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HomeMy WebLinkAbout17 Res 2021-28 - Chandi Project - TPM 38023CITY COUNCIL STAFF REPORT CITY OF PALM DESERT DEPARTMENTS OF DEVELOPMENT SERVICES & ECONOMIC DEVELOPMENT MEETING DATE: May 27, 2021 PREPARED BY: Kevin Swartz, Associate Planner Wayne Olson, Senior Management Analyst REQUEST: Consideration to approve a Precise Plan (PP), Conditional Use Permit (CUP), Tentative Parcel Map (TPM) 38023, and a Disposition and Development Agreement (DDA), with Chandi Group USA to develop a three-story mixed-use building on the City-owned property located at the southeast corner of San Pablo Avenue and Fred Waring Drive; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Recommendation Waive further reading and adopt the following: 1. City Council Resolution No. 2021-28, approving Case Nos. PP/CUP 20-0003 and TPM 38023 to construct a three-story mixed-use building, subject to the conditions of approval; and adopt a Notice of Exemption. By Minute Motion: 2. Approve the attached DDA substantially to form with Chandi Enterprises, LLC and authorize the Mayor to execute the DDA for disposition of the above-referenced site for $940,000, the appraised fair market value. 3. Authorize the City Manager and City Attorney to make conforming and clarifying changes to the DDA as needed to take such further actions to implement the DDA. Planning Commission The Planning Commission (PC) reviewed the proposed project at their meeting of December 15, 2020, and voted 5-0 in recommending approval of the project to the City Council. The PC added a condition of approval that the applicant shall revise the landscape plan to include the following: • Additional pedestrian-friendly plants on all sides of the property. • Additional landscape screening to the southeast portion of the lot to break up the massing of the building. • The use of non-deciduous landscaping. May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 2 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx Commissioner Gregory stated that he was in support of the mixed-use project, but believed that additional landscaping was warranted, especially pedestrian-friendly landscaping, along San Pablo Avenue, Santa Rosa Way, and Fred Waring Drive to achieve a better fit into the urban landscape. Commissioner Gregory also stated that additional landscaping (hedging) was needed to the southeast corner for screening purposes to the adjacent residential uses. Chair Holt stated that she was excited to see the applicant constructing a mixed-use building and carrying out the vision of the General Plan and Downtown Code. Commissioners DeLuna and Greenwood echoed Chair Holt’s statement. Overall, the Commissioners were very supportive of the project/land use, building height, and architecture. Architectural Review Commission Action The Architectural Review Commission (ARC) held three separate meetings on July 14, September 22, and November 10, 2020, to review the proposed project. On November 10, 2020, the ARC granted preliminary approval of the project architecture and landscape plan with a 4-0 vote with Commissioners Levine, McIntosh, and Schmid absent. The ARC supported the land use, architectural style, and building massing. The Commission stated that the design and materials were well thought out and requested that the applicant ensure the construction drawings match the proposed elevations. The Commission recommended a condition that the parapets on taller forms are returned back far enough to create a well- proportioned three-dimensional form, and that the Commission review the construction drawings. Strategic Plan The project accomplishes the following priorities outlined in the Strategic Plan: Economic Development Priority 1 – Expand job and business creation opportunities. Land Use, Housing & Open Space Priority 4: “Create a mixed-use city core integrating shopping, dining, lodging, and housing.” Priority 5 – “Utilize progressive land use policies and standards to support ongoing and future needs.” Tourism and Marketing Priority 1: “Improve access to Palm Desert and its attractions to enhance the ease of lifestyle.” Transportation Priority 1: “Create walkable neighborhoods and areas within Palm Desert that would include residential, retail, services and employment centers, and parks, recreation, and open space to reduce the use of low occupancy vehicles.” May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 3 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx Executive Summary Approval of staff’s recommendation will result in authorization for the Mayor to execute the DDA for disposition of the 1.54-acre site for $940,000, the appraised fair market value; and, to allow the City Manager and City Attorney to make minor modifications if required prior to execution. The applicant is proposing a TPM to merge all parcels into one, and to construct a three-story mixed-use building consisting of approximately 16,500 square feet of commercial space on the ground floor, and 60 total residential apartment units (one to three bedrooms) on the second and third floors. The property is zoned Downtown Edge (DE), which allows for mixed-use developments subject to a PP and CUP. The DE zone allows for a maximum building height of three stories at 45 feet, with up to 12 additional feet of height for architectural projections. The project as designed complies with the development standards, including complying with the maximum building height and parking requirements. Additionally, the project complies with the City’s Vision of the San Pablo Avenue corridor, which recently completed Phase One roadway improvements. Background Analysis A. Property Description: The project is located on the southeast corner of San Pablo Avenue and Fred Waring Drive and abuts Santa Rosa Way to the south. The project area is undeveloped, flat, and consists of five parcels (APNs: 627-101-002, 627-101-017, 627-101-033, 627-101-061, 627-101-062) totaling 1.54 acres. The City’s current Housing Element includes this property in its’ land inventory to ensure that there are sufficient lands available to accommodate its Regional Housings Needs Allocation (RHNA). As listed in the City’s Housing Element this site should develop with a minimum of 22 dwelling units. In November 2017, the City Council adopted an update to the City’s General Plan to guide the vision and policymaking decisions for the next few decades. As part of that update, the City Council adopted the One Eleven Development Code and subsequently, in June 2018, a comprehensive Zoning Ordinance and Zoning Map to be consistent with the land uses identified in the General Plan. As part of these actions, these five parcels were rezoned to Downtown Edge. In late 2018, the City Council authorized staff to negotiate with Chandi Group USA for a mixed-use redevelopment of the site. The DDA is with Chandi Enterprises, LLC, (the “Developer”), a subsidiary of Chandi Group USA. On February 28, 2019, in Closed Session, the Council authorized staff to enter into an Exclusive Negotiating Agreement (ENA) with the Developer (No. C38310, executed March 14, 2019). An amended and restated ENA was executed on December 25, 2019. May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 4 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx Since that time, several extensions to the ENA have been authorized in order to accommodate review of project materials and to accommodate thorough review of the site planning and building design by various committees and commissions including the Economic Development Subcommittee (Jonathan and Kelly) and the Architectural Review Commission. The most recent extension of the ENA was authorized by the City Council on April 8, 2021 which extended the ENA through June 11, 2021 in order to accommodate the finalization of the draft DDA attached here for your review. If approved, the executed DDA would become the governing document for disposition. However, in the event the DDA is not approved today, subsequent extensions may be needed which will require non-refundable deposits from the Developer. B. General Plan and Zoning: Zone: DE; Downtown Edge General Plan: D; Downtown C. Adjacent Zoning and Land Use: North: P; Public Institution/City Hall/Civic Center Community Park South: DE; Downtown Edge/Residential Uses East: OP; Office Professional/Apartments/Office Building West: DE; Downtown Edge/Church Project Description The applicant will own and manage the entire project and lease the retail and residential units. A. Site Plan: The development of the project is on 1.54 acres of undeveloped land and is designed with two access driveways. • Santa Rosa Way – Full ingress and egress (right turn in/right turn out, and left turn in/left turn out). • Fred Waring Drive – Right turn in and right turn out. • San Pablo – No direct vehicle access There are approximately 16,500 square feet of commercial space on the ground floor. The applicant has not identified tenants at this time. The 60 total residential apartment units will be located on the second and third floors, with each floor having 30 units. The unit mix is between one and three bedrooms, and each unit will have a balcony. • One bedrooms – Five types that range in size from 711 to 738 square feet May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 5 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx • Two bedrooms – Six types that range in size from 1,047 to 1,149 square feet • Three bedrooms – One type that is 1,369 square feet The building also includes an elevator from the ground floor to the third floor, which is located near the southwest corner, and a trash room located at the east end of the building. Ground Floor The ground floor is designed with two commercial buildings. One building will front Fred Waring Drive and the other will front San Pablo Avenue. Between the two buildings at the corner of San Pablo Avenue and Fred Waring Drive is an open plaza featuring an outdoor seating area, a grand staircase to the second floor, which leads to restaurant patios, and an art sculpture. At the southwest corner of the building is another smaller plaza area that could be utilized as an outdoor patio for a restaurant. Directly behind the buildings is a surface parking area consisting of 78 parking spaces (10 are compact for golf carts and motorcycles). Landscaping will also be provided throughout the site and perimeter. Parking Garage/Above Grade Deck Between the commercial buildings and the residential apartments, there will be a parking garage consisting of 65 parking spaces (nine are electric charging stations). Access to the parking garage is off Santa Rosa Way via a ramp from the ground floor. There are no ground-floor apartments or commercial spaces fronting Santa Rosa Way. Second Floor The second floor is designed with 30 apartment units directly over the commercial spaces and the parking garage. The unit count is mixed and the units are spread throughout. • 17 one-bedroom units • 12 two-bedroom units • 1 three-bedroom unit The second floor also includes amenities featuring a small swimming pool, fire pits, cabanas, a decking area, landscaping, and a fitness room. Third Floor The third floor is designed with 30 apartment units directly over the second-floor units. The unit count is mixed, and the units are spread throughout. • 17 one-bedroom units • 12 two-bedroom units • 1 three-bedroom unit The third floor also offers decking and a clubroom. May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 6 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx B. Architecture: The One Eleven Development Code provides building articulation guidelines for mixed-use buildings within the “Downtown” zones. The building design is considered a block-form building, which is one to five stories tall. These types of buildings are built at or near the street right-of-way line with the edges of which strongly define the urban space along the street. The building features a contemporary design characterized by flat parapet rooflines, angular shapes, large eaves, architectural pop-outs, thick architectural elements, desert appropriate colors, stone veneer finishes, and the use of metal louvers. The proposed building is three stories in height with varying roof heights between 22, 33, and 46 feet, with an overall height of 50 feet. To moderate the scale of the building, the design utilizes architectural features with vertical elements and second- and third-floor balconies that cantilever out. The ground floor retail spaces will have storefront windows to enable customers to see inside the windows. The project also includes an open plaza area at the corner with curvature to alleviate building massing and to create outdoor open space for restaurant patios. C. Landscape: The project also includes small landscape pocket areas within the balconies that will provide a nice visual color, and the applicant will maintain the landscaping. The landscaping design consists of a natural desert theme with native species requiring minimal water usage. Ground Floor The ground floor fronting San Pablo Avenue will be lined with five 18-foot California Fan Palms. The corner will be full of five-gallon shrubs and ground cover consisting of Superb Penstemons, Del Rios, Firecrackers Penstemon, and Estrellas. The area fronting Fred Waring Drive will consist of five-gallon Vines (Pink Pearls and Boxwood Beautys) due to the narrow section of the building to the sidewalk. The section fronting Santa Rosa Way will be lined with 24-inch box Natchez trees, which will help screen the parking garage. Parking Garage/Above Grade Deck The area at the corner of the property (Café Deck) will consist of 15-gallon accents: Cape Aloes, San Pedro Cactus, and Mexican Feather Grass. At the south end of the property for the other deck will consist of 5-gallon plants/vines (Elephants Foo). Second Floor The amenities featuring a small swimming pool, fire pits, cabanas, and a decking area will feature 12-foot Washingtonia Filabustas, 24-inch box Evergreen Pear trees, and 24-inch box Pygmy date Palm trees. There is also a mixture of five-gallon shrubs, vines, and accents consisting of Mexican Feather Grass, Lydia, Sky Flower, Lantanas, Boxwood Beauty, and Katie. May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 7 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx Analysis The proposed project includes a PP to approve the three-story mixed-use building, a CUP for the 60 residential apartment units and restaurant uses, a DDA between the City and the applicant in order to sell the parcels, and a TPM to merge the five parcels into one. The project as designed complies with all development standards, including setbacks, density, parking, lot coverage, land use compatibility, and building height (three stories). The project also complies with the design guidelines for creating an urban development within the DE zone. The architectural design meets the intent of the One Eleven Development Code with angular shapes, large architectural pop-outs, and recessed windows to provide interest and movement throughout the building on all four sides for a nice-looking building. All equipment will be mounted on the roof and will be completely screened by a mechanical enclosure. The preliminary landscape plan provided by the applicant features a plant mix consistent with the City's Desert Flora Palette Guide. Overall, the landscape design provides a good balance with the use of the building architecture, while maintaining low water usage. A. Land Use Compatibility: The land use designation is D within the General Plan, which allows a density of up to 40 units per acre. The proposed project of 60 market-rate apartment units on 1.54 acres is consistent with the density within the General Plan. The purpose of the D designation is to provide high-intensity mixed-use development anchored by civic, cultural, entertainment, retail, and dining activity that features a variety of building sizes and housing choices. Ground floor uses include retail, restaurant, service, and office uses, while upper floors accommodate residential and office uses. Buildings are encouraged near or at the sidewalk to shape the commercial streetscapes, support outdoor dining, and for easy view of storefronts. Buildings are typically mixed-use up to three stories with taller buildings up to five stories focused at key intersections and/or public open space. The land use designation is zoned DE, which serves as a buffer between Downtown and the residential neighborhoods to the north and south. It introduces urban, multistory buildings up to three stories tall. The DE designation allows for multi-family land uses, subject to a CUP. The DE zone encourages flexibility in development, creative and imaginative design, and the development involving a mixture of residential densities and uses. It is also intended to provide for the integration of urban designs by encouraging front-facing buildings closer to the street that creates a building line on the ground floor to create a more walkable neighborhood. The designs also encourage steps and the use of balconies. The proposed mixed-use development with commercial uses on the ground floor and a mixture of residential apartment units (one to three bedrooms) meets the intent of the General Plan and Zoning land use designations. May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 8 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx The project’s architectural elevations are cohesive and incorporate elements to articulate the buildings and provide for an attractive design, with the use of street fronting retail, vertical articulation, the use of balconies, and architectural projections. The project is also consistent with the City’s overall vision for San Pablo Avenue, and with the City’s Strategic Plan. • Land Use - Priority 4: “Create a mixed-use city core integrating shopping, dining, lodging, and housing.” • Tourism and Marketing – Priority 1: “Improve access to Palm Desert and its attractions to enhance the ease of lifestyle.” • Transportation – Priority 1: “Create walkable neighborhoods and areas within Palm Desert that would include residential, retail, services and employment centers, and parks, recreation, and open space to reduce the use of low occupancy vehicles.” Land uses within the surrounding area are compatible with the proposed use, and maintain the same zoning and General Plan designations. Furthermore, the project does not physically divide an existing community and does not conflict with any applicable land use plan, policy, or regulation outlined in the General Plan. B. Disposition and Development Agreement: The DDA provides terms and price ($940,000) along with several other stipulations and requirements for both the Developer and the City to perform prior to closing. The Developer will provide $50,000 non-refundable monies to the City, which will be applied to the cost of the land in the event of a closing (See Section 1.5 in the attached DDA). These monies will be transferred from the ENA deposit to the DDA deposit. Closing is to be scheduled not later than eight months from the date of the final execution of the DDA. The DDA requires that the closing date occur only after the Developer has provided satisfactory evidence that it can proceed with a project including (but not limited to) evidence of project financing, all entitlements, and approvals from various elected bodies and agencies, as well as construction documents and approved permits (i.e., building permit approval-ready). In other words, the project must be “shovel-ready” prior to a land disposition closing. A one-time, six-month extension of the closing date is permitted, subject to City Council approval, and only if the Developer provides evidence of significant progress toward the closing requirements and deposits $100,000 non-refundable monies, which will be applied toward the price of the land. Therefore, the earliest closing date is eight months from the date of execution of the DDA, with the latest closing date 14 months from execution. Upon direction from the Council, the DDA also includes a City Option Agreement in the Deed that allows the City the right to repurchase the property, plus improvements if required, based on an agreed-upon price evaluated by professional appraisers within a certain timeframe. The triggers for the right to repurchase (subject to any extensions provided for within the DDA) include: May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 9 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx • If the Developer has not obtained required building permits within four months of the Close of Escrow. • If the Developer has not commenced construction within four months from the Close of Escrow. • If the project is constructed in a manner inconsistent with the Scope of Development. Other default provisions are included that may contractually lengthen these timeframes slightly; however, the Option Agreement terminates only after a Certificate of Occupancy is issued for the entire project (see Section 6, and form of Deed of Sale in attached DDA). The term of the DDA is through the Certificate of Occupancy of the project. The Schedule of Performance lists milestones between now and closing of escrow (see Attachment to the DDA “Schedule of Performance”). If the project keeps to this schedule, the closing could occur by late fourth quarter of the calendar year (2Q FY2021), and construction would follow 30 days, but not later than 90 days, from the date of closing escrow. The DDA includes a Right of Entry, which allows the Developer to enter the site from time to time prior to closing for activities related to the future construction and development of the site. The DDA also includes a Cost Reimbursement Agreement for up to $50,000 of certain eligible costs to be reimbursed (i.e., attorney fees, consultant fees, etc.). This is a typical cost reimbursement agreement that the City has used in previous DDAs. C. Tentative Parcel Map: The applicant submitted a TPM to merge the five parcels and establish one 1.54-acre parcel. The applicant will own the entire site and buildings, and lease out the commercial and residential apartments. D. Building Height: The DE zone allows up to three floors/45 feet for flat roofs and allows for an additional 12 feet for architectural projections such as towers. The proposed building is three stories in height with varying roof heights between 22, 33, and 46 feet, with an overall height of 50 feet. The additional five feet consist of tower elements to alleviate the massing, and screen walls to hide the rooftop equipment. The propped building is considered a block-form building, which generally extends the full width of the lot and has the potential to become significantly out of scale with the surrounding area. To modulate the apparent size and scale of the building, the design has architectural elements from the plane of the façade, and the building architecture provides recesses and movement to break up the massing. The building architecture also provides articulation techniques so the building is not out of character. Staff supports the proposed height and site location, as they will not adversely impact any viewsheds or diminish property values. E. Parking: The One Eleven Development Code Section 25.18.050 Parking Requirements states May 27, 2021 – City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 10 of 11 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\17 Res 2021-28 - Chandi Project\01 Chandi CC Staff Report 5 27 21.docx retail uses requires three parking spaces per 1,000 square feet. The total retail use is 16,500 square feet requiring 50 parking spaces. Section 25.18.050 also states that residential uses (studio and one-bedroom) require 1.25/per unit and 2/per unit for two bedrooms or more. The project has 34 one-bedroom units requiring 43 parking spaces, and 26 two-bedroom or more units requiring 52 parking spaces. The project requires a total of 145 parking spaces, and the project is providing 147 parking spaces throughout the project. There is also street parking available for retail uses along San Pablo Avenue and Santa Rosa Way. Based on the amount of parking on-site, City staff believes that there is adequate parking available to accommodate the proposed project. F. Housing: As stated in the Background Analysis, the City Council rezoned these parcels in 2012 to comply with the Housing Element. On February 27, 2020, the Council adopted Ordinance No. 1353 applying the Housing Overlay District (HOD) to parcels owned by the Housing Authority, and properties identified in the City’s Housing Element. The HOD does not require property owners or residential housing developers to construct affordable housing. Rather, the HOD intends to encourage voluntary participation by developers to create new affordable housing units. The applicant has stated that the residential apartment units will be market rate and no affordable housing will be provided. Staff supports this since this type of development of smaller one-bedroom to three-bedroom units will be marketed towards the College of the Desert students, and geared towards the younger workforce and families. Fiscal Impact Proceeds from the disposition of the land are $940,000 less 50% of the closing costs and other typically applied owner’s costs. Proceeds can be expected between eight months and up to 14 months from the date of execution of the DDA. An updated appraisal completed in October of 2020 established the Fair Market Value of the Site at $940,000, a 14.6% increase from a previous appraisal of $820,000 conducted in 2018. If the project progresses as planned, sale proceeds to the City are slated for late 2Q of FY21/22, but could be as late as 4Q FY 21/22 if a closing extension is negotiated. Findings of Approval Findings can be made in support of the project and in accordance with the City’s Municipal Code. Findings in support of this project are contained in City Council Resolution No. 2021-28, attached to this staff report. Environmental Review May 27, 2021 — City Council Staff Report Case Nos. PP/CUP 20-0003, DDA, and TPM 38023 The Chandi Plaza Page 11 of 11 For CEQA, the Deputy Director of Development Services has determined that the proposed project will not have a significant negative impact on the environment, and is categorically exempt, under Class 32: Infill Development Projects, of the CEQA. Staff has prepared a Notice of Exemption, and no further review is necessary. LEGAL REVIEW N/A DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER G�'uG eeJa �eu.+.r��'�/, 'T'Y/oou Robert W. Janet Moore Hargreaves Eric Ceja, Deputy Dir. of Director of City Attorney Development Services Finance City Manager, L Todd Hileman: L. Todd Hil,ew�Gtv�. APPLICANT: Chandi Group USA 42270 Spectrum Street, Suite A Indio, CA 92203 ATTACHMENTS: 1. Draft City Council Resolution No. 2021-28 2. Draft DDA 3. Planning Commission Minutes 4. Legal Notice 5. Notice of Exemption 6. Exhibits Provided by the Applicant 11�idy firesffne Andy Firestine Assistant City Manaqer CTTY COUNCILA�2'fION APPROVED ✓ nrivrr�:n RC EIVEN O II�F m�lFi�G k'oS . ,'1D�21- � hii�:F,TING DAT 5 � � ��� AYGS:��'/Jik,� Yhl�Yb/Iy�F.