ORDINANCE NO. 19- 2186
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
APPROVING A DEVELOPMENT AGREEMENT FOR THE DEVELOPMENT OF A NEW 5-STORY, 185 ROOM HOTEL WITH ASSOCIATED SITE AND
LANDSCAPING IMPROVEMENTS LOCATED AT 10801 AND 10805 NORTH WOLFE ROAD ( APN: 316- 45- 017 AND 316- 05-56)
SECTION I: PROTECT DESCRIPTION
Application No.: DA- 2017- 01
Applicant: Kimco Realty (Michael Strahs)
PropertyOwner: Cupertino Village, LP
Location: 10801 and 10805 North Wolfe Road (APN: 316-45-017 and 316-05-56) SECTION II: FINDINGS FOR DEVELOPMENT AGREEMENT
WHEREAS, the City of Cupertino received an application on December 8, 2017 for a GeneralPlan Amendment, Development Permit, Development Agreement, Architectural andSite-Approval, UsePermit, andTreeRemovalpermitsto allow thedevelopmentof a new 5-story, 185room hotel with associatedsite and landscapingimprovements, and j associated environmental review (" Project"); and,
WHEREAS, Cupertino Village, LP has a legal and equitable interest in certain real propertyconsistingof approximately1.72acreslocatedwithintheCityandgenerally borderd by North Wolfe Road to the east,Pruneridge Avenue to the south, APN# 316-45- 016 (AriosoApartments) tothewest, andAPN #316-05-056 (CupertinoVillageShopping Center) to the north, as more particularly describedin Exhibit A, the Development Agreement (" Property"); and
WHEREAS, GovernmentCodeSections65864through68569.5 providethestatutory authorityfor developmentagreementsbetweenmunicipalitiesandpartieswith afeeor equitable interest in real property; and
WHEREAS, Cupertino Municipal Code § 19.144.010 et seq., establishes additional proceduresforreviewandapprovalofproposeddevelopmentagreementsbytheCityof Cupertino; and
WHEREAS, in December2017, CupertinoVillage, LPrequestedthattheCity consider l entering into a Development Agreement for development of the Project; and WHEREAS, thetermsoftheDevelopmentAgreementincludethefollowingcommunity benefits funded by Cupertino Village, LP:
Ordinance No. 19- 2186
1. Community Amenity Funding, $1, 850, 000
WHEREAS, the Development Agreement will include additional terms regarding transportation demand management program, preferential hiring, shuttle service, meetingrooms, reducedrates, internships, transientoccupancytax, andupscalehotel; and
WHEREAS, theDevelopmentAgreementwill beconsistentwith the City'sGeneralPlan landusemap, proposedusesandsurroundingusesasamendedandtheapplicable zoningdesignation; and
WHEREAS, approvaloftheDevelopmentAgreementwill provideCupertinoVillage,LP with assurancesthat its developmentof the Propertyin connectionwith theProjectcan proceedwithoutdisruptioncausedby a changein Cityplanninganddevelopment policiesandrequirements, whichassurancewilltherebyreducetheactualorperceived riskofplanning,financingandproceedingwithconstructionanduseofthedevelopment andpromotetheachievementoftheprivateandpublicobjectivesofthedevelopment; and
WHEREAS, theprojectisadditionallydescribedandanalyzedin theMay30, 2019 "The Cupertino Village Hotel Project" Final Draft Initial Study (" Draft IS/ MND"); and WHEREAS, on December13, 2018, prior to makingany recommendationregardingthe adoptionoftheDraftIS/MND, theCityofCupertino'sEnvironmentalReviewCommittee heldadulynoticedpublichearingtoreceivepublictestimonywhereit reviewedand consideredtheinformationcontainedin theDraftIS/MND, voted5-0-0to recommend thattheCityCounciltoadopttheDraftIS/MND (EA-2017-06) andmitigationmeasures with their motion; and
WHEREAS,thenecessarynoticesweregivenandthecommentperiodfortheapplication wasprovidedasrequiredbytheProceduralOrdinance, Chapter19.12oftheCityof Cupertino'sMunicipal Code, and the PlanningCommissionhasheld at leastonepublic hearingin regardto this application; and
WHEREAS, on June 11, 2019, the Planning Commission, after considering the administrativerecordandthepublichearing, exerciseditsindependentjudgmentand recommendedadoptionof theFinalDraft IS/MND (EA-2017-06) for theProjecton a4-0- 1 vote, which incorporated all the identified mitigation measuresas conditions of approvalfortheProjectpriortotakingfinalactionontheProject; and WHEREAS,onJune11, 2019thePlanningCommissionrecommendedona4-0-1votethat the City Councilapprovethe GeneralPlanAmendment (GPA- 2017- 05), in substantially similarform to theResolutionpresented(Resolutionno.6876), approve the Development Permit(DP-2018-04) in substantiallysimilarformtotheResolutionpresented (Resolution No. 6877), approve the Architectural and Site Approval Permit ( ASA- 2017- 09) in Ordinance No. 19- 2186
substantially similar form to the Resolution presented (Resolution No. 6879), approve a Use Permit ( U- 2018- 03) in substantially similar form to the Resolution presented Resolution No. 6881), approvethe TreeRemovalPermit (TR-2017-46) in substantially similar form to the Resolution presented (Resolution no. 6880) and approve a Development Agreement (DA- 2017-01) in substantially similar form to the Ordinance presented ( Resolution No. 6878); and
WHEREAS, on July 16, 2019, upon due notice, the City Council hasheld at leastone, public hearing to consider the Development Agreement; and WHEREAS, theCity Councilof theCity of Cupertinois thedecision-makingbodyfor this Ordinance;
WHEREAS, after consideration of evidence contained in the entire administrative record, on July 16, 2019, the City Council adoptedResolutionNo. 19-090adopting the Final Mitigated Negative Declaration, Mitigation Measures, and adopting a Mitigation Monitoring and Reporting Program; and
WHEREAS, prior to taking actionon this Ordinance, the City Councilhasexercisedits independent judgment in carefully considering the information in the Final Mitigated Negative Declaration and finds that the scope of this Ordinance falls within the adopted Mitigated Negative Declaration, in that the aspects of the Development Agreement proposedin thisOrdinance.thathavethepotentialforresultingin eitheradirectphysical change in the environment or a reasonably foreseeableindirect physical change in the environment have been examined in the Final Mitigated Negative Declaration; therefore, no recirculation of the Final Mitigated Negative Declaration is required; and WHEREAS, after a duly noticedpublic hearingon July 16, 2019, after considerationof evidence contained in the entire administrative record, prior to consideration of the DevelopmentAgreement, theCityCounciladoptedResolutionNo. 19-090adoptingthe Draft IS/ MND, Resolution No. 19-091 adopting the General Plan Amendment, Resolution19-092approvingtheDevelopmentPermit, Resolutionno. 19-093approving theArchitecturalandSiteApprovalPermit, Resolutionno. 19-095approvingtheUse Permit and Resolution no. 19-094approving the Tree Removal Permit; WHEREAS, the applicant has met the burden of proof required to support said application; and
WHEREAS, approvalof theDevelopmentAgreementwill provideCupertinoVillage, LP with assurancesthat its developmentof the Propertyin connectionwith the Projectcan proceedwithout disruption causedby a changein City planning and development policiesand requirements, which assurancewill therebyreducethe actualor perceived risk of planning,financingandproceedingwith constructionanduseof thedevelopment Ordinance No. 19- 2186
andpromotetheachievementoftheprivateandpublicobjectivesof thedevelopment; and
NOW, THEREFORE, BE IT ORDAINED AS FOLLOWS:
Section 1. The recitals set forth above are true and correct, and are hereby incorporatedhereinby this referenceasif fully setforth in their entirety.
Section 2. TheCity Council, havingconsideredthe staff report to the City Councilfor themeetingof July16, 2019, evidencereceivedat thepublichearingduly noticedandheldfor theproposedDevelopmentAgreement, andallotherfacts, exhibits, testimony, informationandotherevidencesubmittedin thismatterorin therecordof this proceeding, finds asfollows:
A. The proposedDevelopmentAgreementis consistentwith the objectives, policies, generallandusesandprogramsspecifiedin theGeneralPlan, as amended.
B. TheproposedDevelopmentAgreementiscompatiblewith theuses authorizedin, andtheregulationsprescribedfor, thelandusedistrict in which theProject is located.
C. TheproposedDevelopmentAgreementis in conformitywith and will promotepublicconvenience, generalwelfare, andgoodlandusepractice.
D. TheproposedDevelopmentAgreementwill notbedetrimentalto the health, safety, or general welfare.
E. TheproposedDevelopmentAgreementwill not adverselyaffectthe orderlydevelopmentofpropertyorthepreservationofpropertyvalues.
F. TheproposedDevelopmentAgreementwill promoteandencourage thedevelopmentof theProjectby providing a greaterdegreeof requisitecertainty.
Section 3. TheCity CouncilherebyapprovestheDevelopmentAgreementin the form attached asExhibit DA- 1 subjectto such minor technical conforming changesas maybeapprovedby the City Attorney.
Section 4. This approval is based on the City Council' s independent judegementintheconsiderationofandrelianceontheFinalIS/MNDandinaccordance with theplans, detailsanddescriptionscontainedtherein, andin theResolutionadopting the Final IS/ MND.
Section 5. TheCity CouncilherebyauthorizestheCity Managerto executethe Development Agreement on behalf of the City.
Ordinance No. 19- 2186
Section 6. The City Council directsthe Director of CommunityDevelopment to file a Notice of Determinationwith the SantaClaraCounty Recorderin accordance with CEQA guidelines.
Section 7. This Ordinance shall be effective thirty (30) days following its adoption.
a
INTRODUCEDataRegularMeetingoftheCupertinoCity Councilon16thdayof July, 2019, AND ENACTED at a regular meeting of the Cupertino City Council on the 20th day of August, 2019, by the following roll call vote:
Vote: Members of the City Council:
AYES: Scharf, Chao, Paul, Sinks, Willey
NOES: None
ABSENT: None
ABSTAIN: None
SIGNED:
Steven Scharf, Mayor Date
City of Cupertino
ATTEST:
1 GraceSchmidt, City Clerk Date
APPROVED AS TO FORM:
Heather Minner, City Attorney Date
STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
CITY OF CUPERTINO
I, GRACE SCHMIDT, City Clerk andex-officio Clerk of the City Council of the City of Cupertino, California, do herebycertify the attached to be a true and correct copy of Ordinance No. 19- 2186, which was enacted on August 20, 2019, and that it has been published or posted pursuant to law ( G.C. 40806).
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 4th day of September, 2019.
GRACE SCHMIDT, City Clerk and Ex- officio Clerk
of the City Council of the City of Cupertino, California EXHIBIT DA- 1
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014- 3202
Attention: City Manager
Record for the Benefit of
The City of Cupertino
Pursuant to Government Code
Section 27383
SpaceAboveReservedfor Recorder's UseOnly
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DEVELOPMENT AGREEMENT
FOR THE CUPERTINO VILLAGE BOUTIQUE HOTEL
BY AND BETWEEN
CITY OF CUPERTINO
AND
CUPERTINO VILLAGE LP
a California Limited Partnership
Effective Date:
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TABLE OF CONTENTS
Page
ARTICLE1 DEFINITIONS....................................................................................................... 3
1. 1 Definitions.............................................................................................................. 3 ARTICLE 2 EFFECTIVE DATE AND TERM......................................................................... 7
2. 1 Effective Date ........................................................................................................ 8
2. 2 Tenn of Agreement................................................................................................ 8
2. 3 City RepresentationsandWarranties..................................................................... 8 2. 4 Developer Representations and Warranties........................................................... 8 ARTICLE 3 DEVELOPMENT OF THE PROPERTY.............................................................. 9
3. 1 Vested Rights......................................................................................................... 9
3. 2 Life of Approvals................................................................................................... 9
3. 3 Permitted Uses....................................................................................................... 9
3. 4 Applicable City Regulations................................................................................ 10
3. 5 Timing of Development....................................................................................... 10 3. 6 Compliance with Laws ........................................................................................ 11
3. 7 No Conflicting Enactments.................................................................................. 11 3. 8 Changes in the Law.............................................................................................. 11
3. 9 Initiatives and Referenda..................................................................................... 12
3. 10 Regulation by Other Public Agencies.................................................................. 12
3. 11 No Reservationof Sanitary Sewer or PotableWater Capacity............................ 12 ARTICLE4 FEES .................................................................................................................... 13
4. 1 Impact Fees.......................................................................................................... 13
4. 2 Processing Fees.................................................................................................... 13
4. 3 Other Agency Fees............................................................................................... 13
4. 4 Taxes and Assessments........................................................................................ 13
4. 5 Connection Fees................................................................................................... 13 ARTICLE5 PUBLIC BENEFITS............................................................................................ 14
5. 1 Public Benefits Obligations................................................................................. 14
5. 2 Transient Occupancy Tax Requirement............................................................... 17
5. 3 Upscale Hotel....................................................................................................... 17
5. 4 Ongoing Obligations............................................................................................ 17 i-
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TABLE OF CONTENTS
continued)
Page
5. 5 City of Cupertino Business License..................................................................... 18
5. 6 Sales Tax Point of Sale Designation.................................................................... 18 ARTICLE6 ANNUAL REVIEW............................................................................................ 19
6. 1 Annual Review..................................................................................................... 19 ARTICLE 7 COOPERATION AND IMPLEMENTATION................................................... 20
7. 1 Subsequent Approvals ......................................................................................... 20
7. 2 Scope of Review of Subsequent Approvals......................................................... 20
7. 3 ProcessingApplications for SubsequentApprovals............................................ 21
7. 4 OtherAgencySubsequentApprovals; Authority of City....................................21 ARTICLE 8 AMENDMENT OF AGREEMENT AND PROJECT APPROVALS................ 22
8. 1 Amendment by Written Consent.........................................................................22
8. 2 Project Approval Amendments............................................................................ 22
8. 3 Amendment of this Agreement............................................................................ 23
8. 4 Amendments to Development Agreement Statute............................................... 23 ARTICLE 9 INSURANCE, INDEMNITY AND COOPERATION IN THE EVENT OF LEGAL CHALLENGE................................................................................. 24 i
9. 1 Insurance Requirements....................................................................................... 24 1
9. 2 Indemnity andHold Harmless.............................................................................24
9. 3 Defense and Cooperation in the Event of a Litigation Challenge ....................... 24 I
ARTICLE 10 ASSIGNMENT, TRANSFER AND NOTICE 25
10. 1 Assignment
10. 2 Releaseof Transferring Developer...................................................................... 26
10. 3 Assignment to Financial Institutions or Mortgagee............................................. 26
10. 4 Successive Assignment........................................................................................ 27 ARTICLE 11 MORTGAGEE PROTECTION .......................................................................... 27
11. 1 Mortgagee Protection........................................................................................... 27
11. 2 Mortgagee Not Obligated.................................................................................... 27
11. 3 Notice of Default to Mortgagee........................................................................... 28
11. 4 No Supersedure.................................................................................................... 28
11. 5 Mortgagee Requested Amendments.................................................................... 28 OAK# 4820- 8554- 1516 v2 ii-
TABLE OF CONTENTS
continued)
Page
ARTICLE 12 DEFAULT; REMEDIES; TERMINATION ....................................................... 28
12. 1 Breach and Default .............................................................................................. 28
12. 2 Withholding of Pen-nits........................................................................................ 29
12. 3 Termination.......................................................................................................... 29
12. 4 Specific Performance for Violation of a Condition............................................. 29
12. 5 Legal Actions....................................................................................................... 29
12. 6 Rights and Remedies Are Cumulative................................................................. 30
12. 7 No Damages......................................................................................................... 30
12. 8 Resolution of Disputes......................................................................................... 30
12. 9 Surviving Provisions............................................................................................. 30 ARTICLE13 GENERAL PROVISIONS .................................................................................. 31
13. 1 Condemnation...................................................................................................... 31
13. 2 CovenantsBindingon SuccessorsandAssignsandRunwith Land...................31
13. 3 Notice................................................................................................................... 31
13. 4 Permitted Delays.................................................................................................. 32
13. 5 Counterparts......................................................................................................... 33
13. 6 Waivers................................................................................................................ 33
13. 7 Construction of Agreement.................................................................................. 33
13. 8 Headings .............................................................................................................. 33
13. 9 Severability.......................................................................................................... 33
13. 10 Time is of the Essence......................................................................................... 33
13. 11 Extension of Time Limits.................................................................................... 34
13. 12 Other Necessary Acts........................................................................................... 34
13. 13 Signatures............................................................................................................. 34
13. 14 Entire Agreement................................................................................................. 34
13. 15 Estoppel Certificate.............................................................................................. 34
13. 16 Recordation of Termination................................................................................. 35
13.17 City ApprovalsandActions................................................................................. 35
13.18 Negation of Partnership....................................................................................... 35
13.19 No Third Party Beneficiaries............................................................................... 35 OAK# 4820- 8554- 1516 v2 iii-
TABLE OF CONTENTS
continued)
Page
13.20 Governing StateLaw........................................................................................... 35
13. 21 Exhibits................................................................................................................ 35
LIST OF EXHIBITS
Exhibit A: Property Legal Description
Exhibit B: Property Boundary and Depiction of the Project Exhibit C: Description of the Project
Exhibit D: Existing Impact Fees
Exhibit E: TDM Program
Exhibit F: Annual Review Form
Exhibit G: Form of Assignment and Assumption Agreement i
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DEVELOPMENT AGREEMENT
This Development Agreement(" Agreement"), dated as of Effective Date"), is enteredintopursuanttotheDevelopmentAgreementLaw,by andbetweentheCITY OF CUPERTINO, a California municipal corporation(" City") and CUPERTINO VILLAGE LP, a California limited partnership ("Developer"). Developer and City are referred to individually in this Agreement asa" Party" and collectively asthe" Parties."
