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HomeMy WebLinkAboutLANDIS, WILLIAMS - 1999-05-17i Council!Agency Meeting Held: Deferred/Continued to: 'aApprovea :1 Conditionally Approved ZI Denied / Oft Reld 3 -06 blLf l�ifq Citv Clerk's Sionature Council Meeting Date: May 17, 1999 Department ID Number: CA 99-14 I CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator PREPARED BY: IL HUTTON, CITY ATTORNEY ROBERT BEARDSLEY, DIRECTOR OF PUBLIC WORKS - (. SUBJECT: CITY OF HUNTINGTON BEACH v. DAVID DAHL, GOLDEN EAGLE INSURANCE COMPANY, et al. (OCSC Case No. 775726) Statement of issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(sJ Statement of Issue: Should the City Council enter into several settlement agreements resolving the litigation against the subdivider and his bonding company, regarding the public improvements at the Southwest corner of Ellis and Goldenwest. Funding Source: 1. $32,395.64 from David Dahl 2. Golden Eagle insurance Company to install the Ellis Avenue water line. 3. The City to release the remaining Mello -Roos funds (approximately $212,000) to Golden West Partners to complete the remaining Ellis/Golden West improvements. Recommended Action: That the City Council authorize the Mayor to execute and the City Clerk to attest the following agreements: 1. Settlement of Action and Release between the City of Huntington Beach and David Dahl, and Golden Eagle Insurance Company. 2. Settlement of Action and Release between the City of Huntington Beach and William Landis and Golden West Properties. 3. Acquisition Agreement between the City of Huntington Beach and Golden West Partners, LLC. Alternative Action(s): Do not approve the Agreement. • • REQUEST FOR COUNCIL ACTION MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: CA 99-14 Analysis: Defendant David Dahl constructed several residential subdivisions at the south of Ellis Avenue between Edwards and Goldenwest Street. As a condition of development, the City required the widening of Ellis Avenue from Goldenwest to Edwards and installing a twelve -inch water main down the middle of the street. As is typical in land subdivisions, Dahl was not required to improve Ellis Avenue in order to begin his development. Instead, Dahl signed "subdivision agreements" with the City agreeing to install the improvements, and also posted bonds issued by Golden Eagle Insurance Company to insure that the improvements were installed. The Subdivision Agreements required the work to be completed in August 1991. Further, in order to assist Dahl in developing the projects, the City established a Mello -Roos financing district, which mortgaged the underlying land and used the resulting bond proceeds to finance the subdivision improvements. As part of this Mello -Roos transaction, Dahl entered into an "Acquisition Agreement" providing that, although he could draw down upon the bond proceeds to install the subdivision improvements, to the extent that there were inadequate monies to pay for the improvements, then Dahl was personally responsible for installing them. Dahl did not own all the property mortgaged as part of the Mello -Roos district. For example, William Landis agreed to include his land in the district, although it was only in escrow to be sold to Dahl. (Dahl never closed the escrow.) Ultimately, Dahl developed the subdivisions and sold the homes. He also installed all the required subdivision improvements except for completing the final asphalt "lift" for Ellis Avenue and installing the water main. To obtain completion of these improvements, the City filed a lawsuit seeking relief under four basic theories: The City sued David Dahl and his related business entities for breach of the subdivision agreements, specifically for failing to construct the water main and complete Ellis from Saddleback Lane to Edwards. 2. The City sued the bonding company, Golden Eagle Insurance Company, for breach of the bond obligations. These bonds covered the Ellis Avenue improvements. 3. The City sued Dahl for breach of the Acquisition Agreement under the Mello - Roos district. This Agreement required Dahl to improve Ellis and Goldenwest, between Saddleback and Goldenwest. These are improvements that would prepare Landis' property for development. (However, neither Dahl's subdivision agreements nor Golden Eagle's bonds covered these additional improvements.) 