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HomeMy WebLinkAboutAGENDA REPORT 2024 0501 CCSA REG ITEM 11ACITY OF MOORPARK, CALIFORNIA City Council Meeting of May 1, 2024 ACTION ADOPTED ORDINANCE NO. 522. (ROLL CALL VOTE: 4-0, COUNCILMEMBER MEANS ABSENT) BY A. Hurtado. A. Consider Ordinance No. 522 Approving the First Amendment to Development Agreement No. 2016-01 Between the City of Moorpark and M.P. Group LLC, Moorpark Homes LLC, and CLP Investment LLC, Allowing the Payment of an In- Lieu Fee for the Project’s Affordable Housing Obligation, Eliminating The On-Site Affordable Housing Obligation, and Making Other Adjustments to the Development Agreement, and Making A Determination Of Exemption Pursuant To The California Environmental Quality Act in Connection Therewith. Staff Recommendation: Waive full reading, declare Ordinance No. 522 read for the second time, and adopted as read. (ROLL CALL VOTE REQUIRED) Item: 11.A. ORDINANCE NO. 522 AN ORDINANCE OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO. 2016-01 BETWEEN THE CITY OF MOORPARK AND M.P. GROUP LLC, MOORPARK HOMES LLC, AND CLP INVESTMENT LLC, ALLOWING THE PAYMENT OF AN IN-LIEU FEE FOR THE PROJECT’S AFFORDABLE HOUSING OBLIGATION, ELIMINATING THE ON-SITE AFFORDABLE HOUSING OBLIGATION, AND MAKING OTHER ADJUSTMENTS TO THE DEVELOPMENT AGREEMENT, AND MAKING A DETERMINATION OF EXEMPTION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT IN CONNECTION THEREWITH WHEREAS, Section 65864, Article 2.5, Chapter 4, Division 1, Title 7 of the State Planning and Zoning Law provides that cities may enter into contractual obligations known as Development Agreements with persons having equitable interest in real property for development of that property; and WHEREAS, on April 15, 2016, M.P. Group LLC, Moorpark Homes, LLC and CLP Investment LLC, (“Owners”) known collectively as Pacific Communities (“Applicant”), applied to the City for entitlements to build a residential project including 284 residential dwelling units on the properties located on Los Angeles Avenue and Leta Yancy Road (APNs 506-0-030-180, 506-0-030-195, 506-0-050-525, 506-0-050-515, 506-0-030-205, 506-0-030-255, and 506-0-030-245) (“Project Site”) in the City of Moorpark (the “City”) (the “Project”); and WHEREAS, on August 22, 2017, the Planning Commission adopted Resolution No. PC-2017-620, recommending the City Council determine the Project consistent with the General Plan per Government Code 65402, adopt the Project Mitigated Negative Declaration (“MND”) and approve General Plan Amendment No. 2016-01, Zone Change No. 2016-01, Residential Planned Development (“RPD”) No. 2016-01, Vesting Tentative Tract Map (“VTTM”) No. 5882, and Development Agreement No. 2016-01 (“DA”); and WHEREAS, on September 20, 2017, the City Council adopted Resolution Nos. 2017-3626 and 2017-3627, adopting a MND and Mitigation Monitoring and Reporting Program (MMRP) for the Project, approving General Plan Amendment No. 2016-01, Zone Change No. 2016-01, RPD No. 2016-01, and Vesting Tentative Tract Map No. 5882, for a residential development consisting of 284 residential units and associated land improvements located on 38.73 acres of land located on the south side of Los Angeles Avenue and the west side of Leta Yancy Road on an application of the Applicant, and finding the Project consistent with the General Plan per Government Code 65402; and Item: 11.A. 216 Ordinance No. 522 Page 2 WHEREAS, on October 4, 2017, the City Council adopted Ordinance No. 453 approving Zone Change No. 2016-01 to change the zoning on the Project Site from Commercial Planned Development, RPD-7U, and RPD-7.5U to RPD-9U, RPD-20U, and Open Space, and adopted Ordinance No. 454, approving DA No. 2016-01; and WHEREAS, on September 20, 2017, the City Council adopted Resolution No. 2017-3627 approving Residential Planned Development Permit No. 2016-01 and associated Conditions of Approval; and WHEREAS, on October 4, 2017, the DA was executed by the City of Moorpark and the Owners, and the DA was recorded on October 10, 2017, by Instrument No. 20171011-00132051-0; and WHEREAS, on April 13, 2023, the Applicant applied for the First Amendment to the DA (“Exhibit A”) and Amendments to the Conditions of Approval for Residential Planned Development Permit No. 2016-01 and has agreed to the terms as outlined in the First Amendment to the DA and amendments to the Conditions of Approval for Residential Planned Development Permit No. 2016-01 to address phasing of the final map and changes to the affordable housing requirement for the Project; and WHEREAS, on March 19, 2024, the Planning Commission adopted Resolution No. PC-2024-705 recommending that the City Council approve the First Amendment to DA No. 2016-01; and WHEREAS, at a duly noticed public hearing on April 17, 2024, the City Council considered the First Amendment to the DA, and public testimony related thereto; and WHEREAS, the City Council has considered all points of public testimony relevant to the First Amendment to the DA and has given careful consideration to the content of the First Amendment to the DA, and has reached a decision on the matter; and WHEREAS, the Community Development Director has determined that this project, as amended, is consistent with the environmental determination that was previously-approved for Residential Planned Development Permit No. 2016-01. Therefore, no further environmental documentation is required. