of 23 (a) OWNER will still be able to develop the Property to the full extent permitted by the development approvals granted by the County and the Coastal Commission subject to conditions of approval imposed by the Coastal Commission and the County and and consistency with the City's General Plan; (b) Development will be processed by the County in accordance with a uniform set of land use and building rules, regulations and requirements, as established by the development approvals given by the County for the Property prior to its annexation; and (c) Development of the Property will be subject only to costs, fees, processing requirements, conditions or exactions that would have been imposed had the Property not been annexed to CITY. J. In addition to the authority at common law for annexation agreements, Government Code Sections 65864 et seq. ( "Development Agreement Law "), and Chapter 15.45 of the Newport Beach Municipal Code authorize CITY to enter into binding development agreements with persons having a legal or equitable interest in real property. This Agreement is consistent with the public policy that supports development agreements in that it strengthens the public planning process, facilitates implementation of comprehensive planning, provides significant public benefits, and reduces the economic costs.of development. K. The City Council has found that this Agreement is in the best public interest of the CITY and its residents, adopting this Agreement constitutes a present exercise of its police power, and this Agreement is consistent with the City's General Plan and the Newport Beach Municipal Code Chapter. L. This Agreement is not intended to, and shall not be construed, to impair the rights and obligations of OWNER, or other involved parties under and pursuant to the Newport Coast Local Coastal Program, Second Amendment, and the Litigation Settlement Agreement entered into June -27; 1997, by and among OWNER, the Friends of the Irvine Coast, Laguna Greenbelt, Inc., and Stop Polluting Our Newport. Page 4 of 23 NOW, THEREFORE, the Parties agree as follows: DEFINITIONS AND EXHIBITS. 1.1 Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter capitalized, or all letters capitalized, when used in the Agreement. The defined terms include the following: 1.1.1 "Agreement' means this Annexation and Development Agreement. 1. 1.2 "Coastal Zone Area" means that portion of the Property that is subject to the provisions of the California Coastal Act, Public Resources Code section 30000 et seq. 1.1.3 "CITY" means the City of Newport Beach, a California charter city. 1.1.4 "County' means the County of Orange,.a political subdivision of the State of California. 1.1.5 "Development' whether or not capitalized means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation .of landscaping and park facilities and improvements. For purposes of this Agreement, however, "Development" does not include any remodeling, reconstruction, or other building or grading activity by any person subsequent to the termination of this Agreement as provided in and pursuant to Section 2.3.3 below. 1. 1.6 "Development Approvals" means all permits, licenses, consents, rights and privileges, and other actions subject to approval or issuance by County or CITY in connection with Development of the Property, including but not limited to: (a) General plans and general plan amendments adopted by the County or the CITY; (b) Specific plans and specific plan amendments; (c) Zoning and rezoning adopted by the County or the CITY; (d) Tentative and final subdivision and parcel maps; Page 5 of 23 0 0 (e) Variances, conditional use permits, master plans, public use permits and plot plans; and (f) Grading and building permits. 1.1.7 "Development Plan" means the plan for Development of the Property, including without limitation the planning and zoning standards, regulations, and criteria for the Development of the Property, contained in and consistent with the Development Approvals. The components of the Development Plan are more fully described in Exhibit "D." 1.1.8 "Effective Date" means the date this Agreement is approved by the CITY as shown in the first paragraph. 1. 1.9 "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies governing Development and use of land applicable to the Property pursuant to this Agreement, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements,.the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) except as provided in Section 4.9 below, taxes and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property;. and (e) the exercise of the power of eminent domain 1.1.10 "OWNER" means individually and collectively The Irvine Company and Irvine Community Development Company, and where appropriate in context their respective successors in interest to all or any part of the Property. 1.1.11 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security- device, a lender and their successors and assigns. Page 6 of 23 0 0 1.1.12 "Project" means the Development of the Property consistent with the Development Plan. 1.1.13 "Property' means the real property described in Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.14 "Reservation of Authority' means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 4.6 of this Agreement. 1.1.15 "Subsequent Development Approvals" means all Development Approvals subsequent to the Effective Date in connection with Development of the Property. 1.1.16 "Subsequent Land Use Regulations" means any Land Use Regulations adopted and effective after the Effective Date of this Agreement, other than the Development Plan. 1.1.17 "Term" shall mean the period of time from the Effective Date until the termination of this Agreement as provided in subsection 10.1, or earlier termination as provided in Section 7. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" Legal Description of the Property. Exhibit "B" Map showing Property and its location. Exhibit "C" Planning and Environmental History. Exhibit "D" List of County Development Approvals. Exhibit "E" Mitigation Measures. Exhibit "F" Affordable Housing Implementation Plans. 2. GENERAL PROVISIONS. 2.1 Binding Effect of Agreement. This Agreement shall be binding on the CITY from and following the Effective Date. However, CITY shall have no.right.or duty with respect to the Property until annexation of Page 7 of 23 0 0 the Property to CITY and CITY intends, through a joint powers agreement, ordinance or other mechanism, to delegate to the County all municipal land use jurisdiction and all responsibility for processing Development Approvals that the City has, or may have, pursuant to State or local law. 2.2 Assignment by OWNER. 2.2.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no transfer violates the Subdivision Map Act, Government Code Section 66410, et sue.), and in so doing assign its rights and obligations under this Agreement as the same may relate to the portion of the Property being transferred, to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement. 2.2.2 Release of Transferring Owner. Upon the sale, transfer or assignment of all or a portion of the Property, the transferring OWNER shall be released of all obligations under this Agreement that relate to the portion of the Property being transferred; provided that the obligations under Sections 4 and 5 of this Agreement that relate to the portion of the Property being transferred are assumed by and enforceable against the transferee. 2.2.3 Termination of Agreement With Respect to Individual Residential Lots On Sale to Public and Completion of Construction. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any residential lot and such residential lot shall be released and no longer be subject to this Agreement upon satisfaction of both of the following conditions: (a) The residential lot has been finally subdivided and individually (and not in "bulk ") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and, (b) A certificate of occupancy has been issued or a final building inspection has been conducted and approved for the primary dwelling unit on the residential lot. 2.2.4 Termination of Agreement With Respect to Non - Residential Parcels. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any non- residential parcel and the non - residential parcel shall be released and no longer be subject to Page 8 of 23 this Agreement at such time as the parcel has been fully-improved and occupied consistent with the allowed intensity of development under the Development Plan. 3. PRE - ANNEXATION OBLIGATIONS AND COMMITMENTS. 3.1 Annexation of Property. Consistent with and subject to the terms and conditions of this Agreement and specifically this Subsection, CITY may, in one annexation proceeding or several annexation proceedings, annex the Property under such conditions as are imposed by or through the Orange County Local Agency Formation Commission and reasonably acceptable to OWNER. Conditions shall be deemed to be reasonably acceptable to OWNER unless the conditions impair or interfere with OWNER's rights to develop or materially increase the cost of development. OWNER's consent to annexation of all or a portion of the Property is contingent on, and OWNER has reasonably relied on, CITY's commitments in Section 3 and 4 of this Agreement. 3.1.1 Annexation Before Project Completion. OWNER will support CITY's annexation of the Property in its entirety before project completion, provided that the Property may be fully developed to the full extent permitted in the Development Plan and as evidenced by satisfaction of each of the following conditions: (a) The Legislature has approved, and the Governor has signed, legislation that clarifies provisions of the Coastal Act such that annexation of the Property (1) will not after or affect the validity and enforceability of the Newport Coast Local Coastal Program, Second Amendment, including any amendments applicable to the Property and any related coastal development permits; or (ii) deprive the County of authority to issue coastal development permits pursuant to the terms of this Agreement, any ordinance, joint powers agreement, or other mechanism that confers municipal land use authority to the County after annexation and the Newport Coast Local Coastal Program, Second Amendment or any subsequent amendments that are certified by the California Coastal Commission; (b) The City adopts, and maintains during the term of this Agreement, general plan and zoning desginations for the Property that are essentially identical to the general plan and zoning designations adopted by the County and in effect as of the Effective Date. Page 9 of 23 0 0 (c) The City transfers municipal-land use authority (including the issuance of building and grading permits) to the County pursuant to a joint powers or similar agreement and /or ordinance until such time as the Project is complete or until OWNER consents, in writing, to an assumption of municipal land use authority over all or a portion of the Property. 3.1.2 Ultimate Annexation. OWNER willfully support CITY annexation of all or a portion of the Property without satisfying the provisions of Section 3.1.1, provided that all lots and /or parcels to be annexed have received building permits for construction of structure(s) consistent with the Development Approvals, a certificate of occupancy has been issued or a final building inspection has been conducted and annexation will not interfere with, affect, or impair the Development Approvals or OWNER's ability to complete the Project. 3.2 Environmental Impacts and Mitigation. The parties acknowledge: that Environmental Impact Reports, environmental documents and functional equivalents ( "Environmental Documents - described in Exhibit C) have been prepared and certified for the Project by County and /or approved by the Coastal Commission. CITY has reviewed and evaluated the Environmental Documents to determine if the impacts of the Project, as represented by this Agreement, the Development Plan, and the CITY approvals, were fully analyzed and evaluated.. CITY has also reviewed the Environmental Documents and all relevant existing facts and circumstances to determine if any of the events that require preparation of a subsequent or supplemental environmental document have occurred. CITY has determined based on that review that none of the events described in Section 21166 of the Public Resources Code or Sections 15162 or 15163 of the CEQA Guidelines have occurred. CITY has specifically determined that the detachment of the Property from County and the annexation of the Property to CITY do not require preparation of any subsequent or supplemental environmental impact report for the Project because the reorganization will not increase, decrease, or modify any development of dedication when compared to the entitlement prior to annexation. CITY has also determined that, subject to incorporation of the mitigation measures identified in Exhibit "E" and except as specifically provided in this Agreement, there is no current or anticipated deficiency in any municipal service or facility (including without limitation planned community and neighborhood parks, drainage and flood control facilities, circulation system infrastructure, and public safety services) resulting from Development of the Project. The mitigation measures identified in Exhibit "E" are incorporated by reference into the Development Plan. Page 10 of 23 0 3.3 Additional Pre- Annexation Understandings. As a further inducement to OWNER to support the annexation of the Property to CITY, CITY agrees that, as of the date of its approval of this Agreement. CITY acknowledges that all County affordable housing requirements associated with development of the Property have been satisfied. CITY also acknowledges that the OWNER has a vested right to proceed with development pursuant to the County Agreement and that no additional affordable housing requirements shall be imposed on development of the Property pursuant to the CITY's General Plan or otherwise. The Affordable Housing Implementation Plans approved by the County, describing the manner in which affordable housing requirements have been satisfied for development of the Property, are attached to this Agreement as Exhibit "F." Fees payable upon issuance of any development permit (e.g., building permit or occupancy permit) will be paid to the issuer of the permit in accordance with County Codes, fee schedules and requirements for original improvements. Following annexation, fees shall continue to be paid to the issuer in accordance with the codes and requirements for additions, remodels and rebuilds of the jurisdiction with land use authority. CITY agrees that the Project is in full compliance with, and shall not be further subject to, CITY's Traffic Phasing Ordinance following annexation of the Property, CITY having determined through this Agreement that: a. Development of the Property will not cause or make worse any unsatisfactory level of service at any critical intersection as defined in the Traffic Phasing Ordinance; b. Development of the Property has been considered a committed project which has been incorporated into the CITY's traffic model and Circulation Element traffic projections and all resulting levels of service have been accepted in the Circulation Element; and c. There is an overall reduction in peak hour ICU at impacted intersections having unsatisfactory levels of service taking into account the circulation improvements constructed or facilitated by OWNER pursuant to conditions imposed for development of the Project, including construction-of Newport Coast Drive, extension of San Joaquin Hills Road, widening of Pacific Coast Highway, and facilitation of construction of the San Joaquin Hills Transportation Corridor. 3.4 Cooperation. Subject to and in reliance upon the representations and covenants of the CITY herein, OWNER will support the annexation of the Property by the CITY. Page 11 of 23 3.5 Termination of Annexation Proceedings. This Agreement may be terminated by OWNER in the event that CITY fails to comply with the requirements of Paragraph 3.1 above with respect to any proposed annexation of Property to CITY, or if conditions imposed by or through the Local Agency Formation Commission on the annexation are determined by either party to conflict materially with its rights and obligations under any provision of this Agreement. 4. DEVELOPMENT OF THE PROPERTY UPON ANNEXATION AND ADOPTION OF THE DEVELOPMENT PLAN. Following annexation of the Property by CITY, the following provisions shall apply: 4.1 Rights to Develop. Subject to the terms of this Agreement, following annexation of the Property OWNER shall have a vested right to develop the Property in accordance with, and to the extent. of, the Development Plan. Pending annexation to CITY, OWNER shall have the right to seek approvals from County for the Development of the Property, and to develop the Property, consistent with the Development Plan. CITY expressly agrees to take no action that would or could (a) interfere with or impair the Development Approvals; (b) interfere with or impair the OWNER's ability to complete the project; (c) materially increase the cost of completing the project without the OWNER's express written consent; or (d) cause the transfer of any permitting or development review authority pursuant to State or local law, including Government Code section 30519, from the County to the City or any other agency until such time as that portion of the Property affected by the transfer is fully developed pursuant to the Development Plan and provided the transfer would not interfere or impair OWNER's ability to develop any other portion of this Property. 4.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use,cf the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to Development of the Property, shall be those contained in the Development Plan and those Land Use Regulations not inconsistent with the Development Plan and that were in full force and effect as of June 26, 2001. 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. .City of Camarillo (1984)•37 Cal. 3d 465, Page 12 of 23 0 0 that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard durational limits of any permits issued to OWNER pursuant to Development Approvals. 4.4 Changes and Amendments. The parties acknowledge that Development of the Project may require Subsequent Development Approvals. OWNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to Development Approvals or the Development Plan to effect such change and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan unless the proposed modifications: (a) would materiallyreduce the amount of open space intended for dedication to the public, or (b) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (c) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (d) would materially increase the density and /or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. Any change in the Development Approvals or Development,Plan made in accordance with the procedures required by the Land Use Regulations and with the written consent of the OWNER shall be conclusively deemed to be consistent with this Agreement, without any further need for any amendment to this Agreement or any of its Exhibits. 4.5 Continuation of Irvine Coast Development Agreement. CITY acknowledges and agrees that the County Development Agreement entered into between OWNER and County shall continue to govern the rights and obligations of OWNER and County with respect to the Coastal Zone Area preceding annexation, and following annexation to the maximum extent permitted pursuant ..:to the joint powers agreement or similar arrangement. If for any. reason this Page 13 of 23 0 0 Agreement is found to be invalid or unenforceable or OWNER's ability to proceed with the Development Plan is impaired or delayed for any reason, then the Coastal Zone Area shall be and remain subject to the terms and protections of the Irvine Coast Development Agreement. 4.6 Monitoring of Project. City shall, subsequent to annexation of all or a portion of the Property, have the right, pursuant to a standard right of entry permit issued by OWNER, to enter the Property for the limited purpose of ensuring that development of the Property proceeds in substantial compliance with the Development Approvals and all conditions to those approvals that are material to the issue of water quality and aesthetics. OWNER shall designate a Project Manager to provide CITY with access to all grading and building plans and specifications at or before submittal to the County. CITY shall conduct all monitoring activities in a manner that does not unduly burden OWNER's rights to develop the Property in compliance with Development Approvals. Any report prepared pursuant to monitoring shall be lodged with the City Manager and City shall provide OWNER with the opportunity to review and comment on the report prior to submittal to the City Manager. The monitoring authorized by this Subsection is not intended, and shall not be construed, to create any procedure, right or process on the part of the CITY to review or evaluation the development of the Property: City shall make available to any person, upon request, any report or document lodged with the City Manager that is prepared by any professional retained to conduct the monitoring authorized by this Section. 5. FINANCING OF PUBLIC IMPROVEMENTS AFTER ANNEXATION. 5.1 Formation of Financing Districts. If so requested by OWNER, CITY will cooperate in the formation of any special assessment district, community facilities district or alternate financing mechanism ( "CFD ") to pay for the construction, acquisition, and /or maintenance and operation of public and /or quasi - public infrastructure, lighting, landscape, or any other public facilities required as part of the Development Approvals; provided, however, CITY shall have no obligation to authorize or to cause any such CFD to issue debt or sell bonds.prior.3o the completion of the annexation of the Property to CITY., In the event that such a CFD is formed and sells bonds to pay for the construction or acquisition of public or quasi - public facilities which were provided, in whole or in part, by OWNER, OWNER may be reimbursed from such bonds to the extent that OWNER has spent funds or dedicated land for the establishment of such facilities and creation of the CFD. While it is acknowledged that this Agreement cannot require CITY or the City Council to form any such CFD or to issue and sell bonds, CITY represents that it can, and does hereby, agree that it shall not refuse OWNER's request to form such a CFD and to issue and sell bonds following completion of annexation of the Property to CITY, except for good and reasonable cause. In no event shall CITY have any obligation or duty to refinance, repay, reduce the:amount of, or assume any financial relationship to, any bonds or other Page 14 of 23 0 0 debt issued by any CFD prior to annexation. 