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HomeMy WebLinkAboutHarmony Cove, LLC - 2012-11-19%+�Te14e_ e�J .d',,� Council/Agency Meeting Held: Deferred/Continued to: *Ap rued ❑ Conditionally Approved ❑ Denied ° Ci Jerk' ignat Council Meeting Date: November 19, 2012 Department ID Number: ED 12-41 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Bob Hall, Deputy City Manager/Director of Economic Development SUBJECT: Approve and authorize execution of a License Agreement between the City and Harmony Cove, LLC for the non-exclusive use of City property for a project located at 4121 and 4151 Warner Avenue Statement of Issue: The City Council is requested to approve a License Agreement with Harmony Cove, LLC for a non-exclusive use of City property. Harmony Cove, a property/project located at 4121 and 4151 Warner Avenue is proposing to build 23 marina docks. To create the marina docks and provide ample boat turning radius, a non-exclusive License Agreement is proposed for the City waterway. Financial Impact: The City will receive $5,000 per year, with CPI increases every five (5) years. Recommended Action: Motion to: Approve and authorize the Mayor to execute the "License Agreement By and Between the City of Huntington Beach and Harmony Cove, LLC for the Non -Exclusive Use of City Property." Alternative Action(s): Do not approve the License Agreement and direct staff as appropriate. Analysis: The property located at 4121 and 4151 Warner Avenue has not been used since approximately 2005, when the (city -operated) Percy Dock closed. Since 2005, there have been three owners and their different plans discussed with the City. In December 2011, the previous owner, Bayview HB LLC submitted plans for a 23-boat slip marina, an eating and drinking establishment with outdoor dining and alcoholic beverage sales, and rental equipment.. In August 2012, Harmony Cove LLC purchased the property and is moving forward with the development as proposed. The Planning Commission approved the project on October 23, 2012. A Mitigated Negative Declaration, approved by the Planning Commission, included findings and mitigation measures to ensure the project is constructed with minimum environmental impact. As a requirement for the marina project to be viable, Harmony Cove LLC needs to have adequate maneuvering area for navigation of the boats in the channel. A proposed Non - Exclusive License Agreement is recommended to accomplish this which includes: Item 10. - 1 HB -236- REQUEST FOR COUNCIL ACTION MEETING DATE: 11/19/2012 DEPARTMENT ID NUMBER: ED 12-41 Term: Thirty years, with three (3) ten-year options. Two year termination notice after the initial term. Rent: $5,000 per year, with CPI increases every five (5) years. If not operational within five (5) years from approval, a fee of $5,000 per year is required. Improvements: Harmony Cove will be responsible for maintaining the "licensed area" including dredging. The City will be responsible for dredging the "city -owned" area, if required, which will be paid through rent credit. Use: Eight docks will be provided to the general public at all times, in addition to a transient dock. Land Use: To effectuate the previous Settlement Agreement with Tierrasanta from 2002, the City will process the application for the land use to be changed to RM — medium density residential. The License Agreement provides for a non-exclusive use of 25 feet of waterway, located near the center of the channel area. The Licensed waterway area will continue to be accessible by the public. In addition, the License Agreement requires the Licensee to dredge and maintain the 25-foot area, at Licensee expense. No marina docks or revenue generating uses will be in the licensed area. Due to the non -exclusivity, dredging and maintenance of the waterway area, the rent potential was limited; therefore, the $5,000 plus CPI increases was deemed appropriate. The EDC considered the potential License Agreement with Harmony Cove on October 8 and November 13, 2012. Staff has met with the Huntington Harbour Yacht Club regarding the License Agreement and the Yacht Club is not opposed to the License Agreement. The License Agreement will only be valid, if the California Coastal Commission and all other regulatory agencies approve the proposed marina. Environmental Status: The Harmony Cove project, including a Conditional Use Permit, Zoning Map Amendment, Coastal Development Permit, and Tentative Parcel Map is being processed by the Planning and Building Department, including a Mitigated Negative Declaration No. 2012-004. Strategic Plan Goal: Enhance economic