URGENCY ORDINANCE NO. 2015-O13 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING AND AUTHORIZING EXECUTION OF AN AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF AZUSA AND ROSEDALE LAND PARTNERS II WHEREAS, the City of Azusa ( City ) and Monrovia Nursery Company entered into that certain Development Agreement dated as of May 27, 2004 ( Development Agreement ); and WHEREAS, the City of Azusa ( City ) and Rosedale Land Partners II, LLC entered into the First Amendment to the Development Agreement dated as of April 7, 2014 and a Second Amendment to extend the term to November 27, 2015; and WHEREAS, the Development Agreement provides for the development of a master planned community project consisting of 1,250 residential units, commercial space and various public and infrastructure improvements; and WHEREAS, on August 27, 2004, Monrovia Nursery Company assigned all of its rights, obligations, title and interest under the Development Agreement to Azusa Land Partners, LLC, a Delaware limited liability company, in accordance with Section 3.6 of the Development Agreement; and WHEREAS, Azusa Land Partners, LLC surrendered all of its rights, obligations, title and interest under the Development Agreement due to foreclosure; and WHEREAS, on October 10, 2010, Rosedale Land Partners II, LLC, a Delaware limited liability company, obtained all rights, obligations, title and interest of the Development Agreement by acquiring the subject property pursuant to a Trustee s Deed dated October 1, 2010, pursuant to Section 3.6 of the Development Agreement; and WHEREAS, the Development Agreement is set to expire on or before November 27, 2015; and and WHEREAS, Owner has requested that the term of the Development Agreement be extended; WHEREAS, City and Owner are currently negotiating a long-term extension of the Development Agreement as well as substantive amendments to adjust the rights and responsibilities of the City and Owner; and WHEREAS, the Development Agreement is also the subject of a lawsuit filed by the Azusa Unified School District relating to the construction of a K-8 school referenced in documents relating to the Development Agreement; and WHEREAS, the City desires to amend the Development Agreement to extend the term by nine (9) months in order to allow sufficient time to conclude negotiations and bring those negotiated amendments to the City Council for approval, as it will be in the best interest of the City and the public interest to do so; and
WHEREAS, both Owner and City wish to extend the terms of the Development Agreement for an additional nine (9) months to provide the additional time necessary to negotiate changes to the Development Agreement, resolve the pending lawsuit filed by the Azusa Unified School District (AUSD) over the references to a K-8 school and to complete the project; and WHEREAS, in order to ensure the development of the Rosedale Specific Plan takes place and the Development Agreement is implemented, this Urgency Ordinance is adopted to extend the Development Agreement immediately so that it does not expire and the City can continue to work with the Owner and AUSD in the implementation of this Development Agreement; and WHEREAS, the extension of the Development Agreement is for the immediate preservation of the public peace, health, and safety because the Rosedale Specific Plan and Development Agreement are considered critical projects for the City and a lapse in the Development Agreement would have significant detrimental impacts which cannot be easily remedied by other methods; and WHEREAS, this Urgency Ordinance is adopted pursuant to California Government Code Section 36937 and shall take effect immediately upon adoption by a four-fifths vote of the City Council; and WHEREAS, the amendment to the Development Agreement is consistent with the City of Azusa General Plan and the Rosedale Specific Plan and contains all necessary elements required by Government Code section 65864 et seq. and Section Division 14 of the City of Azusa Municipal Code as no substantive changes are proposed by the amendment; and WHEREAS, on October 21, 2015, the City Planning Commission held a duly noticed public hearing on the proposed amendment to the Development Agreement, and by Resolution No. 2015-31 recommended approval of the proposed amendment to the City Council; and WHEREAS, the City Council of the City of Azusa has reviewed and studied the amendment to the Development Agreement and found it to comply with the California Environmental Quality Act ( CEQA ) as more fully described below. THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby adopts the recitals in this Urgency Ordinance as Urgency Findings for its adoption. Based on the entire record before the City Council of the City of Azusa ( Council ) and all written and oral evidence presented to the Council, the Council finds the Third Amendment to the Development Agreement attached here to as Exhibit A ( Third Amendment ) is consistent with the General Plan of the City of Azusa ( General Plan ) and the Rosedale Specific Plan and systematically implements the goals and objectives of the General Plan and Rosedale Specific Plan. A. The Third Amendment is consistent with the objectives, policies, general land uses and programs specified in the General Plan and the Rosedale Specific Plan. B. The Third Amendment will not be detrimental to the health safety and general welfare of persons residing in the immediate area nor be detrimental or injurious to the general welfare of the residents of the City as a whole.