5.2 OWNER's Right to Construct Facilities. It is understood and agreed that, subject to CITY or County review and approval of plans and specifications, as appropriate, the OWNER may elect, and reserves the right, to construct, or cause the construction of, any public or quasi - public facility for which the CITY intends to collect a fee, and to dedicate the completed facility to the CITY, in lieu of payment of the fee. 6. REVIEW FOR COMPLIANCE FOLLOWING ANNEXATION. 6.1 Periodic Review. Following annexation of all or any portion of the Property, the City Council shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the good faith compliance by OWNER with the terms of the Agreement. As part of that review, OWNER shall submit an annual monitoring review statement describing its actions in compliance with this Agreement, in a form acceptable to the City Manager, within 30 days after written notice from the City Manager requesting that statement. The statement shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council. 6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time at CITY's sole cost. OWNER shall cooperate with the CITY in the conduct of such special reviews. 6.3 Procedure. In connection with any periodic or special review, each party shall have a reasonable opportunity to assert matters which it believes have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on such matters. If on the basis of the parties' review of any terms of the Agreement, either party concludes that the other party has not complied in good faith with the terms of the-Agreement, then such party may issue a written "Notice of Non- Compliance" specifying the grounds therefor and all facts demonstrating such non - compliance. The party receiving a Notice of Non - Compliance shall have thirty (30) days to respond in writing to said Notice. If the response to the Notice of Non - Compliance has not been received in the offices of the party alleging the default within the prescribed time period, the Notice of Non - Compliance shall be conclusively presumed to be valid. If a Notice of Non - Compliance is contested, the parties shall have up to sixty (60) days to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event that the parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the sixty (60) day period, the party alleging the non - compliance may thereupon pursue the remedies provided in Section 7. Page 15 of 23 6.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance ( "Certificate ") to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and CITY Council that (1) this Agreement remains in effect and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. Additionally, OWNER may at any time request from the CITY a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Property, or any lot or parcel within the Property. 7. DEFAULT AND REMEDIES. 7.1 Specific Performance Available. The parties acknowledge that money damages and remedies at law generally are inadequate and specific performance is a particularly appropriate remedy for the enforcement of this Agreement and should be available to OWNER and CITY because due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER and/or CITY. may be foreclosed from other choices it may have had to utilize or condition the Property or portions hereof. OWNER and CITY have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, such that it would be extremely difficult to determine the sum of money which would adequately compensate.. OWNER and /or CITY for such .. . efforts. Except as provided in the Section 7.2 below, neither OWNER nor CITY shall be entitled to any money damages, including attorney fees, from the other party by reason of any default under this Agreement. 7.2 Restitution of Improper Development Fees. In the event any Development fees or taxes are imposed on Development of the Property other than those authorized pursuant to this Agreement, OWNER shall be entitled to recover from CITY restitution of all such improperly assessed fees or taxes, together with interest thereon at the maximum allowable non - usurious rate from the date such sums were paid to CITY to the date of restitution. Page 16 of 23 7.3 Termination of Agreement. 7.3.1 Termination of Agreement for Default of OWNER. CITY in its discretion may terminate this Agreement as to any non - annexed portions of the Property for any failure of OWNER to perform any material duty or obligation of OWNER hereunder or to comply in good faith with the terms of this Agreement related to its annexation (hereinafter referred to as "default'); provided, however, CITY may terminate this Agreement pursuant to this Section only after following the procedure set forth in Section 6.3 and thereafter providing written notice to OWNER of the default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.2 Termination of Agreement for Default of CITY. OWNER in its discretion may terminate this Agreement by written notice to CITY after the default by CITY in the performance of a material term of this Agreement and only after following the procedure set forth in Section 6.3 and thereafter providing written notice by OWNER thereof to CITY and, where the default can be cured, the failure of CITY to cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.3 Rights and Duties Following Termination. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to (i) any obligations to have been performed prior to said termination, (ii) any default in the performance of the provisions of this Agreement which has occurred prior to said - termination, or (iii) obligations that have vested through the annexation of the Property, or any annexed portion thereof. 7.4 OWNER's Right To Terminate Upon Specified Events. Notwithstanding any other provisions of this Agreement to the contrary, OWNER retains the right to terminate this Agreement (but not the provisions of Section 3) upon thirty (30) days written notice to CITY in the event that OWNER reasonably determines that continued Development of the Project consistent with the Development Plan has become economically infeasible due to changed market conditions, increased Development costs, burdens imposed as conditions to future discretionary approvals of the Project consistent with this Agreement, or similar factors. Page 17 of 23 0 0 8. THIRD PARTY LITIGATION. CITY shall promptly notify OWNER of any claim, action or proceeding filed and served against CITY to challenge, set aside, void, annul, limit or restrict the approval and continued implementation and enforcement of this Agreement. CITY and OWNER agree to cooperate in the defense of such action(s). 9. MORTGAGEE PROTECTION. The parties hereto agree that this Agreement shall not prevent or limit OWNER, it any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. Subject to compliance with applicable laws, CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER's..obligations under this Agreement. (c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. Page 18 of 23 (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; except that (i) to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and (ii) in the event any Mortgagee seeks to develop or use any portion of the Property acquired by such Mortgagee by foreclosure, deed of trust, or deed in lieu of foreclosure, such Mortgagee shall strictly comply with all of the terms, conditions and requirements of this Agreement and the Development Plan applicable to the Property or such part thereof so acquired by the Mortgagee. 10. MISCELLANEOUS PROVISIONS. 10.1 Term of Agreement. Following completion of the annexation of the Property, or any portion thereof, to the. CITY within the preceding time periods, this Agreement shall continue in full force and effect with respect to such annexed land for a period of fifteen (15) years from the effective date of that annexation. 10.2 Recordation of Agreement. This Agreement shall be recorded with the County Recorder by the City Clerk upon annexation of the Property to CITY within the period required by Section 65868.5 of the Government Code. Similarly, amendments approved by the parties, and any cancellation, shall also be recorded. 10.3 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary. covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 10.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, then this Agreement shall terminate in its entirety, unless the parties otherwise agree in writing, which agreement shall not be unreasonably withheld. Page 19 of 23 0 0 10.5 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party or in favor of CITY shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 10.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 10.7 Singular and Plural. As used herein, the singular of any word includes the plural. 10.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 10.9 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 10.10 Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement; provided, however, that the fee owners of any non - residential parcels in the annexation area may elect to be covered by this Agreement. 10.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond.the party's control (including the party's employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party's control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years. Page 20 of 23 41 • 10.12 Mutual Covenants. The covenants contained herein ar6mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 10.13 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 10.14 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 10.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the Development of the Project is a private Development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the Development of private property and the owner of such property. 10.16 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. Subject to Section 3 above, OWNER will cooperate with the CITY in the processing of the annexation of the Project through the Local Agency Formation Commission including advocating the application of the existing AB 8 Master Property Tax Transfer Agreement. OWNER acknowledges the importance of maintaining the fiscal benefits of the Project assuming that the current method of allocating sales tax revenues (i.e., point of sale) is utilized. OWNER will consult with the CITY regarding legislative proposals to adjust this procedure with the goal of supporting CITY efforts to maintain the fiscal benefits of the Project through the legislative process. Page 21 of 23 • 1 0 10.17 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. 10.18 Amendments in Writing /Cooperation. This Agreement may be amended only by written consent of both parties specifically approving the amendment and in accordance with the Government Code provisions for the amendment of Development Agreements. The parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement, and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters. 10.19 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that hetthey have the authority to execute this Agreement on behalf of his /their corporation, partnership or business entity and warrants and represents that he /they has/have the authority to bind OWNER to the performance of its obligations hereunder. 10.20 Notice. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows: All notices, demands, requests or approvals to CITY shall be addressed to CITY at: City of Newport Beach City Manager's Office 3300 Newport Boulevard PO Box 1768 Newport Beach, California 92658 -8915 All notices, demands, requests or approvals to OWNER shall be addressed to OWNER at: Vice President of Entitlements The Irvine Company 550 Newport Center Drive Newport Beach, California 92660 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above. Page 22 of 23 6 0 CITY: CITY OF NEWPORT BEACH By GAROLD B. ADAMS, Mayor ATTEST: By LaVonne Harkless, City Clerk APPROVED AS TO FORM: By Robert Burnham, City Attorney (SEAL) OWNER: THE IRVINE COMPANY By Title By Title OWNER: IRVINE COMMUNITY DEVELOPMENT COMPANY By Title By Title Page 23 of 23 C� U'l CITY of NEWPO B EACH 1 3 PLANNING DEPARTMENT Hearin¢ Date: July 10, 2001 3300 NEWPORT BOULEVARD Aeenda Item No.: 3 NEWPORT BEACH, ca+ yw5s Staff Person: Patrick J. Alford (949) 644-3200; FAX (949) 644-3250 BY THEOM64&4}23tt5, JDCITY OFN�IJ?�; ?:r:��`,C I 1n REPORT TO THE MAYOR AND CITY COUNCIL '' LUV� SUBJECT: Newport Coast Annexation and Development SUMMARY: Introduction of an ordinance adopting an annexation and development agreement between the City and the Irvine Company approved by the City Council on June 26, 2001. ACTION: Introduce Ordinance No. 2001 - adopting Development Agreement No. 14 and pass to second reading on July 24, 2001. Backeround On September 21, 2000, the Planning Commission recommended that the City Council approve an annexation and development agreement concerning development of the Newport Coast and adjacent areas. The City Council adopted the Annexation and Development Agreement (DA No. 14) on October 24, 2000. On June 21, 2001, the Planning Commission recommended that the City Council approve an amended Annexation and Development Agreement. The City Council approved the amended Annexation and Development Agreement on June 26, 2001. Analysis The City Council approved the Annexation and Development Agreement (DA No. 14) at a duly noticed pubic hearing, pursuant to Chapter 15.45 of the Municipal Code (Development Agreements). However, Section 65867.5 of the Government Code establishes that development agreements are legislative acts that must be approved by ordinance. Therefore, in order to adopt the ordinance in a manner consistent with State law, the City Council will need to introduce the attached ordinance adopting Development Agreement No. 14 and pass to second reading on July 24, 2001. Submitted by: Prepared by: SHARON Z. WOOD PATRICK J. ALFORD Assistant City Manager Senior Planner Exhibit: Draft ordinanc ' Development Agreement No. 14 attached as Exhibit A. 0 ORDINANCE 2001- 0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE IRVINE COMPANY [DEVELOPMENT AGREEMENT N0.14[ The City Council of the City of Newport Beach DOES HEREBY ORDAIN as follows: SECTION 1. The City Council finds and declares that: a. The State Legislature and the City Council have determined that the lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer, and discourage investment in and commitment to the comprehensive planning which would make maximum efficient utilization of resources at the least economic cost to the public; and b. Assurance that an applicant may proceed with a project in accordance with existing policies, rules and regulations, and subject to conditions of approval, will strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs of development; and C. California government Code Section 65864 et seq. authorizes cities to enter into development agreements with any person having a legal or equitable interest in property for the development of the property; and d. Chapter 15.45 of the Newport Beach Municipal code provides requirements and procedures for the amendment of development agreements; and e. The Development Agreement has been prepared in compliance with state law and the Newport Beach Municipal Code; and f. On September 21, 2000, the Planning Commission of the City of Newport Beach held a duly- noticed public hearing regarding the proposed Development Agreement and; and g. The Planning Commission found that the Development Agreement is in conformance with the Newport Beach General Plan, as proposed by accompanying General Plan Amendment No. 99 -3 (C), and forwarded the Development Agreement a 0 to the City Council with a recommendation of adoption, subject to certain amendments; and h. On October 10, 2000 and June 26, 2001, the City Council of the City of Newport Beach held duly- noticed public hearings regarding the proposed Development Agreement, and testimony was presented to and considered by the City Council; and i. Pursuant to the California Environmental Quality Act (CEQA), the City has completed an Initial Study, determined that the impacts of the subject Development Agreement have been fully evaluated in previously certified Environmental Impact Reports, that the conditions to the preparation of a Subsequent or Supplemental EIR do not exist, and that a Negative Declaration is appropriate; and j. The Development Agreement will preserve the benefits of years of land use planning and open space - habitat preservation efforts, while establishing ultimate City control of the area. SECTION 2. Development Agreement No. 14, attached hereto as Exhibit A, is hereby adopted. SECTION 3. The Mayor shall sign and the City Council shall attest to the passage of this Ordinance. This Ordinance shall be published once in the official newspaper of the City, and the same shall become effective thirty (30) days after the date of its adoption. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on July 10, 2001, and adopted on July 24, 2001 by the following vote, to wit: 0 0 AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT COUNCIL MEMBERS MAYOR ATTEST: CITY CLERK k 0 0 ANNEXATION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE IRVINE COMPANY AND IRVINE COMMUNITY DEVELOPMENT COMPANY CONCERNING THE NEWPORT COAST AND ADJACENT PROPERTIES 5 0 0 ANNEXATION AND DEVELOPMENT AGREEMENT This Annexation and Development Agreement (hereinafter "Agreement') is entered into effective as of July _ 2001, (hereinafter the "Effective Date ") by and among the CITY OF NEWPORT BEACH (hereinafter "CITY "), and THE IRVINE COMPANY and IRVINE COMMUNITY DEVELOPMENT COMPANY (hereinafter collectively "OWNER "). RECITALS A. OWNER collectively owns a substantial portion of the real property ( "Property") described on Exhibit "A" and depicted on Exhibit "B," consisting of approximately 5,615 acres. B. The Property is currently in the unincorporated area of the County of Orange ( "County "). OWNER has obtained development approvals from the County and the California Coastal Commission for the majority of the Property from the County and has commenced subdivision and development of the Property under the jurisdiction of the County. C. The development approvals for the Property have been granted after a lengthy planning process that involved the careful review of numerous environmental documents (Planning and Environmental History is attached as Exhibit C). The development approvals include: The County of Orange Newport Coast Local Coastal Program and Master.Coastal Development Permit for that portion of the Property in the Coastal Zone. 2. A Development Agreement with the County (County Development Agreement). 3. The Newport Ridge Planned Community Plan. 4. Subdivision Maps. D. The Property is also part of the Natural Communities Conservation Plan (NCCP) — a complex agreement that requires OWNER to dedicate portions of the Property upon completion of certain phases of development. OWNER is also required to dedicate large portions of the Property pursuant to the development approvals. Page 2 of 23 (7 0 0 E. OWNER was required, by the development approvals, to make costly infrastructure improvements far in excess of those necessary to mitigate the impacts, or serve the needs, of the development. OWNER was required to make, and has made, these extraordinary improvements prior to development of the Property. F. OWNER has acquired a fully vested right to develop the Property in accordance with the development approvals because of the extraordinary expenditures for public and private improvements made in reliance on the development approvals, the dedications made in reliance on the development approvals and the County Development Agreement. G. CITY and OWNER intend for this Agreement to fully conform to the development approvals and to fully facilitate full implementation of the Project, as conditioned. To the maximum extent permitted by law, this Agreement is intended to be the functional equivalent of, or supplement, the County Development Agreement in light of the CITY's intention to delegate to the County all municipal land use authority over the Property until such time as the Project is complete. H. City is desirous of annexing the Property but recognizes that the development approvals for the Property involve complex and interrelated planning documents. CITY does not have sufficient staff to timely process the permits required for implementation of the Project in compliance with all the development approvals. Moreover, the development approvals and land use plan involve the dedication of valuable habitat and open space within and outside of the boundaries of the Property and City does not have the personnel and expertise to ensure that dedications occur as planned. I. CITY and OWNER have discussed the process and terms and conditions of annexing the Property to CITY, and each has determined that it is in their respective best interests to pursue that annexation pursuant to the terms of this Agreement and the development approvals. In particular CITY desires assurances that OWNER will support eventual annexation of all of the Property to CITY, in order to: (a) Facilitate the timely and orderly integration of the Property into the CITY consistent with the CITY's sphere of influence; (b) Facilitate planning and provision of municipal services to the Property without any adverse fiscal impact on the CITY or the ultimate owners of the property; and (c) ensure consistency with and implement the CITY's General Plan. At the same time, OWNER desires to obtain assurances from CITY that, subsequent to annexation: Page 3 of 23 • (a) OWNER will still be able to develop the Property to the full extent permitted by the development approvals granted by the County and the Coastal Commission subject to conditions of approval imposed by the Coastal Commission and the County and and consistency with the City's General Plan; (b) Development will be processed by the County in accordance with a uniform set of land use and building rules, regulations and requirements, as established by the development approvals given by the County for the Property prior to its annexation; and (c) Development of the Property will be subject only to costs, fees, processing requirements, conditions or exactions that would have been imposed had the Property not been annexed to CITY. J. In addition to the authority at common law for annexation agreements, Government Code Sections 65864 et seq. ( "Development Agreement Law "), and Chapter 15.45 of the Newport Beach Municipal Code authorize CITY to enter into binding development agreements with persons having a legal or equitable interest in real property. This Agreement is consistent with the public policy that supports development agreements in that it strengthens the public planning process, facilitates implementation of comprehensive planning, provides significant public benefits, and reduces the economic costs of development. K. The City Council has found that this Agreement is in the best public interest of the CITY and its residents, adopting this Agreement constitutes a present exercise of its police power, and this Agreement is consistent with the City's General Plan and the Newport Beach Municipal Code Chapter. L. This Agreement is not intended to, and shall not be construed, to impair the rights and obligations of OWNER, or other involved parties under and pursuant to the Newport Coast Local Coastal Program, Second Amendment, and the Litigation Settlement Agreement entered into June 27, 1997, by and among OWNER, the Friends of the Irvine Coast, Laguna Greenbelt, Inc., and Stop Polluting Our Newport. Page 4 of 23 N 0 0 COVENANTS NOW, THEREFORE, the Parties agree as follows: DEFINITIONS AND EXHIBITS. 