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HomeMy WebLinkAboutAGENDA REPORT 2022 0927 REG PC ITEM 08FCITY OF MOORPARK, CALIFORNIA Planning Commission Meeting of September 27, 2022 ACTION: Approved Staff Recommendation, Including Adoption of Resolution No. PC-2022-681. BY: J. Lugo A.Consider Resolution No. PC-2022-681 Recommending the City Council Consider Ordinance for the First Amendment to the Development Agreement No. 2018-01 between the City of Moorpark and Daly Group, Inc. and Making a Determination of Exemption Pursuant to the California Environmental Quality Act in Connection Therewith. Staff Recommendation: 1) Open the public hearing, accept public testimony, and close the public hearing; and 2) Adopt Resolution No. PC-2022-681 recommending the City Council consider the First Amendment to the Development Agreement (DA) No. 2081-01 and finding the project Exempt from the California Environmental Quality Act (CEQA). (Staff: Carlene Saxton) Item: 8.F. Item: 8.F. MOORPARK PLANNING COMMISSION AGENDA REPORT TO: Honorable Planning Commission FROM: Carlene Saxton, Community Development Director DATE: 09/27/2022 Regular Meeting SUBJECT: Consider Resolution No. PC-2022-681 Recommending the City Council Consider Ordinance for the First Amendment to the Development Agreement No. 2018-01 between the City of Moorpark and Daly Group, Inc. and Making a Determination of Exemption Pursuant to the California Environmental Quality Act in Connection Therewith STAFF RECOMMENDATION 1.Open the public hearing, accept public testimony, and close the public hearing; and 2.Adopt Resolution No. PC-2022-681 recommending the City Council consider the First Amendment to the Development Agreement (DA) No. 2081-01 and finding the project Exempt from the California Environmental Quality Act (CEQA). BACKGROUND High Street Depot / Daly Group Proposal On November 16, 2017, the City and Daly Group, Inc. entered into an Exclusive Negotiating Agreement (ENA) while the Applicant performed studies and due diligence for a mixed-use development proposal on 2.5 acres of property located on High Street owned by the City of Moorpark. The ENA was extended several times as work progressed on the project design and the terms of the Development Agreement (DA) and Disposition and Development Agreement (DDA) were being negotiated. A City Council ad hoc committee consisting of Mayor Parvin and then Councilmember Simons was formed to guide staff during the DDA and DA negotiations. Staff consulted with the ad hoc committee numerous times throughout the negotiation process. 169 Honorable City Council 09/27/2022 Regular Meeting Page 2 On October 21, 2020, the City Council adopted Ordinance No. 484 approving a Development Agreement (No. 2018-01, Attachment 1) and on October 7, 2020, Resolution Nos. 2020-3949 and 2020-3950 were adopted approving a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program, conditionally approving a Residential Planned Development Permit (No. 2018-01) for the Project, and a DDA (No. 2018-01), for a mixed-use development consisting of 79 residential units, 13,628 square feet of commercial and associated land improvements located at 226 High Street in the Downtown Specific Plan on an application of Daly Group, Inc (the “Project”). On-Site Remediation and Amendments to DDA Following approval of the Project by the City Council, the Applicant began performing further due diligence work to acquire the property from the Successor Agency. Following the Phase I environmental work, a soil and gas assessment (SGA) was conducted on the property. The findings of the SGA found the presence of lead prominent throughout the site. Remediation costs were estimated to be approximately $800,000. At the request of the Daly Group, on October 6, 2021, the City Council appointed Mayor Parvin and Councilmember Castro to serve on the Daly Group, Inc. ad hoc Committee to consider amending the terms of the existing DDA. The items discussed included construction funding and potential remediation costs. The items do not affect the current density or any substantive elements of the approved development. On December 15, 2021, the City Council adopted Resolution No. 2021-4057 approving the First Amendment to the DDA. The First Amendment extended the timeframe for the close of escrow and related conditions from December 31, 2021, to September 30, 2022, to allow the Developer additional time to complete required soil remediation on the property in order to show proof of financing as required in the DDA. Since that time, the ad hoc Committee and the developer have had ongoing meetings to move the Project forward. The building and site improvements plans were submitted to the City for review and initial comments were provided to the Developer in August, 2022. The Second Amendment to the DDA, approved by Council on September 21, 2022, corrects the legal description of the Project site to reflect the removal of approximately 240 square feet at the southwest corner resulting from the approved lot line adjustment. The Second Amendment also extends the validity of the property appraisal from six months to nine months to reflect the schedule impacts resulting from the unanticipated site remediation. The Second Amendment also proposes to extend the timeframe for the close of escrow and related conditions, from September 30, 2022, to April 8, 2023. 170 Honorable City Council 09/27/2022 Regular Meeting Page 3 DISCUSSION The Daly Group, Inc. performed additional work on the site and coordinated with the Department of Toxic Substance Control (DTSC) to further define the limits of remediation. During this time, the Developer was able to scope the limits of remediation to a small portion of the property on the southwest corner of the site. The ad hoc Committee and Developer have worked diligently to identify strategies to address the remediation requirements with sensitivity to the cost impacts on the Project. As a result of these discussions, a lot line adjustment was approved by the Community Development Director to “carve out” approximately 240 square feet at the southwest corner of the site where the most extensive remediation was required. Instead, this area was transferred to the City-owned site occupied by the Moorpark Chamber of Commerce and is not proposed to be developed. As a result, remediation of this portion of property will not be required as part of this Project. Additionally, this path allows the Developer to move forward without the lengthy DTSC permitting process and obtain proof of financing as required by the DDA. First Amendment to Development Agreement The DA works in coordination with the DDA to vest development rights, the timing of improvements, development fees, and other community benefits associated with the Project. The First Amendment to the DA is requested to reflect the property description of land being excluded from the Project following the lot line adjustment. The proposed First Amendment to the DA (Attachment 2, Exhibit A) corrects the legal description of the Project site to reflect the removal of approximately 240 square feet at the southwest corner resulting from the approved lot line adjustment. No further changes are proposed. ENVIRONMENTAL DETERMINATION Pursuant to the California Environmental Quality Act, the City Council adopted a Mitigated Negative Declaration (MND) on October 21, 2020, that analyzed the environmental impacts associated with development of the Project. The MND determined that there are no significant impacts with the inclusion of specific mitigation measures identified in the MND Mitigation Monitoring and Reporting Program. The proposed amendments to the DDA and DA do not present any additional environmental impacts. Therefore, the Project remains consistent with the previously-adopted MND and no further environmental documentation is required. NOTICING Public Notice for this meeting was given consistent with Chapter 17.44.070 of the Zoning Ordinance as follows: 1. Publication. The notice of the public hearing was published in the Ventura County Star on September 16, 2022. 171 Honorable City Council 09/27/2022 Regular Meeting Page 4 2. Mailing. The notice of the public hearing was mailed on September 16, 2022, to owners of real property, as identified on the latest adjusted Ventura County Tax Assessor Roles, within 1,000 feet of the exterior boundaries of the assessor’s parcel(s) subject to the hearing. 3. Sign. One 32 square-foot sign was placed at the street frontage on September 15, 2022. ATTACHMENTS 1. Development Agreement No. 2018-01 2. Draft Resolution No. 2022-681 172 PC ATTACHMENT 1 Recording Requested By And When Recorded Return to: CITY CLERK CITY OF MOORPARK 799 Moorpark A venue Moorpark, California 93021 \1111\\11\11\ 11\\\\\\\1111 \ 11\11111\11 \ \II\ II\ 20201102-00183311-01/52 Ventura County Clerk and Recorder MARK A. LUNN 111 02/2020 04:16:03 PM 1706387 $.00 RE EXEMPT FROM RECORDER'S FEES Pursuant to Government Code § 6103 12853-0062\2315 l 75v22.doc DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF MOORPARK AND DALY GROUP, INC 173 DEVELOPMENT AGREEMENT This Deve lopm e nt Ag ree me nt th e ("A g re e me nt") is mad e and e nt e re d into on O~L:7er "Z-:, , 202 0 by and betwe e n th e C ITY OF MOORPARK, a municipal corporation (referred to he re inafte r as "C it y ") and DALY GROUP , rNC., a California corporation , (referred to he re inafter as "D eve lop e r"). C ity a nd Deve lop er are referred to he re inafte r indi v idua ll y as a "Party" and collectively as th e "Parties." [n co ns id eration of th e mutu a l cove nants and ag ree ments co ntain ed in thi s Ag reem en t , C it y and Deve lop er agree as follows: 1. Rec it a l s . This Agree ment is mad e with res pect to the following facts and for th e following purpo ses , eac h of which is ac kno w led ge d as tru e and correct by the Parti es : 1.1 Purs ua nt to Government Code Section 65864 et seq. and M oo rpark Municipal Co d e C hapter 15 .40 , C it y is authorized to enter into a binding contractual agreement with any perso n hav in g a legal or equitabl e inte res t in real property within it s boundari es for th e development of such prope rt y in order to es ta bli sh certainty in th e deve lopm ent process . 1.2 Deve lop er has e ntered into a Di s po s ition and Deve lopm ent Agree m e nt ("ODA ") with the Ci ty to acquire ownership in fee simpl e of certain real prope rty within the C ity of Moorpark generall y refe rre d to as 19 2 High S t and identifi ed in that certain legal desc ription set forth in Exhibit "A-1", to gether with a sublicense agreement over that certain real prope rt y owned by the Ventura Co unty Transportation Co mmi ss ion , which s ublicen se agreement and it s legal desc ription are set forth in Exhibit "A-2 ," which exhibits are attached hereto and incorporated by reference, referTed to here in after co ll ective ly as the "Property". 1.3 The DO A establi shes certain Deve lop er covenants (Section 3 of the DOA), limitation s on trans fe r s of the sec urit y interes ts (Section 4), a Sc he dul e of Pe rform anc e (Exhibit B to th e DO A), and other obligations and responsibilities of the Parti es. Nothing co ntained here in is intended to s up e rse de , amend or otherwise exe mpt either Party from co mplianc e with th e provi s ion s of th e ODA. 1.4 Prior to , and in connection w ith , th e a pproval of thi s Agree m ent, th e C it y Co un c il rev iewed th e proj ect to be developed pursuant to this Agreem e nt as required by the Cali fornia Env ironm ental Q ua lity Act ("CEQA"). On Octo be r 7 , 2020 , at a dul y noticed public hearing a nd after inde pende nt rev iew and co n s ideration, the C ity Co uncil mad e th e req uired e nv ironm e ntal findings pursuant to CEQA a nd ad opted Resolution No. 2020-3949 , adoptin g that certai n Mitigated Negative Declaration ("MND ") and re lated Mitigation Monitoring and Reporting Program the ("MMRP") prepared for this Agreement and th e Project Approval s as defined in S ub section 1.5 of this Agree m e nt. 1.5 T he Downtown Specific Plan , as Amended , a nd the Residential Planned Development (RPD) Permit No. 20 18 -0 1 ("RPO 2018-01") inc luding a ll sub seq uen tl y approved modifications , permit adj ustments and amend m ents thereto (co ll ective ly, "the Proj e ct Approvals"; individually "a Project Approval") -1- I 2853-0062 123 I 5 I 75v22.doc 174 provide for the development of the Property with a mixed use development project consisting of 79-residential units, approximately 13,628 sq. ft of commercial and the construction of certain off-site improvements in connection therewith (collectively, "the Project"). 1.6 By this Agreement, City desires to obtain the binding agreement of Developer to develop the Property in accordance with the Project Approvals, the DOA and this Agreement. In consideration thereof, City agrees to limit the future exercise of certain of its governmental and propriety powers to the extent specified in this Agreement and the ODA. 1. 7 In consideration of the public benefits provided by the Developer pursuant to this Agreement, which are in addition to any public benefits the City could require from the Developer absent this Agreement, Developer desires to obtain the binding agreement of City and the City intends to grant Developer certain vested rights to proceed with the development of the Property, pursuant to the terms and conditions of this Agreement. In consideration thereof, Developer agrees to waive its rights to legally challenge the limitations and conditions imposed in this Agreement, the DOA, and in those Project Approvals that are granted by the City prior to or concurrently with the approval of this Agreement. 1.8 Developer would not enter into this Agreement to provide the public benefits and financial contributions described herein, without the assurance of the City that the Property can be developed as provided for herein. 1.9 City finds that this Agreement is consistent with the General Plan of City, as currently amended; the Downtown Specific Plan, as amended; the Zoning Ordinance of the City, except those portions exempted by the Downtown Specific Plan; and that the City has completed all necessary proceedings in accordance with the City's rules, and regulations for approval of this Agreement. 1.10 On September l 0, 2020, the Planning Commission commenced a duly noticed public hearing on this Agreement, and after independent review and consideration, recommended to the City Council adoption of this Agreement and consideration of the MND and MMRP, and adoption of CEQA environmental findings in accordance with CEQA. 1.11 On October 7, 2020, the City Council of City ("City Council") commenced a duly noticed public hearing on this Agreement, and after providing the opportunity for public comment, in its independent review and consideration closed the public hearing and introduced and provided first reading to Ordinance No. 484 ("the Enabling Ordinance"), which authorizes execution of this Agreement; considered and certified the MND and MMRP and made the required environmental findings; found that the provisions of this Agreement provide public benefits to persons residing or owning property in the City of Moorpark beyond the exactions for public benefits required or allowed to be required in the normal development review and approval process; and approved the execution and recording of this -2- 12853-006212315 l 75v22.doc 175 Agreement. On October 21, 2020, the City Council gave second reading to and adopted the Enabling Ordinance. 1.12 On Novt.ml:,u 2,>2020 upon execution of the City and Developer, this Agreement, in conjunction with a fully executed version of the DOA between the City of Moorpark and Daly Group, Inc. was recorded against the Prope,ty as required by California Government Code Section 65868.5 with the County of Ventura ("Effective Date"). NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promises, obligations and covenants herein contained, which arc incorporated herein by reference and hereafter made a part of this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby agreed and acknowledged, the City and Developer agree as follows: 2. Prope,ty Subject To This Agreement. All of the Property shall be subject to this Agreement. The Property may also be referred to hereinafter as "the site". 