99-14DAH 2- 05/13/99 9:15 AM • • REQUEST FOR COUNCIL ACTION MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: CA 99-14 4. The City sued William Landis for a declaratory relief action to determine what obligation the City had to expend the Mello -Roos money as between the Ellis Avenue improvements and those specifically benefiting Landis' property. Until recently, the chief obstacle in obtaining relief in this action was that Golden Eagle Insurance Company was in conservatorship. However, Golden Eagle recently came out of conservatorship, and consequently, the City was then able to negotiate a settlement. Simultaneously, Landis is currently selling his land to Golden West Partners (dba "Heritage Homes"). Golden West has been conditioned to complete all the outstanding improvements to Saddleback Lane, Ellis Avenue and Goldenwest. Though the escrow for the sale has not yet closed, grading work has already begun so it appears certain that the escrow will close. Finally, there still remains over $200,000 in the Mello -Roos trust account that could be used for completing Ellis and for the Landis improvements. On Monday, February 1, 1999, the City Council convened in close session to discuss the settlement of the above -referenced litigation. At that time, the City Council authorized the case to be settled on the following grounds: Golden Eagle to install the Ellis Avenue water line. 2. Golden Eagle pays the City the estimated cost to install the final asphalt "lift" on Ellis Avenue in an amount to be determined by the Assistant City Engineer. This money will be retained in the City's interest -bearing account. The work will be completed in conjunction with PLC completing the north side of Ellis. 3. The City would dismiss the case against Dahl and Golden Eagle, including waiving costs plus attorneys fees. 4. The City releases the remaining Mello -Roos funds (approximately $200,000) to Landis/Heritage Homes and they complete all the remaining Ellis/Goldenwest improvements, in connection with the development of the southeast corner of Ellis and Goldenwest. The attached Settlement Agreements implement these four points. The first Settlement Agreement between the City and David Dahl and Golden Eagle provides that Golden Eagle Insurance Company will install the Ellis Avenue water line. It further provides that Golden Eagle or David Dahl will pay the City the estimated cost to install the final asphalt lift on Ellis Avenue. The City Engineer had determined that this amount is $32,000. A check for this amount has already been received from David Dahl. In exchange, this Settlement Agreement provides that the City would dismiss its case against Dahl and Golden Eagle. 99-14DAH -3- 05/13/99 9:15 AM • REQUEST FOR COUNCIL ACTION MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: CA 99-14 The second Settlement Agreement between the City and William Landis and Golden West Partners provides that the remaining funds in the Mello -Roos trust account will be released to the buyer of the Landis property, Golden West Properties. They will use this money to pay for some of the EIIis/Goldenwest improvements. The remainder of the improvements will be installed persuant to normal conditions of approval for the subdivision. In addition, the Acquisition Agreement between the City and Golden West Partners implements this release of funds. Originally, the City had entered into a virtually identical Acquisition Agreement in connection with the original formation of the Mello -Roos district. That Acquisition Agreement was between the City and David Dahl. This new Acquisition Agreement will replace the prior one, and will be between the City and Golden West Partners. Environmental Status: Exempt Attachment(s): 1 ettlement Agreement between City and David Dahl, Golden Eagle Insurance Co. Settlement Agreement between the City and William Landis, 2. Golden West Partners. Acquisition Agreement between the City and Golden West 3. Partners. Memo from Gail Hutton to Close Session file summarizing 4. City Council Close Session of February 1, 1999 regarding the City v. Dahl/Golden Eagle Insurance Co. 5. I Copy of Settlement Check from David Dahl's attorney. RCA Autnor: Scott Field, Deputy City Attorney 99-14DAH -4- 05/13/99 9:15 AM • • ATTACHMENT 2 CLekram: v1901.r cn'60n A I SETTLEMENT OF ACTION AND RELEASE WHEREAS, David Dahl, individually, and through a general and a limited partnership (collectively, "Dahl') entered into escrow with William Landis ("Landis") to buy from Landis a parcel of land known as Tentative Tract No. 14109 (the "Property"); WHEREAS, on June 25, 1990, the City of Huntington Beach ("City") established City of Huntington Beach Community Facilities District No. 1990-1 ("CFD 1990-1"); WHEREAS, CFD 1990-1 encompassed certain parcels of property depicted in Exhibit A, and hereinafter referred to as the "District;" WHEREAS, CFD 1990-1 provided a funding mechanism for construction of certain street and water improvements (known as the "Facilities") serving the District, as more specifically described in the notice of lien for CFD 1990-1; WHEREAS, CFD 1990-1 issued tax-exempt bonds, the proceeds of which were deposited in an Improvement Fund (herein referred to as the "Trust Account") and were to be used to pay for construction