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First Amendment to Development Agreement

Orange City Council
June 25, 2024

Document
First Amendment to Development Agreement
Meeting
June 25, 2024
Body
Orange City Council
Original file
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Text extracted from the city's file for reading and search. Open the original on cityoforange.legistar1.com. That file is the official record.

EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code §§ 6103 and 27383

Recording requested by and when recorded return to:

City Clerk
City of Orange
300 E. Chapman Avenue
Orange, California 92866
(SPACE ABOVE FOR RECORDER’S USE)

FIRST AMENDMENT TO

DEVELOPMENT AGREEMENT

Dated as of ___________________, 2024

By and Between

City of Orange,
a municipal corporation

and

Chapman Orange Holdings,
a California Limited Liability Company

1 FIRST AMENDMENT
TO

DEVELOPMENT AGREEMENT

THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the “First Amendment”) is entered into as of ______________________, 2024 (“Agreement Date”), by and between Chapman Orange Holdings, LLC (“OWNER”), and the CITY OF ORANGE, a municipal corporation, organized and existing under the laws of the State of California (“CITY”), pursuant to the authority of California Government Code Sections 65864 through 65869.5 (“Development Agreement Legislation”) and California Constitution Article XI, Section 7 as implemented through Orange Municipal Code Chapter 17.44.

RECITALS

This First Amendment is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the CITY and OWNER:

A. CITY and DCSG THREE THOUSAND WEST, LLC entered into a Development Agreement effective July 13, 2021 (the “Agreement”).

B. Since July 13, 2021 the rights under this Agreement have transferred to Chapman Orange Holdings, LLC.

C. The Agreement is set to expire on July 13, 2024.

D. CITY and OWNER wish to amend the Agreement to extend the Development Agreement and Planning Entitlements and to add additional public benefits.

E. Pursuant to Government Code section 65867.5 and Orange Municipal Code section

17.44.100, the City Council finds that: (i) this Amendment and any Future Approvals of the Project is consistent with the objectives, policies, general land uses, and programs sp ecified in the City’s General Plan and any applicable specific plan or redevelopment plans; (ii) this Amendment is compatible with the uses authorized in the district or planning area in which the real property will be located; (iii) this Amendment is i n conformity with the public necessity, public convenience, general welfare, and good land use practices; (iv) this Amendment is in the best interest of and not in detriment to the public health, safety and general welfare of the residents in the City and the surrounding region; (v) this Amendment will not adversely affect the orderly development of property in the City; and (vi) this Amendment is being entered into pursuant to and in compliance with the requirements of Government Code section 65867.

NOW THEREFORE, the Parties agree as follows:

1. The entire Agreement is changed to reflect the new OWNER name where applicable. Within the framework of the existing entitlements, Owner may revise the total hotel

2 guest rooms for the Project and determine whether retail facilities may be potentially included in the Project. Owner may eliminate or reduce the retail facilities during the Project’s design process.

The current projected hotel guest room count for the Project is approximately 240 rooms, and Owner may further revise the room count during the Project’s design process.

2. Section 6.2.1 is hereby deleted in its entirety.

3. Section 2 of the Agreement is amended to extend the term for two and a half (2.5) years. The Agreement will expire December 31, 2026.

4. Section 6.3 is deleted in its entirety and replaced by:

“Public Parking . CITY and OWNER will enter into a non-exclusive license with the following provisions:

1. OWNER agrees to provide 6 parking spaces for public use for patrons of the park to be constructed adjacent to the hotel. One parking space must be ADA accessible.

2. The parking spaces will be available to park patrons from 9:00 a.m. to 6 p.m. and will be complimentary for the first two hours of use.

3. OWNER will retain the right to enforce reasonable measures to ensure the safety and security of hotel patrons and property, including installation of parking gates.

4. CITY to provide evidence of insurance and agree to defend and indemnify OWNER (and its successors and assigns) for liability, damages, and claims arising from the agreement.

5. This First Amendment amends, as set forth herein, the Agreement and, except as specifically amended hereby, the Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Agreement, the terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.

6. This First Amendment shall become operative upon the date the ordinance approving this First Amendment becomes effective.

[Remainder of page intentionally left blank; signatures on next page]

3 “CITY”

CITY OF ORANGE, a municipal corporation

By:

Thomas C. Kisela, City Manager

ATTEST:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mike Vigliotta, City Attorney

“OWNER”,

Chapman Orange Holdings, LLC
a California limited liability company

By:

Print name:

Title:

√

ACKNOWLEDGMENT

State of California
County of Orange
On ______________________ before me, , a Notary Public, personally appeared
, who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
(Seal)

ACKNOWLEDGMENT

State of California
County of Orange
On ______________________ before me, , a Notary Public, personally appeared
, who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
(Seal)

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