File #: 11-786    Name:
Type: Minutes Status: Passed
File created: 6/28/2011 In control: Board of Supervisors
On agenda: 6/28/2011 Final action: 6/28/2011
Title: a. Approve and consent to a First Implementation Agreement to Disposition and Development Agreement a. Approve and consent to a First Implementation Agreement to Disposition and Development Agreement
Attachments: 1. Completed Board Order , 2. Agreement A-12020, 3. Agreement A-12021, 4. Signed Board Report

 

 

 

 

 

 

 

 

COMPLETED BOARD ORDER"�|E

��40

Board of Supervisors in and for the

ounty of Monterey, State of California

Agreement Nos. A-12020 A-12021

a. Approve and Conse t to a First Implementation

Agreement to Dispositi n and Development Agreement

between the Redevelopment Agency of the County of

Monterey and UCP East Garrison, LLC with respect to the

implementation of the Disposition and Development

Agreement for the East Garrison Project;

b. Approve an Implements ion Agreement Among UCP East

Garrison, LLC, Midpen Housing Corporation, County of

Monterey, and the Redevelopment Agency of the County

of Monterey with respect to the development of affordable

housing in Phase 1 of the East Garrison Project; and

c. Authorize the Chair toexecute both agreements

Upon motion of Supervisor alinas, seconded by Supervisor Calcagno, and carried by those

members present, the Board hereby;

a. Approved and Cons nted to a First Implementation Agreement No. A-11220) to

Disposition and Development Agreement between the Redevelopment Agency of the

County of Monterey and UCP East Garrison, LLC with respect to the implementation of

the Disposition and Development Agreement for the East Garrison Project;

b. Approved an Imple entation Agreement No. A-11221) Among UCP East Garrison,

LLC, Midpen Housi g Corporation, County of Monterey, and the Redevelopment

Agency of the County of Monterey with respect to the development of affordable housing

in Phase 1 of the East Garrison Project; and

c. Authorized the Chai to execute both agreements.

PASSED AND ADOPTED bn this 28`h day of June, 2011, by the following vote, to wit:

AYES: Supervisors Calc gno, Salinas, and Parker

NOES: None

ABSENT: Supervisors Arm nta and Potter

I, Gail T. Borkowski, Clerk of th Board of Supervisors of the County of Monterey, State of California, hereby

certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered

in the minutes thereof of Minute ook 75 for the meeting on June 28, 2011.

Dated: July 7, 2011 Gail T. Borkowski, Clerk of the Board of Supervisors

County of Monterey, State of California

By

 

 

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AGREEMENT A-12020�"�|E

��FIRST IMPPLEMENTATION AGREEMENT TO

DISPOSITION AND DEVELOPMENT AGREEMENT

THIS FIRST IMPLEMENTATION AGREEMENT TO DISPOSITION AND

DEVELOPMENT AGREEMENT this Amendment") is made this 2II'"day of 1 V,g

2011, by and between THE~REDEVELOPMENT AGENCY OF THE COUNTY OF

MONTEREY the A enc  and UCP EAST GARRISON, LLC UCP EG"). Agency and

UCP EG are each referred tp herein as a Party" and together as the Parties." The COUNTY

OF MONTEREY the Co nt  has consented to this Amendment as set forth in the Consent

and Agreement of the County appended hereto following the signature pages.

RECITALS:

A. Agency and East Garrison Partners I, LLC EGP") entered into that certain

Disposition and Development Agreement Together With Exclusive Negotiation Rights to

Certain Property) on Octob~r 4, 2005 the DDA"), which DDA, among other things, imposes

certain conditions includin~, without limitation, construction requirements, operating covenants,

and transfer restrictions) on the real property commonly known as East Garrison Track Zero

located in the unincorporated area of the County of Monterey, California and more particularly

described on Exhibit A to the DDA and incorporated herein by reference the Pro ert  The

DDA is evidenced by a Merj orandum of Disposition and Development Agreement Together

With Exclusive Negotiation] Rights to Certain Property) dated October 4, 2005 and recorded on

May 16, 2006 in the officials records of the Monterey County Recorder's Office the Official

Records") as Instrument Noy 2006044222 the Memorandum"). Capitalized terms used but not

defined herein shall have the meanings given to such terms in the DDA.

B. On or around January 30, 2007, EGP obtained a loan from Residential Funding

Company, LLC, a Delaware limited liability company and RFC Construction Funding, LLC, a

Delaware limited liability company collectively, the Original Lender") in the original principal

amount of up to Seventy Fide Million Dollars $75,000,000) the Loan"), which Loan was

evidenced by, among other  struments, i) that certain Loan Agreement dated January 30, 2007

by and between EGP and O iginal Lender the Loan Agreement"); ii) that certain Revolving

Promissory Note dated January 30, 2007, made by EGP to the order of Original Lender the

Note"); and iii) that certain Construction Deed of Trust, Security Agreement and Fixture Filing

with Assignment of Rents, Proceeds and Agreements effective as of January 30, 2007, and made

by EGP, as trustor, to First 4.merican Title Company, as trustee, for the benefit of Original

Lender, as beneficiary, as arziended by that certain Modification to Construction Deed of Trust,

Security Agreement and Fixture Filing with Assignment of Rents, Proceeds and Agreement

bearing a date of February 1 2008 collectively, the Deed of Trust"), which Deed of Trust

encumbered the Property. like Loan Agreement, Note, Deed of Trust, together with all other

documents, instruments and modifications relating to the Loan are referred to herein collectively

as the Loan Documents."

C. Agency and County each provided their consent to the Loan pursuant to that

certain Consent, Subordinatibn and Recognition Agreement dated as of January 30, 2007

CSRA") by and among the County, the Agency, EGP and Original Lender, which was

recorded in the Official Records on February 1, 2007 as Instrument No. 2007008911.

13330017.2

1

 

 

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AGREEMENT A-12020�"�|E

��D. On or around January, 2009, EGP defaulted on its Loan obligations to Original

Lender by, among other things, failing to make debt service payments to Original Lender as and

when required under the Loan Documents.

E. As a result of EGP's defaults under the Loan Documents, on March 24, 2009,

Original Lender commenced trustee sale proceedings under the Deed of Trust by causing a

Notice of Default and Election to Sell under Deed of Trust to be recorded in the Official Records

as Instrument No. 2009017137 the Trustee Sale Proceedings").

F. On August 7, 2009, during the pendency of the Trustee Sale Proceedings, UCP

EG purchased the Loan and Loan Documents from Original Lender, as evidenced by, among

other instruments, i) that certain Purchase and Sale Agreement dated July 1, 2009 by and

between Original Lender and UCP EG; ii) that certain Assignment to Note dated August 7, 2009

made by Original Lender for the benefit of UCP EG; iii) that certain Assignment of Deed of

Trust made by Original Lender for the benefit of UCP EG dated and recorded in the Official

Records on August 7, 2009 as Instrument No. 2009050410; and iv) that certain Assignment of

CSRA made by Original Lender for the benefit of UCP EG dated and recorded in the Official

Records on August 7, 2009 as Instrument No. 200905041.

G. As a result of UCP EG's purchase of the Loan, UCP EG became the lender under

the Loan Documents and a Lender" as such term is defined in the CSRA) under the CSRA, all

as further confirmed by those certain Estoppel Certificates executed by both the Agency and the

County for the benefit of UCP, LLC UCP EG's parent company) on July 28, 2009.

H. On September 8, 2009, the Property was auctioned for sale as part of the Trustee

Sale Proceedings and UCP EG, being the highest bidder at such sale, became the purchaser of

the Property pursuant to a credit bid equal to Twenty Two Million One Hundred Fifty Three

Thousand Four Hundred Twenty Five Dollars and 45/00 cents $22,153,425.45  This amount

will be considered the Initial Land Payment" as defined in the DDA.

I. Title to the Property was vested in UCP EG pursuant to that certain Trustee's

Deed Upon Sale dated September 8, 2009 and recorded in the Official Records on September 9,

2009 as Instrument No. 2009057220.

J. UCP EG's acquisition of the Property through the Trustee Sale Proceedings

resulted in the occurrence of a Transfer Event"(as such term is defined in the CSRA); thereby

rendering UCP EG a Succeeding Owner" as such term is defined in the CSRA) under the

CSRA and entitling UCP EG to a number of rights and benefits under the CSRA and DDA,

including, without limitation, the requirement that both the Agency be bound to UCP EG by the

provisions of the DDA as if the DDA was originally between the Agency and UCP EG.

K. However, UCP EG, as a Lender and Succeeding Owner, is not obligated to

perform any development or construction work at the Property until such time as it expressly

assumes in writing the continuing perfonnance obligations of EGP under the DDA and officially

assumes the role of master Developer under the DDA.

13330017.2 2

 

 

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AGREEMENT A-12020�"�|E

��L. UCP EG is row ready and willing to assume the role of master Developer under

the DDA and to continue the performance obligations required thereunder, as the DDA is

implemented pursuant to this and any subsequent Implementation Agreements.

M. The Agency s agreeable to the implementing measures identified in this First

Implementation Agreementland to deem UCP EG as the master Developer thereunder, and UCP

EG is willing to assume theirole of master Developer, in accordance with the terms and

conditions set forth hereundjer.

NOW, THEREFO  in consideration of the foregoing recitals and the mutual

covenants, representations, warranties, conditions; and agreements contained herein, and for

other good and valuable consideration, the receipt and sufficiency of which are hereby

acknowledged, and intending to be legally bound, the Parties agree as follows:

1. Assumption Of DDA.

1.1 Assu tion 107 of DDA- 1 of CSRA  UCP EG hereby covenants

and agrees that, on and after~ the Effective Date as defined below), UCP EG will assume EGP's

role as Developer" under tle DDA, and, except as otherwise set forth in Section 1.3 hereof, will

assume, observe, perform, lfill and be bound by all terms, covenants, conditions and

obligations of EGP under th DDA as amended hereby). As of the Effective Date, UCP EG

shall have all rights of EGP in, to and under the DDA.

1.2 Agee y Consent  107 of DDA;  1 of CSRA) The Agency hereby

consents to the foregoing as umption and hereby covenants and agrees that the Agency shall be

bound to UCP EG by the pr visions of the DDA as if the DDA were originally between the

Agency and UCP EG. The Agency's obligations to UCP EG under the DDA shall include,

without limitation, all obligations to provide and/or otherwise assist with the financing of the

Project, as more specifically set forth in Attachment No. 4 to the DDA. The Agency further

agrees that UCP EG is hereby deemed to be the Master Developer" of the Site as such term is

defined in Attachment No.116 of the DDA) and shall be entitled to all rights granted to the

Master Developer under the DDA.