of the Facilities. The tax-exempt bonds are being retired through special taxes levied within the District; WHEREAS, over the course of time, Dahl constructed some of the Facilities, invoiced CFD 1990-1 for the work and CFD 1990-1 reimbursed Dahl for the cost of the Facilities from the Trust Account. During 1996 it became apparent that there were insufficient funds in the Trust Account to complete all the Facilities, particularly those benefiting the Property. WHEREAS, all of the District has been improved with residential homes with the exception of the Property and certain parcels immediately south of the Property, also as depicted on Exhibit A attached hereto and hereinafter collectively referred to as the "Land." Money is still remaining in the Trust Account of CFD 1990-1 which can be used to install subdivision improvements for the Land; 1 of 7 SF-99Agree: L.andis28 04/21/99 - #12 { • WHEREAS, as part of establishing CFD 1990-1, Dahl entered into an "Acquisition Agreement" which provided that to the extent that CFD 1990-1 was unable to fund construction of all of the Facilities, then Dahl was personally responsible for installing the Facilities; WHEREAS, when Dahl did not complete the Facilities, the City filed an action against Dahl and against Landis entitled City of Huntington Beach and CFD 1990-1 v. David Dahl, William Landis, et al., Orange County Superior Court Case No. 77-57-26 (the "Action"); WHEREAS, the City filed the Action as against Landis for the purposes of establishing through declaratory relief whether the City was obligated to expend the funds in the Trust Account for the benefit of the Property; WHEREAS, Landis cross -complained against the City, alleging that the City had improperly expended funds from the Trust Account; WHEREAS, City and Dahl have entered into a separate settlement agreement; WHEREAS, the allegations of the Complaint and Cross -Complaint in this Action are incorporated by reference in this Agreement; and WHEREAS, Landis has entered into an agreement to sell the Property to Goldenwest Partners, a California Limited liability Company, ("GWP"). GWP has already purchased the remainder of the Land, except for the Property; and WHEREAS, GWP has obtained conditional approval of Tentative Tract Map No. 15691 ("TT 15191") for the development of the Property, and additional parcels to the south of the Property. TT 15691 specifies the public improvements that must be installed as part of the development. A copy of the conditions of approval of TT 15691 is attached as Exhibit A; and WHEREAS, the City, Landis and GWP are desirous of ending this Action and resolving all disputes concerning CFD 1990-1 and use of the Trust Account; 2 of 7 SF-99Agree: ,andis28 04/21 /99 - # 12 NOW, THEREFORE, it is agreed as follows: 1. Except as provided below, the City and CFD 1990-1 on one hand, and Landis and GWP on the other hand, do hereby release each other from any and all rights, claims, demands, and damages of any kind, known or unknown, asserted or unasserted, existing or arising on or before the date of execution of this Agreement and resulting from or related to CFD 1990-1 or to the allegations in the Action. GWP's release will not become effective until the City and GWP execute the Acquisition Agreement described below. 2. The City and CFD 1990-1 agree to enter into an Acquisition Agreement with GWP, the form of which will be substantially similar to the existing Acquisition Agreement, with such revisions as are determined by Bond Counsel and GWP to be reasonably necessary or appropriate. The City represents that there currently is Two Hundred Eighteen Thousand Two Hundred Seventy-eight Dollars ($218,278.00) in the Trust Account for CFD 1990-1 ("Remaining Funds"). Such Acquisition Agreement will provide that GWP will be required to complete the improvements described at Conditions 3h, m, n, o, p and q as described in TT 15691, provided that the public improvements described in this sentence adjoin the Property (hereinafter referred to as the "Authorized Improvements"). Such Acquisition Agreement will further provide that GWP will be reimbursed from the Trust Account for such amounts expended to complete the Authorized Improvements. The City and CFD covenant and agree that the remaining funds in the Trust Account will be expended solely for the purpose of reimbursing GWP for completing the Authorized Improvements. Such Acquisition Agreement will further provide that GWP agrees to waive any and all rights to challenge the formation of CFD 1990-1 or its authority to levy special taxes. GWP acknowledges that there is insufficient money in the Trust Account to complete the Authorized Improvements, and nevertheless agrees that the Acquisition Agreement shall provide that GWP will install all of the Authorized Improvements. 