�lraird�,f�dii�/)ill��,� /�i/ rors: n/im� AI3SFNT: � �� ABSTAIN• /1�� VGRI['IGll13Y• /��.t Original on File with City Clerk's Oflice \lsrveveryone�everyone\Scarc Repons - ShareO 2\Staff RepoRs o5-2]-2o21W - Clty CIeM � OS2��2o21\P Res 2o2L28 - Chanai Ro�xh01 Chantli CC Safl Repon 5 P 21 docx [This page has intentionally been left blank.] CITY COUNCIL RESOLUTION NO. 2021-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, CONSIDERING APPROVAL OF A PRECISE PLAN, CONDITIONAL USE PERMIT, AND TENTATIVE PARCEL MAP 38023 TO CONSTRUCT A THREE-STORY MIXED-USE BUILDING CONSISTING OF RETAIL AND OFFICE USES ON THE GROUND FLOOR, AND 60 TOTAL RESIDENTIAL APARTMENT UNITS ON THE SECOND AND THIRD FLOORS LOCATED ON THE SOUTHEAST CORNER OF SAN PABLO AVENUE AND FRED WARING DRIVE; AND ADOPTION OF A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) CASE NOS: PP/CUP 20-0003 and TPM 38023 WHEREAS, the City Council of the City of Palm Desert, California, did on the 27th day of May 2021, hold a duly noticed public hearing to consider the request by Chandi Group USA, for approval of the above-noted project request; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 15th day of December 2020, hold a duly noticed public hearing to consider the request by Chandi Group USA, for a recommendation to the City Council for approval of the above-noted project request; and WHEREAS, according to the CEQA, the City must determine whether a proposed activity is a project subject to CEQA. If the project is subject to CEQA, staff must conduct a preliminary assessment of the project to determine whether the project is exempt from CEQA review. If a project is not exempt, further environmental review is necessary. The application has complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act,” Resolution No. 2019-41, and the Deputy Director of Development Services has determined that the proposed project is an Article 19 Class 32: Infill Development Projects Categorical Exemption for purposes of CEQA and no further review is necessary; and WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the City Council did find the following facts and reasons to exist to justify approval of said request: 1. The proposed project is located in the Downtown Edge (DE) zoning district, which allows “mixed-use developments” as permitted uses, subject to the approval of a Precise Plan application (PP) and Conditional Use Permit (CUP). 2. The proposed project conforms to the DE zone and One Eleven Development Code design guidelines since the project provides a mixture of residential densities and uses. It is also intended to provide for the integration of urban designs by encouraging front-facing buildings closer to the street that creates a building line on the ground floor to create a more walkable neighborhood. CITY COUNCIL RESOLUTION NO. 2021-28 2 3. The proposed project conforms to the Downtown (D) designation within the General Plan by creating a walkable neighborhood building. The purpose of the D designation is to provide high-intensity mixed-use development anchored by civic, cultural, entertainment, retail, and dining activity that features a variety of building sizes and housing choices. Ground floor uses include retail, restaurant, service, and office uses, while upper floors accommodate residential and office uses. 4. The project complies with all development standards including setbacks, building height, density parking, lot coverage, and land use compatibility. 5. The building as designed offers an upscale architectural design. 6. One of the City’s overall goals identified in the Strategic Plan is to focus on creating a city center/downtown that provides high-intensity mixed-use developments anchored by civic, cultural, entertainment, retail, and dining activity along walkable streetscapes. FINDINGS FOR APPROVAL: 1. That the density of the proposed subdivision is consistent with applicable general and specific plans. The land use designation is D within the General Plan, which allows a density of up to 40 units per acre. The proposed project of 60 market-rate apartment units on 1.54 acres is consistent with the density within the General Plan. The purpose of the D designation is to provide high-intensity mixed-use development anchored by civic, cultural, entertainment, retail, and dining activity that features a variety of building sizes and housing choices. Ground floor uses include retail, restaurant, service, and office uses, while upper floors accommodate residential and office uses. Buildings are encouraged near or at the sidewalk to shape the commercial streetscapes, support outdoor dining, and for easy view of storefronts. Buildings are typically mixed-use up to three stories with taller buildings up to five stories focused at key intersections and/or public open space. The proposed mixed-use development with commercial uses on the ground floor and a mixture of residential apartment units (one to three bedrooms) meets the intent of the General Plan designations. The project is also consistent with the City’s overall vision for San Pablo Avenue, and with the City’s Strategic Plan. • Land Use - Priority 4: “Create a mixed-use city core integrating shopping, dining, lodging, and housing.” • Tourism and Marketing – Priority 1: “Improve access to Palm Desert and its attractions to enhance the ease of lifestyle.” • Transportation – Priority 1: “Create walkable neighborhoods and areas within Palm Desert that would include residential, retail, services and employment centers, and parks, recreation, and open space to reduce the CITY COUNCIL RESOLUTION NO. 2021-28 3 use of low occupancy vehicles.” Land uses within the surrounding area are compatible with the proposed use, and maintain the same General Plan designations. Furthermore, the project does not physically divide an existing community and does not conflict with any applicable land use plan, policy, or regulation outlined in the General Plan. 2. That the design or improvement of the proposed subdivision is consistent with applicable general and specific plans. The Land Development (Planning/Engineering) Division, Economic Development Department, Fire Department, and Public Works Department have reviewed the design and improvements of the proposed subdivision for consistency with the General Plan and emergency services. The street and utility improvements, circulation patterns, and drainage improvements meet all requirements of the General Plan. All existing perimeter streets are in conformance with the General Plan. All external project streets that serve the project conform to City standards. There are no specific plans for the property. 3. That the site is physically suitable for the type of development. The 1.54 acres are suitable for the development proposed. No environmental or traffic concerns were identified that would indicate that development in this area would be unsuitable. In addition, existing commercial and residential developments have successfully constructed similar types of development in the immediate vicinity. No obstacles to the development of surrounding subdivisions were experienced and, due to the proximity and similarity of the proposed development, it is reasonable to conclude that the site is physically suitable for it. The property is suitable for the proposed development as conditioned. 4. That the site is physically suitable for the proposed density of development. As proposed, the site layout and density are consistent with the General Plan. The property allows for 40 DU/acre, and the project density of 60 units on 1.54 acres complies. The project density is necessary to carry out the vision of creating an urban development within the DE zone. 5. That the design of the subdivision and the proposed improvements are not likely to cause substantial environmental damage or substantially and unavoidably injury to fish or wildlife or their habitat. For purposes of CEQA, the project will not have a significant negative impact on the environment, and is categorically exempt, under Class 32: Infill Development Projects. The design of the project will not cause substantial environmental damage or injure fish or wildlife or their habitat since the surrounding area has been developed. In addition, the project will pay into the Coachella Valley Multi-Species Habitat Conservation fund for the development of raw land. CITY COUNCIL RESOLUTION NO. 2021-28 4 6. That the design of the subdivision or the type of improvements is not likely to cause serious public health problems. The design and layout of the mixed-use development complies with all grading requirements and the project will be developed in accordance with the Uniform California Building Code. Pedestrian access is provided to adjoining land uses along San Pablo Avenue where other residents would be able to walk to the retail uses, which decreases the need for vehicular traffic between adjoining properties. 7. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. The proposed project will construct an underground retention drainage. The parcel map identifies the use of this area and will record an easement for drainage purposes. In addition, the applicant is responsible for the maintenance of the retention basin outlined in the conditions of approval. Surrounding perimeter City streets are built out to the General Plan designation. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That the City Council approval of the Precise Plan, Conditional Use Permit, and Tentative Parcel Map 38023 as proposed. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 27th day of May 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN KELLY, MAYOR ATTEST: M. GLORIA SANCHEZ, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA CITY COUNCIL RESOLUTION NO. 2021-28 5 CONDITIONS OF APPROVAL CASE NOS: PP/CUP 20-0003 and TPM 38023 LAND DEVELOPMENT (PLANNING/ENGINNERING) DIVISION: 1. The development of the property shall conform substantially with exhibits on file with the Land Development Division, as modified by the following conditions. 2. The applicant shall record Parcel Map 38023 within two (2) years of project approval. 3. All construction documentation shall be coordinated for consistency, including, but not limited to, architectural, structural, mechanical, electrical, plumbing, landscape and irrigation, grading, and street improvement plans. All such plans shall be consistent with the approved entitlement plans on file with the Land Development Division. 4. Construction of said project shall commence as outlined with the Disposition and Development Agreement from the date of final approval unless an extension of time is granted; otherwise, said approval shall become null, void, and of no effect whatsoever. 5. The development of the property described herein shall be subject to the restrictions and limitations set forth herein which are in addition to the approved project and all Palm Desert Municipal ordinances and state and federal statutes now in force, or which hereafter may be in force. 6. Prior to issuance of a building permit for construction of any use or structure contemplated by this approval, the applicant shall first obtain permits and/or clearance from the following agencies: Building & Safety Division Public Works Department Fire Department Coachella Valley Water District (CVWD) The applicant shall present evidence of said permit or clearance from the above agencies to the Department of Building & Safety at the time of issuance of a building permit for the use contemplated herewith. 7. The Applicant shall agree to defend, indemnify, and hold harmless the City of Palm Desert or its agents, officers, and employees from any claim, action, or proceeding against the City of Palm Desert or its agents, officers or employees, to attack, set aside, void, or annul, any approval of the City of Palm Desert, whether by its City Council, Planning Commission, or other authorized board or officer of the City. 8. If the presence of cultural resources is identified in the cultural resources inventory, an approved Native Cultural Resource Monitor shall be on-site during ground-disturbing activities. 9. Should human remains be discovered during the construction of the proposed project, the project coordinator would be subject to either the State Law regarding the discovery and disturbance of human remains or the Tribal burial protocol. In either circumstance, all CITY COUNCIL RESOLUTION NO. 2021-28 6 destructive activity in the immediate vicinity shall halt, and the County Coroner shall be contacted pursuant to State Health and Safety Code 7050.5. If the remains are determined to be of Native American origin, the Native American Heritage Commission (NAHC) shall be contacted. The NAHC will make a determination of the Most Likely Descendant (MLD). The City and developer will work with the designated MLD to determine the final disposition of the remains. 10. All sidewalk plans shall be reviewed and approved by the Department of Public Works. 11. Developer shall enter into a recordable Disposition and Development Agreement to memorialize these, and other conditions stated within the Disposition and Development Agreement placed on the project. 12. The project shall have a density of 60 dwelling units on the 1.54 acres. 13. The project land uses shall conform to the DE zone. Restaurant uses are permitted throughout the mixed-use project as a part of the CUP approval. 14. Lighting plans shall be submitted in accordance with Palm Desert Municipal Code (PDMC) Section 24.16 for any landscape, architectural, street, or other lighting types within the project area. 15. The property shall be maintained in accordance with landscape maintenance requirements contained in the PDMC. 16. The applicant or any successor in interest shall comply with all applicable local, state, and federal laws and regulations. PLANNING COMMISSION: 17. The applicant shall revise the landscape plan to include pedestrian-friendly plants on all sides of the property, add additional landscape screening to the southeast portion of the lot, and consider using non-deciduous landscaping. The City’s Architectural Review Commission (ARC) shall review the landscape plan at the time that the ARC reviews the construction drawings. PUBLIC WORKS DEPARTMENT: Prior to recordation of the Parcel Map and any permits: 18. The parcel map shall be submitted to the City Engineer for review and approval. 19. Easements for drainage, pedestrian, and public utility purposes shall be provided as needed on the final parcel map. 20. Utilities shall be relocated and easements abandoned as needed so as not to conflict with the proposed infrastructure. 21. The applicant shall pay the appropriate signalization fee in accordance with City of Palm Desert Resolution Nos. 79-17 and 79-55 and drainage fee in accordance with Section 26.49 of the PDMC and Palm Desert Ordinance Number 653. CITY COUNCIL RESOLUTION NO. 2021-28 7 22. Park fees in accordance with PDMC Section 26.48.060 shall be paid prior to the recordation of the tract map. 23. The applicant shall submit Covenants, Conditions, & Restrictions (CC&Rs) concurrently with the final map for review and approval. Once approved by the City, the CC&Rs shall be recorded with the County Recorder’s Office. 24. Horizontal control requirements shall apply to this map, including state plane coordinates, which shall conform to City of Palm Desert specifications. Prior to the issuance of a grading permit: 25. The applicant shall submit a grading plan to the Public Works Department for review and approval. Any changes to the approved civil or landscape plans must be reviewed for approval prior to work commencing. 26. The applicant shall submit a PM10 application for approval. The applicant shall comply with all provisions of PDMC Section 24.12 regarding Fugitive Dust Control. 27. The applicant shall abide by all provisions of City of Palm Desert Ordinance 843, Section 24.20 Stormwater Management and Discharge Ordinance. 28. The applicant shall abide by PDMC Section 27.12.56, and retain stormwater on-site to the 100-year, 24-hour storm. 29. The applicant shall submit a final Water Quality Management Plan (WQMP) for review and approval. The WQMP shall identify the Best Management Practices (BMPs) that will be used on the site to control predictable pollutant runoff. Prior to the issuance of the grading permit, the Operation and Maintenance Section of the approved final WQMP shall be recorded with County’s Recorder Office and a conformed copy shall be provided to the Public Works Department. 30. Provide the City Engineer with evidence that a Notice of Intent (NOI) has been filed with the State Water Resources Control Board. Such evidence shall consist of a copy of the NOI stamped by the State Water Resources Control Board or the Regional Water Quality Control Board, or a letter from either agency stating that the NOI has been filed. 31. The applicant shall enter into an agreement and post security, in a form and amount acceptable to the City Engineer, guaranteeing the construction of all off-site improvements. Plans shall be submitted for review and approval prior to construction. Improvements shall include, but are not limited to: A. The installation of a driveway on Fred Waring Drive. B. The installation of a driveway on Santa Rosa Way. C. The modification of an existing curb ramp on the corner of San Pablo Drive and Santa Rosa Way. D. The installation of an ADA compliant sidewalk on Santa Rosa Way. E. The installation of a full-capture trash device in the catch basin on San Pablo Avenue. CITY COUNCIL RESOLUTION NO. 2021-28 8 BUILDING AND SAFETY DIVISION: 32. This project shall comply with the latest adopted edition of the following codes: A. 2019 California Building Code and its appendices and standards B. 2019 California Plumbing Code and its appendices and standards C. 2019 California Mechanical Code and its appendices and standards D. 2019 California Electrical Code E. 2019 California Energy Code F. 2019 California Green Building Standards Code G. 2019 California Administrative Code H. 2019 California Fire Code and its appendices and standards 33. Provide building height and area analysis to determine compliance with CBC Section 503. Justify any area increases to height and area as permitted per CBC Sections 504 and 506. 34. Provide a complete set of scaled or fully dimension elevations to determine the number of stories for the proposed project. CBC Section 503 (Definition of “Grade Plan” “Story” and “Story above grade plane”). 35. Provide an area analysis on the first sheet of the plans to justify the allowable floor areas for a mixed occupancy building. The sum of the ratios of the actual area for each occupancy divided by the allowable area for each occupancy must not exceed 1.00. For buildings with fire walls, use the floor area of each separate "building" to justify the area. CBC Section 508.4.2 and 706.1. 36. Submit an exit plan that labels and clearly shows compliance with all required egress features such as, but not limited to, common path of travel, the required number of exits and separation, occupant load, required width, continuity, travel distance, elevators, etc. CBC 1001.1. 37. An approved automatic fire sprinkler system shall be installed as required per the City of Palm Desert Code Adoption Ordinance 1351. 38. A disabled access overlay of the precise grading plan is required to be submitted to the Department of Building and Safety for plan review of the site accessibility requirements as per 2016 CBC Chapters 11A & B (as applicable) and Chapter 10. 39. All exits must provide an accessible path of travel to the public way. (CBC 1027.5 & 11B- 206). 40. Detectable warnings shall be provided where required per CBC 11B-705.1.2.5 and 11B- 705.1.2.2. The designer is also required to meet all ADA requirements. Where an ADA requirement is more restrictive than the State of California, the ADA requirement shall supersede the State requirement. 41. Provide an accessible path of travel to the trash enclosure. The trash enclosure is required to be accessible. Please obtain a detail from the Building and Safety Division. CITY COUNCIL RESOLUTION NO. 2021-28 9 42. Public pools and spas must be first approved by the Riverside County Department of Environmental Health and then submitted to the Building and Safety Division. Pools and Spas for public use are required to be accessible. 43. All contractors and subcontractors shall have a current City of Palm Desert Business License prior to permit issuance per Palm desert Municipal Code, Title 5. 44. All contractors and/or owner-builders must submit a valid Certificate of Worker’s Compensation Insurance coverage prior to the issuance of a building permit per California Labor Code, Section 3700. 45. Address numerals shall comply with Palm Desert Ordinance No. 1351 (Palm Desert Municipal Code 15.28. Compliance with Ordinance 1351 regarding street address location, dimension, a stroke of line, distance from the street, height from grade, height from street, etc. shall be shown on all architectural building elevations in detail. Any possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons that may render the building address unreadable shall be addressed during the plan review process. You may request a copy of Ordinance 1351 or Municipal Code Section 15.28 from the Department of Building and Safety counter staff. 46. Please contact Tameca Williams, Management Specialists II, at the Building and Safety Division (760-776-6420) regarding the addressing of all buildings and/or suites. FIRE DEPARTMENT: 47. Final fire and life safety conditions will be addressed when building plans are reviewed by the Fire Prevention Bureau. These conditions will be based on occupancy, use, the California Building Code (CBC), California Fire Code (CFC), and related codes, which are in force at the time of building plan submittal. 48. The proposed project may have a cumulative adverse impact on the Fire Department’s ability to provide an acceptable level of service. These impacts include an increasing number of emergency and public service calls due to the increased presence of structures, traffic, and population. The project proponents/developers will be expected to provide for a proportional mitigation to these impacts via capital improvements and/or impact fees. 49. Fire Department emergency vehicle apparatus access road location and design shall be in accordance with the current California Fire Code, PDMC, and Riverside County Fire Department Standards. Plans must be submitted to the Fire Department for review and approval prior to building permit issuance. 50. Fire Department water systems(s) for fire protection shall be in accordance with the current California Fire Code, City of Palm Desert, and Riverside County Fire Department Standards. Plans must be submitted to the Fire Department for review and approval prior to building permit issuance. END OF CONDITIONS OF APPROVAL [This page has intentionally been left blank.] Final Draft DISPOSITION AND DEVELOPMENT AGREEMENT by and among CITY OF PALM DESERT (“City”) and CHANDI ENTERPRISES LLC a California limited liability company (“Developer”) San Pablo/Fred Waring Mixed-Use Project TABLE OF CONTENTS 1. GENERAL PROVISIONS. 1.1 Purpose of this Agreement 1.2 Project Site 1.3 Project Existing Approvals 1.4 CEQA Compliance 2. IDENTITY OF PARTIES. 2.1 Developer 2.2 City 2.3 Notices 3. TERM. 3.1 Term 4. DESIGN AND DEVELOPMENT OF PROJECT. 4.1 Design and Development of the Project 4.2 City Infrastructure Improvements 4.3 Submission and Approval of Construction Documents and Building Permit and Grading Permit Applications 4.4 Agreement on Total Project Costs. 4.5 [Intentionally left blank] 4.6 [Intentionally left blank] 4.7 Insurance 4.8 Other provisions or requirements 4.9 Safety 4.10 Developer’s Indemnity Agreement/Hold Harmless 4.11 reserved 4.12 reserved 4.13 Prevailing Wages. The Developer acknowledges and agrees that: 4.14 Liens and Claims. 4.15 Compliance with Law; Enforceability by City 5. REQUIREMENTS OF PARTIES; CONDITIONS PRECEDENT TO CLOSE OF ESCROW. 5.1 Periodic Review; Meet and Confer 5.2 Conditions Precedent to Close of Escrow Benefiting the City 5.3 Conditions Precedent to Close of Escrow Benefiting Developer 5.4 Existing Approvals; Cooperation Between Parties 5.5 Physical Condition of the Project Site TABLE OF CONTENTS -3- 5.6 Hazardous Substances. 5.7 reserved 5.8 [No title] 5.9 Early Entry by Developer 6. SALE OF CITY PROPERTY; CLOSE OF ESCROW. 6.1 Sale of City Property 6.2 Execution and Delivery of Documents 6.3 Close of Escrow; Title Policies 6.4 Commencement of Construction 6.5 Costs of Escrow; Title Insurance 7. DEFAULTS; REMEDIES. 7.1 General Developer Default 7.2 Default by City 7.3 Force Majeure 7.4 Remedies Exclusive; No Money Damages 7.5 Dispute Resolution 8. EVENTS OF TERMINATION; RIGHTS AND OBLIGATIONS OF PARTIES. 8.1 Events of Termination 8.2 Disposition of Deposit 8.3 Effect of Termination 9. MISCELLANEOUS PROVISIONS. 9.1 Real Estate Commissions 9.2 Time of Essence 9.3 Consent 9.4 Entire Agreement. 9.5 Interpretation 9.6 Governing Law 9.7 Captions 9.8 No Third Party Rights 9.9 Modification or Amendment of Agreement; Operating Memoranda. 9.10 Waiver 9.11 Severability 9.12 Integrated Agreement 9.13 Certificates TABLE OF CONTENTS -4- 9.14 Counterparts 9.15 Public Records 9.16 Incorporation by Reference of Recitals 9.17 Attorneys' Fees TABLE OF CONTENTS ATTACHMENTS Attachment No. 1 Scope of Development Attachment No. 2 Preliminary Project Budget Attachment No. 3 Map of Project Site; Map Showing General Location of Elements of the Project Attachment No. 4 Legal Description of the Project Site Attachment No. 5 Form of City Cost Reimbursement Agreement Attachment No. 6 Schedule of Performance Attachment No. 7 Form of Right of Entry Agreement Attachment No. 8 Form of Option Agreement DISPOSITION AND DEVELOPMENT AGREEMENT This Disposition and Development Agreement (this “Agreement”) is entered into as of _____________________, 2021 (the “Execution Date”), by and among the CITY OF PALM DESERT, a chartered municipal corporation (the “City”), and CHANDI ENTERPRISES LLC, a California limited liability company (the “Developer”). The City and Developer are the sole parties (each, a “Party” and, collectively, the “Parties”) to this Agreement. The “Effective Date” shall be __________ 2021. RECITALS This Agreement is based upon the following recitals, facts, and understandings of the Parties: A. The City and Developer desire to convey that certain 1.54 acres (APNs 627- 101-002, 627-101-017, 627-101-033, 627-101-061, 627-101-062 and remnant City right of way) (the “City Property”) which make up the Project Site as further discussed in Section 1.2 below (the “Project Site”). B. The Developer has completed its due diligence investigations of the Project Site and accepts the conditions of the Project Site. C. On the Project Site, the Developer will construct the following improvements as set forth in the “Scope of Development” (Attachment No. 1 attached hereto and incorporated herein by reference): Multi story mixed-use project consisting of 60 residential units above appx 14,000 sf of retail and associated amenities (the “Project”) D. The Project Costs are currently estimated by Developer to be $17,782,000 and the Developer expects to fund the Project Costs as set forth in the attached (Attachment No. 2 is a “Preliminary Project Budget” that includes all hard and soft Project Costs). The Preliminary Project Budget shall be updated by Developer for City review on or prior to the applicable target date set forth in the Schedule of Performance, Attachment No. 6 attached hereto and incorporated herein by this reference. E. The Parties now desire to set forth the terms and conditions upon which the City may sell the Project Site to the Developer for the development, operation, and maintenance of the Project. Developer may finance the Project Costs and the Developer’s Improvements Costs. All capitalized terms not defined within this Agreement shall have the meanings described within with the Attachments incorporated hereto as part of this Agreement. -7- AGREEMENTS For valuable consideration, receipt of which is hereby acknowledged, and the mutual obligations of and benefits to the Parties set forth herein, the City and Developer agree as follows: 1. GENERAL PROVISIONS. 1.1 Purpose of this Agreement. The intent and purpose of this Agreement is to set forth the obligations of the Parties and conditions precedent to the development and construction of the various elements of the Project, as applicable, and the financing by the Developer of the Project. Accordingly, this Agreement is intended to provide for the completion of all actions necessary to plan and design the Project, and to obtain all approvals necessary for the sale of the Project Site to the Developer and for commencement of development and construction of the Project, including, but not limited to, the preparation of all construction plans, specifications and cost estimates (to the extent required under this Agreement as a condition to the Close of Escrow) and related documents for the Project, the securing of private financing for the various elements of the Project and the negotiation and execution of the sale of land for the Project. This Agreement shall expire and be of no further force or effect upon issuance of Certificate of Occupancy for the Project except for those provisions that expressly survive the expiration or earlier termination of this Agreement, which are set forth in Article 8. 