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HomeMy WebLinkAbout03 AGMNT LAING HOMES 02-03-03NO. 3 02-03-03 Inter-Com MEETING DATE: FEBRUARY 3, 2003 V TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER REDEVELOPMENT AGENCY STAFF PARCEL 34- TUSTIN LEGACY-EXCLUSIVE AGREEMENT TO NEGOTIATE WITH JOHN LAING HOMES SUMMARY Approval is requested of an Exclusive Agreement to Negotiate with John Laing Homes for the disposition and development of Parcel 34 in the Tustin Legacy Project. RECOMMENDATION It is recommended that the City Council authorize the City Manager's execution of the attached Exclusive Agreement to Negotiate (ENA) between the City of Tustin and the Developer, WL Homes,LLC, a Delaware limited liability company doing business as John Laing Homes, authorizing minor changes to be made subject to approval of the City's special real estate counsel Gilchrist & Rutter. FISCAL IMPACT John Laing Homes will deposit $50,000 good faith deposit with execution of the ENA. The intent of the negotiating period is to draft a Disposition and Development Agreement (DDA) for the City Council's consideration which will include purchase price and terms for the property. Additionally, there may be direct financial impacts from the eventual development of the property including receipt of revenues from property taxes and a cost of providing City services. Fiscal Impacts will be evaluated as part of the negotiation process. BACKGROUND As part of its discussion of the Tustin Legacy Disposition Strategy and Subsequent Developer Solicitations on August 22, 2002, the City Council supported excluding Parcel 34 (located at the southwest corner of Edinger and Harvard) from the Master Developer approach and discussed the sale of this property in conjunction with development of Parcel 33 (located at the northwest corner of Edinger and Harvard). City Council Report Tustin Legacy- Parcel 34- Exclusive Agreement to Negotiate February 3, 2003 Page 2 John Laing Homes, the Developer has been previously selected by the City as the successful respondent to a RFP for Parcel 33. In accordance with an ENA dated August 5, 2002, the City is currently negotiating the terms and conditions of a DDA addressing sale of Parcel 33 by the City and development of a residential subdivision. It would be in the best interest of the City and the Tustin Legacy project to have both Parcel 33 and 34 developed by the same developer. As such, the City Council instructed staff to solicit a proposal with respect to Parcel 34 which has been received by the City. The fundamental terms upon which the DDA are to be negotiated are to be consistent with the MCAS Tustin Reuse Plan/Specific Plan. Major issues that will be addressed in drafting the DDA include: The Scope of Development- the Developer will refine the actual number of units to be constructed, the concept/site plan, and proposed on-site and off-site improvements, resolution of any homeless accommodation issues on the site. · Purchase Price-the amount of the purchase price and any participation price including terms and conditions of conveyance. · Schedule of Performance-Milestone dates for completion of specific responsibilities required of the Agency and the Developer will be established. The exclusive negotiation period is for ninety (90) days from the date the Agreement is executed by all parties. The negotiating period may be extended for an additional time period if mutually agreed upon. Christine Shingleton Assistant City Manager Attachment EXCLUSIVE AGREEMENT TO NEGOTIATE (PARCEL 34) THIS EXCLUSIVE AGREEMENT TO NEGOTIATE (PARCEL 34) ("Agreement") is entered into this __ day of ., 2003 by and between THE CITY OF TUSTIN (the "City") and WL Homes LLC, a Delaware limited liability company doing business as John Laing Homes (the "Developer") with respect to certain land referred to herein as "Parcel 34" (defined below). The City and the Developer (collectively referred to herein as the "Parties") hereby agree as follows: 1.0 Introduction. 1.1 Pursuant to the Defense Base Closure and Realignment Act of 1990, (Part A of Title XXXIX of Public Law 101-510; 10 U.S.C. Section 2687 Note), as amended the federal government determined to close the Marine Corps Air Station-Tustin ("MCAS Tustin") located substantially in the City of Tustin. In 1992, the City was designated as the Lead Agency or Local Redevelopment Authority for preparation of a reuse plan for MCAS Tustin in order to facilitate the closure of MCAS Tustin and its reuse in furtherance of the economic development of the City and surrounding region. The MCAS Tustin Reuse Plan developed in accordance with this procedure was adopted by the City Council of the City of Tustin (the "City Council") on October 17, 1996 and amended in September, 1998 (the "Reuse Plan"). 1.2 A Final Joint Environmental Impact Statement/Environmental Impact Report for the Disposal and Reuse of MCAS Tustin (the "Final EIS/EIR") and Mitigation Monitoring and Reporting Program for the Final EIS/EIR were adopted by the City on January 16, 2001. In March 2001, a record of decision was issued by the Department of the Navy (hereinafter, "Navy") approving the Final EIS/EIR and the Reuse Plan. 1.3 In May 2002, the Navy approved an Economic Development Conveyance of Property at MCAS Tustin and agreed to convey 1153 acres of MCAS Tustin to the City. On May __, 2002, a total of 977 acres, including Parcel 34 which is the subject of this Agreement, was conveyed by the Navy to the City by quitclaim deed, in accordance with the provisions of that certain Memorandum of Agreement by and between The United States of America (through the Secretary of the Army or designee) and the City dated May 13, 2002 ("Memorandum of Agreement" or "MOA"). Additional acreage is currently under ground lease by the City from the Navy. The portion of MCAS Tustin located within the City of Tustin and currently owned by the City or subject to ground lease between the Navy and the City is referred to herein as "Tustin Legacy". 1.4 On February 3, 2003 the City adopted an ordinance approving the MCAS Tustin Specific Plan (the "Specific Plan") setting forth the zoning and entitlement framework for future development of Tustin Legacy. The Specific Plan conforms to and implements the Reuse Plan. [Alternately, describe Draft Specific Plan.] 1.5 The City desires to effectuate development of Tustin Legacy through the sale and development of such property in accordance with applicable federal and local requirements. [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 1 of 15 Tustin Legacy shall be developed in accordance with all City requirements, including, without limitation, implementing redevelopment plans, the Reuse Plan and the Specific Plan. 1.6 Parcel 34, which is the subject of this Agreement, is a portion of Tustin Legacy. Such property, referred to in the Reuse Plan as Parcel 34 and in the Navy transfer documents as "I-B-1, legally described in Exhibit A attached hereto and as depicted on the Site Map attached hereto as Exhibit A. 1.7 The Developer has been previously selected by the City as the successful respondent to RFP No. 1 for certain adjacent property referred to in the Navy transfer documents as Parcel 33 ("RFP") and, in accordance with the terms of the certain Exclusive Agreement to Negotiate between the City and the Developer dated August 5, 2002, the City and the Developer are currently negotiating the terms and conditions of a disposition and development agreement addressing sale by the City to the Developer of portions of Parcel 33 and development by the Developer of a residential subdivision upon such property and certain adjacent property ("Parcel 33 DDA"). 1.8 The City Council has determined that it would be in the best interest of the City and Tustin Legacy to have Parcel 33 and Parcel 34 developed by the same developer and on the same terms and conditions, and accordingly, have authorized the Assistant City Manager to enter into sole source negotiations with the Developer with respect to disposition to the Developer of Parcel 34. 