3 of 7 SF-99Agree:Landis28 0$%21:'99 - 412 3. The City and Landis waive any claim which they have against the other for costs or attorneys' fees incurred in the Action. 4. Counsels for the City and Landis shall file a dismissal with prejudice to the Complaint and Cross -Complaint in the Action as to each other within seven (7) calendar days of the execution of this agreement and the Acquisition Agreement between the City and GWP by all parties. Each counsel shall provide opposing counsel with a conformed copy of the dismissal. 5. Each party understands and agrees that all of its rights under Section 1542 of the Civil Code of California or any similar law of any state or territory of the United States, are hereby expressly waived. Said Section reads as follows: Section 1542. General Release -Claims Extinguished. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him, must have materially affected his settlement with the debtor. b. It is understood and agreed that this Agreement represents settlement of disputed claims and is not to be construed as representing an admission of liability on behalf of any party to this Agreement. The parties, however, intend to buy their peace and to forever provide a full and complete release and discharge from any and all liability arising out of the transactions, matters and events more particularly identified hereinabove. 7. The parties expressly warrant, represent, and agree that in executing this Agreement, they do so with full knowledge of any rights which they have or may have with respect to the other, and that they have received independent legal advice from their respective attorneys with respect to this Agreement, and with respect to the hereinabove referenced lawsuit. 4 of 7 SF-99Agree: Land is28 04;21;99 - 412 �il a 8. The parties acknowledge that after entering into this Agreement, they may discover different or additional facts concerning the subject matter of this Agreement or their understanding of those facts. The parties, therefore, expressly assume the risk of such facts being so different and agree that this Agreement shall, in all respects, be effective and not subject to rescission, cancellation or termination by reason of any such additional or different facts. 9. Should either party bring an action against the other for the purpose of enforcing the terms of this Agreement, or for damages arising from its breach, then in such event, the prevailing party shall be entitled to its reasonable attorney fees and costs in addition to any other award entered by the Court. 10. This Agreement shall inure to the benefit of the parties and to their respective successors, representatives and assigns, and shall be binding upon each of the foregoing. 11. This Agreement shall, in all respects, be interpreted, enforced and governed by and under the laws of the State of California. This Agreement contains the entire agreement and understanding between the parties concerning the subject matter hereof and supersedes and replaces all prior negotiations, proposed agreements or agreements, whether written or oral. 12. This Agreement may be executed in one or more counterparts. A copy of this Agreement shall be as binding as the original. 5 of 7 SF-99Agree:LandisM 0412 i r99 - 012 IN WITNESS WHEREOF, each of the undersigned have executed this Agreement on the date and year indicated below. Each of the below named persons warrant that they are duly authorized to sign this Agreement on behalf of their principal and are authorized to bind their principal to this Agreement. MAY DATED: — pM 17 , 1999 ATTEST: _,gypJctja ____ City Clerk CITY74Z NGTON BEACH By Mayor APPROVED AS TO FORM: Scott F. Field, Deputy City Attorney City of Huntington Beach Its Attorney of Record b of 7 SF-99Agree: Land is28 04/21/99 - a12 DATED: April , 1999 WILLIAM LANDIS APPROVED AS TO FORM: George Rogers of Rogers & MacLeith LLP His Attorney of Record GOLDEN'WEST PARTNERS, LLC BY HERITAGE COMMUNITIES, INC., a California Corporation, Its Managing Member By W4 4K Mark Jacobs, Msident APPROVED TO FORM: FE for Luce, Forward, cripps, LLP v of Record 7 of 7 SF-99Agree:Landis26 04121i99-tt12 DATED: April , 1999 WILLIA. LAND IS By APPROVED AS TO FORM: George Rogers of Rogers & MacLeith LLP His Attorney of Record GOLDENWEST PARTNERS, LLC BY HERITAGE COMMUNITIES, INC., a California Corporation, Its Managing Member Mark Jacobs, President APPROVED AS TO FORM: Brian C. Fish for Luce, Forward, Hamilton & Scripps, LLP Its Attorney of Record 7 of 7 SF-99Agrce: Landis29 04122:199 - # 12 • P-A SETTLEMENT OF ACTION AND RELEASE WHEREAS, David Dahl, individually, and through a general and a limited partnership (collectively, "Dahl") entered into escrow with William Landis ("Landis") to buy from Landis a parcel of land known as Tentative Tract No. 14109 (the "Property"); WHEREAS, on June 