3. Binding Effect. Upon execution of this Agreement by the Parties and recordation of this Agreement, the terms of this Agreement are binding upon each Party and each successive successor in interest thereto (subject to Subsection 3.2 below) and constitute covenants and restrictions that run with the Property. This Agreement shall be recorded against the Property as required by California Government Code Section 65868.5. This Agreement will only bind and inure to the benefit of Developer and its successors in interest as permitted by Section 4.1 of the DOA ("Permitted Successor"), or such other party approved by the City. 3.1 3.2 Constructive Notice and Acceptance. Every Permitted Successor who acquires any right, title or interest in or to any portion of the Property shall be conclusively deemed to have consented and agreed to be bound by this Agreement, whether or not any reference to the Agreement is contained in the instrument by which such Permitted Successor acquired such right, title or interest, subject to Subsection 3.2 below. Release Upon Subsequent Transfer. Provided the applicable conveyance is permitted under the ODA or otherwise approved in writing by City, upon the conveyance of Developer's interest in the Property by Developer or its successor(s) in interest, the transferor shall be released from its obligations hereunder with respect to the Property conveyed as of the effective date of the conveyance, provided that the transferee expressly assumes all obligations of the transferred Property and a copy of the executed assignment and assumption agreement is delivered to the City prior to or in conjunction with the conveyance. Failure to provide a written assumption agreement hereunder shall not negate, modify or otherwise affect the liability of the transferee pursuant to this Agreement. 12853-0062\231 SI 7Sv22.doc 176 4. 5. 3.3 Priority of the DOA. Notwithstanding anything herein to the contrary, in the event of a direct conflict between a term or provision of the DOA and a term or provision of this Agreement, the parties agree that the term or provision of the DOA shall prevail. When the terms and provisions of the DDA and the DA are not in direct conflict, then the terms of both agreements shall be given equal effect. Development of the Property. The following provisions shall govern the development and use of the Property. 4.1 Permitted Uses. The permitted and conditionally permitted uses of the Property shall be limited to those that are allowed by the ODA, Project Approvals and this Agreement. 4.2 Development Standards. All design and development standards, including but not limited to density or intensity of use and maximum height and size of buildings, that shall be applicable to the Property are set forth in the ODA, Project Approvals and this Agreement. 4.3 Building Standards. All construction on the Property shall adhere to all City building codes in effect at the time the building construction plans are reviewed and approved by the Building Official of City for compliance with Title 15 of the Moorpark Municipal Code and to any federal, state or local building requirements that are then in effect ( collectively "the Building Codes"). 4.4 Reservations and Dedications. All reservations and dedications of land for public purposes that are applicable to the Property are set forth in the site design plans. Vesting of Development Rights. 5 .1 Vested Right to Develop; Timing of Development. Developer and its successors in interest shall have the vested right to develop the Property in accordance with the terms and provisions of the DDA, the Project Approvals and this Agreement. The Parties intend that this Agreement, together with the DDA and the Project Approvals, shall serve as the controlling documents for all subsequent actions, discretionary and ministerial, relating to the development and occupancy of the Property, including, without limitation, all Subsequent Approvals (as defined below). The Developer's rights and obligations to develop the Property, including the order, rate and times for that development shall be as provided in the DDA, the Project Approvals and this Agreement. 5.2 Conflicting Ordinances or Moratoria. No future amendment of any existing City ordinance, resolution or other action, or future adoption of any ordinance, resolution or other action, that purports to limit the rate or timing of development over time or alter the sequencing of development phases, whether adopted or imposed by the City Council or through the initiative or referendum process, shall apply to the Property, provided the Property is developed in accordance with the DDA, the Project Approvals and this Agreement. Nothing in this subsection shall -4- l 2853-0062\23 l 5175v22.doc 177 be construed to limit City's right to ensure that Developer timely provides all infrastructure required by the DOA, the Project Approvals, Subsequent Approvals and this Agreement. 5.3 Amendment of Project Approvals. No amendment, modification or revision of any of the Project Approvals, whether adopted or approved by the City Council or through the initiative or referendum process, shall apply to any portion of the Property, unless the Developer has agreed in writing to the amendment. 5.4 Issuance of Subsequent Approvals. Applications for land use approvals, entitlements and permits, including without limitation subdivision maps (e.g. tentative, vesting tentative, parcel, vesting parcel, and final maps), subdivision improvement agreements and other agreements relating to the Project, lot line adjustments, preliminary and final planned development permits, use permits, design review approvals ( e.g. site plans, architectural plans and landscaping plans), encroachment permits, and sewer and water connections that are necessary to or desirable for the development of the Project (collectively "the Subsequent Approvals"; individually "a Subsequent Approval") shall be consistent with the Project Approvals and this Agreement. For purposes of this Agreement, Subsequent Approvals do not include ministerial building permits. Subsequent Approvals shall be governed by the Project Approvals and by the applicable provisions of the Moorpark General Plan, the Moorpark Municipal Code and other City ordinances, resolutions, rules, regulations, policies, standards and requirements as most recently adopted or approved by the City Council or through the initiative or referendum process and in effect at the time that the application for the subsequent Approval is deemed complete by City ( collectively "City Laws"), except City Laws that: (a) change any permitted or conditionally permitted uses of the Property from what is allowed by the Project Approvals; (b) limit or reduce the density or intensity of the Project, or any part thereof, or otherwise require any reduction in the number of proposed buildings or other improvements from what is allowed by the Project Approvals; ( c) limit or control the rate, timing, phasing or sequencing of the approval, development or construction of all or any part of the Project in any manner, provided that all infrastructure required by the Project Approvals to serve the portion of the Property covered by the Subsequent Approval is in place or is scheduled to be in place prior to completion of construction; ( d) are not uniformly applied on a citywide basis to all substantially similar types of development projects or to all properties with similar land use designations; ( e) control residential rents; or -5- 12853-0062\23 l 5175v22.doc 178 ( f) modify the land use from what is permitted by RPD 2018-01 as of the Effective Date of this Agreement, the DDA and any Project Approvals. 5.5 Modification of Approvals. Throughout the term of this Agreement, Developer shall have the right, at its election and without risk to or waiver of any right that is vested in it pursuant to this Agreement, to apply to City for modification, amendments or revisions to Project Approvals and Subsequent Approvals. Such requests for modifications, amendments or revisions to the Project Approvals or Subsequent Approvals shall be made by Developer and reviewed and approved by the City as permitted by the City Municipal Code, including without limitation Section 17.44.100. Notwithstanding the foregoing, in no event shall the square footage of floor area of the Project approved for commercial use be reduced without City Council approval. The approval or conditional approval of any such modification, amendment or revision shall not require an amendment to this Agreement, provided that, in addition to any other findings that may be required in order to approve or conditionally approve the modification, a finding is made that the modification is consistent with the DOA and this Agreement and does not materially alter the permitted uses, density, intensity, maximum height, size of buildings or reservations and dedications as contained in the Project Approvals or DOA. 5.6 Issuance of Building Permits. No permit for construction issued by the City's Building Official pursuant to Title 15 of the City's Municipal Code ("Building Permit") shall be unreasonably withheld or delayed (including the processing thereof) from Developer, if Developer is in compliance with this Agreement, the DOA and the Project Approvals and Subsequent Approvals, if any. In addition, no final inspection, or certificate from the Building Official that construction work has been completed in compliance with approved building plans and Title 15 of the City's Municipal Code, and is safe and allowed to be entered and occupied by the public ("Certificate of Occupancy") shall be unreasonably withheld or delayed (including the processing thereof) from Developer if all infrastructure required by the Project Approvals, Subsequent Approvals, and this Agreement to serve that portion of the Project covered by the Building Permit is in place or is scheduled to be in place prior to issuance of the Certificate of Completion for the final commercial unit, or the Final Inspection of the final residential unit, the Developer is in compliance with all provisions of this Agreement, the DDA, the Project Approvals and Subsequent Approvals. Consistent with Subsection 5.4 of this Agreement, in no event shall Building Permits be allocated on any annual numerical basis or on any arbitrary allocation basis. 5. 7 Moratorium on Development. Nothing in this Agreement shall prevent City, whether by the City Council or through the initiative or referendum process, from adopting or imposing a moratorium on the processing and issuance of Subsequent Approvals and Building Permits and on the finalizing of Building Permits by means of a final inspection or certificate of occupancy, provided that the moratorium is adopted or imposed (i) on a Citywide basis to all substantially -6- I 2853-0062\2315175v22.doc 179 6. similar types of development projects and properties with similar land use designations and (ii) as a result of a utility shortage or a reasonably foreseeable utility shortage including without limitation a shortage of water, sewer treatment capacity, electricity or natural gas. Developer Agreements. 6.1 Development as a Mixed Use Project. Developer shall comply with (i) this Agreement, (ii) the DOA, (iii) the Project Approvals, (iv) all Subsequent Approvals, if any, for which it was the applicant or a successor in interest to the applicant, and (iv) the MMRP of the MND and any subsequent or supplemental environmental actions resulting from or required by any Subsequent Approvals. In the event of a conflict between the DOA, this Agreement, the Project Approvals and the Subsequent Approvals, priority shall be given first to the provisions of the DOA, second to those of this Agreement, third to the Project Approvals, and last to the Subsequent Approvals. Any administrative and support offices or other structures and amenities to serve the occupants of the Project are considered to be part of the residential use of the Property. 6.2 Condition of Dedicated or Conveyed Property. All lands and interests in land dedicated to City shall be free and clear of liens and encumbrances other than easements or restrictions that do not preclude or interfere with use of the land or interest for its intended purpose, as reasonably determined by City. 6.3 Los Angeles Avenue Area of Contribution (LAAOC) Fees. Developer shall pay the LAAOC fee for commercial uses of $17,754.25 based upon a commercial rate of $56,749 per acre and contemplated commercial space of 13,628 square feet (0.31 acres). The fee shall be paid prior to issuance of the Final Inspection or Certificate of Occupancy for each building (A, B 1, 82, C, D, E and F). If the LAAOC Fee is not fully paid by August 31, 2022, then commencing on September 1, 2022, the unpaid portion of the LAAOC Fee shall be adjusted by any increase in the Consumer Price Index (CPI) until all such fees have been paid. The CPI increase shall be determined by using the information provided by the U.S. Department of Labor, Bureau of Labor Statistics, for all urban consumers within the Los Angeles/Long Beach/ Anaheim metropolitan area by comparing the CPI for the month of October for the year in which the amount is paid with the same month in 2020; provided, however, in the event there is a decrease in the CPI, the fee shall remain at its then current amount (such process for determination being referred to herein as the "CPI Methodology"). 6.4 Traffic Mitigation Fee. As a condition of the issuance Final Inspection for each residential dwelling unit within the boundaries of the Property, Developer shall pay City a one-time traffic mitigation fee as described herein ("Citywide Traffic Fee"). The Citywide Traffic Fee may be expended by City in its sole and unfettered discretion. The amount of the Citywide Traffic Fee shall be One Thousand One Hundred and Thirty-three Dollars ($1,133) per residential unit. -7- l 2853-006212315 l 75v22.doc 180 6.5 6.6 6.7 The Citywide Traffic Fee shall be adjusted annually commencing January 1, 2022 and annually thereafter by the change in the Caltrans Highway Bid Price Index (Bid Price Index) for Selected California Construction Items for the twelve (12) month period available on December 31 of the preceding year ("annual indexing"). In the event there is a decrease in the Bid Price Index for any annual indexing, the current amount of the fee shall remain until such time as the next subsequent annual indexing which results in an increase. Air Quality Fees. Developer agrees that the Mitigation Measures included in the City Council approved MND and MMRP, or subsequent environmental clearance document approved by the Council, set forth the mitigation requirements for air quality impacts. Developer agrees to pay to City a one-time air quality mitigation fee, as described herein ("Air Quality Fee"), in satisfaction of the Transportation Demand Management Fund mitigation requirement for the Project. The Air Quality Fee may be expended by City in its sole discretion for reduction of regional air pollution emissions and to mitigate residual Project air quality impacts. The Air Quality Fee shall be One Thousand Seven Hundred and Nine Dollars ($1,709.00) per residential dwelling within the Property to be paid prior to the issuance of a building permit for each residential dwelling unit in the Project. If the Air Quality Fee is not paid by August 31, 2022, then commencing on September 1, 2022, the unpaid portion of the Air Quality Fee shall be adjusted by any increase in the Consumer Price Index (CPI) until all such fees have been paid. The CPI increase shall be determined by using the information provided by the U.S. Department of Labor, Bureau of Labor Statistics, for all urban area consumers within the Los Angeles/Long Beach/ Anaheim metropolitan area during the prior year. The calculation shall be made using the month of October over the prior month of October. In the event there is a decrease in the CPI for any annual indexing, the fee shall remain at its then current amount until such time as the next subsequent annual indexing which results in an increase, such process for determination being referred to herein as the CPI Methodology. Art in Public Places Fee. Developer agrees to pay the Art in Public Places Fee ("Art Fee") in effect for each mixed use building prior to the issuance of the building permit for that mixed use building within the Project consistent with City Resolution No. 2005-2408 or any Successor Resolution (1.0 percent of total building valuations excluding land value and off-site improvement costs, for such building); provided, however, that the amount of the Art Fee shall be offset, on a dollar-for-dollar basis, for all art installed in the Project by or on behalf of Developer. Other Development and Processing Fees. Developer agrees to pay all City capital improvement, development, and processing fees as set forth on "Exhibit F" hereof. Except as set forth on "Exhibit F" hereof, the City shall not impose upon or charge any other amount to Developer associated with the Project as long as the Project is constructed in a manner consistent with Residential Planned Development 2018-01. -8- l2853-0062\23 l 5 l 75v22.doc 181 6.8 6.9 Processing Fees. Within thirty (30) days of the Effective Date, Developer shall pay all outstanding City processing costs related to preparation of this Agreement, the Project Approvals and the MND. Workforce Housing. (a) Developer shall not be entitled to any additional density bonuses or incentives or concessions as otherwise granted pursuant to State law, and further agrees, in consideration for the density obtained through the Project Approvals, to construct on site and income restrict twelve (12) residential rental units (all for moderate income levels) to eligible tenants meeting moderate income thresholds for the life of the Project. The twelve units shall consist of eight (8) studio apartments and four (4) two bedroom apartments, as identified on Exhibit "D" hereof; provided, however, that Developer may change