1.9 The Parties desire, for the period set forth herein, to negotiate diligently and in good faith the terms and conditions of a disposition and development agreement with respect to Parcel 34 ("Parcel 34 DDA") which if agreed and executed will specify the rights, obligations and method of participation of the Parties with respect to the sale and development of Parcel 34. 2.0 A~reement to Negotiate. 2.1 The City and the Developer each desire to negotiate a Parcel 34 DDA which if agreed upon and executed, shall set forth the terms and conditions pursuant to which Parcel 34 shall be conveyed by the City to the Developer and developed by the Developer with a residential ownership project (hereinafter referred to as "Project"). The Project proposed for Parcel 34 would contain single family detached homes not exceeding seven (7) dwelling units per acre and a complete accompanying set of amenities. 2.2 Notwithstanding that the terms of the Parcel 34 DDA are to be negotiated, the Developer and the City have agreed that the basis for their negotiations shall be the form of the Parcel 33 DDA and unless the Parties otherwise agree, the terms of the Parcel 34 DDA shall substantially conform to the terms set forth in the Parcel 33 DDA, as the same may be modified by the Parties. 2.3 This Agreement (including all exhibits hereto) is solely an exclusive right to negotiate and is not a final agreement. The Parties do not intend this agreement to be a purchase, option or similar contract or to be bound in any way by this Agreement, other than to establish a period of exclusive negotiations during which time each Party shall negotiate with the other in [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 2 of 15 good faith, the City shall not market Parcel 34 to other interested parties and the Developer shall be bound not to withdraw any offer made by it pursuant to Section 4.2.4. 2.4 The Parties acknowledge that they have not set forth herein nor agreed upon all essential terms of the subject matter of an agreed transaction and that such essential terms will be the subject matter of further negotiations. 2.5 Execution of this Agreement is not intended to confer any third party beneficiary rights in or create any liabilities on the part of either Party to any third parties. 2.6 The Parcel 34 DDA shall not exist and shall not be binding unless and until it is fully executed by both Parties, approved by counsel to each Party as to form and approved by the City Council of the City and by the managing members of the Developer. 2.7 Each Party assumes the risk that, notwithstanding this Agreement and good faith negotiations, the Parties may not enter into any agreement due to the Parties' failure to agree upon essential terms of the transaction. 3.0 Developer's Representations and Warranties. 3.1 The Developer represents that it has the necessary expertise, experience and financial capability to undertake development of the Project contemplated herein. 3.2 The Developer represents and agrees that its intended acquisition of Parcel 34 and its other intended undertakings pursuant to this Agreement shall be used for the timely development of Parcel 34 and not for speculation in land holding. 3.3 The Developer represents that it is experienced in redevelopment and understands the process and requirements required to make redevelopment projects such as the Project described herein. 4.0 Negotiations. 4.1 Good Faith Negotiations. The City will prepare the Parcel 34 DDA and submit it to the Developer for review and comment. The City and the Developer agree for the period set forth in Section 4.2 to exclusively negotiate with one another diligently and in good faith to prepare a Parcel 34 DDA and related documents to be entered into between the City and the Developer with respect to Parcel 34. 4.2 Period of Negotiations. 4.2.1 The Parties agree to negotiate for a period of one hundred (90) days from the date this Agreement is signed by all Parties, subject to extensions as further provided in this Section 4.2. If on the 90th day from the date of this Agreement (or within any extension of time mutually approved by the Parties in accordance with the terms of the Agreement), the Developer has not signed and submitted a Parcel 34 DDA in form and substance approved by the City in its sole discretion, then this Agreement shall automatically terminate. The Developer may request [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 3 of 15 from the City an extension of the 90-day exclusive negotiation period. The City will determine whether reasonable and sufficient progress has been made toward fulfillment of the requirements of this Agreement in its consideration of any extension. The 90-day exclusive negotiation period may be extended by the mutual consent of the Parties for up to two (2) additional periods of thirty (30) days each. 4.2.2 Notwithstanding the period of exclusivity set forth in Section 4.2.1, it is the intent of the Parties to negotiate and prepare definitive documentation reflecting the transaction for execution and delivery on or before Julyl, 2003. Thus, unless otherwise extended in writing by the Parties, this Agreement shall automatically terminate at the end of the period set forth in Section 4.2.1, except for the confidentiality provisions set forth herein. 4.2.3 The City hereby delegates to the Assistant City Manager the authority to agree to grant the extensions specified in Section 4.2.1 upon determination by the Assistant City Manager in its sole and absolute discretion that the Developer has negotiated diligently and in good faith and that reasonable and sufficient progress has been made toward fulfillment of the requirements of this Agreement. No such extension of time shall be effective unless it is in writing. 4.2.4 The execution by Developer of a form of Parcel 34 DDA shall constitute an offer to purchase Parcel 34. Developer hereby agrees that it shall not withdraw such offer to purchase for a period of sixty (60) days following submittal of the executed Parcel 34 DDA to the City. Such offer shall remain in effect for a period of sixty days to enable the City to (a) determine whether it desires to enter into such a Parcel 34 DDA, (b) take the actions necessary to authorize the City to sign the Parcel 34 DDA if the City desires to do so, and (c) sign the Parcel 34 DDA. If the City has not considered and approved the Parcel 34 DDA by such 60th day or, at the end of any extension mutually agreed upon by the Parties in writing, then this Agreement shall automatically terminate. 4.3 Good Faith Deposit. 4.3.1 Prior to the execution of this Agreement by the City, the Developer has submitted to the City a good faith deposit in the sum of fifty thousand dollars ($50,000) in the form of a certified cashier's check or other form of security acceptable to the City to ensure that the Developer will proceed diligently and in good faith to negotiate and perform all of the Developer's obligations under this Agreement. If the deposit is in cash or a certified cashier's check it shall be deposited in an account in a bank or trust company selected by the City. Interest, if any, shall be added to the deposit and held as additional security for the Developer's obligations hereunder. If the Parties enter into a Parcel 34 DDA within the time period identified in Section 4.2 of this Agreement, the City shall return the deposit to the Developer or apply it to any additional deposit required as security for the performance under the Parcel 34 DDA. If the Parties fail to enter into the Parcel 34 DDA within the time period identified in Section 4.2 of this Agreement or any extension thereto, the City may retain the deposit only if the Developer has not negotiated diligently or in good faith or has not carried out its obligations under this Agreement. The Developer's failure to submit to the City plans, reports, studies, investigations and materials specified in Sections 5.0 and 6.0 of this Agreement within the time periods specified therein shall be deemed to demonstrate the Developer's failure to negotiate diligently [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 4 of 15 and in good faith and its failure to carry out its obligations hereunder. If the Developer has failed to do so, inasmuch as the actual damages which would result from a breach by the Developer of its obligations under this Agreement are uncertain and would be impractical or extremely difficult to determine, the City shall be entitled to retain the entire original amount of said deposit plus interest, if any, which has accrued thereon, as liquidated and agreed damages. 