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HomeMy WebLinkAbout727 - Ordinances ORDINANCE NO. 727 AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT DRC2003-00751, A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF RANCHO CUCAMONGA AND HENDERSON CREEK PROPERTIES LLC., FOR THE PURPOSE OF DEVELOPING AN APPROXIMATE 65.3 ACRE SITE WITH UP TO 123 RESIDENTIAL LOTS, FOR PROPERTIES GENERALLY LOCATED AT THE NORTHERLY END OF WARDMAN BULLOCK ROAD AT THE INTERSECTION OF COLONBERO ROAD - APN: 0225-084-04, 0226-081-09 AND 10, AND 0226- 082-29. A. RECITALS. 1. California Government Code Section 65864 provides, in pertinent part, as follows: "The Legislature finds and declares that: (a) The lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer, and discourage investment in and commitment to comprehensive planning, which would make maximum efficient utilization of resources at the least economic cost to the public. (b) Assurance to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules and regulations, and subject to conditions of approval, will strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs of development." 2. California Government Code Section 65865 provides, in pertinent part, as follows: "(a) Any city...may enter into a development agreement with any person having a legal or equitable interest in real property for the development of the property as provided in this article..." 3. California Government Code Section 65865.2 provides, in part, as follows: "A development agreement shall specify the duration of the agreement, the permitted uses of the property, the density or intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The development agreement may include conditions, terms, restrictions, and requirements for subsequent discretionary actions, provided that such conditions, terms, restrictions, and requirements for discretionary actions shall not prevent development of the land for the uses and to the density or intensity of development set forth in the agreement..." Ordinance No. 727 Page 2 of 41 4. Attached to this Ordinance, marked as Exhibit "A" and incorporated herein by this reference, is proposed Development Agreement DRC2003-00751, concerning that property generally located at the northerly end of Wardman Bullock Road at the intersection with Colonbero Road and legally described in the attached Development Agreement. Hereinafter in this Ordinance, the Development Agreement attached hereto as Exhibit "A" is referred to as the "Development Agreement." $. On May 12, 2004, the Planning Commission of the City of Rancho Cucamonga held a duly noticed public hearing concerning the Development Agreement and concluded said hearing on that date and recommended approval through adoption of its Resolution No. 04-61. 6. On June 2, 2004 and continued to June 16, 2004, the City Council of the City of Rancho Cucamonga conducted a duly noticed public hearing regarding the Development Agreement. 7. All legal prerequisites prior to the adoption of this Ordinance have occurred. B. ORDINANCE. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga does hereby find, determine, and ordain as follows: SECTION 1: This Council hereby specifically finds that all of the facts set forth in the Recitals, Part A, of this Ordinance are true and correct. SECTION 2: Based upon the facts and information contained in the record of this project, the City Council makes the following findings and statements, and takes the following actions, pursuant to the California Environmental Quality Act ("CEQA") (Public Resources Code Section 21000 et. seq.): a. Henderson Creek Properties, LLC (the "Applicant") seeks approval of a series of actions related to the annexation of land from unincorporated San Bernardino County into the City of Rancho Cucamonga, the approval of a General Plan Amendment, Etiwanda North Specific Plan Amendment, Tentative Tract Map SUBTT16324, and associated Development Agreement. The actions also include the development of 123 single-family housing units on approximately 65.3 acres and designations of flood control, utility corridor, and open space on approximately 25.1 acres of land. Another 10 acres is also proposed for annexation and is currently used for a utility easement and for flood control purposes. The total area to be annexed is approximately 100.4 acres. The density of the development is approximately 1.9 dwelling units per gross acre. These series of actions and approvals are hereinafter defined in this Ordinance as the "Project." Ordinance No. 727 Page 3 of 41 b. The Applicant has submitted the following applications relating to the Project: Annexation DRC2003-00753, General Plan Land Use Amendment DRC2003-00749, Etiwanda North Specific Plan Amendment DRC2003-00750, Tentative Tract Map SUBTT16324, and Development Agreement DRC2003-00751 (collectively the "Project Applications"). These Project Applications, as well as the appeal of the Planning Commission's approval of Tentative Tract Map SUBTT16324, constitute the matters involving the Project, which are submitted to the City Council for decision and action. ¢. The City of Rancho Cucamonga, acting as the lead agency, prepared the Draft Environmental Impact Report ("EIR") for the Project, including certain technical appendices (the "Appendices") to the Draft EIR (State Clearinghouse No. 2003111057). The Draft EIR was circulated for a 45-day public review and comment period from February 20, 2004, through April 5, 2004. Comments were received during that period and written responses were prepared and sent to all persons and entities submitting comments. Those comments and the responses thereto have been included in the Final EIR, as well as the revisions to the Draft EIR and a copy of the Draft Development Agreement (Appendix K). Those documents, together with the Draft EIR and Appendices, comprise the Final EIR. d. The City Council finds that the Final EIR was completed pursuant to CEQA, and the State Guidelines for Implementation of CEQA, 14 California Code of Regulations, Section 15000, et. seq. ("the Guidelines"). By Resolution No. 04-60, the City Council has certified the Final EIR as being in compliance with the requirements of CEQA. e. The City Council finds that the Final EIR was presented to the City Council and that the City Council reviewed and considered the information in the Final EIR and has reached its own conclusions with respect to the Project and as to whether and how to approve the various components of the project approvals. f. The City Council finds that the Final EIR represents the independent judgment of the City Council of the City of Rancho Cucamonga and adequately addresses the impacts of the Project and imposes appropriate mitigation measures for the Project. g. Public Resources Code Section 21081 provides that no public agency shall approve or carry out a project for which an environmental impact report has been completed which identifies one or more significant environmental effects unless the public agency makes one or more of the following findings with respect to each significant effect: i. Changes or alterations have been required in, or incorporated into the project, which mitigate or avoid the significant environmental effects thereof as identified in the completed environmental impact report. Ordinance No. 727 Page 4 of 41 ii. Such changes or alterations are within the responsibility and jurisdiction of another public agency and such changes have been adopted by such agency or can and should be adopted by such other agency. iii. Specific economic, social or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report. h. The City Council finds, based upon the Initial Study, the Final EIR, public comments, public agency comments, and the entire record before it, that the Project may create significant impacts in the areas of Land Use and Planning, Traffic and Circulation, Noise, Geology and Soils, Hydrology and Water Quality, Public Health and Safety, Biological Resources, Air Quality, and Public Services. However, changes or alterations have been required in, or incorporated into the Project, which will mitigate and in some cases, avoid the significant impacts. The specific changes and alterations required, and a brief explanation of the rationale for the findings with regard to each impact, are contained in the "CEQA Findings" for the Project (Exhibit "F" to the June 16, 2004 City Council Staff Report) and are incorporated herein by reference. In addition to the rationale and explanation contained in the "CEQA Findings", the City Council makes the following additional findings regarding the impacts of the Project on the resources and services listed in this paragraph: i. Land Use and Plannin.q. The Etiwanda North Specific Plan requires a minimum lot size of 20,000 square feet, and the Final EIR indicates that the Project would be inconsistent with the Etiwanda North Specific Plan, because some of the proposed residential lots would be less than 20,000 square feet. With the approval of the proposed Specific Plan Amendment that will change the land use district from Very Low Residential (0.1 - 2 dwelling units per acre) to Low Residential (2 - 4 dwelling units per acre) for the 65.3 acre area designated for residential development, the Project would then be consistent with the Etiwanda North Specific Plan. As a result, the Project site may be developed with lots less than 20,000 square feet. In addition, in order to address the reduction in lot sizes and the likely effect of lots averaging 18,000 square feet, with a minimum size of 14,025 square feet, on the ability of those property owners to own and maintain horses on those lots, a mitigation measure is being imposed (Mitigation Measure LU-2) to require the developer to pay an in-lieu fee to the City for the development of an equestrian center that would serve residents in the area desiring to own and maintain horses. The Etiwanda North Specific Plan also requires a particular design and development theme that is consistent with Ordinance No. 727 Page 5 of 41 the character of Old Etiwanda by having access to trails, provisions for views of the mountains and complying with certain design requirements for landscaping, walls, fencing, lighting and the community's entry points. Mitigation Measure LU-1 is being imposed that requires the project developer to submit a landscape plan that is consistent with the City's neighborhood Theme Plan as contained in the Etiwanda North Specific Plan. Based on these mitigation measures, the City Council finds that any inconsistency of the Project with the Etiwanda North Specific Plan will be mitigated to a level of less than significant. ii. Traffic and Circulation. The Final EIR indicates that the proposed Project will increase vehicle trips and impact the level of service along arterial streets and intersections. Specifically, the Final EIR found that Project traffic, together with other anticipated traffic, will likely cause traffic flow to be deficient by experiencing a Level of Service (LOS) of "E" or "F" at the intersections of Wardman-Bullock Road (NS) at Wilson Avenue (EW) and at Etiwanda Avenue (NS) at Banyan Street (EW). Mitigation Measures are imposed to require the developer to construct and widen Wardman-Bullock Road along the Project frontage (Mitigation Measure TC-3), to install a traffic signal at Etiwanda Avenue (NS) and Banyan Street intersection (Mitigation Measure TC-5), to contribute developer fees for other traffic improvements (Mitigation Measures TC-1 and TC-5), and to modify signing and stripping of certain roadways and intersections (Mitigation Measures TC-2 and TC-4). The City's "City-Wide System Fees for Transportation Development" provides for the payment of fees at the time building permits are issued based on a formula adopted by the City Council by resolution. That formula provides for the payment of a fee per dwelling unit of approximately $1,710.03 and a credit against those fees for certain qualifying traffic improvements that mitigate the traffic impacts of the Project. The City is required to use traffic impact fees to fund City-wide and regional roadway and traffic improvements, and as a consequence, the payment of those fees by the project developer will contribute to the mitigation of the Project's impacts to traffic and circulation. Based on these mitigation measures, the City Council finds that traffic at the study intersections will be reduced so that those intersections operate at a LOS "D," and that the impacts of the Project on traffic and circulation will be mitigated to a level of less than significant. iii. Noise. The Final EIR identifies the likelihood of short-term impacts on ambient noise levels during construction of the Project. The primary source of construction noise is heavy equipment associated with