development Attachment(s): 1. I"License Agreement By and Between the City of Huntington Beach and Harmony Cove, LLC for the Non -Exclusive Use of City Property" HB -237- Item 10. - 2 ATTACHMENT #1 JL- Item 10. - 3 HB -238- LICENSE AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND HARMONY COVE, LLC FOR THE NON-EXCLUSIVE USE OF CITY PROPERTY This License Agreement is made and entered into by and between the CITY of HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY," and HARMONY COVE LLC, a California limited liability company, hereinafter referred to as "LICENSEE." RECITALS The CITY owns and operates the property where the Huntington Beach Yacht Club is located in Huntington Harbor, adjacent to the Warner Avenue Bridge, commonly known and referred to as 3821 Warner Avenue, Huntington Beach, California, and depicted in Exhibit 1. The CITY owns and operates the property where Fire Station-7 Warner is located in Huntington Harbor, adjacent to the Warner Avenue Bridge, commonly known and referred to as 3831 Warner Avenue, Huntington Beach, California, and depicted on Exhibit 1. The CITY owns, manages and regulates the waterway in Huntington Harbor abutting the CITY property noted above on the west side of the channel, the Warner Avenue Bridge on the south side of the channel and the real property known as Harmony Cove on the east side of the channel, and depicted on Exhibit 1. LICENSEE owns and operates the real property, both above and below the water, adjacent to the Warner Avenue Bridge to the south and the CITY -owned waterway to the S D M30241.0037\426112.2 10/21 /2012 12-3536/86675 east, commonly known and referred to as Harmony Cove, 4121 and 4151 Warner, Huntington Beach, California, and depicted on Exhibit 1. LICENSEE desires and plans to make initial improvements on its property, both on its land and in the water, including, but not limited to, an office building, restaurant facilities, other retail improvements and marina dock, with public and private docks, and LICENSEE may also undertake residential improvements. Due to the property line and the desire of LICENSEE to construct MARINA docks up to the property line, LICENSEE will need to use the CITY -owned waterway adjacent to its property to allow and provide for adequate ingress and egress to the public and private Marina docks. In order to allow for the development of LICENSEE's property, including the construction of the Marina docks, LICENSEE seeks permission to use the CITY —owned waterway for access to the proposed public and private Marina docks. WHEREAS, LICENSEE desires CITY permission to use CITY -owned property, described as follows: CITY -owned waterway located adjacent to the Huntington Beach Yacht Club and Fire/Lifeguard Station (the "Property") in the City of Huntington Beach for the purpose of providing ingress, egress and turnaround area for public and private Marina docks proposed by LICENSEE; and CITY desires to allow such use as necessary for the purposes stated above in connection with Harmony Cove; and The proposed use of the Property is permitted per Section 230.90 of the Huntington Beach Zoning and Subdivision Ordinance, MM30241.0037\426112.2 10/21/2012 12-3536/86675 2 NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged, the parties covenant and agree as follows: 1. PERMISSION. Permission is hereby given, and a non-exclusive license is hereby granted, to LICENSEE and tenants and other occupants of LICENSEE'S property and their respective invitees to enter upon and use the property as depicted in the map attached hereto as Exhibit 1 (hereinafter referred to as the "Licensed Property") for the purpose described above. The Licensed Property shall be used solely for access and turnaround. All Harbor federal and state rules shall be observed for all boating operations. No structures, including docks, wharfs, moorings or side slips may be constructed within the Licensed Property for use by the public or to gain access to the Fire Station/Lifeguard boats or the Yacht Club Marina. The CITY shall maintain its right to expand its Marina area but such expansion shall not interfere with the access and turnaround rights granted herein, and in no event shall the CITY undertake or permit any modification to the Licensed Property or any other portion of the Property that would interfere with the use of the license granted herein unless mutually agreed upon. 2. TERM. The term of this License shall expire thirty (30) years after the first to occur of (a) the completion of construction of a marina on LICENSEE'S property, or (b) the date which is five (5) years after the full execution of this Agreement. LICENSEE shall have the right to extend the term of this Agreement for three (3), additional ten (10) year terms by delivery of written notice of such extension to the CITY prior to the then -scheduled expiration date. During the initial term, the Agreement may only be terminated for cause (i.e., LICENSEE's breach of this Agreement and LICENSEE's failure to cure such breach within the cure period set forth in Section 12). SDM30241.0037\426112.2 10/21 /2012 12-3536/86675 3 During any of the extension terms, the Agreement may be terminated by CITY for cause as described above or without cause upon at least a two-(2) year written notice. 3. RENT. In consideration of the non-exclusive use of the CITY -owned waterway, LICENSEE agrees to pay the CITY an amount of $5,000 per year. Rent shall be increased every five (5) years by the aggregate rate CPI for Los Angeles / Riverside / Anaheim Area. License payments shall be made quarterly. If LICENSEE does not complete construction of its Marina within the first five years after full execution of this Agreement, Licensee shall make a minimum license payment of Five Thousand ($5,000) Dollars per year to the CITY. LICENSEE shall submit an annual payment schedule to CITY. At CITY's consent and determination, if LICENSEE continues use of the Licensed Property after the termination or expiration of the Agreement, LICENSEE shall pay CITY, as compensation, the sum of Fifty Dollars ($50) per day. Such compensation shall be paid in advance of the 1 st of each month, on a month -to -month basis, and becomes delinquent on the I Oth. Such compensation, if any, shall be paid to CITY at P.O. Box 711, Huntington Beach, CA 92648-0711. 4. BOOKS AND RECORDS. LICENSEE shall keep true and accurate books and records showing all of its Marina docks business in separate records of account for the Marina docks in a manner acceptable to CITY, and CITY and/or its designated representatives shall have the right, at all reasonable times following reasonable advance notice, to inspect such books and records to verify that all payments due to CITY have been properly and accurately calculated. LICENSEE agrees that all such books and SDH130241.0037\426112.2 10/21 /2012 1.2-3536/86675 4 records shall be made available at LICENSEE's place of business to CITY and/or its designated representatives within thirty (30) days of receiving a written request. 5. IMPROVEMENTS. LICENSEE, in its sole discretion, may choose to build a Marina office on the land portion of its property, subject to prior approval by the CITY's Planning and Building Department. LICENSEE shall be responsible for all costs, approval and permits associated with a Marina office. LICENSEE, in its sole discretion, may choose to build Marina docks on the water portion of its property, subject to prior approval by the CITY's Planning and Building Department, the CITY's Public Works Department, and all other applicable state and federal agencies including, but not limited to, the State Lands Commission, Department of Boating and Waterways, U.S. Army Corp. of Engineers and the California Coastal Commission (as applicable); if necessary. If required permits and approvals are not obtained within seven (7) years after full execution of this Agreement, the Agreement shall be terminated automatically. LICENSEE shall be responsible for all costs associated with the development of the Marina docks on its property, including, but not limited to, plans and specifications for any proposed construction, all construction costs and any and all planning, environmental, design, permit, construction, dredging and maintenance fees. The Marina docks, if approved, shall be built according to the plans and specifications submitted to and approved by the CITY and all other reviewing and approving entities. Any changes or alteration to any plans and specifications must be in writing and submitted to, reviewed and approved by the CITY and all other approving entities before any changes are made. SDH\30241.0037\426112.2 10/21 /2012 12-3536/86675 If approved by all permitting agencies, LICENSEE may build and operate up to twenty-three (23) Marina docks. LICENSEE agrees to make a minimum of eight (8) marina docks available to the general public at the same rental rate as all other docks. Upon a completed application by the LICENSEE, the CITY will review and process, as necessary and required, amendments to the CITY's General Plan, Zoning and Subdivision Ordinance, and Local Coastal Program, in good faith, to cause all portions of LICENSEE's Property, commonly known and referred to as 3101 and 3901 Warner Avenue, Huntington Beach, California, to be zoned RM (medium density residential) including, without limitation, all approvals required to be issued by the California Coastal Commission at LICENSEE's sole and exclusive expense During the process set forth in the paragraph above, within thirty (30) days of identifying a need of or from LICENSEE, the CITY shall provide written notice to LICENSEE to provide the information, documentation, reports or other items to address the issue or need. The CITY's obligations under this Section 5 shall survive the expiration or termination of this Agreement. 