4.3.2 The Developer may terminate this Agreement in the event that during the course of the investigations and evaluation of Parcel 34 and the Project, it determines in good faith that the Project is not feasible or financeable. The City shall return the deposit ( less any costs of the City associated with negotiation of the DDA from the date of execution of this Agreement together, with any interest accrued thereon) to the Developer upon termination of the Agreement in the event the Developer has negotiated in good faith hereunder and materially complied with the terms hereof. 4.3.3 By the initials of their respective signatories hereunder, the City and the Developer acknowledge and agree that forfeiture of the original amount of the deposit (together with any interest earned and accrued thereon) is not in lieu of any other relief, right or remedy to which the City might be entitled by reason of the Developer's default. Initials: Developer City 4.3.4 The Developer acknowledges that it is currently anticipated that the Parcel 34 DDA shall require the deposit of an additional deposit in an amount to be determined as security for the performance of the Developer's obligations under the Parcel 34 DDA. 4.3.5 In addition, it is currently anticipated that the Parcel 34 DDA shall require the Developer to assume certain property maintenance costs of Parcel 34 as will be specified in the Parcel 34 DDA. 4.4 Exclusivity. During the period of exclusive negotiation, the City covenants and agrees to negotiate exclusively with the Developer and shall not solicit another party for the Project or enter into any agreement with any other party regarding the development of Parcel 34 or any portion thereof. The City acknowledges and agrees that but for this exclusivity, the Developer would not have entered into this Agreement. In the event a court of competent jurisdiction determines in a final decision that the City has breached this exclusivity covenant, the City shall be deemed to have failed to negotiate in good faith and providing a Parcel 34 DDA has not been entered into pursuant to this Agreement, the Developer shall, in addition to other rights and remedies, be entitled to the return of the good faith deposit (together with interest accrued thereon) and any other deposits made by the Developer. 4.5 Due Diligence. 4.5.1 Inspection; License. The City hereby grants to the Developer and its representatives and agents a license during the term of this Agreement to enter upon Parcel 34 for purposes of conducting Developer's due diligence inspection, provided that Developer shall: (a) deliver to the City written evidence that Developer has procured the insurance required under Section 4.5.2; (b) give the City twenty-four (24) hours telephonic or written notice of any [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 5 of 15 intended access which involves work on Parcel 34 or may result in any impairment of the use of Parcel 34 by its current occupants; (c) access Parcel 34 in a safe manner; (d) conduct no invasive testing or boring without the written consent of the City; (e) allow no dangerous or hazardous condition created by Developer or Developer's agents to continue beyond the completion of such access; (f) comply with all laws and obtain all permits required in connection with such access; and (g) conduct inspections and testing, subject to the rights of any existing tenants of Parcel 34, if any (which inspections and testing, if conducted at times other than normal business hours, shall be conducted only after obtaining the City's consent, which shall not be unreasonably withheld). The limited license granted herein is revocable by the City during the continuation of any breach of this Agreement by Developer and shall be automatically revoked and terminated, without further action of the City, upon the termination of this Agreement or any period of exclusive negotiation hereunder. 4.5.2 Insurance. Developer shall obtain, or cause its consultants to obtain, at Developer's sole cost and expense prior to commencement of any investigative activities on Parcel 34, a policy of commercial general liability insurance covering any and all liability of Developer and the City arising out of any investigative activities, in an amount and provided by a carrier reasonably approved by the City. Such policy of insurance shall be kept and maintained in force during the term of this Agreement and so long thereafter as necessary to cover any claims of damages suffered by persons or property resulting from any acts or omissions of Developer, Developer's employees, agents, contractors, suppliers, consultants or other related parties. 4.5.3 Indemnity. Developer hereby agrees to protect, indemnify, defend and hold the City and its elected officials, employees, agents, representatives, consultants and contractors free and harmless from and against any and all claims resulting from Developer's access to Parcel 34 or its exercise of its rights hereunder, including, without limitation, any inspections, surveys, tests or studies performed by Developer or its employees, consultants or contractors, save and except to the extent such claims result from the gross negligence or willful misconduct of the City or its agents, employees or representatives. Developer shall keep Parcel 34 free and clear of any mechanics' liens or materialmen's liens related to Developer's inspection of Parcel 34. The indemnification by Developer set forth in this Section 4.5.3 shall survive the termination of this Agreement and the execution of the Parcel 34 DDA and shall not survive the closing and transfer to Developer of Parcel 34 and shall not merge into any deed granted pursuant to the Parcel 34 DDA. 5.0 Proposed Development Concept and Essential Terms and Conditions. 5.1 The proposed Project to be negotiated hereunder shall include the development and use of Parcel 34 consistent with the MCAS Tustin Reuse Plan, the General Plan, and the Specific Plan. 5.2 The Parties agree that it is their intent, upon entry into this Agreement, to negotiate a Parcel 34 DDA which is anticipated to address the following terms and conditions. 5.2.1 The Developer shall acquire Parcel 34 from the City. The terms and conditions of this conveyance, including but not limited to the manner of conveyance, the [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 6 of 15 conditions precedent to conveyance and the amount of the purchase price and any participation price, shall be determined as part of the negotiation of and detailed in the Parcel 34 DDA and shall be consistent with the methodology utilized to develop the purchase price for Parcel 33. 5.2.2 The Developer shall design and construct the development on Parcel 34 at its own cost and expense in accordance with a scope of development and a schedule of performance to be negotiated as part of the Parcel 34 DDA and in accordance with plans and specifications prepared by the Developer and approved by the City in accordance with such schedule of performance and in compliance with all requirements and regulations of the City including, without limitation, applicable zoning. 