1A Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter capitalized, or all letters capitalized, when used in the Agreement. The defined terms include the following: 1.1.1 "Agreement' means this Annexation and Development Agreement. 1.1.2 "Coastal Zone Area" means that portion of the Property that is subject to the provisions of the California Coastal Act, Public Resources Code section 30000 et seq. 1.1.3 "CITY" means the City of Newport Beach, a California charter city. 1.1.4 "County' means the County of Orange, a political subdivision of the State of California. 1.1.5 "Development' whether or not capitalized means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping and park facilities and improvements. For purposes of this Agreement, however, "Development" does not include any remodeling, reconstruction, or other building or grading activity by any person subsequent to the termination of this Agreement as provided in and pursuant to Section 2.3.3 below. 1. 1.6 "Development Approvals" means all permits, licenses, consents, rights and privileges, and other actions subject to approval or issuance by County or CITY in connection with Development of the Property, including but not limited to: (a) General plans and general plan amendments adopted by the County or the CITY; (b) Specific plans and specific plan amendments; (c) Zoning and rezoning adopted by the County or the CITY; (d) Tentative and final subdivision and parcel maps; Page 5 of 23 Cl 0 0 (e) Variances, conditional use permits, master plans, public use permits and plot plans; and (f) Grading and building permits. 1.1.7 "Development Plan" means the plan for Development of the Property, including without limitation the planning and zoning standards, regulations, and criteria for the Development of the Property, contained in and consistent with the Development Approvals. The components of the Development Plan are more fully described in Exhibit "D." 1.1.8 "Effective Date" means the date this Agreement is approved by the CITY as shown in the first paragraph. 1.1.9 "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies governing Development and use of land applicable to the Property pursuant to this Agreement, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) except as provided in Section 4.9 below, taxes and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; and (e) the exercise of the power of eminent domain 1.1.10 "OWNER" means individually and collectively The Irvine Company and Irvine Community Development Company, and where appropriate in context their respective successors in interest to all or any part of the Property. 1.1.11 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security- device, a lender and their successors and, assigns. Page 6 of 23 iJ 0 0 1.1.12 "Project' means the Development of the Property consistent with the Development Plan. 1.1.13 "Property' means the real property described in Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.14 "Reservation of Authority' means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 4.6 of this Agreement. 1.1.15 "Subsequent Development Approvals" means all Development Approvals subsequent to the Effective Date in connection with Development of the Property. 1.1.16 "Subsequent Land Use Regulations" means any Land Use Regulations adopted and effective after the Effective Date of this Agreement, other than the Development Plan. 1.1.17 "Tenn" shall mean the period of time from the Effective Date until the termination of this Agreement as provided in subsection 10.1, or earlier termination as provided in Section 7. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" Legal Description of the Property. Exhibit "B" Map showing Property and its location. Exhibit "C" Planning and Environmental History. Exhibit "D" List of County Development Approvals. Exhibit "E" Mitigation Measures. Exhibit "F" Affordable Housing Implementation Plans. 2. GENERAL PROVISIONS. 2.1 Binding Effect of Agreement. This Agreement shall be binding on the CITY from and following the Effective Date. However, CITY shall have no right or duty with respect to the Property until annexation of Page 7 of 23 9 0 the Property to CITY and CITY intends, through a joint powers agreement, ordinance or other mechanism, to delegate to the County all municipal land use jurisdiction and all responsibility for processing Development Approvals that the City has, or may have, pursuant to State or local law. 2.2 Assignment by OWNER. 2.2.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no transfer violates the Subdivision Map Act, Government Code Section 66410, et seg.), and in so doing assign its rights and obligations under this Agreement as the same may relate to the portion of the Property being transferred, to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement. 2.2.2 Release of Transferring Owner. Upon the sale, transfer or assignment of all or a portion of the Property, the transferring OWNER shall be released of all obligations under this Agreement that relate to the portion of the Property being transferred; provided that the obligations under Sections 4 and 5 of this Agreement that relate to the portion of the Property being transferred are assumed by and enforceable against the transferee. 2.2.3 Termination of Agreement With Respect to Individual Residential Lots On Sale to Public and Completion of Construction. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any residential lot and such residential lot shall be released and no longer be subject to this Agreement upon satisfaction of both of the following conditions: (a) The residential lot has been finally subdivided and individually (and not in "bulk ") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and, (b) A certificate of occupancy has been issued or a final building inspection has been conducted and approved for the primary dwelling unit on the residential lot. 2.2.4 Termination of Agreement With Respect to Non - Residential Parcels. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any non - residential parcel and the non - residential parcel shall be released and no longer be subject to Page 8 of 23 ,a 0 this Agreement at such time as the parcel has been fully improved and occupied consistent with the allowed intensity of development under the Development Plan. 3. PRE - ANNEXATION OBLIGATIONS AND COMMITMENTS. 3.1 Annexation of Property. Consistent with and subject to the terms and conditions of this Agreement and specifically this Subsection, CITY may, in one annexation proceeding or several annexation proceedings, annex the Property under such conditions as are imposed by or through the Orange County Local Agency Formation Commission and reasonably acceptable to OWNER. Conditions shall be deemed to be reasonably acceptable to OWNER unless the conditions impair or interfere with OWNER's rights to develop or materially increase the cost of development. OWNER's consent to annexation of all or a portion of the Property is contingent on, and OWNER has reasonably relied on, CITY's commitments in Section 3 and 4 of this Agreement. 3.1.1 Annexation Before Project Completion. OWNER will support CITY's annexation of the Property in its entirety before project completion, provided that the Property may be fully developed to the full extent permitted in the Development Plan and as evidenced by satisfaction of each of the following conditions: (a) The Legislature has approved, and the Governor has signed, legislation that clarifies provisions of the Coastal Act such that annexation of the Property (1) will not alter or affect the validity and enforceability of the Newport Coast Local Coastal Program, Second Amendment, including any amendments applicable to the Property and any related coastal development permits; or (ii) deprive the County of authority to issue coastal development permits pursuant to the terms of this Agreement, any ordinance, joint powers agreement, or other mechanism that confers municipal land use authority to the County after annexation and the Newport Coast Local Coastal Program, Second Amendment or any subsequent amendments that are certified by the California Coastal Commission; (b) The City adopts, and maintains during the term of this Agreement, general plan and zoning desginations for the Property that are essentially identical to the general plan and zoning designations adopted by the County and in effect as of the Effective Date. Page 9 of 23 t3 (c) The City transfers municipal land use authority (including the issuance of building and grading permits) to the County pursuant to a joint powers or similar agreement and/or ordinance until such time as the Project is complete or until OWNER consents, in writing, to an assumption of municipal land use authority over all or a portion of the Property. 3.1.2 Ultimate Annexation. OWNER will fully support CITY annexation of all or a portion of the Property without satisfying the provisions of Section 3.1.1, provided that all lots and /or parcels to be annexed have received building permits for construction of structure(s) consistent with the Development Approvals, a certificate of occupancy has been issued or a final building inspection has been conducted and annexation will not interfere with, affect, or impair the Development Approvals or OWNER's ability to complete the Project. 3.2 Environmental Impacts and Mitigation. The parties acknowledge that Environmental Impact Reports, environmental documents and functional equivalents ( "Environmental Documents - described in Exhibit C) have been prepared and certified for the Project by County and/or approved by the Coastal Commission. CITY has reviewed and evaluated the Environmental Documents to determine if the impacts of the Project, as represented by this Agreement, the Development Plan, and the CITY approvals, were fully analyzed and evaluated. CITY has also reviewed the Environmental Documents and all relevant existing facts and circumstances to determine if any of the events that require preparation of a subsequent or supplemental environmental document have occurred. CITY has determined based on that review that none of the events described in Section 21166 of the Public Resources Code or Sections 15162 or 15163 of the CEQA Guidelines have occurred. CITY has specifically determined that the detachment of the Property from County and the annexation of the Property to CITY do not require preparation of any subsequent or supplemental environmental impact report for the Project because the reorganization will not increase, decrease, or modify any development of dedication when compared to the entitlement prior to annexation. CITY has also determined that, subject to incorporation of the mitigation measures identified in Exhibit "E" and except as specifically provided in this Agreement, there is no current or anticipated deficiency in any municipal service or facility (including without limitation planned community and neighborhood parks, drainage and flood control facilities, circulation system infrastructure, and public safety services) resulting from Development of the Project. The mitigation measures identified in Exhibit "E" are incorporated by reference into the Development Plan. Page 10 of 23 1, (J, 0 3.3 Additional Pre - Annexation Understandings. As a further inducement to OWNER to support the annexation of the Property to CITY, CITY agrees that, as of the date of its approval of this Agreement. CITY acknowledges that all County affordable housing requirements associated with development of the Property have been satisfied. CITY also acknowledges that the OWNER has a vested right to proceed with development pursuant to the County Agreement and that no additional affordable housing requirements shall be imposed on development of the Property pursuant to the CITY's General Plan or otherwise. The Affordable Housing Implementation Plans approved by the County, describing the manner in which affordable housing requirements have been satisfied for development of the Property, are attached to this Agreement as Exhibit "F." Fees payable upon issuance of any development permit (e.g., building permit or occupancy permit) will be paid to the issuer of the permit in accordance with County Codes, fee schedules and requirements for original improvements. Following annexation, fees shall continue to be paid to the issuer in accordance with the codes and requirements for additions, remodels and rebuilds of the jurisdiction with land use authority.. CITY agrees that the Project is in full compliance with, and shall not be further subject to, CITY's Traffic Phasing Ordinance following annexation of the Property, CITY having determined through this Agreement that: a. Development of the Property will not cause or make worse any unsatisfactory level of service at any critical intersection as defined in the Traffic Phasing Ordinance; b. Development of the Property has been considered a committed project which has been incorporated into the CITY's traffic model and Circulation Element traffic projections and all resulting levels of service have been accepted in the Circulation Element; and c. There is an overall reduction in peak hour ICU at impacted intersections having unsatisfactory levels of service taking into account the circulation improvements constructed or facilitated by OWNER pursuant to conditions imposed for development of the Project, including construction of Newport Coast Drive, extension of San Joaquin Hills Road, widening of Pacific Coast Highway, and facilitation of construction of the San Joaquin Hills Transportation Corridor. 3.4 Cooperation. Subject to and in reliance upon the representations and covenants of the CITY herein, OWNER will support the annexation of the Property by the CITY. Page 11 of 23 1,;� 0 0 3.5 Termination of Annexation Proceedings. This Agreement may be terminated by OWNER in the event that CITY fails to comply with the requirements of Paragraph 3.1 above with respect to any proposed annexation of Property to CITY, or if conditions imposed by or through the Local Agency Formation Commission on the annexation are determined by either party to conflict materially with its rights and obligations under any provision of this Agreement. 4. DEVELOPMENT OF THE PROPERTY UPON ANNEXATION AND ADOPTION OF THE DEVELOPMENT PLAN. Following annexation of the Property by CITY, the following provisions shall apply: 4.1 Rights to Develop. Subject to the terms of this Agreement, following annexation of the Property OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. Pending annexation to CITY, OWNER shall have the right to seek approvals from County for the Development of the Property, and to develop the Property, consistent with the Development Plan. CITY expressly agrees to take no action that would or could (a) interfere with or impair the Development Approvals; (b) interfere with or impair the OWNER's ability to complete the project; (c) materially increase the cost of completing the project without the OWNER's express written consent; or (d) cause the transfer of any permitting or development review authority pursuant to State or local law, including Government Code section 30519, from the County to the City or any other agency until such time as that portion of the Property affected by the transfer is fully developed pursuant to the Development Plan and provided the transfer would not interfere or impair OWNER's ability to develop any other portion of this Property. 4.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to Development of the Property, shall be those contained in the Development Plan and those Land Use Regulations not inconsistent with the Development Plan and that were in full force and effect as of June 26, 2001. 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v City of Camarillo (1984) 37 Cal. 3d 465, Page 12 of 23 (U! 0 that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is'intended to alter the standard durational limits of any permits issued to OWNER pursuant to Development Approvals. 4.4 Changes and Amendments. The parties acknowledge that Development of the Project may require Subsequent Development Approvals. OWNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to Development Approvals or the Development Plan to effect such change and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan unless the proposed modifications: (a) would material lyred uce the amount of open space intended for dedication to the public, or (b) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (c) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (d) would materially increase the density and /or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. Any change in the Development Approvals or Development Plan made in accordance with the procedures required by the Land Use Regulations and with the written consent of the OWNER shall be conclusively deemed to be consistent with this Agreement, without any further need for any amendment to this Agreement or any of its Exhibits. 4.5 Continuation of Irvine Coast Development Agreement. CITY acknowledges and agrees that the County Development Agreement entered into between OWNER and County shall continue to govern the rights and obligations of OWNER and County with respect to the Coastal Zone Area preceding annexation, and following annexation to the maximum extent permitted pursuant to the joint powers agreement or similar arrangement. If for any reason this Page 13 of 23 • Agreement is found to be invalid or unenforceable or OWNER's ability to proceed with the Development Plan is impaired or delayed for any reason, then the Coastal Zone Area shall be and remain subject to the terms and protections of the Irvine Coast Development Agreement. 4.6 Monitoring of Project. City shall, subsequent to annexation of all or a portion of the Property, have the right, pursuant to a standard right of entry permit issued by OWNER, to enter the Property for the limited purpose of ensuring that development of the Property proceeds in substantial compliance with the Development Approvals and all conditions to those approvals that are material to the issue of water quality and aesthetics. OWNER shall designate a Project Manager to provide CITY with access to all grading and building plans and specifications at or before submittal to the County. CITY shall conduct all monitoring activities in a manner that does not unduly burden OWNER's rights to develop the Property in compliance with Development Approvals. Any report prepared pursuant to monitoring shall be lodged with the City Manager and City shall provide OWNER with the opportunity to review and comment on the report prior to submittal to the City Manager. The monitoring authorized by this Subsection is not intended, and shall not be construed, to create any procedure, right or process on the part of the CITY to review or evaluation the development of the Property. City shall make available to any person, upon request, any report or document lodged with the City Manager that is prepared by any professional retained to conduct the monitoring authorized by this Section. 5. FINANCING OF PUBLIC IMPROVEMENTS AFTER ANNEXATION. 5.1 Formation of Financing Districts. If so requested by OWNER, CITY will cooperate in the formation of any special assessment district, community facilities district or alternate financing mechanism ( "CFD ") to pay for the construction, acquisition, and /or maintenance and operation of public and/or quasi - public infrastructure, lighting, landscape, or any other public facilities required as part of the Development Approvals; provided, however, CITY shall have no obligation to authorize or to cause any such CFD to issue debt or sell bonds prior to the completion of the annexation of the Property to CITY. In the event that such a CFD is formed and sells bonds to pay for the construction or acquisition of public or quasi - public facilities which were provided, in whole or in part, by OWNER, OWNER may be reimbursed from such bonds to the extent that OWNER has spent funds or dedicated land for the establishment of such facilities and creation of the CFD. While it is acknowledged that this Agreement cannot require CITY or the City Council to form any such CFD or to issue and sell bonds, CITY represents that it can, and does hereby, agree that it shall not refuse OWNER's request to form such a CFD and to issue and sell bonds following completion of annexation of the Property to CITY, except for good and reasonable cause. In no event shall CITY have any obligation or duty to refinance, repay, reduce the amount of,.or assume any financial relationship to, any bonds or other Page 14 of 23 I 0 0 debt issued by any CFD prior to annexation. 5.2 OWNER's Right to Construct Facilities. It is understood and agreed that, subject to CITY or County review and approval of plans and specifications, as appropriate, the OWNER may elect, and reserves the right, to construct, or cause the construction of, any public or quasi - public facility for which the CITY intends to collect a fee, and to dedicate the completed facility to the CITY, in lieu of payment of the fee. 6. REVIEW FOR COMPLIANCE FOLLOWING ANNEXATION. 