construction activities, such as trucks, graders, Ordinance No. 727 Page 6 of 41 bulldozers, concrete mixers, cranes and portable generators with high levels of sound generation. Earthmoving equipment is anticipated to create noise ranging between 75 to 90 dB(A) at 50 feet from the source. A mitigation measure has been imposed that will require the construction contractors to adhere to the City's Development Code for hours of construction activity - 6:30 a.m. to 8:00 p.m., Monday through Saturday, with no construction to take place on Sundays or holidays (Mitigation Measure N-l). Based on this mitigation measure, the City Council finds that the shore term noise impacts from the Project will be reduced to less than significant levels. The Final EIR also identified that noise levels at the facades of homes nearest the Project exit at WardmamBullock Road would experience noise near 60 dB CNEL due to vehicular traffic. The Final EIR states that if the property owners of the homes fronting on Wardman-Bullock Road can close their windows and still obtain adequate ventilation, then the goal of reducing the interior noise to a 45 dB(A) CNEL interior noise level would be achieved. A mitigation measure will be imposed to require the developer to install air conditioning units for the residences that front along Wardman-Bullock Road so as to allow window closure during warm days so as to achieve a less than significant interior noise level for those homes with the windows closed (Mitigation Measure N-2). Based on this mitigation measure, the City Council finds that the potential noise impacts of the Project on current and future residents will be mitigated to a less than significant level. iv. GeoloRy and Soils. The Final EIR identifies that development of the Project will expose people and structures to risks associated with seismic ground shaking due to regional and local faults located in the area. Mitigation measures are imposed which require the developer to ensure that all grading plans and grading work are done in compliance with the geotechnical report for the Project so that soil and slopes are properly compacted and grading work achieves all seismic requirements (Mitigation Measure GS-1), that the developer shall submit building plans which incorporate the recommendations of the geotechnical report for preliminary foundation work, utility trenching, and concrete slabs (Mitigation Measure GS-2), and that all buildings and structures are built to Uniform Building Code and/or Structural Engineers Association of California standards for seismic safety (Mitigation Measure GS-3). Based on these mitigation measures, the City Council finds that the effects of seismic shaking on persons and structures will be mitigated to a level that is less than significant. Ordinance No. 727 Page 7 of 41 v. Hvdroloav and Water Quality. The Final EIR identifies that during storm events, construction activities (particularly vegetation removal, grading and excavation), could affect the amounts of sediments and suspended solid material leaving the site such that water quality downstream of the site could be affected to a level that was potentially significant. Vegetation removal and grading would expose the soil to erosion by wind and rain, and rainfall could carry more sediment off the disturbed areas and adversely affect water quality downstream. In addition, during earthwork and construction activities, pollutants that may be discharged in stormwater include vehicle fluids such as oil, grease and coolants, asphaltic emulsions associated with asphalt-concrete paving, paints and solvents, wood products, and metal and metal plated products. In accordance with the State of California's implementation of the National Pollution Discharge Elimination System (NPDES) permit requirements and the Storm Water Pollution Prevention Plan (SWPPP) requirements imposed by the Regional Water Quality Control Board (RWQCB), the Project developer will be required to include Best Management Practices (BMPs) to prevent construction of the Project from polluting surface waters. Compliance with these permitting requirements will require the Project developer and construction crews to comply with a variety of measures, such as limiting clearing and grubbing areas to the limits of the active construction area, using hay bales and sand bags to control erosion during the rainy season, using enclosed storage sheds where possible, utilizing hazardous materials in a manner that avoids contact with the ground, avoiding the application of certain materials during periods of rainfall, washing of equipment or vehicles in a designated place where a sump can be located to collect wash water for proper disposal, and servicing equipment and vehicles off-site. A mitigation measure is imposed to require compliance with these permitting requirements and BMPs (Mitigation Measure HWQ-1). The City Council finds that with the imposition of this mitigation measure and after implementation of BMPs set forth in the SWPPP, potentially significant impacts on water quality from construction activity will be mitigated to a level of less than significant. vi. Public Health and Safety, The Final EIR identifies that the frequency of high winds will expose structures and residents to potential damage from extreme wind conditions. In addition, wildfires on adjacent lands, including National Forest land and undeveloped properties, could threaten residential development on the Project site. Specifically, the Final EIR indicates that Santa Aha winds along the front of the mountains can reach hurricane force, with winds in the area of the Project detected at reaching 80 Ordinance No. 727 Page 8 of 41 to 100 miles per hour. Damage to roofs, fences, windows and landscaping is possible in these types of conditions. Three mitigation measures are imposed to mitigate the impacts of wind hazard to a less than significant level. Those measures include requirements to utilize optimum building materiats and construction techniques as required by the Uniform Building Code, to require disclosure of the potential for high winds in sa~es documents to prospective homebuyers, and to comply with other mitigation measures for control of particulate matter emissions during grading and construction (Mitigation Measures HS-1, HS-2, HS-3). Compliance with the provisions of the Uniform Building Code has been demonstrated to result in structures that are capable of withstanding winds projected for the Project area without serious damage. With respect to the impacts created by wildfires on adjacent lands, the City Council is particularly familiar with these risks after the City and surrounding areas recently experienced the Grand Prix fire in October 2003. The City Council also understands that the addition of persons into an area of wildland vegetation increases the number of ignitions (risk), the growth of brush after a fire increases the intensity of new fires in the area (hazard), and the addition of homes and amenities into the same area (value) creates an increased need for fire protection and fuel modification. Design features have already been incorporated into the Project to ensure vegetation areas to the north are separated from residentia~ structures with a trail, a wall and a riprap drainage channe~ so as to provide approximately 100 feet of distance between chaparral vegetation and the homes. All homes will also be constructed with Class A roofs. Along the western boundary of the site where the wildfire threat is moderate, a six-foot masonry wall and "firewise" landscaping between native vegetation and the homes are to be required. A comprehensive mitigation measure (Mitigation Measure HS-4) requires a detailed landscape plan/fuel modification plan to contain requirements for "firewise" vegetation in specific areas, irrigation plans and specific standards applicable to certain areas of the Project site. In addition, Mitigation Measure HS-5 requires the installation of residential fire sprinklers as a component of the construction. The City Council finds that with the combination of appropriate landscaping, residential fire sprinklers, the introduction of certain new paved surfaces where none currently exist, and implementation of the Fuel Modification Plan will effectively reduce movement of potential fire into the Project area and thereby mitigate impacts to a level of tess than significant. vii. Biolo_qical Resources. The proposed Project would result in development of a 65.3 acre area of the site, and the Final EIR indicates that, prior to the Grand Prix fire of October 2003, that Ordinance No. 727 Page 9 of 41 area was previously covered with upland sage scrub, disturbed annual grassland and a small area of fiat-top buckwheat scrub. Specifically, prior to the Grand Prix fire, the portion of the site proposed for development had approximately 1.5 acres of disturbed annual grassland, 4.2 acres of disturbed annual grassland dominated by deerweed, 53.5 acres of Upland sage scrub dominated by white sage, and 4.5 acres of fiat-top buckwheat scrub. The impacts on the annual grassland areas is not considered significant because of the relatively small area impacted (approximately 1/3 of the total disturbed annual grassland on the site) and because those areas had experienced substantial disturbance from prior weed control measures, and the construction of power line maintenance roads and other roads that cross the property. With respect to upland sage scrub, most of that area was dominated by white sage, which is not considered to be sensitive habitat by the resource agencies that regulate biological resources. However, the City Council recognizes that the loss of this plant community for wildlife habitat is important when considering cumulative impacts on this resource. With respect to the flat-top buckwheat scrub, this is a common species and an indicator of prior disturbance to the land. The Final EIR indicates that no sensitive species of fiat-top buckwheat scrub were found on the site and therefore no impacts were expected to occur. The Final EIR recognizes that much of the vegetation previously found on the site would likely grow back after the fire if no development took place. However, the Biological Assessment not only found no substantial evidence of sensitive plant or wildlife species on the site, but it also found that due to the area already being disturbed by dirt roads for power line maintenance, previous construction activity, commercial harvesting of white sage, and flood control improvements and activities, development of the site would not have a significant impact on biological resources. Notwithstanding the foregoing, the Project site is within the boundaries of the North Etiwanda Open Space and Habitat Preservation Program (NEOSHPP), as adopted by the County of San Bernardino. To implement the goals and purposes of that Program, a mitigation measure has been imposed to require the Project developer to acquire and convey to the County, 58 acres of land within or near the NEOSHPP area that support alluvial fan sage scrub and/or upland sage scrub (Mitigation Measure BIO-l). This 58 acre area is intended to accomplish a "one to one" mitigation in acreage for the loss of the 53.5 acres of Upland sage scrub and to mitigate the potential loss of habitat for sensitive plants and animal species, and the loss of raptor foraging land. As required by the mitigation measure, the off-site mitigation land shall be equal to or greater in habitat value than that of the Project site. The City Council finds that the conveyance into the NEOSHPP of 58 acres of land by the Project developer would mitigate this impact to a level that is less than significant. Ordinance No. 727 Page 10 of 41 viii. Air Quality. The Final EIR identifies that the Project may create significant and unavoidable impacts to Air Quality. Specifically, the Final EIR identifies that emissions from construction related activities are likely to exceed the threshold of significance specified by the South Coast Air Quality Management District (SCAQMD). These impacts are considered to be short-term (tess than one year) and temporary and can cause nuisance impacts to adjacent land uses in the local area by way of fugitive dust. One cause of these short-term impacts is blowing dust resulting from the grading of the site. In addition, the use of diesel engine equipment during grading and construction along with worker trips is anticipated to create levels of nitrous oxides (NOx) that are also above the SCAQMD's thresholds of significance. Similarly, construction-related emissions, particularly from architectural coatings (painting) and off-road diesel equipment, are anticipated to create significant levels of reactive organic gases (ROG) and nitrous oxides (NOx) that will exceed SCAQMD