5.2.3 The Developer has agreed that the project product mix proposed will be detached single family homes not to exceed seven (7) dwelling units per acre. The actual number of units will be based on compliance with all development standards in the Specific Plan and any requirements contained in this Agreement. 5.2.4 The Developer shall ensure that any development plans provide for access to a future proposed regional bike trail on the westerly edge of Parcel 34 as part of development of Parcel 34; provided that the Parties acknowledge that access rights from third party landowners would be necessary to extend such access to the future bike trail on the westerly edge of Parcel 34. 5.2.5 In connection with its development of Parcel 34, Developer shall be required to provide a financial contribution as Parcel 34's fair share of the off-site MCAS Tustin back-bone infrastructure program, and/or will enter into an agreement with the City not to oppose imposition of an assessment district or community facilities district on Parcel 34 established to finance Parcel 34's fair share obligations for MCAS Tustin back-bone infrastructure. The fair share allocation to Parcel 34 is currently estimated at $4, 773,438 with costs to be adjusted at building permit stage based on current costs adjustments based on design and changes, if any, in the Construction Cost index for the Los Angeles/Anaheim/Riverside area. Developer also acknowledges that Parcel 34 is subject to imposition of developer school impact fees by the Irvine Unified School District and may be subject to a future community facilities district for financing of school facilities to benefit the Irvine Unified School District pursuant to an agreement between the City and the Irvine Unified School District regarding the transfer of school site. 5.2.6 The Developer shall prepare and process applications for and obtain from the City and other federal, state and local jurisdictions, all applicable land use, planning and zoning approvals for the proposed development with the support of the City. These entitlements will be required to be consistent with the MCAS Tustin Reuse Plan approved for MCAS Tustin and the Specific Plan or any final revisions approved by the City Council. 5.2.7 The Developer has agreed to provide affordable dwelling units on Parcel 34 as follows: a minimum of 15% of the dwelling units constructed on Parcel 34 shall be affordable for very low to moderate income households, with 40% of those units affordable to very low income households, 39% of the balance of these units affordable to low income households and 61% of the balance of these units affordable to moderate income households. [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 7 of 15 The Developer has also agreed that 4 additional units shall be provided to low income households and 8 additional units shall be provided to moderate income households to assist the City in meeting its regional housing needs. The Developer has agreed to negotiate with the City the actual location by product type of these units. Additionally, Parcel 34 is subject to provisions of the Specific Plan that relate to Homeless Accommodation and a Homeless Assistance Agreement for the site executed in October 1996 and the First Amendment to the Homeless Assistance Agreement executed in February 1997. The Developer agree that they will negotiate with the City a financial payment to be made to the Salvation Army to allow the Salvation Army to secure alternative replacement premises somewhere other than at Tustin Legacy 5.2.8 New development shall be completed within the guidelines of the land uses specified in the Reuse Plan and Specific Plan. 5.2.9 Project costs and revenues will be separately analyzed and funding of all project costs will be the responsibility of the Developer. 5.2.10 The Developer anticipates implementation of the Project without the need for any expenditure by or loan from the City to the Developer. 6.0 Developer's Responsibilities. During the period of negotiation, the Developer shall prepare and submit to the City the following: 6.1 Status Reports. The Developer agrees to make bi-weekly oral and/or written reports advising the City and/or its staff of all matters and studies being made, including the Developer's progress in analyzing the feasibility of the Project as may be requested by the City or its staff. 6.2 Development Team. The Developer shall, within ten (10) days of execution of this Agreement, submit in writing to the City full disclosure of the names of the Developer's agents, authorized negotiators, professional employees or other associates of Developer who may be participants in development of the Project and other relevant information concerning the above, such as addresses, telephone numbers, employers. The Developer shall also designate and submit in writing to the City the names of all the Developer's lead negotiators who shall have authority to make decisions on behalf of the Developer. 6.3 Financial Status. The Developer shall continue to be responsible for demonstrating to the City the financial capacity and capability to perform its obligations under this Agreement and the proposed Parcel 34 DDA. The Developer shall submit any additional financial information of its key principal or principals as requested by the City within thirty (30) days of a request by this Agreement. The Developer shall identify with specificity the documents which the Developer wants the City to maintain as confidential documents and a statement as to why the request is consistent and complies with the provisions of the Public Records Act of the State of California. If confidentiality is requested and if nondisclosure under the Public Records Act is allowed, the documents shall be delivered to and maintained by the City and copies shall not be disseminated. To the extent permitted by law, the City shall not make public disclosure of the documents. The City's agents, negotiators and consultants may [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 8 of 15 review the statements as necessary as long as such parties agree to maintain the confidentiality of such statements. 6.4 Assignment. If the Developer determines to joint venture or partner development of Parcel 34, or if the Developer determines to form a new legal entity to develop Parcel 34, the Developer shall promptly inform the City of such determination and submit to the City the joint venture's or partner's most recent financial statements and the financial statements of its key principals. The assignment of the Developer's rights under this Agreement to any new entity, partnership or joint venture may be approved in writing by the City, provided that it is satisfied in its sole discretion, that the new entity, partnership, or joint venture has the financial capability to perform under this Agreement and the proposed Parcel 34 DDA. The Developer of Parcel 34 shall be under the same management and control as the developer of Parcel 33, unless otherwise agreed by the City in its sole discretion. 6.5 Design Review/Entitlements. It is understood and agreed to by the Developer that the quality, character and uses proposed for the Project are of particular importance to the City and that planning and design review approval and other entitlements by the City will be required for the development of Parcel 34. The Developer and the proposed architect shall meet with representatives of the City to review and come to a clear understanding of the planning and design criteria required by the City. Within 20 days after the date of the execution of this Agreement, the Developer shall submit a schedule for entitlement processing. Within sixty (60) days after the date of the City's execution of this Agreement, Developer shall submit for approval of the City, preliminary revised design drawings and related documents containing the overall plan for development of the Developer's Project including the following: preliminary site plan showing building layout and dimensions, parking, landscaping and access on or related to each individual parcel, floor plans, preliminary materials call-outs and conceptual building renderings and a development schedule. 