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK, DOES ORDAIN AS FOLLOWS: SECTION 1. ENVIRONMENTAL DOCUMENTATION: The City Council concurs with the Community Development Director that the First Amendment to the DA is consistent with the Mitigated Negative Declaration adopted for Residential Planned Development Permit No. 2016-01. 217 Ordinance No. 522 Page 3 SECTION 2. The City Council of the City of Moorpark does hereby find as follows: A.The provisions of the First Amendment to the Development Agreement are consistent with the General Plan land use designation, help achieve the goals of the Land Use Element and Housing Element and are consistent with the goals and policies of all other elements. The development of a residential project in accordance with the General Plan achieves a well- balanced and diversified economy and provides a variety of housing options. In addition, further analysis was conducted to ensure that the payment of an affordable housing in-lieu fee of $4,186,000 instead of the construction of 25 low-income housing units remains consistent with the Housing Element. The City’s RHNA for the 2021-2029 planning period is 1,289 total units (610 lower, 245 moderate, and 434 above moderate). The City’s 2021-2029 Housing Element identified capacity for 2,491 total units (653 lower, 297 moderate, and 1,541 above moderate). Thus far in the 2021-2029 planning period, the City has approved entitlements for 19 accessory dwelling units at the lower income level. Approving the First Amendment to the Development Agreement would reduce the total number of units that can be accommodated on sites identified in the site inventory within the lower income category from 654 units to 629 units. However, this would retain a buffer of 19 lower income units beyond the original required RHNA allocation for the lower income category. The First Amendment also would result in an increase in the total number of above moderate-income units from 1,541 units to 1,566 units, where only 434 units were required to be identified originally. Due to the remaining buffer of 19 lower income units, and the fact that 19 lower income ADUs have been approved already, the proposed action would not result in a reduction of identified units below the required RHNA allocation. As required by Government Code Section 65863, the above analysis provides evidence that even with the approval of the First Amendment and the revised Project, the remaining sites identified in the housing element are adequate to accommodate the City’s RHNA allocation at all income levels. B.The provisions of the First Amendment to the Development Agreement are consistent with this Chapter 15.40 of the Moorpark Municipal Code because the Development Agreement contains the elements required by Section 15.40.030 and has been processed through a duly noticed public hearing, as required by law. SECTION 3. The City Council hereby adopts the First Amendment to the DA attached hereto and incorporated herein (Exhibit A) between the City of Moorpark, a municipal corporation, and M.P. Group LLC, Moorpark Homes LLC and CLP Investment LLC and the City Clerk is hereby directed to cause one copy of the signed, adopted agreement to be recorded with the County Recorder no later than ten (10) days after the City enters into the DA pursuant to the requirements of Government Code Section 65868.5. 218 Ordinance No. 522 Page 4 SECTION 4. If any section, subsection, sentence, clause, phrase, part or portion of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, phrases, parts or portions be declared invalid or unconstitutional. SECTION 5. This Ordinance shall become effective thirty (30) days after its passage and adoption. SECTION 6. The City Clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said City; shall make a written record of the passage and adoption thereof in the minutes of the proceedings of the City Council at which the same is passed and adopted; and shall publish notice of adoption in the manner required by law. PASSED, AND ADOPTED this 1st day of May, 2024. Chris R. Enegren, Mayor ATTEST: Ky Spangler, City Clerk Exhibit A – First Amendment to Development Agreement 219 12853-0018\2009855v4.doc 12853-0099\2834565v4.doc 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 the CITY OF MOORPARK and M.P. Group, LLC (Pacific Communities), MOORPARK HOMES, LLC AND CLP INVESTMENT, LLC Exhibit A Ordinance No. 522 Page 5 220 -1- 12853-0099\2834565v4.doc FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT the ("First Amendment") is made and entered into on ____________________, 2024 by and between the CITY OF MOORPARK, a municipal corporation (referred to hereinafter as "City"), MP Group, LLC. a California limited liability company (“MP Group”), MOORPARK HOMES, LLC. a California limited liability company (“Moorpark Homes”) and CLP INVESTMENT, LLC. a California limited liability company (“CLP”), the owners of real property within the City of Moorpark generally referred to as Residential Planned Development Permit 2016-01 (referred to hereinafter individually as "Developer"). City and Developer are referred to hereinafter collectively as a "Party" and collectively as the "Parties." In consideration of the mutual covenants and agreements contained in this Agreement, City and Developer agree as follows: 1.Recitals. This First Amendment is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the Parties: 1.1 MP Group is the owner in fee simple of certain real property in the City of Moorpark identified as Parcel 1 (“Parcel 1”) in the legal description set forth in Exhibit “A” which exhibit is attached hereto and incorporated by reference. Moorpark Homes is the owner in fee simple of certain real property in the City of Moorpark identified as Parcel 2 (“Parcel 2”) in Exhibit “A”. CLP is the owner in fee simple of certain real property in the City of Moorpark identified as Parcel 3 (“Parcel 3”) in Exhibit “A” and that certain real property referred to herein as the “City Site” and more particularly described in Exhibit “B” attached hereto and incorporated by reference. Parels 1, 2, and 3 are referred to hereinafter collectively as the “Property”; 1.2 Developer and City entered into a Development Agreement for Vesting Tentative Tract Map No. 5882 on October 4, 2017, which was recorded on October 11, 2017, as Instrument Number 20171011-00132051-01/45 in the Official Records of Ventura County, California ("Development Agreement") with respect to the Property and in connection with the development of 153 small lot single-family homes, 131 detached condominium homes, a 21,816 square foot recreation center, a 23,668 square foot linear park, associated roadways and infrastructure, detention basins and other improvements on the approximate 38.52 acre site (“Project”); and 1.3 Sections 6.13 and 6.14 of the Development Agreement obligate Developer to provide (i) twenty-five (25) dwelling units to be sold to buyers who meet the criteria of low-income (80% of median income); and (ii) a 1.6 acre parcel of land (“City Site”) to satisfy the requirement to provide units for buyers who meet the criteria of very low-income (50% of median income); and Ordinance No. 522 Page 6 221 -2- 12853-0099\2834565v4.doc 1.4 Section 6.13 of the Development Agreement also provides that prior to recordation of the first final Tract Map for Tract 5882, the City Council must approve an Affordable Housing Agreement and a Purchase and Sale Agreement, that are consistent with the Development Agreement, in order to provide for the sale of the twenty-five (25) dwelling units to qualified low- income buyers and the conveyance of the City Site to the City; and 1.5 On or about December 19, 2019, Developer and the City entered into that certain Affordable Housing Agreement (“AHA”), which was recorded against the Property on December 26, 2019, as Instrument No. 20191226-00164341- 01/24. Pursuant to that AHA, Developer agreed to comply with a series of requirements for the construction and sale of 25 affordable units; and 1.6 In 2023, Developer prepared an updated financial feasibility analysis of the affordable housing obligations in the Development Agreement and the Affordable Housing Agreement and has asserted that, with those obligations, the Project is not financially feasible. Accordingly, the Developer has requested that the Developer be relieved of the requirement to construct 25 units of affordable housing and instead pay an affordable housing in-lieu fee of $4,186,000 (the “In-Lieu Fee”). The City has considered Developer’s request and retained an independent financial consultant to advise the City on the request; and 1.7 Developer and City now mutually desire to amend the Development Agreement to remove the requirement for the Developer to construct twenty -five (25) dwelling units to be sold to buyers who meet the criteria of