6. INDEMNIFICATION DEFENSE HOLD HARMLESS. LICENSEE hereby agrees to protect, defend, indemnify and hold and save harmless CITY, its officers, and employees against any and all liability, claims, judgments, costs and demands, however caused, including those resulting from death or injury to LICENSEE's employees and damage to LICENSEE's property, arising directly or indirectly out of the use of the Licensed Property by LICENSEE, including those arising from the passive concurrent negligence of CITY, but save and except those which arise out of the active concurrent negligence, sole negligence, or the willful misconduct of CITY. S DH\30241.0037i426112.2 10/21 /2012 12-3536/86675 6 7. INSURANCE. LICENSEE shall carry at all times incident hereto, on all activities to be performed in the Licensed Property as contemplated herein, general liability insurance, including coverage for bodily injury, and property damage. All insurance shall be underwritten by insurance companies in forms satisfactory to CITY. Said insurance shall name the CITY, its officers, agents and employees and all public agencies as determined by the CITY as Additional Insureds. LICENSEE shall subscribe for and maintain said insurance policies in full force and effect during the life of this Agreement, in an amount of not less than One Million Dollars ($1,000,000) combined single limit coverage. If coverage is provided under a form which includes a designated general aggregate limit, such limit shall be not less than One Million Dollars ($1,000,000). In the event of aggregate coverage, LICENSEE shall immediately notify CITY of any known depletion of limits. LICENSEE shall require its insurer to waive its subrogation rights against CITY and agrees to provide certificates evidencing the same. 8. CERTIFICATES OF INSURANCE,• ADDITIONAL INSURED ENDORSEMENTS Prior to the use of the Licensed Property pursuant to this License, LICENSEE shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled without thirty (30) days prior written notice to CITY. LICENSEE shall maintain the following insurance coverages in force until this Agreement is terminated. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by LICENSEE under this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of all SDH\30241.0037\426112.2 10/21 /2012 12-3536/86675 7 said policies of insurance. LICENSEE shall pay, in a prompt and timely manner, the premiums of all insurance hereinabove required. A separate copy of the additional insured endorsement to each of LICENSEE's insurance policies, naming the CITY, its officers and employees as Additional Insureds shall be provided to the CITY counsel for approval prior to the use of the Licensed Property pursuant to this License. 9. RELEASE. LICENSEE hereby releases and forever discharges CITY of and from any and all claims, demands, actions or causes of action whatsoever which LICENSEE may have, or may hereafter have, against the CITY specifically arising out of the matter of the entry of LICENSEE onto the Licensed Property. This is a complete and final release and shall be binding upon LICENSEE and the heirs, executors, administrators, successors and assigns of LICENSEE's use of the Licensed Property. LICENSEE hereby expressly waives any rights under or benefit of any law of any jurisdiction whatsoever providing to the contrary. Neither the acceptance of this release nor any payment made hereunder shall constitute any admission of any liability of CITY. 10. WASTE. LICENSEE shall not alter, damage or commit any kind of waste upon the Licensed Property or any improvement, equipment or personal property thereon and shall not interfere in any manner with the operations or activities of CITY. LICENSEE shall make no change in the use of the Licensed Property nor shall the design of the Licensed Property be changed other than as authorized herein without prior written consent of CITY. LICENSEE shall not cause any workmen's or materialmen's