6.6 Project Financial Pro Forma. Within sixty (60) days after the date of this Agreement, Developer shall submit revised overall cost and revenue estimates, project cost and revenue data including information on Project's financial return adequate to enable the City to evaluate the Developer's Business offer and economic feasibility of the proposed development of the Project. The information submitted shall be in the same Business Plan format provided in response to the Request for Proposal for Parcel 33 ore as otherwise requested by the City. The project financial pro form shall reflect any comments the City provides to the Developer on the preliminary site plan. 6.7 Additional Information. The Developer understands and agrees that the City's negotiating team reserves the right at any time to reasonably request from the Developer additional information, including information, data and commitments to ascertain the depth of the Developer's capability and desire to develop Parcel 34 expeditiously. The City's negotiating team will provide a reasonable time in which the Developer may obtain and submit to the City such additional information. 6.8 Contacts During Negotiation. The Developer shall only negotiate with the City's negotiating team as defined in writing by the Assistant City Manager and with no other persons unless expressly authorized to do so by the City's negotiating team. During the period [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 9 of 15 of negotiations, the Developer shall make no statements to the media about the proposed Project without the approval of the Assistant City Manager. The Developer's failure to comply with the provisions of this Section shall be conclusive evidence that the Developer has not "negotiated in good faith." 6.9 Environmental and Other Studies. 6.9.1 Environmental Requirements. Compliance with the Califomia Environmental Quality Act ("CEQA") is a legal precondition to any final City action to approve and execute the Parcel 34 DDA. The Developer shall cooperate with the City and abide by the City's environmental compliance procedures and fee requirements, which include but are not limited to the obligation to deposit funds to pay all of the City's costs of preparing any additional required environmental studies as may be determined. 6.9.2 Plans, Reports, Studies and Investigations. The Developer shall provide the City, without cost or expense to the City, copies of all plans, reports, studies or investigations (collectively, "Plans") prepared by or on behalf of the Developer with respect to Parcel 34 and the Project. All Plans shall be prepared at the Developer's sole cost and expense. If this Agreement is terminated for any reason other than a material breach or default hereunder by the City, the City may request that the Developer, for consideration to be mutually agreed, transfer Developer's rights to any or all Plans identified by the City, but under no event shall the cost to the City exceed five hundred dollars ($500.00). Upon such request, the Developer shall deliver to the City copies of all Plans requested by the City together with a bill of sale therefore, provided that Developer makes no representations, warrantee or guarantee regarding the completeness or accuracy of the Plans, and Developer does not covenant to convey the copyright or other ownership rights of third parties thereto. Such Plans shall thereupon be free of all claims or interests of the Developer or any liens or encumbrances. Upon the City's acquiring the Developer's rights to any or all of the Plans, the City shall be permitted to use, grant, license or otherwise dispose of such Plans to any person or entity for development of Parcel 34 or any other purpose; provided, however, that the Developer shall have no liability whatsoever to the City or any transferee or title to the Plans in connection with the use of the Plans. The City shall, within ten (10) business days of execution of this Agreement and at no cost to the Developer, provide Developer with copies of all plans, reports, studies, investigations and other materials the City may have that are pertinent to Parcel 34 and/or development of the Project provided, however, that the City makes no representations, warrantee or guarantee regarding the completeness or accuracy of such plans, reports, studies, investigations and other materials. 6.9.3 Hazardous Materials Assessment. The Parties acknowledge that, in accordance with the City of Tustin's recent acquisition of Parcel 34 from the Department of the Navy by quitclaim, the Department of the Navy found and determined that there was no contamination on Parcel 34 and issued a Finding of Suitability for Transfer ("FOST") dated April 22, 2002. The City would intend upon approval of a Parcel 34 DDA to sell and convey by quitclaim Parcel 34 to Developer in the same manner as Parcel 34 was conveyed to the City to include the covenants and warranties as identified in the Navy's quitclaim deed attached hereto as Exhibit C. [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 10 of 15 6.9.4 FOST. The City agrees to provide a copy of the FOST to Developer within 10 days of execution of this Agreement. While the Developer should undertake its own investigation to determine the presence of hazardous materials and suitability of Parcel 34 for development, the Parties acknowledge and agree that Parcel 34 shall be acquired "as is" and Developer shall release, defend, indemnify and hold the City harmless with respect to the environmental and soils condition of Parcel 34. 6.9.5 Environmental Insurance. The City agrees to negotiate with the Developer to add Developer as additional insured on the City's environmental insurance policy which covers Parcel 34 at a cost reimbursement to the City. 7.0 The Developer. 7.1 Nature of the Developer. Developer will be WL Homes, LLC, doing business as John Laing Homes or such other business entity (such as another limited liability corporation) as the City may approve, upon terms and conditions as the City may request and the Parties may agree, as specified in the Parcel 34 DDA. Concurrently with its execution of the Parcel 34 DDA, Developer shall submit a copy of the applicable formation documents relating to Developer and any corporate members of Developer (i.e., as applicable: articles of incorporation; partnership agreement; and/or limited liability corporation articles of incorporation, statement of information and operating agreement). 7.2 Offices of the Developer. The principal offices of the Developer are located at 895 Dove Street, Suite 110, Newport Beach, CA 92660. 7.3 Principals and Employees of the Developer. The principals of the Developer are as follows: Larry Webb, Chief Executive Officer Steve Kabel, President, Southern California Region Mitchell Bradford, Vice President, Southern California Region The Developer's employees or representatives who will be directly involved in the development are as follows: Dan Nahabedian, Vice President Product Development Mitchell Bradford, Vice President Land Acquisition Marianne Browne, Vice President Sales & Marketing Ken Nishikawa, Vice President Project Management Jeff Herrmann, Vice President Finance Rich Nelson, Vice President Operations Abel Avalos, Infill Land Acquisition Manager Terry Crowther, Director of Community Development 7.4 The Developer's Consultants and Professionals. [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 11 of 15 The Developer is required to make full disclosure to the City of any changes to its principals, officers, stockholders, partners, joint venturers, Project employees, and other associates and all other pertinent information concerning the Developer and its associates. Developer agrees to substitute or supplement any of its consultants and professionals as reasonably requested by the City. 8.0 The Developer's Financial Capaci ,ty. 8.1 Financial Statement. Any additional financial statements of the Developer, if requested, shall be submitted to the City or its consultant as requested by the City for the purposes of this Agreement. 