HomeMy WebLinkAboutOrdinance #3982 ORDINANCE NO. 3982
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
ADOPTING A DEVELOPMENT AGREEMENT BY AND BETWEEN
THE CITY OF HUNTINGTON BEACH AND ELAN HUNTINGTON BEACH
(DEVELOPMENT AGREEMENT NO. 13-001)
WHEREAS, the City Council approved Site Plan Review No. 12-001 to develop an
approximately 2.74 acre property located at 18502-18552 Beach Boulevard, Huntington Beach,
California ("Property"), with 274 apartment units, including live work units, with a leasing office
and private and public recreation and open space areas and 8,500 square feet of commercial area
("Project"), pursuant to the City of Huntington Beach Zoning and Subdivision Ordinance; and
The City and Elan Huntington Beach, LLC, a Delaware limited liability company
("Developer") each mutually desire to enter into a Development Agreement with one another to
permit and ensure that the Property is developed in accordance with the approved Site Plan No.
12-001 and the City's zoning regulations to achieve the mutually beneficial development of the
Property,
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
ordain as follows:
SECTION 1. That the City Council hereby finds that Development Agreement No. 13-
001 conforms to Government Code Section 65864 et. seq. and that:
a. Development Agreement No. 13-001 is consistent with the Huntington Beach
General Plan; and
b. Development Agreement No. 13-001 is consistent with Chapter 246 of the
Huntington Beach Zoning and Subdivision Ordinance (HBZSO) and the
Huntington Beach Municipal Code; and
C. Development Agreement No. 13-001 will not be detrimental to the health, safety
and general welfare, and will not adversely affect the orderly development of the
property because it is consistent with applicable land use regulations of the zoning
regulations in effect at the time of project approval, mitigation measures adopted
for the Project in accordance with EIR No.10-004, and conditions approved for
Site Plan Review No.12-001; and
d. The City Council has considered the fiscal effect of Development Agreement No.
13-001 on the City and the effect on the housing needs of the region in which the
City is situated and has balanced these needs against the public service needs of
its residents and available fiscal and environmental resources.
13-3733/95388.doc I
Ordinance No. 3982
SECTION 2. Based on the above findings, the City Council of the City of Huntington
Beach hereby approves Development Agreement No. 13-001 and adopts it by this ordinance
pursuant to Government Code Section 65867.5. This action is subject to a referendum.
SECTION 3. This ordinance shall take effect 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 15thday of July , 2013.
a
Mayor
ATTEST: APPROVED AS TO FORM:
V,Lfiz��
'ty Clerk City Attor ey
REVIEW APPROVED: INITIATE AN APPROVED: bi`
Ci Ma ager Director f Planning and Building
Exhibit A: Development Agreement No. 13-001
13-3733/95388.doc 2
This Document was electronically recorded by
City of Huntington Beach
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk-Recorder
RECORDING REQUESTED BY III I I IIIIIII IIII 1111111111111111111111111111111111IIIN 0 FEE
AND WHEN RECORDED MAIL TO:
2013000411578 12:11 pm 07/09/13
CITY OF HUNTINGTON BEACH 66 401 Al2 23
2000 Main Street 0.00 0.00 0.00 0.00 66.00 0.00 0.00 0.00
Huntington Beach, CA 92648
Attention: Director of Planning and Building
ALLEN MATKINS LECK GAMBLE
MALLORY &NATSIS LLP
1900 Main Street, 5th Floor
Irvine, California 92614-7321
Attention: R. Michael Joyce, Esq.
(Space Above For Recorder's Use)
DEVELOPMENT AGPEEMVIENT
THIS DEVELOPMENT AGREEMENT ("Agreement") is made in Orange County,
California, as of N;1Z! _y D/, 2013,by and between the CITY OF HUNTINGTON BEACH, a
municipal corporation ot the State of California(the "City") and ELAN HUNTINGTON
BEACH, LLC, a Delaware limited liability company(the "Property Owner").
RECITALS :
A. The City is authorized pursuant to Government Code sections 65864 through
65869.5 and Huntington Beach Zoning and Subdivision Ordinance (HBZSO) Chapter 246 to
enter into binding development agreements with persons or entities owning legal interests in real
property located within the City.
B. Property Owner is the owner of that certain real property more particularly
described in Exhibit A attached hereto and incorporated herein by this reference (the "Property").
C. The City and the Property Owner each desire to enter into this Agreement
affecting the Property in conformance with Government Code section 65864 et seq.and HBZSO
246 in order to achieve the mutually beneficial development of the Property in accordance with
this Agreement.
D. The Property Owner seeks to develop a project on the Property consisting of up to
274 dwelling units and live work units, 8,500 square feet of ground floor commercial uses, as
more particularly set forth in the Development Plan(collectively, the "Project"), attached as
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Exhibit B and incorporated herein, all in accordance with City regulations, as may be amended
from time to time.
E. The City Council of the City(the "City Council") previously certified an
environmental impact report No. 10-004 (the "EIR") for an area which includes the Project site,
and the Planning Commission has conducted and approved an Environmental Assessment/Initial
Study Checklist("EA") for the Project in connection with the Planning Commission's approval
of Site Plan Review 12-01 pursuant to the Beach and Edinger Corridors Specific Plan(BECSP),
Town Center Neighborhood segment.
F. The City and the Property Owner each mutually desire to obtain the binding
agreement of one another to permit and ensure that the Property is developed strictly in
accordance with the provisions of this Agreement.
G. This Agreement will benefit the Property Owner and the City by eliminating
uncertainty in planning and providing for the orderly development of the Project. Specifically,
this Agreement(1) eliminates uncertainty about the validity of exactions to be imposed by the
City, (2) provides for the construction of needed affordable housing, (3) ensures that
development of the Property occurs within a reasonable timeframe, and(4) generally serves the
public interest within the city and the surrounding region.
H. The Planning Commission and City Council have each given notice of their
intention to consider this Agreement, and have each conducted public hearings thereon pursuant
to the relevant provisions of the Government Code. The City Council has found that the
provisions of this Agreement are consistent with the City's 1996 General Plan for development
within the City, as amended (the "General Plan") and City zoning ordinances, as amended. The
Planning Commission and City Council have also specifically considered the impacts and
benefits of the Project upon the welfare of the residents of the City and the surrounding region.
The City Council has determined that this Agreement is beneficial to the residents of the City
and is consistent with the present public health, safety and welfare needs of the residents of the
City and the surrounding region.
1. On May 28 , 2013, the Planning Commission held a duly noticed
public hearing on this Agreement.
J. On July 01 , 2013, the City Council held a duly noticed public
hearing on this Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals which are hereby
incorporated into the operative provisions of this Agreement by this reference and other good
and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the City
and the Property Owner agree as follows:
1. Definitions.
1.1. "Affordable Dwelling Units" shall mean a Dwelling Unit available at
Affordable Rent.
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1.2. "Affordable Housing Agreement" shall collectively mean that certain
Affordable Housing Agreement Restrictions—Rental (Declaration of Covenants, Conditions and
Restrictions for Property) (AHARR)by and between the HBHA, the City and the Property
Owner together with all attachments thereto, which was approved as to form as part of this
Development Agreement. AHARR shall also include any and all amendments or modifications
thereto.
1.3. "Affordable Rent" shall have the same meaning set forth in California
Health and Safety Code section 50053, as more specifically set forth in the Agreement
Containing Covenants Affecting Real Property to be attached to the Affordable Housing
Agreement.
1.4. "Applicable Rules" shall mean the rules, regulations, ordinances and
official policies of the City which were in force as of the Effective Date (as defined below),
including,but not limited to, the General Plan, City zoning ordinances and other entitlements,
development conditions and standards, public works standards, subdivision regulations, grading
requirements, and provisions related to density, growth management, environmental
considerations, and design criteria applicable to the Project. Applicable Rules shall not include
building standards adopted by the City pursuant to Health and Safety Code sections 17922 and
17958.5.
1.5. "Area Median Income" shall mean the area median income for the County
of Orange ("County") as published annually by the California Department of Housing and
Community Development and determined in accordance with the U.S. Department of Housing
and Urban Development criteria then in effect and published from time to time. For purposes of
this Agreement, the qualifying limits shall be those limits for the County, as set forth in Title 25,
California Code of Regulations, section 6932, as that section may be amended,modified or
recodified from time to time. If the California Code of Regulations is amended or modified
during the term of this Agreement so that such regulations do not specify the area median income
from the County, the City shall negotiate in good faith to determine an equivalent authoritative
source which determines median income for the County.
1.6. "City Council" shall mean the City Council of the City.
1.7. "City Manager" shall mean the City Manager of the City.
1.8. "County" shall mean Orange County.
1.9. "Development Impact Fees" shall mean and include all fees charged by the
City in connection with the application, processing and approval or issuance of permits for the
development of property, including, without limitation: application fees; permit processing fees;
inspection fees; utility capacity fees; service or connection fees; library/cultural enrichment fees;
traffic impact fees; development impact or major facilities fees; park fees; flood control fees;
environmental impact mitigation fees; and any similar governmental fees, charges and exactions
required for the development of the Project.
1.10. "Development Plan" shall mean Site Plan Review No. 12-001 approved by
the City.
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1.11. "Discretionary Actions" and "Discretionary Approvals" shall mean those
actions and approvals which require the exercise of judgment, or imposition of a condition or
obligation,by any officer, employee, review board, commission or department of the City.
Discretionary Actions and Discretionary Approvals are distinguished from activities or approvals
which merely require any officer, employee, review board, commission or department of the City
to determine whether or not there has been compliance with applicable statutes, ordinances,
regulations or conditions of approval.