1.2 Project Site. The Project Site and Map Showing General Location of Elements of the Project (“Site Plan”) is shown on Attachment No. 3 and more particularly described in Attachment No. 4. The “Project Site” shall include a Multi-story mixed-use project consisting of 60 residential units above appx 14,000 sf of retail. 1.3 Project Existing Approvals. The Parties agree that, as of the Execution Date, the following documents have been approved and may be amended from time to time by the City (the “Existing Approvals”): (a) Existing Approvals: (i) Precise Plan/Conditional Use Permit (PP/CUP 20-0003 and all supporting conditions of approval) (ii) Tentative Parcel Map 38023 (iii) Architectural Review Committee approval on November 10, 2020 (b) Implementing Actions by City, Government Agencies, and Other Parties. The implementation of this Agreement requires certain actions by the City and other governmental agencies with an interest in the Project Site, which actions include, but are not limited to, the following, which have been or shall be completed on or prior to the applicable target date set forth in the Schedule of Performance, Attachment No. 6 attached hereto and incorporated herein by this reference (the “Target Date”) for such respective items (the “Implementing Actions”). Assuming adequate environmental -8- review, the City Manager, in consultation with the City Attorney, is hereby authorized to execute any Implementing Actions requiring City approval without City Council consideration, unless the City Manager or City Attorney determines that the Implementing Action should be considered by the City Council. Upon execution of any Implementing Action, the City Manager shall provide notice to the City Council. 1.4 CEQA Compliance. The City reviewed the Project pursuant to the California Environmental Quality Act (“CEQA”) and CEQA Guidelines (California Code of Regulations, Title 14, Section 15000, et seq.) and has found that the Project is exempt from review under Class-32 infill exemption as set forth under the Existing Approvals, which satisfies CEQA for purposes of this Agreement and the Existing Approvals. The Developer understands and agrees that the City may require subsequent or supplemental environmental review or other environmental analysis to implement the Project as required by CEQA, and/or by changes in applicable local, state, federal laws, including, without limitation, the applicable codes, ordinances, regulations, and policies of the City (collectively, the “Laws”). 1.5 Deposit (a) The City has on deposit the amount of $50,000 from Developer (the “Deposit”) that shall be used towards the Purchase Price, discussed below and is otherwise non-refundable, as security for the performance of the obligations of the Developer hereunder. (b) The Deposit shall be retained by the City until such time as (i) the Grant Deed has been executed and recorded, in which event the Deposit shall be made part of the deposit required under the Purchase Price, or (ii) if this Agreement is earlier terminated, at which time the remaining Deposit shall be retained by the City, in accordance with the provisions of Section 8.2. 2. IDENTITY OF PARTIES. 2.1 Developer. (a) The Developer is Chandi Enterprises LLC, a California limited liability company. The Developer’s principals are Nachhattar Singh Chandi, Susana Chandi, Amandeep Kaur Chandi, and Gurvinder Singh Chandi It is on the basis of the qualifications and experience of the Developer that the City is entering into this Agreement. 2.2 City. The City is the City of Palm Desert, a charter city and municipal corporation. 2.3 Notices. (a) To Developer. Notices to the Developer shall be given or served by (a) recognized national overnight delivery service, or (b) facsimile with a confirmed -9- receipt of such transmittal, provided a copy of such facsimile notice is also sent by mail, as provided below, or (c) first-class mail or certified mail, return receipt requested, addressed as follows, or to such other address(es) as the Developer may from time to time designate by notice to the other Parties: Nachhattar Singh Chandi Chandi Enterprises LLC 42270 Spectrum Street Indio, CA 92203 With a copy to: Robert Patterson SBEMP 1800 East Tahquitz Canyon Way_______________ Palm Springs, CA 92262 (b) To City. Notices to the City shall be given or served by (a) recognized national overnight delivery service, or (b) facsimile with a confirmed receipt of such transmittal, provided a copy of such facsimile notice is also sent by mail, as provided below, or (c) first-class mail or certified mail, return receipt requested, at the following address, or to such other address(es) as the City may from time to time designate by notice to the other Parties: City of Palm Desert Attention: City Manager 73510 Fred Waring Dr. Palm Desert, California 92260 With a copy to: City Attorney City of Palm Desert 73510 Fred Waring Dr. Palm Desert, California 92260 (c) Forms of Delivery. Facsimile notice shall be deemed given on the date set forth in the sender’s confirmation notice; overnight delivery notice shall be deemed given the next business day from when sent; and mailed notice shall be deemed to have been given or served, if mailed by first-class mail, on the third business day from when mailed, and, if by certified mail, on the date set forth in the return receipt. 3. TERM. 3.1 Term. The term of this Agreement shall commence on the Execution Date and shall expire on the earlier of issuance of a final certificate of occupancy for the Project on or prior to the applicable Target Date set forth in the Schedule of Performance, Attachment No. 6 attached hereto and incorporated herein by this reference (the “Construction Completion”) (the “Term”). -10- 4. DESIGN AND DEVELOPMENT OF PROJECT. 4.1 Design and Development of the Project. (a) The Project shall be designed by the Developer in accordance with the Scope of Development, the Project Existing Approvals per Section 1.3 and 1.4, and this Agreement. (b) The final designs and plans for the Developer’s Improvements and the Project shall provide for build-out consistent with the Existing Approvals and Implementing Approvals. (c) The Developer shall comply with all Laws applicable to the Project, including, without limitation, the City’s Municipal Code. (d) The Developer shall comply with all Laws applicable to the development and construction of the Developer’s Improvements. (e) The Developer shall pay when due all fees pertaining to the review and approval of the Developer’s Improvements that are lawfully required by any government agency, including, without limitation, the City and by any public utility. The Developer shall endeavor to obtain, prior to the commencement of construction of the Developer’s Improvements, any and all governmental approvals and permits that are required for commencement of such construction and any and all discretionary governmental approvals and permits that are required for completion of the Developer’s Improvements. 4.2 City Infrastructure Improvements. The City shall not be responsible for any infrastructure improvements for the Project. 4.3 Submission and Approval of Construction Documents and Building Permit and Grading Permit Applications. (a) On or before the Target Date set forth in the Schedule of Performance, the Developer shall submit to the City Construction Documents for the Developer’s Improvements and submit for approval Building Permit and Grading Permit Applications in accordance with clauses (i) and (ii) below, respectively, and to the City, Building Permit and Grading Permit Applications for the Developer’s Improvements in accordance with clause (iii) below. (i) Construction Documents: On or before the Target Date set forth in the Schedule of Performance, Developer shall submit to the City “Construction Documents” for development of the Developer’s Improvements (“Construction Documents Set”) demonstrating conformance with the design approvals at 100% Design Development and 100% Construction Documents completion of such construction drawings. Each -11- Construction Documents Set shall be prepared by an architect or an engineer licensed in the State of California. Inspection, review, or comment by the City with respect to any of the Construction Documents shall not in any way affect or reduce the Developer’s obligations under this Agreement or be deemed to be a warranty or acceptance by the City with respect to such Construction Documents; it being understood that the City is relying upon the Developer to design and engineer the Developer’s Improvements. (ii) Building Permit and Grading Permit Applications: On or before the Target Date set forth in the Schedule of Performance, Developer shall submit for review by the City “Grading Permit Application” and “Building Permit Application” for development of the Developer’s Improvements. Grading Permit and Building Permit Applications shall be prepared by an architect or engineer, as appropriate, licensed to do business in the State of California. Inspection, review, approval, or comment by the City with respect to any of the Grading Permit or Building Permit Applications shall not in any way affect or reduce the Developer’s obligations under this Agreement or be deemed to be a warranty or acceptance by the City with respect to such Building Permit or Grading Permit Applications; it being understood that the City is relying upon the Developer to design and engineer the Developer’s Improvements in accordance with this Agreement. (iii) Grading Permit and Building Permits: All lawfully imposed City fees with respect to the issuance of the Grading Permit and Building Permits will apply and shall be paid by the Developer. (b) With each of the two submissions of Construction Documents and the Grading Permit and Building Permits, Applications pursuant to this Section 4.3, the Developer shall submit to the City Development Cost estimates for such portion of the Developer’s Improvements, prepared by a qualified cost estimator in such detail as warranted by the extent of detail and completeness of the Construction Documents and Grading Permit and Building Permits Applications submitted to the City. Such Development Cost estimates shall be prepared in good faith and shall reflect the reasonable judgment of the Developer regarding such estimates. The Parties acknowledge that such estimates are estimates only and that final Development Costs may differ from the previously provided estimates. The parties understand and agree Development Cost estimates for the Project will comply with the Construction Specialties Institute divisions for cost estimation. -12- 4.4 Agreement on Total Project Costs. (a) ”Hard Construction Costs” shall mean, with respect to the Project, all costs that the Developer is required to pay to the respective construction contractor for the construction of such component of the Project. (b) Concurrent with the Developer submission of the Building Permit Application, the Developer shall submit final estimates of the total Development Costs of the Project. (c) The Developer shall submit executed guaranteed maximum price construction contracts, fixed-price construction contracts, or cost-plus contracts, as determined by Developer in its sole and absolute discretion, with respect to the Developer’s Improvements, based on signed bids from Developer’s contractors and subcontractors (if applicable), on or before the Target Date set forth in the Schedule of Performance. 4.5 [Intentionally left blank] 4.6 [Intentionally left blank] 4.7 Insurance. Without limiting Developer’s indemnification of the City of Palm Desert, and prior to commencement of construction of the Project, herein defined as “Work” for this Article 4 and this Agreement, Developer shall obtain, provide and maintain, or cause to be obtained, provided, and maintained, at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City. 4.7.1 General Liability Insurance. Developer or its General Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 4.7.2 Automobile Liability Insurance. Developer or its General Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Developer arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 4.7.3 Umbrella or Excess Liability Insurance. Developer or its General Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Developer or its General Contractor shall obtain and maintain an umbrella or excess liability insurance policy that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary -13- coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions: 4.7.4 Workers’ Compensation Insurance. Developer or its General Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Developer’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Developer or its General Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Developer shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, agents, employees, and volunteers. 4.7.5 Pollution Liability Insurance. Developer or its General Contractor shall maintain Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to Agency providing coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites. 4.8 Other provisions or requirements: 4.8.1 Proof of Insurance. Developer or its General Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 4.8.2 Duration of Coverage. Developer or it General Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Developer, its agents, representatives, employees or subcontractors. Developer or its General Contractor must maintain general liability and umbrella or excess liability insurance for a minimum of three (3) years after project completion. The City of Palm Desert and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 4.8.3 Primary/Noncontributing. Coverage provided by Developer or its General Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance -14- required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City, before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. 4.8.4 Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. 4.8.5 City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the same level of insurance. Any premium paid by City will be promptly reimbursed by Developer or City will withhold amounts sufficient to pay the premium from Developer's payments. 4.8.6 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact the business of insurance, with an assigned policyholders’ and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. 4.8.7 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Developer or others providing insurance evidence in compliance with these specifications to waive their right of recovery through subrogation prior to a loss. Developer hereby waives its own right of recovery through subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subcontractors. 4.8.8 Enforcement of Contract Provisions (non-estoppel). Developer acknowledges and agrees that any actual or alleged failure on the part of the City to inform Developer of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 4.8.9 Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any -15- insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all- inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Developer maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Developer. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 4.8.10 Notice of Cancellation. Developer agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. 4.8.11 Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City of Palm Desert and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Developers Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10) and completed operations (i.e. ISO Form CG 20 37) of Developer. 4.8.12 Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 4.8.13 Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Developer’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 4.8.14 Pass-Through Clause. Developer or its General Contractor agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Developer, shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Developer or its General Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Developer agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. -16- 4.8.15 City’s Right to Revise Requirements. If commercially reasonable, the City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Developer ninety (90) days advance written notice of such change, so long as the change is made for other projects in the City. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 4.8.16 Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. 4.8.17 Timely Notice of Claims. Developer shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Developer’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. 4.9 Safety. DEVELOPER SHALL EXECUTE AND MAINTAIN ITS WORK SO AS TO AVOID INJURY OR DAMAGE TO ANY PERSON OR PROPERTY. IN CARRYING OUT ITS SERVICES, THE DEVELOPER SHALL AT ALL TIMES BE IN COMPLIANCE WITH ALL APPLICABLE LOCAL, STATE AND FEDERAL LAWS, RULES AND REGULATIONS, AND SHALL EXERCISE ALL NECESSARY PRECAUTIONS FOR THE SAFETY OF EMPLOYEES APPROPRIATE TO THE NATURE OF THE WORK AND THE CONDITIONS UNDER WHICH THE WORK IS TO BE PERFORMED. SAFETY PRECAUTIONS, WHERE APPLICABLE, SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO: (A) ADEQUATE LIFE PROTECTION AND LIFESAVING EQUIPMENT AND PROCEDURES; (B) INSTRUCTIONS IN ACCIDENT PREVENTION FOR ALL EMPLOYEES AND SUBCONTRACTORS, SUCH AS SAFE WALKWAYS, SCAFFOLDS, FALL PROTECTION LADDERS, BRIDGES, GANG PLANKS, CONFINED SPACE PROCEDURES, TRENCHING AND SHORING, EQUIPMENT AND OTHER SAFETY DEVICES, EQUIPMENT AND WEARING APPAREL AS ARE NECESSARY OR LAWFULLY REQUIRED TO PREVENT ACCIDENTS OR INJURIES; AND (C) ADEQUATE FACILITIES FOR THE PROPER INSPECTION AND MAINTENANCE OF ALL SAFETY MEASURES. 4.10 Developer’s Indemnity Agreement/Hold Harmless. Except for sole negligence or willful misconduct of an Indemnitee, the Developer hereby assumes liability for and agrees to defend, indemnify, protect and hold harmless the City and its officers, agents, and employees, and the City Engineer from and against all claims, charges, damages, demands, actions, proceeding, losses, stop payment notices, costs, expenses (including counsel fees), judgments, civil fines and penalties, liabilities of any kind or nature whatsoever, which may arise out of or encountered in connection with Developer’s actions, or any employee, consultant or agent of Developer, under this Agreement or the performance of the Work including, but not limited to death, or bodily or personal injury to persons, or damage to property, including property owned by or under the care and -17- custody of the City, and for civil fines and penalties, that may arise from or be caused, in whole or in part, by any negligent or other act or omission of Developer, its officers, agents, employees, or Subcontractors including, but not limited to, liability arising from: (a) Any dangerous, hazardous, unsafe or defective condition of, in or on the premises, of any nature whatsoever, which may exist by reason of any act, omission, neglect, or any use or occupation of the premises by the Developer, its officers, agents, employees, or subcontractors; (b) Any operation conducted upon or any use or occupation of the premises by Developer, its officers, agents, employees, or Subcontractors under or pursuant to the provisions of this contract or otherwise; (c) Any act, omission, or negligence of Developer, its officers, agents, employees, or Subcontractors; (d) Any failure of Developer, its officers, agents, or employees to comply with any of the terms or conditions of this Contract or any applicable federal, state, regional, or municipal law, ordinance, rule, or regulation, including Prevailing Wage Law as set forth in Section 4.13. The Developer also agrees to indemnify City and pay for all damage or loss suffered by City including, but not limited to damage or loss of City Property, caused by or arising out of the conditions, operations, uses, occupations, acts, omissions, or negligence referred to in Sections 4.10 (a), (b), (c), and (d) above. Developer’s obligations under this Section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop payment notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the City under and provision of this agreement, Developer shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Developer will be for that entire portion or percentage of liability not attributable to the active negligence of City. Developer agrees to obtain executed indemnity agreements with provisions similar to those set forth here in this section from each and every subcontractor or any other person or entity involved by, for, with, or on behalf of Developer in the performance of this agreement. In the event that Developer fails to obtain such indemnity obligations from others as required here, Developer agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, -18- assigns, or heirs of Developer and shall survive the termination of this agreement or this section for a period of three (3) years. This Indemnity shall survive termination of the Agreement hereunder for a period of three (3) years. This Indemnity is in addition to any other rights or remedies that the Indemnitees may have under the law or under any other Contract Documents or Agreements. 4.11 reserved 4.12 reserved 4.13 Prevailing Wages. The Developer acknowledges and agrees that: (a) If any construction, alteration, demolition, installation, or repair work that the Developer performs, or causes to be performed, or that the Developer is required to perform, under this Agreement (“Developer Construction Work”) constitutes a “public work” under California Prevailing Wage Law, including Labor Code Sections 1720 through 1861, et seq. (as such statutes may be amended from time to time, “PWL”), then the PWL obligates the Developer to cause such Developer Construction Work to be performed as “public work”, including, but not limited to, the payment of applicable prevailing wages to all Persons subject to the PWL. (b) The Developer shall cause all Persons performing Developer Construction Work, if such is a “public work”, to comply with all applicable provisions of the PWL and other applicable wage Laws. (c) The City hereby notifies the Developer and the Developer hereby acknowledges that the PWL includes, without limitation, Labor Code Section 1771.1(b) that provides that the following requirements described in Labor Code Section 1771.1(a) shall be included in all bid invitations and “public work” contracts: A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for “public work” unless it is currently registered and qualified to perform “public work” pursuant to Section 1725.5. It is not a violation of Section 1771.1 for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code if the contractor is registered to perform “public work” pursuant to Section 1725.5 at the time the contract is awarded. (d) The Developer acknowledges that an obligation applicable to “public works” under the PWL for “public works” include, without limitation, ensuring that: (i) pursuant to Labor Code Section 1771.1(b), a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor’s current registration to perform “public work” pursuant to Section 1725.5; -19- (ii) pursuant to Labor Code Section 1771.4(a)(1), the call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”); (iii) pursuant to Labor Code Section 1771.4(a)(2), it posts or requires the prime contractor to post job site notices, as prescribed by regulation; and (iv) pursuant to Labor Code Section 1773.3(a)(1), it provides notice to the DIR of any “public works” contract subject to the requirements of the PWL, within thirty (30) days of the award, but in no event later than the first day in which a contractor has workers employed upon the public work. Pursuant to Labor Code Section 1773.3(a)(2), the notice shall be transmitted electronically in a format specified by the DIR and shall include the name and registration number issued by the DIR pursuant to Section 1725.5 of the contractor, the name, and registration number issued by the DIR pursuant to Section 1725.5 of any subcontractor listed on the successful bid, the bid and contract award dates, the contract amount, the estimated start and completion dates, job site location, and any additional information that the DIR specifies that aids in the administration and enforcement of the PWL. PWC-100 is the name of the form currently used by the DIR for providing the notice, but the Developer shall determine and use whatever form the DIR requires. (e) The City shall not be responsible for the Developer’s failure to comply with any applicable provisions of the PWL. (f) The Developer’s violations of the PWL shall constitute a breach of this Agreement. 4.14 Liens and Claims. (a) The Developer agrees that, if any Professional or materialman performing the Work, or furnishing materials in connection therewith, or if anyone claiming directly or indirectly under or through the Developer or any affiliate, professional or materialman shall file or cause to be filed any mechanics lien or other lien or security interest against the Project Site, the Developer’s Improvements, or any portion thereof, or against any assets of or funds appropriated to or by the City or the City, then, within thirty (30) days after the Developer receives notice of filing thereof, the Developer shall cause such lien or security interest to be discharged of record by payment, deposit, bond, order of court of competent jurisdiction or otherwise. If the Developer shall fail to cause such lien or security interest to be discharged of record within the period aforesaid, then, in addition to any other right or remedy, the City or the City may, but shall not be obligated -20- to, discharge the same by procuring the discharge of record of such lien or security interest. Any amount so paid by the City or the City, including all reasonable costs and expenses incurred by the City or the City in connection therewith, shall be payable by the Developer to the City or the City, as applicable, on-demand. The City will endeavor to notify Developer of any lien notices that it receives; provided, however, that the failure by City to so notify the Developer shall not affect Developer’s obligations hereunder. (b) Notwithstanding Section 4.15(a), the Developer shall not be required to discharge of record any such lien or security interest if the Developer is in good faith, and consistent with applicable Law, at its own expense, currently and diligently contesting the same; provided that the Developer first records a surety bond sufficient to release such lien or such security interest, as applicable. 4.15 Compliance with Law; Enforceability by City. The City shall provide to the Developer copies of its findings, policies, and resolutions which authorize (a) the City to enter into each and every of the Closing Documents to which it is a party and (b) the Person or Persons executing each of such Closing Documents on behalf of the City to do so (collectively, “Compliance Documents”), upon request of Developer. The Developer shall provide its written comments to the Compliance Documents within a commercially reasonable period of time of the receipt thereof. If the City disagrees with any of the comments provided by the Developer, then the Parties shall meet and confer in accordance with Section 5.1. If disagreements between the Developer and the City are not resolved pursuant to Section 5.1, then the Developer may terminate this Agreement in accordance with Article 8. 5. REQUIREMENTS OF PARTIES; CONDITIONS PRECEDENT TO CLOSE OF ESCROW. 