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HomeMy WebLinkAboutOrd. 1423-2010ORDINANCE NO. 1423 -20 10 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA AN ORDINANCE ADOPTING A DEVELOPMENT AGREEMENT WITH CHAMBERLIN ASSOCIATES FOR REDEVELOPMENT OF THE GATEWAY BUSINESS PARKIN ACCORDANCE WITH THE GATEWAY BUSINESS PARK MASTER PLAN, ON AN APPROXIMATELY 22.6 -ACRE SITE LOCATED AT 700, 750, 800, 850, 900, AND 1000 GATEWAY BOULEVARD WHEREAS, Chamberlin Associates submitted an application requesting approval a General Plan Amendment, Zoning Text Amendment, a Master Plan., a Phase 1 Precise Plan, a preliminary Transportation Demand Management (TDM) Plan, and a Development Agreement, which would collectively authorize the phased removal and replacement of existing buildings on the 22.6 -acre project site and construction of five to six new buildings, six stories in height, and two to four parking structures, in five phases from 2011 to 2020, to be located at the corner of Gateway and Oyster Point Boulevards (700, 750, 800, 850, 900, and 1000 Gateway Boulevard), in the Gateway Redevelopment Proj ect Area and Gateway Specific Plan Area ( "Gateway Business Park Master Plan Project" or "Project "), subject to the terms of the Development Agreement ("Agreement "); and, WHEREAS, the applicant has requested approval of a. Development Agreement which would clarify and obligate several project features and mitigation measures including mitigation fees for traffic impacts; and WHEREAS, an Environmental Impact Report (EIR) has been prepared and certified, which evaluates the significant and potentially significant impacts of the development, the growth inducing impacts of the development, the cumulative impacts of the development, and alternatives to the proposed Project; and, WHEREAS, for impacts identified in the EIR as significant and unavoidable, a Statement of Overriding Considerations has been prepared and adopted, indicating that the benefits of the Project outweigh the significant unavoidable effects; and, WHEREAS, the Director of Economic and Community Development reviewed the application for the Agreement and found the proposed Agreement to be in the proper form, determined that the application was complete, and referred. the application and Agreement to the Planning Commission for a public hearing; and, WHEREAS, following a properly noticed public hearing held on January 21, 2010, the Planning Commission unanimously recommended by resolution that the City Council certify the EIR and approve the Agreement; and, WHEREAS, on February 10, 2010, pursuant to Municipal Code section 19.060.110 the City Council and Redevelopment Agency conducted a properly noticed joint public hearing on the Project, including the proposed Agreement for the Project. NOW THEREFORE, the City Council of the City of South San Francisco does hereby ORDAIN as follows: SECTION 1 FINDINGS. Based on the entirety of the record before it, which includes without limitation, the California Environmental Quality Act, Public Resources Code § 21000., et seq. ( "CEQA ") and the CEQA Guidelines, 14 California Code of Regulations § 15000, et seq.; the South San Francisco General Plan and General Plan EIR; the South San Francisco Municipal Code; the Project applications; the Gateway Business Park Master Plan and Phase 1 Precise Plan, as prepared by DGA Architects, Kenkay Associates, BKF Engineers, Surveyors, Planners, the EIR, including the Draft and Final EIR prepared for the Gateway Business Park Master Plan and appendices thereto; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed November 19, 2009, and January 21, 2010, meetings; and all site plans, reports, and public testimony submitted as part of the City Council and Redevelopment Agency's duly noticed, joint meeting of February 10, 2010; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the City of South San Francisco City Council hereby finds as follows: 1. The proposed Development Agreement for the Project is consistent with the objectives, policies, general land uses and programs specified in the General Plan, as amended and adopted. This finding is based upon all evidence in the record asp whole, including, but not limited to: the City Council's independent review of these documents. The ten -year Gateway Business Park Master Plan provides for the phased removal and replacement of existing buildings on the 22.6 -acre project site and construction of five to six new buildings, six stories in height, and two to four parking structures, totaling up to approximately 1,230,570 sf., in the Gateway Specific Plan District. The proposed project complies with all zoning, subdivision and. building regulations and with the objectives, policies, general land uses and programs specified in the General Plan. 2. The City Council has independently reviewed the proposed Development Agreement, the General Plan, the Zoning Ordinance, Title 15 of the Municipal Code, and applicable state and federal law, including California Government Code section 65864, et seq., and has determined that the proposed Development Agreement for the Project complies with all applicable zoning, subdivision, and building regulations and with the General Plan (as proposed for amendment pursuant to the Project), the Gateway Redevelopment Plan, and the Gateway Specific Plan. The Master Plan Project and Development Agreement further a number of policies articulated in these plans by facilitating the long -term phased development of a high - technology, campus -like development, that will strengthen the City's economic and employment base. The development contemplated in the Master Plan and Development Agreement is consistent with the zoning and Specific Plan standards. This finding is based upon all evidence in the record as a whole„ including, but not limited to: the City Council's independent review of these documents, oral and written evidence submitted at the public hearings on the Project, including advice and recommendations from City staff. 3. The proposed Development Agreement for the Project states its specific duration. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of the proposed Development Agreement and its determination that Section 2 of the Agreement states that the Agreement shall expire ten years from the effective date of the Agreement, which shall be concurrent with the adoption of the instant ordinance. 4. The proposed Development Agreement incorporates the permitted uses, density and intensity of use for the property subject thereto, as reflected in the approved P08 -0034, General Plan Amendment, GPA08 -0003, Zoning Amendment, ZA08 -0001, Precise Plan PP08 -0002, Master Plan, MP08 -0002, Environmental Impact Report, EIR08 -0002, Transportation Demand Management Plan, TDM08 -0001 & Development Agreement, DA08 -0001 by reference. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of the proposed Development Agreement and its determination that Section 3 of the Agreement set forth the development standards and the documents constituting the Project. 5. The proposed Development Agreement states the maximum permitted height and size of proposed buildings on the property subject thereto. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of the proposed Development Agreement and its determination that Section 3 of the Agreement sets forth the documents which state the maximum permitted height and size of buildings. SECTION 2 APPROVAL OF DEVELOPMENT AgREEMENT. The City Council of the City of South San Francisco hereby approves the proposed Development Agreement with CHAMBERLIN ASSOCIATES, attached hereto as Exhibit A and incorporated herein by reference. SECTION 3 SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 4 PUBLICATION AND EFFECTIVE DATE. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This ordinance shall become effective thirty days from and after its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 10th day of February, 2010. Adopted as an Ordinance of the City of South Francisco at a regular meeting of the City Council held the 24th day of February, 2010 by the following; vote: AYES: Councilmembers Pedro Gonzalez, Richard A. Garbarino, and Karyl Matsumoto, Vice Mayor Kevin Mullin and Mayor Mark Addiego NOES: ABSTAIN: N ABSENT: 0 City As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 24th day of February, 2010. cam' Mark Addiego, or Exhibit A Development Agreement DEVELOPMENT AGREEMENT Gateway Business Park Master Plan Project This DEVELOPMENT AGREEMENT FOR THE GATEWAY BUSINESS PARK MASTER PLAN PROJECT is dated , 2010 ( "Agreement "), between CHAMBERLIN PROPERTIES I LIMITED PARTNERSHIP, a California limited partnership ( "Owner "), and the CITY OF SOUTH SAN FRANCISCO, a municipal corporation organized and existing under the laws of the State of California ( "City "), on the other hand. Owner and the City are collectively referred to herein as "Parties." RECITALS A. WHEREAS, California Government Code ( "Government Code ") Sections 65864 through 65869.5 authorize the City to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property or on behalf of those persons having same; and, B. WHEREAS, pursuant to Government Code Section 65865, the City has adopted rules and regulations, embodied in Chapter 19.60 of the South San Francisco Municipal Code ( "Municipal Code "), establishing procedures and requirements for adoption and execution of development agreements; and, C. WHEREAS, this Agreement concerns property consisting of a 22.6 -acre site located at the corner of Gateway and Oyster Point Boulevards (700, 750, 800, 850, 900, and 1000 Gateway Boulevard), in the East of 101 Area Plan, the Gateway Redevelopment Project Area and the Gateway Specific Plan District, as shown and more particularly described in Exhibit A, attached (the "Propert y "); and D. WHEREAS, Owner has a legal or equitable interest in the Property subject to this Agreement; and, E. WHEREAS, Owner has submitted a development proposal to the City that would permit the development of the Property as depicted in (i) the Gateway Business Park Master Plan, dated October, 2009, prepared by Kenkay Associates, and (ii) the Phase 1 Precise Plan, dated October, 2009, prepared by DGA Architects, Kenkay Associates, and BKF Engineers Surveyors Planners, attached hereto as Exhibit B and Exhibit C, respectively; and F. WHEREAS, Owner has requested that the City enter into this Agreement to set forth the rights and obligations of the Parties relating to the development of the Property; and, G. WHEREAS, all proceedings necessary for the valid adoption and execution of this Agreement have taken place in accordance with Government Code Sections 65864 Page 1 of 21 Gateway Business Park Master Plan Project 2/25/2010 through 65869.5, the California Environmental Quality Act ( "CE A "), and Chapter 19.60 of the Municipal Code; and, H. WHEREAS, the City Council and the Planning Commission have found that this Agreement is consistent with the objectives, policies, general land uses and programs specified in the South San Francisco General Plan as adopted on October 13, 1999 and as amended from time to time; and, WHEREAS, on February 24, 2010, the City Council adopted Ordinance No. 1423 -2010 approving and adopting this Agreement and the Ordinance thereafter took effect on March 26, 2010. AGREEMENT NOW, THEREFORE, the Parties, pursuant to the authority contained in Government Code Sections 65864 through 65869.5 and Chapter 19.60 of the Municipal Code and in consideration of the mutual covenants and agreements contained herein, agree as follows: 1. Effective Date Pursuant to Section 19.060.140 of the Municipal Code, notwithstanding the fact that the City Council adopts an ordinance approving this Agreement, this Agreement shall be effective and shall only create obligations for the Parties from and after the date that the ordinance approving this Agreement takes effect ( "Effective Date "). 