RECITALS
ThisAgreementis enteredinto onthebasisof thefollowing facts, understandingsand intentionsof theParties. Thefollowing recitalsareasubstantivepartof this Agreement; capitalizedtermsusedhereinandnot otherwisedefinedaredefinedin Article 1of this Agreement.
A. In order to strengthen the public planning process, encourage private participation in comprehensiveplanning, andreducetheeconomiccostsandrisksof development,the Legislature of the Stateof California enactedsection 65864 et seq. of the Government Code Development Agreement Statute") which authorizesacity andadeveloperhavingalegalor equitableinterestin realpropertyto enterinto abinding, long-termdevelopmentagreement establishing certain developmentrights in the property.
B. In accordancewith the Development Agreement Statute, the City Council of the Cityof CupertinoenactedMunicipalCodesection19.144.010etseq. ("Development Agreement Regulations"), which authorize the execution of development agreements and set forth the required contentsand form of those agreements. The provisions of the Development AgreementStatuteandtheCity'sDevelopmentAgreementRegulationsarecollectivelyreferred to herein as the" Development Agreement Law."
C. Developeris theownerof thatcertainrealpropertyconsistingof approximately
1.72 acres (74,979 square feet) in size(" Property") moreparticularlydescribedin Exhibit A anddepictedin Exhibit B, bothattachedheretoandincorporatedherein. ThePropertyis currentlydevelopedwithacommercialbuilding, restaurantbuildingandparkinglotownedand leasedbyDeveloper. ThisAgreementappliesonlytothePropertyanddoesnotaffectorburden anyotherrealpropertyownedbyDeveloperand/oritsAffiliatedParties D. Developer submitted applications to the City for a GeneralPlan text amendment GPA- 2017- 05) (" General Plan Amendment"), a Development Permit( DP- 2018- 04) Development Permit"), an Architectural and Site Approval Permit( ASA- 2017- 09) ( the Architectural and Site Approval Permit"), a Use Permit( U- 2018- 03) (" Use Permit"), a Tree Removal Permit ( TR- 2017- 46) (" Tree Removal Permit"), an Exception Permit( EXC- 2018- 03) Exception Permit"), and a Development Agreement( DA- 2017- 01). These applications are in furtheranceoftherequestbyDevelopertoremovetheexistingstructuresandfacilitiesand developontheProjectSiteanewfull-serviceboutiquehotelcomprisingfive storiesabove groundplustwolevelsofundergroundparking, containing185hotelrooms, meetingrooms, a 1 OAK# 4820- 8554- 1516 Q
restaurant and associated amenities, facilities and infrastructure ( the " Project"). The Project is described in more detail in Exhibit C, attached hereto and incorporated herein.
E. The Project is the subject of a Mitigated Negative Declaration( EA 2017- 06) MND") preparedpursuantto theCaliforniaEnvironmentalQualityAct ("CEQA") ( Public ResourcesCode section 21000 et seq.). The MND is tiered from the General Plan EIR in accordancewith Sections 15152and 15168 of the CEQA Guidelines and CEQA Section 21094.
F. After a duly noticed public hearing, the Planning Commission on June 11, 2019 recommendedto the City Council adoption of the MND, and approval of the General Plan Amendment, Development Permit, Architectural and Site Approval Permit, Use Permit, Tree Removal Permit, and this Development Agreement.
G. Prior to or concurrently with approval of this Agreement, the City has taken the following actionsto review and plan for the future development anduseof the Project collectively, the" Existing Approvals"):
1. Adoptionof theMND by ResolutionNo. No.19-090adoptedby the City Council on July 16, 2019;
2. Approval of the GeneralPlan Amendment by Resolution No. No. 19-091 adoptedby the City Council on July 16, 2019;
3. Approvalof theDevelopmentPermitby ResolutionNo. 19-092adopted by the City Council on July 16, 2019;
4. Approvalof theArchitecturalandSiteApprovalPermitby ResolutionNo. 19-093 adoptedby the City Council on July 16, 2019;
5. Approvalof theUsePermitbyResolutionNo. 19-095adoptedbytheCity Council on July 16, 2019;
6. Approvalof theTreeRemovalPermitby ResolutionNo. 19-094adopted by the City Council on July 16, 2019;and
H. It is the intent of City and Developer to establish certain conditions and requirements related to review, approval, development and operation of the Project, which are or will bethesubjectof this Agreementandpossiblysubsequentdevelopmentapplicationsandland use entitlements if found to be desired or required.
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I. City specifically finds, asrequired by Municipal Code section 19.144.110 and as reflectedin theEnactingOrdinance, thatapprovingthis Agreementfor theProjectwill promote orderlygrowthandqualitydevelopmentin accordancewith thegoalsandpoliciessetforth in the GeneralPlan; is compatiblewith theusesauthorizedin, andtheregulationsprescribedfor, the districtin whichthePropertyis located; will promotethepublic convenience, generalwelfare, andgood land usepractice; will promote development which is not detrimental to the health, safetyandgeneralwelfare; will notadverselyaffecttheorderlydevelopmentofpropertyorthe I preservationofpropertyvalue; andwill promoteandencouragedevelopmentof theProjectby 2 OAK# 4820- 8554- 1516 Q
providingagreaterdegreeofrequisitecertainty. CityalsofindsthattheProjectwillprovide substantialpublic benefitsasdescribedin this Agreement.
J. CityandDeveloperhavereachedmutualagreementanddesiretovoluntarily enterinto this Agreementto facilitatedevelopmentandoperationof theProjectsubjectto the conditions and requirements set forth herein.
K. CityhasgiventherequirednoticeofitsintentiontoadoptthisAgreementandhas conductedpublichearingsthereonpursuanttoGovernmentCodesection65867andMunicipal Codesection19.144.090. CityhasreviewedandevaluatedthisAgreementin accordancewith theDevelopmentAgreementLaw andfoundthattheprovisionsof this Agreementandits purposesareconsistentwiththeDevelopmentAgreementLawandthegoals,policies, standards and land use designationsspecified in the General Plan.
L. Followingadulynoticedpublichearing, onJuly16, 2019theCityCouncil introducedOrdinanceNo. 19-2186approvingthisAgreementandauthorizingitsexecution, and adopted that Ordinance on August 20, 2019 (" Enacting Ordinance").
AGREEMENT
NOW, THEREFORE, in considerationof themutualcovenantsandpromisescontained hereinandothervaluableconsideration, thePartiesherebyagreeasfollows:
ARTICLE 1
DEFINITIONS
1. 1 Definitions.
Administrative Agreement Amendment" is defined in Section 8.3.3.
Administrative Project Amendment" is defined in Section 8.2.1.
Affiliated Party" is definedin Section10.1.2.
Agreement"or "DevelopmentAgreement" shallmeanthis DevelopmentAgreement betweenCity andDeveloper,includingall Exhibitshereto.
Annual Review Form" is defined in Section 6. 1.2.
Annual TMA Fee" is defined in Section 5.1.2.
ApplicableCityRegulations"is definedin Section3.4.
ApplicableLaw" meanstheApplicableCityRegulationsandall StateandFederallaws andregulationsapplicabletothePropertyandtheProjectassuch.StateandFederallawsand regulationsmaybeenacted, adoptedandamendedfromtimetotime, asmoreparticularly described in Section 3.8 (Changes in the Law).
Architectural andSiteApprovalPermit" is definedin RecitalD. 3 OAK# 4820- 8554- 1516 Q
Assignee" is defined in Section 10. 1.1.
Assignment" is defined in Section 10. 1. 3.
BuildingPermit"meansabuildingpermitissuedbytheCityforthevertical construction of any building( or buildings) within the Project, and shall not include any demolition permit, grading permit, or building pen-nit issuedfor a foundation or subterranean parking garage.
CEQA" meansthe California Environmental Quality Act, California Public Resources Code section21000, et seq., asamendedfrom time to time.
CEQA Guidelines" means the State CEQA Guidelines ( California Code of Regulations, Title 14, section 15000, et seq.), as amended from time to time.
Certificate" is defined in Section 6. 1. 4.
Changes in the Law" is defined in Section 3. 8.
City" meansthe City of Cupertino.
City Council" meansto the City Council of the City of Cupertino.
City Manager" meansthe City' s City Manager or his or her designee.
I
City Parties." meansandincludes City and its electedand appointed officials, officers, employees, contractors and representatives.
Claims"meansliabilities, obligations, orders, claims, damages, fines, penaltiesand expenses, including attorneys' feesand costs. i
Community Amenity Payment" is defined in Section 5.1.1.
ConnectionFees" meansthosefeeschargedby City on a citywidebasisorby autility provider to utility usersas a cost for connecting water, sanitary sewer, and other applicable utilities, except for any such fee or portion thereof that constitutes an Impact Fee.
Construction Tax" is defined in Section 4. 4.
Consumer Price Index" shall mean the cumulative Consumer Price Index for All Urban Consumers ( CPI- U), as defined in Cupertino' s CMC Section 5. 04. 460 ( and as reflected in themostrecentreportof consumerpricesfor theSanFrancisco/Bay AreaStandardMetropolitan Statistical Area aspublished by the U.S. Department of Labor, Bureau of Labor Statistics) or if suchindexis no longeravailableby acomparableindexasreasonablyselectedby City. i
Default" is defined in Section 12. 1.
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Developer" meansCupertino Village LP, a California limited partnership and its permitted successors, assignsand Affiliated Parties (asdefined in Section 10.1.2). 4 OAK# 4820- 8554- 1516 Q
Development Agreement" or" Agreement' meansthis Development Agreement betweenCity andDeveloper, includingall Exhibitshereto.
Development Agreement Law" is defined in Recital B.
Development Agreement Regulations" is defined in Recital B.
Development Agreement Statute" is defined in Recital A.
Development Permit" is defined in Recital D.
DevelopmentProject" meansadevelopmentprojectasdefinedby section65928of the CaliforniaGovernmentCode. Notwithstandingsection65928of theCaliforniaGovernment Code, Development Project shall also include all ministerial approvalsrequired to carry out, construct,reconstruct, and occupy such a development project.
Effective Date" meansthe datethat this Agreement becomeseffective asdetermined under Section 2. 1.
EnactingOrdinance"referstotheOrdinanceidentifiedin RecitalL.
Exactions" meansexactionsthatmaybeimposedby theCity asa conditionof developingtheProject, includingrequirementsforacquisition, dedicationorreservationofland; andobligationsto constructon-siteor off-sitepublic andprivateinfrastructureimprovements suchasroadways, utilities or otherimprovementsnecessaryto supporttheProject, whethersuch exactionsconstitute subdivision improvements, mitigation measuresin connection with environmental review of the Project, or impositions madeunder Applicable City Regulations.
Forpurposesof thisAgreement, ExactionsdonotincludeImpactFees.
Exception Permit" is defined in Recital D.
ExistingApprovals"meansandincludesthosepermitsandapprovalsfortheProject grantedby CitytoDeveloperasof theEffectiveDateassetforthin RecitalG.
Existing ImpactFees".is definedin Section4.1.
GeneralPlan" meansCity's CupertinoGeneralPlan: CommunityVision 2015-2040, as amended through the Effective Date.
General Plan Amendment" is defined in Recital D.
General Plan EIR" meansthe GeneralPlan Amendment, Housing Element Update, andAssociatedRezoningEnvironmentalImpactReport(EIR)thatwascertifiedbytheCity Councilin December2014andtheaddendumto thatEIRthatwasapprovedby theCity Council in October 2015.
Impact Fees" meansthemonetaryamountchargedby City in connectionwith a DevelopmentProjectfor thepurposeof defrayingall or aportionof thecostof mitigatingthe 5 OAK# 4820- 8554- 1516 v2
impacts of the Development Project or development of the public facilities related to the DevelopmentProject, including, any" fee" asthattermis definedby GovernmentCodesection 66000( b). For purposesof this Agreement, a fee that meetsboth the definitions of an Impact Fee and an Exaction will be considered to be an Impact Fee. Impact Fees do not include Other Agency Fees.
Internships" is defined in Section 5. 1.7.
Litigation Challenge" is defined in Section 9. 3.
Major Agreement Amendment" is defined in Section 8. 3. 2. i la
Major Project Amendment" is defined in Section 8.2. 2.
1 Material Condemnation" is defined in Section 13. 1.
Meeting Room Benefit" is defined in Section 5.1.5.
Minimum Hotel Standard" is defined in Section 5.3.
MND" or Mitigated Negative Declaration is defined in Recital E.
Mortgage" meansany mortgage, deedof trust, security agreement, and other like security instrument encumbering all or any portion of the Property or any of the Developer' s rights under this Agreement.
Mortgagee" meansthe holder of any Mortgage, and any successor, assigneeor transfereeof any suchMortgage holder.
Municipal Code" meansandrefers to the City of Cupertino' s Municipal Code, as amended from time to time.
New City Laws" meansandincludes any ordinances,resolutions, orders, rules, official policies, standards, specifications, guidelines or other regulations, which arepromulgated or adoptedby theCity( includingbut notlimited to anyCity agency,body, department, officer or employee) or its electorate(through their power of initiative or otherwise) after the Effective Date.
Notice of Breach" is defined in Section 12.1.
Other Agency Fees" is defined in Section4.3.
Other Agency SubsequentApprovals" meansapprovals, entitlements andpermits requiredfor developmentor useof theProjectto beobtainedfrom entitiesotherthantheCity.
Parties" shall mean City and Developer.
Permitted Delay" is defined in Section 13.4.
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Planning Commission" meansthe City of Cupertino Planning Commission.
Preferential Employment Program" is defined in Section 5.1.3.
Prevailing WageLaws" is defined in Section 9.2.
ProcessingFees" meansall feesfor processingDevelopmentProjectapplications, includinganyrequiredsupplementalorotherfurtherenvironmentalreview, plancheckingand inspectionandmonitoringfor landuseapprovals, designreview, gradingandbuilding permits, GeneralPlanmaintenancefees, andotherpermitsandentitlementsrequiredto implementthe Project, which arein effectatthetimethosepermits, approvalsor entitlementsareappliedfor, andwhich are intendedto cover the actual costsof processing the foregoing.
Project Approvals" meansthe Existing Approvals and all SubsequentApprovals.
Project" is defined in Recital D.
Property" is defined in Recital C.
Public Benefits Covenants" is defined in Section 5.4.
Reduced Rate Benefit" is defined in Section 5.1.6.
Shuttle Service" is defined in Section 5. 1.4.
STY" or Smith Travel Research is defined in Section 5.3.
Subsequent Approvals" is defined in Section 7. 1.
Term" is defined in Section 2. 2.
TDMProgram" is defined in Section 5. 1.2.
TMA" or Transportation Management Association is defined in Section 5.1.1.4.
TOT' or Transient Occupancy Tax is defined in Section 5.2.
TOT In- lieu Payment" is defined in Section 5.2.
TOT Law" is defined in Section 5.2.
TOT Requirement" is defined in Section 5. 2.
Tree Removal Permit" is defined in Recital D.
Use Permit" is defined in Recital D.
ARTICLE 2
EFFECTIVE DATE AND TERM
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2. 1 Effective Date. The Effective Date of this Agreement shall be the later of( a) the datethat is thirty( 30) days after the datethe Enacting Ordinance is adopted, or( b) the date this Agreementis fully executedby theParties. TheEffectiveDateis insertedatthebeginningof this Agreement. The Parties acknowledge that section 65868. 5 of the Development Agreement StatuterequiresthatthisAgreementberecordedwith theCountyRecordernolaterthanten( 10) days after the City entersinto this Agreement, and that the burdensof this Agreement shall be i bindingupon, andthebenefitsof thisAgreementshallinureto, all permittedsuccessorsin interest to the Partiesto this Agreement. The City Clerk shall causesuchrecordation.
