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HomeMy WebLinkAboutORD 627RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: QQ City Clerk's Office LC City of Palm Desert C 73-510 Fred Waring Drive W x Palm Desert, CA 92260 kn � FOR THE BENEFIT OF THE f (n CITY OF PALM DESERT ; NO FEE 6103 OF THE GOVT. CODE t� Ic i ORDINANCE NO. 627 AN ONuiNANCE OF THE CITY COUNCIL OF THE 2()5654 CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT AND SUNRISE DESERT PARTNERS TO ALLOW CONSTRUCTION OF A RESIDENTIAL CONDOMINIUM/COUNTRY CLUB PROJECT IN SECTION 11, TSS, R6E. CASE NO. PREANNEXATION AND DEVELOPMENT AGREEMENT FOR VESTING TT 26123 WHEREAS, the City Council of the City of Palm Desert, California, did on the 8th day of November, 1990, hold a duly noticed public hearing which was continued to December 13, 1990, to consider the request of SUNRISE DESERT PARTNERS to consider the above mentioned project; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said city council did find the following: 1. That the development agreement is consistent with the provisions of Section 25.37 Development Agreements. 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 does hereby approve the Development Agreement, Exhibit "A", for Case No. Vesting TT 26123 between the City of Palm Desert and Sunrise Desert Partners. PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council, held on this loth day of January, 1991, by the following vote, to wit: AYES: BENSON, CRITES, KELLY, SNYDER NOES: NONE ABSENT: WILSON ABSTAIN: NONE }( ES vv _ / CityofPalmTDeSer California SRS/tm WALTER H. SNYDER, Mayof EACH DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHrD, !S CERTFiF•n TO RE A FULL, TR9E ANO CORRECT COPY CF THE ORIGINAL ON FILE AND ON RECORD IN MY OFFICE. Dated: Q---�^-- S'r.Eiu1 R GILIGAN, City Clark City of is rt Ca!ifornia FOR THE BENEFIT OF CITY OF PALLI D^QE?';- NO FEE 6103 OF THE GOVT.. CODE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: Citv Clerk (Space Above This Line For Recorder's Use) INDIAN RIDGE COUNTRY CLUB PREANNEXATION AND DEVELOPMENT 205654 TABLE OF CONTENTS 205654 Page No. RECITALS 1 AGREEMENT 3 1.0 Definition of the Project ...................... 3 2.0 Definition of Terms ............................ 3 3.0 Property Interest .............................. 3 4.0 Timing of Annexation ........................... 4 5.0 Compliance with CEQA ........................... 4 6.0 Consistency with the General Plan .............. 4 7.0 Sunrise's Obligations .......................... 4 7.1 Development Fees ......................... 4 7.2 Mello -Roos Community Facilities District for Cook Street Improvements .... 5 7.3 Drainage Facilities ...................... 5 7.4 Street Improvements ...................... 6 7.4.1 Avenue 42 (Southern Perimeter of the Property) .................. 6 7.4.2 Eldorado Drive (Western Perimeter of the Property) ........ 6 7.4.3 Oasis Club Drive (Eastern Perimeter of the Property) ........ 6 7.4.4 Country Club Drive (Northern Perimeter of the Property) ........ 6 7.4.5 Sidewalks ......................... 6 7.4.6 Traffic Signals ................... 6 7.5 Time for Commencement .................... 7 8.0 City's Obligations ............................. 7 8.1 Development in Accordance with Existing Approvals .. ...... .......... 7 8.2 Timely Application and Processing ........ 7 8.3 Exemption From Construction Moratorium ... 7 8.4 Review of Subsequent Applications ........ 7 8.5 Other Governmental Permits .............. 8 8.6 Cooperation in Formation of CFDs ......... 8 -11- 205654 9.0 Limitations, Reservations and Exceptions ....... 8 9.1 Reservations of Authority ................ 8 9.2 Future Regulations ...... •...... ...... 9 9.3 State and Federal Laws andRegulations ... 9 9.4 Full Extent of Law ....................... 9 10.0 Periodic Review of Compliance .................. 9 10.1 Planning Commission Review ............... 9 10.2 Appeal to City Council ................... 10 10.3 City Council Action ...................... 10 11.0 Term ........................................... 10 12.0 Amendment ...................................... 10 12.1 Initiation of Amendment . ................. 10 12.2 Insubstantial Deviationsfrom Development Plan ... .. .............. 10 12.3 Administrative Interpretations Not In Conflict with Purposes of this Agreement 11 13.0 Partial Invalidity ............................. 11 14.0 Enforceability ................................. 11 15. Remedies ....................................... 11 15.1 Specific Performance ..................... 11 15.2 Withdrawal ............................... 11 16.0 Mortgagee Protection ........................... 12 17.0 Miscellaneous Provisions ....................... 12 17.1 Incorporation of Exhibits ................ 12 17.2 No Agency Created ........................ 12 17.3 Force Majeure ............................ 12 17.4 No Third Party Beneficiaries ............. 13 17.5 Assignment ............................... 13 17.6 Entire Agreement ......................... 13 17.7 Recitals .... ... ..... ........... 13 17.8 Further Actions andInstruments .......... 13 17.9 Notices .. • ....... ................. 13 17.10 Construction ofAgreement................ 14 17.11 Counterparts ............................. 14 17.12 Hold Harmless.......................... 14 17.13 Reimbursement of Costs ................... 14 205654 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: Citv Clerk (Space Above This Line For Recorder's Use) INDIAN RIDGE COUNTRY CLUB PREANNEXATION AND DEVELOPMENT AGREEMENT PURSUANT TO THE AUTHORITY of state law, including Sections 65864 through 65869.5 of the California.. Government Code, this Preannexation and Development Agreement ( "Agreement" ) is entered this loth day of January. 1991 SM, by and between the City of Palm Desert ("City"), a municipal corporation of the State of California, and Sunrise Desert Partners ("Sunrise"), a California limited partnership. R E C I T A L S: The parties hereto have entered into this Agreement on the basis of the following facts, understandings and intentions. A. Sunrise is the owner of property consisting of approximately 640 acres (the "Property"), bounded by Country Club Drive on the north, Avenue 42 on the south, Eldorado Drive on the west and Oasis Club Drive on the east, as more particularly described in Exhibit A. The Property currently is located within the sphere of influence of the City, in the County of Riverside. On September 20 , 1990, a petition was submitted to the Riverside County Local Agency Formation Commission ("LAFCO") requesting the annexation of the Property to the City. B. Sunrise has proposed the development of Indian Ridge Country Club, a planned community of no more than 1,500 homes, on the Property (the "Project"). The Project will consist of a residential community, two eighteen -hole championship golf courses, and a clubhouse featuring golf, tennis, swimming and health spa facilities. The Project will include a diversity of housing types appealing to a broad range of residents. 205654 C. The City is authorized to enter into binding preannexation agreements which set forth the terms and conditions upon which property will be developed following annexation to the City. Pursuant to Government Code sections 65864-65869.5, the City is further authorized to enter into binding development agreements which encourage and provide for the development of public facilities in order to support the development of new housing; provide certainty in the approval of development projects in order to avoid a waste of resources and an escalation in the cost of housing and other development to the consumer; provide assurance to developers that they may proceed with their projects in accordance with existing policies, rules and regulations, subject to their conditions of approval; and strengthen the public planning process and encourage private participation in comprehensive planning. D. The development of the Project requires substantial early and major capital expenditures and investments with respect to the construction and installation of major infrastructure and facilities, both on -site and off -site, of sufficient capacity to serve the Project as anticipated by the General Plan of the City and this Agreement. E. The City has approved the following entitlements for the Project: pgrezoning of the Project site to P.R.-5, by Ordinance No. 1675 a Precise Plan for the Project, by Resolution No. 90-146 ; and a vesting tentative map for the Project, by Resolution No. 90-145 (collectively, "Existing Approvals"), contingent upon the annexation of the Property to the City. F. The Project site is designated P.R.-5 by the General Plan and the North Sphere Specific Plan. This designation allows the development of a maximum of five residential units per gross acre. The residential density of the Project will not exceed 2.35 units per gross acre and is, therefore, consistent with the General Plan and North Sphere Specific Plan. The P.R.-5 prezoning, which also allows the development of five residential units per gross acre, is consistent with the designation of the Project site in the General Plan and North Sphere Specific Plan. G. The City has undertaken the necessary review of the environmental effects of the Project pursuant to the California Environmental Quality Act ("CEQA"). On December.13 , 1990, the City Council approved a negative declaration ("Negative Declaration") for the Project by Resolution No.-90-145. The Negative Declaration evaluates potential impacts of the Project on the environment and sets forth the City's reasons for concluding that these impacts will not be significant. H. This Agreement is intended to establish standards and requirements for the development of the Project, and to -2- 205654 provide for the orderly development of the Project, thereby assuring the public benefits identified by the City in this Agreement. I. Following due consideration of all evidence submitted or heard at duly noticed public hearings, the City Planning Commission and City Council have found and determined that this Agreement (a) is consistent with the City's General Plan; (b) is in the best interests of the health, safety and general welfare of the City, its residents and the public; (c) is entered into pursuant to and constitutes a present exercise of the police power by the City; (d) is entered into pursuant to and in compliance with the requirements of state law; and (e) is entered into for valuable and adequate consideration, based on the obligations assumed by Sunrise hereunder. I. The City has determined that the Project implements the goals and policies of the City's General Plan applicable to the Project. The City further finds that the Project imposes appropriate standards and requirements with respect to land developments and usage so as to maintain and improve the quality of life and the environment within the City. A G R E E M E N T NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, the parties hereto agree as follows: 1.0 Definition of the Project. The Project is a planned community consisting of a maximum of 1,500 residential units, two eighteen -hole golf courses, a clubhouse and sports facilities, as more particularly described in the development plan attached hereto as Exhibit B ("Development Plan"). The permitted uses of the Property, the density or intensity of use, and the maximum height and size of proposed buildings shall be as set forth in the Development Plan. 2.0 Definition of Terms. "Date of Enactment" shall mean the date of the second reading of the ordinance by which the City approves this Agreement. "Effective Date" shall mean that date (thirty days after the Date of Enactment) upon which this Agreement becomes effective, pursuant to state law. 3.0 Property Interest. Sunrise has shown to the City's satisfaction that its interest in the Property meets the requirements of the -3- 2®5654 Development Agreement taw. Sunrise is the owner in fee of the Property. 4.0 Timina of Annexation. This Agreement shall not annexation proceedings annexing the completed within one year from the annexation is not completed within Agreement or any extension of the shall be null and void. 5.0 ComDliance with CEQA,. become operative unless Property to the City are Effective Date. If the the time specified in the Agreement, the Agreement The City has determined that this Agreement is consistent with and within the scope of the Negative Declaration. The City has determined that there are no substantial changes in the Project, or in the circumstances under which the Project will be undertaken pursuant to this Agreement, which involve new significant impacts not considered in the Negative Declaration. Therefore, no further environmental analysis of this Agreement is required under CEQA. 6.0 Consistencv with the General Plan. The designation of the Property in the General Plan is Planned Residential ("P.R.") 5. The P.R. designation allows the development of residential uses, community facilities, recreational uses and related accessory uses, and other uses or mixtures of residential with country club related commercial uses, as designated on an approved precise plan. The P.R. district is intended to provide for flexibility in development, creative and imaginative design, and the development of parcels of land as coordinated projects involving a mixture of residential densities and housing types, and community facilities, both public and private. The P.R.-5 designation establishes that five residential units per gross acre are permitted. The Project is consistent with this designation because it will incorporate residential and country club related uses in a creative design, and will not exceed five residential units per gross acre. The City has further determined that this Agreement will implement the goals and policies of the General Plan of the City, including the goals of developing a land use pattern that takes optimum advantage of the City's natural assets, providing for an orderly balance of land uses within convenient and compatible locations and creating a distinctive sense of place and identity for each community and neighborhood in the City. 7.0 Sunrise's Obliaations. 7.1 Development Fees. Sunrise shall pay all fees which are required as conditions of approval for the Project, and/or which are contained in City ordinances or resolutions in -4- 205654 effect at the time of Project approval. The fees payable by Sunrise in connection with the Project shall include, but are not limited to, the following: (a) City park fees, pursuant to the Subdivision Map Act; (b) City Art in Public Places fee; (c) school fee payable to Desert Sands Unified School District, based on state law requirements; (d) Transportation Uniform Mitigation Fee, applicable to regional transportation and public works projects; (e) water and sewer fees payable to Coachella Valley Water District; and (f) Fringe -Toed Lizard Fee, payable under the Fringe -Toed Lizard Habitat Conservation Plan 7.2 Mello -Roos Community Facilities District for Cook Street Improvements. The Property shall participate in the proposed Mello -Roos Community Facilities District ("CFD") or assessment district for improvements to Cook Street to the extent determined by the "Special Tax Report" to be filed in connection with the proceedings of the City of Palm Desert, in the Office of the City Clerk of the City of Palm Desert. The City and Sunrise hereby acknowledge that the sum of $1,687,712 is a reasonable allocation of public infrastructure costs attributable to the Project. Therefore, the maximum obligation to be imposed on the Property pursuant to the Cook. Street CFD or assessment district shall be $1,687,712. Sunrise further agrees to advance $50,000 for the formation of the Cook Street CFD, subject to reimbursement from Mello -Roos bond proceeds. Any Transportation Uniform Mitigation Fees (as more particularly described in Section 7.1 herein) shall be credited against the $1,687,712 Cook Street CFD obligation. The application of this credit is in recognition that the payment of Transportation Uniform Mitigation Fees represents a contribution by the Project to the public infrastructure costs of the Project, and results in a reasonable allocation of public infrastructure costs attributable to the Project. 