1.12. "Dwelling Unit" shall mean a place in the Project that is legally available
to be rented by a person or family.
1.13. "Effective Date" shall mean the date on which the ordinance approving
this Agreement has been adopted by the City.
1.14. "HBHA" shall mean the Housing Authority of the City of Huntington
Beach.
1.15. "Moderate Income Household" shall mean persons and families whose
income conforms to the qualifying limits defined by California Health and Safety Code Section
5OO93(b) and set forth in Title 25, California Code of Regulations, Section 6932, as that section
may be amended, modified or recodified from time to time. Generally, Moderate Income
Household means income that exceeds eighty percent(80%) of the Area Median Income but
does not exceed one hundred twenty percent (120%) of the Area Median Income, adjusted for
family size by the California Department of Housing and Community Development ("HCD") in
accordance with adjustment factors and adopted and amended from time to time by the United
States Department of Housing("HUD")pursuant to Section 8 of the United States Housing Act
of 1937.
1.16. "Market Rate Rental Dwelling Unit" shall mean those Dwelling Units in
the Project that are not Affordable Dwelling Units nor governed by the Affordable Housing
Agreement.
1.17. "Periodic Review" shall have the meaning assigned to such term in
Paragraph 1O(a).
1.18. "Planning Commission" shall mean the Planning Commission of the City.
1.19. "Project" shall mean that development contemplated pursuant to the
Development Plan, attached as Exhibit B.
1.20. "Recession" shall mean an economic recession as determined by the
National Bureau of Economic Research, or any successor organization charged with the duty of
determining the state of the United States economy.
1.21. "Subsequent Rules" shall mean the rules, regulations, ordinances and
official policies of the City, adopted and becoming operative after the Effective Date, including,
but not limited to, the General Plan, the Specific Plan, City zoning ordinances and other
entitlements, development conditions and standards,public works standards, subdivision
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regulations, grading requirements, and other provisions related to density, growth management,
environmental considerations, and design criteria.
2. Term of Agreement. This Agreement shall become operative and commence
upon the Effective Date and remain in effect for a term of five(5) years. Except for continuing
obligations regarding affordable housing covenants and requirements,upon the expiration or
termination of the term, this Agreement shall be deemed terminated and have no further force
and effect.
3. Vested Right to Develop the Project. Subject to Paragraphs 3.3 through 3.8,
below, and the Applicable Rules, the City hereby grants to the Property Owner the vested right to
develop the Project on the Property to the extent and in the manner provided in this Agreement.
Subject to Paragraphs 3.3 through 3.8, below, any change in the Applicable Rules adopted or
becoming effective after the Effective Date(Subsequent Rules) shall not be applicable to or
binding upon the Projector the Property. Subject to Paragraphs 3.3 through 3.8, below, this
Agreement will bind the City to the terms and obligations specified in this Agreement and will
limit, to the degree specified in this Agreement and under state law, the future exercise of the
City's ability to regulate development of the Project.
3.1. No Conflicting Enactments. Subject to Paragraphs 3.3 through 3.8, below,
neither the City Council nor any department of the City shall enact rules, regulations, ordinances
or other measures which relate to the rate, timing, sequencing, density, intensity or configuration
of the development of any part of the Project which is inconsistent or in conflict with this
Agreement during the term of this Development Agreement.
3.2. Initiative Measures. Subject to Paragraphs 3.3 through 3.8, below, the
Property Owner and the City intend that no moratorium or other limitation(whether relating to
the rate, timing or sequence of the development of all or any part of the Project and whether
enacted by initiative or otherwise) affecting parcel or subdivision maps (whether tentative,
vesting tentative or final), building permits, certificates of occupancy or other entitlements shall
apply to the Project to the extent such moratorium or other limitation is inconsistent or conflicts
with this Agreement.
3.3. Federal or State Laws. Notwithstanding any provision to the contrary
contained herein, the City expressly reserves the right to modify any of the Applicable Rules to
the extent necessary to comply with applicable federal or state laws, codes or regulations which
preempt local jurisdiction including, by way of example, and without limiting the generality of
the foregoing, the California Environmental Quality Act, all building codes, and any safety
regulations, but such modifications shall be made only to the extent required thereunder.
3.4. Emergency. Notwithstanding any provision to the contrary contained
herein,the City expressly reserves the right to apply to the Project any development moratorium,
limitation on the delivery of City-provided utility services, or other generally applicable
emergency rule, regulation, law or ordinance affecting land use: (1) which is based on genuine
health, safety and general welfare concerns (other than general growth management issues); (2)
which arises out of a documented emergency situation, as declared by the President of the United
States, Governor of California, or the Mayor, City Council or City Manager of the City; and (3)
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based upon its terms or its effect as applied, does not apply exclusively, primarily or
disproportionately to the Project or the Property.
3.5. Project Completion. This Agreement and the EIR and associated findings,
are based on the expectation that the Project will be constructed as follows: up to 274 Market
Rate Rental Dwelling Units including six (6) live/work units, 27 Affordable Dwelling Units and
up to 8,500 square feet of ground floor commercial space will be completed for occupancy
during the term of the Agreement.
3.6. Public Health Concerns. Notwithstanding any provision to the contrary
contained herein, the City expressly reserves the right to apply to the Project any generally
applicable rule, regulation, law or ordinance which does not affect the land use or development
of the Project and which is based on concerns for the public health, safety or general welfare,
including,but not limited to,building codes not otherwise preempted by State law.
3.7. New Engineering and Construction Standards. Notwithstanding any
provision to the contrary contained herein, the City expressly reserves the right to modify any of
the Applicable Rules if the City adopts new and/or amended regulations governing engineering
and construction and grading standards and specifications including, without limitation, any and
all uniform codes adopted by the City, including local amendments to these codes pursuant to
state law allowing for such amendments; provided that such codes are uniformly applied to all
new development projects of similar type as the Project within the City and provided further that
any such modifications to grading standards can only be imposed prior to grading and any such
modifications to engineering or construction standards can only be applied prior to the initiation
of construction. Such codes include, without limitation, the City's Uniform Housing Code,
Building Code, Plumbing Code, Mechanical Code, Electrical Code and Fire Code.
3.8. Cooperation and Indemnification. The City agrees to cooperate with the
Property Owner in all reasonable manners in order to keep this Agreement in full force and
effect. Notwithstanding the preceding sentence, in the event any legal action instituted by a third
party or other government entity or official challenging the validity of this Agreement, the City
and the Property Owner agree to cooperate in defending such action, with the Property Owner to
indemnify the City pursuant to Paragraph 15 of this Agreement. In the event of any litigation
challenging the effectiveness of this Agreement or any portion thereof, this Agreement shall
remain in full force and effect while such litigation, including any appellate review, is pending,
unless a court of competent jurisdiction orders otherwise.
4. Development of the Property.
(a) Permitted Uses. The Property Owner agrees that the Property shall only
be developed in accordance with the Development Plan and any conditions and mitigation
measures imposed on the Project through final approval of the Project, and the provisions of this
Development Agreement. Notwithstanding anything set forth in this Agreement to the contrary,
unless the Property Owner proceeds with development of the Property, the Property Owner is not
obligated by the terms of this Agreement to affirmatively act to develop all or any portion of the
Project, pay any sums of money, dedicate any land, indemnify any party, or to otherwise meet or
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perform any obligation with respect to the Project, except and only as a condition of
development of any portion of the Project.
(b) Development Standards. All development and design requirements and
standards applicable to the Project shall conform to the Development Plan and any conditions
and mitigation measures imposed on the Project, the Huntington Beach Municipal Code, and any
Applicable Rules.
(c) Development Impact Fees. In addition to the obligations set forth
elsewhere in this Agreement, the Property Owner shall be responsible for paying when due all
Development Impact Fees in connection with development of the Project at the rates in effect on
the Effective Date. Subject to all applicable laws then in effect, the City shall have the right to
charge and apply to the Property all Development Impact Fees as may be in effect on the
Effective Date.
5. Affordable Housing. It is the intent of the parties that the Affordable Dwelling
Units shall be constructed concurrently with the Market Rate Rental Dwelling Units. The
Project is subject to the requirement of providing a total of 27 Affordable Dwelling Units, all of
which shall be rental units and must remain Affordable Dwelling Units for at least fifty-five (55)
years. The City and the Property Owner agree as a condition precedent to Development that an
Affordable Housing Agreement be executed to memorialize the terms and conditions of the
affordable housing components (attached hereto as Exhibit C). The Property Owner will provide
affordable units for rent, which shall be made available to and occupied by Moderate Income
Households. The Property Owner agrees to record said affordability covenant and Deed of Trust
in favor of the City to assure that affordability covenant runs with the land and remains in effect
for the affordability period. The Property Owner agrees to comply with all terms and provisions
of the Affordable Housing Agreement and its attachments and acknowledges that any default
thereunder shall also constitute a default under this Agreement.
It is contemplated that multiple temporary final inspections(to allow for occupancy) will
be sought during the construction of the Project. When each temporary final inspection(to allow
for occupancy) is sought, approximately ten percent (10%) of the units for which it is sought will
be Affordable Dwelling Units.
6. Extension of Project Approvals. Unless a longer term would result under .
otherwise applicable state law, the term of any permits approved as part of the Project approvals
shall be automatically extended for the term of this Agreement.