thresholds of significance and result in significant short-term air pollution impacts. A comprehensive mitigation measure is imposed on the Project (Mitigation Measure AQ-1) which will require various dust control measures, emission control measures and off-site actions. Included in those measures are requirements to limit the simultaneous disturbance area to as small an area as is possible, terminate soil disturbance and accelerate dust control measures when winds exceed 25 miles per hour, stabilize disturbed areas if construction is delayed, require 90-day Iow-NOx tune-ups for off- road equipment, limit idling to 10 minutes for trucks and heavy equipment, encourage carpooling for construction workers, limit lane closures to off-peak travel periods, park construction vehicles off traveled roadways, wet down or cover dirt hauled off-site, wash or sweep access points daily and encourage receipt of construction materials during non-peak traffic hours. The City Council finds that with implementation of the recommended measures, construction emissions will be reduced, and that the Project's contribution to regional emission of criteria pollutants will be minimized. However, the City Council finds that despite the imposition of all these comprehensive mitigation requirements, construct[on emissions (building phase) will exceed SCAQMD's thresholds for ROG and NOx, and therefore, would remain significant after mitigation. ix. Cumulative Impacts - Air Quality, Noise and Public Services. The Final EIR provides that this Project, together with the construction of development projects in the vicinity, would likely create cumulative short-term impacts to air quality during construction. This Project would also create a significant cumulative impact to regional air quality because the Project Ordinance No. 727 Page 11 of 41 would add incremental pollutants to the South Coast Air Basin in the form of additional vehicle emissions. With respect to noise, the Final EIR indicates that the Project will create short-term cumulative construction noise impacts and long-term cumulative noise impacts due to increased vehicle trips. With respect to public services (schools), state law (Government Code Section 65995 (h)) provides for the payment of developer fees and deems such payment to be full and complete mitigation of school impacts. Consequently, as a matter of law, the long-term cumulative impacts to schools from this and other projects are deemed to be fully mitigated by the payment of developer fees and the City is precluded, by law, from imposing additional mitigation to address these potential impacts. The City Council finds that noise and air quality impacts associated with increased vehicle trips would remain significant when combined with existing and anticipated construction projects in the vicinity of the Project. i. The City Council finds, based on the Final EIR, that after implementation of the proposed mitigation measures, the following impacts associated with the proposed Project would remain significant: air quality (short-term impacts and short and long-term cumulative impacts) and noise (short-term and long-term cumulative impacts). j. The Final EIR describes a range of alternatives to the Project that might fulfill basic objectives of the Project. These alternatives include the required "No Project-No Development" alternative, and the "Development Under the Existing Land Use Designation Alternative." Other alternatives that were considered and rejected included the alternative location alternative and the alternative land use alternative. As set forth below, the alternatives identified in the Final EIR are not feasible because they would not achieve the basic objectives of the Project or would do so only to a much smaller degree and, therefore, leave unaddressed the significant economic, infrastructure, and General Plan goals that the Project is intended to accomplish, and are thus infeasible due to social and economic considerations, and/or they are infeasible because they would not eliminate the adverse environmental impacts of the proposed Project. Accordingly, each of the alternatives is infeasible. In making this finding, the City Council determines as follows: i) The objectives of the Project are: a) To be consistent with, and implement, the established policies and goals of the City of Rancho Cucamonga General Plan, Etiwanda North Specific Plan, City Development Code, and all other City development guidelines; b) To annex the 90.4 acre Project site and adjacent 10 acre utility easement into the City of Rancho Cucamonga; Ordinance No. 727 Page 12of41 c) To Integrate the Project with the character of the surrounding neighborhoods and establish a development that results in logical, coordinated growth; d} To establish a Project-wide circulation system that meets regional and local transportation needs and accommodates both vehicles and pedestrians; e) To provide a system of public/community facilities, including trails, open space areas, and landscaping to support the residents of the Project and surrounding area in an efficient and timely manner; t') To provide backbone public infrastructure (i.e., roads, utilities) to serve Project residents and the surrounding community; g) To minimize impacts to, and generate revenues in excess of costs for various public service agencies; and h) To provide quality housing opportunities compatible with existing and planned development that responds to market demands. ii) The "No Project-No Development" Alternative assumes that no new land uses would be constructed on the Project site and that the site would remain vacant and undeveloped. Although this alternative is environmentally superior to the proposed Project, it would not meet the Project objectives. Specifically, it would not meet the Project's objective to provide quality housing that would be compatible with existing and planned development for the area, would not provide a system of public/community facilities, including trails, open space areas, and would not provide landscaping for Project residents and surrounding area residents. Furthermore, as the subject property is under private ownership, the elimination of future development within an area previously approved for residential development would not be legally or financially feasible. Therefore this alternative is rejected. iii) The "Development Under the Existing Land Use Designation Alternative" assumes that the Project site would be developed under the current City of Rancho Cucamonga General Plan designation (Very Low Residential). Under this designation, and assuming that the area disturbed by grading is equal to that of the proposed Project, the minimum lot sizes would be 20,000 square feet and the number of lots that could be developed would be approximately 90 rather than the 123 as currently proposed. This reduction in development by approximately 33 dwelling units would result in lower traffic, air quality, and noise impacts than the Ordinance No. 727 Page 13 of 41 proposed Project, but would not reduce to less than significance the short-term impacts on air quality from construction-related emissions, cumulative long-term impacts on air quality from Project emissions and cumulative short and long-term noise impacts. In addition, this alternative would not meet the Project objectives to provide quality housing that would be compatible with existing and planned development for the area, would not provide a system of public/community facilities, including trails, open space areas, and would not provide landscaping for Project residents and surrounding area residents. k. Mitigation measures described in the Mitigation Monitoring Program will avoid or substantially lessen the potentially significant environmental effects of the Project. Further, the environmental, physical, social, economic and other benefits of the Project, as set forth in this section and in the "CEQA Findings" for the Project (Exhibit "F" to the June 16, 2004 City Council Staff Report), which is incorporated herein by this reference, outweigh any unavoidable, significant, adverse impacts that may occur as a result of the Project, including short-term impacts on air quality from construction-related emissions and cumulative impacts to air quality and noise. Therefore, due to overriding benefits of the Project and because the alternatives identified in the Final EIR are not feasible, as discussed in paragraph j above, the City Council hereby finds that any unavoidable impacts of the Project, including the mitigated but unavoidable impacts from short-term impacts on air quality from construction-related emissions, and cumulative air quality and noise are acceptable based on the findings contained herein and in the "CEQA Findings" for the Project. This determination shall constitute a statement of overriding considerations within the meaning of CEQA and is based on any one of the following environmental and other benefits of the Project identified in the Final EIR and the record of the City Council's proceedings: i) Provision for the use of land consistent with the established policies and goals of the City of Rancho Cucamonga General Plan, Etiwanda North Specific Plan, City Development Code, and all other City Development guidelines; ii) Annexation of the 90.4-acre Project site and adjacent 10.0-acre utility easement into the City of Rancho Cucamonga; iii) Integration of the Project with the character of the surrounding neighborhoods and establishment of a development that results in logical, coordinated growth; iv) Establishment of a Project-wide circulation system that meets regional and local transportation needs and accommodates both vehicles and pedestrians; Ordinance No. 727 Page 14of41 v) Provision of a system of public/community facilities, including trails, open space areas, and landscaping to support the residents of the Project and surrounding area in an efficient and timely manner; vi) Provision of backbone public infrastructure (i.e., roads, utilities) to serve Project residents and the surrounding community; vii) Minimization of impacts to, and generation of revenues in excess of costs for, various public service agencies; and viii) Provision of quality housing opportunities compatible with existing and planned development that responds to market demands. ix) The addition of housing units in accomplishment of the City's Housing Element Goals and fulfillment of regional housing needs. x) City control over the developing lands on the City's perimeter. xi) Advancement of the regional trail system by the links to be completed by the Project. I. The mitigation measures in the Final EIR that correspond to the environmental impacts which may result from the Project are hereby adopted and made a condition of approval of, or incorporated into, the Project. The City Council also hereby adopts the "Mitigation Monitoring Plan" attached as Exhibit "G" to the June 16, 2004 City Council Staff Report for this Project. The Mitigation Monitoring Plan will be used to monitor compliance with the mitigation measures and conditions that have been adopted or made a condition of Project approval as set fodh in this Section of this Ordinance and in the Mitigation Monitoring Plan. m. Pursuant to provisions of the California Public Resources Code Section 21089(b), the findings contained in this Ordinance shall not be operative, vested or final until all required filing fees assessed pursuant to California Fish and Game Code Section 711.4, together with any required handling charges, are paid to the County Clerk of the County of San Bernardino. SECTION 3: The City Council finds that the Development Agreement does comply with the requirements of California Government Code Sections 65865 through 65869.5 in that the Development Agreement does specify in detail and contains the following: Ordinance No. 727 Page 15of41 a. Provisions are included in Section 3(A) of the Development Agreement requiring periodic review of the Agreement at least every twelve months, at which time the applicant shalJ be required to demonstrate good faith compliance with the terms of the Agreement (California Government Code Section 65865.1). b. The duration of the Development Agreement is specified in Section I(B) of the Agreement as being for ten (10) years (Government Code Section 65865.2). c. The permitted uses of the property, the density and intensity of use, the maximum height and size of the proposed structures, and other required provisions are referred to in Section 2(A) of the Development Agreement (Government Code Section 65865.2). d. The Development Agreement includes conditions, terms, restrictions and requirements for subsequent discretionary actions in Section 2(B) of the Agreement (Government Code Section 65865.2). e. The Development Agreement