low-income (80% of median income) and replace it with the requirement for the Developer t o pay the City the I n-Lieu Fee while at the same time retaining the provision in the Development Agreement that Developer convey to the City a 1.6 acre City Site parcel to satisfy the requirement to provide units for buyers who meet the criteria of very -low- income (50% of median income ); and 1.8 With the payment of the In-Lieu Fee pursuant to this First Amemdment, the AHA is no longer needed and may be terminated ; and 1.9 On April 25, 2023, the Developer applied for the First Amendment to request changes to the affordable housing requirement outlined in the original Agreement, which resulted in the removal of the requirement to construct 25 low-income for-sale units and replacement with the required payment of an affordable housing in-lieu fee; and 1.10 On March 19, 2024, the Planning Commission commenced a duly noticed public hearing on the First Amendment, and at the conclusion of the hearing on March 19, 2024, recommended approval of this Agreement. 1.11 On April 17, 2024, the City Council commenced a duly noticed public hearing on the First Amendment, and following the conclusion of the hearing Ordinance No. 522 Page 7 222 -3- 12853-0099\2834565v4.doc closed the hearing and approved the First Amendment, incorporated herein, by adoption of Ordinance No. 522 (“Enabling Ordinance”) on May 1, 2024. 2.Section 3.2 (Release Upon Subsequent Transfer) is hereby amended to read as follows: 3.2 “Release Upon Subsequent Transfer. Upon the conveyance of Developer’s interest in the Property or any portion thereof by Developer or its successor(s) in interest, the transferor shall be released from its obligations hereunder arising after the conveyance with respect to the portion of Property conveyed as of the effective date of the conveyance, provided that the transferee expressly assumes all obligations of the transferred portion of the Property and a copy of the executed assignment and assumption agreement is delivered to the City prior to 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. Nothing contained herein shall be deemed to grant to City discretion to approve or deny any such conveyance. Notwithstanding the foregoing, this Agreement shall not be binding upon the transferee of a Completed Unit with respect to the transferee’s interest in such Completed Unit, and the rights and obligations of Developer under this Agreement shall not run with the portion of the Property that is conveyed with the Completed Unit after such conveyance of the Completed Unit by Developer or its successor in interest. For purposes of this Agreement, “Completed Unit” means a completed residential unit within the Property for which the City has issued a certificate of occupancy or final inspection.” 3.Section 6.12 (Landscape Maintenance Assessment District (LMD)) is hereby amended to read as follows: 6.12 Community Facility District (CFD). Prior to issuance of a Zoning Clearance for the first building permit or the approval of the first phased final ma p for the Project: Developer shall pay the City a Fifty Thousand Dollar ($50,000) CFD Formation Deposit. The District shall be for the purposes of funding future costs for the maintenance of landscaping and irrigation of the landscaped area and related improvements including but not limited to block walls and hardscape adjacent to Los Angeles Avenue, Leta Yancy Road and the southern boundaries of the Project. The City shall administer the annual renewal of the CFD, and any costs related to such administrati on shall be charged to the fund established for such CFD revenues and expenses. Developer agrees to cast affirmative ballots for the establishment of the CFD, and for annual increases in the assessments thereunder, for the purposes specified in this subsection. Developer hereby waives any right it may have to contest or protest any such assessments or assessment increases. In the event that any such Assessment District has insufficient funds for its purposes, then Developer shall pay the funds required to t he CFD within five (5) business days after written demand from the CFD from time to time. Ordinance No. 522 Page 8 223 -4- 12853-0099\2834565v4.doc Developer shall be responsible for all CFD costs until acceptance of the CFD by the City. Developer acknowledges and agrees that the CFD will not be accepted by City until after the final occupancy or final inspection is approved for the last residential dwelling unit in the Project and Developer has made all required CFD improvements in a manner that are acceptable to City's Parks and Recreation Director and Developer has provided City with a deposit for the next subsequent twelve ( 12) months of CFD maintenance costs. Prior to approval of the first phased final map for the Project, the City Council at its sole discretion may determine that all or a part of the improvements planned to be included in the CFD may instead be placed in the Homeowners' Association for the Project. 