liens to be placed upon the Property and agrees to indemnify and hold CITY harmless against any such liens including but not limited to the payment of attorney's fees. 11. MAINTENANCE. LICENSEE agrees to care for and maintain the Licensed Property in good and satisfactory condition as acceptable to the CITY S DH\30241.00371426112.2 10/21 /2012 12-3536/86675 8 commencing on the completion of construction of LICENSEE's marina. Maintenance shall include keeping the leased waterway in a usable condition (dredged) so that it is navigable. All costs incurred by LICENSEE for dredging the City owned non -Licensed Property shall be deducted from fees payable to the CITY hereunder if deemed necessary or if City requests. LICENSEE shall keep the Licensed Property area reasonably clean and free of debris during its use thereof, and shall restore the Licensed Property, as much as reasonable practicable, to its former condition. In the event LICENSEE does not maintain the Licensed Property in a satisfactory manner, LICENSEE authorizes CITY to perform such maintenance on LICENSEE's behalf if LICENSEE fails to perform the applicable maintenance within thirty (30) days after receipt of written notice from the City. All costs incurred performing said maintenance shall be assessed to and billed directly to the LICENSEE. LICENSEE agrees to pay such costs within thirty (30) days of billing. In the event any damage is caused to the Licensed Property, as a result of the use authorized hereunder, LICENSEE agrees to repair same at its own expense. 12. NOTICE OF DEFAULT AND CURE PERIOD. If an event of default occurs, written notice of the event shall be given to the party in default, specifying the nature of the default. Failure or delay in giving notice shall not constitute a waiver of any default, nor shall it change the time of default, and shall not operate or constitute a waiver of any rights or remedies of the injured party. The injured party shall have no right to exercise any remedy prior to delivering the default notice as provided herein. Delays by either party in asserting any of its rights and remedies shall not deprive either party of its SDM30241.0037\426112.2 10/21 /2012 12-3536/86675 9 rights to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. The injured party shall have no right to exercise a right or remedy unless the event of default continues uncured for a period of thirty (30) days after delivery of the default notice, or, where the default is of a nature which cannot reasonably be cured within the thirty -day period, the defaulting party fails to correct such cure with all due diligence or fails to proceed diligently to complete the same within such time as may reasonably be necessary to cure same. In no event shall the injured party be prevented from exercising its rights or remedies for more than ninety (90) days following delivery of the default notice. An event of default for failure to pay a sum of money is a default which can be cured within thirty (30) days. If the default is not cured within the time periods specified, the non -defaulting party may, at its option, pursue such other rights and remedies as it may have. Notwithstanding anything to the contrary in the foregoing, if the alleged default consists of LICENSEE's failure to dredge the Licensed Property, LICENSEE shall not be deemed in default hereunder, and the CITY shall have no right to exercise any remedies hereunder, so long as LICENSEE has submitted an application for dredging within thirty (30) days after receipt of written notice from the CITY and thereafter diligently pursues the issuance of such permit and undertakes such dredging promptly following the issuance of such permit. Upon the occurrence of an event of default and the expiration of the applicable cure period, the injured party shall have all rights and remedies against the defaulting party as may be available at law or in equity to cure, correct or remedy any default, to obtain specific performance, and recover damages for any default, or to obtain any other SDH\30241.0037\426112.2 10/21 /2012 12-3536/86675 1.0 remedy consistent with the purpose of this Agreement. Such rights and remedies are cumulative, and the exercise of one or more of such rights or remedies shall not preclude the exercise of any other right or remedy. 