2. 2 Term of Agreement. The" Term" of this Agreement shall commence on the EffectiveDateandshallexpireonthefifth( 5th) anniversaryof theEffectiveDate,unlessearlier r terminated or extendedby mutual written consentof the Partieshereto in accordancewith the requirements of Section 8. 1, below. j
2. 3 City and Warranties. City representsandwarrants to Developer that, as of the Effective Date:
2. 3. 1 City is amunicipal corporation, andhasall necessarypowers under the lawsof theStateof Californiato enterinto andperformtheundertakingsandobligationsof City under this Agreement.
2. 3. 2 Theexecutionanddeliveryof thisAgreementandtheperformanceof the obligationsof theCity hereunderhavebeenduly authorizedby all necessaryCity Councilaction and all necessaryCity approvalshavebeen obtained.
2. 3. 3 This Agreement is a valid obligation of City andis enforceablein accordance with its terms.
DuringtheTermof this Agreement, City shall, uponlearningof anyfact or condition which would causeof any of the warranties andrepresentationsin this Section 2.3 not to be true, immediately give written notice of suchfact or condition to Developer.
2. 4 Developer Representations and Warranties. Developer represents and warrants to City that, asof the Effective Date:
2. 4. 1 Developeris duly organizedandvalidly existingunderthelawsof the Stateof California, andis in goodstandingandhasall necessarypowersunderthelawsof the Stateof Californiato ownpropertyinterestsandin all otherrespectsenterinto andperformthe undertakings and obligations of Developer under this Agreement.
2. 4. 2 The execution and delivery of this Agreement and the performance of the obligationsof Developerhereunderhavebeenduly authorizedby all necessarypartnership action and all necessarypartner approvalshave beenobtained.
2. 4. 3 This Agreement is a valid obligation of Developer and is enforceable in accordance with its terms.
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2. 4. 4 Developerhasnot( a)madeageneralassignmentfor thebenefitof creditors; (b) filedanyvoluntarypetitionin bankruptcyor sufferedthefiling of anyinvoluntary petition by Developer' s creditors; (c) suffered the appointment of a receiver to take possessionof all, or substantially all, of Developer' s assets; (d) suffered the attachmentor otherjudicial seizure of all, orsubstantiallyall, of Developer'sassets; or(e)admittedin writingitsinabilitytopayits debtsasthey come due.
2. 4. 5 Developer and/or its Affiliated Partiesare in the businessof developing andowningrealestate. DeveloperanditsAffiliatedPartieshavesufficientfinancialresourcesto undertakedevelopmentof theProjectandthereafteroperateor causethehotelto beoperatedas describedin Section 5.3 and asotherwise intended by this Agreement. The entity that operates the hotel, whether Developer, oneof its Affiliated Parties, or any third- party entity that Developerarrangesfor suchpurpose, shallsatisfythequalificationsfor anAssigneeasdescribed in Section 10. 1. 1 to the extent applicable.
DuringtheTermof thisAgreement, Developershall,uponlearningof anyfactor conditionwhichwould causeanyof thewarrantiesandrepresentationsin this Section2.4 not to betrue, immediatelygivewrittennoticeof suchfactor conditionto City.
ARTICLE 3
DEVELOPMENT OF THE PROPERTY
3. 1 VestedRights. ThePropertyis herebymadesubjectto theprovisionsof this Agreement. Developershallhavethevestedright to developthePropertyandtheProjectin conformancewiththeExistingApprovals,theSubsequentApprovals, ApplicableLawandthis Agreement, asmaybeamendedfromtimetotimepursuanttothisAgreement,whichshall controlthepermitteduses, densityandintensityofuseofthePropertyandthemaximumheight and size of buildings on the Property.
3. 2 Life of Approvals. Pursuantto Government Code section 66452.6(a) and this Agreement, thelife of theProjectApprovalsshallautomaticallybe extendedto anduntil thelater of the following: ( 1) the end of the Term of this Agreement; or( 2) the end of the term or life of anysuchProjectApproval. Notwithstandingtheforegoing, thevestedelementssecuredby DeveloperunderthisAgreementshallhavealife no greaterthantheTerm of this Agreement.
3. 3 PermittedUses. Thepermittedusesfor thePropertyandtheProjectarethoseset forth in the Project Approvals, and include the following:
3. 3. 1 Upto 185hotelroomsin onebuildingof fiveabove-gradestorieswith a fitnessfacilityandamenitiescustomaryforahotelmeetingtheMinimumHotelStandard;
3. 3. 2 below- grade parking;
3. 3. 3 arestaurant/barwith anoutdoorpatio, to beopento thegeneralpublic;
3. 3. 4 a rooftop lounge and/or bar; and
3. 3. 5 rooms suitable for meetings, conferences, banquets and similar uses. 9 OAK# 4820- 8554- 1516 v2
The details for eachcomponent aresubjectto the Project and Agreement amendmentprocesses as setforth in Sections8.2 and 8.3 herein. In the event of a conflict between the Existing Approvals andthe terms of this Section 3.3, the Existing Approvals shall govern.
3. 4 ApplicableCity Regulations. Thelaws,rules,regulations, official policies, standardsand specifications of City applicable to the development,use and operation of the Property andthe Project shall be( collectively, " Applicable City Regulations"):
3. 4. 1 Those rules, regulations, official policies, standards and specifications of the City set forth in the Project Approvals and this Agreement; l
3. 4. 2 With respectto mattersnot addressedby andnot otherwise inconsistent with the Project Approvals and this Agreement, those laws, rules, regulations, official policies, standardsand specifications (including City ordinancesandresolutions) governing permitted j uses,building locations, timing andmanner of construction, densities, intensities of uses, maximum heights and sizes, design, set-backs, lot coverageand open space,parking, landscaping, requirements for on- andoff- site infrastructure andpublic improvements and Exactions, in each case only to the extent in full force and effect on the Effective Date;
3. 4. 3 Except asmay be addressedin the Project Approvals, New City Laws that relate to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appealsand any other matter of procedureimposed at any time, provided such New City Laws areuniformly applied on a City-wide basis to all substantially similar types of j Development Projects and properties, and suchproceduresarenot inconsistent with procedures set forth in this Agreement;
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3. 4. 4 New City Laws that revise City' s uniform construction codes, including City'sbuildingcode, plumbingcode,mechanicalcode, electricalcode, fire code, gradingcode andotheruniform constructioncodes, asof thedateof permitissuance, providedsuchNew City Lawsareuniformly appliedon aCity-widebasisto all substantiallysimilartypesof Development Projects andproperties;
3. 4. 5 New City Laws that are necessaryto protect physical health and safety of the public, provided suchNew City Laws areuniformly applied on a City- wide basis to all substantially similar types of Development Projects and properties; i
3. 4. 6 New City Laws that do not conflict with this Agreement or the Project Approvals, provided suchNew City Laws areuniformly applied on a City- wide basis to all substantiallysimilartypesof DevelopmentProjectsandproperties; and
3. 4. 7 New City Laws that do not apply to the Property and/or the Project dueto the limitations setforth above,but only to the extent that suchNew City Laws are acceptedin writing by Developer in its sole discretion.
3. 5 Timing of Development. Developer shall have no obligation to develop the Project or any componentof the Project. Without any limitation of the foregoing, it is the desire of the Partieshereto to avoid the result in Pardee Construction Co. v. City of Camarillo, 37 Ca1.3d465 (1984), in which theCaliforniaSupremeCourtheldthatthefailure of theparties 10 OAK# 4820- 8554- 1516 Q
thereinto consider, andexpresslyprovidefor, thetiming of developmentresultedin alater- adoptedinitiative restrictingthetiming of developmentto prevailoversuchparties' agreement.
Therefore, notwithstandingtheadoptionof anyinitiative aftertheEffectiveDateby City' s electorateto thecontrary, thePartiesacknowledgethat, exceptasotherwiseprovidedfor in this Agreement, Developershallhavethevestedright duringtheTerm andanyextensionsthereofto developtheProjectatsuchtimeasDeveloperdeemsappropriatein theexerciseofitssoleand subjective business judgment.
3. 6 Compliance with Laws. Developer, at its sole cost and expense, shall comply with therequirementsof, andobtainall permitsandapprovalsrequiredby local, Stateand FederalagencieshavingjurisdictionoverthePropertyorProject. Furthermore, Developershall carryouttheProjectwork in conformitywith all ApplicableLaw, includingapplicablestate laborlawsandstandards; ApplicableCity Regulations; andall applicabledisabledand handicappedaccessrequirements, including the Americans With Disabilities Act, 42 U.S.C. section12101, etseq., GovernmentCodesection4450, etseq., GovernmentCodesection11135, etseq., andtheUnruhCivilRightsAct, CivilCodesection51, etseq.
3. 7 No ConflictingEnactments. Exceptasotherwiseprovidedin thisAgreement, CityshallnotimposeontheProject(whetherby actionoftheCityCouncilorbyinitiative, referendumor othermeans, includingdevelopmentmoratoriumor additionalProjectconditions on SubsequentApprovals) any New City Law that is in conflict with this Agreement or the ExistingApprovalsor, onceapproved, theSubsequentApprovals. Withoutlimitingthe generalityoftheforegoing, exceptasotherwiseprovidedherein, Cityshallnot (a) applytothe Propertyanychangein landusedesignationor permitteduse, densityor intensityof developmentof theProperty; (b) applyto thePropertyanychangein off-siteinfrastructureor utility requirementsor limit or controltheavailability of or ability to obtainpublicutilities, services, or facilities (provided, however, nothinghereinshallbedeemedto exempttheProject or thePropertyfrom anywateruserationingrequirementsthatmaybe imposedfrom time to time in the future and nothing herein shall be deemeda commitment to reservepotable water or sanitarysewercapacitywhichthePartiesacknowledgeCitydoesnotcontrol); (c) modify or controlbuildingsetbacks, squarefootagesorheights; thelocationof buildingsandstructures; parkingrequirements; orgradingin amannerthatisinconsistentwith ormorerestrictivethanthe termsincludedin theExistingApprovalsor this Agreement; or( d) limit or controltherate, timing,phasingorsequencingoftheapproval, developmentorconstructionof alloranypartof the Project.
3. 8 Changesin theLaw. As providedin section65869.5 of theDevelopment AgreementLaw, this Agreementshallnotprecludetheapplicabilityto theProjectof changesin laws,regulations,plansorpolicies, to theextentthatsuchchangesarespecificallymandatedand requiredby changesin Stateor Federallawsor by changesin laws, regulations, plansor policies of specialdistrictsor othergovernmentalentities, otherthantheCity, createdor operating pursuantto thelawsof theStateof California(" Changes in the Law"). In the event Changes in theLawpreventorprecludecompliancewithoneormoreprovisionsof thisAgreement,the Partiesshallmeetandconferin goodfaithin ordertodeterminewhethersuchprovisionsof this Agreementshallbemodifiedor suspended, orperformancethereofdelayed, asmaybenecessary to complywithChangesin theLaw. Nothingin thisAgreementshallprecludeDeveloperfrom 11 OAK# 4820- 8554- 1516 Q
contestingby any available means (including administrative orjudicial proceedings)the applicability to the Project of any such Changes in the Law.
3. 9 Initiatives and Referenda. If any New City Law is enactedor imposed by initiative or referendum, or by the City Council directly or indirectly in connection with any proposedinitiative or referendum, which New City Law would conflict with this Agreement or reducethe developmentrights provided by this Agreement andthe Project Approvals, suchNew City Law shall not apply to the Project. No moratorium or other limitation( whether relating to the rate, timing, phasing, density, height or sequencingof development) affecting subdivision maps,building permits or other entitlements to usethat are approvedor to be approved, issued or grantedwithin the City, or portions of the City, shall apply to the Project. City, except to submit to vote of the electorateinitiatives and referendumsrequired by Applicable Law to be placed on aballot, shall not adopt or enactanyNew City Law, or take any other action which would violate the express provisions of this Agreement or the Project Approvals. Developer reserves the right to challengein court any New City Law that would conflict with this Agreement or reducethe 1vesteddevelopmentrights provided by this Agreement. Notwithstanding the foregoing, the Parties acknowledge that City' s approval of this Agreement is a legislative action subject to referendum. DeveloperfurtheracknowledgesandagreesthatCity doesnot haveauthorityor jurisdiction over any other public agency's ability to grant governmental approvalsor permits or to impose a moratorium or other limitation that may affect the Project.
3. 10 Regulationby OtherPublicAgencies. Developeracknowledgesthatotherpublic agenciesnot within the control of City possessauthority to regulate aspectsof the development of the Property separatelyfrom or jointly with City, and this Agreement doesnot limit the authority of suchother public agencies. Developer will, at the time required in accordancewith Developer' sproject and construction schedule, apply for all suchother permits andapprovals as may be required by other governmental or quasi-governmental entities in connection with. the development of, or the provision of servicesto, the Project. Developer acknowledgesthat City doesnot control the amount of any feesimposed by suchother agencies. In the eventthat such fees areimposed upon Developer and are in excessof those allowed by Applicable Law and Developer wishes to object to such fees, Developer may pay suchfeesunder protest. City agrees not to delay issuanceof permits or other SubsequentApprovals and entitlements under these circumstances, provided Developer provides City with proof of payment of suchfees.
3. 11 No Reservationof Sanitary Seweror Potable Water Capacity. City has found the Project to be consistent with the General Plan which anticipates that there will be sufficient potable water and sanitary sewercapacity to serve future development contemplatedby the General Plan, including the Project, through the Term. However, nothing in this Agreement is intended to provide any reservationof potable water or sanitary sewercapacity.
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ARTICLE 4
FEES
4. 1 Impact Fees. Except asotherwise expressly provided herein, during the Term and anyextensionthereofCityshallhavetherighttoimposeandDevelopershallpayonlysuch ImpactFeesasCity hasadoptedasof theEffectiveDate, includingthosesetforth in theProject Approvals (" Existing Impact Fees"). For convenience of reference, the Existing Impact Fees areidentified in Exhibit D attachedhereto andincorporated herein. Any Existing Impact Fees that are in existence as of the Effective Date but are inadvertently omitted from Exhibit D may still be charged. In the event of suchinadvertent omission, the Partiesshall revise Exhibit D to correctsucherror. Paymentof theExistingImpactFeesshallbeattheratesin effectwhensuch feesaredue. Notwithstandingtheaboveandsubjectto Developer'sright to protestand/or pursueachallengein laworequityto anyneworincreasedImpactFees, if Cityelectsin itssole discretionto approveanyextensionto theTerm, in additionto theExistingImpactFeesit may imposeanynewor increasedImpactFeesCity mayhaveduly adoptedasof thedateof such approval.
4. 2 ProcessingFees. Subjectto Developer's right to protestand/or pursueachallenge in law or equityto anynewor increasedProcessingFee, City may chargeandDeveloperagrees topayallProcessingFeesforprocessingDevelopmentProjectapplications, includingbutnot limitedto anyrequiredsupplementalorotherfurtherenvironmentalreview,plancheckingand inspectionandmonitoringfor landuseapprovals, designreview, gradingandbuilding permits, GeneralPlan maintenancefees, and other permits and entitlements required to implement the Project, at the rates which are in effect on a City- wide basis at the time those permits, approvals, entitlements, reviews or inspections areapplied for, requestedor required. Without limiting the above,by enteringinto this AgreementDeveloperacceptsandshallnot protestor challenge imposition of the types and amountsof ProcessingFeesin effect asof the Effective Date.
4. 3 Other Agency Fees. Nothing in this Agreement shall preclude City from collectingfeesfrom Developerthatarelawfully imposedontheProjectby anotheragency havingjurisdictionovertheProject,whichtheCityisrequiredto collectonbehalfof suchother agencies (" Other Agency Fees").
4. 4 TaxesandAssessments. City mayimposeandDeveloperagreesto payanyand all existing, new,modifiedorincreasedtaxesandassessmentsimposedin accordancewith the laws in effect asof the date due, at the rate in effect at the time of payment, including without limitation,theconstructiontaxesimposedby Chapter3.32of theMunicipal Code Construction Tax").
4. 5 Connection Fees. Subject to Developer's right to protest and/or pursue a challengein law or equityto anynewor increasedConnectionFee, City maychargeand DevelopershallpayanyConnectionFeethatis lawfully adopted. 13 OAK# 4820- 8554- 1516 Q
ARTICLE 5
PUBLIC BENEFITS
5. 1 Public Benefits Obligations. In consideration of the rights and benefits conferred by City to Developer under this Agreement, Developer shall perform the public benefit obligations and pay to City the contributions setforth in this Article 5 all within the times set forth herein.