7. Subsequent Discretionary Action and Approval. The City agrees not to
unreasonably withhold, condition or delay any Discretionary Action or Discretionary Approval
or other action or approval by the City which may be required by the Project subsequent to the
execution of this Agreement. Upon the filing of a complete application and payment of
appropriate processing fees by the Property Owner,the City shall promptly commence and
diligently schedule and convene all required public hearings in an expeditious manner consistent
with the law and process all Discretionary Actions and Discretionary Approvals in an
expeditious manner.
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8. Compliance Review.
(a) Periodic Review. Pursuant to Government Code section 65865.1, the City
Manager or his or her designee shall, not less than once in every twelve (12)months, review the
Project and this Agreement to ascertain whether or not the Property Owner is in full compliance
with the terms of the Agreement(the "Periodic Review").
(b) Review Procedure. During a Periodic Review, the Property Owner shall
provide information reasonably requested by the City Manager or his or her designee that the
Project is being developed in good faith compliance with the terms of this Agreement. If, as a
result of a Periodic Review, the City finds and determines on the basis of substantial evidence
that the Property Owner has not complied in good faith with the terms or conditions of this
Agreement, the City shall issue a written "Notice of Non-Compliance" to the Property Owner
specifying the grounds therefore and all facts demonstrating such non-compliance. The Property
Owner's failure to cure the alleged non-compliance within sixty(60) days after receipt of the
notice, or, if such noncompliance is not capable of being cured within sixty(60) days, the
Property Owner's failure to initiate all actions required to cure such non-compliance within sixty
(60) days after receipt of the notice and completion of the cure of such non-compliance within
one hundred twenty(120) days, shall constitute a default under this Agreement on the part of the
Property Owner and shall constitute grounds for the termination of this Agreement by the City as
provided for below. If requested by the Property Owner, the City agrees to provide to the
Property Owner a certificate that the Property Owner is in compliance with the terms of this
Agreement,provided the Property Owner reimburses the City for all reasonable and direct costs
and fees incurred by the City with respect thereto.
(c) Termination or Modification for Non-Compliance. Pursuant to
Government Code section 65865.1, if the City Council finds and determines, on the basis of
substantial evidence, that the Property Owner has not complied in good faith with the terms or
conditions of this Agreement, the City Council may modify or terminate this Agreement. Any
action by the City with respect to the termination or modification of this Agreement shall comply
with the notice and public hearing requirements of Government Code section 65867 in addition
to any other notice required by law. Additionally, the City shall give the Property Owner written
notice of its intention to terminate or modify this Agreement and shall grant the Property Owner
a reasonable opportunity to be heard on the matter and to oppose such termination or
modification by the City.
9. Modification, Amendment, Cancellation or Termination.
9.1. Amendment and Cancellation. Pursuant to Government Code section
65868, this Agreement may be amended or canceled, in whole or in part, by mutual written
consent of the City and the Property Owner or their successors in interest. Public notice of the
parties' intention to amend or cancel any portion of this Agreement shall be given in the manner
provided by Government Code section 65867. Any amendment to the Agreement shall be
subject to the provisions of Government Code section 65867.5.
9.2. Modification. The City Planning and Building Director, with the consent
of the Property Owner, may make minor modifications to the Agreement without the need for
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formal action by the City's Planning Commission or City Council as long as such modifications
do not alter the Term of this Development Agreement, the permitted uses, density or intensity of
uses, the maximum height or size of buildings, provisions for reservations or Dedication of land,
conditions, terms, restrictions and requirements relating to Subsequent Discretionary Actions and
Approvals, and monetary contributions by the Property Owner.
10. Defaults,Notice and Cure Periods Events of Default and Remedies.
10.1. Default By the Property Owner.
10.1.1. Default. If the Property Owner does not perform its obligations
under this Agreement in a timely manner, the City may exercise all rights and remedies provided
in this Agreement, provided the City shall have first given written notice to the Property Owner
as provided in Paragraph 15(a) hereof
10.1.2. Notice of Default. If the Property Owner does not perform its
obligations under this Agreement in a timely manner, the City through the City Manager may
submit to the Property Owner a written notice of default in the manner prescribed in Paragraph
15(a) identifying with specificity those obligations of the Property Owner under this Agreement
which have not been timely performed. Upon receipt of any such written notice of default, the
Property Owner shall promptly commence to cure the identified default( s) at the earliest
reasonable time after receipt of any such written notice of default and shall complete the cure of
any such default(s)no later than sixty(60) days after receipt of any such written notice of
default, or if such default(s) is not capable of being cured within sixty(60) days, no later than
one hundred twenty (120) days after receipt of any such written notice of default,provided the
Property Owner commences the cure of any such default(s) within such sixty(60) day period and
thereafter diligently pursues such cure at all times until any such default(s) is cured.
10.1.3. Failure to Cure Default Procedure. If after the cure period
provided in Paragraph 10.1.2 has elapsed, the City Manager finds and determines the Property
Owner, or its successors, transferees and/or assignees, as the case may be, remains in default and
that the City intends to terminate or modify this Agreement, or those transferred or assigned
rights and obligations, as the case may be, the City's Planning and Building Director shall make a
report to the Planning Commission and then set a public hearing before the Planning
Commission in accordance with the notice and hearing requirements of Government Code
sections 65867 and 65868. If after public hearing, the Planning Commission finds and
determines, on the basis of substantial evidence, that the Property Owner, or its successors,
transferees and/or assigns, as the case may be, has not cured a default under this Agreement
pursuant to this Paragraph 10, and that the City shall terminate or modify this Agreement, or
those transferred or assigned rights and obligations, as the case may be, the Property Owner, and
its successors, transferees and/or assigns, shall be entitled to appeal that finding and
determination to the City Council. Such right of appeal shall include, but not be limited to, an
objection to the manner in which the City intends to modify this Agreement if the City intends as
a result of a default of the Property Owner, or one of its successors or assigns, to modify this
Agreement. In the event of a finding and determination that all defaults are cured, there shall be
no appeal by any person or entity. Subject to Paragraph 4(a) above, nothing in this Paragraph 10
or this Agreement shall be construed as modifying or abrogating the City Council's review of
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Planning Commission actions or limiting the City's rights and remedies available at law or in
equity, which shall include (without limitation) compelling the specific performance of the
Property Owner's obligations under this Agreement.
10.1.4. Termination or Modification of Agreements. The City may
terminate or modify this Agreement, or those transferred or assigned rights and obligations, as
the case may be, after such final determination of the City Council or, where no appeal is taken,
after the expiration. of the applicable appeal periods described herein. There shall be no
modifications of this Agreement unless the City Council acts pursuant to Government Code
sections 65967.5 and 65868, irrespective of whether an appeal is taken as provided herein.
10.1.5. Lender Protection Provisions.
10.1.5.1. Notice of Default. In addition to the notice provisions
set forth in Paragraph 15(a)(2), the City shall send a copy of any notice of default sent to the
Property Owner or any of its successors or assigns to any lender that has made a loan then
secured by a deed of trust against the Property, or a portion thereof,provided such lender shall
have (a) delivered to the City written notice ill the manner provided in Paragraph 15(a) of such
lender's election to receive a copy of any such written notice of default and (b)provided to the
City a recorded copy of any such deed of trust. Any such lender that makes a loan secured by a
deed of trust against the Property, or a portion thereof, and delivers a written notice to the City
and provides the City with a recorded copy of any such deed of trust in accordance with the
provisions of this Paragraph 10.1.5.1 is herein referred to as a "Qualified Lender."
10.1.5.2. Right of a Qualified Lender to Cure a Default. The
City shall send a written notice of any Property Owner default to each Qualified Lender. From
and after receipt of any such written notice of default, each Qualified Lender shall have the right
to cure any such default within the same cure periods as provided to the Property Owner
hereunder. If the nature of any such default is such that a Qualified Lender cannot reasonably
cure any such default without being the owner of the Property, or the applicable portion thereof,
(as reasonably determined by the City), then so long as the Qualified Lender(s) is (are) diligently
proceeding (as reasonably determined by the City) to foreclose the lien of its deed of trust against
the owner of the Property, or the applicable portion thereof, and after completing any such
foreclosure promptly commences the cure of any such default and thereafter diligently pursues
the cure of such default to completion, then such Qualified Lender shall have an additional one
hundred twenty(120) days following such foreclosure to cure any such default.
10.1.5.3. Exercise of the City's Remedies. Notwithstanding any
other provision of this Agreement, the City shall not exercise any right or remedy to cancel or
amend this Agreement during any cure period.
10.2. Default by the City.
10.2.1. Default. In the event the City does not accept,processor render
a decision in a timely manner on necessary development permits, entitlements, or other land use
or building approvals for use as provided in this Agreement upon compliance with the
requirements therefore, or as otherwise agreed to by the City and the Property Owner, or the City
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otherwise defaults under the provisions of this Agreement, subject to Paragraph 10.3, the
Property Owner shall have all rights and remedies provided herein or by applicable law, which
shall include compelling the specific performance of the City's obligations under this Agreement
provided the Property Owner has first complied with the procedures in Paragraph 10.2.2.
10.2.2. Notice of Default. Prior to the exercise of any other right or
remedy arising out of a default by the City under this Agreement, the Property Owner shall first
submit to the City a written notice of default stating with specificity those obligations which
have not been performed under this Agreement. Upon receipt of the notice of default, the City
shall promptly commence to cure the identified default(s) at the earliest reasonable time after
receipt of the notice of default and shall complete the cure of such default(s) no later than thirty
(30) days after receipt of the notice of default, or such longer period as is reasonably necessary to
remedy such default(s), provided the City shall continuously and diligently pursue each remedy
at all times until such default(s) is cured. In the case of a dispute as to whether the City is in
default under this Agreement or whether the City has cured the default, or to seek the
enforcement of this Agreement, the City and the Property Owner may submit the matter to
negotiation/mediation pursuant to Paragraph 15(o) of this Agreement.
