Monterey Park City Council
August 19, 2026

Performance Bond
Letter

June 3rd, 2026
City of Monterey Park
320 West Newmark Avenue
Monterey Park, CA 91754

Re: Surety Capacity - Local Fixed Route

To Whom It May Concern:

P
er your request of bondability, this letter is to advise that First Transit, Inc. is set up for bonding with Applied Surety Underwriters. The Company is an account in good standing with Applied. The general bonding line of credit established for or available to this firm is $25mm on any single contract and an aggregate backlog of $50mm.

Please note that the decision to issue bonds is a matter between The Company and Applied, and will be subject to standard underwriting practices and policies in effect at the time of the final bond request. We assume no liability to third parties or to you if for any reason we do not execute said bonds.

Applied Surety Underwriters is an affiliate of Applied Underwriters using carriers rated A (Excellent) by AM Best, Financial Size Category XI. Applied Surety is fully licensed and authorized to write bonds in all Fifty States.

If you have any questions or need any additional information, please do not hesitate to contact me.

Sincerely,

Dan Orna
Vice President
Applied Surety Underwriters

City Council Staff Report

Date: August 19, 2026
Agenda Item Number: 10.E.

To: The Honorable Mayor and City Council
From: Timothy Hou, Director of Community Development
Subject: Second Reading of Ordinance Approving Amendment to Development Agreement No. 2261-AA for the Celadon Mixed-Use Development Project at 114 E. Garvey Avenue

Recommendation:

It is recommended that the City Council consider:

1. Conducting a second reading and adopting an uncodified ordinance approving Amended Development Agreement No. 2261-AA (DA-26-01) by and between the City of Monterey Park and Rykadan 005, LLC, for a proposed seven-story mixed- development consisting of 169 residential units and approximately 16,300 square feet of commercial/retail space generally located at 114 E. Garvey Avenue; and

2. Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

Pursuant to the California Environmental Quality Act (Public Resources Code sections 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. sections 15000, et seq., the “CEQA Guidelines”), the ordinance’s second reading is exempt from CEQA under Public Resources Code Section 21080.66 and by the Notice of Exemption adopted by the City Council on August 5, 2026, for the Celadon Mixed-Use Development Project and filed on August 6, 2026, with the Los Angeles County Recorder’s Office.

Executive Summary:

At its August 5, 2026, regular meeting, the City Council introduced the subject ordinance for first reading and unanimously recommended for second reading. It is recommended that the City Council hold the second reading and adopt the subject ordinance at this time. The staff report of the August 5, 2026, City Council meeting is attached hereto as Attachment 2 for reference. If adopted, the ordinance will take effect in 30 days.

Strategic Plan Goal:

The project supports the 2026-27 Strategic Plan Goal to “Strengthen our local economy and enhance housing opportunities” by advancing goals and programs set forth in the City’s

General Plan, reducing barriers to encourage housing development, and supporting economic growth in the City.

Fiscal Impact:

There is no fiscal impact associated with the approval of the second reading of the subject ordinance.

Attachments:

1. Ordinance Approving Amended Development Agreement No. 2261-AA (DA-26-01)

2. Amended Development Agreement No. 2261-AA (DA-26-01)

3. Copy of August 5, 2026, City Council Staff Report (without attachments)

ATTACHMENT 1
Ordinance Approving Amended
Development Agreement No. 2261-AA
(DA-26-01)

ORDINANCE NO.

AN ORDINANCE APPROVING AMENDED DEVELOPMENT
AGREEMENT NO. 2261-AA (DA-26-01) BY AND BETWEEN THE CITY OF MONTEREY PARK AND RYKADAN 005, LLC , FOR A PROPOSED
SEVEN-STORY MIXED- USE DEVELOPMENT CONSISTING OF 169
RESIDENTIAL UNITS AND APPROXIMATELY 16,300 SQUARE FEET
OF COMMERCIAL/RETAIL SPACE GENERALLY LOCATED AT 114 E.

GARVEY AVENUE

The City Council of the City of Monterey Park does ordain as follows:

SECTION 1: The City Council finds and declares that:

A. In October 2021, RYKADAN 005, LLC (“Applicant/Developer”) obtained City Council approval for a development pursuant to D evelopment Agreement (DA) No. 2261-AA. Beginning in 2023, the Developer sought to modify the approved project, citing changing economic conditions and construction costs. The City determined that the proposed revisions constitute substantial modifications requiring City Council review and approval.

B. The Developer requests to enter into Amended Development Agreement DA No. 26-01 with the City (the "Development Agreement") , which would amend D A No. 2261- AA, attached to this Ordinance as Exhibit "A" and incorporated herein by this reference.

C. The Development Agreement authorizes the development of a seven-story mixed-use development consisting of 169 residential units and approximately 16,300 square feet of ground- floor commercial/retail space (the "Project"). The Project is located at the southeast corner of East Garvey Avenue and South Garfield Avenue and includes five addresses (114 E.

Garvey Avenue and 100, 120, 150, and 200 S. Garfield Avenue) and six Assessor Parcel Numbers (5257- 015-001, 002, 003, 004, 005, and 035), collectively referred to as (the "Project Site").

D. The City Planner reviewed the Project and noticed a public hearing regarding the proposed Project, before the City Council on August 5, 2026.

Notice of the hearing was duly given as required by law.

E. On August 5, 2026, the City Council held a public hearing to receive public testimony and other evidence regarding the proposed Project, including, without limitation, information provided by staff and public testimony and other evidence.

F. This Ordinance and its findings are made based on the evidence presented to the City Council at its August 5, 2026 , hearing, including, without

Ordinance No.

limitation, the staff report submitted by the City Planner, the administrative record, and all written and oral evidence received by the City Council.

SECTION 2: Findings. Pursuant to Government Code § 65867.5, the City Council finds the following:

A. The Development Agreement is consistent with the General Plan of the City of Monterey Park. The Development Agreement furthers the goals of the General Plan and is in the interest of the general community in that the Development Agreement will facilitate the development of the Project Site, which is currently vacant, which is consistent with the following Land Use and Urban Design Element (LUE) and Housing Element (HE) policies:

1. LUE Policy 2.1 – to provide flexible and clear development standards to allow commercial, professional, industrial, institutional, and hospitality businesses and uses to expand and thrive economically.

2. LUE Policy 3.4 – to strategically facilitate multi -unit housing opportunities in proximity to transit facilities, mixed- use areas, and employment and education centers.

3. HE Policy 3.1 – to encourage a wide range of housing types, prices, and ownership forms.

4. HE Policy 3.5 – to facilitate development of mixed- use residential projects in areas designated for mixed- use near the Central Business District, and along North Atlantic Boulevard, East Garvey Avenue, and Pomona Boulevard.

B. The Development Agreement also provides certainty in planning and construction and as orderly development, while providing assurance to the Applicant that it may construct the Project.

SECTION 3: Environmental Review. Pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. §§ 15000, et seq., the “CEQA Guidelines”), the City has reviewed the proposed Project and determined that no additional environmental review is required for the Project pursuant to Public Resources Code § 21080.66. The City has further determined that the Project satisfies the eligibility requirements of that section. Based on this analysis , a Notice of Exemption as required under Public Resources Code §§ 21008 and 21152, will be filed for the Project.

SECTION 4: General Plan and Zoning. The Project is consistent with the Monterey Park General Plan, as discussed in Section 2. The Project also complies with the Monterey Park Municipal Code (MPMC), as the Project Site is located within a Planned Development (P-D) Overlay District, which permits mixed use development.

Ordinance No.

SECTION 5: Public Benefits. The Development Agreement provides for public benefits including, without limitation:

A. A major public gathering space and plaza at the P roject's central entrance along Garfield Avenue;

B. Participation in funding the City's transit programs, including Spirit Bus and MPK Transit Express;

C. A $200,000 contribution to the City's Affordable Housing Trust Fund;

D. A $200,000 contribution to the City's Parks Master Plan Facilities Fund.

SECTION 6: Incorporation of Development Agreement; Changes; Execution. In accordance with Government Code §§ 65864, et seq. , this Ordinance approves the Development Agreement in substantially the form attached as Exhibit “A ” and incorporated by reference.

A. The Development Agreement may be changed before execution as authorized by the City Council during the public hearings for the Project.

B. The Development Agreement may be changed before execution for minor clarifications and technical or clerical, corrections as approved by the City Attorney, including, without limitation, completion of references, the status of planning approvals, and completion and conformity of all exhibits to the Development Agreement.

C. The City Council authorizes the City Manager to execute the Development Agreement on the City’s behalf in a form approved by the City Attorney.

The City Manager or designee is authorized to execute amendments or operating memoranda as permitted by the Agreement, in a form approved by the City Attorney.

SECTION 7: Delegation of Authority . The City Council delegates to the Community Development Director, or designee, the authority to review and approve the Project's master sign program, signs, murals, and similar design elements, provided the Community Development Director determines that the proposed improvements are consistent with this Ordinance, the Development Agreement, the Approved Development Plan, and the Conditions of Approval.

SECTION 8: Construction. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council' s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.

SECTION 9: Reliance On Record. Each and every one of the findings and determination in this Ordinance are based on the competent and substantial evidence, both oral and

Ordinance No.

written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in th e record as a whole.

SECTION 10: Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.

SECTION 11: Enforceability. This Ordinance does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date.

SECTION 12: Limitations. The City Council’s analysis and evaluation of the Project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts have been made to form accurate assumptions. Somewhat related to this are the limitations on the city’s ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.

SECTION 13: Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.

SECTION 14: Electronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code § 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 15: Publications. The City Clerk is directed to certify the passage and adoption of this Ordinance; make a note of the passage and adoption in the records of this meeting; and within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

SECTION 16: Recordation. The City Clerk, or designee, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Monterey Park’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance and cause it to be published or posted in accordance with California law.

SECTION 17: Effective Date. This Ordinance will become effective 30 days after second reading and adoption. However, this Ordinance shall not be effective unless and until the City Council has adopted a Resolution approving Tentative Map No. 26- 05 and the

Ordinance No.

Resolution becomes effective. If said R esolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction or otherwise do not go into effect for any reason, then this Ordinance shall be null and void and have no further force or effect.

ORDINANCE NO. ___ HAD ITS FIRST READING ON AUGUST 5 , 2026 , ITS SECOND READING ON ________________, AND WAS DULY PASSED, APPROVED,

AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MONTEREY PARK AT ITS REGULAR MEETING OF ______________________.

PASSED AND ADOPTED this ____ day of _________, 2026.

____________________________
Henry Lo, Mayor

ATTEST:

________________________________
Maychelle Yee, City Clerk

APPROVED AS TO FORM:

KARL H. BERGER, CITY ATTORNEY

_________________________________
Joaquin Vazquez, Assistant City Attorney

Exhibit A: Development Agreement XX-XX

EXHIBIT A
Amended DA No. 2261-AA
(DA-26-01)

16826.1:10087292.2
RE

CORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

CI

TY OF MONTEREY PARK
320 West Newmark Avenue
Monterey Park, CA 91754
Attention: City Clerk
EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code § 6103
(Space Above For Recorder’s Use)
AM

ENDED DEVELOPMENT AGREEMENT
By And Among
City of Monterey Park
And
RYKADAN 005, LLC

1 AM

ENDED DEVELOPMENT AGREEMENT
This AMENDED DEVELOPMENT AGREEMENT ( this, “Agreement”), effective as of July __, 2026 (the, “ Effective Date ”), is entered into by and between (1) the CITY OF MONTEREY PARK, a general law city and municipal corporation (“City”), and (2) RYKADAN 005, LLC , a California limited liability company (“Developer”) (collectively, the “Parties”) , to amend, modify, and otherwise update the Parties’ October 6, 2021 Development Agreement that was recorded on December 7, 2021 as Instrument No. 20211815457. Specifically:

RECITALS
A. This Agreement is executed with reference to Government Code §§ 65864, et seq. (“Development Agreement Statute”). The Development Agreement Statute authorizes the City to enter into binding development agreements with developers having a legal or equitable interest in real property, establishing certain development rights in such property.

B. Pursuant to the Development Agreement Statute, City adopted regulations implementing the Development Agreement Statute as codified in the Monterey Park Municipal Code (“MPMC”).
1 This Agreement was processed and approved in accordance with the MPMC.

C. Developer owns six legal parcels on approximately 2.19 -acres located at the southeast corner of the intersection of Garfield Avenue and Garvey Avenue in City as more specifically described in attached Exhibit “A,” which is incorporated herein by this reference (the “Property”). The Property is unimproved. This Agreement is intended to allow for the development of the Property with the Project as defined in Section 1.16 below and more particularly described in Exhibit “ C.” Specifically, t he proposed mixed- use development project will include 169 residential units and 16,328 square feet of leasable commercial space (the “Project”). The Project site is primarily vacant but includes a privately owned surface parking lot, which will be removed to construct the Project.

In addition, t he commercial uses will be located on the ground floor. Levels 3 through 7 of the building will contain residential uses. The Project will include three levels of on -site parking on the ground floor through third floor, with a total of 343 parking spaces for residential, commercial, and guest use. Resident parking will be secured with a high-speed vehicular gate on Level 2. Last, the Project will provide 22,719 square feet of residential open space.

D. City and Developer previously determined that a development agreement is appropriate for the Project in order to activate the Business Recovery Development Agreement Zone ( “BDRZ”). The Property remains within the BRDZ established through the 2021 Development Agreement. The Parties acknowledge that the amended Project is permitted under the existing Planned Development ("P-D") overlay.2
E. The City Council determined in 2021 and hereby reaffirms that the Project will provide certain public benefits to warrant entering into this Agreement. Those benefits are listed in Section 5.1 of this Amended Agreement. In addition, this Amended Agreement will continue to 1 See MPMC Chapter 21.44.
2 As codified in MPMC Chapter 21.45.

2 facilitate the orderly growth and quality development of the Project in conformance with the goals and policies of the Land Use Element of the General Plan.3 F. Developer would not proceed with the Project without City’ s assurances as set- forth in this Amended Agreement. Developer has and will continue to invest substantial money and effort in reliance upon the City’ s assurances as set -forth in this Amended Agreement.

Developer acknowledges that the City would not enter into this Amended Agreement without the Developer’s assurances as set-forth herein and the anticipated benefits, as described in Section 5.1, to be provided in connection with development of the Project.

G. Pursuant to the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) and the CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq .), the City has determined that no additional environmental review is required for the Project pursuant to Pub lic Resources Code § 21080.66, and that the Project satisfies the eligibility requirements of that section. A Notice of Exemption will be filed as required by CEQA following the City's approval of the Project.

H. The City Council has given the required notice of its intention to adopt this Amended Agreement and conducted public hearings thereon pursuant to the Development Agreement Statute and MPMC . As required by applicable law , the City Council found the provisions of this Amended Agreement and its purposes are consistent with the goals, policies, standards, and land use designations specified in City’ s General Plan and will provide for the orderly development of the Project in accordance with the objectives set forth in the General Plan and the MPMC.

I. On August 5, 2026, the City Council adopted the Approving Ordinance (defined below) approving this Amended Agreement and authorizing its execution. That Ordinance became effective on September 4, 2026. Before approving this Amended Agreement, the City Council made certain findings, as set forth in the Approving Ordinance.

J. The term or duration of this Agreement has a commensurate relationship to the benefit(s) provided to the City.

In consideration of the above Recitals and the mutual covenants set forth herein, the City and Developer further agree as follows:

ARTICLE 1

DEFINITIONS
Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Amended Agreement. Words

3 As adopted pursuant to Measure JJ on November 3, 2020.

3 and phrases not defined in this Section have the meaning set-forth in this Agreement; the MPMC; the Development Agreement Statute; or in common usage.

1.1. “Approving Ordinance” means Ordinance No. XX-XX adopted on August 5, 2026 approving execution of this Amended Agreement.

1.2. “Applicable Rules ” means all of the ordinances, rules, regulations and officials policies governing the Project set -forth in Article 3. without limitation , the City’ s zoning regulations and building regulations, adopted as of the Effective Date. Among other matters, unless otherwise amended by this Amended Agreement, the Applicable Rules set -forth in Article 3 govern the permitted uses of land, the density or intensity of use, subdivision requirements, setbacks, and development standards, the provision for reservation or dedication of land for public purposes, and the design, improvement and construction guidel ines, standards and specifications applicable to the development of the Property.

1.3. “CEQA” means the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq.), and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.).

1.4. “City” means the City of Monterey Park and its successors and assigns.

1.5. “City Council” means the City Council of the City of Monterey Park, its governing body.

1.6. “Developer” means, individually, and “Developers” means, collectively, the Parties who have signed this Amended Agreement as Developer, and, subject to the restrictions on assignment set-forth herein, successor Owners.

1.7. “Development Impact Fees” means fees established and adopted pursuant to the Mitigation Fee Act (Government Code §§ 66000, et seq.) and the MPMC. Development Impact Fees do not mean or include Processing Fees. The Development Impact Fee rates estimated to be paid for the Project are set forth in attached Exhibit “D,” which is incorporated by reference. The final impact fees imposed, unless otherwise provided in this Agreement, will be those in effect at the time of permit issuance.

1.8. “Development Agreement Regulations” means MPMC Chapter 21.44.

1.9. “Development Agreement Statute” means Government Code §§ 65864, et seq.

1.10. “Discretionary Action(s) ” or “ Discretionary Approval(s) ” means a City action requiring the exercise of judgment, deliberation, or discretion on the City ’s behalf, including that of any board, agency, commission, officer , or employee in the process of approving or disapproving a particular activity, as distinguished from any ministerial activity which merely

4 requires City to determine whether there has been compliance with statues, ordinances, or regulations.

1.11. “Effective Date ” means the effective date of this Amended Agreement and commencement of the Term, which is the date the Approving Ordinance becomes effective under California law.

1.12. “General Plan” means the City of Monterey Park General Plan, as it exists on the Effective Date.

1.13. “Minor Change ” means changes, modifications, or adjustments which are consistent with the overall intent of the Project Approvals and which do not materially alter the overall nature, scope, or design of the Project, including without limitation, minor changes in locations of the Project Buildings or infrastructure, relocation of no more than 30% of the total approved leasable Project Building square footage, the construction, realignment of existing, or provision of additional parking spaces within the building envelope of any Parking Areas, and/or the configuration of internal circulation elements. Minor Changes may be approved by staff ministerially at the direction of the City Manager, to the extent permitted under this Agreement applicable law.

1.14. “Party” means, individually, and “Parties” means, collectively, the parties to this Agreement, consisting of City (and its successors and assigns) and the Developer (including, subject to the restrictions on assignment set forth herein, successor Owners).

1.15. “Processing Fees” means all processing fees and charges required by City that are applied uniformly to all construction or development related activity including, without limitation, fees for land use applications, building permit applications, building permits, grading permits, shoring and excavation permits, hauling permits, encroachment permits, demolition permits, subdivision or parcel maps, lot line adjustments, street vacations , inspections, certificates of occupancy, and plan check. Processing Fees does not mean or include Developer Fees.

1.16. “Project” means the mixed -use development project identified as “Celadon,” as approved pursuant to the project approvals and detailed in the Approved Development Plan shown on attached Exhibit “C,” both of which are incorporated herein by this reference.

1.17. “Project Approvals ” means City approvals governing the development of the Project, including this Amended Agreement, as provided for in Ordinance XX-XX.

1.18. “Property” means the real property described in attached Exhibit “A,” which is incorporated herein by reference.

1.19. “Subsequent Permits” is defined in Section 4.1.1.

5 1.20. “Uniform Codes” means those Uniform Codes adopted by reference in the MPMC in accordance with Government Code §§ 50022.2, et seq., as required by applicable law including, without limitation, Health and Safety Code § 18944.5 and Title 24 of the California Code of Regulations. The Uniform Codes govern building and construction standards including, without limitation, the building, plumbing, electrical, mechanical, grading, sign, and fire standards.

1.21. “Vested Rules” are defined in Section 3.1.

ARTICLE 2

GENERAL PROVISIONS

2.1. Property Subject to This Development Agreement. This Agreement benefit s and encumbers the Property. The Property is to be developed with the Project, i.e., the “Celadon” as defined in Section 1.16.

2.2. Term of Agreement. The Term of this Agreement commence s upon the Effective Date and continues in full force and effect for five years pursuant to MPMC § 21.44.020(E), unless terminated earlier by its terms (“Term”).

ARTICLE 3

APPLICABLE RULES, REGULATIONS, AND POLICIES

3.1. Vested Rules. “Vested Rules” mean, collectively, the ordinances, resolutions, rules, regulations, requirements, and official policies of City in effect as of the Effective Date that will govern the following, to the extent applicable to the Property: development agreements; permitted uses; density and building intensity; growth control; zoning designations and regulations; subdivision, improvement, grading, landscaping and signage; design, development, improvement, and construction standards and specifications; standards and requirements for public reservations and dedications, public improvements and facilities; transit, parking, open space, employee housing and other residential housing; standards and requirements for processing of Subsequent Permits (as defined in Section 5.1.1); and , the Project Approvals described in Section 3.3. The Vested Rules do not include: (i) Uniform Codes, or changes thereto from time to time; (ii) Development Impact Fees or fee calculation methods; or (iii) fees imposed by other governmental agencies, whether or not collected by the City on behalf of such agencies. Unless provided for as part of the Project herein, various Subsequent Permits, such as tentative subdivision maps, grading permits and other use permits, are or may be required in order to implement the development of the Project under the terms of the Vested Rules. In addition, Subsequent Permits, such as a change in zoning standards, may be desirable due to changes in development products or standards or for other reasons during the Term of this Agreement. This Amended Agreement and the vested right to develop are not intended to preclude changes or additions to the Vested Rules which are mutually acceptable. Developer takes notice pursuant to Government Code § 66020(d) that City is imposing exactions upon the Project in accordance with the Mitigation Fee Act (Government

6 Code § 66000, et seq .). Developer is informed that it may protest exactions in accordance with Government Code § 66020. Developer knowingly and willingly waives any rights it may have under Government Code § 66020 or any other provision of law to protest the imposition of any fees, dedications, reservations, or exactions imposed on the Project as authorized under this Amended Agreement. Uniform Codes. Section 3.1 does not apply to City’ s enforcement of the “Uniform Codes” regulating building or construction standards that will apply to the Project at the time City issues building permits.

3.3. Changes to the Vested Rules. All Subsequent Permits will be processed in accordance with the procedures, standards, and requirements set-forth in the Vested Rules, except to the extent changes to the Vested Rules are proposed by the Subsequent Permit. In that case, the processing of the Subsequent Permit is not subject to the Vested Rules. Any approved Subsequent Permit will be incorporated into (and amend or supplement, as appropriate) the Vested Rules upon adoption by City and approval by the affected Developer. If Developer proposes any amendment or addition to the Vested Rules, then the application therefor will clearly indicate such request, and, if the application is approved by City, then City’ s action will clearly state the Vested Rules were amended or supplemented. City m ay consider any such request in its sole discretion. If an amendment or supplement to the Vested Rules is adopted by City other than pursuant to an application by Developer, then it may amend or supplement to the Vested Rules only if the affected Developer approves the same in writing.

3.4. Project Approvals. “Project Approvals” means: (a) this Amended Agreement; (b) the City’s CEQA determination for this Project set forth in Recital G above; (c) the Conditions of Approval attached as Exhibit “B”; and (d) any amendments or additions to the Project Approvals and any Subsequent Permits (as defined in Section 4.1.1), which are subsequently issued by City and approved by Developer for the Project or any portion thereof, in accordance with the procedures described in Section 3.1. The Project Approvals are included in the Vested Rules. The permitted uses, the density or intensity of use, the zoning, the maximum height and size of buildings, the provisions for reservation and dedication of land and the subdivision requirements for the Project are set forth in Exhibit “C,” as supplemented by Subsequent Permits issued in conformance with the Vested Rules, if necessary. The Conditions of Approval set forth in Exhibit "B" establish the operational, engineering, and other requirements applicable to development of the Project.

3.5. Vested Right to Develop. During the Term of this Amended Agreement, with regard to the Project listed in Recital C and set-forth in Exhibit “C,” as well as the Property legally defined in Exhibit “A,” Developer is assured, and City agrees that the development rights, obligations, terms and conditions specified in the Project Approvals, the other Vested Rules, and this Agreement are fully vested in Developer and may not be changed or modified by City, whether by administrative action, legislativ e action, or vote of the electorate, except as may be expressly permitted by and in accordance with the terms and conditions of this Agreement, or as may be expressly consented to by Developer. Developer has the vested right to develop and construct the Project as set-forth in Exhibit “ C” on the Property and each portion thereof, in accordance with the Project Approvals, the other Vested Rules, and this Amended Agreement.

7 3.6. No Conflicting Enactments. Except as provided in Section 3. 5 of this Agreement, during the Term of this Amended Agreement, the City will not, without the prior written consent of Developer, do any of the following:

Apply to the Property, or any portion thereof, any change in the Vested Rules or any new or amended rule, ordinance, resolution, regulation, requirement, or official policy which conflicts with or is inconsistent with this Amended Agreement, or which reduces the development rights provided by this Amended Agreement, or which limits or reduces the permitted uses allowed under the Vested Rules, or which discriminates against Developer or the Project or any portion thereof, or which applies only to the Project or a portion thereof;
Apply to the Property any new rule, ordinance, resolution, regulation, requirement, or official policy which requires any additional discretionary review or approval; or
Apply to the Property any new or amended rule, ordinance, resolution, regulation, requirement, or official policy that materially, adversely affects the timing or phasing of construction or development or that limits the availability of utilities, infrastructure, or public services for the Property.

3.7. Term of Project Approvals. To the extent allowed by the Subdivision Map Act, the term of any tentative map approved for any portion of the Property, whether as stated in the existing Project Approvals, or as stated in any subsequent amendment or addition to the Project approvals including, without limitation, any tentative parcel map, tentative map, vesting tentative map, or vesting tentative parcel map, any amendment of any such map, and any subdivision improvement agreement entered into in connection with any of the aforementioned maps, will be automatically extended for the Term of this Agreement. Similarly, the term of any Project Approvals approved for any portion of the Property, whether existing or subsequently approved, will be automatically extended for the Term of this Agreement. In addition, in accordance with Government Code §66452.6, the term of any map or other Project Approval will be extended for a period equal to any period of time during which: (a) a development moratorium exists including, without limitation, a water or wastewater moratorium, or the actions of public agencies (other than City) that regulate land uses, development or the provision of services to the Property, that prevents, prohibits, or delays the construction of the Project; or (b) a lawsuit involving any development approvals or permits for the Project is pending. A development moratorium adopted or implemented by City does not apply to the Property, as further described in Section 3.8.

3.8. Initiatives/Referendum. Any law enacted or imposed after the Effective Date by initiative or referendum, or by the City Council, directly or indirectly, in connection with any proposed initiative or referendum, which law would conflict with the vested rights to develop granted to Developer under this Agreement will , to the maximum extent permitted by law, not apply to the Property.

8 3.9. Moratoria; Growth Control Measures . Developer’s rights to develop the Property in conformance with the Vested Rights under this Agreement prevails over any growth control measure or development moratorium adopted or implemented by City after the Effective Date, whether adopted specifically to prohibit construction of the Project or any portion thereof, or as an interim measure during the processing of contemplated General Plan, Specific Plan, or zoning changes, or as a general growth control management measure.

