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HomeMy WebLinkAboutOrd 1349-2005ORDINANCE NO. 1349-2005 AN ORDINANCE ADOPTING A DEVELOPMENT AGREEMENT FOR THE 333 OYSTER POINT SLOUGH ESTATES PROJECT LOCATED IN THE CITY OF SOUTH SAN FRANCISCO WHEREAS, on October 21, 2004, the Planning Commission of the City of South San Francisco conducted a study session to provide comments on a proposed research and development/office project consisting of three research and development/office buildings and a six level parking garage located on the north side of Oyster Point Boulevard opposite of Eccles Avenue; and WHEREAS, on February 17, 2005, the Planning Commission heard testimony and received evidence on the proposed project, including the proposed Development Agreement; and WHEREAS, in accordance with the California Environmental Quality Act, an Environmental Impact Report ("EIR") and Statement of Overriding Considerations was certified and adopted on March 9, 2005, prior to any action on the Development Agreement; and WHEREAS, pursuant to Municipal Code Section 19.60.050, the Director of Economic and Community Development has reviewed the Amendment and found it to be in the proper form and thereafter referred the Amendment to the Planning Commission for a public heating; and WHEREAS, on February 17, 2005, at a duly noticed public hearing of the City of South San Francisco Planning Commission, the Commission heard testimony and received evidence regarding the proposed Development Agreement, and thereafter, on a unanimous vote, recommended that the City Council adopt the proposed Agreement; and WHEREAS, on March 9, 2005, pursuant to Municipal Code Section 19.060.110 the City Council conducted a properly noticed public hearing on the proposed Development Agreement for the project. NOW THEREFORE, the City Council of the City of South San Francisco does hereby ordain as follows: Section 1. Findings The proposed Development Agreement for the 333 Oyster Point 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 as a whole, including, but not limited to: the City Council's independent review of the General Plan, the findings adopted in support of the Use Permit and the EIR. The Project provides high value jobs for persons in the biotechnology fields and the campus style development that includes an aggressive Transportation Demand Management Program and public art. The Agreement specifies the permitted uses on the property and limits development to those uses. Bo The proposed Development Agreement complies with all applicable zoning, subdivision, and building regulations and with the General Plan. The City Council independently reviewed the proposed Development Agreement, the General Plan, Chapters 20.81 and 20.120 of the Zoning Ordinance as amended, Chapter 19.60 of the South San Francisco Municipal Code, Title 15 of the Municipal Code, and applicable state and federal law. 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 and advice in the record from City staff, including staff reports, testimony and resolutions. Co 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 will expire 10 years from the effective date of the Agreement but no later than May 1, 2015. Do The proposed Development Agreement specifies the permitted uses of the property subject to conditions of approval included with the Use Permit. 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 stating the permitted uses. The proposed Development Agreement states the permitted density and intensity of use of the property. 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. Fo The proposed Development Agreement defines the permitted height and size of proposed buildings on the property subject to conditions of approval. 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. Go The proposed Development Agreement does not propose any dedication of land for public purposes from 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. Section 2. The City Council of the City of South San Francisco hereby adopts this Ordinance approving a Development Agreement between the City of South San Francisco and Slough Estates for the 333 Oyster Point Project. The approved Development Agreement is attached hereto as Exhibit A and incorporated herein by reference. Section 3. Severability In the event any section or portion of this Ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. Section 4. Publication and Effective Date Pursuant to the provisions of Govermnent 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 9th day of March 2005. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the 23rd day of March 2005, by the following vote: AYES: Councilmembers, Richard A. Garbarino, Pedro Gonzalez, and Karyl Matsumoto, and Mayor Pro Tem Joseph A. Femekes, and Mayor Raymond L. Green NOES: None. ABSTAIN: None. ABSENT: None. ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 23rd day of March 2005. ~~Mayoff~r DEVELOPMENT AGREEMENT 333 Oyster Point Boulevard EXHIBIT A This DEVELOPMENT AGREEMENT FOR 333 OYSTER POINT OFFICE/RESEARCH AND DEVELOPMENT PROJECT ("PROJECT") is dated, 2005 ("Agreement"), between SLOUGH BTC, LLC, a Delaware limited liability company ("Owner"), and the CITY OF SOUTH SAN FRANCISCO, a municipal corporation organized and existing under the laws of the State of California ("City"). Owner and City are collectively referred to herein as "Parties." RECITALS mo WHEREAS, California 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 Bo WHEREAS, Slough BTC, LLC, the Owner, has a legal interest in the real property subject to this Agreement; and 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, establishing procedures and requirements for adoption and execution of development agreements; and Do WHEREAS, this Agreement concerns property located at 333 Oyster Point Boulevard, as shown and more particularly described in Attachment 1 attached hereto and incorporated herein by reference ("Property"); and, mo WHEREAS, the Owner has submitted a development proposal to the City, commonly known as the Oyster Point Boulevard Project, consisting of development of three (3) office/Research and Development buildings with an aggregate square footage of approximately 315,444 square feet and a six (6) level ramped parking structure as depicted on the 333 Oyster Point Development Plan Set dated June 15, 2004, prepared by Chamorro Design Group, including the application for a Use Permit, dated June 30, 2004, attached hereto as Attachment 2 and incorporated herein by reference (the "Plan Set"), to be located on the Property (the "Project"); and, Fo 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 Project; and, Go WHEREAS, all proceedings necessary for the valid adoption and execution hereof have taken place in accordance with Government Code Sections 65864 through 65869.5, the California Environmental Quality Act and with Chapter 19.60 of the South San Francisco Municipal Code; and, Development Agreement Exhibit A Page 2 of 16 Ho 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 __., 2005, the City Council adopted Ordinance No. approving and adopting this Agreement and the Ordinance thereafter took effect on ,2005. AGREEMENT NOW, THEREFORE, the Parties, pursuant to the authority contained in Government Code Sections 65864 through 65869.5 and Chapter 19.60 of the South San Francisco Municipal Code and in consideration of the mutual covenants and agreements contained herein, agree as follows: 1. Effective Date Pursuant to Chapter 19.060.140, notwithstanding the fact that the City Council adopts an ordinance approving this Agreement, the 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 of this Agreement, but in no event later than May 1, 2015. In the event that litigation to which the City is a party against the Owner, or any of its officers, agents, employees, contractors, representatives or consultants, should delay implementation or construction of the Project on the Property, 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 shall consist of three (3) Office/Research and Development buildings totaling approximately 315,444 square feet, a six (6) level parking garage and other structures and improvements as provided in the Plan Set 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 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 Development Agreement Exhibit A Page 3 of 16 those provided in the Plan Set, Use Permit, Development Plan (as prepared pursuant to Section 5 below), Environmental Impact Report and this Agreement as approved by the City Council and the applicable ordinances in effect as of the Effective Date, except as modified in this Agreement, and applicable provisions of the South San Francisco Municipal Code as in effect on the Effective Date. (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 fight 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 Plan Set as approved by the City Council and the applicable ordinances in effect as of the Effective Date. (c) Upon such grant of fight, no future amendments to the City General Plan, the City Zoning Code, the City 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 Plan Set and 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) The Use Permit granted by City shall not require an extension during the term of this Agreement provided Owner is not in breach of the terms of this Agreement or the Conditions of Approval for said Use Permit. 