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HomeMy WebLinkAboutBeacon Bay, 911 RECORDING REQUESTED BY: WHEN RECORDED MAIL TO: California Coastal Commission 725 Front Street, Suite 300 Santa Cruz, CA 95060-4508 Attn: legal Division i Recorded In Official ReCorde, Orange County Tom Daly, Clerk•Reoorder IIJ1191111111011VIICIIIIIIII IIIII1101111 57.00 2009000159473 02:22pm 04/02/09 117 02 R2919 0.00 0.00 0.00 0.00 61.00 0.00 0.00 0.00 DEED AND LEASE RESTRICTION WHEREAS, The City of Newport Beach a chartered municipal corporation (hereinafter referred to as "Owner / Lessor") is the record owner of the real property described in Exhibit A, attached hereto and incorporated herein by reference (hereinafter referred to as the "Property"); and II. WHEREAS, on June 28, 1994, Owner/Lessor conveyed to Peter J. Shea, Trustee of the Shea.QPRT I dated October 28 1998 and Lynda W Shea, Trustee of the Shea OPRT 111 dated October 28 1998 as disclosed by Memorandum of Lease recorded December 7 1994 as Instrument No 94-701481 of the Official Records of Orange County. California (hereinafter referred to as "Lessee") a leasehold interest in the Property (hereinafter referred to as the "Lease") [the original lease was entered into between the Owner/Lessor and Peter J. Shea and Lynda W. Shea as individuals, but their individual interests were subsequently conveyed to the Shea QPRT I and Shea QPRT III trusts, respectively); and III. WHEREAS, the California Coastal Commission (hereinafter referred to as the "Commission") is a public agency created and existing under the authority of section 30300 of the California Public Resources Code (hereinafter referred to as the "PRC"), a section of the California Coastal Act of 1976 (Division 20 of the PRC; hereinafter referred to as the "Act'); and 1V. WHEREAS, the Property is located within the coastal zone as defined in the Act (PRC § 30103); and Document Number: 2009000159473 Page: 1 of 18 0 0 V. WHEREAS, pursuant to section 30600(a) of the PRC, Lessee applied to the Commission for a coastal development permit to undertake development, as defined in the Act (PRC § 30106), on the Property; and VI. WHEREAS, on November 13, 2008, the Commission conditionally approved coastal development permit number 5-08-118 (hereinafter referred to as the "Permit"), subject to, among other conditions, the conditions listed under the heading "Special Conditions" in the Notice of Intent to Issue Permit dated November 20, 008, attached hereto as EXHIBIT B and incorporated herein by reference (hereinafter referred to as the "Special Conditions"), for the reasons stated in the "Findings and Declarations" adopted by the Commission in support of its action, which findings and declarations (along with any other documents that the Permit required to be submitted to the Commission and with which the Permit requires compliance) are available from the Commission upon request; and VI. WHEREAS, tite Commission found that, but for the imposition of the Special Conditions, the proposed development could not be found consistent with the provisions of the Act and that a permit could therefore not have been granted; and VII. WHEREAS, Lessee has elected to comply with the Special Conditions, which require, among other things, execution and recordation of this Decd and Lease Restriction, so as to enable Lessee to undertake the development authorized by the Permit; NOW, THEREFORE, in consideration of the issuance of the Permit to Lessee by the Commission, the undersigned Owner/Lessor and Lessee, for themselves and for their heirs, assigns, and successors -in -interest, hereby irrevocably covenants with the Commission that the Special Conditions (shown in Exhibit B hereto) shall at all times on and after the date on which this Deed and Lease Restriction is recorded constitute for all purposes covenants, conditions and restrictions on the use and enjoyment of the Property that are hereby attached to the deed to the Property as fully effective components thereof. Document Number: 2009000159473 Page: 2 of 18 DURATION. (a) This Deed and Lease Restriction shall remain in full force and effect and shall bind Owner/Lessor and Lessee and all their assigns or successors -in - interest during the period that either the development authorized by the Permit, or any part or modification thereof, or the Permit, or any modification or amendment thereof, remains in existence on or with respect to, and thereby confers benefit upon, the Property. (b) Furthermore, in the event of a termination or extinguishment of this Decd attd Lease Restriction other than pursuant to a Commission -approved amendment to the Permit, the Special Conditions shall, notwithstanding any such termination or extinguishment, continue to restrict the use and enjoyment of the Property as they did prior to that termination or extinguishment and to bind Owner/Lessor and Lessee and their successors -in -interest, so long as either or both of the conditions described in paragraph (a) continue to exist on or with respect to the Property. 2. TAXES AND ASSESSMENTS. It is intended that this Deed and Lease Restriction is irrevocable and shall constitute an enforceable restriction within the meaning of a) Article XIII, section 8, of ttte California Constitution; and b) section 402.1 of the California Revenue and Taxation Code or successor statute. Furthermore, this Deed and Lease Restriction shall be deemed to constitute a servitude upon and burden to the Property within the meaning of section 3712(d) of the California Revenue and Taxation Code, or successor statute, which survives a sale of tax -deeded property. RIGHT OF ENTRY. The Commission or its agent may enter onto the Property at times reasonably acceptable to Owner/Lessor and Lessee to ascertain whether the use restrictions set forth above are being observed. 4. REMEDIES. Any act, conveyance, contract, or authorization by Owner/Lessor and Lessee, whether written or oral, which uses or would cause to be used or would permit use of the Property contrary to the terms of this Deed and Lease Restriction will be deemed a violation and a breach hereof, The Commission and Owner/Lessor and Lessee may pursue any and all available legal and/or equitable remedies to enforce the terms and conditions of this Deed and Lease Restriction. In the event of a breach, any Document Number: 2009000159473 Page: 3 of 18 0 0 forbearance on the part of either party to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach. S. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired. Dated: 20,9 f The City of New ort Beach, a chartered municipal corporation LESSOR Signed:A-� Homer Bludau, City Manger Shea QPRT 1, dated October 28, 1998 and Shea QPRT Bl, dated October 28, 1998 LESSEE Peter 1. Shea, Trustee of the Shea QPRT 1, dated October 28, 1998 j/ SigneLT� Shea QPWI' Ill, dated October 28, 1998 *** NOTARY ACKNOWLEDGMENT ON THE FOLLOWING PAGE*** Document Number: 2009000159473 Page: 4 of 18 0 State of California Countyof WN6E — J On rl 2-0M before me 1-I1-LiAN tUAsHIN6?7 K. personally appeared ITf[•rj�aryA1 L �l�DA�i N�rau o n�rca who proved to me on the basis of satisfactory evidence to be the person(O�Nhose name IS77 Esubscdbed to the within Instrument and acknowledged to me that he/sKi'llt^yt executed the same in hisaipi; 1eQauthorized r�nu capacityi'w ,,and that by hI&4) I'th40 signatureXon the ewrwa�nww instrument thekersonok or the entity upon behalf of which the perscnK executed the Instrument. MMM I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. WITNESS my hand rat a 1. Signature 91p.wNmdNobry PWNe paica Notary sow AOow OPTIONAL Through rhe Information below Is not required by law, it may prove valuabfe to persons retying 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: Document Date: Slgner(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: _ I I Individual I I Corporate Officer—Tllle(s): ❑ Partner—I Limited O General u Attorney In Feet MIERM upor atumGneie n Trustee • Guardian or Conservator U Other: Signer Is Representing: Number of Pages: Signer's Name: r, Individual 1--, Corporate Officer —Tllle(s)• ❑ Partner — C Limited ❑ General C Attorney In Fact 11 Trustee • Guardian or Conservator u other: Signer Is Representing: 62001Nabml Nrhvy AuorJrren•B350 ba scbAh,P0 Box 2102•Chatsaalh.CA 9r0t32402•wNe NatmaNderyap 1W IS907 aeadar:CJlM n�ro lA0LL5/66BT7 Document Number: 2009000159473 Page: 5 of 18 i 0 GOVERNMENT CODE 27361.7 I certify under penalty of perjury that the notary seal on the document to which this statement is attached read as follows: NAME OF THE NOTARY; DATE COMMISSION EXPIRES: TnIXn aC�] -- COUNTY WHERE BOND IS FILED:�GE. COMMISSION NUMBER: (�l o 15 o MANUFACTURERIVENDER NUMBER: NNN AL' PLACE OF EXECUTIOX).�W ' "If DATE: AOL-' �; I certify unde4,knalty of perjury and the laws of the State or cautorma roar portion of this document to which this statement is attached reads as follows: a..r � ow;M Nw �uM� Place ofExecution Iv 414^� Slgnafurc r Document Number: 2009000159473 Page: 6 of 18 0 0 STATE OF CALIF yRNIA� p COUNTY OF I_IL I_k On f�L before�e, 1 l!uV1 Notary Publi ,personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person($), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. MAN ONE HOWELL CWW don s 1616108 tkwry ME1c - Co81om10 Cry Count/ Signahtro (Seal)*1WCcrnrn.En*"F@b21,201 STATE OF CALIFORNIA COUNTY 4OFOn before mNotary Pubersonally appeared ' who proved to me on the basis of satisfactory' evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. MAN ,NHE MrnYEtL carmldon r 161aN Signatu (Seal)MtV ►°"s° 1,tyCprtvn, ExptMtyb21.201 Document Number: 2009000159473 Page: 7 of 18 0 EXHIBIT A L, (Legal Description of Property) Document Number: 2009000159473 Page: 8 of 18 EXHIBIT Bay Lot ;_described as follows: Lot 9 as shown on the map filed in Book 9, Page 42 and 43 of Record of Surveys, In the office of the County Recorder, County of Orange, State of California. Document Number: 2009000159473 Page: 9 of 18 0 0 \ x a TZ Z, V pAR /'ic Exhibit A Document Number: 2009000159473 Page: 10 of 18 0 Jan 13'09 04:29p Vincent DlBlasl 949.7159857 P.12 EXHIBIT B (Notice of Intent to Issue Permit) Document Number: 2009000159473 Page: 11 of 18 L`R'I-Lfr ,T STATE OF CALIFORNIA • THE RESOURCES AGENCY ARNOLD SCHWARZENEGGER Govemor CALIFORNIA COASTAL COMMISSION SOUTH COAST DISTRICT OFFICE _ PO BOR 1450 M Oceaagale,10th Floor Long Basch, CA 99902.4470 Date: November 20, 2008 (0021 5905011 www.constal.ca.gov Permit Application No.: 5-08-118 Page: 1 of 6 NOTICE OF INTENT TO ISSUE PERMIT (Upon satisfaction of special conditions) THIS IS NOT A COASTAL DEVELOPMENT PERMIT THE SOLE PURPOSE OF THIS NOTICE IS TO INFORM THE APPLICANT OF THE STEPS NECESSARY TO.OBTAIN A VALID AND EFFECTIVE COASTAL DEVELOPMENT PERMIT ("CDP"). A Coastal Development Permit for the development described below has been approved but is not yet effective. Development on the site cannot commence until the CDP is effective. In orderfor the CDP to be effective, Commission staff must Issue the CDP to the applicant, and the applicant must sign and return the CDP. Commission staff cannot issue the CDP until the applicant has fulfilled each of the "prior to issuance" Special Conditions. A list of all of the Specis The Commission's approval of the CDP is valid for two years from the date of approval. To prevent expiration of the CDP, you must full the "prior to issuance" Special Conditions, obtain and sign the CDP, and commence development within two years of the approval date specified below. You may apply for an extension of the permit pursuant to the Commission's regulations at Cal. Code Rags, title 14, section 13169. On November 13, 2008, the California Coastal Commission approved Coastal. Development Permit No. 5-08.118, requested by Peter & Lynda Shea subject to the attached conditions, for development consisting of: Demolition of an existing single-family residence and construction of a new bay - fronting, 3,809 square foot, 29 -feet above finished grade, two-story single-family residence with a 400 square foot roof deck and an attached 622 square foot three (3) -car garage. Grading will consist of 50 cubic yards of cut and 50 cubic yards of fill. More specifically described in the application file In the Commission offices. The development is within the coastal zone at 9 Beacon Bay, Newport Beach (Orange County) 050.221.13, 988-089-341, ,04-T, c � If-, Document Number: 2009000159473 Page: 12 of 18 r NOTICE OF INTENT TO ISSUE PERMIT (Upon satisfaction of special conditions) Permit Application No.: 5-08-118 Page 2 of 6 If you have any questions regarding how to fulfill the "prior to issuance" Special Conditions for CDP No. 5-08-118, please contact the Coastal Program Analyst Identified below. Sincerely, PETER M. DOUGLAS Executive Director By: Fernie Sy Coastal Program Analyst ACKNOWLEDGMENT The undersigned permittee acknowledges receipt of this Notice and fully understands its contents, including all conditions imposed. pry 21.11"A T, AT"-- � sy �rX ) Date Permittee j/iec Please sign and return one copy of this form to the Commission office at the above address. STANDARD CONDITIONS 1. Notice of Receipt and Acknowledgment. The permit is not valid and development shall not commence until a copy of the permit, signed by the permittee or authorized agent, acknowledging receipt of the permit and acceptance of the terms and conditions, Is returned to the Commission office, 2. Expiration. If development has not commenced, the permit will expire two years from the date on which the Commission voted on the application. Development shall be pursued in a diligent manner and completed in a reasonable period of time. Application for extension of the permit must be made prior to the expiration date. 3. Interpretation. Any questions of intent or Interpretation of any condition will be resolved by the Executive Director or the Commission. 