the location of such units within the Project, subject to the reasonable approval of the City Manager. One studio and one two-bedroom apartment (for a total of two units) shall be handicap accessible and shall be reserved for and occupied by persons eligible for such accommodations, to the extent there is a qualified handicapped affordable person ready to occupy such unit. Should there be a qualified moderate income prospective tenant desiring to rent such unit but all such units are rented, Developer shall add such prospective tenant to the waiting list until such affordable handicap accessible units becomes available. When an affordable unit that is not handicap accessible becomes available, the non-handicapped affordable tenant who occupies the affordable handicap unit shall be relocated to another affordable unit that is not handicap accessible in order to allow the qualified handicap tenant to occupy the handicap accessible unit. Developer shall include a provision in the non-handicap affordable unit lease that the non-handicap affordable tenant agrees to be relocated, at Developer cost, as soon as the non-handicap unit becomes available. (b) "Moderate income households" shall meet the criteria of one hundred twenty percent (120%) or less of the County Median Income, adjusted for household size appropriate to the Unit. The household income amount for Moderate Income households for any year shall be based on the amount most recently published by HCD as the Household Income Limits for Ventura County ("HCD Income Limits") or such successor information in the event the referenced published information is no longer available. The household income limit, affordability threshold and the affordable rent for moderate income units must be based on an income equal or less than the amounts stated in this paragraph, in accordance with the provision of the Affordable Housing Agreement executed for the Project. ( c) Rents for Moderate Income units will be calculated pursuant to Health and Safety Code Section 50053, as may be amended, which states that rents will be based on 30% of 110% of median income for the household size appropriate to the unit, regardless of the actual household size living in the unit. Per Health and Safety Code Section 50025.5 (h) "adjusted for family size -9- 12853-0062\2315 l 75v22.doc 182 appropriate to the unit" shall mean for a household of one person in the case of a studio unit and three persons in the case of a two-bedroom unit. Under no circumstance shall rent charged a moderate income household exceed the market rental rate for the project. The maximum rents allowable in the affordable units for 2020 are below. The figure adjusts annually as reflected in changes to the California Department of Housing and Community Development Department (HCD) Income Limits: Unit Type Moderate 30% of 110% of AMI Studio $1,882 2 Bedroom, 2 Bath $2,420 Illustrative Only: Figures are as of September 2020 and subject to change ( d) Developer further agrees that no grading permit shall be issued until the Affordable Housing Agreement is executed by the City and Developer, which Affordable Housing Agreement shall become effective upon the issuance by the City of the Certificate of Occupancy, as contemplated in this Agreement. The Affordable Housing Agreement shall include, but not be limited to all terms addressed in this section 6.9. ( e) Developer agrees not to convert the residential units in the Project to for-sale condominiums, planned development, stock cooperative or other common interest development, hotel/motel, or as congregate care or assisted living facility for the life of the Project. Developer further agrees it shall not permit any of the residential units to be used on a transient basis and shall not rent any unit for a period of less than monthly. (f) Developer agrees that the units used to house qualified moderate income tenants shall at all times and in all manner the same as the market rate units including, but not limited to the quality and maintenance of flooring, window covers, appliances, sinks, bathtubs and toilets, HV AC, storage space and type, and the number and location of required parking spaces. (g) Developer further agrees that it has the obligation to provide the required number of affordable housing units as specified above regardless of the cost to construct said housing units. (h) At no time shall any of the affordable units be rented to an employee, agent, officer, contractor, subcontractor, affiliated company or subsidiary of Developer, except as otherwise permitted by local, state or federal law. (i) Developer shall place a deposit of $5,000 with the City to administer the affordable provision and other requirement of the Affordable Housing Agreement. Use of the fee shall be documented and forwarded to Developer by December 31 st of each year. Any expenses charged against Developer's -10- 12853-0062\2315 l 75v22.doc 183 deposit shall be replenished by Developer on or before February 1 of each year commencing after the first residential occupancy for the Project. The maximum amount of annual deposit the City shall have on hand after February 1 of each year is $5,000. 6.10 If any conflict exists between this Agreement and the Affordable Housing Agreement, the Affordable Housing Agreement shall control to the extent of any such conflict. 6.11 Annual Review Procedures. Developer agrees to meaningfully participate with the City in compliance with Section 15.40.150 of the Moorpark Municipal Code and any provision amendatory or supplementary thereto for annual review of this Agreement and further agrees that the annual review shall include evaluation of its compliance with the approved MND and MMRP; provided, however, the failure of City to conduct any such annual review shall not, in any manner, constitute a breach of this Agreement by Developer. 6.12 Eminent Domain. Developer agrees that any election to acquire property by eminent domain shall be at City's sole discretion, and only after compliance with all legally required procedures including but not limited to a hearing on a proposed resolution of necessity. 6.13 Intentionally Deleted 6.14 Fee Protest Waiver. Developer agrees that any fees and payments specifically provided for in this Agreement for the Project shall be made without reservation, and Developer expressly waives the right to payment of any such fees under protest pursuant to California Government Code Section 66020 and statutes amendatory or supplementary thereto. Developer further agrees that the fees it has agreed to pay pursuant to Subsections 6.3, 6.4. and 6.5 of this Agreement are not public improvement fees collected pursuant to Government Code Section 66006 and statutes amendatory or supplementary thereto. 6.15 CPI Indexes. In the event the "CPI" referred to in Subsections 6.3 and 6.5 or the Bid Price Index referred to in Subsection 6.4 is discontinued or revised, a successor index with which the "CPI" and or Bid Price Index are replaced shall be used in order to obtain substantially the same result as would otherwise have been obtained if either or both the "CPI" and Bid Price Index had not been discontinued or revised. 6.16 [INTENTIONALLY LEFT BLANK]. 6.17 Insurance. 6.17.1 From and after the Effective Date and the Close of Escrow, as that term is defined in the DOA, and for so long as title to the Property is held by Developer, Developer shall obtain and maintain at no cost or expense to the City, with a reputable and financially responsible insurance company -11- l 2853-0062\2315 l 75v22.doc 184 reasonably acceptable to the City: (i) after the opening of the Project for business, commercially reasonable casualty insurance for the Improvements in an amount not less than the replacement cost of the Improvements (subject to commercially reasonable deductibles) with a reasonable inflation rider; (ii) commercial broad form general liability insurance, insuring against claims and liability for bodily injury, death, or property damage arising from the construction, use, occupancy, condition, or operation of the Property, which liability insurance shall provide combined single limit protection of at least $5,000,000 and shall include a reasonable inflation rider, contractual liability coverage and products and completed operations coverage, and (iii) commercial automobile liability insurance of at least $1,000,000 combined single limit. Such liability insurance policies shall name the City and its council members, board members, officers, agents and employees as additional insured. 6.17.2 Before commencement of any demolition or construction work by Developer on any portion of the Property owned by Developer, Developer shall obtain and maintain in force until completion of such work: (i) "all risk" builder's risk insurance, including coverage for vandalism and malicious mischief, in a form and amount and with a company reasonably acceptable to the City, and (ii) workers' compensation insurance covering all persons employed by Developer in connection with work on the Project, or any portion thereof. During the construction of Improvements on any portion of the Property by Developer, such builder's risk insurance shall cover improvements in place and all material and equipment at the job site furnished under contract, but shall exclude contractors', subcontractors', and construction managers' tools and equipment and property owned by contractors' and subcontractors' employees. 6.17.3 Each architect and each licensed engineer engaged by Developer for completion of the construction work shall provide professional liability insurance with a limit of liability of at least One Million Dollars ($1,000,000.00). 6.17.4 Developer shall also furnish or cause to be furnished to the City evidence satisfactory to the City that any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 6.17.5 With respect to each policy of insurance required above, Developer and each of Developer's general contractors, engineers and architects shall furnish to the City a certificate on the insurance carrier's form setting forth the general provisions of the insurance coverage promptly after written request by City showing the additional insureds. The certificate shall also be furnished by Developer prior to commencement of construction of any Improvements. -12- l 2853-0062\2315175v22.doc 185 6.17.6 All such policies required by this Section shall contain a waiver of the insurer of all rights of subrogation against the City and other additional insureds. All such insurance shall have deductible limits which shall be commercially reasonable. 7. City Agreements. 7.1 Commitment of Resources. At Developer's expense, City shall commit reasonable time and resources of City staff to work with Developer on the expedited processing of applications for Project Approvals and all Subsequent Approvals and Building Permits for the Project area and, if requested in writing by Developer, shall use overtime and independent contractors whenever possible. 7.2 Easement and Fee Title Acquisitions. If requested in writing by Developer and limited to City's legal authority, City at its sole and absolute discretion shall proceed to acquire, at Developer's sole cost and expense, easements or fee title to land in which Developer does not have title or interest in order to allow construction of public improvements required of Developer including any land which is outside City's legal boundaries. The process shall generally follow Government Code Section 66462.5 et seq. and shall include the obligation of Developer to enter into an agreement with City, guaranteed by cash deposits and other security as the City may require, to pay all City costs including but not limited to, acquisition of the interest, attorney fees, appraisal fees, engineering fees, City direct costs, including without limitation staff costs and City overhead expenses. 7.3 Concurrent Entitlement Processing. City agrees that whenever possible, as determined by City in its sole discretion, to process concurrently all land use entitlements for the Project so long as the applications for such entitlements are "deemed complete" in compliance with the requirements of Chapter 4.5 of Division 1, "Review and approval of Development Projects" (Permit Streamlining Act) of the California Government Code. 7.4 Park Fees. City agrees that no Park Fee is required of Developer as the proposed Plaza space within the Project meets all of the obligations under applicable law for park land dedication. 7.5 Streetscape Improvements. City shall construct or cause to be constructed that portion of the streetscape improvements within the City's existing Right-of-Way ("R-O-W Work"), as shown on the attached Exhibit "B". The improvements shall be located within the public right-of-way on the south side of High Street along the frontage of project area. This area is approximately west of the High Street/Walnut Street Intersection and extending easterly beyond the High Street/Bard Street Intersection. Such improvements shall accommodate connection with the Project and be consistent with the Downtown Streetscape Plan, and to the extent that they can be consistent with Street Depot landscaping plans, civil engineering and Hardscape/Landscape plans approved by the City as -13- 12853-0062\23 l 5175v22.doc 186 shown on Exhibit "C". Development and construction of the streetscape and the cost of any change orders reasonably required will be borne by the City. 7.6 [INTENTIONALLY LEFT BLANK] 7. 7 Ground Floor Commercial or Residential Space Conversion. The Developer shall construct a total of approximately 13,628 square feet of commercial space, including approximately 8,371 square feet of ground floor commercial space and approximately 5,257 square feet of stand-alone commercial space as part of the Project. Developer shall utilize commercially reasonable means to lease the commercial retail spaces; provided, however, in the event, despite the commercially reasonable efforts of Developer to lease the commercial retail spaces, and only and upon sufficient showing to, and approval by, the City Council (such as monthly marketing showing number of inquiries, who inquired and response efforts, marketing frequency, attempted rental rates) made at any time after the first anniversary of the Certificate of Occupancy for each commercial space, Developer may convert the commercial spaces to "active live- work," residential uses. Active uses are those uses which remain open to the public during regular business hours, generate a high volume of customer foot traffic, provide window displays to promote views into the business, and that the public may see goods that are typically carried away by customers or provide services of a personal or business nature. Developer may convert ground-floor unoccupied residential or live-work units to commercial retail spaces, with City Manager approval, provided: (i) those units are not assigned or otherwise counted towards the Project's affordable housing obligation or as a handicap accessible unit; and (ii) the amount of square footage of the unit converted together with all other commercial space in the Project does not exceed 15,018 square feet, unless that conversion is accompanied by a modification to RPD 2018-01. 8. State or Federal Law and Regulations. In the event that any state or federal law or regulation enacted after the date the Effective Date prevents or precludes compliance with any provision of the Agreement or requires changes in the plans or permits approved or issued by the City, and the City and Developer concur in those determinations, then such provision shall be suspended, or with Developer's written consent, modified or extended as necessary to comply with such state or federal law or regulation, as required by a court of competent jurisdiction or as mutually agreed by the Parties. In addition, Developer shall have the right to challenge such law or regulation, and in the event such challenge is successful, this Agreement shall remain unmodified and in full force and effect. 