5.1 Periodic Review; Meet and Confer. (a) The City and Developer shall have the option, not more frequently than every three (3) months during the Term, to conduct a review (the “Periodic Review”) to evaluate, among other things, the extent to which the other party is complying with its obligations under this Agreement or the Schedule of Performance, and the Parties’ determinations of whether it is feasible to continue with the development of the Project pursuant to this Agreement (collectively, “Periodic Review Matters”). (b) Meet and Confer. (i) Within thirty (30) days following submittal of the information and materials concerning obligations and/ or the Schedule of Performance as reasonably requested in accordance with Section 5.1(a) or (ii) within five (5) days following notice of any Event of Default, City staff and the Developer shall meet and confer to seek mutual resolution of areas of concern covered in the Periodic Review or such Event of Default, as applicable, and to come to a mutual agreement whether to take one of the following actions: (i) Pause. To the extent feasible, pause any actions and activities of the Parties pursuant to this Agreement (except, to the extent applicable, insurance, maintenance, and -21- indemnification obligations) for a period up to thirty (30) days to enable the Parties to schedule one or more additional meet and confer events to gather additional information and continue discussions of the Periodic Review Matters or such Event of Default, as applicable; or (ii) Delay. To the extent feasible, delay for a period up to thirty (30) days any further actions or activities of the Parties under this Agreement to enable the Parties to further investigate their respective positions and whether it is feasible to proceed with the development of the Project as provided for hereunder. (iii) If disagreements between the Parties are not resolved pursuant to Section 5.1(b)(i) or (ii), then the Parties shall attempt to resolve such disagreements through mediation in accordance with Section 7.5. If such disagreements are not resolved through mediation within one hundred fifty (150) days after the commencement of mediation, then either Party may terminate this Agreement pursuant to Article 8. (c) If disagreements between the Parties are resolved pursuant to Section 5.1(b), then, if applicable, the Parties shall revise the Schedule of Performance to incorporate the changes agreed to by the Parties pursuant to Section 5.1(b) and such revisions to the Schedule of Performance shall be made without the need for an amendment to this Agreement in accordance with Section 9.9. (d) Notwithstanding any other provision in this Agreement, in the event Schedule of Performance extensions pursuant to Sections 5.1(b)(i) and 5.1(b)(ii) above exceed two-hundred and seventy (270) days cumulatively, any Party may elect to terminate this Agreement in accordance with Article 8, by providing written notice to the other party. 5.2 Conditions Precedent to Close of Escrow Benefiting the City. The City’s obligations in connection with the Close of Escrow are expressly conditioned upon the satisfaction by the City (or waiver by the City in writing) of each of the following conditions for the Project on or prior to the Target Date set forth in the Schedule of Performance but not less than forty-five (45) days prior to Close of Escrow: (a) The City shall have received from the Developer in accordance with this Agreement: (i) the 100% Construction Documents for the Developer’s Improvements; (ii) City’s is prepared to issue Developers Building Permit and Grading Permit for the Project subject only to the payment of all applicable fees; (b) Developer shall have obtained commitments for all financing that is necessary to complete the Project, with such financing to close concurrently with the Close of Escrow and on or prior to the applicable Target Date set forth in the Schedule of -22- Performance provide the City a notice that the financing for the City Property purchase and construction costs are immediately available for the Close of Escrow (“Notification of Loan Closing Documents”); (c) The City shall have received from the Developer copies of the Required Building Permits application and all other permits that are required for the commencement and completion of construction of Developer’s Improvements; “Required Building Permits application and Grading Permits” means (i) the Building Permits application and that City has issued Grading Permits; (d) The City shall have reviewed and provided comments, on or prior to the applicable Target Date set forth in the Schedule of Performance, regarding the terms of the Developer construction contracts with any contractor for the Developer’s Improvements, including guaranteed maximum price construction contracts, fixed-price construction contracts or cost plus construction contracts for Developer’s Improvements; (e) The City shall have received from the Developer evidence reasonably satisfactory to the City that all discretionary permits and other approvals that are required to complete construction of the Developer’s Improvements have been obtained from any and all governmental agencies having jurisdiction over the Project Site and other parties as set forth in Section 1.3; (f) The City shall have received from the Developer certificates of insurance for each of the policies of insurance required under this Agreement evidencing that such policies meet the respective insurance requirements and will be effective as of the Close of Escrow; (g) No Developer Event of Default shall have occurred and be continuing; (h) The Developer shall have executed the Grant Deed and Option Agreement subject to reasonable terms and conditions required by Developer’s Private Construction Lender which may include without limitation rights to notice and rights to cure regarding any default of Developer under this Agreement to which it is a party, with the effectiveness thereof subject only to the consummation of the Close of Escrow; (i) City shall have considered and approved items set forth in Section 1.3; 5.3 Conditions Precedent to Close of Escrow Benefiting Developer. The Developer’s obligations in connection with the Close of Escrow are expressly conditioned upon the City, satisfying, or causing the satisfaction, of each of the following conditions (or waiver by the Developer in writing of any of the following conditions): (a) The Title Company shall be irrevocably committed to issue to the Developer, simultaneously with the Close of Escrow, a policy or policies of title insurance; -23- (b) The Developer shall have received notice from the City approved or disapproved, the Developer’s submittals required under this Agreement; (c) The Developer shall have approved each of the Compliance Documents in accordance with Section 4.15 or the Developer and the City shall have reached an agreement regarding each of the Compliance Documents pursuant to Section 4.15; (d) The Developer shall have received its Grading Permit; (e) The Developer shall have received all discretionary permits and approvals that are required to complete the construction of the Developer’s Improvements from any and all non-City governmental agencies having jurisdiction over the Project Site and all such discretionary permits and approvals shall be final beyond any applicable appealable periods; (f) The Loan Documents shall have been executed, with the effectiveness thereof subject only to the consummation of the Close of Escrow, in an amount sufficient to pay for the Project (g) Developer shall have considered and approved items set forth in Section 1.3; (h) The Developer shall have received evidence that the City has received required approvals from any and all third parties; and (i) The Title Company shall be irrevocably committed to issue to the Developer, simultaneously with the Close of Escrow, a policy or policies of title insurance in such form and amounts and with such special endorsements as may be reasonably required by the Developer and the Private Construction Lender, subject only to the Approved Title Exceptions. 5.4 Existing Approvals; Cooperation Between Parties. (a) All approvals required by the City and Developer under this Agreement shall not be unreasonably withheld or denied, but may be denied in accordance with applicable law and, where specifically referenced in this Agreement or in the Schedule of Performance, shall be given within the times set forth in this Agreement or in the Schedule of Performance. (b) The City and Developer shall, to the extent reasonably necessary, cooperate with each other to enable each Party to perform its obligations under this Agreement; provided, however, that in the event that any Party is asked to provide cooperation, assurance, assistance, documentation, or investigation and such Party reasonably and in good faith determines that complying with such request will be unlawful, unreasonable or require such Party to incur significant out of pocket expenses such Party may refuse to cooperate, without liability to that Party, by providing written notice to the Party requesting the cooperation of the reason(s) for the refusal to cooperate and a -24- proposed alternative, if feasible. Notwithstanding this provision, this Section 5.4(b) does not limit City’s discretionary actions and City reserves the right to exercise discretionary actions, in accordance with applicable law. (c) From and after the Execution Date, the City shall not use the Project Site for any uses other than legally permitted uses that would not reasonably be expected to materially and adversely affect the rights of Developer hereunder including but not limited to the development, construction, or use of the Project. (d) Any Party, at its sole election, may in writing waive satisfaction of any of the conditions by another Party set forth in Section 5.2 or Section 5.3 that is to the benefit of such waiving Party only, or if it is to the benefit of two of the Parties, then upon the agreement between such Parties. Any such condition waived by a Party or two Parties, as applicable, shall be deemed to be “satisfied” for purposes of Section 5.2 or Section 5.3, as applicable. Any such waiver shall be set out in an Operating Memorandum in accordance with Section 9.9. 5.5 Physical Condition of the Project Site. The Developer agrees to unconditionally accept the Project Site SUBJECT TO ALL FAULTS AND CONDITIONS, “AS-IS”, “WHERE IS”, WITHOUT ANY WARRANTY AS TO QUALITY, CHARACTER, PERFORMANCE OR CONDITION and with full knowledge of the physical condition of the Project Site, all Laws applicable to the Project Site, the Approved Title Exceptions and of any and all conditions, restrictions, encumbrances and all matters of record relating to the Project Site. The Developer’s acceptance of the Project Site shall constitute the Developer’s representation and warranty to the City that the Developer is relying solely on its own investigation of the Project Site and has received assurances acceptable to the Developer by means independent of the City or any employee, official, consultant or agent of the City of the truth of all facts material to the Developer’s purchase of the Project Site pursuant to this Agreement, the Grant Deed, and that the Project Site is being purchased by the Developer as a result of its own knowledge, inspection and investigation of the Project Site and not as a result of any representation(s) made by the City, or any employee, official, consultant or agent of the City relating to the condition of the Project Site except as expressly provided in this Agreement. The City hereby expressly and specifically disclaims any express or implied warranties regarding the Project Site, except as expressly set forth in this Agreement. 5.6 Hazardous Substances. To the City’s knowledge, City has not received any notice of violation issued pursuant to any Environmental Law with respect to any part of the City Property. As used herein, “City’s knowledge” shall mean the present actual, not constructive, knowledge of City without any investigation or inquiry or duty to do so. 5.7 reserved 5.8 At and as of the Closing, City shall not have received any notice of violation issued pursuant to any Environmental Law with respect to any part of the City Property. For purposes of this Agreement, “Environmental Laws” means all laws and restrictions pertaining to the protection of human health and safety or the environment. Hazardous -25- Substance means any chemical, substance, medical or other waste, living organism, or a combination thereof which is or may be hazardous to the environment or human or animal health or safety due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, carcinogenicity, mutagenicity, phytotoxicity, infectiousness or other harmful or potentially harmful properties or effects. For purposes of this Agreement “Hazardous Substance” shall include, but not be limited to, petroleum hydrocarbons, including crude oil or any fraction thereof, asbestos, radon, polychlorinated biphenyls (PCBs), methane, and all substances which now or in the future may be defined as “hazardous substances,” “hazardous wastes,” “extremely hazardous wastes,” “hazardous materials,” “toxic substances,” “infectious wastes,” “biohazardous wastes,” “medical wastes,” “radioactive wastes” or which are otherwise listed, defined or regulated in any manner pursuant to any Environmental Laws. 5.9 Early Entry by Developer (a) The City shall provide Developer right of entry agreements, as required, by and between the Developer (collectively, the “Right of Entry Agreement”). Attached hereto as Attachment No. 7 is a form of a Right of Entry Agreement. 6. SALE OF CITY PROPERTY; CLOSE OF ESCROW. 6.1 Sale of City Property. The City Property shall be sold to the Developer pursuant to the Grant Deed and the purchase price shall be Nine Hundred and Forty Thousand Dollars ($940,000.00), the amount of the fair market value appraisal dated October 13, 2020 (the “Purchase Price”). Attached hereto as Attachment No. 8 is form of Option Agreement which, among other things, includes a right of repurchase by the City for the Purchase Price in the event that the Project has not obtained required building permits within four (4) months of the Close of Escrow, not commenced construction within four (4) months from the Close of Escrow, or in the event of a Developer Event of Default of this Agreement subject to any extensions hereunder or in the event that the Developer is not in compliance with the Scope of Development which noncompliance constituting an Event of Default under Section 7.1. City shall reasonably cooperate with Developer to secure financing for the Project and to negotiate the terms of the Option Agreement with such Lender while maintaining City goals and protections. (a) Opening of Escrow; Updated Preliminary Title Reports. The Parties shall open an escrow with First American Title ____________________ , or such other escrow company as the Parties may mutually select (the “Escrow Agent”) to consummate the Close of Escrow as herein provided. Within sixty (60) days of the Execution Date (“Delivery Date”), the Developer shall deliver to the City a preliminary title report (“Preliminary Title Report”) for the City Property prepared by First American Title Insurance Company (the “Title Company”). (b) Developer has reviewed the Preliminary Title Report and has no objections to the items of record. 6.2 Execution and Delivery of Documents. The applicable Parties shall complete, execute and deliver the Closing Documents as set forth in Section 6.3(a). -26- 6.3 Close of Escrow; Title Policies. Provided that each of the conditions in Sections 5.2 and 5.3 has been satisfied, or waived in writing by the Party or the Parties, as applicable, to whose benefit such condition exists, the Parties shall close the transaction contemplated by this Agreement (“Close of Escrow”) on or before the Target Date set forth in the Schedule of Performance (the “Closing Date”), but in no event earlier than the following conditions have been satisfied: (a) Escrow Agent and Title Company shall have received fully executed originals of all of the following documents (the “Closing Documents”), all of which Closing Documents shall be delivered not later than one (1) business day prior to the Closing Date: (i) One (1) original of the Grant Deed, executed by the City and Developer; (ii) One (1) original Closing Statement, executed by the City; (iii) One (1) original Closing Statement, executed by the Developer; (iv) As to each of the lenders involved in the Close of Escrow, one (1) original executed Closing Statement; (v) Such other customary and reasonable title and escrow documents reasonably required by the Title Company and Escrow Company for the Close of Escrow in a form and with terms reasonably acceptable to the Parties executing such documents and supplemental escrow instructions as may be reasonably required for the Close of Escrow; and (vi) Purchase Price less any Deposits held by the City (b) The Title Company is irrevocably committed to issue to the Developer a policy or policies of title insurance related to the City Property in such form and amounts and with such special endorsements as may be reasonably required by the Developer and the Private Construction Lender, subject only to the Approved Title Exceptions; (c) Escrow Agent shall have received from the Developer evidence that the Title Company is irrevocably committed to issue to the Private Construction Lender a lender’s policy of title insurance in the amount of the first lien mortgage, subject only to the Approved Title Exceptions, and with special endorsements, as may be required by the Private Construction Lender; (d) Escrow Agent shall have received from the Developer evidence that the Title Company is irrevocably committed to issue to Developer’s Lender a lender’s policy of title insurance in the amount of the financing, subject only to the Approved Title Exceptions, and with special endorsements as may be required by the lender -27- (e) The Developer and the Escrow Agent shall have received from the City certification in writing that all conditions to Close of Escrow set forth in Section 5.2 have either been satisfied or waived; and (f) The City and the Escrow Agent shall have received from the Developer certification in writing that all conditions to Close of Escrow set forth in Section 5.3 have either been satisfied or waived. (g) The Developer may request and shall have the right to a one-time six (6) month extension to the Close of Escrow (“Extension Period”) and City shall grant upon receipt of $100,000, which shall be non-refundable and added to the Deposit applicable to the Purchase Price. 6.4 Commencement of Construction. Developer shall commence construction of the Project only after the Close of Escrow, but not more than 90 days after the Close of Escrow. 6.5 Costs of Escrow; Title Insurance. (a) The Developer shall pay in escrow to the Escrow Agent the following fees, charges and costs promptly after the Escrow Agent has notified the Developer of the amount of such fees, charges, and costs, but not earlier than ten (10) days prior to the Closing Date: (i) The escrow fee; (ii) All premiums for special endorsements issued by the Title Company to the Developer and the Construction Lender pursuant to Sections 6.4(b) and 6.4(d); (iii) Ad valorem taxes and assessments, including possessory interest taxes, upon the City Property accruing on and after the Closing Date which are due and payable at the Close of Escrow; (iv) Any documentary transfer taxes required to be paid at the Close of Escrow; (v) Any fees payable for the recordation of any of the Closing Documents in the Official Records of the County of Riverside; and (vi) One-half (1/2) of all other fees, charges, and costs of escrow. (b) The City shall pay in escrow to the Escrow Agent the following fees, charges, and costs promptly after the Escrow Agent has notified the City of the amount -28- of such fees, charges, and costs, and City has approved the same, but not earlier than ten (10) days prior to the Closing Date: (i) All premiums for the standard title insurance policy issued by the Title Company other than the lender’s policy, (ii) The cost of any endorsements that are required to remove any Title Exception that the City has agreed to remove; and (iii) One-half (1/2) of all other fees, charges, and costs of escrow. Except as otherwise set forth in this Agreement, each of the Parties shall be responsible for the costs of its own due diligence investigations or activities, including, without limitation, the costs of its own consultants and legal counsel. 7. DEFAULTS; REMEDIES. 7.1 General Developer Default. If prior to the Close of Escrow and delivery of the City Property to Developer, the Developer shall fail to perform or fulfill any obligation required of it under this Agreement and/or under the Right of Entry Agreement and shall not have cured or commenced to cure such failure within thirty (30) days following written notice thereof from the City and/or the City (or has commenced to cure such failure, but is not diligently proceeding to cure such failure), then the Developer shall be in default under this Agreement (each such event or occurrence, a “Developer Event of Default”). In the event of a Developer Event of Default, the City may, in its sole discretion, (a) extend the time for the Developer to perform the applicable obligation(s) hereunder for a period of time acceptable to the City beyond the cure period set forth in this Section 7.1, or (b) terminate this Agreement by giving written notice (as required under Section 2.3) of such termination to the other Parties pursuant to Article 8. Upon termination, the rights and obligations of the Parties shall be as set forth in Section 8.3 and Article 8. 7.2 Default by City. If prior to the Close of Escrow, the City shall fail to perform or fulfill any obligation required of such Party under this Agreement and/or under the Right of Entry Agreement and shall not have cured or commenced to cure such failure within thirty (30) days following written notice thereof from the Developer (or has commenced to cure such failure, but is not diligently proceeding to cure such failure), then the City shall be in default under this Agreement (each such event or occurrence, a “Public Entities Event of Default” and, together with a Developer Event of Default, any “Event of Default”). In the event of a Public Entities Event of Default, the Developer may, in its sole discretion, (a) extend the time for the City or the Developer, as applicable, to perform the applicable obligation(s) hereunder for a period of time acceptable to the Developer beyond the cure period set forth in this Section 7.2, (b) terminate this Agreement by giving written notice (as required under Section 2.3) of such termination to the other Parties pursuant to Article 8, or file an action for specific performance. Upon termination, the rights and obligations of the Parties shall be as set forth in Section 7.3 and Article 8. -29- 7.3 Force Majeure. Notwithstanding anything to contrary contained herein, neither Party shall be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for so long as, such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party including but not limited to the following events that actually directly impact the Project: disease, contagion, pandemic, fire, floods, seismic events, embargoes, civil disturbance, war, labor unrest, materials shortages, acts of war (whether war be declared or not). 7.4 Remedies Exclusive; No Money Damages. (a) Because of the nature of this Agreement, the Parties agree that remedies expressly set forth in this Agreement are the only remedies available to the Parties. (b) The Developer shall have the ability to seek specific performance of this Agreement, but will not have any remedy for money damages against the City except for return of the Deposit in accordance with Article 8. Developer shall have no further right to seek damages whether compensatory, incidental, general, special, consequential, or punitive (c) The City shall not have any remedy for money damages against the Developer, except for retention of the Deposit in accordance with Article 8. (d) The City, and the Developer, as applicable, shall be entitled to compel specific performance of the other Party’s(ies’) obligation to meet and confer in accordance with Section 5.1. (e) The failure of Developer to receive any approval of any applicable development permits, maps, or other entitlements for the City Property shall not constitute a default or breach of City’s obligations contained in this Agreement. Developer acknowledges that City would not have entered into this Agreement if doing so would subject it to the risk of incurring liability in money damages, either for breach of this Agreement, anticipatory breach, repudiation of the Agreement, or for any actions with respect to its negotiation, preparation, implementation or application. 7.5 Dispute Resolution. The Parties shall, before the commencement of any lawsuit or court action against any other Party relating to this Agreement or the Project, attempt in good faith to settle their dispute by third-party mediation for a period of thirty (30) days after initiation by notice from one of the Parties to the other Party. 8. EVENTS OF TERMINATION; RIGHTS AND OBLIGATIONS OF PARTIES. 8.1 Events of Termination. This Agreement shall terminate if any of the following events (an “Event of Termination”) occur prior to Close of Escrow (a) The expiration of any Extension Period without an approved Extension or expiration of the Extension Period, as defined in Section 6.3(h); -30- (b) Termination of this Agreement by any Party pursuant to Section 5.1(b); (c) Termination of this Agreement by any Party pursuant to Section 5.1(d); (d) Termination of this Agreement by the Developer by reason of a Default by the City or by the City by reason of a Developer Event of Default, in each case, pursuant to Article 7; and (e) The failure to otherwise satisfy, by the Closing Date, the conditions set forth in Sections 5.2, 5.3 (a-h) and 6.5 in each case pursuant to Article 7, unless said failure is waived by the Party or Parties which the condition benefits. 8.1.1 Notwithstanding any of the foregoing, this Agreement will terminate upon the issuance of the final certificate of completion of all Improvements in the Project, if not earlier terminated. 8.2 Disposition of Deposit. IF THIS AGREEMENT IS TERMINATED BY THE CITY PURSUANT TO SECTION 8.1, THE DEVELOPER ACKNOWLEDGES AND AGREES THAT THE DEPOSIT MAY BE RETAINED BY THE CITY AND CITY AS LIQUIDATED DAMAGES AND AS THEIR PROPERTY WITHOUT ANY DEDUCTION, OFFSET, OR RECOUPMENT WHATSOEVER BY THE DEVELOPER. IF THE DEVELOPER SHOULD DEFAULT UPON ITS OBLIGATIONS HEREUNDER, ANY SUCH TERMINATION OF THIS AGREEMENT WOULD RESULT IN DAMAGE AND LOSS TO THE CITY THAT IS NOT CAPABLE OF BEING ACCURATELY DETERMINED IN ADVANCE. IT IS IMPRACTICABLE AND EXTREMELY DIFFICULT TO FIX THE AMOUNT OF SUCH DAMAGES TO THE CITY, BUT THE PARTIES ARE OF THE OPINION, UPON THE BASIS OF ALL INFORMATION AVAILABLE TO THEM, THAT SUCH DAMAGES WOULD APPROXIMATELY EQUAL THE AMOUNT OF THE DEPOSIT, AND THE AMOUNT OF SUCH DEPOSIT SHALL BE PAID TO THE CITY AS PROVIDED IN THIS AGREEMENT AS THE TOTAL OF ALL LIQUIDATED DAMAGES FOR ANY AND ALL SUCH DEVELOPER EVENTS OF DEFAULT AND NOT AS A PENALTY. THE DEVELOPER AND THE CITY SPECIFICALLY ACKNOWLEDGE THIS LIQUIDATED DAMAGES PROVISION BY THEIR SIGNATURES HERE: CITY: By: -31- DEVELOPER: By: 8.3 Effect of Termination. (a) Following the Close of Escrow, the rights and obligations of the parties shall be governed by this Agreement and the Option Agreement. (b) If this Agreement is terminated by City or expires, then the City shall have the absolute right to enter into agreements relating to the Project, Project Site, Developer’s Improvements, and the City Property with any developer or operator and brand of its choosing. The City shall not have the right to discuss any aspect of the Project with any prospective or subsequent developer, operator, or brand absent full and final termination of this Agreement. (c) Except as otherwise expressly provided in this Article 8 and subsection (d) below, upon an Event of Termination, none of the Parties shall have any further rights, obligations, or remedies to or against any other Party pursuant to this Agreement. (d) Notwithstanding termination of this Agreement, the Parties agree that the following provisions shall survive such termination to the extent and for such period as necessary to give them full force and effect under the circumstances giving rise to the termination of this Agreement: (i) Section 4.10; (ii) Section 8.2; and (iii) this Section 8.3. 9. MISCELLANEOUS PROVISIONS. 9.1 Real Estate Commissions. Neither Party shall be liable for any real estate commission or brokerage fees which may arise from this Agreement. Each Party represents that it has engaged no broker, agent, or finder in connection with this Agreement, and each Party agrees to hold the other Party or Parties harmless from any claim by any broker, agent, or finder retained by such Party. 