2. Duration This Agreement shall expire ten (10) years from the Effective Date, but in no event later than December 31, 2020. Notwithstanding the foregoing, if litigation against the Owner (or any of its officers, agents, employees, contractors, representatives or consultants) to which the City also is a party should delay implementation or construction on the Property of the "Project" (as defined in Section 3 below), the expiration date of this Agreement shall be extended for a period equal to the length of time from the time the summons and complaint is served on the defendant(s) until the judgment entered by the court is final and not subject to appeal; provided, however, that the total amount of time for which the expiration date shall be extended as a result of such litigation shall not exceed five (5) years. 3. Project Description; Development Standards For Project The project to be developed on the Property pursuant to this Agreement (the "Project ") shall consist of the phased removal and replacement of existing buildings on the 22.6 - acre project site and construction of five to six new buildings, three to seven levels in height, and two to four parking structures, in multiple phases from 2011 to 2020, and exterior landscaping and driveways, and other related improvements, to create a connected, pedestrian- friendly campus -style development, as more particularly described in the Master Plan (including the Master Plan Design Guidelines) and the Phase 1 Precise Page 2 of 21 Gateway Business Park Master Plan Project 2/25/2010 Plan (attached as Exhibit B and Exhibit C respectively) and as approved by the City Council. (a) The permitted uses, the density and intensity of uses, the maximum heights, locations and total area of the proposed buildings, the development schedule, the provisions for vehicular access and parking, any reservation or dedication of land, any public improvements, facilities and services, and all environmental impact mitigation measures imposed as approval conditions for the Project shall be exclusively those provided in the Master Plan and Phase 1 Precise Plan, the Environmental Impact Report or Mitigated Negative Declaration (and any addenda thereto in effect as of the Effective Date), this Agreement (as approved by the City Council), and the applicable ordinances in effect as of the Effective Date (including, but not limited to, the applicable provisions of the Municipal Code in effect as of the Effective Date), except as modified in this Agreement. The Project will be redeveloped in multiple phases. Each new phase of development will adhere to the governing Municipal Code provisions applicable to the Property as of the Effective Date (except as modified by this Agreement), as well as the development guidelines set forth in the Gateway Master Plan Development Standards, including the implementation of access, service and parking needs to support each new phase of redevelopment. During each particular redevelopment phase, Owner will maintain existing access, service and parking needs to support existing improvements located on portions of the Property, yet to be redeveloped during subsequent phases. Plan details for subsequent phases will be submitted to the City for appropriate review and approval, in the form of future Precise Plans. (b) Subject to Owner's fulfillment of its obligations under this Agreement, upon the Effective Date of this Agreement, the City hereby grants to Owner a vested right to develop and construct on the Property all the improvements for the Project authorized by, and in accordance with, the terms of this Agreement, the Master Plan and Phase 1 Precise Plan (as approved by the City Council) and the applicable ordinances in effect as of the Effective Date. (c) Upon such grant of right, no future amendments to the City General Plan, the City Zoning Code, the Municipal Code, or other City ordinances, policies or regulations in effect as of the Effective Date shall apply to the Project, except such future modifications that are not in conflict with and do not prevent the development proposed in the Master Plan and Phase 1 Precise Plan (as approved by the City Council); provided, however, that nothing in this Agreement shall prevent or preclude the City from adopting any land use regulations or amendments expressly permitted herein or otherwise required by State or Federal Law. (d) Owner shall cause the Project to be submitted for certification pursuant to the Leadership in Energy and Environmental Design (LEED) Green Building Rating System of the U.S. Green Building Council or other industry equivalent agency. Owner shall use good faith efforts to achieve a "Silver" rating, pursuant to the Page 3 of 21 Gateway Business Park Master Plan Project 2/25/2010 LEED Green Building Rating System. Provided, however, that Owner shall not be in default under this agreement if, notwithstanding Owner's good faith efforts, the Project does not receive a "Silver" (or higher) rating. 4. Permits For Project Owner shall submit Precise Plans for future phases of development of the Project, consistent with Chapter 20.57 of the South San Francisco Municipal Code, as may be amended from time to time. The future Precise Plan(s) shall address, at a minimum, the building architecture, landscaping, and common improvements required for each phase of the Project. Evaluation of future Precise Plans shall be reviewed for consistency with the Master Plan and Master Plan EIR, as approved by the City Council and vested by this Agreement, as of the Effective Date. Notwithstanding the foregoing, future Precise Plans shall comply with all applicable Uniform Codes, the Municipal Code, CEQA requirements (including any required mitigation measures) and Federal and State Laws. 5. Vesting of Approvals Upon the City's approval of the Design Review, the Master Plan and Phase 1 Precise Plan, Transportation Demand Management Plan, and this Agreement, such approvals shall vest in Owner and its successors and assigns for the term of this Agreement, provided that the successors and assigns comply with the terms and conditions of all of the foregoing, including, but not limited to, submission of insurance certificates and bonds for the grading of the Property and construction of improvements. 6. Cooperation Between Parties in Implementation of This Agreement It is the Parties' express intent to cooperate with one another and diligently work to implement all land use and building approvals for development of the Property in accordance with the terms of this Agreement. Accordingly, Owner and the City shall proceed in a reasonable and timely manner, in compliance with the deadlines mandated by applicable agreements, statutes or ordinances, to complete all steps necessary for implementation of this Agreement and development of the Property in accordance with the terms of this Agreement. The City shall proceed in an expeditious manner to complete all actions required for the development of the Project, including, but not limited to, the following: (a) Scheduling all required public hearings by the City Council and City Planning Commission; and (b) Processing and checking all maps, plans, permits, building plans and specifications and other plans relating to development of the Property filed by Owner or its nominee, successor or assign as necessary for development of the Property, and inspecting and providing acceptance of or comments on work by Owner that requires acceptance or approval by the City. Page 4 of 21 Gateway Business Park Master Plan Project 2/25/2010 7. Owner, in a timely manner, shall provide the City with all documents, applications, plans and other information necessary for the City to carry out its obligations hereunder and to cause its planners, engineers and all other consultants to submit in a timely manner all necessary materials and documents. Acquisition of Other Property; Eminent Domain In order to facilitate and insure development of the Project in accordance with the Master Plan and the City Council's approval, the City may assist Owner, at Owner's request and at Owner's sole cost and expense, in acquiring any easements or properties necessary for the satisfaction and completion of any off -site components of the Project required by the City Council to be constructed or obtained by Owner in the Council's approval of the Project and the Master Plan and Phase 1 Precise Plan, in the event Owner is unable to acquire such easements or properties or is unable to secure the necessary agreements with the applicable property owners for such easements or properties. Owner expressly acknowledges that the City is under no obligation to use its power of Eminent Domain. Maintenance Obligations on Property All of the Property subject to this Agreement shall be maintained by Owner or its successors in perpetuity in accordance with City requirements to prevent accumulation of litter and trash, to keep weeds abated, and to provide erosion control, and to comply with other requirements set forth in the Municipal Code, subject to City approval. (a) If Owner subdivides the property or otherwise transfers ownership of a parcel or building in the Project to any person or entity such that the Property is no longer under single ownership, Owner shall first establish an Owner's Association and submit Conditions, Covenants and Restrictions ( "CC &Rs ") to the City for review and approval by the City Attorney not to be unreasonably withheld. Said CC &Rs shall satisfy the requirements of Section 19.36.040 of the Municipal Code. (b) Any provisions of said CC &Rs governing the Project relating to the maintenance obligations under this section shall be enforceable by the City. 9. Reserved 10. New Taxes Any subsequently enacted City -wide taxes shall apply to the Property, provided that: (i) the application of such taxes to the Property is prospective; and (ii) the application of such taxes would not prevent development in accordance with this Agreement. 