4. Obligations of Owner. In consideration of the entitlements conferred upon Owner, Owner has agreed to implement the obligations of Owner set forth in Attachment 3 attached hereto and incorporated herein, according to the terms and conditions set forth therein. 5. Permits For Project. Owner shall submit a Development Plan for development of the Project at the earlier of October 1, 2005, or within sixty (60) days of applying for a grading permit for the project. The Development Plan shall address, at a minimum, the landscaping and common improvements required for the Project. The City shall issue building permits and certificates of occupancy only after the City has reviewed and approved Owner's applications therefor. City staff review of applications for permits or other entitlements shall be limited to determining whether the following conditions are met: (a) The application is complete; and, Development Agreement Exhibit A Page 4 of 16 (b) (c) (d) (e) Owner has complied with the conditions of the City Council's approval of the Project, all applicable Uniform Codes, the South San Francisco Municipal Code, CEQA requirements, including any required mitigation measures, governing issuance of such permits or certificates and Federal and State Laws; and, Owner has obtained Design Review approval for the Project, including required approval of Landscape and Common Improvements; and, All applicable processing, administrative and legal fees have been paid subject to the provisions of this Agreement; and, For Certificates of Occupancy only, City has approved the landscaping and other improvements for the Project. 6. Vesting of Approvals. Upon the City's approval of the Use Permit 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 said permit, including, but not limited to, submission of insurance certificates and bonds for the grading of the Property and construction of improvements. 7. Cooperation Between Parties in Implementation of This Agreement. The Owner and 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. (c) Owner, in a timely manner, shall provide City with all documents, applications, plans and other information necessary for the City to carry out its obligations hereunder and shall cause Owner's planners, engineers and all other consultants to submit in a timely manner all necessary materials and documents. 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. Development Agreement Exhibit A Page 5 of 16 8. Acquisition of Other Property; Eminent Domain In order to 'facilitate and insure development of the Project in accordance with the Plan Set 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 Plan Set, 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. 9. Maintenance Obligations on Property All of the Property subject to this Agreement shall be maintained by Owner or its successors in perpetuity. The Property shall be maintained in accordance with City requirements to prevent accumulation of litter and trash, to keep weeds abated, and to provide erosion control, and other requirements set forth in the South San Francisco 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 to the City for review and approval by the City Attorney. Said CC&Rs shall satisfy the requirements of Municipal Code section 19.36.040. (b) Any provisions of the conditions, covenants, and restrictions governing the Project relating to the maintenance obligations under this section shall be enforceable by the City. 10. Fees. No future fee requirements, other than those identified herein, imposed by the City or changes to existing fee requirements (other than those currently subject to annual increases as specified in the adopting or implementing Resolutions and Ordinances) that occur on or after the Effective Date of this Agreement, shall apply to the Project. Owner shall not be responsible for any fees imposed by the City in connection with the development and construction of the Project, except as otherwise set forth in this Agreement and/or the Use Permit and those in existence as of the Effective Date of this Agreement. (a) Revised Application Fees. 