10.3. Monetary Damages. The Property Owner and the City acknowledge that
neither the City nor the Property Owner would have entered into this Agreement if either were
liable for monetary damages under or with respect to this Agreement or the application thereof.
Both the City and the Property Owner agree and recognize that, as a practical matter, it may not
be possible to determine an amount of monetary damages which would adequately compensate
the Property Owner for its investment of time and financial resources in planning to arrive at the
kind, location, intensity of use, and improvements for the Project, nor to calculate the
consideration the City would require to enter into this Agreement to justify such exposure.
Therefore, the City and the Property Owner agree that neither shall be liable for monetary
damages under or with respect to this Agreement or the application thereof and the City and the
Property Owner covenant not to sue for or claim any monetary damages for the breach of any
provision of this agreement. The foregoing waiver shall not be deemed to apply to any fees or
other monetary amounts specifically required to be paid by the Property Owner to the City
pursuant to this Agreement, including,but not limited to, any amounts due pursuant to Paragraph
15(g) and 15(m). The foregoing waiver shall also not be deemed to apply to any fees or other
monetary amounts specifically required to be paid or credited by the City to the Property Owner
pursuant to this Agreement, including,but not limited to any fee credits specifically required to
be credited by the City to the Property Owner or its assignee(s).
11. Administration of Agreement and Resolution of Disputes. The Property Owner
shall at all times have the right to appeal to the City Council any decision or determination made
by any employee, agent or other representative of the City concerning the Project or the
interpretation and administration of this Agreement. All City Council decisions or
determinations regarding the Project or the administration of this Agreement shall also be subject
to judicial review pursuant to Code of Civil Procedure section 1094.5, provided that, pursuant to
Code of Civil Procedure section 1094.6, any such action must be filed in a court of competent
jurisdiction not later than ninety(90) days after the date on which the City Council's decision
becomes final. In addition, in the event the Property Owner and the City cannot agree whether a
default on the part of the Property Owner, or any of its successors or assigns,under this
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Agreement exists or whether or not any such default has been cured, then the City or the
Property Owner may submit the matter to negotiation/mediation pursuant to Paragraph 15(o).
12. Recordation of this Agreement. Pursuant to Government Code section 65868.5,
the City Clerk shall record a copy of this Agreement in the Official Records of the County within
ten(10) days after the mutual execution of this Agreement.
13. Constructive Notice and Acceptance. Every person or entity who now or
hereafter owns or acquires any right, title or interest in or to any portion of the Property is, and
shall be, conclusively deemed to have consented and agreed to every provision contained herein,
whether or not any reference to this Agreement is contained in the instrument by which such
person acquired an interest in the Property.
14. No Third Party Beneficiaries. This Agreement is made and entered into for the
sole protection and benefit of the City and the Property Owner and their respective successors
and assigns. No other person or entity shall have any right of action based upon any provision of
this Agreement.
15. Miscellaneous.
(a) Notices. All notices which are allowed or required to be given hereunder
shall be in writing and (1) shall be deemed given and received when personally delivered or(2)
shall be sent by registered or certified mail or overnight mail service, addressed to the applicable
designated person by one party to the other in writing, and shall be deemed received on the
second business day after such mailing.
If to the City:
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: City Manager
Tel. No.: (714) 536-5575
Fax No.: (714) 536-5233
If to the Property Owner:
Elan Huntington Beach, LLC
c/o Greystar Capital Partners
17885 Von Karman Avenue, Suite 450
Irvine, CA 92614
Attn: Jerry Brand
Tel. No.: (949) 242-8685
Fax No.: (949) 705-0009
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Allen Matkins Leck Gamble Mallory&Natsis LLP
1900 Main Street, 5th Floor
Irvine, California 92614-7321
Attn: R. Michael Joyce, Esq.
Tel. No.: (949) 553-1313
Fax No.: (949) 553-8354
(b) Severability. If any part of this Agreement is declared invalid for any
reason, such invalidity shall not affect the validity of the remainder of the Agreement unless the
invalid provision is a material part of the Agreement. The other parts of this Agreement shall
remain in effect as if this Agreement had been executed without the invalid part. In the event
any material provision of this Agreement is determined to be invalid, void or voidable, the City
or the Property Owner may terminate this Agreement.
(c) Entire Agreement; Conflicts. This Agreement represents the entire
agreement between the City and the Property Owner with respect to the subject matter hereof
and supersedes all prior agreements and understandings, whether oral or written,between the
City and the Property Owner with respect to the matters contained in this Agreement. Should
any or all of the provisions of this Agreement be found to be in conflict with any other provision
or provisions found in the Applicable Rules or the Subsequent Applicable Rules, then the
provisions of this Agreement shall govern and prevail.
(d) Further Assurances. The City and the Property Owner agree to perform,
from time to time, such further acts and to execute and deliver such further instruments
reasonably to effect the intents and purposes of this Agreement,provided that the intended
obligations of the City and the Property Owner are not thereby modified.
(e) Inurement and Assignment. This Agreement shall inure to the benefit of
and bind the successors and assigns of the City and the Property Owner,may be assigned by
either the City or the Property Owner to any party or parties purchasing all or any part of the
Property, or any interest therein pursuant to the provisions of this Paragraph 15(e). The specific
rights and obligations of this Agreement shall be deemed covenants running with the land that
concern and affect the Property Owner's interest in the Property. Prior to the Property Owner's
assignment of any rights, duties or obligations under this Agreement, the Property Owner shall
present such information required by the City in its commercially reasonable discretion to
demonstrate to the City's satisfaction that the proposed successor and/or assignee has the
financial ability and experience to fulfill those specific rights, duties and obligations under the
Agreement that the successor and/or assignee would assume. The City shall have the right to
approve the proposed successor and/or assignee,provided that the City's approval may not be
unreasonably withheld, conditioned or delayed. The provisions of this Paragraph 15(e) shall be
self-executing and shall not require the execution or recordation of any further document or
instrument. The City's approval rights over a successor or assignee of the Property Owner shall
terminate upon issuance of the final inspection for the project.
(f) Negation of Agency. The City and the Property Owner acknowledge that,
in entering into and performing under this Agreement, each is acting as an independent entity
and not as an agent of the other in any respect. Nothing contained herein or in any document
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executed in connection herewith shall be construed as making the City and the Property Owner
joint venturers, partners or employer/employee.
(g) Attorney_ 'sue. In the event of any claim, dispute or controversy arising
out of or relating to this Agreement, including an action for declaratory relief, the prevailing
party in such action or proceeding shall not be entitled to recover its court costs and reasonable
out-of-pocket expenses.
(h) Waiver. No waiver of any provision of this Agreement shall be effective
unless in writing and signed by a duly authorized representative of the party against whom
enforcement of a waiver is sought.
(i) Force Majeure. Performance by either party hereunder shall not be
deemed to be in default where delays or defaults are due to one or more of the following events,
providing that anyone or more of such event(s) actually delays or interferes with the timely
performance of the matter to which it would apply and despite the exercise of diligence and good
business practices and such event(s) are beyond the reasonable control of the party claiming such
interference: war, terrorism, terrorist acts, insurrection, strikes, lock-outs, unavailability in the
marketplace of essential labor, tools, materials or supplies, failure of any contractor,
subcontractor, or consultant to timely perform (so long as the Property Owner is not otherwise in
default of any obligation under this Agreement and is exercising commercially reasonable
diligence of such contractor, subcontractor or consultant to perform), riots, floods, earthquakes,
fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight
embargoes, lack of transportation, governmental restrictions or priority, a Recession or unusually
severe weather. An extension of time for any such cause (a "Force Majeure Delay") shall be for
the period of the enforced delay and shall commence to run from the time of the commencement
of the cause, if notice by the party claiming such extension is sent to the other party within thirty
(30) days of actual knowledge of the commencement of the cause. Notwithstanding the
foregoing, none of the foregoing events shall constitute a Force Majeure Delay unless and until
the party claiming such delay and interference delivers to the other party written notice
describing the event, its cause, when and how such party obtained knowledge, the date and the
event commenced, and the estimated delay resulting therefrom.
0) Parag_raph Headings. The paragraph headings contained in this Agreement
are for convenience and identification only and shall not be deemed to limit or define the
contents to which they relate.
(k) Time of Essence. Time is of the essence of this Agreement, and all
performances required hereunder shall be completed within the time periods specified. Any
failure of performance shall be deemed as a material breach of this Agreement.
(1) Counterparts. This Agreement and any modifications hereto may be
executed in any number of counterparts with the same force and effect as if executed in the form
of a single document.
(m) Indemnification. The Property Owner agrees, as a condition of approval
of this Agreement, to indemnify, defend and hold harmless at the Property Owner's expense, the
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City, the City Council, and the City's agents, officers and employees from and against any claim,
action or proceeding to attack, review, set aside, void or annul the approval of this Agreement to
determine the reasonableness, legality or validity of any provision hereof or obligation contained
herein. The Property Owner also agrees to indemnify the City, the City Council, and the City's
officials, agents and employees for any claims, acts or proceedings relating to the Property
Owner's failure to comply with the Project's affordable housing requirements.
The indemnity described in this section is not subject to the provisions of paragraph 4.a.
providing that obligations cease if the Project does not go forward; provided, however, that the
indemnity described in the first sentence of this section shall terminate when the applicable
statute of limitations for the legal challenges described therein terminates.