11. Assessments Nothing herein shall be construed to relieve the Property from common benefit assessments levied against it and similarly situated properties by the City pursuant to and in accordance with any statutory procedure for the assessment of property to pay for infrastructure and /or services that benefit the Property. Page 5 of 21 Gateway Business Park Master Plan Project 2/25/2010 12. Additional Conditions Owner shall comply with all of the following requirements: (a) Fees. Owner shall not be responsible for any fees imposed by the City in connection with the development and construction of the Project, except as outlined in this Agreement, the Master Plan and Phase 1 Precise Plan, and those in existence as of the effective date of the Agreement. No fee requirements (except those identified herein) imposed by the City on or after the Effective Date and no changes to existing fee requirements (except those currently subject to periodic adjustments as specified in the adopting or implementing resolutions and ordinances) that occur on or after the Effective Date, shall apply to the Project. Any existing application, processing, administrative, legal and inspection fees that are revised during the term of this Agreement shall apply to the Project provided that (i) such fees have general applicability; (ii) the application of such fees to the Property is prospective; and (iii) the application of such fees would not prevent development in accordance with this Agreement. 1) Impact Fees. Owner shall pay the East of 101 Traffic Impact fee, the Oyster Point Interchange fee, the Sewer Impact fee, and the Childcare fee, based on the application of the formulas in effect as of the time the City issues each building permit for each phase of the Project, and shall be payable substantially concurrently with, but not later than, the issuance of each such building permit. All such impact fees shall be based on net new square footage. 2) Park In -Lieu Fee. As of the Effective Date, the City is evaluating a "Park In- Lieu Fee" to support the creation of additional public open space in lieu of requiring that applicants avail one -half an acre per 1,000 new employees, to the public in the East of 101 area. If implemented, Owner will be responsible for such Park In -Lieu Fee, with a maximum cap of $4.78/sf. The actual fee, if implemented, may be lower, in which case Owner would be responsible for the actual fee in effect at the time the City issues each building permit for development subject to the fee. Owner shall receive a credit to offset a portion of the Park In -Lieu, for development of private open space created within the Gateway Master Plan. Owner's credit shall be identical to the credit, if any, allowed under the Park In -Lieu Fee program, if implemented, except that (i) in no case, shall owner receive a credit offsetting less than 25% of Owner's required fee, or more than 50% of Owner's required fee; and (ii) in no case shall zoning or building code required open areas, including but not limited to the ten - percent landscaping requirement (SSFMC, § 20.73.050(c)) and setbacks, be counted towards any offsetting credit. (b) Child Care. If the existing day care facility located at 850 Gateway Boulevard remains in place, and retains its status as a fully licensed and operational childcare facility serving at least 100 children, no additional childcare requirement (other Page 6 of 21 Gateway Business Park Master Plan Project 2/25/2010 than the City's Childcare Fee described in SSFMC, Chapter 20.115) will be imposed. However, if the 850 Gateway Boulevard facility is eliminated: 1) Owner shall construct and have ready for occupancy, a childcare facility of approximately 8,000 square feet designed to accommodate a minimum of 100 children within the Project no later than the earlier of- i. the date when the stabilized employee population within the Project reaches that required to sustain a facility that accommodates a minimum of 100 children or ii. occupancy of the final building to be constructed under the Gateway Master Plan or iii. one year prior to the expiration of this Agreement Accordingly, Owner shall submit design plans for the childcare facility no later than December 31, 2016, and shall obtain all required permits, including building permits and commence construction of the facility no later than December 31, 2017. If the childcare facility is open to the public, City and Owner may mutually agree to allow the City to operate the facility. 2) Notwithstanding the foregoing, if circumstances prevail that new construction does not exceed 650,000 square feet and the existing day care facility at 850 Gateway Boulevard is eliminated, Owner may alternatively meet this requirement by providing a one dollar ($1) per square foot in -lieu fee for the net new construction that has occurred. Each year after 2010, the per square foot fee shall automatically be increased at a rate equal to the Change from Prior Year for the Consumer Price Index —All Urban Consumers, for the San Francisco - Oakland -San Jose Area. If Owner elects to satisfy this childcare requirement through payment of this in -lieu fee, the in -lieu fee shall be paid no later than December 31, 2019. 3) If the 850 Gateway Boulevard facility is eliminated or not fully licensed and operational as described above, and Owner fails to either construct a new facility by the deadline described in paragraph 12(b)(1), or pay the in -lieu fee by the deadline described in paragraph 12(b)(2), Owner shall instead pay a fee equal to the City's estimated reasonable costs, including all costs associated with site acquisition (including, if necessary, eminent domain), environmental review, permitting, and all other expenses and fees, including attorney's fees, required to construct a childcare facility of equivalent size and quality as that described in paragraph 12(b)(1). (c) Transportation Demand Management Plan. Owner shall prepare an annual Transportation Demand Management (TDM) report, and submit same to City, to document the effectiveness of the TDM plan in achieving the goal of 35% Page 7 of 21 Gateway Business Park Master Plan Project 2/25/2010 alterative mode usage when the project is built out to a 1.0 FAR or less, or a graduated scale between 35% and 40% alternative mode usage ( "Targeted Alternative Mode Usage ") when the Project is built out between a 1.0 and 1.25 FAR, by employees within the Project. The Targeted Alternative Mode Usage will be determined as follows: FAR Alternative Mode Usage 151.0 35% 1.01-1.12 38% 1.13-1.25 40% The TDM report will be prepared by an independent consultant, retained by City with the approval of Owner (which approval shall not be unreasonably withheld or delayed) and paid for by Owner, which consultant will work in concert with Owner's TDM coordinator. The TDM report will include a determination of historical employee commute methods, which information shall be obtained by survey of all employees working in the redeveloped buildings on the Property. All non - responses to the employee commute survey will be counted as a drive alone trip. TDM monitoring shall be required and conducted pursuant to South San Francisco Municipal Code, Chapter 20.120, as that Chapter may be revised, amended, or reorganized from time to time. 1) TDM Reports: The initial TDM report for each redeveloped building on the Property will be submitted two (2) years after the granting of a certificate of occupancy with respect to the building, and this requirement will apply to all of the redeveloped buildings on the Property except the parking facilities. The second and all later reports with respect to each building shall be included in an annual comprehensive TDM report submitted to City covering all of the redeveloped buildings on the Property which are submitting their second or later TDM reports. 2) Report Requirements: The goal of the TDM program is to encourage alternative mode usage, as defined in Chapter 20.120 of the South San Francisco Municipal Code. The initial TDM report shall either: (1) state that the applicable property has achieved the Targeted Alternative Mode Usage, based on the number of employees in the redeveloped buildings at the time, providing supporting statistics and analysis to establish attainment of the goal; or (2) state that the applicable property has not achieved the Targeted Alternative Mode Usage, providing an explanation of how and why the goal has not been reached, and a description of additional measures that will be adopted in the coming year to attain the Targeted Alternative Mode Usage. 3) Penalty for Non - Compliance: If after the initial TDM report, subsequent annual reports indicate that, in spite of the changes in the TDM plan, the Targeted Alternative Mode Usage is still not being achieved, or if Owner fails Page 8 of 21 Gateway Business Park Master Plan Project 2/25/2010 to submit such a TDM report at the times described above, City may assess Owner a penalty in the amount of Fifteen Thousand Dollars ($15,000.00) per year for each percentage point below the Targeted Alternative Mode Usage goal. In determining whether a financial penalty is appropriate, City may consider whether Owner has made a good faith effort to meet the TDM goals. ii. If City determines that Owner has made a good faith effort to meet the TDM goals but a penalty is still imposed, and such penalty is imposed within the first three (3) years of the TDM plan (commencing with the first year in which a penalty could be imposed), such penalty sums, in the City's sole discretion, may be used by Owner toward the implementation of the TDM plan instead of being paid to City. If the penalty is used to implement the TDM Plan, an Implementation Plan shall be reviewed and approved by the City prior to expending any penalty funds. iii. Notwithstanding the foregoing, the amount of any penalty shall bear the same relationship to the maximum penalty as the completed construction to which the penalty applies bears to the maximum amount of square feet of Office, Commercial, Retail and Research and Development use permitted to be constructed on the Property. For example, if there is 200,000 square feet of completed construction on the Property included within the TDM report with respect to which the penalty is imposed, the penalty would be determined by multiplying Fifteen Thousand Dollars ($15,000.00) times a fraction, the numerator of which is 200,000 square feet and the denominator of which is the maximum amount of square feet of building construction, excluding parking facilities, permitted on the Property; this amount would then be multiplied by the number of percentage points below the Targeted Alternative Mode Usage goal. iv. The provisions of this section are incorporated as Conditions of Approval for the Project and shall be included in the approved TDM for the Project. (d) Transit Station or Ferry Terminal Enhancement Contribution. Owner shall pay an in -lieu fee to be used for enhancing, enlarging, repairing, restoring, renovating, remodeling, redecorating, and /or refurbishing the Caltrain Station located at 590 Dubuque Avenue, the Oyster Point Ferry terminal and/or their associated facilities. The in -lieu fee shall be in the amount of one dollar per SF of building area excluding parking structures for each phase of development and shall be payable in two (2) equal installments per phase. One -half (1/2) of the in- lieu fee shall be payable substantially concurrently with, but not later than, the issuance of the building permit for the shell of the building, and one -half (1/2) of the in -lieu fee shall be payable prior to the issuance of a Certificate of Occupancy for the shell of the building. Page 9 of 21 Gateway Business Park Master Plan Project 2/25/2010 (e) Mass Decontamination System Contribution. As Owner's "fair share" contribution to the City's emergency preparedness, Owner shall pay an in -lieu fee to be used to fund a portion of the costs of purchasing a mobile, prefabricated mass decontamination system, capable of serving ambulatory and non - ambulatory, chemically contaminated persons at a rate of not less than two hundred fifty (250) persons per hour. The in -lieu fee shall be in the amount of $0.10 per gross square foot, and shall be payable prior to the issuance of a Certificate of Occupancy for the shell of each building to be constructed as part of the project. The in -lieu fee shall be payable by Owner until the system is fully funded and shall be deposited and held in a separate account by the City. (f) EIR. The Parties will adhere to the Conditions of Approval for the Project and the Mitigations which result from the Environmental Impact Report ( "EIR ") and Mitigation Monitoring and Reporting Program ( "MMRP "). Entitlement review for future Project phases will be limited in scope, so long as consistent with the EIR and Master Plan book and Design Guidelines. 