1.3 DDA provisions Pertaining to EGP and Obligations Prior to Site

Coney arm The Parties acknowledge and agree that UCP EG was not the original Developer

under the DDA and, as such there are a number of DDA provisions that do not apply to UCP EG

given that EGP purchased the Site from the Agency in 200[5], including, without limitation,

Sections 200-203 relating tq the purchase and sale of the Site by EGP), Sections 509-511

relating to the parties' right and remedies that existed prior to the conveyance of the Site to

EGP), and Section 706 relat ng to property management services prior to the conveyance of the

Site).

2. Project Costs.;

2.1 Cost Basis Attachment No. 4, A 3 d of DDA 3 of CSRA).

Notwithstanding anything in the CSRA to the contrary, including, without limitation, Section

3(a)(i) thereof, the Parties he eby covenant and agree that the amount of Project Costs incurred

by UCP EG to acquire the Project shall equal Twenty Two Million One Hundred Fifty Three

13330017.2 3

 

 

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AGREEMENT A-12020�"�|E

��Thousand Four Hundred Twenty Five Dollars and Forty Five Cents $22,153,425.45), plus all

other Project Costs as defined in Attachment No. 4, Section 3(d) of the DDA) incurred by UCP

EG in the acquisition and development of the Property and EGP's rights as Developer under the

DDA, including all attorneys' fees and costs.

2.2 Management Fee Attachment No. 4,  A(3)(d)). Agency hereby

covenants and agrees that either UCP EG or UCP, LLC UCP EG's parent company), as UCP

EG may determine in its sole discretion, is entitled to receive an ongoing management fee for the

supervision and development of the Project equal to i) One Hundred Fifty Thousand Dollars

$150,000) per quarter commencing on the Effective Date and continuing through the close of

escrow for the final lot to be sold in Phase 1 of the Project; ii) One Hundred Thousand Dollars

$100,000) per quarter commencing on the day after the close of escrow for the final lot to be

sold in Phase 1 of the Project and continuing through the close of escrow for the final lot to be

sold in Phase 2 of the Project; and iii) Fifty Thousand Dollars $50,000) per quarter

commencing on the day after the close of escrow for the final lot to be sold in Phase 2 of the

Project and continuing until such time the close of escrow for the final lot to be sold in Phase 3

of the Project. In addition, the amount of Seventy-five Thousand Dollars $75,000) per quarter

may be assessed by UCP EG as a Management Fee, commencing on September 8, 2009, and

extending to the Effective Date of this First Implementation Agreement.

Agency acknowledges and agrees that the management fee amounts listed in this Section

2.2 are reasonable and equal to the amount that would be charged by third parties on an anus'

length basis and, as such, may be included by UCP EG as part of its Project Costs. UCP EG

acknowledges and agrees that these management fees represent all UCP EG management fees to

be assessed on the Project and does not included fees that may be assessed by future developers

or builders. Management fees for any partial quarter shall be prorated based on the number of

days that UCP EG or UCP, LLC as applicable) is entitled to such management fee bears in

proportion to the actual number of days in such quarter.

3. Schedule of Performance.

3.1 Generally. The Parties recognize that the current Schedule of

Performance set forth in the DDA is no longer current or feasible due to EGP's failure to

complete development of the Project in accordance with the original timelines, EGP's invocation

of Enforced Delay in 2008, and the dramatic change and downturn in the local real estate market

since the time the DDA was signed. As a result, the Parties desire to implement the DDA by

using the Schedule of Performance attached to this First Implementation Agreement.

3.2 Attachment No. 5. Attachment No. 5 to the DDA is hereby deleted in its

entirety and replaced with the new Attachment No. 5 attached hereto and incorporated herein by

reference

3.3 Performance Schedule for Phases 2 and 3. As set forth in the new

Attachment No. 5, the Parties agreed to the performance schedules for Phases 2 and 3, based

upon current local market conditions. This revised Schedule of Performance does not alter the

performance conditions related to the provision of affordable rental housing as set forth in

Section B of Attachment No. 3 to the DDA, nor the conditions related to the provision of

13330017.2 4

 

 

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THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

��moderate-income housing get forth in the DDA. The Parties agree, however, that if by the time

that escrow has closed on the 250th lot sale in Phase 1, it appears that the performance

obligations for housing man not be achieved in a timely manner, the Parties shall begin a meet

and confer process with respect to the performance obligations. The Parties also agree that

among the matters to be included in the meet and confer process shall be the timing of

construction of affordable rental units, the possible self performance of any remaining affordable

housing obligations contained in Attachment No. 3 to the DDA, and the possible payment of the

applicable In-Lieu Fee for onterey Peninsula/Coastal Area as an alternative to conditions on

the issuance of building pe nits. The Agency agrees to extend its best good faith efforts to assist

UCP EG in finding financial assistance for the completion of the affordable housing obligations,

consistent with the provisiols of the existing pledge of tax increment contained in Section H of

Attachment No. 4 to the DI)A.

4. Workforce Ii Housing Attachment No. 3 U A &B; & Attachment No. 9,  5).

4.1 Background and Implementation Effort.

a) Background. The DDA currently requires that one hundred and forty

140) units be offered to Workforce II buyers in Phase 3 of the Project. This requirement was

originally intended to gu rd against Workforce II homebuyers from being priced out of

purchasing units located  the Project. However, due to the recent decline in the local real

estate market, the Parties agree that a reasonable estimate for the purchase prices of the

majority of the market rate units that are. anticipated to be sold in Phase 1 of the Project will be

at or below Workforce II" levels.

b) Inn lementation of Workforce II Obli ations. The Parties agree to

implement Section 5 of achnent No. 9 of the DDA in the following manner and will be

embodied in the Workfor a Housing II Agreement referenced in Attachment 3 to the DDA:

i) Developer shall satisfy all Workforce II Housing obligations

imposed upon Developer under the DDA with the sale upon the terms and conditions set forth

below) of forty-seven 47) residential units in Phase I of the Project as Workforce II units; forty-

seven 47) residential units i~,i Phase 2 of the Project as Workforce II units; and forty-six 46)

residential units in Phase 3 of the Project as Workforce II units.

ii) The Workforce II unit must be sold at a Workforce II Purchase

Price, which price cannot exeed fair market value for the unit at the time of initial sale.

iii) The actual buyer(s) of such Workforce II residential unit(s) must

be a qualified Workforce II lomebuyer and must agree to record a covenant committing to

owner-occupancy of the unity for a minimum of one 1) year.

iv) Agency agrees that it shall not require the placement of any deed

restrictions or deeds of trust vhich requires equity sharing on the Workforce II residential units

developed and sold in Phased 1 and 2. Agency further agrees that any equity sharing

requirement for Workforce Dousing residential units developed and sold in Phase 3 shall only be

imposed in the event that the e is a differential between fair market value of an equivalent

residential unit on the Projec# of Fifty Thousand Dollars $50,000) or Thirty percent 30%),

13330017.2 5

 

 

BIB]

 

40742-U01

AGREEMENT-U02

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AI103339-U03

DO104256-U03

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THE-U012

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AGENCY-U012

OF-U012

THE-U012

COUNTY-U012

OF-U012

MONTEREY-U012

RESPECT-U012

TO-U012

THE-U012

DEVELOPMENT-U012

OF-U012

AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

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TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

��whichever is less. Agency also agrees that the equity share requirement for any given Phase 3

Workforce Housing unit shall terminate if Developer documents to the Agency that Developer is

unable to find a willing qualified Workforce II homebuyer after making a good faith effort to sell

such unit for a period of 120 days.

4.2 Definitions. As used in this Section 5, the following capitalized terms

shall be defined as follows:

a) Monthly Housing Costs" shall mean a monthly debt service payment

under a 30 year fixed mortgage loan in the original principal amount of the Workforce II

Purchase Price with interest thereon at current market rates along with estimated monthly

payments for property taxes, homeowners' association dues, and special assessments.

b) Workforce II Buffer" shall mean an actual qualified buyer who earns

not more than 180% of area median income for Monterey County, as adjusted for a household

size for the appropriate unit number of bedrooms plus one) as identified in the Workforce

Housing II Agreement.

c) Workforce II Housing" shall mean the one hundred and forty 140)

residential units to be developed as originally described in the DDA and priced for the initial

sale to persons and families whose incomes do not exceed 150-180% of the adjusted median

income for Monterey County, adjusted for household size.

d) Workforce II Purchase Prices" shall mean a purchase price for a

Workforce II Housing unit which is equal to that which could have been afforded by a

Workforce II Buyer after assuming i) a down payment not to exceed 10%; and ii) Monthly

Housing Costs equal to 40% of actual eligible gross income for such Workforce II Buyer

divided by 12, provided that the Workforce II Purchase Price cannot exceed fair market value

for the applicable unit as defined by appraisal or comparable sales whichever is greater.

5. Town Center Attachment No. 4, & G(2); Attachment No. 9, & 6). The Parties

agree that UCP EG shall implement its obligations for the development of the Town Center

under the DDA, including Paragraph G, Section 2 of Attachment No. 4, in the following

manner: i) before the time that escrow has closed on the sale of the 1st lot in Phase 3, UCP EG

shall post a completion bond with respect to 34,000 square feet of the Town Center, sized

sufficiently to compensate for costs related to the construction as well as cost related to accessing

the bond; ii) UCP EG shall complete construction of at least 20,000 square feet of the Town

Center by the tune that escrow for the sale of the 200th lot in Phase 3 has closed, and shall

complete construction of an additional 14,000 square feet of the Town Center by the time the

escrow for the sale of the last lot in Phase 3 has closed; iii) if UCP EG shall not have

constructed at least 20,000 square feet of the Town Center by the time that escrow has closed on

the 200th lot in Phase 3, then UCP EG shall cause the bond funds to be released to the Agency,

13330017.2 6

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

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FO96184-U03

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DO104256-U03

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THE-U012

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1-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

��and shall deliver to the Agency a Right of Entry onto the Town Center property, so that the

Agency may cause the completion of the Town Center.

6. Parks. The Parties agree that UCP EG shall implement Condition of Approval

122 Recreation Requirements/Land Dedication) of the East Garrison Specific Plan and Vesting

Tentative Map for Phase 1 is follows:

a) Neighborhood arks."

Neighborhood Park$ are parks which are generally one 1) acre or smaller in size and are

spread across the Project. TI"here are two 2) Neighborhood Parks located in each Phase of the

Project. The Neighborhooc Parks for each Phase shall be completed in full by the time of

issuance of a Certificate of Occupancy for the 200th residential unit for each such Phase.

b) Community P ark"

The Community Pa is a park to constitute approximately 7 acres and consist of certain

improvements, including a baseball field and related improvements. By the time of the issuance

of a Certificate of Occupancy for the 200th residential unit for Phase I. all necessary

infrastructure for the coinpl~ted Community Park shall be installed, together with sufficient

grading and landscaping to llow for passive recreational use. The Community Park shall be

completely developed with X11 required amenities and improvements no later than the close of

escrow for the lot sale which represents fifty percent 50%) or greater of the lot sales for Phase 3,

and no fu ther lot sales shall be permitted until completion of the Community Park in its entirety.

c) Town Center Park"

The Town Center Pakk is approximately one acre in size and is to be built in connection

with Developer's Town Center Construction Obligation. The Town Center Park shall be

completed no later than the time a Certificate of Occupancy for the 200th residential unit is

issued in Phase 3.