9.2 Time of Essence. Time is of the essence in the performance of the respective obligations of the Parties under this Agreement. 9.3 Consent. The City shall reasonably cooperate with the Developer in the preparation and submittal of any governmental applications the Developer must submit in the furtherance of this Agreement. The City further agrees to reasonably cooperate with the Developer in the timely processing of any such applications. -32- 9.4 Entire Agreement. This Agreement consists of forty-three (43) pages together with Attachment Nos. 1 through 8, inclusive, which are attached hereto and incorporated herein by this reference, which constitutes the entire agreement between the Parties. 9.5 Interpretation. This Agreement has been negotiated at arm’s length and between Persons sophisticated and knowledgeable in the matters dealt with herein. In addition, each Party has been represented by experienced and knowledgeable legal counsel. Accordingly, any rule of law (including California Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the Party that has drafted it, is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purposes of this Agreement. 9.6 Governing Law. This Agreement shall be governed by the laws of the State of California. 9.7 Captions. The captions used herein are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or the intent of any Section hereof. 9.8 No Third Party Rights. Nothing in this Agreement shall create or shall give to third parties any claim or right of action against the City, the City, or the Developer beyond such as may legally exist, irrespective of this Agreement. 9.9 Modification or Amendment of Agreement; Operating Memoranda. (a) No change in, modification to, termination, or discharge of this Agreement in any form whatsoever shall be valid or enforceable unless it is in writing and signed by the Party to be charged therewith or its duly authorized representative. (b) The Parties acknowledge that the provisions of this Agreement require a close degree of cooperation and that new information and future events may make appropriate changes with respect to the details of the performance of the Parties under this Agreement. If, as a result of a Periodic Review provided for in Section 5.1, or otherwise from time to time prior to the Early Expiration Date or during any Extension Period, the Parties find that non-substantive refinements or adjustments that do not require any public review or approval and that concern details of the performance of the Parties hereunder are necessary or appropriate, they may effectuate such refinements or adjustments through a memorandum (individually, “Operating Memorandum”, and collectively, “Operating Memoranda”) approved by the Parties which, after execution, shall be attached to this Agreement as addenda and become a part hereof. Operating Memoranda must be executed on behalf of the City by its City Manager or designee, and on behalf of the Developer by its authorized representative. Operating Memoranda shall not require prior notice or approval by the City Council, and shall not constitute an amendment to this Agreement. -33- (c) Any substantive or significant modifications to the terms and conditions set forth in this Agreement, reduction in insurance or indemnity requirements, or waiver of any discretionary approval requirement, shall be processed as an amendment of this Agreement and must be approved by the Developer, and City Council. 9.10 Waiver. No waiver or any breach of any of the terms, covenants, agreements, restrictions, or conditions of this Agreement shall be construed to be a waiver of any succeeding breach of the same or other terms, covenants, agreements, restrictions, and conditions hereof. 9.11 Severability. If any term, covenant, or condition of this Agreement or the application thereof to any Person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such term, covenant, or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by Law. 9.12 Integrated Agreement. This Agreement, including the attached exhibits, contains the entire agreement of the parties and supersedes all prior and contemporaneous agreements and understandings, oral or otherwise, among the parties with respect to the matters contained in this Agreement and may not be modified or amended except as set forth in this Agreement. 9.13 Certificates. (a) On or before the Target Date set forth in the Schedule of Performance, the Developer shall provide to the City an incumbency certificate, in form and substance reasonably satisfactory and signed by a duly authorized officer of the Developer, certifying that the principals are duly authorized to execute this Agreement on behalf of the Developer. (b) On or before the Target Date set forth in the Schedule of Performance, the City shall provide to the Developer a copy of the resolution duly adopted by the City Council, evidencing that the City Manager is authorized to execute this Agreement on behalf of the City. (c) On or before the Target Date set forth in the Schedule of Performance, the City shall provide to the Developer a copy of the ordinance duly passed and adopted by the City Council, evidencing that the Mayor of the City is duly authorized to execute this Agreement on behalf of the City. 9.14 Counterparts. This Agreement may be executed in counterparts which taken together shall constitute one agreement. 9.15 Public Records. (a) The City is subject to the provisions of the California Public Records Act (Cal. Gov. Code § 6250, et seq.), (the “Act”). The City’s use and disclosure of public records are governed by the Act. -34- (b) In the event that any lawsuit, action, or other legal proceeding is brought against City by any person(s) or entity(ies) seeking the disclosure of the information Developer has provided to City under any theory and that City has refused to release to the requesting party after consultation and approval by Developer (collectively the “Actions”), Developer hereby agrees to release City from any such liability and to defend, indemnify and hold harmless City from any such Actions. Developer agrees and acknowledges that City has the sole and exclusive right to choose its legal counsel in its defense of the Actions, and Developer agrees to fully and promptly reimburse all legal fees and costs incurred by City in the defense of the Actions no later than thirty (30) days after Developer’s receipt of a reimbursement invoice with supporting documentation. Developer further agrees that any award of monetary damages, fees, and costs, or otherwise that may be legally imposed upon City in the Actions, relating to the information Developer has articulated as being exempt from disclosure under the Act or any other relevant laws, shall be fully and promptly paid by Developer to the Court, plaintiff(s) in the Actions, or any other third party as may be required by any such award no later than thirty (30) days after Developer’s receipt of City’s written demand for such payment unless earlier ordered by the Court. 9.16 Incorporation by Reference of Recitals. The Recitals are hereby incorporated into this Agreement by reference as if set forth herein in full. 9.17 Attorneys' Fees. In the event that any action or proceeding, including arbitration, is commenced by either the City or the Developer against the other to establish the validity of this Agreement or to enforce any one or more of its terms, the prevailing party in any such action or proceeding shall be entitled to recover from the other, in addition to all other legal and equitable remedies available to it, excepting any limitations set forth in this Agreement, its actual attorneys' fees and costs of litigation, including, without limitation, filing fees, service fees, deposition costs, arbitration costs and expert witness fees, including actual costs and attorneys' fees on appeal. [Signatures on Following Pages] -35- DISPOSITION AND DEVELOPMENT AGREEMENT Signatory Page CITY: Date: _____________, 2021 CITY OF PALM DESERT, a charter city, and municipal corporation By: KATHLEEN KELLY, Mayor APPROVED AS TO FORM: By: ROBERT W. HARGREAVES City Attorney -36- DISPOSITION AND DEVELOPMENT AGREEMENT Signatory Page DEVELOPER: Date: _____________________2021 CHANDI ENTERPRISES LLC, a California limited liability company By: NACHHATTAR SINGH CHANDI Managing Member APPROVED AS TO FORM: By: ROBERT PATTERSON, Counsel CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ) ) SS. County of ) On , 20 , 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 _____________________________ ATTACHMENT NO. 1 SCOPE OF DEVELOPMENT I. GENERAL The Project and all related public improvements shall be designed and constructed substantially in accordance with the provisions of this Agreement, including without limitation the Laws, and all specifications, drawings, plans, data, reports, maps, permit applications, land use applications, zoning applications, environmental review and disclosure documents and design review documents (collectively, “Plans and Specifications”) and related documents to be approved by the City pursuant hereto. The Developer and the Developer’s architects, engineers, General Contractor, and subcontractors shall coordinate with respect to the overall design, architecture, and nature of the improvements on the Project Site. In the event of any conflict between the contents of this Scope of Development and the Agreement, the provisions of the Agreement shall prevail. II. DEVELOPER’S IMPROVEMENTS Subject to the terms and conditions of this Agreement, including all attachments hereto, the Developer shall be responsible for the design and construction of all of the following improvements (collectively, the “Developer’s Improvements”): A. Multi-story mixed-use project consisting of 60 residential units above approx. 14,000 sf of retail consistent with One Eleven Development Code, San Pablo Improvement Plan, the General Plan and of sufficient design as expressed by City Council on November 15, 2018, subsequent approvals by public bodies and with review and final approval of Architectural Review Commission. B. All Conditions of Approval identified in the Existing Approvals. C. All Mitigation Measures identified in the Existing Approvals. III. ARCHITECTURE AND DESIGN The Developer’s Improvements shall be of high architectural quality and be sufficiently landscaped, as approved by the Architectural Review Committee. The Construction Documents and the Building Permit Application shall describe the architectural character intended for the Developer’s Improvements. ATTACHMENT NO. 2 FORM OF PROJECT BUDGET ATTACHMENT NO. 3 MAP OF PROJECT SITE; MAP SHOWING GENERAL LOCATION OF THE PROJECT ATTACHMENT NO. 4 LEGAL DESCRIPTION OF PROJECT SITE For City Property: All that certain real property situated in the County of Riverside, State of California, described as follows: APN: TOTAL 1.54 acres • 627-101-002 .35 acres • 627-101-017 .20 acres • 627-101-033 .25 acres • 627-101-061 .46 acres • 627-101-062 .17 acres • ROW .11 acres ATTACHMENT NO. 5 FORM OF CITY COST REIMBURSEMENT AGREEMENT [See following] Form of REIMBURSEMENT AGREEMENT Between CITY OF PALM DESERT a California municipal corporation and Chandi Enterprises, LLC, a California limited liability company REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") is made this ___ day of ________, 20__, by and between the City of Palm Desert, a California municipal corporation (the "City"), and Chandi Enterprises LLC, a California limited liability company registered to do business in the State of California (the "Applicant"). RECITALS This Agreement is made with respect to the following facts. A. The Applicant is in contract to purchase that certain real property ("Property") located within the City of Palm Desert, County of Riverside, California. The Property is more particularly described in attached Exhibit A. B. The Applicant is contemplating a development described as the __________________________________ which is referred to as the "Project." C. To provide the City with the planning, environmental and legal services, and other expertise and information necessary to the City's review process concerning the development of the Property, it is necessary for the City to access the services of various consultants for the Project beyond those whose fees are paid through traditional permit and application fees ("Consultants"). D. As a condition to the City's completion of the review process, the Applicant has agreed to reimburse the City for the Consultants’ costs and expenses related to the City's review process in the manner and amounts set forth in this Agreement. The Applicant's reimbursement of City under this Agreement will ensure that the City has the necessary resources to diligently and efficiently process the Applicant's Project. AGREEMENT NOW, THEREFORE, in consideration of the following mutual promises and agreements, City and Applicant agree as follows: 1. Incorporation of Recitals. The parties agree that the Recitals constitute the factual basis upon which the City and the Applicant have entered into this Agreement. The City and the Applicant each acknowledge the accuracy of the Recitals and agree that the Recitals are incorporated into this Agreement as though fully set forth at length. 2. City to Retain Consultants. As a necessary and indispensable part of its fact-finding process relating to the review and processing of the Applicant's proposed uses of the Property and Project, the City shall retain the services of Consultants as the City may deem necessary in its reasonable discretion. City shall provide Applicant with a list of City-approved plan checkers and inspectors prior to execution of this Agreement. A5-45 The Applicant agrees that, notwithstanding the Applicant's reimbursement obligations under this Agreement, Consultants shall be the contractors exclusively of the City and not of the Applicant. Except for those disclosures required by law including, without limitation, the California Public Records Act, all conversations, notes, memoranda, correspondence, and other forms of communication by and between the City and its Consultants shall be, to the extent permissible by law, privileged and confidential and not subject to disclosure to the Applicant. The Applicant agrees that it shall have no claim to, nor shall it assert any right in any reports, correspondence, plans, maps, drawings, news releases, or any and all other documents or work product produced by the Consultants. 3. Applicant to Cooperate with Consultants. The Applicant agrees to cooperate in good faith with the Consultants and City. The Applicant agrees that it will instruct its agents, employees, consultants, contractors, and attorneys to reasonably cooperate with the Consultants and to provide all necessary documents or information reasonably requested of them by the City and/or the Consultants; provided, however, that the foregoing shall not require the disclosure of any documents or information of the Applicant which by law is privileged, proprietary, confidential, and exempt from disclosure under the Public Records Act. 4. Applicant's Reimbursement of Costs and Expenditures. The Applicant shall reimburse the City for one hundred percent (100%) only of the actual costs and expenditures incurred after ________________[INSERT DATE OF DDA] by the City relative to the Consultant costs ("Costs".) The City has preliminarily reviewed the scope of work required and has estimated the Costs to be approximately Fifty Thousand Dollars ($50,000) (“Estimated Costs"). Within ten (10) calendar days of the execution of this Agreement, the Applicant shall submit the initial deposit in the amount of $50,000 to cover 100% of the consultant costs The City shall provide copies of monthly invoices prepared by consultants, with confidential information removed, and the applicant shall make additional deposits to adequately cover the anticipated consultant costs. 5. Applicant's Approval of Excess Costs and Expenditures. City shall not exceed the Estimated Consultants Costs without the Applicant’s prior written approval. The City may incur aggregate Costs up to the Estimated Costs, subject to the reasonable approval of the Applicant. The City shall use reasonable good faith efforts to consult with the Applicant incurring Costs that exceed the Estimated Costs ("Excess Costs"). The Applicant's obligation to reimburse the City for Excess Costs which exceed the Estimated Costs shall be contingent upon, the City's providing the Applicant with written notice of the amendment of the “Estimated Costs” to be performed by Consultants and the estimated Excess Costs prior to the commencement of work. The City shall not incur Excess Costs without the prior written approval of the Applicant; however, in the event that Applicant does not approve of Excess Costs, City shall not be required to continue the processing of the Project For purposes of this Section, the City shall be deemed to have consulted with the Applicant when the City has provided written notice to the Applicant that the City A5-46 reasonably anticipates that it will incur, or has incurred, Excess Costs. If, after consultation, the Applicant disagrees with the City's incurring of Excess Costs, then the Applicant's may terminate this Agreement pursuant to Section 9 of this Agreement, subject to the Applicant's obligation to reimburse the City for all costs incurred by the City prior to the date of termination, whether or not yet paid by the City to the Consultants. 6. Evidence of Payment of Consultant Costs. Immediately following the City's disbursement of funds to Consultant pursuant to an approved Professional Services Agreement or similar retainer agreement with the Consultant(s), the City shall provide the Applicant with such reasonable documentation as the Applicant may request to substantiate any demands for payment by Consultant(s). 7. City Discretion. Subject to the Development and Disposition Agreement dated _________________ between City and Developer, applicant understands and agrees that City reserves reasonable discretion and authority regarding the (a) contents, scope, analysis, and conclusions of the Consultant(s) and Consultant documents, including plans, staff reports, ordinances, resolutions, maps, conditions, mitigation measures, and environmental review documents and findings, (c) and City determinations and decisions on the Project. Nothing in this Agreement shall in any way commit or obligate City to approve any particular development project application or to support the development of any part of it. 8. Term. The term of this Agreement shall commence on the date that this Agreement is approved by the City and fully executed by the parties and shall terminate when all work required been completed to the City's reasonable satisfaction and the Applicant has satisfied all of its obligations under this Agreement including, without limitation, the obligation to reimburse the City for Estimated Costs and Excess Costs, whether or not paid by the City to Consultant(s) prior to the date of termination. The Applicant's obligation to reimburse the City as provided in this Agreement shall survive the termination of this Agreement pursuant to Section 9. 9. Early Termination. The City may terminate this Agreement prior to the term set forth in Section 8 above, without cost or liability to the City, upon thirty (30) days prior written notice to the Applicant. The Applicant may in its reasonable and sole discretion terminate this Agreement prior to the end of the term set forth in Section 8 above upon thirty (30) days prior written notice to the City; provided, however, that the Applicant has satisfied all of its obligations under this Agreement to the date of termination regarding reimbursement to the City of both Estimated Costs and Excess Costs and, furthermore, that the Applicant has given City written notice withdrawing its application(s) for the Project. Within two (2) City working days following either the City's decision to terminate this Agreement or the City's receipt of written notice indicating the Applicant's decision to terminate this Agreement, the City shall notify the Consultant(s) and instruct them to cease work. Consultant(s) shall be instructed to bill the City for any work completed prior to the date of termination. A5-47 10. Assignability. This Agreement may not be assigned by either party without the prior and express written consent of the other party, which consent shall not be unreasonably withheld. In determining whether to approve a request by the Applicant to assign this Agreement, the City may consider, among other things, the proposed assignee's financial status and commitment to the Project. Any attempted assignment of this Agreement not in compliance with the terms of this Agreement shall be null and void and shall confer no rights or benefits upon the assignee. 11. No Oral Modifications. This Agreement represents the entire understanding of the City and the Applicant and supersedes all other prior or contemporaneous written or oral agreements pertaining to the subject matter of this Agreement. This Agreement may be modified, only by a writing signed by both the authorized representatives of both the City and the Applicant. 12. Binding Upon Successors. This Agreement and each of its terms shall be binding upon the City, the Applicant, and their respective officers, elected officials, employees, agents, contractors, and permitted successors and assigns. 13. Legal Challenges. Nothing herein shall be construed to require City to defend any third party claims and suits challenging any action taken by the City with regard to any procedural or substantive aspect of the City’s approval of the development of the Property, the environmental process, or the proposed uses of the Property. The Applicant may, however, in its sole and absolute discretion appear as real party in interest in any such third party action or proceeding, and in such event, it and the City shall defend such action or proceeding and the Applicant shall be responsible and reimburse the City for whatever legal fees and costs, in their entirety, including actual attorneys' fees, which may be incurred by the City in defense of such action or proceeding. The City shall have the absolute right to retain such legal counsel as the City deems necessary and appropriate and the Applicant shall reimburse the City for any and all attorneys' fees and costs incurred by the City as a result of such third party action or proceeding; provided, however, Applicant may, at any time, notify City in writing of its decision to terminate such reimbursement obligation and, thereafter, in the event that the City decides to continue the defense of such third party action or proceeding, Applicant shall have no further obligation to reimburse City for its attorney fees and costs. 14. Attorneys' Fees. In the event that any action or proceeding, including arbitration, is commenced by either the City or the Applicant against the other to establish the validity of this Agreement or to enforce any one or more of its terms, the prevailing party in any such action or proceeding shall be entitled to recover from the other, in addition to all other legal and equitable remedies available to it, its actual attorneys' fees and costs of litigation, including, without limitation, filing fees, service fees, deposition costs, arbitration costs and expert witness fees, including actual costs and attorneys' fees on appeal. 15. Jurisdiction and Venue. This Agreement is executed and is to be performed in the City of Palm Desert, Riverside County, California, and any action or proceeding brought relative to this Agreement shall be heard in the appropriate court in A5-48 the County of Riverside, California. The City and the Applicant each consent to the jurisdiction of the Court in any such action or proceeding. 16. Severability. If any term or provision of this Agreement is found to be invalid or unenforceable, the City and the Applicant both agree that they would have executed this Agreement notwithstanding the invalidity of such term or provision. The invalid term or provision may be severed from the Agreement and the remainder of the Agreement may be enforced in its entirety. 17. Headings. The headings of each Section of this Agreement are for the purposes of convenience only and shall not be construed to either expand or limit the express terms and language of each Section. 18. Representations of Authority. Each party signing this Agreement on behalf of a party which is not a natural person hereby represents and warrants to the other party that all necessary legal prerequisites to that party's execution of this Agreement have been satisfied and that he or she has been authorized to sign this Agreement and bind the party on whose behalf he or she signs. 19. Notices. Notices required under this Agreement shall be sent to the following: If to the City: City Manager City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 If to the Applicant: Nachhattar Singh Chandi CHANDI ENTERPRISES, LLC 42270 Spectrum St. Indio CA 92203-9513 Phone: 760-396-9260 Notices given pursuant to this Agreement shall be deemed received as follows: (1) If sent by United States Mail - five (5) calendar days after deposit into the United States Mail, first-class postage prepaid. (2) If by facsimile - upon transmission and actual receipt by the receiving party. (3) If by express courier service or hand delivery - on the date of receipt by the receiving party. A5-49 The addresses for notices set forth in this Section 19 may be changed upon written notice of such change to either the City or the Applicant, as appropriate. Dated: ________________________ CITY OF PALM DESERT a California municipal corporation By: ______________________________ Kathleen Kelly, Mayor ATTEST: By: ______________________________ M. Gloria Sanchez, Interim City Clerk APPROVED AS TO FORM: By: ______________________________ Robert W. Hargreaves, City Attorney Dated: _________________________ APPLICANT: CHANDI ENTERPRISES LLC By: _______________________________ Nachhattar Singh Chandi Managing Member Dated: _________________________ APPROVED AS TO FORM: By: __________________________ Robert Patterson, Counsel Dated: _________________________ CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT State of California ) ) SS. County of ) On , 20 , 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 _____________________________ Exhibit "A" Description of the Property Approximately 1.54 acres in the City of Palm Desert, County of Riverside, California, known as APN: • 627-101-002 .35 acres • 627-101-017 .20 acres • 627-101-033 .25 acres • 627-101-061 .46 acres • 627-101-062 .17 acres • ROW .11 acres ATTACHMENT NO. 6 SCHEDULE OF PERFORMANCE In the event of any conflict between the contents of the Schedule of Performance and the Agreement, the provisions of the Agreement shall prevail. ACTION TARGET DATE 1. Execution of Agreement and City Cost Reimbursement Agreement by Developer. Developer shall execute and deliver Agreement and City Cost Reimbursement Agreement to City May ___, 2021 2. Execution of Agreement and City Cost Reimbursement Agreement by City. City shall hold public hearings to consider and approve or disapprove Agreement and City Cost Reimbursement Agreement. If approved, City shall execute Agreement (the “Effective Date”) May___, 2021 3. Submission of all Implementing Actions. Developer shall submit all agreements pertaining to the Implementing Actions to City for final review and approval. (§1.3(b), §5.2(a)) Not later than 45 days prior to the Close of Escrow. [Intentionally left blank] 4. Submission of 100% Rough Grading Plans. The Developer shall submit to the City 100% Rough Grading Plans, Rough Grading Permit Application, and associated fees. May 31, 2021. 5. Approval – 100% Rough Grading Plans. The City shall approve or disapprove the 100% Rough Grading Plans for the entire site. Prior to close of escrow. 6. Submission of 100% Construction Drawings and Cost Estimate. Developer shall prepare and submit to the City 100% Construction Drawings and documents for the Project, and costs associated. July 1, 2021. A6-53 ACTION TARGET DATE 7. Submit Building Permit Application. Developer shall submit to City Building Permit Application with 100% construction documents. (§4.3(a)(ii)) July 1, 2021. 