9. Demonstration of Good Faith Compliance. In order to ascertain compliance by Developer with the provisions of this Agreement, the Agreement shall be reviewed annually in accordance with Moorpark Municipal Code Chapter 15 .40 or any successor thereof then in effect. The failure of City to conduct any such annual review shall not, in any manner, constitute a breach of this Agreement by City, diminish, impede, or abrogate the obligations of or benefits granted to Developer hereunder or render this Agreement -14- l2853-006212315 l 75v22.doc 187 invalid or void. At the same time as the referenced annual review, City shall also review Developer's compliance with the MMRP. 10. Authorized Delays. This Section shall not apply to the DOA, as delays thereunder are governed by Section 6.6 thereof. Performance by any Party of any obligations hereunder that are not construction obligations under the DOA, other than payment of fees, shall be excused during any period of "Excusable Delay", as hereinafter defined, provided that the Party claiming the delay gives written notice of the delay to the other Parties as soon as possible after the same has been ascertained. For purposes hereof, Excusable Delay shall mean delay that directly affects, and is beyond the reasonable control of, the Party claiming the delay, including without limitation: (a) act of God; (b) civil commotion; (c) riot; ( d) strike, picketing or other labor dispute; ( e) shortage of materials or supplies; (f) damage to work in progress by reason of fire, flood, earthquake or other casualty; (g) failure, delay or inability of City or other local government entity to provide adequate levels of public services, facilities or infrastructure to the Property including, by way of example only, the lack of water to serve any portion of the Property due to drought; (h) delay caused by a delay by other third party entities which are required to approve plans or documents for Developer to construct the Project, or restrictions imposed or mandated by such other third party entities or governmental entities other than City, (including but not limited to, Ventura County Watershed Protection District); or (i) delays resulting from or related to COVID-19 or any similar virus, public health crisis or pandemic, U) litigation brought by a third party attacking the validity of this Agreement, a Project Approval, a Subsequent Approval or any other action necessary for development of the Project. 11. Default Provisions. 1 1.1 Default by Developer. The Developer shall be deemed to have breached this Agreement ("Developer Default") if it: 11.1.1 Practices any fraud or deceit upon City; or willfully violates any order, ruling or decision of any regulatory or judicial body having jurisdiction over the Property or the Project, provided that Developer may contest any such order, ruling or decision by appropriate proceedings conducted in good faith, in which event no breach of this Agreement shall be deemed to have occurred unless and until there is a final adjudication adverse to Developer; or 11.1.2 Fails to make any payments required under this Agreement within twenty (20) business days after City gives written notice to Developer that the same is due and payable; or 11.1.3 Breaches any of the other material provisions of this Agreement and fails to cure the same within thirty (30) days after City gives written notice to Developer of such breach ( or, if the breach is not able to be cured within such thirty (30) day period, Developer fails to start to cure the same within -15- l 2853-0062\2315 l 75v22.doc 188 thirty (30) days after delivery of written notice by City of such breach or fails to thereafter diligently prosecute the cure to completion). 11.1.4 Breaches the terms of the DOA, and fails to cure such breach within the cure period, if any, provided under the DOA. 11.2 Default by City. City shall be in breach of this Agreement if it breaches any of the provisions of this Agreement and fails to cure the breach within thirty (30) days after Developer gives written notice to City of the breach ( or, if the breach is not able to be cured within such thirty (30) day period, City fails to start to cure the same within thirty (3 0) days after delivery of written notice from Developer of such breach or fails to thereafter diligently prosecute the cure to completion) ("City Default"). 11.3 Content of Notice of Violation. Every notice of breach shall state in writing with specificity that it is given pursuant to this section of this Agreement, the nature of the alleged breach, and the manner in which the breach may be satisfactorily cured. Every notice shall state the applicable period to cure. The notices shall be given in accordance with Section 21 hereof. 11.4 Remedies for Breach. The Parties acknowledge that remedies at law, including without limitation money damages, would be inadequate for breach of this Agreement by any Party due to the size, nature and scope of the Project. The Parties also acknowledge that it would not be feasible of possible to restore the Property to its natural condition once implementation of the Agreement has begun. Therefore, the Parties agree that the remedies for breach of this Agreement shall be limited to the remedies expressly set forth in this subsection. If the breach is a City Default, Developer shall be entitled to seek injunctive relief, declaratory relief, specific performance, but in no event shall Developer be entitled to any monetary damages, including but not limited to, damages for lost profits or consequential damages). In the event this Agreement is terminated by City pursuant to the provisions of Chapter 15.40 of the Moorpark Municipal Code, and such termination is found invalid or unenforceable by a court of competent jurisdiction, Developer shall not be entitled to monetary damages for the termination, loss profits, or consequential damages incurred that are the result of the termination. 11.5 In addition, and notwithstanding any other language of this Agreement, if the breach is of Subsection 6. 9 or 6.11 of this Agreement, City shall have the right to withhold the issuance of building permits from the date that the notice of violation was given pursuant to Subsection 11.3 hereof until the date that the breach is cured as provided in the notice of violation. 11.6 Nothing in this subsection shall be deemed to preclude City from prosecuting a criminal action against Developer if it violates any City ordinance or State statute. -16- 12853-0062\23 l 5175v22.doc 189 12. Mortgage Protection. 12.1 Discretion to Encumber. The Parties hereto agree that this Agreement shall not prevent or limit Developer, in any manner, at Developer's sole discretion, from encumbering the Property or any portion thereof or any improvements thereon then owned by such person with any mortgage, deed of trust or other security device ("Mortgage") securing financing with respect to the Property or such portion, to the extent permitted by the DOA. Any such permitted mortgagee or trust deed beneficiary of the Property or any portion thereof or any improvements thereon and its successors and assigns ("Mortgagee") shall be entitled to the following rights and privileges: 12.2 Lender Requested Modification/Interpretation. City acknowledges that the lenders providing financing to Developer for the Property may request certain interpretations and modifications of this Agreement. City therefore agrees upon request, from time to time, to meet with Developer and representatives of such lenders to discuss in good faith any such request for interpretation or modification. The City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement or the DOA, including, without limitation, Sections 4.2, 4.3 and 4.4 thereof, and the City Manager is specifically authorized to make such interpretations or modification on behalf of the City, provided, further, that any modifications of this Agreement shall be subject to the provisions of this Agreement pertaining to modifications and amendments. 12.3 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, any lender that obtains a mortgage or deed of trust against the Property or the Project shall be entitled to the following rights and privileges: 12.3.1 Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith and for value, but this Agreement shall be binding and effective against every owner of the Property, or part thereof, whose title thereto is acquired by foreclosure, trustee sale or otherwise; provided, however, such owner shall not be responsible for any matters that occurred prior to their acquisition of the Property or such portion. 12.3.2 The mortgagee or beneficiary under any Mortgage may submit to City a written request to receive a copy of any notice of default given by City to Developer under this Agreement, but the request must include the address for notices for the mortgagee or beneficiary and a copy of the recorded Mortgage. 12.3.3 If the City timely receives a request under Section 12.3.2 above that complies with Section 12.3 .2 above, then within ten ( 10) days after City -17- 12853-0062\2315 l 75v22.doc 190 sends to Developer a notice of default under this Agreement, City shall send a copy of such notice to the applicable mortgagee or beneficiary at the address for notices in its request. The mortgagee or beneficiary shall then have the right, but not the obligation, to cure the applicable Developer Default within the cure period provided to Developer under this Agreement, subject to the provisions of Section 12.3.5, below. 12.3.4 Any mortgagee or beneficiary under a Mortgage who acquires title to or possession of the Project or any portion thereof, by any means and any person or entity who acquires title to all or any portion of or interest in the Project by deed in lieu of foreclosure, shall take title and possession of the Project subject to the terms of this Agreement, but shall not be obligated to complete the Project or pay any fees accruing after it acquires title or possession, if it elects to terminate this Agreement by written notice to City within 30 days after acquiring title or possession; however, no such termination shall affect the City's ability to enforce all other governmental approvals or permits, and conditions of approval (including dedication requirements) for the Project. 12.3.5 If a non-monetary default is not cured by Developer within thirty (30) days after written notice by City to Developer or a monetary default is not cured within twenty (20) business days after written notice by City to Developer, then each Mortgagee shall be entitled to receive written notice from City of the applicable default by Developer under this Agreement provided the Mortgagee has delivered a written request to the City for such notice and shall have provided its address for notices in writing to the City. Each such Mortgagee shall have a further right, but not the obligation, to cure such default for an additional period of thirty (30) days after delivery of such notice of default by City to the Mortgagee. City shall not commence legal action against Developer by reason of Developer's breach without allowing the Mortgagee to cure the same as specified herein. 13. Estoppel Certificate. At any time and from time to time, Developer may deliver written notice to City and City may deliver written notice to Developer requesting that such Party certify in writing that, to the knowledge of the certifying Party, (i) this Agreement is in full force and effect and a binding obligation of the Parties, (ii) this Agreement has not been amended, or if amended, the identity of each amendment, and (iii) the requesting Party is not in breach of this Agreement, or if in breach, a description of each such breach. The Party receiving such a request shall execute and return the certificate within ten ( 10) days following receipt of the notice. City acknowledges that a certificate may be relied upon by successors in interest to the Developer who requested the certificate and by holders of record of deeds of trust on the portion of the Property in which that Developer has a legal interest. 14. Administration of Agreement. Any consent or approval herein to be given by the City may be given by the City Manager provided it is expressed in writing. Any decision by -18- l2853-0062\2315 l 75v22.doc 191 City staff concerning the interpretation and administration of this Agreement and development of the Property in accordance herewith may be appealed by the Developer to the City Council, provided that any such appeal shall first be filed with the City Clerk of City within sixty (60) days after the affected Developer receives written notice of the staff decision. The City Council shall render its decision to affirm, reverse or modify the staff decision within thirty (30) days after the appeal was filed. The Developer shall not seek judicial review of any staff decision without first having exhausted its remedies pursuant to this section. 15. Amendment or Termination by Mutual Consent. In accordance with the provisions of Chapter 15 .40 of the Moorpark Municipal Code of City or any successor provisions thereof then in effect, this Agreement may be amended or terminated, in whole or in part, by mutual consent of City and Developer, or their respective successors and assigns. 16. Exemption for Amendments of Project Approvals. No amendment of the DOA, a Project Approval or Subsequent Approvals shall require an amendment to this Agreement and any such amendment shall be deemed to be incorporated into this Agreement at the time that the amendment becomes effective, provided that the amendment is consistent with this Agreement and does not alter the permitted uses, density, intensity, maximum height, size of buildings or reservations and dedications as contained in the Project Approvals or Subsequent Approvals. However, any amendment to a Project Approval or Subsequent Approval which is inconsistent with the terms of the DOA shall require an amendment of the ODA. 17. Developer Indemnification. Developer shall indemnify, defend with counsel approved by City, and hold harmless City and its officers, employees and agents from and against any and all losses, liabilities, fines, penalties, costs, claims, demands, damages, injuries or judgments (collectively, "Claims") arising out of, or resulting in any way from, Developer's performance pursuant to this Agreement including, but not limited to, Developer's construction of the Project on the Property, failure to comply with provisions of the California Labor Code, including but not limited to the payment of prevailing wages, to the extent they apply to the Project, and any injury sustained by any person in connection with the construction or partial construction of buildings and improvements on the Property by or on behalf of Developer. In addition, Developer shall indemnify, defend with counsel approved by City, and hold harmless City and its officers, employees and agents from and against any action or proceeding to attack, review, set aside, void or annul this Agreement, the DOA, or any provision of this Agreement or of the ODA, the environmental documents prepared and approved in connection with the approval of the Project, or any Project Approval or Subsequent Approval or modifications thereto, or any other subsequent entitlements for the project and including any related environmental approval. Notwithstanding the foregoing, Developer shall have no obligations under this Section 1 7 for Claims arising out of, or resulting in any way from, the gross negligence or willful misconduct of City, its officers, employees or agents, except that if a final court judgment is rendered with respect to that Claim and the City is found not liable for gross negligence or willful misconduct, then Developer shall be obligated to reimburse City for its attorneys' fees and costs in defending itself from that Claim. -19- 12853-0062\23 I 5175v22.doc 192 18. Time of Essence. Time is of the essence for each provision of this Agreement of which time is an element. 19. Operative Date. This Agreement shall become operative on the Operative Date, being the date the Enabling Ordinance becomes effective pursuant to Government Code Section 36937. 20. Term; Tolling and Extension During Legal Challenge or Moratoria. This Agreement shall remain in full force and effect for a term of twenty (20) years commencing on the Operative Date or until one year after the issuance of the final building permit for occupancy of the last unit of the Project, whichever occurs last, unless said term is amended or the Agreement is sooner terminated, as otherwise provided herein. Expiration of the term or earlier termination of this Agreement shall not affect any Project Approval or Subsequent Approval or Building Permit or Final Building Permit that has been granted or any right or obligation arising independently from such Project Approval or Subsequent Approval or Building Permit or Final Building Permit. Upon expiration of the term or earlier termination of this Agreement, the Parties shall execute any document reasonably requested by any Party to remove this Agreement from the public records as to the Property, and every portion thereof, to the extent permitted by applicable laws. In the event this Agreement, any of the land use entitlements related to the Project, the MND, or any subsequent approvals or permits required to implement the land use entitlements for the Project or this Agreement are subjected to legal challenge and Developer is unable to proceed with development of the Project due to such legal challenge ( or Developer provides written notice to the City that it is electing not to proceed with development of the Project until such legal challenge is resolved to Developer's reasonable satisfaction), the Term of this Agreement and timing for obligations imposed by this Agreement shall be extended and tolled during such legal challenge until the entry of a final order or judgment upholding this Agreement, the MND, or the land use entitlements, approvals, or permits related to this Agreement, or the litigation is dismissed by stipulation of the parties; provided, however, that notwithstanding the foregoing, Developer shall have the right to elect, in Developer's sole and absolute discretion, to proceed with development of the Project at any point by providing the City written notice that it is electing to proceed, in which event the tolling of the Term of this Agreement shall cease as of the date of such notice. Similarly, if Developer is unable to develop the Project due to the imposition by the City or other public agency of a development moratoria for a public health and safety reason umelated to the performance of Developer's obligations under this Agreement (including without limitation, moratoria imposed due to the unavailability of water or sewer to serve the Project), then the Term of this Agreement and the timing for obligations imposed pursuant to this Agreement shall be extended and tolled for the period of time that such moratoria prevents development of the Project. 