7. Application f Deposit Amounts Section 201.a). The Agency hereby covenants

and agrees that, within ten  0) business days after the Effective Date, it shall make a demand on

the Escrow Agent for paym nt of the Deposit including any interest earned and accrued thereon)

that was originally submitted by EGP to secure the performance of its obligations under the

DDA. Upon Agency's recei t of the Deposit amounts from Escrow Agent, it shall i) inform

UCP EG of the amount received from Escrow Agent; and ii) use such Deposit amount towards

the payment of the Agency and County's cost and expenses in providing services to timely

process, implement and adrn mister the DDA and the Development Approvals and which would

otherwise be payable by UC EG under the DDA or the Reimbursement Agreement.

8. Insurance.

8.1 FORA PLL Section 204). On or before the Effective Date, the Agency

shall have added UCP EG as: a Named Insured under the FORA PLL and shall have furnished, or

caused to be furnished, a certificate or endorsement evidencing the same.

13330017.2 7

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

FO96183-U03

FO96184-U03

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MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104256-U03

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DEVELOPMENT-U012

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AFFORDABLE-U012

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IN-U012

PHASE-U012

1-U012

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THE-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

��8.2 UCP EG's Insurance Section 305). On or before the Effective Date, UCP

EG shall have added the Agency and the County as additional or coinsureds under the insurance

policies required to be maintained under Section 305 of the DDA and UCP EG shall have

furnished, or caused to be furnished, a certificate or endorsement evidencing the same.

9. Enforced Delay. This First Implementation Agreement reflects the fact that there

has been a significant downward change in the residential market since the DDA was first

approved. It also represents the fact that UCP EG acquired the Project after Enforced Delay was

invoked and after the prior Developer defaulted in its obligations. In recognition of these facts,

the Parties agree that Section 604 Enforced Delay) shall be implemented in the following

manner:

a) as of the Effective Date of this First Implementation Agreement, the Enforced

Delay provisions relating to market demand and absorption shall not apply to the installation of

infrastructure and completion of lots with respect to Phase 1 only; and

b) after all infrastructure and conditions of approval relative to the issuance of the

first building permit have been completed for Phase 1, UCP EG may invoke or assert

continuation of Enforced Delay if and as necessary) upon all conditions set forth in Section 604

of the DDA.

10. Miscellaneous.

10.1 Notices. From and after the Effective Date, all notices required or

permitted to be sent to Developer" under the DDA, Development Agreement, or any documents

executed in connection therewith, shall be sent to UCP EG at the following address and in the

manner required under the DDA:

To:

UCP East Garrison, LLC

6489 Camden Avenue, Suite 204

San Jose, CA 95120

Attn: James W. Fletcher

Phone: 408) 323-1113

Fax: 408) 323-1114

With a copy to: W. Allen Bennett, Esq.

Vice President & General Counsel

548 W. Cromwell, Suite 104

Fresno, CA 93711

Phone: 559) 439-4464

Fax: 559) 439-4477

10.2 Effective Date. This Amendment shall become effective as of the date

that the Agency executes this First Implementation Agreement the Effective Date").

10.3 Ratification. The DDA, as implemented hereby, is and shall remain in full

force and effect in accordance with its terms and is hereby ratified and confirmed in all respects.

The execution and delivery of this First I nplementation Agreement shall not operate as a waiver

13330017.2 8

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104256-U03

C5-U03

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16770-U05

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

                     �of or an amendment of any right, power or remedy of either Party in effect prior to the date

hereof.

10.4 Further Cooperation. At all times following the Effective Date, the Parties

agree to execute and deliver, or cause to be executed and delivered, such documents and to do, or

cause to be done, such othe# acts and things as might reasonably be requested to assure that the

benefits of the DDA as inn plemented herein and as implemented by any further Implementation

Agreement) are realized by Ithe Parties.

10.5 Ent irAgreement, Conflict; Amendments. This First Implementation

Agreement and the attachments hereto, which are hereby incorporated into and made a part of

this Agreement, constitutes he entire agreement between the Parties with respect to the matters

set forth herein and there are no representations, warranties or prior understandings with respect

to UCP EG's assumption of!, the DDA and the implementing measures to the DDA except as

expressly set forth herein or any subsequent implementation agreements. In the event of any

conflict between the provisions of this Amendment and the provisions of the DDA, the

provisions of this First Implementation Agreement shall control. No amendment or modification

to the DDA or any Implementation Agreement will be effective unless contained in a writing

signed by both Parties.

10.6 Seve bili  The Parties agree that should any provision of this First

Implementation Agreement be deemed by a court of competent jurisdiction to be unenforceable

under applicable law, the remaining provisions of this agreement shall in no way be affected and

shall remain in full force. Tie Parties also agree that any such provision deemed unenforceable

shall be replaced automatically with an enforceable provision as close as possible, in meaning

and effect, to that deemed unenforceable.

10.7 Inte etation. This First Implementation Agreement shall be interpreted

in accordance with the plain meaning of its terns and not strictly for or against any of the

Parties. The Parties acknowledge that each party and its counsel have reviewed and revised this

agreement and that the rule of construction to the effect that ambiguities are to be resolved

against the drafting party shhl not be employed in the interpretation of this First Implementation

Agreement or any docuinen~ executed and delivered by either Party in connection with the

transactions contemplated by this agreement. The titles or headings of the various sections and

paragraphs of this First Implementation Agreement are intended solely for convenience of

reference and are not intend~d and shall not be deemed to or in any way be used to modify,

explain or place any construction upon any of the provisions of this agreement. Unless the

context shall otherwise requjre, words using the singular or plural number shall also include the

plural or singular number, respectively.

10.8 Counterparts. This First Implementation Agreement may be executed in

any number of counteiparts,each of which shall be deemed to be an original and all of which

together shall compromise but a single instrument.

10.9 Successors and Assigns. The terms and conditions of this First

Implementation Agreement shall be binding upon and shall inure to the benefit of the Parties and

their respective successors and assigns.

13330017.2 9

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104256-U03

C5-U03

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16770-U05

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AGREEMENT-U07

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&-U08

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KARINA-U09

TORRESK-U10

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AGENCY-U012

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AGENCY-U012

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THE-U012

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THE-U012

DEVELOPMENT-U012

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AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

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PROJECT;-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

�10.10 Amendment to Memorandum. Upon UCP EG's request, the Agency shall

cooperate in executing an amendment to the Memorandum which evidences UCP EG's status of

Developer and recognizes the implementation measures to the DDA set forth herein, in form and

substance reasonably satisfactory to the Parties, which shall be recorded in the Official Records.

Signature Page Follows]

13330017.2 10

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104256-U03

C5-U03

AGREEMENTS-U03

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MARCELLAC-U04

16770-U05

7-U06

A.-U07

APPROVE-U07

CONSENT-U07

TO-U07

A-U07

FIRST-U07

IMPLEMENTATION-U07

AGREEMENT-U07

TO-U07

DISPOSITION-U07

DEVELOPMENT-U07

AGREEMENT-U07

294-HOUSING-U08

&-U08

REDEVLOPMENT-U08

TORRES-U09

KARINA-U09

TORRESK-U10

6/20/2011-U011

BETWEEN-U012

THE-U012

REDEVELOPMENT-U012

AGENCY-U012

OF-U012

THE-U012

COUNTY-U012

OF-U012

MONTEREY-U012

UCP-U012

EAST-U012

GARRISON,-U012

LLC-U012

RESPECT-U012

TO-U012

THE-U012

IMPLEMENTATION-U012

OF-U012

THE-U012

DISPOSITION-U012

DEVELOPMENT-U012

AGREEMENT-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

B.-U012

APPROVE-U012

AN-U012

IMPLEMENTATION-U012

AGREEMENT-U012

AMONG-U012

UCP-U012

EAST-U012

GARRISON,-U012

LLC,-U012

MIDPEN-U012

HOUSING-U012

CORPORATION,-U012

COUNTY-U012

OF-U012

MONTEREY,-U012

THE-U012

REDEVELOPMENT-U012

AGENCY-U012

OF-U012

THE-U012

COUNTY-U012

OF-U012

MONTEREY-U012

RESPECT-U012

TO-U012

THE-U012

DEVELOPMENT-U012

OF-U012

AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E


�IN WITNESS WHEREOF, the Parties have executed this Amendment as of the day and

year next to such Party's signature.

UCP EG:

Date: 1,y_ 2011 UCP EAST GARRISON, LLC,

a Delaware limited liability company

By: UCP, LLC, a Delaware limited liability company

Its: Sole Member

By:

Name:

Title:

Date: // 12011

Approved as to Form:

By:

Named 6t-t Qa-r e.c,A-, A)

Title: gATy. Ji1i UoL,As~

13330017.2

THE AGENCY:

DUSTIN BOGUS, COO

6489 Camden Ave, STS. 204

San Jose, CA 95120

REDEVELOPMENT AGENCY OF THE COUNTY

OF MONTEREY

By:

Name:

Title:

Name:

Title:, /vI /, 4 1f 2 %Jig / i7%

 

B x14

Signature Page

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

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FO96184-U03

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16770-U05

7-U06

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AGREEMENT-U07

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RESPECT-U012

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IN-U012

PHASE-U012

1-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

�CONSENT AND AGREEMENT OF THE COUNTY OF MONTEREY

The County of Monterey hereby consents to the terms of the foregoing First

Implementation Agreement between the Agency and UCP EG, and does hereby agree, for itself

and its officers, departments, boards and agencies:

DDA;

1. To cooperate with the Agency and UCP EG in implementing the provisions of the

2. To consider and act upon, in a timely and good faith manner, the matters

submitted to it by the Agency and/or UCP EG;

3. To undertake, in a timely and good faith manner, subject to applicable legal

requirements, those obligations, responsibilities and actions required of the County under and in

furtherance of the DDA, provided that nothing in the DDA shall constrain or limit the County in

the lawful exercise of its discretion in accordance with CEQA and its regulatory responsibilities;

and

4. To be bound by and comply with the terms of the DDA, to the extent expressly

required under the DDA, including but not limited to Section 310 of the DDA, in the

implementation of the Development Agreement and Development Approvals as defined in the

DDA).