includes terms and conditions ~n Section 2 that require the developer to improve portions of public streets around the perimeter of the property and provide for and improve streets inside the development (Government Code Section 65865.2). f. The Development Agreement specifies that the Project is to be constructed in coordination with the construction of certain public infrastructure improvements as specified in Section 2 of the Agreement. (Government Code Section 65865.2). SECTION 4: Based upon substantial evidence presented during the above- referenced public hearing on June 2, 2004 and June 16, 2004, including written and oral staff reports, together with public testimony, this Council hereby specifically finds that upon the adoption of General Plan Amendment DRC2003-00749, the Development Agreement will provide for development which is consistent with the Rancho Cucamonga General Plan. The City Council bases its findings of consistency with the General Plan on the fact that the project entitlements specified in the Development Agreement provide for the extension of the Iow density image of Old Etiwanda into the area as provided in General Plan Policy 2.4.4.5, the fact that the proposed uses set forth in this Development Agreement are compatible with the character of existing development in the vicinity, and that the Development Agreement is consistent with the General Plan's intent to keep substantial portions of the Etiwanda North Specific Plan area as open space. Ordinance No. 727 Page 16 of 41 SECTION 5: Based on substantial evidence presented during the above- referenced public hearing on June 2, 2004 and June 16, 2004, including written and oral staff reports, together with public testimony, this Council hereby specifically finds that upon the adoption of Etiwanda North Specific Plan Amendment DRC2003- 00750, the Development Agreement will provide for development which is consistent with the Etiwanda North Specific Plan. The City Council bases its findings of consistency with the Etiwanda North Specific Plan on the facts that the proposed Project will contain relatively large minimum residential lot sizes (minimum size of 14,025 square feet and an average lot size of 18,000 square feet), which are larger lots than in many other portions of the City and consistent with the goals of the Etiwanda North Specific Plan to provide for larger lots and equestrian lots. In addition, development of lots less than 20,000 square feet will require the developer to contribute an in-lieu fee of $1,000 per lot for the development of an off-site Equestrian Center. The Project is also designed to contain a trails system, provide for views of the mountains, and with the imposition of Mitigation Measure LU-2, will comply with the Specific Plan's requirements for landscape treatments and required walls, fencing, lighting and community entry that is consistent with the design scheme specified in the Etiwanda North Specific Plan. SECTION 6: This Council hereby approves Development Agreement DRC2003-00751, attached hereto as Exhibit '~A," subject to the condition that the Development Agreement shall not become effective unless and until General Plan Amendment DRC2003- 00749 and the Etiwanda North Specific Plan Amendment DRC2003-00750 have been reviewed and approved by the City Council and have taken effect. SECTION 7: The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published within 15 days after its passage at least once in the Inland Valley Daily Bulletin, a newspaper of general circulation published in the City of Ontario, California, and circulated in the City of Rancho Cucamonga, California. Upon the effective date of this Ordinance and satisfaction of the provisions contained in Section 6 of this Ordinance, the Mayor shall execute the Development Agreement on behalf of the City and the City Clerk shall cause the Agreement to be recorded in the offices of the County Recorder for the County of San Bernardino. Please see the following page for formal adoption, certification and signatures Ordinance No. 727 Page 17 of 41 PASSED, APPROVED, AND ADOPTED this 7th day of July 2004. AYES: Alexander, Gutierrez, Howdyshell, Kurth, Williams NOES: None ABSENT: None ABSTAINED: None William J. Alexayer, Mayor ( ATTEST: ,/ .; ? Katfiryr~. L. Scc~it, cM~, DepUty Cty C erk I, KATHRYN L. SCOTT, DEPUTY CITY CLERK of the City of Rancho Cucamonga, California, do hereby cedify that the foregoing Ordinance was introduced at a Regular Meeting of the Council of the City of Rancho Cucamonga held on the 16th day of June 2004, and was passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga heJd on the 7th day July of 2004. Executed this 8th day of July 2004, at Rancho Cucamonga, California. K~th),'yn L. ~j~ott, CMC, D~puty City Clerk Ordinance No. 727 Page 18of41 DEVELOPMENT AGREEMENT DRC2003-00751 DEVELOPMENT AGREEMENT BETVVEEN THE CITY OF RANCHO CUCAMONGA AND HENDERSON CREEK PROPERTIES, LLC CONCERNING PROPOSED TENTATIVE TRACT '16324 This Agreement (the "Development Agreement") is made and entered into this day of , 2004, by and between Henderson Creek Properties, LLC, a California limited liability company, and the City of Rancho Cucamonga, a municipal corporation (the "CITY") pursuant to the authority of Section 65864 through 65869.5 of the California Government Code. Henderson Creek Properties, LLC, and its successors and assigns, if any, are referred to collectively hereinafter as the "Property Owner". The CITY and Henderson Creek Properties, L£C are collectively referred to herein as the "Parties". RECITALS: A. To provide more certainty in the approval of development projeCts, to encourage private participation in comprehensive planning, and to reduce the economic risk of development, the Legislature of the State of California has adopted Sections 65864, et seq. of the California Govemment Code, thus authorizing the CITY to enter into binding development agreements with persons having legal or equitable interests in real property, in order to establish development rights with respect thereto. B. Section 65865(b) of the California Government Code authorizes the CITY to enter into a binding development agreement with respect to real property which is in unincorporated territory but also within the CITY's sphere of influence, provided that the effectiveness of the development agreement is conditioned upon the annexation of such real property to the CITY within the period of time for annexation as specified in the Development Agreement. C. Property Owner owns fee title to approximately 90.4 acres of real property located entirely within the County of San Bemardino (the "County') and more particularly described in Exhibit A and depicted on Exhibit B attached hereto (the "Project Site"). D. On July 28, 2003, the City received an application for a Tentative Tract Map (SUBTI-16324), a General Plan Amendment (DRC2003-00749), an Etiwanda North Specific Plan Amendment (DRC2003-00750), along with this Development Agreement (DRC2003- 00751 ) and a request for Annexation of the proposed Project. An Environmental Impact Report has been prepared to address the potential environment impacts of the proposed project and all discretionary actions anticipated by the CITY and the Local Agency Formation Commission. E. As set forth in Ordinance No. __ adopted by the City Council on __ (the "Enacting Ordinance"), the execution of this Development Agreement and performance of and compliance with the terms and conditions set forth herein by the Parties hereto: (i) is in the best interest of the CITY; (ii) will promote the public convenience, general welfare, and good land use practices in the CITY; (iii) will promote preservation of land values; (iv) will encourage the development of the Project by providing a level of certainty to the Property Owner; and (v) will provide for ordedy growth and development of the CITY consistent with the CITY's General Plan. Exhibit "A" Development Agreement I Henderson Creek Properties, LLC Ordinance No. 727 Page 19 of 41 AGREEMENT: NOW, THEREFORE, in consideration of the above recitals, and the mutual promises and covenants of the Parties, and for other good and valuable consideration, the receipt and sufficiency of which us hereby acknowledged, the Parties agree as follows: Section 1. GENERAL PROVISIONS A. Effectiveness of Development A.qreement Notwithstanding the effective date of the Enacting Ordinance, this Development Agreement shall only become operative and the rights and obligations of the Parties shall only arise upon the annexation of the Project Site to the City, provided the annexation is final as to any and all administrative actions and is not then subject to judicial challenge, and further provided that such annexation shall occur on or before February 28, 2005. B. Term The term of this Development A~oreemw~ni ~h~ll commence on the Effective Date and · shall extend for a period of 10 years thereafter, unless this Development Agreement is terminated, modified or extended by cimumstances set forth in this Development Agreement, including, without limitation, the extensions provided below and any extensions attributable to "rome majeure" circumstances described in Section 2.D.4 hereof or by mutual written consent of the Parties. Following the expiration of the Term, this Development Agreement shall be deemed terminated and of no further force and effect; provided, however, that such termination shall not affect any dght or duty arising from the project entitlements granted prior to, concurrently with, or subsequent to the approval of this Development Agreement and the structures that are developed in accordance with this Development Agreement and the use of those structures shall continue to be governed by this Development Agreement for purposes of ensuring, for land use purposes, that those structures continue to be legal conforming structures and that those uses continue to be legal conforming uses. C. Assiqnment Subject to the terms of this Development Agreement, Property Owner shall have the dght to convey, assign, sell, lease, sublease, encumber, hypothecate or otherwise transfer (for purposes of this Development Agreement, "Transfer") the Project Site, in whole or in part, to any person, partnership, joint venture, firm or corporation or other entity at any time dudng the term of this Development Agreement, and to the extent of each such Transfer, the transferor shall be relieved of its legal duty to per[orm such obligations under this Development Agreement at the time of the Transfer, except to the extent Property Owner is in default, as defined in Section 3.C hereof, of any of the terms of this D~velopment Agreement when the Transfer occurs. If all or a portion of the Project Site is Transferred and there is noncompliance by the transferee owner with respect to any term and condition of this Development Agreement, or by the transferor with respect to any portion of the Project Site not sold or Transferred, such noncompliance shall be deemed a breach of this Agreement by that transferee or transferor, as applicable, but shall not be deemed to be a breach hereunder against other persons then owning or holding any interest in any podion of the Project Site and not themselves in breach Development Agreement 2 Henderson Creek Properties, LLC Ordinance No. 727 Page 20of41 under this Development Agreement. Any alleged breach shall be governed by the provisions of Section 3.C hereof. In no event shall the reservation or dedication of a portion of the Project Site to a public agency cause a transfer of duties and obligations unless specifically stated to be the case in this Development Agreement, any of the exhibits attached to this Development Agreement, the instrument of conveyance used for such reservation or dedication, or other form of agreement with such public agency. Property owner shall notify the CITY not less than 30 days before any such transfer, and such notice shall contain all material information regarding the contemplated Transfer, including but not limited to the identity of the transferee, and the material terms of such contemplated Transfer including an Assignment and Assumption of Development Agreement as to the Transfer property ("Assumption") to be executed by Transferee and delivered to City upon Transfer. Upon City notification as described above, delivered by Property owner, subject to delivery at closing of the Assumptions, without any additional governmental review or action. D. Amendment of A.qreement This ~evelopment Agreement may be amended from time to time by mutual consent of the Parties in accordance with the provisions of Government Code Sections 65867 and 65868. Notwithstanding anything stated to the contrary in this Development Agreement, the parties may enter into one or more implementing agreements, as set forth