7.3 Drainaae Facilities. The Project shall be designed to retain drainage from a 100-year storm on -site. If the City imposes a drainage fee applicable to the Property, Sunrise shall receive a fair and equitable credit against this fee. The credit shall be based on the reduction in the City's cost of building drainage improvements attributable to the Project's on -site retention of drainage. Drainage fees for the construction of regional drainage improvements which would be necessary regardless of the on -site drainage, shall be paid in an amount which shall be based on the City of Palm Desert Master Drainage Plan prepared by NBS/Lowry upon its adoption by the Palm Desert City Council. 7.4 Street Improvements. Sunrise shall provide landscaping and other improvements to all streets directly adjacent to the Property, as follows. All descriptions of street sections are approximate, and are subject to modification without amendment of this Agreement. -5- 205654 7.4.1 Avenue 42 (Southern Perimeter of the Prooertv). The northern half of the 100-foot right of way shall be dedicated and improved to include 32-foot driving lanes, a 12-foot landscaped parkway and one-half of the 12-foot landscaped median. In addition, Sunrise shall construct the southern half of the landscaped median adjacent to Oasis Country Club, where the southern half of the street is fully improved but no median exists. 7.4.2 Eldorado Drive (Western Perimeter of the Prooertv). The eastern half of the 110-foot right of way shall be dedicated and improved. The western half also shall be improved, beginning one-half mile south of Country Club Drive (where improvements to the western half now end) and extending one-half mile south to the intersection of Avenue 42. The construction of these improvements to the western half of Eldorado Drive shall be subject to a reimbursement agreement administered by the City, pursuant to which Sunrise shall be reimbursed for the cost of the improvements when the adjacent land to the west is developed. The Eldorado Drive street section shall consist of 12-foot parkways on both sides, 34 feet of driving lanes in each direction and an 18-foot landscaped median. In addition to the landscaping of the 12-foot parkway, Sunrise shall also landscape 8 feet outside its perimeter wall, for a total of 20 feet of landscaped perimeter on the eastern side of Eldorado Drive. 7.4.3 Oasis Club Drive (Eastern Perimeter of the, Prouertv). The western half of a 100-foot right of way shall be dedicated and improved to include a 12-foot landscaped parkway, 32-foot driving lanes and a 12-foot painted center median. 7.4.4 Country Club Drive (Northern Perimeter of, the Prooertv). Sunrise has fully improved the southern half of Country Club Drive, adjacent to the Property. The 12-foot parkway shall be landscaped, along with an additional 18 feet outside the Project's north perimeter wall, for a total of 30 feet of landscaped perimeter on Country Club Drive. 7.4.5 Sidewalks. Concrete sidewalks shall be constructed on all four perimeters of the Property. Sidewalk width shall be eight feet on Country Club and E1 Dorado Drives and six feet wide on Oasis Club Drive and 42nd Avenue. 7.4.6 Traffic Signals. Sunrise shall provide for the conversion of the existing three-way traffic signal on Country Club Drive at the main project entry to a four-way configuration and pay one-fourth the cost of traffic signal installation at the intersections of Country Club Drive and Oasis Club Drive, 42nd Avenue and Oasis Club Drive, and E1 Dorado Drive and 42nd Avenue. Traffic signalization fees required for the Project may be used as credits against these costs. MM 205654: 7.5 Time for Commencement. Sunrise shall commence construction of the Project within ten (10) years of the Effective Date of this Agreement. Failure to do so shall be considered a default by Sunrise. Notwithstanding the foregoing, the time for commencement may be extended by agreement of the parties upon a showing by Sunrise of good cause for the extension. 8.0 Citv's Obligations. 8.1 Development in Accordance with Existinq Approvals. To the fullest extent of the City's authority and jurisdiction, Sunrise shall have a vested right to design, construct, operate and maintain the Project in accordance with the Development Plan, Existing Approvals and the terms of the rules, regulations, and ordinances of the City in effect as of the Date of Enactment of this Agreement ("Local Rules"). The City shall not impose, or seek to impose, any additional requirements, exactions, fees or payments, or dedication or reservation requirements except those expressly set forth in the Reservation of Authority. 8.2 Timely ADDlication and Processinq. The City hereby acknowledges that the timely development of the Project will benefit the public health, safety, and welfare. In recognition of this, the City and Sunrise agree to cooperate in the expeditious processing and review of all applications for further approvals required by the Project. The City shall not impose any exaction or restriction (except requirements relating to the normal processing of applications for development approvals) which would delay, interfere with or impede the commencement or rate of design, construction, development or operation of the Project or any component thereof as contemplated by the Development Plan. 8.3 ExemDtion From Construction Moratorium. The City specifically agrees and acknowledges that the Project is exempt from the construction moratorium adopted by the City on or about April 26, 1990, as set forth in Ordinance No. 602, and from any extensions to the construction moratorium which the City may adopt in the future. 8.4 Review of Subsequent ADDlications. The Project, including subsequent applications for approvals necessary for the development of the Project in accordance with the Development Plan, shall not be subject to any changes in the Local Rules or new Local Rules adopted subsequent to the Date of Enactment, which would interfere or conflict with .the development of the Project for the uses and to the height, design standards, density and intensity of use specified in the Development Plan, or with the rate of development of the Project, except as otherwise provided by this Agreement, including the Reservations of Authority. The City shall -7- 205654 promptly issue any permits which may be required to implement the Development Plan, provided that Sunrise is in compliance with this Agreement and the Local Rules in effect as of the Date of Enactment. 8.5 Other Governmental Permits. Sunrise may apply for such other permits and approvals from other governmental or quasi -governmental agencies having jurisdiction over the Project as may be required for the development, design, construction, or operation of the Project in accordance with the Development Plan. The City shall cooperate with Sunrise in its efforts to obtain such permits and approvals and shall assist in expediting LAFCO processing of the annexation of the Property. 8.6 Cooperation in Formation of CFDs. In addition to the Cook Street CFD described in Section 7.2, the City and Sunrise intend to consider the formation of one or more CFDs which will include the Property, or a portion thereof, within their boundaries for the purpose of financing various off -site improvements. The City shall use its best efforts to cooperate with Sunrise in the formation and establishment of such CFDS; provided, however, that nothing herein shall prevent Sunrise in its sole discretion from voting against the formation of any CFD, with the exception of the Cook Street CFD. 9.0 Limitations. Reservations and Exceptions. 9.1 Reservations of Authoritv. Notwithstanding any other provision of this Agreement, the following rules, regulations and ordinances of the City which may come into effect after the Date of Enactment of this Agreement shall apply to the development of the Property. A. Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. B. Changes in regulations governing construction standards and specifications after the effective date of this Agreement which are required by changes in state or federal law or federal laws or regulations, or by changes in the uniform building code, plumbing code, mechanical code, electrical code, fire code and grading code. C. Processing fees and charges of every kind and nature imposed by the City, on a uniform City-wide basis at the time such fees are due, to cover the estimated actual costs to the City of processing applications for development approvals or for monitoring compliance with any development approvals granted or issued. -8- D. Regulations which the Development Plan, but which are project the public health and safety; any such regulation shall be applied provide Sunrise with the rights and this Agreement. of Sunrise. 205654 may be in conflict with reasonably necessary to to the extent possible, and construed so as to assurances provided under E. Regulations applied with the written consent 9.2 Future Reaulations. Nothing herein shall prevent the City, in subsequent discretionary approvals for the Project, from applying new rules, regulations, or ordinances (1) not inconsistent or in conflict with the Local Rules or with the purposes and conditions of this Agreement, and (2) which do not interfere or conflict with the height, density or intensity set forth in the Development Plan or with the rate of development selected by Sunrise. 9.3 State and Federal Laws and Reaulations. The Project shall be subject to existing and future state and federal laws and regulations, together with any City land use regulations, programs and actions, or inaction, which are reasonably (taking into consideration, among other things, the assurances provided to Sunrise hereunder) adopted or undertaken by the City in order to comply with state and federal laws and regulations; provided, that in the event that state or federal laws and regulations prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or suspended as may be necessary to comply with such state and federal laws and regulations. In such event, this Agreement shall remain in full force and effect to the extent that it is not inconsistent with such laws and regulations and that performance of the remaining provisions would not be inconsistent with the intent and purposes of this Agreement. 9.4 Full Extent of Law. The parties acknowledge and agree that the City is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to the City all of its police power which cannot be so limited. 10.0 Periodic Review of Compliance. 10.1 Plannina Commission Review. The Planning Commission, at a public hearing, shall conduct a compliance review of this Agreement within six months from the Date of Enactment, and annually thereafter. At least one week prior to the Planning Commission compliance hearing, Sunrise shall submit a letter to the Planning Commission, demonstrating its good faith compliance with this Agreement. If the Planning Commission finds that Sunrise has demonstrated good faith compliance with this Agreement, the annual review shall be deemed concluded. SM 205654 10.2 Anneal to Citv Council. If the Planning Commission finds and determines on the basis of substantial evidence that Sunrise has not complied in good faith with this Agreement, the Planning Commission shall (1) specify actions to be taken to cure the default under the Agreement, (2) propose the modification of the Agreement, or (3) propose the termination of the Agreement. Sunrise shall have the right to appeal any portion of any such action to the City Council within thirty days of the date of the Planning Commission action. 10.3 Citv Council Action. Upon appeal by Sunrise pursuant to Section 10.2 herein, the City Council shall conduct a hearing to determine whether Sunrise is in good faith compliance with this Agreement. If the City Council determines that Sunrise is in good faith compliance, the annual review process shall be deemed completed. If the City Council finds that Sunrise has not complied in good faith with this agreement, it shall (1) specify actions to be taken to cure the default under the Agreement, (2) modify the Agreement, or (3) terminate the Agreement. 11.0 Term. This Agreement shall commence on the Effective Date and shall continue in effect for twenty years from the Effective Date. This term is intended to provide sufficient time for the full repayment of the bonds to be issued by the CFD referred to in Section 7.2, or of any other debt obligations incurred in lieu of such bonds. If the parties determine that a longer period is necessary to achieve the purpose stated herein, the term of this Agreement may be extended by the further written agreement of the parties in accordance with Section 12.3. 12.0 Amendment. 12.1 Initiation of Amendment. Either party may propose an amendment to this Agreement. Except as otherwise provided herein, cancellation or amendment shall follow the notice and hearing requirements established by applicable law for the consideration of development agreements. 12.2 Insubstantial Deviations from Development Plan. Any insubstantial deviation from the Development Plan with respect to the location, size, or height of structures, streets, and other physical facilities, as determined by the Director of Planning, may be approved by the person or body with authority to approve the plans for such facilities without amendment of this Agreement, in accordance with City policy. Insubstantial deviations shall include, without limitation, the introduction of different housing product types and the replotting of the locations of houses, so long as such -10- 205654 deviations are not inconsistent with (a) the permitted uses described in Exhibit B, and (b) City policy in effect at the time of entry into this Agreement. 12.3 Administrative Interpretations Not in Conflict. With Purnoses of This Agreement. Upon agreement of the parties hereto, memoranda of administrative interpretation may be entered into regarding any aspect of this Agreement which does not relate to permitted uses, density or intensity of use, height or size of buildings, provisions for reservation of land, conditions, restrictions and requirements relating to subsequent discretionary approvals, rate of development, or the term of the Agreement. 13.0 Partial Invaliditv. If any material provision of this Agreement is determined to be void, invalid, or illegal by a final judgment of a court of competent jurisdiction, the parties may (a) amend this Agreement pursuant to the procedures set forth herein, or (b) by mutual agreement of the parties, terminate the Agreement. 14.0 Enforceabilitv. It is acknowledged and agreed by the parties hereto that any assurances provided to Sunrise with respect to the imposition of additional exactions, regulations, or restrictions affecting permitted uses, intensity of use, density, height, or the rate of development of the Project are (a) intended to be relied upon by Sunrise; (b) made in exchange for valuable and adequate consideration provided by Sunrise in the form of covenants and commitments as set forth in this Agreement; and (c) made with the understanding that such assurances will not be amended, changed, or increased except as provided herein. 15.0 Remedies. 15.1 Specific Performance. The parties agree and understand that a breach of this Agreement may result in irreparable harm to the non -breaching party, and that specific performance of this Agreement is a proper and desirable remedy. 15.2 Withdrawal. In the event that Sunrise is unable to construct and operate the Project in a manner set forth in the Development Plan and this Agreement because of (a) this Agreement or any portion hereof being determined to be invalid or unenforceable, (b) the imposition of any exaction, restriction, or change in the Local Rules not specifically provided for in this Agreement, or (c) Sunrise reasonably determining that the Project, despite good faith efforts, is economically infeasible, in addition to any other remedy which it might possess, Sunrise shall have the right upon written notice to the City to withdraw from this Agreement. -11- 205654 Thereafter, the City and Sunrise shall be released from any and all further liabilities or obligations hereunder. Sunrise's notice to the City that it is withdrawing from this Agreement shall constitute a waiver of Sunrise's rights hereunder and the Project shall be subject to City review according to the rules and regulations in existence at that time. 16.0 Mortgaaee Protection. No breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any deed of trust or mortgage made in good faith and for value, and no holder of a deed of trust or mortgage ("Mortgagee") shall have an obligation or duty under this Agreement to perform Sunrise's obligations or to guarantee such performance. Notwithstanding the foregoing, any acquisition or acceptance of title or any right or interest in or with respect to the Property or any portion thereof, by a Mortgagee (whether under or pursuant to a mortgage, foreclosure, trustee's sale, deed in lieu of foreclosure, or otherwise), shall be subject to all of the terms and conditions contained in this Agreement. 