21. Notices. All notices and other communications given pursuant to this Agreement shall be in writing and shall be deemed received when personally delivered or upon the third (3rd) -20- l 2853-006212315175v22.doc 193 day after deposit in the United States mail, registered or certified, postage prepaid, return receipt requested, to the Parties at the addresses set forth in Exhibit "E" attached hereto and incorporated herein. Any Party may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. 22. Entire Agreement. This Agreement and those exhibits and documents referenced herein contain the entire agreement between the Parties regarding the subject matter hereof, and all prior agreements or understandings, oral or written, are hereby merged herein. This Agreement shall not be amended, except as expressly provided herein. 23. Waiver. No waiver of any provision of this Agreement shall constitute a waiver of any other provision, whether or not similar; nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless it is executed in writing by a duly authorized representative of the Party against whom enforcement of the waiver is sought. 24. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall be effective to the extent the remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 25. Relationship of the Parties. Each Party acknowledges that, in entering into · and performing under this Agreement, it is acting as an independent entity and not as an agent of any of the other Parties in any respect. Nothing contained herein or in any document executed in connection herewith shall be construed as creating the relationship of partners, joint ventures or any other association of any kind or nature between City and Developer, jointly or severally. 26. No Third Party Beneficiaries. This Agreement is made and entered into for the sole benefit of the Parties and their respective successors in interest. No other person shall have any right of action based upon any provision of this Agreement. 27. Recordation of Agreement and Amendments. This Agreement and any amendment thereof shall be recorded with the County Recorder of the County of Ventura by the City Clerk of City within the period required by Chapter 15.40 of the Moorpark Municipal Code of City or any successor thereof then in effect. 28. Cooperation Between City and Developer. City and Developer shall execute and deliver to the other all such other and further instruments and documents as may be reasonably necessary or convenient to carry out the purposes of this Agreement. 29. Rules of Construction. The captions and headings of the various sections and subsections of this Agreement are for convenience of reference only, and they shall not constitute a part of this Agreement for any other purpose or affect interpretation of the Agreement. Should any provision of this Agreement be found to be in conflict with any provision of the Purchase and Sale Agreement, the Project Approvals or the Subsequent Approvals, the provision of this Agreement shall prevail. -21- I 2853-0062\2315 l 75v22.doc 194 30. Joint Preparation. This Agreement shall be deemed to have been prepared jointly and equally by the Parties, and it shall not be construed against any Party on the ground that the Party prepared the Agreement or caused it to be prepared. 31. Governing Law and Venue. This Agreement is made, entered into, and executed in the County of Ventura, California, and the laws of the State of California shall govern its interpretation and enforcement. Any action, suit or proceeding related to, or arising from, this Agreement shall be filed in the appropriate court having jurisdiction in the County of Ventura. 32. Attorneys' Fees. In the event any action, suit or proceeding is brought for the enforcement or declaration of any right or obligation pursuant to, or as a result of any alleged breach of, this Agreement, the prevailing Party shall be entitled to its reasonable attorneys' fees and litigation expenses and costs, and any judgment, order or decree rendered in such action, suit or proceeding shall include an award thereof. 33. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which constitute one and the same instrument. 34. Authority to Execute. Developer warrants and represents that to its knowledge as of the Operative Date and with respect to each entity that is defined as Developer: (i) it is duly organized and existing; (ii) it is duly authorized to execute and deliver this Agreement; (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement; (iv) Developer's entering into and performance of its obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound; and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware that could prevent Developer from entering into or performing its obligations set forth in this Agreement. -22- 12853-0062\23 l 5175v22.doc 195 IN WITNESS WHEREOF, the Parties have executed this Development Agreement effective as of the Operative Date. The Daly a Califo a ly resident 1,hrie,W1t _J, v~,'j 1 'Pn!>idMt 12853-0062\23 15 175v22 .doc CITY OF MOORPARK S. Parvin , Mayor ATTEST : KyS~g~~ -23-196 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Ventura ) ) On __ Oe,to __ b_e,r_'J-_?_1,()_i,o __ before me, Ky Spangler, Notary Public (insert name and title of officer) personally appeared ViAC-e,,vif J . 7)<.f ~ 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/soo/~ executed the same in his/R<¥/~ authorized capacity(+0S), and that by his/R<¥/~ 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 PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature _115-+-----t--Sw--~-tv~- ········1 KY SPANGLER Notary Public • Ca liforni a z Ventura County i:c Commission W 2191472 - My Comm. Expires Apr 13, 2021 (Seal) 197 CITY OF MOORPARK 799 Moorpark Avenue, Moorpark Ca lifornia 9302 1 I Phone (805 ) 517 -6200 I Fax (805 ) 532 -2205 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. PUBLIC AGENCY FORM OF ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF VENTURA CITY OF MOORPARK ss. On this 23rd day of October in the year 2020, before me, Ky Spangler, City Clerk of the City of Moorpark, personally appeared Janice S. Parvin, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and who is personally known to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that she executed the same in her authorized capacity as the Mayor of the City of Moorpark, and that by her signature on the instrument, acknowledged to me that the City of Moorpark executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. . Witness my hand and Official Seal City Clerk J AN ICE S PARV IN Mayo r CHR LS ENEG REN Co un cilmember ROSEANN MI KOS , Ph .D. Coun cilrn ernb er DAVID POLLO CK Coun cilm e mber KEN SIMONS Council member 198 EXHIBIT "A-1" (PROPERTY CONVEYED BY CITY THROUGH DDA) LEGAL DESCRIPTION OF PROPERTY Parcels 2 and 3 of Parcel Map No. 2017-01 in the City of Moorpark, County of Ventura, State of California, as Document No. 20190708 -00076500 -0, comprising a combined total of 93,664 square feet (approximately 2.15 acres), as depicted on Exhibit A-2. A-1 - 1 12853-0062\23 l 5175v22.doc 199 • ... -.. .. • -~ ~ • .. 0 • .. ~ .. . ~ ~ • I • ~ i • )~ It u ,, . ,. A-1 -2 12853-0062 \23 I 5 175v22.do c 200 EXHIBIT "A-2" (SUBLICENSE AGREEMENT WITH PROPERTY LICENSED FROM VCTC) SUBLICENSE AGREEMENT This SUBLICENSE AGREEMENT ("Agreement") is made and entered into as of _ _______ , 20_, by and between the CITY OF MOORPARK, a municipal corporation ("SUBLICENSOR") and the DALY GROUP, INC., a corporation ("SUBLICENSEE") with the consent of the VENTURA COUNTY TRANSPORTATION COMMISSION, a public entity ("VCTC"); upon and in consideration of the agreements, covenants, terms, and conditions below: A. Sublicensor, as licensee, and VCTC, as licensor, have entered into a Ventura County Transportation Commission License Agreement dated __________ , 20_ which covers, among other things, the sublicensed property described herein (the "License Agreement"). Sublicensee has reviewed the License Agreement and is familiar with the terms hereof. B. Sublicensee is developing property adjacent to or near the sublicensed property described herein, and desires to supplement its development project with use of the sublicensed property. PART I -BASIC SUBLICENSE PROVISIONS 1. Description of Sublicense Property: A portion of the VCTC railroad right of way near Mile Post ___ located in Moorpark, CA as shown on Exhibit "A" attached. 2. Approximate Area: 18,743 ± square feet 3. Use of Sublicense Property: Fencing, parking stalls, landscaping and other hardscape improvements as shown on Exhibit "B" attached. No other use is authorized by this Agreement. 4. Commencement Date: Effective as of the date of this Agreement. 5. Term: Five Years provided that in any event, this Sublicense shall expire upon the expiration or earlier termination of the License Agreement. 6. Sublicense Fees: A. Base Sublicense Fee: $1, payable January 1 of each calendar year. 7. Insurance Requirements: Insurance requirements are detailed in Section 16, Insurance. A-2 - l l 2853-0062\2315175v22.doc 201 8. Sublicensor's Address: City of Moorpark 799 Moorpark Ave. Moorpark, CA 93021 Attn: Troy Brown, City Manager 9. Sublicensee's Address: The Daly Group, Inc. 31255 Cedar Valley Dr., Ste. 323 Westlake Village, California 91362 Attn: Vince Daly 10. Facility: The uses identified in Section 2 and no others. The foregoing Basic Sublicense Provisions and the General Sublicense Provisions set forth in attached Part II are incorporated into and made part of this Agreement. PART II -GENERAL SUBLICENSE PROVISIONS 1. Sublicense/Term. 1.1 Grant of License. SUBLICENSOR hereby grants to SUBLICENSEE a non-exclusive license to use the real property described on the attached Exhibit "A" and incorporated herein by reference, and described in Item 1 of the Basic License Provisions (the "Sublicensed Property"), for the limited purpose of construction, installation, operation, alteration, maintenance, reconstruction and/or removal of the Facility described in Item 9 of the Basic License Provisions, and any usual, necessary and related appurtenances thereto, for the purposes described in Item 2 of the Basic License Provisions, together with rights for access and entry through existing driveways or any replacement driveways authorized or installed by VCTC onto the Sublicensed Property as necessary or convenient for the use of the Facility. In connection with this Agreement, SUBLICENSEE, its officers, directors, employees, agents, customers, visitors, invitees, licensees, and contractors (collectively, "SUBLICENSEE Parties"), subject to the provisions hereof, may have reasonable rights of entry and access onto the Sublicensed Property, with the time and manner of such entry and access to be subject to VCTC's prior written approval. The land subject to the License Agreement, any adjoining real property (or any interest therein) of VCTC and personal property of VCTC located thereon shall hereinafter collectively be referred to as "VCTC Property." 1.2 Term of Agreement. The term of this Agreement ("Term") shall commence on the "Commencement Date" specified in Item 3 of the Basic License Provisions. This Agreement shall continue in full force and effect and will automatically renew annually after the initial term, unless as provided in Item 5 of the Basic Sublicense Provisions or otherwise terminated by the parties. A-2 - 2 l 2853-0062\2315175v22.doc 202 1.3 Public Use. In addition to any and all other termination rights of VCTC described herein, SUBLICENSEE hereby expressly recognizes and agrees that the "Sublicensed Property" is located on VCTC Property that may be developed for public projects and programs which may be implemented by VCTC or other public agencies, such as, but not limited to: rail and bus transitways, bikeways, walkways, beautification projects, roadways, parking facilities, and/or any other public or other governmental uses (collectively and individually "Public Use"); and that SUBLICENSEE's use of such Sublicensed Property under this Sublicense is a temporary, interim use as to which SUBLICENSEE has no right to nor expectation of use for any particular length of time and that the License (and therefore this Sublicense) may be terminated by VCTC at any time with one hundred eighty (180) days' written notice to SUBLICENSOR as set forth in the License Agreement. Accordingly, as a condition to entering into this License, SUBLICENSOR expressly acknowledges and agrees that: (a) VCTC may terminate this Sublicense as set forth above for any Public Use, to be determined in the sole and absolute discretion of VCTC's Executive Director, or designee; (b) SUBLICENSEE waives any objection to, opposition, or protest at any approval proceeding; nor file suit to prevent or delay any Public Use when planned or implemented on or adjacent to the Sublicensed Property; (c) If VCTC's Executive Director, or designee, at any time, or from time to time, determines in his or her sole and absolute discretion, that there is a need for the Sublicensed Property or any adjoining property for a Public Use and such Public Use requires relocation or removal of Sublicensee's Improvements ("Improvements"), SUBLICENSEE shall reconstruct, alter, modify, relocate or remove its Improvements, as directed by VCTC or any parties having operating rights over the Premises, at SUBLICENSEE's sole cost and expense, with said work being completed sixty (60) days prior to expiration of termination period provided in written notice from SUBLICENSOR or VCTC; and (d) SUBLICENSEE expressly assumes all risk of any future Public Use as determined by VCTC and in the event VCTC terminates this License and requires SUBLICENSEE to vacate the Sublicensed Property for any Public Use, SUBLICENSEE shall not, as a result of such termination and vacation of the Sublicensed Property, be entitled to receive any: (e) relocation assistance, moving expenses, goodwill or other payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. sections 4601 et seq. and/or the California Relocation Assistance Law, as amended, California Government Code sections 7260 et seq.; and (f) compensation under any eminent domain or inverse condemnation law. A-2 - 3 12853-0062\23 I 5175v22.doc 203 SUBLICENSEE shall not be entitled to any damages under California's Eminent Domain Law in the event of such termination. 1.4 Condition of Sublicensed Property. SUBLICENSEE acknowledges that it has inspected and accepts the Sublicensed Property in its present condition as suitable for the use for which this license is granted. Execution of this Agreement by SUBLICENSEE shall be conclusive to establish that the Sublicensed Property is in a condition which is satisfactory to SUBLICENSEE as of the Commencement Date. 2. Payments. 2.1 Sublicense Fee. As consideration for the rights given hereunder, SUBLICENSEE agrees to pay to SUBLICENSOR the Base Sublicense Fee specified in Item 6 of the Basic Sublicense Provisions,. The One-Time License Fee and the first month's or first year's, as the case may be, Base Sublicense Fee are due and payable upon execution of this Agreement. Thereafter, the Base Sublicense Fee, , shall be due and payable, without demand, on or before one year, as the case may be, after the Commencement Date and in each month or year, as the case may be thereafter. The Base Sublicense fee for any fractional period at the end of the Term shall be prorated on a daily basis and shall be reimbursed to SUBLICENSEE. If the Agreement is terminated, and the SUBLICENSEE is not in breach of the Agreement at such time, the Base Sublicense fee for any fractional period shall be prorated on a daily basis and shall be reimbursed to SUBLICENSEE. 2.2 Late Charge. SUBLICENSEE acknowledges that late payment by SUBLICENSEE of any payment owed under this Agreement will cause SUBLICENSOR to incur costs not contemplated by this Agreement. Therefore, if any payment due from SUBLICENSEE is not received by SUBLICENSOR within five (5) days of the date when due, SUBLICENSEE shall pay to SUBLICENSOR an additional sum of ten percent (10%) of the overdue payment as a late charge, up to a maximum amount of $500 for each late payment. The parties agree that this late charge represents a fair and reasonable estimate of the administrative costs that SUBLICENSOR will incur by reason of a late payment by SUBLICENSEE. Acceptance of any late payment charge shall not constitute a waiver of SUBLICENSEE's default with respect to the overdue payment, and shall not prevent SUBLICENSOR from exercising any of the other rights and remedies available to SUBLICENSOR under this Agreement, at law or in equity, including, but not limited to, the interest charge imposed pursuant to Section 24.5. 