13. Indemnity Owner agrees to indemnify, defend (with counsel selected by the City subject to the reasonable approval of Owner) and hold harmless the 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 Owner, or any actions or inactions of Owner's contractors, subcontractors, agents, or employees in connection with the construction, improvement, operation, or maintenance of the Project, provided that Owner shall have no indemnification obligation with respect to gross negligence or willful misconduct of the City, its contractors, subcontractors, agents or employees or with respect to the maintenance, use or condition of any public 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). 14. Interests of Other Owners Owner has no knowledge of any reason why Owner, and any other persons holding legal or equitable interests in the Property as of the Effective Date, will not be bound by this Agreement. 15. Assignment (a) Right To Assign. Owner may at any time or from time to time transfer its right, title or interest in or to all or any portion of the Property. In accordance with Government Code Section 65868.5, the burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to Owner. As a condition precedent to any such transfer, Owner shall Page 10 of 21 Gateway Business Park Master Plan Project 2/25/2010 require the transferee to acknowledge in writing that transferee has been informed, understands and agrees that the burdens and benefits under this Agreement relating to such transferred property shall be binding upon and inure to the benefit of the transferee. (b) Notice of Assignment or Transfer. No transfer, sale or assignment of Owner's rights, interests and obligations under this Agreement shall occur without prior written notice to the City and approval by the City Manager, which approval shall not be unreasonably withheld or delayed. The City Manager shall consider and decide the matter within ten (10) days after Owner's notice, provided all necessary documents, certifications and other information evidencing the ability of the transferee's ability to perform under this Agreement, are provided to the City Manager. (c) Exception for Notice. Notwithstanding Section 15(b), Owner may at any time, upon notice to the City but without the necessity of any approval by the City, transfer the Property or any part thereof and all or any part of Owner's rights, interests and obligations under this Agreement to: (i) any subsidiary, affiliate, parent or other entity which controls, is controlled by or is under common control with Owner, (ii) any member or partner of Owner or any subsidiary, parent or affiliate of any such member or partner, or (iii) any successor or successors to Owner by merger, consolidation, non - bankruptcy reorganization or government action. As used in this subsection, "control" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies, whether through the ownership of voting securities, partnership interest, contracts (other than those that transfer Owner's interest in the property to a third party not specifically identified in this subsection) or otherwise. (d) Release Upon Transfer. Upon the transfer, sale, or assignment of all of Owner's rights, interests and obligations under this Agreement pursuant to Section 15(a), Section 15(b) or Section 15(c) of this Agreement, Owner shall be released from the obligations under this Agreement, with respect to the Property, or portion thereof, transferred, sold, or assigned, arising subsequent to the date of the City Manager's approval of such transfer, sale, or assignment or the effective date of such transfer, sale or assignment, whichever occurs later; provided, however, that if any transferee, purchaser or assignee approved by the City Manager expressly assumes any right, interest or obligation of Owner under this Agreement, Owner shall be released with respect to such rights, interests and assumed obligations. In any event, the transferee, purchaser or assignee shall be subject to all the provisions hereof and shall provide all necessary documents, certifications and other necessary information prior to City Manager approval, where such approval is required as set forth in Paragraph 15(b), above. (e) Owner's Right To Retain Specified Rights or Obligations. Notwithstanding Section 15(a) and Section 15(c), Owner may withhold from a sale, transfer or assignment of this Agreement certain rights, interests and /or obligations which Owner shall retain, provided that Owner specifies such rights, interests and /or Page 11 of 21 Gateway Business Park Master Plan Project 2/25/2010 obligations in a written document to be appended to or maintained with this Agreement and recorded with the San Mateo County Recorder prior to or concurrently with the sale, transfer or assignment of the Property. Owner's purchaser, transferee or assignee shall then have no interest in or obligations for such retained rights, interests and obligations and this Agreement shall remain applicable to Owner with respect to such retained rights, interests and /or obligations. (f) Time for Notice. Within ten (10) days of the date escrow closes on any such transfer, Owner shall notify the City in writing of the name and address of the transferee. Said notice shall include a statement as to the obligations, including any mitigation measures, fees, improvements or other conditions of approval, assumed by the transferee. Any transfer which does not comply with the notice requirements of this Section and Section 15 (b) shall not release the Owner from its obligations to the City under this Agreement until such time as the City is provided notice in accordance with Section 15(b). 16. Insurance (a) Public Liability and Property Damage Insurance. At all times that Owner is constructing any portion or phase of the Project, or any improvement related to any portion or phase of the Project, Owner shall maintain in effect a policy of comprehensive general liability insurance with a per - occurrence combined single limit of not less than ten million dollars ($10,000,000.00) and a deductible of not more than one - hundred thousand dollars ($100,000.00) per claim. The policy so maintained by Owner shall name the City as an additional insured and shall include either a severability of interest clause or cross - liability endorsement. (b) Workers Compensation Insurance. At all times that Owner is constructing any portion or phase of the Project, or any improvement related to any portion or phase of the Project, Owner shall maintain Worker's Compensation insurance for all persons employed by Owner for work at the Project site. Owner shall require each contractor and subcontractor similarly to provide Worker's Compensation insurance for its respective employees. Owner agrees to indemnify the City for any damage resulting from Owner's failure to maintain any such required insurance. (c) Evidence of Insurance. Prior to commencement of any construction of any portion or phase of the Project, or any improvement related to any portion or phase of the Project, Owner shall furnish the City satisfactory evidence of the insurance required in subsections (a) and Q2� and evidence that the carrier will provide the City at least ten (10) days prior written notice of any cancellation or reduction in coverage of a policy if the reduction results in coverage less than that required by this Agreement. 1. In the event of a reduction (below the limits required in this Agreement) or cancellation in coverage, or change in insurance carriers or policies, Page 12 of 21 Gateway Business Park Master Plan Project 2/25/2010 Owner shall, prior to such reduction, cancellation or change, provide at least ten (10) days prior written notice to the City, regardless of any notification by the applicable insurer. If the City discovers that the policies have been cancelled or reduced below the limits required in this Agreement and no notice has been provided by either insurer or Owner, said failure shall constitute a material breach of this Agreement. 2. In the event of a reduction (below the limits required by this Agreement) or cancellation in coverage, Owner shall have five (5) days in which to provide evidence of the required coverage during which time no persons shall enter the Property to construct improvements thereon, including construction activities related to the landscaping and common improvements. Additionally, no persons not employed by existing tenants shall enter the Property to perform such work until such time as the City receives evidence of substitute coverage. 3. If Owner fails to obtain substitute coverage within ten (10) days, the City may obtain, but is not required to obtain, substitute coverage and charge Owner the cost of such coverage plus an administrative fee equal to ten percent (10 %) of the premium for said coverage. (d) The insurance shall include the City, its elective and appointive boards, commissions, officers, agents, employees and representatives as additional insureds on the policy. 17. Covenants Run With The Land The terms of this Agreement are legislative in nature, and apply to the Property as regulatory ordinances. During the term of this Agreement, all of the provisions, agreements, rights, powers, standards, terms, covenants and obligations contained in this Agreement shall run with the land and shall be binding upon the Parties and their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees and all other persons or entities acquiring the Property, any lot, parcel or any portion thereof, and any interest therein, whether by sale, operation of law or other manner, and they shall inure to the benefit of the Parties and their respective successors. 