4. Assignment. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all terms and conditions of the permit. 5, Terms and Conditions Run with the Land. These terms and conditions shall be perpetual, and it is the intention of the Commission and the permittee to bind all future owners and possessors of the subject property to the terms and conditions. Document Number: 2009000159473 Page: 13 of 18 0 NOTICE OF INTENT TO ISSUE PERMIT (Upon satisfaction of special conditions) Permit Application No.: 5-08-118 Page 3 of 6 SPECIAL CONDITIONS: ASSUMPTION OF RiSK, WAIVER OF LIABILITY AND INDEMNITY By acceptance of this permit, the applicants acknowledge and agree (i) that the site may be subject to hazards from flooding and wave uprush; (ii) to assume the risks to the applicants and the property that is the subject of this permit of injury and damage from such hazards in connection with this permitted development; (Iii) to unconditionally waive any claim of damage or liability against the Commission, its officers, agents, and employees for Injury or damage from such hazards; and (iv) to indemnify and hold harmless the Commission, its officers, agents, and employees with respect to the Commission's approval of the project against any and all liability, claims, demands, damages, costs (including costs and fees incurred in defense of such claims), expenses, and amounts paid in settlement arising from any injury or damage due to such hazards. 2. NO FUTURE SHORELINE PROTECTIVE DEVICE A. By acceptance of this permit, the applicants agree, on behalf of themselves and all other successors and assigns, that no shoreline protective devlce(s) shall ever be constructed to protect the development approved pursuant to Coastal Development Permit No. 5-08-118 including, but not limited to, the residence, garage, foundations, and patio, and any future improvements, in the event that the development is threatened with damage or destruction from waves, erosion, storm conditions or other natural hazards in the future. By acceptance of this permit, the applicants hereby waive, on behalf of themselves and all successors and assigns, any rights to construct such devices that may exist under Public Resources Code Section 30235. B. By acceptance of this permit, the applicants further agree, on behalf of themselves and all successors and assigns, that the landowners shall remove the development authorized by this permit, Including the residence, garage, foundations, and patio, if any government agency has ordered that the structure is not to be occupied due to any of the hazards identified above. In the event that portions of the development fall to the beach before they are removed, the landowners shall remove all recoverable debris associated with the development from the beach and ocean and lawfully dispose of the material In an approved disposal site. Such removal shall require a coastal development permit. Document Number: 2009000159473 Page: 14 of 18 NOTICE OP INTENT TO ISSUE PERMIT (Upon satisfaction of special conditions) Permit Application No.: 5-08-118 Page 4 of 6 3. FUTURE DEVELOPMENT This permit is only for the development described in Coastal Development Permit No. 5- 08-118. Pursuant to Title 14 California Code of Regulations Section 13250(b)(6), the exemptions otherwise provided in Public Resources Code Section 30610(a) shall not apply to the development governed by Coastal Development Permit No. 5-08-118. Accordingly, any future improvements to the single-family house authorized by this permit, Including but not limited to repair and maintenance Identified as requiring a permit in Public Resources Section 30610(d) and Title 14 California Code of Regulations Sections 13252(a) -(b), shall require an amendment to Permit No. 5-08-118 from the Commission or shall require an additional coastal development permitfrom the Commission orfrom the applicable certified local government. 4. DRAINAGE AND RUN-OFF CONTROL PLAN The applicants shall conform with the drainage and run-off control plan received on July 10, 2008 showing roof drainage and runoff from all impervious areas directed to percolation pits or pervious areas or vegetated/landscaped areas.. Any proposed changes to the approved plan shall be reported to the Executive Director. No changes to the approved plan shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is required. 5, REVISED LANDSCAPE PLAN A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicants shall submit, for the review and approval of the Executive Director, two (2) full sized sets of revised. landscape plans that demonstrate the following: (1) The plan shall demonstrate that: (a) All landscaping shall consist of native or non-native drought tolerant non-invasive plant species. No plant species listed as problematic and/or invasive by the California Native Plant Society (http://www.CNPS.oro/), the California Invasive Plant Council (formerly the California Exotic Pest Plant Council) (htto://www.cal-ioc.om/), or as may be Identified from time to time by the State of California shall be employed or allowed to naturalize or persist on the site. No plant species listed as a "noxious weed" by the State of California or the U.S. Federal Government shall be utilized within the property. All plants shall be low water use plants as Identified by California Document Number: 2009000159473 Page: 15 of 18 NOTICE OF INTENT TO ISSUE PERMIT (Upon satisfaction of special conditions) Permit Application No.: 5-08-118 Page 5 of 6 Department of Water Resources (See: hfo://wwwowuewater.ca.clov/docs/wucols00.pdf). Any existing landscaping that doesn't meet the above requirements L shall be removed; ? % — (b) All planting shall provide 90 percent coverage within 90 days r and shall be repeated if necessary to provide such coverage; and (c) All plantings shall be maintained in good growing condition throughout the life of the project, and whenever necessary, shall be replaced with new plant materials to ensure continued compliance with the landscape plan; (2) The plan shall include, at a minimum, the following components: (a) A map showing the type, size, and location of all plant materials that will be on the developed site, the temporary Irrigation system, topography of the developed site, and all other landscape features, and (b) a schedule for installation of plants. B. The permittee shall undertake development in accordance with the approved plan. Any proposed changes to the approved final plan shall be reported to the Executive Director. No changes to the approved final plans shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is legally required. 6. DEED AND LEASE RESTRICTION PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant shall submit to the Executive Director for review and approval documentation demonstrating that the landowner(s) and lessor have executed and recorded against the parcel(s) governed by this permit a deed and lease restriction, in a form and content acceptable to the Executive Director: (1) indicating that, pursuant to this permit, the California Coastal Commission has authorized development on the subject property, subject to terms and conditions that restrict the use and enjoyment of that property; and (2) imposing the Special Conditions of this permit as covenants, conditions and restrictions on the use and enjoyment of the Property. The deed and tease restriction shall Include a legal description of the entire parcel or parcels governed by this permit. The deed and lease restriction shall also indicate that, in the event of an extinguishment or termination of the deed and Document Number: 2009000159473 Page: 16 of 18 NOTICE OF INTENT TO ISSUE PERMIT (Upon satisfaction of special conditions) Permit Application No.: 5-08-118 Page 6 of 6 lease restriction for any reason, the terms and conditions of this permit shall continue to restrict the use and enjoyment of the subject property so long as either this permit or the development it authorizes, or any part, modification, or amendment thereof, remains in existence on or with respect to the subject property. NOTE: IF THE SPECIAL CONDITIONS REQUIRE THAT DOCUMENT(S) BE RECORDED WITH THE COUNTY RECORDER, YOU WILL RECEIVE THE LEGAL FORMS TO COMPLETE (WITH INSTRUCTIONS). IF YOU HAVE ANY QUESTIONS, PLEASE CALL FERNIE SY OF THE LONG BECH DISTRICT OFFICE. 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O (D = C+ O X C -F n O = G (D CT (D C: SL :5 ('+ a. C1 = (D (D � 7� N rD O ca 5: :5 N :n :3 rD O O 0- 0 ow Sill 0 -s a �n (D Ll STAPLE HERE -� � C) cn w O z n O o OD -I (0 o CO Do CAr N N r -e 7 VID O `t7 o C w' 'TJ n 00 N r�•r O ai 'TJ a v IS\ w z � tiCD � Y 0 o a "Izs V g \\\I N O w r1 '�' N r1 • N O n � p fDO Cl. r CD ° x ro O (D o �n 'L■� 5 CD � N n t. N it .. UQ NOW A P 0 w C) Cs7 ) r.) Cy c o z CD O < A m ra • O � y � � d rC� m :EE3(-+zo n=rrD0O=5 z = C+ � a c+ N i X O (D � -. (n — (D CT C+ V rD n (D O -0 CL = _ CG (a C+ c+ CT CT (D rD S (D .p Q CZ (D ci W C+ n � C+ C+ c-) =5- 0 = J. (D J. (D C+ Cl (D :E a al C -t C+ — O ca- O O = :7 rD 'S -h -h A) -• -S -h J C+ 7r0 O -h 'S J• _ -hC+N C A) n N ? SL =5 C+ ffi rD J• (D 'S 5 C1 N (o C (D C7 (D O J• (/) J (D Z3-+ �G A) ( • < O (D (�D O O =5 -h Z -0 C+ CT (D (D 0) (D Z :E - J• J A) :E O O pi � -O -5 :3 C+ (.0 -h O C+ Cu (D rD � O C-+ (m -J �' OD W N (D n W A) (D A) Cv =r -0 'S X J . n _0 (D Cl- =' N (D N n O 0) lfl C (.0 0) CL � 00 C+ O =cc (D 03 0- L 0- 0- rD Q) C+ =5 Q S al O SL C- 0- (D (D i O (D =5 = m =--) to C FO E3 —0 -CJ n (D (D A) w CQ (D LOJ. O (D = C+ O X C -F n O = G (D CT (D C: SL :5 ('+ a. C1 = (D (D � 7� N rD O ca 5: :5 N :n :3 rD O O 0- 0 ow Sill 0 -s a �n (D Ll I - THIS MEMORANDUM OF LEASE is made and entered into by and between The City of Newport Beach, a chartered municipal corporation, herein called "Lessor," and FRANK O'BRYAN and DONNA S. O'BRYAN herein called "Lessee," to witness that: Lessor hereby leases to Lessee for a term of eighteen (18) years commencing on January 1, 1988, and ending on July 1, 2006, on the terms and conditions set forth in that certain lease by and between the parties hereto dated January 1, 1988, all the terms and conditions of which lease are made a part hereof as though fully set forth herein, all those certain premises in the County of Orange, State of California. Lot 9 as shown on the map filed in Book 9, Page-TZ—and 43 of Record of Surveys, in the office of the County Recorder, County of Orange, State of California. EXECUTED onze-P-- /0 1988 , Newport Beach, Orange County, Ca i ornia. LESSOR The City of Newport Beach - 88-13T8T8 RECORDED IN OFFICIAL RECORDS OF ORANGE COUNTY. CALIFORNIA RECORDING REQUESTED BY AND -400 PM MM 25'88 ` WHEN RECORDED RETURN T0: :,,;° =. L COUNTY PE CORDER rt8 2 91988 City Manager's Office City of Newport Beach _ 3300 Newport Boulevard EXPMPT Newport Beach, CA 92663 o Attn: Kenneth J. Delino s MEMORANDUM OF LEASE THIS MEMORANDUM OF LEASE is made and entered into by and between The City of Newport Beach, a chartered municipal corporation, herein called "Lessor," and FRANK O'BRYAN and DONNA S. O'BRYAN herein called "Lessee," to witness that: Lessor hereby leases to Lessee for a term of eighteen (18) years commencing on January 1, 1988, and ending on July 1, 2006, on the terms and conditions set forth in that certain lease by and between the parties hereto dated January 1, 1988, all the terms and conditions of which lease are made a part hereof as though fully set forth herein, all those certain premises in the County of Orange, State of California. Lot 9 as shown on the map filed in Book 9, Page-TZ—and 43 of Record of Surveys, in the office of the County Recorder, County of Orange, State of California. EXECUTED onze-P-- /0 1988 , Newport Beach, Orange County, Ca i ornia. LESSOR The City of Newport Beach RESOLUTION NO. 10040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING AN AGREEMENT TO LEASE AND LEASE OF BEACON BAY RESIDENTIAL LOTS AND AGREEMENT TO LEASE AND LEASE OF BEACON BAY COMMON AREA CONSISTENT WITH CHAPTER 74, STATUTES OF 1978 AND THE CHARTER OF THE CITY OF NEWPORT BEACH WHEREAS, the City owns certain tidelands and uplands in an area known as Beacon Bay; and WHEREAS, on January 9, 1950 City entered into a master lease to said property with Carroll B. Beek, Barton Beek, Joseph Allan Beek, Jr. and Seymour Beek jointly, which master lease expires on December 31, 1987; and