17.0 Miscellaneous Provisions. 17.1 Incorporation of Exhibits. Exhibits A and B, attached hereto, are incorporated herein by this reference. 17.2 No Aaencv Created. It is understood and agreed to by the parties that the Project is a private development, that neither party is acting as the agent of the other in any respect and that no partnership, joint venture or other association of any kind is formed by this Agreement. 17.3 Force MaZeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond such party's control, government regulations, court actions (such as restraining orders or injunctions) or other causes beyond such party's control. If any such events shall occur, the term of this Agreement and the time for performance by either party of any of its obligations hereunder shall be extended by the period of time that such events prevented such performance, provided that the terms of this Agreement shall not be extended for a period which would cause this Agreement or provisions hereof to be void as violating the rule against perpetuities. 17.4 No Third Partv Beneficiaries. This Agreement is entered into for the sole protection and benefit of the parties and their successors and assigns. No third -party beneficiaries are created by this Agreement. -12- 205654 17.5 Assianment. This Agreement shall not be assigned or otherwise transferred without the prior written consent of the City; provided, however, that such approval shall not be unreasonably withheld. This Agreement shall benefit and bind all subsequent transferees. Express assumption of any of the obligations hereunder by any transferee permitted by this paragraph shall relieve the transferor from any assumed obligation. 17.6 Entire Aareement. This Agreement constitutes the entire Agreement between the parties with respect to the subject matter of the Agreement. 17.7 Recitals. The recitals to this Agreement constitute part of this Agreement. Each party shall be entitled to rely on the truth and accuracy of each recital as an inducement to enter into this Agreement. 17.8 Further Actions and Instruments. Upon the request of either party, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments or writings, including estoppel certificates, and take any actions that may be reasonably necessary under the terms of this Agreement to carry out the intent, fulfill the provisions, and evidence or consummate the transactions contemplated by this Agreement. 17.9 Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent certified mail, postage prepaid and addressed as follows: To City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Ramon A. Diaz. ACM/Director of Planning To Sunrise: Sunrise Desert Partners 42-600 Cook Street, Suite 200 Palm Desert, California 92260 Attn: Phillip K. Smith, Jr. with a copy to: Nossaman, Guthner, Knox & Elliott 650 Town Center Drive, Suite 1250 Costa Mesa, California 92626 Attn: Jean O. Melious, Esq. Any notice given as required herein shall be deemed given seventy-two hours after deposit in the United States mail or upon receipt. A party may change its address for notices by giving notice in writing to the other party as required herein. -13- 20,S65,J 17.10 Construction of Agreement. The captions in this Agreement are for convenience only and shall not be considered or referred to in resolving questions of construction. This Agreement shall be governed by the laws of the State of California. 17.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 17.12 Hold Harmless. Sunrise agrees to and shall hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from the direct or indirect operation of Sunrise or those of its contractors, subcontractors, agent, employee, or other person acting on its behalf which relate to the Project. Sunrise agrees to and shall defend City and its officers, agents, employees and representatives from actions for damages caused or alleged to have been caused by reason of Sunrise's activities in connection with the Project. This provision applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this paragraph, regardless of whether or not the City prepared, supplied or approved plans or specifications or both for the Project. It does not apply to negligent acts or omissions by the City. Sunrise further agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any action challenging the validity of this Agreement. 17.13 Reimbursement, of Costs. Sunrise shall pay to City its direct costs associated with entering into this Agreement, as shown on itemized City invoices. Such costs shall be paid prior to issuance of final approvals. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date(s) set forth below, as of the day and year first above written. Date: "2-:y-�"City" CITY OF PALM DESERT BV Its /12 AYD -14- Date: 2 / 2 - 9 / Date: 06/05/91 Date: 06/07/91 "Sunrise" SUNRISE DESERT PARTNERS By Sunrise Corporation Its General Partner Bev Its .CXe.cr� 7 e ✓'« /0.1' , ai4e-w7` APPROVED AB`/TO FORM: `Cit)fAttorney City of Palm Desert City Clerk City of Palm I CAT. NO. NN00635 TO 1954 CA (9-84) (Corporation as a Partner of a Partnership) J TICOR TITLE INSURANCE STATE OF CALIFORNIA COUNTY OF Riverside �' 205654 On Feb. 12, 1991 before me, the undersigned, a Notary Public in and for said Slate, personally appeared Phillip R. Sm i h 7r personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed = the within instrument as the Executive Vice President,a.! J _L. l L _L . ` t um.na a. ans gssml6ly of Sunrise Corporation the corporation that executed the within instrument on behalf of Sunrise Desert Partners �4MN��MNNM M�Iy�' the partnership that executed *my OFFICAAL KI the within instrument, and acknowledged to me that such AL U- R. LEVIN corporation executed the same as such partner and that WAw g16UOMIPMWA such partnership executed the same. PRMCK'Pl.OFM M WITNESS hand and seal. F)IVERSIDECd1NW Canmieeia9 Esp Aug. 21.1902 1/\�/1 � NN�NIM�1���MMMIMr Signature ` iC (This area for official notarial scal) 205654 C521886 EXHI'B'IT "A" DESCRIPTION The land referred to in this report is situated in the County of Riverside, State of California, and is described as follows: DIVISION I PARCEL 1: All that portion of the West half of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California,'more particularly described as follows: Beginning at the Northeast corner of said West half; thence South 89010145" West, on the North line of said West half, 1,330.18 feet, to an intersection with the Northerly prolongation of the West line of Parcel 1, as shown by Record of Survey on file in Book 35, Page 13 of Records of Survey, Records of Riverside County, California; thence South 00062133" West, on said Northerly prolongation and on said West line, 5,317.88 feet to the Southwest corner of said Parcel 1; thence North 89028115' East, on the South line of said Parcel 1, 1,325.54 feet to the Southeast corner thereof; thence North 00005130" East, on the East line of said Parcel 1 and the Northerly prolongation thereof, 5,324.71 feet to the point of beginning; Said property is also shown as Parcel 1 of Record of Survey on file in Book 35, Page 13 of Records of Survey, Records of Riverside County, California; EXCEPT that portion described in the deed to the County of Riverside by document recorded August 11, 1972 as Instrument No. 107739 of Official Records of Riverside County, California. -16 - �®5654 C521886 EXHIBIT "A" (Cont'd.) PARCEL 2: The West half of the Northeast quarter and the North half of the Northwest quarter of the Southeast quarter of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, as shown by United States Government Survey; EXCEPT the Northerly 44.00 feet thereof, as described in the deeds to the County of Riverside recorded March 31, 1958 as Instrument No. 23189 in Book 2246, Page 519 and on April 15, 1958 as Instrument No. 27209 in Book 2255, Page 236 both respectively of Official Records of Riverside County, California. PARCEL 3: The East half of the East half of the East half of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California; EXCEPT the North 44.00 feet thereof, described in the Deeds to the County of Riverside, by deeds recorded March 31, 1958 in Book 2246, Page 519 as Instrument No. 23189 and on April 15, 1958 in Book 2255, Page 236 as Instrument No. 27209 both respectively of Official Records of Riverside County, California; ALSO EXCEPT the Southeast quarter of the Southeast quarter of said section. PARCEL 4: The South half of the Southeast quarter and the South half of the Northwest quarter of the Southeast quarter of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, according to the official plat thereof. :r -17- EXHIBIT "A" (Cont'd.) DIVISION II 205654 C521886 All that portion of the West half of the West half of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, according to the official plat thereof, described as follows: Beginning at the Northeast corner of said West half of Section 11; thence South 89010145/1 West on the North line of said West half, 1,330.18 feet, to an intersection with the Northerly prolongation of the West line of Parcel 1, as shown by Record of Survey, on file in Book 35, Page 13 of Records of Survey, Records of Riverside County, California and the true point of beginning; thence South 00002133/1 West on said Northerly prolongation and on said West line, 5,317.88 feet to the Southwest corner of said Parcel 1; thence South 8902811511 West on the South line of Parcel 2 as shown by said Record of Survey, 1,330.58 feet to the Southwest corner thereof; thence North 00005100/1 East on the West line of Parcel 2, 2;655.61 feet to an angle therein; thence North 00000145/1 East on said West line and the Northerly prolongation thereof, 2,655.51 feet to the Northwest corner of Section 11; thence North 8901014511 East on said North line of said West half, 1,330.18 feet to the true point of beginning. EXCEPT that portion described by deed to Southern California Edison Company, a California corporation recorded October 26, 1982 as Instrument No. 184850. DIVISION III The West half of the East half of the East half of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, according to the official plat thereof. EXCEPT the North 44.00 feet, described by deeds to the County of Riverside recorded March 31, 1958 in Book 2246. Page 519 and April 15, 1958 in Book 2255. Page 236, Records of Riverside County. ALSO EXCEPT the Southeast quarter of the Southeast quarter of said section. Note: Said land is also known as all that property lying within the boundaries of Tentative Tract 26123, a portion of said land is to be resubdivided into Tract 26757. 205654 EXHIBIT B Development Plan 1. Permitted Uses of the Property Housing, including single family detached one- and two-story homes and attached homes containing from two to six units per building; Two eighteen -hole golf courses and ancillary facilities, including but not limited to maintenance facilities, half -way houses with snack shops and rest rooms; Entry complexes; Sales, resales and rentals building; A clubhouse, including golf, tennis and health spa facilities, dining rooms, freestanding grill room/snack shop, lounges, banquet and meeting rooms, golf pro shops, a tennis and spa pro shop, at least fourteen tennis courts (seven night -lighted), four night -lighted paddle tennis courts, two night -lighted croquet courts, swimming pools, locker room facilities, child care center and teen activity room. The power source for the building may consist of a cogeneration facility. 2. Maximum Heiahts of Buildinas The maximum height of residential buildings will be 30 feet. The maximum height of the clubhouse will be 60 feet. The maximum height of ancillary golf facilities (including golf maintenance facilities, half -way houses with snack shops and rest rooms) will be 30 feet. The maximum height of entry complexes will be 30 feet. The maximum height of the sales, resales and rentals building will be 30 feet. -19- 205654 3. Density and Intensitv of Use: Maximum Size of Buildinces ORI:JJF:54 Residential: No more than 1,500 homes shall be constructed. This constitutes a density of approximately 2.35 units per acre. Homes shall range in size from 1,'20.O 'to 4,000 square feet. Clubhouse: The clubhouse shall not exceed 125,000 square feet in size. The freestanding grill room/snack shop shall not exceed 5,000 square feet. Ancillary golf facilities, including golf maintenance facilities, half -way houses with snack shops and rest rooms, shall not exceed 40,000 square feet. Entry complexes shall not exceed 7,500 square feet. The sales, resales and rentals building shall not exceed 5,000 square feet. -20 - ORDINANCE NO. 627 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT AND SUNRISE DESERT PARTNERS TO ALLOW CONSTRUCTION OF A RESIDENTIAL CONDOMINIUM/COUNTRY CLUB PROJECT IN SECTION 11, T5S, R6E. CASE NO. PREANNEXATION AND DEVELOPMENT AGREEMENT FOR VESTING TT 2612 WHEREAS, the City Council of the City of Palm Desert, California, did on the 8th day of November, 1990, hold a duly noticed public hearing which was continued to December 13, 1990, to consider the request of SUNRISE DESERT PARTNERS to consider the above mentioned project; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said city council did find the following: 1. That the development agreement is consistent with the provisions of Section 25.37 Development Agreements. 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 does hereby approve the Development Agreement, Exhibit "A", for Case No. Vesting TT 26123 between the City of Palm Desert and Sunrise Desert Partners. PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council, held on this loth day of January, 1991, by the following vote,.to wit: AYES: BENSON, CRITES, KELLY, SNYDER NOES: NONE ABSENT: WILSON ABSTAIN: NONE war Mrs H. SNYDER, Mayo ES SHEILA R. GI GAN, XAty Clerk City of Palm Deser , California SRS/tm • - 9 EXHIBIT A RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California Attention: 92260 (Space Above This Line For Recorder's Use) INDIAN RIDGE COUNTRY CLUB PREANNEXATION AND DEVELOPMENT AGREEMENT • RECITALS AGREEMENT FABLE OF CONTENTS • Page No. 1 3 1.0 Definition of the Project ...................... 3 2.0 Definition of Terms ............................ 3 3.0 Property Interest .............................. 3 4.0 Timing of Annexation ........................... 4 5.0 Compliance with CEQA ........................... 4 6.0 Consistency with the General Plan .............. 4 7.0 Sunrise's Obligations .......................... 4 7.1 Development Fees ......................... 4 7.2 Mello -Roos Community Facilities District for Cook Street Improvements .... 5 7.3 Drainage Facilities ...................... 5 7.4 Street Improvements ...................... 6 7.4.1 Avenue 42 (Southern Perimeter of the Property) .................. 6 7.4.2 Eldorado Drive (Western Perimeter of the Property) ........ 6 7.4.3 Oasis Club Drive (Eastern Perimeter of the Property) ........ 6 7.4.4 Country Club Drive (Northern Perimeter of the Property) ........ 6 7.4.5 Sidewalks ........................ 6 7.4.6 Traffic Signals ................... 6 7.5 Time for Commencement .................... 7 8.0 City's obligations ............................. 7 8.1 Development in Accordance with Existing Approvals ....................... 7 8.2 Timely Application and Processing ........ 7 8.3 Exemption From Construction Moratorium ... 7 8.4 Review of Subsequent Applications ........ 7 8.5 Other Governmental Permits •.............. 8 8.6 Cooperation in Formation of CFDs ......... 8 9.0 Limitations, Reservations and Exceptions ....... 8 9.1 Reservations of Authority ................ 8 9.2 Future Regulations ........... .. ...... 9 9.3 State and Federal Laws and Regulations ... 9 9.4 Full Extent of Law ....................... 9 10.0 Periodic Review of Compliance .................. 9 10.1 Planning Commission Review ............... 9 10.2 Appeal to City Council ................... 10 10.3 City Council Action ...................... 10 11.0 Term ........................................... 