18. Conflict With State or Federal Law In the event that State or Federal laws or regulations, enacted after the Effective Date, prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be modified (in accordance with Section 19 set forth below) or suspended as may be necessary to comply with such State or Federal laws or regulations. Notwithstanding the foregoing, Owner shall have the right to challenge, at its sole cost, in a court of competent jurisdiction, the law or regulation preventing compliance with the terms of this Agreement and, if the challenge in a court of competent Page 13 of 21 Gateway Business Park Master Plan Project 2/25/2010 jurisdiction is successful, this Agreement shall remain unmodified and in full force and effect. 19. Procedure for Modification Because of Conflict With State or Federal Laws In the event that State or Federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by the City, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such State or Federal law or regulation. Any such amendment or suspension of the Agreement shall be approved by the City Council in accordance with Chapter 19.60 of the Municipal Code. 20. Periodic Review (a) During the term of this Agreement, the City shall conduct "annual" and/or "special" reviews of Owner's good faith compliance with the terms and conditions of this Agreement in accordance with the procedures set forth in Chapter 19.60 of the Municipal Code. The City may recover reasonable costs incurred in conducting said review, including staff time expended and attorneys' fees. (b) At least five (5) calendar days prior to any hearing on any annual or special review, the City shall mail Owner a copy of all staff reports and, to the extent practical, related exhibits. Owner shall be permitted an opportunity to be heard orally or in writing regarding its performance under this Agreement before the City Council or, if the matter is referred to the Planning Commission, then before said Commission. Following completion of any annual or special review, the City shall give Owner a written Notice of Action, which Notice shall include a determination, based upon information known or made known to the City Council or the City's Planning Director as of the date of such review, whether Owner is in default under this Agreement and, if so, the alleged nature of the default, a reasonable period to cure such default, and suggested or potential actions that the City may take if such default is not cured by Owner. 21. Amendment or Cancellation of Agreement This Agreement may be further amended or terminated only in writing and in the manner set forth in Government Code Sections 65865.1, 65867.5, 65868, 65868.5 and Chapter 19.60 of the Municipal Code. 22. Agreement is Entire Agreement This Agreement and all exhibits attached hereto or incorporated herein contain the sole and entire agreement between the Parties concerning Owner's entitlements to develop the Property. The Parties acknowledge and agree that neither of them has made any representation with respect to the subject matter of this Agreement or any representations inducing the execution and delivery hereof, except representations set forth herein, and Page 14 of 21 Gateway Business Park Master Plan Project 2/25/2010 each Party acknowledges that it has relied on its own judgment in entering this Agreement. The Parties further acknowledge that all statements or representations that heretofore may have been made by either of them to the other are void and of no effect, and that neither of them has relied thereon in its dealings with the other. 23. Events of Default Failure by either Party to perform any material term or provision of this Agreement shall constitute a default. Owner shall also specifically be in default under this Agreement upon the happening of one or more of the following events: (a) If a warranty, representation or statement made or furnished by Owner to the City is false or proves to have been false in any material respect when it was made; or, (b) A finding and determination by the City made following an annual or special review under the procedure provided for in Government Code Section 65865.1 and Chapter 19.60 of the Municipal Code that, upon the basis of substantial evidence, Owner has not complied in good faith with the terms and conditions of this Agreement; or, (c) Owner fails to fulfill any of its obligations set forth in this Agreement and such failure continues beyond any applicable cure period provided in this Agreement. This provision shall not be interpreted to create a cure period for any event of default where such cure period is not specifically provided for in this Agreement. 24. Procedure Upon Default (a) Upon the occurrence of an event of default, either Party may terminate or modify this Agreement in accordance with the provisions of Government Code Section 65865.1 and of Chapter 19.60 of the Municipal Code, provided Paragraph 24(e) has been complied with. (b) The City shall not be deemed to have waived any claim of defect in Owner's performance if, on annual or special review, the City does not propose to terminate this Agreement. (c) No waiver or failure by the City or Owner to enforce any provision of this Agreement shall be deemed to be a waiver of any provision of this Agreement or of any subsequent breach of the same or any other provision. (d) Any actions for breach of this Agreement shall be decided in accordance with California law. The remedy for breach of this Agreement shall be limited to specific performance for obligations set forth in Section 12. (e) The non - defaulting Party shall give the defaulting Party written notice of any default under this Agreement, and the defaulting Party shall have thirty (30) days after the date of the notice to cure the default or to reasonably commence the procedures or actions needed to cure the default; provided, however, that if such Page 15 of 21 Gateway Business Park Master Plan Project 2/25/2010 PAi 26. 27. 29 default is not capable of being cured within such thirty (30) day period, the defaulting Party shall have such additional time to cure as is reasonably necessary. Attorneys Fees and Costs (a) Action By Party. If legal action by either Party is brought because of breach of this Agreement or to enforce a provision of this Agreement, the prevailing Party is entitled to reasonable attorneys' fees and court costs. (b) Action By Third Party. 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 or the Project approvals, the Parties shall cooperate in defending such action. Owner shall bear its own costs of defense as a real party in interest in any such action, and shall reimburse the City for all reasonable court costs and attorneys' fees expended by the City in defense of any such action or other proceeding. Severability If any material term or condition of this Agreement is for any reason held by a final judgment of a court of competent jurisdiction to be invalid, and if the same constitutes a material change in the consideration for this Agreement, then either Party may elect in writing to invalidate this entire Agreement, and thereafter this entire Agreement shall be deemed null and void and of no further force or effect following such election. No Third Parties Benefited No person other than the City, Owner, or their respective successors is intended to or shall have any right or claim under this Agreement, this Agreement being for the sole benefit and protection of the Parties and their respective successors. Similarly, no amendment or waiver of any provision of this Agreement shall require the consent or acknowledgment of any person not a party or successor to this Agreement. Binding Effect of Agreement The provisions of this Agreement shall bind and inure to the benefit of the Parties originally named herein and their respective successors and assigns. Relationship of Parties It is understood that this Agreement is a contract that has been negotiated and voluntarily entered into by the City and Owner and that Owner is not an agent of the City. The Parties do not intend to create a partnership, joint venture or any other joint business relationship by this Agreement. The City and Owner 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 Owner joint venturers or partners. Neither Owner nor any of Owner's agents Page 16 of 21 Gateway Business Park Master Plan Project 2/25/2010 or contractors are or shall be considered to be agents of the City in connection with the performance of Owner's obligations under this Agreement. 30. Bankruptcy The obligations of this Agreement shall not be dischargeable in bankruptcy. 31. Mortgagee Protection: Certain Rights of Cure (a) Mortgagee Protection. This Agreement shall be superior and senior to all liens placed upon the Property or any portion thereof after the date on which this Agreement or a memorandum of this Agreement is recorded with the San Mateo County Recorder, including the lien of any deed of trust or mortgage ( "Mortgage "). Notwithstanding the foregoing, no breach hereof shall defeat, invalidate, diminish or impair the lien of any Mortgage made in good faith and for value, but all of the terms and conditions contained in this Agreement shall be binding upon and effective against all persons and entities, including all deed of trust beneficiaries or mortgagees ( "Mortgagees "), who acquire title to the Property or any portion thereof by foreclosure, trustee's sale, deed in lieu of foreclosure or otherwise. (b) Mortgagee Not Obligated. No foreclosing Mortgagee shall have any obligation or duty under this Agreement to construct or complete the construction of any improvements required by this Agreement, or to pay for or guarantee construction or completion thereof. The City, upon receipt of a written request therefor from a foreclosing Mortgagee, shall permit the Mortgagee to succeed to the rights and obligations of Owner under this Agreement, provided that all defaults by Owner hereunder that are reasonably susceptible of being cured are cured by the Mortgagee as soon as is reasonably possible. The foreclosing Mortgagee thereafter shall comply with all of the provisions of this Agreement. (c) Notice of Default To Mortgagee. If the City receives notice from a Mortgagee requesting a copy of any notice of default given to Owner hereunder and specifying the address for service thereof, the City shall deliver to the Mortgagee concurrently with service thereof to Owner, all notices given to Owner describing all claims by the City that Owner has defaulted hereunder. If the City determines that Owner is in noncompliance with this Agreement, the City also shall serve notice of noncompliance on the Mortgagee, concurrently with service thereof on Owner. Until such time as the lien of the Mortgage has been extinguished, the City shall: 1. Take no action to terminate this Agreement or exercise any other remedy under this Agreement, unless the Mortgagee shall fail, within thirty (30) days of receipt of the notice of default or notice of noncompliance, to cure or remedy or commence to cure or remedy such default or noncompliance; provided, however, that if such default or noncompliance is of a nature that cannot be remedied by the Mortgagee or is of a nature that can only Page 17 of 21 Gateway Business Park Master Plan Project 2/25/2010 be remedied by the Mortgagee after such Mortgagee has obtained possession of and title to the Property, by deed -in -lieu of foreclosure or by foreclosure or other appropriate proceedings, then such default or noncompliance shall be deemed to be remedied by the Mortgagee if, within ninety (90) days after receiving the notice of default or notice of noncompliance from the City, (i) the Mortgagee shall have acquired title to and possession of the Property, by deed -in -lieu of foreclosure, or shall have commenced foreclosure or other appropriate proceedings, and (ii) the Mortgagee diligently prosecutes any such foreclosure or other proceedings to completion. 