3.10. Effect of Inconsistent State or Federal Laws . This Amended Agreement may be further modified or suspended as may be necessary to comply with the State of California or Federal legislation, case law, codes, or regulations enacted/issued after the Effective Date, which preempt local jurisdiction and which prevent or preclude compliance with one or more provisions of this Amended Agreement; provided, however, that any such modification or suspension will be made to the minimum extent necessary and only after the Parties have met and conferred in good faith to determine the feasibility of such modification or suspension and to minimize its effect on the rights of the Parties and fulfillment of the purposes and intent of this Agreement. The Parties will cooperate to process applications for any City or governmental approvals which may be required as a result of any such modification or suspension of this Amended Agreement.

3.11. Public Works. Developer must construct any facilities or improvements that will be dedicated to City or any other governmental agency upon completion in the same manner and to the same standards as would be applicable to City or such other governmental agency should it have undertaken construction.

3.12. Business Recovery Development Agreement Zone ( “BRDZ”). This Agreement is intended to implement the Project consistent with the Property’s P -D overlay and the BRDZ, as applicable. This Agreement accordingly allows for the following:

Land Uses. MPMC § 21.10.020(C) , and Table 21.10 (A) Mixed Uses (Residential & Commercial).

3.12.2 D evelopment Standards . Per MPMC § 21.45.020 and this Agreement. To the extent of any conflict, this Agreement governs.

ARTICLE 4

PROCESSING OF SUBSEQUENT PERMITS AND APPROVALS

4.1. Subsequent Permits.

Defined. “ Subsequent Permits ” means the land use, development, and building approvals which are to be processed for approval by City ministerially and which are necessary or appropriate in order to develop the Project in accordance with the Vested Rules, the Project Approvals, and this Amended Agreement including, without limitation , zone changes, master plans or amendments thereto, any and all permits and/or approvals that are part of development maps, subdivision improvements plans and agreements, design review, site plans,

9 landscape plans, preliminary grading plans, grading plans and permits, building plans and permits, and environmental determinations. The Subsequent Permits include any permits and approvals required to complete the infrastructure and improvements necessary to develop the Property (collectively, the “Improvements”), in accordance with this Amended Agreement and the Vested Rules including, without limitation, those related to: (a) clearing the Property; (b) preliminary grading or grading of the Property; (c) construction of roads and storm drainage facilities; (d) construction of all residential and commercial structures and all structures and facilities accessory thereto, subject to the limitations set forth in this Amended Agreement. The grant of vested rights to Developer pursuant to this Amended Agreement does not waive or remove any requirement to process and obtain Subsequent Permits for the Project, to the extent required under the Vested Rules and not part of the Project Approvals. Subsequent Permits may include requirements necessary to implement the Project as approved, including applicable building, fire, engineering, grading, drainage, utility, public improvement, easement, and right-of-way requirements, provided such requirements are consistent with this Amended Agreement, the Project Approvals, and the Vested Rules.

Standard of Review. City agrees applications for Subsequent Permits will be processed in good-faith and expeditiously, as well as granted on terms and conditions in conformance with this Amended Agreement, the Project Approvals, and the Vested Rules. In the event any conflict arises between the terms and conditions of a Subsequent Permit and this Amended Agreement, the provisions of this Amended Agreement prevail unless otherwise agreed to in writing by the City and the affected Developer.

4.2. Processing. Subject to compliance with the Vested Rules and other applicable laws, the Subsequent Permits will be reviewed, processed, and acted upon by City ministerially and without the need for any further public hearings, provided that: (a) applications for such approvals are submitted to City during the Term of this Amended Agreement; (b) the applications are deemed complete pursuant to the Vested Rules; and (c) there is no uncured Event of Default under the terms and conditions of this Amended Agreement with respect to the portion of the Property for which such approval is sought. City agrees it will not unreasonably withhold or unreasonably condition any Subsequent Permits that may be issued by City in order for the Project to proceed, provided that Developer reasonably and satisfactorily complies with all preliminary procedures, actions, payments of Processing Fees, and criterial generally required of developers by City for processing applications for developments and consistent with this Amended Agreement.

4.3. Development Fees. Due to the consideration and benefits as described in Section

5.1, the following apply to the development fees described below:

Permit Fees. If a Subsequent Permit requires any significant change to the Project, then any additional Permit Fees must meet all applicable nexus and rough proportionality requirements under State and Federal law. Permit Fees will be payable in an amount and at the time established by City ’s fee schedule at the time of issuance of any Subsequent Permits. Any credits applicable to Permit Fees to which any portion of the Project is entitled as a result of construction may be transferred to any other portion of the Project and applied to reduce future Permit Fees that become payable provided that this Amended Agreement does not, by itself, entitle Developer to any such credits.

10 Development Impact Fees. Developer will pay fees established and adopted pursuant to the Mitigation Fee Act (Government Code §§ 66000, et seq .) and the MPMC, as detailed in Exhibit “E.”
Application Processing Fees. Developer must pay the Application Processing Fees in effect on the date the City Council approves this Amended Development Agreement.

No Encroachments into Public Right -of-Way. As a condition precedent to issuance of any building permit for the Project, Developer must demonstrate, to the satisfaction of the City Engineer, that the Project, including all permanent and temporary improvements and construction activities, will not encroach into, under, or above any public right -of-way or other public property, except as expressly authorized by all required permits, easements, licenses, or other approvals issued by the applicable public agency. Nothing in this Agreement authorizes any encroachment into, under, or above a public right-of-way or other public property.

4.4. Other Local, State, Federal Approvals . The Parties contemplate that development of the Project pursuant to this Amended Agreement may be subject to the approval of other governmental agencies. If so, t he Parties will act in good faith and use reasonable effort and diligence to process and obtain such approvals in a manner and on terms and conditions that are consistent with, and implement, the Project Approvals, the Vested Rules, and this Amended Agreement. If any revisions or corrections of the plans for Project Approvals approved by City are required by any other governmental agency, then the Parties will cooperate reasonably and in good-faith to develop a mutually acceptable solution.

ARTICLE 5

PUBLIC BENEFITS

5.1. Public Benefits. The Parties acknowledge and agree that Developer’s agreement to perform and abide by the covenants and obligations set -forth herein is material consideration for City’s agreement to perform and abide by the covenants set -forth herein, including without limitation the following specific public benefits of this Amended Agreement:

Providing a major public gathering space located adjacent to the sidewalk with ample pedestrian amenities, which result in open space which promotes public activity. In particular, the Project creates an area that will encourage pedestrian movement along the Project's frontages, and an attractive plaza will mark the central entrance on Garfield Avenue.

Providing major transit improvements including an increase in sidewalk width at bus stops, new transit shelter, bicycle racks, special decorative paving, pedestrian lighting and other pedestrian amenities. In particular, the P roject replaces sidewalks of five feet with pedestrian realms twelve to fifteen feet wide between the face of the curb of each major arterial street and the face of the building, which will include parkways, sidewalk, landscape areas as well as street trees, street furniture, and bus stop facilities. Additionally, the Project will participate , based on its pro-rata share and pursuant to a written agreement between the City and Developer ,

11 in the cost of operating the City’s transit program, including, without limitation, the Spirit Bus, MPK Transit Express, and any successor or replacement services, consistent with the Pedestrian Linkages Plan.

Providing housing types and unit sizes that contribute to a wide variety of residential products downtown. The Project will offer one, two, and two-bedroom with a den rental units.

Providing all parking for the retail and residential uses in the Project within a single structure. The Project provides for a single structure with three levels above grade.

Including key commercial tenants or unique tenants that will encourage uses consistent with the Land-Use Element of City’s General Plan.

Providing increased landscaped open space areas for the residential section of the P roject. In particular, the Project provides a large, landscaped courtyard to enhance the residential living areas and provide ample open space for recreational amenities including a fitness program, and community spaces for the residents of the complex. These amenities/services will assist in reducing traffic by residents and assist in fulfilling the goals of the pedestrian linkages plan.

Providing wireless internet and communication facilities that will help make the complex a public gathering place by allowing for both recreational and business needs of today's public.

Providing significant public right -of-way to facilitate the pedestrian flow for the core downtown area.

Generating significant retail sales tax and property taxes to City.

Paying a $200,000 public benefit contribution to City’s Affordable Housing Fund upon issuance of the building permit.

Paying a $200,000 public benefit contribution to City’s Parks Master Plan Facilities Fund upon issuance of the building permit.

Providing a double left-turn pocket on Garfield Avenue to provide left-turn access to Roselyn Drive in the northbound direction and to the Project's western driveway in the southbound direction. If conditions along Garfield Avenue or at the Roselyn Place i ntersection change before approval of the street improvement plans, Developer must revise the street improvement plans, including striping, to reflect those changed conditions, subject to approval by the City Engineer. There must be no left-turn movement from the Project onto Garfield Avenue.

Providing a northbound right -turn lane and loading area on Garfield Avenue, which will also serve as the trash pickup area where Property management will move the trash bins from their designated onsite storage areas to the street on pick-up days.

12 Relocating the existing bus stop on Garvey Avenue f arther east of the Garfield Avenue intersection.

Preparing any updated hydrology studies required by the City, obtain all permits and approvals required by the City and any other agency having jurisdiction, including the Los Angeles County Flood Control District, and construct and complete all drainage improvements, mitigation measures, and related work required to address Project drainage impacts. Any required improvements must be incorporated into the applicable improvement plans and completed before issuance of a certificate of occupancy, or at such earlier time as required by the City or the agency having jurisdiction.

5.1.2 Construction and Funding of Project Facilities and Infrastructure. Developer must construct and fund the construction of any Project Facilities and Infrastructure (as required by the Project Approvals) at the time such Project Facilities and Infrastructure are needed to satisfy the requirements of the Project Approvals. Except as otherwise specifically set-forth herein, Developer has no responsibility for the operation, maintenance, repair or replacement of Project Facilities and Infrastructure.

5.1.3 Dedications . Developer must make the dedications required by the Project Approvals.

ARTICLE 6

REVIEW OF COMPLIANCE

6.1. Annual Review. After it issues building permits, City will conduct annual reviews in accordance with the MPMC to determine whether Developer is acting in good-faith compliance with the provisions of this Amended Agreement. Appropriate fees to cover City’s costs to conduct the annual review will be collected from the Developer in compliance with the MPMC.

6.2. Procedure for Review . City’s City Planner, or designee, will conduct the review contemplated by this Section 6 to ascertain whether Developer has reasonably complied in good - faith with the material terms and conditions of this Amended Agreement during the period for which the review is conducted. The City Planner, or designee, will give Developer notice that any such review has been commenced, and give Developer at least 20 business days, after Developer’s receipt of such notice, to provide the City Planner such information as Developer deems relevant to such review. In addition, upon written request of the City Planner, Developer must furnish such documents or other information reasonably requested by the City Planner.

6.3. Result of Review. If, following such a review, the City Planner, or designee, finds good-faith compliance by Developer with the terms and conditions of this Amended Agreement, the City Planner, or, will issue to Developer an executed Certificate of Compliance. The Certificate of Compliance will state: (a) the Agreement is unmodified and in full force and effect (or identifying any modifications); (b) there are no uncured defaults under the Agreement by the certifying Party or, to the certifying Party’s knowledge, by any other Party (or specifying any such

13 defaults); and (c) any other information reasonably requested regarding the status of the Amended Agreement and performance by the Parties.

However, if, following such a review, the City Planner, or designee, finds that Developer has not complied in good-faith with the terms and conditions of the Amended Agreement, the City Planner, or designee, will provide notice to Developer detailing such non- compliance. Upon receipt of such notice, Developer may commence to cure the stated non-compliance in accordance with the terms of this Amended Agreement, including without limitation Section 8.1. If Developer fails to cure the non -compliance pursuant to the terms of this Amended Agreement, including without limitation Section 8.1, the City Planner, or designee, will notify the City Council .

Developer has the ability to dispute any such claim of non-compliance or failure to cure at a public hearing before the Amended Agreement may be modified or terminated.

ARTICLE 7
ASSIGNMENTS; MORTGAGEE PROTECTION

7.1. Right to Assign
Right to Assign . Subject to Section 7.2 of this Amended Agreement with respect to the rights of a mortgagee, Developer may assign or transfer any portion of its interests, rights, or obligations (“Rights” ) under this Amended Agreement and under the Approvals and Subsequent Approvals to third parties acquiring successor interests in the Project or Project Site, or any portion thereof, including without limitation purchasers or long-term ground lessees of the parcels or facilities located on or within the Project Site.

Assumption of Assigned Obligations and Rights. As a condition to any assignment or transfer under this Amended Agreement, any person or entity accepting such Assignment (“Assignee”) must assume all of the obligations and rights of this Agreement as they pertain to the portion of the Property being transferred to the Assignee.

7.2. Right to Mortgage. Developer or Owner may assign, pledge, or otherwise encumber its rights and interests under this Amended Agreement for security purposes to a Mortgagee of any defined Lot(s) without City ’s consent. Nothing contained in this Agreement restrict s Developer from encumbering all or any portion of the Property with a Mortgage, deed of trust, or other security device (collectively, “Mortgage). N o breach of this Amended Agreement will default, render invalid, diminish, or impair the lien of any Mortgage or the rights of any mortgagee, but all of the terms and conditions of this Amended Agreement are binding upon and effective against any Person, including any mortgagee or any person, who acquires title to the Property, or any portion thereof, by foreclosure, trustee ’s sale, deed in lieu for defaults or monetary obligations arising before its acquisition of title to the Property or portion thereof.

7.3. Notice of Default. If City receives written notice from a Mortgagee requesting a copy of any notice of default given to Developer and specifying the address for service thereof, then City will deliver to such Mortgagee, concurrently with the delivery to Developer, any notice

14 given to Developer with respect to any claim by City that such Developer is in default hereunder.

If City makes a determination of noncompliance hereunder and a Mortgagee has requested notice of such determination, City will also serve notice of such noncompliance on such Mortgagee concurrently with service on Developer. Each Mortgagee may, without obligation, during the same period available to Developer hereunder, 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.

ARTICLE 8
DEFAULT; REMEDIES

8.1. Events of Default. Subject to the provisions of Section 10.15 regarding Unavoidable Delays, Section 7.1 regarding assignment and assumption, and Section 7.2 regarding Mortgagee Protection, the failure by any Party to pay any sum or to perform any obligation required under this Amended Agreement, including, without limitation, City ’s failure to issue Subsequent Permits for the Project in conformance with this Amended Agreement, and such Party’s failure to cure such default within the specified cure period after receipt of a Notice of Default pursuant to Section 9.2 below, constitute s an “ Event of Default ” under this Amended Agreement. Except as otherwise provided in Section 4.2, failure by Developer to construct or delay in constructing the Project or any portion thereof will not be a default or Event of Default under this Amended Agreement, and Developer is not liable to City for damages for failure to construct any portion of the Project, unless such failure or delay constitutes a default under the terms of any Final Map, building permit or similar approval, in which event City may exercise any of its normal remedies for default under such permit or approval.

8.2. Notice of Default and Cure . Any Party claiming a default under this Amended Agreement must deliver to the defaulting Party a written notice of default (“ Notice of Default”).

The Notice of Default must specify the reasons for the allegation of default with reasonable particularity and the manner in which the default can be cured. The defaulting Party has the right to cure the default within 30 days after receiving the Notice of Default; provided, however, that if the nature of the alleged default is such that it cannot be reasonably cured within 30 days, then the 30-day period will be extended for the time reasonably required to complete the cure, so long as the defaulting Party commences the cure within the 30- day period and diligently prosecutes the cure to completion thereafter.

8.3. Procedure Upon and Event of Default. After the occurrence of an Event of Default, the other Party may give notice of its intent to terminate this Amended Agreement pursuant to Government Code § 65868 and the MPMC implementing said section. Following notice of intent to terminate, or before instituting legal proceedings, the matter must be scheduled for consideration and review at a public meeting of the City Council within 30 days after that notice. Following consideration of the evidence presented in the review before the City Council , the Party alleging the default by the other Party may institute legal proceedings or may give written notice of termination of this Amended Agreement to the other Party; provided, however, Developer may only terminate this Agreement with respect to such portion of the Property then owned by Developer. Evidence of default may also arise in the course of an annual review of this Amended

15 Agreement pursuant to Section 6.1. If Developer is determined by City to be in default pursuant to the procedures for annual review, and after giving effect to Developer’s right of appeal of such determination to the City Council as provided in Section 6.3, then City may give a written Notice of Default pursuant to Section 8.2. If the alleged default is not cured within the cure period set forth in Section 8.2 or within such longer period specified in City’ s Notice of Default, or if Developer waives its right to cure such alleged default in writing, then this Amended Agreement may be terminated by City with respect to the portion of the Property then owned by the defaulting Developer.

8.4. Remedies for Non-Defaulting Party. If either Party is in default under the terms of this Amended Agreement, subject to any applicable requirements under Section 8.6 of this Agreement, the other Party may elect to pursue any of the following courses of action: (i) waive such default; (ii) pursue administrative remedies as provided in this Amended Agreement; (iii) pursue any judicial remedies available under the law; or (iv) terminate this Amended Agreement.

Unless otherwise provided in this Amended Agreement and subject to applicable requirements under Section 8.6 of this Amended Agreement, either Party, in addition to any other rights or remedies, may institute legal action to cure, correct, or remedy any default by the other Party to this Amended Agreement, to enforce any covenant or agreement herein, or to enjoin any threatened or attempted violation hereunder or to seek specific performance. All remedies available to a Party under this section are cumulative and not exclusive of the other, and the exercise of one or more of these remedies do not constitute a waiver or election with respect to any other available remedy.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Amended Agreement, except that City is not liable in damages to Developer, or to any successor in interest of Developer, or to any other person, and Developer, on behalf of itself and all successors in interest, covenants not to sue for damages or claim any damages a rising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Amended Agreement.

No City elected or appointed official, employee, or representative is personally liable to Developer in the event of any Event of Default by City or for any amount which may become due to Developer, or for any obligations under the terms of this Amended Agreement, or for any claims of breach of contract related to this Amended Agreement, or for any claims in the nature of tort related to this Amended Agreement (such as fraud in the inducement).

8.5. Informal Discussions. With regard to any dispute between or among the Parties contemplated by this Amended Agreement, within seven days written notice from ether party, the City Manager and Developer ’s senior executives must meet and attempt in good faith to resolve any such disputes through informal discussions, which discussions will not exceed 10 business days unless extended by mutual agreement.

8.6. Mediation. If the Parties are unable to resolve their dispute through informal discussion, before the initiation of any litigation, either party may commence mediation by providing to JAMS (or other mediator mutually agreed to by the Parties) and the other Parties a written request for mediation, setting forth the subject of the dispute and the relief requested. The Parties will cooperate with JAMS and with one another in selecting a mediator from JAMS’ panel

16 of neutrals, and in scheduling the mediation proceedings. The Parties covenant that they will participate in all phases of the mediation in good faith. The mediation process will occur in two phases, if necessary, as described below. During the first phase of the mediation, which in no event will exceed 30 days unless otherwise agreed to by the Parties, the Parties will attempt to resolve their dispute in accordance with JAMS standard mediation procedures. If the Parties are unable to resolve their dispute during this first phase of the mediation process, then the second phase of the mediation process will be conducted in a manner consistent with this Section. If the Parties are unable to resolve their dispute through the first phase of mediation, as described above, the party that commenced mediation (the “ Complaining Party ”), will have 10 business days from the expiration of the 30 day period described above to file a brief with the other party (the “Responding Party”) and with the mediator presiding over the first phase of the mediation process (the “Mediator”), which brief must set forth the merits of the Complaining Party ’s position regarding the issues raised during the first phase of mediation (the “ Initial Brief”). The Responding Party will have 20 business days from its receipt of the Initial Brief to file a brief with the Mediator and the Complaining Party responding to the issues raised in the Initial Brief and setting forth the merits of the Responding Party ’s position regarding the issues raised during the first phase of mediation (the “Responding Brief”). The Complaining Party will have ten business days from its receipt of the Responding Brief to file a reply brief with the Mediator and the Responding Party replying to the issues raised in the Responding Brief (the “Reply Brief”). In no event will the Initial Brief and the Responding Brief be longer than 15 pages and in no event will the Reply Brief be longer than 10 pages. Except as otherwise set forth in this Section 7.05.03, the Initial Brief, the Responding Brief and the Reply Brief will be formatted in accordance with requirements of Rule

3.1110 of the California Rules of Court, unless otherwise agreed to by the Parties. The Mediator will have two weeks following its receipt of the Reply Brief to consider the arguments set forth by the Complaining Party and the Responding Party in their respective briefs and issue an opinion stating which party the Mediator would consider to be the prevailing party if the Mediator were a judge presiding over the dispute in a court of law (the “JAMS Opinion”).

All offers, promises, conduct and statements, including the JAMS Opinion, whether oral or written, made in the course of the mediation by any of the Parties, their agents, employees, experts and attorneys, and by the mediator and any JAMS employees, are co nfidential, privileged and inadmissible for any purpose, including impeachment, in any litigation or other proceeding involving the Parties, provided that evidence that is otherwise admissible or discoverable will not be rendered inadmissible or non-discoverable as a result of its use in the mediation. Notwithstanding the foregoing, the JAMS Opinion will serve as the basis solely for determining whether, in the event a dispute between the Parties is litigated, either party will be awarded attorneys’ fees in accordance with this Agreement.

Nothing in this Article will in any way be interpreted as requiring that Developer and City and/or City’ s designee reach agreement with regard to those matters being addressed, nor will the outcome of these meetings be binding in any way on City or Developer unless expressly agreed to in writing by the Parties to such meetings. Notwithstanding the forgoing, the JAMS Opinion will be binding on the Parties solely for the purposes of determining whether, in the event a dispute between or among the Parties is litigated, either party will be awarded Attorneys ’ Fees (as defined below) in accordance with this Amended Agreement.

17 Should any judicial remedy be sought by any party because of any default under this Amended Agreement or to enforce any provision hereof, or to obtain a declaration of rights hereunder (each individually a “Judicial Action ”), the prevailing party in such Judicial Action is entitled to reasonable attorney ’s fees, court costs and such other costs as may be fixed by the court (collectively, “Attorneys’ Fees”), provided the prevailing party in the Judicial Action was also determined to be the prevailing party in the JAMS Opinion. For purposes of this Amended Agreement, Attorneys Fees will be calculated from the start of the first phase of mediation and will include all reasonable costs related to the first and second phases of mediation. If the prevailing party in a Judicial Action was determined to be the los ing party in the JAMS Opinion, then each party will assume the cost of their own Attorneys ’ Fees. Not in limitation of the foregoing, the Parties will assume their own costs related to the informal dispute resolution process described above. Extension of Agreement Term . The Term of this Amended Agreement as set forth in Section 2.2 will automatically be extended for the period of time in which the Parties are engaged in dispute resolution to the degree that such extension of the Term is reasonably required because activities which would have been completed before the expiration of the Term are delayed beyond the scheduled expiration of the Term as a direct result of such dispute resolution.

ARTICLE 9
AMENDMENTS; TERMINATION

9.1. Amendments. Except as set forth in Section 3.1, this Amended Agreement may be modified, amended and/or extended only by mutual written consent of the Parties and must be approved in the same manner as adoption of this Amended Agreement, by ordinance as set forth in the Development Agreement Statute.

9.2. Operating Memoranda. The Parties acknowledge that the provisions of the Amended Agreement require a close degree of cooperation and that new information and future events may demonstrate that changes are appropriate with respect to the details of performance of the Parties under this Amended Agreement. The Parties desire, therefore, to retain a certain degree of flexibility with respect to the details of performance for those items covered in general terms under this Amended Agreement. If and when, from time to time, the Parties find that refinements or adjustments are desirable, such refinements or adjustments will be accomplished through operating memoranda or implementation agreements approved by the Parties which, after execution, will be attached to this Amended Agreement as addenda and become a part hereof.

9.3. Execution of Memoranda . Operating memoranda or implementation agreements may be executed on behalf of City by the City Manager and the City Attorney. In the event a particular subject requires notice or hearing, such notice or hearing will be appropriately given.

Any significant modification to the terms of performance under this Amended Agreement will be processed as an amendment of this Amended Agreement in accordance with this Amended Agreement and must be approved by the City Council.

18 9.4. Effect of Expiration/Termination. Upon expiration or termination of this Amended Agreement: (a) no Party has any further rights or obligation hereunder except for matters which accrued before such expiration or termination and matters which specifically survive expiration or termination under the express terms of this Amended Agreement; and (b) the underlying Project Approvals remain in full force and effect.

ARTICLE 10

MISCELLANEOUS

10.1. Insurance. Before the commencement of any work, Developer must furnish evidence to City that all of the following insurance requirements have been satisfied.

10.2. General. Developer must, throughout the duration of this Amended Agreement, maintain, or cause to be maintained, the insurance specified below, to insure Developer and its employees for liability arising out of the work in connection with the Property, Project and this Amended Agreement at the minimum levels set forth herein, with City being an additional insured on the CGL and excess or umbrella liability insurance.

10.3. Commercial General Liability. Commercial General Liability (“ CGL”) insurance with coverage in an amount not less than $2,000,000.00 general aggregate, $2,000,000.00 per occurrence and $2,000,000.00 products/completed operations, and including contractual liability insurance for the indemnification heretofore provided to City (subject to the policy terms, conditions, definitions and exclusions).

10.4. Business Auto Coverage. Business Automobile Liability insurance with coverage in an amount not less than $1,000,000.00 per accident for bodily injury and property damage, covering all vehicles used by the Developer (personal, company) and its employees, on or within the Project or Property or associated therewith.

10.5. Excess or Umbrella Liability Insurance (Over Primary Coverage ). Such excess coverage must be at least as broad as the underlying coverage and be provided on a “pay on behalf” basis. The excess or umbrella coverage can be not less than $5,000,000 per occurrence/annual aggregate.

10.6. Workers’ Compensation. Coverage must be maintained as required by the State of California.

10.7. Insurance Coverage to be Maintained by Developer ’s Contractors and Subcontractors. Developer must require by contract that its contractors and subcontractors maintain the same CGL, business auto, excess or umbrella liability and workers’ compensation insurance as set forth in subsections (b) through (e), inclusive, hereof, except that the required minimum limits for the CGL coverage will be $2,000,000 general aggregate, $2,000,000 per

19 occurrence and $2,000,000 products/completed operations, with excess or umbrella liability insurance in the amount of $2,000,000 per occurrence/annual aggregate. The CGL policy must include contractual liability insurance (subject to the policy terms, conditions, definitions and exclusions).

10.8. Construction; Interpretation . This Amended Agreement has been reviewed and revised by legal counsel for Developer and the City, and no presumption or rule that ambiguities may be construed against the drafting party apply to the interpretation or enforcement of this Amended Agreement.

10.9. Agreement Constitutes Legislative Act. Developer acknowledges and agrees that City has approved and entered into this Amended Agreement in the sole exercise of its legislative discretion and that the standard of review of the validity and meaning of this Amended Agreement will be that accorded legislative acts of City.

10.10. Cooperation; Further Assurances. Each Party will: (a) deal fairly and in good-faith with the other Parties; (b) not impede the other Parties ’ right to receive the benefits of this Amended Agreement; (c) cooperate with and provide reasonable assistance to the other Parties in the performance of this Agreement; and (d) execute such documents or take such further actions as may be reasonably necessary to consummate the performance or to carry out the purpose and intent of this Agreement.

10.11. Counterparts; Electronic Signatures . This Amended Agreement, and any documents implementing this Amended Agreement, may be executed in multiple counterpart originals, each of which is deemed to be an original and all of which when taken together will constitute one and the same instrument. In accordance with Government Code §16.5, the Parties agree that this Amended Agreement, agreements ancillary to this Amended Agreement, and related documents to be entered into in connection with this Amended Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature

10.12. Entire Agreement. The Recitals set forth above in this Amended Agreement and the Exhibits attached hereto are incorporated by references into this Amended Agreement as an integrated portion hereof. This Amended Agreement, including all such Recitals and Exhibits, constitutes the entire agreement of the parties regarding the subject matter hereof, and all prior or contemporaneous agreements and understandings, whether written or oral, are superseded.