5. 1. 1 Community Amenity Funding. Developer agreesto pay City Ten Thousand Dollars ($ 10, 000. 00) for each hotel room constructed for an estimated total of One Million Eight Hundred Fifty Thousand Dollars ($ 1,850, 000. 00) in installments as described below, for City' s usein the City Council' s discretion subjectto the following suggested guidelines (" Community Amenity Payment"), which payment shall be in addition to any Impact Feesotherwise due. Oncepaid, eachinstallment of the Community Amenity Payment j shall be nonrefundable, except asprovided in Section 5.1.1.2 below. In the eventCity actions or conditions (including,but notlimited to, conditionsof theProjectApprovals, interpretationsof City ordinances, regulations and/or policies, andimposition of applicable building code f requirements) regarding the Project Approvals cause the Project to be finally approved with fewer than 185hotel rooms, the total Community Amenity Payment shall be Ten Thousand Dollars ($ 10,000.00) multiplied by the number of hotel rooms approvedfor construction; provided, the Community Amenity Payment shall not be reducedif Developer electsto voluntarily reduce the number of hotel rooms.
5. 1. 1. 1. The Community Amenity Payment shall be madein installments as follows:
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1) Within ninety( 90) days of the Effective Date, Developer shall pay City a first installment of the Community Amenity Payment in the amount of Fifty ThousandDollars ($ 50, 000. 00).
2) On orbeforeDecember15tof eachyear,beginningon the first December1staftertheEffectiveDate, until theCommunityAmenity Paymentis paid in full, aspart of eachannual review andtogether with submission of the Annual Review Form, Developer shall pay City an installmentof theCommunityAmenity Paymentin theamountof Fifty Thousand Dollars ($ 50, 000. 00).
3) At the time of issuance of the first Building Permit for the Project, Developer shall pay twenty-five percent( 25%) of the remainder of the Community Amenity Payment.
4) At the time of issuanceof the first Certificate of Occupancy for the Project, Developer shall pay the remainder of the Community Amenity Payment.
5) In the event of a Litigation Challenge( described below in Section 9. 3), all Community Amenity Paymentinstallments shall be postponeduntil final resolution of the Litigation Challenge. 14 OAK# 4820- 8554- 1516 Q
5. 1. 1. 2 Except asspecified herein, Community Benefit Payment installmentspaidtoCityshallbenonrefundableevenif theProjectisnotbuilt oroccupied, and Developeracknowledgesthatsuchinstallmentsandthetiming of theirpaymentconstitutepartial considerationfor City enteringinto this AgreementandarepaidatDeveloper'srisk. i Notwithstandingtheabove, if thisAgreementisterminatedortheProjectisnotconstructeddue to badfaith actionor failureto actby City regardingtheProjectApprovalsleadingto anuncured Default, which is not resolved after completion of the disputeresolution processin Section 12.8, thenuponfinaljudgmentby a courtof competentjurisdiction in Developer's favorsuch paymentsshall be refundable to Developer.
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5. 1. 1. 3 Funds may beused in any part of the City to benefit residents, businesses, andvisitors, includingonprojectsthatwill enhanceandenrichthe experienceof the mostproximateCityresidents, retailandrestaurantcustomers, andhotelguests.
5. 1. 1. 4 Without limiting City' s discretionin its useof theCommunity AmenityPayment, thefollowingtypesofusesor activitieshavebeenidentifiedascandidates:
1) Local transportation facilities, such as the I- 280 Trail, bicycle lanes, the I-280/ Wolfe Road Interchange project, projects identified in the 2016 Cupertino Bicycle Transportation Plan, or projects identified in the 2018 Cupertino Pedestrian Transportation Plan( without replacing fair- shareimpact fees also owed by Developer); 2) Start-up costs for the Transportation Management Association (" TMA");
3) Permanentlocal public art projects or temporary exhibits in additionto anypublic artinstallationor paymentotherwiseowed); and 4) Landscapingbeautification improvements in public parks, parkways or roadway medians.
5. 1. 2 Transportation Demand Management ( TDM) Program. Developer shall fundandfully implementthe "TDM Program"describedin ExhibitE attachedheretoand incorporatedherein. In addition, if at anytime aTMA is formedwhosecoverageandservice areaincludestheProperty, Developeragreesto participatein theTMA in additionto fundingand implementingtheTDM Program. In theeventa TMA is formed, Developercommitsto payan annualparticipationfee, whichinitiallyshallnotexceedTenThousandDollars ($10, 000. 00) ( the TMA Fee"). Developershallhavetheright to participatein anyprocessestablishedfor formationof theTMA including,but notlimited to, theright to commenton thescopeandnature of theproposedTMA'scoverageandserviceareaandtheamountoftheannualparticipationfee.
TheannualTMA FeepaidbyDevelopermayincreaseeachyearbasedonanyincreasein the ConsumerPriceIndexoverthepriorone-yearperiod,beginningtheyearaftertheyearinwhich the TMA is formed
5. 1. 3 Preferential Hiring. Developer shall establish aprogram giving preference to Cupertinoresidentsfor employmentin theProjectin all positions, duringinitial staffingand on an ongoing basis asopeningsoccur(" Preferential Employment Program"). The program 15 OAK# 4820- 8554- 1516 v2
shall be subject to approval by the City Manager in his/her reasonablediscretion. The Annual Review Form submitted by Developer pursuant to Section 6.1 shall include a report on Developer' s outreachandhiring efforts and resultsduring the preceding year. i
5. 1.4 Shuttle Service. In order to reduce automobile use in Cupertino, with the attendanteffects on traffic andair quality, Developer shall provide accessto a shuttle service available for the following purposes (the" Shuttle Service"):
5. 1. 4. 1 for hotel gueststraveling between the hotel and SanJose International Airport, Caltrain, BART, VTA, major employment centers and other destinations in the area;
5. 1. 4. 2 for people traveling to or from the hotel related to using the Project' s meeting rooms for functions; and
5. 1. 4. 3 subjectto availability, for nearby residents,businessesand the j generalpublic to travel between the hotel and areadestinations.
5. 1. 5 MeetingRooms. Developershallallow City to usetheProject'smeeting j rooms on a complimentary basis for official City businesspurposes ("Meeting Room Benefit").
The City shall requestreservationsfor the Meeting Room Benefit at leastfifteen ( 15) days in advanceof any proposeduse, and there shall be no capson the amount of suchuse. Suchuse shall be subject to availability, but an existing City reservation cannot be canceled in favor of a paying user. Catering servicesfor suchusesshall be made available at atwenty-five percent 25%) discount from regular charges (provided, however, that to the extent the discount results in a chargelessthan the actual costsof the catering services,user shall be required to pay the actual costs),buttheuserwill notberequiredto usetheProject'scatering.
5. 1.6 ReducedRates. Subject to availability, Developer shall establisha program to rent rooms in the hotel at a reducedrate to people visiting Cupertino for official businesswith City, andto dignitaries visiting for City purposesand events ("Reduced Rate Benefit Program"). The program shall be subject to approval by the City Manager in his/her reasonablediscretion and shall include hotel ratesat leastten percent( 10%) lower than the hotel' s lowest rate otherwise offered by the hotel through its available annual discount programs.
In eachcasethe City Manager shall confirm that a visitor qualifies for the ReducedRate Benefit, andthe City Managermay from time to time provide a list of personswho arepre-qualified. i
5. 1.7 Internships. Developer shall offer non-paid educational internships for students from Fremont Unified High School District, De Anza College or other local colleges interestedin careersin the hospitality industry(" Internships"). Subjectto hotel staffing needs andthe availability of trained supervisors, internships shall be available to betweenone and five studentsat a time, during the summer and during the school year. Developer retains flexibility in arranging the duration of Internships, and anticipates 10-week terms involving 10-20 hours per week of onsite work that will provide a varied, interesting and educational experiencein the Project' s hotel, catering, meeting and other activities. Developer shall solicit applications from local schools; first preferencefor at least one-half of the Internships at any given time shall be given to City of Cupertino residents.
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5. 2 TransientOccupancyTaxRequirement. In considerationof therightsand benefitsconferredby City to Developerunderthis Agreement, andin recognitionthatthe transient occupancy tax (" TOT") to begeneratedby thehotelis asignificantincentivefor City to enterinto this Agreement, anyhotelor similarbusinessoperatingonthePropertyshallabide bytheprovisionsofCaliforniaRevenueandTaxationCodesection7280, MunicipalCode section 3.12 and any other applicable law (collectively, " TOT Law"), as they may changefrom time to time, so asto assurethat the TOT may be collected from eachperson occupying aroom at the hotel (" TOT Requirement"). Without limiting theforegoing, to the extentpermittedby law Developershallnot allow anypersonto occupyaparticularroomfor longerthanthirty consecutivecalendardays, countingportionsof daysasfull days, andshallrequireanyperson desiringtostaylongertocheckoutandcheckbackin, orotherwiseasmayberequiredbythe TOTLaw, soastopreservetheabilityto collecttheTOTfromsuchperson. Developershall collecttheTOTfromallpersonsunlesssuchpersonhasbeenexemptedby Cityandhas documentedsuchexemptionasmayberequiredby theTOT Law. Developershallchargethe TOTattherateadoptedby City, asit maychangefromtimetotime, andremittheTOTtoCity asrequiredbyCityregulations. Totheextentthatanyperson'sstayextendsbeyondthetime allowed under the TOT Law for collection of TOT, so that Developer may no longer collect TOT for theadditionaldays, DevelopershallpayCity anamountequivalentto theTOT thatotherwise might have been collected ( the" TOT In- lieu Payment"), remitted along with TOT collected.
5. 3 Upscale Hotel. Developer hasrepresentedto City that the Project will provide a facility describedasan"upperupscaleboutiquehotel", which City interprets in part to meanthat thehotelwill chargehigherratesandwill providebetteramenitiesthanmosthotels, whichin turnmeansthatthehotelwill generatemoreTOTandaddto Cupertino'sprestige. Cityhas relied on this characterization and benefits as an incentive to enter into this Agreement.
Therefore, anyhotelorsimilarbusinessoperatingonthePropertyshallmeetorexceedthe standardsto qualifyas"UpperUpscale" aspromulgatedby SmithTravelResearch("STR"), or if theSTRratingsystemno longeris availablethenanothersimilarsourceof hotelrating mutuallyacceptableto theParties (the "Minimum Hotel Standard").
5. 4 OngoingObligations. Thefollowing publicbenefitobligationsareongoing obligationsthatshallcontinuein effectduringandaftertheTermof this Agreementandafter termination of this Agreement in accordancewith the following criteria, and the ongoing nature of the obligations shall be memorialized in one or more recordeddocuments binding on the Propertyanditsuses, theform(s) ofwhichshallbepreparedandmutuallyagreeduponbythe Partiesno later than and asa condition to issuanceof the first Building Permit for the Project collectively, the" Public Benefits Covenants").
5. 4. 1 TheTDM Programshallremainin effectsolong asandwheneverahotel or otherbusinessoperatesontheProperty; provided, achangein thetypeof businessmay require changesto the TDM Program asneededto recognize different transportation-related effects and needs.
5. 4. 2 Paymentof the Annual TMA Fee, once started, shall continue so long as theTMA is in existence, solong asandwheneverahotelor otherbusinessoperatesonthe Property.
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5. 4. 3 ThePreferentialEmploymentProgramshallremainin effectsolong as andwhenever a hotel or other businessoperateson the Property. i
5. 4. 4 The Shuttle Service, Reduced Rate Benefit, Internships, TOT Requirement including the TOT In- lieu Payment), Meeting Room Benefit and Minimum Hotel Standard shall remain in effect so long as and whenevera hotel or similar type of businessoperateson the 1 Property.
5. 5 Cityof f Cupertino Business License. Developer, at its expense, shall obtain and maintain a City of Cupertino businesslicense at all times, and shall include aprovision in all 1 generalcontractor agreementsfor the Project requiring eachsuchgeneralcontractor to obtain and maintain a City of Cupertino businesslicense during performance of the work of construction.
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5. 6 SalesTax Point of SaleDesignation. Developer shall use good faith, diligent efforts to the extent allowed by law to require all personsand entities providing bulk lumber, concrete, structural steel andpre-fabricated building components, suchasroof trusses, to be used in connection with the construction and development of, or incorporated into, the Project, to ( a) obtain a usetax direct payment permit; ( b) elect to obtain a subcontractorpermit for thejob site of a contract valued at Five Million Dollars ($ 5,000,000) or more; or ( c) otherwise designate the Property asthe place of useof material usedin the construction of the Project in order to have the local portion of the salesandusetax distributed directly to City insteadof through the 1 county-wide pool. Developer shall instruct its generalcontractor(s) for the Project to, and shall causesuchgeneralcontractor(s) to instructits/their subcontractorsto, cooperatewith City to ensurethelocal sales/usetax derivedfrom constructionof theProjectis allocatedto City to the fullest extent possible. To assist City in its efforts to ensure that such local sales/use tax is so dlallocatedto City, Developer shall on an annual basis, or more frequently upon City' s request, provide City with suchinformation asshall be reasonablyrequestedby City regarding subcontractors working on the Project with contracts in excess of the amount set forth above, including a description of all applicable work and materials andthe dollar value of such subcontracts, and, if applicable, evidence of their designation, such as approvals or applications for thedirectpaymentpermit, of City astheplaceof useof suchwork andmaterials. City may usesuchinformation to contact eachsubcontractorwho may qualify for local allocation of use taxes to City.
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ARTICLE 6
ANNUAL REVIEW
6. 1 Annual Review.
6. 1. 1 Purpose. As requiredby CaliforniaGovernmentCodesection65865.1 and Municipal Code section 19. 144. 060( H), City andDevelopershallreviewthis Agreementand allactionstakenpursuanttothetermsof thisAgreementwithrespectto thedevelopmentof the Projecteverytwelve (12)monthsto determinegoodfaith compliancewith this Agreement.
Specifically, City's annualreviewshallbeconductedfor thepurposesof determining compliancebyDeveloperwithitsobligationsunderthisAgreementanddocumentthestatusof Project development. Annual review shall continue after the Term, so City may determine compliancewith theongoingpublicbenefitobligationsdescribedin Article 5.
6. 1. 2 Conduct of Annual Review. The annual review shall be conducted as providedin thisSection6.1.2. ByDecember1stof eachyear, Developershallprovide documentationof itsgoodfaithsubstantialcompliancewiththisAgreementandthetermsof the PublicBenefitsCovenantsduringthepreviouscalendaryear, includingacompletedAnnual ReviewFormin theform providedin Exhibit F andsuchotherinformationasmayreasonably berequestedbytheCityManager. If theCityManagerfindsgoodfaithcomplianceby Developer with the terms of this Agreement and the Public Benefits Covenants,Developer shall benotifiedinwritingandthereviewforthatperiodshallbeconcluded. If theCityManageris not satisfiedthatDeveloperis performingin accordancewith thetermsandconditionsof this Agreement or one or more of the Public Benefits Covenants, the City Manager shall prepare a writtenreportspecifyingwhy theDevelopermaynotbein goodfaith compliance, referthe matterto theCityCouncil, andnotifyDeveloperin writingatleastfifteen(15)businessdaysin advanceof thetime atwhichthematterwill beconsideredby theCity Council. Thisnoticeshall includethetime andplaceof theCity Council'spublichearingto evaluategoodfaith compliance with thisAgreementandthePublicBenefitsCovenants, a copyof theCity Manager'sreportand recommendations, if any, andanyotherinformationreasonablynecessaryto inform Developer of thenatureoftheproceeding. TheCityCouncilshallconductapublichearingatwhich Developer must submit evidencethat it has complied in good faith with the terms and conditions of this Agreement and the Public Benefits Covenants. Developer shall be given an opportunity tobeheardatthehearing. Thefindingsof theCityCouncilonwhetherDeveloperhascomplied in goodfaithfortheperiodunderreviewshallbebaseduponsubstantialevidencein therecord.
If theCityCouncildetermines,baseduponsubstantialevidence,thatDeveloperhascompliedin goodfaithwiththetermsandconditionsof thisAgreementandthePublicBenefitsCovenants, thereviewforthatperiodshallbeconcluded. If theCityCouncildetermines,basedupon substantialevidencein the record, that Developer hasnot complied in good faith with one or more terms and conditions of this Agreement or the Public Benefits Covenants, or there are significantquestionsasto whetherDeveloperhassubstantiallycompliedin goodfaith, theCity Council, atits option,maycontinuethehearingandmaynotify Developerof theCity'sintentto meet andconfer with Developer within thirty( 30) days of suchdetermination, prior to taking furtheraction. Followingsuchmeeting,the City Councilshallresumethehearingin orderto further consider the matter andto make a determination regarding Developer' s good faith compliance. In theeventtheCity CouncildeterminesDeveloperis not in goodfaith compliance 19 OAK# 4820- 8554- 1516 v2
with the terms and conditions of this Agreement, City may give the Developer a written Notice of Breach, in which casethe provisions of Section 12.1,below, shall apply.