Consented to, approved and accepted THE COUNTY:

b

 

y

1

Date: 2011 THE COUNTY OF MONTEREY

Approved as to Form:

By:

Name:tA~A' eq,.4ArcAi

Title: 3C i &unfr'1 cw~JseL-

 

By: \f 11 Tj

 

Title:

Name:

2~a

13330017.2

County Consent

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

FO96183-U03

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FO99828-U03

MG99940-U03

AS99966-U03

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AI103339-U03

DO104256-U03

C5-U03

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7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

A.-U07

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CONSENT-U07

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A-U07

FIRST-U07

IMPLEMENTATION-U07

AGREEMENT-U07

TO-U07

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DEVELOPMENT-U07

AGREEMENT-U07

294-HOUSING-U08

&-U08

REDEVLOPMENT-U08

TORRES-U09

KARINA-U09

TORRESK-U10

6/20/2011-U011

BETWEEN-U012

THE-U012

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AGENCY-U012

OF-U012

THE-U012

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OF-U012

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UCP-U012

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GARRISON,-U012

LLC-U012

RESPECT-U012

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THE-U012

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OF-U012

THE-U012

DISPOSITION-U012

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AGREEMENT-U012

THE-U012

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OF-U012

AFFORDABLE-U012

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IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

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PROJECT;-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

�Attachment No. 5

First Referenced, Section 202 1)

SCHEDULE OF PERFORMANCE

Updated: 2011

Attachment No. 5

 

 

BIB]

 

40742-U01

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LI21329-U03

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FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104256-U03

C5-U03

AGREEMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

A.-U07

APPROVE-U07

CONSENT-U07

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A-U07

FIRST-U07

IMPLEMENTATION-U07

AGREEMENT-U07

TO-U07

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DEVELOPMENT-U07

AGREEMENT-U07

294-HOUSING-U08

&-U08

REDEVLOPMENT-U08

TORRES-U09

KARINA-U09

TORRESK-U10

6/20/2011-U011

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THE-U012

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OF-U012

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RESPECT-U012

TO-U012

THE-U012

IMPLEMENTATION-U012

OF-U012

THE-U012

DISPOSITION-U012

DEVELOPMENT-U012

AGREEMENT-U012

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THE-U012

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THE-U012

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OF-U012

AFFORDABLE-U012

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PHASE-U012

1-U012

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THE-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

��S

lc

EXHIBIT 5

Revised)

I. Schedule of Performance as currently delineated in the DDA will be modified as

follows:

1. PHASE 1

A. Installation of all infrastructure and

completion of all Conditions of Approval

necessary to sell first lot for market rate units.

Timeline shall be as outlined in the Manzanita

Place" Implementation Agreement for Sub-

phases A and B.

B. Close of Escrow for sale of last Market.

Rate Residential Lot

i. Within 3 yrs from completion of

infrastructure and Conditions of

Approval

C. Certificate of Occupancy for last

Market Rate Residential Unit

i. Within 5 yrs of close of escrow

for sale of last market rate lot

2. PHASE 2

A. Installation of all infrastructure and

completion of all Conditions of Approval

necessary to sell first lot for market rate units

B. Close of Escrow for sale of last

Market Rate Residential Lot

C. Certificate of Occupancy for last

Market Rate Residential Unit

Sub-phase A improvements by

September 30, 2012.

Sub-phase B improvements by

March 31, 2013.

3/31/2016

3/31/2021

Initiate infrastructure construction

no later than the Close Of Escrow

of the 250th Market Rate

Residential Unit in Phase 1.

Complete construction of Phase 2

horizontal improvements and

fulfill all Conditions of Approval

for Phase 2 Final Map within 18

months of start.

No later than 3 years after

completion of infrastructure and

Conditions of Approval.

No later than 5 years after the

close of escrow for the sale of the

last Market Rate Residential Lot.

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104256-U03

C5-U03

AGREEMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

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APPROVE-U07

CONSENT-U07

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IMPLEMENTATION-U07

AGREEMENT-U07

TO-U07

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AGREEMENT-U07

294-HOUSING-U08

&-U08

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TORRES-U09

KARINA-U09

TORRESK-U10

6/20/2011-U011

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1-U012

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THE-U012

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PROJECT;-U012

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THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12020�"�|E

��3. PHASE 3

A. Installation of all infrastructure and

Completion of all Conditions of Approval

necessary to sell first lot for market rate units

B. Close of-Escroty for sale of last

Market Rate Residential ot

C. Certificate of Occupancy for last

Market Rate Residential Unit

Initiate infrastructure construction

no later than the Close Of Escrow

of the 250th Market Rate

Residential Unit in Phase 2.

Complete construction of Phase 3

horizontal improvements and

fulfill all Conditions of Approval

for Phase 3 Final Map within 18

months of start.

No later than 3 years after

completion of infrastructure and

Conditions of Approval.

No later than 5 years after the

close of escrow for the sale of the

last Market Rate Residential Lot.

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12020-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104256-U03

C5-U03

AGREEMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

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294-HOUSING-U08

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TORRES-U09

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TORRESK-U10

6/20/2011-U011

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THE-U012

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AGENCY-U012

OF-U012

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OF-U012

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RESPECT-U012

TO-U012

THE-U012

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OF-U012

AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

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THE-U012

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TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

 

 

AGREEMENT A-12021�"�|E

��IMPLEMENTATION AGREEMENT AMONG

UCP EAST GARRISIQN, LLC, MIDPEN HOUSING CORPORATION, COUNTY OF

MONTEREY AND REDEVELOPMENT AGENCY OF THE COUNTY OF MONTEREY

FOR THE PHASE ONE RENTAL AFFORDABLE HOUSING DEVELOPMENT AT

EAST GARRISON PROJECT AT FORT ORD

THIS IMPLEMENTATION AGREEMENT this Agreement") is entered into as of

U L 29, 2011 tie Execution Date") by and among the County of Monterey

County"), the Redevelophnent Agency of the County of Monterey Agency"), UCP East

Garrison, LLC, a Delaware; limited liability company, as Lender/Succeeding Owner" pursuant

to the Consent, Subordination and Recognition Agreement dated January 30, 2007 the

Lender/Succeeding Ownei") and the MidPen Housing Corporation, a California nonprofit

public benefit corporation MidPen"). The Lender/Succeeding Owner, Agency, MidPen and

County may each be referrejd to herein as a Party" or collectively as the Parties."

RECITALS

A. The Lender/$ucceeding Owner has acquired all of the rights, title and interest to

the property and development rights for that development of a residential mixed use project

known as East Garrison heteinafter, the Project"), located on the former Fort Ord, pursuant to

foreclosure process. A map; showing generally the layout of lots for Phase I of the Project is

attached as Exhibit 1.

B. The Lender/$ucceeding Owner has indicated a desire to resume construction

activities under the Agency'Is Disposition and Development Agreement DDA") and the

County's Development Agreement DA") for the Project.

C. One of the obligations under the DDA is the provision of affordable rental

housing in Phase One of theProject. This obligation is intended to be satisfied by the

development of affordable rental housing by MidPen, as evidenced by that Memorandum of

Agreement MOA") dated January 16, 2007, between MidPen and East Garrison Partners I,

LLC, the predecessor in interest to Lender/Succeeding Owner.

D. MidPen has obtained a loan in the amount of Ten Million Dollars $10,000,000)

by, inter alia, the State of California, through its Department of Housing and Community

Development HCD"), for the development of affordable rental housing in Phase One of the

Project, which loan requires that the rental housing be ready for occupancy by September 30,

2012.

E. The terms and conditions of the HCD loan require that construction by MidPen

be substantially complete by June 30, 2012 and that Certificates of Occupancy be issued no later

than September 30, 2012. there are certain Conditions of Approval issued for the Project which

might otherwise delay or impair the ability of MidPen to comply with the timing requirements of

the HCD loan.

F. The intent of this Agreement is to agree on a process to implement the DDA, DA

and MOA in a manner which protects the public health and safety and still allows the timely

development of affordable rental housing consistent with the terns of the HCD loan.

Manzanita Place Implementation Agreement

1

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

GENERAL-U03

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7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

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IMPLEMENTATION-U07

AGREEMENT-U07

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AGREEMENT-U07

294-HOUSING-U08

&-U08

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TORRES-U09

KARINA-U09

TORRESK-U10

6/20/2011-U011

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OF-U012

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UCP-U012

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GARRISON,-U012

LLC-U012

RESPECT-U012

TO-U012

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OF-U012

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DISPOSITION-U012

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AGREEMENT-U012

THE-U012

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GARRISON-U012

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B.-U012

APPROVE-U012

AN-U012

IMPLEMENTATION-U012

AGREEMENT-U012

AMONG-U012

UCP-U012

EAST-U012

GARRISON,-U012

LLC,-U012

MIDPEN-U012

HOUSING-U012

CORPORATION,-U012

COUNTY-U012

OF-U012

MONTEREY,-U012

THE-U012

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AGENCY-U012

OF-U012

THE-U012

COUNTY-U012

OF-U012

MONTEREY-U012

RESPECT-U012

TO-U012

THE-U012

DEVELOPMENT-U012

OF-U012

AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

��G. The Parties hereto agree and understand that at the time of the issuance of the

Certificates of occupancy to MidPen that not all Phase 1 improvements will be complete,

specifically, the Sub-Phase B improvements may not be complete. Nevertheless, that failure of

completion will have no effect and shall not limit, hinder or defeat the issuance of the

Certificates of Occupancy so long as the Sub-phase A improvements are complete as

contemplated herein.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES

CONTAINED IN THIS AGREEMENT, COUNTY, AGENCY, MidPen AND

LENDER/SUCCEEDING OWNER AGREE AS FOLLOWS:

1. Conditions of Approval

1.01. The Parties agree that the following Conditions of Approval are affected by this

Agreement.

i) Condition of Approval No.77 Water System Capacity)

ii) Condition of Approval No. 106 Stormwater Detention Basins)

iii) Condition of Approval No. 133 HOA Brochure)

iv) Condition of Approval No. 146 Burglar Alarms)

v) Condition of Approval No. 157 On-site Private Streets)

vi) Condition of Approval No. 159 Hydrants and Fire Flow)

vii) Condition of Approval No. 160 On-site Streets  Engineering)

viii) Condition of Approval No. 161 On-site Streets  Road Access)

ix) Condition of Approval No. 185 On-site Streets) and

x) Condition of Approval No. 251 Off-site Roads: Reservation/Davis

Intersection and Traffic Signal)

The full description of these Conditions of Approval are set forth in Exhibit 2 to

this Agreement.

1.02. The intent of this Agreement and the Parties thereto is to determine a level of

substantial compliance" with the Phase 1 Conditions of Approval. Substantial

Compliance" shall be achieved in two sub-phases. Sub-phase A activities will

enable the installation of all improvements necessary and appropriate to the

MidPen site so as to allow certificates of occupancy to be issued to the Sixty-Six

66) MidPen residential units. Sub-phase B activities will be the installation of

the balance of the remaining Phase 1 improvements and achievement of all other

Manzanita Place Implementation Agreement

2

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

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DOCUMENTS-U03

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MARCELLAC-U04

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EXECUTE-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

��Conditions of Approval for Phase 1, as set forth herein. Sub-phase B activities

shall be implemented, to the extent feasible, on a concurrent basis with Sub-phase

A activities,; but it is acknowledged that Sub-phase B activities may take longer to

fully implement.