below, to clarify i. hu iiffended application or interpretation of this Development Agreement, without amending this Development Agreement. Property Owner and the CITY acknowledge that the provisions of this Development Agreement require a close degree of cooperation between Property Owner and the CITY and that, in the course of the development of the Project Site, it may be necessary to supplement this Development Agreement to address the details of the Parties' respective performance and obligations, and to otherwise effectuate the purposes of this Development Agreement and the intent of the Parties. If and when, from time to time, the Parties find that it is necessary or appropriate to clarify the application or interpretation of this Development Agreement, the Parties may do so through one or more implementing agreements (the "Implementing Agreement"), which shall be executed by the City Planner and by an authorized representative of Property Owner. After execution, each Implementing Agreement shall be attached es an addendum and become a pad of this Development Agreement, and may be further changed or supplemented from time to time as necessary. Such Implementing Agreement shall not require the approval of the City Council of the CITY and shall only be executed by the City Planner (on Behalf of the CITY), if the City Planner has determined that such implementing agreements are not materially inconsistent with this Development Agreement, and applicable ordinances, rules, regulations and official policies of the CITY in effect at the time of execution of this Development Agreement. Any changes to this Development Agreement which would impose additional obligations on the CITY beyond those which would be deemed to arise under a reasonable interpretation of this Development Agreement, or which would purport to change land use designations applicable to the Project Site under the applicable Project Entitlements, shall be considered "material" and shall require amendment of this Agreement in accordance with the provisions of California Government Code Sections 65867 and 65868. Development Agreement 3 Henderson Creek Properties. LLC Ordinance No. 727 Page 21 of 41 Section 2. PLANNED DEVELOPMENT OF THE PROJECT A, Land Use and Proiect Entitlements The Project Entitlements are depicted on the Tentative Tract Map, Conceptual Grading Plan, and Conceptual Landscape Plan, attached hereto as Exhibits C - E. Project Entitlements refers to the following material related to the approval of the Development Agreement (DRC2003-00751) and the Tentative Tract Map (SUBTT16324): all plans that constitute the approved project, all Planning Commission and City Council Resolutions of Approval including the associated conditions of approval, and all mitigation measures included in the Mitigation Monitoring and Reporting Plan and the Environmental Impact Report. The Parties acknowledge that, without being obligated to do so, Property Owner plans to develop the Project Site in substantial conformity with the Project Entitlements as approved by this Development Agreement. DUring the Term of this agreement, the permitted uses for the Project, or any portion thereof, the density and intensity of use, zoning, maximum height and size of proposed buildings, building and yard setback requirements, provisions for the reservation or dedication of land, design and performance standards and other terms and conditions of development of the Project constitute the Entitlements as approved by this Development Agreement. The specific terms of this Development Agreement shall supersede and be controlling over any conflict and/or inconsistency with the Project Entitlements. The parties acknowledge and agree that the total number of lots in the approved tract(s) total 123 lots. The City agrees that partial final maps may be recorded for portions of the Project Site in accordance with Government Code Section 66456.1. Other certain specific rnodifications of the Project Entitlements to which the Parties agree are set forth below. All exhibits attached hereto constitute matedal provisions of the Development Agreement, and are incorporated herein. B. ~lations Pursuant to California Government Code Section 65856 and except as otherwise explicitly provided in this Development Agreement, the ordinance, rules and regulations and official policies governing permitted uses of the Project Site, the density and intensity of such uses, and design, improvement, and construction standards and specifications applicable to development of the Project, sh~!! ~.~ tho Pr.,:.i~cf Ent. it!~..m, ents and those ordinances of the CITY, as implemented by this Development Agree~nent, rules, regulations and official polities, but only to the extent that they are consistent with the Project Entitlements, as modified and/or amended by this Development Agreement (the "Existing Laws"), except that the CITY's street improvement, lighting, storm drain, and the Americans with Disabilities Act ("ADA") standards shall be followed, and the landscape standards applicable shall be those specified in this Development Agreement, and/or the CITY's standards. IN the event of any conflict between the CITY's ordinances, rules, regulations and official policies and the Existing Laws, then the Existing Laws shall control. The CITY shall not be prevented in subsequent actions applicable to the Project, from applying new ordinances, rules regulations, and policies in effect ("Future Policies") to the extent that they do not conflict with the Existing Laws. Such conflict shall be deemed to occur if, without limitation, such Future Policies: 1. Modify the permitted types of land uses, the density or intensity of use, the maximum height or size of proposed buildings on the property, building and yard setback requirements, or impose requirements for the construction or provisions of on-site or offsite improvements or the reservation or dedication of land for public use, or the payment of fees or Development Agreement 4 Henderson Creek Properties, LLC Ordinance No. 727 Page 22of41 the imposition of extractions, other than as am in each case specifically provided for in this Development Agreement; 2. prevent the Property Owner from obtaining all necessary approvals, permits, certificates or other entitlements at such dates and under such circumstances as the Property Owner would otherwise be entitled under this Development Agreement; 3. render any conforming use of the Project Site a non-conforming use or any structure on the Project Site a non-conforming structure. C. Desi.qn and Infrastructure Issues 1. Street Sections (i) The CITY desires that Wardman-Bullock Road be designed in accordance with CITY Collector Street standards, as depicted in the Etiwanda North Specific Plan Exhibit 13(E). (ii) The CITY desires that Colonbero Road be designed in accordance with CITY Local Street standards, as depicted in the Etiwanda North Specific Plan Exhibit 13(F). 2. Dry Utilities The Project Entitlements do not require that Burd vaults be installed and the CITY and Property Owner agree that no Burd vaults will be required throughout the Project Site. 3. Gradinq The Grading Plan, included in the Project Entitlements, shall conform to the Design Guidelines of the Etiwanda North Specific Plan. However, with an average slope across the site of less than 7%, the Project is exempt from the CITY Hillside Development Regulations of the Development Code. 4. Circulation Issues and Fees a. Transportation Fee/Traffic Impact Analysis The Property Owner shall construct circulation improvements as depicted on Exhibit F. In addition, the Property Owner shall comply with Transportation Development Fees in accordance with CITY ordinance. The Property Owner shall receive credit against, or reimbursement of costs, in excess of the Transportation Development Fee for the "backbone" improvements as described herein, inc conformance with CITY policy. b. Other Circulation Improvements The Property Owner shall design and construct the following improvements: (i). Wardman-Bullock Road along the project frontage at its ultimate half section width (66 foot right-of-way). Development Agreement 5 Henderson Creek Properties, LLC Ordinance No. 727 Page 23 of 41 (ii) The west side of Wardman-Bullock Road from Wilson Avenue to the south project boundary. Improvements shall include curb and gutter, A.C. pavement and 5800 Lumens HPSV street lights. ADDRESSED BELOW in SECTION 2.1.2. d. Reimbursement Aqreement The City agrees that the construction of the Wardman-Bullock Road improvements will benefit other prope~' owners and developers in the vicinity of the Project Site. The City agrees to use its best eflo~ls to condition benefited projects or otherwise seek to obtain fair share contributions from surrounding property owners and developers for the construction of Wardman-Bullock Road and agrees to reimburse the Property Owner to the extent fair share contdbufions are collected from other properly owners for the cost of construction of Wardman-Bullock Road in accordance with the provisions of Section 2.1, below. The obligations hereunder shall survive the termination of this Agreement and shall continue until such time as the Properly Owner has received payment in full for the cost of the construction of Wardman-Bullock Road; provided, however, that the City's obligation shall be limited to the extent the City can collect such funds. 5. Storm Drains (i) Improvements to the Henderson Creek Levee are being completed under the direction of the San Bernardino County Flood Control District. These improvements must be completed prior to occupancy of homes in the affected area. (ii) The site is located within Area 13 of the Etiwanda/San Sevaine Drainage Plan; applicable fees and construction requirements shall apply. 6. Park Fee/Equestrian Fee/Beautification Fee The Property Owner shall pay the following fees: a. Property Owner will pay CITY a sum totaling $95,000.000 (based upon $1,000 per unit for the ninety-five lots which do not conform to equestrian standards) for equestrian purposes. The sum will be paid from CFD formation and funding, prior to recording of the first final map and shall be reserved by the City for the construction and subsequent capital maintenance costs associated with the development of an equestrian enclosed arena complex in the Etiwanda North area. b. The Property shall pay the CITY a sum totaling $ 811,800 for park purposes (based upon a value of $ 6,600 per dwelling unit). The sum shall be paid from CFD formation and funding, prior to recording of the first final map. c. In exchange for the construction of the landscaping improvements on the east side of Wardman-Bullock Road, adjacent to the Henderson Creek Channel improvements, the property Owners shall not be required to pay CITY Beautification Fee of $0.20 per square foot for residential construction. Development Agreement 6 Henderson Creek Properties, LLC Ordinance No. 727 Page 24 of 41 7. Development Standards a. The project shall be developed in accordance with the CITY's Low- Density Residential District of the Etiwanda North Specific Plan. b. The project entitlements include 123 housing units. 8. Desi.qn Review Process The Project, and all subsequent applications for residential development, shall be subject to the CITY Development/Design Review process. 9. Architectural Guidelines The Project, and all subsequent applications for residential development, shall be subject to the Architectural Guidelines of the Etiwanda North Specific Plan. 10. Open Space Transfer Plan The Property Owner shall transfer to the County of San Bemardino Special Districts OS-1 or other qualified conservation entity approved by the City, in fee, a minimum of 54-acres of off-site land for permanent open space and habitat preservation; along with funding in an amount to be mutually agreed upon by the Property Owner and the conservation entity, to provide for long-term maintenance of said land. The preferred location of the off-site land is in the environment surrounding the North Etiwanda Preserve in the CITY Sphere of Influence, other properties may be considered based the review of appropriate Biological Habitat Assessments and concurrence of the CITY Planner. The transfer and funding shall occur prior to recording of the first final map of the Project. D. Timinq of Development and Fees 1. Development of the Perimeter Landscapinq and the Etiwanda North Specific Plan Neiqhborhood Monumentation All required perimeter landscaping shall be completed pdor to the release of occupancy of the 75th dwelling within the project. 