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 (1) such fees have general applicability; (2) the application of such fees to the Property is prospective; and (3) the application of such fees would not prevent development in accordance with this Agreement. Development Agreement Exhibit A Page 6 of 16 11. New Taxes. Any subsequently enacted city-wide taxes shall apply to the Property provided that: (1) the application of such taxes to the Property is prospective; and (2) the application of such taxes would not prevent development in accordance with this Agreement. 12. 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 which benefit the Property. 13. Indemnity. Owner agrees to indemnify, defend (with counsel approved by City, which approval shall not be unreasonably withheld, but in no event shall this Section require City to waive its right to assert a conflict in said representation) and hold harmless City, and its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives from any and all claims, costs (including legal fees and costs) and liability for any personal injury or property damage which may arise directly or indirectly as a result of any actions or inactions by 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 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 ofOtherOwners Owner has no knowledge of any reason why Owner, and any other persons holding legal or equitable interests in the Property as of the date on which title to the Property vests of record in Owner, 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 fight, 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 require the transferee to acknowledge in writing that transferee has been informed, understands and agrees that the burdens and benefits under this Development Agreement Exhibit A Page 7 of 16 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 hereunder shall occur without the prior written notice to 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 10 days after Owner's notice, provided all necessary documents, certifications and other information are provided to the City Manager. (c) Exception for Notice. Notwithstanding Section 15(b), Owner may at any time, upon notice to City but without the necessity of any approval by City, transfer the Property or any part thereof and all or any part of Owner's rights, interests and obligations hereunder 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 paragraph, "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 (c)) or otherwise. (d) Release Upon Transfer. Upon the transfer, sale, or assignment of all of Owner's rights, interests and obligations hereunder pursuant to Section 15(a), Section 15(b) and Section 15(c) of this Agreement, Owner shall be released from the obligations under this Agreement, with respect to the Property transferred, sold, or assigned, arising subsequent to the date of City Manager 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. (e) Owner's Right to Retain Specified Rights or Obligations. Notwithstanding subparagraphs 15(a) and (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 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 Development Agreement Exhibit A Page 8 of 16 purchaser, transferee or assignee shall then have no interest in or obligation 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 10 days of the date escrow closes on any such transfer, Owner shall notify 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 Owner from its obligations to City under this Agreement until such time as' City is provided notice in accordance with Section 15(b). 