3. Taxes. SUBLICENSEE shall be liable for and agrees to pay promptly and prior to delinquency, any tax or assessment, including but not limited to any possessory interest tax, levied by any governmental authority: (a) against the Facility and its operations, the Sublicensed Property and/or any personal property, fixtures or equipment of SUBLICENSEE used in connection therewith, or (b) as a result of the SUBLICENSEE Parties' use of the Sublicensed Property, or the Facility. 4. Construction. All work performed or caused to be performed by SUBLICENSEE on the Sublicensed Property ("Work") shall be performed (i) in A-2-4 l2853-0062\23 l 5175v22.doc 204 accordance with and any and all applicable laws, rules and regulations (including the VCTC's rules and regulations), and (ii) in a manner which meets or exceeds the then applicable standards of the industry for such work, and (iii) is satisfactory to VCTC. Prior to commencement of any construction, maintenance, reconstruction, installation, restoration, alteration, repair, replacement or removal (other than normal maintenance) (hereinafter, "Work") on the Sublicensed Property, SUBLICENSEE shall submit work plans to VCTC for review and approval. Any such Work must be carried out pursuant to work plans approved in writing by VCTC. In addition, SUBLICENSEE shall provide VCTC and all holders of underground utility facilities located within the Sublicensed Property with at least 10 calendar days' written notice prior to commencement of any Work on the Sublicensed Property or the Facility, except in cases of emergency, in which event SUBLICENSEE shall notify VCTC's representative personally or by phone prior to commencing any Work. Unless otherwise requested by VCTC, upon completion of any Work, SUBLICENSEE shall restore the VCTC Property to its condition immediately preceding the commencement of such Work. 5. Contractors -Approval and Insurance. Any contractors of SUBLICENSEE performing Work on the Facility or the Sublicensed Property shall first be approved in writing by VCTC. With respect to such Work, SUBLICENSEE shall, at its sole cost and expense, obtain and maintain in full force and effect, throughout the term of such Work, insurance, as required by VCTC, in the amounts and coverages specified on, and issued by insurance companies as described Section 16 below, and which names SUBLICENSOR as additional insured. Additionally, SUBLICENSEE shall cause any and all of its contractors and subcontractors which may (a) be involved with such Work, or (b) may, for any reason, need to enter onto the Sublicensed Property, to obtain and maintain in full force and effect during the Term of this Agreement, or throughout the term of such Work (as applicable), insurance, as required by VCTC, in the amounts and coverages specified on, and issued by insurance companies as described in Section 16 below. VCTC reserves the right, throughout the Term of this Agreement, to review and change the amount and type of insurance coverage it requir~s in connection with this Agreement for the Work to be performed on the Sublicensed Property; provided VCTC provides to SUBLICENSEE prior written notice of such change. 6. Reimbursement. SUBLICENSEE agrees to reimburse VCTC and SUBLICENSOR for all reasonable costs and expenses incurred by them in connection with Work on, or maintenance of, the Sublicensed Property or the Facility, including, but not limited to, costs incurred in furnishing any materials or performing any labor, reviewing SUBLICENSEE's Work plans and/or inspecting any Work, installing or removing protection beneath or along VCTC's tracks, furnishing of watchmen, flagmen and inspectors as VCTC deems necessary and such other items or acts as VCTC in its sole discretion deems necessary to monitor or aid in compliance with this Agreement. 7. Liens. SUBLICENSEE will fully and promptly pay for all materials joined or affixed to Facility or the Sublicensed Property, and fully and promptly pay all persons who perform labor upon said Facility or the Sublicensed Property. SUBLICENSEE shall not suffer or permit to be filed or enforced against the Sublicensed Property or the Facility, or any part thereof, any mechanics', materialmen's, contractors', or A-2 - 5 12853-0062\2315 l 75v22.doc 205 subcontractors' liens or stop notices arising from, or any claim for damage growing out of, any testing, investigation, maintenance or Work, or out of any other claim or demand of any kind. SUBLICENSEE shall pay or cause to be paid all such liens, claims or demands, including sums due with respect to stop notices, together with attorney's fees incurred by VCTC with respect thereto, within ten (10) business days after notice thereof and shall indemnify, hold harmless and defend VCTC and SUBLICENSOR from all obligations and claims made for the above described work, including attorney's fees. SUBLICENSEE shall furnish evidence of payment upon request of VCTC or SUBLICENSOR. SUBLICENSEE may contest any lien, claim or demand by furnishing a statutory lien bond or equivalent with respect to stop notices to VCTC in compliance with applicable California law. If SUBLICENSEE does not discharge any mechanic's liens or stop notice for works performed for SUBLICENSEE, VCTC shall have the right to discharge same (including by paying the claimant), and SUBLICENSEE shall reimburse the cost of such discharge within ten (10) business days after billing. VCTC and SUBLICENSOR reserves the right at any time to post and maintain on the Sublicensed Property such notices as may be necessary to protect against liability for all such liens and claims. The provisions of this Section shall survive the termination of this Agreement. 8. Maintenance and Repair. SUBLICENSEE, at SUBLICENSEE's sole expense, shall maintain the Sublicensed Property and the Facility in a condition satisfactory to VCTC and in accordance with Exhibit "C" during the Term of this Agreement and shall be responsible for all clean up and maintenance of the Sublicensed Property and License Property resulting from its use thereof under this Sublicense. SUBLICENSEE shall be responsible for any citations issued by any agency having jurisdiction as a result of SUBLICENSEE's failure to comply with local codes. If any portion of the VCTC Property, including improvements or fixtures, suffers damage by reason of the access to or use thereof by SUBLICENSEE, SUBLICENSEE's Parties, including but not limited to damage arising from any test or investigations conducted upon the Sublicensed Property, SUBLICENSEE shall, at its own cost and expense, immediately repair all such damage and restore the Sublicensed Property to as good a condition as before such cause of damage occurred. Repair of damage shall include, without limitation, regrading and resurfacing of any holes, ditches, indentations, mounds or other inclines created by an excavation by SUBLICENSEE or SUBLICENSEE Parties. 9. Landscaping/Protective Fencing. If required by VCTC, SUBLICENSEE, at its sole cost and expense, shall install barrier fencing and or landscaping to shield the railroad track area from public access and/or the Facility. VCTC shall have the right to review and approve fencing and/or landscaping plans prior to installation. All fencing and/or landscaping work shall be done in accordance with the provisions of Sections 4 and 5 above and will be subject to the maintenance and repair provisions of Section 8 above. 10. Use. The Sublicensed Property and the Facility shall be used only for the purposes specified in Item 3 of the Basic Sublicense Provisions above and for such lawful purposes as may be directly incidental thereto. No change shall be made by A-2 - 6 12853-0062\23 I 5175v22.doc 206 SUBLICENSEE in the use of the Sublicensed Property or the Facility without VCTC's prior written approval. 11. Abandonment. Should SUBLICENSEE at any time abandon the use of the Facility or the Sublicensed Property, or any part thereof, or fail at any time for a continuous period of ninety (90) days to use the same for the purposes contemplated herein, then this Agreement shall terminate to the extent of the portion so abandoned or discontinued, and in addition to any other rights or remedies, VCTC shall immediately be entitled to exclusive possession and ownership of the portion so abandoned or discontinued, without the encumbrance of this Agreement. VCTC, at its option, may remove any improvements remaining on the abandoned property, at SUBLICENSEE's expense. 12. Breach. Should SUBLICENSEE breach, or fail to keep, observe or perform any agreement, covenant, term or condition on its part herein contained, then, in addition to any other available rights and remedies, SUBLICENSOR, at its option may: (a) perform any necessary or appropriate corrective work at SUBLICENSEE's expense, which SUBLICENSEE agrees to pay to SUBLICENSOR upon demand, or (b) with or without written notice or demand, immediately terminate this Agreement and at any time thereafter, recover possession of the Sublicensed Property or any part thereof, and expel and remove therefrom SUBLICENSEE, or any other person occupying the Sublicensed Property, by any lawful means, and again repossess and enjoy the Sublicensed Property and the Facility, without prejudice to any of the rights and remedies that SUBLICENSOR may have under this Agreement, at law or in equity by reason of SUBLICENSEE's default or of such termination. 13. Surrender. Upon termination of this Agreement, unless otherwise requested in writing by VCTC to leave all, or any portion of, the Facility in place prior to the date of termination, SUBLICENSEE, at its own cost and expense, shall immediately remove the Facility and restore the Sublicensed Property as nearly as possible to the same state and condition as existed prior to the construction, reconstruction or installation of said Facility. Should SUBLICENSEE fail to comply with the requirements of the preceding sentence, VCTC may at its option (a) perform the same at SUBLICENSEE's expense, which costs SUBLICENSEE agrees to pay to VCTC on demand, or (b) assume title and ownership of said Facility. No termination hereof shall release SUBLICENSEE from any liability or obligation hereunder, whether of indemnity or otherwise, resulting from any acts, omissions or events happening prior to the date the Facility is removed and the Sublicensed Property is restored. 14. Indemnification. SUBLICENSEE, on behalf of itself and its successors and assigns, agrees to indemnify, defend (by counsel satisfactory to SUBLICENSOR and VCTC), and hold harmless SUBLICENSOR, VCTC, and their subsidiaries and their respective, members, directors, partners, officers, commissioners, employees, agents, successors and assigns (individually and collectively, "lndemnitees"), to the maximum A-2 - 7 l2853-0062\23 l 5 l 75v22.doc 207 extent allowed by law, from and against all loss, liability, claims, demands, suits, liens, claims of lien, damages (including consequential damages), costs and expenses (including, without limitation, any fines, penalties, judgments, litigation expenses, and experts' and attorneys' fees), that are incurred by or asserted against lndemnitees arising out of or connected in any manner with (i) the acts or omissions to act of the SUBLICENSEE, or its officers, directors, affiliates, SUBLICENSEE Parties or anyone directly or indirectly employed by or for whose acts SUBLICENSEE is liable (collectively, "Personnel") or invitees of SUBLICENSEE in connection with the Sublicensed Property or arising from the presence upon or performance of activities by SUBLICENSEE or its Personnel with respect to the Sublicensed Property, (ii) bodily injury to or death of any person (including employees of lndemnitees) or damage to or loss of use of property resulting from such acts or omissions of SUBLICENSEE or its Personnel, or (iii) nonperformance or breach by SUBLICENSEE or its Personnel of any term or condition of this Agreement, in each case whether occurring during the Term of this Agreement or thereafter. The foregoing indemnity shall be effective regardless of any negligence (whether active, passive, derivative, joint, concurring or comparative) on the part of lndemnitees, unless caused solely by the negligence or willful misconduct of lndemnitees; shall survive termination of this Agreement; and is in addition to any other rights or remedies which lndemnitees may have under the law or under this Agreement. Upon request of VCTC, SUBLICENSEE shall provide insurance coverage for possible claims or losses covered by the indemnification and defense provisions of this Agreement. Claims against the lndemnitees by SUBLICENSEE or its Personnel shall not limit the SUBLICENSEE's indemnification obligations hereunder in any way, whether or not such claims against lndemnitees may result in any limitation on the amount or type of damages, compensation, or benefits payable by or for SUBLICENSEE or its Personnel under workers' compensation acts, disability benefit acts, or other employee benefit acts or insurance. 15. Assumption of Risk and Waiver. To the maximum extent allowed by law, SUBLICENSEE assumes any and all risk of loss, damage, or injury of any kind to any person or property, including, without limitation, the Facility, the Sublicensed Property and any other property of, or under the control or custody of, SUBLICENSOR, or any SUBLICENSEE, which is on or near the Sublicensed Property. SUBLICENSEE's assumption of risk shall include, without limitation, loss or damage caused by defects in any structure or improvement, accident, fire or other casualty, or electrical discharge, noise, or vibration resulting from VCTC's transit operations. The term "VCTC" as used in this section shall include: (a) any transit or rail-related company validly operating upon or over VCTC's tracks or other property, and (b) any other persons or companies employed, retained or engaged by VCTC. SUBLICENSEE, on behalf of itself and its SUBLICENSEE or its Personnel, as a material part of the consideration for this Agreement, hereby waives all claims and demands against SUBLICENSOR and VCTC for any such loss, damage or injury of SUBLICENSEE and its Personnel. In that connection, SUBLICENSEE waives the benefit of California Civil Code Section 1542, which provides as follows: A-2 - 8 12853-0062\23 l 5175v22.doc 208 A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. SUBLICENSEE accepts the risk that the facts or the law may later turn out to be different than SUBLICENSEE understands them to be at this time and acknowledges that this assumption of risk and waiver will not be affected by such different state of facts or law. The provisions of this Section shall survive the termination of this Agreement. 16. Insurance. A. SUBLICENSEE, at its sole cost and expense, shall procure and maintain in full force and effect insurance coverage or evidence of self-insurance as required by VCTC against claims for injuries to persons or damages to property which may arise from, or in connection with, the use of Sublicensed Property hereunder by the SUBLICENSEE, or SUBLICENSEE Parties, agents, representatives, employees, or subcontractors during the entire term of this Agreement. SUBLICENSEE shall provide, at minimum, the following coverage: 1. Commercial General Liability [CGL], to include Products/Completed Operations, Independent Contractors', Contractual Liability, and Personal Injury Liability with a minimum of $2,000,000.00 of coverage per occurrence and $4,000,000 of coverage in the aggregate for bodily injury, personal injury, and property damage, with: 1. Removal of the CGL exclusion for pollution liability, or 2. A Pollution Liability policy with minimum limits of $1,000,000.00; and 3. Automobile Liability Insurance with combined single limits of a minimum of $1,000.000.00 per accident for bodily injury and property damage; and 4. Workers' Compensation with limits as required by the State of California; with a waiver of subrogation rights; and 5. Employer's Liability with limits of a minimum of $1,000,000.00 per accident for bodily injury or disease. B. VCTC, and SUBLICENSOR, and their officers, directors, employees and agents must be designated as additional insured on the SUBLICENSEE's Comprehensive General and Automobile Liability Insurance policies. SUBLICENSEE shall furnish VCTC and SUBLICENSOR with insurance endorsements and certificates, evidencing the existence, amounts and coverages of the insurance required to be maintained hereunder. A-2 - 9 12853-0062\23 I 5175v22.doc 209 C. The coverage shall be primary and any insurance or self-insurance maintained by VCTC and SUBLICENSOR shall be excess of the SUBLICENSEE's insurance and shall not contribute to it. D. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled or reduced in coverage or in limits, except only after thirty (30) days prior written notice has been given to VCTC and SUBLICENSOR. In the event SUBLICENSOR or VCTC learns that SUBLICENSEE's insurance coverage is terminated and SUBLICENSEE fails to provide adequate assurances that continuous coverage is being provided, VCTC and/or SUBLICENSOR, at its sole discretion, may obtain such coverage at SUBLICENSEE's expense. E. VCTC retains the right to increase the amounts of coverage required by this Agreement as it determines are reasonably necessary to protect itself against potential liability caused by entering into this Agreement. VCTC shall give SUBLICENSEE 60 days' notice of the need for it to increase its coverage. By the end of the 60 days, SUBLICENSEE shall provide proof of such coverage in the manner set forth in this section. 17. VCTC'S Right of Access. SUBLICENSEE will permit VCTC and SUBLICENSOR and their agents, at all reasonable times and at any time in case of emergency, in such manner as to cause as little disturbance to SUBLICENSEE as reasonably practicable (a) to enter into and upon the Sublicensed Property to inspect them, to protect their interest therein, or to post notices of non responsibility, (b) to take all necessary materials and equipment onto the Sublicensed Property, and perform necessary work thereon, and (c) to perform environmental testing, monitoring, sampling, digging, drilling and analysis for Hazardous Materials on, under or about the Sublicensed Property. VCTC may at any time place on or about the Sublicensed Property (including the Improvements) any ordinary "for sale" and "for lease" signs. SUBLICENSEE shall also permit VCTC and its agents, upon request, to enter the Sublicensed Property or any part thereof, at reasonable times during normal business hours, to show the Sublicensed Property to prospective tenants, purchasers or mortgagees. 18. Assignment and Sublicensing. SUBLICENSEE shall not assign all or any portion of its interest in this Sublicense, whether voluntarily, by operation of law or otherwise, and shall not sublicense all or any portion of the Sublicensed Property, including, but not limited to, sharing them, permitting another party to occupy them or granting concessions or licenses to another party. 19. Tests and Inspection. VCTC and SUBLICENSOR shall have the right at any time to inspect the Sublicensed Property and the Facility so as to monitor compliance with the terms of this Agreement. VCTC and SUBLICENSOR shall be permitted to conduct any tests or assessments, including but not limited to environmental assessments, of, on or about the Sublicensed Property, as it determines to be necessary in its sole judgment or useful to evaluate the condition of the Sublicensed Property, or if VCTC or SUBLICENSOR determines that any installation on, or use or A-2 -10 l2853-0062\2315 l 75v22.doc 210 condition of the Sublicensed Property may have an adverse effect on adjacent property (whether or not owned by VCTC) or operations thereon. SUBLICENSEE shall cooperate with SUBLICENSOR, VCTC and their agents in any tests or inspections deemed necessary by VCTC. SUBLICENSEE shall pay or reimburse VCTC and appropriate regulatory agencies, as appropriate, for all reasonable costs and expenses incurred due to the tests, inspections or any necessary corrective work and inspections thereafter. 20. Hazardous/Toxic Materials Use and Indemnity. SUBLICENSEE shall operate and maintain the Sublicensed Property in compliance with all applicable federal, state and local environmental, health and/or safety-related laws, regulations, standards, decisions of the courts, permits or permit conditions, currently existing or as amended or adopted in the future which are or become applicable to SUBLICENSEE, or the Sublicensed Property ("Environmental Laws"). SUBLICENSEE shall not cause or permit, or allow any of SUBLICENSEE Parties to cause or permit, any Hazardous Materials to be brought upon, stored, used, generated, treated or disposed of on or about the brought upon, stored, used, generated, treated or disposed of on the Sublicensed Property or the adjacent property. As used herein, "Hazardous Materials" means any chemical, substance or material which is now or becomes in the future listed, defined or regulated in any manner by any Environmental Law based upon, directly or indirectly, its properties or effects. SUBLICENSEE shall indemnify, defend (by counsel acceptable to VCTC and SUBLICENSOR) and hold harmless the lndemnitees (as defined in Section 14) from and against all loss, liability, claim, damage, cost or expense (including without limitation, any fines, penalties, judgments, litigation expenses, attorneys' fees, and consulting, engineering, and construction fees and expenses) incurred by lndemnitees as a result of (a) SUBLICENSEE's breach of any prohibition or provision of this Section or (b) any release of Hazardous Materials upon or from the Facility or the Sublicensed Property or adjacent property (i) which occurs due to the use and occupancy of the Facility or the Sublicensed Property by SUBLICENSEE or SUBLICENSEE Parties, or (ii) which is made worse due to the act or failure to act of SUBLICENSEE or SUBLICENSEE Parties. The foregoing indemnity shall be effective regardless of any negligence (whether active, passive, derivative, joint, concurring, or comparative) on the part of lndemnitees, unless caused solely by the gross negligence or willful misconduct of lndemnitees; shall survive termination of this Agreement; and is in addition to any other rights or remedies which lndemnitees may have under the law or under this Agreement. In addition, in the event of any release on or contamination of the Sublicensed Property and/or any adjacent property, whether or not owned by VCTC, SUBLICENSEE, at its sole expense, shall promptly take all actions necessary to clean up all such affected property (including all affected adjacent property, whether or not owned by VCTC) and to return the affected property to the condition existing prior to such release or contamination, to the satisfaction of VCTC and any governmental authorities having jurisdiction thereover. A-2 -11 12853-0062\23 15 I 75v22.doc 211 Upon the termination of this Agreement at any time and for any reason, SUBLICENSEE shall, prior to the effective date of such termination, clean up and remove all Hazardous Materials in, on, under and/or about the Sublicensed Property and adjacent property which SUBLICENSEE, or SUBLICENSEE Parties caused or permitted to be brought upon such property, in accordance with the requirements of all Environmental Laws and to the satisfaction of VCTC and any governmental authorities having jurisdiction thereover. 21. Underground Storage Tanks. NEITHER SUBLICENSEE NOR SUBLICENSEE PARTIES, SHALL INSTALL OR USE ANY UNDERGROUND STORAGE TANKS ON THE SUBLICENSED PROPERTY. 22. Subordinate Rights. This Agreement is subject and subordinate to the prior and continuing right and/or obligation of VCTC, SCRRA, Amtrak, Union Pacific Railroad (UPRR) and their successors and assigns, to use the Sublicensed Property in the exercise of its powers and in the performance of its duties, or for any other purpose, including but not limited to those as a public transportation body. Accordingly, there is reserved and retained unto VCTC, its successors, assigns and permittees, the right to construct, reconstruct, maintain, and use existing and future rail tracks, facilities and appurtenances and existing and future transportation, communication, pipeline and other facilities and appurtenances in, upon, over, under, across and along the Sublicensed Property, and to otherwise use the Sublicensed Property, and in connection therewith the right of VCTC, its successors and assigns, to grant and convey to others, rights to and interests in the Sublicensed Property and in the vicinity of the Facility. This Agreement is subject to all licenses, leases, easements, restrictions, conditions, covenants, encumbrances, liens, claims and other matters of title ("Title Exceptions") which may affect the Sublicensed Property now or hereafter, and no provision of this Agreement shall be construed as a covenant or warranty against the existence of any such present or future Title Exceptions, whether or not arising out of the actions of VCTC or SUBLICENSOR, its successors or assigns. Neither SUBLICENSOR nor VCTC makes any representations or warranties of any kind with regard to title to the Sublicensed Property. 23. Compliance with Laws. SUBLICENSEE shall comply with all applicable federal, state and local laws, regulations, rules and orders in its work on, or maintenance, inspection, testing or use of, the Facility and the Sublicensed Property. SUBLICENSOR and VCTC may enter the Sublicensed Property to inspect the Facility at any time, upon provision of reasonable notice of inspection to SUBLICENSEE. SUBLICENSEE shall obtain all required permits or licenses required by any governmental authority for its use of the Sublicensed Property and the Facility, at its sole cost and expense. 24. Condemnation. In the event all or any portion of the Sublicensed Property shall be taken or condemned for public use (including conveyance by deed in lieu of or in settlement of condemnation proceedings), SUBLICENSEE shall receive compensation (if any) from the Condemner only for the taking and damage to the Facility. Any other compensation or damages arising out of such taking or condemnation awarded to A-2 -12 l 2853-0062\23 l 5175v22.doc 212 SUBLICENSEE are hereby assigned by SUBLICENSEE to VCTC. SUBLICENSEE shall have no rights under California law or federal law to the receipt of any damages arising out of any use or proposed use of the Sublicensed Property by VCTC or SCRRA, Amtrak, UPRR, or their respective agents, officers, contractors or employees and in entering into this Agreement expressly waives any such rights. 25. Markers. Project markers in form and size satisfactory to VCTC, identifying the Facility and its owners, will be installed and constantly maintained by and at the expense of SUBLICENSEE at such locations as VCTC shall designate. Such markers shall be relocated or removed upon request of VCTC without expense to VCTC. Absence of markers in or about the Sublicensed Property does not constitute a warranty by VCTC or SUBLICENSOR of the absence of subsurface installations. 26. General Provisions. 26.1 Notices. All notices and demands which either party is required to or desires to give to the other shall be made in writing by personal mail, by express courier service, or by certified mail, return receipt requested, postage prepaid, and addressed to such party at its address set forth in the Basic License Provisions. Either party may change its address for the receipt of notice by giving written notice thereof to the other party in the manner herein provided. Notices shall be effective only upon receipt by the party to whom notice or demand is given. 26.2 Non-Exclusive License. The license granted hereunder is not exclusive and VCTC has specifically reserved the right to grant other licenses within the Sublicensed Property. 26.3 Governing Law. This Agreement shall be governed by the laws of the State of California. 26.4 Severability. If any term, covenant, condition or provision of this Agreement, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions, or provisions of this Agreement, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 26.5 Interest on Past-Due Obligations. Except as expressly herein provided, any amount due to SUBLICENSOR which is not paid when due shall bear interest, from the date due, at the maximum rate then allowable by law. Such interest will be due to SUBLICENSOR as it accrues. Payment of such interest shall not excuse or cure any default by SUBLICENSEE under this Agreement. Interest shall not be payable on late charges incurred by SUBLICENSEE. 26.6 Survival of Obligations. All obligations of SUBLICENSEE hereunder not fully performed as of the expiration or earlier termination of the Term of this Agreement shall survive the expiration or earlier termination of this Agreement, including without A-2 -13 12853-0062\2315 I 75v22.doc 213 limitation, all payment obligations with respect to License Fees and all obligations concerning the condition of the Sublicensed Property and the Facility. 26.7 Waiver of Covenants or Conditions. The waiver by one party of the performance of any covenant or condition under this Agreement shall not invalidate this Agreement nor shall it be considered a waiver by it of any other covenant or condition under this Agreement. 26.8 Effective Date/Nonbinding Offer. Submission of this Sublicense for examination or signature by SUBLICENSEE does not constitute an offer or option for license, and it is not effective as a license or otherwise until executed and delivered by both SUBLICENSOR and SUBLICENSEE. Each individual executing this Sublicense on behalf of SUBLICENSOR or SUBLICENSEE represents and warrants to the other party that he or she is authorized to do so. 26.9 Assignment. This Agreement and the license granted hereunder are personal to the SUBLICENSEE. SUBLICENSEE shall not assign or transfer (whether voluntarily or involuntarily) this Agreement in whole or in part, or permit any other person or entity to use the rights or privileges granted hereunder, without the prior written consent of VCTC and SUBLICENSOR, which may be withheld in SUBLICENSOR's and VCTC's sole and absolute discretion, and any attempted act in violation of the foregoing shall be void and without effect and grant SUBLICENSOR the right to immediately terminate this Agreement. 26.10 Attorneys' Fees. In any judicial or arbitration proceeding involving performance under this Agreement, or default or breach thereof, the prevailing party shall be entitled to its reasonable attorneys' fees and costs. 26.11 Nondiscrimination. SUBLICENSEE certifies and agrees that all persons employed and any contractors retained, by either SUBLICENSEE or SUBLICENSEE's affiliates, subsidiaries, or holding companies, with respect to the Sublicensed Property, are and shall be treated equally without regard to or because of race, religion, ancestry, national origin, disability or sex, and in compliance with all federal and state laws prohibiting discrimination in employment, including but not limited to the Civil Rights Act of 1964; the Unruh Civil Rights Act; the Cartwright Act; and the California Fair Employment Practices Act. 26.12 Further Acts. At SUBLICENSOR 's sole discretion, but at the sole expense of SUBLICENSEE, and without a SUBLICENSEE claim for reimbursement, SUBLICENSEE agrees to perform any further acts and to execute and deliver in recordable form any documents which may be reasonably necessary to carry out the provisions of this Agreement, including the relocation of the Facility and the license granted hereunder. 26.13 Termination for Public Project. SUBLICENSEE hereby expressly recognizes and agrees that the Sublicensed Property is located on VCTC property that may be developed for public projects and programs which may be implemented by A-2 -14 12853-0062123 l 5175v22.doc 214 VCTC or other public agencies, such as, but not limited to: rail and bus transitways, bikeways, walkways, beautification projects and other public uses (collectively "Project"), and that SUBLICENSEE's use of the Sublicensed Property under this License is an interim use. SUBLICENSEE expressly acknowledges and agrees that: (1) VCTC may terminate the License for any public project; (2) SUBLICENSEE will NOT oppose any public Project when planned or implemented on or adjacent to the Sublicensed Property, and (3) in the event VCTC terminates this License and requires SUBLICENSEE and/or any SUBLICENSEE to vacate the Sublicensed Property for any public Project, SUBLICENSEE (a) shall not be entitled to receive any relocation assistance, moving expenses, goodwill or other payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. sections 4601 et seq. and/or the California Relocation Assistance Law, as amended, California Government Code sections 7260 et seq.; and (b) shall not be entitled to any compensation under the eminent domain law, as a result of such termination and vacation. 26.14 Acknowledgement of No Right to Claim Relocation Benefits Against VCTC. SUBLICENSEE hereby acknowledges that if VCTC asks SUBLICENSEE to vacate the property, then SUBLICENSEE is not entitled to any relocation benefits under this agreement or by virtue of state or federal law. Further, SUBLICENSEE agrees it is not entitled to loss of good will or moving expenses from VCTC, SCRRA, Amtrak or BNSF. 26.15 Time of Essence. Time is of the essence in the performance of this Agreement. 26.16 No Recording. SUBLICENSEE shall not record or permit to be recorded in the official records of the county where the Sublicensed Property is located this Agreement, any memorandum of this Agreement or any other document giving notice of the existence of this Agreement or the license granted hereunder. 26.17 Entire Agreement. This Agreement and the Exhibits hereto constitute the entire agreement between the Parties with respect to the subject matter hereof and supersede all prior verbal or written agreements and understandings between the Parties with respect to the items set forth herein. All amendments, changes, revisions, and discharges of this Agreement in whole or in part, and from time to time, shall be binding upon the parties despite any lack of legal consideration, so long as the same shall be in writing and executed by the parties hereto. 