WHEREAS, the westerly portion of the Beacon Bay property has been divided into individual lots and sublet for residential purposes; and WHEREAS, all said subleases will expire on the same date as the master lease, December 31, 1987; and WHEREAS, the City Council finds it to be in the public interest and the welfare of the City that the portion of Beacon Bay which is currently leased for residential purposes remain residental in character and that to enter into new agreements to lease with the sublessees under terms and conditions set forth in the Agreement to Lease and Lease is in the public interest; and WHEREAS, the City Council finds that it is in the best interest and welfare of the City that the streets, walkways, common areas, landscaped areas, beaches and other areas presently leased to the Beacon Bay Community Association should remain in said status in consideration of the Beacon Bay Community Association maintaining said areas at no expense to the City and further providing that the areas designated as tidelands within said leased area remain open, available and accessible to the public; and WHEREAS, Chapter 74, Statutes of 1978 permits the leasing of the residential lots in Beacon Bay which are located on tidelands; and WHEREAS, said Statute provides that the maximum term of leases of residential lots in Beacon Bay located on tidelands shall not exceed fifty years; and WHEREAS, Section 1402 of the Charter of the City of Newport Beach permits the leasing and re-leasing of water front property, provided the property was under lease as of January 11, 1957, the date of adoption of said provision of the Charter of the City of Newport Beach; and WHEREAS, the City Council hereby finds that the maximum lease term for the residential lots in Beacon Bay shall not exceed twenty-five years for the following reasons: A. Section 420 of the Charter of the City of Newport Beach prohibits the City entering into a lease in excess of twenty-five years without voter approval. B. The City Council finds it undesirable to commit the residential portion of Beacon Bay to residential use for a period longer than twenty-five years. At the termination of a twenty- five year lease renewal, the City Council of the City of Newport E Beach will be given another opportunity to determine whether or not residential uses on that property are appropriate or whether other uses are more appropriate. A lease term longer than twenty-five years would be an excessive commitment for this particular residential use of tidelands and uplands property owned by the City of Newport Beach. C. The extension of the residential lease term beyond twenty-five years would provide very little financial advantage to the City. An analysis of rental values has shown that a 35 year Lease will only increase the rental by 12.4% per annum. Therefore, the modest increase in lease payments to the City do not offset the disadvantage of committing the land to residential uses for a period longer than twenty-five years; and WHEREAS, the City Council hereby finds and determines that the leasing of the subject property is an act by the City of Newport Beach in its proprietary capacity and further that the execution of the Agreements to Lease the respective residential lots and the common areas in the westerly portion of Beacon Bay binds the City of Newport Beach to execute the Leases of said properties in December, 1987, and said execution of said Leases by and on behalf of the City of Newport Beach constitutes a ministerial act and a furtherance of the obligation of the City of Newport Beach hereby created. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that pursuant to the recitals hereinabove set forth, the Charter of the City of Newport Beach and Chapter 74, Statutes of 1978, the form of Agreement to Lease and Lease of the residential lots in Beacon Bay, respectively attached hereto, be and they are hereby approved. 3 BE IT FURTHER RESOLVED that the Agreement to Lease and Lease of the Common Area of Beacon Bay, respectively attached hereto, be and they are hereby approved. BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized and directed to execute each individual Agreement to Lease the respective residential lots in the westerly portion of the Beacon Bay property and the common areas in the western portion of the Beacon Bay property and that the Mayor and City Clerk of the City of Newport Beach are further authorized and directed to execute said Lease for the respective residential lots in the westerly portion of the Beacon Bay property and the common areas of the western portion of the Beacon Bay property during the month of December, 1987, provided that the Sublessees and the Beacon Bay Community Association and their heirs, devisees, and assigns, as the case might be, have fully performed and executed their obligation under said Agreements to Lease. ATTEST: City Clerk ADOPTED this llthday of May , 1981. I, WANDA E. ANDERSEN, City Clerk, do hereby certify the foregoing to be a full, true and correct copy of Resolution No. 10040 adopted by the City Council at their regular meeting held May/ 11, 1981. City Clerk AGREEMENT TO LEASE THIS AGREEMENT TO LEASE, made and entered into on the 7th day of JULY , 1986, by and between the CITY OF NEWPORT BEACH, a chartered municipal corporation, hereinafter "City," and FRANK O'BRYAN and DONNA S. O'BRYAN hereinafter (Co -Trustees of the O'Bryan Family Trust) "Sublessee." RECITALS A. City holds title to and is the owner of certain harbor frontage and tidelands, together with certain uplands abutting thereon known as Beacon Bay and more particularly described in Exhibit "1" attached hereto and made a part hereof by this reference. B. Carroll B. Beek, Barton Beek, Joseph Allan Beek, Jr., and Seymour Beek jointly hold a Master Lease to said proper- -ty dated January 9, 1950, which Master Lease expires on December 31, 1987. C. The "Westerly Portion" of the Beacon Bay property has been divided into individual lots and subleased for residential_ purposes. D. All of said subleases expire on the same date as the Master Lease, to wit: December 31, 1987. E. City believes it to be in the best interest and welfare of City: (1) that the portion of Beacon Bay which is currently leased for residential purposes remain residential in character; and (2) to enter into new agreements to lease with the sublessees under the terms, conditions and for the considera- tion as hereinafter set forth. F. It is the judgment of City that the leasing of the property hereinafter described is consistent with the trust pur- poses imposed upon such portions of the leased land which may 1 ^/ constitute tidelands as authorized by Chapter 74, Statutes of 1978. G. It is further the judgment of City that in entering into this Agreement to Lease in the future, City is acting pur- suant to its proprietary powers. NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS AND THE MUTUAL COVENANTS set forth below, City and Sub- lessee hereby agree as follows: 1. City hereby agrees to lease to Sublessee and Sub- lessee hereby agrees to lease from City the real property described in Exhibit "2" attached hereto and by this reference made a part hereof (hereinafter the "Leased Land") pursuant to a lease substantially in the form of Lease which is attached hereto marked Exhibit "C" and by this reference made a part hereof, and under the terms and conditions as set forth below. 2. In consideration of City's agreement to lease to Sublessee hereunder, Sublessee agrees to pay to City on the 1st day of each month following the date of this Agreement and on the 1st day of each month thereafter through the 1st day of December, 1987, a sum determined by subtracting from the fair market rental value of $32,000 (annualized) on JULY 15, 1986 (the "Effective Date"), the payments made by Sublessee under a sublease on the Leased Land to the Master Lessee of Beacon Bay described in Paragraph A of the Recitals above. 3. The Base Rental under Paragraph 3 of the Lease, Exhibit "C" attached hereto, shall be the fair market rental value of the land on the Effective Date subject to adjustment of the base rental, hereafter "Adjusted Base Rental", as set forth in paragraphs 4 or 5 hereof. 04 4. Should any Sublessee not execute this Agreement on or prior to the Effective Date, but execute this Agreement after Effective Date and prior to December 31, 1987, the rental sum to be used in paragraph 2 hereof and the Base Rental under Paragraph 3 of the Lease, Exhibit "C" attached hereto, shall be the total of the fair market rental value of the land as established by the Appraisal Report prepared by George Hamilton Jones, M.A.I., dated November 5, 1980, plus an amount equal to the L.A. - Long Beach Consumer Price Index (C.P.I.) increase, from July 1, 1981 to the date of execution, or 1% per month increase from July 1, 1981, whichever is greater, plus an amount equal to the increase in rental value change due to the reduced lease advantage, as of the date of execution, as set forth in the effective rental value change sheet attached hereto as Exhibit "D", said total rental rate shall be referred to as Adjusted Base Rental. The different Adjusted Base Rental provided for in this paragraph is imposed unilaterally by the City out of what is deemed to be fair and equitable to those Sublessees who choose to enter into this Agreement on its Effective Date. Said difference in Adjusted Base Rentals is in no manner to be considered a penalty but moreover a procedure developed solely by City to provide the incentive to enter into this Agreement of Lease at the earliest date possible. Commencing January 1, 1988 City is under no obligation to enter into this Agreement or a Lease in the form of Exhibit "C" attached hereto with any sublessee who has not executed this Agreement and shall be.free to deal with respect to the lease of any unleased portions of Beacon Bay on any terms and conditions it deems fit, either with third parties or prior sublessees. 5. Sublessee may sell, assign, exchange or convey his interest in this Agreement without prior written consent of the City, provided that upon any such transfer, the provisions of 3 Section 4 of the Lease Exhibit "C" attached hereto, shall determine the amounts to be paid by assignee to City, and further provided that the assignee execute an acceptance of the assignment and an agreement to be bound by all the terms of this Agreement and to make the payments provided for hereunder which Assignment and acceptance shall be delivered to and accepted by City. Upon such assignment and acceptance, Sublessee shall be released of any further obligation and liabilities under this Agreement to Lease. 6. The parties agree to execute the Lease, Exhibit "C" hereto, during the month of December, 1987 and concurrently therewith to execute and record a short form memorandum thereof. 7. Time and each of the terms, covenants and conditions hereof are expressly made the essence of this Agreement. If Sublessee shall fail to comply with any of the terms, covenants or conditions of this Agreement, including making the payments provided for herein at the time and in the amount herein required, and shall fail to remedy such default within sixty (60) days and thereafter diligently prosecute the same to completion, or if a Sublessee shall abandon or vacate the Leased Land, City may, at its option and without further demand, terminate this Agreement. Upon service by City on Sublessee of Notice of Termination of this Agreement to Lease, notice being given in the same manner as provided in paragraph 19 of the Lease appended hereto as Exhibit "C" this Agreement to Lease shall be terminated as to Sublessee and City's obligation to enter into the Lease appended hereto as Exhibit "C" is likewise terminated and City is under no obligation whatsoever to enter into said Lease with Sublessee. In addition to termination of this Agreement to Lease, City may recover from Sublessee all damages incurred by 4 City by reason of said breach, including, without limitation, any payments due and owing from Sublessee to City and any other costs due and owing from Sublessee to City at the date of termination of this Agreement to Lease. Should either City or Sublessee be required to employ counsel to enforce the terms, conditions and covenants of this Agreement to Lease, the prevailing party shall recover all reasonable attorney's fees (and court costs if applicable) incurred therein whether or not court proceedings were commenced. 8. Sublessee agrees that he will hold and save City, its officers, agents and employees harmless from any and all claims or demands of any kind or nature whatsoever arising out of, or incident to, the use and occupancy of the Leased Land, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Leased Land or caused by or arising out of any activities or omission of Sublessee, his agents, employees, licensees, and/or invitees, including, without limitation, injury or death of Sublessee, his agents, employees, licensees and invitees and damage to his property or Sublessee's property; except for any damage or injury of any kind arising out of the negligence of City, its agents or employees. 