10.13. Governing Law/Jurisdiction. This Amended Agreement will be governed, construed and enforced in accordance with the laws of the State of California, and the state courts of Los Angeles County will have jurisdiction.

10.14. Legal Challenges—Defense and Indemnification.

Cooperation in the Event of a Legal Challenge.

20 In the event of any administrative, legal or equitable action or other proceeding instituted by any person or entity not a party to the Amended Agreement challenging the validity of any provision of this Amended Agreement; challenging any agreement between City and other government agencies entered into at the request of Developer to facilitate the development of the Property; challenging any of the Project Approvals; or challenging the sufficiency of any environmental review of either this Agreement or any Approval under CEQA (each a “Third Party Challenge”), each party must cooperate in the defense of such Third -Party Challenge, in accordance with this Section. In light of the Parties ’ mutual interests in successfully defending against a Third-Party Challenge, the Parties will enter into a joint nondisclosure, indemnity, and litigation defense agreement, which, among other things, will require all communications between Developer and City concerning a Third- Party Challenge to be kept confidential and cannot be disclosed by either party without the written consent of the other party. Developer agrees to pay City’s costs of defending a Third- Party Challenge, including all court costs and reasonable attorneys’ fees expended by City (including the time and cost of the City Attorney) in defense of any Third- Party Action. Developer may select its own legal counsel to represent Developer ’s interests in any Third -Party Challenge at Developer ’s sole cost and expense. City agrees that it will not enter into a settlement agreement to any Third -Party Challenge without Developer ’s written consent. Developer ’s obligation to pay City’ s costs in the defense of a Third -Party Challenge does not extend to those costs incurred on appeal unless otherwise authorized by Developer in writing. If Developer elects, in its sole and absolute discretion, not to contest such litigation challenges, City does not have any obligation to contest such challenges. If City elects to contest such challenges after Developer elects not to contest, City will do so at its sole cost.

Third-Party Challenges Related to the Applicability of City Laws.

The provisions of this Section will apply only in the event of a legal or equitable action or other proceeding, before a court of competent jurisdiction, instituted by any person or entity not a party to this Amended Agreement challenging the applicability to the Project or Project Site of a conflicting City Law (a “Third Party Enforcement Action”):

Cooperation in Case of a Third-Party Enforcement Action.

In the event of a Third-Party Enforcement Action, City must (i) promptly notify Developer of such action or proceeding, and (ii) cooperate with Developer so as to most effectively respond to the Third-Party Enforcement Action. In no event will City take any action that would frustrate, hinder, or otherwise complicate Developer ’s efforts to respond. The Parties to this Amended Agreement agree to cooperate, to the maximum extent permitted by law, in the defense of such action or proceeding. For purposes of this Section, the required cooperation between the Parties includes, without limitation, developing litigation strategies, preparing litigation briefs and other related documents, conferring on all aspects of the litigation, developing settlement strategies, and, to the extent permitted by law, jointly making significant decisions related to the relevant litigation, throughout the course thereof. In light of the Parties ’ mutual interests in successfully defending against a Third -Party Enforcement Action, all communications between Developer and City concerning a Third-Party Enforcement Action must be kept confidential and cannot be disclosed by either party without the written consent of the other party.

21 Litigation Costs.

City’s costs of defending any Third -Party Enforcement Action, including all court costs, and reasonable attorneys’ fees expended by City (including the time and cost of the City Attorney) in defense of any Third -Party Enforcement Action, as well as the time of City ’s staff spent in connection with such defense (the “Enforcement Action Defense Costs” ), will be paid in accordance with this Amended Agreement. Notwithstanding the forgoing, in no event will the Enforcement Action Defense Costs extend to, nor will Developer or the Project be obligated to pay, any costs incurred on appeal unless otherwise authorized by Developer in writing.

Settlement.

City may not enter into a settlement agreement or take any other action to resolve any Third-Party Enforcement Action without Developer ’s written consent. City cannot, without Developer’s written consent, take any action that would frustrate, hinder or otherwise prevent Developer’s efforts to settle or otherwise resolve any Third-Party Enforcement Action.

Effect of Judgment.

Provided that City complies with this Section and provided that Developer is a party to the relevant Third-Party Enforcement Action, Developer agrees to be bound by any final judgment (i.e., following all available appeals) arising out of a Third-Party Enforcement Action and further agrees that no default under this Amended Agreement will arise if such final judgment requires City to apply to the Project or Project Site a City Law that conflicts with Applicable Law or this Agreement.

Defense and Indemnity.

Developer must defend and indemnify City from and against any and all damages, claims, costs and liabilities arising out of the personal injury or death of any third-party, or damage to the property of any third-party, to the extent such damages, claims, costs or liabilities result from the construction of the Project by Developer or by Developer’s contractors, subcontractors, agents or employees. Nothing in this Section will be construed to mean that Developer must defend or indemnify City from or against any damages, claims, costs or liabilities arising from, or alleged to arise from, activities associated with the maintenance or repair by City or any other public agency of improvements that have been offered for dedication and accepted by City or such other public agency or for any other public improvements constructed by City or constructed by Developer at direction of City. City and Developer may from time to time enter into subdivision improvement agreements, as authorized by the Subdivision Map Act, which agreements may include defense and indemnity provisions different from those contained in this Section. In the event of any conflict between such provisions in any such subdivision improvement agreement and the provisions set forth above, the provisions of such subdivision improvement agreement will prevail.

Effect on Term.

22 The Term of this Amended Agreement will be tolled from the initiation of any Litigation until final court action is taken in such Litigation.

10.15. Notices. All notices, demands, correspondence and communications ( “Notice”) must be in writing and must be either personally delivered or sent by certified mail, postage prepaid, return receipt requested, or delivered by a nationally recognized overnight courier service (which provides a delivery receipt), at the addresses set forth below. Any such Notice will be deemed received on the date of personal delivery or on the date of receipt (or refusal to accept delivery) set forth in the certified mail receipt if sent by U.S. mail or in the receipt provided by the overnight courier service if sent by such service.

City: City of Monterey Park
320 West Newmark Avenue
Monterey Park, California 91754
Attention: Inez Alvarez, City Manager
E-Mail: [email protected]

With a copy to: Buke, Williams & Sorensen
444 South Flower St., 40th Floor
Los Angeles, CA 90071
A ttn: Mr. Karl H. Berger, City Attorney
E-Mail: [email protected]

Developer: Vincent Tsang
Rykadan Management Inc.
411 E. Huntington Drive, Suite #107-505,
Arcadia, CA 91006
Telephone: (626) 374-8881
E-Mail: [email protected]

With a copy to: Richard A. McDonald, Esq.

Law Office of Richard A. McDonald
Of Counsel, Stoner Carlson, LLP
301 E. Colorado Blvd., Suite 320
Pasadena, CA 91101
Telephone: (626) 356 - 4801
Email: [email protected]

10.16. Private Undertaking . It is expressly understood and agreed by the Parties the development contemplated by this Amended Agreement is a private development, no Party is acting as the agent of any other Party in any respect hereunder, and Developer has full power and exclusive control over its properties subject only to the limitations and obligations of Developer under the Vested Rules and this Amended Agreement. Nothing contained in this Amended

23 Agreement or in any document executed in connection with this Amended Agreement will be construed as making City and Developer joint venturers or partners.

10.17. Recordation. City will use best efforts to record a Memorandum of this Amended Agreement with the Los Angeles County Recorder within 10 days after the Effective Date, pursuant to Development Agreement Statute § 65868.5. Thereafter, if this Amended Agreement is terminated, modified or amended as provided herein, the City will record notice of such action with the Los Angeles County Recorder.

10.18. Section Headings. Article and Section headings in this Amended Agreement are inserted for convenience only and are not intended to be used in interpreting or construing the terms, covenants or conditions of this Amended Agreement.

10.19. Severability. If any provision or term of this Amended Agreement, or the application of any provision or term of this Amended Agreement to any particular situation, is held by a court of competent jurisdiction to be invalid, void or unenforceable, then the remainder of the Amended Agreement is unaffected and will remain in full force and effect unless enforcement of the Amended Agreement, with such invalidation, would be unreasonable or inequitable under the circumstances or would frustrate the purposes of the Amended Agreement or the rights and obligations of the Parties there under.

10.20. Successors and Assigns; Covenants Running with the Land. Subject to the provisions of Section 7.1 governing assignment, the rights and obligations of Developer under this Amended Agreement will be binding upon and inure to the benefit of successor Owners of all or any portion of the Property and will be covenants running with the land.

10.21. Third-Party Beneficiaries. This Amended Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns, including the Owners. No other Person has any right of action based upon any provision of this Amended Agreement.

10.22. Unavoidable Delays or Events. In addition to specific provisions of this Amended Agreement, performance by any Party hereunder will not be deemed to be in default where delays or defaults are due to war, terrorism, pandemic, insurrection, riots, floods, earthquakes, fires, casualties, governmental restrictions imposed or mandated by governmental entities (but only as to delays or performance by Developer), enactment of conflicting state or federal laws or regulations (but only if the Party claiming delay complies at all times with the p rovisions of this Amended Agreement pertaining to such conflicting laws), litigation against this Agreement or any of the Project Approvals, referendum of this Amended Agreement or any of the Project Approvals or similar bases for excused performance ( “Unavoidable Delay” or “Unavoidable Event”). Upon the occurrence of an Unavoidable Event, the time for performance will be extended, for the duration of the Unavoidable Delay.

24 10.23. Waiver. No waiver of any provision of this Amended Agreement is effective unless it is in writing and signed by a duly authorized representative of the Party against whom enforcement of the waiver is sought. No waiver of any right or remedy is deemed a waiver of any right or remedy with respect to any other occurrence or event.

10.24. Authorization. Each person executing this Amended Agreement represents and warrants that he or she is authorized and has the legal capacity to execute and deliver this Amended Agreement on behalf of the Party for which execution has been made.

25 IN WITNESS WHEREOF, the Parties have executed this Amended Development Agreement to be effective as of the Effective Date first set forth above. “CITY”

CITY OF MONTEREY PARK
a municipal corporation

Dated: July __, 2026 By: _____________________________ _________, Mayor
ATTEST:

________________________
Maychelle Yees, City Clerk

APPROVED AS TO FORM:

KARL H. BERGER, CITY ATTORNEY

__________________________
Joaquin Vazquez, Assistant City Attorney

“Developer”
RYKADAN 005, LLC
a California Limited Liability Company

Dated: July ___, 2026 By: _____________________________ Vincent Tsang, Manager

APPROVED AS TO FORM:

By: _________________________
Richard A. McDonald, Esq.

16826.1:10087292.2 EXHIBIT A
Exhibit A
The Property

16826.1:10087292.2 EXHIBIT B
Exhibit B
Conditions of Approval

Exhibit B

CONDITIONS OF APPROVAL
114 E. Garvey Avenue
(the “Property”)

In addition to all applicable provisions of the Monterey Park Municipal Code (“MPMC”), Rykadan 005, LLC (the “ Developer”), agrees to comply with the following conditions of approval (“Project Conditions”) for the Project approved under this Amended Development Agreement and the related Project Approvals. In addition to these Project Conditions, the Developer must comply with all applicable provisions of the Monterey Park Municipal Code ("MPMC") and other applicable law. Unless the contrary is stated or clearly appears from the context, capitalized terms used in these Project Conditions have the meanings set forth in the Amended Development Agreement or, if not defined therein, the MPMC.

Unless the contrary is stated or clearly appears from the context, the construction of words and phrases used in the Project Conditions are the definitions set forth in the MPMC.

STANDARD PROJECT CONDITIONS:

1. The Developer agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City’s approval of Tentative Map No. 26-05 except for such loss or damage arising from the City’s sole negligence or willful misconduct. Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the City approval of Tentative Map No. 26- 05, the Developer agrees to defend the City (at the City’s request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of this section “the City” includes the City of Monterey Park’s elected officials, appointed officials, officers, and employees. The Developer 's obligations under this condition do not apply to any action or proceeding alleging that the City violated the Developer 's rights or deprived the Developer of benefits or protections provided by a housing reform law, and nothing in this condition requires the Developer to indemnify, defend, or hold harmless the City with respect to any such claim.

2. This Amended Development Agreement and the related Project Approvals, as applicable applies only to the Project as shown in the Project Approvals reviewed and approved by the City Council and on file with the Planning Division. Before the Building Official issues a building permit, the Developer must submit construction plans demonstrating substantial compliance with the plans and conditions of approval on file with the Planning and Building and Safety Division and these Project Conditions. Any subsequent modification must be submitted to the Director of Community Development for a determination whether additional Planning Commission or City Council review is required.

3. The Property must be developed and used in the manner approved and must be in substantial conformity with the approved plans dated August 5, 2026, unless revisions or additional conditions are specifically required by these Project Conditions . Any modifications that are not in substantial conformance, as determined by the Director of Community Development, require an amendment.

4. Amended Development Agreement and the related Project Approvals, as applicable, runs with the land. All rights and obligations, including the responsibility to comply with the Project Conditions, are binding upon the property owners’ successors in interest, to the extent provided in the Amended Development Agreement and applicable law .

The Project Conditions may be modified, terminated, or abandoned in accordance with applicable law.

5. Any proposed deviations from the approved plans or the Amended Development Agreement Project Conditions must be submitted to the Director of Community Development for review and approval. Any unapproved deviations from the approved Project will constitute a violation of the approval.

6. When exhibits or written Project Conditions are in conflict, the written Project Conditions prevail.

7. The effectiveness of this P roject approval will be suspended for the time period that any Project Condition is appealed whether administratively or as part of a legal action filed in a court of competent jurisdiction. If a court of competent jurisdiction invalidates any Project Condition, the City may review the Project and impose substitute conditions in accordance with applicable law.

8. The Developer must comply with all requirements of this Resolution, the MPMC, policies and regulations of any California, federal or local agency with jurisdiction over the Project, and any other applicable law.

9. Anything which is not shown on the approved plans or otherwise not specifically approved as part of this entitlement is not approved.

10. The Developer must reimburse the City for all attorneys' fees expended by the City that are directly related to the processing of the Project. The City will not issue a Final Certificate of Occupancy or other final occupancy approval until all attorneys' fees are paid by the Developer.

11. The Developer’s failure to comply with, or breach of, any condition can, in addition to any other civil or criminal action, result in modification or revocation of Project Approvals. The City may, in accordance with applicable law, undertake action and incur costs to effect compliance. All such costs including, without limitation, attorney’s fees, must be reimbursed by the Developer or property owners in accordance with applicable law.

12. All conditions of approval must be included in the construction drawings submitted for plan check and on the construction drawings for which a building permit is issued.

13. The Developer must contact the City Planner, or designee, to arrange any site inspections the City requires to verify compliance with the Project Conditions.

14. The Developer must sign and notarize an affidavit acknowledging acceptance of these Project Conditions and return it to the Planning Division within 30 days of the effective date of the Amended Development Agreement, or before the Building Official issues a building permit.

15. This decision is not effective until the Developer acknowledges acceptance of all Project Conditions, and the appeal period has expired, a waiver of right to appeal has been filed, or if an appeal is filed, a final decision has been made on the appeal. By exercising any entitlement granted hereunder, Developer acknowledges agreement with the Project Conditions.

16. The Developer must comply with all Project Conditions related to the P roject before the Building Official will issue a certificate of occupancy.

PLANNING CONDITIONS

17. Any proposed signage or murals must be processed in accordance with the Monterey Park Municipal Code (MPMC), unless otherwise authorized under the Amended Development Agreement.

18. The Developer must provide a security guard and/or other form of surveillance during non-business hours to prevent unauthorized access to the plaza.

19. The tentative map expires twenty -four months after City Council approval if the use has not commenced or if improvements are required but construction has not commenced under a valid building permit. A total of four, one- year, extensions may be granted by the City Council upon finding a good cause. The total time of extensions cannot exceed six years from the initial expiration date. An application requesting an extension must be filed with the Community Development Department.

20. A final map must be approved and recorded before the Building Official issues a certificate of occupancy.

21. The Property must be kept in a clean and safe condition by, at a minimum, performing all of the following tasks:
a. Promptly removing, storing, and disposing of all trash, litter, rubbish and debris on the Property.
b. Promptly removing graffiti placed upon the Property within forty-eight hours of its occurrence;
c. Keeping driveways, sidewalks, park strips, fire access roads and streets on or adjacent to the Property clear and clean; and

d. Providing adequate lighting on the Property.

22. All required landscaping and irrigation systems must be installed and fully operational prior to building permit final inspection. If constructed in phases, this requirement will apply to the applicable phase prior to approval of the final inspection for that phase.

23. Landscaping and irrigation must be maintained in good condition at all times as determined by the Director of Community Development.

24. A detailed landscaping and irrigation plan for all landscaped areas associated with the Project must be submitted for review and approval , prior to landscaping work commencing. The landscaping and irrigation plan must identify the type, size, quantity of all proposed plant materials and irrigation equipment, and phasing, if applicable. All landscape areas must be served by an automatic irrigation system, and the plan must comply with California’s Model Water Efficient Landscape Ordinance (“MWELO”).

25. The Developer must install signage throughout the Property to prevent parking in drive aisles, fire lanes, and overnight parking by unauthorized vehicles.

26. The final exterior material s and colors must be maintained throughout the Project’s life. Any material deviation from the approved elevations, materials, or colors is subject to review and approval by the Director of Community Development.

27. If a Phasing Plan is proposed for the construction of the Project, such Phasing Plan must identify the construction activities and improvements included in each phase and must be reviewed and approved by the Planning Division, Building Division and Engineering Division.

TRIBAL CULTURAL RESOURCES (“TCR”) CONDITIONS

28. The Developer must retain a Native American Monitor from or approved by the Gabrieleño Band of Mission Indians – Kizh Nation, subject to lead agency oversight. The Developer must retain the monitor before the commencement of any “ground-disturbing activity” for the Project at all Project locations (i.e., both on-site and any off -site locations that are included in the project description/definition and/or required in connection with the P roject, such as public improvement work). “Ground- disturbing activity” includes, but is not limited to, demolition, pavement removal, potholing, auguring, grubbing, tree removal, boring, grading, excavation, drilling, and trenching.

29. A copy of the executed monitoring agreement must be submitted to the City before the commencement of any grading or excavation.

30. The monitor will complete bi-weekly monitoring logs that will provide descriptions of the relevant ground-disturbing activities, the type of construction activities performed, locations of ground-disturbing activities, soil types, cultural -related materials, and any other tribal cultural resources or related discoveries identified during monitoring

activities. Monitor logs will identify and describe any discovered Tribal Cultural Resources (TCRs), including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or “TCR”), as well as any discovered Native American (ancestral) human remains and burial goods. The monitor or Tribe will provide copies of monitor logs to the Developer or lead agency upon written request, consistent with applicable confidentiality requirements.

31. On-site tribal monitoring will conclude upon the latter of the following (1) written confirmation to the Kizh from a designated point of contact for the Developer/lead agency that all ground- disturbing activities and phases that may involve ground- disturbing activities on the P roject site or in connection with the P roject are complete; or (2) written notification from the Developer or lead agency, following consultation with the Kizh, that no future, planned construction activity and/or development/construction phase at the Property possesses the potential to impact Kizh TCRs.

32. Unanticipated Discovery of TCR Objects (Non- Funerary/Non-Ceremonial): Upon discovery of any tribal cultural resources, all ground- disturbing activities in the immediate vicinity of the discovery will cease within a reasonable buffer, as determined in the field by the qualified archaeologist in consultation with the Kizh monitor and will not resume until the discovered TCR has been fully assessed by the Kizh monitor and/or Kizh archaeologist. Treatment and disposition of discovered TCRs must be developed in consultation between the Kizh, the lead agency, and the P roject archaeologist, with deference to Kizh recommendations regarding culturally appropriate treatment, consistent with applicable law.

33. Unanticipated Discovery of Human Remains and Associated Funerary or Ceremonial Objects:
a. Native American human remains are defined in Public Resources Code section 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute.
b. If Native American human remains and/or grave goods are discovered or recognized on the Property, then Public Resource Code section 5097.98 as well as Health and Safety Code Section 7050.5 must be followed. c. Human remains and grave/burial goods will be treated alike per California Public Resources Code section 5097.98(d)(1) and (2).
d. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods.
e. Any discovery of human remains/burial goods must be kept confidential to prevent further disturbance.

ENGINEERING CO

NDITIONS

34. The Project requires approval of a Tentative Map in accordance with applicable law.

35. The Developer must submit street improvement plans for the Project frontage along Garvey Avenue and Garfield Avenue for review and approval by the City Engineer.

Street improvements must include pavement grinding of 3 inches and an overlay consisting of a 2-inch base course and a 1-inch rubberized cap along the length of the property frontage to the centerline of the street. The City Engineer may require localized pavement repairs based on street conditions. Developer must construct or replace, as necessary, sidewalks, curb and gutter, ADA curb ramps, and driveway approaches to the satisfaction of the City Engineer. Any damage caused by street improvements or utility work during construction shall be repaired before final Project acceptance. All existing driveways not proposed for use shall be removed and replaced with curb, gutter, and sidewalk.

36. Developer must submit landscape and irrigation plans for the public right-of-way along Garvey Avenue and Garfield Avenue, including all parkway trees and tree species, for review and approval by the City Engineer. Developer must maintain all landscaping and irrigation improvements within the public right-of-way adjacent to the Project.

37. All public improvements must comply with applicable City standards and specifications.

All public improvements must be completed and accepted by the City Engineer or secured by a public improvement guarantee and agreement acceptable to the City, before the City Council approves the final map.

38. The Project includes a double left-turn pocket on Garfield Avenue, generally as shown on the approved Project plans. If conditions along Garfield Avenue or at the Roselyn Place intersection change before approval of the street improvement plans, Developer must revise the street improvement plans, including striping, to reflect those changed conditions, subject to approval by the City Engineer. There must be no left -turn movement from the Project onto Garfield Avenue.

39. Developer must construct the northbound loading zone lane similar to the design of a bus pad to the satisfaction of the City Engineer to accommodate trash truck operations and loading zone truck traffic.

40. Trash enclosures must include a solid roof and a primed P-trap connected to the sanitary sewer.

41. Under the Los Angeles County Municipal Separate Storm Sewer System (MS4) Permit, issued under the National Pollutant Discharge Elimination System (NPDES) Program, Developer must obtain a General Construction Storm Water Permit from the State Water Resources Control Board, prepare a Low Impact Development (LID) Plan and a Storm Water Pollution Prevention Plan (SWPPP), and provide the City with the Waste Discharge Identification (WDID) Number. Upon approval of the LID Plan and SWPPP, the Developer must submit an electronic copy of the approved plans, including site drawings, before Engineering issues a grading permit.

42. All improvement plans, including grading and public improvement plans, must be based upon City approved criteria. The Developer must obtain benchmark references from the Engineering Division.

43. Before the Building Official issues a building permit, the Developer is responsible for ascertaining and paying all City development fees, such as, but not limited to, plan check fees, sewer deficiency and/or connection fees, water meter fees, and metered water service impact fees as required by the MPMC. The Water Division will determine water service requirements after the Developer submits completed water meter sizing sheets.

44. A site grading and drainage plan must be prepared for review and approval by the City Engineer. The property drainage must be designed to the City Engineer’s satisfaction.

Drainage from adjacent properties must not be blocked and must be accommodated to the satisfaction of the City Engineer. A hydrology and hydraulic study of the site must be submitted to the City Engineer for review and approval. Applicant is responsible for the cost of any permit from Los Angeles County if it is determined that improvements are required that impact the County facilities including all related construction improvements.

45. All storm drainage facilities serving the development must accommodate a 25- year storm. If existing storm drain facilities are inadequate, they must be upgraded as necessary. All storm drain facilities must be designed and constructed to Los Angeles County Department of Public Works standards and specifications, as approved by the City Engineer.

46. The grading and drainage plan must incorporate all applicable recommendations from the geotechnical report.

47. A final water plan must be submitted for review and approval by the City Engineer. This plan must substantiate adequate water service for domestic flow, fire flow, irrigation, and must identify backflow prevention.

48. The sewer and water line points of connection must be clearly identified on the water/sewer plan. The plan must include connection details of all domestic flow, fire line, irrigation line, and sewer clean-outs, and show all existing and proposed utilities.

49. A sewer connection reconstruction fee will be assessed when the Building Official issues a building permit in accordance with the provisions of Chapter 14.06 of the MPMC.

50. The need for preserving existing street trees or providing additional street trees will be reviewed and approved by the City Engineer. Upon completion, the City will provide maintenance. The requirement to plant new street trees, if applicable, will be evaluated by the City Engineer based on the final approved improvements.

51. The Developer must obtain an encroachment permit before performing any work with public rights-of-way.

52. The Developer must provide proposed import/export route.

53. The Developer must provide as-built plans for all utilities plan in AutoCAD format and PDF format after the Project is complete.

54. Record the final map after approval of the map by the City Engineer and acceptance of required bonds and agreements by the City Council. The Permitee will provide the City with (1) transparent 4 mil thick mylar tracing, one (1) electronic file of approved final map tracings transferable to the City’s AUTOCAD and GIS systems , and two (2) blueprints of the recorded map, which must be filed with the City Engineer within three (3) months of recordation.

55. Before submitting the final map for City approval, the Developer must provide written proof that there are no liens against the subdivision for unpaid taxes or special assessments and must submit L.A. County tax bill, tax payment receipt, and copy of the cancelled check.

56. [RESERVED]

57. All electric, telephone, and cable TV utility services must be installed fully underground in accordance with required City standards. Satisfactory provisions for all other utilities and service connections, including water, sewer, and gas, must be made in accordance with City and public utility standards.

F
IRE DEPARTMENT CONDITIONS:

64. The Fire Chief may determine the applicability and scope of the Fire Department conditions.

65. Fire Department access must be provided within 150 feet of all exterior portions of any structure. A minimum of three points of access are required.

66. Fire Department vehicular access roads must be installed and maintained in a serviceable manner before and during the construction.

67. Minimum required fire flow and fire hydrants: All structures must have the minimum fire flow (GPM) in accordance with Appendix B and the quantity and spacing of fire hydrants in accordance with Appendix C 2022 California Fire Code (CFC).

68. A current fire flow report (not older than 6 months), performed by the City of Monterey Park Water Department, must be provided to the Fire Department when applying for building permits to construct or add to any structure. Fire flow test data must be provided prior to approval of plans.

69. Provide a fire hydrant plan, including existing and new hydrants. Identify public and private hydrants.

70. Aerial Fire Apparatus Access Roads: Building exceeding 30 feet in height above the lowest level of Fire Department Vehicle Access must comply with requirements of CFC Section D105.1 through D105.4. All fire lanes must measure a minimum of 28 feet. Buildings must also have an approved fire apparatus access road capable of accommodating fire department aerial apparatus. Overhead utility and power lines must not be located within the aerial fire apparatus access roadway.

71. Automatic Fire Alarm/Detection System: An approved manual, automatic, or manual and automatic fire alarm system installed in accordance with the provisions of CFC and NFPA 72 must be provided in new buildings and structures in accordance with Section 907.2.1 through 907.2.23 and provide occupant notification in accordance with Section 907.10, unless other requirements are provided by another section of this Code.

72. Emergency Responder Radio Coverage: Building must have approved radio coverage for emergency responders within the building based upon the existing coverage level of the public safety communication system per 2022 CFC Section 510.