16. Insurance. (a) Public Liability and Property Damage Insurance. During the term of this Agreement, 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 ten thousand dollars ($10,000.00) per claim. The policy so maintained by Owner shall name City as an additional insured and shall include either a severability of interest clause or cross-liability endorsement. (b) Workers Compensation Insurance. During the term of this Agreement 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 City for any damage resulting from Owner's failure to maintain any such required insurance. (c) Evidence of Insurance. Prior to City Council approval of this Agreement, Owner shall furnish City satisfactory evidence of the insurance required in Sections (a) and (b) and evidence that the carder will provide City at least ten 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. In the event of a reduction (below the limits required in this Agreement) or cancellation in coverage, or change in insurance carders or policies, Owner shall, prior to such reduction, cancellation or change, provide at least ten (10) days prior written notice to City, regardless of any notification by the applicable insurer. If 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. Development Agreement Exhibit A Page 9 of 16 17. 18. 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 works until such time as City receives evidence of substitute coverage. o If Owner fails to obtain substitute coverage within five (5) days, 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 of the premium for said coverage. (d) The insurance shall include City, its elective and appointive boards, commissions, officers, agents, employees and representatives as additional insureds on the policy. 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. 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 fight 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 jurisdiction is successful, this Agreement shall remain unmodified and in full force and effect. Development Agreement Exhibit A Page 10 of 16 19. Procedure for Modification Because of Conflict with State or Federal Laws. 20. 21. 22. 23. In the event that state or federal laws or regulations enacted after the effective date of this Agreement 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 federal or state law or regulation. Any such amendment or suspension of the Agreement shall be approved by the City Council in accordance with Chapter 19.60. Periodic Review 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 South San Francisco Municipal Code. City may recover reasonable costs incurred in conducting said review, including staff time expended and attorney's fees. 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 South San Francisco Municipal Code. Agreement is Entire Agreement. This Agreement and all attachments attached hereto or incorporated herein contain the sole and entire Agreement between the parties concerning 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 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. Events of Default Owner shall be in default under this Agreement upon the happening of one or more of the following events occurring in connection with the Project or this Agreement: (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 Development Agreement Exhibit A Page 11 of 16 and Chapter 19.60 of the South San Francisco 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, City may terminate or modify this Agreement in accordance with the provisions of Government Code Section 65865.1 and of Chapter 19.60 of the South San Francisco Municipal Code. (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. (e) The City shall give Owner written notice of any default under this Agreement, and Owner 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. 25. Attorneys fees and costs 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 attorney's fees and court costs. (a) 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 City for all reasonable court costs and attorneys' fees expended by City in defense of any such action or other proceeding. Development Agreement Exhibit A Page 12 of 16 26. 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 this entire Agreement shall likewise be invalid, and shall be deemed null and void and of no further force or effect following such judicial determination. 27. 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 hereto 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. 28. 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. 29. Relationship of Parties It is understood that this Agreement is a contract that has been negotiated and voluntarily entered into by City and Owner and that the Owner is not an agent of 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 or contractors are or shall be considered to be agents of 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, including the lien of any deed of trust or mortgage ("Mortgage"). Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, 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 Development Agreement Exhibit A Page 13 of 16 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. 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 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, 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 City determines that Owner is in noncompliance with this Agreement, City also shall serve notice of noncompliance on the Mortgagee, concurrently with service thereof on Owner. Each Mortgagee shall have the right during the same period available to Owner to cure or remedy, or to commence to cure or remedy, the condition of default claimed or the areas of noncompliance set forth in City's notice. 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 (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 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 10 days. The City Manager shall have the right to execute the certificates requested by Owner hereunder provided the certificate is requested within 6 months of the annual or special review. City acknowledges that a certificate hereunder may be relied upon by permitted transferees and Mortgagees. At the request of Owner, the certificates provided by 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. Development Agreement Exhibit A Page 14 of 16 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 (other than the City). 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. (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. 35. Exhibits Attachment 1 - Map and Legal Description of Property Attachment 2 - Use Permit, including Plan Set and Conditions of Project Approval Attachment 3 - Obligations of Owner 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: Development Agreement Exhibit A Page 15 of 16 City Clerk P.O. Box 711,400 Grand Avenue South San Francisco, CA 94080 Notices to Owner shall be addressed as follows: Slough BTC, LLC 400 Oyster Point Boulevard, Ste. 409 South San Francisco, CA 94080 Attention: Jon Bergschneider 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. IN WITNESS WHEREOF this Agreement has been executed by the parties on the day and year first above written. CITY OF SOUTH SAN FRANCISCO ATTEST: By: Barry M. Nagel, City Manager City Clerk APPROVED AS TO FORM Steven T. Mattas, City Attorney OWNER SLOUGH BTC, LLC, a Delaware limited liability company By: Slough Estates USA Inc., a Delaware corporation, Its Managing Member By: Name: Jonathan M. Bergschneider Title: Vice President APPROVED: Donald E. Kelley, Jr. Folger Levin & Kahn LLP Counsel for Owner Development Agreement Attachment 1 Page 16 of 16 ATTACHMENT 1 TO DEVELOPMENT AGREEMENT PROPERTY DESCRIPTION All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: Parcel 3, as shown on that certain Map of Lands, situated in the City of South San Francisco, being a subdivision of Parcel 1 and 2 of Parcel Map, recorded in Book 22 of Parcel Maps at Page 45, and being a resubdivision of Parcel 2 of land described in Grant Deed from Bethlehem Steel Company to Cabot, Cabot & Forbes, California Properties, Inc., recorded on March 10, 1964, in Volume 4663, at Page 546, Official Records of San Mateo County, California, filed in the office of the County Recorder January 15, 1974, in Book 23 of Parcel Maps, Page 27. Excepting therefrom the following described land as conveyed by Grant Deed recorded November 5, 1999, Instrument No. 99-185250, Official Records: Beginning at the southwest comer of Parcel 3 as shown on that Parcel Map filed January 15, 1974, in Book 23 of Parcel Maps at Page 27, Official Records of San Mateo County; thence North 1° 09' 23" East 38.95 feet along the westerly line of said Parcel 3; thence, leaving said westerly line, South 88° 18' 10" East 113.99 feet to the southerly line of said Parcel 3; thence South 55° 25' 23" West 59.05 feet along said southerly line to an angle point in said southerly line; thence, continuing along said southerly line, South 88° 13' 23" West 66.14 feet to the point of beginning. Attachment 3 Owner Obligations Public Art Contribution: Owner shall install and provide artwork for public display in the Project. Said artwork shall cost in the