C. The Third Amendment will not adversely affect the orderly development of property or the preservation of property values. D. The Third Amendment is consistent with the provisions of Government Code sections 65864 through 65869.5 and Division 14 of the Azusa Municipal Code. SECTION 2. Based on the entire record before the Council and all written and oral evidence presented to the Council, the Council hereby finds and determines, that it can be seen with certainty that adoption of this Urgency Ordinance and approval of the Third Amendment will not have a significant adverse effect on the environment. Thus, the adoption of this Urgency Ordinance and approval of the Third Amendment is exempt from the requirements of the California Environmental Quality Act ( CEQA ) pursuant to Sections 15061(b)(3) of the CEQA Guidelines. Staff is directed to file a Notice of Exemption with the Los Angeles County Recorder's Office within five (5) working days of adoption of this Urgency Ordinance. SECTION 3. The Council hereby approves the Third Amendment in substantially the form presented to the Council, together with such additions favoring the City and non-substantive revisions as may be approved by both the City Manager and the City Attorney during execution of the Third Amendment. SECTION 4. The City Manager is hereby authorized to execute the Third Amendment on behalf of the City and City staff is authorized to take any action and execute any and all necessary documents to implement the Third Amendment. SECTION 5. The City Clerk is directed to record the Third Amendment with the Los Angeles County Recorder, no later than 10 days after the Second Amendment is fully executed. SECTION 6. This Ordinance shall be in full force immediately upon its passage. SECTION 7. A summary of this Ordinance shall be published in the manner required by law. PASSED, APPROVED and ADOPTED this 2 nd day of November, 2015. /s/joseph Romero Rocha Mayor ATTEST: /s/jeffrey Lawrence Cornejo, Jr. City Clerk
STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I, Jeffrey Lawrence Cornejo Jr., City Clerk of the City of Azusa, do hereby certify that the foregoing Urgency Ordinance No. 2015-O13 was duly introduced and adopted at a regular meeting of the City Council held on the 2 nd day of November, 2015, by the following roll-call vote, to wit: AYES: COUNCIL MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE /s/jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: /s/best Best & Krieger, LLP City Attorney
EXHIBIT A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT [Attached behind this page]
RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City of Azusa 213 East Foothill Boulevard Azusa, California 91702 Attention: City Manager Exempt from filing fees Gov t Code 6103 (Space above for Recorder s use only) THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT THIS THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT (the Third Amendment ) is dated as of, 2015, and is being entered into by and among the City of Azusa, a California municipal corporation ( City ), and the City of Azusa Light and Water Department ( ALW ) (jointly referred to as the City ) and Rosedale Land Partners II, LLC, a Delaware limited liability company ( Owner ), with reference to the following facts: A. City and Monrovia Nursery Company, a California corporation, entered into that certain Development Agreement between City and Owner s predecessor in interest dated as of May 27, 2004, and recorded on July 29, 2004, in the Official Records of Los Angeles County as Document No. 04-1952514, ( Development Agreement ), covering that certain property more particularly described in the Development Agreement. B. The Development Agreement provides for the development of a master planned community project consisting of 1,250 residential units, commercial space and various public and infrastructure improvements. C. On August 27, 2004, Monrovia Nursery Company assigned all of its rights, obligations, title and interest under the Development Agreement to Azusa Land Partners, LLC, a Delaware limited liability company, in accordance with Section 3.6 of the Development Agreement; and D. Azusa Land Partners, LLC surrendered all of its rights, obligations, title and interest under the Development Agreement due to foreclosure; and E. On October 10, 2010, Rosedale Land Partners II, LLC, a Delaware limited liability company, obtained all rights, obligations, title and interest of the Development Agreement by acquiring the subject property pursuant to a Trustee s Deed dated October 1, 2010, pursuant to Section 3.6 of the Development Agreement; and