10 12.0 Amendment ...................................... 10 12.1 Initiation of Amendment .................. 10 12.2 Insubstantial Deviations from Development Plan ......................... 10 12.3 Administrative Interpretations Not In Conflict with Purposes of this Agreement 11 13.0 Partial Invalidity ............................. 11 14.0 Enforceability ................................. 11 15. Remedies ....................................... 11 15.1 Specific Performance ..................... 11 15.2 Withdrawal ............................... 11 16.0 Mortgagee Protection ........................... 12 17.0 Miscellaneous Provisions ....................... 12 17.1 Incorporation of Exhibits ................ 12 17.2 No Agency Created ........................ 12 17.3 Force Majeure ............................ 12 17.4 No Third Party Beneficiaries ............. 13 17.5 Assignment ............................... 13 17.6 Entire Agreement ......................... 13 17.7 Recitals ................................. 13 17.8 Further Actions and Instruments .......... 13 17.9 Notices .................................. 13 17.10 Construction of Agreement ................ 14 17.11 Counterparts ............................. 14 17.12 Hold Harmless ............................ 14 17.13 Reimbursement of Costs ................... 14 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: (Space Above This Line For Recorder's Use) INDIAN RIDGE COUNTRY CLUB PREANNEXATION AND DEVELOPMENT AGREEMENT PURSUANT TO THE AUTHORITY of state law, including Sections 65864 through 65869.5 of the California Government Code, this Preannexation and Development Agreement ("Agreement") is entered this day of , 1990, by and between the City of Palm Desert ("City"), a municipal corporation of the State of California, and Sunrise Desert Partners ("Sunrise"), a California limited partnership. R E C I T A L S• The parties hereto have entered into this Agreement on the basis of the following facts, understandings and intentions. A. Sunrise is the owner of property consisting of approximately 640 acres (the "Property"), bounded by Country Club Drive on the north, Avenue 42 on the south, Eldorado Drive on the west and Oasis Club Drive on the east, as more particularly described in Exhibit A. The Property currently is located within the sphere of influence of the City, in the County of Riverside. On , 1990, a petition was submitted to the Riverside County Local Agency Formation Commission ("LAFCO") requesting the annexation of the Property to the City. B. Sunrise has proposed the development of Indian Ridge Country Club, a planned community of no more than 1,500 homes, on the Property (the "Project"). The Project will consist of a residential community, two eighteen -hole championship golf courses, and a clubhouse featuring golf, tennis, swimming and health spa facilities. The Project will include a diversity of housing types appealing to a broad range of residents. C. The City is authorized to enter into binding preannexation agreements which set forth the terms and conditions upon which property will be developed following annexation to the City. Pursuant to Government Code sections 65864-65869.5, the City is further authorized to enter into binding development agreements which encourage and provide for the development of public facilities in order to support the development of new housing; provide certainty in the approval of development projects in order to avoid a waste of resources and an escalation in the cost of housing and other development to the consumer; provide assurance to developers that they may proceed with their projects in accordance with existing policies, rules and regulations, subject to their conditions of approval; and strengthen the public planning process and encourage private participation in comprehensive planning. D. The development of the Project requires substantial early and major capital expenditures and investments with respect to the construction and installation of major infrastructure and facilities, both on -site and off -site, of sufficient capacity to serve the Project as anticipated by the General Plan of the City and this Agreement. E. The City has approved the following entitlements for the Project: prezoning of the Project site to P.R.-5, by ordinance No. a Precise Plan for the Project, by Resolution No. ; and a vesting tentative map for the Project, by Resolution No. (collectively, "Existing Approvals"), contingent upon the annexation of the Property to the City. F. The Project site is designated P.R.-5 by the General Plan and the North Sphere Specific Plan. This designation allows the development of a maximum of five residential units per gross acre. The residential density of the Project will not exceed 2.35 units per gross acre and is, therefore, consistent with the General Plan and North Sphere Specific Plan. The P.R.-5 prezoning, which also allows the development of five residential units per gross acre, is consistent with the designation of the Project site in the General Plan and North sphere specific Plan. G. The City has undertaken the necessary review of the environmental effects of the Project pursuant to the California Environmental Quality Act (110EQA"). on 199o, the City Council approved a negative declaration ("Negative Declaration") for the Project by Resolution No. . The Negative Declaration evaluates potential impacts ofthe Project on the environment and sets forth the City's reasons for concluding that these impacts will not be significant. H. This Agreement is intended to establish standards and requirements for the development of the Project, and to -2- • provide for the orderly development of the Project, thereby assuring the public benefits identified by the City in this Agreement. I. Following due consideration of all evidence submitted or heard at duly noticed public hearings, the City Planning Commission and City Council have found and determined that this Agreement (a) is consistent with the City's General Plan; (b) is in the best interests of the health, safety and general welfare of the City, its residents and the public; (c) is entered into pursuant to and constitutes a present exercise of the police power by the City; (d) is entered into pursuant to and in compliance with the requirements of state law; and (e) is entered into for valuable and adequate consideration, based on the obligations assumed by Sunrise hereunder. I. The City has determined that the Project implements the goals and policies of the City's General Plan applicable to the Project. The City further finds that the Project imposes appropriate standards and requirements with respect to land developments and usage so as to maintain and improve the quality of life and the environment within the City. A G R E E M E N T NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, the parties hereto agree as follows: 1.0 Definition g f the Project. The Project is a planned community consisting of a maximum of 1,500 residential units, two eighteen -hole golf courses, a clubhouse and sports facilities, as more particularly described in the development plan attached hereto as Exhibit B ("Development Plan"). The permitted uses of the Property, the density or intensity of use, and the maximum height and size of proposed buildings shall be as set forth in the Development Plan. 2.0 Definition of Teems. "Date of Enactment" shall mean the date of the second reading of the ordinance by which the City approves this Agreement. "Effective Date" shall mean that date (thirty days after the Date of Enactment) upon which this Agreement becomes effective, pursuant to state law. 3.0 Property Interest. Sunrise has shown to the City's satisfaction that its interest in the Property meets the requirements of the -3- Development Agreement Law. Sunrise is the owner in fee of the Property. 4.0 Timing of Annexation. This Agreement shall not annexation proceedings annexing the completed within one year from the annexation is not completed within Agreement or any extension of the shall be null and void. 5.0 Compliance with CEOA. become operative unless Property to the City are Effective Date. If the the time specified in the Agreement, the Agreement The City has determined that this Agreement is consistent with and within the scope of the Negative Declaration. The City has determined that there are no substantial changes in the Project, or in the circumstances under which the Project will be undertaken pursuant to this Agreement, which involve new significant impacts not considered in the Negative Declaration. Therefore, no further environmental analysis of this Agreement is required under CEQA. 6.0 Consistency with the General Plan. The designation of the Property in the General Plan is Planned Residential ("P.R.") 5. The P.R. designation allows the development of residential uses, community facilities, recreational uses and related accessory uses, and other uses or mixtures of residential with country club related commercial uses, as designated on an approved precise plan. The P.R. district is intended to provide for flexibility in development, creative and imaginative design, and the development of parcels of land as coordinated projects involving a mixture of residential densities and housing types, and community facilities, both public and private. The P.R.-5 designation establishes that five residential units per gross acre are permitted. The Project is consistent with this designation because it will incorporate residential and country club related uses in a creative design, and will not exceed five residential units per gross acre. The City has further determined that this Agreement will implement the goals and policies of the General Plan of the City, including the goals of developing a land use pattern that takes optimum advantage of the City's natural assets, providing for an orderly balance of land uses within convenient and compatible locations and creating a distinctive sense of place and identity for each community and neighborhood in the City. 7.0 Sunrise's Obligations. 7.1 Development Fees. Sunrise shall pay all fees which are required as conditions of approval for the Project, and/or which are contained in City ordinances or resolutions in -4- effect at the time of Project approval. The fees payable by Sunrise in connection with the Project shall include, but are not limited to, the following: (a) City park fees, pursuant to the Subdivision Map Act; (b) City Art in Public Places fee; (c) school fee payable to Desert Sands Unified School District, based on state law requirements; (d) Transportation Uniform Mitigation Fee, applicable to regional transportation and public works projects; (e) water and sewer fees payable to Coachella Valley Water District; and (f) Fringe -Toed Lizard Fee, payable under the Fringe -Toed Lizard Habitat Conservation Plan 7.2 Mello -Roos Community Facilities District for Cook Street Improvements. The Property shall participate in the proposed Mello -Roos Community Facilities District ("CFD") or assessment district for improvements to Cook Street to the extent determined by the "Special Tax Report" to be filed in connection with the proceedings of the City of Palm Desert, in the Office of the City Clerk of the City of Palm Desert. The City and Sunrise hereby acknowledge that the sum of $1,687,712 is a reasonable allocation of public infrastructure costs attributable to the Project. Therefore, the maximum obligation to be imposed on the Property pursuant to the Cook Street CFD or assessment district shall be $1,687,712. Sunrise further agrees to advance $50,000 for the formation of the Cook Street CFD, subject to reimbursement from Mello -Roos bond proceeds. Any Transportation Uniform Mitigation Fees (as more particularly described in Section 7.1 herein) shall be credited against the $1,687,712 Cook Street CFD obligation. The application of this credit is in recognition that the payment of Transportation Uniform Mitigation Fees represents a contribution by the Project to the public infrastructure costs of the Project, and results in a reasonable allocation of public infrastructure costs attributable to the Project. 7.3 Drainage Facilities. The Project shall be designed to retain drainage from a 100-year storm on -site. If the City imposes a drainage fee applicable to the Property, Sunrise shall receive a fair and equitable credit against this fee. The credit shall be based on the reduction in the City's cost of building drainage improvements attributable to the Project's on -site retention of drainage. Drainage fees for the construction of regional drainage improvements which would be necessary regardless of the on -site drainage, shall be paid in an amount which shall be based on the City of Palm Desert Master Drainage Plan prepared by NBS/Lowry upon its adoption by the Palm Desert City Council. 7.4 Street Improvements. Sunrise shall provide landscaping and other improvements to all streets directly adjacent to the Property, as follows. All descriptions of street sections are approximate, and are subject to modification without amendment of this Agreement. -5- • 7.4.1 Avenue 42 (Southern Perimeter of the Property]. The northern half of the 100-foot right of way shall be dedicated and improved to include 32-foot driving lanes, a 12-foot landscaped parkway and one-half of the 12-foot landscaped median. In addition, Sunrise shall construct the southern half of the landscaped median adjacent to Oasis Country Club, where the southern half of the street is fully improved but no median exists. 7.4.2 Eldorado Drive (Western Perimeter of the ropertyl. The eastern half of the 110-foot right of way shall be dedicated and improved. The western half also shall be improved, beginning one-half mile south of Country Club Drive (where improvements to the western half now end) and extending one-half mile south to the intersection of Avenue 42. The construction of these improvements to the western half of Eldorado Drive shall be subject to a reimbursement agreement administered by the City, pursuant to which Sunrise shall be reimbursed for the cost of the improvements when the adjacent land to the west is developed. The Eldorado Drive street section shall consist of 12-foot parkways on both sides, 34 feet of driving lanes in each direction and an 18-foot landscaped median. In addition to the landscaping of the 12-foot parkway, Sunrise shall also landscape 8 feet outside its perimeter wall, for a total of 20 feet of landscaped perimeter on the eastern side of Eldorado Drive. 7.4.3 Oasis Club Drive (Eastern Perimeter of the Property). The western half of a 100-foot right of way shall be dedicated and improved to include a 12-foot landscaped parkway, 32-foot driving lanes and a 12-foot painted center median. 7.4.4 Country Club Drive (Northern Perimeter of the Property). Sunrise has fully improved the southern half of Country Club Drive, adjacent to the Property. The 12-foot parkway shall be landscaped, along with an additional 18 feet outside the Project's north perimeter wall, for a total of 30 feet of landscaped perimeter on Country Club Drive. 7.4.5 Sidewalks. Concrete sidewalks shall be constructed on all four perimeters of the Property. Sidewalk width shall be eight feet on Country Club and E1 Dorado Drives and six feet wide on Oasis Club Drive and 42nd Avenue. 7.4.6 Traffic Signals. Sunrise shall provide for the conversion of the existing three-way traffic signal on Country Club Drive at the main project entry to a four-way configuration and pay one-fourth the cost of traffic signal installation at the intersections of Country Club Drive and Oasis Club Drive, 42nd Avenue and Oasis Club Drive, and E1 Dorado Drive and 42nd Avenue. Traffic signalization fees required for the Project may be used as credits against these costs. -6- 7.5 Time for Commenc went. Sunrise shall commence construction of the Project within ten (10) years of the Effective Date of this Agreement. Failure to do so shall be considered a default by Sunrise. Notwithstanding the foregoing, the time for commencement may be extended by agreement of the parties upon a showing by Sunrise of good cause for the extension. 8.0 City's Obligations. 8.1 Development in Accordance with Existing Approvals. To the fullest extent of the City's authority and jurisdiction, Sunrise shall have a vested right to design, construct, operate and maintain the Project in accordance with the Development Plan, Existing Approvals and the terms of the rules, regulations, and ordinances of the City in effect as of the Date of Enactment of this Agreement ("Local Rules"). The City shall not impose, or seek to impose, any additional requirements, exactions, fees or payments, or dedication or reservation requirements except those expressly set forth in the Reservation of Authority. 