13. [INTENTIONALLY DELETED] ebb 14. INDEPENDENT CONTRACTOR. LICENSEE agrees that all work done or undertaken by it on the Licensed Property shall be for its sole account and not as an agent, servant or contractor for CITY. 15. HAZARDOUS SUBSTANCE. LICENSEE represents and warrants that its use of the Licensed Property herein will not generate any hazardous substance, and it will not store or dispose on the Licensed Property nor transport to or over the Licensed Property any hazardous substance. LICENSEE further agrees to clean-up and remediate any hazardous substance on the Licensed Property resulting from the breach by LICENSEE of the preceding representation and warranty, and hold CITY harmless from and indemnify CITY against any release of any such hazardous substance and any damage, loss, or expense or liability resulting from such release including all attorney's fees, costs and penalties incurred as a result thereof except any release caused by the negligence of CITY, its employees or agents. "Hazardous substance" shall be interpreted broadly to mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance, or other similar term by any federal, state or local environmental law, regulation or rule presently in effect or promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be limited to, any SDH\30241.0037\426112.2 10/21/2012 12-3536/86675 11 substance which after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. 16. NO ASSIGNMENT. LICSENSEE agrees that the permission herein extended shall be personal to it and to tenants and occupants of Licensee's Property and their respective invitees and that it shall not assign or permit any other third party to avail itself of any of the privileges granted hereunder, without the express written permission of CITY. Notwithstanding anything to the contrary in the foregoing, LICENSEE shall have the right to assign this Agreement without the CITYs consent to (a) any purchaser of LICENSEE's property or portion thereof, and/or (b) to any lender who provides financing for LICENSEE's property or any portion thereof. 17. NO TITLE INTEREST. No title interest of any kind is hereby given and LICENSEE shall never assert any claim or title to the Property. 18. NOTICES. All notices given hereunder shall be effective when personally delivered or if mailed, upon delivery or attempted delivery (if delivery is refused) if such notice is deposited in the U.S. Mail, postage prepaid, and certified with return receipt requested and addressed to LICENSEE or to CITY at the respective addresses shown below: CITY: City of Huntington Beach Director of Economic Development 2000 Main Street Huntington Beach, CA 92648 LICENSEE: Harmony Cove LLC 1 Hammond Road Ladera Ranch, CA 92694 19. NO DISCRIMINATION. LICENSEE agrees that in performance of this Agreement and in the use of the Licensed Property area authorized hereunder, it will not engage in, nor permit its officers, agents or employees to engage in, any discrimination or SDH\30241.0037\426112.2 10121/2012 12-3536/86675 12 discriminatory practices against any person based on race, religion, creed, color, natural origin, ancestry, physical handicap, medical condition, marital status or gender. 20. ATTORNEY'S FEES. In the event suit is brought by either party to enforce the terms and provisions of this Agreement or to secure the performance hereof; each party shall bear its own attorney's fees. The prevailing party shall not be entitled to recover its attorney's fees. 21. ENTIRETY. This Agreement contains the entire agreement between the parties. This Agreement shall be modified only by a subsequent written amendment, as may be mutually agreed upon by the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers,onD l,L ��� ��, 2Q1�t. HARMONY COVE LLC, a California CITY OF HUNTINGTON BEACH, limited liability company a municipal corporation of the State of California By. - print name Mayor ITS: G /=G APPROVED AS TO FORM: Exhibits: Ci orney 1 City Owned Property INIT A PPROVED: Licensee's Property Licensed Property Director of Economic Development SDH\30241.00371426112.2 10/21/2012 12-3536/86675 13 �f INLETS AND k DRAIN PIPES f T 'RLY LINE OF TRACT NO. 5775 f E � IN BOOK`210,-- PG'S 1.1._,.&-l2 _»STORM ^WATER .... PLANTER BOX 1 STORM WATER # t PLANTER BOX 2 # TRASH" EN:LOSURE �� o EXISTIN NEW F.H`, 0 3 M. ' o N19 00'00"W 383 40' , .✓.';-3 3 .Z� .,.,.. c^x-f r".'"".""Y-�^x^_ .._...... .- _.. ,..,..._, ,,, ,. _ _,_.. '.. :Y..s ,...".,...,,,., ..w.. ..., _- F.-.� _. "... ...,_ `Y"1 ,'e:':f5 ti. t9 } S q GREASE x8'�, �50 GALLONTO R ".4' FFtt JJ R+ 7 G ,F. ,. ,... Ex/s » TiN NS, 2 FT OFI CEt •: N �' pEN Re s:>w 0 CU » " r ;•'. ,' TRANSFORMER GUTTeR TO SEwe LNG INSET f, t w R }' ��EMAIN CrO. 