6.1 Periodic Review. Following annexation of all or any portion of the Property, the City Council shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the good faith compliance by OWNER with the terms of the Agreement. As part of that review, OWNER shall submit an annual monitoring review statement describing its actions in compliance with this Agreement, in a form acceptable to the City Manager, within 30 days after written notice from the City Manager requesting that statement. The statement shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council. 6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time at CITY's sole cost. OWNER shall cooperate with the CITY in the conduct of such special reviews. 6.3 Procedure. In connection with any periodic or special review, each party shall have a reasonable opportunity to assert matters which it believes have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on such matters. If on the basis of the parties' review of any terms of the Agreement, either party concludes that the other party has not complied in good faith with the terms of the Agreement, then such party may issue a written "Notice of Non - Compliance" specifying the grounds therefor and all facts demonstrating such non - compliance. The party receiving a Notice of Non - Compliance shall have thirty (30) days to respond in writing to said Notice. If the response to the Notice of Non - Compliance has not been received in the offices of the party alleging the default within the prescribed time period, the Notice of Non - Compliance shall be conclusively presumed to be valid. If a Notice of Non - Compliance is contested, the parties shall have up to sixty (60) days to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event that the parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the sixty (60) day period, the party alleging the non - compliance may thereupon pursue the remedies provided in Section 7. Page 15 of 23 A • • 6.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance ( "Certificate ") to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and CITY Council that (1) this Agreement remains in effect and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. Additionally, OWNER may at any time request from the CITY a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Property, or any lot or parcel within the Property. DEFAULT AND REMEDIES. 7.1 Specific Performance Available. The parties acknowledge that money damages and remedies at law generally are inadequate and specific performance is a particularly appropriate remedy for the enforcement of this Agreement and should be available to OWNER and CITY because due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER and /or CITY may be foreclosed from other choices it may have had to utilize or condition the Property or portions hereof. OWNER and CITY have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, such that it would be extremely difficult to determine the sum of money which would adequately compensate OWNER and /or CITY for such efforts. Except as provided in the Section 7.2 below, neither OWNER nor CITY shall be entitled to any money damages, including attorney fees, from the other party by reason of any default under this Agreement. 7.2 Restitution of Improper Development Fees. In the event any Development fees or taxes are imposed on Development of the Property other than those authorized pursuant to this Agreement, OWNER shall be entitled to recover from CITY restitution of all such improperly assessed fees or taxes, together with interest thereon at the maximum allowable non - usurious rate from the date such sums were paid to CITY to the date of restitution. Page 16 of 23 9 ° 7.3 Termination of Agreement. 7.3.1 Termination of Agreement for Default of OWNER. CITY in its discretion may terminate this Agreement as to any non - annexed portions of the Property for any failure of OWNER to perform any material duty or obligation of OWNER hereunder or to comply in good faith with the terms of this Agreement related to its annexation (hereinafter referred to as "default'); provided, however, CITY may terminate this Agreement pursuant to this Section only after following the procedure set forth in Section 6.3 and thereafter providing written notice to OWNER of the default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.2 Termination of Agreement for Default of CITY. OWNER in its discretion may terminate this Agreement by written notice to CITY after the default by CITY in the performance of a material term of this Agreement and only after following the procedure set forth in Section 6.3 and thereafter providing written notice by OWNER thereof to CITY and, where the default can be cured, the failure of CITY to cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.3 Rights and Duties Following Termination. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to (i) any obligations to have been performed prior to said termination, (ii) any default in the performance of the provisions of this Agreement which has occurred prior to said termination, or (iii) obligations that have vested through the annexation of the Property, or any annexed portion thereof. 7.4 OWNER's Right To Terminate Upon Specified Events. Notwithstanding any other provisions of this Agreement to the contrary, OWNER retains the right to terminate this Agreement (but not the provisions of Section 3) upon thirty (30) days written notice to CITY in the event that OWNER reasonably determines that continued Development of the Project consistent with the Development Plan has become economically infeasible due to changed market conditions, increased Development costs, burdens imposed as conditions to future discretionary approvals of the Project consistent with this Agreement, or similar factors. Page 17 of 23 d • 9 8. THIRD PARTY LITIGATION. CITY shall promptly notify OWNER of any claim, action or proceeding filed and served against CITY to challenge, set aside, void, annul, limit or restrict the approval and continued implementation and enforcement of this Agreement. CITY and OWNER agree to cooperate in the defense of such action(s). 9. MORTGAGEE PROTECTION. The parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. Subject to compliance with applicable laws, CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER's obligations under this Agreement. (c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. Page 18 of 23 • • (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; except that (i) to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and (ii) in the event any Mortgagee seeks to develop or use any portion of the Property acquired by such Mortgagee by foreclosure, deed of trust, or deed in lieu of foreclosure, such Mortgagee shall strictly comply with all of the terms, conditions and requirements of this Agreement and the Development Plan applicable to the Property or such part thereof so acquired by the Mortgagee. 10. MISCELLANEOUS PROVISIONS. 10.1 Term of Agreement. Following completion of the annexation of the Property, or any portion thereof, to the CITY within the preceding time periods, this Agreement shall continue in full force and effect with respect to such annexed land for a period of fifteen (15) years from the effective date of that annexation. 10.2 Recordation of Agreement. This Agreement shall be recorded with the County Recorder by the City Clerk upon annexation of the Property to CITY within the period required by Section 65868.5 of the Government Code. Similarly, amendments approved by the parties, and any cancellation, shall also be recorded. 10.3 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 10.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, then this Agreement shall terminate in its entirety, unless the parties otherwise agree in writing, which agreement shall not be unreasonably withheld. Page 19 of 23 • ! 10.5 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party or in favor of CITY shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 10.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 10.7 Singular and Plural. As used herein, the singular of any word includes the plural. 10.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 10.9 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 10.10 Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement; provided, however, that the fee owners of any non - residential parcels in the annexation area may elect to be covered by this Agreement. 10.11 Force Majeure. Neither parry shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the party's employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party's control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years. Page 20 of 23 r^ • 0 10.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 10.13 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 10.14 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 10.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the Development of the Project is a private Development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the Development of private property and the owner of such property. 10.16 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. Subject to Section 3 above, OWNER will cooperate with the CITY in the processing of the annexation of the Project through the Local Agency Formation Commission including advocating the application of the existing AB 8 Master Property Tax Transfer Agreement. OWNER acknowledges the importance of maintaining the fiscal benefits of the Project assuming that the current method of allocating sales tax revenues (i.e., point of sale) is utilized. OWNER will consult with the CITY regarding legislative proposals to adjust this procedure with the goal of supporting CITY efforts to maintain the fiscal benefits of the Project through the legislative process. Page 21 of 23 i 0 0 10.17 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. 10.18 Amendments in Writing /Cooperation. This Agreement may be amended only by written consent of both parties specifically approving the amendment and in accordance with the Government Code provisions for the amendment of Development Agreements. The parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement, and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters. 10.19 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he /they have the authority to execute this Agreement on behalf of his /their corporation, partnership or business entity and warrants and represents that he /they has /have the authority to bind OWNER to the performance of its obligations hereunder. 10.20 Notice. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows: All notices, demands, requests or approvals to CITY shall be addressed to CITY at: City of Newport Beach City Manager's Office 3300 Newport Boulevard PO Box 1768 Newport Beach, California 92658 -8915 All notices, demands, requests or approvals to OWNER shall be addressed to OWNER at: Vice President of Entitlements The Irvine Company 550 Newport Center Drive Newport Beach, California 92660 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above. Page 22 of 23 0 s ATTEST: By LaVonne Harkless, City Clerk APPROVED AS TO FORM: By Robert Bumham, City Attorney (SEAL) CITY: CITY OF NEWPORT BEACH By GAROLD B. ADAMS, Mayor OWNER: THE IRVINE COMPANY By Title By Title OWNER: IRVINE COMMUNITY DEVELOPMENT COMPANY By Title By Title Page 23 of 23 d • ITEM TO: Members of the Newport Beach City Council FROM Dave Kiff, Assistant City Manager SUBJECT: Amendments to the Annexation and Development Agreement for the Newport Coast RECOMMENDED (1) Conduct Public Hearing; and ACTIONS: (2) Authorize the Mayor to sign the Newport Coast Annexation and Development Agreement as proposed to be amended. BACKGROUND: The Newport Coast community is an approximately 5,615 -acre area south and east of the City limits but within the City's sphere of influence consisting of the Newport Ridge Planned Community and the Newport Coast Local Coastal __- i Program (LCP). When the Newport Coast is built out (by the mid- 2010s), the JUN 2. -• - s community will have about 5200 dwelling units, up to 2,150 visitor - serving units, and two retail centers. About 4,500 people live in the Newport Coast E today. One retail center is currently graded and about 300 timeshare units are _ RPPR��E either in place or under development. On March 19, 2001, the City submitted an application to the Orange County Local Agency Formation Commission ( LAFCO) to annex the Newport Coast. LAFCO currently has the City's application under review and plans to set a public hearing on the matter this summer. The anticipated effective date for the annexation is January 1, 2002. In preparation for the LAFCO hearing, the City has done the following: • Adopted an Agreement between the Irvine Ranch Water District and the City relative to water, wastewater, and reclaimed water services in the area following any annexation Qanuary 24, 2000). • Adopted a Resolution of Application (Resolution 2000 -81) Requesting Initiation of Proceedings to annex the area (September 26, 2000). • Agreed to a series of Terms and Conditions with the residents of the Newport Coast community to be applied following any annexation (September 26, 2000). • Amended the City's General Plan and Pre -zoned the area (October 24, 2000). The Planning Commission approved these same GP amendments and pre - zoning actions on September 21, 2000. • Adopted an Annexation and Development Agreement with The Irvine Company regarding development in the area (October 24, 2000). The • i Planning Commission approved this Annexation and Development Agreement on September 21, 2000. • Introduced Senate Bill 516 (Johnson, 2001) clarifying the treatment of the existing Newport Coast LCP should the City be successful in its annexation of the Newport Coast (February 22, 2001); • Authorized and directed LAFCO's separation of the three annexation areas that the City initially proposed for annexation all at once, thus allowing the Newport Coast portion of the annexation to proceed in 2001 (May S, 2001). Actions remaining to be completed by the City include: • Formal adoption with the County of Orange of identical resolutions describing the Master Property Tax Transfer formulas associated with the Newport Coast and Bay Knolls portion of the annexation. • Adoption of a joint powers agreement (JPA) describing the relationship between the County and the City regarding land use authority, LCP administration, and building and grading permits after annexation. This has been sent to the County in draft form. • A determination as to which Councilmanic district the Newport Coast should be added to upon annexation. • Amendments to the City's FY 2001 -02 budget that add service responsibility for the Newport Coast on the effective date of the annexation. City staff and representatives of the Irvine Company believe that the Annexation and Development Agreement between the City and the Irvine Company should be amended to reflect recent actions relating to the annexation, including. • The introduction of SB 516 (Johnson) relating to the Newport Coast LCP (please see Attachment C); and • Recent actions by the California Coastal Commission to require special water quality treatment structures in the Crystal Cove portion of the Newport Coast development. Incorporating these changes also allows the parties to correct minor errors and to improve the technical language within the Development Agreement. The changes proposed for incorporation into the Development Agreement are included here as Attachment A. The Development Agreement itself - in strike- out (language deleted) and underline (language added) form is included as Attachment B. At a June 21, 2001 noticed public hearing, the Newport Beach Planning Commission recommended that the Council approve the amended Development Agreement. THIS AGENDA This Agenda Item asks the City Council to approve the proposed amended ITEM: version of Annexation and Development Agreement for the Newport Coast. ATTACHMENTS: Attachment A - Summary of Proposed Changes to the Annexation and Development Agreement Attachment B - Strike -out and underline version of the Annexation and Development Agreement Attachment C - Latest version of Senate Bill 516 (Johnson) Newport Coast Annexation and Development Agreement -- Summary of Proposed Changes (Attachment A) # Development Agreement Section Version Approved October 24, 2000 As Proposed to be Amended Newport Coast DA Summary June 21. 2001 Newport Beach Planning Commission • • r d n 3' 3 rt J Disasses rationale behind Development Agreement, facts and figures Non - substantive changes to note Coastal Commission approvals, =age. — Recitals (about The New Coast, the City, and the roe owner. a e. more. Defines terms used in the Agreement, sets forth exhbit descriptions Minor change to exhibit citations (p9 -7). 1 Definitions and Exhibits 2 General Provisions Binds the City to adhere to the Agreement, explains how City "it Minor technical change (p8). 2.1 — Binding Effect of Agreement del to certain land use authority to the County. Decribes hod TIC's obligations under the Agreement terminate when a 2.2 — Assignment by TIC residential lot is sold and has Its C of O issued and for commercial lots Grammatical, non - substantive changes (p8 -9). when such lot has been fully Improved and occupied. 3 Pre•Annexatlon Obligations and Commitments a me following Expressly authorizes TIC to fully develop the property' g Authorizes City to annex the Newport Coast if LCP can be preserved conditions are met: .(a) Passage of SS 518 or similar, 3.1 — Annexation of Property Intact and 0 City grants County all land use authority. (b) City transfer of municipal land use authority to County via JPA or similar ordinance or agreement 9 -10 . Describes understanding that: Minor change to exhibit citations (p10 -11). (1) all EIRs completed and that annexation shall not require additional Describes finding that annexation does not require EIR since It does 31 — Environmental Impacts and Mitigation environmental documentation; not change development entitlement (p11). (2) TIC has met park, flood. other standards for development already. Acknowledges Ihal affordable housing requirements have been met for Minor change to exhibit citation, grammatical change (pl 1.12). sa — Additional Pre•Annexatlon Understandings 7NC +traffic lm Is mitt aced 3.4 — Coopers tion TIC will support City's annexation eaorl No Change 3.5 — Termination of Annexation Proceedings TIC can terminate If City doesnl meet Its commitments Minor grammatical change (pl2). Development of the Property unpon Annexation and 4 Adoption of the Development Plan City expressly declares that City will not take any action that will interfere with development approvals, Including causing permitting or 4.1 — Rights to Develop TIC can develop the property to full entitlement development review to come to the City without TIC's consent unless the property Is fully developed 12 . 42 — Effect of Agreement on Land Use Regulations Agreement will not change approved land use regulations No Change 4.3 — Timing of Development TIC can develop property according to a timeline set only by TIC Minor grammatical change (p13). TFCmay apply for changes to the deve opment approvals. County will process such changes. City will support TIC $ changes unless the changes: (a) are Inconsistent with the City's Land Use Element: Clarifies how such changes can be approved by City — no substantive 4A — Changes and Amendments (b) reduce open space; changes to a-e to the left (pl3.14). (c) alter the cost of providing Services; (d) reduce property tax revenue; W increase tlensit or Intend Newport Coast DA Summary June 21. 2001 Newport Beach Planning Commission • • r d n 3' 3 rt J Newport Coast Annexation and Development Agreement -- Summary of Proposed Changes (Attachment A) 4 Development of the Property Unpon Annexation and Adoption of the Development Plan (cont'd) — Continuation of Irvine Coast Development Agreemert Irvine Coast DA between TIC and County continue to govern Coastal Zone development Minor grammatical change (p14). 4,5 4.6 — Monitoring of Project 5 Financing of Public Improvements After Annexation 5.1 — Formation of Financing Districts Not in 2000 version City must cooperate In tha formation of financing districts in TNC if so requested b TIC. All must be subject to State law. Authorizes City to enter property to ensure the development proceeds in compliance with development approvals and all approvals'matedal to the issue of water quality and aesthetics.' (pl4). No Change 8 52 — TIC's right to construct facilities 9 Review for Compliance Following Annexation 6.1 — Periodic Review TIC can construct public facilities DA review every year No Change No Change 63 — Special Review City can order a special review at City's cost No Change 6.3 — Procedure Describes how the review will proceed No Change 6.4 7 — Certificate of Agreement Compliance Default and Remedies City will Issue a certificate of compliance at completion of review if DA is in compliance Describes that specific performance of any remedy is appropriate rather than monetary damages No Change No Change 7.1 — Specific Performance Available 7.2 — Restitution of Improper Development Fees Any improper City development fees can be revved by TIC Typographical error correction (pl7). 