2. Development of the Remainder of the Site Neither the property owner nor CITY can presently predict when or the rate at which phases of the project shall be developed, since such decisions depend on numerous factors which are not within the control of the Property Owner including, without limitation, market orientation and demand, interest rates, absorption, competition and other factors. The parties acknowledge and agree that Property Owner retains flexibility under this Development Agreement to develop the Project in such order and at such rate and times as are appropriate within the exercise of the Property Owner's business judgment. The CITY fudher acknowledges that Property Owner may desire to market, sell, or otherwise arrange for disposition of some or all of the Project Site, prior to development, and that the rate at which the Project develops will tikely depend upon the business judgment of subsequent owners of the Project Site. Development Agreement 7 Henderson Creek Properties, LLC Ordinance No. 727 Page 25 of 41 3. CITY's Cooperation CITY shall use good faith, diligent efforts to promptly process and take final action on any applications for permits or approvals filed by Property Owner with respect to the Project. Such cooperation shall include, without limitation, (a) using good faith, diligent efforts to process subsequent Development/Design Review in accordance with state regulations; and (b) promptly processing all ministerial permits in accordance with Section 2.H. below. Without limiting the effect of any other provision of this Development Agreement, any future regulation, whether adopted by initiative or otherwise, limiting the rate or timing of development of the Project Site or the extent thereof, shall be deemed to conflict with Property Owner's vested rights to develop the Project under this D~velopment Agreement and shall, to that extent, not apply to the development of the Project. Processing and review of development proposals shall be subject to established procedures in effect in the entire CITY, including Development and Design Review, as specified in the Existing Laws. However, the criteda used in the evaluation of each development proposal shall be based on the objectives, policies and specific development standards specified herein. 4. Force Maieure Notwithstanding anything To tne co~;,~ary contained in the Development Agreement, Property Owner and CITY shall be excused from performance of their obligations under this Development Agreement during any period of delay caused by acts of God or civil commotion, riots, strikes, picketing, or other labor disputes, shortage of materials or supplies, or damage to or prevention of work by reason of fire, floods, earthquake, or other casualties, litigation, acts or neglect of the Property Owner, as applicable. The time of performance of such obligations as well as the term of this Development agreement shall automatically be extended by the pedod of such delay hereunder. E. Future Entitlements With respect to any entitlements that Property Owner may require in the future, including, without limitation, tentative tract and parcel map approvals, conditional use permits, and Development/Design Review, the CITY shall retain its discretionary review authority and the CITY's applicable ordinances, rules, regulations and official policies. However, any such discretionary review shall be expressly subject to the provisions of this Development Agreement and the CITY may only impose conditions upon such discretionary entitlements which are consistent with the Project Entitlements as approved by this Development Agreement, except as otherwise specifically required by state or federal law. F. Environmental Review Other than the mitigation measures and conditions of approval set forth in the EIR and the Project Entitlements (and any additional future mitigation programs contemplated therein), no other mitigation measures for environmental impacts created by the Project, as presently approved and as evaluated in the EIR, shall be required. In connection with the CITY's issuance of any further entitlement (as contemplated in Section 2.E above), which is subject to CEQA, the CITY shall promptly commence and diligently process any and all initial studies and assessments required by CEQA, and to the extent permitted by CEQA, the CITY shall use the EIR and other existing environmental reports and studies as adequately addressing the environmental impacts of such matter or matters, without requiring new or supplemental Development Agreement 8 Henderson Creek Properties, LLC Ordinance No. 727 Page 26 of 41 environmental documentation. In the event CEQA requires any additional environmental review, the CITY may impose additional feasible measures (or conditions) to mitigate, as required by CEQA, the adverse environmental impacts of such future entitlements, which were not considered, and could not have been considered, at the time of approval of the Project. G. CITY Fees and Mandates by State and Federal Laws The Parties acknowledge and agree that the fees and impositions which may potentially be imposed by the CITY on the Project and Property Owner (collectively "fees") fall within on of three categories: (a) fees for processing land use and construction permit applications which are not otherwise governed by the provisions of Section 66000 of the Government Code (but which are subject to the limitations set forth in Sections 66013, 66014, and 66016-66018.5 of the Govemment Code) (collectively, the "Processing Fees"); (b) fees or other monetary exactions which are contemplated under ordinances or resolutions in effect as of the date of this Development Agreement and which purport to defray all or a portion of the cost of impacts to certain public facilities, improvements and other amenities from the development projects, including any fees described in Government Code Sections 66000 et seq. (collectively, the "Existing Fee Categories") (the Existing Fee Categories include any increases, decreases, or other modifications to existing fees, so long as such modified fees relate to the same category of impacts identified in the Existing Fee Categories); and (c) fees or other monetary exactions which may be imposed in the future by the CITY for purposes of defraying all or a portion of the cost of public facilities, improvements, or amenities related to development projects, but excluding the ExJsting Fee Categories ("Other Fees"). The Property Owner's obligation to pay Fees shall be specifically governed by the following provisions: 1. Processinq Fees. The CITY may charge Planning and Engineering Plan Check and Permit Fees and Building Permit Fees which are in rome and effect on a CITy-wide basis at the time of Property Owner's application for a land use entitlement or a construction permit. The amount of any Processing Fees shall be determined by the CITY in accordance with all applicable laws, including, without limitation, Government Code Sections 66013, 66014, and 66017-66018.5 (or any successor laws, as applicable). Unless otherwise agreed by Property Owner and the CITY, the Processing Fees assessed Property Owner shall be the same as those imposed upon other development projects throughout the jurisdictional limits of the CITY. 2. Existing Fees. In consideration of the development of the Project Site as set fodh in this Development Agreement, and the positive fiscal impact of the Project on the City, the City agrees that neither the Property Owner, nor the Project shall be subject to any increase in the Existing Fees or to any additional City imposed fees, impositions or monetary exactions with respect to the Existing Fee categories for a period of five (5) years following the effective date of this Development Agreement. 3. Other Fees. In consideration of the Property Owner's Agreement to modify the Project Entitlements as specifically set forth in this Development Agreement and implement the timing of development in accordance with the terms set forth above, no Other Fees shall be imposed upon the Property Owner or the Project during the applicable Fee Limitation Period, except as may be specifically required to carry out any state or federal law or mandate enacted after the effective date of this Development Agreement, as necessary to mitigate environmental impacts of the project in accordance with 2.G above. Development Agreement 9 Henderson Creek Properties, LLC Ordinance No. 727 Page 27 of 41 4. Fiscal Impact Analysis. CITY does not require Property Owners or the Project to complete a fiscal impact analysis for application or issuance of any approvals or permits that CITY might issue under this Development Agreement. H. Non-discretionary Permits The Parties acknowledge that in the course of implementing the Project, Property Owner will, from time to time, apply to the CITY for various ministerial permits, licenses, consents, certificates, and approvals, including, without limitation, non-discretionary subdivision approvals, grading permits, construction permits, certificates of occupancy and permits required to connect the Project to utility systems under thc CiTY's j~risdic~ion (collectively the "Non-Discretionary Permits"). Property Owner shall have the right to apply for any such Non-Discretionary Permits in accordance with the Existing Laws (and any applicable Future Policies under Section 2.B, above). The CITY shall issue to Property Owner, upon such applications, all required Non- Discretionary Permits, subject only to compliance with the terms of this Development Agreement, the CITY's usual and customary fees and charges for such applications and Non- Discretionary Permits (subject to the provisions of Section 2.G above) and the terms and conditions of the applicable permit application. The CITY further agrees that upon its approval of any plans, specifications, design drawings, maps, or other submittals of Property Owner in conjunction with such Non-Discretionary Permits (the "Approved Plans"), all further entitlements, approvals and consents required from the CITY to implement the Project which are consistent with and further implement such Approved Plans, shall be processed and approved by the CITY in accordance with this Development Agreement. I. Cooperation 1. Cooperation with Other Public Aqencies. The CITY acknowledges that the Property Owner may apply from time to time for permits and approvals as may be required by other governmental or quasi-governmental agencies having jurisdiction over the Project, in conjunction with the development of or provision of services to the Project, including, without limitation, approvals in connection with the developing and implementing a tertiary water system, potential transportation improvements and other on-site and off-site infrastructure. The CITY shall cooperate with Property Owner in its efforts to obtain such permits and approvals from such agencies (including without limitation, the Cucamonga Valley Water District, and the Inland Empire Utilities Agency), and shall provide any documents or certificates reasonably required to process and obtain such permits and approvals. 2. Construction of Off-Site Improvements. To the extent that Property Owner is required to construct any off-site improvements as a condition of developing the Project, the Property Owner shall make good faith efforts to acquire any off-site property interests required to construct such public improvements. If Property Owner fails to do so, Property Owner shall, at least 120 days prior to submittal of the first final subdivision map for approval, enter into an agreement to complete the improvements under Government Code Section 66462 and 66462.5 at such time as the CITY decides to acquire the property interests required for the public improvements. Such agreement shall provide for payment by Property Owner of all costs incurred by the City to acquire the off-site property interests required in connection with the subdivision. Security for a portion of those costs shall be in the form of a cash deposit in the amount stated in an appraisal report obtained at Property Owner's cost. The appraiser shall have been approved by the CITY prior to commencement of the appraisal. To the extent that such off-site improvements, or the construction of any substantial infrastructure on-site, substantially benefit other property owners or other portions of the jurisdiction or limits of the Development Agreement 10 Henderson Creek Properties, LLC Ordinance No. 727 Page 28 of 41 CITY, the CITY agrees to assist Property Owner to the fullest extent possible in obtaining reimbursement or other fair share contribution by such other benefited property owners. Such assistance may include, without limitation, conditioning the approval of development projects proposed by such benefited property owners upon such owners' contribution, on a fair share, pro-rata basis, to the construction cost of such improvements. Without limiting the generality of the foregoing, the CITY agrees with respect to the infrastructure improvements which are adjacent to and benefit other properties (whether such properties are undeveloped or developed), any further discretionary approvals sought by such property owners shall be conditioned to require fair share reimbursement to Property Owner or City, as the case may be, for construction and related costs incurred in providing such improvements to the extent legally permissible. 