9. Each and every covenant, condition and agreement hereof, in accordance with the context, shall inure to the benefit of City and apply to and bind Sublessee, their respective heirs, legatees, devisees, executors, administrators, successors, assigns, licensees, permittees, or any person who may come into possession or occupancy of the Leased Land, or any part thereof in any manner whatsoever. 4 IN WITNESS WHEREOF, the parties have caused this Agree- ment to Lease to be executed on the date first above written. ATTEST: City Clerk APPROVED AS TO FORM: ty At 5-4-81 CITY OF NEWPORT BEACH Sublessee ) ss. STATE OF CALIF8Yd 0. e i COUNTY OF Zt1y 1986 ' ,before me, the undersigned,a Notary Public in and or O Frank O Br an and Donna S. O' Br an said State, personally appeare personally known to me (or proved to me on the basis of satis- 7MAUREEN ricIAL SEAL) a E. BIVINS factory evidence)to be the person(s) whose name(s)is/are sutr> BLIC-CALIFORNIA scribed to the within instrument and acknowledged to me that NGE COUNTY he/she/they executed the same. My Coms Aug. 19, 1987 WITNESSmy hand and official seal. Z/Aa'4"O�" J (This area for official notarial seal) EXHIBIT "C" L E A S E THIS LEASE, made and entered into on the 1st day of January, 1988, by and between the CITY OF NEWPORT BEACH, a chart- ered municipal corporation, "Lesso"U and �� h ��?1\I /hereinafter Q► ( Ilb�i1�� J• �`fw' , herein- after "Lessee." RECITALS A. Lessor holds title to and is the owner of certain harbor frontage and tidelands, together with certain uplands abutting thereon known as Beacon Bay and more particularly described in Exhibit "1" attached hereto and made a part hereof by this reference. B. Carroll B. Beek, Barton Beek, Joseph Allan Beek, Jr., and Seymour Beek jointly hold a Master Lease to said proper- ty, dated January 9, 1950, which Master Lease expires on December 31, 1987. C. The "Westerly Portion" of the Beacon Bay property has been divided into individual lots and subleased for residen- tial purposes. D. All of said subleases expire on the same date as the Master Lease, to wit: December 31, 1987. E. Lessor believes it to be in the best interest and welfare of said Lessor (1) that the portion of Beacon Bay which is currently leased for residential purposes remain residential in character, and (2) to enter into new subleases with the sub - 1 ..8, lessees under the terms, conditions and for the consideration as hereinafter set forth. F. It is the judgment of Lessor that the leasing of the property hereinafter described is consistent with the trust purposes imposed upon such portions of the leased lands which may constitute tidelands as authorized by Chapter 74, Statutes of 1978. G. It is further the judgment of City that in entering into this Lease in the future, City is acting pursuant to its proprietary powers. NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS AND THE MUTUAL COVENANTS set forth below, Lessor and - Lessee hereby agree as follows: 1. DESCRIPTION OF LEASED PREMISES. Lessor hereby leases, and Lessee hereby accepts this lease of the real property described in Exhibit "2" attached hereto and made a part hereof by this reference under the terms and conditions as set forth below (hereinafter the "Leased Land"). 2. TERM. Unless terminated sooner as provided herein, the term of this Lease is for a period commencing on the 1st day of January, 1988, and ending on the 1st day of July 2006. 3. BASE RENTAL. As base rental{ Lessee agrees to pay 'two-}\ICISQKIL 5ftttk �"k6ked to Lessor the sum of eia1_rl 3DOLLARS, ($Z7O8,3 ) per month, payable on the 1st day of each month so long as this Lease remains in effect subject to a base rental adjustment, as provided in paragraph 4 below. Said rental payment is deemed to be the fair market rental value of the Leased Land as an improved subdivision lot. 4. SALE, ASSIGNMENT, SUBLEASE Lessee may sell, assign, exchange, convey or sublease his leasehold interest or encumber such interest without a prior written consent of Lessor; provided, however, that the Lessee, proposed transferee, assignee or encumbrancer shall: 2 (a) Furnish Lessor with an executed copy of such assignment, Trust Deed, or other document used to effect such transfer; (b) Furnish to Lessor the express agreement of the proposed transferee or encumbrance assuming, and agreeing to per- form, all of the obligations under this Lease; (c) Pay to Lessor a transfer fee of $50.00; and (d) Pay to Lessor the adjusted base rental which shall be the greater of the following: 3 above, or (i) The base rental as set forth in paragraph. (ii) An amount, equal to two and one half percent (2 1/2%) of the actual sales value of the leasehold estate, including the improvements thereon, divided by twelve (12) and payable monthly. The actual sales value shall be the total value of the transfer, as established by the Assessor of Orange County or verified by Lessor. The parties to said transaction shall furnish Lessor with any information regarding the transaction as Lessor may deem necessary to verify the total value of the transaction. If said transfer transaction cannot be verified by normal and accepted methods of verification, Lessor, at its sole discretion, may cause the leasehold estate and improvements thereon to be appraised to establish the fair market value of the property, which value shall be deemed the actual sales value thereof_, as of the date of transfer, and establish thereby the adjusted base rental. The adjusted base rental shall become effective on the date of transfer. The provisions of this subparagraph shall not cause an adjustment of rentals if: (a) Lessee is assigning his interest in this Lease to a Trustee under a Deed of Trust for the benefit of the lender as provided in paragraph 5, below; or 3 (b) The transfer is caused by the death of a spouse and the full interest of the deceased spouse is transferred to the surviving spouse. 5. ENCUMBRANCES. If Lessee assigns his interest in this Lease to a Trustee under a Deed of Trust (hereinafter called "Trust Deed") for the benefit of the lender hereinafter called "Encumbrancer"), such encumbrance shall be upon and subject to the following covenants and conditions: (a) Said Trust Deed and all rights acquired there- under shall be subject to each and all of the covenants, condit- ions and restrictions set forth in this Lease and to all rights and interest of the Lessor hereunder, except as herein otherwise provided. (b) In the event of any conflict between the pro- visions of this Lease and the provisions of any such Trust Deed, the provisions of this Lease shall control. (c) Any Encumbrancer which is an established bank, savings and loan association or insurance company, and is the purchaser at a foreclosure sale, or is an assignee under an assignment in lieu of foreclosure shall be liable to perform the obligations of the Lessee under the Lease only so long as such Encumbrancer holds title to the leasehold. (d) Lessee shall furnish to Lessor a complete copy of the Trust Deed and Note secured thereby, together with the name and the address of the holder thereof. (e) Upon and immediately after the recording of the Trust Deed, Lessee, at Lessee's expense, shall cause to be recorded in the office of the Recorder of Orange County, California, a written request executed and acknowledged by Lessor for a copy of any notice of default and of any notice of sale under the Trust Deed as provided by the statutes of the State of California relating thereto. 4 (f) Lessor agrees that it will not terminate this Lease because of any default or breach hereunder on the part of Lessee if the Encumbrancer under such Trust Deed, within ninety (90) days after service of written notice on the Encumbrancer by Lessor of its intention to terminate this Lease for such default or breach, shall: (i) Cure such default or breach if the same can be cured by the payment or expenditure of money provided to be paid under the terms of this Lease; provided, however, that for the purpose of the foregoing, Encumbrancer shall not be required to pay money to cure the bankruptcy or insolvency of Lessee or to satisfy Lessee's obligations under Paragraph 12 hereof, "Indemnification", or (ii) If such default or breach is not so curable, cause the Trustee under the Trust Deed to commence and thereafter to diligently pursue to completion steps and proceed- ings for judicial foreclosure, the exercise of the power of sale under and pursuant to the Trust Deed in the manner provided by law, or accept from the Lessee an assignment in lieu of foreclo- sure; and (iii) Keep and perform all of the covenants and conditions of this Lease requiring the payment or expenditure of money by Lessee until such time as said leasehold shall be sold upon foreclosure pursuant to the Trust Deed, be released or reconveyed thereunder, sold upon judicial foreclosure or transferred by Deed in lieu of foreclosure; provided, however, if the holder of the Trust Deed shall fail or refuse to comply with any and all of the conditions of this paragraph, then and thereupon Lessor shall be released from the covenant of forebear- ance herein contained. 6. USE. The Leased Land shall be used solely for resi- dential purposes and any appurtenant uses associated therewith. Lessee agrees to comply with all laws, regulations and ordinances 5 Of Lessor, the County and State affecting the Leased Land and any improvements located thereon. 7. TAXES AND UTILITIES. It is understood by Lessor and Lessee that this Lease may give rise to a possessory interest tax obligation. Lessee shall pay before delinquent all utility charges and any general and special taxes, assessments or other governmental charges, if any, which may be levied on the Leased Land, including any improvements located thereon or associated therewith, or any possessory interest therein arising out of or based upon the leasehold interest throughout the term hereof. Satisfactory evidence of such payments shall be made available to Lessor upon demand. Any lien for unpaid utilities, taxes, assessments or charges shall not attach to the leasehold interest but only to improvements located thereon. 8. USE AND MAINTENANCE OF COMMON AREA Lessee shall have the right to use the streets, beaches, walkways, tennis courts, docks, piers, and common landscaped areas in Beacon Bay which shall be leased to the Beacon Bay Community Association by the City, in consideration of the maintenance thereof by such Association and fair market value rent to be paid by individual Lessees. Lessor shall not be obligated to make any repairs, alterations or improvements in or to, or upon or adjoining the Leased Land or any structure or other improvement that may be constructed or installed therein, but Lessee shall, at all times during the terms of this Lease and at its sole cost and expense, keep and maintain all buildings, structures and other improvements on the Leased Land in good order and repair, and the whole of the Leased Land and all improvements thereto free of weeds and rubbish, and in a clean, sanitary and neat condition. 9. COMMUNITY ASSOCIATION. Lessee agrees to be- come and during the term of this Lease remain a member in good standing of the Beacon Bay Community Association, and C to abide by the Articles of Incorporation, Bylaws and rules and regulations of said Association, now or hereafter existing, and to pay to said Association before delinquency all dues, fees, assessments and other charges from time to time duly levied or assessed in furtherance of the Association's community purpose. 10. COVENANTS, CONDITIONS AND RESTRICTIONS. Lessee agrees to abide and be bound by all covenants, conditions, restrictions and reservations as contained in Exhibit "3" attach- ed hereto and made a part hereof by this reference. Said cove- nants, conditions and restrictions shall run with the Leased Land and shall be binding on Lessee and Lessee's successors in interest. 11. INDEMNIFICATION. Lessee agrees that he will hold and save Lessor, its officers, agents and employees harmless from any and all claims or demands of any kind or nature whatsoever arising out of, or incident to, the use and occupancy of the Leased Land, -and to indemnify Lessor for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Leased Land or caused by or arising out of any activities or omission of Lessee, his agents, employees, licensees, and/ or invitees, including, without limitation, injury or death of Lessee, his agents, employees, licensees and invitees and damage to his property or Lessee's property; except for any damage or injury of any kind arising out of the negligence of Lessor, its agents or employees. 