1.03. With respect to Sub-phase A activities, the Parties agree that the

Lender/Succeeding Owner shall be considered to be in substantial compliance

with above-4eferenced Conditions of Approval, if the following occurs with

respect to each such condition:

i) Condition of Approval No.77 Water System Capacity)

Prior,to the delivery of flammable construction materials to the MidPen

site, the Lender/Succeeding Owner shall have completed, tested and

certified the capacity of those fire hydrants and on-site water lines

designated in Exhibit 3 such that the MidPen site shall have adequate fire

protection.

Additionally, prior to the delivery of flammable construction materials to

the NidPen site, MidPen shall have completed, tested and certified the

capacity of those fire hydrants and on-site water lines located with the

MidPlen site, designated as MidPen Hydrants" in Exhibit 3.

ii) Condition of Approval No. 106 Stormwater Detention Basins)

Prior o the date of issuance of a building pen-nit for the MidPen site, the

Lender/Succeeding Owner shall have provided a certification from a

Registered Civil Engineer that the drainage basins serving the MidPen site

as shown on Exhibit 4) are operationally complete and effectively

functioning.

Furth r, Lender/Succeeding Owner shall provide documentation

demo strating it is responsible for operations and maintenance of such

drainage basins until they are accepted by the East Garrison Community

Seivi~es District.

iii) Coiedition of Approval No. 157 On-site Private Streets & Open

Space)

Prior to the delivery of flammable construction materials to the MidPen

site, tl.e Lender/Succeeding Owner shall have completed the asphaltic

concr$te base course for the roads shown on Exhibit 3.

iv) Condition of Approval No.159 Hydrants and Fire Flow)

Prior do the delivery of flammable construction materials to the MidPen

site, the Lender/Succeeding Owner shall have completed, tested and

certified the capacity of those fire hydrants and on-site water lines

designated in Exhibit 3.

Manzanita Place Implementation Agre ment

3

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

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FO99828-U03

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AI103339-U03

DO104258-U03

C1-U03

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DOCUMENTS-U03

7/18/2011-U04

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16770-U05

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CHAIR-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

��Additionally, prior to the delivery of flans nable construction materials to

the MidPen site, MidPen shall have completed, tested and certified the

capacity of those fire hydrants and on-site water lines located within the

MidPen site, designated as MidPen Hydrants" in Exhibit 3.

v) Condition of Approval No. 160 On-site Streets  Engineering)

Prior to the date of the issuance of the first Certificate of Occupancy for

the MidPen site, Lender/Successor Owner shall design and construct all

private streets within Sub-Phase A, as identified on Exhibit 3 in

accordance with the teens of COA No. 160, and shall obtain written

concurrence of the Monterey County Regional Fire District successor to

Salinas Rural Fire Department) of such design. Further, Lender/

Successor Owner shall provide documentation demonstrating it is

responsible for operations and maintenance of such streets until they are

accepted by the East Garrison Community Services District and/or the

umbrella Homeowners Association.

vi) Condition of Approval No. 161 On-site Streets Road Access)

Prior to the delivery of flammable construction materials to the MidPen

site, the Lender/Succeeding Owner shall have completed to a level of all-

weather access the roadways for Sub-phase A as highlighted in Exhibit 3.

vii) Condition of Approval No. 185 Traffic and Circulation)

The signal at Reservation Road and East Garrison Drive shall be fully

activated no later than the date of the issuance of the first Certificate of

Occupancy for the MidPen site. Prior to the activation of the signal, and

upon the commencement of construction activities at the MidPen site,

MidPen shall provide traffic controls, including flagging, consistent with

the Manual on Uniform Traffic Control Devices, at the intersection of

Reservation Road and East Garrison Drive. Further, prior to the delivery

of flammable construction materials to the MidPen site, the

Lender/Succeeding Owner shall have completed to all-weather access the

roads highlighted on Exhibit 3.

Because of the health and safety issues related to the ability to regulate

access to the MidPen site once occupied, failure of the Lender/Succeeding

Owner to fully activate the signal at Reservation Road and East Garrison

Drive by the time set forth above shall prevent the issuance of Certificates

of Occupancy for the MidPen site.

viii) Condition of Approval No. 251 Off-site Roads: Reservation/Davis

Intersection and Traffic Signal)

Prior to September 30, 2011, Lender/Succeeding Owner shall submit

improvement plans for the interim signalization of the Intersection for the

Department of Public Works to review and approve. Said interim

signalization plans shall consist of signalization and related improvements

Manzanita Place Implementation Agreement

4

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

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DOCUMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

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CHAIR-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

��within the existing right of way such as restriping if necessary) to ensure

the Intersection operates at LOS C or better during the construction of

Phase I. Additionally, within six 6) months after the issuance of a

Certificate of Occupancy for the MidPen site, but no later than March 31,

2013j, Lender/Successor Owner shall complete construction of the interim

signailization plans approved by the Department of Public Works. Failure

of the Lender/Succeeding Owner to install and activate the interim signal

at Reservation Road and Davis Road by the time set forth herein, shall

prevent the sale of lots or issuance of building permits other than related

to thtr MidPen site).

Furtl er, Lender/Successor Owner shall conduct annual monitoring of the

intersection as further detailed in Exhibit 4 attached hereto. Attached is

Exhibit 5 detailing the intent of the parties relative to the compliance with

cond tion No. 251. The parties hereto acknowledge and agree that as long

as the Lender/Succeeding Owner is in compliance with the terms and

conditions of Exhibit 5, Condition No. 251 will be deemed satisfied for

the purposes of providing Certificates of Occupancy to the MidPen site.

1.04. With respectto Sub-phase B activities, the Parties agree that the

Lender/Succeeding Owner shall be considered to be in substantial compliance

with above-rferenced Conditions of Approval, if the following occurs with

respect to ea h such condition:

i) Condition of Approval No. 106 Stonnwater Detention Basins)

Withijn six 6) months after the date of the issuance of a Certificate of

Occupancy for the MidPen site, but no later than March 31, 2013,

Lend r/Succeeding Owner shall provide a certification from a Registered

Civil Engineer that the drainage basins for Phase 1 are complete and

operational.

Further, Lender/Succeeding Owner shall provide documentation

demo>Istrating it is responsible for operations and maintenance of such

drainage basins until they are accepted by the East Garrison Community

Services District.

ii) Con4lition of Approval No. 133 HOA Brochure)

Lender/Successor Owner shall create the umbrella Home Owners

Association for Phase I of the East Garrison Project within six 6) months

after the date of the issuance of the first Certificate of Occupancy for the

MidPen site but no later than March 31, 2013, and shall develop and

submit to the County's review, a Homeowner's brochure in compliance

with the terms of COA No. 133.

iii) Condition of Approval No. 146 Burglar Alarms)

Lende$/Successor Owner shall create the umbrella Home Owners

Association for Phase I of the East Garrison Project within six 6) months

Manzanita Place Implementation Agreement

5

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

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AGREEMENT A-12021�"�|E

��after the date of the issuance of the first Certificate of Occupancy for the

MidPen site but no later than March 31, 2013, and shall include in the

Homeowner's brochure information concerning Burglar Alarms in

compliance with the requirements of COA No. 133.

iv) Condition of Approval No. 157 On-site Private Streets & Open Space)

Within six 6) months after the date of issuance of the first Certificate of

Occupancy for the MidPen site but no later than March 31, 2013,

Lender/Successor Owner shall complete construction of all private streets

within Phase 1, except that the private streets and alleys designated on

Exhibit 6 shall be allowed to be constructed to a level of one 1) inch

below finish grade until they are conveyed to the Umbrella Homeowners

Association, at which time they shall be completed to final finish grade.

Until such time as the street are constructed to final finish grade they shall

remain closed to the public.

Further, Lender/Succeeding Owner shall convey such streets, as well as

the proposed open space parcels C and D, and all common area parcels

shown on the Map attached as Exhibit 1, to the umbrella Homeowners

Association, consistent with the requirements of the State Department of

Real Estate, which may include partial conveyances over time, as well as

any applicable provisions in any infrastructure improvement agreements.

Lender/Successor Owner shall be responsible for the maintenance and

operation of all such parcels until they are conveyed to the umbrella

Homeowners Association.

v) Condition of Approval No. 160 On-site Streets  Engineering)

Within six 6) months after the date of the issuance of the first Certificate

of Occupancy for the MidPen site, but no later than March 31, 2013,

Lender/Successor Owner shall design and construct all private streets

within Phase 1, as shown on Exhibit 1, in accordance with the terms of

COA No. 160, except that the private streets and alleys designated on

Exhibit 6 shall be allowed to be constructed to a level of one 1) inch

below finish grade until they are conveyed to the Umbrella Homeowners

Association, at which time they shall be completed to final finish grade.

Until such time as the street are constructed to final finish grade they shall

remain closed to the public.

Lender/Successor Owner shall obtain written concurrence of the Monterey

County Regional Fire District successor to Salinas Rural Fire

Department) of such design of all private streets. Further, no later than

March 31, 2013, Lender/ Successor Owner shall provide documentation

demonstrating it is responsible for operations and maintenance of such

streets until they are accepted by the East Garrison Community Services

District and/or the umbrella Homeowners Association.

Manzanita Place Implementation Agreement

6

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

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IN-U012

PHASE-U012

1-U012

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THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

��vi) Condition of Approval No. 161 On-site Streets Road Access)

Within six 6) months after the date of the issuance of the first Certificate

of Occupancy for the MidPen site, but no later than March 31, 2013,

Lender/Successor Owner shall complete finished construction all private

streets within Phase 1 in accordance with the terms of COA No. 160 and

161, except that the private streets and alleys designated on Exhibit 6 shall

be allowed to be constructed to a level of one 1) inch below finish grade

until they are conveyed to the umbrella Homeowners Association, at

which time they shall be completed to final finish grade. Until such time

as th6 street are constructed to final finish grade they shall remain closed

to th4 public.

vii) Coi dition of Approval No. 185 Traffic and Circulation)

Within six 6) months after the date of the issuance of the first Certificate

of Occupancy for the MidPen site, but no later than March 31, 2013,

Lend r/Successor Owner shall complete construction of all private streets

within Phase I in accordance with approved local engineering standards

and Specific Plan guidelines, except that the private streets and alleys

designated on Exhibit 6 shall be allowed to be constructed to a level of one

1) inch below finish grade until they are conveyed to the umbrella

Homeowners Association, at which time they shall be completed to final

finislij grade. Until such time as the street are constructed to final finish

grade; they shall remain closed to the public. Further, no later than March

31, 2Q13 Lender/Successor Owner shall provide documentation

demoiistrating it is responsible for operations and maintenance of such

streets until they are accepted by the East Garrison Community Services

Distript and/or the umbrella Homeowners Association.