7.3 — Termination of Agreement Describes how Agreement can be terminated No Change 7.4 — TIC'S right to terminate upon specified events TIC can terminate If market changes No Change 8 Third Party Litigation City and TIC will cooperate in any litigation against DA No Change 9 Mortgagee Protection DA nor City shall not prevent TIC from securing financing No Change 10 Miscellaneous Provisions Exhibits —A Variety of technical provisions, Including term, notices. severabllity. Legal Description of the Property Changes signature blocks (p23). Conforms late changes per the LAFCO submission —6 Map Conforms late changes per the LAFCO submission —C Planning and Environmental History No Changes — D I Summary of County Development Approvals No Changes — E Documents mitigation measures No Changes — F lAffordable Housing Implementation Plans I No Changes Newport Coast DA Summary June 21, 2001 Newport Beach Planning Commission • 0 0 Attachment B ANNEXATION AND DEVELOPMENT AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE IRVINE COMPANY AND IRVINE COMMUNITY DEVELOPMENT COMPANY CONCERNING THE NEWPORT COAST AND ADJACENT PROPERTIES r_ ANNEXATION AND DEVELOPMENT AGREEMENT This Annexation and Development Agreement (hereinafter "Agreement ") is entered into effective as of 29002001, (hereinafter the "Effective Date ") by and among the CITY OF NEWPORT BEACH (hereinafter "CITY "), and THE IRVINE COMPANY and IRVINE COMMUNITY DEVELOPMENT COMPANY (hereinafter collectively "OWNER "). RECITALS A. OWNER collectively owns a substantial portion of the real property ( "Property") described on Exhibit "A" and depicted on Exhibit "GB," consisting of approximately 5,615 acres. B. The Property is currently in the unincorporated area of the County of Orange ( "County"). OWNER has obtained development approvals from the County and the California Coastal Commission for the majority of the Property from the County; and has commenced subdivision and development of the Property under the jurisdiction of the County. C. The development approvals for the Property have been appreved as ranted after a lengthy planning process that involved the careful review f numerous environmental documents (Planning and eRV+reasaeRtal-Environmental hister-y-History is attached as Exhibit 8C). The development approvals include: The County of Orange Newport Coast Local Coastal Program and Master Coastal Development Permit for that portion of the Property in the Coastal Zone. 2. A Development Agreement with the County (County Development Agreement). 3. The Newport Ridge Planned Community Plan. 4. Subdivision Maps. D. The Property is also part of the Natural Communities Conservation Plan (NCCP) — a complex agreement that requires OWNER to dedicate portions of the Property upon completion of certain phases of development. OWNER is also required to dedicate large portions of the Property pursuant to the development approvals. I%! 0 0 E. OWNER was required, by the development approvals, to make costly infrastructure improvements far in excess of those necessary to mitigate the impacts, or serve the needs, of the development. OWNER was required to make, and has made, these extraordinary improvements prior to development of the Property. F. OWNER has acquired a fully vested right to develop the Property in accordance with the development approvals because of the extraordinary expenditures for public and private improvements made in reliance on the development approvals, the dedications made in reliance on the development approvals and the County Development Agreement. G. CITY and OWNER intend for this Agreement to fully conform to the development approvals and to fully facilitate full implementation of the Project, as conditioned. To the maximum extent Dermitted by law, this Agreement is intended to De the Tuncuonai equnraient of, or suppiemem, Tne L ounry vevelopment Agreement in light of the CITY's intention to delegate to the County all municipal land use authority over the Property until such time as the Project is complete. H. The PFeperty is within GIW's spheFee#;aAeer+ee —City is desirous of annexing the Property but recognizes that the development approvals for the Property involve complex and interrelated planning documents. end -CITY does not have sufficient staff to timely process the permits required for implementation of the Project in compliance with all the development approvalspennits. Moreover, the development approvals and land use plan involve the dedication of valuable habitat and open space within and outside of the boundaries of the Property and City does not have the personnel and expertise to ensure that dedications occur as planned. I. CITY and OWNER have discussed the process and terms and conditions of annexing the Property to CITY, and each has determined that it is in their respective best interests to pursue that annexation pursuant to the terms of this Agreement and the development approvals. In particular CITY desires assurances that OWNER will support eventual annexation of all of the Property to Now (a) F #acilitate the timely and orderly integration of the Property into the CITY consistent with the CITY's sphere of influence; (b) Facilitate planning and provision of municipal services to the Property without any adverse fiscal impact on the CITY or the ultimate owners of the property; and 3 III E E (c) ensure consistency with and implement the CITY's General Plan.; and At the same time, --2)- -OWNER desires to obtain assurances from CITY that, subsequent to annexation: (a) OWNER will still be able to develop the Property to the full extent permitted by the development approvals granted by the County and the Coastal Commission subiect to conditions of approval imposed (b) �'^•�aTDevelopment will be processed by the County in accordance with a uniform set of land use and building rules, regulations and requirements, as established by the development approvals given by the County for the Property prior to its annexation; and (c) Ddevelopment of the Property will be subject only to costs, fees, processing requirements, conditions or exactions that would have been imposed had the Property not been annexed to CITY., J. In addition to the authority at common law for annexation agreements, Government Code Sections 65864 et seq. ( "Development Agreement Law "), and NewpeFt Beash MwAisipal Code Chapter 15.45 of the Newport Beach Municipal Code; authorize CITY to enter into binding development agreements with persons having a Legal or equitable interest in real property. This Agreement is consistent with the public oolicv that supoorts development the public planning process, M, the economic costs of sueh development. K. The City Council has found that this Agreement is in the best public interest of the CITY and its residents, adopting this Agreement constitutes a present exercise of its police power, and afflexatoen of the PFepedy, this Agreement is will be consistent with the City's General Plan and wick► -the Newport Beach Municipal Code Chapter. L. This Agreement is not intended to, and shall not be construed, to impair the rights and obligations of OWNER, or other involved parties under and pursuant to eitlieF�the Newport Coast Local Coastal Program, Second Amendment, and the Litigation Settlement Agreement entered into June 27, 1997, by and among OWNER, the Friends of the Irvine Coast, Laguna Greenbelt, Inc., and Stop Polluting Our Newport. 4 I 0 COVENANTS NOW, THEREFORE, the Parties agree as follows: DEFINITIONS AND EXHIBITS. 0 1.1 Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter capitalized, or all letters capitalized, when used in the Agreement. The defined terms include the following: 1.1.1 "Agreement- means this Annexation and Development Agreement. 1.1.2 "Coastal Zone Area" means that portion of the Property that is subject to the provisions of the California Coastal Act, Public Resources Code section 30000 et seq. 1.1.3 "CITY" means the City of Newport Beach, a California charter city. 1.1.4 "County' means the County of Orange, a political subdivision of the State of California. 1.1.5 "Development' whether or not capitalized means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping and park facilities and improvements. For purposes of this Agreement, however, "Development" does not include any remodeling, reconstruction, or other building or grading activity by any person subsequent to the termination of this Agreement as provided in and pursuant to Section 2.3.3 below. 1. 1.6 "Development Approvals" means all permits, licenses, consents, rights and privileges, and other actions subject to approval or issuance by County or CITY in connection with Development of the Property, including but not limited to: (a) General plans and general plan amendments adopted by the County or the CITY; (b) Specific plans and specific plan amendments; 5 (c) Zoning and rezoning adopted by the County or the CITY; (d) Tentative and final subdivision and parcel maps; (e) Variances, conditional use permits, master plans, public use permits and plot plans; and (f) Grading and building permits. 1.1.7 "Development Plan" means the plan for Development of the Property, including without limitation the planning and zoning standards, regulations, and criteria for the Development of the Property, contained in and consistent with the Development Approvals. The components of the Development Plan are more fully described in Exhibit "DG." 1.1.8 "Effective Date" means the date this Agreement is approved by the CITY as shown in the first paragraph.- 1.1.9 "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies governing Development and use of land applicable to the Property pursuant to this Agreement, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) except as provided in Section 4.9 below, taxes and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; and (e) the exercise of the power of eminent domain 1.1.10 "OWNER" means individually and collectively The Irvine Company and Irvine Community Development Company, and where appropriate in context their respective successors in interest to all or any part of the Property. T 1 n 0 0 1.1.11 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security- device, a lender and their successors and assigns. 1.1.12 "Project' means the Development of the Property consistent with the Development Plan. 1.1.13 "Property' means the real property described in Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.14 "Reservation of Authority' means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 4.6 of this Agreement. 1.1.15 "Subsequent Development Approvals" means all Development Approvals subsequent to the Effective Date in connection with Development of the Property. 1.1.16 "Subsequent Land Use Regulations" means any Land Use Regulations adopted and effective after the Effective Date of this Agreement, other than the Development Plan. 1.1.17 "Term" shall mean the period of time from the Effective Date until the termination of this Agreement as provided in subsection 10.1, or earlier termination as provided in Section 7. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" Legal Description of the Property. Exhibit "B" Map showing Property and its _ location. Planning nd En ninnental HisteFy. Exhibit "C" - leeatien: Planning and Environmental History. Exhibit "D" List of County Development Approvals_ Exhibit "E" Mitigation Measures_ Exhibit "F" Affordable Housing Implementation Plans. 2 GENERAL PROVISIONS. 7 In 0 0 2.1 Binding Effect of Agreement. This Agreement shall be binding on the CITY from and following the Effective Date. However, CITY shall have no right or duty with respect to the Property until annexation of the Property to CITY and CITY intends, through a joint powers agreement, ordinance or other mechanism, OF °'Mi'^fl ^i:Fangement to delegate to the County all municipal and use jurisdiction and all responsibility for processing Development Approvals that the City has, or may have, pursuant to State or local law. 2.2 Assignment By OWNER. 2.2.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no eaeh-parti&transfer shalFvielateviolates the Subdivision Map Act, Government Code Section 66410, et seq.), and in so doing assign its rights and obligations under this Agreement as the same may relate to the portion of the Property being transferred, to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement. 2.2.2 Release of Transferring Owner. Upon the sale, transfer or assignment of all or a portion of the Property, the transferring OWNER shall be released of all obligations under this Agreement that relate to the portion of the Property being transferred; provided that the obligations under Sections 4 and 5 of this Agreement that relate to the portion of the Property being transferred are assumed by and enforceable against the transferee. 2.2.3 Termination of Agreement With Respect to Individual Residential Lots On Sale to Public and Completion of Construction. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any residential lot and such residential lot shall be released and no longer be subject to this Agreement upon satisfaction of both of the following conditions: (a) The residential lot has been finally subdivided and individually (and not in "bulk ") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and, (b) A certificate of occupancy has been issued or a final building inspection has been conducted and approved for the primary dwelling unit on the residential lot. 0 0 2.2.4 Termination of Agreement With Respect to Non - Residential Parcels. Notwithstanding any other provisions of this Agreement, the obligations of Owner pursuant to this Agreement shall terminate with respect to any non - residential parcel and Gaeh the non - residential parcel shall be released and no longer be subject to this Agreement at such time as the parcel has been fully improved and occupied consistent with the allowed intensity of development under the Development Plan. PRE - ANNEXATION OBLIGATIONS AND COMMITMENTS. 3.1 Annexation of Property. Consistent with and subject to the terms and conditions of this Agreement and specifically this Subsection, CITY may, in one annexation proceeding or several annexation proceedings, annex the Property under such conditions as are imposed by or through the Orange County Local Agency Formation Commission and reasonably acceptable to OWNER. Conditions shall be deemed to be reasonably acceptable to OWNER unless the conditions impair or interfere with OWNER's rights to develop or materially increase the cost of development. OWNER's consent to annexation of all or a portion of the Property is in Section 3 and 4 of this Agreement.- 3.1.1 Annexation Before Project Completion. OWNER will neithef su ort CITY's annexation of the Property in its entirety before project completion, provided that the Property may be fully developed to the full extent permitted in the nPvPlnnmPnt Plan and as PvirlPnrPrt by satisfaction of each of the (a) The Legislature has approved, and the Governor has of the PrepeFty by GIP� suNe6t to the teFFAs of this ill not alter or affect the validity and enforceability of the Newport Coast Local Coastal Program, Second Amendment, including any amendments applicable to the Property and any related coastal development permits; or ii - e"eprive the County of authority to issue coastal development permits pursuant to the terms of this Agreement, any ordinance; joint powers agreement, or other mechanism that confers municipal land use authority to the County after annexation and - and -the Newport Coast Local Coastal Prooram. Second Amendment 0 i-7 0 0 amendments that are certified b (b) The Ci aAdopts, and maintains during the term of this Agreement, the- applisable-general plan pFeyisiens, speei plans and zoning desginations for the Property that are essentially as the same Kaye b^eRidentical to the general plan and zoning designations adopted by the County, te#he SeeeRd and in effect as of the Effective Date. (c) The City transfers municipal land use the issuance of building and aradina nern smote a joint powers or until such time as the I hung, to an over all or a 3.1.2 Ultimate Annexation. OWNER will fully support CITY annexation of all or a portion of the Newped GeastPr( without satisfying the provisions of Section 3.1.1, pro) that all annexed and /or parcels to be annexed ha received building permits for construction of structure of occupancy has been issued or a has been conducted and annexatic affect, or impair the Development P inspection or 3.2 Environmental Impacts and Mitigation. The parties acknowledge that Environmental Impact Reports, environmental documents and functional equivalents ( "Environmental Documents - described in Exhibit 8C) have been prepared and certified for the Project by County.and/or approved by the Coastal Commission. CITY has reviewed and evaluated the Environmental Documents to determine if the impacts of the Project, as represented by this Agreement, the Development Plan, and the CITY approvals, were fully analyzed and evaluated. CITY has also reviewed the Environmental Documents and all relevant existing facts and circumstances to determine if any of the events that require preparation of a subsequent or supplemental environmental document have occurred. CITY has determined based on that review that none of the events described in Section 10 !U 0 0 21166 of the Public reseu.oes Resources Code or Sections 15162 or 15163 of the CEQA Guidelines have occurred. CITY has specifically determined that the detachment of the Property from County and the annexation of the Property to CITY do not require preparation of any subsequent or supplemental environmental impact report for the Project because the reorganization will not increase decrease or modify any development of dedication when compared to the entitlement prior to annexation. CITY has also determined that, subject to incorporation of the mitigation measures identified in Exhibit "OE" and except as specifically provided in this Agreement, there is no current or anticipated deficiency in any municipal service or facility (including without limitation planned community and neighborhood parks, drainage and flood control facilities, circulation system infrastructure, and public safety services) resulting from Development of the Project. The mitigation measures identified in Exhibit "DE" are incorporated by reference into the Development Plan. 3.3 Additional Pre- Annexation Understandings. As a further inducement to OWNER to support the annexation of the Property to CITY, CITY agrees that, as of the date of its approval of this Agreement. CITY acknowledges that all County affordable housing requirements associated with development of the Property have been satisfied. CITY also acknowledges that the OWNER has a vested right to proceed with development pursuant to the County Agreement and that no additional affordable housing requirements shall be imposed on development of the Property pursuant to the CITY's General Plan or otherwise. The Affordable Housing Implementation Plans approved by the County, describing the manner in which affordable housing requirements have been satisfied for development of the Property, are attached to this Agreement as Exhibit " €F.° Fees payable upon issuance of any development permit (e.g., building permit or occupancy permit) will be paid to the issuer of the permit in accordance with County Codes, fee schedules and requirements for original improvements. Following annexation, fees shall continue to be paid to the issuer in accordance with the codes and requirements for additions, remodels and rebuilds of the jurisdiction with land use authority. CITY agrees that the Project is in full compliance with, and shall not be further subject to, CITY's Traffic Phasing Ordinance following annexation of the Property, CITY having determined through this Agreement that: a. Development of the Property will not cause or make worse any unsatisfactory level of service at any critical intersection as defined in the Traffic Phasing Ordinance; b. Development of the Property has been considered a committed project which has been incorporated into the CITY's traffic model and Circulation Element traffic projections and all resulting levels of service have been accepted in the Circulation Element; and c. There is an overall reduction in peak hour ICU at impacted intersections 11 0 having unsatisfactory levels of service taking into account the circulation improvements constructed or facilitated by OWNER pursuant to conditions imposed for development of the Project, including witheut limitation construction of Newport Coast Drive, extension of San Joaquin Hills Road, widening of Pacific Coast Highway, and facilitation of construction of the San Joaquin Hills Transportation Corridor. 3.4 Cooperation. Subject to and in reliance upon the representations and covenants of the CITY herein, OWNER will support the annexation of the Property by the CITY. 3.5 Termination of Annexation Proceedings. This Agreement may be terminated by OWNER in the event that CITY fails to comply with the requirements of Paragraph 3.1 above with respect to any proposed annexation of Property to CITY, or if conditions imposed by or through the Local Agency Formation Commission on the annexation are determined by either party to conflict materially with its rights and obligations under any provision of this Agreement. 4 DEVELOPMENT OF THE PROPERTY UPON ANNEXATION AND A{9^n�%^k% ^� TUI Ill AL% Following annexation of the Property by CITY, the following provisions shall apply: 4.1 Rights to Develop. Subject to the terms of this Agreement, following annexation of the Property OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. Pending annexation to CITY, OWNER shall have the right to seek approvals from County for the Development of the Property, and to develop the Property, consistent with the Development Plan. CITY expressly agrees to take no action that would or could (a) interfere with or impair the Development Approvals; (b) the cost of completing the project without the or (d) cause the transfer of anv Dermittina or, ant to State or or 4.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and . the design, improvement and construction standards and specifications applicable to Development of the Property, shall be those contained in the Development Plan and those Land Use Regulations not inconsistent with the Development Plan. 12 • • 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard durational limits of any appHeab"ermits issued to OWNER pursuant to Development Approvals. 4.4 Changes and Amendments. The parties acknowledge that Development of the Project w4-4i *aaya + require Subsequent Development Approvals. , WNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to prier--Development Approvals or the Development Plan to effect sate such change, which and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan that are eensisteRt with the Land Use Element designations feF the nless the proposed modifications: inconsistent with the Land Use Element designations for the or Lb) would aiatedally4Weduce the amount of open space intended for dedication to the public, or Lb) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (de) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (ed) would materially increase the density and/or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. , 13 ri i' Any change in the Development Approvals or Development Plan made in accordance with the procedures required by the Land Use Regulations and with the written consent of the OWNER shall be conclusively deemed to be consistent with this Agreement, without any further need for any amendment to this Agreement or any of its Exhibits. 