The City shall promptly notify the Property Owner of any such claim, action or
proceeding of which the City receives notice, and the City will cooperate fully with the Property
Owner in the defense thereof. The Property Owner shall provide a defense to the City with
counsel reasonably selected by the Property Owner and the City to defend both the City and the
Property Owner, and shall reimburse the City for any court costs which the City may be required
to pay as a result of any such claim, action or proceeding. The City may, in its sole discretion,
participate in the defense of any such claim, action or proceeding at its own expense,but such
participation shall not relieve the Property Owner of the obligations of this Paragraph 15(m).
(n) Hold Harmless Agreement. The City and the Property Owner mutually
agree to, and shall hold each other and each of the other's elective and appointed councils,
boards, commissions, directors, officers, partners, agents, representatives and employees
harmless from any liability for damage or claims for personal injury, including death, and from
claims for property damage which may arise from the activities of the other or the other's
contractors, subcontractors, agents, or employees which relate to the Project whether such
activities be by the City or the Property Owner, or by any of the City's or the Property Owner's
contractors, subcontractors, or by anyone or more persons indirectly employed by, or acting as
agent for the Property Owner, any of the Property Owner's or the City's contractors or
subcontractors. The City and the Property Owner agree to and shall defend the other and each of
the other's elective and appointive councils,boards, directors, commissioners, officers, partners,
agents,representatives and employees from any suits or actions at law or in equity for damage
caused or alleged to have been caused by reason of the aforementioned activities which relate to
the Project.
(o) Alternative Dispute Resolution Procedure.
(1) Di_smote. If a dispute arises concerning whether the City or the
Property Owner or any of the Property Owner's successors or assigns is in default under this
Agreement or whether any such default has been cured or whether or not a dispute is subject to
this Paragraph(a "Dispute"), then such dispute shall be subject to negotiation between the parties
to this Agreement, and if then not resolved shall be subject to non-binding mediation,both as set
forth. below, before either party may institute legal proceedings.
(2) Neg_otiation. If a Dispute arises, the parties agree to negotiate in
good faith to resolve the Dispute. If the negotiations do not resolve the Dispute to the reasonable
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satisfaction of the parties within 15 days from a written request for a negotiation, then each party
shall give notice to the other party identifying an official or executive officer who has authority
to resolve the Dispute to meet in person with the other party's designated official or executive
officer who is similarly authorized. The designated persons identified by each party shall meet
in person for one day within the 20-day period following the expiration of the 15-day period and
the designated persons shall attempt in good faith to resolve the Dispute. If the designated
persons are unable to resolve the Dispute, then the Dispute shall be submitted to non-binding
mediation.
(3) Mediation.
(i) Within 15 days following the designated persons' meeting
described in paragraph 15(o)(2), above, either party may initiate non-binding mediation (the
"Mediation"), conducted by Judicial Arbitration & Mediation Services, Inc. ("JAMS") or other
agreed upon mediator. Either party may initiate the Mediation by written notice to the other
ply.
(ii) The mediator shall be a retired judge or other mediator,
selected by mutual agreement of the parties, and if they cannot agree within 15 days after the
Mediation notice, the mediator shall be selected through the procedures regularly followed by
JAMS. The Mediation shall be held: within 15 days after the Mediator is selected, or a longer
period as the parties and the mediator mutually decide.
(iii) If the Dispute is not fully resolved by mutual agreement of
the parties within 15 days after completion of the Mediation, then either party may institute legal
proceedings.
(iv) The parties shall bear equally the cost of the mediator's fees
and expenses,but each party shall pay its own attorneys' and expert witness fees and any other
associated costs.
(4) Preservation of Rights. Nothing in this Paragraph shall limit a
party's right to seek an injunction or restraining order from a court in circumstances where such
equitable relief is deemed necessary by a party to preserve such party's rights.
(p) Reference of California Law. Unless expressly stated to the contrary, all
references to statutes herein are to the California codes.
(q) Interpretation. The language in all parts of this Agreement shall in all
cases be construed simply, as a whole and in accordance with its fair meaning and not strictly for
or against any party. The parties hereto acknowledge and agree that this Agreement has been
prepared jointly by the parties and has been the subject of arm's length and careful negotiation
over a considerable period of time, that each party has independently reviewed this Agreement
with legal counsel, and that each party has the requisite experience and sophistication to
understand, interpret and agree to the particular language of the provisions hereof. Accordingly,
in the event of an ambiguity in or dispute regarding the interpretation of this Agreement, this
Agreement shall not be interpreted or construed against the party preparing it, and instead other
rules of interpretation and construction shall be utilized.
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IN WITNESS WHEREOF, the City and the Property Owner have each executed this
Agreement as of the date first written above.
ELAN HUNTINGTON BEACH, LLC, CITY OF HUNTINGTON BEACH,
a Delaware limited liability company a California municipal corporation
By: GS HUNTINGTON BEACH 274, LLC,
a Delaware limited liability company,
its sole member Mayor
By: GS HUNTINGTON BEACH 274
HOLDINGS, LLC, a Delaware
limited liability company, Cit Clerk
its managing member
A ROVED AS TO FORM:
By: ., --z
&W
Name: vj�it�-2
�aia
{City Attorney
a-- ?'f—
Title:
Cj
INITIA D AND APPROVED:
';7A�L
Direct r of Planning and Building
REVIE E ND APPROVED:
�l
Cipla ger
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ACKNOWLEDGMENT
State of California )
County of Orange )
On ���� 6 l I , � ,before me, P'Qol�-A 17: LL) l 5 ,
(iseq'�name of notary)
Notary Public,personally appeared �ef 6YC�r� ,
who proved to me on the basis of satisfactory evidence to be the person( whose name(s) isles
subscribed to the within instrument and acknowledged to me that h&sirettl7ey executed the same
in hisA�ekkeir authorized capacity(i.®s), and that by his4wr i signature(4) on the instrument
the person(s), or the entity upon behalf of which the personO acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
PEGGY A. LUIGS
WITNESS my hand and official seal. Commission* 1927658
Notary Public-California ZZ
Z Orange County
My ComM.Expires Apr 1,2015
Signature_ (Seal)
uuu
977967.03/OC
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ACKNOWLEDGMENT
State of California )
County of Orange )
Ony * A4 f , before me, ?. ,
//��__ (insert name of notary
Notary Public, personally appearedl.'(JNrt)/� >��i�l1'IArt� fhJt� �DA7U �c.t/A'4) ,
who proved to me on the basis of satisfactory evidence to be the perso q whose name i are-
subscribed to the within instrument and acknowledged to me that the xecuted the same
in their uthorized cap acity(D and that by eir signature sGon the instrument
the person>e or the entity upon behalf of which the persons acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
P. 1. ESPARZA
WITNESS my hand and official seal. Commission# 1857021
a «o Notary Public California a
i Orange County
My Comm,Egress Aug4,2013+
Signature P (Seal)
977967.03/OC
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EXHIBIT A
LEGAL, DESCRIPTION
PARCEL 1: (Affecting a Portion of APN: 157-471-05)
THE NORTHERLY 175 FEET OF THE WESTERLY 243 FEET OF THE NORT14NVEST QUARTER
OF TI•IE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER. OF SECTION 36,.
TOWNSHIP 5 SOUTH, RANGE l I WEST,
EXCEPTING THEREFROM THE WESTERLY 88 FEET AND THE NORTHERLY 40 FEET.
ALSO EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PARCEL:
BEGINNING AT THE INTERSECTION OF A LINE THAT IS PARALLEL WITH AND DISTANT
40 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES WITH THE NORTH LINE Or SAID
SOUTHWEST QUARTER, WITH A LINE THIS IS PARALLEL WITH AND DISTANT 88 FEET
EASTERLY, MEASURED AT RIGHT ANGLES WITH THE WEST LINE OF SAIL) SOUTHWEST
QUARTER: THENCE, EASTERLY ALONG SAID FIRST MENTIONED PARALLEL LINE A
DISTANCE OF 30.20` FEET TO THE BEGINNING OF A CURVE THAT IS CONCAVE
SOUTHEASTERLY, HAVING A RADIUS OF 30 FEET: THENCE SOUTHWESTERLY ALONG
SAID CURVE THROUGH A CENTRAL ANGLE OF 900 23' 09" AN ARC DISTANCE 47.33 FEET
TO A POINT ON SAID LAST MENTIONED PARALLEL LINE; THENCE NORTHERLY ALONG
SAID LAST MENTIONED PARALLEL LINE A DISTANCE OF 30.20 FEET TO THE POINT OF
BEGINNING.
PARCEL 2: (Affecting the remainder ofAPN:.157-471-05)
BEGINNING AT THE INTERSECTION OF A LINE THAT IS PARALLEL WITH AND DISTANT
175 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES FROM THE NORTH LINE OF THE
SOUTHWEST QUARTER WITH A LINE THAT IS PARALLEL WITH AND DISTANT 88 FEET
EASTERLY MEASURED AT RIGHT ANGLES FROM THE WEST LINE OF THE SOUTHWEST
QUARTER; THENCE EASTERLY ALONG SAID FIRST MENTIONED PARALLEL: LINE A
DISTANCE OF 155 FEET; THENCE, SOUTHWESTERLY IN A STRAIGHT LINE TO A POINT ON
SAID LAST MENTIONED PARALLEL LINE THAT IS 15 FEET SOUTHERLY OF THE POINT OF
BEGINNING;THENCE, NORTHERLY ALONG SAID LAST MENTIONED PARALLEL LINE A
DISTANCE OF 15 FEET TO THE POINT OF BEGINNING.