73. The applicant must provide a formal emergency access plan. The plan must highlight fire access from the public way, designated fire lanes, points of entry, Knox box locations, and 150-foot hose lays from standpipes on all floors and the roof level.

74. The Developer must provide an automatic sprinkler system and standpipe system throughout all structures in accordance to the provisions of the California Building Code and the California Fire Code.

75. All access gates across roadways or entrances to facilities must fail unlocked/open in the event of loss of power. All access gates and main entrance doors must have a Knox Box or Knox Control Key Switch installed.

76. The Fire Department may permit deferred submittal of:
a. F ire protection plans, including, without limitation, fire sprinkler, fire alarm, restaurant fire suppression system, smoke alarm system, standpipe systems, and fire hydrants. b. Emergency responder radio coverage.
c. Fire permits, as required for the Project, must obtained prior to occupancy.

77. Prior to building permit issuance, the Developer must contact the owner or authorized representative of the adjacent hotel property to discuss and analyze how the proposed Project construction may affect the hotel property’s existing means of egress system and provide the Fire Department with a schematic fire protection and life safety report for review and approval.

POLICE DEPARTMENT CONDITIONS:

78. The Developer must provide a security camera plan to be reviewed and approved by the Monterey Park Police Department.

BUILDING & SAFETY CONDITIONS:

79. At plan check submittal, the Developer must include all Project conditions and a copy of the Planning Decision letter on the second sheet of building plans.

80. Plans submitted to Building Division must comply with all applicable codes in effect.

81. The Developer must pay all school development fees to the applicable school district before the Building Official issues a building permit.

82. The Developer must pay all required County of Los Angeles Sanitation District fees before the Building Official issues a building permit.

83. Before plan check submittal, the Developer must file a n address assignment application that must be filed with Engineering Division.

84. The Developer must submit plans prepared and stamped by a licensed architect i n accordance with section 5538(b) of the California Business and Professions Code.

85. The Developer must provide st ructural calculations prepared under the direction of an architect, civil engineer or structural engineer.

86. A geotechnical and soils investigation report is required. T he engineer of record, as indicated on the first sheet of the approved plans, must include the following:
a. Observation of cleared areas and benches prepared to receive fill; b. Observation of the removal of all unsuitable soils and other materials; c. A pproved of soils to be used as fill material;
d. Inspection of compaction and placement of fill;
e. T esting of compacted fills; and
f. I nspection and review of drainage devices.

87. The Developer must retain the soils engineer preparing the Preliminary Soils and/or Geotechnical Investigation accepted by the City for observation of all grading, site preparation, and compaction testing. Observation and testing must not be performed by another soils and/or geotechnical engineer unless the subsequent soils and/or geotechnical engineer submits and has accepted by the Public Works Department, a new Preliminary Soils and/or Geotechnical Investigation.

88. A grading and drainage plan must be approved by the Engineering Division before issuance of the building permit. The grading and drainage plan must indicate how all storm drainage including contributory drainage from adjacent lots is carried to the public way or drainage structure approved to receive storm water.

89. Projects must comply with the requirements of the NPDES (NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM) before issuance of a Demolition, Grading & Building permit. These include requirements for sediment control, erosion control, and construction activities control to be implemented on the Property.

90. All California disability access regulations for accessibility and adaptability must be satisfied.

91. The property must be surveyed and the boundaries must be marked by a land surveyor licensed by the State of California.

92. Foundation inspection will not be made until the excavation has been surveyed and the setbacks determined to be in accordance with the approved plans by a land surveyor licensed by the State of California. THIS NOTE MUST BE PLACED ON THE FOUNDATION PLAN IN A PROMINENT LOCATION.

93. The Developer must obtain electrical plan check approval.

94. The Developer must obtain mechanical plan check approval.

95. The Developer must obtain plumbing plan check approval . Plumbing fixtures must be provided as required by Chapter 4 of the California Plumbing Code. Additional fixtures may be required if not compliance.

96. The Project must comply with Cal Green Non Residential and Residential requirements.

97. The Developer may not place form work or other construction materials on adjacent property without written approval of the affected property owner.

98. Construction to provide electric vehicle infrastructure and facilitate electric vehicle charging must comply with Section 5.106.5.3.1 of the CalGreen Code and must be provided in accordance with regulations in the California Building Code and the Californi a Electrical Code.

99. Forty (40) percent of the total number of parking spaces must be equipped with low power Level 2 EV charging receptacles. EV charging receptacles required by this section must be located in at least one assigned parking space per dwelling unit where assigned parking is provided but need not exceed forty (40) percent of the total number of assigned parking spaces provided on the site per Section 4.106.4.2.2 of the CalGreen Code.

100. Ten (10) percent of the total number of parking spaces must be equipped with Level 2 EV chargers. At least fifty (50) percent of the required EV chargers must be equipped with J1772 connectors. Where common use parking or unassigned parking is provided, EV chargers must be located in common use or unassigned parking areas and must be available for use by all residents or guests per Section 4.106.4.2.2 of the CalGreen Code.

101. Fire Walls separating the buildings must meet the continuity requirements, extending vertically from the podium level to the roof per Section 706.6, as well those for horizontal continuity per Section 706.5. In addition, they must comply with the structural stability requirement per Section 706.2.

102. The building elements must have a fire-resistance rating not less than that specified in Table 601 and exterior walls must have a fire-resistance rating not less than that specified in Table 705.5. Where required to have a fire- resistance rating by Table 601, building elements must comply with the applicable provisions of Section 703.2.

103. Fire-resistance rating requirements for exterior walls based on fire separation distance of 0 to 10 feet must comply with Table 705.5 of the Building Code.

104. Maximum area of exterior wall openings and degree of open protection based on fire separation distance of 0 to 10 feet must comply with Table 705.8 of the Building Code.

Complying with this requirement may restrict the amount of openings proposed on the easterly and southerly exterior walls of the parking garage and on the southerly exterior wall of the Residential Building B. Additional requirements apply if the easterly exterior wall is adjacent to an egress court.

105. The egress court of width less than 10 feet serving as an exit discharge of the interior exit stairways located along the easterly and southerly property line is subject to the fire- resistance rating and open protection requirements per Section 1029.3.

106. Elevator hoistway door opening serving the residential dwelling units must be protected by an enclosed lobby in accordance with Section 3006.2 and 3006.3 unless conditions in the exception are satisfied.

107. Condominiums consisting of four or more attached dwelling units with an elevator must meet the requirements of the California Building Code Section 1106A.

108. Prior to the issuance of building permit, a written consent must be obtained from the current easement holder(s) for any proposed development encroaching into existing easement(s).

109. All fire sprinkler hangers must be designed, and their location approved by an engineer or an architect. Calculations must be provided indicating that the hangers are designed to carry the tributary weight of the water filled pipe plus a 250- pound point load. A plan indicating this information must be stamped by the engineer or the architect and submitted for approval prior to issuance of the building permit.

110. Separate permit is required for Fire Sprinklers.

111. City records indicate the proposed site is a combination of lots under common ownership. A parcel merger by document must be processed prior to issuance of the building permit.

112. Building permits may not be issued until the final map has been prepared to the satisfaction of the Building Official.

113. Mechanical ventilation in accordance with Los Angeles County Building Code is required for the parking garage.

By signing this document, Rykadan 005, LLC (“Developer”), certifies that he/she/they have read, understood, and agrees to the Project Conditions listed in this document.

(Developer)

By signing this document, Rykadan 005, LLC (“Property Owner”), certifies that he/she/they have read, understood, and agrees to the Project Conditions listed in this document.

(Property Owner)

(Property Owner)

(If corporation or similar entity, need two officer signatures or evidence that one signature binds the company)

16826.1:10087292.2
Ex
hibit C
Approved Development Plan

SUMMARY:

PERMITTED LAND USES:

The Project is a mixed use development with 169 dwelling units over commercial space and parking on an approximate 87,934.7 square foot lot after dedications (with

3.5’ along Garvey Avenue, 15’ along Garfield Avenue, and 25’ radial dedication at the corner of Garvey and Garfield.) The parking levels consist of enclosed above grade. The proposed Floor Area Ratio ("FAR") is 2.34.

INTENSITY OF USE:
169 Residential Units will include a mixture of 1-Bedroom, 1-Bedroom Plus Den, 2-Bedroom, and 2-Bedroom Plus Den Units.

ZONING
Zone: Central Business (“C-B”)
Overlay 1: Planned Development District (“P-D”)
Overlay 2: Building Recovery Development agreement Zone ("BRDZ") Specific Plan: Garvey/Garfield Specific Plan

MAXIMUM HEIGHT AND SIZE OF BUILDINGS:

Maximum Allowable: 75'-0" To Roof (Excluding Parapets) Per Figure LU-4 Monterey Park 2040
Proposed: Approximately 73'-9" To Roof (Excluding Parapets), not to exceed 75'- 0" Limit
164,214 Square Feet Residential (Net Rentable Area)
4,388 Square Feet Indoor Residential Amenity Space
4,718 Square Feet Residential Lobby/ Business Office
16,328 Square Feet Commercial Tenant Space
Accessory and other Spaces according to
approved plans
240,698 Square Feet Gross Above Grade Floor Area (Not Including Above Grade Parking)

OPEN SPACE (MPMC 21.15.090 D (2))

Common open space provided = 15,440 sf
Private open space = 7,279 sf

Total open space provided: 22,719 sf

PLANTING AREA (MPMC 21.15.090 d (2) (c))

Landscaped planting area within the common open space: approximately 3,936 sf is planted.

PARKING:

Provided Residential = 233 Spaces (1 Space/1 BD, 1.5 Space/2 BD) Provided Commercial/Guest = 110 Spaces.

Total Provided = 343 Spaces (Refer to Traffic Study for Details)

The Project has considered implementation of transportation demand management measures, including a permitted 5% transit adjustment, unbundled parking permitted under Monterey Park Municipal Code Section 21.22.032(D) and paid parking or valet parking management.

BIKE PARKING:

Required: 21 Spaces (7 for Commercial and 14 for Residential)

Provided Residential = 25 Spaces (Long Term Spaces)
Commercial/Guest = 18 Spaces. (Long Term Spaces)
Exterior Spaces = 9 Spaces

Total Provided = 52 Spaces

PROPERTY CHARACTERISTICS

Lot Size: (95,428.8 Square Feet-Pre-Dedication)/ (87,934.7 Square Feet- Post Dedication)

RIGHT-OF-WAY DEDICATIONS
The Project includes the following right-of-way dedications, which are reflected in the approved Tentative Map and associated Project plans:

Lot area prior to dedication: 95,428 square feet
(2.19 acres) Lot area after dedication: 8 8,064 square
feet (2.02 acres)
Lot width: 221.06 feet (pre-dedication) Approximately 206.06 feet (post- dedication) Lot depth: 432.23 feet (pre-dedication) Approximately 428.73 feet (post-dedication)

16826.1:10087292.2
Ex
hibit D
Development Impact Fees

Exhibit D
Fee Estimate1
Development Impact Fees (“DIF”)
Residential Fee Per Unit Number of Units Total
Police $503.00 169 $85,007.00
Fire $418.00 169 $70,642.00
Circulation $1,129.00 169 $190,801.00
Water $2,570.00 169 $434,330.00
Sewer $356.00 169 $60,164.00
Library $194.00 169 $32,786.00
Public Meeting
Facilities
$1,684.00 169 $284,596.00
Aquatics $743.00 169 $125,567.00
Parks $3,730.00 169 $630,370.00
Total Development
Impact Fees
(Residential)
$11,327.00 169 $1,914,263.00
Commercial Fee Per Square
foot
Square Footage Total
Police $0.370 16,300 $6,031.00
Fire $0.350 16,300 $5,705.00
Circulation $3.216 16,300 $52,420.80
Water $0.769 16,300 $12,534.70
Sewer $0.138 16,300 $2,249.40
Library
Public Meeting
Facilities
Aquatics
Parks $0.064 16,300 $1,043.20
Total Development
Impact Fees
(Commercial)
$4.907 $79,984.10
1 The fees listed are an estimate only; the final amounts may be different. These fees do not include time and materials costs associated with processing the Project or administrative costs including, without limitation, third party consultants, and legal f ees.

All such amounts must be paid before the City issues a building permit.

Plan Check Fees
Building Building/Electrical/Mechanical/
Plumbing Plan
$TBD
Fire2 $956.50
Public Works (Consultant Estimate) $TBD
Total Plan Check Fees $TBD
Pe
rmit and Inspection Fees
Building Building/Electrical/Mechanical/
Plumbing Plan
$TBD
Fire $TBD
Public Works Encroachment Permit at $504.00
Inspection at $298.98
per 4 hrs.

Total Plan Check Fees $TBD
Mi
sc. Fees
Record Management $TBD
General Plan Revision $TBD
Strong Motion Tax $TBD
Green $TBD
Water and Fire
Connection
$TBD
School Impact $3.79/sf $TBD
County Sanitation $TBD
2 Fire fees are not based on building valuation. The fees are calculated on an hourly rate plus third party costs. The estimate shown of $956.50 includes review of architectural plans subject to change based on actual third- party consultant rates for revisions, rechecks or incomplete plans. This estimate does not include potential tenant improvements, which are subject to additional plan check and permit fees. Plan check fees for fire protection systems (fire sprinkler, fire alarm, commercial automatic fire extinguishing systems) are not included in the estimate.

ATTACHMENT 2
Amended Development
Agreement No. 26-01
(DA No. 26-01)

16826.1:10087292.2
RE

CORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

CI

TY OF MONTEREY PARK
320 West Newmark Avenue
Monterey Park, CA 91754
Attention: City Clerk
EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code § 6103
(Space Above For Recorder’s Use)
AM

ENDED DEVELOPMENT AGREEMENT
By And Among
City of Monterey Park
And
RYKADAN 005, LLC

1 AM

ENDED DEVELOPMENT AGREEMENT
This AMENDED DEVELOPMENT AGREEMENT ( this, “Agreement”), effective as of July __, 2026 (the, “ Effective Date ”), is entered into by and between (1) the CITY OF MONTEREY PARK, a general law city and municipal corporation (“City”), and (2) RYKADAN 005, LLC , a California limited liability company (“Developer”) (collectively, the “Parties”) , to amend, modify, and otherwise update the Parties’ October 6, 2021 Development Agreement that was recorded on December 7, 2021 as Instrument No. 20211815457. Specifically:

RECITALS
A. This Agreement is executed with reference to Government Code §§ 65864, et seq. (“Development Agreement Statute”). The Development Agreement Statute authorizes the City to enter into binding development agreements with developers having a legal or equitable interest in real property, establishing certain development rights in such property.

B. Pursuant to the Development Agreement Statute, City adopted regulations implementing the Development Agreement Statute as codified in the Monterey Park Municipal Code (“MPMC”).
1 This Agreement was processed and approved in accordance with the MPMC.

C. Developer owns six legal parcels on approximately 2.19 -acres located at the southeast corner of the intersection of Garfield Avenue and Garvey Avenue in City as more specifically described in attached Exhibit “A,” which is incorporated herein by this reference (the “Property”). The Property is unimproved. This Agreement is intended to allow for the development of the Property with the Project as defined in Section 1.16 below and more particularly described in Exhibit “ C.” Specifically, t he proposed mixed- use development project will include 169 residential units and 16,328 square feet of leasable commercial space (the “Project”). The Project site is primarily vacant but includes a privately owned surface parking lot, which will be removed to construct the Project.

In addition, t he commercial uses will be located on the ground floor. Levels 3 through 7 of the building will contain residential uses. The Project will include three levels of on -site parking on the ground floor through third floor, with a total of 343 parking spaces for residential, commercial, and guest use. Resident parking will be secured with a high-speed vehicular gate on Level 2. Last, the Project will provide 22,719 square feet of residential open space.

D. City and Developer previously determined that a development agreement is appropriate for the Project in order to activate the Business Recovery Development Agreement Zone ( “BDRZ”). The Property remains within the BRDZ established through the 2021 Development Agreement. The Parties acknowledge that the amended Project is permitted under the existing Planned Development ("P-D") overlay.2
E. The City Council determined in 2021 and hereby reaffirms that the Project will provide certain public benefits to warrant entering into this Agreement. Those benefits are listed in Section 5.1 of this Amended Agreement. In addition, this Amended Agreement will continue to 1 See MPMC Chapter 21.44.
2 As codified in MPMC Chapter 21.45.

2 facilitate the orderly growth and quality development of the Project in conformance with the goals and policies of the Land Use Element of the General Plan.3 F. Developer would not proceed with the Project without City’ s assurances as set- forth in this Amended Agreement. Developer has and will continue to invest substantial money and effort in reliance upon the City’ s assurances as set -forth in this Amended Agreement.

Developer acknowledges that the City would not enter into this Amended Agreement without the Developer’s assurances as set-forth herein and the anticipated benefits, as described in Section 5.1, to be provided in connection with development of the Project.

G. Pursuant to the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) and the CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq .), the City has determined that no additional environmental review is required for the Project pursuant to Pub lic Resources Code § 21080.66, and that the Project satisfies the eligibility requirements of that section. A Notice of Exemption will be filed as required by CEQA following the City's approval of the Project.

H. The City Council has given the required notice of its intention to adopt this Amended Agreement and conducted public hearings thereon pursuant to the Development Agreement Statute and MPMC . As required by applicable law , the City Council found the provisions of this Amended Agreement and its purposes are consistent with the goals, policies, standards, and land use designations specified in City’ s General Plan and will provide for the orderly development of the Project in accordance with the objectives set forth in the General Plan and the MPMC.

I. On August 5, 2026, the City Council adopted the Approving Ordinance (defined below) approving this Amended Agreement and authorizing its execution. That Ordinance became effective on September 4, 2026. Before approving this Amended Agreement, the City Council made certain findings, as set forth in the Approving Ordinance.

J. The term or duration of this Agreement has a commensurate relationship to the benefit(s) provided to the City.

In consideration of the above Recitals and the mutual covenants set forth herein, the City and Developer further agree as follows:

ARTICLE 1

DEFINITIONS
Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Amended Agreement. Words

3 As adopted pursuant to Measure JJ on November 3, 2020.

3 and phrases not defined in this Section have the meaning set-forth in this Agreement; the MPMC; the Development Agreement Statute; or in common usage.

1.1. “Approving Ordinance” means Ordinance No. XX-XX adopted on August 5, 2026 approving execution of this Amended Agreement.

1.2. “Applicable Rules ” means all of the ordinances, rules, regulations and officials policies governing the Project set -forth in Article 3. without limitation , the City’ s zoning regulations and building regulations, adopted as of the Effective Date. Among other matters, unless otherwise amended by this Amended Agreement, the Applicable Rules set -forth in Article 3 govern the permitted uses of land, the density or intensity of use, subdivision requirements, setbacks, and development standards, the provision for reservation or dedication of land for public purposes, and the design, improvement and construction guidel ines, standards and specifications applicable to the development of the Property.

1.3. “CEQA” means the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq.), and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.).

1.4. “City” means the City of Monterey Park and its successors and assigns.

1.5. “City Council” means the City Council of the City of Monterey Park, its governing body.

1.6. “Developer” means, individually, and “Developers” means, collectively, the Parties who have signed this Amended Agreement as Developer, and, subject to the restrictions on assignment set-forth herein, successor Owners.

1.7. “Development Impact Fees” means fees established and adopted pursuant to the Mitigation Fee Act (Government Code §§ 66000, et seq.) and the MPMC. Development Impact Fees do not mean or include Processing Fees. The Development Impact Fee rates estimated to be paid for the Project are set forth in attached Exhibit “D,” which is incorporated by reference. The final impact fees imposed, unless otherwise provided in this Agreement, will be those in effect at the time of permit issuance.

1.8. “Development Agreement Regulations” means MPMC Chapter 21.44.

1.9. “Development Agreement Statute” means Government Code §§ 65864, et seq.

1.10. “Discretionary Action(s) ” or “ Discretionary Approval(s) ” means a City action requiring the exercise of judgment, deliberation, or discretion on the City ’s behalf, including that of any board, agency, commission, officer , or employee in the process of approving or disapproving a particular activity, as distinguished from any ministerial activity which merely

4 requires City to determine whether there has been compliance with statues, ordinances, or regulations.

1.11. “Effective Date ” means the effective date of this Amended Agreement and commencement of the Term, which is the date the Approving Ordinance becomes effective under California law.

1.12. “General Plan” means the City of Monterey Park General Plan, as it exists on the Effective Date.

1.13. “Minor Change ” means changes, modifications, or adjustments which are consistent with the overall intent of the Project Approvals and which do not materially alter the overall nature, scope, or design of the Project, including without limitation, minor changes in locations of the Project Buildings or infrastructure, relocation of no more than 30% of the total approved leasable Project Building square footage, the construction, realignment of existing, or provision of additional parking spaces within the building envelope of any Parking Areas, and/or the configuration of internal circulation elements. Minor Changes may be approved by staff ministerially at the direction of the City Manager, to the extent permitted under this Agreement applicable law.

1.14. “Party” means, individually, and “Parties” means, collectively, the parties to this Agreement, consisting of City (and its successors and assigns) and the Developer (including, subject to the restrictions on assignment set forth herein, successor Owners).

1.15. “Processing Fees” means all processing fees and charges required by City that are applied uniformly to all construction or development related activity including, without limitation, fees for land use applications, building permit applications, building permits, grading permits, shoring and excavation permits, hauling permits, encroachment permits, demolition permits, subdivision or parcel maps, lot line adjustments, street vacations , inspections, certificates of occupancy, and plan check. Processing Fees does not mean or include Developer Fees.

1.16. “Project” means the mixed -use development project identified as “Celadon,” as approved pursuant to the project approvals and detailed in the Approved Development Plan shown on attached Exhibit “C,” both of which are incorporated herein by this reference.

1.17. “Project Approvals ” means City approvals governing the development of the Project, including this Amended Agreement, as provided for in Ordinance XX-XX.

1.18. “Property” means the real property described in attached Exhibit “A,” which is incorporated herein by reference.

1.19. “Subsequent Permits” is defined in Section 4.1.1.

5 1.20. “Uniform Codes” means those Uniform Codes adopted by reference in the MPMC in accordance with Government Code §§ 50022.2, et seq., as required by applicable law including, without limitation, Health and Safety Code § 18944.5 and Title 24 of the California Code of Regulations. The Uniform Codes govern building and construction standards including, without limitation, the building, plumbing, electrical, mechanical, grading, sign, and fire standards.

1.21. “Vested Rules” are defined in Section 3.1.

ARTICLE 2

GENERAL PROVISIONS

2.1. Property Subject to This Development Agreement. This Agreement benefit s and encumbers the Property. The Property is to be developed with the Project, i.e., the “Celadon” as defined in Section 1.16.

2.2. Term of Agreement. The Term of this Agreement commence s upon the Effective Date and continues in full force and effect for five years pursuant to MPMC § 21.44.020(E), unless terminated earlier by its terms (“Term”).

ARTICLE 3

APPLICABLE RULES, REGULATIONS, AND POLICIES

3.1. Vested Rules. “Vested Rules” mean, collectively, the ordinances, resolutions, rules, regulations, requirements, and official policies of City in effect as of the Effective Date that will govern the following, to the extent applicable to the Property: development agreements; permitted uses; density and building intensity; growth control; zoning designations and regulations; subdivision, improvement, grading, landscaping and signage; design, development, improvement, and construction standards and specifications; standards and requirements for public reservations and dedications, public improvements and facilities; transit, parking, open space, employee housing and other residential housing; standards and requirements for processing of Subsequent Permits (as defined in Section 5.1.1); and , the Project Approvals described in Section 3.3. The Vested Rules do not include: (i) Uniform Codes, or changes thereto from time to time; (ii) Development Impact Fees or fee calculation methods; or (iii) fees imposed by other governmental agencies, whether or not collected by the City on behalf of such agencies. Unless provided for as part of the Project herein, various Subsequent Permits, such as tentative subdivision maps, grading permits and other use permits, are or may be required in order to implement the development of the Project under the terms of the Vested Rules. In addition, Subsequent Permits, such as a change in zoning standards, may be desirable due to changes in development products or standards or for other reasons during the Term of this Agreement. This Amended Agreement and the vested right to develop are not intended to preclude changes or additions to the Vested Rules which are mutually acceptable. Developer takes notice pursuant to Government Code § 66020(d) that City is imposing exactions upon the Project in accordance with the Mitigation Fee Act (Government

6 Code § 66000, et seq .). Developer is informed that it may protest exactions in accordance with Government Code § 66020. Developer knowingly and willingly waives any rights it may have under Government Code § 66020 or any other provision of law to protest the imposition of any fees, dedications, reservations, or exactions imposed on the Project as authorized under this Amended Agreement. Uniform Codes. Section 3.1 does not apply to City’ s enforcement of the “Uniform Codes” regulating building or construction standards that will apply to the Project at the time City issues building permits.

3.3. Changes to the Vested Rules. All Subsequent Permits will be processed in accordance with the procedures, standards, and requirements set-forth in the Vested Rules, except to the extent changes to the Vested Rules are proposed by the Subsequent Permit. In that case, the processing of the Subsequent Permit is not subject to the Vested Rules. Any approved Subsequent Permit will be incorporated into (and amend or supplement, as appropriate) the Vested Rules upon adoption by City and approval by the affected Developer. If Developer proposes any amendment or addition to the Vested Rules, then the application therefor will clearly indicate such request, and, if the application is approved by City, then City’ s action will clearly state the Vested Rules were amended or supplemented. City m ay consider any such request in its sole discretion. If an amendment or supplement to the Vested Rules is adopted by City other than pursuant to an application by Developer, then it may amend or supplement to the Vested Rules only if the affected Developer approves the same in writing.

3.4. Project Approvals. “Project Approvals” means: (a) this Amended Agreement; (b) the City’s CEQA determination for this Project set forth in Recital G above; (c) the Conditions of Approval attached as Exhibit “B”; and (d) any amendments or additions to the Project Approvals and any Subsequent Permits (as defined in Section 4.1.1), which are subsequently issued by City and approved by Developer for the Project or any portion thereof, in accordance with the procedures described in Section 3.1. The Project Approvals are included in the Vested Rules. The permitted uses, the density or intensity of use, the zoning, the maximum height and size of buildings, the provisions for reservation and dedication of land and the subdivision requirements for the Project are set forth in Exhibit “C,” as supplemented by Subsequent Permits issued in conformance with the Vested Rules, if necessary. The Conditions of Approval set forth in Exhibit "B" establish the operational, engineering, and other requirements applicable to development of the Project.

3.5. Vested Right to Develop. During the Term of this Amended Agreement, with regard to the Project listed in Recital C and set-forth in Exhibit “C,” as well as the Property legally defined in Exhibit “A,” Developer is assured, and City agrees that the development rights, obligations, terms and conditions specified in the Project Approvals, the other Vested Rules, and this Agreement are fully vested in Developer and may not be changed or modified by City, whether by administrative action, legislativ e action, or vote of the electorate, except as may be expressly permitted by and in accordance with the terms and conditions of this Agreement, or as may be expressly consented to by Developer. Developer has the vested right to develop and construct the Project as set-forth in Exhibit “ C” on the Property and each portion thereof, in accordance with the Project Approvals, the other Vested Rules, and this Amended Agreement.