4.Section 6.13 (Densities Allowed for Development and Affordable Housing Fee) is hereby amended to read as follows: 6.13 “Affordable Housing Fee. (a)Developer agrees that densities vested and incentives and concessions received in the Project Approvals include all densities available as density bonuses and all incentives and concessions to which Developer is entitled under the Moorpark Municipal Code, Government Code Sections 65915 through 65917.5 or both; Developer shall not be entitled to further density bonuses or incentives or concessions and further agrees, in consideration for the density bonus obtained through the Project Approvals that is greater than would otherwise be available. (b)The Developer agrees to pay an in-lieu fee for the community benefit of Affordable Housing (“Affordable Housing Fee”) prior to the issuance of the first building permit for a residential unit. The Affordable Housing Fee may be expended by the City in an effort to further fair housing. The amount of the Affordable Housing Fee shall be a flat fee of Four Million One Hundred and Eighty Six Thousand Dollars ($4,186,000.00), in-lieu of providing twenty-five (25) residential units for low-income households. If the Affordable Housing Fee is unpaid as of January 1, 2025, then on such date and annually thereafter, the Affordable Housing Fee shall be adjusted by any increase in the CPI until the Affordable Housing Fee has 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 during the prior year. The calculation shall be made using the month of January over the month of January from the prior year or in the event there is a decrease in the CPI for any annual indexing, the Affordable Housing Fee shall remain at its then current amount until such time as the next Ordinance No. 522 Page 9 224 -5- 12853-0099\2834565v4.doc subsequent annual January indexing which results in an increase. By paying the Affordable Housing Fee, the Developer shall have met its Affordable Housing obligations. (c) Concurrently with and subject to the City's payment to CLP of the Purchase Price for the City Site pursuant to Subsection 6.14 and the Purchase and Sale Agreement (as those terms are defined in Subsection 6.14, Developer shall pay City a one-time fee in the amount of One Million Five Hundred Thousand Dollars ($1,500,000.00) or the appraised fair market value of the City Site, as defined in Subsection 6.14, whichever is less, in-lieu of providing seventeen (17) residential units for very-low income households.” 5. Section 6.14(b) is hereby amended to read as follows: 6.14 (b) CLP shall execute and deliver the Purchase and Sale Agreement for the City Site prior to approval of the Final Map Phase 1 and Final Map Phase 4 for the Project provided, however, that the Final Approval of the Project Approvals and this Agreement shall be conditions precedent to the effectiveness of the Purchase and Sale Agreement. The close of escrow under the Purchase and Sale Agreement shall occur after the City's final approval of all items required in 6. 14(e), below. For the purposes of this Agreement, " Final Approval" means when all of the following have occurred: (i) the City shall have approved the Project Approval and this Agreement; and (ii) the time periods forfiling any appeal from or legal challenge to the Project Approvals and this Agreement shall have expired without an appeal or legal challenge (including, without limitation, any CEQA challenge) having been filed; or, if an appeal or other legal challenge shall have been filed, all such appeals or legal challenges shall have been subsequently terminated with the approval of the Project Approvals and this Agreement upheld, and the time period(s) for filing any appeal( s) from the upheld decision( s) shall have expired without further appeals having been filed. 6. Section 6.20 (CPI Indexes) is hereby amended to read as follows: 6.20 “CPI Indexes. In the event the “CPI” referred to in Sections 6.3, 6.6, 6.7, 6.8, 6.13, and 6.14 (l), or the Bid Price Index referred to in Section 6.4, 6.7, and 6.26 are 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.” 