977967.03./OC EXHIBIT
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PARCEL 3: (Affecting APN: 157471-04)
THE NORTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF THE NORTHWEST ONE-
QUARTER OF THE SOUTHWEST ONE-QUARTER OF SECTION 36, TOWNSHIPS SOUTH,
RANGE I WEST AS SHOWN ON A MAP RECORDED IN BOOK 51 AT WAGE 7 OF
MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY
OF ORANGE.
EXCEPTING THEREFROM THE EASTERLY 160 FEET.
ALSO EXCEPTING THEREFROM THE NORTHERLY 175 FEET OF THE WESTERLY 243 FEET.
ALSO EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PROPERTY:
BEGINNING AT THE INTERSECTION OF A LINE THAT IS PARALLEL WITH AND DISTANT
175 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES FROM THE NORTH LINE OF SAID
SOUTHWEST QUARTER, WITH A LINE THAT IS PARALLEL WITH AND DISTANT 88 FEET
EASTERLY MEASURED AT RIGHT ANGLES FROM THE WEST LINE OF SAID SOUTHWEST
QUARTER; THENCE EASTERLY ALONG SAID FIRST MENTIONED PARALLEL . LINE A
DISTANCE OF.155 FEET; THENCE SOUTHWESTERLY :IN A STRAIGHT LINE TO A POINT OF
SAID LAST MENTIONED PARALLEL LINE THAT IS 15 FEET SOUTHERLY OF THE POINT OF
BEGINNING; THENCE NORTHERLY ALONG SAID LAST'MENTIONED PARALLEL LINE A
DISTANCE OF IS FEET TO THE POINT OF BEGINNING.
ALSO EXCEPTING THEREFROM THE WESTERLY 88 FEET THEREOF, AS GRANTED TO THE
STATE OF CALIFORNIA IN A DEED RECORDED SEPTEMBER 26, 1952 IN BOOK 2388 PAGE
330 OF OFFICIAL RECORDS.
ALSO EXCEPTING FROM A PORTION OF SAID LAND ONE-HALF OF ALL OIL:, GAS,
MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 500
FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY TO TAKE, MARKET,MINE, EXPLORE
OR DRILL FOR SAME, AS RESERVED IN THE DEED FROM JOHN H. REYNOLDS AND WIFE,
RECORDED MAY 9, 1961 IN BOOK, 5715 PAGE 609, OFFICIAL RECORDS.
END OF LEGAL DESCRIPTION
977967.03/OC
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EXHIBIT B
THE PROJECT
(APPROVED SITE PLAN)
977967.03/oc EXHIBIT B
371528-00002/3-28-13/rmj/pal -1'
Zoning Conformance
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SITE PLAN-FIRST FLOOR& GARAGE PI LEVEL
LEGAL DESCRIPTION PARKING KEY:
RETAIL STALLS
m RpmINA.Y IIT MIT v na—211 7naM G GUEST STALLS-RESIDENTIAL
Atulaa14.11
NOM
OWNER/APPLICANT.'
Ben Brosseau CoRsultIng,Inc. 0' 30r 60' 90'
At t.—1 real W" —A 7--VA—.A U ][Promo� 1"tt IN
kPM A17885 Von Kanna Avenue,Suite 450
11 It nmat I,I l..IIt A "."M_
arc =W-1 MA'
W —III Al' Irt SCALE. V'=30'
A 11— ;FWI.'—1
IrvIna,CA 92614 f f-2`4 mtIyo7;2al2 SITEPLAN
(949)705-000 Affn;Ben Brosseau A 1.2 v
Not LEVEL
N,ITEM DATE
BEACH BL VD. MIXED—USE DE VEL OPMEN T HUNTINGTON BEACH
I
6R—SUBMIWAL
, CA DATRE"EW o0.11.11
-:�4�j Ns,ExT1181T, K2.1
ARCHITECTS ORANGE om
144 NORTH ORANGEST.,ORANGE, CALIFORNIA 92866 (714)639-9860
This Document was electronically recorded by
..City of Huntington Beach.
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk-Recorder
RECORDING REQUESTED BY II IIIII II II IIIII III II III I II IIIIIIII III�o FEE
WHEN RECORDED MAIL TO:
201.3000412516 03:13pm 07/09/13
CITY OF HUNTINGTON BEACH 66 401 Al2 14
2000 Main Street 0.00 0.00 0.00 0.00 39.00 0.00 0.00 0.00
Huntington Beach, CA 92648
Attention: City Clerk
ALLEN MATKINS LECK GAMBLE
MALLORY &NATSIS LLP
1900 Main Street, 5th Floor
Irvine, California 92614-7321
Attention: R. Michael Joyce, Esq.
(Space Above For Recorder's Use)
AFFORDABLE HOUSING AGREEMENT RESTRICTIONSRENTAL
(DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS
FOR PROPERTY)
This Affordable Housing Agreement and Declaration of Conditions, Covenants and
Restrictions for Property(the "Declaration")is made as of �u �.y D/ , 2013,by
and between ELAN HUNTINGTON BEACH, LLC, a Delaware limited liability company(the
"Property Owner" or"Covenantor") and THE HOUSING AUTHORITY OF THE CITY OF
HUNTINGTON BEACH, a California municipal corporation (the "Housing Authority" or
"Covenantee").
RECITALS :
A. Property Owner is the owner of record of that certain real property located at
18502-18552 Beach Boulevard, Huntington Beach, California 92646 (the "Subject Property"), in
the City of Huntington Beach, County of Orange, State of California legally described in the
attached Exhibit A.
B. The Property Owner seeks to develop a project on the Property consisting of 27.4
dwelling units and associated uses. The project also includes approximately 8,500 square feet of
ground floor commercial uses, as more particularly set forth in the Development Plan
(collectively, the "Project") approved by Site Plan Review No. 12-001, all in accordance with the
General Plan, as it may be amended from time to time (the "General Plan'') adopted by the City
Council of the City(the "City Council") and the Zoning Code.
/-�v This ent is soWy for Ov official
G/� �'t3 T C of the city of Hunftton
so
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03 and
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C. The City imposed conditions of approval on the Project, in part that,the Property
Owner provide affordable housing. As part of the plan to provide affordable housing, the City
and the Property Owner entered into a Development Agreement which requires as a condition
that an Affordable Housing Agreement be executed requiring the Property Owner to provide
affordable rental units for a certain period of time. Specifically, the Property Owner is required
to/has agreed to provide 27 units within the Project available for rent to households earning
Moderate-Income (as that term is defined in the Development Agreement).for a period of 55
years as further defined herein. The execution and recordation of this Declaration is intended to
fully satisfy that condition.
NOW, THEREFORE, the parties hereto agree and covenant as follows:
1. Affordability Covenants. Covenantor agrees for itself and its successors and
assigns, and every successor to Covenantor's interest in the affordable unit, or any part thereof
that the Project approved by Site Plan Review 12-01, which consists of 274 units, 27 of which
shall be designated as affordable and shall beheld subject to this Declaration for fifty-five years
from the date final inspection has been approved by the City as follows:
(a) Qualified.Households. Covenantor agrees to make available; restrict
occupancy to, and to lease 27 units for the duration of the Affordability Period as defined herein.
These 27 units may sometimes be referred to as an "Affordable Unit" or, collectively, the
"Affordable Units." Each Affordable Unit shall be occupied by Moderate-Income Households as
that term is defined in the Development Agreement adjusted for the actual number of persons in
the Household that will reside in the Affordable Unit.
As used in this Declaration,.the term "Household" shall mean one or more persons,
whether or not related, living together in an Affordable Unit that.rent or lease any portion of the
Affordable Unit.
As used in this Declaration,'the term "Covenantor" shall mean the Property Owner, its
successors and assigns, and every successor to the Property Owner's,interest in the Project, or
any part thereof.
(b) Duration. The term of this agreement shall commence on the date that the.
Final Inspection for the fifteenth(15th) affordable unit is approved by the City and will continue
for 55 years thereafter("Affordability Period"). The covenant contained in this Section l shall
run with the Project and shall automatically terminate and be of no further force or effect upon
the expiration of the Affordability Period.
(c) Income Qualification. Prior to the lease of an Affordable Unit to any
Household, Covenantor shall submit to the Covenantee a completed income computation and
certification form, in such form as is generally used by City in administering its affordable
housing program as may be amended from time to time. Covenantor shall certify that, to the best
of its knowledge, each Household is a Moderate-Income Household that meets the eligibility
requirements established for the particular Affordable Unit occupied by such Household.
Covenantor shall obtain an income certification from each adult member of the Household and
shall certify that, to the best of Covenantor's knowledge, the income of the.Household is
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truthfully set forth in the income certification form. Furthermore the Covenantor shall, on
renewal of the annual lease for the particular Affordable Unit, again obtain income certification
from each adult member of the Household and submit to the Covenantee a recertification form
that shall certify, to the best of Covenantor's knowledge, each Household is a Moderate-Income
Household that meets the eligibility requirements established for the particular Affordable Unit
occupied by such Household. Covenantor shall verify the income certification of the Household
in one or more of the following methods:
(1) Obtain two (2)paycheck stubs from two (2)most recent pay
periods for each adult member of the Household.
(2) Obtain a copy of an income tax return certified to be true and
complete for the most recent tax year in which a return was filed, for each adult member of the
Household.
(3) Obtain an income verification certification:from the employer of
each adult member of the Household.