7 3.6. No Conflicting Enactments. Except as provided in Section 3. 5 of this Agreement, during the Term of this Amended Agreement, the City will not, without the prior written consent of Developer, do any of the following:

Apply to the Property, or any portion thereof, any change in the Vested Rules or any new or amended rule, ordinance, resolution, regulation, requirement, or official policy which conflicts with or is inconsistent with this Amended Agreement, or which reduces the development rights provided by this Amended Agreement, or which limits or reduces the permitted uses allowed under the Vested Rules, or which discriminates against Developer or the Project or any portion thereof, or which applies only to the Project or a portion thereof;
Apply to the Property any new rule, ordinance, resolution, regulation, requirement, or official policy which requires any additional discretionary review or approval; or
Apply to the Property any new or amended rule, ordinance, resolution, regulation, requirement, or official policy that materially, adversely affects the timing or phasing of construction or development or that limits the availability of utilities, infrastructure, or public services for the Property.

3.7. Term of Project Approvals. To the extent allowed by the Subdivision Map Act, the term of any tentative map approved for any portion of the Property, whether as stated in the existing Project Approvals, or as stated in any subsequent amendment or addition to the Project approvals including, without limitation, any tentative parcel map, tentative map, vesting tentative map, or vesting tentative parcel map, any amendment of any such map, and any subdivision improvement agreement entered into in connection with any of the aforementioned maps, will be automatically extended for the Term of this Agreement. Similarly, the term of any Project Approvals approved for any portion of the Property, whether existing or subsequently approved, will be automatically extended for the Term of this Agreement. In addition, in accordance with Government Code §66452.6, the term of any map or other Project Approval will be extended for a period equal to any period of time during which: (a) a development moratorium exists including, without limitation, a water or wastewater moratorium, or the actions of public agencies (other than City) that regulate land uses, development or the provision of services to the Property, that prevents, prohibits, or delays the construction of the Project; or (b) a lawsuit involving any development approvals or permits for the Project is pending. A development moratorium adopted or implemented by City does not apply to the Property, as further described in Section 3.8.

3.8. Initiatives/Referendum. Any law enacted or imposed after the Effective Date by initiative or referendum, or by the City Council, directly or indirectly, in connection with any proposed initiative or referendum, which law would conflict with the vested rights to develop granted to Developer under this Agreement will , to the maximum extent permitted by law, not apply to the Property.

8 3.9. Moratoria; Growth Control Measures . Developer’s rights to develop the Property in conformance with the Vested Rights under this Agreement prevails over any growth control measure or development moratorium adopted or implemented by City after the Effective Date, whether adopted specifically to prohibit construction of the Project or any portion thereof, or as an interim measure during the processing of contemplated General Plan, Specific Plan, or zoning changes, or as a general growth control management measure.

3.10. Effect of Inconsistent State or Federal Laws . This Amended Agreement may be further modified or suspended as may be necessary to comply with the State of California or Federal legislation, case law, codes, or regulations enacted/issued after the Effective Date, which preempt local jurisdiction and which prevent or preclude compliance with one or more provisions of this Amended Agreement; provided, however, that any such modification or suspension will be made to the minimum extent necessary and only after the Parties have met and conferred in good faith to determine the feasibility of such modification or suspension and to minimize its effect on the rights of the Parties and fulfillment of the purposes and intent of this Agreement. The Parties will cooperate to process applications for any City or governmental approvals which may be required as a result of any such modification or suspension of this Amended Agreement.

3.11. Public Works. Developer must construct any facilities or improvements that will be dedicated to City or any other governmental agency upon completion in the same manner and to the same standards as would be applicable to City or such other governmental agency should it have undertaken construction.

3.12. Business Recovery Development Agreement Zone ( “BRDZ”). This Agreement is intended to implement the Project consistent with the Property’s P -D overlay and the BRDZ, as applicable. This Agreement accordingly allows for the following:

Land Uses. MPMC § 21.10.020(C) , and Table 21.10 (A) Mixed Uses (Residential & Commercial).

3.12.2 D evelopment Standards . Per MPMC § 21.45.020 and this Agreement. To the extent of any conflict, this Agreement governs.

ARTICLE 4

PROCESSING OF SUBSEQUENT PERMITS AND APPROVALS

4.1. Subsequent Permits.

Defined. “ Subsequent Permits ” means the land use, development, and building approvals which are to be processed for approval by City ministerially and which are necessary or appropriate in order to develop the Project in accordance with the Vested Rules, the Project Approvals, and this Amended Agreement including, without limitation , zone changes, master plans or amendments thereto, any and all permits and/or approvals that are part of development maps, subdivision improvements plans and agreements, design review, site plans,

9 landscape plans, preliminary grading plans, grading plans and permits, building plans and permits, and environmental determinations. The Subsequent Permits include any permits and approvals required to complete the infrastructure and improvements necessary to develop the Property (collectively, the “Improvements”), in accordance with this Amended Agreement and the Vested Rules including, without limitation, those related to: (a) clearing the Property; (b) preliminary grading or grading of the Property; (c) construction of roads and storm drainage facilities; (d) construction of all residential and commercial structures and all structures and facilities accessory thereto, subject to the limitations set forth in this Amended Agreement. The grant of vested rights to Developer pursuant to this Amended Agreement does not waive or remove any requirement to process and obtain Subsequent Permits for the Project, to the extent required under the Vested Rules and not part of the Project Approvals. Subsequent Permits may include requirements necessary to implement the Project as approved, including applicable building, fire, engineering, grading, drainage, utility, public improvement, easement, and right-of-way requirements, provided such requirements are consistent with this Amended Agreement, the Project Approvals, and the Vested Rules.

Standard of Review. City agrees applications for Subsequent Permits will be processed in good-faith and expeditiously, as well as granted on terms and conditions in conformance with this Amended Agreement, the Project Approvals, and the Vested Rules. In the event any conflict arises between the terms and conditions of a Subsequent Permit and this Amended Agreement, the provisions of this Amended Agreement prevail unless otherwise agreed to in writing by the City and the affected Developer.

4.2. Processing. Subject to compliance with the Vested Rules and other applicable laws, the Subsequent Permits will be reviewed, processed, and acted upon by City ministerially and without the need for any further public hearings, provided that: (a) applications for such approvals are submitted to City during the Term of this Amended Agreement; (b) the applications are deemed complete pursuant to the Vested Rules; and (c) there is no uncured Event of Default under the terms and conditions of this Amended Agreement with respect to the portion of the Property for which such approval is sought. City agrees it will not unreasonably withhold or unreasonably condition any Subsequent Permits that may be issued by City in order for the Project to proceed, provided that Developer reasonably and satisfactorily complies with all preliminary procedures, actions, payments of Processing Fees, and criterial generally required of developers by City for processing applications for developments and consistent with this Amended Agreement.

4.3. Development Fees. Due to the consideration and benefits as described in Section

5.1, the following apply to the development fees described below:

Permit Fees. If a Subsequent Permit requires any significant change to the Project, then any additional Permit Fees must meet all applicable nexus and rough proportionality requirements under State and Federal law. Permit Fees will be payable in an amount and at the time established by City ’s fee schedule at the time of issuance of any Subsequent Permits. Any credits applicable to Permit Fees to which any portion of the Project is entitled as a result of construction may be transferred to any other portion of the Project and applied to reduce future Permit Fees that become payable provided that this Amended Agreement does not, by itself, entitle Developer to any such credits.

10 Development Impact Fees. Developer will pay fees established and adopted pursuant to the Mitigation Fee Act (Government Code §§ 66000, et seq .) and the MPMC, as detailed in Exhibit “E.”
Application Processing Fees. Developer must pay the Application Processing Fees in effect on the date the City Council approves this Amended Development Agreement.

No Encroachments into Public Right -of-Way. As a condition precedent to issuance of any building permit for the Project, Developer must demonstrate, to the satisfaction of the City Engineer, that the Project, including all permanent and temporary improvements and construction activities, will not encroach into, under, or above any public right -of-way or other public property, except as expressly authorized by all required permits, easements, licenses, or other approvals issued by the applicable public agency. Nothing in this Agreement authorizes any encroachment into, under, or above a public right-of-way or other public property.

4.4. Other Local, State, Federal Approvals . The Parties contemplate that development of the Project pursuant to this Amended Agreement may be subject to the approval of other governmental agencies. If so, t he Parties will act in good faith and use reasonable effort and diligence to process and obtain such approvals in a manner and on terms and conditions that are consistent with, and implement, the Project Approvals, the Vested Rules, and this Amended Agreement. If any revisions or corrections of the plans for Project Approvals approved by City are required by any other governmental agency, then the Parties will cooperate reasonably and in good-faith to develop a mutually acceptable solution.

ARTICLE 5

PUBLIC BENEFITS

5.1. Public Benefits. The Parties acknowledge and agree that Developer’s agreement to perform and abide by the covenants and obligations set -forth herein is material consideration for City’s agreement to perform and abide by the covenants set -forth herein, including without limitation the following specific public benefits of this Amended Agreement:

Providing a major public gathering space located adjacent to the sidewalk with ample pedestrian amenities, which result in open space which promotes public activity. In particular, the Project creates an area that will encourage pedestrian movement along the Project's frontages, and an attractive plaza will mark the central entrance on Garfield Avenue.

Providing major transit improvements including an increase in sidewalk width at bus stops, new transit shelter, bicycle racks, special decorative paving, pedestrian lighting and other pedestrian amenities. In particular, the P roject replaces sidewalks of five feet with pedestrian realms twelve to fifteen feet wide between the face of the curb of each major arterial street and the face of the building, which will include parkways, sidewalk, landscape areas as well as street trees, street furniture, and bus stop facilities. Additionally, the Project will participate , based on its pro-rata share and pursuant to a written agreement between the City and Developer ,

11 in the cost of operating the City’s transit program, including, without limitation, the Spirit Bus, MPK Transit Express, and any successor or replacement services, consistent with the Pedestrian Linkages Plan.

Providing housing types and unit sizes that contribute to a wide variety of residential products downtown. The Project will offer one, two, and two-bedroom with a den rental units.

Providing all parking for the retail and residential uses in the Project within a single structure. The Project provides for a single structure with three levels above grade.

Including key commercial tenants or unique tenants that will encourage uses consistent with the Land-Use Element of City’s General Plan.

Providing increased landscaped open space areas for the residential section of the P roject. In particular, the Project provides a large, landscaped courtyard to enhance the residential living areas and provide ample open space for recreational amenities including a fitness program, and community spaces for the residents of the complex. These amenities/services will assist in reducing traffic by residents and assist in fulfilling the goals of the pedestrian linkages plan.

Providing wireless internet and communication facilities that will help make the complex a public gathering place by allowing for both recreational and business needs of today's public.

Providing significant public right -of-way to facilitate the pedestrian flow for the core downtown area.

Generating significant retail sales tax and property taxes to City.

Paying a $200,000 public benefit contribution to City’s Affordable Housing Fund upon issuance of the building permit.

Paying a $200,000 public benefit contribution to City’s Parks Master Plan Facilities Fund upon issuance of the building permit.

Providing a double left-turn pocket on Garfield Avenue to provide left-turn access to Roselyn Drive in the northbound direction and to the Project's western driveway in the southbound direction. If conditions along Garfield Avenue or at the Roselyn Place i ntersection change before approval of the street improvement plans, Developer must revise the street improvement plans, including striping, to reflect those changed conditions, subject to approval by the City Engineer. There must be no left-turn movement from the Project onto Garfield Avenue.

Providing a northbound right -turn lane and loading area on Garfield Avenue, which will also serve as the trash pickup area where Property management will move the trash bins from their designated onsite storage areas to the street on pick-up days.

12 Relocating the existing bus stop on Garvey Avenue f arther east of the Garfield Avenue intersection.

Preparing any updated hydrology studies required by the City, obtain all permits and approvals required by the City and any other agency having jurisdiction, including the Los Angeles County Flood Control District, and construct and complete all drainage improvements, mitigation measures, and related work required to address Project drainage impacts. Any required improvements must be incorporated into the applicable improvement plans and completed before issuance of a certificate of occupancy, or at such earlier time as required by the City or the agency having jurisdiction.

5.1.2 Construction and Funding of Project Facilities and Infrastructure. Developer must construct and fund the construction of any Project Facilities and Infrastructure (as required by the Project Approvals) at the time such Project Facilities and Infrastructure are needed to satisfy the requirements of the Project Approvals. Except as otherwise specifically set-forth herein, Developer has no responsibility for the operation, maintenance, repair or replacement of Project Facilities and Infrastructure.

5.1.3 Dedications . Developer must make the dedications required by the Project Approvals.

ARTICLE 6

REVIEW OF COMPLIANCE

6.1. Annual Review. After it issues building permits, City will conduct annual reviews in accordance with the MPMC to determine whether Developer is acting in good-faith compliance with the provisions of this Amended Agreement. Appropriate fees to cover City’s costs to conduct the annual review will be collected from the Developer in compliance with the MPMC.

6.2. Procedure for Review . City’s City Planner, or designee, will conduct the review contemplated by this Section 6 to ascertain whether Developer has reasonably complied in good - faith with the material terms and conditions of this Amended Agreement during the period for which the review is conducted. The City Planner, or designee, will give Developer notice that any such review has been commenced, and give Developer at least 20 business days, after Developer’s receipt of such notice, to provide the City Planner such information as Developer deems relevant to such review. In addition, upon written request of the City Planner, Developer must furnish such documents or other information reasonably requested by the City Planner.

6.3. Result of Review. If, following such a review, the City Planner, or designee, finds good-faith compliance by Developer with the terms and conditions of this Amended Agreement, the City Planner, or, will issue to Developer an executed Certificate of Compliance. The Certificate of Compliance will state: (a) the Agreement is unmodified and in full force and effect (or identifying any modifications); (b) there are no uncured defaults under the Agreement by the certifying Party or, to the certifying Party’s knowledge, by any other Party (or specifying any such

13 defaults); and (c) any other information reasonably requested regarding the status of the Amended Agreement and performance by the Parties.

However, if, following such a review, the City Planner, or designee, finds that Developer has not complied in good-faith with the terms and conditions of the Amended Agreement, the City Planner, or designee, will provide notice to Developer detailing such non- compliance. Upon receipt of such notice, Developer may commence to cure the stated non-compliance in accordance with the terms of this Amended Agreement, including without limitation Section 8.1. If Developer fails to cure the non -compliance pursuant to the terms of this Amended Agreement, including without limitation Section 8.1, the City Planner, or designee, will notify the City Council .

Developer has the ability to dispute any such claim of non-compliance or failure to cure at a public hearing before the Amended Agreement may be modified or terminated.

ARTICLE 7
ASSIGNMENTS; MORTGAGEE PROTECTION

7.1. Right to Assign
Right to Assign . Subject to Section 7.2 of this Amended Agreement with respect to the rights of a mortgagee, Developer may assign or transfer any portion of its interests, rights, or obligations (“Rights” ) under this Amended Agreement and under the Approvals and Subsequent Approvals to third parties acquiring successor interests in the Project or Project Site, or any portion thereof, including without limitation purchasers or long-term ground lessees of the parcels or facilities located on or within the Project Site.

Assumption of Assigned Obligations and Rights. As a condition to any assignment or transfer under this Amended Agreement, any person or entity accepting such Assignment (“Assignee”) must assume all of the obligations and rights of this Agreement as they pertain to the portion of the Property being transferred to the Assignee.

7.2. Right to Mortgage. Developer or Owner may assign, pledge, or otherwise encumber its rights and interests under this Amended Agreement for security purposes to a Mortgagee of any defined Lot(s) without City ’s consent. Nothing contained in this Agreement restrict s Developer from encumbering all or any portion of the Property with a Mortgage, deed of trust, or other security device (collectively, “Mortgage). N o breach of this Amended Agreement will default, render invalid, diminish, or impair the lien of any Mortgage or the rights of any mortgagee, but all of the terms and conditions of this Amended Agreement are binding upon and effective against any Person, including any mortgagee or any person, who acquires title to the Property, or any portion thereof, by foreclosure, trustee ’s sale, deed in lieu for defaults or monetary obligations arising before its acquisition of title to the Property or portion thereof.

7.3. Notice of Default. If City receives written notice from a Mortgagee requesting a copy of any notice of default given to Developer and specifying the address for service thereof, then City will deliver to such Mortgagee, concurrently with the delivery to Developer, any notice

14 given to Developer with respect to any claim by City that such Developer is in default hereunder.

If City makes a determination of noncompliance hereunder and a Mortgagee has requested notice of such determination, City will also serve notice of such noncompliance on such Mortgagee concurrently with service on Developer. Each Mortgagee may, without obligation, during the same period available to Developer hereunder, 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.

ARTICLE 8
DEFAULT; REMEDIES

8.1. Events of Default. Subject to the provisions of Section 10.15 regarding Unavoidable Delays, Section 7.1 regarding assignment and assumption, and Section 7.2 regarding Mortgagee Protection, the failure by any Party to pay any sum or to perform any obligation required under this Amended Agreement, including, without limitation, City ’s failure to issue Subsequent Permits for the Project in conformance with this Amended Agreement, and such Party’s failure to cure such default within the specified cure period after receipt of a Notice of Default pursuant to Section 9.2 below, constitute s an “ Event of Default ” under this Amended Agreement. Except as otherwise provided in Section 4.2, failure by Developer to construct or delay in constructing the Project or any portion thereof will not be a default or Event of Default under this Amended Agreement, and Developer is not liable to City for damages for failure to construct any portion of the Project, unless such failure or delay constitutes a default under the terms of any Final Map, building permit or similar approval, in which event City may exercise any of its normal remedies for default under such permit or approval.

8.2. Notice of Default and Cure . Any Party claiming a default under this Amended Agreement must deliver to the defaulting Party a written notice of default (“ Notice of Default”).

The Notice of Default must specify the reasons for the allegation of default with reasonable particularity and the manner in which the default can be cured. The defaulting Party has the right to cure the default within 30 days after receiving the Notice of Default; provided, however, that if the nature of the alleged default is such that it cannot be reasonably cured within 30 days, then the 30-day period will be extended for the time reasonably required to complete the cure, so long as the defaulting Party commences the cure within the 30- day period and diligently prosecutes the cure to completion thereafter.

8.3. Procedure Upon and Event of Default. After the occurrence of an Event of Default, the other Party may give notice of its intent to terminate this Amended Agreement pursuant to Government Code § 65868 and the MPMC implementing said section. Following notice of intent to terminate, or before instituting legal proceedings, the matter must be scheduled for consideration and review at a public meeting of the City Council within 30 days after that notice. Following consideration of the evidence presented in the review before the City Council , the Party alleging the default by the other Party may institute legal proceedings or may give written notice of termination of this Amended Agreement to the other Party; provided, however, Developer may only terminate this Agreement with respect to such portion of the Property then owned by Developer. Evidence of default may also arise in the course of an annual review of this Amended

15 Agreement pursuant to Section 6.1. If Developer is determined by City to be in default pursuant to the procedures for annual review, and after giving effect to Developer’s right of appeal of such determination to the City Council as provided in Section 6.3, then City may give a written Notice of Default pursuant to Section 8.2. If the alleged default is not cured within the cure period set forth in Section 8.2 or within such longer period specified in City’ s Notice of Default, or if Developer waives its right to cure such alleged default in writing, then this Amended Agreement may be terminated by City with respect to the portion of the Property then owned by the defaulting Developer.

8.4. Remedies for Non-Defaulting Party. If either Party is in default under the terms of this Amended Agreement, subject to any applicable requirements under Section 8.6 of this Agreement, the other Party may elect to pursue any of the following courses of action: (i) waive such default; (ii) pursue administrative remedies as provided in this Amended Agreement; (iii) pursue any judicial remedies available under the law; or (iv) terminate this Amended Agreement.

Unless otherwise provided in this Amended Agreement and subject to applicable requirements under Section 8.6 of this Amended Agreement, either Party, in addition to any other rights or remedies, may institute legal action to cure, correct, or remedy any default by the other Party to this Amended Agreement, to enforce any covenant or agreement herein, or to enjoin any threatened or attempted violation hereunder or to seek specific performance. All remedies available to a Party under this section are cumulative and not exclusive of the other, and the exercise of one or more of these remedies do not constitute a waiver or election with respect to any other available remedy.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Amended Agreement, except that City is not liable in damages to Developer, or to any successor in interest of Developer, or to any other person, and Developer, on behalf of itself and all successors in interest, covenants not to sue for damages or claim any damages a rising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Amended Agreement.

No City elected or appointed official, employee, or representative is personally liable to Developer in the event of any Event of Default by City or for any amount which may become due to Developer, or for any obligations under the terms of this Amended Agreement, or for any claims of breach of contract related to this Amended Agreement, or for any claims in the nature of tort related to this Amended Agreement (such as fraud in the inducement).

8.5. Informal Discussions. With regard to any dispute between or among the Parties contemplated by this Amended Agreement, within seven days written notice from ether party, the City Manager and Developer ’s senior executives must meet and attempt in good faith to resolve any such disputes through informal discussions, which discussions will not exceed 10 business days unless extended by mutual agreement.

8.6. Mediation. If the Parties are unable to resolve their dispute through informal discussion, before the initiation of any litigation, either party may commence mediation by providing to JAMS (or other mediator mutually agreed to by the Parties) and the other Parties a written request for mediation, setting forth the subject of the dispute and the relief requested. The Parties will cooperate with JAMS and with one another in selecting a mediator from JAMS’ panel

16 of neutrals, and in scheduling the mediation proceedings. The Parties covenant that they will participate in all phases of the mediation in good faith. The mediation process will occur in two phases, if necessary, as described below. During the first phase of the mediation, which in no event will exceed 30 days unless otherwise agreed to by the Parties, the Parties will attempt to resolve their dispute in accordance with JAMS standard mediation procedures. If the Parties are unable to resolve their dispute during this first phase of the mediation process, then the second phase of the mediation process will be conducted in a manner consistent with this Section. If the Parties are unable to resolve their dispute through the first phase of mediation, as described above, the party that commenced mediation (the “ Complaining Party ”), will have 10 business days from the expiration of the 30 day period described above to file a brief with the other party (the “Responding Party”) and with the mediator presiding over the first phase of the mediation process (the “Mediator”), which brief must set forth the merits of the Complaining Party ’s position regarding the issues raised during the first phase of mediation (the “ Initial Brief”). The Responding Party will have 20 business days from its receipt of the Initial Brief to file a brief with the Mediator and the Complaining Party responding to the issues raised in the Initial Brief and setting forth the merits of the Responding Party ’s position regarding the issues raised during the first phase of mediation (the “Responding Brief”). The Complaining Party will have ten business days from its receipt of the Responding Brief to file a reply brief with the Mediator and the Responding Party replying to the issues raised in the Responding Brief (the “Reply Brief”). In no event will the Initial Brief and the Responding Brief be longer than 15 pages and in no event will the Reply Brief be longer than 10 pages. Except as otherwise set forth in this Section 7.05.03, the Initial Brief, the Responding Brief and the Reply Brief will be formatted in accordance with requirements of Rule

3.1110 of the California Rules of Court, unless otherwise agreed to by the Parties. The Mediator will have two weeks following its receipt of the Reply Brief to consider the arguments set forth by the Complaining Party and the Responding Party in their respective briefs and issue an opinion stating which party the Mediator would consider to be the prevailing party if the Mediator were a judge presiding over the dispute in a court of law (the “JAMS Opinion”).

All offers, promises, conduct and statements, including the JAMS Opinion, whether oral or written, made in the course of the mediation by any of the Parties, their agents, employees, experts and attorneys, and by the mediator and any JAMS employees, are co nfidential, privileged and inadmissible for any purpose, including impeachment, in any litigation or other proceeding involving the Parties, provided that evidence that is otherwise admissible or discoverable will not be rendered inadmissible or non-discoverable as a result of its use in the mediation. Notwithstanding the foregoing, the JAMS Opinion will serve as the basis solely for determining whether, in the event a dispute between the Parties is litigated, either party will be awarded attorneys’ fees in accordance with this Agreement.

Nothing in this Article will in any way be interpreted as requiring that Developer and City and/or City’ s designee reach agreement with regard to those matters being addressed, nor will the outcome of these meetings be binding in any way on City or Developer unless expressly agreed to in writing by the Parties to such meetings. Notwithstanding the forgoing, the JAMS Opinion will be binding on the Parties solely for the purposes of determining whether, in the event a dispute between or among the Parties is litigated, either party will be awarded Attorneys ’ Fees (as defined below) in accordance with this Amended Agreement.

17 Should any judicial remedy be sought by any party because of any default under this Amended Agreement or to enforce any provision hereof, or to obtain a declaration of rights hereunder (each individually a “Judicial Action ”), the prevailing party in such Judicial Action is entitled to reasonable attorney ’s fees, court costs and such other costs as may be fixed by the court (collectively, “Attorneys’ Fees”), provided the prevailing party in the Judicial Action was also determined to be the prevailing party in the JAMS Opinion. For purposes of this Amended Agreement, Attorneys Fees will be calculated from the start of the first phase of mediation and will include all reasonable costs related to the first and second phases of mediation. If the prevailing party in a Judicial Action was determined to be the los ing party in the JAMS Opinion, then each party will assume the cost of their own Attorneys ’ Fees. Not in limitation of the foregoing, the Parties will assume their own costs related to the informal dispute resolution process described above. Extension of Agreement Term . The Term of this Amended Agreement as set forth in Section 2.2 will automatically be extended for the period of time in which the Parties are engaged in dispute resolution to the degree that such extension of the Term is reasonably required because activities which would have been completed before the expiration of the Term are delayed beyond the scheduled expiration of the Term as a direct result of such dispute resolution.

ARTICLE 9
AMENDMENTS; TERMINATION

9.1. Amendments. Except as set forth in Section 3.1, this Amended Agreement may be modified, amended and/or extended only by mutual written consent of the Parties and must be approved in the same manner as adoption of this Amended Agreement, by ordinance as set forth in the Development Agreement Statute.

9.2. Operating Memoranda. The Parties acknowledge that the provisions of the Amended Agreement require a close degree of cooperation and that new information and future events may demonstrate that changes are appropriate with respect to the details of performance of the Parties under this Amended Agreement. The Parties desire, therefore, to retain a certain degree of flexibility with respect to the details of performance for those items covered in general terms under this Amended Agreement. If and when, from time to time, the Parties find that refinements or adjustments are desirable, such refinements or adjustments will be accomplished through operating memoranda or implementation agreements approved by the Parties which, after execution, will be attached to this Amended Agreement as addenda and become a part hereof.

9.3. Execution of Memoranda . Operating memoranda or implementation agreements may be executed on behalf of City by the City Manager and the City Attorney. In the event a particular subject requires notice or hearing, such notice or hearing will be appropriately given.

Any significant modification to the terms of performance under this Amended Agreement will be processed as an amendment of this Amended Agreement in accordance with this Amended Agreement and must be approved by the City Council.

18 9.4. Effect of Expiration/Termination. Upon expiration or termination of this Amended Agreement: (a) no Party has any further rights or obligation hereunder except for matters which accrued before such expiration or termination and matters which specifically survive expiration or termination under the express terms of this Amended Agreement; and (b) the underlying Project Approvals remain in full force and effect.

ARTICLE 10

MISCELLANEOUS

10.1. Insurance. Before the commencement of any work, Developer must furnish evidence to City that all of the following insurance requirements have been satisfied.

10.2. General. Developer must, throughout the duration of this Amended Agreement, maintain, or cause to be maintained, the insurance specified below, to insure Developer and its employees for liability arising out of the work in connection with the Property, Project and this Amended Agreement at the minimum levels set forth herein, with City being an additional insured on the CGL and excess or umbrella liability insurance.

10.3. Commercial General Liability. Commercial General Liability (“ CGL”) insurance with coverage in an amount not less than $2,000,000.00 general aggregate, $2,000,000.00 per occurrence and $2,000,000.00 products/completed operations, and including contractual liability insurance for the indemnification heretofore provided to City (subject to the policy terms, conditions, definitions and exclusions).