6. 1. 3 Failure to Conduct Annual Review. Failure of City to conduct an annual review shall not constitute a waiver by the City of its rights to otherwise enforcethe provisions of this Agreementnor shallDeveloperhaveor assertanydefenseto suchenforcementby reason of any such failure to conduct an annual review.
6. 1.4 Certificate of Compliance. If, at the conclusion of the annual review describedin Section 6.1.2, the Developer is found to be in good faith compliancewith this AgreementandthePublicBenefitsCovenants, City shall,uponrequestby Developer, issuea Certificate of Compliance(" Certificate") to Developer stating that after the most recent annual reviewandbasedupontheinformationactuallyknownto anappropriateofficial of City specified in such Certificate that: ( a) this Agreement remains in effect( for the remainder of the Term), and ( b) the Developer is not in Default of this Agreement or the Public Benefits Covenants. TheCertificateshallbein arecordableform, shallcontaininformationnecessaryto communicate constructive record notice of the fmding of compliance, and shall statethe j anticipated dateof commencementof the next annual review. Developer may record the Certificate at its sole cost and expensewithout cost or expenseto City.
ARTICLE 7
COOPERATION AND IMPLEMENTATION
7. 1 Subsequent Approvals. Certain subsequent land use approvals, entitlements, and permits other than the Existing Approvals, will be necessaryor desirablefor implementation of the Project (" Subsequent Approvals"). The Subsequent Approvals may include, without limitation, thefollowing: amendmentsof theExistingApprovals, demolitionandgrading permits, excavationpermits,buildingpermits, designreviewpermits, signpermits, sewerand water connectionpermits, encroachmentpermits, certificates of occupancy, lot line adjustments or lot merger, site plans, developmentplans, land useplans, building plans and specifications, andanyamendmentsto, or repealingof, anyof theforegoing. Exceptasotherwiseexpressly provided herein, the City shall not impose requirements or conditions upon the development and constructionof theProjectthatareinconsistentwith theExistingApprovals, includingtheterms and conditions of this Agreement, and any SubsequentApprovals asmay be obtained from time to time.
7. 2 Scopeof Reviewof SubsequentApprovals. City, in approvingtheExisting Approvals andvesting the Project through this Agreement, is limiting its future discretion with respectto the Project and SubsequentApprovals to determining whether the application for a SubsequentApprovalis consistentwith andmeetsthecriteriasetforthin theApplicableCity Regulations, ExistingApprovals, andwhereapplicable, otherProjectApprovalspreviously S
granted. Subject to the foregoing, City reservesdiscretion to impose appropriateExactions in connectionwith issuanceof SubsequentApprovals, asnecessaryto bringthe Subsequent Approvalinto compliancewith ApplicableLaw andExistingApprovals. At suchtime asany SubsequentApproval applicable to the Property is approvedby City, then such Subsequent Approval shall become subject to all the terms and conditions of this Agreement applicable to 20 OAK# 4820- 8554- 1516 v2
ProjectApprovalsandshallbeautomaticallyvestedandtreatedasa" ProjectApproval"under this Agreement.
7. 3 ProcessingApplications for SubsequentApprovals.
7. 3. 1 Timely Submittalsby Developer. DeveloperacknowledgesthatCity cannotbeginprocessingapplicationsfor SubsequentApprovalsuntilDevelopersubmits completeapplicationsonatimely basis. Developershallusediligentgoodfaith effortsto a)providetoCityin atimelymanneranyandalldocuments, applications,plans, andother informationnecessaryfor City to carryoutits obligationshereunder; and (b) causeDeveloper's planners, engineers, andallotherconsultantstoprovidetoCityinatimelymannerallsuch documents, applications, plansandothermaterialsrequiredunderApplicableLaw. It isthe expressintentof DeveloperandCity to cooperateanddiligently work to obtainanyandall Subsequent Approvals.
7. 3. 2 Timely Processingby City. Upon submissionby Developerof all appropriateapplicationsandProcessingFeesfor anypendingSubsequentApproval, City shall, to thefull extentallowedby ApplicableLaw,promptly anddiligently, subjectto City ordinances,policiesandproceduresregardinghiringandcontracting, commenceandcomplete allstepsnecessaryto actonDeveloper'scurrentlypendingSubsequentApprovalapplications including: ( a)providingatDeveloper'sexpenseandsubjecttoDeveloper'srequestandprior approval, reasonableovertimestaffassistance, additionalstaffand/or staffconsultantsfor concurrent, expeditedplanningandprocessingof eachpendingSubsequentApproval application; (b) if legallyrequired,providingnoticeandholdingpublichearings; and(c) acting onanysuchpendingSubsequentApprovalapplication. Tothegreatestextentpermittedbythe ExistingApprovalsorApplicableLaw, SubsequentApprovalswill beprocessedadministratively byCitystaff. Developer'sobligationtopayfortheprocessingof SubsequentApprovals, includingstafftime,materialsandthird-partyconsultants, shallbebasedontheCity'sactualout- of-pocketcosts,plus afifteenpercent(15%)markup of consultant costs, per existing policy, to coverCity'scostsofmanagingsuchthird-partyconsultantsandadministeringtheircontracts.
7. 3. 3 CEQA. In connection with its consideration and approval of Existing Approvals,theCitypreparedandadoptedtheN4ND, whichevaluatedtheenvironmentaleffects of theExistingApprovalsfor theProject, andhasadoptedmitigationmeasuresto reducethe significant environmental effects therefrom. The Parties acknowledge that certain Subsequent ApprovalsmaylegallyrequireadditionalanalysisunderCEQA. Nothingcontainedin this Agreementis intendedto preventor limit theCity from complyingwith CEQA. In actingon SubsequentApprovals, City will rely ontheMND to thefullest extentpermissibleby CEQA as determinedby Cityin theexerciseofitsindependentjudgment. Intheeventadditional environmental review is required for a SubsequentApproval, City shall limit suchadditional review to the scopeof analysismandatedby CEQA and shall not adopt new mitigation measures exceptaslegallyrequired, all asdeterminedbytheCityastheleadagencyunderCEQAin the exercise of its independent judgment.
7. 4 Other Agency SubsequentApprovals; Authority of City. City shall cooperate with Developer, to theextentappropriateandaspermittedby ApplicableLaw, in Developer's effortsto obtain, asmayberequired, OtherAgencySubsequentApprovals. Notwithstandingthe 21 OAK# 4820- 8554- 1516 v2
issuanceto Developerof OtherAgencySubsequentApprovals, DeveloperagreesthatCity shall have the right to review, modify, approveand/or reject any and all submissionssubject to the Other Agency SubsequentApprovals which, but for the authority of the other governmental or quasi-governmental entities issuing the Other Agency SubsequentApprovals, would otherwise requireCity approval. DeveloperagreesthatCity mayreview, modify, approveand/or reject any suchmaterials or applications to ensureconsistencywith this Agreement and the Project ApprovalsandDevelopershallincorporateanyandall changesrequiredby City prior to submitting suchmaterials and applications to the other governmental or quasi-governmental entities for review and/ or approval.
ARTICLE 8
AMENDMENT OF AGREEMENT AND PROJECT APPROVALS
8. 1 Amendmentby Written Consent. Exceptasotherwiseexpresslyprovidedherein including Section 6.1relating to City' s annual review and Section 12.3 relating to termination in theeventof abreach),this Agreementmaybeterminated, modifiedor amendedonly by mutual written consent of the Parties hereto or their successors in interest or assignees and in accordance with the provisions of Government Code sections 65967, 65867.5 and65868.
8. 2 Project Approval Amendments. To the extent permitted by Applicable Law, ProjectApprovalsmay, from timeto time,be amendedin thefollowing manner:
8. 2. 1 Administrative Project Amendments. Upon Developer' s written request for anamendmentor modificationto theProjectApprovalsor SubsequentApprovals, theCity Manager shall determine: ( i) whether the requested amendment or modification is minor when I considered in light of the Project as a whole; and( ii) whether the requested amendment or modificationis consistentwith this AgreementandApplicableLaw. If theCity Manageror his/her designeefinds, in his or her sole discretion, that the proposedamendmentor modification is minor, consistent with this Agreement and Applicable Law, and will result in no new significant impacts not addressed and mitigated in the MND, the amendment or modification shall be determined to be an" Administrative Project Amendment" and shall not require an amendmentto this Agreement. Upon the City Manager's approval, any Administrative Project Amendment shall be automatically incorporated into the applicable Project Approvals and this Agreement. Without limiting the foregoing, andby way of example, after City approval of the Existing Approvals, Developer requests for lot line adjustments, minor changes in improvement plans, minor changesin land usesinvolving minimal acreage,minor alterations in vehicle circulationpatternsor vehicleaccesspoints,minor changesin theamountof parkingandparking layout, changesin pathwayalignments, substitutionsof comparablelandscapingfor any landscapingshownonanyfinal developmentplanor landscapeplan, variationsin thelocationof structuresthat do not substantially alter the infrastructure connectionsor facilities that do not substantiallyalterthedesignconceptsof theProject, andminor adjustmentsto the SiteMap or Property Description may be treated asAdministrative Project Amendments.
8. 2. 2 Major Project Amendments. Any amendmentto the Project Approvals which is determined not to be an Administrative Project Amendment as set forth above in Section 8.2. 1 shall be deemed a" Major Project Amendment." A Major Project Amendment shall be processedin the samemanner and require the sameapprovals asthe original Project 22 OAK# 4820- 8554- 1516 v2
Approval, including, wheresorequired, giving of noticeandapublic hearingbeforethe PlanningCommissionandCityCouncilin accordancewith ApplicableLaw. TheCityManager or his or her designeeshall have the authority to determine if an amendmentis a Major Project Amendment subject to this Section 8.2.2 or an Administrative Project Amendment subject to Section 8. 2. 1.
8. 3 Amendment of this Agreement. This Agreement may be amendedfrom time to time, in wholeor in part, by mutualwritten consentof thePartiesor their successorsin interest, as follows:
8. 3. 1 Administrative Agreement Amendments. Any amendment to this Agreement which doesnot substantially affect( a) the Term; (b) permitted usesof the Property; c)provisionsfor thereservationor dedicationof land; (d) conditions, terms, restrictions or requirements for Subsequent Approvals; ( e) increasesin the density or intensity of the use of the Propertyor themaximumheightor sizeof proposedbuildings; (f) monetary contributions by Developer; or(g) theprovisionof publicbenefitsdescribedin Article5, shallbedeemedan Administrative Agreement Amendment" and the City Manager or his or her designee, except to theextentotherwiserequiredby ApplicableLaw, mayapprovetheAdministrativeAgreement Amendment without notice andpublic hearing.
8. 3. 2 Major Agreement Amendments. Any amendmentto this Agreement which is determined not to be an Administrative Agreement Amendment as set forth abovein Section 8.3.1 shall be deemeda" Major Agreement Amendment" and shall require giving of noticeandapublichearingbeforethePlanningCommissionandCityCouncilin accordance with ApplicableLaw. TheCity Managerorhis or herdesigneeshallhavetheauthorityin heror her sole discretion to determine if an amendment is a Major Agreement Amendment subject to this Section 8.3.2 or an Administrative Agreement Amendment subjectto Section 8.3.1.
8. 3. 3 Requirement for Writing. No modification, amendment or other change to thisAgreementor anyprovisionhereofshallbeeffectivefor anypurposeunlessspecificallyset forth in awriting whichrefersexpresslyto this Agreementandis signedby duly authorized representativesof both Partiesor their successorsin interest. A copy of any changeshall be providedto theCity Councilwithin thirty( 30) daysof its execution.
8. 4 Amendments to Development Agreement Statute. This Agreement hasbeen enteredinto in relianceupontheprovisionsof theDevelopmentAgreementStatuteasthose provisionsexistedasof thedateof executionof this Agreement. No amendmentor additionto thoseprovisionswhichwouldmateriallyaffecttheinterpretationorenforceabilityofthis Agreement shall be applicable to this Agreement, unless suchamendmentor addition is specificallyrequiredbytheCaliforniaStateLegislature, orismandatedby acourtof competent jurisdiction. If suchamendmentorchangeispermissive(asopposedtomandatory), this Agreementshallnotbe affectedby sameunlessthePartiesmutuallyagreein writing to amend this Agreement to permit suchapplicability.
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ARTICLE 9
INSURANCE, INDEMNITY AND COOPERATION IN THE EVENT OF
LEGAL CHALLENGE
9. 1 Insurance Requirements. Prior to commencement of construction activities including demolition) and through completion of all construction activities for the Project, Developer shall procure andmaintain, or causeits contractor(s) to procure andmaintain, a commercial generalliability policy in an amount not less than Five Million Dollars ($ 5, 000, 000) combined single limit, including contractual liability together with a comprehensiveautomobile liability policy in the amount of Two Million Dollars ($2, 000, 000), combined single limit. Such policy or policiesshallbewritten on anoccurrenceforin. Developer'sinsuranceshallbeplaced with insurerswith acurrentA.M. Best'sratingof nolessthanA-:VII or aratingotherwise approvedby the City in its sole discretion. Developer shall furnish at City' s requestappropriate certificate(s) of insuranceevidencingtheinsurancecoveragerequiredhereunder, andCity Parties j shall be namedasadditional insured parties in suchpolicies. The certificate of insurance shall s contain a statementof obligation on the part of the carrier to notify City of any material change, cancellation or termination of the coverageat leastthirty( 30) days in advanceof the effective dateof any suchmaterial change, cancellation or termination( ten( 10)days advancenotice in the caseof cancellationfor nonpaymentof premiums) wheretheinsurancecarrierprovidessuch noticetotheDeveloper. Coverageprovidedhereunderby Developershallbeprimaryinsurance andshall not be contributing with any insurance, self-insuranceor joint self-insurance maintainedby City, andthepolicy shallcontainsuchanendorsement. Theinsurancepolicy or theendorsementshallcontainawaiverof subrogationfor thebenefitof City. 1 i
9. 2 Indemnity and Hold Harmless. Developer shall indemnify, defend( with counsel reasonablyacceptableto City) andhold harmlessCity Parties from and againstany and all Claims,includingClaimsfor anybodily injury, death, or propertydamage, resultingdirectly or indirectly from the development or construction of the Project and, if applicable from compliance with the terms of this Agreement, and/or from any other actsor omissions of Developer under this Agreement, whether such actsor omissions areby Developer or any of Developer's contractors, subcontractors, agentsor employees; provided that Developer' s obligation to indemnify and hold harmless (but not Developer' s duty to defend) may be limited to the extent such Claims are found to arise from the active negligence or willful misconduct of any City Party. This Section 9.2 includes any and all presentand future Claims arising out of or in anyway connectedwith Developer's or its contractors' obligationsto complywith any applicable StateLabor Coderequirements andimplementing regulations of the Department of 1 Industrial Relations pertaining to "public works"( collectively, " Prevailing Wage Laws"), includingall claimsthatmaybemadeby contractors, subcontractorsor otherthird party claimants pursuant to Labor Code sections 1726 and 1781. Developer' s obligations under this Section 9.2 shall survive expiration or earlier termination of this Agreement.
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9. 3 DefenseandCooperationin theEventof aLitigation Challenge. City and Developershallcooperatein thedefenseof anycourtactionor proceedinginstitutedby athird parryor othergovernmentalentityor official challengingthevalidity of anyprovisionof this Agreement, or the Project Approvals (" Litigation Challenge"), and the Partiesshall keep each otherinformedof all developmentsrelatingto suchdefense, subjectonly to confidentiality requirements that may prevent the communication of such information. To the extent Developer 24 OAK 94820- 8554- 1516 v2
desires to contest or defend such Litigation Challenge, ( a) Developer shall take the lead role defendingsuchLitigationChallengeandmay, in its solediscretion, electtoberepresentedbythe legal counsel of its choice, with the costs of such representation, including Developer' s administrative,legalandcourtcosts, paidsolelyby Developer; (b) City may, in its sole discretion, electto beseparatelyrepresentedby thelegalcounselof its choicein anysuchaction orproceedingwiththecostsof suchrepresentationincludingCity'sadministrative, legal, and courtcostsandCity Attorneyoversightexpenses, paidby Developer; and(c) Developershall indemnify, defend, andholdharmlessCityPartiesfromandagainstanydamages, attorneys' fees or costawards, includingattorneys' feesawardedunderCodeof Civil Proceduresection1021.5, j assessedor awardedagainstCity by way ofjudgment, settlement,or stipulation. Any proposed settlementof aLitigation Challengeshallbe subjectto City's andDeveloper'sapprovalnot to be unreasonablywithheld, conditionedordelayed. If thetermsoftheproposedsettlementwould constitute an amendmentor modification of this Agreement or any Project Approvals, the settlementshall not becomeeffective unless suchamendmentor modification is approvedby CityandDeveloperin accordancewithApplicableLaw, andCityreservesitsfull legislative discretionwith respectto anysuchCity approval. If Developeroptsnotto contestor defend suchLitigation Challenge, City shallhavenoobligationto doso. Developershallreimburse CityforitscostsincurredinconnectionwiththeLitigationChallengewithinten(10)business daysfollowingCity'swrittendemandtherefor, whichmaybemadefromtimetotimeduringthe courseof suchlitigation. Developer' s obligations under this Section 9.3 shall survive expiration or earlier termination of this Agreement.