25, 1990, the City of Huntington Beach ("City) established City of Huntington Beach Community Facilities District No. 1990-1 ("CFD 1990-1"); WHEREAS, CFD 1990-1 encompassed certain parcels of property depicted in Exhibit A, and hereinafter referred to as the "District;" WHEREAS, CFD 1990-1 provided a funding mechanism for construction of certain street and water improvements (known as the "Facilities") serving the District, as more specifically described in the notice of lien for CFD 1990-1; WHEREAS, CFD 1990-1 issued tax-exempt bonds, the proceeds of which were deposited in an Improvement Fund (herein referred to as the "Trust Account") and were to be used to pay for construction of the Facilities. The tax-exempt bonds are being retired through special taxes levied within the District; WHEREAS, over the course of time, Dahl constructed some of the Facilities, invoiced CFD 1990-1 for the work and CFD 1990-1 reimbursed Dahl for the cost of the Facilities from the Trust Account. During 1996 it became apparent that there were insufficient funds in the Trust Account to complete all the Facilities, particularly those benefiting the Property. WHEREAS, all of the District has been improved with residential homes with the exception of the Property and certain parcels immediately south of the Property, also as depicted on Exhibit A attached hereto and hereinafter collectively referred to as the "Land." Money is still remaining in the Trust Account of CFD 1990-1 which can be used to install subdivision improvements for the Land; 1 of 7 SF-99Agree:Landis28 04/22/99 - # 12 0 WHEREAS, as part of establishing CFD 1990-1, Dahl entered into an "Acquisition Agreement" which provided that to the extent that CFD 1990-1 was unable to fund construction of all of the Facilities, then Dahl was personally responsible for installing the Facilities; WHEREAS, when Dahl did not complete the Facilities, the City filed an action against Dahl and against Landis entitled City of Huntington Beach and CFD 1990-1 v. David Dahl, William Landis, et at., Orange County Superior Court Case No. 77-57-26 (the "Action"); WHEREAS, the City filed the Action as against Landis for the purposes of establishing through declaratory relief whether the City was obligated to expend the funds in the Trust Account for the benefit of the Property; WHEREAS, Landis cross -complained against the City, alleging that the City had improperly expended funds from the Trust Account; WHEREAS, City and Dahl have entered into a separate settlement agreement; WHEREAS, the allegations of the Complaint and Cross -Complaint in this Action are incorporated by reference in this Agreement; and WHEREAS, Landis has entered into an agreement to sell the Property to Goldenwest Partners, a California Limited liability Company, ("GWP"). GWP has already purchased the remainder of the Land, except for the Property; and WHEREAS, GWP has obtained conditional approval of Tentative Tract Map No. 15691 ("TT 15191") for the development of the Property, and additional parcels to the south of the Property. TT 15691 specifies the public improvements that must be installed as part of the development. A copy of the conditions of approval of TT 15691 is attached as Exhibit A; and WHEREAS, the City, Landis and GWP are desirous of ending this Action and resolving all disputes concerning CFD 1990-1 and use of the Trust Account; 2 of 7 SF-99Agreelandis28 04/22/99 - #12 0 0 NOW, THEREFORE, it is agreed as follows: 1. Except as provided below, the City and CFD 1990-1 on one hand, and Landis and GWP on the other hand, do hereby release each other from any and all rights, claims, demands, and damages of any kind, known or unknown, asserted or unasserted, existing or arising on or before the date of execution of this Agreement and resulting from or related to CFD 1990-1 or to the allegations in the Action. GWP's release will not become effective until the City and GWP execute the Acquisition Agreement described below. 2. The City and CFD 1990-1 agree to enter into an Acquisition Agreement with GWP, the form of which will be substantially similar to the existing Acquisition Agreement, with such revisions as are determined by Bond Counsel and GWP to be reasonably necessary or appropriate. The City represents that there currently is Two Hundred Eighteen Thousand Two Hundred Seventy-eight Dollars ($218,278.00) in the Trust Account for CFD 1990-1 ("Remaining Funds"). Such Acquisition Agreement will provide that GWP will be required to complete the improvements described at Conditions 3h, in, n, o, p and q as described in TT 15691, provided that the public improvements described in this sentence adjoin the Property (hereinafter referred to as the "Authorized Improvements"). Such Acquisition Agreement will further provide that GWP will be reimbursed from the Trust Account for such amounts expended to complete the Authorized Improvements. The City and CFD covenant and agree that the remaining funds in the Trust Account will be expended solely for the purpose of reimbursing GWP for completing the Authorized Improvements. Such Acquisition Agreement will further provide that GWP agrees to waive any and all rights to challenge the formation of CFD 1990-1 or its authority to levy special taxes. GWP acknowledges that there is insufficient money in the Trust Account to complete the Authorized Improvements, and nevertheless agrees that the Acquisition Agreement shall provide that GWP will install all of the Authorized Improvements. 