10.4. Business Auto Coverage. Business Automobile Liability insurance with coverage in an amount not less than $1,000,000.00 per accident for bodily injury and property damage, covering all vehicles used by the Developer (personal, company) and its employees, on or within the Project or Property or associated therewith.

10.5. Excess or Umbrella Liability Insurance (Over Primary Coverage ). Such excess coverage must be at least as broad as the underlying coverage and be provided on a “pay on behalf” basis. The excess or umbrella coverage can be not less than $5,000,000 per occurrence/annual aggregate.

10.6. Workers’ Compensation. Coverage must be maintained as required by the State of California.

10.7. Insurance Coverage to be Maintained by Developer ’s Contractors and Subcontractors. Developer must require by contract that its contractors and subcontractors maintain the same CGL, business auto, excess or umbrella liability and workers’ compensation insurance as set forth in subsections (b) through (e), inclusive, hereof, except that the required minimum limits for the CGL coverage will be $2,000,000 general aggregate, $2,000,000 per

19 occurrence and $2,000,000 products/completed operations, with excess or umbrella liability insurance in the amount of $2,000,000 per occurrence/annual aggregate. The CGL policy must include contractual liability insurance (subject to the policy terms, conditions, definitions and exclusions).

10.8. Construction; Interpretation . This Amended Agreement has been reviewed and revised by legal counsel for Developer and the City, and no presumption or rule that ambiguities may be construed against the drafting party apply to the interpretation or enforcement of this Amended Agreement.

10.9. Agreement Constitutes Legislative Act. Developer acknowledges and agrees that City has approved and entered into this Amended Agreement in the sole exercise of its legislative discretion and that the standard of review of the validity and meaning of this Amended Agreement will be that accorded legislative acts of City.

10.10. Cooperation; Further Assurances. Each Party will: (a) deal fairly and in good-faith with the other Parties; (b) not impede the other Parties ’ right to receive the benefits of this Amended Agreement; (c) cooperate with and provide reasonable assistance to the other Parties in the performance of this Agreement; and (d) execute such documents or take such further actions as may be reasonably necessary to consummate the performance or to carry out the purpose and intent of this Agreement.

10.11. Counterparts; Electronic Signatures . This Amended Agreement, and any documents implementing this Amended Agreement, may be executed in multiple counterpart originals, each of which is deemed to be an original and all of which when taken together will constitute one and the same instrument. In accordance with Government Code §16.5, the Parties agree that this Amended Agreement, agreements ancillary to this Amended Agreement, and related documents to be entered into in connection with this Amended Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature

10.12. Entire Agreement. The Recitals set forth above in this Amended Agreement and the Exhibits attached hereto are incorporated by references into this Amended Agreement as an integrated portion hereof. This Amended Agreement, including all such Recitals and Exhibits, constitutes the entire agreement of the parties regarding the subject matter hereof, and all prior or contemporaneous agreements and understandings, whether written or oral, are superseded.

10.13. Governing Law/Jurisdiction. This Amended Agreement will be governed, construed and enforced in accordance with the laws of the State of California, and the state courts of Los Angeles County will have jurisdiction.

10.14. Legal Challenges—Defense and Indemnification.

Cooperation in the Event of a Legal Challenge.

20 In the event of any administrative, legal or equitable action or other proceeding instituted by any person or entity not a party to the Amended Agreement challenging the validity of any provision of this Amended Agreement; challenging any agreement between City and other government agencies entered into at the request of Developer to facilitate the development of the Property; challenging any of the Project Approvals; or challenging the sufficiency of any environmental review of either this Agreement or any Approval under CEQA (each a “Third Party Challenge”), each party must cooperate in the defense of such Third -Party Challenge, in accordance with this Section. In light of the Parties ’ mutual interests in successfully defending against a Third-Party Challenge, the Parties will enter into a joint nondisclosure, indemnity, and litigation defense agreement, which, among other things, will require all communications between Developer and City concerning a Third- Party Challenge to be kept confidential and cannot be disclosed by either party without the written consent of the other party. Developer agrees to pay City’s costs of defending a Third- Party Challenge, including all court costs and reasonable attorneys’ fees expended by City (including the time and cost of the City Attorney) in defense of any Third- Party Action. Developer may select its own legal counsel to represent Developer ’s interests in any Third -Party Challenge at Developer ’s sole cost and expense. City agrees that it will not enter into a settlement agreement to any Third -Party Challenge without Developer ’s written consent. Developer ’s obligation to pay City’ s costs in the defense of a Third -Party Challenge does not extend to those costs incurred on appeal unless otherwise authorized by Developer in writing. If Developer elects, in its sole and absolute discretion, not to contest such litigation challenges, City does not have any obligation to contest such challenges. If City elects to contest such challenges after Developer elects not to contest, City will do so at its sole cost.

Third-Party Challenges Related to the Applicability of City Laws.

The provisions of this Section will apply only in the event of a legal or equitable action or other proceeding, before a court of competent jurisdiction, instituted by any person or entity not a party to this Amended Agreement challenging the applicability to the Project or Project Site of a conflicting City Law (a “Third Party Enforcement Action”):

Cooperation in Case of a Third-Party Enforcement Action.

In the event of a Third-Party Enforcement Action, City must (i) promptly notify Developer of such action or proceeding, and (ii) cooperate with Developer so as to most effectively respond to the Third-Party Enforcement Action. In no event will City take any action that would frustrate, hinder, or otherwise complicate Developer ’s efforts to respond. The Parties to this Amended Agreement agree to cooperate, to the maximum extent permitted by law, in the defense of such action or proceeding. For purposes of this Section, the required cooperation between the Parties includes, without limitation, developing litigation strategies, preparing litigation briefs and other related documents, conferring on all aspects of the litigation, developing settlement strategies, and, to the extent permitted by law, jointly making significant decisions related to the relevant litigation, throughout the course thereof. In light of the Parties ’ mutual interests in successfully defending against a Third -Party Enforcement Action, all communications between Developer and City concerning a Third-Party Enforcement Action must be kept confidential and cannot be disclosed by either party without the written consent of the other party.

21 Litigation Costs.

City’s costs of defending any Third -Party Enforcement Action, including all court costs, and reasonable attorneys’ fees expended by City (including the time and cost of the City Attorney) in defense of any Third -Party Enforcement Action, as well as the time of City ’s staff spent in connection with such defense (the “Enforcement Action Defense Costs” ), will be paid in accordance with this Amended Agreement. Notwithstanding the forgoing, in no event will the Enforcement Action Defense Costs extend to, nor will Developer or the Project be obligated to pay, any costs incurred on appeal unless otherwise authorized by Developer in writing.

Settlement.

City may not enter into a settlement agreement or take any other action to resolve any Third-Party Enforcement Action without Developer ’s written consent. City cannot, without Developer’s written consent, take any action that would frustrate, hinder or otherwise prevent Developer’s efforts to settle or otherwise resolve any Third-Party Enforcement Action.

Effect of Judgment.

Provided that City complies with this Section and provided that Developer is a party to the relevant Third-Party Enforcement Action, Developer agrees to be bound by any final judgment (i.e., following all available appeals) arising out of a Third-Party Enforcement Action and further agrees that no default under this Amended Agreement will arise if such final judgment requires City to apply to the Project or Project Site a City Law that conflicts with Applicable Law or this Agreement.

Defense and Indemnity.

Developer must defend and indemnify City from and against any and all damages, claims, costs and liabilities arising out of the personal injury or death of any third-party, or damage to the property of any third-party, to the extent such damages, claims, costs or liabilities result from the construction of the Project by Developer or by Developer’s contractors, subcontractors, agents or employees. Nothing in this Section will be construed to mean that Developer must defend or indemnify City from or against any damages, claims, costs or liabilities arising from, or alleged to arise from, activities associated with the maintenance or repair by City or any other public agency of improvements that have been offered for dedication and accepted by City or such other public agency or for any other public improvements constructed by City or constructed by Developer at direction of City. City and Developer may from time to time enter into subdivision improvement agreements, as authorized by the Subdivision Map Act, which agreements may include defense and indemnity provisions different from those contained in this Section. In the event of any conflict between such provisions in any such subdivision improvement agreement and the provisions set forth above, the provisions of such subdivision improvement agreement will prevail.

Effect on Term.

22 The Term of this Amended Agreement will be tolled from the initiation of any Litigation until final court action is taken in such Litigation.

10.15. Notices. All notices, demands, correspondence and communications ( “Notice”) must be in writing and must be either personally delivered or sent by certified mail, postage prepaid, return receipt requested, or delivered by a nationally recognized overnight courier service (which provides a delivery receipt), at the addresses set forth below. Any such Notice will be deemed received on the date of personal delivery or on the date of receipt (or refusal to accept delivery) set forth in the certified mail receipt if sent by U.S. mail or in the receipt provided by the overnight courier service if sent by such service.

City: City of Monterey Park
320 West Newmark Avenue
Monterey Park, California 91754
Attention: Inez Alvarez, City Manager
E-Mail: [email protected]

With a copy to: Buke, Williams & Sorensen
444 South Flower St., 40th Floor
Los Angeles, CA 90071
A ttn: Mr. Karl H. Berger, City Attorney
E-Mail: [email protected]

Developer: Vincent Tsang
Rykadan Management Inc.
411 E. Huntington Drive, Suite #107-505,
Arcadia, CA 91006
Telephone: (626) 374-8881
E-Mail: [email protected]

With a copy to: Richard A. McDonald, Esq.

Law Office of Richard A. McDonald
Of Counsel, Stoner Carlson, LLP
301 E. Colorado Blvd., Suite 320
Pasadena, CA 91101
Telephone: (626) 356 - 4801
Email: [email protected]

10.16. Private Undertaking . It is expressly understood and agreed by the Parties the development contemplated by this Amended Agreement is a private development, no Party is acting as the agent of any other Party in any respect hereunder, and Developer has full power and exclusive control over its properties subject only to the limitations and obligations of Developer under the Vested Rules and this Amended Agreement. Nothing contained in this Amended

23 Agreement or in any document executed in connection with this Amended Agreement will be construed as making City and Developer joint venturers or partners.

10.17. Recordation. City will use best efforts to record a Memorandum of this Amended Agreement with the Los Angeles County Recorder within 10 days after the Effective Date, pursuant to Development Agreement Statute § 65868.5. Thereafter, if this Amended Agreement is terminated, modified or amended as provided herein, the City will record notice of such action with the Los Angeles County Recorder.

10.18. Section Headings. Article and Section headings in this Amended Agreement are inserted for convenience only and are not intended to be used in interpreting or construing the terms, covenants or conditions of this Amended Agreement.

10.19. Severability. If any provision or term of this Amended Agreement, or the application of any provision or term of this Amended Agreement to any particular situation, is held by a court of competent jurisdiction to be invalid, void or unenforceable, then the remainder of the Amended Agreement is unaffected and will remain in full force and effect unless enforcement of the Amended Agreement, with such invalidation, would be unreasonable or inequitable under the circumstances or would frustrate the purposes of the Amended Agreement or the rights and obligations of the Parties there under.

10.20. Successors and Assigns; Covenants Running with the Land. Subject to the provisions of Section 7.1 governing assignment, the rights and obligations of Developer under this Amended Agreement will be binding upon and inure to the benefit of successor Owners of all or any portion of the Property and will be covenants running with the land.

10.21. Third-Party Beneficiaries. This Amended Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns, including the Owners. No other Person has any right of action based upon any provision of this Amended Agreement.

10.22. Unavoidable Delays or Events. In addition to specific provisions of this Amended Agreement, performance by any Party hereunder will not be deemed to be in default where delays or defaults are due to war, terrorism, pandemic, insurrection, riots, floods, earthquakes, fires, casualties, governmental restrictions imposed or mandated by governmental entities (but only as to delays or performance by Developer), enactment of conflicting state or federal laws or regulations (but only if the Party claiming delay complies at all times with the p rovisions of this Amended Agreement pertaining to such conflicting laws), litigation against this Agreement or any of the Project Approvals, referendum of this Amended Agreement or any of the Project Approvals or similar bases for excused performance ( “Unavoidable Delay” or “Unavoidable Event”). Upon the occurrence of an Unavoidable Event, the time for performance will be extended, for the duration of the Unavoidable Delay.

24 10.23. Waiver. No waiver of any provision of this Amended Agreement is effective unless it is in writing and signed by a duly authorized representative of the Party against whom enforcement of the waiver is sought. No waiver of any right or remedy is deemed a waiver of any right or remedy with respect to any other occurrence or event.

10.24. Authorization. Each person executing this Amended Agreement represents and warrants that he or she is authorized and has the legal capacity to execute and deliver this Amended Agreement on behalf of the Party for which execution has been made.

25 IN WITNESS WHEREOF, the Parties have executed this Amended Development Agreement to be effective as of the Effective Date first set forth above. “CITY”

CITY OF MONTEREY PARK
a municipal corporation

Dated: July __, 2026 By: _____________________________ _________, Mayor
ATTEST:

________________________
Maychelle Yees, City Clerk

APPROVED AS TO FORM:

KARL H. BERGER, CITY ATTORNEY

__________________________
Joaquin Vazquez, Assistant City Attorney

“Developer”
RYKADAN 005, LLC
a California Limited Liability Company

Dated: July ___, 2026 By: _____________________________ Vincent Tsang, Manager

APPROVED AS TO FORM:

By: _________________________
Richard A. McDonald, Esq.

16826.1:10087292.2 EXHIBIT A
Exhibit A
The Property

16826.1:10087292.2 EXHIBIT B
Exhibit B
Conditions of Approval

Exhibit B

CONDITIONS OF APPROVAL
114 E. Garvey Avenue
(the “Property”)

In addition to all applicable provisions of the Monterey Park Municipal Code (“MPMC”), Rykadan 005, LLC (the “ Developer”), agrees to comply with the following conditions of approval (“Project Conditions”) for the Project approved under this Amended Development Agreement and the related Project Approvals. In addition to these Project Conditions, the Developer must comply with all applicable provisions of the Monterey Park Municipal Code ("MPMC") and other applicable law. Unless the contrary is stated or clearly appears from the context, capitalized terms used in these Project Conditions have the meanings set forth in the Amended Development Agreement or, if not defined therein, the MPMC.

Unless the contrary is stated or clearly appears from the context, the construction of words and phrases used in the Project Conditions are the definitions set forth in the MPMC.

STANDARD PROJECT CONDITIONS:

1. The Developer agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City’s approval of Tentative Map No. 26-05 except for such loss or damage arising from the City’s sole negligence or willful misconduct. Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the City approval of Tentative Map No. 26- 05, the Developer agrees to defend the City (at the City’s request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of this section “the City” includes the City of Monterey Park’s elected officials, appointed officials, officers, and employees. The Developer 's obligations under this condition do not apply to any action or proceeding alleging that the City violated the Developer 's rights or deprived the Developer of benefits or protections provided by a housing reform law, and nothing in this condition requires the Developer to indemnify, defend, or hold harmless the City with respect to any such claim.

2. This Amended Development Agreement and the related Project Approvals, as applicable applies only to the Project as shown in the Project Approvals reviewed and approved by the City Council and on file with the Planning Division. Before the Building Official issues a building permit, the Developer must submit construction plans demonstrating substantial compliance with the plans and conditions of approval on file with the Planning and Building and Safety Division and these Project Conditions. Any subsequent modification must be submitted to the Director of Community Development for a determination whether additional Planning Commission or City Council review is required.

3. The Property must be developed and used in the manner approved and must be in substantial conformity with the approved plans dated August 5, 2026, unless revisions or additional conditions are specifically required by these Project Conditions . Any modifications that are not in substantial conformance, as determined by the Director of Community Development, require an amendment.

4. Amended Development Agreement and the related Project Approvals, as applicable, runs with the land. All rights and obligations, including the responsibility to comply with the Project Conditions, are binding upon the property owners’ successors in interest, to the extent provided in the Amended Development Agreement and applicable law .

The Project Conditions may be modified, terminated, or abandoned in accordance with applicable law.

5. Any proposed deviations from the approved plans or the Amended Development Agreement Project Conditions must be submitted to the Director of Community Development for review and approval. Any unapproved deviations from the approved Project will constitute a violation of the approval.

6. When exhibits or written Project Conditions are in conflict, the written Project Conditions prevail.

7. The effectiveness of this P roject approval will be suspended for the time period that any Project Condition is appealed whether administratively or as part of a legal action filed in a court of competent jurisdiction. If a court of competent jurisdiction invalidates any Project Condition, the City may review the Project and impose substitute conditions in accordance with applicable law.

8. The Developer must comply with all requirements of this Resolution, the MPMC, policies and regulations of any California, federal or local agency with jurisdiction over the Project, and any other applicable law.

9. Anything which is not shown on the approved plans or otherwise not specifically approved as part of this entitlement is not approved.

10. The Developer must reimburse the City for all attorneys' fees expended by the City that are directly related to the processing of the Project. The City will not issue a Final Certificate of Occupancy or other final occupancy approval until all attorneys' fees are paid by the Developer.

11. The Developer’s failure to comply with, or breach of, any condition can, in addition to any other civil or criminal action, result in modification or revocation of Project Approvals. The City may, in accordance with applicable law, undertake action and incur costs to effect compliance. All such costs including, without limitation, attorney’s fees, must be reimbursed by the Developer or property owners in accordance with applicable law.

12. All conditions of approval must be included in the construction drawings submitted for plan check and on the construction drawings for which a building permit is issued.

13. The Developer must contact the City Planner, or designee, to arrange any site inspections the City requires to verify compliance with the Project Conditions.

14. The Developer must sign and notarize an affidavit acknowledging acceptance of these Project Conditions and return it to the Planning Division within 30 days of the effective date of the Amended Development Agreement, or before the Building Official issues a building permit.

15. This decision is not effective until the Developer acknowledges acceptance of all Project Conditions, and the appeal period has expired, a waiver of right to appeal has been filed, or if an appeal is filed, a final decision has been made on the appeal. By exercising any entitlement granted hereunder, Developer acknowledges agreement with the Project Conditions.

16. The Developer must comply with all Project Conditions related to the P roject before the Building Official will issue a certificate of occupancy.

PLANNING CONDITIONS

17. Any proposed signage or murals must be processed in accordance with the Monterey Park Municipal Code (MPMC), unless otherwise authorized under the Amended Development Agreement.

18. The Developer must provide a security guard and/or other form of surveillance during non-business hours to prevent unauthorized access to the plaza.

19. The tentative map expires twenty -four months after City Council approval if the use has not commenced or if improvements are required but construction has not commenced under a valid building permit. A total of four, one- year, extensions may be granted by the City Council upon finding a good cause. The total time of extensions cannot exceed six years from the initial expiration date. An application requesting an extension must be filed with the Community Development Department.

20. A final map must be approved and recorded before the Building Official issues a certificate of occupancy.

21. The Property must be kept in a clean and safe condition by, at a minimum, performing all of the following tasks:
a. Promptly removing, storing, and disposing of all trash, litter, rubbish and debris on the Property.
b. Promptly removing graffiti placed upon the Property within forty-eight hours of its occurrence;
c. Keeping driveways, sidewalks, park strips, fire access roads and streets on or adjacent to the Property clear and clean; and

d. Providing adequate lighting on the Property.

22. All required landscaping and irrigation systems must be installed and fully operational prior to building permit final inspection. If constructed in phases, this requirement will apply to the applicable phase prior to approval of the final inspection for that phase.

23. Landscaping and irrigation must be maintained in good condition at all times as determined by the Director of Community Development.

24. A detailed landscaping and irrigation plan for all landscaped areas associated with the Project must be submitted for review and approval , prior to landscaping work commencing. The landscaping and irrigation plan must identify the type, size, quantity of all proposed plant materials and irrigation equipment, and phasing, if applicable. All landscape areas must be served by an automatic irrigation system, and the plan must comply with California’s Model Water Efficient Landscape Ordinance (“MWELO”).

25. The Developer must install signage throughout the Property to prevent parking in drive aisles, fire lanes, and overnight parking by unauthorized vehicles.

26. The final exterior material s and colors must be maintained throughout the Project’s life. Any material deviation from the approved elevations, materials, or colors is subject to review and approval by the Director of Community Development.

27. If a Phasing Plan is proposed for the construction of the Project, such Phasing Plan must identify the construction activities and improvements included in each phase and must be reviewed and approved by the Planning Division, Building Division and Engineering Division.

TRIBAL CULTURAL RESOURCES (“TCR”) CONDITIONS

28. The Developer must retain a Native American Monitor from or approved by the Gabrieleño Band of Mission Indians – Kizh Nation, subject to lead agency oversight. The Developer must retain the monitor before the commencement of any “ground-disturbing activity” for the Project at all Project locations (i.e., both on-site and any off -site locations that are included in the project description/definition and/or required in connection with the P roject, such as public improvement work). “Ground- disturbing activity” includes, but is not limited to, demolition, pavement removal, potholing, auguring, grubbing, tree removal, boring, grading, excavation, drilling, and trenching.

29. A copy of the executed monitoring agreement must be submitted to the City before the commencement of any grading or excavation.

30. The monitor will complete bi-weekly monitoring logs that will provide descriptions of the relevant ground-disturbing activities, the type of construction activities performed, locations of ground-disturbing activities, soil types, cultural -related materials, and any other tribal cultural resources or related discoveries identified during monitoring

activities. Monitor logs will identify and describe any discovered Tribal Cultural Resources (TCRs), including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or “TCR”), as well as any discovered Native American (ancestral) human remains and burial goods. The monitor or Tribe will provide copies of monitor logs to the Developer or lead agency upon written request, consistent with applicable confidentiality requirements.

31. On-site tribal monitoring will conclude upon the latter of the following (1) written confirmation to the Kizh from a designated point of contact for the Developer/lead agency that all ground- disturbing activities and phases that may involve ground- disturbing activities on the P roject site or in connection with the P roject are complete; or (2) written notification from the Developer or lead agency, following consultation with the Kizh, that no future, planned construction activity and/or development/construction phase at the Property possesses the potential to impact Kizh TCRs.

32. Unanticipated Discovery of TCR Objects (Non- Funerary/Non-Ceremonial): Upon discovery of any tribal cultural resources, all ground- disturbing activities in the immediate vicinity of the discovery will cease within a reasonable buffer, as determined in the field by the qualified archaeologist in consultation with the Kizh monitor and will not resume until the discovered TCR has been fully assessed by the Kizh monitor and/or Kizh archaeologist. Treatment and disposition of discovered TCRs must be developed in consultation between the Kizh, the lead agency, and the P roject archaeologist, with deference to Kizh recommendations regarding culturally appropriate treatment, consistent with applicable law.

33. Unanticipated Discovery of Human Remains and Associated Funerary or Ceremonial Objects:
a. Native American human remains are defined in Public Resources Code section 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute.
b. If Native American human remains and/or grave goods are discovered or recognized on the Property, then Public Resource Code section 5097.98 as well as Health and Safety Code Section 7050.5 must be followed. c. Human remains and grave/burial goods will be treated alike per California Public Resources Code section 5097.98(d)(1) and (2).
d. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods.
e. Any discovery of human remains/burial goods must be kept confidential to prevent further disturbance.

ENGINEERING CO

NDITIONS

34. The Project requires approval of a Tentative Map in accordance with applicable law.

35. The Developer must submit street improvement plans for the Project frontage along Garvey Avenue and Garfield Avenue for review and approval by the City Engineer.

Street improvements must include pavement grinding of 3 inches and an overlay consisting of a 2-inch base course and a 1-inch rubberized cap along the length of the property frontage to the centerline of the street. The City Engineer may require localized pavement repairs based on street conditions. Developer must construct or replace, as necessary, sidewalks, curb and gutter, ADA curb ramps, and driveway approaches to the satisfaction of the City Engineer. Any damage caused by street improvements or utility work during construction shall be repaired before final Project acceptance. All existing driveways not proposed for use shall be removed and replaced with curb, gutter, and sidewalk.

36. Developer must submit landscape and irrigation plans for the public right-of-way along Garvey Avenue and Garfield Avenue, including all parkway trees and tree species, for review and approval by the City Engineer. Developer must maintain all landscaping and irrigation improvements within the public right-of-way adjacent to the Project.

37. All public improvements must comply with applicable City standards and specifications.

All public improvements must be completed and accepted by the City Engineer or secured by a public improvement guarantee and agreement acceptable to the City, before the City Council approves the final map.

38. The Project includes a double left-turn pocket on Garfield Avenue, generally as shown on the approved Project plans. If conditions along Garfield Avenue or at the Roselyn Place intersection change before approval of the street improvement plans, Developer must revise the street improvement plans, including striping, to reflect those changed conditions, subject to approval by the City Engineer. There must be no left -turn movement from the Project onto Garfield Avenue.

39. Developer must construct the northbound loading zone lane similar to the design of a bus pad to the satisfaction of the City Engineer to accommodate trash truck operations and loading zone truck traffic.

40. Trash enclosures must include a solid roof and a primed P-trap connected to the sanitary sewer.

41. Under the Los Angeles County Municipal Separate Storm Sewer System (MS4) Permit, issued under the National Pollutant Discharge Elimination System (NPDES) Program, Developer must obtain a General Construction Storm Water Permit from the State Water Resources Control Board, prepare a Low Impact Development (LID) Plan and a Storm Water Pollution Prevention Plan (SWPPP), and provide the City with the Waste Discharge Identification (WDID) Number. Upon approval of the LID Plan and SWPPP, the Developer must submit an electronic copy of the approved plans, including site drawings, before Engineering issues a grading permit.

42. All improvement plans, including grading and public improvement plans, must be based upon City approved criteria. The Developer must obtain benchmark references from the Engineering Division.

43. Before the Building Official issues a building permit, the Developer is responsible for ascertaining and paying all City development fees, such as, but not limited to, plan check fees, sewer deficiency and/or connection fees, water meter fees, and metered water service impact fees as required by the MPMC. The Water Division will determine water service requirements after the Developer submits completed water meter sizing sheets.

44. A site grading and drainage plan must be prepared for review and approval by the City Engineer. The property drainage must be designed to the City Engineer’s satisfaction.

Drainage from adjacent properties must not be blocked and must be accommodated to the satisfaction of the City Engineer. A hydrology and hydraulic study of the site must be submitted to the City Engineer for review and approval. Applicant is responsible for the cost of any permit from Los Angeles County if it is determined that improvements are required that impact the County facilities including all related construction improvements.

45. All storm drainage facilities serving the development must accommodate a 25- year storm. If existing storm drain facilities are inadequate, they must be upgraded as necessary. All storm drain facilities must be designed and constructed to Los Angeles County Department of Public Works standards and specifications, as approved by the City Engineer.

46. The grading and drainage plan must incorporate all applicable recommendations from the geotechnical report.

47. A final water plan must be submitted for review and approval by the City Engineer. This plan must substantiate adequate water service for domestic flow, fire flow, irrigation, and must identify backflow prevention.

48. The sewer and water line points of connection must be clearly identified on the water/sewer plan. The plan must include connection details of all domestic flow, fire line, irrigation line, and sewer clean-outs, and show all existing and proposed utilities.

49. A sewer connection reconstruction fee will be assessed when the Building Official issues a building permit in accordance with the provisions of Chapter 14.06 of the MPMC.

50. The need for preserving existing street trees or providing additional street trees will be reviewed and approved by the City Engineer. Upon completion, the City will provide maintenance. The requirement to plant new street trees, if applicable, will be evaluated by the City Engineer based on the final approved improvements.