ARTICLE 10
ASSIGNMENT, TRANSFER AND NOTICE
10. 1 Assignment. Material consideration andincentive for City agreeingto enter into thisAgreementarethosepublicbenefitsdescribedin Article5thataredependentonthe Propertybeingdevelopedandoperatedonalong-termbasisasan"UpperUpscale"hotelas describedin Section 5.3. For that reason, certain restrictions on the right of Developer to assign or transfer its interest under this Agreement with respect to the Property during the Term are necessaryin orderto assuretheachievementof thegoals, objectivesandpublicbenefitsof the Project andthis Agreement. Developer agreesto and acceptsthe restrictions setforth in this Section 10.1 asreasonableand asa material inducement for City to enter into this Agreement.
10. 1.1 Assignment Criteria. Developer shall have the right to sell or transfer its feeinterest, or groundleaseits interestsin theProperty, or conveyor assignor its right to operate ahotelor similarbusinessontheProperty, or enterinto a contractfor operationof ahotelor similarbusiness, to anyperson, partnership,joint venture, firm, company, corporationor other entity( any of the foregoing, an" Assignee") subject to the written consentof City, which shall notbeunreasonablywithheld, delayedorconditionedtothereasonablesatisfactionof theCity Manager, if Developer or the Assignee satisfies the following conditions:
10. 1. 1. 1 TheproposedAssigneeprovidesacceptableandverifiable documentationthatit is in thebusinessof developing, owningand/or operating"UpperUpscale" hotels asdescribedin Section 5.3 andhas substantialexperiencein suchhotel operations, such experiencebeingataminimumdeveloping, owningand/oroperatingtwoormoresuchhotels within the preceding ten years;
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10. 1. 1. 2 The proposedAssigneeprovides acceptableand verifiable documentation that it has sufficient financial resources to undertake development and/ or operation of the Property as an" Upper Upscale" hotel and perform the obligations of Developer under this Agreement, including meeting the Public Benefit Covenants;
10. 1. 1. 3 Developer is not in Default under this Agreement or under any Public Benefit Covenant, or the Assignee agreesto cure any Default promptly after the assignment;
10. 1.2 Affiliate Assi ingWent. Notwithstanding the foregoing, Developer may assignits rights under this Agreement without the consentof City( but after providing City the notice andAssignee's assumption agreementpursuant to Section 10.1.3) to any corporation, limited liability company,partnership or other entity which is controlling of, controlled by, or under common control with Developer, and " control," for purposes of this definition, means effective managementand control of the other entity, subjectonly to major eventsrequiring the consent or approval of the other owners of such entity(" Affiliated Party"). j i
10.1.3 Notice. At leastthirty( 30) daysprior to Developer' s desired assignment date, Developer shall provide City with written notice of any proposed transfer or assignment of Developer' s rights or obligations. hereunder( each, an" Assignment") together with such 1 information needed to document satisfaction of the conditions in Section 10. 1 required for an Assignment, and requestCity' s consentto suchAssignment asprovided herein. Each such notice shall be accompanied by evidence of Assignee' s assumption of Developer' s obligations hereunder in the form of Exhibit G, which shall be recorded in the Official Records of Santa Clara County( assumingCity approvesthe Assignment) concurrent with transfer to the Assignee.
City shall provide its written consentor other responsewithin thirty( 30) daysof City' sreceipt of the notice and required documentation.
10.1.4 Paymentof Costs. Developershallpaytheactualcostsborneby City in connectionwith its review of the proposedAssignment, including costsof attorney review.
10. 2 Releaseof Transferring Developer. Except with respectto apermitted transfer and assignmentto an Affiliated Party, notwithstanding any sale, transfer or assignmentof the Property, Developer shall continue to be obligated under this Agreement asto all of the Property sotransferredunless City hasconsentedto the assignmentasprovided aboveand receives and records Assignee' s assumption agreement.
10. 3 Assignment to Financial Institutions or Mortgagee.
10.3.1 Notwithstanding any other provision of this Agreement, Developer may assignall or any part of its rights and duties under this Agreement to any financial institution or Mortgagee from which Developer hasborrowed funds for usein constructing the Project or otherwise developing the Property andneither such assignmentnor the financing shall require consentfrom City; provided, City shall be given notice of suchintended assignmentat leastten businessdaysbeforehand, andbefore such assignmentmay take effect such financial institution or Mortgagee shall give City confirmation acknowledging and agreeingthat its interest in the Property is subjectto this Agreement and,both during and after the Term, to the Public Benefit 26 OAK# 4820- 8554- 1516 Q
Covenants. Developershallprovideacopyof thedeedof trustto City within ten( 10)business days following executionthereof. A conditional assignmentor other transfer by a financial institutionor Mortgageebackto Developeraspartof anyfinancingtransactionshallnotrequire City' s consent.
10.3.2 Any personacquiringtitle or takingpossessionof thePropertyfrom a financial institution or Mortgagee following a foreclosure or deedin lieu of foreclosure must satisfythecriteriafor anAssigneein Section10.1.1, with documentationof suchsatisfaction providedto City beforetransferof title or possession.
10. 4 Successive Assignment. In the event there is more than one Assignment under theprovisionsof thisArticle 10, theprovisionsof this Article 10shallapplyto eachsuccessive Assignment and Assignee.
ARTICLE 11
MORTGAGEE PROTECTION
11. 1 Mortgagee Protection. Neither entering into this Agreement nor a breachhereof shall defeat,render invalid, diminish or impair the lien of any Mortgage made in good faith and for value. Nothingin thisAgreementshallpreventor limit Developer, atits solediscretion, from grantingoneormoreMortgagesencumberingall oraportionof Developer'sinterestin the Propertyor portionthereofor improvementthereonassecurityfor oneor moreloansor other financing,but all of thetermsandconditionscontainedin thisAgreementshallbebindingupon and effective against and shall run to the benefit of Mortgagee who acquires title or possession to theProperty, or anyportionthereof,by foreclosure, trustee'ssale, deedin lieu of foreclosureor otherwise. Any Mortgageshallbe subjectandsubordinateto thePublicBenefitsCovenants, evenif thedocumentextendingthePublicBenefitsCovenantspasttheTermhasnot yetbeen recorded. DevelopershallprovidetheCity with a copyof thedeedof trustor mortgagewithin ten( 10) daysafterits recordingin theofficial recordsof SantaClaraCountysoasto demonstrate its subordination to the Public Benefits Covenants; provided, however, that Developer' s failure to providesuchdocumentshallnot affectanyMortgage, includingwithout limitation,the validity, priority or enforceabilityof suchMortgage.
11. 2 Mortgagee Not Obligated. No Mortgagee( including one who acquires title or possessiontotheProperty, oranyportionthereof,by foreclosure, trustee'ssale, deedin lieuof foreclosureor otherwise) shallhaveanyobligationto constructor completeconstructionof improvements, or to guaranteesuchconstructionor completion; provided,however, thata Mortgagee shall not be entitled to devotethe Property to any useexceptin full compliance with this Agreement and the other Project Approvals nor to construct any improvements thereon or instituteanyusesotherthanthoseusesorimprovementsprovidedfororauthorizedbythis Agreement, or otherwise under the Project Approvals. Except asotherwise provided in this Section 11.2, all of the terms and conditions contained in this Agreement and the other Project Approvalsshallbebindinguponandeffectiveagainstandshallrun to thebenefitof anyperson or entity,includinganyMortgagee, or its transferee, who acquirestitle or possessionto the Property, or any portion thereof.
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11. 3 Notice of Default to Mortgagee. If City receivesa notice from a Mortgagee requesting a copy of any Notice of Default given Developer hereunderand specifying the addressfor service thereof, then City agreesto useits diligent, good faith efforts to deliver to suchMortgagee, concurrently with service thereonto Developer, any Notice of Default given to Developer. Each Mortgagee shall have the right during the sameperiod available to Developer to cure or remedy, or to commence to cure or remedy, the event of Default claimed or the areas of noncompliance set forth in City' s Notice of Default. If a Mortgagee is required to obtain possessionin order to cure any Default, the time to cure shall be tolled so long asthe Mortgagee is attempting to obtain possession, including by appointment of a receiver or foreclosure, but in no event may this period exceed120days from the datethe City delivers the Notice of Default to i Developer.
11. 4 No Supersedure. Nothing in this Article 11 shall be deemed to supersede or release a Mortgagee or modify a Mortgagee' s obligations under any subdivision or public improvement agreement or other obligation incurred with respect to the Project outside this Agreement, nor shall any provision of this Article 11constitute an obligation of City to such I Mortgagee, except as to the notice requirements of Section 11. 3. 9 11. 5 Mortgagee RequestedAmendments. The Parties agreethat they will make reasonable amendments to this Agreement, at the expense of Developer, to meet the requirementsof any lender or Mortgagee for the Project. For the purposesof this Section 11.5, a reasonableamendmentis onethat doesnot relieve Developer of any of its material obligations under this Agreement or impair the ability of the City to enforce the terms of this Agreement.
The Partiesfurther agreethat any reasonableamendmentsto the Mortgagee protection provisions of thisAgreementrequiredto conformto currentindustrypractice, asdeterminedby City, would qualify asanAdministrative Agreement Amendment andmay be processedin accordancewith the provisions of Article 8 of this Agreement.
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ARTICLE 12
DEFAULT; REMEDIES; TERMINATION
12. 1 Breach andDefault. Subject to aPermitted Delay in Section 13.4 or a mutual extensionpursuant to Section 13.11, except as otherwise provided by this Agreement, breach of, fifailure, or delay by either Party to perform any term or condition of this Agreement shall constitute a" Default." In the event of any allegedDefault of any term, condition, or obligation of this Agreement, the Party alleging suchDefault shall give the defaulting Party notice in writing specifyingthenatureof theallegedDefaultandthemannerin which theDefaultmaybe satisfactorily cured ("Notice of Breach"). The defaulting Party shall cure the Default within thirty( 30) days following receipt of the Notice of Breach, provided, however, if the nature of the allegedDefaultis non-monetaryandsuchthatit cannotreasonablybecuredwithin suchthirty 30) day period, then the commencementof the cure within such time period, andthe diligent prosecution to completion of the cure thereafter at the earliestpracticable date, shall be deemed I to be a cure, provided that if the cure is not so diligently prosecutedto completion, then no additional cure period shall be required to be provided. If the alleged failure is cured within the I time provided above, then no Default shall exist and the noticing Party shall take no further action to exercise any remedies available hereunder. If the alleged failure is not cured, then a 28 OAK# 4820- 8554- 1516 Q
Defaultshallexistunderthis Agreementandthenon-defaultingPartymay exerciseanyof the remedies available under this Agreement.
12. 2 Withholdingof Permits. In theeventof a Defaultby Developer, or following.
CitysendingaNoticeof BreachtoDeveloperpursuantto Section12.1aboveandduringthecure periodprovidedtherein, uponafindingbytheCityManagerthatDeveloperisin breach, City shallhavetheright to refuseto issueanypermitor otherSubsequentApprovalto which Developer would otherwise have been entitled pursuant to this Agreement until suchDefault or breachis cured. Thisprovisionis in additionto andshallnotlimit anyactionsthatCity maytake j to enforce the conditions of the Project Approvals.
12. 3 Termination. In the event of a Default by a Party, the non-defaulting Party shall have the right to terminate this Agreement upon giving notice of intent to terminate pursuant to Government Code section 65868 and regulations of City implementing such section. Following notice of intent to terminate, the matter shall be scheduled for consideration and review in the manner set forth in Government Code section 65867 and City regulations implementing said section. Followingconsiderationof the evidencepresentedin saidreviewbeforetheCity Council, aPartyallegingDefaultby theotherPartymaygivewrittennoticeof terminationof this Agreement to the other Party. Termination of this Agreement shall be subject to the provisionsof Section12.9 hereof.
12. 4 Specific Performance for Violation of a Condition. If City issues a Project ApprovalpursuanttothisAgreementin relianceuponaspecifiedconditionbeingsatisfiedby Developer in the future, andif Developer then fails to satisfy such condition, City shall be entitledto anawardof specificperformancefor thepurposeof causingDeveloperto satisfysuch condition.
12. 5 Legal Actions.
12. 5. 1 Institution of Legal or Equitable Actions. In addition to any other rights or remedies, a Party may institute legal or equitable action for mandamus, specific performance or other injunctive or declaratory relief to cure, correct or remedy any Default, to enforce any covenantsor agreementsherein, to enjoin any threatenedor attemptedviolation thereof, or to obtainanyotherremediesconsistentwith thepurposeandtermsof this Agreement. Any such legal action shall be brought in the Superior Court for SantaClara County, California, except for actions that include claims in which the Federal District Court for the Northern District of the Stateof Californiahasoriginaljurisdiction, in which casetheNorthernDistrict of theStateof California shall be the proper venue.
12.5.2 Acceptance of Service of Process. In the event that any legal action is commencedbyDeveloperagainstCity, serviceofprocessonCityshallbemadebypersonal serviceupontheCity Clerkof City or in suchothermannerasmaybeprovidedby law. In the eventthatanylegalactionis commencedby City againstDeveloper, serviceof processon Developershallbemadeby personalserviceuponDeveloper'sGeneralCounsel, Developer's registeredagentfor serviceof process, or in suchothermannerasmaybeprovidedby law. 29 OAK# 4820- 8554- 1516 v2
12. 6 Rights and Remedies Are Cumulative. The rights and remedies of the Parties are cumulative, andtheexerciseby aPartyof oneor moreof suchrightsor remediesshallnot precludetheexercisebyit, atthesameordifferenttimes, of anyotherrightsorremediesforthe sameDefaultor anyotherDefaultby theotherParty, exceptasotherwiseexpresslyprovided herein.
12. 7 No Damages. In no event shall a Party, or its boards, commissions, officers, agentsor employees,beliablein damagesfor anyDefaultunderthisAgreement, it being expresslyunderstoodandagreedthatthesolelegalremedyavailableto aPartyfor abreachor violation of this Agreement by the other Party shall.be an action in mandamus, specific performanceorotherinjunctiveordeclaratoryreliefto enforcetheprovisionsof thisAgreement 1 bytheotherParty, ortoterminatethisAgreement. Thislimitationondamagesshallnotpreclude actionsby aPartyto enforcepaymentsof moniesor feesor theperformanceof obligations requiringanobligationof moneyfrom theotherPartyunderthetermsof this Agreement including,but not limited to, obligationsto paytheCommunityAmenityPayment,AnnualTMA Fee, attorneys' fees and obligations to advance monies or reimburse monies. In connection with theforegoingprovisions, eachPartyacknowledges, warrantsandrepresentsthatit hasbeenfully informed with respectto, andrepresentedby counselof suchParty's choice in connection with, therightsandremediesof suchPartyhereunderandthewaivershereincontained, andaftersuch adviceandconsultationhaspresentlyandactuallyintended,with full knowledgeof suchParty's rights andremediesotherwise available at law or in equity, to waive and relinquish suchrights andremediesto the extent specified herein, andto rely solely on the remediesprovided for herein with respectto any breach.of this Agreement by the other Party.
12. 8 Resolution of Disputes. With regard to any dispute involving the Project, the resolutionof whichis notprovidedfor by thisAgreementor ApplicableLaw, aPartyshall, atthe requestof anotherParty,meetwith designatedrepresentativesof therequestingPartypromptly following its request. ThePartiesto anysuchmeetingsshallattemptin goodfaith to resolveany such disputes. In the event the Parties are unable to resolve the issue and reach an agreement within thirty( 30) days, eitherPartymayinitiatenon-bindingmediationof the disputeby submittingarequestto theotherParty. ThePartieswill selectamutuallyacceptablemediator with knowledgeandexperiencein projectdevelopmentandconstructionissuesof thetypeat issue,within fourteen (14) days, or if unable to agreeon a mediator within saidperiod, either partymaysubmitthematterto mediationatJAMS or othermediationservicemutually acceptableto the Partiesin accordancewith its then applicable rules andpolicies, with eachParty beingresponsibleforitsownfees, costsandexpensesof anymediation, includingfifty percent 50%) of the mediator' s fees, costs and expenses The Parties will take all practicable steps to completeanymediationwithin ninety(90) days. Nothingin this Section12.8 shallin anyway be interpreted asrequiring that Developer or City reach agreementwith regard to thosematters beingaddressed, nor shalltheoutcomeof thesemeetingsbebindingin anywayon City or Developerunlessexpresslyagreedto in writing by thePartiesto suchmeetings.