3. Public Financinq. The Parties hereby acknowledge that substantial public ~mprovements must be funded in order to contribute to the Park Fee and Equestrian and School Fees and the remainder of the Project Site and that public financing of a substantial portion of these improvements will be critical to the economic viability of the Project. Subject to CITY's ability to make all findings required by applicable law and complying with all applicable legal procedures and requirements, the CITY agrees to cooperate with and assist Properly Owner to the fullest extent possible in developing and implementing a public financing plan for the construction of the public infrastructure improvements. The implementation of such plan may include, without limitation, the formation of one or more assessment districts, or Mello-Roos community facilities districts, or the issuance of bonds, certificates of participation, or other debt securities necessary to implement such plan. J. Creation of the Landscape and Street Li.qhtin.q Maintenance District The CITY agrees to promptly annex the Project Site to an existing Landscaping and Lighting Maintenance Distdct (LMD) or form the necessary LMD pursuant to California Streets and Highways Code Sections 22500 et seq (the "Landscape and Lighting Act of 1972") for the Project development to encompass the Project Site as well as the area being annexed by the CITY. In addition, the Property shall annex to the existing Street Lighting Districts. The property Owner shall pay for the annexation or formation of the LMDs. The Parties agree that annexation to the LMD or the formation of a new LMDs must be accomplished no later than recordation of the final tract map and that the CITY may create LMDs, which allow annexation of other areas. In addition, if outside agencies, upon their review and approval of various components of the project, impose any non-standard improvements that require extraordinary maintenance responsibilities of the CITY, the CITY may impose the creation of additional maintenance districts upon the proposed development. Upon formation of the LMD, and acceptance of the improvements by the City Council, the CITY (through the LMD) shall assume full responsibility for the maintenance, repair, and replacement of the improvements to be maintained by the LMD pursuant to the LMD's governing documents. The Padies also acknowledge that assessments for the LMDs are collected annually in June, and to the extent that assessments are collected through the LMD for the period ending June 2006, the City may request, and the Property Owner agrees to provide, a reasonable cash deposit to fund the LMD. The CITY shall promptly upon receipt of assessments the following June, reimburse Property Owner for any such cash advances to fund the LMDs. Development Agreement 11 Henderson Creek Properties, LLC Ordinance No. 727 Page 29 of 41 Section 3. ANNUAL REVIEW A. Good Faith Compliance Pursuant to California Government Code Section 65866.1, the CITY shall once every twelve (12) months during the term of this Development Agreement, review the extent of good faith substantial compliance by Property Owner with the terms of this Development Agreement; provided, however, that it is intended that this review shall apply to the Project Site as a whole, as opposed to each individual property owner who may ow.n a parcel comprising the Project Site. in connection with such annual review, Property Owner~all provide such information as may reasonably be requested by the CITY in order to determine whether any provisions of this Agreement have been breached by Property Owner. If at any time prior to the review period there is an issue concerning a Property Owner's compliance with the terms of this Development Agreement, the provisions of this Section 3 shall apply. B. Certificate of Compliance If Property Owner is found to be in compliance with this Development Agreement after annual review, the City Planner shall, upon written request by Property Owner, issue a certificate of compliance ("Certificate of Compliance") to property Owner stating that, based upon information known to the CITY, the Development Agreement remains in effect and Property Owner is not in default. The Certificate of Compliance shall be in recordable form and shall contain such information as shall impart constructive record of notice of compliance. Property Owner may record the Certificate of Compliance in the Official Records of the County of San Bemardino. C. Findin,q of Default If, upon completion of the annual review, the City Planner intends to find that Property Owner has not complied in good faith with the material terms of this Agreement (a "Default"), he shall first give written notice of such effect to the Property Owner. The notice shall be accompanied by copies of all staff reports, staff recommendations and other information concerning Property Owner's compliance with the terms of this Development Agreement as the CITY may possess and which is relevant to determining Property Owner's performance under this Development Agreement. The notice shall specify in detail the grounds and all facts allegedly demonstrating such noncompliance, so Property Owner may address the issues raised on a point-by-point basis. Property Owner shall have twenty (20) days after its receipt of such notice to file a written response with the City Planner. Within 10 days after the expiration of such 20-day response pedod, the City Planner shall notify Property Owner whether he has determined that Property Owner is in Default under this Development Agreement ("Notice of Default"). Such Notice of Default shall specify the instances in which the Property Owner has allegedly failed to comply with this Development Agreement and the terms under which compliance can be obtained. The Notice of Default shall also specify a reasonable time for Property Owner to meet the terms of compliance, which time shall not be less than thirty (30) days from the date of the Notice of Default, and which shall be reasonably related to the time necessary to bring Property Owner's performance into good faith compliance. D. Upon receipt of the Notice of Default, the Property Owner may appeal the City Planner's decision directly to the City Council. Such appeal shall be initiated by filing a written notice of Development Agreement 12 Henderson Creek Properties, LLC Ordinance No. 727 Page 30 of 41 appeal with the City Clerk within the (10) calendar days following the Property Owner's receipt of the Notice of Default. The hearing on such appeal shall be scheduled in accordance with Section 17.02.080 of the CITY Development Code. At the hearing, Property Owner shall be entitled to submit evidence and to address all the issues raised by the Notice of Default. If, after considering all the evidence presented at the hearing, the City Council finds and determines on the basis of substantial evidence the Property Owner is in Default, then the City Council shall specify in writing to Property Owner the instances in which the Property Owner has failed to comply and the terms under which compliance can be obtained, and shall also specify a reasonable time for Property Owner to meet the terms of compliance, which time shall not be less than thirty (30) days from the date of such writing from the City Council and which shall be reasonably related to the time necessary to bring Property Owner's performance into good faith compliance. E. Property Owner's Cure Ri.qhts If Property Owner is in Default under this Development Agreement, it shall have a reasonable period of time to cure such Default before action is taken by the CITY to terminate this Development Agreement or to othenNise amend or limit Property Owner's rights under this Development Agreement or to otherwise amend or limit Property Owner's rights under this Development Agreement. In no event shall such cure period be less than the time set forth in the finding of Default made under Sections 3.C or 3.D above (as applicable) or less than the time reasonably necessary to cure such Default. Any such cure pedod shall be extended by force majeure circumstances described in Section 2.D.5 above. Section 4. ENFORCEMENT A. Enforcement by Either Party Subject to all requirements mandated by applicable state or federal or other law, this Development Agreement shall be enforceable by any of the parties. B. Cumulative Remedies In addition to any other rights or remedies, any of the Parties may institute legal action to cure, correct or remedy any Default (to the extent otherwise permitted herein and in Government Code Section 65864 et seq. or any successor laws and regulations), to enforce any covenant or agreement herein in this Development Agreement or to enjoin any threatened or attempted violation, including suits for declaratory relief, specific performance, and relief in the nature of mandamus. All of the remedies described above shall be cumulative and not exclusive of one another, and the exercise of any one or more of the remedies shall not constitute a waiver or election with respect to any other available remedy. The provisions of this Section 4.B are not intended to modify other provisions of the Development Agreement and are not intended to provide additional remedies not otherwise permitted by law. C. Attorney's Fees In any legal proceedings brought by either party to enforce any covenant or any of the Parties' rights or remedies under this Development Agreement including, without limitation, any action for declaratory or equitable relief, the prevailing party shall be entitled to recover reasonable attorneys' fees and all reasonable costs, expenses and disbursements in connection with such action. Any such attorneys' fees and other expenses incurred by either of the Parties Development Agreement 13 Henderson Creek Properties, LLC Ordinance No. 727 Page 31 of 41 in enforcing a judgment in its favor under this Development Agreement, shall be recoverable separately from and in addition to any other amount included in this judgment, and such attorneys' fees obligation is intended to be severable from the other provisions of this Development Agreement and to survive and not be merged into any such judgment. Section 5. MISCELLANEOUS PROVISIONS A. Successors and Assi.qns Subject to the provisions of Section 1.C above, the terms of this Development Agreement shall be binding upon and inure to the benefit of the Parties, and their successors and assigns. Insofar as this Development Agreement refers to Properly Owner, as defined herein, if the rights under this Development Agreement are assigned, the term "Property Owner" shall refer to any such successor or assign. B. Project as a Private Undertakin.q It is specifically understood and agreed by and between the Parties that the Project is a private development, that neither party' is acting ~s me agent of the other in any respect under' this Development Agreement, and that each of the Parties is an independent contracting entity with respect to the terms, covenants and conditions contained in this Development Agreement. No partnership, joint venture or other association of any kind is formed by this Development Agreement. The only relationship between the CITY and Property Owner is that of a government entity regulating the development of private property and the owner of such private property. C. Caption.s. The captions of this Development Agreement are for convenience and reference only and shall in no way define, explain, modify, construe, limit, amplify or aid in the interpretation, construction or meaning of any of the provisions of this Development Agreement. D. Mort,qaqe Protection 1. Discretion to Encumber. This Development Agreement shall not prevent or limit Property Owner, in any manner, at Property Owner's sole discretion, from encumbering the Project or any portion of the Project or any improvements on the Project, by any mortgage, deed of trust or other secudty device securing financing with respect to all or any part of the Project or any improvements thereon (a "Mortgage"). 2. Effect of Default. This Development Agreement shall be supedor and senior to any mortgage subsequently placed upon the property, or any portion thereof, or any improvement thereon, including the lien of any mortgage or deed of trust. Despite the foregoing, breach of any provision of this Development Agreement shall not defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith for value. 