3 of 7 SF-99Agree:LandisM 04/22/99 - # 12 0 3. The City and Landis waive any claim which they have against the other for costs or attorneys' fees incurred in the Action. 4. Counsels for the City and Landis shall file a dismissal with prejudice to the Complaint and Cross -Complaint in the -Action as to each other within seven (7) calendar days of the execution of this agreement and the Acquisition Agreement between the City and GWP by all parties. Each counsel shall provide opposing counsel with a conformed copy of the dismissal. 5. Each party understands and agrees that all of its rights under Section 1542 of the Civil Code of California or any similar law of any state or territory of the United States, are hereby expressly waived. Said Section reads as follows: Section 1542. General Release -Claims Extinguished. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him, must have materially affected his settlement with the debtor. 6. It is understood and agreed that this Agreement represents settlement of disputed claims and is not to be construed as representing an admission of liability on behalf of any party to this Agreement. The parties, however, intend to buy their peace and to forever provide a full and complete release and discharge from any and all liability arising out of the transactions, matters and events more particularly identified hereinabove. 7. The parties expressly warrant, represent, and agree that in executing this Agreement, they do so with full knowledge of any rights which they have or may have with respect to the other, and that they have received independent legal advice from their respective attorneys with respect to this Agreement, and with respect to the hereinabove referenced lawsuit. 4 of 7 SF-Mgree:Landis2g 04/22/99 - i#12 The parties acknowledge that after entering into this Agreement, they may discover different or additional facts concerning the subject matter of this Agreement or their understanding of those facts. The parties, therefore, expressly assume the risk of such facts being so different and agree that this Agreement shall, in all respects, be effective and not subject to rescission, cancellation or termination by reason of any such additional or different facts. 9. Should either party bring an action against the other for the purpose of enforcing the terms of this Agreement, or for damages arising from its breach, then in such event, the prevailing party shall be entitled to its reasonable attorney fees and costs in addition to any other award entered by the Court. 10. This Agreement shall inure to the benefit of the parties and to their respective successors, representatives and assigns, and shall be binding upon each of the foregoing. 11. This Agreement shall, in all respects, be interpreted, enforced and governed by and under the laws of the State of California. This Agreement contains the entire agreement and understanding between the parties concerning the subject matter hereof and supersedes and replaces all prior negotiations, proposed agreements or agreements, whether written or oral. 12. This Agreement may be executed in one or more counterparts. A copy of this Agreement shall be as binding as the original. 5 of 7 SF-99AgrmLandis28 04/22/99 - #12 0 • IN WITNESS WHEREOF, each of the undersigned have executed this Agreement on the date and year indicated below. Each of the below named persons warrant that they are duly authorized to sign this Agreement on behalf of their principal and are authorized to bind their principal to this Agreement. MAY DATED: -- � 17 , 1999 ATTEST: City Clerk CITY OF HUNTINGTON BEACH c Mayor APPROVED AS TO FORM: Scott F. Field, Deputy City Attorney City of Huntington Beach Its Attorney of Record 6 of 7 SF-99AgreelandisH 04/22/99 - # 12 0 • DATED: April , 1999 WILLI LANDIS By APPROVED AS TO FORM: George Rogers of Rogers & MacLeith LLP His Attorney of Record GOLDENWEST PARTNERS, LLC BY HERITAGE COMMUNITIES, INC., a California Corporation, Its Managing Member Mark Jacobs, President APPROVED AS TO FORM: Brian C. Fish for Luce, Forward, Hamilton & Scripps, LLP Its Attorney of Record 7 of 7 SF-99Agree:Ludis28 04/22/99 - 412