8.2 manner: Ec~ui~. The Developer proposes to obtain its equity capital in the following In-house financing 8.3 Construction Financing. The Developer proposes to obtain its construction financing for the development from a reputable, institutional lender, as approved by the City. 8.4 Long-Term Development Financing. The Developer is capable of providing financing for the development of the subject site with(out) the necessity of third party financing. The Developer intends to commit to the provision of long-term development financing in the same manner as to be specified in the Parcel 33 DDA to the extent that third party financing is not otherwise advisable or available to implement the Project. 8.5 Bank and Other Financial References. The Developer's bank and other financial references are as set forth in the Developer's Parcel 33 RFP submission. 8.6 Full Disclosure. The Developer will be required to make and maintain full disclosure to the City of the methods of financing and the financing documents to be used in the development. 9.0 CiW's Responsibilities. 9.1 Environmental Requirements. A final Environmental Impact Statement/Environmental Impact Report ("EIS/EIR") has been prepared and certified for the MCAS Tustin Reuse Plan. The Developer agrees to finance and supply information and otherwise assist the City as requested to enable the City to determine the environmental impact of the proposed development under the Parcel 34 DDA and to prepare such additional environmental documents, if any, as may be needed to be completed for the development. 9.2 Assistance and Cooperation. The City shall cooperate fully in providing the Developer with appropriate information and assistance. 9.3 Ci.ty Approval. If the negotiations hereunder culminate in a Parcel 34 DDA, such agreement becomes effective only after and if the agreement has been considered and [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 12 of 15 approved by the legislative body of the City and the City Council of the City after noticed public hearing. 10.0 Miscellaneous. 10.1 Real Estate Commissions. The City shall not be liable for any real estate commission, finder's fee or any broker's fees which may arise from this Agreement. The City represents that they have not engaged any broker, agent, or finder in connection with this Agreement and the Developer agrees to hold the City its representatives harmless from any losses and liabilities arising from or in any way related to any claim by any broker, agent, or finder retained by the Developer regarding this Agreement or development of Parcel 34. 10.2 No City Du.ty. Except as expressly provided above, the City shall have no obligations or duties hereunder and no liability whatsoever in the event the Parties fail to timely execute a Parcel 34 DDA. 10.3 Non-liability of City Officials and Employees. No member, official, representative, director, staff member, attorney or employee of the City shall be personally liable to the Developer or any successor in interest in the event of any default or breach by the City or for any amount which may become due to Developer or to its successor, or on any obligations under the terms of this Agreement. 10.4 Public Hearings and Compliance. If the negotiations hereunder culminate in the Developer and the City's negotiations concurring on the terms and provisions of a Parcel 34 DDA, such Parcel 34 DDA will be considered for approval by the City only after all required public hearings have been held and after compliance with all applicable laws and ordinances. The concurrence of the City negotiators with the terms and provisions of a proposed Parcel 34 DDA under any provisions of this agreement shall not be construed or interpreted as the City approving or accepting such terms. Such concurrence shall be viewed as nothing more than the willingness of the City negotiators to recommend to the legislative body of the City and the City Council that they approve such terms. 10.5 Entire Agreement~ Attorneys' Fees. This Agreement represents the entire agreement of the Parties with respect to the matters set forth herein and supersedes any prior negotiations or contemporaneous writings or statements. This Agreement may not be amended except in writing signed by each of the Parties hereunder. If any Party brings an action or files a proceeding in connection with the enforcement of its respective rights or as a consequence of any breach by the other Party of its obligations hereunder, then the prevailing Party in such action or proceeding shall be entitled to have its reasonable attorneys' fees and out-of-pocket expenditures paid by the losing Party. 10.6 Covenant Against Discrimination. The Developer shall not discriminate against nor segregate, any person or group of persons on account of sex, race, color, age, marital status, religion, handicaps, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of Parcel 34, nor shall the Developer establish or permit any such practice or practices of discrimination or segregation in the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of Parcel 34. [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 13 of 15 10.7 Notices/Submittals. All notices or submittals required or permitted hereunder shall be delivered in person, by overnight courier, or by registered or certified mail, postage prepaid, return receipt requested to such Party at its address shown below, or to any other place designated in writing by such Party. City: Christine Shingleton, Assistant City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Developer: Mitchell Bradford, Vice President John Laing Homes 895 Dove Street, Suite 110 Newport Beach, CA 92660 Any such notice or submittal shall be deemed received upon delivery if delivered personally, one (1) day after deliver to the courier if delivered by courier and three (3) days after deposit into the United States mail if delivered by registered or certified mail. 10.8 Prohibition Against Assignments. Except as may be permitted under Section 3.3, this Agreement shall not be assigned by the Developer. 10.9 Supersession by Disposition and Development Agreement. Following mutual execution by the Parties of a Parcel 34 DDA, this Agreement shall be of no further force or effect, except that the indemnity set forth in Section 4.5.3 shall remain in effect with respect to claims arising during the term of this Agreement. In the event of any conflict between the provisions of this Agreement and any Parcel 34 DDA approved by the Parties, the provisions of the Parcel 34 DDA shall for all purposes prevail. 10.10 Confidentiality. The City and the Developer represent and warrant that each shall keep this Agreement and all information and/or reports obtained from the other, or related to or connected with Parcel 34, the other Party, this Agreement, the Parcel 34 DDA or any other documents negotiated by the Parties, confidential and will not disclose any such information to any person or entity without obtaining the prior written consent of the other Party, except that the City shall have the right to disclose any information contained in any third party reports obtained by Developer. Notwithstanding the foregoing, this Agreement, the Parcel 34 DDA and all other material relating to this Agreement are subject to the provisions of the California Public Records Act (Government Code Section 6250 et seq.). The City's use and disclosure of its agreements and records are governed by this Act. 10.11 Governing Law/Exclusive Venue. The Agreement shall be interpreted in accordance with California law. The Parties agree that in the event of litigation, exclusive venue shall be in Orange County, California. 