7. Section 6.21 (Proposed Mello-Roos Community Facilities District) is hereby amended to read as follows: Ordinance No. 522 Page 10 225 -6- 12853-0099\2834565v4.doc 6.21 “Proposed Mello-Roos Community Facilities District. Developer agrees that if a Mello-Roos Community Facilities District (CFD) is formed consistent with Section 7.3 of this Agreement, Developer shall submit the required deposit and reimbursement agreement to fund all City costs associated with the proposed CFD formation. Developer also agrees that the City Council upon the conclusion of the public hearing required by applicable law and in its sole and unfettered discretion may abandon establishment of the CFD. Developer agrees that any CFD bond proceeds in the Project Improvement Fund in excess of the amount required to fund authorized costs, including any City and CFD consultant costs associated with the redemption of bonds shall be applied to redeem a portion of the bonds, consistent with applicable provisions of State and Federal laws and regulations. Developer also agrees that if a CFD is authorized, the CFD may include on- going annual special taxes for services provided to the Project. Developer further acknowledges and agrees that the City Council shall determine the total amount of CFD bonds to be sold and the amount Developer may receive as reimbursement from the CFD bonds proceeds. If a CFD is authorized and formed, Developer shall include a disclosure to the initial third party buyer of each residential dwelling unit in the Project. The form and language of the disclosure shall be approved by the City Attorney and Community Development Director and shall conform to all requirements of the applicable State agencies pertaining to real estate disclosure.” 8.Section 6.25 (Homeowners Association) is hereby amended to read as follows: 6.25 Homeowners Association. Prior to recordation of the Final Map Phase 1 and Final Map Phase 4 for the Property, if required by City at its sole discretion, Developer shall form one or more property owner associations to assume ownership and maintenance of private recreation, private streets, parking lots, landscape areas, flood control and NPDES facilities and other amenities within the Project. The obligation of said Homeowners Associations shall be more specifically defined in the conditions of approval of the first tentative tract or parcel map for the property. 9.Section 6.26 (Los Angeles Avenue Improvements) is hereby amended to read as follows: 6.26 Los Angeles Avenue Improvements. Developer agrees to pay City two million fifteen thousand one hundred fourteen dollars ($2,015,114.00) to reimburse City for the cost of the improvements to Los Angeles Avenue along the frontage of the Project less one hundred thousand dollars ($100,000.00) previously paid by Developer to City for improvements to Los Angeles Avenue. The net payment to City of one million nine hundred fifteen thousand one hundred fourteen dollars ($1,915,114.00) shall be referred to as the Los Angeles Ordinance No. 522 Page 11 226 -7- 12853-0099\2834565v4.doc Avenue Reimbursement Payment which shall be paid in the amount of six thousand seven hundred forty-four dollars ($6,744.00), hereinafter referred to as Reimbursement Fee prior to the issuance of a building permit for each residential dwelling unit in the Project. The Reimbursement Fee shall be adjusted annually commencing January 1, 2019 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. Notwithstanding the foregoing provision of this Subsection 6.26, in the event a CFD as described in Subsections 6.21 and 7.3 of this Agreement is formed and bonds sold, Developer shall cooperate in good faith with the City to facilitate payment of the Los Angeles Reimbursement Payment from the proceeds of the CFD. In the event the CFD cannot issue tax-exempt bonds (i.e., the bonds would need to be issued as taxable bonds) to finance the Los Angeles Avenue Reimbursement Payment, City may, at its option, elect to issue tax exempt bonds to provide for payment of other City capital improvements authorized to be financed by the CFD, and upon issuance of such bonds payment of the Los Angeles Avenue Reimbursement Payment shall be deemed satisfied if and to the extent net proceeds of the bonds available to the City are in an amount sufficient to provide for payment of the obligation. 10.Section 7.11 (Affordable Housing) is hereby removed from the DA. 11.Section 11.4 (Remedies for Breach) is hereby amended to read as follows: 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 fea sible 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. The remedies for breach of the Agreement by the City shall be injunctive relief and/or specific performance. The remedies for breach of the Agreement by the Developer shall be injunctive relief and/or specific performance. In addition, and notwithstanding any other language of this Agreement, if the breach is of Subsection 6.13 or 6.14 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. Ordinance No. 522 Page 12 227 -8- 12853-0099\2834565v4.doc 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. No delay or omission to exercise any remedy upon the occurrence of any default hereunder shall impair any such remedy or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient a Party. Notwithstanding the previous provisions of the Section, Developer shall not be entitled to monetary damages for breach of this Agreement by City or consequential damages incurred that are the result of that breach. In addition, 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 or consequential damages incurred that are the result of the termination.” 