8.2 Timely Application and Processin-. The City hereby acknowledges that the timely development of the Project will benefit the public health, safety, and welfare. In recognition of this, the City and Sunrise agree to cooperate in the expeditious processing and review of all applications for further approvals required by the Project. The City shall not impose any exaction or restriction (except requirements relating to the normal processing of applications for development approvals) which would delay, interfere with or impede the commencement or rate of design, construction, development or operation of the Project or any component thereof as contemplated by the Development Plan. 8.3 Exemption From Construction Morator uu . The City specifically agrees and acknowledges that the Project is exempt from the construction moratorium adopted by the City on or about April 26, 1990, as set forth in Ordinance No. 602, and from any extensions to the construction moratorium which the City may adopt in the future. 8.4 Reviekt of Subsequent Apoli ations. The Project, including subsequent applications for approvals necessary for the development of the Project in accordance with the Development Plan, shall not be subject to any changes in the Local Rules or new Local Rules adopted subsequent to the Date of Enactment, which would interfere or conflict with the development of the Project for the uses and to the height, design standards, density and intensity of use specified in the Development Plan, or with the rate of development of the Project, except as otherwise provided by this Agreement, including the Reservations of Authority. The City shall -7- promptly issue any permits which may be required to implement the Development Plan, provided that Sunrise is in compliance with this Agreement and the Local Rules in effect as of the Date of Enactment. S.5 Other Governmental Permits. Sunrise may apply for such other permits and approvals from other governmental or quasi -governmental agencies having jurisdiction over the Project as may be required for the development, design, construction, or operation of the Project in accordance with the Development Plan. The City shall cooperate with Sunrise in its efforts to obtain such permits and approvals and shall assist in expediting LAFCO processing of the annexation of the Property. 8.6 Cooperation in Formation of CFDS. In addition to the Cook Street CFD described in Section 7.2, the City and Sunrise intend to consider the formation of one or more CFDs which will include the Property, or a portion thereof, within their boundaries for the purpose of financing various off -site improvements. The City shall use its best efforts to cooperate with Sunrise in the formation and establishment of such CFDs; provided, however, that nothing herein shall prevent Sunrise in its sole discretion from voting against the formation of any CFD, with the exception of the Cook Street CFD. 9.0 Limitations. Reservations and Exceptions. 9.1 Reservations of Authority. Notwithstanding any other provision of this Agreement, the following rules, regulations and ordinances of the City which may come into effect after the Date of Enactment of this Agreement shall apply to the development of the Property. A. Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. S. Changes in regulations governing construction standards and specifications after the effective date of this Agreement which are required by changes in state or federal law or federal laws or regulations, or by changes in the uniform building code, plumbing code, mechanical code, electrical code, fire code and grading code. C. Processing fees and charges of every kind and nature imposed by the City, on a uniform City-wide basis at the time such fees are due, to cover the estimated actual costs to the City of processing applications for development approvals or for monitoring compliance with any development approvals granted or issued. -8- D. Regulations which may be in conflict with the Development Plan, but which are reasonably necessary to project the public health and safety; to the extent possible, any such regulation shall be applied and construed so as to provide Sunrise with the rights and assurances provided under this Agreement. E. Regulations applied with the written consent of Sunrise. 9.2 Future Regulations. Nothing herein shall prevent the City, in subsequent discretionary approvals for the Project, from applying new rules, regulations, or ordinances (1) not inconsistent or in conflict with the Local Rules or with the purposes and conditions of this Agreement, and (2) which do not interfere or conflict with the height, density or intensity set forth in the Development Plan or with the rate of development selected by Sunrise. 9.3 State and federal Laws and Regulations. The Project shall be subject to existing and future state and federal laws and regulations, together with any City land use regulations, programs and actions, or inaction, which are reasonably (taking into consideration, among other things, the assurances provided to Sunrise hereunder) adopted or undertaken by the City in order to comply with state and federal laws and regulations; provided, that in the event that state or federal laws and regulations prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or suspended as may be necessary to comply with such state and federal laws and regulations. In such event, this Agreement shall remain in full force and effect to the extent that it is not inconsistent with such laws and regulations and that performance of the remaining provisions would not be inconsistent with the intent and purposes of this Agreement. 9.4 Full_EXtent of Law. The parties acknowledge and agree that the City is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to the City all of its police power which cannot be so limited. 10.0 Periodic Revi9w of compliance. 10.1 Planning Commission Review. The Planning Commission, at a public hearing, shall conduct a compliance review of this Agreement within six months from the Date of Enactment, and annually thereafter. At least one week prior to the Planning Commission compliance hearing, Sunrise shall submit a letter to the Planning Commission, demonstrating its good faith compliance with this Agreement. If the Planning Commission finds that Sunrise has demonstrated good faith compliance with this Agreement, the annual review shall be deemed concluded. WM 10.2 Appeal to City Council. If the Planning Commission finds and determines on the basis of substantial evidence that Sunrise has not complied in good faith with this Agreement, the Planning Commission shall (1) specify actions to be taken to cure the default under the Agreement, (2) propose the modification of the Agreement, or (3) propose the termination of the Agreement. Sunrise shall have the right to appeal any portion of any such action to the City Council within thirty days of the date of the Planning Commission action. 10.3 City Council Action. Upon appeal by Sunrise pursuant to Section 10.2 herein, the City Council shall conduct a hearing to determine whether Sunrise is in good faith compliance with this Agreement. If the City Council determines that Sunrise is in good faith compliance, the annual review process shall be deemed completed. If the City Council finds that Sunrise has not complied in good faith with this agreement, it shall (1) specify actions to be taken to cure the default under the Agreement, (2) modify the Agreement, or (3) terminate the Agreement. 11.0 Term. This Agreement shall commence on the Effective Date and shall continue in effect for twenty years from the Effective Date. This term is intended to provide sufficient time for the full repayment of the bonds to be issued by the CFD referred to in Section 7.2, or of any other debt obligations incurred in lieu of such bonds. If the parties determine that a longer period is necessary to achieve the purpose stated herein, the term of this Agreement may be extended by the further written agreement of the parties in accordance with Section 12.3. 12.0 Amendment. 12.1 Initiation of Amendment. Either party may propose an amendment to this Agreement. Except as otherwise provided herein, cancellation or amendment shall follow the notice and hearing requirements established by applicable law for the consideration of development agreements. 12.2 Insubstantial Deviations from Development Plan. Any insubstantial deviation from the Development Plan with respect to the location, size, or height of structures, streets, and other physical facilities, as determined by the Director of Planning, may be approved by the person or body with authority to approve the plans for such facilities without amendment of this Agreement, in accordance with City policy. Insubstantial deviations shall include, without limitation, the introduction of different housing product types and the replotting of the locations of houses, so long as such -10- deviations are not inconsistent with (a) the permitted uses described in Exhibit B, and (b) City policy in effect at the time of entry into this Agreement. 12.3 Administrative Interpretations Not in Conflict With Purposes of This Agreement. Upon agreement of the parties hereto, memoranda of administrative interpretation may be entered into regarding any aspect of this Agreement which does not relate to permitted uses, density or intensity of use, height or size of buildings, provisions for reservation of land, conditions, restrictions and requirements relating to subsequent discretionary approvals, rate of development, or the term of the Agreement. 13.0 Partial Invalidity. If any material provision of this Agreement is determined to be void, invalid, or illegal by a final judgment of a court of competent jurisdiction, the parties may (a) amend this Agreement pursuant to the procedures set forth herein, or (b) by mutual agreement of the parties, terminate the Agreement. 14.0 Enforceability. It is acknowledged and agreed by the parties hereto that any assurances provided to Sunrise with respect to the imposition of additional exactions, regulations, or restrictions affecting permitted uses, intensity of use, density, height, or the rate of development of the Project are (a) intended to be relied upon by Sunrise; (b) made in exchange for valuable and adequate consideration provided by Sunrise in the form of covenants and commitments as set forth in this Agreement; and (c) made with the understanding that such assurances will not be amended, changed, or increased except as provided herein. 15.0 Remedies. 15.1 Specific Performance. The parties agree and understand that a breach of this Agreement may result in irreparable harm to the non -breaching party, and that specific performance of this Agreement is a proper and desirable remedy. 15.2 Withdrawal. In the event that Sunrise is unable to construct and operate the Project in a manner set forth in the Development Plan and this Agreement because of (a) this Agreement or any portion hereof being determined to be invalid or unenforceable, (b) the imposition of any exaction, restriction, or change in the Local Rules not specifically provided for in this Agreement, or (c) Sunrise reasonably determining that the Project, despite good faith efforts, is economically infeasible, in addition to any other remedy which it might possess, Sunrise shall have the right upon written notice to the City to withdraw from this Agreement. -11- • Thereafter, the City and Sunrise shall be released from any and all further liabilities or obligations hereunder. Sunrise's notice to the City that it is withdrawing from this Agreement shall constitute a waiver of Sunrise's rights hereunder and the Project shall be subject to City review according to the rules and regulations in existence at that time. 16.0 Mortgagee Protection. No breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any deed of trust or mortgage made in good faith and for value, and no holder of a deed of trust or mortgage ("Mortgagee") shall have an obligation or duty under this Agreement to perform Sunrise's obligations or to guarantee such performance. Notwithstanding the foregoing, any acquisition or acceptance of title or any right or interest in or with respect to the Property or any portion thereof, by a Mortgagee (whether under or pursuant to a mortgage, foreclosure, trustee's sale, deed in lieu of foreclosure, or otherwise), shall be subject to all of the terms and conditions contained in this Agreement. 17.0 Miscellaneous Provigions. 17.1 Incorporation of Exhibits. Exhibits A and B, attached hereto, are incorporated herein by this reference. 17.2 No Agency Created. It is understood and agreed to by the parties that the Project is a private development, that neither party is acting as the agent of the other in any respect and that no partnership, joint venture or other association of any kind is formed by this Agreement. 17.3 Force Maieure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond such party's control, government regulations, court actions (such as restraining orders or injunctions) or other causes beyond such party's control. If any such events shall occur, the term of this Agreement and the time for performance by either party of any of its obligations hereunder shall be extended by the period of time that such events prevented such performance, provided that the terms of this Agreement shall not be extended for a period which would cause this Agreement or provisions hereof to be void as violating the rule against perpetuities. 17.4 No Third Party Benefirjaries. This Agreement is entered into for the sole protection and benefit of the parties and their successors and assigns. No third -party beneficiaries are created by this Agreement. -12- 17.5 Assignment. This Agreement shall not be assigned or otherwise transferred without the prior written consent of the City; provided, however, that such approval shall not be unreasonably withheld. This Agreement shall benefit and bind all subsequent transferees. Express assumption of any of the obligations hereunder by any transferee permitted by this paragraph shall relieve the transferor from any assumed obligation. 17.6 Entire Aareement. This Agreement constitutes the entire Agreement between the parties with respect to the subject matter of the Agreement. 17.7 Recitals. The recitals to this Agreement constitute part of this Agreement. Each party shall be entitled to rely on the truth and accuracy of each recital as an inducement to enter into this Agreement. 17.8 Eyrther Actions and Instruments. Upon the request of either party, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments or writings, including estoppel certificates, and take any actions that may be reasonably necessary under the terms of this Agreement to carry out the intent, fulfill the provisions, and evidence or consummate the transactions contemplated by this Agreement. 17.9 Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent certified mail, postage prepaid and addressed as follows: To City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: To Sunrise: Sunrise Desert Partners 42-600 Cook Street, Suite 200 Palm Desert, California 92260 Attn: Phillip K. Smith, Jr. with a copy to: Nossaman, Guthner, Knox & Elliott 650 Town Center Drive, Suite 1250 Costa Mesa, California 92626 Attn: Jean 0. Melious, Esq. Any notice given as required herein shall be deemed given seventy-two hours after deposit in the United States mail or upon receipt. A party may change its address for notices by giving notice in writing to the other party as required herein. -13- 17.10 Construction of Agreement. The captions in this Agreement are for convenience only and shall not be considered or referred to in resolving questions of construction. This Agreement shall be governed by the laws of the State of California. 