8. City acceptance of complete Construction Documents and Building Permits. (§4.3) Prior to close of escrow. 9. Submission of Notice of Loan Documents. Developer shall submit to City notice of binding Loan Documents from Private Construction Lender for construction financing to close at Close of Escrow. (§5.2(d)) No later than 30 days prior to Close of Escrow 10. Submission of Construction Contracts. Developer shall submit to the City construction contracts and executed guaranteed maximum price construction contracts, fixed-price construction contracts, or cost- plus contracts, as applicable, with respect to the Developer’s Improvements, based on signed bids from Developer’s contractors ( for the Project. (§5.2(f)) No later than 30 days prior to Close of Escrow 11. City Review of Items 9-10 above. Prior to close of escrow. 12. Submission of Certificates, Insurance. (§4.8.1, §4.11) Prior to close of escrow. 13. City Review, Certificates, Insurance, Prior to close of escrow. 14. Open Escrow Account. The City and Developer shall open an escrow with the Escrow Agent. (§6.1) Within 2 business days of the Effective Date. 15. Execution and Delivery of City Property, City Property Title, etc. The City and Developer shall complete, execute and deliver into escrow the City Property Title (including memorandum relating thereto), together with all documents and supplemental escrow instructions required to close escrow for conveyance of City Property Title from the City to Developer. (§6.2) Prior to close of escrow. A6-54 ACTION TARGET DATE 16. Escrow Fees, Charges. The City and Developer shall pay their respective fees, charges, and other costs into escrow. (§6.4) Prior to close of escrow. 17. Close of Escrow. The City shall convey to the Developer title to the City Property. (§6.3) Not more than 8 months after the Effective Date, unless extended upon payment of additional deposit, in which case 14 months after the Effective Date. 18. Commencement of Construction Mobilization The Developer shall commence construction of the Project. (§6.3.2) Within four months following close of escrow. 19. Completion of Construction of Project. The Developer shall complete construction of the Project. (§6.4) Within 24 months following commencement of construction. 20. Termination of Agreement. This Agreement shall automatically terminate in accordance with Section 8.1.2 and shall be subject to termination if any of the events listed in Section 8.1 occur. (§8.1; §8.1.2) Upon completion and issuance of a certificate of occupancy of all improvements for the Project. ATTACHMENT NO. 7 FORM RIGHT OF ENTRY AGREEMENT RIGHT OF ENTRY AGREEMENT This Right of Entry Agreement ("Agreement") is made as of ______________, by and between the City of Palm Desert (“City”), and _________________ (“Licensee”). City and Licensee are referred to collectively as the “Parties” or may be referred to individually as a “Party.” RECITALS: A. The City is the owner of certain real property located at ______________, Palm Desert, California 92260 and commonly referred to as Assessor Parcel Numbers ___________ (the “Property”) and shown on Exhibit “A” attached hereto. B. The Parties wish to enter into this Agreement whereby the City will allow the Licensee to enter onto the Property, on a temporary basis, for the purpose of conducting due diligence on the Property in furtherance of that Disposition and Development Agreement, dated __________, between the Parties (“DDA”) NOW, THEREFORE, the Parties hereto agree as follows: 1. Right of Entry. The City hereby grants to Licensee, and its employees, contractors, subcontractors, suppliers, vendors, and agents (“Permitted Parties”), the temporary right to enter and use the Property for the Area Use. 2. Term. This Agreement shall commence upon the execution by the Parties and terminate on ______________, or as otherwise terminated earlier. 3. Compensation. Licensee shall pay to the City $ no consideration for use of the Property. 4. Condition of Property. Licensee accepts the property in its “as is” condition, with all faults. Licensee acknowledges and agrees that Licensee is entering the Property under this Agreement based on Licensee's own investigations and knowledge of the Property and that, except as otherwise specifically stated in this Agreement and the DDA, neither City nor any agent of City, has made any representation or warranty whatsoever, express or implied, with regard to the physical condition of the Property or the suitability of the Property for any particular purpose or use, including, without limitation, any representations or warranties regarding the applicability or non-applicability of any laws, the soil or subsoil, surface or subsurface conditions, topography, possible hazardous substances contamination, fill, drainage, access to public roads, availability of utilities, the existence of underground storage tanks, applicability of or compliance with any environmental laws or any other matter of any nature whatsoever. The City is not responsible for damage to or loss by theft of Licensee’s property located in or on the Property. A7-57 5. Responsibilities of Licensee. (a) The DDA requirements of the Project are incorporated herein by this reference and, as applicable, shall apply to the Property. The Licensee agrees to maintain the Property in good condition at all times keeping it free of trash and other debris and shall maintain a neat and orderly condition. (b) The Licensee may, at its sole cost and expense, install and maintain temporary fencing, security equipment, security lighting or other equipment Licensee deems necessary for the use of the site for the duration of this agreement. 6. Maintenance and Condition of Property. Licensee shall provide photo documentation of the Property prior to use of the Property and after vacating the Property. Licensee shall be responsible for any damage done to the Property by Licensee or its Permitted Parties and, upon departing from or being required to vacate the Property, Licensee will repair and restore all portions of the Property used or occupied by Licensee in all material respects to substantially the same condition as existed prior to Licensee’s entry onto the Property, subject to normal wear and tear. 7. Hazardous Substances. (a) Hazardous Substances Defined. Hazardous Substances shall mean any (a) substance, product, waste, or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to CERCLA, 42 U.S.C. § 9601, et seq.; The Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. § 6901, et seq. (“RCRA”); The Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; The Clean Water Act, 33 U.S.C. § 1251, et seq.; The Hazardous Waste Control Act, California Health and Safety Code (“H. & S.C.”) § 25100, et seq.; the Hazardous Substance Account Act, H. & S.C. § 25330, et seq.; the California Safe Drinking Water and Toxic Enforcement Act, H. & S.C. § 25249.5, et seq.; Underground Storage of Hazardous Substances H.& S.C. § 25280, et seq.; the Carpenter-Presley-Tanner Hazardous Substance Account Act (H & S.C. § 25300 et seq.); the Hazardous Waste Management Act, H. & S.C. §§ 25170.1, et seq.; Hazardous Materials Response Plans and Inventory H. & S.C. § 25001 et seq.; or the Porter-Cologne Water Quality Control Act, Water Code § 13000, et seq., all as amended, or any other federal, state or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect, (b) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes, (c) petroleum, crude oil or any substance which contains gasoline, diesel fuel or other petroleum hydrocarbons other than petroleum and petroleum products contained within regularly operated motor vehicles, and (d) polychlorinated biphenyls (PCB), radon gas, urea- formaldehyde, asbestos and lead. (b) Hazardous Substances Indemnity. Licensee expressly agrees to and shall indemnify, defend (with counsel approved by City), release and hold the City, A7-58 its officers, officials, agents and employees harmless from and against any liability, loss, fine, penalty, fee, charge, lien, judgment, damage, entry, claim, cause of action, suit, proceeding (whether legal or administrative), remediation, response, removal, or clean- up and all costs and expenses associated therewith, and all other costs and expenses (including, but not limited to, attorneys’ fees, expert fees, and court costs) in any way related to the disposal, treatment, transportation, manufacture, or use of any Hazardous Substances on, in, under, or about the Property by Licensee, or its respective officers, directors, agents, subcontractors, servants, employees or developers, or by any other third party acting under the control or request of Licensee, other than the City and its officers, employees, agents, and representatives unless caused by the acts, omissions, negligence, sole negligence or willful misconduct of the City, its officers, employees, agents and representatives. This indemnity, defense and hold harmless obligation shall survive the expiration or termination of this Agreement. Provided, however, Licensee’s obligations under this Section 7 shall not extend to, and Licensee shall not be responsible for, Hazardous Substances not introduced on to the Property by Licensee, or its respective officers, directors, agents, subcontractors, servants, employees, or developers, or by any other third party acting under the control or request of Licensee. 8. Indemnification. To the maximum extent allowed by law, Licensee hereby agrees to indemnify, defend, assume all liability for and hold harmless the City and its officers, employees, agents, and representatives from all actions, claims, suits, penalties, obligations, liabilities, damages to property, costs, and expenses (including, without limitation, any fines, penalties, judgments, settlements, actual litigation expenses and experts’ and actual attorneys’ fees), liens filed against the Property (except those claims covered by section 7), or bodily and/or personal injuries or death to any persons arising at any time during and arising out of or in any way connected with the Licensee’s use of the Property or performance of this Agreement, unless caused by the sole negligence or willful misconduct of the City, its officers, employees, agents, and representatives. This Section 8 shall survive the expiration or termination of this Agreement. 9. Insurance. The insurance requirements of the Project in the DDA are incorporated herein by this reference. Licensee shall procure and maintain in full force and effect for the duration of this Agreement said insurance as required to cover its activities on the Property and performance of this Agreement. 10. Compliance with Laws/Permits. Licensee shall, in all activities undertaken pursuant to this Agreement, comply and cause its Permitted Parties to comply with all federal, state, and local laws, statutes, orders, ordinances, rules, regulations, plans, policies, and decrees. Without limiting the generality of the foregoing, Licensee, at its sole cost and expense, shall obtain any and all permits which may be required by any law, regulation, or ordinance for the Area Use. 11. Inspection. The City and its representatives, employees, agents, or independent contractors may, but shall not be required to, enter and inspect the Property or any portion thereof at any time and from time to time at reasonable times to verify Licensee’s compliance with this Agreement. A7-59 12. Not a Real Property Interest; Liens. It is expressly understood that this Agreement does not in any way whatsoever grant or convey any permanent easement, lease, fee, or other interest in the Property to Licensee. This Agreement is not exclusive and the City reserves the right to grant other rights of entry within the vicinity of the Property. Licensee shall not permit to be placed against the Property, or any part thereof, any design professionals’, mechanics’, materialmen’s contractors’ or subcontractors’ liens with regard to its actions pursuant to this Agreement. 13. Termination and Remedies. If Licensee shall be in material breach of any of its obligations under this Agreement, City shall have the right to terminate Licensee’s rights under this Agreement upon five (5) day written notice to Licensee if Licensee, during such five (5) day term (excluding weekends and holidays recognized by the City) fails to cure the breach. In the event of termination hereof due to a material breach by Licensee of any provision hereunder, City may re-enter and take exclusive possession of the Property and remove all persons or things therefrom, to the maximum extent permitted by law, or by such legal process as they deem appropriate. City may also seek any other remedy available at law or in equity, including but not limited to a suit for damages for any compensable breach or noncompliance herewith or an injunction. All remedies provided herein or by law or equity shall be cumulative and not exclusive. 14. Continuing Obligations, Liability. No termination of this Agreement shall release Licensee from any liability or obligation hereunder resulting from any acts, omissions, or events happening prior to the termination of this Agreement. 15. Miscellaneous. Licensee shall not assign or otherwise transfer its rights or obligations hereunder without City’s prior written consent, which consent shall not unreasonably be withheld. This instrument constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and all prior and contemporaneous agreements, representations, and understandings of the Parties hereto, oral or written, are hereby superseded and merged herein. No supplement, modification, or amendment of this Agreement shall be binding unless in writing and executed by the Parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions, nor shall any waiver be binding unless executed in writing by the Party making the waiver. This instrument shall be construed and enforced in accordance with, and governed by, the laws of the State of California. Venue shall be Riverside County. The headings of this instrument are for purposes of reference only and shall not limit or define the meaning of the provisions hereof. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. Neither this instrument nor a short form memorandum or assignment hereof shall be filed or recorded in any public office without City’s prior written consent. Should any term of this Agreement be deemed unlawful or unenforceable by a court of competent jurisdiction, that provision shall be severed and the remaining terms may continue to be fully enforced. The persons signing below represent and warrant that they have the requisite authority to bind the entities on whose behalf they are signing. A7-60 IN WITNESS WHEREOF, the Parties hereto have executed this instrument as of the dates below. CITY OF PALM DESERT By: L. Todd Hileman City Manager ATTEST: By: M. Gloria Sanchez, Interim City Clerk APPROVED AS TO FORM: By:_____________________________ Best Best & Krieger LLP City Attorney REVIEWED BY: By:_____________________________ Martin Alvarez, Director of Economic Development DEVELOPER: CHANDI ENTERPRISES LLC, a California limited liability company By: Nachhattar Singh Chandi Managing Member ATTACHMENT NO. 8 FORM OF OPTION AGREEMENT ATTACHMENT NO. 8 RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) ) City of Palm Desert ) Attn: City Manager ) 73510 Fred Waring Drive ) Palm Desert, CA 92260 ) ) ) This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383. OPTION AGREEMENT This OPTION AGREEMENT is entered into as of __________________, 2021_, by and between the CITY OF PALM DESERT a chartered municipal corporation (the “City”), and CHANDI ENTERPRISES LLC, a California limited liability company (“Developer”). RECITALS A. Developer and City have executed a Disposition and Development Agreement (the “DDA”), dated as of April ___, 2021, pursuant to which Developer has purchased that certain approximately 1.54 acres of real property in the County of Riverside, State of California commonly referred to as Assessor’s Parcel Numbers 627-101-002, 627-101- 017, 627-101-033, 627-101-061, 627-101-062 and a right of way consisting of approximately .11 acres, more particularly described in Exhibit “A” attached hereto and incorporated herein (the “Site”). B. Pursuant to Section 6.1 of the DDA, the Developer has agreed to grant to City an option to repurchase the Site upon the occurrence of certain events, as set forth herein. C. Developer desires to grant to City an option to purchase the Site on the terms and conditions set forth herein below. For purposes of this Option Agreement, “Site” shall also be deemed to include any and all improvements located on the real property. AGREEMENT NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants and conditions contained herein, the parties hereto agree as follows: 1. Grant of Option. Developer grants to City an option (“Option”) to purchase the Site on the terms and conditions set forth in this Option Agreement. The purchase price payable by City to the Developer for the Site shall be the Purchase Price for the Site under the DDA, plus the fair market value of the Improvements on the Site, as of the date A8-63 of the Exercise Notice (“Option Price”). The agreed fair market value of the Improvements shall be reflected in a memorandum signed by Developer and City. In the event Developer and City are unable to agree on the fair market value of the Improvements on the Site within ten (10) days of delivery of the Exercise Notice, the fair market value of the Improvements on the Site shall be determined by appraisal, as follows: If Developer and City cannot agree to the fair market value, each party shall immediately retain, at its expense, an MAI appraiser to appraise the fair market value of the Improvements on the Site. Each party shall be advised promptly of the appraiser selected by the other, and each shall receive a written and signed copy of the other’s appraisal report. The average of the two appraisals of fair market value shall become fair market value; provided, however, if the difference between the two appraisals exceed 10% of the lower appraisal the two appraisers shall immediately select a third MAI appraiser and in the event of their failure to do so, the presiding judge of the Superior Court of Riverside County shall upon request of either party appoint the third appraiser. Any valuation then agreed upon by a majority of the three appraisers shall be accepted as final and conclusive between the parties hereto and by any court of competent jurisdiction and shall become the fair market value for the Improvements on the Site. Should a majority of the three appraisers not be able to agree upon the fair market value, then the average of the three appraisers’ reports shall become the fair market value for the Site or applicable parcel and be binding and conclusive upon the parties. Each party will receive a written and signed copy of the third appraiser’s report. The expenses and cost of the third appraiser and any cost incurred to obtain said third appraisal shall be divided equally between Developer and City. 2. Term and Consideration for Option. The term of the Option (“Option Term”) shall commence on the date of this Option Agreement and shall expire upon the recordation of a “Release of Option Agreement” with respect to the Site. City shall execute and record the Release of Option Agreement in form and substance satisfactory to Developer within ten days of the issuance of a final Certificate of Occupancy with respect to the Site. 3. Exercise of Option. The Option may be exercised by City’s delivery to Developer of written notice of such exercise (“Exercise Notice”) only upon the occurrence of any of the following defaults of the DDA (“Exercise Events”): (a) Developer shall fail to obtain building permits as required by Section 6.1 of the DDA within four (4) months of the Close of Escrow; or (b) Developer shall fail to commence construction as required Section 6.4 by the DDA within four (4) months of the Close of Escrow; or (c) Developer shall abandon or suspend construction of the Improvements required by the DDA for a period of sixty (60) days after written notice thereof from the City; or (d) Developer shall, contrary to the provisions set forth in the DDA, transfer or suffer any involuntary transfer in violation of Section 2.1(b) of the DDA, and such transfer has not been approved by the City or rescinded within thirty (30) days of notice thereof from City to Developer; or A8-64 (e) At any point following the Close of Escrow, Developer is subject to a Developer Event of Default, as defined in the DDA, under the Scope of Development attached as Exhibit “A” to the DDA or its obligations under the conditions of approval as provided in Section II.B in the Scope of Development which default remains uncured after any applicable cure period under Section 7.1 or meet and confer period under Section 5.1 of the DDA. In the event that City exercises the Option, but the Developer cures the default of the DDA prior to the sale of the Site to City, City’s exercise of the Option shall be deemed revoked. The revocation of the exercise of the Option shall not terminate this Option Agreement or preclude City from subsequently exercising the Option upon a later occurrence of one or more of the Exercise Events. At any time prior to the sale of the Site to the City, the Developer’s lender holding the construction deed of trust on the Site property may cure the Developer’s default and the City will treat the same as performance by the Developer. In the event that the Lender cures Developer’s default prior to the sale to the City, Lender may take any and all actions in its reasonable discretion needed to complete the Project under the DDA. 4. Escrow and Completion of Sale. Within five (5) days after City has exercised the Option, or as soon thereafter as reasonably practicable, an escrow shall be opened with an escrow company mutually acceptable to City and Developer for the conveyance of the Site to City. City shall deposit the Option Price in escrow no later than one (1) business day prior to the anticipated close of escrow date. City’s obligation to close escrow shall be subject to City’s approval of a then-current preliminary title report and, at City’s option, environmental and other site testing. Any exceptions shown on such preliminary title report created on or after the Developer’s acquisition of the Site shall be removed by Developer at its sole expense prior to the close of escrow pursuant to this Section 4 unless such exception(s) is(are) accepted by City in its reasonable discretion; provided, however, that City shall accept the following exceptions to title: (i) current taxes not yet delinquent, (ii) matters affecting title existing on the date of Developer’s acquisition of the Site, (iii) liens and encumbrances in favor of the City of Palm Desert, and (iv) matters shown as printed exceptions in the standard form ALTA owner’s policy of title insurance. The parties shall each be responsible for one-half of the escrow fees, documentary transfer taxes, recording fees, and any other costs and expenses of the escrow, and the Developer shall be responsible for the cost of an ALTA owner’s policy of title insurance to be provided to the City. City shall have thirty (30) days after exercise of the Option to enter upon the Site to conduct any tests, inspections, investigations, or studies of the condition of the Site. Developer shall permit City access to the Site for such purposes. City shall indemnify, defend, and hold harmless Developer and its officers, directors, shareholders, partners, employees, agents, and representatives from and against all claims, liabilities, or damages, and including expert witness fees and reasonable attorney’s fees and costs, caused by City’s activities with respect to or arising out of such testing, inspection, or investigatory activity on the Site. Escrow shall close promptly after acceptance by City of the condition of title and the physical and environmental condition of the Site. Until the Closing, the terms of the DDA and the documents executed and recorded pursuant thereto shall remain in full force and effect. A8-65 5. Failure to Exercise Option. If the Option is not exercised in the manner provided in Section 3 above before the expiration of the Option Term, the Option shall terminate. Within five business days after receipt of the written request of Developer, City shall cause a quitclaim deed terminating or releasing any and all rights City may have to acquire the Site (“Quitclaim Deed”) to be recorded in the Official Records of Riverside, California. 6. Assignment and Nomination. City shall not assign its interest hereunder without the approval of the Developer, which may be given or withheld in Developer’s sole and absolute discretion; provided that City may nominate another person or entity to acquire the Site, and the identity of such nominee shall not be subject to the approval of the Developer. 7. Title. Following the date hereof, except as permitted by the DDA (including, but not limited to a deed of trust), Developer agrees not to cause, and shall use commercially reasonable efforts not to permit, any lien, easement or encumbrance to be recorded against the Site without City’s prior written approval, such approval not to be unreasonably withheld. 8. Representations and Warranties of Developer. Developer hereby represents, warrants and covenants to City as follows, which representations and warranties shall survive the exercise of the Option and the Close of Escrow: (a) that this Option Agreement and the other documents to be executed by Developer hereunder, upon execution and delivery thereof by Developer, will have been duly entered into by Developer and will constitute legal, valid, and binding obligations of Developer; (b) neither this Option Agreement nor anything provided to be done under this Option Agreement violates or shall violate any contract, document, understanding, agreement or instrument to which Developer is a party or by which it is bound; and (c) Developer shall pay, prior to delinquency, any and all real property taxes and assessments which affect the Site. Developer agrees to indemnify, protect, defend, and hold City and the Site harmless from and against any damage, claim, liability, or expense of any kind whatsoever (including, without limitation, reasonable attorneys’ fees and fees of expert witnesses) arising from or in connection with any breach of the foregoing representations, warranties, and covenants. Such representations and warranties of Developer shall be true and correct on and as of the date of this Option Agreement and on and as of the date of the Close of Escrow. A8-66 9. Representations and Warranties of City. City hereby represents, warrants, and covenants to Developer, as follows, which representations and warranties shall survive the Close of Escrow: (a) that this Option Agreement and the other documents to be executed by City hereunder, upon execution and delivery thereof by City, will have been duly entered into by City and will constitute legal, valid, and binding obligations of City, and (b) neither this Option Agreement, nor anything provided to be done under this Option Agreement, violates or shall violate any contract, document, understanding, agreement, or instrument to which City is a party or by which it is bound. City agrees to indemnify, protect, defend, and hold Developer and the Site harmless from and against any damage, claim liability, or expense of any kind whatsoever (including, without limitation, reasonable attorneys’ fees and fees of expert witnesses) arising from or in connection with any breach of the foregoing representations, warranties, and covenants. Such representations and warranties of City and any other representations and warranties of City contained elsewhere in this Option Agreement shall be true and correct on and as of the date of this Option Agreement and on and as of the date of the Close of Escrow. 10. General Provisions. 10.1 Paragraph Headings. The paragraph headings used in this Option Agreement are for purposes of convenience only. They shall not be construed to limit or extend the meaning of any part of this Option Agreement. 