51. The Developer must obtain an encroachment permit before performing any work with public rights-of-way.

52. The Developer must provide proposed import/export route.

53. The Developer must provide as-built plans for all utilities plan in AutoCAD format and PDF format after the Project is complete.

54. Record the final map after approval of the map by the City Engineer and acceptance of required bonds and agreements by the City Council. The Permitee will provide the City with (1) transparent 4 mil thick mylar tracing, one (1) electronic file of approved final map tracings transferable to the City’s AUTOCAD and GIS systems , and two (2) blueprints of the recorded map, which must be filed with the City Engineer within three (3) months of recordation.

55. Before submitting the final map for City approval, the Developer must provide written proof that there are no liens against the subdivision for unpaid taxes or special assessments and must submit L.A. County tax bill, tax payment receipt, and copy of the cancelled check.

56. [RESERVED]

57. All electric, telephone, and cable TV utility services must be installed fully underground in accordance with required City standards. Satisfactory provisions for all other utilities and service connections, including water, sewer, and gas, must be made in accordance with City and public utility standards.

F
IRE DEPARTMENT CONDITIONS:

64. The Fire Chief may determine the applicability and scope of the Fire Department conditions.

65. Fire Department access must be provided within 150 feet of all exterior portions of any structure. A minimum of three points of access are required.

66. Fire Department vehicular access roads must be installed and maintained in a serviceable manner before and during the construction.

67. Minimum required fire flow and fire hydrants: All structures must have the minimum fire flow (GPM) in accordance with Appendix B and the quantity and spacing of fire hydrants in accordance with Appendix C 2022 California Fire Code (CFC).

68. A current fire flow report (not older than 6 months), performed by the City of Monterey Park Water Department, must be provided to the Fire Department when applying for building permits to construct or add to any structure. Fire flow test data must be provided prior to approval of plans.

69. Provide a fire hydrant plan, including existing and new hydrants. Identify public and private hydrants.

70. Aerial Fire Apparatus Access Roads: Building exceeding 30 feet in height above the lowest level of Fire Department Vehicle Access must comply with requirements of CFC Section D105.1 through D105.4. All fire lanes must measure a minimum of 28 feet. Buildings must also have an approved fire apparatus access road capable of accommodating fire department aerial apparatus. Overhead utility and power lines must not be located within the aerial fire apparatus access roadway.

71. Automatic Fire Alarm/Detection System: An approved manual, automatic, or manual and automatic fire alarm system installed in accordance with the provisions of CFC and NFPA 72 must be provided in new buildings and structures in accordance with Section 907.2.1 through 907.2.23 and provide occupant notification in accordance with Section 907.10, unless other requirements are provided by another section of this Code.

72. Emergency Responder Radio Coverage: Building must have approved radio coverage for emergency responders within the building based upon the existing coverage level of the public safety communication system per 2022 CFC Section 510.

73. The applicant must provide a formal emergency access plan. The plan must highlight fire access from the public way, designated fire lanes, points of entry, Knox box locations, and 150-foot hose lays from standpipes on all floors and the roof level.

74. The Developer must provide an automatic sprinkler system and standpipe system throughout all structures in accordance to the provisions of the California Building Code and the California Fire Code.

75. All access gates across roadways or entrances to facilities must fail unlocked/open in the event of loss of power. All access gates and main entrance doors must have a Knox Box or Knox Control Key Switch installed.

76. The Fire Department may permit deferred submittal of:
a. F ire protection plans, including, without limitation, fire sprinkler, fire alarm, restaurant fire suppression system, smoke alarm system, standpipe systems, and fire hydrants. b. Emergency responder radio coverage.
c. Fire permits, as required for the Project, must obtained prior to occupancy.

77. Prior to building permit issuance, the Developer must contact the owner or authorized representative of the adjacent hotel property to discuss and analyze how the proposed Project construction may affect the hotel property’s existing means of egress system and provide the Fire Department with a schematic fire protection and life safety report for review and approval.

POLICE DEPARTMENT CONDITIONS:

78. The Developer must provide a security camera plan to be reviewed and approved by the Monterey Park Police Department.

BUILDING & SAFETY CONDITIONS:

79. At plan check submittal, the Developer must include all Project conditions and a copy of the Planning Decision letter on the second sheet of building plans.

80. Plans submitted to Building Division must comply with all applicable codes in effect.

81. The Developer must pay all school development fees to the applicable school district before the Building Official issues a building permit.

82. The Developer must pay all required County of Los Angeles Sanitation District fees before the Building Official issues a building permit.

83. Before plan check submittal, the Developer must file a n address assignment application that must be filed with Engineering Division.

84. The Developer must submit plans prepared and stamped by a licensed architect i n accordance with section 5538(b) of the California Business and Professions Code.

85. The Developer must provide st ructural calculations prepared under the direction of an architect, civil engineer or structural engineer.

86. A geotechnical and soils investigation report is required. T he engineer of record, as indicated on the first sheet of the approved plans, must include the following:
a. Observation of cleared areas and benches prepared to receive fill; b. Observation of the removal of all unsuitable soils and other materials; c. A pproved of soils to be used as fill material;
d. Inspection of compaction and placement of fill;
e. T esting of compacted fills; and
f. I nspection and review of drainage devices.

87. The Developer must retain the soils engineer preparing the Preliminary Soils and/or Geotechnical Investigation accepted by the City for observation of all grading, site preparation, and compaction testing. Observation and testing must not be performed by another soils and/or geotechnical engineer unless the subsequent soils and/or geotechnical engineer submits and has accepted by the Public Works Department, a new Preliminary Soils and/or Geotechnical Investigation.

88. A grading and drainage plan must be approved by the Engineering Division before issuance of the building permit. The grading and drainage plan must indicate how all storm drainage including contributory drainage from adjacent lots is carried to the public way or drainage structure approved to receive storm water.

89. Projects must comply with the requirements of the NPDES (NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM) before issuance of a Demolition, Grading & Building permit. These include requirements for sediment control, erosion control, and construction activities control to be implemented on the Property.

90. All California disability access regulations for accessibility and adaptability must be satisfied.

91. The property must be surveyed and the boundaries must be marked by a land surveyor licensed by the State of California.

92. Foundation inspection will not be made until the excavation has been surveyed and the setbacks determined to be in accordance with the approved plans by a land surveyor licensed by the State of California. THIS NOTE MUST BE PLACED ON THE FOUNDATION PLAN IN A PROMINENT LOCATION.

93. The Developer must obtain electrical plan check approval.

94. The Developer must obtain mechanical plan check approval.

95. The Developer must obtain plumbing plan check approval . Plumbing fixtures must be provided as required by Chapter 4 of the California Plumbing Code. Additional fixtures may be required if not compliance.

96. The Project must comply with Cal Green Non Residential and Residential requirements.

97. The Developer may not place form work or other construction materials on adjacent property without written approval of the affected property owner.

98. Construction to provide electric vehicle infrastructure and facilitate electric vehicle charging must comply with Section 5.106.5.3.1 of the CalGreen Code and must be provided in accordance with regulations in the California Building Code and the Californi a Electrical Code.

99. Forty (40) percent of the total number of parking spaces must be equipped with low power Level 2 EV charging receptacles. EV charging receptacles required by this section must be located in at least one assigned parking space per dwelling unit where assigned parking is provided but need not exceed forty (40) percent of the total number of assigned parking spaces provided on the site per Section 4.106.4.2.2 of the CalGreen Code.

100. Ten (10) percent of the total number of parking spaces must be equipped with Level 2 EV chargers. At least fifty (50) percent of the required EV chargers must be equipped with J1772 connectors. Where common use parking or unassigned parking is provided, EV chargers must be located in common use or unassigned parking areas and must be available for use by all residents or guests per Section 4.106.4.2.2 of the CalGreen Code.

101. Fire Walls separating the buildings must meet the continuity requirements, extending vertically from the podium level to the roof per Section 706.6, as well those for horizontal continuity per Section 706.5. In addition, they must comply with the structural stability requirement per Section 706.2.

102. The building elements must have a fire-resistance rating not less than that specified in Table 601 and exterior walls must have a fire-resistance rating not less than that specified in Table 705.5. Where required to have a fire- resistance rating by Table 601, building elements must comply with the applicable provisions of Section 703.2.

103. Fire-resistance rating requirements for exterior walls based on fire separation distance of 0 to 10 feet must comply with Table 705.5 of the Building Code.

104. Maximum area of exterior wall openings and degree of open protection based on fire separation distance of 0 to 10 feet must comply with Table 705.8 of the Building Code.

Complying with this requirement may restrict the amount of openings proposed on the easterly and southerly exterior walls of the parking garage and on the southerly exterior wall of the Residential Building B. Additional requirements apply if the easterly exterior wall is adjacent to an egress court.

105. The egress court of width less than 10 feet serving as an exit discharge of the interior exit stairways located along the easterly and southerly property line is subject to the fire- resistance rating and open protection requirements per Section 1029.3.

106. Elevator hoistway door opening serving the residential dwelling units must be protected by an enclosed lobby in accordance with Section 3006.2 and 3006.3 unless conditions in the exception are satisfied.

107. Condominiums consisting of four or more attached dwelling units with an elevator must meet the requirements of the California Building Code Section 1106A.

108. Prior to the issuance of building permit, a written consent must be obtained from the current easement holder(s) for any proposed development encroaching into existing easement(s).

109. All fire sprinkler hangers must be designed, and their location approved by an engineer or an architect. Calculations must be provided indicating that the hangers are designed to carry the tributary weight of the water filled pipe plus a 250- pound point load. A plan indicating this information must be stamped by the engineer or the architect and submitted for approval prior to issuance of the building permit.

110. Separate permit is required for Fire Sprinklers.

111. City records indicate the proposed site is a combination of lots under common ownership. A parcel merger by document must be processed prior to issuance of the building permit.

112. Building permits may not be issued until the final map has been prepared to the satisfaction of the Building Official.

113. Mechanical ventilation in accordance with Los Angeles County Building Code is required for the parking garage.

By signing this document, Rykadan 005, LLC (“Developer”), certifies that he/she/they have read, understood, and agrees to the Project Conditions listed in this document.

(Developer)

By signing this document, Rykadan 005, LLC (“Property Owner”), certifies that he/she/they have read, understood, and agrees to the Project Conditions listed in this document.

(Property Owner)

(Property Owner)

(If corporation or similar entity, need two officer signatures or evidence that one signature binds the company)

16826.1:10087292.2
Ex
hibit C
Approved Development Plan

SUMMARY:

PERMITTED LAND USES:

The Project is a mixed use development with 169 dwelling units over commercial space and parking on an approximate 87,934.7 square foot lot after dedications (with

3.5’ along Garvey Avenue, 15’ along Garfield Avenue, and 25’ radial dedication at the corner of Garvey and Garfield.) The parking levels consist of enclosed above grade. The proposed Floor Area Ratio ("FAR") is 2.34.

INTENSITY OF USE:
169 Residential Units will include a mixture of 1-Bedroom, 1-Bedroom Plus Den, 2-Bedroom, and 2-Bedroom Plus Den Units.

ZONING
Zone: Central Business (“C-B”)
Overlay 1: Planned Development District (“P-D”)
Overlay 2: Building Recovery Development agreement Zone ("BRDZ") Specific Plan: Garvey/Garfield Specific Plan

MAXIMUM HEIGHT AND SIZE OF BUILDINGS:

Maximum Allowable: 75'-0" To Roof (Excluding Parapets) Per Figure LU-4 Monterey Park 2040
Proposed: Approximately 73'-9" To Roof (Excluding Parapets), not to exceed 75'- 0" Limit
164,214 Square Feet Residential (Net Rentable Area)
4,388 Square Feet Indoor Residential Amenity Space
4,718 Square Feet Residential Lobby/ Business Office
16,328 Square Feet Commercial Tenant Space
Accessory and other Spaces according to
approved plans
240,698 Square Feet Gross Above Grade Floor Area (Not Including Above Grade Parking)

OPEN SPACE (MPMC 21.15.090 D (2))

Common open space provided = 15,440 sf
Private open space = 7,279 sf

Total open space provided: 22,719 sf

PLANTING AREA (MPMC 21.15.090 d (2) (c))

Landscaped planting area within the common open space: approximately 3,936 sf is planted.

PARKING:

Provided Residential = 233 Spaces (1 Space/1 BD, 1.5 Space/2 BD) Provided Commercial/Guest = 110 Spaces.

Total Provided = 343 Spaces (Refer to Traffic Study for Details)

The Project has considered implementation of transportation demand management measures, including a permitted 5% transit adjustment, unbundled parking permitted under Monterey Park Municipal Code Section 21.22.032(D) and paid parking or valet parking management.

BIKE PARKING:

Required: 21 Spaces (7 for Commercial and 14 for Residential)

Provided Residential = 25 Spaces (Long Term Spaces)
Commercial/Guest = 18 Spaces. (Long Term Spaces)
Exterior Spaces = 9 Spaces

Total Provided = 52 Spaces

PROPERTY CHARACTERISTICS

Lot Size: (95,428.8 Square Feet-Pre-Dedication)/ (87,934.7 Square Feet- Post Dedication)

RIGHT-OF-WAY DEDICATIONS
The Project includes the following right-of-way dedications, which are reflected in the approved Tentative Map and associated Project plans:

Lot area prior to dedication: 95,428 square feet
(2.19 acres) Lot area after dedication: 8 8,064 square
feet (2.02 acres)
Lot width: 221.06 feet (pre-dedication) Approximately 206.06 feet (post- dedication) Lot depth: 432.23 feet (pre-dedication) Approximately 428.73 feet (post-dedication)

16826.1:10087292.2
Ex
hibit D
Development Impact Fees

Exhibit D
Fee Estimate1
Development Impact Fees (“DIF”)
Residential Fee Per Unit Number of Units Total
Police $503.00 169 $85,007.00
Fire $418.00 169 $70,642.00
Circulation $1,129.00 169 $190,801.00
Water $2,570.00 169 $434,330.00
Sewer $356.00 169 $60,164.00
Library $194.00 169 $32,786.00
Public Meeting
Facilities
$1,684.00 169 $284,596.00
Aquatics $743.00 169 $125,567.00
Parks $3,730.00 169 $630,370.00
Total Development
Impact Fees
(Residential)
$11,327.00 169 $1,914,263.00
Commercial Fee Per Square
foot
Square Footage Total
Police $0.370 16,300 $6,031.00
Fire $0.350 16,300 $5,705.00
Circulation $3.216 16,300 $52,420.80
Water $0.769 16,300 $12,534.70
Sewer $0.138 16,300 $2,249.40
Library
Public Meeting
Facilities
Aquatics
Parks $0.064 16,300 $1,043.20
Total Development
Impact Fees
(Commercial)
$4.907 $79,984.10
1 The fees listed are an estimate only; the final amounts may be different. These fees do not include time and materials costs associated with processing the Project or administrative costs including, without limitation, third party consultants, and legal f ees.

All such amounts must be paid before the City issues a building permit.

Plan Check Fees
Building Building/Electrical/Mechanical/
Plumbing Plan
$TBD
Fire2 $956.50
Public Works (Consultant Estimate) $TBD
Total Plan Check Fees $TBD
Pe
rmit and Inspection Fees
Building Building/Electrical/Mechanical/
Plumbing Plan
$TBD
Fire $TBD
Public Works Encroachment Permit at $504.00
Inspection at $298.98
per 4 hrs.

Total Plan Check Fees $TBD
Mi
sc. Fees
Record Management $TBD
General Plan Revision $TBD
Strong Motion Tax $TBD
Green $TBD
Water and Fire
Connection
$TBD
School Impact $3.79/sf $TBD
County Sanitation $TBD
2 Fire fees are not based on building valuation. The fees are calculated on an hourly rate plus third party costs. The estimate shown of $956.50 includes review of architectural plans subject to change based on actual third- party consultant rates for revisions, rechecks or incomplete plans. This estimate does not include potential tenant improvements, which are subject to additional plan check and permit fees. Plan check fees for fire protection systems (fire sprinkler, fire alarm, commercial automatic fire extinguishing systems) are not included in the estimate.

ATTACHMENT 3
Copy of August 5, 2026, City Council
Staff Report (without attachments)

City Council Staff Report

Date: August 5, 2026
Agenda Item Number: 11.A.

To: The Honorable Mayor and City Council
From: Timothy Hou, Director of Community Development
Eliana Munoz, Senior Planner
Subject: A public hearing to consider an ordinance approving Amended Development Agreement No. 2261-AA (DA-26-01) and a resolution approving Tentative Map No. 26-05 (County Map No. 82800) for a mixed-use development consisting of 169 residential units and approximately 16,300 square feet of commercial/retail space located at 114 E. Garvey Avenue

Recommendation:

It is recommended that the City Council consider:

1. Opening the public hearing;

2. Receiving documentary and testimonial evidence;

3. Closing the public hearing;

4. After considering the evidence received during the public hearing: introducing and waiving the first reading of an ordinance approving Amended Development Agreement No. 2261-AA (DA-26-01); and adopting a resolution approving Tentative Map (TM) No. 26-05 (County Map No. 82800); and

5. Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

The request includes the construction of a seven-story, mixed-use development consisting of 169 rental residential units and approximately 16,300 square feet of commercial/retail tenant space (the “Project”). Pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. §§ 15000, et seq., the “CEQA Guidelines”), the City has reviewed the Project and determined that the Project is exempt from CEQA under Public Resources Code § 21080.66 and that the Project satisfies the requirements of that section. If approved, the City will file a Notice of Exemption (Attachment 3) as required under Public Resources Code §§ 21008, 21152 for the Project. Accordingly, no environmental impact report, negative declaration, or mitigated negative declaration is required for the Project.

Public Resources Code § 21080.66, enacted by Assembly Bill (“AB”) 130, exempts qualifying

housing development projects from CEQA if they satisfy specified criteria. Because the Project qualifies for this statutory exemption, technical studies otherwise associated with CEQA review, such as air quality and noise analyses, were not required. A traffic study was nevertheless prepared for the Project and is discussed later in this report.

To qualify for the streamlining exemption under Public Resources Code § 21080.66, a project must satisfy statutory requirements. The Applicant submitted an AB 130 Eligibility Checklist (Attachment 4), and staff determined that the Project satisfies those eligibility requirements, including project size, urbanized location, infill status, absence of statutory exclusion areas, and the lack of any historic structure demolition.

AB 130 also requires consultation with California Native American tribes that are traditionally and culturally affiliated with the Project Site. City staff conducted tribal consultation in accordance with the statute and incorporated tribal cultural resource conditions into the Project’s Conditions of Approval at the request of one of the consulted tribes (Conditions of Approval 28-33).

Finally, AB 130 requires a Phase I Environmental Site Assessment (“ESA”). The Applicant submitted a Phase I ESA for the Project (Attachment 5) which staff reviewed and accepted.

Consistent with California law, any recognized environmental conditions identified in the Phase I ESA must be remediated or otherwise addressed before issuance of a certificate of occupancy.

Executive Summary:

Rykadan 005, LLC (the “Applicant”) requests approval of Amended Development Agreement (“DA”) No. 2261-AA, to amend the Development Agreement approved by the City Council in 2021 and approval of a Tentative Map. The proposed Amended Development Agreement (DA- 26-01) would facilitate the construction of a seven-story, mixed-use development consisting of 169 rental residential units and approximately 16,300 square feet of commercial/retail tenant space. The Project is located at the southeast corner of E. Garvey Avenue and S. Garfield Avenue and includes five addresses (114 E. Garvey Avenue and 100, 120, 150, and 200 S.

Garfield Avenue) and six Assessor Parcel Numbers (5257-015-001, 002, 003, 004, 005, and 035), collectively referred to as 114 E. Garvey Avenue (the “Project Site”). Compared to the 2021 approval, the Amended Development Agreement increases the residential uses, decreases the area dedicated to commercial uses; modifies parking and open space; and includes additional public benefits, including separate $200,000 contributions to the City's Affordable Housing Fund and Parks Master Plan Facilities Fund.

TYPE OF ACTION (LEGISLATIVE AND QUASI-JUDICIAL)
Legislative: The recommended action includes an Ordinance to approve Amended Development Agreement No. 2261-AA in which the City Council acts in its discretionary legislative capacity. Pursuant to Government Code § 65867.5, to approve the Amended Development Agreement, the City Council must find that the:
• Provisions of the Agreement are consistent with the General Plan and any applicable specific plan; and
• Agreement provides that any tentative map prepared for the subdivision will comply with Government Code § 66473.7.

Quasi-Judicial: The recommended action includes a resolution approving a Tentative Map. In considering such actions, the City Council acts in a quasi-judicial role. In that capacity, the City Council applies the applicable law to the facts contained in the administrative record.

Accordingly, the City Council can only consider facts that are relevant to the case. A party appearing before the legislative body is entitled to:
• Notice of the proposed action;
• Reasons for the action;
• A copy of the evidence on which the action is based; and • The right to respond before a reasonably impartial, non-involved reviewer.

The City Council must base its decision on substantial evidence within the record. “Substantial evidence” includes facts, reasonable assumptions supported by facts, and expert opinion supported by facts. Argument, speculation, unsubstantiated opinion or narrative, evidence which is clearly erroneous or inaccurate, or evidence of social or economic impacts does not constitute substantial evidence. If the City Council relies on information outside the record or on matters that do not constitute substantial evidence, a court may invalidate the Council’s decision.

To approve the Tentative Map, the City Council must find that the Project meets the findings required by Monterey Park Municipal Code (“MPMC”) § 20.04.070 that:

A. The Project is consistent with the Monterey Park General Plan; B. The Project is consistent with the applicable planned development; C. The Project is consistent with the provisions of the MPMC; D. The Project is in the interest of public health and safety; and E. The Project is a necessary prerequisite to the orderly development of the surrounding area.

These findings are included in the attached Resolution (Attachment 2); the facts upon which these findings rely are also included within the administrative record. The facts to make such findings are based upon substantial evidence presented during the City Council public hearing on August 5, 2026.

Background:

The Project Site has been the subject of several redevelopment proposals over the past two decades. Following the bankruptcy of the prior developer, the Applicant acquired the property in 2018 and obtained City Council approval on October 6, 2021 for a six-story mixed-use development pursuant to DA No. 2261-AA (Attachment 6). Although the developer initially indicated that construction would begin in 2022, no building permits were obtained before the adoption of the 2022 California Building Standards Codes, requiring the project to comply with updated regulations. Beginning in 2023, the developer sought to modify the approved project, citing changing economic conditions and construction costs. The City determined that the proposed revisions constitute substantial modifications requiring City Council review and approval.

On December 18, 2024, the City Council received a compliance review update regarding the status of the approved project and the Applicant's proposed modifications (Attachment 7).

That staff report provides a detailed discussion of the project's entitlement history, compliance status, and the basis for requiring City Council consideration of any substantial amendments to the approved project.

The Applicant is requesting approval of Amended Development Agreement No. 26-01, i.e., an amendment to DA No. 2261-AA, and approval of TM No. 26-05 (County Map No. 82800) to consolidate the existing parcels into a single legal parcel.

The Applicant proposes to amend the previously approved project by increasing the residential uses, decreasing the commercial uses, modifying parking and other development requirements, and updating the design.

The previously entitled project consisted of a mixed-use building with three subterranean parking levels and six above-grade levels, containing 151 residential units, approximately 43,000 square feet of commercial space, and 509 parking spaces. The building had an overall height of approximately 74 feet.

As revised, the Project proposes a seven-story mixed-use development consisting of 169 rental residential units, approximately 16,300 square feet of ground-floor commercial/retail space, and 343 parking spaces. The revised design eliminates the previously proposed subterranean parking levels while maintaining an approximate height of 74 feet.

The Project Site is located within the Central Business Commercial (C-B) Zone and within the eligible Planned Development (P-D) and Business Recovery Development Agreement Zone (BRDZ) overlays. The Project Site is also located within the Garvey/Garfield Specific Plan.

Under the General Plan Land Use and Urban Design Element (LUE), the Project Site is designated as Mixed Use.

The Project Site is a vacant 2.19-acre (approximately 95,428-square-foot) parcel located at the southeast corner of E. Garvey Avenue and S. Garfield Avenue. The site is surrounded by commercial developments and uses to the north and south, a hotel and other commercial uses to the east, and a bank and commercial uses to the west (see Figure 1).

Figure 1: Project Site Aerial - 114 E. Garvey Avenue

Figure 2: Vicinity Map - 114 E. Garvey Avenue

SITE AND ARCHITECTURAL DESIGN
The Project is a mixed-use development consisting of a seven-story building with a height of approximately 74 feet, built at-grade with 169 residential rental units and approximately 16,300 square feet of ground-floor commercial/retail space fronting E. Garvey Avenue and S. Garfield Avenue. The residential component occupies levels three through seven and includes a mix of one- and two-bedroom units.

A prominent public plaza is proposed at the Project's northwest corner, adjacent to the intersection of E. Garvey Avenue and S. Garfield Avenue. Designed as a community gathering space, the plaza will feature decorative paving, enhanced pedestrian lighting, and accent seating to create an inviting and active space. The plaza will remain open to the public during business hours.

The Project also includes sidewalk improvements along both E. Garvey Avenue and S.

Garfield Avenue. Existing five-foot-wide sidewalks will be widened to approximately 12 to 15 feet and enhanced with landscaping, trees, and an upgraded bus stop shelter.

Architecture
The Project incorporates a contemporary architectural style characteristic of newer construction. The building elevations are articulated through varied massing, design elements, and the integration of decorative materials that reinforce the modern architectural theme.

Exterior features include a palette of organic-toned stucco finishes complemented by

decorative materials such as aluminum composite metal, glass and metal railings, wood-like vertical screening, and brick veneer.

Parking and Driveways
The Project provides a total of 343 parking spaces located on levels one through three. Based on the applicable MPMC requirements, the Project would be required to provide approximately 434 parking spaces to accommodate the commercial, residential, and visitor parking demand.

As proposed, the Project results in a parking reduction of 91 spaces.

To address this parking reduction, the Project prepared a shared parking analysis (Attachment 8) that evaluated the anticipated parking demand for the proposed uses. The analysis estimated a peak shared parking demand of 402 spaces. The analysis also incorporates an unbundled parking strategy, as permitted by the Code, in which parking spaces are leased separately from residential and commercial units. The analysis concludes that the unbundled parking strategy reduces overall parking demand based on the supporting parking studies.

Based on the shared parking analysis and the demand reductions associated with the unbundled parking strategy, the analysis concludes that the Project’s peak shared parking demand would be 343 spaces, consisting of 270 spaces for residential use and 73 spaces for commercial and guest parking. This demand is consistent with the 343 parking spaces proposed for the Project.

The parking structure provides access points along S. Garvey Avenue and E. Garfield Avenue, opposite Roselyn Place. Both driveways provide ingress for residents, commercial users, and visitors. Internal circulation within the ground-floor parking area allows vehicles to access and depart through either driveway.

Additionally, the City Engineer noted that the Project proposes a double left-turn pocket lane on S. Garfield Avenue to facilitate northbound left-turn access to Roselyn Place and southbound left-turn access into the Project site from S. Garfield Avenue. The City Engineer further indicated that, if conditions along S. Garfield Avenue or at the Roselyn Place intersection change before approval of the street improvement plans, the Applicant must revise the street improvement plans, including striping, to reflect those changed conditions, subject to approval of the City Engineer.

Residential Open Space
The Project provides several areas dedicated to open space for the enjoyment of its residents.

On level two, the Project provides an area that may be used as a karaoke lounge and theater, a game room, an outdoor lounge, and a small gym with a men’s and women’s locker room. A fitness room is proposed on level three, and on level four, the Project provides a club room, a co-working space, and a 13,200 square feet amenity deck area. The amenity deck includes a spa, landscaping, seating areas, a fire pit, pergolas, a BBQ area, dining tables, raised planters, and string lighting.