2. Conveyance of Property

Upon approval and execution of this Agreement by the Agency and County, the terns and

conditions required for Lender/Successor Owner to convey the MidPen site to MidPen, pursuant

to the terms of the DA, DDA and Assignment and Assumption Agreement between

Lender/Successor and MidP n, shall be deemed to be in substantial compliance. The Agency and

the County hereby approve ie future transfer of the MidPen site to MidPen in accordance with

the DA, DDA, and Assigmn~nt and Assumption Agreement. Notwithstanding anything herein to

the contrary, the transfer of the MidPen site to MidPen is contingent upon Lender/Successor

and MidPen entering into a mutually agreeable Purchase Agreement with terns including, but

not limited to, MidPen obtaiiing funding necessary to construct and complete the contemplated

improvements.

2.01. Lender/Successor Owner and MidPen shall expedite such actions as necessary to

complete the transfer of the site to MidPen on or before September 15, 2011.

2.02. The failure of Lender/Successor Owner to complete the conditions required in this

Agreement by the date of the issuance of a Certificate of Occupancy for the

Manzanita Place Implementation Agreement

7

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

GENERAL-U03

DOCUMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

A.-U07

APPROVE-U07

CONSENT-U07

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A-U07

FIRST-U07

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AGREEMENT-U07

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294-HOUSING-U08

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6/20/2011-U011

BETWEEN-U012

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GARRISON,-U012

LLC-U012

RESPECT-U012

TO-U012

THE-U012

IMPLEMENTATION-U012

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THE-U012

DISPOSITION-U012

DEVELOPMENT-U012

AGREEMENT-U012

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APPROVE-U012

AN-U012

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AMONG-U012

UCP-U012

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GARRISON,-U012

LLC,-U012

MIDPEN-U012

HOUSING-U012

CORPORATION,-U012

COUNTY-U012

OF-U012

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THE-U012

REDEVELOPMENT-U012

AGENCY-U012

OF-U012

THE-U012

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OF-U012

MONTEREY-U012

RESPECT-U012

TO-U012

THE-U012

DEVELOPMENT-U012

OF-U012

AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

��MidPen site shall be the responsibility of Lender/Successor Owner and shall not

interfere with the issuance of the Certificate of Occupancy if MidPen has met all

conditions related to its development of the site and all Sub-phase A

improvements are complete. To the extent that any party other than

Lender/Successor Owner incurs any costs resulting from the failure of

Lender/Successor Owner to timely comply with the obligations described in

Sections 1, 2 or 3 of this Agreement, such party reserves all its rights to seek

compensation from Lender/Successor Owner.

2.03. A specific condition of the conveyance of the property to MidPen will be a

condition that the ultimate rental contract between MidPen and their end users

Renters") will contain strong and specific language regarding the Renters

understanding of the limits and boundaries of the Phase 3 property. Specifically,

it will need to be clearly understood and stated that there will be a zero tolerance

policy towards any trespassing, vandalism or malicious activity by Renters and/or

their dependents, guests or invitees on or about the Phase 3 property.

3. Further Implementing Activities.

3.01. To further implement the provision of Phase I Affordable Rental Housing

pursuant to the DDA and DA, Lender/Succeeding Owner agrees to take the

following actions by the following time periods:

a) To use commercially reasonable efforts to provide permanent

power to the MidPen site as soon as is feasible; and

b) To use commercially reasonable efforts to cause the sewer lift

station to be operational as soon as is feasible; and

c) Obtain a Will Serve" letter from MCWD that identifies that water

and sewer are available to the MidPen site.

4. Payment of Funds.

4.01. As part of the implementation of the DDA, and MOA with respect to MidPen, as

well as implementation of MidPen's loan from HCD, the Agency will incur

certain costs. Those costs were estimated and included in the loan application

which resulted in the HCD award, and MidPen hereby agrees to pay the Agency a

Project Implementation Fee" in the amount of One Hundred Thousand Dollars

$100,000) to pay for the services being provided by the Agency for this portion

of the project.

4.02. Payment of the Project Implementation Fee shall be made in the following

manner:

a. MidPen shall pay one-half of the Project Implementation Fee to the

gency no later than thirty 30) days after approval of this Agreement.

Manzanita Place Implementation Agreement

8

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

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16770-U05

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IMPLEMENTATION-U012

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AMONG-U012

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DEVELOPMENT-U012

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AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

                     �b. MidPen shall pay the remaining Project Implementation Fee to the Agency

no later than the issuance of the Certificate of Occupancy for the MidPen

site.

5. No Promise orRepresentation as to Future Actions.

Lender/Succeeding Owner, MidPen, Agency and County agree that nothing in this

Agreement is to be construed as a representation, promise, or commitment on the part of the

County or Agency to give special treatment to, or exercise its discretion favorably for, the

Project or Lender/Succeeding Owner or MidPen with respect to any changes or variances in the

Project. The purpose of this Agreement is to implement the existing Project as it pertains to the

development of Affordably Rental Housing in Phase I.

6. Other A egr ements Remain in Place.

All other agreements between and/or among the County, Agency, Lender/Successor

Owner or MidPen, or such'iof them as may exist, remain in place and effect. This Agreement

merely implements the DD A and DA, and any changes or amendments to those agreements must

be made in separate documjents.

7. Indemnification.

The Lender/Succeeding Owner and MidPen shall each defend, indemnify, and hold

harmless the County and Agency from and against any and all claims, liabilities, or losses in any

action brought by any third! party challenging the validity of this Agreement or the authority of

the County or Agency to eater into this Agreement. This indemnification shall survive any

termination of this Agreement.

8. Assignment.

Neither the Lender/succeeding Owner nor MidPen may assign, sell, mortgage,

hypothecate or otherwise transfer its obligations under this Agreement except as part of a

financial transaction or transfer to a transferee or assignee as permitted under or as otherwise

approved in writing by the County and Agency. This Agreement and the rights, privileges,

duties, and obligations of the Parties hereunder shall be binding upon and inure to the benefit of

the parties hereto and their respective, successors and permitted assigns.

9. Amendment.

This Agreement may be amended or modified only by an instrument in writing signed by

all the Parties hereto.

10. Authori to implement this Agreement.

The Director of Housing and Redevelopment shall have the authority to implement this

Agreement on behalf of the County and Agency, and to enter into such clarifying and/or

administrative memoranda or other documentation as he or she deems appropriate to carry out its

purpose and intent, provided that any change to a material term of this Agreement shall require

approval of both the Board of Supervisors of the County of Monterey and the Board of Directors

of the Redevelopment Agency of the County of Monterey. Lender/Succeeding Owner represents

Manzanita Place Implementation Agreement

9

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

GENERAL-U03

DOCUMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

A.-U07

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TORRESK-U10

6/20/2011-U011

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THE-U012

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RESPECT-U012

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AGREEMENT-U012

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AMONG-U012

UCP-U012

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GARRISON,-U012

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COUNTY-U012

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AGENCY-U012

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THE-U012

COUNTY-U012

OF-U012

MONTEREY-U012

RESPECT-U012

TO-U012

THE-U012

DEVELOPMENT-U012

OF-U012

AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

�and warrants that any individual executing or amending this Agreement on behalf of the

Lender/Succeeding Owner has been authorized by Lender/Succeeding Owner to enter into and

implement this Agreement on behalf of the Lender/Succeeding Owner and to bind the

Lender/Succeeding Owner to the terms and conditions of the same. MidPen represents and

warrants that any individual executing or amending this Agreement on behalf of MidPen has

been authorized by MidPen to enter into and implement this Agreement on behalf of MidPen and

to bind the MidPen to the terms and conditions of the same.

11. Waiver.

The failure of a Party hereto at any time or times to require performance of any provision

hereof shall in no manner affect its right at a later time to enforce the same. No waiver by a

Party of any condition or of any breach of any tern contained in this Agreement shall be

effective unless in writing and signed by the Parties hereto, and no waiver in any one or more

instances shall be deemed to be a further or continuing waiver of any such condition or breach in

any other instance or a waiver of any other condition or breach of any other term.

12. Governing Law.

This Agreement shall be construed, interpreted and governed by the laws of the State of

California, without regard to conflicts of law principles.

13. Negotiated Agreement.

The Parties acknowledge that each Party has reviewed and revised this Agreement and

that the normal rule of construction to the effect that any ambiguities are to be resolved against

the drafting Party shall not be employed in the interpretation of the Agreement.

14. Relationship of Parties.

This Agreement establishes only a funding and reimbursement arrangement between the

Parties, and nothing in this Agreement establishes a partnership or joint venture among the

Parties.

15. Notices.

Notice to the Parties in connection with this Project Reimbursement Agreement shall be

given personally, by first class, certified, or registered mail, or by an express mail delivery

service addressed as follows except as any Party may otherwise direct in writing to the other

Parties):

TO COUNTY AND AGENCY: Director, Redevelopment and Housing Office

County of Monterey

168 West Alisal, Third Floor

Salinas, CA 93901

Manzanita Place Implementation Agreement

10

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

GENERAL-U03

DOCUMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

A.-U07

APPROVE-U07

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TORRES-U09

KARINA-U09

TORRESK-U10

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MONTEREY-U012

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AFFORDABLE-U012

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IN-U012

PHASE-U012

1-U012

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THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E


�TO LENDER/SUCCEEDING OWNER:

UCP East Garrison, LLC

James W. Fletcher, Vice-President

6489 Camden Avenue, Suite 204

San Jose, CA. 95120

TO MIDPEN HOUSING CORPORATION:

MidPen Housing Corporation

303 Vintage Park Drive

Suite 250

Foster City, CA 94404

Notice shall be deemed efffctive at the time of personal delivery, five days after the notice is

deposited in the United States registered or certified mail, properly addressed, with postage

prepaid, or on the day of delivery if notice is sent by express mail delivery service.

16. Entire A eemeLt.

This Agreement constitutesjthe entire agreement between MidPen, Lender/Succeeding Owner,

Agency and County respecting the implementation of the DDA and DA with regard to the

provision of Affordable Re>;Ital Housing for Phase I of the East Garrison Project and shall

supersede all prior negotiatijons, representations or agreements, either written or oral, among the

Parties with respect to this issue. County, Agency, MidPen and Lender/Succeeding Owner each

represent that neither has relied on any promise, inducement, representation, or other statement

made in connection with this Agreement that is not expressly contained herein.

20. Counterparts

This Agreement may be exejcuted in counterparts.

IN WITNESS WHEREOF, the County, Agency, Lender/Succeeding Owner and MidPen have

executed this advance funding Agreement as of the day and year written below.