4.5 Continuation of Irvine Coast Development Agreement. CITY acknowledges and agrees that the 4*ne-GeastCounty Development Agreement entered into between OWNER and County shall continue to govern the rights and obligations of OWNER and County with respect to the Coastal Zone Area preceding annexation, and following annexation to the maximum extent permitted pursuant to the joint powers agreement or similar arrangement. If for any reason this Agreement is found to be invalid or unenforceable or OWNER's ability to proceed with the Development Plan is impaired or delayed for any reason, then the Coastal Zone Area shall be and remain subject to the terms and protections of the Irvine Coast Development Agreement. 5 FINANCING OF PUBLIC IMPROVEMENTS AFTER ANNEXATION. 5.1 Formation of Financing Districts. If so requested by OWNER, CITY will cooperate in the formation of any special assessment district, community facilities district or alternate financing mechanism ( "CFD ") to pay for the construction, acquisition, and /or maintenance and operation of public and/or 14 0 0 quasi - public infrastructure, lighting, landscape, or any other public facilities required as part of the Development Approvals; provided, however, CITY shall have no obligation to authorize or to cause any such CFD to issue debt or sell bonds prior to the completion of the annexation of the Property to CITY. In the event that such a CFD is formed and sells bonds to pay for the construction or acquisition of public or quasi - public facilities which were provided, in whole or in part, by OWNER, OWNER may be reimbursed from such bonds to the extent that OWNER has spent funds or dedicated land for the establishment of such facilities and creation of the CFD. While it is acknowledged that this Agreement cannot require CITY or the City Council to form any such CFD or to issue and sell bonds, CITY represents that it can, and does hereby, agree that it shall not refuse OWNER's request to form such a CFD and to issue and sell bonds following completion of annexation of the Property to CITY, except for good and reasonable cause. In no event shall CITY have any obligation or duty to refinance, repay, reduce the amount of, or assume any financial relationship to, any bonds or other debt issued by any CFD prior to annexation. 5.2 OWNER's Right to Construct Facilities. It is understood and agreed that, subject to CITY or County review and approval of plans and specifications, as appropriate, the OWNER may elect, and reserves the right, to construct, or cause the construction of, any public or quasi - public facility for which the CITY intends to collect a fee, and to dedicate the completed facility to the CITY, in lieu of payment of the fee. 6 REVIEW FOR COMPLIANCE FOLLOWING ANNEXATION. 6.1 Periodic Review. Following annexation of all or any portion of the Property, the City Council shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the good faith compliance by OWNER with the terms of the Agreement. As part of that review, OWNER shall submit an annual monitoring review statement describing its actions in compliance with this Agreement, in a form acceptable to the City Manager, within 30 days after written notice from the City Manager requesting that statement. The statement shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council. 6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time at CITY's sole cost. OWNER shall cooperate with the CITY in the conduct of such special reviews. 6.3 Procedure. In connection with any periodic or special review, each party shall have a reasonable opportunity to assert matters which it believes have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on 15 0 0 such matters. If on the basis of the parties' review of any terms of the Agreement, either party concludes that the other party has not complied in good faith with the terms of the Agreement, then such party may issue a written "Notice of Non - Compliance" specifying the grounds therefor and all facts demonstrating such non - compliance. The party receiving a Notice of Non - Compliance shall have thirty (30) days to respond in writing to said Notice. If the response to the Notice of Non - Compliance has not been received in the offices of the parry alleging the default within the prescribed time period, the Notice of Non - Compliance shall be conclusively presumed to be valid. If a Notice of Non - Compliance is contested, the parties shall have up to sixty (60) days to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event that the parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the sixty (60) day period, the party alleging the non - compliance may thereupon pursue the remedies provided in Section 7. 6.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance ( "Certificate ") to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and CITY Council that (1) this Agreement remains in effect and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. Additionally, OWNER may at any time request from the CITY a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Property, or any lot or parcel within the Property. 7 DEFAULT AND REMEDIES. 7.1 Specific Performance Available. The parties acknowledge that money damages and remedies at law generally are inadequate and specific performance is a particularly appropriate remedy for the enforcement of this Agreement and should be available to OWNER and CITY because due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER and/or CITY may be foreclosed from other choices it may have had to utilize or condition the Property or portions hereof. OWNER and CITY have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, such that it would be extremely difficult to determine the sum of 16 r.� 0 0 money which would adequately compensate OWNER and/or CITY for such efforts. Except as provided in the Section 7.2 below, neither OWNER nor CITY shall be entitled to any money damages, including attorney fees, from the other party by reason of any default under this Agreement. 7.2 Restitution of Improper Development Fees. In the event any Development fees or taxes are imposed on Development of the Property other than those authorized pursuant to this Agreement, OWNER shall be entitled to recover from CITY restitution of all such improperly assessed fees or taxes, together with interest thereon at the maximum allowable non - usurious rate from the date such sums were paid to CITY to the date of restitution_ 7.3 Termination of Agreement. 7.3.1 Termination of Agreement for Default of OWNER. CITY in its discretion may terminate this Agreement as to any non - annexed portions of the Property for any failure of OWNER to perform any material duty or obligation of OWNER hereunder or to comply in good faith with the terms of this Agreement related to its annexation (hereinafter referred to as "default'); provided, however, CITY may terminate this Agreement pursuant to this Section only after following the procedure set forth in Section 6.3 and thereafter providing written notice to OWNER of the default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.2 Termination of Agreement for Default of CITY. OWNER in its discretion may terminate this Agreement by written notice to CITY after the default by CITY in the performance of a material term of this Agreement and only after following the procedure set forth in Section 6.3 and thereafter providing written notice by OWNER thereof to CITY and, where the default can be cured, the failure of CITY to cure such default within 30 days after the effective date of such notice or, in the event that such default cannot be cured within such 30 day period, the failure of CITY to commence to cure such default within such 30 day period and to diligently proceed to complete such actions and to cure such default. 7.3.3 Rights and Duties Following Termination. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to (i) any obligations to have been performed prior to said termination, (ii) any default in the performance of the provisions of this Agreement which has occurred prior to said 17 Ll L termination, or (iii) obligations that have vested through the annexation of the Property, or any annexed portion thereof. 7.4 OWNER's Right To Terminate Upon Specified Events. Notwithstanding any other provisions of this Agreement to the contrary, OWNER retains the right to terminate this Agreement (but not the provisions of Section 3) upon thirty (30) days written notice to CITY in the event that OWNER reasonably determines that continued Development of the Project consistent with the Development Plan has become economically infeasible due to changed market conditions, increased Development costs, burdens imposed as conditions to future discretionary approvals of the Project consistent with this Agreement, or similar factors. 8 THIRD PARTY LITIGATION. CITY shall promptly notify OWNER of any claim, action or proceeding filed and served against CITY to challenge, set aside, void, annul, limit or restrict the approval and continued implementation and enforcement of this Agreement. CITY and OWNER agree to cooperate in the defense of such aotion(s). 9 MORTGAGEE PROTECTION. The parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such tenders to negotiate in good faith any such request for interpretation or modification. Subject to compliance with applicable laws, CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER's obligations under this Agreement. 9.1 -1': 0 0 (c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; except that (i) to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and (ii) in the event any Mortgagee seeks to develop or use any portion of the Property acquired by such Mortgagee by foreclosure, deed of trust, or deed in lieu of foreclosure, such Mortgagee shall strictly comply with all of the terms, conditions and requirements of this Agreement and the Development Plan applicable to the Property or such part thereof so acquired by the Mortgagee. 10 MISCELLANEOUS PROVISIONS. 10.1 Term of Agreement. Following completion of the annexation of the Property, or any portion thereof, to the CITY within the preceding time periods, this Agreement shall continue in full force and effect with respect to such annexed land for a period of fifteen (15) years from the effective date of that annexation. 10.2 Recordation of Agreement. This Agreement shall be recorded with the County Recorder by the City Clerk upon annexation of the Property to CITY within the period required by Section 65868.5 of the Government Code. Similarly, amendments approved by the parties, and any cancellation, shall also be recorded. 10.3 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 19 9 0 10.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, then this Agreement shall terminate in its entirety, unless the parties otherwise agree in writing, which agreement shall not be unreasonably withheld. 10.5 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party or in favor of CITY shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 10.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 10.7 Singular and Plural. As used herein, the singular of any word includes the plural. 10.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 10.9 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 10.10 Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement; provided, however, that the fee owners of any non - residential parcels in the annexation area may elect to be covered by this Agreement. 10.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the party's employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party's control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, provided that the term of this Agreement shall not be extended under any circumstances_ for more than five (5) years. 20 �r 01 0 10.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 10.13 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 10.14 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 10.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the Development of the Project is a private Development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the Development of private property and the owner of such property. 10.16 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. Subject to Section 3 above, OWNER will cooperate with the CITY in the processing of the annexation of the Project through the Local Agency Formation Commission including advocating the application of the existing AB 8 Master Property Tax Transfer Agreement. OWNER acknowledges the importance of maintaining the fiscal benefits of the Project assuming that the current method of allocating sales tax revenues (Le., point of sale) is utilized. OWNER will consult with the CITY regarding legislative proposals to adjust this procedure with the goal of supporting CITY efforts to maintain the fiscal benefits of the Project through the legislative process. 21 10.17 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. 10.18 Amendments in Writing/Cooperation. This Agreement may be amended only by written consent of both parties specifically approving the amendment and in accordance with the Government Code provisions for the amendment of Development Agreements. The parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement, and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters. 10.19 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he /they have the authority to execute this Agreement on behalf of hisAheir corporation, partnership or business entity and warrants and represents that he/they has/have the authority to bind OWNER to the performance of its obligations hereunder. 10.20 Notice. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows: All notices, demands, requests or approvals to CITY shall be addressed to CITY at: City of Newport Beach City Manager's Office 3300 Newport Boulevard PO Box 1768 Newport Beach, California 92658 -8915 All notices, demands, requests or approvals to OWNER shall be addressed to OWNER at: Vice President of Entitlements The Irvine Company 550 Newport Center Drive Newport Beach, California 92660 22 0 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above. CITY: CITY OF NEWPORT BEACH By GAROLD B. ADAMS, Mayor ATTEST: 11 By LaVonne Harkless, City Clerk APPROVED AS TO FORM: By Robert Burnham, City Attorney (SEAL) OWNER: THE IRVINE COMPANY By Title By _ Title 23 r 0 0 OWNER: IRVINE COMMUNITY DEVELOPMENT COMPANY By_ Title By_ Title [ALL SIGNATURES SHALL BE NOTARIZED. EXECUTION ON BEHALF OF ANY CORPORATION SHALL BE BY TWO CORPORATE OFFICERS.] 24 0 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH BLOCKS: 5151, 5152, 5251 5252, 5253, 5351 5352 MODULES: VARIOUS BEING THOSE PORTIONS OF BLOCKS 91, 95 -98, 128 -134, 161 -164 OF IRVINE'S SUBDIVISION AS SHOWN ON A MAP THEREOF FILED IN BOOK 1, PAGE 88 OF MISCELLANEOUS RECORD MAPS AND PARCEL 2 AND A PORTION OF PARCEL 1 PER CORPORATION GRANT DEED BOOK 13439, PAGE 94 -132, RECORDED DECEMBER 19, 1979,. IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT AN ANGLE POINT IN THE EXISTING CITY BOUNDARY AS ESTABLISHED BY REORGANIZATION NO. R097 -35, "BONITA CANYON ANNEXATION TO THE CITY OF NEWPORT BEACH AND DETACHMENT OF THE SAME TERRITORY FROM THE' CITY OF IRVINE", SAID ANGLE POINT BEING THE SOUTHEASTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED AS "SOUTH 11 058'31" EAST 11.29 FEET" IN SAID REORGANIZATION NO. R097 -35, AND BEING COMMON TO "HARBOR VIEWS HILLS - PHASE 3" ANNEXATION TO THE CITY OF NEWPORT BEACH; THENCE CONTINUING ALONG THE EXISTING CITY BOUNDARY OF THE CITY OF NEWPORT BEACH PER "HARBOR VIEW HILLS -PHASE 3" ANNEXATION, THE "HARBOR VIEW HILLS SECTOR 4" ANNEXATION, THE "HARBOR RIDGE ANNEXATION NO. 89 ", THE "HARBOR RIDGE ANNEXATION NO. 82, THE "HARBOR VIEW HILLS -PHASE 3" ANNEXATION, THE "HARBOR VIEW HILLS -PHASE 4" ANNEXATION, THE "ANNEXATION NO. 57 (CENTERVIEW ANNEXATION) ", TO THE WESTERLY TERMINUS OF A LINE BEARING NORTH 89 002'53" WEST A DISTANCE OF 1,050.00 FEET, SAID WESTERLY TERMINUS BEARS NORTH 37 °05'00" WEST 2,050.93 FEET FROM HORIZONTAL CONTROL STATION "BUCK" HAVING A GRID COORDINATE VALUE OF NORTHING 525199.56 U.S. SURVEY FOOT AND FASTING 1513406.22 U.S. SURVEY FOOT, BASED UPON THE CALIFORNIA STATE PLANE COORDINATE SYSTEM OF 1983, ZONE VI, NORTH AMERICAN DATUM OF 1983 PER RECORD OF SURVEY NO. 88 -1069, FILED IN BOOK 120, PAGE 37, RECORDS OF SAID COUNTY; THENCE CONTINUING ALONG (CENTERVIEW ANNEXATION) THE "HARBOR VIEW" ANNEXATION, ANNEXATION NO. 8, CITY BOUNDARY 1928 (COURT CASE NO. 23686) INCORPORATED SEPTEMBER 1, 1906; THE "CORONA HIGHLANDS" ANNEXATION, THE "SEAWARD 17" ANNEXATION,. THE "CAMEO HIGHLANDS" ANNEXATION, THE ANNEXATION NO. 82 RECORDED AS "ANNEXATION NO. 84 ", THE "CAMEO HIGHLANDS" ANNEXATION, THE "ANNEXATION NO. 64 ", THE "CAMEO CLIFFS" ANNEXATION" THE "SHORE CLIFFS - CAMEO SHORES TIDELANDS ANNEXATION" THROUGH THEIR VARIOUS COURSES IN A GENERAL SOUTHEASTERLY, SOUTHWESTERLY, SOUTHEASTERLY, SOUTHERLY, WESTERLY, LEG \1331- LGLI.O (04/23/01) SE PAGE 1 OF 9 EXHIBIT `A' 0 NEWPORT COAST ANNEXATION NO.CAOO -XX TO THE CITY OF NEWPORT BEACH SOUTHERLY, EASTERLY, SOUTHERLY, WESTERLY, SOUTHERLY, SOUTHEASTERLY, SOUTHERLY, SOUTHWESTERLY, WESTERLY, NORTHWESTERLY, SOUTHWESTERLY, WESTERLY, SOUTHWESTERLY, SOUTHERLY, NORTHWESTERLY, SOUTHWESTERLY; WESTERLY, SOUTHEASTERLY, NORTHEASTERLY, SOUTHERLY, SOUTHWESTERLY, NORTHWESTERLY AND SOUTHWESTERLY DIRECTION TO AN ANGLE POINT ON THE BOUNDARY OF THE CITY OF NEWPORT BEACH AS ESTABLISHED BY "SHORE CLIFFS - CAMEO SHORE TIDELANDS ANNEXATION "; THENCE LEAVING SAID CITY BOUNDARY IN A DIRECT LINE NORTHEASTERLY ±3 MILES TO A POINT ON THE MEAN HIGH TIDE OF THE PACIFIC OCEAN; SAID POINT BEARING SOUTH 37 039'50" WEST ±600 FEET FROM THE NORTHWEST CORNER OF PARCEL 3 OF "PARK PROPERTY" AS DESCRIBED IN CORPORATION GRANT DEED TO THE STATE OF CALIFORNIA ON FILE DECEMBER 19, 1979, IN BOOK 13439, PAGE 94 -132 IN THE OFFICE OF THE COUNTY RECORDER, SAID POINT BEING THE SOUTHWESTERLY PROLONGATION OF THAT CERTAIN COURSE "NORTH 37 039'50" EAST 104.98 FEET" AS DESCRIBED IN SAID DEED IN THE WESTERLY BOUNDARY OF PARCEL 3 OF SAID "PARK PROPERTY "; THENCE ALONG SAID SOUTHWESTERLY PROLONGATION "NORTH 37 039'50" EAST TO THE SOUTHWESTERLY TERMINUS OF THAT CERTAIN COURSE "NORTH 37 039'50" EAST 104.98 FEET" IN THE NORTHWESTERLY BOUNDARY OF SAID PARCEL 3, SAID TERMINUS ALSO BEING ON THE NORTHEASTERLY RIGHT OF WAY LINE OF THE PACIFIC COAST HIGHWAY BEING A HIGHWAY OF VARIABLE WIDTH, AND FURTHER DESCRIBED IN BOOK 487, PAGE 1 OF DEEDS IN THE OFFICE OF THE COUNTY RECORDER; THENCE LEAVING SAID NORTHEASTERLY RIGHT OF WAY LINE ALONG THE NORTHWESTERLY BOUNDARY LINE OF PARCEL 3 OF SAID "PARK PROPERTY", NORTH FEET; THENCE NORTH 37 039'50" EAST 104.98 FEET TO THE BEGINNING OF A TANGENT 950.00 FOOT RADIUS CURVE CONCAVE TO THE SOUTHEAST; THENCE ALONG THE ARC OF SAID CURVE NORTHEASTERLY, 219.65 FEET THROUGH A CENTRAL ANGLE OF 13 014'50"; THENCE I.EG \1331- LGLI.00C (04/23/01) SE PAGE 2 OF 9 7 /1 • EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CAOO -XX TO THE CITY OF NEWPORT BEACH NORTH 50 054'.40" EAST 1645.45 FEET TO THE BEGINNING OF A TANGENT 1300.00 FOOT RADIUS CURVE CONCAVE TO THE WEST; THENCE ALONG THE ARC OF SAID CURVE NORTHEASTERLY, 1590.29 FEET THROUGH A CENTRAL ANGLE OF 70 005'24 "; THENCE NORTH 19 010'44" WEST 387.88 FEET; THENCE SOUTH 84 042'47" EAST 288.52 FEET;' THENCE NORTH 58 039'02" EAST 1018.72 FEET; THENCE NORTH 74 008'04" EAST 197.52 FEET; THENCE NORTH 60 027'40" EAST 137.93 FEET; THENCE SOUTH 68 054'28" EAST 150.05 FEET; THENCE NORTH 66 048'05" EAST 167.55 FEET; THENCE NORTH 04 038'08" EAST 74.24 FEET; THENCE SOUTH 87 003'52" EAST 84.20 FEET; THENCE NORTH 23 021'06" WEST 232.34 FEET; THENCE NORTH 51 008'19" EAST 310.79 FEET; THENCE NORTH 31 050'33" EAST 223.66 FEET; THENCE NORTH 11 055'46" WEST 290.27 FEET; THENCE NORTH 30 002'00" EAST 147.85 FEET; THENCE NORTH 35 052'56" WEST 232.03 FEET; THENCE NORTH 10 031'40" EAST 229.87 FEET; THENCE NORTH 46 °28'08" EAST 55.17 FEET; THENCE LEG \1331 -L M.00C 104/23/011 SE PAGE 3 OF 9 7 E EXHIBIT 1A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH NORTH 67 °53'26" EAST NORTH 38 031'49" EAST NORTH 24 035'24" EAST NORTH 03 052'43" EAST NORTH 19 050'41" EAST NORTH 49 001'42" EAST NORTH 73 052'21" EAST NORTH 60 049'09" EAST NORTH 11 °48'47" EAST 138.16 FEET; THENCE 138.06 FEET; THENCE 129.77 FEET; THENCE 118.27 FEET; THENCE 141.40 FEET; THENCE 150.97 FEET; THENCE 172.80 FEET; THENCE 176.38 FEET; THENCE 312.62 FEET; THENCE NORTH 03 021'59" WEST 272.47 FEET TO THE SOUTHEASTERLY TERMINUS OF THAT CERTAIN COURSE "SOUTH 28 044'47" EAST 328.52 FEET" IN THE EXISTING WESTERLY BOUNDARY OF "PARK PROPERTY" AS DESCRIBED IN CORPORATION GRANT DEED TO THE STATE OF CALIFORNIA RECORDED NOVEMBER 17, 1981 ON FILE IN BOOK 14292, PAGE 953 -965 IN THE OFFICE OF THE COUNTY RECORDER; THENCE ALONG SAID WESTERLY BOUNDARY NORTH NORTH NORTH NORTH NORTH NORTH 28 044'47" WEST 11 021'29" EAST 08 021'57" WEST 29 047'31" EAST 80 008'45" EAST 30 018'40" EAST L \1331 -L LI.O (04/23/01) SE 328.52 FEET; THENCE 467.15 FEET; THENCE 68.73 FEET; THENCE 301.90 FEET; THENCE 383.72 FEET; THENCE 301.17 FEET; THENCE PAGE 4 OF 9 ? �1 0 0 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH NORTH 79 056'51" EAST NORTH 49 046'51" EAST NORTH 75 °36'00" EAST NORTH 88 017'55" EAST NORTH 02 027'46" EAST NORTH 25 047'27" EAST NORTH 89 015'21" EAST NORTH 11 034'59" EAST NORTH 11 006'16" WEST NORTH 10 047'04" EAST NORTH 35 006'10" EAST NORTH 16 038'20" EAST NORTH 18 054'59" WEST NORTH 16 025'40" EAST NORTH 29 010'03" EAST NORTH 14 024'00" EAST NORTH 52 °16'30" EAST NORTH 80 017'00" EAST NORTH 37 027'15" EAST SOUTH 33 000`20" EAST NORTH 70 038'36" EAST LEG \1331- LGLI.D (04123101) SE 446.86 FEET; THENCE 390.27 FEET; THENCE 152.80 FEET; THENCE 404.18 FEET; THENCE 186.17 FEET; THENCE 330.97 FEET; THENCE 308.03 FEET; THENCE 2549.93 FEET; THENCE 1038.44 FEET; THENCE 235.15 FEET; THENCE 551.26 FEET; THENCE 181.60 FEET; THENCE 188.16 FEET; THENCE 424.32 FEET; THENCE 196.98 FEET; THENCE 152.80 FEET; THENCE 67.01 FEET; THENCE 148.12 FEET; THENCE 274.61 FEET; THENCE 789.39 FEET; THENCE 784.31 FEET; THENCE PAGE 5 OF 9 EXHIBIT 'A' NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH SOUTH 02 059'35" WEST 306.42 FEET; THENCE SOUTH 22 006'00" EAST 356.17 FEET; THENCE SOUTH 35 018'58" EAST 2345.66 FEET; TO WESTERLY TERMINUS OF THAT CERTAIN COURSE "SOUTH 44 °31'21" EAST 