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HomeMy WebLinkAboutItem 8.1 DubRanA6A7ModelHomes CITY CLERK File # 600-60 AGENDA STATEMENT CITY COUNCIL MEETING DATE: JULY 17, 2001 SUBJECT: Interim Agreement between City and Toll CA II, L.P. for Issuance of Building Permits for Model Homes in Dublin Ranch Areas A-6 and A-7 (Report prepared by Eddie Peabody, Community Development Director) ATTACHMENTS: RECOMMENDATION: ~ 2. Interim Agreement Between the City of Dublin and Toll CA II, L.P. for Areas A-6 and A-7 of Dublin Ranch Area A Receive Staff's presentation Authorize Mayor to sign Interim Agreement. FINANCIAL STATEMENT: None. DESCRIPTION: The City Council will consider adoption of an ordinance to approve a development agreement with Toll CA II, L.P., the developer of Areas A-6 and A-7 of Dublin Ranch Area A. If adopted tonight, the development agreement will become effective in 30 days. Once the development agreement is effective, and the developer has complied with all other requirements, the City may issue building permits for construction of homes within the development. In the interim, the developer has asked for permission to begin construction of model homes. The purpose of this interim agreement is to provide assurance to the City that, if an application is received for a building permit for a model home prior to the effective date of the development agreement, all other requirements are satisfied for issuance of such a permit and the city issues such a building permit, all risks associated with issuance of a building permit prior to the effective date of the development agreement are borne by the developer. The City entered into a similar agreement with the developer of the Emerald Pointe Business Park. The interim agreement would allow for the issuance of no more than four building permits for model homes in Area A-6 and four building permits for Area A-7. Recommendation: Staff recommends the City Council hear staff's presentation and authorize the mayor to sign the interim agreement by motion. COPIES TO: Applicant Property Owners PA File ITEM NO. City of Dublin When Recorded Mail To: City Clerk City of Dublin 100 Civic Plaza Dublin, CA 94568 Space above this line for Recorder's Use INTERIM AGREEMENT BETWEEN THE CITY OF DUBLIN AND TOLL CA !1, L.P. FOR AREAS A-6 and A-7 OF DUBLIN RANC .H AREA A ATTACHMENT THIS AGREEMENT ("Interim Agreement") is made and entered in the City of Dublin on this ~ day of ~., 2001, by and between the CITY OF DUBLIN, a Municipal Corporation (hereafter "City"), and Toll CA II, L.P. a California limited partnership (hereafter collectively "Developer"). RECITALS A. DEVELOPER desires to develop and holds legal interest in certain real property consisting of approximately 38.3 acres of land, located in the City of Dublin, County of Alameda, State of California, which is designated as Parcels A- 6 and A-7 on the Master Tentative Map for Tract 7135 and is more particularly described in Exhibit A attached hereto and incorporated herein by this reference, and which real property is hereafter called the "A-6/A-7 Property"; and B. DEVELOPER acquired its interest in the A-6/A-7 Property.from DR Acquisitions I, LLC, which acquired its interest in the A-6/A-7 Property from Chang Su-O-Lin, Hong Lien Lin and Hong Yao Lin (the "Lins"); and ' C. The Lins and CITY are parties to a "Master Development Agreement Between the City of Dublin and The Lin Family for the Dublin Ranch Project (Areas A, B, C, D, E, F, G and H) ("Master Development Agreement")", section 7 of which requires DEVELOPER to enter into a development agreement in accordance with the Eastern Dublin Specific Plan; and D. DEVELOPER proposes the development of the A-6/A-7 Property with 202 single family detached homes (the "Project"); and E. DEVELOPER has applied for, and CITY has approved or is processing, various land use approvals in connection with the development of the Project, including an amendment to the General Plan and Eastern Dublin Specific Plan (City Council Resolution No. 53-98), PD District rezoning (City Council Ordinance No. 23-97), general provisions for the PD District rezoning including the Development Plan (City Council Resolution No. 139-97), Master Vesting Tentative Map for Tract 7135 (Planning Commission Resolution No. 00- 36), Vesting Tentative Map for Tract 7141 (Neighborhood A-6) (Planning Commission Resolution 00-42), Vesting Tentative Map for Tract 7142 (Neighborhood A-7) (Planning Commission Resolution 00-43) and site development review (Planning Commission Resolution Nos. 01-06 [for neighborhood A-6] and 01-07 [for neighborhood A-7]) (collectively, together with any approvals or permits now or hereafter issued with respect to the Project, the "Project Approvals"); and F. DEVELOPER has applied for a development agreement (the "A- 6/A-7 Property Development Agreement", as required by the Eastern Dublin Specific Plan and the Master Development Agreement, that requires approval by Dublin/Toll Interim Agreement For Dublin Ranch Area A / A-6 & A-7 Page 2 of 7 July 10, 2001 Ordinance, which ordinance is being considered for adoption on July 17, 2001, by the Council; and G. DEVELOPER wishes to begin construction of model homes prior to the effective date of the "A-6/A-7 Property Development Agreement"; and H. The purpose of this agreement is to allow DEVELOPER to begin construction of a maximum of four model homes in each of Areas A-6 and A-7 prior to the effective date of the "A-6/A-7 Property Development Agreement" at DEVELOPER's own risk. NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promisesl obligations and covenants herein contained, CITY and DEVELOPER agree as follows: AGREEMENT 1. Description of A-6/A-7 Property. The property which is the subject of this Interim Agreement is described in Exhibit A attached hereto ("A-6/A-7 Property"). 2. Interest of Developer. The DEVELOPER has a legal or equitable interest in the A-6/A-7 Property in that it owns the A-6/A-7 Property in fee simple. 