10.12 Counterparts. This Agreement may be signed in one or more counterparts. [AEF:ab/ENA-Parce134-= 12703/011003/4182.004] Page 14 of 15 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date set opposite their signatures. "CITY" City of Tustin Dated: By: William A. Huston City Manager APPROVED AS TO FORM By: Lois Jeffrey City Attomey Dated: "DEVELOPER" WL HOMES, LLC, a Delaware Limited Liability Company, dba John Laing Homes Dated: By: Steve Kabel President, Southem California Region Dated: By: Mitchell Bradford Vice President [AEF:ab/ENA-Parce134-=12703/011003/4182.004] Page 15 of 15 Exhibit A *Not ~n official copy* 6 7 8 9 I0 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 PSOMAS Legal Description Exhibit "A" Parcel I-B-1 (Reuse Plan Disposition Site 34) In the City of Tustin, County of Orange, State of Califomia, being that portion of Blocks 61 and 62 oflrvine's Subdivision as shown on the map filed in Book 1, Page 88 of Miscellaneous Record Maps, and as shown on a map filed in Book 165, Pages 31 through 39, inclusive, of Records of Survey, both of the records of said County, described as follows: Beginning at the intersection of the northwesterly line of Harvard Avenue (having a northwesterly half-width of 36 feet) and the southwesterly line of Edinger Avenue (having a southwesterly half-width of 60 feet) as shown on said Record of Survey; thence along said northwesterly line of Harvard Avenue the following four (4) courses: 1) South 40037'53" West 1'259.59 feet to and angle point therein; 2) South 40o37'37"West1319.25 feet; 3) South 85°39'11" West 38.17 feet to a line that is parallel with and 63.00 feet northwesterly from the centerline of said Harvard Avenue; 4) South 40037'37'' West 258.51 feet along said parallel line to a point on the northwesterly line of the land described in the document recorded in Book 10657, Page 412 of Official Records of said County and as shown on sa.id Record of Survey, said point being the beginning of a non-tangent curve concave northwesterly having a radius of 1894.00 feet, a radial line to said beginning bears South 27°51 '20" East; thence southwesterly along said northwesterly tine and said curve 156.44 feet through a central angle of 4°43'57"; thence continuing along said northwesterly line South 66052'37" West 1087.44 feet to a point on a curve that is concentric with and 118.75 feet northeasterly from the centerline of Warner Avenue as shown on said Record of Survey, said curve being concave southwesterly having a radius of 1718.75 feet, a radial Page 1 of 6 F:~SurveysL2lus010200¥cports\Rcnumbcrcd Parcels\legaI-Parc¢~ l-B-l,doc 4/25/02 5:30 PM , , , Document: 2002-404592 Page: 11 *Not an official copy* I 2 3 4 5 6 7 8 9 I0 11 12 13 I4 15 16 17 18 19 20 21 22 23 24 PSOMAS Legal Description Exhibit "A" Parcel I-B-1 (Reuse Plan Disposition Site 34) line to said point bears North 68°45 '45" East; thence concentric and parallel with said centerline of Warner Avenue the following two (2) courses: 1) northerly and northwesterly along said curve 843. t 2 feet through a central angle of 28°06'22" 2) North 49020'37" West 468.05 feet to the beginning of a curve concave easterly having a radius of 35.00 feet; thence northwesterly, northerly and northeasterly along said curve 62.22 feet through a central angle of 101 °51'19" to the southeasterly line of Peters Canyon Channel (having a southeasterly half-width of 90 feet) as described in the document recorded in Book 6681, Page 721 of Official Records of said County and as shown on said Record of Survey; thence along said southeasterly line of sa/d Peters Canyon Channel North 52030'42" East 417.91 feet to the City Boundary Line between the City of Tustin and the City of Irvine as shown on said Record of Survey; thence leaving said southeasterly line and along said .City Boundary Line South 49°21 '01" East 45.99 feet to a line that is parallel with and 13 5.00 feet southeasterly from the centerline of said Peters Canyon Channel; thence along said parallel line North 52°32'09'' East 289.49 feet; thence leaving said parallel line North 37°27'51" West 5.00 feet to a line that is parallel 'with and 130.00 feet southeasterly from the centerline of said Peters Canyon Channel; thence parallel and concentric with said centerline the following three (3) courses: I) North 52o32'09" East 1277.26 feet to the beginning of a curve concave northwesterly · having a radius of2130.00 feet; 2) northeasterly along said curve 238.53 feet through a central angle of 6°24'58"; 3) North 46°07'11" East 210.47 feet to a point on said southeasterly line of Peters Canyon Channel; Page 2 of 6 F:\SurveysX2tus010200~reports\R~numbered Parcels\legal-Parcel 1-13-1 .doc 4125102 5:30 PM Document: 2002-404592 Page: 12 "Not an official copy* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PSOMAS Legal Description Exhibit "A" Parcel I-B-1 (Reuse Plan Disposition Site 34) thence along said southeasterly line the following seven (7) courses: 1) South 49°19'04'' East 20.10 feet; 2) North 46o07, 11" East 75.00 feet; 3) North 49°19'04" West 60.28 feet; 4) North 46°07'10" East 32.14 feet; 5) South 49019'04" East 60.28 feet; 6) North 46°07'11" East 75.00 feet; 7) North 49°19'04TM West 20.10 feet to a line that is parallel with and 130 feet southeasterly from said centerline of Peters Canyon Channel; thence 'leaving said southeasterly line and along said parallel line North 46o07, 11" East 1209.46 feet; thence leaving said parallel line North 43°52'49'' West 5.00 feet to a line that is parallel with and 125.00 feet southeasterly from said centerline of Peters Canyon Channel; thence along said parallel line North 46007, 11" East 58.01 feet to a point on said southwesterly line of said Edinger Avenue, said point also being the beginning of a non- tangent curve concave northeasterly having a radius of 1860.00 feet, a radial line to said beginning bears South 54o40'20" West; thence along said southwesterly line the following three (3) courses: 1) southeasterly along said curve 455.07 feet through a central angle of 14°01 '05"; 2) South 49°20'45'' East 428.16 feet to the beginning of a curve concave southwesterly having a radius of 1740.00 feet; 3) southeasterly along curve 366.87 feet through a central angle of 12°04'50'' to the point of beginning. Except the following: Page 3 of 6 F :~urveys~2tus010200~reports\Rcnumberefl Parcels\l egal-Parce I I-B- 1 .doc 4/25/02 $ :30 PM Document: 2002-404592 Page: 13 *Not an official copy* 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PSOMAS Legal Description Exhibit "A" Parcel I-B-I (Reuse Plan Disposition Site 34) All that portion °fthe above described land lying southeasterly ora line that is parallel with and 69.00 feet northwesterly from the centerline of said Harvard Avenue aK shown on said Record of Survey. 