10.2 Notices. Any notice, demand, approval, consent, or other communication required or desired to be given under this Option Agreement shall be in writing and shall be either personally served, sent by telecopy, mailed in the United States mails, certified, return receipt requested, postage prepaid, or sent by other commercially acceptable means, addressed to the party to be served with the copies indicated below, at the last address given by that party to the other under the provisions of this section. All communications shall be deemed delivered at the earlier of actual receipt, the next business day after deposit with Federal Express or other overnight delivery service or two (2) business days following mailing as aforesaid, or if telecopied, when sent, provided a copy is mailed or delivered as provided herein: To Developer: Chandi Enterprises LLC 42270 Spectrum Street Indio, CA 92203 With a copy to: Robert Patterson SBEMP 1800 East Tahquitz Canyon Way Palm Springs, CA 92262 A8-67 To City: City of Palm Desert Attn: City Manager 73510 Fred Waring Drive Palm Desert, CA 92260 10.3 Binding Effect. The terms, covenants, and conditions of this Option Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, and transferees. 10.4 Entire Agreement. This Option Agreement sets forth the entire agreement between the parties hereto respecting the Option, and supersedes all prior negotiations and agreements, written or oral, concerning or relating to the subject matter of this Option Agreement. 10.5 California Law. This Option Agreement shall be governed by the laws of the State of California and any question arising hereunder shall be construed or determined according to such laws. 10.6 Time of the Essence. Time is of the essence of each and every provision of this Option Agreement. 10.7 Counterparts. This Option Agreement may be signed by the parties hereto in duplicate counterparts which together shall constitute one and the same agreement between the parties and shall become effective at such time as both of the parties shall have signed such counterparts. 10.8 Attorneys’ Fees. If either party commences an action against the other to enforce any of the terms hereof or because of the breach by either party of any of the terms hereof, the losing party shall pay to the prevailing party reasonable attorneys’ fees, costs, and expenses incurred in connection with the prosecution or defense of such action, including appeal of and/or enforcement of a judgment. 10.9 Computation of Time. All periods of time referred to in this Option Agreement shall include all Saturdays, Sundays, and state or national holidays, unless the period of time is specified as business days (which shall not include Saturdays, Sundays, and state or national holidays), provided that if the date or last date to perform any act or give any notice with respect to this Option Agreement shall fall on a Saturday, Sunday or state or national holiday, such act or notice may be timely performed or given on the next succeeding day which is not a Saturday, Sunday or state or national holiday. 10.10 Definition of Terms. Terms not otherwise defined in this Option Agreement are defined in the DDA. A8-68 IN WITNESS WHEREOF, this Option Agreement is executed by the parties hereto on the date first above written. CITY: CITY OF PALM DESERT a California municipal corporation By: __________________________ Kathleen Kelly, Mayor ATTEST: By: __________________________ M. Gloria Sanchez Interim City Clerk DEVELOPER: CHANDI ENTERPRISES LLC, a California limited liability company By: _____________________________ Nachhattar Singh Chandi Managing Member Dated: _____________________________ APPROVED AS TO FORM: By: __________________________ Robert W. Hargreaves, City Attorney Dated: __________________________ EXHIBIT “A” TO OPTION AGREEMENT LEGAL DESCRIPTION [to be inserted] [This page has intentionally been left blank.] CITY OF PALM DESERT PALM DESERT PLANNING COMMISSION MINUTES TUESDAY, DECEMBER 15, 2020 – 6:00 P.M. ZOOM VIRTUAL MEETING I. CALL TO ORDER Chair Lindsay Holt called the meeting to order at 6:00 p.m. II. ROLL CALL Present: Chair Lindsay Holt Vice-Chair John Greenwood Commissioner Nancy DeLuna Commissioner Ron Gregory Commissioner Joseph Pradetto Also Present: Craig Hayes, Assistant City Attorney Ryan Stendell, Director of Community Development Eric Ceja, Principal Planner Kevin Swartz, Associate Planner Wayne Olson, Senior Management Analyst Amy Lawrence, Management Analyst Deborah Glickman, Business Advocate Monica O’Reilly, Management Specialist II III. PLEDGE OF ALLEGIANCE Commissioner Joseph Pradetto led the Pledge of Allegiance. IV. SUMMARY OF COUNCIL ACTIONS None V. ORAL COMMUNICATIONS None MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 2 VI. CONSENT CALENDAR A. MINUTES of the Regular Planning Commission meeting of November 17, 2020. Rec: Approve as presented. Upon a motion by Vice-Chair Greenwood, seconded by Commissioner DeLuna, and a 4-0-1 vote of the Planning Commission, the Consent Calendar was approved as presented (AYES: DeLuna, Greenwood, Gregory, and Holt; NOES: None; ABSENT: None; ABSTAIN: Pradetto). VII. CONSENT ITEMS HELD OVER None VIII. NEW BUSINESS None IX. CONTINUED BUSINESS None X. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION of a recommendation to the City Council approving a Precise Plan, Conditional Use Permit, and Tentative Parcel Map 38023 to construct a three-story mixed-use building consisting of retail and office uses on the ground floor, and 60 total residential apartment units on the second and third floors located on the southeast corner of San Pablo Avenue and Fred Waring Drive; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case Nos. PP/CUP 20-0003 and TPM 38023 (Chandi Group USA, Indio, California, Applicant). Associate Planner Kevin Swartz presented the staff report (staff report(s) is available at www.cityofpalmdesert.org). He mentioned that he received one comment from an adjacent neighbor, Mr. Steve Andrews. He supported the project; however, he requested additional landscaping along his property and the proposed project. Staff recommended approval and offered to answer any questions. He noted that the Chandi Group team is also available to answer questions. Commissioner Nancy DeLuna referred to an art piece and asked if it would be a permanent installation. Mr. Swartz replied that they have not decided on the art. He said any art piece would need to go through the Art in Public Places Commission for approval, or the applicant could pay a fee. MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 3 Commissioner DeLuna asked Mr. Swartz to differentiate all the levels of the building. Mr. Swartz pointed out the roof deck, commercial space, residential space, and parking garage. Commissioner DeLuna asked if it is correct that the commercial tenants would not have access to the pool area. Mr. Swart replied that is correct. Commissioner John Greenwood asked about the circulation as it relates to Phase II of the San Pablo Avenue (San Pablo) corridor and CV Link. Mr. Swartz referred to the PowerPoint to explain the circulation and mentioned the improvements of Phase II for San Pablo. Mr. Ceja added that there is somewhat of a challenge at the Fred Waring intersection. He said the improvements on Santa Rosa Way would mimic improvements made on San Pablo, such as bulb-outs, street parking, and additional trees and landscape. Mr. Swartz noted that the City would designate the streets as shared traffic. Therefore, the City would allow golf carts. Additionally, the applicant would provide golf cart parking. Commissioner Ron Gregory inquired if there would be two restaurants. Mr. Swartz replied that the applicant had not identified the tenants. He said there could be more than two restaurants. Commissioner Gregory asked if the building would be four stories. Mr. Swartz replied that he would let the project architect address the question. Commissioner Gregory commented that the southeast corner would be hot if it is a restaurant and is concerned about shading. Mr. Swartz said there would be some overhang and possibly umbrellas. Chair Holt referred to a PowerPoint slide, and asked if only 12 parking spaces of the 22 parking spaces are dedicated to for residents. Mr. Swartz deferred the question to the applicant. Chair Holt declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MS. AMAN CHANDI, with the Chandi Group, Indio, California, thanked the Planning Commission for their time and City staff for getting them through the Architectural Review Commission (ARC) meetings to be before the Planning Commission. She stated that her MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 4 family and team are proud of their vision for this project and felt it would be a great addition to the City of Palm Desert. She listed their team members that were present to answer any questions. MR. TODD ALDEN, with Danielian Associates, Irvine, California, stated that the space above the retail is the mezzanine space that would service commercial. It is not a fourth level. He said there would be a leasing area on the first floor of the southeast corner, and all residential parking would be located on the second level, with a gate. The first floor would have parking spaces for commercial uses. MR. JOE WICENTOWICH, the project manager, clarified that the leasing area is only on the first level and potentially a clubroom for tenants on the second level, which is an amenity flex space with an outside deck area; not necessarily a restaurant space. He also clarified that the first story is a two-story commercial space. Potential restaurant or retail spaces would compromise one story as they face San Pablo and Fred Waring Drive. He said the parking deck is two levels but aligns with the one-story area. The residential apartments start at the third podium level. Vice-Chair John Greenwood asked if they were able to allocate shaft space for mechanical components and are they able to screen the residential HVAC equipment. MR. WICENTOWICH replied yes, they are prepared for all the requirements for restaurant and retail uses. He said everything would go up vertically in conjunction with all other utilities. He shared that they worked with the ARC because they had a similar concern, noting that the unattractive components would be well hidden. Vice-Chair Greenwood inquired where the trash bins would be located. Mr. Swartz pointed to the proposed location of the trash bins. For the units located on the south side, Vice-Chair Greenwood asked if they would have to travel northeast. MR. WICENTOWICH replied yes. Vice-Chair Greenwood asked if Burrtec is comfortable with the capacity of servicing both retail and residential functions. Commissioner Gregory voiced his concern with the landscaping on the east side and asked if it is possible to provide the landscaping requested by Mr. Andrews. He stated that the south part of the building appears to be naked. He pointed out that the building is a harsh structure looming over a one-story building. He also voiced his concern about Santa Rosa Way, which appears minimally landscaped. He said there are only two Tipuana trees on San Pablo and asked why the applicant could not add more to maintain continuity. He asked the applicant to consider adding more trees north along San Pablo, if possible. MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 5 MR. CHRIS HERMANN, the landscape architect, Palm Desert, California, stated that they all want to screen the property boundary. However, they are not able to plant over relocated utility lines. He noted that the neighboring property is the only place to add planting, but they do not own that property. Regarding other street tree locations, he would leave that up to the City planners and the architect. He said they had done things to mitigate the balcony views for the residents. Commissioner Gregory inquired where the relocated utilities are. MR. HERMANN replied between the two properties. Commissioner Gregory voiced his concern with the landscaping between the two properties. He felt that there should be something done in conjunction with the neighbor to make the building less harsh. MR. MARK CHAPPELL, the civil engineer, Indio, California, mentioned that the rendering does not show the existing block wall along the west side between the two properties, which abuts against their property. Therefore, the lower portion is already screened. Commissioner Gregory asked Mr. Hermann if he could not state that the landscaping between the properties is minimal. MR. HERMANN responded that there are opportunities to add screen material such as a trellis material with climbing plants; however, they have not had that discussion with the architectural team or the client. Commissioner Gregory noted there are some street trees on Santa Rosa Way, and said part of the joy of being a landscape architect is trying to mitigate a large building. MR. HERMANN said he has not looked at that side of the building in a while and could take another look. Commissioner Gregory asked whom he would talk to about adding more trees along San Pablo. Mr. Ceja responded that the two Tipuana trees on San Pablo are existing trees. Because of the dedicated right-turn pocket, it is difficult to add more landscape planers into that area. Commissioner Gregory commented that from a landscape architectural perspective to create an urban look, it is successful; however, the landscaping is minimal. Chair Holt appreciated the proposed project being pedestrian-friendly and agreed that there is a lot of hardscape. She noted it gets very hot during the summertime and wants to make sure pedestrians feel comfortable traveling along San Pablo. She said whatever could be done to make the project as pedestrian-friendly as possible by incorporating additional landscaping shading or canopy covers to make it more comfortable. It would be beneficial to the City and the project. She commented that students might live in the MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 6 units, and she asked if the clubroom would have amenities designed for students, such as workstations. She felt it would be nice to have a portion dedicated to students. She was grateful for the proposed bike storage. Commissioner DeLuna requested to see how many parking spaces are available for commercial and residential uses. Mr. Swartz explained that the ground level has 78 parking spaces. MR. WICENTOWICH interposed that the mixture of retail commercial and residential is primarily on the first level. On the first level, 22 parking spaces are dedicated to residential, and the entire upper level is dedicated to residential. He said the ramp to the upper deck would have a secure vehicle barrier so residents could have secured parking. The bottom level would be open to the public. Commissioner DeLuna asked if residents would have assigned parking spaces. MR. WICENTOWICH answered that they had not had that discussion, but that is a program requirement the Chandi Group would need to discuss. Commissioner DeLuna commented that she was thinking of residents that have guests who might fill parking spaces. MR. WICENTOWICH communicated there are 22 parking spaces on the first level in a boxed out area for guests. They want to refrain from having any public traffic going to the upper level. He mentioned that they would also locate the handicap spaces and vehicle charging stations on the first level. Commissioner DeLuna asked how residents would access the upper levels. MR. WICENTOWICH responded that there would be elevators and stairs with secured, controlled access for residents only. With no further testimony offered, Chair Holt declared the public hearing closed. Commissioner Gregory thought that the proposed project is great and pleased with the architecture, use of the site, and parking. His concern is having a large building with minimal landscaping. At this point, Commissioner Gregory lost his connection to the Zoom meeting. Vice-Chair Greenwood agreed that the project is elegant and well designed. The project is perfect for the vision the City wanted to carry out as part of the General Plan. He is excited about the project presented by the applicant. Commissioner DeLuna echoed Vice-Chair Greenwood’s comments. She stated that it is the vision the City had with the update of the San Pablo corridor, which promotes walkability. She felt the applicant did an excellent job. MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 7 Chair Holt agreed, noting that the project density is appropriate for the area, and it is going to be a beautiful addition to the City of Palm Desert. She thanked staff for working diligently with the applicant to comply with standards and guidelines and bringing this project together. Commissioner Pradetto moved for approval, and Commissioner DeLuna seconded the motion. Mr. Ceja interjected that Commissioner Gregory is rejoining the Zoom meeting. Commissioner Gregory continued his comments by saying that he would like to see more of an effort made on the landscape to soften the building to make it a better experience for the neighbors and pedestrians. Commissioner Pradetto asked Commissioner Gregory if he had any suggestions. Commissioner Gregory suggested adequate screening on the east side to mitigate the neighbor’s concern and pedestrian-friendly landscaping on Santa Rosa Way, San Pablo, and Fred Waring Drive. Commissioner Pradetto informed Commissioner Gregory that he made a motion for approval and Commissioner DeLuna seconded the motion. For that reason, he asked for his suggestions. Thus, he was curious about whether he should rescind the motion and add conditions to the conditions of approval or have the applicant work with staff. Commissioner Gregory stated that he does not know the applicant’s present demands concerning timing. If the Planning Commission approves the project “subject to,” the applicant may not take the landscaping seriously. He asked if the applicant could address the Commission. Commissioner DeLuna noted that Chair Holt closed the public hearing. Chair Holt reopened the public hearing for additional testimony. MR. WICENTOWICH stated that the intent was to landscape the strip between the two properties. As Mr. Chappell mentioned earlier, the cable company had to relocate its service line from the east and down the pathway, which made it difficult to add landscaping. He does not know if the cable lines could run lower to allow for more landscaping. Regarding the landscape strip on the northeast portion near the loading zone, the applicant is working with Southern California Edison on figuring out the provisions to the transformer that is hidden at the corner. They cannot run the provisions under the parking area due to the underground water detention. He said they would be happy to have landscaping to the greatest extent possible; however, they have limitations. MR. CHAPPELL added that the appropriateness of planting coniferous trees in a five-foot space between two vertical block walls seemed like it would not work, and difficult to maintain the trees. For the trees on the southeast and northeast section, the only opportunity to bring electricity into the site is along the easterly property line due to the MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 8 underground stormwater retention requirements. He said they discussed adding landscaping on the upper level of the building facing east and thought the issue was addressed. Commissioner Gregory asked Mr. Hermann if they were planning to plant conifer trees on the east side. MR. HERMANN replied that they are looking at planting shoestring acacias on the east side. Commissioner Gregory commented there are issues with landscaping that need to be addressed. He felt that the landscape was short shifted. MR. WICENTOWICH commented that they discussed screening the upper story between the two properties, potentially with hanging vines. However, the landscape architect had concerns with maintaining the planters. MR. HERMANN mentioned that there is an opportunity to look at softening the sidewalks. He asked Commissioner Gregory if he wants the applicant to soften the entire building elevation or the pedestrian scale. Commissioner Gregory responded that they would not be able to soften a three-story building, but would like to soften the pedestrian scale and buffer the east side of the building. Mr. Stendell conveyed that the Planning Commission could take the comments in the form of a condition, and City staff could take the landscape plan to the ARC for review and approval. He noted that construction documents have to go back to the ARC, and staff could transmit the Planning Commission’s comments to the ARC. MR. NACHHATTAR CHANDI, the project owner and developer, Indio, California, interjected that he preferred not to go back to ARC. He said they have already done a lot of work on this project and, it has cost a lot of money. He does not want to bounce back and forth between Commissions. He asked Commissioner Gregory if he is a landscape architect. Commissioner Gregory replied that he is a licensed landscape architect. MR. CHANDI stated that his group hired the greatest landscape architect in the Coachella Valley, and they worked a lot on the landscaping. He expressed that he does not see cutting back on the building and sidewalk to add more landscaping. He said it does not make sense economically and for maintenance reasons. Mr. Chandi stated that due to COVID-19, costs for this project have increased by about 30 percent. He communicated that he is open to suggestions, would like to move this project forward and begin construction in 2021. MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 9 Commissioner Gregory agreed with Mr. Chandi that he would prefer that the landscape plan not go back to the ARC. He did not intend to stall the project, however, wanted to bring up some important points. MR. CHANDI stated that he would prefer to work on the landscape plan with City staff. Commissioner Gregory commented that there are two options; one would be to go back to ARC, and the other is to add a condition(s). He asked if the conditions would have teeth to them. Mr. Stendell replied that the conditions absolutely have teeth, which become part of the Planning Commission resolution. With no further comments, Chair Holt closed the public hearing. Chair Holt inquired if Commissioner Pradetto needed to rescind his motion. Commissioner Pradetto briefly explained the procedure to rescind his motion; however, he stated that he would not rescind his motion. Commissioner Gregory asked if the motion included the condition for additional landscaping. Commissioner Pradetto replied no. He asked what the specific condition is, and he would decide if he would rescind his motion. Commissioner Gregory responded that he would add a condition for the applicant to add screening on the east side of the building and pedestrian-friendly landscaping on San Pablo, Santa Rosa Way, and Fred Waring Drive. Mr. Stendell clarified that staff would need specific language for the condition of approval, or staff would work with the ARC to review and approve the landscape concepts. Commissioner Pradetto amended the motion and moved to waive further reading and adopt Planning Commission Resolution No. 2784, recommending to the City Council approval of Case Nos. PP/CUP 20-0003 & TPM 38023, subject to add the following to the condition of approvals: The applicant shall revise the landscape plan to include pedestrian- friendly plants on all sides of the property, add additional landscape screening to the southeast portion of the lot, and consider using non-deciduous landscaping. The City’s ARC shall review the landscape plan at the time that the ARC reviews the construction drawings; and adopt a Notice of Exemption in accordance with CEQA. The motion was seconded by Commissioner DeLuna and carried by a 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None; ABSENT: None). The Chandi Group thanked the Planning Commission and City staff for their time and appreciated everything that they did. MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 15, 2020 10 Commissioner DeLuna thanked the Chandi Group for their investment to improve the quality of life in Palm Desert with a landmark project that would accomplish the vision the City had with the General Plan update and the San Pablo corridor improvements. Commissioner Gregory concurred with Commissioner DeLuna and apologized for being difficult. He felt it is a great project. XI. MISCELLANEOUS None XII. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES 1. PRESENTATION on public art by Management Analyst Amy Lawrence. Management Analyst Amy Lawrence provided a PowerPoint presentation on public art programs and projects. B. PARKS & RECREATION Mr. Stendell reported that the Parks & Recreation Commission is making progress on installing a plaque on the bridge at the Civic Center Park. XIII. REPORTS AND REMARKS Mr. Stendell reported that the selection for the 2021 Chairperson and Vice-Chairperson would occur at the second meeting in January. XIV. ADJOURNMENT With the Planning Commission concurrence, Chair Holt adjourned the meeting at 7:32 p.m. LINDSAY HOLT, CHAIR ATTEST: RYAN STENDELL, SECRETARY MONICA O’REILLY, RECORDING SECRETARY CITY OF PALM DESERT LEGAL NOTICE CASE NO. PP/CUP/DDA 20-0003 and TPM 38023 NOTICE OF A PUBLIC HEARING BEFORE THE PALM DESERT CITY COUNCIL TO CONSIDER A REQUEST BY CHANDI ENTERPRISES, INC FOR APPROVAL OF A PRECISE PLAN (PP), CONDITIONAL USE PERMIT (CUP), TENTATIVE PARCEL MAP (TPM) 38023, AND A DISPOSITION AND DEVELOPMENT AGREEMENT (DDA), WITH CHANDI GROUP USA TO DEVELOP A THREE-STORY MIXED-USE BUILDING ON THE CITY-OWNED PROPERTY LOCATED AT THE SOUTHEAST CORNER OF SAN PABLO AVENUE AND FRED WARING DRIVE; AND ADOPTION OF A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the California Environmental Quality Act (CEQA), finds that the proposed project is categorically exempt under Article 19 Section 15332 In-Fill Development Projects (Class 32) of the CEQA; therefore, no further environmental review is necessary, and that a Notice of Exemption can be adopted as part of this project. Project Location/ Description: Project Location: 1.54 acres (APNs 627-101-002, 627-101-017, 627-101-033, 627-101-061, 627- 101-062) Project Description: The project is a mixed-use three-story building consisting of approximately 16,500 square feet of commercial space on the ground floor, and 60 residential apartment units on the second and third floors. The 60 residential units range from one to three bedroom units ranging in size from 711 to 1,369 square feet. The project is located within the Downtown Edge (DE) zone. Recommendation: Staff is recommending approval of the project request, and that the City Council adopts a resolution, subject to conditions of approval. Public Hearing: The public hearing will be held before the City Council on May 27, 2021, at 4:00 p.m. via Zoom. The hearing will be conducted in accordance with the City’s emergency protocols for social distancing. Options for remote participation will be listed on the Posted Agenda for the meeting at: https://www.cityofpalmdesert.org/our-city/committees-and-commissions/citycouncil- commission-information-center. Comment Period: The public comment period for this project is from May 17, 2021, to May 27, 2021. Public Review: The project application is available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. by contacting the project planner, Mr. Kevin Swartz. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the City Council hearing. All comments and any questions should be directed to: Kevin Swartz, Associate Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 kswartz@cityofpalmdesert.org PUBLISH: DESERT SUN GLORIA SANCHEZ May 17, 2021 CITY COUNCIL SECRETARY [This page has intentionally been left blank.] Notice of Exemption FORM “B” NOTICE OF EXEMPTION TO: Office of Planning and Research P. O. Box 3044, Room 212 Sacramento, CA 95812-3044 Clerk of the Board of Supervisors or County Clerk County of: FROM: City of Palm Desert 1. Project Title: PP/CUP 20-0003 and TPM 38023 2. Project Applicant: Chandi Group USA 3. Project Location – Identify street address and cross streets or attach a map showing project site (preferably a USGS 15’ or 7 1/2’ topographical map identified by quadrangle name): The project is located on the southeast corner of San Pablo Avenue and Fred Waring Drive, and abuts Santa Rosa Way to the south. The project area is undeveloped, relatively flat, and consists of five parcels (APNs: 627-101-002, 627-101- 017, 627-101-033, 627-101-061, 627-101- 062) totaling 1.54-acres. 