26.18 Captions. The Captions included in this Agreement are for convenience only and in no way define, limit, or otherwise describe the scope or intent of this Agreement or any provisions hereof, or in any way affect the interpretation of this Agreement. 26.19 Additional Provisions. Those additional provisions set forth in Exhibit "B", if any, are hereby incorporated by this reference as if fully set forth herein. A-2 -15 l 2853-0062\2315175v22.doc 215 IN WITNESS WH E REOF , the parties have caused this Agreement to be executed by their duly authori zed representatives as of the dat 1rst written above. SUBLICENSOR: CITY OF MOORPARK Attest: KySp~:%~ Approved as to Form : ~-,$~ Kevin G . Ennis City Attorney, City of Moorpark CONSENTED TO BY: VENTURA COUNTY TRANSPORTATION COMMISSION ~-~ By : Darren Kettle Executive Director, VCTC Approved As To Form : ~~ By : Steve Mattas General Couns e l, V CTC A-2 -16 l 2853 -0062 \23 15 175v22 .doc 216 EXHI BIT "A" TO SUBLICE NSE AGREEMENT Description of Sublicensed Property EXI-II BIT~N Ll::(!iA L DESC RIPTION BeinQ a st rip of l,m c, 20 .DD feet wide, i r th e oty of Mcorpark , C.Ou nty of Ventu ra, State of Ctl lfornla, and being a ,p ottlon of the land , 40.00 11.;~L wid e:, de5c ribed in th e Gr,1 nt Pe ed rcrord ed ~-.eptembe r 27, 1931, as Instrume ntr~o. 91 -143 17 of Offir:ial Rl"m rds o" Vemu ra Cou nty, t he northe rl y lin e of sai d ~-.t ri J of !and describ ed as fr:> lows: Beg in nin g at a po int in th e no rt1 e ~• line of sa id Gran t Oee:1 1 said po int be;:irs ~o Jth W 30 '35" East 169.65 feet fro11 t he ln te--sect lon of sa id nt:.;Lh:?l ly line v,lt h tile e.asterly li ne of Moo rpa rk Av enue, 50 .00 foo t wi de, as shown o n t he ma p entitled "Map l\o. 1 :>f Tmc t O of ~borpark Subd ivision" an d reco rd ed in Book 8, Fage L3 of Ml smlla nl!O us ~e:o;ds (Maps) Ir, ttte office of the Cou nt y Recorde r of V-~nt ura Cou rty, Sll ld po im bei ng th e southwc~tcrty ccmer of Parce l ;i of Pro posed Parm l Map No. 2.017-□1 and t !B Tr ue Po int of Bc~i n ning or th &s descrl pt lon; thence cont i nt1ing a long t he 110,ti,erty li ne o" sai d G:-a nt Deed, soum ~9°~-0 '35" cast 937.1 6 feet Lu the! ::ouU·1easts:r l~• come r of Pa rce l 3 of ~-a id Ptop:>sed Parce l Ma p No. 2.0l7-D1. Conh!inlng 18,?43 s~uare fi,..et, mo r ~ or lex. r ¾h 7 bate A-2 -17 12853 -0062\23 15 I 75 v22.doc 217 Iv 00 V, w b 0 °' Iv iG w v, -_, v, < Iv Iv 0. 0 () ► I N 00 1 ii •·•n •u.ou11111;1 1111111!$ ,.,,_.du.il,o(d lilKiMI "5tlll,UIIII IW Ei A NJillli ... , +t' ..... ·----1r1r-.-- I ¥UT UU COUNTY TRHSP OA T!IION COM MISS ION ...... C m :I: "'O )>-:;:c (") C :::! cnO (") z l>Q "'O 'Tl m 'Tl -m s: z "'O (") :;:c -oz < G) m-s: "'O ml> z :;:c ~" cnz QG) Zen ~~ :I: )> mr en r C _CJ> a:J r r )> -z Ci C m en z (") CJ) )> m "'O c_ "'O z :;:c G) 0)> "'O z me :;:c 0 ~~ ~ :I: m :;:c ~ 0 en C [IJ r -m (") >< m :I: z_ CJ) [IJ m~ )> :: G) [IJ :;:c :: m m s: m z ~ 218 EXHIBIT "C" TO SUBLICENSE AGREEMENT This Sublicense is subject to the following additional terms and conditions: 1. The SUBLICENSEE agrees to execute and deliver to SCRRA (with a copy to Sublicensor), prior to commencing any work within the rail right-of-way, SCRRA Temporary Right-of-Entry agreement (Form No. 6), and deliver and secure approval of the insurance required by the two exhibits attached to SCRRA Form No.6. If the SUBLICENSEE retains a contractor to perform any of work within the rail right-of-way, then the SUBLICENSEE shall incorporate in its contract documents SCRRA Form No. 6 and Rules and Requirements for Construction on Railway Property (SCRRA Form No. 37). Mr. Christos Sourmelis with SCRRA's Right-of-Way Encroachments Office can be reached at (909) 394-3418. These forms can be accessed through SCRRA's website www.metrolinktrains.com, ("About Us," "Engineering and Construction," and "Manuals"). 2. SUBLICENSEE's contractor, at its sole cost and expense, shall obtain and maintain, in full force and effect, insurance as required by SCRRA during the entire construction period. The Contractor shall furnish copies of the insurance certificates to all affected operating railroads. 3. Third Party Safety training is required for all work near or within the railroad right- of-way. SUBLICENSEE's contractor shall contact SCRRA at 1-877-452-0205 to schedule safety training. The contractor will need a valid SCRRA project number, located in the upper right hand comer of the Right-of-Entry. No work may commence on the railroad right of way until this training has been completed. 4. The SUBLICENSEE agrees to comply and to ensure that its contractor complies with instructions of SCRRA's Employee-In-Charge (EiC) and representatives, in relation to the proper manner of protection of the tracks and the traffic moving thereon, pole lines, signals and other property of SCRRA or its member agency tenants or SUBLICENSEEs at or in the vicinity of the work, and shall perform the work at such times as not to endanger or interfere with safe and timely operation of SCRRA's track and other facilities. 5. SUBLICENSEE shall prepare and submit traffic control plan for SCRRA approval for projects that will affect vehicular traffic at an existing highway-rail grade crossing. 6. SUBLICENSEE shall install and maintain an SCRRA approved safety fence or wall at the limit of the licensed area to prevent any trespassing into the active rail corridor. 3050103.1 A-2 -19 l 2853-0062\23 l 5175v22.doc 219 •• I I I I •• s I I 2853 -0062123 15 I 75v22.doc EXHIBIT "B" (STREETSCAPE IMPROVEMENT S) B -1 -· .. -'. ' . 220 N 00 v, w b 0 °' N r:; w v, ___, v, < N N 6. 0 n n RflOCAl[D6.li!BO. RCIHINOR£.ll6lli. HEHORW. PlJJlUE &S~ICXPAV!NS HIGH st. STRffTSCI.PE •prolK1ixzstn;IPiWifUH.l • Widtn:i~tnlkanhUNWfll:; •iCCPSSto11rl»i'ldlf'felCli!IOKCUl CAOSSW.\l.KSIJHIGHSmn VENTURA CO UNTY TRANSPORTATION COMMISSION LAND SCAPE NOTES PLANT PAlffiE COHHUIUiYGll (f.li • SN:l'lfflll 9JSIIHSJ.SHtRH• PKOTH:TIIIPUC£----~ 6'·i·H.YiElOITJWmFEHCE 'MTH~lH!S Dil'llliUOOnkmnd;id l.ll\lllr.'-...S l~I J;■~IUtD~~~lt.l~W ~ ~,_,IC•II.C~lliHU LANDSCAPE A~CHI I EC T URE 1~~~•:.a ... ~mr.-:u.:~;:i.=i.'b..w. ~r.ll~i.:-.illQI 1[111119WK~«l1iUUl ~.il/lillJ'-l ~-G'K,1 l.:.r.llUI(;. Oil?SUlPAU!llS -----..--------,.------,--,-,---=----=--~D~a=lyGroup W r.fr:1:-:t"~ ~ High Street Depot • n o,., m ia t:d uac, do:v c l opmcnr in l'llloo r p•rk Cal ifo r n ;a 221 N 00 V, w b 0 °' N KJ w v , --.J V, < N N 0.. 0 c:-, 0 /tb SCHEDULE 6.9 i [:;:} -----t_------=-=~--J( 7-~·j 1 -··-··-··-----· I -~----- : B...1PdingA BuidingBI 8..al di•.gB2 ~ 8.Aldingf L------------------------------------------------------------------------------------------------------------------------- Rool Plan ---------------··-··7 i i i ------··-··-··-··-··j !~ :: i hJ "0 ~/~ 1 l ! ,/-x......--.._ -.1 [/\I [' / ~ ~ ! ! ! ... Ming A Buldlc,g 81 ' B,ldr~ 82 _..,'><..__,_ B,ldr,g F ! ! L--··-··-··-··-··-··-··-··-··-··-··-··-··-··-··-··-··-··-··-··-··-··----·-----------·--··-··-··-··-··-··-··-··-··-··-··-···1.._ .. _ .. _ .. _ .. _. ____ _j LeveJ3 PIOr: [~fy~,\--1.~ \\ f~ \\ ~ \ \ \ \ .. --i\\,\ \_. I ("//,1//1.lil.J i //;'/ /. \J/.I (///// L.j/l// // ..... ·. ' ! f-'----~------::.,T•~· -=""'=-r 'c -; = = = ,,. ................. . dai ~r.,::_·· _I _P_r,.o""p""'o;---;=s;--;=e;=;d __ A_ff_o_r_d_a_b_le--,------:-U--:--n-i_ts-:--------=--:-----------, .. -~A,~-~--.-_.,,-,,,-:---~=!:,_'e'~M~a=s~le~r=Si~le~P="la'-'--;4 ■· ,1s_«==ill!WJ!ill•..2LOJ<A ■ ~ H i g h S t r e e t D e p o t ., P · o nt,w m lUtC V~o ;.J1;1 ¥1;1lop1rt::1nl Ir MO:.>'pc1k Cul lo•11lu ► "r:l ~ 0 ?; ► 0::, r r-i, ~ r-i, 0 >< 0 ::r:: r-i, -~~ -l : r-i, 0 -: z (j 0 ~ r-i, c:'. 2 --l rJ) 222 EXHIBIT "E" (ADDRESSES OF PARTIES) To City: City of Moorpark 799 Moorpark A venue Moorpark, CA 93021 Attn: City Manager To Developer: The Daly Group, Inc. 31255 Cedar Valley Dr., Ste. 323 Westlake Village, California 91362 Attn: Vince Daly With copy (which shall not constitute notice) to: Jonathan Block, Esq. c/o The Daly Group 31255 Cedar Valley Dr., Ste. 323 Westlake Village, California 91362 With copy (which shall not constitute notice) to: Mullen & Henzell, L.L.P. 112 East Victoria Street Santa Barbara, California 93101 Attn: Graham M. Lyons, Esq. 12853-0062\2315 l 75v22.doc E - 1 223 EXHIBIT F PROJECT FEE S De ve lo pe r will be re quire d to pay a ll a ppli cabl e fees pe rt a inin g , but no t limite d to co nditi o n co mpli a nce, e nv ironme nta l MMRP co mpli an ce, pl an c he cks , in s pec ti o ns , publi c wo rk s pe rmits , a nd building pe rmits. C ommunity Development Department Fees/Depos it s (Resolution No. 2017-3608): C ondition Co mpli a nce d e pos it Deve lopm e nt Agreeme nt A nnua l Rev iew de po s it Zo nin g C learance fees A dv anc e Pl a nnin g fees C on struc tion and De molition Ma te ri a l Ma nage m e nt Pl a n fees (No te: A 15% a dmini strati ve fee is add e d to a n y w o rk th a t is co mpl e te d by co n s ulta nts to th e C it y.) Lo t Lin e A dj ustme nt/M e rge r, S ig n Pe rmit/Pro gram , Tempo rar y Banne rs , a nd Use Pe rmits fo r future co mme rc ia l te nants wo uld be und e r sep arate a ppli cati o n . Public Works Fees/Deposits (Resolution No. 2008-2670 ): E ncro a chme nt Pe rmit/In s pe ction fees Excavation Permit/In s pection fees T ran s portation Pe rmit fees Geology and Geote chnical Re port Rev iew d e pos it Pl an C he c k fees In sp ection fees Geo lo gy and So il En g ineerin g Rev iew fees (Note: A 3 0% a dmini st rati ve fee is adde d to a n y wo rk that is co mpl e ted by co n sulta nts to th e C it y .) Building and S afe ty Fees/D e po s its (Resolution No. 2010-297 1): Building pe rmit fees Pl an Rev iew fees E ne rgy Co nservati o n fees Ha ndi capp ed Access fees G ree n Building Mandato ry Meas ures fees G ree n Building T ier l and 2 fees S tro ng Mo t io n fees De mo lition Permit fees E lectri cal Pe rmit fees Mec ha ni cal Permit fees Plumbin g Pe rmit fees I 2853-0062123 15 175v22.doc F -I 224 RESOLUTION NO. PC-2022-681 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MOORPARK, CALIFORNIA, RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT NO. 2018-01 BETWEEN THE CITY OF MOORPARK AND DALY GROUP, INC. AND MAKING A DETERMINATION OF EXEMPTION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT IN CONNECTION THEREWITHIN WHEREAS, the City of Moorpark (the “City”) owns property located at 226 High Street in the City (the “Property”); and WHEREAS, it is contemplated that the Developer will build a mixed-use commercial and residential project including 79 residential dwelling units and 13,628 square feet of commercial floor area within four mixed-use buildings and three standalone commercial buildings on the Property (the “Project”); and WHEREAS, on September 10, 2020, the Planning Commission recommended approval of Resolution No. PC-2020-653, recommending the City Council determine the Project consistent with the General Plan per Government Code 65402; and WHEREAS, on October 7, 2020, the City Council adopted Resolution Nos. 2020-3949 and 2020-3950, approving a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program, conditionally approving Residential Planned Development Permit No. 2018-01 for the Project, and a Disposition and Development Agreement (DDA), for a mixed-use development consisting of 79 residential units, 13,628 square feet of commercial and associated land improvements located at 226 High Street in the Downtown Specific Plan on an application of Daly Group, Inc., and finding the Project consistent with the General Plan per Government Code 65402; and WHEREAS, on October 21, 2020, the City Council adopted Ordinance No. 484, approving Development Agreement (DA) No. 2018-01; and WHEREAS, on December 15, 2021, the City Council adopted Resolution No. 2021-4057 approving the First Amendment to the DDA; and WHEREAS, on September 21, 2022, the City Council adopted Resolution No. 2022-4132 approving the Second Amendment to DDA No. 2018-01; and WHEREAS the Developer has demonstrated diligent pursuit of the project including submittal of building plans, further design work, and continued engagement with City Staff; and PC ATTACHMENT 2 225 High Street Depot Resolution No. PC-2022-681 Page 2 WHEREAS, the Developer has agreed to the terms of the transaction as outlined in the First Amendment to DA; and WHEREAS, the City desires to proceed with the sale of the Property pursuant to the terms of the First Amendment to DA (as amended); and WHEREAS, the City finds that the sale of the Property is in furtherance of the creation of economic opportunity for the City; and NOW, THEREFORE, THE PLANNING COMMSSION OF THE CITY OF MOORPARK, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Planning Commission hereby specifically finds that all the facts set forth in the Recitals are true and correct. SECTION 2. ENVIRONMENTAL FINDINGS: The Planning Commission concurs with the Community Development Director that the First Amendment to the Development Agreement is consistent with the Mitigated Negative Declaration adopted for the Residential Planned Development Permit No. 2018-01. SECTION 3. DEVELOPMENT AGREEMENT FINDINGS: The Planning Commission finds and declares as follows: A. The provisions of the First Amendment to the Development Agreement are consistent with the General Plan and Downtown Specific Plan in that the Project is consistent with the Specific Plan – Downtown land use designation, helps achieve the goals of the Land Use Element and Housing Element, and is consistent with the goals and policies of all other elements. The disposition of the City-owned land to the Applicant for the purposes of developing a mixed-use project in accordance with the General Plan and Downtown Specific Plan furthers the City’s goals to revitalize the Downtown, achieve a well-balanced and diversified economy, and provide a variety of housing options. B. Pursuant to Government Code Section 52201(b), the Planning Commission finds that, pursuant to the terms of the First Amendment to the Development Agreement, the final purchase price received as consideration for the sale of the property to the developer is not affected by the amendment and it will continue to reflect fair market value at its highest and best use. SECTION 4. Based on the findings and conclusions set forth in the above sections, and based on all the other evidence in the record, the Planning Commission recommends that the City Council adopt an Ordinance approving the First Amendment to DA 2018-01. 226 High Street Depot Resolution No. PC-2022-681 Page 3 SECTION 5. FILING OF RESOLUTION: The Community Development Director shall cause a certified resolution to be filed in the book of original resolutions. The action of the foregoing direction was approved by the following vote: AYES: NOES: ABSENT: ABSTAIN: PASSED, AND ADOPTED this 27th day of September 2022. Kipp Landis Chair Carlene Saxton Community Development Director Exhibit A – First Amendment to Development Agreement 2018-01 227 High Street Depot Resolution No. PC-2022-681 Page 4 EXHIBIT A Recording Requested By And When Recorded Return to: CITY CLERK CITY OF MOORPARK 799 Moorpark Avenue Moorpark, California 93021 EXEMPT FROM RECORDER'S FEES Pursuant to Government Code § 6103 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF MOORPARK AND DALY GROUP, INC. 228 High Street Depot Resolution No. PC-2022-681 Page 5 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment”) is dated as of ___________, 2022, and is entered into by and between the CITY OF MOORPARK, a municipal corporation (“City”), and DALY GROUP, INC., a California corporation (“Developer”). RECITALS WHEREAS, the City and Developer entered into that certain Development Agreement dated October 23, 2020, which was recorded on November 2, 2020 as Document No. 20201102- 00183317-0 1/52 in the Official Records of Ventura County, California (“DA”); and WHEREAS, City and Developer desire to amend the DA to exclude the land described on Exhibit “A” attached hereto (the “Excluded Property”) from the DA (such that the term “Property” used in the DA shall not include such land). NOW, THEREFORE, the parties hereby agree as follows: 1. Amendment. The Excluded Portion is hereby excluded from the “Property” described in the DA (and the term “Property” as used in the DA shall no longer include the Excluded Property). 2. Counterparts. This Amendment may be executed and recorded in counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument. 229 High Street Depot Resolution No. PC-2022-681 Page 6 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed the day and year first above written. DEVELOPER: DALY GROUP, INC., a California corporation By: Vincent Daly, its President CITY: CITY OF MOORPARK, a municipal corporation By: Janice Parvin, Mayor ATTEST: Ky Spangler, City Clerk APPROVED AS TO FORM: By: Kevin G. Ennis, City Attorney 230 EXHIBIT “A” DESCRIPTION OF EXCLUDED PROPERTY 231 Resolution No. 2022-____ Page 8 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ) On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 232