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If SUBROGATION IS V ATVED, subject to the terms and conditions of the policy, certain policies may require an endorserTlent. A statement on this certificate does rmt confer rights to the certificate holder in lieu of such endorsements . PRODUCER CONTACT Na"E_ Mike Minnick Minnick irisurariee Services, ln. tt�lraNl _ -- [800)970-4763 Not: (71a)saA-A332 '18371-8 Lemon Drive Arc Iw. E�It;_ 1Tl ___.._._...-...�_cnrc, p "ke@jgins.com Ytrl3a Linda, CA92886 thISLRER{Sj Ai�t�ORD3NG COVERAGE _ NAIc Q License.#: 0t?80950 -. - INSLW&RA ......... Geneva[ Star HISCJREIJ II+tSUS,�$: Theory R Properties LLC & HarnT,ony Cave LLC INSURFRC: _... -------- _ ._. 4121 Warner Avenue INSURERD: Huntington Beach, CA 92649 irJSLFZRE:- .................... IIVSLBIt3t F .elamlam nnaa rrrarrraresr K111VQR=P- nnnnr,4nln RFVISInN NIlMRPR* 1 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THEINSURIEM NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE h4AY Bt; issu D OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED -HEREIN IS SUBJECT TO ALI. THE TERMS, EXCLUSIONS AND CONOITIONB OF SUCH POLICIES. LIMITS SHOWr3 MAY HAVE BEEN REDUCED BY PAID CLAIMS. TVPE0FMI.RANCE ACStiLINSR1SUBt#L WVD POi_1CVNIJRffiETi APQL AtR1[CYEiF POLICYESSP.LIMITS A GENERALLIABILIrY Y N : IMA246143 OW17/2012 08117}2A13 FACT OCGURRI:W.'V g 2,DDD DOD )( E��t✓hSc7Ct, I.6IF31 AI..i.I�J�3i.ITY I tFMiY=ar+ccwtCnct+-- _t_._.__�_ 100,000 cy.nJrnsrrnnlx � t;ci'JJF� FdF:J.>eXF Aar., xne awns l b _5,00D_ _.. � Pt"RiGNAE. k MUIt4.lIJl:`: T 2 DDD D� G E N LT-T AGGREGATE 3 2,000,0t1! lLN'LAGGREC0E1-Jhi1 AI=T'i_IT-!GII_E? v 1'RDDLJL?3-COMPOPAGG g Excluded — PRO- rM,:v ti) 1171.1:. 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Additional Remarks Sched19e, Ifniore space Is reglAredl City Of Huntington Beach and Their Agents, Officers and Employees-, As Additional Insured CERTIFICATE HOLDER CANCELLATION City of Huntington Beach and their Agents, Officers and Employee$ City flail 2000 Main Street. Huntington Beach, CA 92640 ACORD 25 (2010105) SHOULD ANYOF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EMRATION RATE THEREOF, F40MtE WILL BE DELIVERED fit ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATI VE MAHI (D 1988-2010 ACORD CQRPORA-nON. All rights reserved. The ACORD name and lygo are registered marks of ACORD Ptinted by MAIN on October 25. 2012 at 12:39PM xB -253- Item 10. - 18 lTORLDWIDF FACILITIES, INC. 725 SOLrTH FIGLIEROA STREET I SUITE 1900 / LOS ANGELES, CA 90017 TEL (213) 236-4600 FAX (213) 244-9644 CA LrC. 4 0414108 8/22112 BINDER # 78638.07 Page 1 of INSURED. Theory R Properties LLC & Harmony Cove LLC AGENT- Minnick Insurance Services, Inc. Daichendt, Joe 18371-B Lemon Drive 1 Hammond Rd Yorba Linda, CA 92886 Ladera Ranch, CA 92694 Binder is effective from 12:01 AM 08/17/12 to 12:01 AM 11117/12 unless cancelled or replaced by the Policy. Policy is effective from 12:01 AM 08/17/12 to 12:01 AM 08/17113, This is to certify that, in accordance with your instructions, we have procured insurance as hereinafter specified: COMPANY. General Star Indemnity Co POLICY NO: IMA246143 COVERAGE: Commercial General Liability - Occurrence Form (CGO001 12107) LIMITS: $2,000,000. General Aggregate $Excluded Products/Completed Operations Aggregate $2,000,000. Personal & Advertising Injury $2,000,000_ Each Occurrence $ 100,000. Damage to Premises Rented to You $ 5,000, Medical Expense DEDUCTIBLE: $0.00 Per Claim, Including Loss Adjustment Expense TERMS: DESCRIPTION OF OPERATIONS: Vacant Land COVERED LOCATION(S): Sec 30 T 51311 Por Ne 1/4, Parcel ID: 17830101 - Physical address: 4121 Warner Ave, Huntington Beach, CA 92649 Policy Term: Annual No Flat Cancellations. All Fees Fully Earned. FORMS ATTACHED: Interline:+ AS TO [X] GSI-04-1600 Service of Suit { Oq [XI GSI-04-1604 Minimum Earned Premium [XI GSI-04-1618 Common Policy Conditions c rH .`` [Xj GSi-04-CPOOD Common Policy Declarations ,"` [XI GSI-04-1620 Policy Cover Sheet [X] GSI-04-1626 Disclosure of Premium & Estimated Premium for Certified Acts of Terrorism [XJ CA D-2 California Notice (CA Risks Only) [X] GSI-04-CGLDEC General Liability Declarations [XI CG0001 Commercial General Liability Coverage Form [XI GSI-04-C600 GL Combined Provisions Endorsement - Includes Deductible Liability, Premium Basis Designation, Premium Audit, No Duty or Responsibility to Send Notice When We Do Not Renew, Amendment of Insured Contract Definition, Amendment of Personal & Advertising Injury Definition [X( CG2170 Cap on Losses from Certified Acts of Terrorism (If TRIA Accepted) [Xj GSI-04-0512 Classification Limitation [X] CG2139 Contractual Liability Limitation [XI CG2144 Designated Premises Limitation This Binder Does Not Include Any Additional Insureds Unless Specifically