DEVELOPMENT AGREEMENT
The Project satisfies all requirements for DA approval, including consistency with the General Plan as discussed in the draft Ordinance (Attachment 1). Pursuant to MPMC § 21.44.020(B),

a DA, in a form approved by the City Attorney, is required for all residential developments containing 10 or more dwelling units.

As part of the proposed Amended Development Agreement, the Applicant has committed to providing several public benefits, including:
• A major public gathering space and plaza at the Project's central entrance along Garfield Avenue.
• Participation in funding the City's transit programs, including Spirit Bus and MPK Transit Express.
• A $200,000 contribution to the City's Affordable Housing Trust Fund. • A $200,000 contribution to the City's Parks Master Plan Facilities Fund.

In addition to these and other public benefits, the Amended Development Agreement includes provisions requiring an annual review to evaluate whether the Developer is acting in good-faith compliance with the term of the DA throughout its five-year term. The Amended Development Agreement also establishes the parties' respective rights and obligations, including the applicable development standards, public benefits, and implementation requirements for the Project. It also is consistent with the General Plan by providing clear development standards and facilitating housing in mixed-use areas.

TENTATIVE MAP
The Project Site currently consists of six parcels totaling approximately 95,402 square feet (2.19 acres). The Applicant requests approval of Tentative Map No. 26-05 (County Map No. 82800) to merge the six parcels into a single parcel. As proposed, the Tentative Map is consistent with the Monterey Park Municipal Code (MPMC) and the General Plan.

The Tentative Map and associated plans were reviewed by the Public Works Department and other applicable agencies, which have recommended conditions of approval. Pursuant to MPMC Chapter 20.10, the Applicant must submit a final map within 24 months of approval of the Tentative Map. The final map will be reviewed to ensure substantial conformance with the approved Tentative Map and compliance with the Conditions of Approval prior to recordation.

COMMUNITY OUTREACH
The Applicant conducted one community outreach meeting for the Project on April 28, 2026, at Luminarias Restaurant and Event Center. Notice of the meeting was mailed to property owners within a 500-foot radius of the Project Site. Based on the submitted sign-in sheets (Attachment 9), 34 individuals signed in. According to the Applicant, approximately 60 people attended the meeting because an option to attend via Zoom was also offered. The meeting included a presentation of the proposed Project design and planned amenities, with an emphasis on activating the prominent intersection of Garvey and Garfield Avenues. According to the Applicant, most of the attendees they interacted with expressed general support for the Project.

LEGAL NOTIFICATION

The legal notice of this hearing was published in the Monterey Park Press on July 23, 2026, with affidavits of posting on file. The legal notice was also posted at City Hall, Monterey Park Bruggemeyer Library, and Langley Center, and mailed to property owners within a 500-foot radius of the Project Site in accordance with Government Code §§ 65090 and 65091.

Strategic Plan Goal:

The Project supports the 2026-27 Strategic Plan Goal to “Strengthen our local economy and enhance housing opportunities” by advancing goals and programs set forth in the City’s General Plan, reducing barriers to encourage housing development, and supporting economic growth in the City.

Fiscal Impact:

Approval of the Project may increase City revenues through higher property tax, sales tax, business license tax, and development-related fee revenues associated with the construction, occupancy, and operation of the commercial/retail spaces. In addition, pursuant to the Development Agreement, the Applicant will contribute $200,000 to the City's Affordable Housing Trust Fund and $200,000 to the City's Parks Master Plan Facilities Fund. The Project’s precise fiscal impact is unknown and cannot be reliably quantified at this time.

Attachments:

1. Draft Ordinance Approving DA-26-01 (Amendment to DA No. 2261-AA)

2. Resolution Approving TM No. 26-05

3. Draft Notice of Exemption

4. AB 130 Analysis and Compliance Checklist

5. Phase I Environmental Site Assessment

6. October 6, 2021, Project Approval (without attachments)

7. December 18, 2024, Compliance Review (without attachments)

8. Transportation Study

9. Community Outreach

10. Architectural Plans

City Council Staff Report

Date: August 19, 2026
Agenda Item Number: 10.D.

To: The Honorable Mayor and City Council
From: Diana Garcia, Assistant City Manager
Subject: Voter Education for City Ballot Measures – November 2026 General Municipal Election

Recommendation:

It is recommended that the City Council consider:

1. Directing staff to take all necessary and appropriate actions to conduct impartial public education regarding the City ballot measures appearing on the November 2026 General Municipal Election ballot; and

2. Taking such additional, related, action that may be desirable.

Executive Summary:

The November 2026 General Municipal Election will include two City ballot measures for voter consideration. California law permits public agencies to use public resources to provide impartial and factual information regarding ballot measures, while prohibiting the use of public funds for campaign advocacy.

To ensure residents have access to accurate, objective information before casting their ballots, the City has historically conducted public education efforts that explain the purpose, content, and potential effects of ballot measures without advocating for or against their adoption.

Background:

Voter education provides residents with factual information to help them make informed decisions and promotes transparency throughout the election process. Staff proposes developing comprehensive information and education utilizing a variety of communication methods to reach residents throughout the community.

The outreach program may include, but is not limited to:

• Dedicated webpages containing impartial information about each ballot measure, frequently asked questions, and supporting documents.
• Informational fact sheets and educational materials translated into the City's commonly spoken languages.
• Community presentations and informational meetings.
• Social media posts and digital communications.
• Mailers and articles in City publications and newsletters. • Informational videos and other multimedia content.

All outreach materials will be reviewed for legal compliance to ensure they are educational and factual in nature and do not advocate for or against any ballot measure.

Strategic Plan Goal:

This action meets Goal 6 of City Council's 2026-2027 Strategic Plan, to "Enhance Public Communication and Civic Engagement to Reach All Members of Our Community".

Fiscal Impact:

Existing appropriations within the City's budget will be used. No additional appropriations are being requested.

Attachments:

None

City Council Staff Report

Date: August 19, 2026
Agenda Item Number: 10.E.

To: The Honorable Mayor and City Council
From: Timothy Hou, Director of Community Development
Joseph Torres, Economic Development Manager
Subject: City Council Support for State Nomination of Three Monterey Park Census Tracts for Opportunity Zone Designation

Recommendation:

It is recommended that the City Council consider:

1. Authorizing the Mayor to sign the Letter of Support on behalf of the City Council to endorse the State of California’s recommendation to designate three Monterey Park census tracts under the Federal Opportunity Zone 2.0 Program (Attachment 1);

2. Directing staff to submit the signed letter to the State during the public comment period, which ends on August 28, 2026; and

3. Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

These actions are exempt from review under the California Environmental Quality Act (California Public Resources Code 2100, et seq., “CEQA”) and CEQA regulations (14 California Code of Regulations 15000, et seq.) because they consist of expressing support for the State’s recommendation of three census tracts for possible federal Opportunity Zone designation and do not approve any specific development project or physical change to the environment. Accordingly, the related actions do not constitute a “project” that requires environmental review.

Executive Summary:

The federal Opportunity Zone Program is an economic development incentive that encourages private investment in eligible lower-income communities.

Federal legislation enacted in 2025 made the Opportunity Zone Program permanent and established recurring rounds of census tract designations. The first new round, commonly referred to as Opportunity Zones 2.0, is currently underway. The State’s recommendation is an important step toward a possible federal designation by the U.S. Department of the Treasury and offers Monterey Park an opportunity to strengthen its position for future private

investment.

The State is accepting public comments on its recommended census tracts through August 28, 2026. The Letter of Support from City Council would formally endorse the State’s recommendation, demonstrate strong local governmental support, and provide the State with an additional record of the City’s commitment to the proposed designations.

Background:

The Opportunity Zone Program was established under the Tax Cuts and Jobs Act of 2017 to encourage long-term private investment in economically eligible census tracts. Federal legislation enacted in 2025 made the Opportunity Zone Program permanent and established recurring 10-year designation cycles. The first new designations will take effect January 1, 2027. Investors may reinvest eligible capital gains into Qualified Opportunity Funds (QOFs), which in turn invest in qualifying real estate projects and operating businesses within designated Opportunity Zones. Opportunity Zone designation does not require the City to provide a subsidy or commit municipal funds.

For the Opportunity Zone 2.0 nomination cycle, City staff, with technical assistance from Los Angeles County Economic Development Corporation (LAEDC), evaluated Monterey Park’s eligible census tracts based on economic need, development potential, alignment with local and regional economic development priorities, and the potential to attract private investment.

To preserve the City’s opportunity to participate in the statewide selection process, staff submitted six eligible census tracts to the State by the July 20, 2026, deadline.

The Opportunity Zone 2.0 designation process is highly competitive. Across the state, 2,469 census tracts are eligible for consideration, but California may nominate no more than 618 tracts for final designation by the U.S. Department of the Treasury. As a result, only about one- quarter of eligible census tracts can advance to federal designation. Therefore, the inclusion of three Monterey Park census tracts on the State’s recommended list is a significant achievement and reflects the City’s strong positioning for future economic development and private investment opportunities.

The six census tracts were 060374822.01, 060374822.02, 06037481.11, 060374817.12, 060374817.14, and 060375304.00 (Attachment 2). Following the State’s review, three Monterey Park tracts were included on the State’s recommended list for designation:

Census Tract General Area State Status 060374817.12 Northeast Mixed-Use Neighborhood Center Recommended 060374817.14 Northwest Infill & Mixed-Use Corridor Recommended 060375304.00 Atlantic Blvd/ELAC Innovation & Educational Recommended District

The State’s designation is not a final federal designation. The recommended tracts remain subject to the State’s public comment and final nomination process before submission to the U.S. Department of the Treasury. The public comment period provides an opportunity for local governments, community organizations, businesses, property owners, and other stakeholders to express support for the proposed designations.

POTENTIAL BENEFITS:

When ultimately designated by the U.S. Department of the Treasury, the three Monterey Park Opportunity Zones would provide an additional economic development tool to attract investment to key commercial, mixed-use, medical, educational, and innovation-oriented areas of the City. Potential benefits include the following:

• Attracting new private investment and providing an additional financing tool for qualifying projects that may otherwise have difficulty securing sufficient equity; • Supporting redevelopment and reinvestment in vacant, obsolete, or underutilized properties within the designated tracts;
• Supporting job creation, strengthening commercial corridors, and potentially expanding the local tax base without requiring a direct City subsidy; and • Increasing Monterey Park’s visibility among qualified opportunity funds, developers, businesses, and investors seeking tax-advantaged investment locations.

Strategic Plan Goal:

Designating three Monterey Park census tracts as Opportunity Zones supports Strategic Plan Goal No. Three: Strengthen our local economy and enhance housing opportunities.

Opportunity Zone designation could attract private investment, support the redevelopment of underutilized properties, expand business and employment opportunities, and strengthen key commercial and mixed-use corridors throughout Monterey Park.

Fiscal Impact:

There is no direct fiscal impact from approving or submitting the Letter of Support. The federal Opportunity Zone incentive is available to qualifying private investors and QOFs and does not require the City to provide a subsidy, tax rebate, or financial contribution. If the census tracts ultimately receive federal designation, future private investment could generate positive indirect fiscal benefits through property investment, business growth, job creation, and additional local economic activity.

Attachments:

1. Letter of Support

2. Map of Submitted Census Tracts

ATTACHMENT 1
Letter of Support

PRIDE IN THE PAST • FAITH IN THE FUTURE

320 West Newmark Ave. Monterey Park, CA 91754
www.montereypark.ca.gov

CITY CLERK

MAYCHELLE YEE

CITY TREASURER

AMY LEE

CITY COUNCIL

HENRY LO

VINH NGO

JOSE SANCHEZ

THOMAS WONG

ELIZABETH YANG

August 19,2026

Governor’s Office of Business and Economic Development (GO-Biz) Opportunity Zone 2.0 Public Comment
State of California

RE: City of Monterey Park Letter of Support for State-Recommended Opportunity Zone

2.0 Census Tracts

Dear Governor Newsom,

On behalf of the City Council of the City of Monterey Park, I am pleased to express our strong support for the State of California’s recommendation that three Monterey Park census tracts be designated under the federal Opportunity Zone 2.0 Program.

The three recommended census tracts are 060374817.12, 060374817.14, and 060375304.00.

We are encouraged that these three census tracts have advanced to the State’s recommended list for potential nomination to the U.S. Department of the Treasury. The City Council believes that Opportunity Zone designation would provide an invaluable economic development tool to attract private investment, support the redevelopment of vacant, obsolete, or underutilized properties, encourage business expansion and entrepreneurship, and create employment opportunities within Monterey Park.

Through this letter, the City Council formally endorses the State’s recommendation and respectfully requests that these Monterey Park tracts remain in the State’s final Opportunity Zone 2.0 nominations to the U.S. Department of the Treasury.

PRIDE IN THE PAST • FAITH IN THE FUTURE

320 West Newmark Ave. Monterey Park, CA 91754
www.montereypark.ca.gov

We appreciate the State’s consideration of Monterey Park and the opportunity to participate in the Opportunity Zone 2.0 designation process. The City looks forward to collaborating with the State, regional partners, property owners, businesses, developers, and investors to maximize the economic development potential of these areas upon final federal designation.

Sincerely,

Henry Lo
Mayor
City of Monterey Park
On behalf of the Monterey Park City Council

ATTACHMENT 2
Map of Submitted Census Tracts

Map of Submitted Census Tracts

NOT SELECTED:

1. 060374822.01 – Downtown Commercial Core & Garfield/Garvey Corridor

2. 060374822.02 – Southeast Residential/Commercial Area

3. 060374817.11 – North Garfield Medical & Retail Area

SELECTED:

4. 060374817.12 – Northeast Mixed-Use Neighborhood Center

5. 060374817.14 – Northwest Infill & Mixed-Use Corridor

6. 060375304.00 – Atlantic Blvd/ELAC Innovation & Educational District

City Council Staff Report

Date: August 19, 2026
Agenda Item Number: 11.A.

To: The Honorable Mayor and City Council
From: Timothy Hou, AICP, Director of Community Development Jerry C. Guevara, AICP, Planning Manager
Subject: Rescinding and Terminating Development Agreement No. 21-01 and Repealing Goodviews Specific Plan for the Property located at 1688 West Garvey Avenue

Recommendation:

It is recommended that the City Council consider:

1. Opening the public hearing;

2. Receiving documentary and testimonial evidence;

3. Closing the public hearing;

4. After considering the evidence received during the public hearing, introducing and waiving first reading for: (1) an ordinance repealing Ordinance No. 2210 and restoring the zoning designation of the property located at 1688 West Garvey Avenue from the 1688 West Garvey Avenue Specific Plan to High-Density Residential (R-3); and (2) an uncodified ordinance repealing Ordinance No. 2211 and rescinding and terminating Development Agreement No. 21-01 (Agreement No. 2252-AA) between the City of Monterey Park and Center Int’l Investments, Inc.; and

5. Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

Pursuant to the California Environmental Quality Act (Public Resources Code sections 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. sections 15000, et seq., the “CEQA Guidelines”), the proposed actions are exempt from CEQA under CEQA Guidelines Section 15061(b)(3). It can be determined with certainty that the proposed actions would have no significant effect on the environment, as they involve the repeal of the 1688 West Garvey Avenue Specific Plan (Goodviews Specific Plan), restoration of the property’s prior High-Density Residential (R-3) zoning designation, and rescission and termination of Development Agreement No. 21-01 and do not propose or approve any new development. If the proposed actions are approved, the City will file a Notice of Exemption as required under Public Resources Code sections 21008 and 21152.

Executive Summary:

On May 6, 2026, the City Council held an annual review of Development Agreement No. 21-01 (Agreement No. 2252-AA (“Development Agreement”)) between the City of Monterey Park (“City”) and Center Int’l Investments, Inc. (“CII”) for the property located at 1688 West Garvey Avenue (APN: 5254-002-903 (“Property”)) and found that CII failed to demonstrate good-faith compliance with the terms and conditions of the Development Agreement. The City Council directed staff to initiate proceedings to rescind and terminate the Development Agreement in accordance with Government Code Section 65868 and Section 12 of the Development Agreement. In addition, the City Council directed staff to initiate proceedings to repeal the Goodviews Specific Plan associated with the Development Agreement and project (“Project”), including any necessary zone change to restore the prior zoning designation.

Accordingly, staff recommends that the City Council introduce for first reading: (1) an ordinance repealing Ordinance No. 2210 and restoring the zoning designation of the Property from the Goodviews Specific Plan to High-Density Residential (R-3); and (2) an uncodified ordinance repealing Ordinance No. 2211 and rescinding and terminating the Development Agreement between the City and CII. This would allow the City to market the Property for sale in a manner that maximizes the potential return to offset the substantial abatement costs it has incurred.

Background:

On April 25, 2017, the parties executed a Settlement Agreement and Mutual Release (“Settlement Agreement”) resolving a civil nuisance abatement action captioned The People of the State of California, ex rel., Mark D. Hensley, City Attorney for the City of Monterey Park v.

Center Int’l Investments, Inc., et al. (LASC Case No. BC605788), filed December 31, 2015.

The Settlement Agreement, as subsequently amended, obligated CII to construct and maintain erosion control measures and stabilize the Property, and further provided that the City, on behalf of the People, could enter the Property to remediate nuisance conditions upon CII’s failure to timely perform and at CII’s sole cost.

On July 7, 2021, the City Council approved various Project entitlements to facilitate the development of a 16-unit gated residential community at the Property. The entitlements included: (1) certification of a Final Environmental Impact Report (SCH No. 2020070419) for the Project; (2) approval of a vesting tentative map (VTM No. 21-01) to subdivide the Property into 18 lots; (3) adoption of an ordinance (Ordinance No. 2210) approving a zone change (ZC- 21-01) to change the zoning designation of the Property from High-Density Residential (R-3) to the Goodviews Specific Plan; and (4) an ordinance (Ordinance No. 2211) approving the Development Agreement and outlining terms and conditions for the Project, including the stabilization of the Property.

Following entitlement approvals for the Project, CII did not begin the required hillside stabilization work. The City Manager served a Notice of Breach on August 25, 2021, followed by a Notice of Default on October 13, 2021, outlining failures to remediate a public nuisance and to defend and indemnify the City in third‑party litigation (Save Our Slopes v. City of Monterey Park). CII also failed to comply with Section 19 of the Development Agreement, which required it to defend and indemnify the City against challenges related to the Project.

Despite repeated tenders of defense from July through September 2021, CII refused to participate. The City Council initiated legislative subpoena proceedings in May 2022 to gather facts related to CII’s nonperformance and potential termination of the Development

Agreement. Separately, due to an imminent threat to public health and safety, the City declared an emergency in June 2022 and began direct abatement work under the Goodviews Abatement Project. The City incurred approximately $16 million in costs, secured through nuisance abatement liens. CII has not paid any portion of this amount, which continues to accrue interest at 10 percent annually. Under the amended Settlement Agreement, CII pledged commercial property on Lee Avenue as security for its obligations. After CII failed to reimburse abatement costs, the City initiated a non‑judicial foreclosure. The Lee Avenue property did not sell at auction on April 2, 2025, resulting in automatic transfer of title to the City. The City Council accepted title on April 16, 2025, as partial satisfaction of CII’s outstanding debt.

Analysis for Restoring the Zoning Designation of the Property:

One of the Project’s entitlements, Ordinance No. 2210, approved a zone change (ZC-21-01) changing the zoning designation of the Property from High-Density Residential (R-3) to the Goodviews Specific Plan. Staff recommends that the City Council introduce for first reading an ordinance repealing Ordinance No. 2210 and restoring the zoning designation of the Property from the Goodviews Specific Plan to High-Density Residential (R-3).

Existing Zoning Designation Restored Zoning Designation

Currently, the Goodviews Specific Plan allows a maximum of 16 single-family residences, and the High-Density Residential (R-3) zoning designation would allow a maximum of 155 dwelling units. The General Plan land use designation of the Property is currently Low-Density and would allow a maximum of 50 dwelling units. Although housing projects typically must be consistent with both the General Plan and zoning, under AB 130, certain qualifying projects may be deemed consistent with both if they are consistent with either one. If voters approve changing the General Plan land use designation to High-Density, that change would eliminate the current inconsistency and allow a maximum of 186 dwelling units. Restoring the Property to High-Density Residential (R-3) zoning would allow greater development potential, broaden the potential buyer pool, and maximize the sale price as recommended by the study prepared by Kidder Mathews.

Analysis for Terminating Development Agreement:

After conducting an annual compliance review of the Development Agreement, as required under Government Code Section 65865.1 and in Section 5 of the Development Agreement, Subject
Property
Subject
Property

the City Council found that CII failed to demonstrate good‑faith compliance with multiple core obligations. The City identified eight specific areas of noncompliance, including failure to implement required hillside stabilization, failure to abate a longstanding public nuisance, failure to comply with mitigation measures, failure to cooperate or provide necessary documentation, failure to obtain necessary permits, failure to defend and indemnify the City in litigation, failure to reimburse approximately $16 million in abatement costs, and failure to provide evidence supporting good‑faith performance. Collectively, these deficiencies demonstrated CII’s complete nonperformance under the Development Agreement. Therefore, staff recommends that the City Council adopt an uncodified ordinance repealing Ordinance No. 2211 and rescinding and terminating the Development Agreement between the City and CII.

Legal Notification:

Public notice of these actions was posted, published, and mailed in accordance with City and California regulations. A notice was published in the Monterey Park Press on July 30, 2026, with affidavits of posting on file. The legal notice was also posted at City Hall, Monterey Park Bruggemeyer Library, and Langley Center, and mailed to property owners and tenants within a 300-foot radius of the Property in accordance with Government Code sections 65090 and 65091.

Strategic Plan Goal:

These actions support the City Council’s goals of protecting public health and safety and ensuring fiscal responsibility by addressing a developer’s failure to abate hazardous hillside conditions that posed an imminent threat to the community. The recommended actions further the City’s housing and land use objectives by positioning the property for future development at a density consistent with the High-Density Residential (R-3) zoning and maximizing the City’s return on the substantial abatement costs it has incurred.

Fiscal Impact:

There are no fiscal impacts associated with the recommended actions. However, the anticipated revenue from the sale of the Property under the proposed marketing strategy, is expected to offset a significant portion of the outstanding abatement costs. All costs associated with the recommended actions will be absorbed within existing City resources; no new appropriations are required at this time.

Attachments:

1. Draft Ordinance Repealing Ordinance No. 2210 and Restoring the Zoning Designation of the Property Located at 1688 West Garvey Avenue

2. Draft Ordinance Repealing Ordinance No. 2211 and Rescinding and Terminating Development Agreement No. 21-01

3. Copy of Ordinance No. 2210

4. Copy of Ordinance No. 2211 and Development Agreement No. 21-01

5. Copy of May 6, 2026, City Council Staff Report (without attachments)

ATTACHMENT 1
Draft Ordinance Repealing Ordinance No. 2210
and Restoring the Zoning Designation of the
Property Located at 1688 West Garvey Avenue
from the 1688 West Garvey Avenue Specific
Plan to High-Density Residential (R-3) Zone

ORDINANCE NO.

AN ORDINANCE REPEALING ORDINANCE NO. 2210 AND RESTORING THE ZONING DESIGNATION OF THE PROPERTY LOCATED AT 1688
WEST GARVEY AVENUE (APN: 5254-002-903) FROM THE 1688 WEST

GARVEY AVENUE SPECIFIC PLAN TO HIGH- DENSITY RESIDENTIAL (R-3)

The City Council of the City of Monterey Park does ordain as follows:

SECTION 1: The City Council finds and declares that:

A. On July 7, 2021, the City Council approved various entitlements to facilitate the development of a 16- unit gated residential community (“Project”) at 1688 West Garvey Avenue (“Property”).

B. The entitlements included (1) certification of a Final Environmental Impact Report (SCH No. 2020070419) for the P roject; (2) approval of a vesting tentative map (VTM No. 21- 01) to subdivide the P roperty into 18 lots; (3) adoption of an ordinance (Ordinance No. 2210) approving a zone change (ZC No. 21-01) to change the zoning designation of the Property from High- Density Residential (R -3) to the 1688 West Garvey Avenue Specific Plan (“Goodviews Specific Plan”) ; and an ordinance (Ordinance No. 2211) approving Development Agreement No. 21- 01 (DA No. 21- 01 (“Development Agreement”)) between the City of Monterey Park (“City”) and Center Int’l Investments, Inc. (“ CII”), outlining terms and conditions for the Project.

C. Prior to Project approval, on April 25, 2017, the parties executed a Settlement Agreement and Mutual Release (“Settlement Agreement”) resolving a civil nuisance abatement action captioned The People of the State of California, ex rel., Mark D. Hensley, City Attorney for the City of Monterey Park v. Center Int’l Investments, Inc., et al. (LASC Case No.

BC605788), filed December 31, 2015. The Settlement Agreement, as subsequently amended, obligated CII to construct and maintain erosion control measures and stabilize the Property, and further provided that the City, on behalf of the People, could enter the P roperty to remediate nuisance conditions upon CII’s failure to timely perform, at CII’s sole cost.

D. Following Project approval, CII did not begin the required hillside stabilization work. The City Manager served a Notice of Breach on August 25, 2021, followed by a Notice of Default on October 13, 2021, outlining failures to remediate a public nuisance and to defend and indemnify the City in third‑party litigation (Save Our Slopes v. City of Monterey Park). CII also failed to comply with Section 19 of the Development Agreement, which required it to defend and indemnify the City against legal challenges related to the Project.

Ordinance No.

E. Despite repeated tenders of defense from July through September 2021, CII refused to participate. The City Council initiated legislative subpoena proceedings in May 2022 to gather facts related to CII’s nonperformance and potential termination of the Development Agreement.

F. Separately, due to an imminent threat to public health and safety, the City declared an emergency in June 2022 and began direct abatement work under the Goodviews Abatement Project. The City incurred approximately $16 million in costs, secured through nuisance abatement liens. CII has not paid any portion of this amount, which continues to accrue interest at 10 percent annually.

G. Under the amended Settlement Agreement, CII pledged commercial property on Lee Avenue as security for its obligations. After CII failed to reimburse City abatement costs, the City initiated a non‑judicial foreclosure.

The property did not sell at auction on April 2, 2025, resulting in automatic transfer of title to the City. The City Council accepted title on April 16, 2025, as partial satisfaction of CII’s outstanding debt.

H. On May 6, 2026, the City Council held an annual review of the Development Agreement and found that CII failed to demonstrate good- faith compliance with the terms and conditions of the Development Agreement. The City Council directed staff to initiate proceedings to rescind and terminate the Development Agreement in accordance with Government Code Section 65868 and Section 12 of the Development Agreement. In addition, the City Council directed staff to initiate proceedings to re peal the Goodviews Specific Plan and restore the prior High- Density Residential (R- 3) zoning designation for the Property.

SECTION 2: Findings for Restoring the Zoning Designation of the Property . The City Council finds as follows:

A. On July 7, 2021, the City Council adopted Ordinance No. 2210 approving ZC No. 21-01 to change the zoning designation of the Property from High- Density Residential (R-3) to the Goodviews Specific Plan.

B. On May 6, 2026, the City Council directed staff to initiate proceedings to repeal the Goodviews Specific Plan approval associated with the Project and restore the zoning designation of the Pro perty back to High -Density Residential (R-3).

C. Restoring the zoning designation of the P roperty to High -Density Residential (R-3) would allow a higher density development that would also broaden the potential buyer pool and maximize the sale price as recommended by the study prepared by Kidder Mathews.