4. (a) Project Location – City: Palm Desert (b) Project Location – County: Riverside County 5. Description of nature, purpose, and beneficiaries of Project: Approval of staff’s recommendation will result in the project, referred to as “The Chandi Plaza” moving forward to a public hearing before the City Council. The applicant is proposing a TPM to merge all parcels into one, construct a three-story mixed-use building consisting of approximately 16,500 square feet of commercial space on the ground floor, and 60 total residential apartment units (one to three bedrooms) on the second and third floors. 6. Name of Public Agency approving project: City of Palm Desert 7. Name of Person or Agency undertaking the project, including any person undertaking an activity that receives financial assistance from the Public Agency as part of the activity or the person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the activity: City of Palm Desert 8. Exempt status: (check one) Notice of Exemption FORM “B” (a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268) (b) Not a project. (c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c)) (d) Categorical Exemption. State type and class number: The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the CEQA, has determined that the proposed project request is categorically exempt under Class 32: In-fill Development Projects, of the CEQA. Because of the categorical exemption, no further environmental review is necessary. (e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a)) (f) Statutory Exemption. State Code section number: (g) Other. Explanation: 9. Reason why project was exempt: The proposed project is under 5-acres 10. Lead Agency Contact Person: Kevin Swartz, Associate Planner Telephone: (760) 346-0611 11. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing. 12. Has a Notice of Exemption been filed by the public agency approving the project?  Yes  No 13. Was a public hearing held by the lead agency to consider the exemption?  Yes  No If yes, the date of the public hearing was: May 27, 2021 Signature:__________________________________ Date:_______________ Title:__________________________  Signed by Lead Agency  Signed by Applicant Date Received for Filing: (Clerk Stamp Here) Authority cited: Sections 21083 and 21100, Public Resources Code. Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. PALM DESERT MIXED USE PALM DESERT, CA DANIELIAN A S S O C I A T E S a r c h i t e c t s p l a n n e r s www.danielian.com 18144.00 CHANDI GROUP 949.474.6030 OCT 26, 2020ENTITLEMENT SUBMITTAL R-3 PROJECT INFORMATION TABLE OF CONTENTS ARCHITECTURAL A-1 PROJECT INFORMATION A-1.1 PROJECT SUMMARIES A-2 CONCEPTUAL SITE PLAN A-3 LEVEL 1 BUILDING PLAN A-4 LEVEL 2 BUILDING PLAN A-5 LEVEL 3 BUILDING PLAN A-6 LEVEL 4 BUILDING PLAN A-7 ROOF PLAN A-8 SECTIONS A-9 SECTIONS A-10 ELEVATIONS A-11 ELEVATIONS A-12 RENDERING VIEW A-13 RENDERING VIEW A-14 RENDERING VIEW A-15 RENDERING VIEW A-16 COLOR & MATERIALS A-17 ADDITIONAL MATERIALS + DETAILED VIEWS A-18 ADJACENT VIEWS TO SITE LANDSCAPE L1.0 1ST FLOOR PLANTING L1.1 2ND FLOOR PLANTING L1.2 3RD FLOOR PLANTING L2.0 1ST FLOOR PLANT MATERIAL TREES & ACCENTS L2.1 1ST FLOOR PLANT MATERIAL SHRUBS L2.2 2ND FLOOR PLANT MATERIAL ACCENTS L2.3 3RD FLOOR PLANT MATERIAL TREES & SHRUBS N A-1 SITE OWNER: Chandi Group USA 42270 Spectrum Street, Suite A Indio, CA 92203 Project Contact: Toni Merrihew tmerihew@chandigroupusa.com ARCHITECT: Danielian Associates 60 Corporate Park, Irvine, CA 92606 Project Contact: Michael Boyd, AIA mboyd@danielian.com LANDSCAPE ARCHITECT: Hermann Design Group 77-899 Wolf Road, Suite 102 Palm Desert, CA 92211Project Contact: Christopher Hermann., ASLA chris@hdg-inc.com CIVIL ENGINEER: Black Gold Engineering Chandi Group, USA 42270 Spectrum Street Indio, CA 92203 Project Contact: Mark Chappell, PE mc@chandigroupusa.com PROJECT TEAM PALM DESERT MIXED USE PALM DESERT, CA DANIELIAN A S S O C I A T E S a r c h i t e c t s p l a n n e r s www.danielian.com 18144.00 CHANDI GROUP 949.474.6030 OCT 26, 2020ENTITLEMENT SUBMITTAL R-3 PROJECT SUMMARIES A-1.1 PALM DESERT MIXED USE PALM DESERT, CA DANIELIAN A S S O C I A T E S a r c h i t e c t s p l a n n e r s www.danielian.com 18144.00 CHANDI GROUP 949.474.6030 OCT 26, 2020ENTITLEMENT SUBMITTAL R-3 CONCEPTUAL SITE PLAN A-2 N PALM DESERT MIXED USE PALM DESERT, CA DANIELIAN A S S O C I A T E S a r c h i t e c t s p l a n n e r s www.danielian.com 18144.00 CHANDI GROUP 949.474.6030 OCT 26, 2020ENTITLEMENT SUBMITTAL R-3 LEVEL 1 A-3 BUILDING FLOOR PLAN ��N O N N ���: w ��N � �IN N N ro � ENTITLEMENT SUBMITTAL R-3 �PALM DESERT -' . 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RETAIL / COMMERCIAL ART PLAZA SAN PABLO AVENUE SANTA ROSA WAYFRED WARING DR.6 8 18 9 10 7 ART PLAZA 10 RETAIL / COMMERCIAL TRASH RM. 10%8%17% TOC 184.98 187.33 183.8 +/-186.5 STEP AS NEED - TO WORK WITH SLOPING SIDEWALK 4.8%186.3+/-183.8BIKE STOR. MECH. RETAIL / COMMERCIAL 3,172 sf +/-185.5 STEP AS NEED - TO WORK WITH SLOPING SIDEWALK LEASING PARKING LEVEL 1 ELEC. RM. FIRE CMD LINE OF BUILDING ON LEVEL 3 STORAGESTORAGEDN8.33% SLOPE 3R @ 6" 1.5' HT @ 18' L 3R @ 5"DN 2R @ 6" DN UP UP UP DN UP DNUP F.H. UP STAIR 2 22 R @ 6.54" = 12' STAIR 4 STAIR 3 UP (1) LOADING GAS METERS EVCSVANVANEV EVEVCSEVCLEAN AIR/VANPOOL/EVCLEAN AIR/VANPOOL/EVCLEAN AIR/VANPOOL/EVEVSTAIR 1 22 R @ 6.545" = 12' 42 R @ 6.85"= 24'0"10M-2P10M-2P10M-2P 10M-2P10M-2P10M-2PSINK DW REF CHASE ELEV 1 ELEV 2 RECYCLE 4YD TRASH 4YD FUTURE COMPOST BINS CBOARD 4YD BOOSTER PUMP 185.04 2% DN DN CLCL MPOE GOLF/ MOTORCYCLE (10) LINE OF 2ND FLOOR BUILDING PAD ABOVE OPEN AIR SPACE MAIL RM. 1ST LEVEL PARKING: 68 SPACES 10 GOLF/MOTOR CYCLE SPACES VANEVEV1ST FLOORPLANTING L1.0 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 H ERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGN G ROUP 77-899 WOLF RD. OPEN TO BELOW CAFE DECK 6917DN194.3STOR.8MEZZANINE MEZZANINE DECK FLEX AMENITY STORAGE2ND FLOORPLANTING L1.1 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 H ERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGN G ROUP 77-899 WOLF RD. upupupTRASH RM.DECKFITNESSM.W.POOL EQ.REFSINK DW RANGE REFSINKDWRANGE REFSINKDWRANGEREFSINKDW SINKDWRANGEREFSINKDWRANGE SINKDWREFRANGESINKDWREFRANGEREF SINKDWRANGEREFSINK DW RANGEREFSINK DWRANGEREFSINKDW RANGEREF SINKDW3RD FLOORPLANTING L1.2 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 H ERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGN G ROUP 77-899 WOLF RD. BIKESTOR.RETAIL / COMMERCIALARTPLAZASAN PABLO AVENUESANTA ROSA WAY FRED WARING DR.68189107ARTPLAZA10RETAIL / COMMERCIALTRASH RM.10%8%17%TOC 184.98187.33183.8+/-186.5STEP AS NEED - TOWORK WITH SLOPINGSIDEWALK4.8% 186.3+/- 183.8 BIKE STOR.MECH.RETAIL / COMMERCIAL3,172 sf+/-185.5STEP AS NEED - TOWORK WITH SLOPINGSIDEWALKLEASINGPARKING LEVEL 1ELEC. RM.FIRECMDLINE OFBUILDING ONLEVEL 3STORAGE STORAGE DN8.33% SLOPE3R @ 6"1.5' HT @ 18' L3R @ 5"DN2R @ 6"DNUPUPUPDNUPDNUPF.H.UPSTAIR 222 R @ 6.54"= 12'STAIR 4STAIR 3UP(1) LOADINGGAS METERSEVCS VAN VANEV EV EVCSEV CLEAN AIR/ VANPOOL/EV CLEAN AIR/ VANPOOL/EV CLEAN AIR/ VANPOOL/EV EVSTAIR 122 R @ 6.545"= 12'42 R @ 6.85"= 24'0"10M-2P10M-2P 10M-2P10M-2P10M-2P10M-2PSINKDWREFCHASEELEV1ELEV 2RECYCLE4YDTRASH4YDFUTURE COMPOST BINSCBOARD4YDBOOSTERPUMP185.042%DNDNCLCL MPOEGOLF/MOTORCYCLE(10)LINE OF 2ND FLOORBUILDING PAD ABOVEOPEN AIR SPACEMAIL RM.1ST LEVEL PARKING:68 SPACES10 GOLF/MOTOR CYCLE SPACESVANEV EV L2.0FAX (760) 777-9132PH. (760) 777-9131PALM DESERT, CASUITE 102HERMANNLIC# 275492211EXP. 04/30/22DESIGNGROUP77-899 WOLF RD.1ST FLOORPLANT MATERIALTREES & ACCENTS BIKESTOR.RETAIL / COMMERCIALARTPLAZASAN PABLO AVENUESANTA ROSA WAY FRED WARING DR.68189107ARTPLAZA10RETAIL / COMMERCIALTRASH RM.10%8%17%TOC 184.98187.33183.8+/-186.5STEP AS NEED - TOWORK WITH SLOPINGSIDEWALK4.8% 186.3+/- 183.8 BIKE STOR.MECH.RETAIL / COMMERCIAL3,172 sf+/-185.5STEP AS NEED - TOWORK WITH SLOPINGSIDEWALKLEASINGPARKING LEVEL 1ELEC. RM.FIRECMDLINE OFBUILDING ONLEVEL 3STORAGE STORAGE DN8.33% SLOPE3R @ 6"1.5' HT @ 18' L3R @ 5"DN2R @ 6"DNUPUPUPDNUPDNUPF.H.UPSTAIR 222 R @ 6.54"= 12'STAIR 4STAIR 3UP(1) LOADINGGAS METERSEVCS VAN VANEV EV EVCSEV CLEAN AIR/ VANPOOL/EV CLEAN AIR/ VANPOOL/EV CLEAN AIR/ VANPOOL/EV EVSTAIR 122 R @ 6.545"= 12'42 R @ 6.85"= 24'0"10M-2P10M-2P 10M-2P10M-2P10M-2P10M-2PSINKDWREFCHASEELEV1ELEV 2RECYCLE4YDTRASH4YDFUTURE COMPOST BINSCBOARD4YDBOOSTERPUMP185.042%DNDNCLCL MPOEGOLF/MOTORCYCLE(10)LINE OF 2ND FLOORBUILDING PAD ABOVEOPEN AIR SPACEMAIL RM.1ST LEVEL PARKING:68 SPACES10 GOLF/MOTOR CYCLE SPACESVANEV EV L2.1FAX (760) 777-9132PH. (760) 777-9131PALM DESERT, CASUITE 102HERMANNLIC# 275492211EXP. 04/30/22DESIGNGROUP77-899 WOLF RD.1ST FLOORPLANT MATERIALSHRUBS OPEN TO BELOWCAFE DECK17DN 194.3 STOR.MEZZANINEDECKFLEXAMENITYL2.2FAX (760) 777-9132PH. (760) 777-9131PALM DESERT, CASUITE 102HERMANNLIC# 275492211EXP. 04/30/22DESIGNGROUP77-899 WOLF RD.2ND FLOORPLANT MATERIALACCENTS up up up TRASH RM.DECK FITNESS M.W. POOL EQ. REFSINKDW RANGEREF SINKDWRANGEREFSINK DW RANGEREFSINK DW SINKDWRANGEREFSINK DW RANGESINK DWREF RANGESINKDWREF RANGEREF SINKDWRANGE REFSINKDWRANGE REF SINKDWRANGE REF SINKDWRANGEREF SINKDWL2.2FAX (760) 777-9132PH. (760) 777-9131PALM DESERT, CASUITE 102HERMANNLIC# 275492211EXP. 04/30/22DESIGNGROUP77-899 WOLF RD.3RD FLOORPLANT MATERIALTREES & SHRUBS BIKE STOR. RETAIL / COMMERCIAL ART PLAZA SAN PABLO AVENUE 6 8 18 9 10 7 ART PLAZA 10 RETAIL / COMMERCIAL TRASH RM. 10%8%17% TOC 184.98 187.33 183.8 +/-186.5 STEP AS NEED - TO WORK WITH SLOPING SIDEWALK BIKE STOR. MECH. RETAIL / COMMERCIAL 3,172 sf +/-185.5 STEP AS NEED - TO WORK WITH SLOPING SIDEWALK LEASING PARKING LEVEL 1 ELEC. RM. FIRE CMD LINE OF BUILDING ON LEVEL 3 DN8.33% SLOPE 3R @ 6" 1.5' HT @ 18' L DN 2R @ 6" DN UP UP UP DN UP DNUP F.H. UP STAIR 2 22 R @ 6.54" = 12' STAIR 4 STAIR 3 UP (1) LOADING GAS METERS VAN STAIR 1 42 R @ 6.85"= 24'0" 10M-2P 10M-2PSINK DW REF CHASE ELEV 1 ELEV 2 RECYCLE 4YD TRASH 4YD FUTURE COMPOST BINS CBOARD 4YD BOOSTER PUMP 185.04 2% DN DN CL MPOE GOLF/ MOTORCYCLE (10) LINE OF 2ND FLOOR BUILDING PAD ABOVE OPEN AIR SPACE MAIL RM. 1ST LEVEL PARKING: 68 SPACES 10 GOLF/MOTOR CYCLE SPACES 1ST FLOOR PLANTING L1.0 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 HERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGNGROUP 77-899 WOLF RD. OPEN TO BELOW CAFE DECK STOR. MEZZANINE MEZZANINE DECK FLEX AMENITY 2ND FLOOR PLANTING L1.1 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 HERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGNGROUP 77-899 WOLF RD. RANGE RANGE REF RANGE REF RANGERANGE RANGESINK DWSINKDW REF SINKDW3RD FLOOR PLANTING L1.2 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 HERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGNGROUP 77-899 WOLF RD. APPROVED DATEREVISIONNO. LOCATION BENCHMARK:ELEV.PREPARED UNDER THE DIRECT SUPERVISION OF:DESIGN BY: DRAWN BY: REVIEWED BY: CITYCHECK DATE RIGHT-OF-WAY TRAFFICENG'G FIELDENG'G :: :: :: INITIAL DATE :: :: ::APPROVED BY: CITY ENGINEER DATER.C.E. NO. CITY OF PALM DESERT, CALIFORNIA FILE NO. DWG. NO. OF SHTS. SHEET DATE CADD FILE NAMER.C.E. NO. 1 PREPARED BY:MC MC MC C-68972 MARK CHAPPELL, PE SAN PABLO SITE-PRELIM. GRADING PLAN C 68972 EXP. 12/31/21REGISTERED PR O F ESIONAL E N G I NEER STATE OF CA L IF ORNIA MARK H . C HAPP E L LCI V ILABBREVIATIONS: LEGEND: CITY OF PALM DESERT B.M. NO. 114 182.77' (NGVD29) BRASS CAP @ SW CORNER OF PORTOLA AVENUE AND FRED WARING DRIVE INC. MARK CHAPPELL, PE R.C.E. NO: C-68972 Black Gold Engineering Engineering ● Land Survey ● Design42270 Spectrum Street, Indio, California, 92203 EARTHWORK QUANTITIES FRED WARING DRIVE CLSAN PABLO AVENUESANTA ROSA WAY SANTA ROSA WAY CL CL SECTION A-A' SECTION B-B' SECTION C-C'AA'B'BC'C CL10 111 111 74 OWNER: APPLICANT: SITE ADDRESS: EARTHWORK SUMMARY P:\136 - San Pablo, Palm Desert\CIVIL\CUP\PRELIM_GRADING PLAN.dwg, Layout1, 8/19/2020 3:44:38 PM S89° 47' 17"W 1340.71'S00° 04' 41"W 363.96'N89° 45' 14"E 1342.25' (BASIS OF BEARING 1342.27' R1) 430.41' 861.65' 886.74' S89° 44' 40"W 861.14' (N89° 44'E 861.25 R3)154.00'N00° 09' 32"W 154.03'NW CORNER SIGNAL PIPELINE BOOK 899/27 SIGNAL PIPELINE 899/27 NE CORNER SIGNAL PIPELINE BOOK 899/27 AUBREY WARDMAN 1113/535 PARCEL 1 2014-0438584 (627-101-017) 59.70' NE CORNER LOT 11 MB 22/50 NW CORNER LOT 13 MB 22/50 50.00'166.97' SW CORNER HUME BOOK 1063/172 108.10' PARCEL 2 2014-0438584 (APN 627-101-002) PARCEL 3 2014-0438584 (APN 627-101-062) PARCEL 4 2014-0438584 (APN 627-101-033) PARCEL 5 2014-0438584 (APN 627-101-061)N00° 18' 20"W 144.74'40.00'WEST LINE OF HUME BOOK 1063/172 LOT 13 MB 22/50 LOT 11 MB 22/50 208.76' 179.91' N00° 18' 50"W 8.54'L6N00° 08' 47"W57.78'N02° 57' 30"E196.45'N44° 27' 06"E32.95'ITEM 13 SCHEDULE B INST. NO. 1983-124083 TO CITY OF PALM DESERT- ROADWAY AND PUBLIC UTILITY ITEM 16 SCHEDULE B INST. NO. 1995-299363 TO CITY OF PALM DESERT- PEDESTRIAN & SIDEWALK ITEM 14 SCHEDULE B INST. NO. 1983-124086 TO CITY OF PALM DESERT- ROADWAY & PUBLUC UTILITY ITEM 15 SCHEDULE B INST. NO. 1995-299362 TO CITY OF PALM DESERT- PEDESTRIAN SIDEWALK ITEM 10 SCHEDULE B BOOK 809 PAGE 50 RECORDED 1/10/1947 TO SCE ROW FOR POLE LINES (NO WIDTH) ITEM 12 SCHEDULE BBOOK 900, PG 136RECORDED 3/12/1948TO SO CAL GAS CO25.00' ITEM 12 SCHEDULE B BOOK 900, PG 136 RECORDED 3/12/1948 TO SO CAL GAS CO 25.00' ITEM 12 SCHEDULE BBOOK 900, PG 136RECORDED 3/12/1948TO SO CAL GAS CO.40'DOC. NO. 2014-0268935 RECORDED JULY 21, 2014 RIGHT OF WAY PER DOC. NO. 2014-0268935 RECORDED JULY 21, 2014 PROPOSED VACATION BY SEPARATE DOCUMENT (APN 627-101-063) 55.84' 35.79' (APN 627-101-003) NW CORNER LOT 1 MB 20/51 298.95'SW CORNER LOT 1 MB 20/51 L1 L2 L3N00° 07' 26"W 64.41'N02° 58' 39"E 202.53'L4L5 LINE TABLE LINE L1 L2 L3 L4 L5 L6 BEARING S89°45'14"W N00°14'46"W N45°12'35"W N44°28'31"E N89°47'17"E N45°13'49"W DISTANCE 15.01' 1.74' 18.88' 24.21' 20.05' 18.41' 25.00'25.00'N 00 20'40'PROJECT LOCATION & NAME: Drawing2.dwg PLOT TIME: Friday, October 9, 2020 7:55:54 AM LAYOUT: 24 X 36 Exhibit TPMPLOT STYLE: Corporate Headquarters  6peFtruP 6treet ,QdLo C$  3KoQe  )a[  35(3$5(' %< LACK OLD NGINEERINGINC Civil Engineering - Land Surveying - Design B G E NCS US Standard.stbPARCEL 1 PALMA VIL L A G E G R O V E S MB 20, PAG E 5 1 SAN PABLO AVENUESANTA ROSA WAY (44TH AVE) FRED WARING DR IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIATENTATIVE PARCEL MAP 38023 BEING A MERGER OF A PORTION OF LOT 1, OF PALMA VILLAGE GROVES, RECORDED IN BOOK 20, PAGE 51 OF MAPS, RECORDS OF SAID COUNTY. LYING WITHIN THE NORTHEAST QUARTER OF SECTION 20, T.5S, R.6 E., S.B.M. BLACK GOLD ENGINEERING INC.AUGUST, 2020 LEGAL DESCRIPTION: TITLE INFORMATION: THE TITLE INFORMATION SHOWN HEREON IS PER TITLE REPORT ORDER NO. 140-1948385-32, DATED 6/20/2020, AS PREPARED BY ORANGE COAST TITLE COMPANY, ONTARIO, CA. TITLE OFFICER: MANNY VILLALOBOS (909) 987-5433 SITE ADDRESS: SOUTHEAST CORNER OF FRED WARING & SAN PABLO AVENUE (VACANT LAND) RECORD OWNER: CITY OF PALM DESERT, A CALIFORNIA MUNICIPAL CORPORATION ASSESSORS PARCEL NUMBERS: APN 627-101-002, 017, 033, 061, & 062 PROPERTY ZONING (EXISTING): DOWNTOWN EDGE DISTRICT (D.E.) PLS No. 8549SCOTT STUR MPROFESSIO N A L LAND SU R V EYORST A TE OF C A L IF O RNIASCOTT STURM, LS 8549 DATE 10 111 111 74 N PARCEL 1 (A.P.N. 627-101-002) ALL THAT PORTION OF LOT 1 OF PALMA VILLAGE GROVES, AS SHOWN BY MAP ON FILE IN BOOK 20, PAGE 51OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF LOT 13 OF PALM VILLAGE GARDEN TRACT NO. 2, AS SHOWN BY MAP ON FILE IN BOOK 22, PAGE 50 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY; THENCE SOUTH 89° 44' WEST ALONG THE WESTERLY EXTENSION OF THE NORTH LINE OF SAID LOT 13 OF SAID PALM VILLAGE GARDEN TRACT NO. 2, TO THE SOUTHEAST CORNER OF THAT CERTAIN PARCEL OF LANDCONVEYED TO AUBREY WARDMAN, A MARRIED MAN, BY DEED RECORDED OCTOBER 7, 1949, IN BOOK 1113, PAGE535 OF OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY; THENCE NORTH 0° 02' EAST ALONG THE EASTERLY LINE OF SAID PARCEL AS CONVEYED TO AUBREY WARDMAN, TO THE SOUTHERLY LINE OF LOT A (FRED WARING DRIVE/44TH AVENUE) OF SAID PALMA VILLAGE GROVES; THENCE NORTH 89° 46' EAST ALONG THE SOUTHERLY LINE OF SAID LOT A (FRED WARING DRIVE/44TH AVENUE),106.91 FEET, MORE OR LESS, TO THE WESTERLY LINE OF THAT CERTAIN PARCEL OF LAND CONVEYED TO ROCKHUME AND GRACE HUME, HUSBAND AND WIFE, BY DEED RECORDED MARCH 29, 1049, IN BOOK 1063, PAGE 172OF OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY; THENCE SOUTH 00° 13' EAST ALONG SAID WESTERLY LINE OF THAT CERTAIN PARCEL AS CONVEYED TO ROCK HUME AND GRACE HUME, HUSBAND AND WIFE, TO A POINT ON THE NORTH LINE OF SAID LOT 13 OF SAID PALM VILLAGE GARDEN TRACT NO. 2; THENCE SOUTH 89° 44' WEST ALONG THE NORTHERLY LINE OF SAID LOT 13, A DISTANCE OF 50 FEET TO THEPOINT OF BEGINNING. CONTAINING 0.36 ACRES, MORE OR LESS. PARCEL 2: (A.P.N. 627-101-017) ALL THAT PORTION OF LOT 1 OF PALMA VILLAGE GROVES, AS PER MAP FILED IN BOOK 20, PAGE 51, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE SOUTH LINE OF SAID LOT 1, WHICH BEARS NORTH 89° 44' EAST, 156.5 FEETFROM THE SOUTHWEST CORNER THEREOF, SAID POINT BEING ALSO THE SOUTHEAST CORNER OF THAT CERTAINPARCEL OF LAND CONVEYED TO SIGNAL PIPELINE CONSTRUCTION CO., A PARTNERSHIP, BY DEED RECORDEDMARCH 1, 1948, IN BOOK 899, PAGE 27 OF OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY; THENCE NORTH 89° 44' EAST, ALONG THE SOUTH LINE OF SAID LOT 1 TO THE SOUTHWEST CORNER OF LOT 13OF PALM VILLAGE GARDEN TRACT NO. 2 AS SHOWN BY MAP ON FILE IN BOOK 22, PAGE 50 OF MAPS, IN THEOFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY: THEN NORTH 0° 13' WEST ALONG THE WEST LINE OF SAID LOT 13 OF SAID PALM VILLAGE GARDEN TRACT NO. 2, 154 FEET TO THE NORTHWEST CORNER OF SAID LOT 13; THENCE SOUTH 89° 44' WEST ALONG THE WESTERLY EXTENSION OF THE NORTH LINE OF SAID LOT 13, TO THE NORTHEAST CORNER OF THAT CERTAIN SAID PARCEL OF LAND CONVEYED TO SIGNAL PIPELINE CONSTRUCTION CO. BY DEED RECORDED MARCH 1, 1948, IN BOOK 899, PAGE 27; THENCE ALONG THE EAST LINE OF SAID PARCEL OF LAND PER SAID DEED SOUTH 0° 02' WEST TO THE POINTOF BEGINNING. CONTAINING 0.21 ACRES, MORE OR LESS. PARCEL 3: (A.P.N. 627-101-033) THE EASTERLY 75 FEET AS MEASURED ALONG THE NORTHERLY LINE OF THE FOLLOWING DESCRIBED PROPERTY: THAT PORTION OF LOT 1 OF PALMA VILLAGE GROVES, AS SHOWN BY MAP ON FILE IN BOOK 20, PAGE 51 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WEST LINE OF SAID LOT 1, 154 FEET NORTH OF THE SOUTHWEST CORNERTHEREOF, SAID POINT BEING THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TOSIGNAL PIPELINE CONSTRUCTION CO., A PARTNERSHIP, BY DEED RECORDED MARCH 1, 1948, IN BOOK 899, PAGE27 OF OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY; THENCE NORTH 89° 44' EAST, ALONG THE NORTHERLY LINE OF SAID PARCEL AS CONVEYED, 156.5 FEET, TO THE NORTHEAST CORNER THEREOF; THENCE NORTH 0° 02' EAST TO A POINT ON THE NORTH LINE OF SAID LOT; THENCE SOUTH 89° 46' WEST ALONG THE NORTH LINE OF SAID LOT TO THE NORTHWEST CORNER THEREOF;THENCE SOUTH 0° 02' WEST ALONG THE WEST LINE OF SAID LOT TO THE POINT OF BEGINNING. CONTAINING 0.25 ACRES, MORE OR LESS. PARCEL 4: (A.P.N. 627-101-061) ALL OF THAT PORTION OF LOT 1 OF PALMS VILLAGE GROVES, AS PER MAP FILED IN BOOK 20, PAGE 51 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 1; THENCE NORTH 89° 44' EAST, ON THE SOUTHERLY LINE OF SAID LOT, 156.5 FEET; THENCE NORTH 00° 02' EAST154 FEET; THENCE SOUTH 89° 44” WEST, 156.5 FEET TO A POINT ON THE WESTERLY LINE OF SAID LOT 1; THENCE SOUTH00° 02' WEST, ON SAID WESTERLY LINE, 154 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ALL THAT CERTAIN PARCEL OF LAND DESCRIBED IN THE DOCUMENT RECORDED JUNE 22, 1983, AS INSTRUMENT NO. 124083, OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY; ALSO EXCEPTING THEREFROM THAT CERTAIN PORTION OF LAND DESCRIBED IN THE QUITCLAIM DEED TO THE CITY OF PALM DESERT RECORDED JULY 21, 2014, AS DOCUMENT NO. 2014-0268935, OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY. PARCEL 5: (APN 627-101-062) THAT PORTION OF LOT 1 OF PALMA VILLAGE GROVES, AS SHOWN BY MAP ON FILE IN BOOK 20, PAGE 51 OFMAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WEST LINE OF SAID LOT 1, 154 FEET NORTH OF THE SOUTHWEST CORNERTHEREOF, SAID POINT BEING THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TOSIGNAL PIPELINE CONSTRUCTION CO., A PARTNERSHIP, BY DEED RECORDED MARCH 1, 1948, IN BOOK 899, PAGE27 OF OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY; THENCE NORTH 89° 44' EAST, ALONG THE NORTHERLY LINE OF SAID PARCEL AS CONVEYED, 156.5 FEET, TO THE NORTHEAST CORNER THEREOF; THENCE NORTH 0° 02' EAST TO A POINT ON THE NORTH LINE OF SAID LOT; THENCE SOUTH 89° 46' WEST ALONG THE NORTH LINE OF SAID LOT TO THE NORTHWEST CORNER THEREOF; THENCE SOUTH 0° 02' WEST ALONG THE WEST LINE OF SAID LOT TO THE POINT OF BEGINNING; EXCEPTING THEREFROM THE EASTERLY 75 FEET AS MEASURED ALONG THE NORTHERLY LINE THEREOF; ALSO EXCEPTING THEREFROM THAT CERTAIN PORTION OF LAND DESCRIBED IN THE QUITCLAIM DEED TO THE CITY OF PALM DESERT RECORDED JULY 21, 2014, AS DOCUMENT NO. 2014-0268935, OFFICIAL RECORDS OFRIVERSIDE COUNTY; ALSO EXCEPTING THEREFROM ALL THAT CERTAIN PARCEL OF LAND DESCRIBED IN THE DOCUMENT RECORDED JUNE 22, 1983, AS INSTRUMENT NO. 124086, OFFICIAL RECORDS OF SAID RIVERSIDE COUNTY. CONTAINING 0.16 ACRES, MORE OR LESS. APPLICANT: BLACK GOLD ENGINEERING INC. 42270 SPECTRUM STREET, INDIO, CA 92203 UTILITIES: CABLE TV AND INTERNET SPECTRUM 44-425 TOWN CTR. WAY, STE. H, PALM DESERT, CA 92260 (866) 874-2389 ELECTRICITY SOUTHERN CALIFORNIA EDISON CO. 36100 CATHEDRAL CANYON DR., CATHEDRAL CITY, CA 92234 (800) 655-4555 WASTE DISPOSAL BURRTEC WASTE AND RECYCLING SVCS. 41-575 ECLECTIC STREET, INDIO, CA 92201 (760) 393-0635 DOMESTIC WATER COACHELLA VALLEY WATER DISTRICT 75525 HOVLEY LN. E, PALM DESERT, CA 92211 (760) 398-2651 SANITARY SEWER COACHELLA VALLEY WATER DISTRICT 75525 HOVLEY LN. E, PALM DESERT, CA 92211 (760) 398-2651 NATURAL GAS THE GAS COMPANY 45-123 TOWNE STREET INDIO, CA 92201 (800) 427-2200 FLOOD ZONE: FLOOD ZONE DESIGNATION "X" - AREA OF 2% ANNUAL CHANCE FLOOD; AREAS 1% ANNUAL CHANCE FLOOD WITH AVERAGE DEPTHS OF LESS THAN 1 FOOT OR WITH DRAINAGE AREAS LESS THAN 1 SQUARE MILE; AND AREAS PROTECTED BY LEVEES FROM 1% ANNUAL CHANCE FLOOD. FIRM PANEL NO. 06065C2207H 10/09/2020 [This page has intentionally been left blank.] CHANDI ENTERPRISES LLC Palm Desert Project San Pablo & Fred Waring Project Cost Proforma LAND Purchase Price 940,000.00$ SUBTOTAL LAND COST 940,000.00$ SITE DEVELOPMENT / HARD COSTS Mobilization / Office 100,000.00$ Site Cost: Site Clearing, Grading, Asphalt, Striping 450,000.00$ Parking Structure 2,000,000.00$ Solar Energy 1,200,000.00$ Common Areas/ Open Space: Stairwells, Elevators, 490,000.00$ Building - Residential 5,100,000.00$ Building - Commercial / Retail 2,062,500.00$ T.I. Allowance 495,000.00$ Landscape, Irrigation & Lighting 480,000.00$ Amenity Deck (Pool, Common areas)350,000.00$ Signage, Perimeter Fencing 200,000.00$ SUBTOTAL HARD COSTS 12,927,500.00$ Contingency Reserves (10%)1,292,750.00$ SOFT COSTS, PERMIT & PLANNING FEES 2,621,750.00$ 17,782,000.00$ rev 11.2020 TOTAL PROJECT COST [This page has intentionally been left blank.] ATTACHIUIENT NQ. 3 MAP �F PRQJE�T 51TE; MAP SH�WING �ENERAL L�CATI�N �F THE PR�JECT TABLE QF CQN7EiVTS jf ., i r �I ,r � '� _ A �F� . ►� � � f �+`� ' � _ � w � __ � � � __ ,' , -_...�- � � ._ � � ;' � Cf I � µ� � � � � � �: r � � .,..... : i '_...". : ��; � w ; I --- - ` I r. � �.�,+1�.-=—,-• � � . _ . _ _.. _ ;, ,"� � � { _,� �► �,, , � NI�( i � ' p►f� : , � . . _ .:_ __ , . ';, ' _ _� ~ : .- �"� _^�` �r � ~- _ . � .� � � 1 . � � � � � "'�„'-. i �� ,�._ . �.�; t ��ti ��� � � 11. � `� . . . � E PR�JECT TEAM [�]►i►I�I�:il _ ��-_� � ,� • �, -.,.�: :. '' -���� . ' li�. �'-�1�"��y __ _ _� �-_�� - ; �� "� .�,, ARCHIT�CT: Chandi Gro�p USA banielian Assaciates 4227� 5pectrum 5treet, 5�ite A 6d Carporate Park, lndio, CA 922Q3 Ir�ine, CA 926fl6 Praject Contact: Praject Contact: 7ani Merrihew Michael 6ayd, AIA tmerihew@chandigroupusa.cvm mboyd@danielian.com ENTITLEMENT SUBMITTAL R-3 �PAL1vl DESERT 1v�17CED USE __ . cH�alloi ��ouP CHANQI.G�our PALM �E�ERT, CA , ; �.. '`—+� � } .1 � ;s . 1 c, ' F.�'� � j;� �;, - ° , . a,��� ,: E • �y � , ��.:7 1 ! . . � .- �I�[ yl � � � �• - �iY�w:.-. �.+.�,«r .� LANQSCAPE ARCHITECT: T � `.;.• . . ..��..:�..-^- ' 4�f :. _ �,. j � �. ` I `i.., 1 ' � . ._.. I I ' � I��e� ,�,. R � � �� ;� " N � � r _. ;.. �- �1R',i �y A ����� { '^}� . � s _ - '-` .._ �I - � {wi� _�'���T �µ` L' : ; �� _ �, _ a .`�''�` _— _,..��"�, _ �_ �" �_ ' _ ,, - - ---.i:-�__ r '�-��-•-,. _. . -�' " r -^ '��^—�'� =�:..1" >�-' �`'-�-. � � ' - , . � Hermann Qesign Group 77-899 Woif Road, 5uite 1�2 Palm desert, CA 92211 Project Contact: Christopher Hermann., ASLA chris@hdg-inc.cflm [Kl�l1��►[�'ll►f��:� Black Gold Engineering Chandi Group, U5A 4227Q Spectrum 5treet India, CA 9�203 Project Contact: Mark Chappell, PE m�@ cha ndigrou p�sa. com PR�JECT INF�R1v1ATI�N ARCHlTEC�"IJRAI. A-1 A-1.1 A-2 A-3 A-4 A-5 A-F A-7 A-8 A-9 A-1 � A-11 A-12 A-13 A-14 A-15 A-1 � A-17 A-18 PR�JECT IN�dF2MATfON PR�JECT SLJMMARIES CONCEPTUAL 51TE PLAN LEVEL 1 8LlILQING PLAN tEVEL 2 B[JILDING PLAN L�VEL 3 8�11LdiNG PLAN tEVEL 4 SUILQING PLAN RQQF PtAN SECTI�NS SECTI�NS ELEVATI�tJS ELEVATIOlVS F2ENaERfNG VIEW REEVDERING VIEW RENDERENG VIEW RENaERlNG VIEW C�L�R & MATERIALS ADOITIDNAL MATER�ALS + DETAILED VIEWS A�JACElVT VEEWS TO 51TE LAN�SCAPE L1.0 L1.1 L1.2 L2. d L2.1 L2.2 L2.3 • ,i � :,.,� 15T FLOOR PLANTING 2Nf] FLfl�R PLAI�TING 3RQ FLDOR PLAN7ING 1S� FLD�R PLANT MATERIAL TREES & ACCENTS 1S� FLODR PLANT MATERIAL SHRUBS 2ND FLQ�R PLAAlT MATERIAL ACCEI�TS 3R� FLQOR PLANT MATERIAL TREES 8 5HR{J8S ".r. �� ,;. *� ,'_, � '•I , �� - �,:�. . r ; , r:, _ -i. � � ,� ���� ��.�; ����,� ��: �,� .f+� ,� ` �.,: :'�r. m.�:t�:z�: �� �,�;�.� �;�,: � , : � N �:�: � ���.��-� :' . - n� �— �a�aa.00 OCT 2d, 2n20 � _ � i C�AN � EL�AN I A 5 5 Q C I A T E S u r c h.+ e r. � s � c i u n n n r s www,danielicn.cam 9Aq,�I74.6030 i �* �. i t'"+ � t . _ �� t �� � I , �► . ..� ' �. 1 � ■ �___��.� _ ��------ �- ; _, �� � _ �: r � �-�: - � �� �: i �� _ . .; ; � � --- �.. � f r�_�-�' � �—�` ,1 � iTE -� :s'_q.-, � � ` �� `� � �: '�[� ;;�;�,, h �� ,,��.�� -� - � `� �: � � �; , � �.i� �, � �-�_�:�..� � , ?� - - � - �s - � ,�i �-,.i � �_- t _ - . _ �� ��,� - + � - . i':e-_ � - _f, ' `rt;-,: : _. - - •• ..- •, . - '•. !' �� , y.� �` �� : � ...- �=:. ► 1�' ,r .: c�1 � � � 1 + S a� _ � _, '�� � � �_ �`4 � i� - -- � ' � i � - — ENTITLEMENT SUBMITTAL R-3 PALM DESERT M17CED USE ��NCEPTUAL 51TE PLAN � . cHA�voi ��ouP CHANdI GRD�1P - ��,,� PALM �E�ERT, CA � �� � �� ` ! • ,�.ru �. � _ ` r. � � N� 18 � 44.C�0 OCT 2d, i02u � � i DANlELiAN I A 5 5 Q C I A T E S u r_ h-� e c. s � � i❑ n n n r s www,danielicn,carYl 9hq,�I74.6030 APN:627101033 APN:627101061 APN:ROW APN:627101002 APN:627101017 APN:627101062 APN:627101033 APN:627101061 APN:ROW APN:627101002 APN:627101017 APN:627101062 Date: 1/31/2019 I VICINITY MAP APN(s) 627-101-002, 017, 033, 061, 062 & ROW westerly of 061, 062 of size ~4,672sf City Owned 1.55 Acres [This page has intentionally been left blank.] BIKE STOR. RETAIL / COMMERCIAL ART PLAZA SAN PABLO AVENUE 6 8 18 9 10 7 ART PLAZA 10 RETAIL / COMMERCIAL TRASH RM. 10%8%17% TOC 184.98 187.33 183.8 +/-186.5 STEP AS NEED - TO WORK WITH SLOPING SIDEWALK BIKE STOR. MECH. RETAIL / COMMERCIAL 3,172 sf +/-185.5 STEP AS NEED - TO WORK WITH SLOPING SIDEWALK LEASING PARKING LEVEL 1 ELEC. RM. FIRE CMD LINE OF BUILDING ON LEVEL 3 DN8.33% SLOPE 3R @ 6" 1.5' HT @ 18' L DN 2R @ 6" DN UP UP UP DN UP DNUP F.H. UP STAIR 2 22 R @ 6.54" = 12' STAIR 4 STAIR 3 UP (1) LOADING GAS METERS VAN STAIR 1 42 R @ 6.85"= 24'0" 10M-2P 10M-2PSINK DW REF CHASE ELEV 1 ELEV 2 RECYCLE 4YD TRASH 4YD FUTURE COMPOST BINS CBOARD 4YD BOOSTER PUMP 185.04 2% DN DN CL MPOE GOLF/ MOTORCYCLE (10) LINE OF 2ND FLOOR BUILDING PAD ABOVE OPEN AIR SPACE MAIL RM. 1ST LEVEL PARKING: 68 SPACES 10 GOLF/MOTOR CYCLE SPACES 1ST FLOOR PLANTING L1.0 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 HERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGNGROUP 77-899 WOLF RD. OPEN TO BELOW CAFE DECK STOR. MEZZANINE MEZZANINE DECK FLEX AMENITY 2ND FLOOR PLANTING L1.1 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 HERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGNGROUP 77-899 WOLF RD. RANGE RANGE REF RANGE REF RANGERANGE RANGESINK DWSINKDW REF SINKDW3RD FLOOR PLANTING L1.2 FAX (760) 777-9132 PH. (760) 777-9131 PALM DESERT, CA SUITE 102 HERMANN LIC# 2754 92211 EXP. 04/30/22 DESIGNGROUP 77-899 WOLF RD.