12. 9 Surviving Provisions. In the event this Agreement is terminated, neither Party shallhaveanyfurtherrightsor obligationshereunder, exceptfor thoseobligationsof Developer whichby theirtermssurviveexpirationorterminationhereof,includingbut notlimited to those obligations set forth in Sections 9.2 and 9.3.
30 OAK# 4820- 8554- 1516 v2
ARTICLE 13
GENERAL PROVISIONS
13. 1 Condemnation. As used herein, " Material Condemnation" means a condemnationof all or a portion of the Property that will have the effect of materially impeding or preventing development of the Project in accordancewith this Agreement and the Project Approvals. In the event of aMaterial Condemnation, Developer may( a) requestthe City to amend this Agreement in accordance with the Development Agreement Statute and/ or to amend the Project Approvals, which amendmentshall not be unreasonablywithheld; ( b) decide, in its sole discretion, to challenge the condemnation; or( c) request that City agree to terminate this Agreement by mutual agreement, which agreementshall not be unreasonablywithheld, by giving a written request for termination to the City. If the condemnation is not a Material Condemnation, Developer shall have no right to requesttermination of this Agreement pursuant to this Section 13.1. Nothing in this Agreement shall be, or deemed to be, any waiver or release by Developer of any compensationor damagesawardedpursuant to a Material Condemnation.
13. 2 Covenants Binding on Successors and Assigns and Run with Land. Except as otherwise more specifically provided in this Agreement, this Agreement and all of its provisions, rights, powers, standards, terms, covenantsand obligations, shall be binding upon the Parties and their respective successors (by merger, consolidation, or otherwise) and assigns, lessee, and all other personsor entities acquiring the Property, or any interest therein, whether by operation of law or in any manner whatsoever, and shall inure to the benefit of the Parties and their respective successorsand assigns, asprovided in Government Code section 65868.5, and shall be enforceableasequitable servitudesand constitute covenantsrunning with the land pursuantto applicable laws.
13. 3 Notice. Any notice, demandor requestwhich may be permitted, required or desiredto be given in connectionherewith shall be given in writing and directed to the City and Developer as follows:
If to the City: City Clerk
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014- 3202
with a copy to: City Attorney
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014- 3202
31 OAK# 4820- 8554- 1516 Q
and a copy to: City Manager
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014- 3202
If to Developer: Cupertino Village LP
c/o Kimco Realty Corporation
Attn: Legal Department
1621- B South Melrose Drive
Vista, CA 92081
with a copy to: Kimco Realty Corporation
Attn: Legal Department
3333 New Hyde Park Road
Suite 100, P. O. Box 5020
New Hyde Park, NY 11042- 0020
Notices to be deemedeffective shall be delivered by certified mail, return receipt requested, or commercialcourier, with deliveryto be effectiveuponverificationof receipt. Any Partymay changeits respectiveaddressfor notices by providing written notice of suchchangeto the other Parties.
13. 4 Permitted Delays.
13.4.1 Performanceby either of the Partiesof an obligation hereundershall be excusedduring anyperiod of Permitted Delay. " Permitted Delay" shall meandelay beyond the reasonablecontrol of a Party causedby an inability to perform causedby( a) calamities, including without limitation earthquakes, floods, and fire; ( b) civil commotion; ( c) riots or terrorist acts; (d) lockouts, strikes or other forms of material labor disputes; ( e) material shortages of labor, equipment, facilities, materials or supplies; ( f) vandalism; ( g) failure of transportation or freight embargos; ( g) vandalism; ( h) condemnation or requisition; ( i) litigation challenge,referendumor initiative; 0) ordersof governmental, civil, military or navalauthority, including any development, water or sewermoratorium; ( k) the failure of any governmental agency,public utility or communication provider to issue a permit, authorization consentor approval required for development, construction, use or operation of the Project or portion thereof within typical, standardor customary timeframes; or( 1)unusually severeweather, but only to the extent that suchweather or its effects (including, without limitation, dry out time) resultin delaysthatcumulativelyexceedtwenty(20) daysfor anywinterseason. A Party's financial inability to perform or obtain financing or adverseeconomic conditions generally shall not be grounds for claiming a Permitted Delay.
13.4.2 The Party claiming a Permitted Delay shall notify the other Party of its intent to claim a Permitted Delay, the specific grounds of the sameand the anticipatedperiod of the Permitted Delay. An extension of time for any such causeshall be for the period of the Permitted Delay and shall commence to run from the time of the commencement of the cause, if 32 OAK# 4820- 8554- 1516 Q
NoticebythePartyclaimingsuchextensionis sentwithinthirty(30) daysofthecommencement of theclaimedcause. If Noticeis sentaftersuchthirty( 30) dayperiod, thentheextensionshall commenceto ranno soonerthanthirty( 30) daysprior to thegiving of suchNotice. Theperiod of Permitted Delay shall last no longer than the conditions preventing performance.
Notwithstandinganyotherprovisionhereoftothecontrary, theTermof thisAgreementshallnot beextendedby theperiodof anyPermittedDelay.
13. 5 Counterparts. This Agreement may be executedin one or more counterparts, each of which shall be deemedanoriginal, but all of which together shall constitute one and the same instrument.
13. 6 Waivers. Notwithstandinganyotherprovisionin this Agreement, anyfailuresor delaysby anyPartyin assertinganyof itsrightsandremediesunderthisAgreementshallnot operateasawaiverof anysuchrightsor remedies, or depriveanysuchPartyof its right to instituteandmaintainanyactionsor-proceedingswhichit maydeemnecessaryto protect, assert or enforceanysuchrightsorremedies. A Partymayspecificallyandexpresslywaivein writing anyconditionorbreachof thisAgreementbytheotherParty,butnosuchwaivershallconstitute afurtheror continuingwaiverof anyprecedingor succeedingbreachof thesameor anyother provision. ConsentbyonePartyto anyactbytheotherPartyshallnotbedeemedtoimply consentorwaiverof thenecessityof obtainingsuchconsentfor thesameor similar actsin the future.
13. 7 Construction of Agreement. All Parties have been represented by counsel in the preparationandnegotiationofthisAgreement, andthisAgreementshallbeconstruedaccording to the fair meaning of its language. The rule of construction to the effect that ambiguities are to beresolvedagainstthedraftingpartyshallnotbe employedin interpretingthis Agreement.
Unless the context clearly requires otherwise, ( a) the plural and singular numbers shall eachbe deemedto include the other; (b) themasculine, feminine, andneuter gendersshall eachbe deemed to include the others; ( c) " shall,"" will," or" agrees"aremandatory, and" may" is permissive; ( d) " or" is not exclusive; ( e) " includes" and" including" arenot limiting; and f) " days" meanscalendardaysunless specifically provided otherwise.
13. 8 Headings. Sectionheadings in this Agreement arefor convenienceonly and are notintendedto beusedin interpretingor construingtheterms, covenants, or conditionsof this Agreement.
13. 9 Severability. If anyterm or provisionof this Agreement, or theapplicationof any termorprovisionof thisAgreementto aspecificsituation, isfoundtobeinvalid, or unenforceable, in wholeor in partfor anyreason, theremainingtermsandprovisionsof this Agreement shall continue in full force and effect unlessan essentialpurpose of this Agreement wouldbedefeatedby lossof theinvalid or unenforceableprovisions, in which caseanyParty deprived of an essential benefit thereunder shall have the option to terminate this Agreement from andaftersuchdeterminationby providingwrittennoticethereofto theotherParty.
13.10 Time is of the Essence. Time is of the essenceof this Agreement. All references to time in this Agreement shall refer to the time in effect in the Stateof California. 33 OAK# 4820- 8554- 1516 v2
13. 11 Extensionof Time Limits. Thetimelimits setforth in this Agreementmaybe extendedby PermittedDelaysor mutualconsentin writing of thePartiesin accordancewith the provisions of this Agreement.
13.12 OtherNecessaryActs. EachPartyshallin goodfaith do all thingsasmay reasonablybe necessaryor appropriateto carry out this Agreement, andthe Project Approvals, and to execute with acknowledgment or affidavit if required and deliver to the other, file or submitall suchfurtherinformation, instrumentsanddocumentsasmaybereasonablynecessary to carry out the purposes and objectives of the Project Approvals and this Agreement and to provideandsecureto theotherPartythefull andcompleteenjoymentof its rightsandprivileges under this Agreement.
13. 13 Signatures. The individuals executing this Agreement representand warrant that they have the right, power, legal capacity, and authority to enter into andto executethis Agreementonbehalfof therespectivelegalentitiesof DeveloperandtheCity.
13.14 Entire Agreement. This Agreement( including all Recitals and all exhibits attachedhereto, eachof which is fully incorporated herein by reference),integrates all of the terms and conditions mentioned herein or incidental hereto, and constitutes the entire understandingof the Partieswith respectto the subject matter hereof, and all prior or contemporaneousoral agreements,understandings, representationsand statements, and all prior 1 written agreements, understandings, representations, and statements are terminated and supersededby this Agreement.
13.15 EstoppelCertificate. Developerorits lendermay, at anytime, andfrom timeto time, deliverwrittennoticeto City requestingCity to certify in writing to Developeror any Mortgagee( a) that this Agreement is in full force and effect; ( b) that this Agreement has not beenamendedor modifiedor, if soamendedormodified, identifyingtheamendmentsor modifications, or terminated or if terminated the subject of termination; ( c) that Developer is not in Defaultoftheperformanceof itsobligations, orif in Default, todescribethereinthenature and extent of any such Defaults; ( d) those obligations under this Agreement that have been satisfied since the date of the last annual review and those obligations under this Agreement that remain unsatisfied; and (e) suchother information or mattersrelating to this Agreement and/or theProjectasmaybereasonablyrequestedby Developer. Developershallpay, within thirty 30) daysfollowing receiptof City' sinvoice, theactualcostsborneby City in connectionwith its reviewof theproposedestoppelcertificate, includingthecostsof attorneyreview. TheCity Manager shall be authorizedto executeany certificate requestedby Developer hereunder. The form of estoppelcertificateshallbein aform reasonablyacceptableto theCity Attorney. The City Managershallexecuteandreturnsuchcertificatewithin thirty( 30)daysfollowing Developer'srequesttherefor. DeveloperandCity acknowledgethatacertificatehereundermay be relied upon by tenants, transferees, investors, partners,bond counsel,underwriters, bond holdersandMortgagees. Therequestshallclearlyindicatethatfailureof theCity to respond within the thirty- day period will lead to a secondand final request. Failure to respondto the second and final request within fifteen( 15) days of receipt thereof shall be deemed approval of the estoppel certificate.
34 OAK# 4820- 8554- 1516 Q
13.16 Recordation of Termination. Upon completion of the Project andDeveloper' s paymentof all ImpactFeesunderArticle4 andDeveloper'scompletionof therequirements, obligationsandpaymentsunderArticle5andrecordationofthePublicBenefitsCovenants, or uponanyearliertenninationof thisAgreementuponthemutualwrittenconsentof thePartiesor asotherwiseexpresslyprovidedherein, awritten statementacknowledgingDeveloper's satisfaction of all obligations under this Agreement or suchtermination, in form and content reasonablysatisfactorytotheParties, shallbeprovidedbyCitytobeexecutedbythePartiesand recordedby CityorDeveloperin theOfficialRecordsof SantaClaraCounty.
13.17 City ApprovalsandActions. Wheneverareferenceis madehereinto anactionor approvaltobeundertakenby City, theCityManagerorhisorherdesigneeis authorizedtoact on behalf of City, unlessspecifically provided otherwise or the context requires otherwise.
13.18 Negation of Partnership. The Partiesspecifically acknowledge that the Project is aprivatedevelopment,thatnoPartytothisAgreementisactingastheagentofanyotherinany respecthereunder, andthateachPartyis anindependentcontractingentitywith respectto the terms, covenantsandconditionscontainedin thisAgreement. Noneof thetermsor provisionsof thisAgreementshallbedeemedto createapartnershipbetweenor amongthePartiesin the businessesof Developer, theaffairsof theCity, or otherwise, or causethemto beconsidered joint venturersor membersof anyjoint enterprise.
13.19 No Third Party Beneficiaries. This Agreement is made and enteredinto for the soleprotectionandbenefitof thesignatoryPartiesandtheirsuccessorsandassigns, including Mortgagees. Nootherpersonshallhaveanyrightof actionbaseduponanyprovisionin this Agreement.
13.20 Governing StateLaw. This Agreement shall be construedin accordancewith the laws of the Stateof California, without referenceto its choice of law provisions.
13. 21 Exhibits. Thefollowing exhibitsareattachedto thisAgreementandarehereby incorporatedhereinbythisreferencefor all purposesasif setforthhereinin full:
Exhibit A: Property Legal Description
Exhibit B: PropertyBoundaryandDepictionof theProject Exhibit C: Description of the Project
Exhibit D: Existing Impact Fees
Exhibit E: TDM Program
Exhibit F: Annual Review Form
Exhibit G: Form of Assignment and Assumption Agreement If therecorderrefusesto recordanyexhibit, theCity Clerkmayreplaceit with asingle sheetbearingtheexhibitidentificationletter, statingthetitleof theexhibit, thereasonit isnot beingrecorded, andthattheoriginal, certifiedbytheCityClerk, isinthepossessionoftheCity Clerkandwill bereattachedto theoriginalwhenit is returnedby therecorderto theCity Clerk.
SIGNATURES ON FOLLOWING PAGE]
35 OAK# 4820- 8554- 1516 v2
IN WITNESS WHEREOF, the City and Developer have executedthis Agreement as of the Effective Date.
r
CITY:
CITY OF CUPERTINO, a municipal corporation
By:
Deborah L. Fang, City Manager
Signature must be notarized]
ATTEST:
1 By:
GraceSchmidt, City Clerk
APPROVED AS TO FORM:
By:
Heather Minner, City Attorney
DEVELOPER:
j
9 CUPERTINO VILLAGE LP,
a California limited partnership
By:
Name:
Its:
1 By:
Name:
Its:
Signatures must be notarized]
f
36 OAK# 4820- 8554- 1516 Q
ACKNOWLEDGMENTS
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
ss
County of
On before me,
Name of Notary)
notarypublic, personallyappeared
whoprovedto meonthebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto the within instrument and acknowledged to me that he/she/they executedthe same in his/her/theirauthorizedcapacity(ies),andthatby his/her/theirsignature(s)ontheinstrumentthe person( s), or the entityuponbehalfof whichtheperson(s) acted, executedtheinstrument.
I certify under PENALTY OF PERJURYunder the laws of the Stateof California that the foregoing paragraphis true and correct.
WITNESS my hand and official seal.
Notary Signature)
Acknowledgments
OAK# 4820- 8554- 1516 v2
15231443. 1
ACKNOWLEDGMENTS
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
ss
County of
On before me,
Name of Notary)
notary public, personally appeared
who proved to me on the basis of satisfactory evidenceto be the person(s) whose name(s) is/are subscribedto the within instrument and acknowledged to me that he/she/they executedthe same in his/her/their authorizedcapacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executedthe instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraphis true and correct.
WITNESS my hand and official seal.
Notary Signature)
Acknowledgments
OAK# 4820- 8554- 1516 v2
15231443. 1
EXHIBIT A
PROPERTY DESCRIPTION
Realpropertyin theCity of Cupertino, Countyof SantaClara, Stateof California, describedas follows:
BEING ALL OF PARCEL THREE AS SAID PARCEL IS DESCRIBED IN THAT CERTAIN GRANT DEED RECORDED ON MARCH 10, 2006 AS DOCUMENT NUMBER 18838564, OFFICIAL RECORDS OF SATA CLARA COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEING A PORTION OF PARCEL A, AS SHOWN ON THAT CERTAIN MAP FILED FOR RECORD IN MAP BOOK 406, PAGE 27, SANTA CLARA COUNTY RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEASTERLY CORNER OF SAID PARCEL A,
THENCE ALONG THE EASTERLY AND SOUTHERLY LINES OF SAID PARCEL A, THE FOLLOWING FOUR COURSES:
SOUTH 001135' 45" WEST, 229. 24 FEET; SOUTHWESTERLY ALONG A TANGENT CURVE TO THE RIGHT WITH A RADIUS OF 37. 50 FEET THROUGH A CENTRAL ANGLE OF 90' 00' 00' FOR AN ARC LENGTH OF 58. 90 FEET; SOUTH 00' 35' 45' WEST, 13. 75 FEET; AND NORTH 89' 24' 15" WEST, 235. 50 FEET TO AN INTERIOR CORNER OF SAID PARCEL A;
THENCE NORTH OY 35' 45" EAST, 274. 79 FEET TO THE NORTHERLY LINE OF SAID PARCEL A; THENCE NORTH 890 24' 02" EAST, 273. 06 FEET ALONG SAID NORTHERLY LINE TO THE TRUE POINT OF BEGINNING.