3. Relationship of City and Developer. It is understood that this Agreement is a contract that has been negotiated and voluntarily entered into by CITY and DEVELOPER and that the DEVELOPER is not an agent of CITY. The CITY and DEVELOPER hereby renounce the existence of any form of joint venture or partnership between them, and agree that nothing contained herein or in any document executed in connection herewith shall be construed as making the CITY and DEVELOPER joint venturers or partners. 4. Effective Date and Term. 4.1 Effective Date. The effective date of this Agreement shall be the date upon which this Agreement is approved by the City Council. 4.2 Term. The term of this Agreement shall commence on the effective date and extend until the Effective Date of the A-6/ a-7 Development Agreement between CITY and DEVELOPER, which is being considered by the City Council for approval. Dublin/Toll Interim Agreement For Dublin Ranch Area A / A-6 & A-7 Page 3 of 7 July 10, 2001 5. No Damages Against CITY. In no event shall damages be awarded against CITY upon an event of default or upOn termination of this Agreement. 6. Severability. The unenforceability, invalidity or illegality of any provisions,.covenant, condition or term of this Agreement shall not render the other provisions unenforceable, invalid or illegal. 7. Attorneys' Fees and Costs. If CITY or DEVELOPER initiates any action at law or in equity to enforce or interpret the terms and conditions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs in addition to any other relief to which it may otherwise be entitled. If any person or entity not a party to this Agreement initiates'an action at law or in equity to challenge the validity of any provision of this Agreement the parties shall cooperate in defending such action. DEVELOPER shall bear its own costs of defense as a real party in interest in any such action, and shall reimburse CITY for all reasonable court costs and attorneys' fees expended by CITY in defense of any such action or other proceeding. 8. Indemnification. DEVELOPER agrees to indemnify, defend and hold harmless CITY, and its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives from any and all claims, costs (including legal fees and costs) and liability for any personal injury or property damage which may arise directly or indirectly as a result of any actions or inactions by the DEVELOPER, or any actions or inactions of DEVELOPER's contractors, subcontractors, agents, or employees in connection with the construction, improvement, operation, or maintenance of the Project, provided that DEVELOPER shall have no indemnification obligation with respect to negligence or wrongful conduct of CITY, its contractors, subcontractors, agents or employees or with respect to the maintenance, use or condition of any improvement after the time it has been dedicated to and accepted by the CITY or another public entity (except as provided in an improvement agreement or maintenance bond). 9. DEVELOPER to Bear Risk. DEVELOPER agrees that it bears all risks associated with the issuance of CITY of any building permits for model homes prior to the effective date of the A- Dublin/Toll Interim Agreement For Dublin Ranch Area A / A-6 & A-7 Page 4 of 7 July 10, 2001 6/A-7 Development Agreement including, but not limited to, the risk that the DEVELOPER will not be able to construct or continue to construct other aspects of the project because the A-6/A-7 Development Agreement never becomes effective (due to a referendum). DEVELOPER agrees, if CITY issues one or more building permits for model homes prior to the Effective Date of the A-6/A-7 Development Agreement, that Developer will not claim that it has a vested right to proceed with construction of the Project on account of the issuance of such building permit(s). 10. Consequences of Failure to Obtain A-6/A-7 Development Agreement If, for any reason, DEVELOPER and CITY do not enter into the A-6/A-7 Development Agreement for the Project, and if CITY has issued any building permits for model homes, DEVELOPER agrees it will cooperate with CITY to obtain whatever approvals are required so that the model homes have all required land use approvals and infrastructure for occupancy. 11. No Guarantee That Permits Will Issue Nothing in this Agreement shall be construed as an entitlement to issuance of any permits, including building permits to construct model homes. Any application for a building permit will be considered by CITY in the same manner it considers issuance of any other permits. 12. Notices. All notices required or provided for under this Agreement shall be in writing. Notices required to be given to CITY shall be addressed as follows: City Manager City of Dublin P.O. Box 2340 Dublin, CA 94568 FAX No. (925) 833-6651 Notices required to be given to DEVELOPER shall be addressed as follows: Toll CA II, LP A party may change address by giving notice in writing to the other party and thereafter all notices shall be addressed and transmitted to the new address. Notices shall be deemed given and received upon personal delivery, or if mailed, Dublin/Toll Interim Agreement For Dublin Ranch Area A / A-6 & A-7 Page 5 of 7 July 10, 2001 upon the expiration of 48 hours after being deposited in the United States Mail. Notices may also be given by overnight courier which shall be deemed given the following day or by facsimile transmission which shall be deemed given upon verification of receipt. 13. Agreement is Entire Understanding. This Agreement constitutes the entire understanding and agreement of the parties with respect to the issuance of building permits prior to the effective date of the development agreement. 14. Counterparts. This Agreement is executed in two (2) duplicate originals, each of which is deemed to be an original. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written. CITY OF DUBLIN: By: Date: Mayor ATTEST: By: Date: City Clerk APPROVED AS TO FORM: City Attorney Dublin/Toll Interim Agreement For Dublin Ranch Area A / A-6 & A-7 Page 6 of 7 July 10, 2001 TOLL CA II, LP a California limited partnership By: Print: Its: General Partner Date: J:\wpd~Vln rsw\114\168~Agree\lnterim da_071001 .doc Dublin/Toll Interim Agreement For Dublin Ranch Area A / A-6 & A-7 Page 7 of 7 July 10, 2001