aggregate no less than two hundred fifty thousand dollars ($250,000), which shall be installed on the Project site within five (5) years of the Effective Date of this Agreement but in no event earlier than the date on which the second Certificate of Occupancy is issued for the Project. The artwork to be installed by the Owner shall be subject to the reasonable approval of the City of South San Francisco prior to installation. Artworks installed pursuant to this section shall be maintained by Owner or, in the event Owner's interest in the Property is conveyed or subdivided, by Owner's successors, or, if applicable, by the Owner's Association for the Project. If an association of owners is created, said maintenance obligations and a budget related thereto shall be included in the Covenants, Conditions and Restrictions for the Project. Transportation Demand Management: 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% alternative mode usage by employees within the Project. 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 buildings on the Property. All non- responses to the employee commute survey will be counted as a drive alone trip. TDM Reports: The initial TDM report for each 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 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 buildings on the Property which are submitting their second or later TDM reports. 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 35% alternative mode usage, Exhibit C - 333 Oyster Point Development Agreement January 27,2005 Page 1 of 2 3SR~Y 4 S'KRY UA 4 STCI~ CO~HLA110NS g'IE AIiEA: 384,914 SQ. FT. (8,64 AC) CHAMORRO 1301 MA~ VLLAGE PAll(WAY ALA~A. CAL~OI~A g~5~ T~. (510) 523-9121 FAX lb'lO) 523-05T9 TOTAL ~ ~ = 315,444 ~Q. FT. "'-'" BRITANNIA ,,,~ "~"~': ~., OYSTER TOT, N. PARIQNG~AC~S- 882 POINT II P,4RiONG / ~ ~ RA'IIO - 2.8/1000 SO. FT. ,.~ 0YS1ER P0~NT C I HIE NO:. 20001-02 DA'IE ~ 06/15/04 o7/2o/o~ 10107/o4 02/023/05 PLANNING COM~IS..qON CLASS CURTAJN WkLL: G.F.R.C. T~. PAJN1ED ALUMINUM FRAME --MECHANICAL SCREN: ENCLOSURE ~TION I I WEST ELEVATION CHAHORRO DESIGN GROUP ARCHITECTURE P.O. B OX 28~ CASTRO VALLEY, CA 945'18 TEL {510) 733-9243 FAX (510) 733-9287 BRITANNIA OYSTER POINT II OYSI~ POCNT BOULEVARD SOU~H ~ FRANQSCO --~ECHANICAL SCREN (}LASS CURTA~I ~ALL M*[I'I PAJNI[D ALUMINUM FRAME AND REFLECll~ G. XSS MECHANICAL I::: ::1 ::::: :::: :::f::::: ::1 :::: ::: :1:::: I::::: :1:::::::1 _ Z_ __ ~- _ .L _. -~-- . .L --:-~'.'. ~ ~-- ~ .~ ...~'.. ~,~...%qp. ,.. ~... / ~ ~:: ~ ~ ~'::::: S:: :::: ::::i :::::::: · ~:::::::~ ~:::: ::::::: ~ ~::: ~ ~..~ ~ ~ ~ ~./~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ !i ~ ~ ~TION T P~0RLE ~0~ 0A~E~ WINDOW WALL RECES~E:D 4;+/- TO PROVIDE ADDITIONAL S~..IADOW UNE. EAST ELEVATION FILE NO:. 200O1.-O2 DAlE ~ o6/'~5/o4. 02/03/05 PLANNING CC~MISSION I~ECHANICAL SCREDI PARAPET FOUR1H FLOOR MECHANICAL SCreEN (lkSS CURTAJN WALL VA11'I PAIN1ED ALUMINUM FRAME AND RD'LE:C11~ GLASS SCR[Dd: C~M~T BOARO NTH RNIS~I TO MATCH WALL PANEL - TYP. COLOR "C" PAIN'TED .M..LJMIN~ FRAME / WEST ELEVA'nON VdNDOW WALL RECESSED 4'+/- TO PROV1DE ADDrI10NAL SHADOW UNF_.. FUIURE ENTRANCE PROTEC*I10N, ac SENSE OF' COLUNNADE. O.ASS CURTAJN WALL: I PklN1E~) ALUMINUM FRAMES w~.~ A AND RE]:U[Cll~ 0-ASS - I~P. I ::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~/~///~x//~/~.~/~, :::::::::::::::::::::: ::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~ ~ ¢~ ~ ............ :::::::::::.::~~ ::::::::::::::::::::::::::::::::: ~ ~ ~/~ ~ ~:::::::~ ~ ............. ~:::::::~ ..... ::::::: ::::::::: :::::: ~ :::::::::: ::::::::::~/~ ~ ~ ~ ~,~1 ~5~ ~ ~ V CHAMORRO DESIGN GROUP ARCHITECTURE ~ k4AJ~dA VILLAGE PAI~'WAY ALAIvEk, CALFC)IHk 045O1 TEL (b'lO) 733-9'243 FAX (5]0) 733-9267 BRITANNIA OYSTER POINT II 06/15/04- 02/03/05 PLANNING COMMISS~:~q EAST ELEVATION :::::::::::::::::::::::: CEMENT PLASTER FINISH TO MATCH WALL PANEL COLOR "C' WEST ELEVATION WINDOW WALL RECESSED 4'+/- TO PROVIDE ADDITIONAL SHADOW UNE, FUTURE ENTRANCE PROTECTION, & SENSE: OF COLONNADE. MECHANICAL PARAPET CHAHORRO DESIGN GROUP ARCHITECTURE P.O. BOX 2~ CASTRO VALLEY, CA TEL (510) 733-g2~ FAX 15'10) 733-g2~7 BRITANNIA OYSTER POINT II 0YSIE~ POINT BOULEVARD SOU1H SAN FRANOSC0 ELEVATION T--WINDOW WALL RECESSED 4-'+/- TO PROVIDE ADDITIONAL SHADOW UNE, FUTURE ENTRANCE PROTECTION, &:  ~ PNNTED ALUMINUM FRAMES ANg RER.