17.11 Counter aR rts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 17.12 Hold Harmless. Sunrise agrees to and shall hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from the direct or indirect operation of Sunrise or those of its contractors, subcontractors, agent, employee, or other person acting on its behalf which relate to the Project. Sunrise agrees to and shall defend City and its officers, agents, employees and representatives from actions for damages caused or alleged to have been caused by reason of Sunrise's activities in connection with the Project. This provision applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this paragraph, regardless of whether or not the City prepared, supplied or approved plans or specifications or both for the Project. It does not apply to negligent acts or omissions by the City. Sunrise further agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any action challenging the validity of this Agreement. 17.13 Reimbursement of Costs. Sunrise shall pay to City its direct costs associated with entering into this Agreement, as shown on itemized City invoices. Such costs shall be paid prior to issuance of final approvals. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date(s) set forth below, as of the day and year first above written. Date: "City" CITY OF PALM DESERT By Its -14- • Date: Ej "Sunrise" SUNRISE DESERT PARTNERS By Sunrise Corporation Its General Partner By Its Date: APPROVED AS TO FORM: Date: City Attorney City of Palm Desert ATTEST: City Clerk City of Palm Desert -15- EXHIBIT A ProgeXtv Description Indian Ridge Country Club All of Section 11, T5S, SBBM -16- 1. 2. EXHIBIT B Developmen& Plan Permitted Uses of the Property Housing, including single family detached one- and two-story homes and attached homes containing from two to six units per building; Two eighteen -hole golf courses and ancillary facilities, including but not limited to maintenance facilities, half -way houses with snack shops and rest rooms; Entry complexes; Sales, resales and rentals building; A clubhouse, including golf, tennis and health spa facilities, dining rooms, freestanding grill room/snack shop, lounges, banquet and meeting rooms, golf pro shops, a tennis and spa pro shop, at least fourteen tennis courts (seven night -lighted), four night -lighted paddle tennis courts, two night -lighted croquet courts, swimming pools, locker room facilities, child care center and teen activity room. The power source for the building may consist of a cogeneration facility. Maximum Heights of Buildings The maximum height of residential buildings will be 30 feet. The maximum height of the clubhouse will be 60 feet. The maximum height of ancillary golf facilities (including golf maintenance facilities, half -way houses with snack shops and rest rooms) will be 30 feet. The maximum height of entry complexes will be 30 feet. The maximum height of the sales, resales and rentals building will be 30 feet. -17- Residential: No more than 1,500 homes shall be constructed. This constitutes a density of approximately 2.35 units per acre. Homes shall range in size from 1,300 to 4,000 square feet. Clubhouse: The clubhouse shall not exceed 125,000 square feet in size. The freestanding grill room/snack shop shall not exceed 5,000 square feet. Ancillary golf facilities, including golf maintenance facilities, half -way houses with snack shops and rest rooms, shall not exceed 40,000 square feet. Entry complexes shall not exceed 7,500 square feet. The sales, resales and rentals building shall not exceed 5,000 square feet. -1s- RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City Clerk's Office City of Palm Desert 73-5I0 Fred Waring)Drive ' Palm Desert, CA Z260 FOR THE BENEFIT OF THE N CITY OF PALM DESERT O NO FEE 6103 OF THE GOVT. CODE O V ; IR f 8� z ; �. IC �! ORDINANCE 'NO. 627 AN 0 NANCE OF THE CITY COUNCIL OF THE 2 54 CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT AND SUNRISE DESERT PARTNERS TO ALLOW CONSTRUCTION OF A RESIDENTIAL CONDOMINIUM/COUNTRY CLUB PROJECT IN SECTION 11, T5S, R6E. CASE NO. PREANNEXATION AND DEVELOPMENT AGREEMENT FOR VESTING TT 26123 WHEREAS, the City Council of the City of Palm Desert, California, did on the 8th day of November, 1990, hold a duly noticed public hearing which was continued to December 13, 1990, to consider the request of SUNRISE DESERT PARTNERS to consider the above mentioned project; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said city council did find the following: 1. That the development agreement is consistent with the provisions of Section 25.37 Development Agreements. 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 does hereby approve the Development Agreement, Exhibit "A", for Case No. Vesting TT 26123 between the City of Palm Desert and Sunrise Desert Partners. PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council, held on this loth day of January, 1991, by the following vote, to wit: AYES: BENSON, CRITES, KELLY, SNYDER NOES: NONE ABSENT: WILSON ABSTAIN: NONE (�i J WALTER H. SNYDER, Mayo TE7: SHEILA R. GI L GAN, ty Clerk EACH D0CLIMFPIT TO WHICH THIS CERT!FlrATE IS City of Palm Deser , California ATTACHen, IS CEFlTI;,Fn TO BE A FULL TRUE A410 SRS /tm CORRECT COPY OF Pic CRIGMAL CfJ FILE W40 OW RECORD !PJ MY GFFICE. CL Dated: - 0- SHiILA R. GILLIO N, Cily Clerk City of rt California POR THE BENEFIT OF � • CITY OF FAId-j DFIer&_ NO FEE • 6103 OF THE GOUT.: CODE 205654 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: City Clerk (Space Above This Line For Recorder's Use) INDIAN RIDGE COUNTRY CLUB PREANNEXATION AND DEVELOPMENT AGREEMENT TABLE OF CONTENTS 205654 Page No. RECITALS 1 AGREEMENT 3 1.0 Definition of the Project ............... 0...... 3 2.0 Definition of Terms ............................ 3 3.0 Property Interest .............................. 3 4.0 Timing of Annexation ........................... 4 5.0 Compliance with CEQA ........................... 4 6.0 Consistency with the General Plan .............. 4 7.0 Sunrise's Obligations .......................... 4 7.1 Development Fees ......................... 4 7.2 Mello -Roos Community Facilities District for Cook Street Improvements .... 5 7.3 Drainage Facilities ...................... 5 7.4 Street Improvements ...................... 6 7.4.1 Avenue 42 (Southern Perimeter of the Property) .................. 6 7.4.2 Eldorado Drive (Western Perimeter of the Property) ........ 6 7.4.3 Oasis Club Drive (Eastern Perimeter of the Property) ........ 6 7.4.4 Country Club Drive (Northern Perimeter of the Property) ........ 6 7.4.5 Sidewalks ......................... 6 7.4.6 Traffic Signals ................... 6 7.5 Time for Commencement .................... 7 8.0 City's Obligations ............................. 7 8.1 Development in Accordance with Existing Approvals ....................... 7 8.2 Timely Application and Processing ........ 7 8.3 Exemption From Construction Moratorium ... 7 8.4 Review of Subsequent Applications ........ 7 8.5 Other Governmental Permits ............... 8 8.6 Cooperation in Formation of CFDs ......... 8 -11- ��5554 9.0 Limitations, Reservations and Exceptions ....... 8 9.1 Reservations of Authority ................ 8 9.2 Future Regulations ....................... 9 9.3 State and Federal Laws and Regulations ... 9 9.4 Full Extent of Law ....................... 9 10.0 Periodic Review of Compliance .................. 9 10.1 Planning Commission Review ............... 9 10.2 Appeal to City Council ................... 10 10.3 City Council Action ...................... 10 11.0 Term ........................................... 10 12.0 Amendment ...................................... 10 12.1 Initiation of Amendment .................. 10 12.2 Insubstantial Deviations from Development Plan .... .. .............. 10 12.3 Administrative Interpretations Not In Conflict with Purposes of this Agreement 11 13.0 Partial Invalidity ............................. 11 14.0 Enforceability ................................. 11 15. Remedies ....................................... it 15.1 Specific Performance ..................... it 15.2 Withdrawal ............................... 11 16.0 Mortgagee Protection ........................... 12 17.0 Miscellaneous Provisions ....................... 12 17.1 Incorporation of Exhibits ................ 12 17.2 No Agency Created ........................ 12 17.3 Force Majeure ............................ 12 17.4 No Third Party Beneficiaries ............. 13 17.5 Assignment ............................... 13 17.6 Entire Agreement ......................... 13 17.7 Recitals •••.. .............. ............. 13 17.8 Further Actions and Instruments .......... 13 17.9 Notices ............................... 13 17.10 Construction of Agreement ................ 14 17.11 Counterparts ............................. 14 17.12 Hold Harmless... ..................... 14 17.13 Reimbursement of Costs ................... 14 • RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: City Clerk (Space Above This Line For Recorder's Use) INDIAN RIDGE COUNTRY CLUB PREANNEXATION AND DEVELOPMENT AGREEMENT ,,. PURSUANT .TO THE AUTHORITY of state law, including Sections 65864 through 65869.5 of the California Government Code, this Preannexation and Development Agreement ("Agreement") is entered this loth day of Jani,ary. 99; NU, by and between the City of Palm Desert ("City"), a municipal corporation of the State of California, and Sunrise Desert Partners ("Sunrise"), a California limited partnership. R E C I T A L S• The parties hereto have entered into this Agreement on the basis of the following facts, understandings and intentions. A. Sunrise is the owner of property consisting of approximately 640 acres (the "Property"), bounded by Country Club Drive on the north, Avenue 42 on the south, Eldorado Drive on the west and Oasis Club Drive on the east, as more particularly described in Exhibit A. The Property currently is located within the ,sphere of influence of the City, in the County of Riverside. On September 20 , 1990, a petition was submitted to the'Riverside County Local Agency Formation Commission (11LAFCO11) requesting the annexation of the Property to the City. B. Sunrise has proposed the development of Indian Ridge Country Club, a planned community of no more than 1,500 homes, on the Property (the "Project"). The Project will consist of a residential community, two eighteen -hole championship golf courses, and a clubhouse featuring golf, tennis, swimming and health spa facilities. The Project will include a diversity of housing types appealing to a broad range of residents. � 0 205654 C. The City is authorized to enter into binding preannexation agreements which set forth the terms and conditions upon which property will be developed following annexation to the City. Pursuant to Government Code sections 65864-65869.5, the City is further authorized to enter into binding development agreements which encourage and provide for the development of public facilities in order to support the development of new housing; provide certainty in the approval of development projects in order to avoid a waste of resources and an escalation in the cost of housing and other development to the consumer; provide assurance to developers that they may proceed with their projects in accordance with existing policies, rules and regulations, subject to their conditions of approval; and strengthen the public planning process and encourage private participation in comprehensive planning. D. The development of the Project requires substantial early and major capital expenditures and investments with respect to the construction and installation of major infrastructure and facilities, both on -site and off -site, of sufficient capacity to serve the Project as anticipated by the'.t4�neral Plan of the City and this Agreement. E. The'City'has approved the following entitlements for the Project: "prezoning of the Project site to P.R.-5, by Ordinance No. 67S a Precise Plan for the Project, by Resolution No. 90-146 ; and a vesting tentative map for the Project, by Resolution No. 90-145 (collectively, "Existing Approvals"), contingent upon the annexation of the Property to the City. F. The Project site is designated P.R.-5 by the General Plan and the North Sphere Specific Plan. This designation allows the development of a maximum of five residential units per gross acre. The residential density of the Project will not exceed 2.35 units per gross acre and is, therefore, consistent with the General Plan and North Sphere Specific Plan. The P.R.-5 prezoning, which also allows the development of five residential units per gross acre, is consistent with the designation of the Project site in the General Plan and North Sphere Specific Plan. G. The City has undertaken the necessary review of the environmental effects of the Project pursuant to the California Environmental Quality Act ("CEQA") . On December 13 1990, the City Council approved a negative declaration ("Negative Declaration") for the Project by Resolution No. 90-145. The Negative Declaration evaluates potential impacts of the Project on the environment and sets forth the City's reasons for concluding that these impacts will not be significant. H. This Agreement is intended to establish standards and requirements for the development of the Project, and to -2- 265654 provide for the orderly development of the Project, thereby assuring the public benefits identified by the City in this Agreement. I. Following due consideration of all evidence submitted or heard at duly noticed public hearings, the City Planning Commission and City Council have found and determined that this Agreement (a) is consistent with the City's General Plan; (b) is in the best interests of the health, safety and general welfare of the City, its residents and the public; (c) is entered into pursuant to and constitutes a present exercise of the police power by the City; (d) is entered into pursuant to and in compliance with the requirements of state law; and (e) is entered into for valuable and adequate consideration, based on the obligations assumed by Sunrise hereunder. I. The City has determined that the Project implements the goals and policies of the City's General Plan applicable to the Project. The City further finds that the Project imposes appropriate standards and requirements with respect to land developments and usage so as to maintain and improve the quality of life and the environment within the City. A G$ E E N E N I NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, the parties hereto agree as follows: 1.0 Definition of the Proiect. The Project is a planned community consisting of a maximum of 1,500 residential units, two eighteen -hole golf courses, a clubhouse and sports facilities, as more particularly described in the development plan attached hereto as Exhibit B ("Development Plan"). The permitted uses of the Property, the density or intensity of use, and the maximum height and size of proposed buildings shall be as set forth in the Development Plan. 2.0 Definition of Terms. "Date of Enactment" shall mean the date of the second reading of the ordinance by which the City approves this Agreement. "Effective Date" shall mean that date (thirty days after the Date of Enactment) upon which this Agreement becomes effective, pursuant to state law. 3.0 Property Interest. Sunrise has shown to the City's satisfaction that its interest in the Property meets the requirements of the -3- 205654 Development Agreement Law. Sunrise is the owner in fee of the Property. 4.0 Timing of Annexation. This Agreement shall not annexation proceedings annexing the completed within one year from the annexation is not completed within Agreement or any extension of the shall be null and void. 5.0 Compliance with CEOA. become operative unless Property to the City are Effective Date. If the the time specified in the Agreement, the Agreement The City has determined that this Agreement is consistent with and within the scope of the Negative Declaration. The City has determined that there are no substantial changes in the Project, or in the circumstances under which the Project will be undertaken pursuant to this Agreement, which involve new significant impacts not considered in the Negative Declaration. Therefore, no further environmental analysis of this Agreement is required under CEQA. 6.0 Consistency with the General Plan. The designation of the Property in the General Plan is Planned Residential ("P.R.") 5. The P.R. designation allows the development of residential uses, community facilities, recreational uses and related accessory uses, and other uses or mixtures of residential with country club related commercial uses, as designated on an approved precise plan. The P.R. district is intended to provide for flexibility in development, creative and imaginative design, and the development of parcels of land as coordinated projects involving a mixture of residential densities and housing types, and community facilities, both public and private. The P.R.