12. NON-COMPLIANCE AND TERMINATION OF LEASE Time and each of the terms, covenants and condi- tions hereof are expressly made the essence of this Lease. If Lessee shall fail to comply with any of the terms, covenants or conditions of this Lease, including the pay- ment of rental herein reserved, at the time and in the amount herein required, and shall fail to remedy such default within 7 sixty (60) days and thereafter comply with each and every term of this Lease, or if a Lessee shall abandon or vacate the Leased Land, Lessor may, at its option, and without further notice or demand, terminate this Lease and enter upon the Leased Land and take possession thereof, and remove any and all persons therefrom with or without process of law. Lessor may elect to terminate this Lease for any event of default or breach hereof or of the covenants, conditions and restrictions contained in Exhibit "3". Should Lessor elect to terminate, it may recover from Lessee all damages incurred by Lessor by reason of such breach, including, without limitation, the cost of recovering the Leased Land, and the worth at the time of such termination of the excess, if any, of the amount of unpaid rent and unpaid charges reserved under this Lease over the amount of the rental loss which Lessee proves could be reasonably avoided, for the remainder of the term of this Lease. Such amount shall be immediately due and payable from Lessee to Lessor, together with interest at the rate of 10% per annum from the date owing until paid. The remedies of Lessor specified herein are in addition to and cumulative of any remedies provided Lessor by statute, including the remedies provided in California Civil Code Sections 1951.2, et seq. 13. SURRENDER OF POSSESSION UPON EXPIRATION OR TERMINATION Upon the expiration or termination of this Lease, Lessee agrees to peaceably deliver possession of the Leased Land to Lessor and unconditionally agrees to vacate the Leased Land without contest, legal or otherwise. Lessee further expressly agrees to waive any and all legal rights it may have to contest vacating the Leased Land and further agrees to release Lessor from any and all claims it may have of whatever nature. Lessee further agrees to waive any relocation assistance or any other assistance from Lessor resulting from vacating the Leased Land. Lessee shall have the right prior to and for a period of ninety 3 X 7 (90; days after the expiration of this Lease to remove any build- ings or improvements appurtenant thereto from the Leased Land, except that all streets, walkways, common area landscaping, docks, piers and any other installation constructed or installed in the common areas, shall be the property of Lessor. 14. EMINENT DOMAIN A. Definition of Terms. The term "total taking" as used in this paragraph means the taking of the entire Leased Land under the power of eminent domain or the taking of so much of said Land as to prevent or substantially impair the use there- of by Lessee for the uses and purposes hereinabove provided. The term "partial taking" means the taking of a portion only of the Leased Land which does not constitute a total taking as defined above. The term "taking" shall include a voluntary conveyance by Lessor to an agency, authority or public utility under threat of a taking under the power of eminent domain in lieu of formal proceedings. The term "date of taking" shall be the date upon which title to the Leased Land or portion thereof passes to and vests in the condemnor. The term "Leased Land" means the real property belonging to Lessor, together with any and all improvemens placed thereon by Lessor or to which Lessor has gained title. B. Effect of Taking. If durng the term hereof there shall be a total taking or partial taking under the power of eminent domain, then the leasehold estate of the Lessee in and to the Leased Land or the portion thereof taken shall cease and terminate, as'of the date of taking of said Land. If this Lease is so terminated in whole or in part, all rentals and other charges payable by Lessee to Lessor hereunder and attributable to the Leased Land or portion thereof taken shall be paid by Lessee up to the date of taking by the condemnor, and the parties shall thereupon be released from all further liability in relation thereto. E C. Allocation of Award - Total Taking. All compensation and damages awarded for the total taking of the Leased Land and Lessee's leasehold interest therein shall be allocated as follows: (a) The Lessor shall be entitled to an amount equal to the sum of the following: (i) The fair market value of the Leased Land as improved (exclusive of the dwelling and appurtenances to such dwelling) as of the date of taking, discounted by multiply- ing such fair market value by the factor for the present worth of $1.00 at�$ per annum compound interest for the number of years remaining from the date of taking to the date of the expiration of the term of this Lease, and (ii) The present worth of rents due dur- ing the period from the date of taking to the date of the expira- tion of the term of this Lease, computed by multiplying the annual rent then payable by the factor for the present worth of $1.00 per annum at /cZ % per annum compound interest (Inwood Coefficient) for the number of years in such period. (b) The Lessee shall be entitled to the amount remaining of the total award after deducting therefrom the sums to be paid to Lessor as hereinabove provided. D. Allocation of Award - Partial Takinq All com- pensation and damages awarded for the taking of a portion of the Leased Land shall be allocated and divided as follows: (a) The Lessor shall be entitled to an amount equal to the sum of the following: (i) The proportionate reduction of the fair market value of the Leased Land as improved (exclusive of the dwelling and appurtenances to such dwelling) as of the date of taking, discounted by multiplying such proportionate reduction in fair market value by the factor for the present worth of $1.00 at -17_% per annum compound interest for the number of years re- maining from the date of taking to the date of the expiration of the term of this Lease; and 10 (ii) The present worth of the amount by which the rent is reduced computed by multiplying the amount by which the annual rent is reduced by the factor for the present worth of $1.00 per annum at 1 `—% per annum compound interest (Inwood Coefficient) for the number of years remaining from the date of taking to the date of expiration of the term of this Lease. (b) The Lessee shall be entitled to the amount remaining of the total award after deducting therefrom the sums to be paid to Lessor as hereinabove provided. E. Reduction of Rent on Partial Taking. In the event of a partial taking, the rent payable by Lessee hereunder shall be adjusted from the date of taking or to the date of the expiration of the term of this Lease. Such rental adjustment will be made by reducing the basic rental payable by Lessee in the ratio that the fair market rental value of the Leased Land at the date of taking bears to the fair market value of the Leased Land immediately thereafter. 15. ATTORNEYS' FEES Should either Lessor or Lessee be required to employ counsel to enforce the terms, conditions and -covenants of this Lease Agreement, the prevailing party shall recover all reasonable attorneys' fees (and court fees if applic- able) incurred therein, whether or not court proceedings were commenced. 16. REMEDIES CUMULATIVE. The rights, powers, elections and remedies of the Lessor contained in this Lease shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of Lessor's right to exercise any other. 17. NO WAIVER. No delay or omission of the Lessor to exercise any right or power arising from any omission, neglect or default of the Lessee shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or 11 18 default on the part of the Lessor or any acquiescence therein. No waiver of any breach of any of the terms, cove- nants, agreements, restrictions or conditions of this Lease shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Lease. 18. COMPLIANCE WITH LAWS. Lessee covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California, County of Orange, City of Newport Beach, or any other governmental body or agency having lawful jurisdiction over the Leased Land. 19. NOTICES. It is mutually agreed that any notice or notices provided for by this Lease or by law, to be given or served by Lessee, may be given or served by mail, registered or certified, with postage prepaid, on the City of Newport Beach addressed to the Mayor, City Manager, or City Clerk, 3300 Newport Blvd., Newport Beach, California 92663, or at such other address as may be hereafter furnished to Lessee in writing. If notice is intended to be served by Lessor on Lessee, it may be served either: personally, or A. By delivering a copy to the Lessee B. If he be absent from the Leased Land by leaving a copy with some person of suitable age and discretion who may be occupying the Leased Land, or C. If no one can be found, then by affixing a copy of the notice in a conspicuous place on the property or also sending a copy through the mail addressed to the Lessee. Such service upon Lessor or Lessee shall be deemed complete at the expiration of forty-eight (48) hours from and after the deposit in the United States mail of such notice, demand or communication. 20. HOLDING OVER. This Lease shall terminate and be- come null and void without further notice upon the expiration of said term. Any holding over shall not constitute a renewal here - 12 of, but the tenancy shall thereafter be on a month-to-month basis and otherwise on the same terms and conditions as herein set forth. 21. MISCELLANEOUS Inurement. Each and all of the covenants, condi- tions and agreements herein contained shall, in accordance with the context, inure to the benefit of Lessor and apply to and bind Lessee, his respective heirs, legatees, devisees, executors, ad- ministrators, successors, assigns, licensees, permittees, or any person who may come into possession or occupancy of said Leased Land or any part thereof in any manner whatsoever. Nothing in this paragraph shall in any way alter the provisions herein con- tained against assignment or subletting. IN WITNESS WHEREOF, the parties have caused this Lease to be executed on the date first above written. ATTEST: WANDA E. RAGGtO City Clerk APPROVED AS TO FORM: C"ity � rney '• 13 4-21-81 CITY OF NEWPORT BEACH BY ' Mayor EXHIBIT "I" LEGAL DESCRIPTION OF BEACON BAY A parcel of land situated in the Northwest quarter of Section 35, Township 6 South, Range 10 West, S. B. B. & M., Orange County, California, more particularly described as follows, to wit: Beginning at the United States Bulkhead Station No. 200, as shown upon a map entitled "Harbor Lines, Newport Bay Harbor, California," approved May 2, 1936, by the Secretary of War and on file in the office of the United States District Engineer at Los Angeles, California; running thence West along the United States Bulkhead line 147.50 feet to United States Station No. 137; thence North 39048' West along said Bulkhead line 535.53 feet; thence North 23057'30" East 126.34 feet to an angle point in the ordinary high tide line of the Pacific Ocean in Newport Bay, as described in — Court Case No. 24026 of the Superior Court of the State of California, in and for the County of Orange; thence South 39048' East along said ordinary high tide line 334.47 feet to the most Westerly corner of that certain parcel of land conveyed to the City of Newport Beach by The Irvine Company, as described in deed recorded September 25, 1929, in Book 306, page 375 of Official Records of Orange County, California; thence North 23057'30" East along the Northwesterly line of said parcel of land 317.57 feet; thence South 71054' East along the Northerly line of said parcel of land 290.24 feet; thence South 85043' East along the Northerly line of said parcel of land, said Northerly line being the Southerly line of Bayside Drive, 606.01 feet; thence South 424.71 feet to a point in the United States Government Bulkhead Line between United States Stations Nos. 101 and 200; thence West along said'Bulkhead line 784.25 feet to the point of beginning; containing approximately twelve (12) acres. Said parcel of land is shown on Attachment 2 for identification purposes only and is not to be a part of this document. r1 1 r---li--- .7 ,_s., 1_-__ Ir --. r a I - �; it .. � lIl •_� �I; 'r.l � , !. , ;. .,I � I _•' l '.. f-� ,, i i 101 (3n0;1j]3L'Y.U1) ,{Y;/„/7VAI 3 107 G, f✓S i I l_c_J L -L r _ •I r' 1 li' f �~ Ll ` I dS � v I � i 1 •l J �� t i I • I I- •�. �' ._Ill � 1; 1. ) 1� I ('� i _= J 9 J.UI _, OIJOCY !/A VA fne5 I vT- I . r1 1 r---li--- .7 ,_s., 1_-__ Ir --. r a I - �; it .. � lIl •_� �I; 'r.l � , !. , ;. .,I � I _•' l '.. f-� ,, i i 101 (3n0;1j]3L'Y.U1) ,{Y;/„/7VAI 3 107 G, f✓S i I l_c_J L -L rl i171 VJ 1 1 1 1 lli • I l I l I I I II I � Ili ��I :.i._: I I •�� I+I ! � 1 J i fit .I tll �I ili d lil :••; I I :1 i I JIL_e_J h N cri t' r _ •I r' 1 li' f �~ Ll ` I dS � v I � i 1 •l J �� t i iLAiL ' 'I _= J rl i171 VJ 1 1 1 1 lli • I l I l I I I II I � Ili ��I :.i._: I I •�� I+I ! � 1 J i fit .I tll �I ili d lil :••; I I :1 i I JIL_e_J h N cri t' •1 ?i - �—sir-1 __ 7._L. _L }_ ' ! - N !;I `� {;I ill •II t l I I I, 1 '1 a, 1 ober L-7rin��n,.s 107 7V/✓O/1N721J3U- �, It - 1 J J y c _ 3 /,Y/ , . y ...�\�,• ISL � x � � :: J ¢ u e / n• u N: o i 1 r _ •I r' 1 li' f �~ Ll ` I � v •1 ?i - �—sir-1 __ 7._L. _L }_ ' ! - N !;I `� {;I ill •II t l I I I, 1 '1 a, 1 ober L-7rin��n,.s 107 7V/✓O/1N721J3U- �, It - 1 J J y c _ 3 /,Y/ , . y ...