678.84 FEET" IN THE EXISTING NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132; THENCE LEAVING THE BOUNDARY OF SAID BOOK 14292, PAGE 953 -956 AND ALONG THE NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132 SOUTH 44 031'21" EAST 678.84 FEET; THENCE SOUTH 71 026'28" EAST 584.39 FEET; THENCE SOUTH 85 006'26" EAST 515.88 FEET; THENCE SOUTH 74 032130" EAST 420.20 FEET; THENCE SOUTH 66 °47'38" EAST 548.66 FEET; TO A POINT ON THE SOUTHEASTERLY LINE OF BLOCK 161 OF SAID IRVINE'S SUBDIVISION; THENCE LEAVING THE NORTHEASTERLY BOUNDARY OF SAID BOOK 13439, PAGE 94 -132 AND ALONG THE SOUTHEASTERLY LINE OF SAID BLOCK 161 LEG \1331- LGL1.00C (04/23/01) SE PAGE 6 OF 9 E 0 EXHIBIT `A' NEWPORT COAST ANNEXATION NO.CAOO -XX TO THE CITY OF NEWPORT BEACH NORTH 40 033'59" EAST 262.79 FEET; TO A POINT ON THAT CERTAIN COURSE BEARING "NORTH 68 °22'13" WEST 560.20 FEET" IN THE EXISTING BOUNDARY OF "THE PROPERTY" DESCRIBED IN GRANT DEED TO THE CITY OF LAGUNA BEACH RECORDED JUNE 27, 1991 AS DOCUMENT NO. 91- 330557 IN THE OFFICE OF THE COUNTY RECORDER; THENCE ALONG SAID COURSE AND THE SOUTHWESTERLY BOUNDARY OF "THE PROPERTY" OF SAID GRANT DEED NORTH 68 021'18" WEST 321.71 FEET; THENCE NORTH 60 007'54" WEST 785.39 FEET; THENCE SOUTH 83 028'56" WEST 326.82 FEET; THENCE NORTH 66 044'01" WEST 658.40 FEET; THENCE NORTH 39 006'41" WEST 465.65 FEET; THENCE NORTH 54 032'38" WEST 526.14 FEET; THENCE NORTH 34 026'23" WEST 410.92 FEET; THENCE NORTH 12 044'59" EAST 337.73 FEET; THENCE NORTH 24 022'24" WEST 331.27 FEET; THENCE NORTH 38 033'34" WEST 489.32 FEET; THENCE NORTH 22 014'13" WEST 315.36 FEET; THENCE NORTH 41 041'22" WEST 538.97 FEET; THENCE NORTH 46 030'42" WEST 848.19 FEET; THENCE NORTH 71 006'53" WEST 244.14 FEET; THENCE LEG \1331 -WLI.D (04/23/01) SE PAGE 7 OF 9 0 EXHIBIT `A' 0 NEWPORT COAST ANNEXATION NO.CA00 -XX TO THE CITY OF NEWPORT BEACH SOUTH 89 008'04" WEST 252.22 FEET; TO THE SOUTHWESTERLY PROLONGATION OF THE COURSE DESCRIBED AS "NORTH 40 °00'00" EAST 660.00 FEET" IN ANNEXATION NO. 1 (FRAZIER ANNEXATION) TO THE CITY OF IRVINE; THENCE ALONG SAID PROLONGATION NORTH 40 033'37" EAST 221.32 FEET TO A POINT IN THE SOUTHEASTERLY BOUNDARY OF THE CITY OF IRVINE AS ESTABLISHED BY "REORGANIZATION NO. R097 -04" DISTANT THEREON SOUTH 64 016'17" EAST 1339.16 FEET FROM THE NORTHWESTERLY TERMINUS OF THAT CERTAIN COURSE DESCRIBED AS "NORTH 64 016'17" WEST 4468.85 FEET" IN THE CENTERLINE OF TR -73 (SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR) AS DESCRIBED IN PARCEL 1 OF SAID REORGANIZATION NO. R097 -04; THENCE ALONG SAID EXISTING CITY BOUNDARY AND THE CENTERLINE OF TR -73 PER SAID "REORGANIZATION NO. R097 -04" THROUGH THEIR VARIOUS COURSES IN A GENERAL NORTHWESTERLY DIRECTION TO AN ANGLE POINT IN THE EXISTING CITY OF NEWPORT BEACH BOUNDARY AS ESTABLISHED BY "REORGANIZATION NO. R097 -35 ", SAID POINT BEING THE SOUTHEASTERLY TERMINUS OF THAT COURSE DESCRIBED AS "NORTH 690 24'23" WEST 2092.48 FEET "; THENCE ALONG SAID EXISTING CITY BOUNDARY PER SAID "REORGANIZATION NO. R097 -35" THROUGH ITS VARIOUS COURSES IN A GENERAL NORTHWESTERLY, SOUTHERLY, SOUTHEASTERLY AND NORTHWESTERLY DIRECTION TO THE TRUE POINT OF BEGINNING. CONTAINS 5,615 ACRES, MORE OR LESS. ATTACHED HERETO AND MADE A PART HEREOF, IS A MAP DESIGNATED AS EXHIBIT IN BI. THIS LEGAL DESCRIPTION WAS PREPARED BY ME, OR UNDER MY SUPERVISION ON July 12, 2000. REX S. PLUMMER LS 6641 EXPIRATION DATE 12/31/03 LEG \1331 - LGLI -DD (04/23/01) SE DATE PAGE 8 OF 9 • EXHIBIT `A' 9 NEWPORT COAST ANNEXATION NO.CAOO -XX TO THE CITY OF NEWPORT BEACH THIS PROPOSAL DOES MEET THE APPROVAL OF THE ORANGE COUNTY SURVEYOR'S OFFICE. DATED THIS DAY OF , 2001. BY: JOHN CANANS, COUNTY SURVEYOR LEG \1331- LGLI.DOC (04/23/01) SE PAGE 9 OF 9 7--I BLOCICA 5151, 5152, 5251, 5252 5253 5351, 5352 MODULES VARIOUS SAN JOAQUIN HILLS TRANSPORTAMON CORRIDOR _ — — BONITA — — I— — — — ( ' CANYON ROAD CrtY or urvwH ROAQFORD I 1 I i \?N\1A5i I CRY OF I to ' ni N6BACHT I I __ _ _ v' wl• tiles I HIACIW ACOAST Y I �Iri I I O INDEX MAP WTO r E ORDIGTES SWEET NUMBER 5HE 1 OF 4 " EMSANC = OF NEWPORT BEACH BOUNMY PER REM MZATION N0.97 -35. — — — - ^ " EkSTRG CITY OF NEWPORT BEACH BOUNDARY PER VARIOUS AHNEYAROHS . ' ' EMSDNO CITY OF RME BCtMARY PER REORGMZADOY f N0. 97 -04, CRYSTAL COVE STALE PARK BCM/NDARY. O — CRYSTAL G _ GB BTAY9 PARK s L — • BOUNDARY OF DEED GRANTED TO THE CITY OF LACUNA BEACH RECORDED .VNE 27, t991 AS DOG Na 91- JJ0557 ® MCA TES SHEET HUNKER P.O.G RpCA TES POINT OF CCUMEIMENT T.P.OE. OOCATES TRUE PORT OF BEMOG A INDICATES HORIZONTAL CONTROL STARON AS NOTED INS �STMENT CONTAINS 5615 ACRES MORE OR LESS PREPARED BY ME OR UNDER MY Dow SUMMON LS 6641 CIMEER PRES 12%31/03 TNL4 PROPOSAL DOES MEET THE APPROVAL OF THE ORANGE COUNTY SURVEYORS OFROE DATED DOS _PAY OF 2001 JOHN CANAS COUNTY SURVEYTH EXHIBI T "B" REURCAATZATION N0. RO GOOD TD♦ � OF T CHI Project tsign ConalYltants PEIAAIAO fl107NllRYM SSRImAO TOY -jr Shw4 S 900. Son X DL9I 30.339.91" M U4 9349 EXHIBIT C PLANNING AND ENVIRONMENTAL MIST-CRY • Date Document Actton/Ap roval Relationship to Pro Pro' Irvine Coastal Community Approved by the County; denied Established a maximum residential b-u- d out for General Pan Amendment by the Califomia Coastal Irvine Coast of 12,000 DUs. Acted as County Final EIR No. 134. Commission (as LCP dcamnent) General Plan and proposed as fast coastal LCP to Coastal Commission. 19821 Irvme Coast Local Coastal Approved by the County; certified Established as first LGP for Irvine Coast 1983 Program 80-M and Use by the California Coastal Maximum residential build out of 2,000 units, Element Amendment 804- Commission provided other land uses, development policies, Supplemental EIR Na 237, and regulations. Determined Coastal Act LCP Implementation Action Consistency. For PA 3 (similar area to proposed Plan. project area) established maximum of 85 SF DUs. PA14: 250 overnight accommodations and 25,000 square feet of related commercial uses. 19871 First Amendment to the Irvine Approved by the County, and Established a maximum residential build out of 1988 Coast Local Coastal Program certified by the California Coastal 2 .600 units, land uses, intensity of use, Land Use Plan and Commission development policies, and regulations. Implementing Ordinance for the Determined Coastal Act consistency. Similar land Irvine Coast Planning Unit use designations and build out within proposed pro area as was approved in the 1982 LCP. 1988/ FEIR No. 486, Irvine Coast Certified by the County of Serves as an implementing mechanism for the 1996 Planned Community Orange Irvine Coast LCP. Addressed impacts based on Development Agreement build out of pro'ad pursuant to the 1988 LCP and Addendum for Development Development Agreement Agreement First Amendment 88 FEIR No. 485; IM78 Coast Certified by the County of Addressed environmental impact of backbone Planned Community Master Orange infrastructure, roadways, and subdivision of 2,813 Coastal Deveopment Permit ages, evaluating 23 of 44 Master COP land use MCDP 88-1IP and Vesting A- planning areas. EIR analysis included PAs 3A, 3B Tenf &e Tract Map No. 13337. and 14; addressed construction of Sand Canyon Avenue through PAs 3A and 3B; partial widening of PCH along The Irvine Company property; construction of backbone drainage system as recommended in the RMDRMP; construction and/or relocation of master utilities and construction of backbone domestic water storage and distribution system and backbone wastewater collection system. FEIR 485 did not address spedtk development proposals for residential, tourist commercat, or golf course development. Subsequent EIRs, in conjunction with subdivision 'B' maps and project Coastal Development Permits, have addressed area spLxifto proposals. 1989 Final EIR No. 511, Irvine Coast Certified by the County of ua consuucuon e mpam for 11 Planned Community, Phase L Orange individual projects (residential and gotf course uses) in addition to the realignment of Lower Loop Road (now named Pelican Hill Road). Included PAs 3A, 36, 14. Proposed development in PAs 3A, 3B, and 14, as addressed in FOR 511, was low density (estate/custom lot) residential units. FOR 611 addressed the First Amendment to the MCOP and the Second revised Vesting 'A' Tentative Tract map 13337. As part of the First Amendment to the MCOP, planning area boundaries, including those of 3A, 36. and 14, were adjusted from boundaries established in ft 0 Data Document ActiordAp novel Relationship to Proposed Project original MCDP and LCP documents; and development densities in PAs 3A and 38 were changed from 0-2 dulao as stated in the certified LCP, to 0.3 dulac in the MCDP First Amendment 1989 Refined Master Drainage and Approved by the County of Recommended backbone drainage Improvement RuroflManagement Plan Orange system for the NCPC. Drainage and sedimentation control measures are included as part of each subsequent development project within the MCDPINCPC. The RMDRMP addressed facilities to mitigate increased peak runoff volumes and rates due to planned development The RMDRMP is the master improvement plan from which subsequent site specific storm runoff management plans for NCPC development areas are derived. Each development project must engage a runoff management system that will maintain post- project flow rates to within ten percent of the pre- developed condition, in accordance with the certified LCP. 1994 Addendum to FEIR No. 511 -PA Certified by the County of Site Development Permit to allow mass grading in 940113 Srie Development Orange PA 3A and for a borrow site (in PA 38) in an area Perm WUishbone Hill Graoing, previcuslyanalyzed for development 1995 Mitigated Negative Declaration Approved by the County of Negative Declaration addressed potential No. IP -95 -100, Transportation Orange environmental effects of deleting segments or Element Amendment 951 Sand Canyon Avenue and San Joaquin Hills Road from the County Master Plan of Arterial Highways (MPAH). Most relevant to the proposed project, NC Phase N -2, the approval of the MPAH amendments removed the master planned segment of San Canyon Avenue from its existing terminus just north of PCH to the San Joaquin Hills Transpo nation Corridor (SJHTC), and deleted the then planned interchange of San Canyon Avenue at the SJHTC. The removal of this planned segment was the result of changes in future land uses in the City of Irvine (PA 22) that would result in more open spacelless development and in unincorporated Orange County property/Newport Coast/Newport Ridge areas. Therefore, San Canyon Avenue north of PCH has been clanged in name (application in review at County) to Crystal Cove Drive, and will serve as a community accesslentry stmt rather than a County arterial. a LCP Second Amendment further mod e 1996 Second Amendment to the pprov by the County of Newport Coast Local Coastal Orange, and certified by the LCP by adjusting planning area boundaries and Program Land Use Plan and California Coastal Commission open space boundaries adjacent to Crystal Cove Implementing Ordinance for ft State Park to improve habitat connectivity; the Newport Coast Planning Unit Second Amendment increased the maximum number of dwelling units allowed in undeveloped planning areas to match the low end of density ranges established by the land use categories while maintaining the maximum allowed 2,600 total dwelling units in the NCPC; technical revisions were made to the LCP including name changes to roads and planned communities. 1996 Natural Community —Certified by the County of Addressed NCCFIHCP for Central/Coastal Orange Conservation Plan and Habitat Orange, California Department of County. Plan includes 37,000 we reserve Conservation Plan Joint Fish and Game, and U.S. Fish system, authorizes incidental take of coastal sage Programmatic FEIR No. and Nhidlife Service scrub, and provides regulatory coverage for 39 553IFEIS 96-26 individual species. The proposed projects" is not within the NCCP Reserve since the site was master planned for development. Mitigation measures prescribed in FEIR 511 and FOR 553/FEIS 96 -26 (NCCP) pertain to project impacts 553/FEIS 96-26 individual species. The proposed Droiect site is not tl� Date Document ActionlA royal Relationship to Proposed pro 1996 Addendum to Final EIR No_ Adopted by the County of Addressed proposed amendments to the Central 553 for the County of Orange Orange and Coastal NCCP/HCP to retied relevant Centrat and Coastal Subregion provisions of the Second Amendment to the Natural Community Newport Coast local Coastal Program (lCP). The Conservation Plan and Habitat amendments to the NCCPlHCP included a) Conservation Plan revisions to the Coastal Subarea Reserve to reflect new development and open space configurations provided for in the LCP Second Amendment; b) corresponding elimination of certain Special Linkage Areas, and c) provisions for infrastructure to be located in areas proposed to be added to the Coastal Subarea Reserve. The amendments to the Reserve System boundaries represent an overall increase In total acreage of the Coastal Subarea Reserve, and significant improvements in wikffife connectivity within the Reserve System. 1997 Addendum PA 970046 to EIR Certified by the County of . Addressed a modified development plan for one- No. 511 Orange half of Planning Area 3A, known as Development Area (DA) 3A -1. The proposed project site is not within DA 3A -1. 1997 Settlement Agreement between Agreement has been executed. Establishes maximum dwelling units by planning The Irvine Company, Friends of area and various other restrictions on Me Irvine Coast Laguna development, which are reflected in the proposed Graenbelt, Inc., and Stop project. Polluting Our Newport i tWS kafthued*=harnVWMP*rW0a%WHC • r � i r r , 0 0 EXHIBIT D SUMMARY OF COUNTY DEVELOPMENT APPROVALS The Components of the Development Plan include: A. Newport Coast Local Coastal Program Second Amendment Approved by the California Coastal Commission on October 10,1996; Certified by the County of Orange Board of Supervisors on December 3, 1996 (Resolution No. 96-861 and Ordinance No. 096 - 3974); and Certified by the California Coastal Commission on January 21, 1997; B. Newport Ridge Planned Community Program: Approved by the County of Orange Board of Supervisors on March 17, 1998 (Resolution Nos. 98 -87 and 98 -88; Ordinance No. 98 -3); C. Newport Coast Master Coastal Development Permit Seventh Amendment (PA 970152): Approved by the County of Orange Planning Commission on July 21, 1998; D. First Amendment to the Irvine Coast Development Agreement Recorded April 2, 1997 (No. 19970149745); and • lw Related secondary implementing approvals, permits and actions pursuant to and consistent with the foregoing (e.g., subdivision maps, individual coastal development permits, grading plan approvals and permits, etc.). r; EXHIBIT E MITIGATION MEASURES *he term Mitigation Measures includes, but is not limited to, the mitigation measures approved in conjunction with the certification or approval of the following environmental and planning documents. This Exhibit is for information only and does not constitute any modification or amendment or any mitigation measure or condition adopted with reference to the Project. The environmental documents listed in this Exhibit are on file in the Planning Department of the City of Newport Beach. Irvine Coastal Community General Plan Amendment, Final EIR No. 134; 2. Irvine Coast Local Coastal Program 80 -41Land Use Element Amendment 80-4; Supplemental EIR No. 237, LCP Implementation Action Plan; 3. FEIR No. 486, Irvine Coast Planned Community Development Agreement. Addendum for Development Agreement First Amendment 4. FEIR No. 485, Irvine Coast Planned Community Master Coastal Development Permit MCDP 88 -11P and Vesting "A° Tentative Tract Map No. 13337 5. Final EIR No. 511, Irvine Coast Planned Community, Phase I 6. Refined Master Drainage and Runoff Management Plan �. Addendum to FEIR No. 511 -PA 940113 Site Development Permit/Wishbone Hill Grading 8. Mitigated Negative Declaration No. IP -95 -100, Transportation Element Amendment 95-1 9. Natural Community Conservation Plan and Habitat Conservation Plan Joint Programmatic FEIR No. 553IFEIS 96 -26 10. Second Amendment to the Newport Coast Local Coastal Program Land Use Plan and Implementing Ordinance for the Newport Coast Planning Unit 11. Addendum to Final EIR No. 553 for the County of Orange Central and Coastal Subregion Natural Community Conservation Plan and Habitat Conservation Plan 12. Addendum PA 970046 to EIR No. 511 • 'J EXHIBIT F 0 • AFFORDABLE HOUSING IMPLEMENTATION PLANS The term Affordable Housing Implementation Plans refers to two plans prepared for the Environmental Management Agency of the County of Orange. The plan for that portion of the Property within the Coastal Zone - identified as the "Affordable Housing Implementation Plan - Irvine. Coast Planned Community" - was prepared by Affordable Housing Consultants and was approved by the County on October 29, 1991. The plan for the Newport Ridge - identified as the "Affordable Housing Implementation Plan — The San Joaquin Hills Planned Community" - was prepared by FORMA and was approved by the County on November 2, 1995. These Affordable Housing Implementation Plans are available for public inspection in the Planning Department of the City of Newport Beach during normal business hours. E 0 ! 1.11 AMENDED IN SENATE MAY 2, 2001 AMENDED IN SENATE APRIL 17, 2001 AMENDED IN SENATE MARCH 27, 2001 SENATE BILL No. 516 Introduced by Senator Johnson (Coauthor: Assembly Member John Campbell) February 22, 2001 An act to add Section 30519.2 to the Public Resources Code, relating to coastal planning, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 516, as amended, Johnson. Local coastal programs. (1) The California Coastal Act of 1976 requires that, after a local coastal program is certified and all implementing actions within the area affected become effective, the California Coastal Commission ceases to exercise any development review authority over any new development proposed within the area affected and delegates that authority to the local government that is implementing the local coastal program. This bill would require the County of Orange to exercise all development review authority pursuant to the certified local coastal program over those parcels and areas within the county, generally known as the "Annexed Area," upon the effective date of any reorganization or annexation by the City of Newport Beach that includes all or part of the Annexed Area. The bill would authorize the City of Newport Beach, at any time after the effeetive date e f the `=" that annexation, if it elects to assume 96 . Attachment C La J SB 516 —f?—. 0 coastal management responsibility for the Annexed Area, to begin preparation of a local coastal program for that area, and to adopt provisions of the County of Orange's certified local coastal program that would apply to the Annexed Area. The bill would require that specified statutes and regulations governing procedures for the preparation, approval, and certification of a local coastal program by the California Coastal Commission be applicable to the eiaq - adeptiex preparation, approval, and certification of a local coastal program for the Annexed Area. The bill would require the City of Newport Beach, if it deeides to apply #ef obtains certification of a local coastal program for the Annexed Area pursuant to those provisions, upon the effective date of that certification, to exercise all of the authority under the act granted to a local government with a certified local coastal program, and would provide that the aforementioned provisions requiring the County of Orange to exercise all development review authority pursuant to the certified local coastal program over those parcels and areas within the county defined as the Annexed Area shall become inoperative. The bill would require the City of Newport Beach to provide for a eertified submit to the commission for approval and certification on or before June 30, 2003, or 24 months after the effective date of the annexation of the Annexed Area, the city's local coastal program for all of the the ei"� limits within 36 menths of the efleetive date of the amex of all or paA of the Annexed Areft geographic area within the coastal zone and the city's corporate boundaries as of June 30, 2000. By requiring the City of Newport Beach to provide feF submit a eel local coastal program for specified territory that lies inside the city limits within a specified time period, the bill would impose a state - mandated local program. The bill would require the City of Newport Beach to submit a late fee of $1,000 per month to the commission, to be deposited into an account created by the bill, until the city commences implementation of an effectively certified local program, as specified. (2) The bill would state the findings and declarations of the Legislature that, due to unique circumstances applicable to the County of Orange, a statute of general applicability cannot be made applicable. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. 96 F J� 0 —3— n U SB 516 This bill would provide that no reimbursement is required by this act for a specified reason. (4) This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State - mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 30519.2 is added to the Public 2 Resources Code, to read: 3 30519.2. (a) (1) This seeEien subdivision shall only apply to 4 territory laeated within the Go" ef Ofange generally, known 5 described in paragraph (2) and defined as the "Annexed Area." 6 (2) For purposes of this section, "Annexed Area" means the 7 territory consisting of approximately 5,450 acres in the County of 8 Orange bounded to the north by the inland boundary of the coastal 9 zone, to the east by the western boundary of Crystal Cove State 10 Park, to the south by the state's outer limit of jurisdiction over the it Pacific Ocean, and to the west by the city limits of the City of 12 Newport Beach. 13 (b)- 14 (3) This seetiee shall ".'_.. effe subdivision shall be operative 15 upon the effective date of the annexation of all or part of the 16 Annexed Area by the City of Newport Beach. 17 (0- 18 (4) Upon the recordation of a certificate of completion of any 19 reorganization or change of organization that results in the 20 annexation of all or part of the Annexed Area by the City of 21 Newport Beach, both of the following shall occur: 22 (4i 23 (A) The local coastal program applicable to any part of the 24 Annexed Area shall continue to be the certified local coastal 25 program for the County of Orange. 