Manzanita Place Implementation Agreement

11

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

GENERAL-U03

DOCUMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

A.-U07

APPROVE-U07

CONSENT-U07

TO-U07

A-U07

FIRST-U07

IMPLEMENTATION-U07

AGREEMENT-U07

TO-U07

DISPOSITION-U07

DEVELOPMENT-U07

AGREEMENT-U07

294-HOUSING-U08

&-U08

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TORRES-U09

KARINA-U09

TORRESK-U10

6/20/2011-U011

BETWEEN-U012

THE-U012

REDEVELOPMENT-U012

AGENCY-U012

OF-U012

THE-U012

COUNTY-U012

OF-U012

MONTEREY-U012

UCP-U012

EAST-U012

GARRISON,-U012

LLC-U012

RESPECT-U012

TO-U012

THE-U012

IMPLEMENTATION-U012

OF-U012

THE-U012

DISPOSITION-U012

DEVELOPMENT-U012

AGREEMENT-U012

THE-U012

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GARRISON-U012

PROJECT;-U012

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AN-U012

IMPLEMENTATION-U012

AGREEMENT-U012

AMONG-U012

UCP-U012

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GARRISON,-U012

LLC,-U012

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CORPORATION,-U012

COUNTY-U012

OF-U012

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THE-U012

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AGENCY-U012

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THE-U012

DEVELOPMENT-U012

OF-U012

AFFORDABLE-U012

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IN-U012

PHASE-U012

1-U012

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AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

�Date: a  i 07

APP OVED AS TO FORM:

Kay R mane

Deputy County Counsel

Date:

AND-

Date:

APPROVEDAS TO FORM:

Kay Rmann

Deputy County Counsel

Date: Zk

AND-

COUNTY:

COUNTY OF MONTEREY

AGENCY:

Manzanita Place Implementation Agreement

12

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

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7/18/2011-U04

MARCELLAC-U04

16770-U05

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UCP-U012

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GARRISON,-U012

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COUNTY-U012

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THE-U012

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AGENCY-U012

OF-U012

THE-U012

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THE-U012

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IN-U012

PHASE-U012

1-U012

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THE-U012

EAST-U012

GARRISON-U012

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C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

�LENDER/SUCCEEDING OWNER:

UCP East Garrison, LLC, a Delaware Limited

Liability Company

BY: UCP, LLC, a Delaware Limited Liability

Company, its sole member

Date:,~~.~,~, 1.1n 1'L-y

Dustin L. Bogue, President

AND-

Manzanita Place Implementation Agreement

13

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

GENERAL-U03

DOCUMENTS-U03

7/18/2011-U04

MARCELLAC-U04

16770-U05

7-U06

A.-U07

APPROVE-U07

CONSENT-U07

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AGREEMENT-U07

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294-HOUSING-U08

&-U08

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TORRES-U09

KARINA-U09

TORRESK-U10

6/20/2011-U011

BETWEEN-U012

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GARRISON,-U012

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AMONG-U012

UCP-U012

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GARRISON,-U012

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COUNTY-U012

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THE-U012

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AGENCY-U012

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COUNTY-U012

OF-U012

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RESPECT-U012

TO-U012

THE-U012

DEVELOPMENT-U012

OF-U012

AFFORDABLE-U012

HOUSING-U012

IN-U012

PHASE-U012

1-U012

OF-U012

THE-U012

EAST-U012

GARRISON-U012

PROJECT;-U012

C.-U012

AUTHORIZE-U012

THE-U012

CHAIR-U012

TO-U012

EXECUTE-U012

BOTH-U012

AGREEMENTS.-U012

 

 

AGREEMENT A-12021�"�|E

��MIDPEN HOUSING CORPORATION

Date: June 17, 2011

MidPen Housing Corporation, a California

nonprofit public benefit corporation

BY:

By:

Matthew 0. Franklin

Manzanita Place Implementation Agreement

14

 

 

BIB]

 

40742-U01

AGREEMENT-U02

A-12021-U02

LI21329-U03

FO96183-U03

FO96184-U03

FO99828-U03

MG99940-U03

AS99966-U03

AS99970-U03

AI103339-U03

DO104258-U03

C1-U03

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AGREEMENT A-12021�"�|E

��OPEN SPACE TYP)

wro

MONTEREY COUNTY

FIRE STATION

EXHIBIT 1

EAST GARRISON PHASE I

PARKMETENTION BASIN

DRAWING PATH: T:1Monterey Projects126151CAD1Exhibits-WE\Mid Pen Implementation Agreementll-Phase 1.dwg

CALIFORNIA

DATE: JUNE 16, 2011

SCALE:

DRAWN:

1"  400'

APH

CHECKED: RPW

PROJECT No.: 2615.00

SHEET

1

OF 6

WHITSON ENGINEERS  9699 BLUE LARKSPUR LANE, SUITE 105  MONTEREY, CALIFORNIA 93940  TEL 831) 649-5225  FAX 831)373-5065  WWW.WHITSONENGINEERS.COM

 

 

BIB]

 

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AGREEMENT A-12021�"�|E

��EXHIBIT 2

Conditions of Approval

in this

Implementation Agreement

77 PUBLIC SERVICES: Based on MCWD's Water Distribution System Master Plan,

Capital Improvement Program, Table 7-1, MCWD will be required to construct new

reservoirs by Year 2007, or as determined by MCWD, based on water demands modeled

within their system. Prior to issuance of the first building permit for commercial

development within the EGSP, the project applicant shall be required to obtain written

verification from MCWD that sufficient fire flow/fire suppression capacity is available in

the Existing Reservoir F", or excess storage in Zone C or that the capacity in the new

reservoir is available to accommodate the commercial fire flow suppression requirements

associated with commercial development of the EGSP. If any portion of the commercial

development is accelerated within the EGSP area to occur in earlier phases of project

implementation, the project applicant shall be required to coordinate with MCWD to

determine whether a portion of the existing excess storage in Zone C could be reserved

for commercial fire flow. Such reservation would need to be confirmed and validated in

writing by MCWD, and would need to be balanced against any remaining capacity for

residential development. Fire, Planning and Building Inspection)

106 WR8  COMPLETION CERTIFICATION: Certification that stormwater detention

facility has been constructed in accordance with approved plans shall be provided to the

County Water Resources Agency by a registered civil engineer or licensed contractor

who constructed the facility. Water Resources Agency)

133 WRSP  NON-STANDARD  HOA BROCHURE: The applicant shall prepare a

homeowner's brochure that describes the following:

 Homeowner BMPs for preventing siltation and providing clean runoff.

 The importance of the adjacent land areas and provides recommendations for

landscaping and wildfire protection. The brochure shall also describe measures for

protecting wildlife and vegetation in the habitat areas.

 Provide ridesharing, public transportation and nearby child care facilities information

to tenants and property owners.

Water Resources Agency)

146 SP  NON-STANDARD  SAFETY: Businesses and homeowners installing alarm

systems or concerned with neighborhood safety should consult with the Sheriffs Office.

Businesses in the Town Center should also consult with the Sheriff's Office regarding

landscaping safety. Sheriff)

157 PBDSP  NON-STANDARD  OPEN SPACE: The proposed open space and common

area parcels C and D parcels) and private roads shall be conveyed to the Homeowners'

Association, non-profit organization, or CSD, as appropriate. Planning and Building

Inspection, Public Works)

Page 1 of 3

 

 

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DO104258-U03

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16770-U05

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AGREEMENT A-12021�"�|E

��159 FIRE030NON-STANDARD- HYDRANTS AND FIRE FLOW: Hydrants for fire

protection shall'be provided at locations approved by the Salinas Rural Fire District and

shall conform to the following requirements:

a. FIRE FLOW  BUILDINGS OTHER THAN ONE-AND TWO-FAMILY

DWELLINGS  Pursuant to Uniform Fire Code Appendix III-A, the minimum fire

flow requirement for buildings other than one- and two-family dwellings with

automatic fl a sprinkler systems installed is 1,500 gallons per minute with a duration

of 20 psi under normal operating conditions for a duration of 2 hours. Buildings with

Type V-N construction that are greater than 20,600 square feet shall require up to

2,000 gallons per minute with a residual pressure of 20 psi under normal operating

conditions fdr a duration of up to 4 hours, as prescribed by the Uniform Fire Code.

b. FIRE FLOW,  ONE- AND TWO-FAMILY DWELLINGS  Pursuant to Uniform

Fire Code Appendix III-A, the basic minimum fire flow requirement for one- and

two-family dwellings with automatic fire sprinkler systems installed is 500 gallons

per minute with a residual pressure of 20 psi under normal operating conditions for a

duration of 2 hours.

c. TIMING OF INSTALLATION  Approved fire protection water supply systems must

be installed and made serviceable prior to the time of construction.

d. HYDRANT/ IRE VALVE LOCATION)  The hydrant or fire valve shall be 18

inches above grade, 8 feet from flammable vegetation, no closer than 4 feet nor

further than 12 feet from a roadway, and in a location where fire apparatus using it

will not block] the roadway.

e. FIRE HYDRANTS  Hydrants shall be installed in accordance with spacing set forth

in Uniform Fire Code Appendix III-B and in accordance with the following

specifications

f. HYDRANT SIZE  The hydrant shall have a minimum of two 2) 2-1/2 inch outlets

NST and one 1) 4-1/2 inch outlet NST. The riser shall be a minimum of six 6)

inches and shall be wet barrel type with a coefficient of 0.9.

g. SIGNING OF WATER SOURCES  Hydrant or fire valve identification may be

allowed as specified in the State Fire Marshal's Guidelines for Fire Hydrant

Markings alon~ State Highways and Freeways, May 1988.

Salinas Rural Fire District.)

160 FIRE002  ROADWAY ENGINEERING: The grade for all roads shall not exceed 15

percent. Where road grades exceed 8 percent, a minimum structural roadway surface of

0.17 feet of asphaltic concrete on 0.34 feet of aggregate base shall be required. The

length of vertical curves in roadways, exclusive of gutters, ditches and drainage structures

designed to hold or; divert water, shall not be less than 100 feet. No roadway turn shall

have a horizontal inside radius of less than 50 feet. A roadway turn radius of 50 to 100

feet is required to have an additional 4 feet of roadway surface, or as approved by the

Salinas Rural Fire District. A roadway turn radius of 100 to 200 feet is required to have

an additional 2 feet of roadway surface, or as approved by the Salinas Rural Fire District.

Roadway turnarounds shall be required on dead-end roads in excess of 150 feet of surface

length. The minimum turning radius for a turnaround shall be 40 feet from the center line

Page 2 of 3

 

 

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AGREEMENT A-12021�"�|E

��of the road. If a hammerhead/T is used, the top of the T" shall be a minimum of 60 feet

in length. Salinas Rural Fire District.)

161 FIRE030  NON-STANDARD  ROAD ACCESS: Access roads shall be required for

every building when any portion of the exterior wall of the first story is located more than

150 feet from fire department access. All roads shall be constructed to provide a

minimum width of 20 feet with an unobstructed vertical clearance of not less than 15 feet.