2. If the Mortgagee is prohibited from commencing or prosecuting foreclosure or other appropriate proceedings by reason of any process or injunction issued by any court or by reason of any action taken by any court having jurisdiction over any bankruptcy or insolvency proceeding involving Owner, then the times specified above for commencing or prosecuting such foreclosure or other proceedings shall be extended for the period of such prohibition. (d) Performance By Mortgagee. Each Mortgagee shall have the right, but not the obligation, at any time prior to termination of this Agreement, to do any act or thing required of Owner under this Agreement, and to do any act or thing not in violation of this Agreement, that may be necessary or proper in order to prevent termination of this Agreement. All things so done and performed by a Mortgagee shall be as effective to prevent a termination of this Agreement as the same would have been if done and performed by Owner instead of by the Mortgagee. No action or inaction by a Mortgagee pursuant to this Agreement shall relieve Owner of its obligations under this Agreement. (e) Mortgagee's Consent To Modifications. Subject to the sentence immediately following, the City shall not consent to any amendment or modification of this Agreement unless Owner provides the City with written evidence of each Mortgagee's consent, which consent shall not be unreasonably withheld, to the amendment or modification of this Agreement being sought. Each Mortgagee shall be deemed to have consented to such amendment or modification if it does not object to the City by written notice given to the City within thirty (30) days from the date written notice of such amendment or modification is given by the City or Owner to the Mortgagee, reasonable evidence of the delivery of which notice shall be provided to the City if given only by Owner. 32. Estoppel Certificate Either Party from time to time may deliver written notice to the other Party requesting written certification that, to the knowledge of the certifying Party, (i) this Agreement is in full force and effect and constitutes a binding obligation of the Parties; (ii) this Agreement has not been amended or modified either orally or in writing, or, if it has been amended or modified, specifying the nature of the amendments or modifications; and Page 18 of 21 Gateway Business Park Master Plan Project 2/25/2010 (iii) the requesting Party is not in default in the performance of its obligations under this Agreement, or if in default, describing therein the nature and monetary amount, if any, of the default. A Party receiving a request hereunder shall endeavor to execute and return the certificate within ten (10) days after receipt thereof, and shall in all events execute and return the certificate within thirty (30) days after receipt thereof. However, a failure to return a certificate within ten (10) days shall not be deemed a default of the Party's obligations under this Agreement and no cause of action shall arise based on the failure of a Party to execute such certificate within ten (10) days. The City Manager shall have the right to execute the certificates requested by Owner hereunder. The City acknowledges that a certificate hereunder may be relied upon by permitted transferees and Mortgagees. At the request of Owner, the certificates provided by the City establishing the status of this Agreement with respect to any lot or parcel shall be in recordable form, and Owner shall have the right to record the certificate for the affected portion of the Property at its cost. 33. Force Majeure Notwithstanding anything to the contrary contained herein, either Party shall be excused for the period of any delay in the performance of any of its obligations hereunder, except the payment of money, when prevented or delayed from so doing by certain causes beyond its control, including, and limited to, major weather differences from the normal weather conditions for the South San Francisco area, war, acts of God or of the public enemy, fires, explosions, floods, earthquakes, invasions by non - United States armed forces, failure of transportation due to no fault of the Parties, unavailability of equipment, supplies, materials or labor when such unavailability occurs despite the applicable Party's good faith efforts to obtain same (good faith includes the present and actual ability to pay market rates for said equipment, materials, supplies and labor), strikes of employees other than Owner's, freight embargoes, sabotage, riots, acts of terrorism and acts of the government and /or a material adverse change in the financial and commercial real estate demand markets, conditions which indicate an insufficient economic return, including resource scarcities that make construction prohibitively expensive and/or the inability of Owner to obtain funds for the Project, due to the financial marketplace, (other than Owner's inability to obtain financing related to Owner's financial condition) and are beyond the control or without the fault of the party claiming an extension of time. The Party claiming such extension of time to perform shall send written notice of the claimed extension to the other Party within thirty (30) days from the commencement of the cause entitling the Party to the extension. 34. Rules of Construction and Miscellaneous Terms (a) The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, "may" is permissive. (b) Time is and shall be of the essence in this Agreement. (c) Where a Party consists of more than one person, each such person shall be jointly and severally liable for the performance of such Party's obligation hereunder. Page 19 of 21 Gateway Business Park Master Plan Project 2/25/2010 (d) The captions in this Agreement are for convenience only, are not a part of this Agreement and do not in any way limit or amplify the provisions thereof. (e) This Agreement shall be interpreted and enforced in accordance with the laws of the State of California in effect on the date thereof. (f) This Agreement may be executed in multiple originals, each of which is deemed an original, and may be signed in counterparts. 35. Exhibits Exhibits to this Agreement, including the following, are all incorporated into this Agreement by reference, as if set forth fully herein. Exhibit A — Legal Description and Map of Property Exhibit B — Gateway Business Park Master Plan Exhibit C — Gateway Business Park Phase 1 Precise Plan Exhibit D — Conditions of Project Approval and MMRP 36. Notices All notices required or provided for under this Agreement shall be in writing and delivered in person (to include delivery by courier) or sent by certified mail, postage prepaid, return receipt requested or by overnight delivery service. Notices to the City shall be addressed as follow: City Clerk P.O. Box 711, 400 Grand Avenue South San Francisco, CA 94080 Notices to Owner shall be addressed as follows: Chamberlin Associates 5880 W. Las Positas Boulevard, Suite 34 Pleasanton, CA 94588 -8552 Attn: A party may change its address for notice by giving notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address. Page 20 of 21 Gateway Business Park Master Plan Project 2/25/2010 IN WITNESS WHEREOF this Agreement has been executed by the Parties on the day and year first above written. CITY: CITY OF SOUTH SAN FRANCISCO M Barry M. Nagel, City Manager ATTEST: City Clerk APPROVED AS TO FORM: Steven T. Mattas, City Attorney OWNER: CHAMBERLIN PROPERTIES I LIMITED PARTNERSHIP a California limited partnership By: Print Name: Print Title: Page 21 of 21 Gateway Business Park Master Plan Project 2/25/2010 EXHIBIT A PROPERTY DESCRIPTION lr g g z o 50, zi OD Cg Ing wig! 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I CL 3: w C) C) LO 00 -158- 04 o Ml it F3 s 1-3 U) z 0 uj uj uj 0 C) LO co tzL Lk CL u3 w sx 0 ao Lu uj cc 00 Lf (—T-� IN (n z CL W 0 O vs Nw Nd UJ U- -160- t-I FA -!! = =:I AA 0 LL i LO a. > Lu W D 0 co N V6 Cs Z uj U- -161- Ir 1.*M Ail.,oec M:Iia* . �� } u Z D 0 Joe 4 w CA z LU �§§ Z LL \ ^ \ ƒ� � \ CALW!R" —162— 0 z uj z uj } � CL � � \ ul CA w \ }�§ Z 0 F, cc co Li. w i . -163- amom FA'!g Ad RA C/) _j W O w xm ca C,J X 'I Q z4 D LU LL EXHIBIT D GATEWAY BUSINESS PARK CONDITIONS OF APPROVAL AND MMRP Exhibit D PROPOSED CONDITIONS OF APPROVAL Gateway Business Park Master Plan and Phase 1 Precise Plan Project P08 -00349 PP08 -0002 & MP08 -0002 (As approve by the Planning Commission on January 21, 2010) A. Planning Division requirements shall be as follow: The project shall be constructed substantially as indicated on the attached Gateway Business Park Master Plan and the Phase 1 Precise Plan, as prepared by DGA Architects, Kenkay Associates, BKF Engineers, Surveyors, Planners; the EIR, including the Draft and Final EIR prepared for the Gateway Business Park Master Plan. and appendices thereto; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed November 19, 2009, and January 21, 2010, meetings; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), except as otherwise modified by the following conditions: 1. The applicant shall comply with all applicable mitigation measures identified in the Gateway Business Park Master Plan EIR and the Mitigation Monitoring and Reporting Program (MMRP). — Prior to issuance of the first building permit the applicant shall prepare a checklist outlining mitigation measures and status of implementation. 2. The parking ratio for the Master Plan and Precise Plan project shall not exceed 2.73 spaces per 1,000 square feet at any time. The current and all future Precise Plan applications shall include site development plans that specify the campus -wide parking ratio does not exceed 2.73 spaces per 1,000 square feet. If the campus -wide ratio exceeds the 2.73 spaces per 1,000 square feet ratio, the developer shall provide a site plan that indicates how parking spaces on the entire campus will be allocated and used. 3. Prior to approval of the first building permit, the developer shall submit a Phase 1, Precise Plan landscaping, open space, plaza, central spine plan package, and loading area screening, consistent with the approved the Gateway Business Park Master Plan, for approval by the City's Chief Planner. 