�\�,• ISL � x � � :: J ¢ u e / n• u N: o i 1 EXHIBIT 46217 Lot #9 as shown on the map filed in Book 9, Pages 42 and 43 of Record of Surveys, in the office of the County Recorder, County of Orange, State of California. EXHIBIT "3" DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS BEACON BAY COMMUNITY ASSOCIATION Table of Contents Article I DEFINITIONS Pa e 2 1 - Architectural Committee 2 2 - Articles and Bylaws 2 3 - Assessments 2 4 - Association 3 5 - Association Rules 3 6 - Board 3 7 - City 3 8 - Common Expenses 3 9 - Common Area 4 10- Covered Property 4 11- Declarant 4 12- Exhibit 4 13- Member 4 14- Lessee 4 15- Residence 4 16- Setback 5 II MEMBERSHIP 1 - Membership 5 2 - Transfer 5 3 - Voting Rights 5 4 - Classes of Voting Membership 5 5 - Approval of Members 5 III COVENANT FOR MAINTENANCE ASSESSMENTS 6 1 - Creation of the Lien and Personal (i) Obligation of Assessments 6 2 - Purpose of Assessments 6 3 - Regular Assessments 6 4 - Uniform Assessment 6 5 - Special Assessments 6 5 - No Offsets 6 7 - Reserves 7 IV NONPAYMENT OF ASSESSMENTS 7 1 - Delinquency 7 - Notice of Lien 8 3 - Foreclosure Sale 8 (i) DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS BEACON BAY COMMUNITY ASSOCIATION ORANGE COUNTY, CALIFORNIA THIS DECLARATION is made this day of , by the City of Newport Beach a chartered municipal corporation. Said corporation, its successors and assigns, shall hereafter be referred to as "Declarant." R E C I T A L S A. Declarant is the fee owner of the real property described in Exhibit A to this Declaration, which shall be the Covered Property under this Declaration. This Declaration is being imposed by Declarant upon the Covered Property. B. Declarant has deemed it desirable to establish covenants, conditions and restrictions upon the Covered Property and each and every portion thereof, which will constitute a general scheme for the management of the Covered..Property, and for the use, occupancy and enjoyment thereof, all for the purpose of enhancing and protecting the value, desirability and attractiveness of the Covered Property and enhancing the quality of life within the Covered Property. C. It is desirable for the efficient management of the Covered Property and the preservation of the value, desirability and attractiveness of the Covered Property to delegate and assigned the powers of managing the Covered Prope=l_;, maintaining and administering the Common Area and ad -r nistering and enforcing these covenants, conditions and restrictions and collecting and disbursing funds :,_;suant to the assessment and charges hereinafter create= and referred to and to perform such other acts as shall generally benefit the Covered Property to the Beacon Bay Gc;::;_nity Assocation, a California nonprofit coroo=a-ion. D. Declarant will hereafter hold title to and lease all c= _:"._ Covered Property subject to certain protective covenants, conditions and restrictions hereafter set forth. Beacon E a%r 9/20/79 Rev. 9/24/79 NOW, THEREFORE, Declarant hereby covenants, agrees and declares that all of its interest as the same may from time to time appear in the Covered Property shall be held and conveyed subject to the following covenants, conditions, restrictions and easements which are hereby declared to be for the benefit of said interests in the Covered Property, and the owners of said interests, their successors and assigns. These covenants, conditions, restrictions and easements shall run with said interests and shall be binding upon all parties having or acquiring any right or title in said interests or any part thereof, and shall inure to the benefit of each owner thereof and are imposed upon said interests and every part thereof as a servitude in favor of each and every of said interests as the dominant tenement or tenements. ARTICLE I DEFINITIONS Unless the context clearly indicates otherwise, the following terms used in this Declaration are defined as follows: Section 1. "Architectural Committee" shall mean and refer to the committee or committees provided for in the Article hereof entitled "Architectural Control". Section 2. "Articles" and "Bylaws" shall mean and refer to the Articles of Incorporation and Bylaws of the Association as the same may from time to time be duly amended. Section 3. "Assessments:" The following meanings shall be given to the Assessments hereinafter defined: "Regular Assessment" shall mean the amount which is to be paid by each Member of the Association for Common Expenses. "Special Assessment" shall mean a charge against a part_cular Lessee and his Residence, directly attributable to the Lessee, to reimburse the Association for costs incu-red in bringing the Lessee and his Residence into coma l ince with the'provisions of this Declaration, the Articles, Bylaws or Association Rules, or any other charge designated as a Special Assessment, together with attorneys' fees and other charges payable, plus interest thereon as provided for in this Declaration. Beaccn Bay 9/20/79 2 Rev. 9/24/79 Section 4. "Association" shall mean and refer to Beacon Bay Community Assocation, a nonprofit corporation, incorporated under the laws of the State of California, its successors and assigns. Section 5. "Association Rules" shall mean rules adopted by the Association pursuant to the Article hereof entitled "Duties and Powers of the Association." Section 6. "Board" shall mean the Board of Directors of the Association. Section 7. "City" shall mean and refer to the City of Newport Beach, California, a municipal corporation of the State of California. Section 8. "Common Expenses" shall mean and refer to the actual and estimated costs of; (a) maintenance, management, operation, repair and replacement of the Common Area, and all other areas on the Covered Property which are maintained by the Association; (b) maintenance by the Association of areas within the public right-of-way of public streets in the vicinity of the Covered Property as provided in this Declaration or pursuant to agreements with the City; (c) costs of management and administration of the Association, including, but not limited to, compensation paid by the Association to managers, accountants, attorneys and employees; (d) the costs of utilities, gardening and other services which generally benefit and enhance the value and desirability of the Community Facilities; (e) the costs of fire, casualty, liability, workmen's compensation and other insurance covering the Common Area; (f) the costs of any other insurance obtained by the Association; (g) reasonable reserves as deemed appropriate by the Boars; (h) the costs of bonding of the members of the Board, any professional managing agent or any other person handlin_ the funds of the Association; Beaco-. Bay 9/20/7: 3 Rev. 9/24/79 (i) taxes paid by the Association; (j) amounts paid by the Association for discharge of any lien or encumbrance levied against the Common Area or portions thereof; . -(k) costs incurred by the Architectural Committee or other committee established by the Board; and (1) other expenses incurred by the Association for any reason whatsoever in connection with the Commo: Area, or the costs of any other item or items designated 'q this Declaration, the Articles, Bylaws or Association Rules, or in furtherance of the purposes of the Association or in the discharge of any duties or powers of the Association. Section 9. "Common Area" shall mean all streets, beaches, walkways, tennis courts, docks, piers, and common landscaped areas, including but not limited to Lots A through J inclusive as shown on Exhibit 'U". Section 10. "Covered Property" shall mean and refer to all the real property described on Exhibit "I". Section 11. "Declarant" shall mean and refer to the City of Newport Beach. Section 12. "Exhibit" shall mean and refer to those documents so designated herein and attached hereto and each of such Exhibits is by this reference incorporate::: in this Declaration. Section 13. ""Membershall mean and refer to every person or entity who qualifies for membership pursuant to the Article of this Declaration entitled "Membership." Section 14.- "Lessee" shall mean and refer to one or more persons or entities who are alone or collectively the lessees of a Residence. Section 15. "Residence" shall mean and refer to a nur.�=re- lot shown on the Record of Survey Map of Beacon Bay 3::ldivision recorded in Book 9, pages 42 and 43, Recc-cs of Survey, on file in the Office of the County Rec�-cer, Orange County, California; provided, however, "R�sice-,ce" shall not include any Common Area. "Re i__nce" shall include the residential dwelling unit 9/2r' 4 Rev. 9/24/79 z5, .. together with garages, structures and other improvements on the same lot or parcel. Section 16. "Setback" shall mean and refer to those internal distances from the property line of each lot as shown on Exhibit "II" ARTICLE II MEMBERSHIP Section 1 - Membership. Every Lessee shall be a Member but there shall be only .one Membership per Residence. The term and provisions set forth in this Declaration, which are binding upon all Lessees are not exclusive, as Lessees shall, in addition, be subject to the terms and provisions of the Articles, Bylaws and Association Rules to the extent the provisions thereof are not in conflict with this Declaration. Membership of Lessees shall be appurtenant to and may not be separated from the interest Of such Lessee in any Residence. Ownership of a Residence shall be the sole qualification for membership; provided, however, a Member's voting rights may be regulated or suspended as provided in this Declaration, the Bylaws or the Association Rules. Section 2 - Transfer. The membership held by any Lessee shall not be transferred, pledged or alienated in any way, except that such membership shall automatically be transferred to the transferee of the interest required for membership. Any attempt: to make a prohibited transfer is void and will not be reflected upon the books and records of the Association. The Association shall. have the right to record the transfer upon the books of the Association without any further action or consent by the transferring Lessee. Section. 3 - Votinq Rights. All voting right shall be subject to the restrictions and limitations provided herein and in the Articles, Bylaws and Association Rules. Section 5 - Classes of Voting Membership. The Association shall have one (1) class of voting membership. Sec`_zcn - Approval of Members. Unless elsewhere specifically provided in this Declaration or the By.= any provision of this Declaration or the Bylaws i3 r• r-r�^ ��'� 9 / 2 0 17 9 Rev_ 9/25/79 ZGl which requires the vote or written assent of the voting power of the Association shall be deemed satisfied by the following: (a) The vote in person or by proxy of the specified percentage at a meeting duly called and noticed pursuant to the provisions of the Bylaws dealing with annual or special meetings of the Members. (b) written consents signed by the specified percentage of Members as provided in the Bylaws. ction 1 - ARTICLE III COVENANT FOR MAINTENANCE ASSESSMENTS of the Li al Oblication or assessments. Each Lessee is deemed to covenant and agree to pay to the Association: Regular and Special Assessments, such Assessments to be fixed, established and collected from time to time as provided in this Declaration. The Assessments, together with interest thereon, late charges, attorneys' fees and court costs, and other costs of collection thereof, as hereinafter provided, shall be a continuing lien upon the Residence against which each such Assessment is made and shall also be the personal obligation of the Lessee of such Residence at the time when the Assessment becomes due. Notwithstanding the foregoing, the Assessment lien shall not affect the priority of any other existing liens. Section 2 - Purpose of Assessments. The Assessments levied by the Association shall be used exclusively to defray Common Expenses. Section 3 - Regular Assessments. Each year the Board shall determine the amount of the Regular Assessment to be paid by each Member. The Regular Assessment shall be due and p=ayable on such dates as the Board may establish. Each M;tuber shall be sent written notice of the Regular Assessment and shall thereafter pay the Association in inst=17-ments as established by the Board. Section 4 - Uniform Assessment. Regular Assessments shall be fixed at an equal amount for each Residence. Section 5 - Special Assessments. be levied by the Board from time Beacon Fray 9/20/79 Special Assessments may to time. Rev. 9/24/79 Section 6 - No Offsets. All Assessments shall be payable in the amount specified by the Assessment and no offsets against such amount shall be permitted for any reason, including, without limitation, a claim that (i) the Association is not properly exercising its duties and powers as provided in this Declaration; or (ii) a Member has made and elects to make no use of the Common Areas. Section 7 - Reserves. The Regular Assessments may include reasonable amounts as determined by