F. Pursuant to the First Amendment to the Development Agreement approved by Ordinance No. 14-O1, and The Second Amendment to the Development Agreement approved by Ordinance No. 14-O6, the Term of the Development Agreement has been extended to November 27, 2015. G. Owner has requested that the term of the Development Agreement be extended pursuant to Section 3.5 of the Development Agreement. City and Owner are currently negotiating a long-term extension of the Development Agreement as well as substantive amendments to adjust the rights and responsibilities of the parties. H. The parties desire to amend the Development Agreement to extend the Term by nine (9) months in order to allow sufficient time to conclude negotiations and bring those negotiated amendments to the City Council for approval. Nothing set forth herein shall amend or affect the additional five year extension of the Development Agreement pursuant to the last paragraph of Section 3.5. I. All capitalized but undefined terms used herein shall have the same meaning as set forth in the Development Agreement. J. On October 21, 2015, the City Planning Commission held a duly noticed public hearing on this Third Amendment and by Resolution No. 2015- recommended to the City Council approval of this Amendment. K. On, 2015, the City Council held a duly noticed public hearing on this Third Amendment. On, 2015, the City Council adopted Ordinance No. 15-, approving this Third Amendment and affirming the findings required under Government Code Section 65867.5 for approval of this Second Amendment. NOW, THEREFORE, in consideration of the mutual terms and conditions contained herein, the parties agree to amend the Development Agreement as follows: 1. Effective Date. This Third Amendment shall become effective on the date on which all of the following are true: (i) this Third Amendment has been executed by Owner s duly authorized officers and officials and delivered to the City; (ii) this Third Amendment has been approved by ordinance of the City Council of the City of Azusa and such ordinance has become effective; and (iii) this Third Amendment has been duly executed by the Mayor and delivered to Owner. Notwithstanding the above, the Effective Date, for purposes of the Development Agreement, shall remain as defined in Section 3.1.9 of the Development Agreement. 2. Recordation. The City and Owner hereby consent to the recordation of this Third Amendment in the Official Records of Los Angeles County, California at any time following the effective date of this Third Amendment. 3. Amendment to Section 3.5. The first and second paragraphs of Section 3.5 of the Development Agreement are hereby amended to read as follows:
3.5. Term. The term ( Term ) of this Agreement shall commence on the Effective Date and shall continue until August 27, 2016, unless terminated sooner pursuant to a specific provision of this Agreement. The Term of this Agreement shall be extended for one (1) additional five (5) year period following the expiration of the Term upon the occurrence of all of the following: (i) The Owner shall give written notice to the City no later than one hundred twenty (120) days before the expiration of the Term that the Owner desires to extend this Agreement for the additional five (5)-year period; 4. This Third Amendment may be executed in any number of identical counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument when each party has signed one such counterpart. 5. Not later than ten (10) days following the Effective Date of this Third Amendment, the City Clerk shall record this Third Amendment with the Los Angeles County Recorder s Office. 6. Other than as set forth herein, all of the terms and conditions of the Development Agreement shall remain in full force and effect. To the extent of any inconsistency between the terms and conditions of this Third Amendment and the Development Agreement, the terms and conditions of this Third Amendment shall control. [Signatures on following page]
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date and year first written above. CITY City of Azusa By: City Manager OWNER ROSEDALE LAND PARTNERS II, LLC a Delaware limited liability company By: CDG ROSEDALE INVESTMENT, LLC, a Delaware limited liability company its Administrative Member Date: By: ATTEST: Its: Date: By: Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney Date:
NOTARY ACKNOWLEDGMENT STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On, 20 before me,, notary public, personally appeared, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public N - 1
NOTARY ACKNOWLEDGMENT STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) On, 20 before me,, notary public, personally appeared, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public