6 !! Also except the following: 7 8 Beginning at the intersection of the northwesterly line of Harvard Avenue (having a northwesterly half-width of 36 feet) and the southwesterly line of Edinger Avenue (having a southwesterly half-width of 60 feet) as shown on said Record of Survey, said southwesterly line of Edinger Avenue being a curve concave southwesterly having a radius of 1740.00 feet, a radial line to said intersection bears North 52044'05TM East; thence northwesterly along said southwesterly line and said curve 33.68 feet through a central angle of 1°06'33" to a line that is parallel with and 69 feet northwesterly from the centerline of said Harvard Avenue as shown on said Record of Survey; thence along said parallel line South 40037'53" West 1228.30 feet to the True Point of Beginning; thence. continuing along said parallel line South 40037'53" West 38.00 feet to an angle point therein; thence continuing along said parallel line South 40037'37" West 1619.79 feet to a point on the northwesterly line of the land described in the document recorded in Book 10657, Page 412 of Official Records of said County and as shown on said Record of Survey, said point being the beginning of a non-tangent curve concave northwesterly having a radius of 1894.00 feet, a radial line to said beginning bears South 27°21'58" East; thence southwesterly along said northwesterly line and said curve 140.26 feet through a central angle of 4°14'35"; thence continuing along said northwesterly line Page 4 of 6 F:XSurveys~tus010200¥eports\Renumbered Parcels\lel~aI-Parcel l-B-l,doc 4/25/02 5:30 PM Document: 2002404592 Page: 14 *Not an official copy* 3 4 5. 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PSOPIAS Legal Description Exhibit "A" Parcel I-B-1 (Reuse Plan Disposition Site 34) South 66052'37'' West 1087.44 feet to a point on a curve that is concentric with and 11 8.75 feet northeasterly from the centerline of Warner Avenue as shown on said Record of Survey, said curve being concave southwesterly having a radius of 1718.75 feet, a radial line to said point bears North 68°45'45" East; thence concentric and parallel with said centerline of Warner Avenue the following two (2) Courses: 1) northerly and northwesterly along said curve 843.12 feet through a central angle of 28006'22TM 2) North 49°20'37" West 468.05 feet to the beginning of a curve concave easterly having a radius of 35.00 feet; thence northwesterly, northerly and northeasterly along said curve 62.22 feet through a central angle of 101 °51'l 9" to the southeasterly line of Peters Canyon Channel (having a southeasterly half-width of 90 feet) as described in the document recorded in Book 6681, Page 721 of Official Records of said County and as shown on said Record of Survey; thence along said southeasterly line of Said Peters Canyon Channel North 52030'42'' East 417.91 feet to the City Boundary Line between the City of Tustin and the City of Irvine as shown on said Record of Survey; thence leaving said southeasterly line and along said City Boundary Line South 49°21 '01" East 45.99 feet to a line that is parallel with and 135.00 feet southeasterly from the centerline of said Peters Canyon Channel; thence along said parallel line North 52°32'09'' East 289.49 feet; thence leaving said parallel line North 37°27'51" West 5.00 feet to a line that is parallel with and 130.00 feet southeasterly from the centerline of said Peters Canyon Channel; thence parallel and concentric with said centerline the following three (3) courses: 1) North 52°32'09" East 1277.26 feet to the beginning of a curve concave northwesterly having a radius of 2130.00 feet; Page 5 of 6 F :\Survcys\2tusO 10200\reports\Rcnumbered Part:~ls\legal~Parcel l-B- 1 .doc 4125102 5:30 PM Document: 2002-404592 Page: 15 *Not an official copy* 2 3 4 5 6 7 g 9 10 I1 12 13 14 15 ~6 17 18 19 20 21 22 PSOPIAS Legal Description Exhibit "A" Parcel I-B-1 (Reuse Plan Disposition Site 34) 2) northeasterly along said curve 238.53 feet through a central angle of 6°24'58"; 3) North 46°07'11" East 210.47 feet to a point on said southeasterly line of Peters Canyon Channel; thence along said southeasterly line the following seven (6) courses: 1) South 49o19'04" East 20.10 feet; 2) North 46007, 11" East 75.00 feet; 3) North 49019'04" West 60.28 feet; 4) North 46o07, 10" East 32.14 feet; 5) South 49°19'04" East 60.28 feet; 6) North 46o07, 1 1" East 22.10 feet; thence leaving said southeasterly line South 49°19'04" East 1311.03 feet to the True Point of Beginning. Containing 1,604,594 square feet or 36.84 acres, more or less. As shown on Exhibit "B" attached hereto and by this reference made a part hereof. Prepared under my supervision: Walter A. Sheek, P.L.S. 4838 Page 6 of 6 F:k.qurveysk2tus010200~reports\Rcnumbercd Parccls\legaI-Parcel t-[:~-I.doc 4/25/025:30 PM Document: 2002-404592 Page: Exhibit B *Not an official copy* EXHIBIT B , : , ! I ~ PCB t, ~;, ~ -~ ~ ~ EDIN~ER AVE. ~- -£P--'~. ~-E~-~ I ~ ~ X O ~" I 0 ~ ~ ~ ~0 ~ ~ HEET 61 I -- 36' .... i~, ~ ~ ,~ ..... __ , , t ,.~ ~ ~ I ~ ~ _~1_~ ~! --131833 ~ Il "~.-I-"- ~ . I~ ~l .Z ....... ~.~l in ~.,..~. ~,...~ ....... , ........ ~-. ~ i - ' .~ ..... ~/. ~ 65 L3 s75'46'2~"w 200.83 ' '.1 P ~: · ~ I , I ~ OR- I 15919/1142 ~ ...... ~----~--- ',/ / / Cl~ ~IOF~S~N z '~ & ~ = - N49'21'01"W ~ ~ j_ ~ 3215.05' ~ ~ ....... ~ ~---}~ ..... /~, J / Cl~ ~, OF IRVINE ,- , ,, , h , A- /~ /I / ~ ~ / I . ~ I 0.R.-19970515811 ~ /~ - - ............ ~.~ ~. ~'~'~"~// : I.~~'~X MCAS-TUSTIN ~ ~ DA~ APRIL, AO02 ~)~-~ ~4)~ uUU~ER ~SmO200 Bearing Table No, Bearing Diatance L1 $¢0'37'53"W 38.00 .L2 $40'37'37"W 3a.O0 L3 S75'¢6'2:~"W 200.83 L4 N15'13'48"W 135.87 , , Document: 2002-404592 Page: 17 *Not an official copy* , ,, EXHIBIT B m ~28.4g' "~- .[ ~,~0~- ~ 7~ o O.R 83 4 · o ~F2~-~ _ N53'29'16"E _ ~ 45'E L-333. 18' ~ PARCEL l-B-1 I ~ ~ 35,8~ ACRES  ~ SEE SHE~ 1 0F 6 I -33'~56'~ 0 50 ~ O0 ~ ~ I SCALE: 1 1 ~ C~ ~ I 0 ] J zit , --1 I ~ I ~ m ~ I I I I i ~ ~VED ~Y ~ .~3.~ I OAT~- .~: ~' ~>'~-- I ........................ j SEE SHE~ I 1 OF 6 ~ I , D~IP~: EC~OMIC ~MENT ~N~Y~ P~C~ I--B'I ~ ~ ~ I SOZ~ 1'-I00' ,., DRA~D P S 0 M A S ~.~c~o ~s I IAA~ ~1 I~1~1 M~~-/U~IIN DA= APRIL, 2002 NUMBER 2~SO10ZOO .... Document: 2002-404592 Page: 18 "Not an official copy* ., EXHIBIT B I I ! SEE SHE-~ I_ 169' ,,1 OF 6 t I U0 0 5o SCALE: 1"=100' NOT A P~T ~ ~ s85'3~' ~ ~ "w ~ /' Iii ' v38,17 .~ // ~ 11~ J O,R,- 13919/1142 ~/ I1~ /-' ' 'x'~ 1 ~63 ' ~ S27'51 ' 20 "E / s27'~'~'~ , II, /-- L=1~0.26' ,~ ~ '~ ~1~ 1087 ~' / " -~EE SHE~ // 1 OF 6 D~RI~: , ~C~O~IC D~T ~~ P~ I-B-1 ~ 8 ~ ~ SCALE 1"-1~' ..... DRA~D RAT M-CAS-TUSTIN JO~ ' NUMBER 2~S010200 Document: 2002-404592 Page: 19 *Not an official copy* ,, EXHIBIT B ' / / ~ ' SEE SHEET ~Iii 1 OF 6 , / I ~ ~ iI 5/ -'~°~"'~1 it ~N37'27'51"W / / ~ / / -~ ~ .o~ A / / , , II ~ ' P CI~ OF TUS~N / / 8~2~__ __~ - S~9'21'01"E 5215.05'-- 1000,74' ~ / ~ ~ Ci~ OF IRVlNE I / / / o m / . ~/ / ~ I! ~o / '~ ~ ' ~ r~ t I c~ , R~35.OO' / ~L=62.22' ~ ~~~ L=845.12 ~ O.R.- 19970515811 J ~9~0~7'~ 468.05' / / ................... ~ ~ S~9'20'37"~ 1261.49' ~PROVEO BY ~' '~ 'r2~~ WARNER AVE.  ~ L-952 DRA~D RAT NUMBER 2~010200 Document: 2002-404592 Page: 20 'Not an official copy* ,,. EXHIBIT B , 5o ~oo I ~ ~zZ ~__ PARCEL I-B-1 SCALE: ~"= ~ 00' ~ ~ I 3S.8~ ACRES . ~ i I LOT 'IB~ :~ . ,. ~ ........... - ~-~ ~ · · ~ .................... Z'Z'; I LOT -19~ z I I [~ ~1 Bearing Toble ~ ~1 No. i Bearing Dlatance , ~ ,.L7 N~g'19'O~"W 20.10' - L6 N46'OT 11"E 75.00'  ' S40'1~'04"[ . 20.10~ I : I ~ ..... C~ N46'07'11"E 52.90' / ' L9 N~6'07' 11 "E 22,1 O' II / / ~, NOTAPART. / , SEE SHE~ ECHOIC D~M~T CONDUCE P~ I-B-1 DRIED EAT PSO~AS MCAS TUSTIN -- ~)~ ~, 2002 -- NUMBER 2~USO10200 Bearing Toble No. Bearing Dlatance , L7 N~9'19'0¢"W 20.1 O' L6 N46'07'11"E 75.D0' L5 S49'19'03"E 80,28' LC N46'O7'10"E 32,14' L3 NCg' 19'04"W 60,28'- L2 N46'07' 11 "E 74199' ...... L1 S49'19'04"E 20.10' ,, ,LB N46'07'11"E 52.90' L9 N46'07' 11 "E 22.1 O' Document: 2002-404592 Page: 21 , ,. 'Not an official copy* ,,,, EXHIBIT B I PETERS CANYON CHANNEL/- , , ARCEL F6-4,01 O.R. 6681/721 'o ' ,~ N4-6'O7'll"E ~ / · ,- N43_'5.~:.49"W 58 01' " ·/ / ~ =.uu' ~. ' r'-.' II , ~ ~. /~1t t - , SUBDIVJSJON ~S 97~dO-J5 } ~, FLS.B, -J85/85-¢9 . 36.84 ACR~ SEE SHE~ 1 0F 6 . ~.S,B, :~ov~,~~~ ~_,,,ooo,~ '~o4~~'~'~ '~::'' .~.~:.::~.~,'-' o,o~:~_~ D~RIP~: E~O~IC DE~MmT ~C¢ P~ I-8-1 ~ 6 ~ 6 SOA~ 1'=~' '" DRAF~O RAT MOAS TUSTIN ' ~ ~1 i~ ~ ~ DATE AP~I~ 2002 ~)~t-7~3 N~p~()~ NUMBER 2~S010200 Document: 2002-404592 Page: 22