26 {2} 27 (B) The County of Orange shall continue to exercise all 28 development review authority described in Section 30519, as 29 delegated to it by the commission pti-suant to consistent with the 30 certified local coastal program €eF of the County of Orange for the 31 Annexed Area. 96 I- i =i 5B 516 1 2 3 4 5 6 7. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 • • —4— (d) (1) (5) If, at any time after the during the 2901 peftion of the 2001 02 RegWar Session, recordation of the certificate of completion of the annexation of the Annexed Area, the City of Newport Beach elects to assume coastal management responsibility for the Annexed Area, the city may begin preparation of a local coastal program for that area The City of Newport Beach may adopt provisions of the County of Orange's certified local coastal program that shall apply to the Annexed Area. All of the procedures for the preparation, approval, and certification of a local coastal program set forth in this ehapter division, and any applicable regulations adopted by the commission, shall apply to theme preparation, approval, and certification of a local coastal program for the Annexed Area. (6) If the City of Newport Beach obtains certification of a local coastal program for the Annexed Area, the city shall, upon the effective date of that certification, exercise all of the authority granted to a local government with a certified local coastal program, and the provisions of paragraph (4) shall become inoperative. (b) On or before June 30, 2003, or 24 months after the annexation of the Annexed Area, whichever event occurs first, the City of Newport Beach shall submit to the commission for approval and certification the city's local coastal program for all of the geographic area within the coastal zone and the city's corporate boundaries as of June 30, 2000. The submittal may include a local coastal program segment for the Annexed Area that will implement F �z 0 5— SB 516 1 the local coastal program for the County of Orange as described 2 in paragraph (4) of subdivision (a). 3 (c) If the City of Newport Beach fails to submit a local coastal 4 program to the commission for approval and certification 5 pursuant to subdivision (b) or does not have an effectively certified 6 local coastal program within six months after the commission's 7 approval of the local coastal program, the City of Newport Beach 8 shall submit a monthly late fee of one thousand dollars ($1,000) 9 to the commission, to be deposited into the Newport Beach Local 10 Coastal Program Forfeiture Account, which is hereby created in I1 the General Fund. Moneys in the account may be expended, on 12 appropriation by the Legislature, for purposes of coastal 13 preservation and protection. The City of Newport Beach shall pay 14 the monthly late fee until the time that the city commences 15 implementation of an effectively certified local coastal program. 16 The city may not recover the cost of the late fee from any owner or 17 lessee of property in the coastal zone. 18 SEC. 2. The Legislature finds and declares that, due to the 19 unique circumstances applicable to the territory generally known 20 as the Annexed Area within the County of Orange relating to the 21 certified local coastal program for the county, a statute of general 22 applicability cannot be made applicable within the meaning of 23 subdivision (b) of Section 16 of Article IV of the California 24 Constitution. 25 SEC. 3. No reimbursement is required by this act pursuant to 26 Section 6 of Article XII1 B of the California Constitution because 27 a local agency or school district has the authority to levy service 28 charges, fees, or assessments sufficient to pay for the program or 29 level of service mandated by this act, within the meaning of 30 Section 17556 of the Government Code. 31 SEC. 4. This act is an urgency statute necessary for the 32 immediate preservation of the public peace, health, or safety 33 within the meaning of Article IV of the Constitution and shall go 34 into immediate effect. The facts constituting the necessity are: -ht 35 In deciding to annex territory in the coastal zone, as defined in 36 Section 30103 of the Public Resources Code, generally known as 37 the "Annexed Area ",, Area, " the City of Newport Beach seeks to 38 preserve the open -space dedications and entitlements protected by 39 an existing certified local coastal program. At the same time, in 40 order to effectively fund police and fire protection services among 96 0 a I ,0 0 SB 516 —6— 1 municipal services to the area, the city needs the property tax 2 revenues from the Annexed Area to be allocated to the city for the 3 2002 -03 fiscal year. IC 96 0 �(1 0 • ITEM 32 NEWPORT BEACH CITY COUNCIL,' June 26, 2001 Regular Meeting J TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager SUBJECT: Amendments to the Annexation and Development Agreement for the Newport Coast -- ADDENDUM At the Planning Commissions June 21, 2001 hearing on this matter, the Commission approved a motion to recommend that the Council approve the proposed amendments to the Development Agreement. The Commission also accepted staffs suggestion to make additional non - substantive amendments to the Development Agreement. These include: ► A correction and update of development approvals under Exhibit D to the Development Agreement (please insert into your packet). ► Corrections to Sections 4.4 (a) and (b). These corrections are provided to the Council in corrected form on a new Page 13 for the DevelgRment Agreement and are summarized on a new Attachment A to the Staff Report - please insert both the new Page 13 and the updated Attachment A into your packet. • • EXHIBIT D Summary of County Development Approvals The components of the Development Plan include: A. Newport Coast Local Coastal Program 2nd Amendment and all further amendments adopted before the City assumes permit issuing authority for the property as provided for within this Agreement. The Newport Coast Local Coastal Program, 2nd Amendment was approved by the California Coastal Commission on October 10,1996; certified by the County of Orange Board of Supervisors on December 3,1996 (Resolution No. % -861 and Ordinance No. 096- 3974); and Certified by the California Coastal Commission on January 21,1997; B. Newport Ridge Planned Community Program: Approved by the County of Orange Board of Supervisors on March 17,1998 (Resolution Nos. 98087 and 98 -88; Ordinance No. 98-3); C. Newport Coast Master Coastal Development Permit 7w Amendment (PA 970152); Approved by the County of Orange Planning Commission on July 21,1998; D. First Amendment to the Irvine Coast Development Agreement: Recorded April 2,1997 (No. 19970149745); and E. Related secondary implementing approvals, permits, and actions pursuant to and consistent with the foregoing (e.g. subdivision maps, individual coastal development permits, grading plan approvals and permits, etc.). 0 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard durational limits of any appliGable permits issued to OWNER pursuant to Development Approvals. 4.4 Changes and Amendments. The parties acknowledge that Development of the Project w41-444celymaY require Subsequent Development Approvals_, and that sennestien thBF9 ith OWNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to pfie-r-Development Approvals or the Development Plan to effect date such change, whish and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan that aFe unless the proposed modifications: La -would materially- reduce the amount of open space intended for dedication to the public, or (b) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (c) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (d) would materially increase the density and/or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY's Traffic Phasing Ordinance. 13 Newport Coast Annexation and Devopment Agreement -- Summary oo10 Proposed Changes (Attachment A) Development Agreement Section Version .Approved October 24, 2000 As Proposed to be Amended Newport Coast DA Summary June 26, 2001 Newport Beach City Council so Diswsses rationale behind Development Agreernenl, tads and figures Non -substantive clmnges to note Coastal Commission approvals, Recitals about The Newport Coast, the City, and the property owner. proper aueage, more. _— 1 Deflnifions and Exhibits 'Defines terms used In the Agreement, sets forth exhibit descriptions Minor change to exhibit citations (p6.7). 2 General Provisions Binds the qty to adhere to fix; Agreement. explains how City will — Binding Effect of Agreement Minor technical change(pe). .2.1 Idelegate, certain land use authority to the County. i Decdbes how TIVs obligations under the Agreement terminate when a .2.2 j — Assignment by TIC residential lot is sold and has its C of O Issued and for commercial lots Grammatical, nonsubstanlfve changes (p8 -9). 1 ;when such lot has been fully improved and occupied. i 3 Pre - Annexation Obligations and Commitments Expressly authorizes TIC to fully develop the property if the fallowing I3.1 — Annexation of Property Authorizes City to annex the Newport Coast if LCP can be preserved co eions a W 58 518 or similar, 1 met intact and if City grants County all land use authority. (b) City transfer of municipal land use authority to County via JPA a similar ordinance or agreement 910). 132 - Describes understanding that: :(1) E112s that Minor change to exhibit eitations (pto -11). all completed and annexation shall not require additional — Environmental Impacts and Mitigation i IDescrilles frog that annexation does not require EIR since 8 does ie) TIC has m tlooument d. of (2) TIC has met partn, good. other standards for development already. not change development entitlement (pl1). 3.3 — Additional Pre- Anrrexetion Understandings Acknowledges that affordable Musing requirements have been met for Minor change to exhibit citation, grammatical change (P11 -12). TNC * traffic Im miti ed 3.4 — Cooperation ITIC will support City's annexation effort No Change 3.5 — Termination of Annexation Proceedings ITIC can temdnare if City doesn't meet is wmmiNtents !Nnor grammatiml dW (p12). Development of the Property Unpon Annexation and 4 Adoption of the Development Plan Ciry, expressly declares Mat City will not lake any action that will 4.1 — Rights to Develop I ;ITIC can develop the properly to full emitlemert. linterfere with development approvals, including causing perms tirg or development review to come to the City without TIC's consent unless Isfullyd nlvelo 12. — Effect of Agreement on Land Use 12egWations Agreement will not change approved lard use regulations Ne Change 142 4.3 — Timing of Development TIC can develop property according to a timeline set only b)' 71C :Minor grammatical change (pl3). i TIC Trey apply for changes to ft development approvals. Coto tty will iII process such changes. City will support TIC's changes uNess the a.a C and Amendments — Changes chargeu. (Clarifies how such changes can be approved City reduce open specs; Pp by y — no substantive 1(a) (b) alter the cost of providing services; changes to"to the lex (pl3.10). �(c) reduce properly tax revenue; . (d) increase density or intensity; Newport Coast DA Summary June 26, 2001 Newport Beach City Council so Newport Coast Annexation and Deve-fopment Agreement -- Summary A Proposed Changes (Attachment A) 4 Adoption of the Development Plan (corl 14.5 – Continuation or Irvine Coast Development Agreement i4.6 – Monitoring of Project i 5 Financing of Public Improve 15.1 – Formation of Financing Dafticts 52 – TIC's dohl to construct facilities After Annexation I i Not in 2000 version can construct govern charge (p14). IAUthorizes City to enter property to ensure the development proceeds .in compliance with development approvals and all approvals 'material Ito the issue of water quality and aesthetics.' (pl4). so No Change • • 6.1 – Periodic Review DA review every year NO U range 62 – Special Review City can order a special review at City's cost No Change ,a _ Omrar„re rmrnrilv,c hnw tln review will nrnr, r No Chancre IS4 7 – Certificate of Agreement Compliance Default and Remedies – Specific Performance Available City will issue a certificate of compliance al completion of review if DA No Change is n compliance I Describes that specific performance of any remedy is appropriate rather' ' I No Change than monetari, damages 7.1 7,2 – Restitution of Improper Development Fees Any improper City development fees can be recoved by TIC Typographical error correction (pl7). 7.3 – Termination of Agreement - Describes how Agreement can be terminated No Charge 7.4 –TIC's right to terminate upon specified events TIC can terminate if market changes No Charge 8 I Third Party Litigation City and TIC will cooperate in any litigation against DA No Change 9 1 Mortgagee Protection ,DA nor City shall not prevent TIC from securing financing No Charge 10 Miscellaneous Provisions Exhibits – A '—I Variety of technical provisions, including term, notices, severability. ILegal Description of the Property IChanges signature blocks (p23) MEMO lCoriforms late changes per the LAFCO submission – B Map Cmforms late changes per the LAFCO submission – C Planning and Environmental History No Changes – D Summary of County Development Approvals Updales to reflect most recent development approvals – E Oowments mitigatlon measures No Changes –F Affordable Housing Implementation Plans No Changes Newport Coast DA Summary June 26, 2001 Newport Beach City Council O13a having unsatisfactory levels of service taking into account the circulation improvements constructed or facilitated by OWNER pursuant to conditions imposed for development of the Project, including construction of Newport Coast Drive, extension of San Joaquin Hills Road, widening of Pacific Coast Highway, and facilitation of construction of the San Joaquin Hills Transportation Corridor. 3.4 Cooperation. Subject to and in reliance upon the representations and covenants of the CITY herein, OWNER will support the annexation of the Property by the CITY. 3.5 Termination of Annexation Proceedings. This Agreement may be terminated by OWNER in the event that CITY fails to comply with the requirements of Paragraph 3.1 above with respect to any proposed annexation of Property to CITY, or if conditions imposed by or through the Local Agency Formation Commission on the annexation are determined by either party to conflict materially with its rights and obligations under any provision of this Agreement. 4 DEVELOPMENT OF THE PROPERTY UPON ANNEXATION AND ADOPTION OF THE DEVELOPMENT PLAN. Following annexation of the Property by CITY, the following provisions shall apply: 4.1 Rights to Develop. Subject to the terms of this Agreement, following annexation of the Property OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. Pending annexation to CITY, OWNER shall have the right to seek approvals from County for the Development of the Property, and to develop the Property, consistent with the Development Plan. CITY expressly agrees to take no action that would or could (a) interfere with or impair the Development Approvals (b) interfere with or impair the OWNER's ability to complete the project (c) materially increase the cost of completing the project without the OWNER's express written consent: or (d) cause the transfer of any permitting or development review authority pursuant to State or local law. including Government Code section 30519, from the County to the City or any other agency until such time as that 4.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable 12 • • to Development of the Property, shall be those contained in the Development Plan and those Land Use Regulations not inconsistent with the Development Plan a_n tMMM ev, i Kru Irof6 B cc e ancf4effect O , J p=, & 2,'Q51. 4.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, that the failure of the parties therein to provide for the timing of Development resulted in a later adopted initiative restricting the timing of Development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Nothing in this section is intended to alter the standard durational limits of any app}isable permits issued to OWNER pursuant to Development Approvals. 1 4.4 Changes and Amendments. The parties acknowledge that Development of the Project w4144elyma require Subsequent Development Approvals. ^a that ;^ GeRRGGtiGR 4htweu41 OWNER may determine that changes in the existing Development Approvals or Development Plan are appropriate and desirable. In the event OWNER finds that such a change is appropriate or desirable, OWNER may apply in writing for an amendment to p4Gf- Development Approvals or the Development Plan to effect sate such change -, w4wA and the application shall be processed for approval by County. CITY shall expressly permit and authorize modifications of any proposed changes in the existing Development Approvals or Development Plan that tRRt 'th the 1 d Use C1.... eRt Ele6iq atiG G fee the PFe eF+ , pOIZO- nJ[OTIC'VV"RTTZTI .rRTISp.�Ci GlGTI"II TT'�Gp, ..'.... .� unless the proposed modifications_ (al - would materially- reduce the amount of open space intended for dedication to the public, or (b) would materially alter the cost of providing municipal services to the Property subsequent to annexation, or (c) would materially reduce the amount of property tax or other revenue available to the CITY after annexation, or (d) would materially increase the density and /or intensity of development allowed in the Project as a whole, resulting in unacceptable intersection impacts outside of the Project that cannot be mitigated pursuant to the CITY'S Traffic Phasing Ordinance. 13 Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange County, California. Number A•6214, September 29, 1961, and A•24671 June 11, 1967. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of .eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH -COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City_of Costa Mesa, County of-Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the following dates: June 16, 2001 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on June 16 ?0�1 at Costa Mesa, California. Signature �— • (,�1 at�� oti RECEIVED '01 AN 25 P 1 :49 OFFICE OF THE CITY CLERK. CITY OF NEWPORT BEACH ment, and that the City of Newport Beach in- ' tends to use mid docu- ment for the above noted proIject, and further mat Ihere ere no additional reasonable al- tori or mitigation measures that should be considered in conjunc- tion with sold project. I Copies of the previously t are avallaole : review an m- at the Planning ant. City of J Notice Is hereby PUBLIC HEARING further given that said NOTICE ublic hearing will be Reid Development on the 26thda of dour Agreement No. 14 June, 2001, at the Coastf of 7:00 p.m. in the Coun- cil Chambers of the Ridge Development Newport Beach City Agreement) Hall. 3300 Newport Sou - NOTICE IS HEREBY levaid. Newport Beach, GIVEN that the City California, at which time Council of the City 0" and place any and all Newport Beach will hold persons interested may st public hearing on the appear and be heard application of City of thereon. If you challenge Newport Beach, on this project in own, you behalf of The Irvine may be limited to raising Company, properly only those Issues you or owner, for Develop• someone else raised at ment Agreement No. the public hearing de- 14 (Newport Coast/ scribed in this notice or Ridge Development in written cor. Agreement) on propeny respondence delivered located at Newport to the City at, or prior to, Coast, Newport Ridge, the public hearing. For and adjacent properties information call (949) within the pending An- 644 -3200. negation Area. The /Sit Lavonne M. property is located in the 1larkless, City Clerk PC District. City of Newport Beach Request to amend Published Newport Development Agree. Beech -Costa Mesa ment No. 14 (Newport Daily Pilot June 16, Coast/Ridge Develop. 2001 Sa524 ment Agreement) to establish procedures for administering the Newport Coast local coastal program (LCP) and for monitoring we- ter quality Improve- ments. NOTICE IS HEREBY FURTHER GIVEN that all significant environmental concerns for the proposed pro7'ect have been addressed In a previously certified ment, and that the City of Newport Beach in- ' tends to use mid docu- ment for the above noted proIject, and further mat Ihere ere no additional reasonable al- tori or mitigation measures that should be considered in conjunc- tion with sold project. I Copies of the previously t are avallaole : review an m- at the Planning ant. City of J PUBLIC HEARING NOTICE Development Agreement No. 14 (Newport Coast/Ridge Development Agreement) NOTICE IS HEREBY GIVEN that the City Council of the City of Newport Beach will hold a public hearing on the application of City of Newport Beach, on behalf of The Irvine Company, property owner, for Development Agreement No. 14 (Newport Coast/Ridge Development Agreement) on property located at Newport Coast, Newport Ridge and adjacent properties within the pending Annexation Area. The property is located in the PC District. Regnest to amend Development Agreement No. 14 (Newport Coast/Ridge Development Agreement) to establish procedures for administering the Newport Coast local coastal program (LCP) and for monitoring water quality improvements. NOTICE IS HEREBY FURTHER GIVEN that all significant environmental concerns for the proposed project have been addressed in a previously certified environmental document, and that the City of Newport Beach intends to use said document for the above noted project, and further that there are no additional reasonable alternative or mitigation measures that should be considered in conjunction with said project. Copies of the previously prepared environmental document are available for public review and inspection at the Planning Department, City of Newport Beach, 3300 Newport Boulevard, Newport Beach, California, 92658 -8915 (949) 644 -3200. Notice is hereby further given that said public hearing will be held on the 26th day of June, 2001, at the hour of 7:00 p.m. in the Council Chambers of the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, at which time and place any and all persons interested may appear and be heard thereon. If you challenge this project in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City at, or prior to, the public hearing. For information call (949) 644 -3200. fAY4 -JV % I� Pi ►off �axed io MOW po�-CArAS N41 11rd Pod b11 (D Lavonne M. Harkless, City Clerk {� pvx nt City of Newport Beach 2 IcY.�fi��s— bj►loi