3. Mort.qaqee Not Obliqated. Notwithstanding anything in this Development Agreement to the contrary, (a) any holder of the beneficial interest under a Mortgage ("Mortgagee") may acquire to or possession of all or any portion of the Project or any improvement thereon pursuant to the remedies provided by its Mortgage, whether by judicial or non-judicial foreclosure, deed in lieu of foreclosure, or otherwise, and such Mortgagee shall not Development Agreement 14 Henderson Creek Properties, LLC Ordinance No. 727 Page 32 of 41 have any obligation under this Development Agreement to construct, fund or otherwise perform any affirmative obligation or affirmative covenant of Property Owner hereunder or to guarantee such performance, and Mortgagee may, after acquiring title to all or any portion of the Project as aforesaid, assign or otherwise transfer the Project or any such portion thereof to any person or entity, and upon the giving of notice of such assignment or transfer to the CITY and the assumption by the assignee or transferee of the obligations of the Property Owner with respect to the Property Owner or portion thereof so acquired which arise or accrue from and after the date of assignment or transfer, Mortgagee shall be relieved and discharged of and from any and all further obligations or liabilities under this Development Agreement with respect to the Project or portion thereof so assigned or transferred; and (b) the consent of CITY shall not be required for the acquisition of all or any portion of the Project by any purchaser at a foreclosure sale conducted pursuant to the terms of any Mortgage, and such purchaser shall, by virtue of acquiring title to the Project or such portion thereof, be deemed to have assumed all obligations of Property Owner with respect to the Project or portion thereof so acquired which arise or accrue subsequent to the purchase date, but such purchaser shall not be responsible for any prior defaults of Property Owner; provided, however, that in either of the instances referred to in clauses (a) or (b) above, to the extent any obligation or covenant to be performed by Property Owner is a condition to granting of a specific benefit or to the performance of a specific covenant by CITY, the performance thereof shall continue to be a condition precedent to the CITY's granting of such benefit and performance of such covenant hereunder. 4. Notice of Default to Mortqa.qee: Ri.qht of Mort.qaqee to Cure. If a Mortgagee files with the CITY Clerk, a written notice requesting a copy of any Notice of Default given Property Owner under this Development Agreement and specifying the address for delivery thereof, the CITY shall deliver to such Mortgagee, concurrently with delivery thereof to Property Owner, any notice given to Property Owner with respect to any claim of the CITY that Property Owner has not complied with the terms of this Development Agreement or is otherwise in Default under this Development Agreement. Each such Mortgagee shall have the right (but not the obligation) for a pedod of thirty (30) days after the expiration of any cure pedod given to Property Owner with respect to such Default, to cure such default; provided, however, that if any such Default cannot, with diligence, be remedied or cured within such thirty (30) day period, then such Mortgagee shall have such additional time as may be necessary to remedy or cure such Default, if such Mortgagee commences to remedy or cure within such thirty (30) day period, and thereafter diligently pursues and completes such remedy or cure. Notwithstanding the foregoing, if the Default is of a nature which can only be cured by Mortgagee by obtaining possession, such Mortgagee shall be deemed to have remedied or cured such Default such Mortgagee shall, within such thirty (30) day period, commences efforts to obtain possession and carry the same forward with diligence and continuity through implementation of foreclosure, appointment of a receiver or otherwise, and shall thereafter remedy or cure or commence to remedy or cure the Default within the cure period specified in Section 3.E above. 5. Bankruptcy. Notwithstanding the provisions of Section 5.D.4 above, if a Mortgagee is prohibited from commencing or prosecuting foreclosure or other appropriate proceedings in the nature thereof to obtain possession of the Project Site by any process or injunction issued by any court or by any reason of any action by any court having jurisdiction of any bankruptcy or insolvency proceeding involving Property Owner, Mortgagee shall for the purposes of this Development Agreement be deemed to be proceeding with diligence and continuity to obtain possession of the Property during the period of such prohibition of Mortgagee is proceeding diligently to terminate such prohibition. Development Agreement 15 Henderson Creek Properties, LLC Ordinance No. 727 Page 33 of 41 6. Amendment to Development Aqreement. The CiTY and Property Owner agree not to modify this Development Agreement or to allow this Development Agreement to be modified or amended in any way, or cancel this Development Agreement, without the prior wdtten consent of each Mortgagee, which consent shall not be unreasonably withheld or delayed. Notwithstanding anything stated above to the contrary, the CITY and Property Owner shall cooperate in including in this Development Agreement, by suitable implementing agreement from time to time, any provision which may reasonably be requested by a proposed Mortgagee for the purpose of implementing the mortgagee-protection provisions contained in this Development Agreement and allowing such Modgagee reasonable means to protect or preserve the lien of the Mortgage on the occurrence of a default under the terms of this Development Agreement. The CITY and Property Owner each agree to execute and deliver (acknowledge, if necessary for recording purposes) any implementing agreement necessary to effect such request; provided, however, that any such implementing agreement shall not in any material respect adversely effect any rights of the CITY under this Development Agreement or be materially inconsistent with the substantive provisions of this Development Agreement, the Project Entitlements and the Existing Laws. E. Consen,t. Where the conseni or approval of any of the Parties is required in or necessary under this Development Agreement, unless the context otherwise indicates, such consent or approval shall not be unreasonably withheld. F. This Development Agreement and the documents attached to and referred to in this Development Agreement constitute the entire agreement between Parties with respect to the subject matter of this Development Agreement. G. Further Actions and Entitlements Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated under this Development Agreement in the performance of all obligations under this Development Agreement and the satisfaction of the conditions of this Development Agreement. This Development Agreement including, without limitation, its existence, validity, construction and operation, and the rights of each of the Parties shall be determined in accordance with the laws of the State of California. I. Recording[ The CITY Clerk shall cause a copy of this Development Agreement to be recorded in the office of the Recorder of the County of San Bernardino no later than ten (10) days following the effective date of this Development Agreement. Development Agreement 16 Henderson Creek Properties, LLC Ordinance No. 727 Page 34 of 41 J. Time Time is of the essence in this Development Agreement and of each and every term and condition of this Development Agreement. K. Waiver The failure of any of the Parties at any time to seek redress for any violation of this Development Agreement or any applicable law or regulation or to insist upon the strict performance of any term or condition shall not prevent any subsequent act or omission of the same or similar nature which would have originally constituted a breach of or default under this Development Agreement from having all the force and effect of an odginal breach or default, and such subsequent act or omission may be proceeded against to the fullest extent provided by this Development Agreement. No provision of this Development Agreement shall be deemed to have been waived by a pady unless the waiver is in writing and signed by any of the Parties. L. Partial Invalidity If any term, covenant, condition or provision of this Development Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions of this Development Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. M. Notices All notices between the CITY and Property Owner and any transferee under this Development Agreement, shall be in wdting and shall be given by personal delivery, mail or facsimile. Notice by personal delivery or facsimile shall be deemed effective upon delivery of such notice to the party for which it is intended at the address set forth below (or, in the case of a transferee in a written notice to the CITY). Notice by mail shall be deemed effective upon receipt or rejection of the addressee. The Parties' current address are as follows: To CITY: Mr. Jack Lam, AICP City Manager City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga CA 91730 With Copies to: Mr. James Markman City Attorney Richards, Watson, & Gershon One Civic Center Circle Brea CA 92821 To Property Owner: Henderson Creek Properties, LLC 16337 Shadbush Street Fountain Valley, CA 92708 Development Agreement 17 Henderson Creek Properties, LLC Ordinance No. 727 Page 35 of 41 With Copies to: Manatt, Phelps & Phillips 650 Town Center, Suite 1250 Costa Mesa, CA 92626 Attn: Roger A. Grable Either Party may change its mailing address or the person to whom notices are to be sent at any time by giving written notice of such change to the other Parties in the manner provided above. N. Indemnification Property Owner hereby agrees to indemnify, defend, and hold harmless the CITY and its Council members, representatives, agents c)fficers~ attorneys, and employees (the "Indemnified Parties") from and against any third party claim, ac~on, or proceeding against the Indemnified Parties to attack, set aside, void, or annul the approval of this Development Agreement, the Project Entitlements or both. IN WITNESS WHEREOF, the Parties have duly executed this Development Agreement as of the day and year first above written. CITY OF RANCHO CUCAMONGA PROPERTY OWNER By: By:. Mayor NAME TITLE ATTESTED TO: City Clerk APPROVED AS TO FORM: City Attorney Attorney's for property Owner Development Agreement 18 Henderson Creek Properties, LLC Ordinance No. 727 Page 36 of 41 EXHrRIT "A" LEGAL DESCRIPTION LAFCO NO. THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 21, AND A PORTION OF TH~ WEST HALF OF SECTION 22 TOWNSHIP 1 NORTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARD[NO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID SECTION 22; THENCE NORTH 89°40'08" EAST ALONG TI~ NORTH LINE OF SA~ SECTION 22, A DISTANCE OF 1325.05 FEET TO THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 22; _Tt~NCE SOUTH 00°00'03'' WEST ALONG THE EAST LINE OF SAID NORTHWEST QUARTER OF THIE NORTHWEST QUARTER, A DISTANCE OF 1319,87 FEET TO THE SOUTHEAST CORNER OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTEK; THENCE SOUTH 00°00'03'' WEST ALONG ~ EAST LINE OF THE SOUTHWEST QUARTER OF TI~ NORTHWEST QUARTER OF SAID SECTION 22, A DISTANCE OF 659,93 FEET; THENCE SOUTH 89034'15'' WEST A DISTANCE OF 1325,86 PEET TO TI-HE WEST LINE OF SAID SECTION 22; ' THENCE NORTH 00°01'26' EAST ALONG SAIl) WEST LINE, A DISTANCE OF 660.87 FEET TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 2 THENCE SOUTH 89°15'44" WEST ALONG THE SOUTH LrNE OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER, A DISTANCE OF 1324.87 FEET TO THE SOUTHWEST COKNER OF SA2~ NORTHEAST QUARTER OF THE NORTHEAST QUARTER; THENCE NORTH 00000'53'' EAST ALONG THE WEST LINE OF SAID NORTHEAST QUARTER OF NORTHEAST QUARI k,K, A DISTANCE 1320t82 FEET TO THE NORTHWEST CORNER OF SAID NORTHEAST QUARTER OF TI-IE NORTHEAST QUARTER; THENCE'NORTH 89°14'46" EAST ALONG TH]E NORTH LINE OF SAID SECTION 21, A DISTANCE OF 1325.09 FEET TO THE POINT OF BEGINNING. CONTAINING IN 100.45 ACRES MORE OR LESS ALL AS SHOWN ON EXFIYBIT "B" ATTACFYED HERETO AND BY THIS REFERENCE MADE A PART HEKEOF. THIS LEGAL DESCRIPTION WAS PKEPARED BY ME OR UNDER MY DIRECTION. No. 3821 WILLIAM H. ADDINGTON, P.L.S. 3821 DATE ~ LICENSE EXPIRES 06/30/04 EXHIBIT A P.O.B. [ ROAD [I A.P.N. 0226-081-28 ~ ~ - CU~ON~ RO~ ~. ~ COLONB~O / R.S. ~9/6~. ROAD~~ ~ [ ]-,NO,CA~S RECORD OATA PER ROAD OF S[C~ON 22 0 ~ ~ ~ W~DM~ BU~OCK "] G~HIC S~ 0 -- RO~ ~ ~ o ~=o ~oo ~o~ 0 ' Ordinance No. 727 Page 38 of 41 Ordinance No. 727 Page 39 of 41 TRACT 16524 CIRCULATION IMPROVEMENTS TRACT