Noted Herein. Additional Insureds Are Subject To An Additional Charge & Are Fully Earned. Item 10. - 19 HB -254- WORLDWIDE FACILITIESr INC. FAx (213) 244 9544 725 SOUTH FIGUEROA STREET! SUITE 1900 1 LOS ANGFLFS, CA 90017 CA LIC, 4 0414108 6122112 BINDER # 78638.07 Page 2 of 3 Terms cant.. Please Note, This Policy Will Be Subject To Inspection And/Or Audit.. This May Result In A Change Of Premium, Form Or Terms. OFFER OF OPTIONAL COVERAGE: THE PREMIUM FOR TERRORISM COVERAGE PER THE TERRORISM RISK INSURANCE ACT (TRIA) IS: $150 FLAT, FULLY EARNED, PLUS SURPLUS I-INES TAX AND STAMPING FEE. THIS IS IN ADDITION TO THE PREMIUM QUOTED BELOW. AS A REQUIREMENT OF BINDING, INSURED MUST EITHER ACCEPT OR REJECT THE TERRORISM COVERAGE BY MARKING THE APPROPRIATE BOX AND SIGNING THE ATTACHED FORM IC0920. THE COMPLETED FORM MUST ACCOMPANY YOUR REQUEST TO BIND. TRIA was rejected by the Insured Subject to, -Lot secured against unauthorized entry (fence, signs etc.) -No development / construction to tape place during the term of our policy EXCLUSIONS: [X] IL0021 Nuclear Energy Liability Exclusion [X] GSI-04-C600 GL Combined Provisions Endorsement - Excludes Total Pollution, Employer's Liability -Employee & Temporary Worker, Recording & Distribution of Material or Information in Violation of Law, Infringement or Dilution of Intellectual Property Rights or Misappropriation, Use or Disclosure of Trade Secrets; Breach of Contract, Asbestos, Employment -Related Practices, Lead, Silica, Fungus(es) & Spore(s), Cross -Suits, Bisphenol A [X] GSI-04-C820 Punitive or Exemplary Damages (if Applicable to Risk State) [X] CG2176 Exclusion of Punitive Damages Related to Disposition of TRIA (if TRIA Accepted) [X] CG2173 Exclusion of Certified Acts of Terrorism (if TRIA Rejected) 1X1 CG2104 Exclusion - Products / Completed Operations [X] GSI-04-C809 Exclusion - Designated Operations and Activities - All construction operations /Activities and all Real Estate Development [X] CG2134 Designated Mork - All construction operations /Activities and all Real Estate Development RATE: 5.00 per 2 acres ($1005.MP) PREMIUM: $ 1,005.00 Minimum and Deposit 225.00 Policy Fee - Fully retained at inception 125.00 Inspection Fee - Fully retained at inception 33.90 State Tax 2,83 CA Stamp Fee $ 1,391.73 Total No flat cancellations. 25% minimum retained premium in the event of cancellation. Fees are 100% Fully Earned. REMARKS: In order to comply with Surplus Line Regulations for policies with multi -state exposures, the retailer must provide WWFI with the percentage of the insured's business operations and/or employees that are located in each state outside the home state, (as defined by NRRA), prior to binding the policy. The surplus line taxes and fees are subject to change if it is determined that the premium allocations between or among states differ from any allocations that may or may not be xB -255- Item 10. - 20 WORLDWIDE FACILITIES, INC. FAX (213)2449644 725 SOUTH FIGUEROA STREET] SUITE IWO / LOS ANGELES, CA 9DD17 CA LIC. 9 0414108 8/22112 BINDER # 78638.07 Page 3 os REMARKS cant.. contemplated in this quotation andlor binder. Please review the above carefully, terms and/or conditions may differ from those requested in your submission. In addition to the above mentioned exclusions, the policy contains other standard exclusions; specimen policies are available upon request. Terms herein are summarized for use by a licensed broker and should not be submitted in this format to the applicant. Please call with any questions. This Binder is subject to all terms a nd conditions of the policy to be issued. The Binder shall be terminated and voided by delivery of a policy to either the Insured, his agent or representative. The coverage will remain in effect for the term indicated unless cancelled by the Insured, WORLDWIDE FACILITIES, INC_ or the Company, via written notice. This Hinder is a privileged document and shall not be released or assigned in whole or in part to any other person or entity without the written consent of WORLDWIDE FACILITIES, INC., endorsed here on. 19 Davis D. Moore Item 10. - 21 xB -256- City Of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk November 26, 2012 Harmony Cove, LLC Attn: Joe Daichendt 1 Hammond Road Ladera Ranch, CA 92694 Dear Mr. Daichendt: Enclosed for your records is a signed copy of the "License Agreement By and Between the City of Huntington Beach and Harmony Cove, LLC for the Non -Exclusive Use of City Property." Sincerely, M ") Jo L. Flynn, CIVIC City Clerk JF:pe Enclosure G:followup:agrmtltr Sister Cities: Anjo, Japan ♦ Waitakere, New Zealand