CONTAINING 74, 979 SQUARE FEET OR 1.7213 ACHES OF LAND, MORE OR LESS.
KIER RIGHT VIL ENGINEERS& SURVEYORS, INC.
JOS H . T O PSON, LS 8121 DATE
4 yyTHU?,q
yS
NO, 81=21 0
OFCA F
Exhibit A
OAK# 4820- 8554- 1516 v2
EXHIBIT B
SITE MAP AND DEPICTION OF PROJECT
LECEN D D. T
s
rye
O'R OFFICIAL RECORD O O
PDB POINT OF BEGINNING No. 8121
RS RECORD OF SAVEY 12- 31- 20 1^ 0'm MAP
T Scale 1
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1 PARCEL A
2z RS 10
I
N8924' 02" E 273, 06'
Ppp
PROPOSEDBUILDING
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cv
C\ i " CN rt o
PARCELTHREE w
18838564 f}. R.
AREA= 1.7213f ACRES
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N89' 24' 15" W 235, 50'
r
50' 35' 45" W
I
13. 75'
PRUNERIDGE AVE.
KIER & WRIGHT EXHIBIT B
DATE FEB. L J
CIVIL ENGINEERS& SURVEYORS, INC. PARCEL THREE
SCALE
II
auk
28SO Coll lor Canyon Road Phmne( 925) 245- 87$ S LEGAL DESCRIPTION Urermore, Callfornla 94551 Fax( 925) 245-- 9795 JOB w. A07208- 1 www, klergrl9ht. rom CUPERTINO, CALIFORNIA SHEET 1 OF 1 Exhibit B
OAK# 4820- 8554- 1516 Q
EXHIBIT C
DESCRIPTION OF PROJECT
Cupertino Village LP, the project applicant, is proposing the Cupertino Village Hotel Project proposedproject') that would involve the construction of a boutique hotel on a 1.72-acre•site.
The site is currently developedwith two commercial buildings, one of which is occupied. The proposedproject would involve demolishing the existing commercial b><xildings andredeveloping the site with a new 185-room boutique hotel, including event meeting rooms, restaurant, and bars. The proposedproject would establisha five- story hotel with below-gradeparking.
The building would have a maximum height of 60 feet, subjectto applicable requirementsin the General Plan.
Exhibit C
OAK N4820- 8554- 1516 v2
EXHIBIT D
EXISTING IMPACT FEES
1. Housing Mitigation Fee— City Code Chapter 19. 172
2. Public Art Contribution— City Code Chapter 19.148
3. Citywide Transportation Impact Fee— City Code Chapter 14.02
4. Parkland Dedication In- lieu Fee— City Code Chapter 13.08 (not applicable becausehotel use is considered non- residential)
Exhibit D
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EXHIBIT E
TDM PROGRAM
1. TDM Management and Marketing Structure
a. Transportation Coordinator. A Transportation Coordinator will be assigned with the authority to implement TDM strategiesandoverseethe managementand marketingof TDM programs. TheTransportationCoordinatorwill beresponsible for developinginformationmaterials, managingtransportationservicesofferedas part of the TDM program (i.e. websites,transit passesetc.), monitoring results, and coordinating with City/ VTA staff and on-site representativesasneeded. The Transportation Coordinator will alsobe responsiblefor providing annualreports on implementation of the TDM strategiesandprograms in coordination with the annual review of the Development Agreement.
2. TDM Program Content
a. TDM Communications. Information on transportation options and/ or links to the appropriatewebsite or appwill be conveyed to all prospective employeeswho receive an offer to work within the Project, to all hotel guests, and to all persons renting meeting rooms (to be made available to meeting attendees). b. Transit Passes. Annual VTA Eco Passes shall be made available to each employee.
c. Transportation Information Boards and Website. The Project will have a location at which employees, guestsandmeeting attendeescanobtain the above information on alternative transportation services. At a minimum, information postedatthesesiteswill includealink to thewebsiteandcontactinformationfor the Transportation Coordinator and Representatives. Information may also include train andbus schedules, information on the 511 Rideshareprogram and transit pass programs.
d. Rideshare Facilitation. The TDM Coordinator or TDM Representative will assist employeesin identifying other employeeswho may be able to carpool to the site together. The TDM Coordinator or TDM Representative will assist with carpool and vanpool formation by finding suitable partners with similar work schedules, origins, and destinations. The TDM Coordinator or TDM Representative will assistthe employeein registering for ridematching servicessuch asthoseoffered by 511.org.
e. Development of Transportation Materials. The Transportation Coordinator will be responsiblefor developing materials that provide information on how to get to and from the site using alternative modes. This may include:
i. Transit passesavailable through transit agencies
Exhibit E
OAK# 4820- 8554- 1516 v2
ii. Walking andbiking routes within the areaincluding estimatedtimes iii. Bike parking facilities available on-site
iv. Links to the schedulesincluding train andbus schedules
3. TDM Design Features and Amenities
a. Bicycle Facilities. At least ten( 10) bike storage spaces will be provided for employees, guestsand visitors in the garage.
b. Bikesharing. Bike sharesystemsprovide a network of public bicycles from self- servicebike sharestations located in different places. Similar to carsharing, members can check out a bicycle, ride to their destination and return the bicycle to anybike sharepod in the system. Bike sharesystemscanprovide real time information on the status of available bikes and empty docks through the web, kiosk andmobile application. A bikeshareprogram will be looked into for the Project in conjunction with other nearby commercial properties. c. Carpool andvanpool spaces. A certain number of parking spacesfor carpool or vanpool vehicles will be provided and canencourageridesharing. Parking spaces will be clearly marked and located in highly visible areas. s
4. TDM Program Compliance.
a. Implementation, Monitoring and Enforcement. Ongoing monitoring is neededto ensurecompliance with the TDM Program, in conjunction with the project design featuresandproximity to transit. As aresult of periodic review, this TDM Program may be modified, with the prior approval of the City Planning Director, from time to time to include alternate equally or more effective measures. If a TMA is formed and the Project is part of the TMA, the City Planning Director shall, annually, review the TDM Program to minimize duplicative efforts that are provided by the TMA.
i
i
Exhibit E
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EXHIBIT F
ANNUAL REVIEW FORM
TO BE SUBMITTED BYDECEMBER 1STOF EACH YEAR)
This Annual Review Form is submitted to the City of Cupertino (" City") by Cupertino Village LP (" Developer") pursuant to the requirements of California Government Code section 65865.1 and Chapter 19.144 of the City' s Municipal Code regarding Developer' s good faith compliance with its obligations under the Development Agreement betweenthe City and Developer having anEffective Date of Development Agreement"). All Article and Section referencesare to the Development Agreement. Any capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Development Agreement.
Annual Review Period: to
Generally summarizethe statusof Developer' s efforts and progressin processingpermit applications and constructing the Project.
Generallysummarizespecificstrategiesto be followedin thecomingyearintendedto facilitate the processingof permits and/or Project construction.
SpecifywhetherDeveloper'scompliancewith anyof thefollowing agreementshave beensatisfied during this annual review period:
SpecifywhetherapplicableExistingImpactFees,processingfees, connectionfeesand/or otherfeesdueandpayableunderArticle 4 havebeenpaidduringthis annualreviewperiod, including but not limited to the following:
i
Housing Mitigation Fees.
Public Art Contribution.
Transportation Impact Fees.
Describe Developers compliance with the following Public Benefits under Article 5 during this annualreview period:
Community Amenity Paymentpursuant to Section 5.1.1.
TDM Programpursuantto Section 5.1.2.
Participation in TMA and payment of annualTMA Feepursuant to Section 5.1.2.
Exhibit F
OAK# 4820- 8554- 1516 Q
Preferential Employment Program pursuantto Section 5.1.3.
Shuttle Service pursuant to Section 5.1.4.
Meeting Room Benefit pursuant to Section 5. 1.5.
ReducedRateBenefit pursuant to Section 5.1.6.
Internships pursuant to Section 5.1.7.
Transient OccupancyTax Requirement, including any TOT In-lieu Payment, pursuant to Section 5.2.
Minimum Hotel Standardpursuant to Section 5.3.
Describe whether other applicable Development Agreement obligations were completed during this annualreview period.
Describe any extension of the time limits or deadlinesin the Development Agreement as a result of Permitted Delay pursuant to Section 13.4.
Specify whether Developer hasassignedthe Development Agreement or otherwise conveyedthe Property during this annualreview period.
i
The undersigned representative confirms that Developer is:
In good faith compliance with its obligations under the Development Agreement for this j annualreview period.
Not in good faith compliance with its obligations under the Development Agreement for this annualreview period, in responseto which Developer is taking the actions setforth in the attachment hereto.
IN WITNESS WHEREOF, Developer has executed this Annual Review Form as of this day of 20_.
DEVELOPER:
CUPERTINO VILLAGE LP, j
a California limited partnership
By:
Name:
Title:
Exhibit F
OAK# 4820- 8554- 1516 Q
EXHIBIT G
FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Attention:
Exemptfrom Recording Feeper
Government Code Section 27383
SpaceAbove This Line for Recorder' s Use Only
ASSIGNMENT OF RIGHTS AND OBLIGATIONS UNDER
DEVELOPMENT AGREEMENT
This Assignment of Rights and Obligations under Development Agreement( this Assignment") is entered into this day of 20_(" Effective Date"), by andbetween a
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Assignor") and a
Assignee"). Assignor andAssignee arecollectively referred to herein asthe" Parties."
RECITALS
A. Assignor and the City of Cupertino, a California municipal corporation(" City") have entered into that certain Development Agreement dated as of DA") which was recorded in the Official Records of Santa Clara County on as Instrument No.
B. Assignor[ has requestedapproval from the City of the assignment to Assignee describedherein pursuant to Section 10.1 of the DA] OR [ has the right to make the assignment to Assignee under Section 10.1 of the DA.]
C. [ Cityhasconsentedto theassignmentdescribedhereinpursuant to Section10.1 of the DA.] OR[ Assignor hasprovided the City with documentation establishing that the assignment is appropriate pursuant to Article 10 of the DA because J
AGREEMENTS
NOW, THEREFORE, in exchange for the mutual covenants set forth herein and for other goodandvaluableconsideration, thereceiptandsufficiencyof which areherebyacknowledged, the Partieshereby agreeas follows:
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1. Assignment and Assumption of Interest. Assignor herebytransfers, assignsand conveys to Assignee, all of Assignor' s right, title and interest in and to, and all obligations, duties, responsibilities, conditions and restrictions under, the DA ( the" Rights and Obligations"). Assignee, for itself and its successorsand assigns,hereby acceptsthe foregoing assignment, assumesall suchRights and Obligations, and expresslyagreesfor the benefit of City, to pay,performanddischargeall obligationsof AssignorundertheDA andto complywith all covenantsand conditions of Assignor arising from or under the DA.
2. Governing Law; Venue. This Assignment shall be interpreted and enforced in accordancewith the laws of the Stateof California without regardto principles of conflicts of laws. Any action to enforce or interpret this Assignment shall be filed andlitigated exclusively in the Superior Court of SantaClara County, California or in the Federal District Court for the Northern District of California.
3. Entire Agreement/ Amendment. This Assignment constitutes the entire agreement amongthe Partieswith respectto the subject matter hereof, and supersedesall prior written and oral agreementswith respectto the matters coveredby this Assignment. This Assignment may not be amendedexceptby an instrument in writing signedby eachof the Partiesand consented to in writing by City.
4. Further Assurances. Each Parry shall execute and deliver such other certificates, agreementsand documentsandtake suchother actions asmay be reasonablyrequired to consummate. or implement the transactions contemplated by this Assignment and the DA.
5. Benefit and Liability. Subject to the restrictions on transfer set forth in the DA, this Assignment and all of the terms, covenants, and conditions hereof shall extend to the benefit of andbebinding upon the respective successorsandpermitted assignsof the Parties.
6. Rights of City. All rights of City under the DA and all obligations to City under the DA which were enforceableby City againstAssignor prior to the Effective Date of this Assignment shall be fully enforceableby City againstAssignee from and after the Effective Date of this Assignment.
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7. Rights of Assi nee. All rights of Assignor and obligations to Assignor under the DA which were enforceableby Assignor against City prior to the Effective Date of this Assignment shall be fully enforceableby Assignee againstCity from and after the Effective Date of this Assignment.
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8. Release. As of the Effective Date, Assignor hereby relinquishes all rights under the DA, and all obligations of Assignor under the DA shall be terminated as to, and shall have no more force or effect with respectto, Assignor, andAssignor is hereby releasedfrom any and all obligations under the DA.
9. Attorneys' Fees. In the event of any litigation pertaining to this Assignment, the losing party shall pay the prevailing party' s litigation costsand expenses, including without limitation reasonable attorneys' fees.
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10. City Consent; City Is A Third- Party Beneficiary. City' s countersignaturebelow is for the limited purposesof indicating consentto the assignmentand assumptionandreleaseset forth in this Assignment( if necessaryunder the DA) pursuant to Sections 10.1 and 10.2 of the DA, andfor clarifying that there is privity of contract between City and Assignee with respectto theDA. TheCity is anintendedthird-partybeneficiaryof this Assignment, andhastheright,but not the obligation, to enforce the provisions hereof.
11. Recordation. Assignor shall cause this Assignment to be recorded in the Official Recordsof SantaClara County, and shall promptly provide conformed copies of the recorded Assignment to City andAssignee.
12. Address for Notices. Assignee' s address for notices, demands and communications under the DA is as follows:
13. Captions; Interpretation. The section headings used herein are solely for convenience and shall not be used to interpret this Assignment. The Parties acknowledge that this Assignment is the product of negotiation and compromise on the part of both Parties, andthe Partiesagree, that sinceboth haveparticipated in the negotiation and drafting of this Assignment, this Assignment shall not be construedasif preparedby one of the Parties, but rather according to its fair meaning asa whole, asif both Partieshad preparedit.
14. Severability. If any term, provision, condition or covenantof this Assignment or its applicationto anyparryor circumstancesshallbeheldby a courtof competentjurisdiction, to anyextent, invalid orunenforceable,theremainderof this Assignment, or theapplicationof the term, provision, condition or covenantto personsor circumstancesother than thoseasto whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceableto the fullest extentpermitted by law unless the rights and obligations of the Parties havebeenmaterially altered or abridgedthereby.
15. Counterparts. This Assignment may be executedin counterparts, eachof which shall, irrespective of the dateof its execution and delivery, be deemedan original, and the counterparts together shall constitute one and the same instrument.
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IN WITNESS WHEREOF Assignor and Assignee have executed this Assignment as of the date first set forth above.
ASSIGNOR:
a
By: FORM— DO NOT SIGN
Name:
Its:
ASSIGNEE:
a
By: FORM— DO NOT SIGN
Name:
Its:
NOTE: The presence of the signature blocks below in this form shall not be deemed to require the consent of the City to any assignment that does not otherwise require the consent of City under the DA.]
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City of Cupertino, a California municipal corporation, hereby consents to the assignment and assumption described in the foregoing Assignment andAssumption Agreement.
CITY:
CITY OF CUPERTINO, a
California municipal corporation
By: FORM— DO NOT SIGN
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
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ACKNOWLEDGMENTS
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
ss
County of
On before me,
Name of Notary)
notarypublic, personallyappeared
whoprovedtomeonthebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto the within instrument and acknowledged to me that he/she/they executedthe same in his/her/their authorizedcapacity(ies), andthat by his/her/their signature(s) on the instrument the person( s), or theentityuponbehalfof whichtheperson(s) acted, executedtheinstrument.
I certify under PENALTY OF PERJURYunder the laws of the Stateof California that the foregoing paragraphis true and correct.
WITNESS my hand and official seal.
Notary Signature)ature)
Acknowledgements
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A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
ss
County of
On before me,
Name of Notary)
notary public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribedto the within instrument and acknowledged to me that he/she/they executedthe same y in his/her/their authorizedcapacity(ies), andthat by his/her/their signature(s) on theinstrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraphis true and correct.
WITNESS my hand and official seal.
Notary Signature)
Acknowledgements
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