-5 designation establishes that five residential units per gross acre are permitted. The Project is consistent with this designation because it will incorporate residential and country club related uses in a creative design, and will not exceed five residential units per gross acre. The City has further determined that this Agreement will implement the goals and policies of the General Plan of the City, including the goals of developing a land use pattern that takes optimum advantage of the City's natural assets, providing for an orderly balance of land uses within convenient and compatible locations and creating a distinctive sense of place and identity for each community and neighborhood in the City. 7.0 Sunrise's Obligations. 7.1 Development Fees. Sunrise shall pay all fees which are required as conditions of approval for the Project, and/or which are contained in City ordinances or resolutions in -4- 205654 effect at the time of Project approval. The fees payable by Sunrise in connection with the Project shall include, but are not limited to, the following: (a) City park fees, pursuant to the Subdivision Map Act; (b) City Art in Public Places fee; (c) school fee payable to Desert Sands Unified School District, based on state law requirements; (d) Transportation Uniform Mitigation Fee, applicable to regional transportation and public works projects; (e) water and sewer fees payable to Coachella Valley Water District; and (f) Fringe -Toed Lizard Fee, payable under the Fringe -Toed Lizard Habitat Conservation Plan 7.2 Mello -Roos Community Facilities District for Cook Street Improvements. The Property shall participate in the proposed Mello -Roos Community Facilities District ("CFD") or assessment district for improvements to Cook Street to the extent determined by the "Special Tax Report" to be filed in connection with the proceedings of the City of Palm Desert, in the Office of the City Clerk of the City of Palm Desert. The City and Sunrise hereby acknowledge that the sum of $1,687,712 is a reasonable allocation of public infrastructure costs attributable to the Project. Therefore, the maximum obligation to be imposed on the Property pursuant to the Cook Street CFD or assessment district shall be $1,687,712. Sunrise further agrees to advance $50,000 for the formation of the Cook Street CFD, subject to reimbursement from Mello -Roos bond proceeds. Any Transportation Uniform Mitigation Fees (as more particularly described in Section 7.1 herein) shall be credited against the $1,687,712 Cook Street CFD obligation. The application of this credit is in recognition that the payment of Transportation Uniform Mitigation Fees represents a contribution by the Project to the public infrastructure costs of the Project, and results in a reasonable allocation of public infrastructure costs attributable to the Project. 7.3 Drainage Facilities. The Project shall be designed to retain drainage from a 100-year storm on -site. If the City imposes a drainage fee applicable to the Property, Sunrise shall receive a fair and equitable credit against this fee. The credit shall be based on the reduction in the City's cost of building drainage improvements attributable to the Project's on -site retention of drainage. Drainage fees for the construction of regional drainage improvements which would be necessary regardless of the on -site drainage, shall be paid in an amount which shall be based on the City of Palm Desert Master Drainage Plan prepared by NBS/Lowry upon its adoption by the Palm Desert City Council. 7.4 Street Improvements. Sunrise shall provide landscaping and other improvements to all streets directly adjacent to the Property, as follows. All descriptions of street sections are approximate, and are subject to modification without amendment of this Agreement. -5- 205654 7.4.1 Avenue 42 (Southern Perimeter of the Propertvl. The northern half of the 100-foot right of way shall be dedicated and improved to include 32-foot driving lanes, a 12-foot landscaped parkway and one-half of the 12-foot landscaped median. In addition, Sunrise shall construct the southern half of the landscaped median adjacent to Oasis Country Club, where the southern half of the street is fully improved but no median exists. 7.4.2 Eldorado Drive (Western Perimeter of the Propertvl. The eastern half of the 110-foot right of way shall be dedicated and improved. The western half also shall be improved, beginning one-half mile south of Country Club Drive (where improvements to the western half now end) and extending one-half mile south to the intersection of Avenue 42. The construction of these improvements to the western half of Eldorado Drive shall be subject to a reimbursement agreement administered by the City, pursuant to which Sunrise shall be reimbursed for the cost of the improvements when the adjacent land to the west is developed. The Eldorado Drive street section shall consist of 12-foot parkways on both sides, 34 feet of driving lanes in each direction and an 18-foot landscaped median. In addition to the landscaping of the 12-foot parkway, Sunrise shall also landscape 8 feet outside its perimeter wall, for a total of 20 feet of landscaped perimeter on the eastern side of Eldorado Drive. 7.4.3 Oasis Club Drive (Eastern Perimeter of the Property). The western half of a 100-foot right of way shall be dedicated and improved to include a 12-foot landscaped ' parkway, 32-foot driving lanes and a 12-foot painted center median. 7.4.4 gountry Club Drive (Northern Perimeter of the Property). Sunrise has fully improved the southern half of Country Club Drive, adjacent to the Property. The 12-foot parkway shall be landscaped, along with an additional 18 feet outside the Project's north perimeter wall, for a total of 30 feet of landscaped perimeter on Country Club Drive. 7.4.5 Sidewalks. Concrete sidewalks shall be constructed on all four perimeters of the Property. Sidewalk width shall be eight feet on Country Club and E1 Dorado Drives and six feet wide on Oasis Club Drive and 42nd Avenue. 7.4.6 Traffic Signals. Sunrise shall provide for the conversion of the existing three-way traffic signal on Country Club Drive at the main project entry to a four-way configuration and pay one-fourth the cost of traffic signal installation at the intersections of Country Club Drive and Oasis Club Drive, 42nd Avenue and Oasis Club Drive, and E1 Dorado Drive and 42nd Avenue. Traffic signalization fees required for the Project may be used as credits against these costs. -6- n • 205654 7.5 Time for Commencement. Sunrise shall commence construction of the Project within ten (10) years of the Effective Date of this Agreement. Failure to do so shall be considered a default by Sunrise. Notwithstanding the foregoing, the time for commencement may be extended by agreement of the parties upon a showing by Sunrise of good cause for the extension. 8.0 City's Obligations. 8.1 Development in Accordance with Existing Approvals. To the fullest extent of the City's authority and jurisdiction, Sunrise shall have a vested right to design, construct, operate and maintain the Project in accordance with the Development Plan, Existing Approvals and the terms of the rules, regulations, and ordinances of the City in effect as of the Date of Enactment of this Agreement ("Local Rules"). The City shall not impose, or seek to impose, any additional requirements, exactions, fees or payments, or dedication or reservation requirements except those expressly set forth in the Reservation of Authority. 8.2 Timely Application and Processing. The City hereby acknowledges that the timely development of the Project will benefit the public health, safety, and welfare. In recognition of this, the City and Sunrise agree to cooperate in the expeditious processing and review of all applications for further approvals required by the Project. The City shall not impose any exaction or restriction (except requirements relating to the normal processing of applications for development approvals) which would delay, interfere with or impede the commencement or rate of design, construction, development or operation of the Project or any component thereof as contemplated by the Development Plan. 8.3 Excmption From Construction Moratorium. The City specifically agrees and acknowledges that the Project is exempt from the construction moratorium adopted by the City on or about April 26, 1990, as set forth in Ordinance No. 602, and from any extensions to the construction moratorium which the City may adopt in the future. 8.4 Review of Subsequent Applications. The Project, including subsequent applications for approvals necessary for the development of the Project in accordance with the Development Plan, shall not be subject to any changes in the Local Rules or new Local Rules adopted subsequent to the Date of Enactment, which would interfere or conflict with the development of the Project for the uses and to the height, design standards, density and intensity of use specified in the Development Plan, or with the rate of development of the Project, except as otherwise provided by this Agreement, including the Reservations of Authority. The City shall -7- • 205654 promptly issue any permits which may be required to implement the Development Plan, provided that Sunrise is in compliance with this Agreement and the Local Rules in effect as of the Date of Enactment. 8.5 Other Governmental Permits. Sunrise may apply for such other permits and approvals from other governmental or quasi -governmental agencies having jurisdiction over the Project as may be required for the development, design, construction, or operation of the Project in accordance with the Development Plan. The City shall cooperate with Sunrise in its efforts to obtain such permits and approvals and shall assist in expediting LAFCO processing of the annexation of the Property. 8.6 Cgooeration in Formation of CFDs. In addition to the Cook Street CFD described in Section 7.2, the City and Sunrise intend to consider the formation of one or more CFDs which will include the Property, or a portion thereof, within their boundaries for the purpose of financing various off -site improvements. The City shall use its best efforts to cooperate with Sunrise in the formation and establishment of such CFDs; provided, however, that nothing herein shall prevent Sunrise in its sole discretion from voting against the formation of any CFD, with the exception of the Cook Street CFD. 9.0 Limitations. Reservations and Exceptions. 9.1 Reservations of Authority. Notwithstanding any other provision of this Agreement, the following rules, regulations and ordinances of the City which may come into effect after the Date of Enactment of this Agreement shall apply to the development of the Property. A. Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. B. Changes in regulations governing construction standards and specifications after the effective date of this Agreement which are required by changes in state or federal law or federal laws or regulations, or by changes in the uniform building code, plumbing code, mechanical code, electrical code, fire code and grading code. C. Processing fees and charges of every kind and nature imposed by the City, on a uniform City-wide basis at the time such fees are due, to cover the estimated actual costs to the City of processing applications for development approvals or for monitoring compliance with any development approvals granted or issued. -8- • D. Regulations which the Development Plan, but which are project the public health and safety; any such regulation shall be applied provide Sunrise with the rights and this Agreement. of Sunrise. • 265654 may be in conflict with reasonably necessary to to the extent possible, and construed so as to assurances provided under E. Regulations applied with the written consent 9.2 Future Regulations. Nothing herein shall prevent the City, in subsequent discretionary approvals for the Project, from applying new rules, regulations, or ordinances (1) not inconsistent or in conflict with the Local Rules or with the purposes and conditions of this Agreement, and (2) which do not interfere or conflict with the height, density or intensity set forth in the Development Plan or with the rate of development selected by Sunrise. 9.3 State and Federal Laws and Regulations. The Project shall be subject to existing and future state and federal laws and regulations, together with any City land use regulations, programs and actions, or inaction, which are reasonably (taking into consideration, among other things, the assurances provided to Sunrise hereunder) adopted or undertaken by the City in order to comply with state and federal laws and regulations; provided, that in the event that state or federal laws and regulations prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or suspended as may be necessary to comply with such state and federal laws and regulations. In such event, this Agreement shall remain in full force and effect to the extent that it is not inconsistent with such laws and regulations and that performance of the remaining provisions would not be inconsistent with the intent and purposes of this Agreement. 9.4 Full Extent of Law. The parties acknowledge and agree that the City is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to the City all of its police power which cannot be so limited. 10.0 Periodic Review of Compliance. 10.1 Planning Commission Review. The Planning Commission, at a public hearing, shall conduct a compliance review of this Agreement within six months from the Date of Enactment, and annually thereafter. At least one week prior to the Planning Commission compliance hearing, Sunrise shall submit a letter to the Planning Commission, demonstrating its good faith compliance with this Agreement. If the Planning Commission finds that Sunrise has demonstrated good faith compliance with this Agreement, the annual review shall be deemed concluded. -9- ZOSs'S4 10.2 Appeal to City Council. If the Planning Commission finds and determines on the basis of substantial evidence that Sunrise has not complied in good faith with this Agreement, the Planning Commission shall (1) specify actions to be taken to cure the default under the Agreement, (2) propose the modification of the Agreement, or (3) propose the termination of the Agreement. Sunrise shall have the right to appeal any portion of any such action to the City Council within thirty days of the date of the Planning Commission action. 10.3 City Council Action. Upon appeal by Sunrise pursuant to Section 10.2 herein, the City Council shall conduct a hearing to determine whether Sunrise is in good faith compliance with this Agreement. If the City Council determines that Sunrise is in good faith compliance, the annual review process shall be deemed completed. If the City Council finds that Sunrise has not complied in good faith with this agreement, it shall (1) specify actions to be taken to cure the default under the Agreement, (2) modify the Agreement, or (3) terminate the Agreement. 11.0 Term. This Agreement shall commence on the Effective Date and shall continue in effect for twenty years from the Effective Date. This term is intended to provide sufficient time for the full repayment of the bonds to be issued by the CFD referred to in Section 7.2, or of any other debt obligations incurred in lieu of such bonds. If the parties determine that a longer period is necessary to achieve the purpose stated herein, the term of this Agreement may be extended by the further written agreement of the parties in accordance with Section 12.3. 12.0 Amendment. 12.1 Initiation of Amendment. Either party may propose an amendment to this Agreement. Except as otherwise provided herein, cancellation or amendment shall follow the notice and hearing requirements established by applicable law for the consideration of development agreements. 12.2 Insubstantial Deviations from Development Plan. Any insubstantial deviation from the Development Plan with respect to the location, size, or height of structures, streets, and other physical facilities, as determined by the Director of Planning, may be approved by the person or body with authority to approve the plans for such facilities without amendment of this Agreement, in accordance with City policy. Insubstantial deviations shall include, without limitation, the introduction of different housing product types and the replotting of the locations of houses, so long as such -10- � r 205654 deviations are not inconsistent with (a) the permitted uses described in Exhibit 8, and (b) City policy in effect at the time of entry into this Agreement. 