the Board collected as reserves for the future periodic maintenance, repair or replacement of all or a portion of the Common Area, or any other purpose as determined by the Board. All amounts collected as reserves, whether pursuant to this Section or otherwise, shall be deposited by the Board in a separate bank account to be held in trust for the purposes for which they are collected and are to be segregated from and not commingled with any other funds of the Association. Such reserves shall be deemed a contribution to the capital account of the Association by the Member. ARTICLE IV NONPAYMENT OF ASSESSMENTS Section 1 - Delinquency. Any assessment provided for in this Declaration which is not paid when due shall be delinquent on said date (the "delinquency date"). If any such Assessment is not paid within ten (10) days after delivery of notice of such delinquency from the Association, a late charge as established by the Board shall be levied and the Assessment shall bear interest from the delinquency date at the rate of ten percent (l0%) per annum. The Association may at its option, and without waiving the right to judicially foreclose its. lien against the Residence, pursue any available remedies, including, without limitation, bringing an action at law against the Member personally obligated to pay the same, and/or upon compliance with the notice provisions set forth in the Section entitled "Notice of Lien" of this Article to foreclose the lien against the Residence. If action is co^ -.need, there shall be added to the amount of such Assessment the late charge, interest, the costs of such action, and attorneys' fees incurred in connection with suc'- action; and in the event a judgment is obtained, such .ent shall include said late charge, interest and a reasonable attorney's fee, together with the costs of action. Each Member vests in the Association, or its assig^s; the right and power to bring all actions at law Beacon Bay 9/20/73 7 Rev. 9/24/79 or lien foreclosure against such Member or other Members for the collection of such delinquent Assessments. Section 2 - Notice of Lien. No action shall be brought to foreclose said Assessment lien or to proceed under the power of sale herein provided until thirty (30) days after the date a notice of claim of lien is deposited in the United States mail, certified or registered, postage prepaid, to the Lessee of said Residence, and a copy thereof is recorded by the Association in the office of the County Recorder of the County; said notice of claim of lien must recite a good and sufficient legal description of any such Residence, the record Lessee or reputed Lessee thereof, the amount claimed which shall include interest on the unpaid Assessment at the rate of ten percent (10%) per annum, a late charge as established by the Board, plus reasonable attorneys' fees and expenses of collection in connection with the debt secured by said lien, and the name and address of the claimant. Section 3 - Foreclosure Sale. Said Assessment lien may be enforced by sale by the Association, its attorney or any other person authorized by the Board to make the sale after failure of the Lessee to make the payments specified in the notice of claim of lien within said thirty (30) day period. Any such sale provided for above is to be conducted in accordance with the provisions of Sections 2924, 2924b, 2924c, 2924f, 2924g and 2924h of the.Civil Code of the State of California as said statutes may from time to time be amended, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted or provided by law. Upon the affirmative vote of a majority of the voting power of the Association, the Association, through its duly authorized agents, shall have the power to bid on the Residence, using Association funds, or funds borrowed for such purpose, at the sale, and to acquire and hold, lease, mortgage and convey the same. Section 4 - Relationship with Mortgage Liens. (a) The lien provided for in the Article hereof entitled "Nonpayment of Assessments" for the payment of AssessT=rts shall be subordinate to the lien of any fdortcuge which was recorded prior to the date any such Asses!=ent becomes due. (b) If any Residence subject to a monetary lien created by any provision hereof shall be subject to the lien of a Mortgage: (1) the foreclosure of any lien create: by anything set forth in this Declaration shall Beacon w y 9/20/79 8 Rev. 9/24/79 not operate to affect or impair the lien of such Mortgage; and (2) the foreclosure of the lien of said Mortgage, or the sale under a power of sale included in such Mortgage (such events being hereinafter referred to as "Events of Foreclosure") shall not operate to affect or impair the lien hereof, except that any persons who obtain an interest through any of the Events of Foreclosure, and the successors in interest, shall take title free of the lien hereof or any personal obligation for said charges as shall have accrued up to the time of any of the Events of Foreclosure, but subject to the lien hereof for all said charges that shall accrue subsequent to the Events of Foreclosure. Section 5 - Curing of Default. Upon the timely payment or other satisfaction of: (a) all delinquent Assessments specified in the notice of claim of lien, (b) all other Assessments which have become due and payable with respect to the Residence as to which such notice of claim of lien was recorded, and (c) interest, late charges, attorneys' fees and other costs of collection pursuant to this Declaration and the notice of claim of lien which have accrued, officers of the Association or any other persons designated by the Board are hereby authorized to file or record, as the case may be, an appropriate release of such notice, upon payment by the defaulting Lessee of a fee, to be determined by the Association, but not to exceed Fifty Dollars ($50.00) to cover the costs of preparing and filing or recording such release. ARTICLE V ARCHITECTURAL CONTROL Section 1 -Appointment of Architectural Committee. The Architectural Committee shall consist of not less than three (3) nor more than five (5) persons as fixed from time to time by resolution of the Board. The Board shall have the right to appoint the members of the Arcitectural Committee. Persons appointed by the Board to the Architectural Committee, however, must be Members. Sectio- 2 - General Provisions. (a) The Architectural Committee may establish reasonable procedural rules and assess a fee in connection with review of plans and specifications including, without limitaticn, the number of sets of plans to be submitted; Beacon -Bav 9/20/79 9 Rev. 9/24/79 however, the Architectural Committee may delegate its plan review resoonsibilites to one or more members of such Architectural Committee. Upon such delegation, the approval or disapproval of plans and specifications by such persons shall be equivalent to approval or disapproval by the entire Architectural Committee. (b) In the event the Architectural Committee fails to approve or disapprove such plans and specifications within thirty (30) days after the same have been submitted in accordance with any rules regarding such submission adopted by the Architectural Committee, such plans and specifications will be deemed approved. (c) Nothing in this Declaration or in the Association's Articles, Bylaws or Rules shall be construed or amended to allow the Architectural Committee to modify or eliminate the Setback requirements shown on the Beacon Bay Subdivision Survey Map, and any attempt to do so shall have no effect. Section 3 - Approval and Conformity of Plans. No building, fence wall or other structure shall be commenced, erected or maintained upon the Covered Property, nor shall there be any addition to or change to the exterior of any Residence, structure or other improvement except in compliance with plans and specifications therefor which have been submitted to and approved by the Architectural Committee as to harmony of external design and location in relation to surrounding structures and topography. Section 4 - Nonliability for Approval of Plans. Plans and specifications shall be approved by the Architectural Committee as to style, exterior design, appearance and location, and are not approved for engineering design or for compliance with zoning and building ordinances, and by approving such plans and specifications neither the Architectural Committee, the members thereof, the Association, the Members, the Board nor Declarant assumes liability or responsibility therefor, or for any defect in any structure constructed from such plans and specifics -ions. ARTICLE VI DUTIES AND POSERS OF THE ASSOCIATION Section. 1 - General Duties and Powers. In addition to the dutie.; =-.d powers enumerated in its Articles and Bylaws, Beacon Bay 9/20/79 10 Rev. 9/24/79 or elsewhere provided for herein, and without limiting the generality thereof, the Association shall have the specific duties and powers specified in this Article. Section 2 - Genera Association throug obligation to: sties of t; e Board s iation. The e the duty and (a) enforce the provisions of this Declaration, the Articles, Bylaws, and Association Rules, by appropriate means and carry out the obligations of the Association hereunder; (b) maintain and otherwise manage the Co, on Area; (c) pay any real and personal property taxes and other charges assessed to or payable by the Association; and (d) obtain and continue in effect during the term of of the lease, in its own name a comprehensive policy of public liability insurance proving coverage for the common area, and a policy of fire and casualty insurance with coverage as the Board deems appropriate. Section 3 - Genera! Powers of the Association. The Association through the Board shall have the power but not the obligation to: (a) employ a manager or other persons and contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association; (b) borrow money as may be needed in connection with the discharge of the Association's powers and duties; and (c) establish and maintain a working capital and contin ncy fund in an amount to be determined by the Boars. Said fund shall be used by the Board as it deems fit to carry out the objectives and purposes of the Association Rules. The Board shall have the po,;e adopt, amend, and repeal such rules and reg;; := ns as it deems reasonable (the "Association Rule_ In t.ne event of any conflict between any such rssc _=_:on Rulea and any other provisions of this or tt,e Articles or Byla1;s, the provisions of the Rules shall he deemed to be superseded by the 70!17of this Declaration, the Articles or the B Y I the extent of any such conflict. 9/20/._. ] 1. 12ev. 9/24/79 5/4/81 ARTICLE VII REPAIR AND MAINTENANCE Section 1 - Repair and Maintenance by Association. The Association shall have the duty to: (a) maintain, repair, restore, replace and make necessary improvements to the Common Area; (b) maintain all other facilities, equipment, services or aesthetic components of whatsoever nature as may from time to time be requested by the vote or written consent of a majority of the voting power of the Members; (c) pay out of the general funds of the Association the costs of any maintenance and repair made.pursuant to this section, except as otherwise herein specified as payable by particular Lessees. Section 2 - Repair and Maintenance by Lessee. Except as the Association shall be obligated to maintain and repair as may be provided in this Declaration, every Lessee shall: (a) maintain all portions of the exterior of his Residence, including without limitation, the walls, fences and roof_ of such Residence in good condition and repair; and (b) install and thereafter maintain in attractive condition yard landscaping in accordance with the provisions of this Article. Section 3 - Maintenance of Public Utilities. Nothing contained herein shall require or obligate the Association to maintain, replace or restore the underground facilities or public utilities which are located within easements in the Cermon Area owned by such public utilities. However, the Association shall take such steps as are necessary or convenient to ensure that such facilities are properly maintained, replaced or restored by such public utilities. ARTICLE VIII USE RESTRICTIONS Section 1 - Commercial Use. No part of a Residence shall be used for, any business, commercial, or nonresidential purposes. Beacon. Bay 9/20/79 12 Rev. 9/24/79 Section 2 - Signs. No sign or billboard of any kind shall be displayed to the public view on any portion of the Covered Property; provided, however, that a Member may display on his Residence, a sign advertising its sale or lease so long as such sign shall comply with any customary and reasonable standards promulgated by the Board. Section 3 - Nuisance. No noxious or offensive activity shall be carried on upon any Residence, or any part of the Covered Property nor shall anything be done thereon which may be, or may become an annoyance or nuisance to the neighborhood, or which shall in any way interfere with the quiet enjoyment of each of the Lessees of his respective Residence. Section 4 - Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept upon the Covered Property, except that dogs, cats or other household pets may be kept on the Residences, provided they are not kept, bred or maintained for any commercial purpose, or in numbers deemed unreasonable by the Board. Notwithstanding the foregoing, no animals or fowl may be kept on the Residences which in the good faith judgment of the Board or a committee selected by the Board for this purpose, result in any annoyance or are obnoxious to residents in the vicinity. All animals except cats permitted to be kept by this Section shall be kept on a leash when on any portion of the Covered Property except within a Residence. Section 5 --California Vehicle Code. The City may be allowed to impose and enforce all provisions of the applicable California Vehicle Code sections on any private streets within the Covered Property. ARTICLE IX RIGHTS OF ENJOYMENT Section 1 - Members' Riqht of Enjoyment. Every Member shall nave nonexclusive easement for use and enjoyment in and to the Common Area and such right shall be appurtenant to and shall pass with the interest required to be a Lessee to every Residence, subject to all of the easements, covenants, conditions, restrictions and other provisions contained in this Declaration, including, without limitation, the following provisions: Beacon Bav 9/20/79 13 Rev. 9/2.4/79 (a) The right of the Association of guests of Members and to limit the Area by persons not in possession of owning a portion of the interest in a for membership. to limit the number use of the Common a Residence, but Residence required .