4. Prior to approval of the first building permit, the developer shall submit a Phase 1, Precise Plan vehicle circulation plan, showing the location and proposed designs for shuttle stops, for the project, consistent with the approved the Gateway Business Park Master Plan, for approval by the City's Chief Planner. 5. Prior to approval of the first building permit, the developer shall submit building material and color samples for the Phase 1, Precise Plan, for approval by the City's Chief Planner. Exhibit D — Conditions of Approval Page 2 of 10 Prior to issuance of the first building permit, the applicant shall provide appropriate evidence to ensure that buildings are designed so that the calculated hourly average noise levels during the daytime does not exceed and Ley of 45dBA, and instantaneous maximum noise levels do not exceed 60 dBA. 7. The applicant shall cooperate with the City in the development /implementation of a regional shuttle service if such is considered by the City. TDM a. In accordance with South San Francisco Municipal Code Section 20.120.070, prior to issuance of a building permit the applicant shall submit a Final TDM Plan for review and approval by the Chief Planner. The Final TDM Plan shall be consistent all requirements and standards identified in SSFMC Chapter 20.120, Transportation Demand Management, as amended by the City Council, and shall substantially reflect the "Gateway Business Park Transportation Demand Management Program ", prepared by Fehr & Peers, Transportation Consultants, dated May 4, 2009. b. The applicant shall be required to reimburse the City for program costs associated with monitoring and enforcing the TDM program. 9. Prior to approval of the first building permit, the developer shall submit a Phase 1, Precise Plan building signage and monument package, consistent with the approved Master Sign Program for the Gateway Business Park Master Plan, for approval by the City's Chief Planner. 10. All roof - mounted equipment, emergency generators, garbage areas, and storage areas shall be contained in screened enclosures. The design, materials, color, and location of all enclosures shall be subject to the review and approval of the City's Chief Planner. 11. All vehicle loading areas shall be appropriately screened from view from any street, open space area, plaza, and pedestrian walkway, consistent with the approved the Gateway Business Park Master Plan, for approval by the City's Chief Planner. 12. The applicant shall comply with all standard conditions as outlined in the "Standard Conditions and Limitations for Commercial Industrial and Multi - Family Residential Projects ", dated Revised February 1999. Accordingly, minor changes or deviations from the approved plans may be approved by the Chief Planner; significant changes shall require approval of the Planning Commission. (Planning Division contact: Michael Lappen, Economic Development Coordinator (650) 877- 8535) Exhibit D — Conditions of Approval Page 3of10 B. Engineering Division requirements shall be as follow: STANDARD CONDITIONS A. The developer shall comply with the applicable conditions of approval for commercial projects, as detailed in the Engineering Division's "Standard Conditions for Commercial and Industrial Developments ", contained in our "Standard Development Conditions" booklet, dated January 1998. This booklet is available at no cost to the applicant from the Engineering Division. B. The developer shall obtain a demolition permit to demolish the existing buildings. The demolition permit shall be obtained from the Building Division and the developer shall pay all fees and deposits for the permit. The developer shall provide letters from all public utilities stating all said utilities have been properly disconnected from the existing buildings. The developer shall submit a spreadsheet to the City's Engineering Division of the existing buildings which are slated for demolitions. The spreadsheet will include the square footage and usage of each building for the determination of credits of East of 101 traffic impact fees. C. The developer shall provide the City with a soils report, preliminary grading plan and a cash deposit of $5,000 for peer review. Any grading in excess of 50 cubic yards shall require a grading permit. The developer shall be responsible to pay all fees, a $30,000 cash deposit for enviromnental compliance /SWPPP inspections, and bonds. D. The developer shall provide the City with a traffic study to evaluate how the project will affect the Gateway /Oyster Point Boulevard (OPB) Intersection, OPB /Veterans Intersection, OPB /1000 Gateway Driveway, OPB /Eastern Driveway and the Gateway /East Grand Avenue Intersection. The traffic study should also evaluate onsite circulation and identify any onsite or offsite related improvements to ensure safe ingress /egress into, out and on the project. The traffic study should include and evaluate area for pullouts for shuttle service along Gateway or on -site. E. The developer shall hire a licensed land surveyor to set the property lines and determine the setback lines. The surveyor shall all stake all foundations and stamp and submit a letter to the Engineering Division stating the property lines have been properly established and the new structures are located away from the setback area. F. Any work performed in the City's right -of -way shall require an encroachment permit. The encroachment permit can be obtained at the Engineering Division. The developer shall be responsible to bring in 4 copies of the plans and pay all fees and deposits. Exhibit D — Conditions of Approval Page 4 of 10 II. SPECIAL CONDITIONS a. The developer shall remove and replace all existing sidewalk or install new sidewalk fronting the project, which will connect to the existing bus stop near 700 Gateway Blvd. The new sidewalk shall comply with the City's standard detail and shall provide any required ADA handicap ramps. The work will be completed on a phase by phase basis such that the scope of each Precise Plan will include sidewalk along the street frontage associated with that particular Price Plan. All work shall be done at no cost to the City. b. Any monument signs shall be placed completely on private property. The footing of such signs shall remain on private property, out of the City's right -of -way. The developer shall provide the Engineering Division with lines of sight analyses for each monument sign in close proximity of any project driveway. c. Project driveways shall be the City's standard detail for a commercial driveway. The grade of each driveway cannot exceed a 12% grade. Unless controlled by a traffic signal, the developer shall install a R1 "STOP" sign at each exit driveway from the project. d. The traffic signals located at the intersection of Gateway Blvd. /Oyster Point Blvd. and the entry to the project between 700 and 800 Gateway Blvd. shall be upgraded to video detection at no cost to the City. The developer shall contact the City's Public Works Department to obtain a list of approved traffic video detection systems. e. Due to construction vehicle traffic, the developer shall improve the street fronting their development with new asphalt /slurry seal. The developer will document the condition of the street that fronts the buildings for each particular Precise Plan phase before and after construction and make any necessary repairs to any deterioration on the impacted streets fronting that particular phase resulting from the construction process. An improvement plan shall be submitted to the Engineering Division for review and approval. f. The developer shall coordinate work with California Water Service for all water utility work. g. The developer shall submit a utility plan showing all sewerlines, storm drainlines, and waterlines. The developer shall be allowed to used the existing sanitary connections and will ensure they are correctly sized for the project. A sanitary sewer manhole shall be installed onsite, near the property line, to serve as a cleanout for the lateral as it connects to the City's sanitary sewer system. All sewerlines located on -site shall remain private and the developer shall be responsible to maintain those lines. Proper easements shall be existing or created to run utilities lines from one parcel through the other parcels. Exhibit D — Conditions of Approval Page 5 of 10 h. The developer shall confirm the capacity of the sewer trunk lines located in the City's right -of -way to determine that the existing infrastructure will be able to accommodate the new flows generated by the project. i. The developer shall prepare and submit a drainage report for each development phase for review and approval by the Engineering Division. The report shall include pre - and post - development flows. Should the post- development flows increase, the developer shall confirm the capacity of the storm drain trunk lines downstream from the project is adequate for the increase flow. j . The developer shall incorporate bio- grassy swales and other Best Management Practices as stormwater measures within the project and shall be approved by the Engineering Division and the Environmental Compliance Manager. The developer shall submit all required stormwater forms and application to the Environmental Compliance Manager. k. During the construction of the project, the developer shall ensure all dust mitigation measures are enforced. The Environmental Compliance Officers shall conduct site visits to inspect all environmental mitigation measures are in place and are effective. 1. Prior to the issuance of a Building Permit for the project, the applicant shall pay the Oyster Point Overpass Contribution Fee, East of 101 Traffic Impact Fee and Sewer System Capacity and Improvement Fee. III. FEE CREDITS The project includes the demolition of 2 single story R &D office buildings and 1 Childcare Facility. The following is the calculation for fee credits towards the Oyster Point Overpass Contribution and East of 101 Traffic Impact Fee. Childcare Facility: 19,272 square feet. No credits can be given to this use as it is an ancillary facility to support the employees of the 2 single story R &D office buildings. No trips are generated from this childcare facility. 