12.3 Administrative Interpretations Not in Conflict With Birposes of This Agreement. Upon agreement of the parties hereto, memoranda of administrative interpretation may be entered into regarding any aspect of this Agreement which does not relate to permitted uses, density or intensity of use, height or size of buildings, provisions for reservation of land, conditions, restrictions and requirements relating to subsequent discretionary approvals, rate of development, or the term of the Agreement. 13.0 Partial Invalidity. If any material provision of this Agreement is determined to be void, invalid, or illegal by a final judgment of a court of competent jurisdiction, the parties may (a) amend this Agreement pursuant to the procedures set forth herein, or (b) by mutual agreement of the parties, terminate the Agreement. 14.0 Enforceability. It is acknowledged and agreed by the parties hereto that any assurances provided to Sunrise with respect to the imposition of additional exactions, regulations, or restrictions affecting permitted uses, intensity of use, density, height, or the rate of development of the Project are (a) intended to be relied upon by Sunrise; (b) made in exchange for valuable and adequate consideration provided by Sunrise in the form of covenants and commitments as set forth in this Agreement; and (c) made with the understanding that such assurances will not be amended, changed, or increased except as provided herein. 15.0 Remedies. 15.1 Specific Performance. The parties agree and understand that a breach of this Agreement may result in irreparable harm to the non -breaching party, and that specific performance of this Agreement is a proper and desirable remedy. 15.2 Withdrawal. In the event that Sunrise is unable to construct and operate the Project in a manner set forth in the Development Plan and this Agreement because of (a) this Agreement or any portion hereof being determined to be invalid or unenforceable, (b) the imposition of any exaction, restriction, or change in the Local Rules not specifically provided for in this Agreement, or (c) Sunrise reasonably determining that the Project, despite good faith efforts, is economically infeasible, in addition to any other remedy which it might possess, Sunrise shall have the right upon written notice to the City to withdraw from this Agreement. -11- 205654 Thereafter, the City and Sunrise shall be released from any and all further liabilities or obligations hereunder. Sunrise's notice to the City that it is withdrawing from this Agreement shall constitute a waiver of Sunrise's rights hereunder and the Project shall be subject to City review according to the rules and regulations in existence at that time. 16.0 Mortgagee Protection. No breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any deed of trust or mortgage made in good faith and for value, and no holder of a deed of trust or mortgage ("Mortgagee") shall have an obligation or duty under this Agreement to perform Sunrise's obligations or to guarantee such performance. Notwithstanding the foregoing, any acquisition or acceptance of title or any right or interest in or with respect to the Property or any portion thereof, by a Mortgagee (whether under or pursuant to a mortgage, foreclosure, trustee's sale, deed in lieu of i foreclosure, or otherwise), shall be subject to all of the i terms and conditions contained in this Agreement. 17.0 Miscellaneous Provisions. i 17.1 Incorporation of Exhibits. Exhibits A and B, attached hereto, are incorporated herein by this reference. 17.2 No Agency Created. It is understood and agreed to by the parties that the Project is a private development, that neither party is acting as the agent of the other in any respect and that no partnership, joint venture or other association of any kind is formed by this Agreement. 17.3 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond such party's control, government regulations, court actions (such as restraining orders or injunctions) or other causes beyond such party's control. If any such events shall occur, the term of this Agreement and the time for performance by either party of any of its obligations hereunder shall be extended by the period of time that such events prevented such performance, provided that the terms of this Agreement shall not be extended for a period which would cause this Agreement or provisions hereof to be void as violating the rule against perpetuities. 17.4 No Third Party Beneficiaries. This Agreement is entered into for the sole protection and benefit of the parties and their successors and assigns. No third -party beneficiaries are created by this Agreement. -12- 0 0 205654 17.5 Assignment. This Agreement shall not be assigned or otherwise transferred without the prior written consent of the City; provided, however, that such approval shall not be unreasonably withheld. This Agreement shall benefit and bind all subsequent transferees. Express assumption of any of the obligations hereunder by any transferee permitted by this paragraph shall relieve the transferor from any assumed obligation. 17.6 Entire Agreement. This Agreement constitutes the entire Agreement between the parties with respect to the subject matter of the Agreement. 17.7 Recitals. The recitals to this Agreement constitute part of this Agreement. Each party shall be entitled to rely on the truth and accuracy of each recital as an inducement to enter into this Agreement. 17.8 Further Actions and Instruments. Upon the request of either party, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments or writings, including estoppel certificates, and take any actions that may be reasonably necessary under the terms of this Agreement to carry out the intent, fulfill the provisions, and evidence or consummate the transactions contemplated by this Agreement. 17.9 Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent certified mail, postage prepaid and addressed as follows: To City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Ramon A. Diaz. ACM/Director of Planning To Sunrise: Sunrise Desert Partners 42-600 Cook Street, Suite 200 Palm Desert, California 92260 Attn: Phillip K. Smith, Jr. with a copy to: Nossaman, Guthner, Knox & Elliott 650 Town Center Drive, Suite 1250 Costa Mesa, California 92626 Attn: Jean O. Melious, Esq. Any notice given as required herein shall be deemed given seventy-two hours after deposit in the United States mail or upon receipt. A party may change its address for notices by giving notice in writing to the other party as required herein. -13- • ZOS654 17.10 Construction of Aareement. The captions in this Agreement are for convenience only and shall not be considered or referred to in resolving questions of construction. This Agreement shall be governed by the laws of the State of California. 17.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 17.12 Hold Harmless. Sunrise agrees to and shall hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from the direct or indirect operation of Sunrise or those of its contractors, subcontractors, agent, employee, or other person acting on its behalf which relate to the Project. Sunrise agrees to and shall defend City and its officers, agents, employees and representatives from actions for damages caused or alleged to have been caused by reason of Sunrise's activities in connection with the Project. This provision applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this paragraph, regardless of whether or not the City prepared, supplied or approved plans or specifications or both for the Project. It does not apply to negligent acts or omissions by the City. Sunrise further agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any action challenging the validity of this Agreement. 17.13 Reimbursement of _Qosts. Sunrise shall pay to City its direct costs associated with entering into this Agreement, as shown on itemized City invoices. Such costs shall be paid prior to issuance of final approvals. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date(s) set forth below, as of the day and year first above written. Date • 5-" Z Y- 9 "city" CITY OF PALM DESERT -14- Date: 2 ` / 2 r 9 / "Sunrise" Date: 06/05/91 Date: 06/07/91 CAT. NO. NN00633 TO 1954 CA (9— 341 (Corporation as a Partner of a Partnership) SUNRISE DESERT PARTNERS By Sunrise Corporation Its General Partner By Its CXtct,,. �•�e ✓.',r_e APPROVED O FORM: Cit ttorney City of Palm Desert ATTEST: 205654 L •, City Clerk <� r^' City of Palm Desert. '. J TICOR TITLE INSURANCE STATE OF CALIFORNIA COUNTY OF Riverside SS. 205654 On Feb. 12, 1991 before me, the undersigned, a Notary Public in and for said State, personally appeared Phillitn R. Smith. Jr_ personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the Executive Vine President, rem !a I"s or proved to ffi� on the begis of swisfeekery @videmo* t of r _ Suni a Corporation the corporation that executed the within instrument on behalf of Sunrise Desert Partnerz M�yN�N�MH�+N1�►• the partnership that cxecuted [ OFFICIAL SFAI the within instrument, and acknowledged to me that such ALLAN A, &N corporation executed the same as such partner and that NOWVy pMC.CAltf�A such partnership executetthesinme. PRMC fkOFRM (8WITNESS hand and al. fb+rERSICE000KTY My Commission Eat➢• Aug. 21. 1992 � HH� HAM � �"�'�'►�� • Signature (This area for official notarial seal) 205654 C521886 EXHIBIT "A" DESCRIPTION The land referred to in this report is situated in the County of Riverside, State of California, and is described as follows: DIVISION I PARCEL 1: All that portion of the West half of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, more particularly described as follows: Beginning at the Northeast corner of said west half; thence South 89010145/1 West, on the North line of said West half, 1,330.18 feet, to an intersection with the Northerly prolongation of the West line of Parcel 1, as shown by Record of Survey on file in Book 35, Page 13 of Records of Survey, Records of Riverside County, California; thence South 000021330 West, on said Northerly prolongation and on said West line, 5,317.88 feet to the Southwest corner of said Parcel 1; thence North 890281150 East, on the South line of said Parcel 1, 1,325.54 feet to the Southeast corner thereof; thence North 00005130' East, on the East line of said Parcel 1 and the Northerly prolongation thereof, 5,324.71 feet to the point of beginning; Said property is also shown as Parcel 1 of Record of Survey on file in Book 35, Page 13 of Records of Survey, Records of Riverside County, California; EXCEPT that portion described in the deed to the County of Riverside by document recorded August 11, 1972 as Instrument No. 107739 of Official Records of Riverside County, California. -16 - EXHIBIT "A" (font' d . ) PARCEL 2: 205654 C521886 The west half of the Northeast quarter and the North half of the Northwest quarter of the Southeast quarter of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, as shown by united States Government Survey; EXCEPT the Northerly 44.00 feet thereof, as described in the deeds to the County of Riverside recorded March 31, 1958 as Instrument No. 23189 in Book 2246, Page 519 and on April 15, 1958*as Instrument No. 27209 in Book 2255, Page 236 both respectively of Official Records of Riverside County, California. PARCEL 3: The East half of the East half of the East half of Section 11, Township 5 South. Range 6 East, San Bernardino Meridian, in the City of Palm Desert. County of Riverside, State of California; EXCEPT the North 44.00 feet thereof, described in the Deeds to the County of Riverside, by deeds recorded March 31, 1958 in Book 2246, Page 519 as Instrument No. 23189 and on April 15, 1958 1n Book 2255, Page 236 as Instrument No. 27209 both respectively of Official Records of Riverside County, California; ALSO EXCEPT the Southeast quarter of the Southeast quarter of said section. PARCEL 4: The South half of the Southeast quarter and the South half of the Northwest quarter of the Southeast quarter of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert. County of Riverside, State of California, according to the official plat thereof. - 17 - • 205554 C521886 EXHIHT "A" (Cont'd.) ntvTSTAN TT All that portion of the West half of the West half of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, according to the official plat thereof, described as follows: Beginning at the Northeast corner of said West half of Section 11; thence South 890101451/ West on the North line of said West half, 1,330.18 feet, to an intersection with the Northerly prolongation of the West line of Parcel 1, as shown by Record of Survey, on file in Book 35, Page 13 of Records of Survey. Records of Riverside County, California and the true point of beginning; thence South 00002133/1 West on said Northerly prolongation and on said West line, 5,317.88 feet to the Southwest corner of said Parcel 1; thence South 89028115" West on the South line of Parcel 2 as shown by said Record of Survey, 1.330.58 feet to the Southwest corner thereof; thence North 0000510011 East on the West line of Parcel 2, 2;655.61 feet to an angle therein; thence North 00000145° East on said West line and the Northerly prolongation thereof, 2,655.51 feet to the Northwest corner of Section 11; thence North 89010145/1 East on said North line of said West half, 1,330.18 feet to the true point of beginning. EXCEPT that portion described by deed to Southern California Edison Company, a California corporation recorded October 26, 1982 as Instrument No. 184850. DIVISION III The West half of the East half of the East half of Section 11, Township 5 South, Range 6 East, San Bernardino Meridian, in the City of Palm Desert, County of Riverside, State of California, according to the official plat thereof. EXCEPT the North 44.00 feet, described by deeds to the County of Riverside recorded March 31, 1958 in Book 2246, Page 519 and April 15, 1958 in Book 2255, Page 236, Records of Riverside County. ALSO EXCEPT the Southeast quarter of the Southeast quarter of said section. Note: Said land is also known as all that property lying within the boundaries of Tentative Tract 26123, a portion of said land 1s to be resubdivided into Tract 26757. - 18- - • 205654 EXHIBIT B Development Plan 1. Permitted Uses of the Property Housing, including single family detached one- and two-story homes and attached homes containing from two to six units per building; Two eighteen -hole golf courses and ancillary facilities, including but not limited to maintenance facilities, half -way houses with snack shops and rest rooms; Entry complexes; Sales, resales and rentals building; A clubhouse, including golf, tennis and health spa facilities, dining rooms, freestanding grill room/snack shop, lounges, banquet and meeting rooms, golf pro shops, a tennis and spa pro shop, at least fourteen tennis courts (seven night -lighted), four night -lighted paddle tennis courts, two night -lighted croquet courts, swimming pools, locker room facilities, child care center and teen activity room. The power source for the building may consist of a cogeneration facility. 2. Maximum Heights of Buildings The maximum height of residential buildings will be 30 feet. The maximum height of the clubhouse will be 60 feet. The maximum height of ancillary golf facilities (including golf maintenance facilities, half -way houses with snack shops and rest rooms) will be 30 feet. The maximum height of entry complexes will be 30 feet. The maximum height of the sales, resales and rentals building will be 30 feet. -ls- It ,. � • 205654 3. Density and Intensity ot_ Use; Maximum Size of Buildings ORI:JJF:54 Residential: No more than 1,500 homes shall be constructed. This constitutes a density of approximately 2.35 units per acre. Homes shall range in size from 1,-*2a0 'to 4,000 square feet. Clubhouse: The clubhouse shall not exceed 125,000 square feet in size. The freestanding grill room/snack shop shall not exceed 5,000 square feet. Ancillary golf facilities, including golf maintenance facilities, half -way houses with snack shops and rest rooms, shall not exceed 40,000 square feet. Entry complexes shall not exceed 7,500 square feet. The sales, resales and rentals building shall not exceed 5,000 square feet. -M0