The width may be reduced to 18 feet on neighborhood streets when rolled curb and

drivable sidewalks have been provided with the approval of the Salinas Rural Fire

District. One-way roads shall be not less than 14 feet wide, shall be connected to two-

way roads on both ends, shall have rolled curbs and drivable sidewalks. Additional width

shall be provided for on-street parking. Roads with street widths of less than 20 feet shall

have signs and other street furniture on only one side of the street. Drivable sidewalks

shall be constructed to support the weight of the fire engine 22 tons). The roadway

surface shall provide unobstructed access to conventional drive vehicles including sedans

and fire apparatus and shall be an all-weather surface designed to support the imposed

load of fire apparatus 22 tons). Each road shall have an approved name. Salinas Rural

Fire District)

185 PWSPNON-STANDARD  TRAFFIC AND CIRCULATION: In addition to the

FORA impact fee, the applicant shall construct at its cost or cause to be constructed all

streets and roads within the Project. All roads shall be maintained by a Community

Services District CSD) or other suitable or appropriate entity. All roads and traffic

improvements shall be constructed in accordance with acceptable local engineering

standards and Specific Plan standards. Public Works)

251 PWSP0079  TRAFFIC AND CIRCULATION  RESERVATION ROAD/DAVIS

ROAD INTERSECTION IMPROVEMENTS: Applicant shall construct intersection

improvements and install a traffic signal at the intersection of Reservation Road and

Davis Road. This intersection shall be designed to operate at level of service LOS) C or

better in the year of project buildout with a street section approved by the Public Works

Director. Public Works)

Page 3 of 3

 

 

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AI103339-U03

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AGREEMENT A-12021�"�|E

��CHAMBERLAIN AVE

 

INTERIM ALL WEATHER ROCK

i  11 f 1 1 I 1 ROAD FOR SECONDARY EVA

ACCESS

S COMPLETED FIRE HYDRANT BY UCP

A COMPLETED FIRE HYDRANT BY

MID-PEN

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SEWER

PUMP

STATION

LEGEND

MANZANITA PLACE PROJECT SITE

INTERIM ACCESS ROADS FOR THE

MANZANITA PLACE PROJECT

INTERIM STREET BARRICADE FOR

THE MANZANITA PLACE PROJECT

DATE: JUNE 16, 2011

SCALE:

DRAWN:

1"=400'

APH

CHECKED: RPW

PROJECT No.: 2615.00

SHEET

3

WHITSON ENGINEERS  9699 BLUE LARKSPUR LANE, SUITE 105  MONTEREY, CALIFORNIA 93940  TEL 831) 649-5225  FAX 831)373-5065  WWW.WHITSONENGINEERS.COO

MONTEREY COUNTY

EXHIBIT 3

EAST GARRISON SUB PHASE A IMPROVEMENTS

TRAFFIC SIGNAL TO BE

OPERATIONAL BY MANZANITA

PLACE OCCUPANCY

CALIFORNIA

DRAWING PATH: T:1Monterey Projects126151CAD\Exhibits-WE\Mid Pen Implementation Agreementl3-Sub Phase A.dwg

MANZANITA

PLACE PROJECT

SITES

McOLEUM4 OIRCLE  i

 

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FO99828-U03

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AS99970-U03

AI103339-U03

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AGREEMENT A-12021�"�|E

��R WA110N ROAD

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MONTEREY COUNTY

EXHIBIT 4

EAST GARRISON MANZANITA PLACE STORMWATER BASINS

DRAWING PATH: T:\Monterey Projects\2615\CAD\Exhibits-WE\Mid Pen Implementation Agreement\4-Basins.dwg

CALIFORNIA

DATE: JUNE 16, 2011

SCALE:

DRAWN:

1"  500'

APH

CHECKED: RPW

PROJECT No.: 2615.00

SHEET

WHITSON ENGINEERS  9699 BLUE LARKSPUR LANE, SUITE 105  MONTEREY, CALIFORNIA 93940  TEL(831)649-5225  FAX 831)373-5065  WWW.WHITSONENGINEERS.COM

OF 6

 

 

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MG99940-U03

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AI103339-U03

DO104258-U03

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MARCELLAC-U04

16770-U05

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AGREEMENT A-12021�"�|E

��EXHIBIT 5

SCHEDULE OF MONITORING/IMPROVEMENTS

DAVIS ROAD/RESERVATION ROAD INTERSECTION

DATE REQUIRED ACTION

No later than Submission of updated Improvement Plans for Reservation

September 30, Rd/Davis Rd intersection, including responses to prior plan check

2011 comments. Additionally, submission of plans for interim

 signalization within existing rights of way for review and approval

 by Department of Public Works

No later than epartment of Public Works reviews and approves/provides

October 31, 2011 comments on Improvement Plans and interim signalization plans

No later than Completion of interim signalization improvements

March 31, 2013

May, 2013 precise egin monitoring of Level Of Service for Intersection, continue on

dates per Dept. of annual basis with the precise dates set by Department of Public

Public Works) Works. If monitoring shows decrease of LOS to D or lower,

 institute further interim improvements sufficient to raise level of

 service to LOS C within six 6) months.

As required to Completion of COA No. 251 in full.

ensure LOS C at

intersection, but

not later than the

close of escrow for

the sale of the

250th lot in Phase

II

 

 

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AGREEMENT A-12021�"�|E

��WW

MONTEREY COUNTY

EXHIBIT 6

CALIFORNIA

COA 157: STREETS AND ALLEYS ALLOWED TO BE ONE INCH BELOW FINISHED GRADE

DRAWING PATH: T:\Monterey Projects\2615\CAD\Exhiblts-WE\Mid Pen Implementation Agreement\6-Streets and Alleys.dwg

STREETS AND ALLEYS ALLOWED

TO BE ONE INCH BELOW

FINISHED GRADE UNTIL

CONVEYANCE TO HOA

DATE: JUNE 16, 2011

SCALE:

DRAWN:

1"  400'

SH

CHECKED: RPW

PROJECT No.: 2615.00

SHEET

WHITSON ENGINEERS  9699 BLUE LARKSPUR LANE, SUITE 105  MONTEREY, CALIFORNIA 93940  TEL 831) 649-5225  FAX 831)373-5065  WWW.WHITSONMINEERS.COM

6

OF 6

 

 

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SIGNED BOARD REPORT"�|E

��MONTEREY COUNTY BOARD OF SUPERVISORS

MEETING: June 28, 2011 AGENDA NO.:

SUBJECT a. Approve and Consent to a First Implementation Agreement to Disposition and

Developmennl Agreement between the Redevelopment Agency of the County of

Monterey and UCP East Garrison, LLC with respect to the implementation of the

Disposition And Development Agreement for the East Garrison Project;

b. Approve an $mplementation Agreement Among UCP East Garrison, LLC, Midpen

Housing Co oration, County of Monterey, and the Redevelopment Agency of the

County of onterey with respect to the development of affordable housing in

Phase 1 of te East Garrison Project; and

c. Authorize the Chair to execute both agreements

DEPARTMENT: RMA

Mousing & Redevelopment Office

RECOMMENDATION:

It is recommended that the Board of Supervisors:

a. Approve and Consent to a First Implementation Agreement to Disposition and Development

Agreement between the I Redevelopment Agency of the County of Monterey and UCP East

Garrison, LLC with respect to the implementation of the Disposition and Development

Agreement for the East G irrison Project;

b. Approve an Implementation Agreement Among UCP East Garrison, LLC, Midpen Housing

Corporation, County of Monterey, and the Redevelopment Agency of the County of Monterey

with respect to the development of affordable housing in Phase 1 of the East Garrison Project; and

c. Authorize the Chair to ex cute both agreements.

SUMMARY:

The recommended actions will allow for the immediate resumption of work on Phase 1 of the East

Garrison Project, a mixed use development of up to 1,470 dwelling units, some 34,000 square feet of

commercial, retail and community uses the Town Center"), and the rehabilitation of the Historic

District. The First Implementation Agreement adjusts the time for performance of development to

reflect current market conditions, and allows the Developer to phase the development of Workforce II

Housing across all three phases rather than require it only in Phase 3. The Implementation Agreement

with the County, Redevelopment Agency, the Developer, and MidPen Housing Corporation

MidPen") sets forth the terms and conditions by which the affordable rental housing component of

Phase 1 can be accelerated, in odder to meet State funding requirements.

DISCUSSION:

The Disposition and Development Agreement DDA") for the East Garrison Project was approved in

2006, but the housing market crisis resulted in the foreclosure of the property in 2009. The property

was purchased by UCP East Garrison, LLC UCP EG") towards the end of 2009. UCP EG has been in

discussions with the Redevelopment Agency over how to restart the East Garrison Project in a manner

that promotes job creation duriig the economic downturn and encourages the development of housing

now, when it is most affordable. The First Implementation Agreement does not make any major

changes to the obligations in the DDA; rather, it primarily adjusts the performance schedule to reflect

better the market conditions.

Among the developer obligatiois under the DDA is the provision of affordable rental housing in each

of the three phases of the project. Under the DDA, this obligation may be accomplished with the aid of

affordable housing providers, s ich as MidPen. In 2010, the State of California made funds available

 

 

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SIGNED BOARD REPORT"�|E

��for the development of affor able rental housing and, working with the Redevelopment Agency,

MidPen was awarded $10 million to facilitate the development of the East Garrison Phase 1 affordable

housing referred to as Manzaita Place").

In order to meet the timing re uirements for the $10 million award, construction on Manzanita Place

needs to begin in July, 2011 and certificate(s) of occupancy issued by the end of July, 2012. To meet

this schedule, and after extended consultation with affected departments and agencies, certain

conditions of approval will be considered to be in substantial conformance" to allow the issuance of

necessary permits, if specific actions are taken within specific time periods, as detailed in the

Agreement.

OTHER AGENCY INVOLV MENT:

These Implementation Agreements were negotiated under the direction of the Ad Hoc Fort Ord

Subcommittee on Real Estate Negotiations. The specific terms and conditions related to implementing

the Manzanita Place affordable rental housing portion of the project have been reviewed and concurred

in by appropriate staff from the Planning, Building and Public Works departments, as well as the Water

Resources Agency and the Mo terey County Regional Fire District.

FINANCING:

These actions will have no impact on the General Fund. As part of the East Garrison Project, certain

staff costs are paid for by the Developer, pursuant to existing reimbursement agreements. Additionally,

development at East Garrison will trigger the payment of fees. Other costs associated with the East

Garrison Project are paid for o of Fort Ord redevelopment funds.

r

Kathryn eimann

Deputy County Counsel

Date:

Attachments:

First Implementation Agreement

Implementation Agreement

ook, Direcfor

using and Redevelopment

Date:

 

 

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