2 single story R &D offices: 95,400 square feet. Fee credits shall be based on trips: 95,400 sq. ft. x (5.30 trips / 1,000 sq. ft.) = 505.62 trips IV. OYSTER POINT OVERPASS CONTRIBUTION FEE Prior to receiving a Building Permit for the proposed new office /R &D development, the applicant shall pay the Oyster Point. Overpass fee, as determined by the City Engineer, in accordance with City Council Resolutions 102 -96 and 152 -96. The fee will be calculated upon Exhibit D — Conditions of Approval Page 6 of 10 reviewing the information shown on the applicant's construction plans and the latest Engineering News Record San Francisco Construction Cost Index at the time of payment. The estimated fee for the entire subject 291,000 GSF office and R &D development is calculated below. (The number in the calculation, "9286.17 ", is the July 2008 Engineering News Record San Francisco construction cost index, which is revised each month to reflect local inflation changes in the construction industry.) Trip Calculation 359,800 gsf R &D use @ 5.30 trips per 1000 gsf = 1,906.94 new vehicle trips less 505.62 trips (credit) = 1,402 new net trips Contribution Calculation 1,402 trips X $154 X (9286.17/6552.16) _ $ 305,999.61 V. EAST OF 101 TRAFFIC IMPACT FEES Prior to the issuance of a Building Permit for any building within the proposed project, the applicant shall pay the East of 101 Traffic Impact fee, in accordance with the resolution adopted by the City Council at their meeting of May 23, 2007. Fee Calculation (effective July 31, 2008) 359,800 gsf Office /R &D @ $4.60 per each square foot =$ 1,655,080.00 Traffic Impact Fee = $ 196559080.00 VI. EAST OF 101 SEWER IMPACT FEES (effective July 31, 2008) The City of South San Francisco has identified the need to investigate the condition and capacity of the sewer system within the East of 101 area, downstream of the proposed office /R &D development„ The existing sewer collection system was originally designed many years ago to accommodate warehouse and industrial use and is now proposed to accommodate uses, such as offices and biotech facilities, with a much greater sewage flow. These additional flows, plus groundwater infiltration into the existing sewers, due to ground settlement and the age of the system, have resulted in pumping and collection capacity constraints. A study and flow model is proposed to analyze the problem and recommend solutions and improvements. The applicant shall pay the East of 101 Sewer Facility Development Impact Fee, as adopted by the City Council at their meeting of October 23, 2002. Exhibit D — Conditions of Approval Page 7of10 The adopted fee is $3.19 per gallon of discharge per day (this fee is adjusted on a yearly basis). It is determined that Office/R &D generate 400 gallons per day per 1000 square feet of development. 0.4 g/sf (400 gpd/1000 sq. ft.) x $3.74 per gallon x 359,800 sq. ft. _ $5389260.80 The sewer contribution shall be due and payable prior to receiving a building permit for each phase of the development. Total estimated fees: Oyster Point Overpass Fee $ 3059999.61 East of 101 Traffic Impact Fee $ 196559080.00 East of 101 Sewer Improvements Fee $ 5381,260.80 Total $ 2,499,340.41 (Engineering Division contact: Sam Bautista, Senior Civil Engineer (650) 829 -6652) C. Police Department requirements shall be as follow: (July 8, 2008) A. Municipal Code Compliance The applicant shall comply with the provisions of Chapter 15.48 of the Municipal Code, "Minimum Building Security Standards" Ordinance revised May 1995. The Police Department reserves the right to make additional security and safety conditions, if necessary, upon receipt of detailed / revised building plans. (Police Department contact person: Sgt. John Kallas, 877 -8927) D. Fire Prevention Division requirements shall be as follow: 1. All buildings require fire sprinklers. Please submit separate plans. 2. Plans shall conform to NFPA 13 and City of South San Francisco Municipal Code, Section 15.24.110. 3. Exterior canopies and overhangs require fire sprinklers. 4. All fire sprinklers piping; in the parking garage shall be corrosion resistant, either painted or galvanized. Exhibit D — Conditions of Approval Page 8of10 5. All buildings require fire alarms. Please submit separate plans. 6. Provide a horn/strobe at the front of the building, which will activate upon fire sprinkler or alarm notification. Plans shall conform to NFPA 72 and City of South San Francisco Municipal Code, Section 15.24.150. 7. All buildings require fire extinguishers. 8. Provide adequate premise identification (address) on the building per the City of South San Francisco Municipal Code, Section 15.24.100. 9. Provide smoke control management system for the high -rise building in accordance with California Fire Code (CFC). 10. These buildings will be equipped with a fire communication system. Due to the nature of the construction in most high -rise and parking structure type buildings communications between fire crews, incident commanders and county communication is difficult and sometimes even non - existent. 11. The access at the rear of property does not meet the CFC, provide access or provide an Alternate Means and Methods of Construction (AMMO) to mitigate this requirement. The AMMC shall be submitted and approved by the Fire Chief prior to the issuance of a building permit. (Contact: Luis DeSilva, Fire Marshal: 650 829 -6645) E. Water Quality Control Department requirements shall be as follow: The following items must be included in the plans or are requirements of the Stormwater and/or Pretreatment programs and must be completed prior to the issuance of a permit: 1. A plan showing the location of all storm drains and sanitary sewers must be submitted. 2. Encourage the use of pervious pavement where possible. 3. The onsite catch basins are to be stenciled with the approved San Mateo Countywide Stormwater Logo (No Dumping! Flows to Bay). 4. Storm water pollution preventions devices are to be installed. A combination of landscape based controls (e.g., vegetated swales, bioretention areas, planter /tree boxes, and ponds) and manufactured controls (vault based separators, vault based media filters, and other removal Exhibit D — Conditions of Approval Page 9of10 devices) are required. Existing catch basins are to be retrofitted with catch basin inserts or equivalent. These devices must be shown on the plans prior to the issuance of a permit. If possible, incorporate the following: • vegetated/grass swale along perimeter • catch basin runoff directed to infiltration area • notched curb to direct runoff from parking area into swale • roof drainage directed to landscape • use of planter boxes instead of tree grates for stormwater treatment Manufactured drain inserts alone are not acceptable they must be part of a treatment train. One of the following must be used in series with each manufactured unit: swales, detention basins, media (sand) filters, bioretention areas, or vegetated buffer strips. Treatment devices must be sized according to the WEF Method or the Start at the Source Design. Please state what method is used to calculate sizing. The applicant must submit a signed Operation and Maintenance Information for Stormwater Treatment Measures form for the stormwater pollution prevention devices installed. 6. The applicant must submit a signed maintenance agreement for the stormwater pollution prevention devices installed. Each maintenance agreement will require the inclusion of the following exhibits: a. A letter -sized reduced -scale site plan that shows the locations of the treatment measures that will be subject to the agreement. b. A legal description of the property. A maintenance plan, including specific long -term maintenance tasks and a schedule. It is recommended that each property owner be required to develop its own maintenance plan, subject to the municipality's approval. Resources that may assist property owners in. developing their maintenance plans include: i. The operation manual for any proprietary system purchased by the property owner. 7. The owner or his representative must file this agreement with the County of San Mateo and documentation that the County received it must be sent to the Technical Services Supervisor. 8. Applicant must complete the Project Applicant Checklist for NPDES Permit Requirements prior to issuance of a permit and return to the Technical Services Supervisor at the WQCP. Exhibit D — Conditions of Approval Page 10 of 10 9. Roof condensate must be routed to sanitary sewer. This must be shown on plans prior to issuance of a permit. 10. Trash handling area must be covered, enclosed and must drain to sanitary sewer. This must be shown on the plans prior to issuance of a permit. 11. Loading dock areas must be covered and any drain must be connected to the sanitary sewer system. This must be shown on plans prior to issuance of a permit. 12. Install separate water meters for the process, domestic, landscape, and any food service facility. 13. Install a separate non - pressurized process line for sample monitoring if necessary before mixing with domestic waste in the sanitary sewer. This must be shown on the plans prior to the issuance of a permit. 14. Install a flow meter to measure process flow. 15. Fire sprinkler system test /drainage valve should be plumbed into the sanitary sewer system. This must be shown on the plans prior to issuance of a permit. 16. A construction Storm Water Pollution Prevention Plan must be submitted and approved prior to the issuance of a permit. 17. Plans must include location of concrete wash out area and location of entrance /outlet of tire wash. 18. A grading and drainage plan. must be submitted. 19. An erosion and sediment control plan must be submitted. 20. Applicant must pay sewer connection fee at a later time based on anticipated flow, BOD and TSS calculations. 21. Must file a Notice of Termination with the WQCP when the project is completed. (Contact: Cassie Prudhel, Environmental Compliance Coordinator (650) 829 -3840) Mitigation Monitoring and Reporting Program V. MITIGATION MONITORING PROGRAM Section 21081.6 of the Public Resources Code requires a Lead Agency to adopt a "reporting or monitoring program for the changes made to the project or conditions of project approval, adopted in order to mitigate or avoid significant effects on the environment" (Mitigation Monitoring Program [MMP], § 15097 of the CEQA Guidelines provides additional direction on mitigation monitoring or reporting). The City of South San Francisco is the Lead Agency and the project sponsor for the Gateway Business Park Master Plan project and is therefore responsible for enforcing and monitoring most of the mitigation measures in this mitigation monitoring program. The Draft EIR was prepared to address the potential environmental impacts of the proposed project. Where appropriate, this document identified project design features or recommended mitigation measures to avoid or to mitigate identified potential impacts to a level where no significant impact on the environment would occur. This MMP is designed to monitor implementation of the mitigation measures identified for the project in the DEIR. The MMP for the Gateway Business Park Master Plan project will be in place throughout all phases of the project. The project sponsor (Chamberlin Associates) shall be responsible for implementing all mitigation measures unless otherwise noted. The City's existing planning, engineering, review and inspection processes will be used as the basic foundation for the MMP procedures and will also serve to provide the documentation for the reporting program. City of South San Francisco This page left blank intentionally. 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