(b) The right of the Association to establish reasonable rules and regulations pertaining to the use of the Common Area. Section 2 - Delegation of Use. Any Member may delegate his right of enjoyment to the Common Areas to the members of his family or his tenants who reside on his Residence, or to his guests, subject to the rules and regulations adopted by the Board. In the event and for so long as a Lessee delegates said rights of enjoyment to his tenants, said Lessee shall not be entitled to said rights unless both he and the tenant reside on the Residence in separate dwelling units which conform to all applicable municipal laws and regulations. Section 3 - Waiver of Use. No member may exempt himself from personal liability for assessments duly levied by the Association, or release the Residence owned by him from the liens, charges and other provisions of this Declaration, the Articles, Bylaws and Association Rules, by waiver of the use and enjoyment of the Common Area, or the abandonment of his Residence. ARTTrT,R X GENERAL PROVISIONS Section. 1 - Enforcement. The Association, or any Lessee, shall have the right to enforce by proceedings at law or in equity, all restrictions, conditions, covenants and reservations, now or hereafter imposed by the provisions of this Declaration or any amendment thereto, including the right to prevent the violation of such restrictions, conditions, covenants, or reservations and the right to recover damages or other dues for such violation. The Association or any Lessee shall also have the right to enforce by proceedings at law or in equity the provisions of the yrticles or Bylaws and any amendments thereto. With respect to architectural control and Association Rules, the Association shall have the exclusive right to the enforcement thereof unless the Association refuses or is unable to effectuate such enforcement, in which case any Lessee who otherwise has standing shall have the right to undertake such enforcement. With respect to Assessment Beacon. Bav_ 9/20/79 14 Rev. 9/24/79 Liens, the Association shall have the exclusive right to the enforcement thereof. Section 2 - No Waiver. Failure by the Association or by any Member to enforce any covenant, condition, or restriction herein contained, or the Articles, Bylaws or Association Rules, in any certain instance or on any particular occasion shall not be deemed a waiver of such right on any such future breach of the same or any other covenant, condition or restriction. Section 3 - Cumulative Remedies. All rights, options and remedies of Declarant, the Association, or the Lessees under this Declaration are cumulative, and no one of them shall be exclusive of any other, and Declarant, the Association, and the Lessees shall have the right to pursue any one or all of such rights, options and remedies or any other remedy or relief which may be provided by law, whether or not stated in this Declaration. Section 4 - Severability. Invalidation of any one or a portion of these covenants, conditions or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. Section 5 - Covenants to Run with the Land; Term. The covenants, conditions and restrictions of this Declaration shall run with and bind the Covered Property and shall inure to the benefit of and be enforceable by the Association or any Lessee, their respective legal representatives, heirs, successors and assigns, for a term of twenty five (25) years from the date this Declaration is recorded, after which time said covenants, conditions and restrictions shall be automatically extended for successive periods of ten (10) years, unless an instrumient, signed by the Declarant and a majority of the then Lessees, has been recorded at least one (1) year prior to the end of any such period, agreeing to change said covenants, conditions and restrictions in whole or in part. Section 'o - Heading. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. Section. 7 -Singular Includes Plural. Whenever the content of this Declaration requires same, the singular shall include the plural and the masculine shall include the feminine and the neuter. Beacon.u av 9/20/79 15 Rev. 9/24/79 Section 8 - Attorneys' Fees. In the event action is instituted to enforce any of the provisions contained in this Declaration, the party prevailing in such action shall be entitled to recover from the other party thereto as part of the judgment, reasonable attorneys' fees and costs of such suit. Section 9 - Notices. Any notice to be given hereunder shall be in writing and may be delivered as follows: (a) Notice to a Lessee shall be deemed to have been Properly delivered when delivered to the Lessee's Residence, or placed in the first class United States mail, postage prepaid, to the most recent address furnished by such Lessee in writing to the Association for the purpose of giving notice, or if no such address shall have been furnished, then to the street address of such Lessee's Residence. Any notice so deposited in the mail within the City shall be deemed delivered forty-eight (48) hours after such deposit. In the case of co -Lessees any such notice may be delivered or sent to any one of the co -Lessees on behalf of all co -Lessees and shall be deemed delivery on all such co -Lessees. (b) Notice to the Association shall be deemed to have been properly delivered when placed in the first class United States mail, postage prepaid, to the address furnished by the Association or the address of its principal place of business. (c) The affidavit of an officer or authorized agent of the Association declaring under penalty of perjury that a notice has been mailed to any Lessee or Lessees, or to all Members, to the address or addresses shown on the records of the Association, shall be deemed conclusive proof of such mailing, whether or not such notices are actually received. Section 10 - Effect of Declaration. This Declaration is .made for the purposes set forth in the Recitals to this Declaration and Declarant makes no warranties or representations, express or implied as to the binding effect or enforceability of all or any portion of this Declaration, or as to the compliance of any of these Provisions with public laws, ordinances and regulations applicable thereto. Section 11 - Personal Covenant. To the extent the accepta,ce or conveyance of a Residence creates a personal covena-t between the Lessee of such Residence and Declarant or other Lessees, such personal covenant shall Beacon >v 9/20/75 16 Rev. 9/24/79 terminate and be of no further force or effect from or after the date when a person or entity ceases to be an Lessee except to the extent this Declaration may provide otherwise with respect to the payment of money to the Association. Section 12 - Nonliability of Officials. To the fullest extent permitted by law, neither the Board, the Architectural Committee, and other committees of the Association or any member of such Board or committee shall be liable to any Member or the Association for any damage, loss or prejudice suffered or claimed on account of any decision, approval or disapproval of plans or specifications (whether or not defective), course of action, act, omission, error, negligence or the like made in good faith within which such Board, committees or persons reasonably believed to be the scope of their duties. Section 13 - Subleases. Any agreement for the subleasing or rental of Residence (hereinafter in this Section referred to as a "lease") shall provide that the terms of such lease shall be subject in all respects to the provisions of this Declaration, the Articles, the Bylaws and the Association Rules. Said lease shall further provide that any failure by the lessee thereunder to comply with the terms of the foregoing documents shall be a default under the lease. All leases shall be in writing. Any Lessee who shall lease his Residence shall be responsible for assuring compliance by such Lessee's lessee with this Declaration, the Articles, the Bylaws and the Association Rules. Section 14 - Amendments. Subject to the other provisions - of this Declaration, this Declaration may be amended as follows: (a) Any amendment or modification of the Articles hereof entitled "Covenant for Maintenance Assessments," "Nonpayment of Assessments," "Architectural Control," and "Repair and Maintenance," or of this Section shall require the affirmative vote or written approval of not less than sixty percent (60%) of the Members. (b) Any amendment or modification of any Article other titan those specified in subparagraph (a) above shall require the affirmative vote or written approval of a majority of the members. (c) An amendment or modification that requires the vote and ;arftten assent of the Members as hereinabove Beacon Pay 9/20/79 17 Rev. 9/24/79 provided shall be effective when execute by the President and Secretary of the Association who shall certify that the amendment or modification has been approved as hereinabove provided, and when recorded in the Official Records of the County. The notarized signatures of the Members shall not be required to effectuate an Amendment of this Declaration. (d) Notwithstanding the foregoing, any provision of this Declaration, or the Articles, Bylaws or Association Rules which expressly requires the approval of a specified percentage of the voting power of the Association for action to be taken under said provision can be amended only with the affirmative vote or written assent of not less than the same percentage of the Voting Power of the Association. IN WITNESS WHEREOF, Declarant has executed this instrument the day and year first herein above written. ATTEST: CITY OF NEWPORT BEACH, a chartered municipal corporation By: City Clerk APPROVED AS TO FOP14: ty Attorney Mayor Beacon Ba., 9/20/79 18 Rev. 9/21/79 STATE OF ss. COUNTY OF On , 19 , before me the undersigned, a Notary Public in and for said State, personally appeared known to me to be the of the corporation that executed the within Instrument, known to me to be the person who executed the within Instrument on behalf of the corporation therein named, and acknowledged to me that such corporation executed the within instrument pursuant to its bylaws or a resolution of its board of directors. WITNESS my hand and official seal. [Seal] Beaco.^. �_✓ 9/20/79 032381 Notary Public 19 Rev. 9/24/79 Qk Q Z e. y Q Qz Q �� V 1 II � I I I I I I 1 1 •��_' 1 �� I 0 101 (3AO3213il3HS'lt03) .(VlyfY7VAA 1 I 1 0 101 I I ' F 1 i i I i•- 1 N 1 II I 1 In � I n I I II 1 � ��O �i � I�� 1 m ill S I I-�••i l i -.I�. 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H W 4] M N n V .o� 6 n m n N n umi b rn n e o 0 N m ry N n n r c. a Y tl � 9 • Y 11 Y Y X Y Y Y Y Y 11 11 q O Y q T XI N O v O Y O O T O v O O O p O v O O O O O O �E X x X x X X x x x X x x x x X ] b C C N p a U r E r N N m m 0 O O t0�1 `�. N N N Q C x c�3 6 e^ m a u c vq'x oo` Z U E r �Em n C m a Gx n n n = m l— W K4U.. Zv❑ n r m n r ` EXHIBIT "D" 1 of 2 Pages jjr x III II M 11 N n b II N n tl O O 11 O O M 0 n O Y P O p O p O II O 11 O N n N y O xI O x b O x p O x O O x O x Q O x O x l7 O x n N O x O X y O % O x O O x O I O x fxx F +I + + ♦ a a ♦ ♦ ♦ a a ♦ t a ♦ f a e o a n b m ^ m m m _ P P N P P n EXHIBIT 41D41 2 of 2 Pages III II M 11 N n b II N n tl O O 11 O O M 0 n O Y P O p O p O II O 11 O N n N y O xI O x b O x p O x O O x O x Q O x O x l7 O x n N O x O X y O % O x O O x O I O x fxx F +I + + ♦ a a ♦ ♦ ♦ a a ♦ t a ♦ f a e a n b m ^ m m m _ P P N P P n OPi IPi ! 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