(4) Obtain an income verification certification from the Social
Security Administration and/or the California Department of Social Services if the Household
receives assistance from such.agencies.
(5) Obtain an alternate form of income verification reasonably
requested by Covenantee, if none of the above forms of verification is available to Covenanter.
If, at the time of the annual lease renewal of an Affordable Unit to an eligible Household,
the Covenantor learns that Household's income increases above the income level permitted for
that unit, the Household shall continue to be permitted to reside in such Affordable Unit, for no
more than one year. Notwithstanding the foregoing, Covenantor, at the City's discretion, shall
have the option, in its commercially reasonable discretion, to designate another dwelling unit as
an Affordable Unit during that one year period so that the Household may continue to.occupy a
unit in the Project, if the Household and the Covenantor so agree.
(d) Determination of Affordable Rent for the Affordable Units. The rent for
each Affordable.Unit(the "Affordable Rent") shall be adjusted annually by the following
formula established by California Health and Safety Code Section 50053 upon the publication of
the revised Area Median Income. This methodology sets the moderate income rent at 1/12 of
thirty percent(30%) of one-hundred ten percent(110%) of the Area Median Income adjusted for
family size appropriate to the unit. As used herein, for the purpose of calculating the Affordable
rent, "adjusted for family size appropriate to the unit" shall mean a household of one person in
the case of a studio Affordable Dwelling Unit, two persons in the case of a one-bedroom
Affordable Dwelling Unit, and a household of three persons in the case of a two-bedroom
Affordable Dwelling Unit. The income limits and Affordable Rents in effect as of the date of
this Agreement are attached hereto as Exhibit B and incorporated herein by this reference.
COVENANTOR UNDERSTANDS AND KNOWINGLY
AGREES THAT THE MAXIMUM RENTAL PAYMENTS TO
BE ESTABLISHED BY THIS FORMULA ARE NOT
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NECESSARILY EQUAL TO THE FAIR MARKET RENT FOR
THE AFFORDABLE UNITS, AND MAY BE ESTABLISHED
AT A LEVEL SUBSTANTIALLY BELOW THE FAIR
MARKET RENT LEVELS.
COVENANTOR HEREBY AGREES TO RESTRICT THE
AFFORDABLE UNITS ACCORDINGLY.
COVENANTOR'S INITIALS
In the event state law referenced herein is amended, the terms of this Agreement shall
automatically be amended to remain consistent with State law.
(e) Annual Report. Within sixty(60) days after the end of each calendar year
during the Affordability Period, Covenantor shall submit to Covenantee a report verifying
Covenantor's compliance with the provisions:of this Declaration("Annual Report"):
Covenantor's final Annual Report shall be submitted to Covenantee within sixty(60) days after
the end of the Affordability Period. Each Annual Report shall identify the location of the
Affordable Units for the applicable reporting period, the identity of each Household member
occupying an Affordable Unit during any portion of such period, the income and household size
of each such Household,the Affordable Rent for each of the Affordable Units, and the rent
actually charged pursuant to the lease or rental agreement. If Covenantee prescribes a particular
form to be utilized by Covenantor in preparing the Annual Report, Covenantor shall utilize said
form,provided that it complies substantially with the foregoing requirements.
2. Non-Discrimination Covenants. Covenantor covenants by and for itself;its
successors and assigns, and all persons claiming under or through them that there shall be no.
discrimination against or segregation of any person or group of persons on account of race, color,
religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital
status, handicap or disability, in the use, occupancy, tenure, or enjoyment of the Affordable Unit,
nor shall Covenantor itself or any person claiming under or through it, establish or permit any
such practice or practices of discrimination or segregation with reference to the selection,
location, number; use or occupancy of tenants, subtenants, or vendees in the Affordable Unit.
Covenantor and its successors and.assigns shall refrain from restricting the leasing of the
Affordable Unit on the basis of race, color, religion, sex, sexual orientation, creed, ancestry,
national or ethnic origin, age, family or marital status, handicap or disability, of any person. All
such leases shall contain or be subject to substantially the following nondiscrimination or
nonsegregation clause:
"The lessee herein covenants by and for himself or herself, his.or her heirs, executors;
administrators; and assigns, and all persons claiming under or through him or her, and this lease
is made and accepted upon and subject to the following conditions:.
"That there shall be no discrimination against or segregation of any
person or group of persons, on account of race, color, religion, sex,
sexual orientation, creed, ancestry, national or ethnic origin, age,
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family or marital status, handicap or disability in the leasing,
subleasing, transferring, use, occupancy, tenure, or enjoyment of
the premises herein leased nor shall the lessee himself or herself, or
any person claiming.under or through him or her,,establish or
permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use,
or occupancy of tenants,lessees, sublessees, subtenants, or vendees
in the premises herein leased."
3. Use Restrictions. During the Affordability Period, Covenantor shall be required
to take all reasonable steps necessary to ensure that each Household renting an Affordable Unit
has knowledge of all terms and conditions of this Declaration by including in each and every
lease and rental agreement a clause which incorporates this Declaration by reference and makes
this Declaration a part of an attachment to such lease or rental agreement. In addition, during the
Affordability Period,each lease or rental agreement for any of the Affordable Units shall contain
provisions that the Affordable Unit shall be occupied, used,and maintained as follows:
(a) The Affordable Unit shall be.used only for private dwelling purposes,with
appurtenant facilities, and for no other purposes;provided, however, that home occupation
businesses conducted in compliance with the City's Municipal Code and other City regulations
shall be considered an appropriate use for private dwelling purposes;
(b) Household Size. The maximum number of persons that may occupy an
Affordable Unit shall be based on unit size:
Unit Size Household Size
0 bedroom (studio) 2 persons
1 bedroom 3 persons
2 bedrooms 5 persons
(c) the Household shall not permit or suffer anything to be done or kept upon
the premises which will increase the rate of insurance on any building, or on the contents thereof,
and shall not impair the structural integrity thereof obstructor interfere with the rights of other
occupants, or annoy such occupants by unreasonable noises or otherwise, nor shall any
Household commit or permit any nuisance on the premises or fail to keep the premises free of
rubbish, clippings, and trash or commit.or suffer any illegal act to be:committed thereon;
(d) The Household shall not sublease any or all parts of the Affordable Unit
without prior written approval from Covenantor and Covenantee;
(e) The Household shall comply with all of the lawful requirements of all:
governmental authorities with respect to the premises;
(f) No person shall be permitted to occupy the premises for transient or hotel
purposes; and
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(g) The Household shall comply in all respects with this Declaration and any
failure by the Household to comply with the terms of this Declaration shall be a default under the
Household's lease or rental agreement.
4. Covenants for Benefit of Housing Authority. All covenants without regard to.
technical classification or designation shall be binding for the benefit of the Covenantee and such.
covenants shall run in favor of Covenantee for the entire period during which time such
covenants shall be in force and effect. The Covenantee, in the event of any breach of any such
covenants, shall have the right to exercise all the rights and remedies and to maintain any such
action at law or suits in equity or other proper legal proceedings to enforce and to cure such
breach to which it or any other beneficiaries of these covenants maybe entitled during the term
,specified for such covenants, except the covenants against discrimination which may be
enforced at law or in equity at any time in perpetuity.
5. Binding on Successors and Assigns. The covenants and agreements established in
this Declaration shall, without regard to technical classification and designation,be binding on
Covenantor and any successor to Covenantor's right, title, and interest in and to all or any portion
of the Project, for the benefit of and in favor of the Housing Authority of the City of Huntington
Beach. All the covenants contained in this Declaration shall remain in effect for the
Affordability Period, and shall automatically terminate and be of no further force or effect after
such time. Upon expiration of the Affordability Period, Covenantee agrees to cooperate with
Covenantor, at no cost to Covenantee in removing this Declaration of record from the Subject
Property.
6. Counterparts. This Agreement may be executed in a number of counterparts,each
of which shall be an original,but all of which shall constitute one and the same document.
7. Notices. All notices which are allowed or required to be given hereunder shall be,
in writing and (1) shall be deemed given and received when personally delivered or(2) shall be
sent by registered.or certified mail or overnight mail service, addressed to the applicable
designated person by one party to the other in writing, and shall be deemed received on the
second business day after such mailing.
If to the Housing Authority:
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: City Manager
Tel. No.: (714) 536-5575
Fax No.: (714) 536-5233
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If to the Property Owner:
Elan Huntington Beach, LLC
c/o Greystar Capital Partners
17885 Von Karman Avenue, Suite 450
Irvine, CA 92614
Attn: Jerry Brand
Tel. No.: (949) 242-8685
Fax No.: (949) 705-0009
Allen Matkins Leck Gamble Mallory&Natsis LLP
1900 Main Street, 5th Floor
Irvine, California 92614-7321
Attn: R. Michael Joyce, Esq.
Tel. No.: (949) 553-1313
Fax No.: (949) 553-8354
8. Applicable Law.
(a) If any provision of this Agreement or portion thereof, or the application of
any provision to any person or circumstances,shall to any extent be held invalid, inoperative, or
unenforceable, the remainder of this Agreement, or the application of such provision or portion
thereof to any other persons or circumstances, shall not be affected thereby and it shall not be
deeded that any such invalid provision affects the consideration for this Agreement;and each
provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
(b) This Agreement shall be construed in accordance with the laws of the
State of California and all applicable HUD Housing Quality Standards and City Codes.
[Signatures and Jurats to Follow]
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IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument
to be executed on their behalf by their respective officers hereunto duly authorized as of the date
set forth above.