12.Operative Date. As described in Section 1.5 above, this First Amendment shall become operative on the Operative Date of the First Amendment, being the date the Enabling Ordinance becomes effective pursuant to Government Code Section 36937. 13.Entire Agreement. This First Amendment Agreement, together with the 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. 14.Severability. If any provision of this First Amendment 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. 15.Recordation of First Amendment. This First Agreement 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. 16.Counterparts. This agreement may be executed in counterparts and upon every Party executed a counterpart, each signed copy shall have the same force and effect as an original document and as if the Parties to the counterparts had signed the same document. Ordinance No. 522 Page 13 228 -9- 12853-0099\2834565v4.doc 17.Authority to Execute. Developer warrants and represents that to its knowledge as of the Operative Date of this First Amendment 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 First Amendment and the Agreement. IN WITNESS WHEREOF, the Parties have executed this First Amendment to the Development Agreement effective as of the Operative Date of the First Amendment. CITY OF MOORPARK __________________________ Chris R. Enegren, Mayor ATTEST: __________________________ Ky Spangler, City Clerk MP GROUP, LLC a California limited liability company By: Pacific Housing, LLC, Manager By: __________________________ Christine Chung, Manager MOORPARK HOMES, LLC a California limited liability company By: Pacific Communities Builder, Inc., Manager By: __________________________ Nelson Chung, President CLP INVESTMENT, LLC a California limited liability company By: __________________________ Christine Chung, Manager Ordinance No. 522 Page 14 229 A-1 12853-0099\2834565v4.doc Ordinance No. 522 Page 15 230 A-2 12853-0099\2834565v4.doc Ordinance No. 522 Page 16 231 A-3 12853-0099\2834565v4.doc Ordinance No. 522 Page 17 232 A-4 12853-0099\2834565v4.doc Ordinance No. 522 Page 18 233 A-5 12853-0099\2834565v4.doc Ordinance No. 522 Page 19 234 B-1 12853-0099\2834565v4.doc EXHIBIT “B” LEGAL DESCRIPTION WITHIN LOT " K" TRACT L, RANCHO SIMI PER 5MR5 That portion of Parcel "C" of that certain "Notice of Approval for Lot Line Adjustment" No.99-1, in the City of Moorpark, County of Ventura, State of California, recorded as Document No. 1999- 0221273-00 of Official Records, being a portion of Lot "K", Tract "L", Rancho Simi as per map filed in Book 5, Page 5 of Miscellaneous Records (Maps), All in the Office of the County Recorder of said County more particularly described as follows: BEGINNING at the southeast comer of said Parcel "C" being a point of intersection with the south line of said Lot "K" and the west line of Leta Yancy Road (formerly Liberty Bell Road, 40 feet wide) as shown on the Map of Tract No. 4147 filed in Book 112, Page 7 of Miscellaneous Records (Maps) of said County; 1ST Thence, along said west line of Leta Yancy Road, North 0°27'05"East 509.24 feet to a point of intersection with the west line of the land described in the deed recorded May 4, 1993 as Document No. 93-079362 of Official Records; 2nd Thence, along the west line of said deed, North 4°07'20"West 13.55 feet to a point of intersection with a line which is parallel with and 490.94 feet south of the north line of Lot "K", said north line also being the centerline of Los Angeles Avenue; 3rd Thence, along said parallel line North 89°32'10"West 178.78 feet; 4th Thence, at right angles South 0°27'50"West 442.62 feet to the intersection with the south line of said Lot "K"; 5th Thence, along said south line of Lot "K", South 65°32'07"East 197.01 to the POINT OF BEGINNING. CONTAINING: 1.993 Acres, more or less. SUBJECT TO: All covenants, Rights, Rights-of-Way and Easements of record. EXHIBIT "B": Attached and by this reference made a part hereof. Ordinance No. 522 Page 20 235 C-1 12853-0099\2834565v4.doc EXHIBIT “C” ADDRESSESS OF PARTIES To City: City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Attn: City Manager To Developer: Pacific Communities 1000 Dove Street, Suite 300 Newport Beach, CA 92660 Attn: Nelson Chung Ordinance No. 522 Page 21 236