[Cll~ GLASS - T~P. -- COLOR "A" ' ~: :,~ - ~ ~ ~ ~ i I~~ ~7......... EAST ELEVATION Fit[ NO:. 20001-02 DAlE ISSUED:. 06/15/04 02/03/05 PLANMNG COMMISSION BLDG C ELEV DRB.DC5 Did UP IP ON SECOND FLOOR uP CHAHORRO DESIGN GROUP ARCHITECTURE P.O. BOX CASTRO VALLEY, CA 'I'B. I~) 733-9'2~ FAX 15101 733-9261 BRITAIIIA OYSTER poKr I FILE gO: 20O01-02 DATE ~ 02/0.3/05 PI. ANHiNG COMMISSION DRSPLANS.DC5 DN UP STAIR FOURTH FLOOR CHAMORRO DESIGN GROUP ARCHITECTURE P.O. BOX 2654 CASTRO VALLEY, CA 94546 T~. (510) ~33-g243 FAX (~01 733-g28T BRITAIdlA OYSTER POINT I RLE NO:. 20001-02 DAlE ISSUED:. o2/o3/o5 P~NN~G C~ON SECOND FLOOR WINDOW UNE RECESSES TO PROVIDE ADOITIONAL SHADOW UNE. FU1URE EN1RANCE PROIECI~ON, & CHAMORRO DESIGN GROUP ARCHITECTURE P.O. BOX 2654 CASTRO VALLEY, CA 94548 FAX 15101 BRITAIEIA OYSTER POINT I FILE NO:. 2O0O1-O2 DAlE ISSUED:. o~/'~5/~ 02/03/05 PLANNING C04MISSION . BAL(~',IY FOURTH FLOOR UP DH uP I~1 GHAMORRO DESIGN GROUP ARCHITECTURE P.O. BOX 26H CASTRO VALLEY, CA ~548 TEL (5101 733-g243 FAX (510) 733'-g287 BRrrANNIA OYSTER POI~ II OYSTI~ POI4T BOULEVARD SOUIH SAN FRANCISCO NO:. 29001-02 DAlE ISSUED:. CHANORRO DESIGN GROUP ARCHITECTURE MECHANDJ. ROOF PLAN P.O. BOX 2~54 C~STRO VALLEY, CA 94548 TI3. I~ 73~g2,~ FAX ISI01 BRITANNIA OYSTER POBJT II FE NO:. 20001-02 DAI~ ISSUED:, 06/15/04 ~/03/OS PL.'aC couu~ss~ ~ OOf PLAN STAIR SECOND FLOOR t t ~NDOW UNE I~C~SS~S TO PROV1DE ADD{llONAL [-- SHADOW UNE, FUIURE BITRANC~ PROIECllON, STA; CHAHORRO DESIGN GROUP ARCHITECTURE P,O. BOX 2654 CASTRO VALLEY, CA 94546 ~ 15101 733-9243 FAX 15101 733-926? BRITANNIA OYSTER POINT II FIE NO:. 20001-02 DA3E ~ 02/03/05 PLANNING ~OMMISSION DRBPL~S,DC5 ~ oundcover and accent Evergreen -Columnar tree row I plaza Seat-pads Shade trees Everg Large canopy shade ireas gray concrete with light broom finish I .! I ! i -Entry I.D. Walls Planting pLANTING NOTES pl~t mum. hi Ioc~om shown m~ disc 4. ~~of~ ~. ~ ~of~p~ 5. ~~iu~efi~ ~ w~~ 8. 9. ~a~p~g~ ~~ ~ ~c~ of ~of~~a~e~ l"~. ~ ~. ~4~. (415) 16. ~ ~ a~m~of 17. ~~v~ 5C-~ 5~ 5~ 1 C,,~k~ 24' O. C. 24'0- C. A R C H I T E C T U R 1301 MAR{NA VILLAG[ PARKWA~Y ALAM[DA, CN. IFORNIA 94501 FAX (,510) 523-0579 BRITANNIA OYSTER POINT II .~. to.o~ . z, ~ .o~ Trash Receptacle Bollard ~ike Rack Glass wall and concrete column windscreen Evergreen groundcovers and trees on 3' height berm to screen seating and fountain area screens CH/~IqORRO DESIGN ~ROUP ARCH I T £ C T U 1~0~ MANNA ~I.LA~ PA~WAY AI~IdEDA, C~O~IIA 9~501 1E. (.510} 52,3-I~ FAX [510) 525-0579 Bike l~ck hedge building columns at bands Washed river cobble at Building Standard ~, with medium sandblast Fmisln Bike Rack Granite slab s~ulptul., ooint in curb ~Ove turnaround surrounded evergreen foliage and color planting Seat-pads I curb . Trash Bollards Columnar tree benches Flagpoles ~ree row ' concrete with medium broom finish Lawil Pots wi[h color and accent ibenches ,Raised curb Integral c~ medium bF Standard gray concrete with.~ medium sandblast finish , ~! point in raised planter with · ~ above turnaround surrounded evergreen foliage and color planting Granite slab water feature Sandblasted standard gray concrete grade beam seating BRITANNIA OYSTER POINT II ,, , ~. to.6~ Call.tO ~m tL ~ ~ I ~8 g GROUND LEVEL PLAN 0 5' 10' 32' ~ I TVDII'~.AI I I~VI::I PI AM F~ m ~'~. ~ PAJ{~D ~ ~ IYP. PAiNteD ,q.~M. FR,M/E ','VATION (~ NORTH ELEVATION (CO*eR 'o') SOLF: {/m~ - i'.-o' TOP OF p~ (co{~o~ 'AD (corn 'A') ,IEVATION o~u.s (coc~ 'D') -- Rq~q[D Pi~[ RAJI. TiP. (C'~U~ WEST ELEVATION 1/16' = 1'-0" METAL SECtI~ 0 5'10' 32' BUILDING ELEVATIONS Co providing supporting statistics and analysis to establish attainment of the goal; or (2) state that the applicable property has not achieved the 35% 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 TDM goal of 35% alternative mode usage. 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 35% alternative mode usage is still not being achieved, or if Owner fails 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 minimum 35% alternative mode usage goal. (1) In determining whether a financial penalty is appropriate, City may consider whether Owner has made a good faith effort to meet the TDM goals. (2) 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. (3) 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. C:XDocuments and Settings\dekXLocal SettingsXTemp~Draft Exhibit C 1-25-05.DOC Exhibit C - 333 Oyster Point Development Agreement Page 2 of 2 January 27, 2005