ELAN HUNTINGTON BEACH, LLC, CITY OF HUNTINGTON BEACH,
a Delaware limited liability company a California municipal corporation
By: GS HUNTINGTON BEACH 274, LLC,
a Delaware limited liability company, QOL4� AMAAt �
its sole member Mayor
By: GS HUNTINGTON BEACH 274
HOLDINGS, LLC, a Delaware
limited liability company, it lerk
its managing member
A PROVED AS TO FORM:
By: _ _
Name: -X�°"''" "
City Attorney
Title:
INITIATE AND APPROVED:
Director f PlaiYniVg and Building
REVI ED ND APPROVED:
CityManalger
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ACKNOWLEDGMENT
State of California )
County of-brat ge )
On M a'4 �� 02 013 ,before me, I<C J 6U-4S ----
(insert name of notary)
n .
Notary Public, personally appeared av- �ou VL
who proved to me on the basis of satisfactory evi ence to be the persono:whose name) �
subscribed to the within instrument,and acknowledged to me thatrshe/texecuted the same
in&G /-thek authorized capacity(�e�, and that by his/her/their signature(,8'j on the instrument
the person, or the entity upon behalf of which the person acted, executed the instrument.
I certify under PENALTY.OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
K.C.ZONES
COMM. #1977193 Z
Notary Public•Califorrna
z Los Angeles County
Comm.Expires June 1,201ti
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ACKNOWLEDGMENT
State of California )
County of Orange )
On ,3 , before me, / . L. 6 'SioA 2A- ;
/y (insert name of notary).
Notary Public, personally appeared ( L�A / JA/ Ad6kd,A� 6x1A�1J 1
who proved to me on the basis of satisfactory evidence to be the persoro whose names ' are
subscribed to the within instrument and acknowledged.to me that 4ef'sh ie executed the same
in hi thei authorized capacit ies , and that by kiheK h�e�' signaturq0on the instrument
the person&or the entity upon behalf of which the persor soacted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
P. L. ESPARZA
WITNESS my hand and official seal. Commission# 11357 321; -„ Notary Public California
Orange County
M Comm.Ex ires Au 4,2013
Signature (Seal)
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EXHIBIT A
LEGAL DESCRIPTION
PARCEL 1: (Affecting a Portion of APN: 157-47)-05)
THE NORTHERLY 175 FEET OF THE WESTERLY 243 FEET OF THE NORTHWEST QUARTER
OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 36,
TOWNSHIP 5 SOUTH,RANGE I 1 WEST.
EXCEPTING THEREFROM T146 WESTERLY 88 FEET AND THE NORTHERLY 40 FEET.
ALSO EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PARCEL:
BEGINNING AT THE INTERSECTION OF A LINE THAT IS ,PARALLEL WITH AND DISTANT
40 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES WITH THE NORTH LINE OF SAID
SOUTHWEST QUARTER, WITH A LINE THIS IS PARALLEL: WITH AND DISTANT 88 FEET
EASTERLY, MEASURED AT RIGHT ANGLES WITH THE WEST LINE OF SAID SOUTHWEST
QUARTER: THENCE, EASTERLY ALONG SAID FIRST MENTIONED PARALLEL LINE A
DISTANCE OF 30.20 FEET TO THE BEGINNING OF A CURVE THAT IS CONCAVE
SOUTHEASTERLY, HAVING A RADIUS OF. 30 FEET: THENCE SOUTHWESTERLY ALONG
SAID CURVE THROUGH A CENTRAL ANGLE OF 900 23' 09" AN ARC DISTANCE 47.33 FEET .
TO A POINT ON SAID LAST MENTIONED PARALLEL LINE; THENCE NORTHERLY ALONG
SAID LAST MENTIONED PARALLEL. LINE A DISTANCE OF 30.20 FEET TO THE POINT OF
BEGINNING.
PARCEL 2: (Affecting the remainder of APN: 157-471.05)
BEGINNING AT THE INTERSECTION OF A LINE THAT IS PARALLEL, WITH AND DISTANT
175 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES FROM THE NORTH LINE OF THE
SOUTHWEST QUARTER WITH A LINE THAT IS PARALLEL WITH AND DISTANT 88 FEET
EASTERLY MEASURED AT RIGHT ANGLES FROM THE WEST LINE OF THE SOUTHWEST
QUARTER; THENCE EASTERLY ALONG SAID FIRST MENTIONED PARALLEL LINE A
DISTANCE OF 155 FEET; THENCE, SOUTHWESTERLY IN A STRAIGHT LINE TO A POINT ON
SAID LAST MENTIONED PARALLEL LINE THAT IS 15 FEET SOUTHERLY OF THE POINT OF
BEGINNING;THENCE, NORTHERLY ALONG SAID LAST MENTIONED PARALLEL LINE A
DISTANCE OF 15 FEET TO THE POINT OF BEGINNING.
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PARCEL 3: (Affecting APN: 157-471-04)
THE NORTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF THE NORTHWEST ONE-
QUARTER OF THE SOUTHWEST ONE-QUARTER OF SECTION 36, TOWNSHIP 5 SOUTH,
RANGE 11 WEST AS SHOWN ON A MAP RECORDED IN BOOK 51 AT PAGE 7 OF
MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY
OF ORANGE.
EXCEPTING THEREFROM THE EASTERLY 160 FEET.
ALSO EXCEPTING THEREFROM THE NORTHERLY 175 FEET OF THE WESTERLY 243 FEET.
ALSO EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PROPERTY:
BEGINNING AT THE INTERSECTION OF A LINE THAT IS PARALLEL WITH AND DISTANT
175 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES FROM THE NORTH LINE OF SAID
SOUTHWEST QUARTER, WITH A LINE THAT IS PARALLEL WITH AND DISTANT 88 FEET
EASTERLY MEASURED AT.RIGHT ANGLES FROM THE WEST LINE OF SAID SOUTHWEST
QUARTER; THENCE EASTERLY ALONG SAID FIRST MENTIONED PARALLEL LINE A
DISTANCE OF 155 FEET; THENCE SOUTHWESTERLY IN A STRAIGHT LINE TO A POINT OF
SAID LAST MENTIONED PARALLEL LINE THAT IS 15 FEET SOUTHERLY OF THE POINT OF
BEGINNING; THENCE NORTHERLY ALONG SAID LAST MENTIONED PARALLEL LINE A
DISTANCE OF 15 FEET TO THE POINT OF BEGINNING.
ALSO EXCEPTING THEREFROM THE WESTERLY 88 FEET:THEREOF, AS GRANTED TO THE
STATE OF CALIFORNIA IN A DEED RECORDED SEPTEMBER 26, 1952 IN BOOK 2388 PAGE
330 OF OFFICIAL RECORDS.
ALSO EXCEPTING FROM A PORTION OF SAID LAND ONE-HALF OF ALL OIL, GAS,
MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 500
FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY TO TAKE, MARKET,MINE, EXPLORE
OR DRILL FOR SAME, AS RESERVED IN THE DEED FROM JOHN H. REYNOLDS AND WIFE,
RECORDED MAY 9, 1961 IN BOOK 5715 PAGE 609. OFFICIAL RECORDS,
END OF LEGAL DESCRIPTION
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EXHIBIT
INCOME LIMITS AND,AFFORDABLE RENTS
977967.03/oc EXHIBIT B
3 7152 8-00002/3-2 8-1 3/rmj/pal -I-
2013 QUALIFYING INCOME AND RENT SCHEDULE
ELAN APARTMENT PROJECT
HUNTINGTON BEACH CALIFORNIA
I. 2013 Oranae County Income Information
Household Size HCD Median HUD Median
1 Person $81.050
2 Persons 69,750
3 Persons 78.500
4 Persons 87,200 87,2D0
5 Persons !;4,2D0
11. Household income Limits as Defined by the California Health&Safety Code
Moderate Income
(Section 50093)
1 Person s53,950 - $73,2W
2 Persons 61,850 - 83,7DD
3 Persons 69,350 - 94,2130
4 Persons 77.D5D - 1134,6W
5 Persons 83,250 - 113,0D0
Ill. California Health&Safety Code Section 50053 Affordable Housing Cost Calculations
Moderate Income
Studio 143drm 2-Bdrm
Benchmark Household Size 1 2 3
%of HCD Median Income 1109b 11 D% 110%
Household Income for Rent CalcUation $67,155 $76,725 $80.250
5 of In vome Allotted to Gross Rent 30% 3D% 20%
Allowable Gross Rent $1.679 s1,918 S2,11%
(Less)Utilki�es Allowance 28 39 47
Allowable Net Rent $1,651 $1.879 $2,112
Based on utilities published by(OCHA 1Of 112D12). I ncludes Gas:Cooking,HeatirV,Waster Renter. Electric:Basic.
Prepared by.Keyser Marston Assoaates,Inc.
File name:Etin_lrbc Rent Exh 3_11_13.lave Rent
Exhibit B
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Ord. No. 3982
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven; that the foregoing ordinance was read to said City Council at a Regular
meeting thereof held on July 1, 2013, and was again read to said City Council at a
Regular meeting thereof held on July 15, 2013, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Sullivan, Harper, Boardman, Carchio, Shaw, Katapodis
NOES: None
ABSENT: Hardy
ABSTAIN: None
I,Joan L.Flynn,CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council,do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on July 25,2013.
In accordance with the City Charter of said City
Joan L. F1 nn City Clerk C �Clerk and ex-officio erk
�r�ll 'Senior Derry City Clerk of the City Council of the City
of Huntington Beach, California